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14 September 2022
Worcester Man Sentenced for Attempting to Purchase $83,000 Sports Car and Opening Bank Accounts Using Stolen IdentitiesRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in federal court in Worcester for using two victims’ identities to open bank accounts and attempting to purchase an $83,000 Chevrolet Camaro.
Brandon Brouillard, 29, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 47 months in prison and five of supervised release. On April 7, 2022, Brouillard pleaded guilty to two counts of bank fraud and one count of aggravated identity theft.
In February 2021, Brouillard used the identity of a New Hampshire resident to open a bank account at Avidia Bank where he wired $108,000 from another individual’s Bank of America account. Brouillard also fraudulently obtained a New Hampshire driver’s license in the name of a New Hampshire resident, which he used to attempt to obtain a car loan from Capital One which was ultimately denied.
On April 17, 2021, Brouillard test drove a 2021 Chevrolet Camaro at a dealership in Norwood, Mass. After test-driving the Camaro, Brouillard agreed to purchase the car for $83,000 and paid for the vehicle with a cashier’s check made out to the dealership. He provided his Massachusetts driver’s license, proof of insurance, signed sales contract, Massachusetts application for registration and car title in connection with the purchase.
On April 19, 2021, Brouillard picked up the Camaro from the dealership. A few days later, the dealership learned that the account listed on the bank check provided by Brouillard was frozen. The dealership contacted Brouillard, who promised that he would wire $83,000 to pay for the car.
On April 26, 2021, an Arizona resident contacted local police and reported an attempted fraudulent wire transfer of $83,000 from the victim’s bank account. The victim reported that a fraudulent email purportedly from the victim was sent to the bank, requesting a wire transfer of $83,000 to pay for the victim’s “brother-in-law’s car.” The bank contacted the victim for verification, and the victim did not approve the transfer. Starting in or about September 2020, the victim’s accounts were compromised, and large fraudulent purchases were made and shipped to Brouillard’s address. It is estimated that approximately $500,000 of the victim’s funds were stolen.
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. Valuable assistance was provided by the Boston, Braintree, Natick, Newton, Norwood, Worcester and Scottsdale (Ariz.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Criminal Division prosecuted the case.
Washington, D.C. man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Emmanuel Kwame West, of Washington, D.C., was sentenced today to 130 months of incarceration for selling heroin and fentanyl, United States Attorney William Ihlenfeld announced.
West also known as “Donte West,” 41, pleaded guilty in May 2022 to one count of “Distribution of Heroin and Fentanyl Mixture.” West admitted to selling a mixture of fentanyl and heroin in March 2021 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
U.S. District Judge Gina M. Groh presided.
Violent Repeat Felon Found in Unlawful Possession of a Firearm Sentenced to 5 Years in Federal Prison After Fleeing Police Following a Traffic StopRead the Press Release
INDIANAPOLIS – Kendrick Hoggan, 27, of Indianapolis, was sentenced to five years in federal prison after pleading guilty to unlawful possession of a firearm by a convicted felon.
According to court documents, on February 9, 2021, an officer with the Kokomo Police Department (KPD) stopped a vehicle for a traffic infraction near the intersection of North and Indiana Streets in Kokomo, Indiana. The officer smelled marijuana coming from inside the vehicle and asked the occupants of the vehicle to exit. Hoggan exited from the front passenger seat and began running. Another officer attempted to stop Hoggan by grabbing his jacket and sweatshirt. The jacket and sweatshirt slid off Hoggan and he continued running.
A KPD officer caught up with Hoggan a short time later. Hoggan resisted by kicking the officer and damaged the officer’s lapel radio microphone. The officer was eventually able to secure Hoggan in handcuffs. A .357 caliber handgun that slid out of Hoggan’s jacket while he was running was recovered by police. Officers searched Hoggan’s person and his jacket finding multiple cell phones, U.S. currency and a user quantity of methamphetamine.
Hoggan has multiple prior felonies in state court, including convictions for robbery and alteration of a handgun’s identifying marks. Hoggan committed the February 2021 offense while serving a criminal sentence for robbery. Hoggan is prohibited by federal law from possessing firearms due to his prior felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Columbus Field Division, made the announcement.
ATF investigated the case in conjunction with the Kokomo Police Department. Sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Hoggan be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Victorville Woman Arrested on Indictment Alleging She Used Prison Inmates’ Names to Fraudulently Obtain over $500,000 in COVID ReliefRead the Press Release
RIVERSIDE, California – A San Bernardino County woman was arrested today on a seven-count federal grand jury indictment alleging she fraudulently obtained more than $500,000 in pandemic-related unemployment insurance (UI) benefits by using the names of inmates locked up the California state prison system.
Cynthia Ann Hernandez, 32, a.k.a. “Cynthia Roberts,” of Victorville, was taken into custody and is expected to appear for her arraignment tomorrow in United States District Court in Riverside.
Hernandez is charged with four counts of mail fraud, one count of access device fraud in excess of $1,000, and two counts of aggravated identity theft.
According to the indictment returned on September 9, from June 2020 to August 2020, Hernandez filed with the California Employment Development Department (EDD) fraudulent applications for UI benefits in the names of persons incarcerated in the California state prison system. EDD manages California’s unemployment insurance benefit program.
Hernandez allegedly falsely stated on the UI benefits applications that the named claimants were individuals whose employment had been negatively affected by the COVID-19 pandemic and were eligible for pandemic unemployment assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress passed the CARES Act in March 2020, in part, to help individuals whose employment and finances were adversely affected by the pandemic.
The applications also falsely stated that the named claimants were eligible for the UI benefits and that they resided and worked in Los Angeles and Orange counties. EDD then authorized Bank of America to issue debit cards in the claimants’ names and were mailed to Hernandez’s mailing address, according to the indictment. Once Hernandez allegedly received the debit cards, she used them to withdraw cash at ATMs and banking centers.
In total, Hernandez allegedly caused at least 29 fraudulent applications to be filed with EDD, resulting in losses to EDD and the United States Treasury of approximately $515,138.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the United States Department of Labor – Office of Inspector General; the California Employment Development Department – Investigation Division; Homeland Security Investigations; the California Department of Corrections and Rehabilitation; the United States Department of Homeland Security – Office of Inspector General; the United States Postal Inspection Service; and United States Customs and Border Protection – Special Response Team.
Assistant United States Attorney Solomon Kim of the Terrorism and Export Crimes Section is prosecuting this case.
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 Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney, Vermont Attorney General, and Rutland Area NAACP to Co-Host Hate-Free Vermont Forum in BenningtonRead the Press Release
The United States Attorney’s Office, the Vermont Attorney General’s Office, and the Rutland Area NAACP will be co-hosting a Hate-Free Vermont Forum in Bennington on September 28, 2022, from 5:30pm to 7:30pm.
“The Forum aims to bring policymakers, stakeholders, and community members together for productive and difficult conversations that will work to reduce animus, discord, and misunderstandings,” said co-facilitator Etan Nasreddin-Longo. “When we began these conversations in 2019, our goal was to take the pulse of Vermonters’ experience of discrimination. Much has happened since that time, and our hope is to engage and to listen to our historically-disadvantaged communities about what they view as the continuing and new problems in 2022.”
Community members are encouraged to join us for a conversation on understanding and addressing bias, discrimination, and hate crimes in Vermont.
When: Wednesday, September 28, 2022, 5:30pm-7:30pm
Where: The Forum will be hosted in-person and also remotely.- Physical location: Mount Anthony Union High School, Cafeteria, 301 Park St, Bennington, VT 05201
- Remote registration link: bit.ly/3Sm1Deq1
- In-person registration link (optional): bit.ly/3RVUnRY
Who: All are welcome.
For physical attendance, masks are requested. Registration is required for remote attendance.
Tukwila, Washington, man who fired shot while running from police pleads guilty to assault and illegal firearms chargesRead the Press Release
Seattle – A 29-year-old Tukwila, Washington, man pleaded guilty in U.S. District Court in Seattle today to assault on a federal officer and using a firearm in a crime of violence, announced U.S. Attorney Nick Brown. Defendant Francisco Luis Rodriguez and prosecutors will both recommend a 10-year prison sentence when he is sentenced by U.S. District Judge James L. Robart on December 6, 2022.
According to the plea agreement, on October 27, 2021, agents with the U.S. Marshal Service Violent Offender Task Force were working to arrest Rodriguez in connection with the October 14, 2021, armed kidnapping of his former girlfriend. Task Force officers located Rodriguez at a gas station in Des Moines, Washington. The officers blocked Rodriguez’ car and identified themselves as police. Rodriguez jumped out of the car and fired one shot into the roof of the gas station. As he fled, he was waving the gun around and pointing it at police and at his head. The firearm was a Glock handgun with an extended magazine. Rodriguez ran towards a busy grocery store nearby. Task force officers followed and fired shots to stop Rodriguez before he reached the store. Rodriguez was wounded and taken to Harborview Medical Center where he recovered.
Assault on a federal officer is punishable by up to 20 years in prison. Use of a firearm in a crime of violence is punishable by a mandatory minimum seven years in prison and up to life in prison.
The case was investigated by the U.S. Marshal Service (USMS), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Des Moines Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Three Iranian Nationals Charged with Engaging in Computer Intrusions and Ransomware-Style Extortion Against U.S. Critical Infrastructure ProvidersRead the Press Release
An indictment was unsealed today charging three Iranian nationals with allegedly orchestrating a scheme to hack into the computer networks of multiple U.S. victims.
As alleged in the indictment, from October 2020 through the present, Mansour Ahmadi, aka Mansur Ahmadi, 34; Ahmad Khatibi Aghda, aka Ahmad Khatibi, 45; and Amir Hossein Nickaein Ravari, aka Amir Hossein Nikaeen, aka Amir Hossein Nickaein, aka Amir Nikayin, 30, engaged in a scheme to gain unauthorized access to the computer systems of hundreds of victims in the United States, the United Kingdom, Israel, Iran, and elsewhere, causing damage and losses to the victims.
“The Government of Iran has created a safe haven where cyber criminals acting for personal gain flourish and defendants like these are able to hack and extort victims, including critical infrastructure providers,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This indictment makes clear that even other Iranians are less safe because their own government fails to follow international norms and stop Iranian cyber criminals.”
The defendants’ hacking campaign exploited known vulnerabilities in commonly used network devices and software applications to gain access and exfiltrate data and information from victims’ computer systems. Ahmadi, Khatibi, Nickaein and others also conducted encryption attacks against victims’ computer systems, denying victims access to their systems and data unless a ransom payment was made.
The defendants victimized a broad range of organizations, including small businesses, government agencies, nonprofit programs and educational and religious institutions. Their victims also included multiple critical infrastructure sectors, including health care centers, transportation services and utility providers.
“Ransom-related cyberattacks — like what happened here — are a particularly destructive form of cybercrime,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “No form of cyberattack is acceptable, but ransomware attacks that target critical infrastructure services, such as health care facilities and government agencies, are a threat to our national security. Hackers like these defendants go to great lengths to keep their identities secret, but there is always a digital trail. And we will find it.”
“The FBI remains steadfast in our commitment to work with our U.S. government partners for the purpose of imposing cost on our adversaries,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “This indictment, when coupled with other disruptive operational activities, demonstrates what’s possible when we team up with our domestic and international partners and take a whole-of-government approach. We, along with our partners, remain dedicated to protecting the United States of America and the victims affected by these egregious crimes.”
According to court documents, in February 2021, the defendants and their conspirators targeted a township in Union County, New Jersey. They exploited known vulnerabilities to gain control and access to the township’s network and data and used a hacking tool to establish persistent remote access to a particular domain that was registered to Ahmadi.
In or before February 2022, the defendants and their conspirators targeted an accounting firm based in Morris County, New Jersey. They again exploited a known vulnerability to gain unauthorized access and then used a particular hacking tool to establish a connection to a server that was registered to Nickaein and to steal data. In March 2022, the defendants launched an encryption attack against the accounting firm; after denying the firm access to some of its systems, Khatibi demanded payment of $50,000 in cryptocurrency and threatened to sell the data on the black market.
The defendants also compromised, and often encrypted and extorted, hundreds of other victims, including an accounting firm based in Illinois; a regional electric utility company based in Mississippi; a regional electric utility company based in Indiana; a public housing corporation in the State of Washington; a shelter for victims of domestic violence in Pennsylvania; a County government in Wyoming; a construction company located in the State of Washington that was engaged in work on critical infrastructure projects; and a state bar association.
Ahmadi, Khatibi and Nickaein, all residents of Iran, are each charged by indictment with one count of conspiring to commit computer fraud and related activity in connection with computers; one count of intentionally damaging a protected computer; and one count of transmitting a demand in relation to damaging a protected computer. Ahmadi is charged with one additional count of intentionally damaging a protected computer. All defendants remain at large abroad.
The conspiracy charge carries a maximum sentence of five years in prison. The intentional damage to protected computers charge carries a maximum sentence of 10 years in prison. The transmission of a ransom demand charge carries a maximum sentence of five years in prison. The offenses also carry a potential maximum fine of $250,000 or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
Assistant U.S. Attorneys David E. Malagold and Matthew Feldman Nikic for the District of New Newsey, and Trial Attorney Andrew D. Beaty of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Iranian Nationals Charged with Engaging in Computer Intrusions and Ransomware-Style Extortion Against U.S. Critical Infrastructure ProvidersRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging three Iranian nationals with allegedly orchestrating a scheme to hack into the computer networks of multiple U.S. victims, U.S. Attorney Philip R. Sellinger and National Security Division Assistant Attorney General Matthew Olsen announced today.
As alleged in the indictment, from October 2020 through the present, Mansour Ahmadi, aka “Mansur Ahmadi,” Ahmad Khatibi Aghda, aka “Ahmad Khatibi,” and Amir Hossein Nickaein Ravari, aka “Amir Hossein Nikaeen,” aka “Amir Hossein Nickaein,” aka “Amir Nikayin,” engaged in a scheme to gain unauthorized access to the computer systems of hundreds of victims in the United States, the United Kingdom, Israel, Iran, and elsewhere, causing damage and losses to the victims.
The defendants’ hacking campaign exploited known vulnerabilities in commonly used network devices and software applications to gain access and exfiltrate data and information from victims’ computer systems. Ahmadi, Khatibi, Nickaein, and others, also conducted encryption attacks against victims’ computer systems, denying victims access to their systems and data unless a ransom payment was made.
The defendants victimized a broad range of organizations, including small businesses, government agencies, non-profit programs, and educational and religious institutions. Their victims also included multiple critical infrastructure sectors, including healthcare centers, transportation services, and utility providers.
“Ransom-related cyberattacks — like what happened here — are a particularly destructive form of cybercrime,” U.S. Attorney Sellinger said. “No form of cyber-attack is acceptable, but ransomware attacks that target critical infrastructure services, such as health care facilities and government agencies, are a threat to our national security. Hackers like these defendants go to great lengths to keep their identities secret, but there is always a digital trail. And we will find it.”
“These defendants may have been hacking and extorting victims – including critical infrastructure providers – for their personal gain, but the charges reflect how criminals can flourish in the safe haven that the Government of Iran has created and is responsible for,” Assistant Attorney General Matthew Olsen said. “According to the Indictment, even other Iranians are less safe because their own government fails to follow international norms and stop Iranian cyber criminals.”
“I want the people of New Jersey, and across the country, to know that the FBI is working tirelessly every day to protect you from people and things you may never see,” Special Agent in Charge of the Newark Division James Dennehy said. “This coordinated, global effort amongst law enforcement and the intelligence community should send a clear message to those actors who think they can’t be found in cyberspace: the days of hiding behind a keyboard and perpetrating crimes against the American people without consequence are waning, and we will bring the full force of the American Justice system to disrupt your criminal behavior.”
According to documents filed in this case:
In February 2021, the defendants and their conspirators targeted a township in Union County, New Jersey. They exploited known vulnerabilities to gain control and access to the township’s network and data and used a hacking tool to establish persistent remote access to a particular domain that was registered to Ahmadi.
In or before February 2022, the defendants and their conspirators targeted an accounting firm based in Morris County, New Jersey. They again exploited a known vulnerability to gain unauthorized access and then used a particular hacking tool to establish a connection to a server that was registered to Nickaein and steal data. In March 2022, the defendants launched an encryption attack against the accounting firm; after denying the firm access to some of its systems, Khatibi demanded payment of $50,000 in cryptocurrency and threatened to sell the data on the black market.
The defendants also compromised, and often encrypted and extorted, hundreds of other victims, including an accounting firm based in Illinois; a regional electric utility company based in Mississippi; a regional electric utility company based in Indiana; a public housing corporation in the State of Washington; a shelter for victims of domestic violence in Pennsylvania; a County government in Wyoming; a construction company located in the State of Washington that was engaged in work on critical infrastructure projects; and a state bar association.
Ahmadi, 34, Khatibi, 45, and Nickaein, 30, all residents of Iran, are each charged by indictment with one count of conspiring to commit computer fraud and related activity in connection with computers; one count of intentionally damaging a protected computer; and one count of transmitting a demand in relation to damaging a protected computer. Ahmadi is charged with one additional count of intentionally damaging a protected computer.
The conspiracy charge carries a maximum prison sentence of five years in prison. The intentional damage to protected computers charge carries a maximum sentence of 10 years in prison. The transmission of a ransom demand charge carries a maximum sentence of five years in prison. The offenses also carry a potential maximum fine of $250,000 or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys David E. Malagold and Matthew Feldman Nikic of the Cybercrime Unit in Newark, and Trial Attorney Andrew D. Beaty of the National Security Division in Washington, D.C.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tampa Man Sentenced to More Than Four Years for Felonious Possession of Firearm ChargeRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Malachi Deloch (23, Tampa) was sentenced to four years and seven months in federal prison for possessing a firearm as a convicted felon. Deloch had pleaded guilty on June 14, 2022. He was also ordered to forfeit the semi-automatic pistol used in the offense.
According to court documents, on February 7, 2022, Deloch, a convicted felon, was in possession of multiple firearms, including a black Springfield XD 9mm with an extended magazine. As a convicted felon, Deloch is prohibited from possessing firearms or ammunition under federal law. As pictured below, Deloch was seen openly carrying the firearm in a residential area of Tampa. Prior to his arrest, Deloch fled from Tampa Police Department officers that had arrived on the scene.
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.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Samantha Beckman.
Stratford Man Sentenced to Life in Prison Plus 300 Years for Sexual Exploitation of a MinorRead the Press Release
EL PASO – Johnny George Gonzalez, 35, of Stratford, TX was sentenced to life in prison for numerous counts of sexual exploitation of a minor. United States District Judge Frank Montalvo also sentenced Gonzalez to an additional 300 years in prison to run consecutive to his life sentence.
According to court documents, law enforcement officers with the Ontario Provincial Police encountered Gonzalez in a Dark Web forum wherein members exchanged videos and images of child sexual abuse material. Gonzalez shared links to digital storage folders containing thousands of images of child pornography and child erotica. The case was referred to the FBI and after executing a search warrant at his residence in El Paso, agents discovered over 65 electronic devices, including laptop computers, desktop computers, computer hard drives, cell phones, thumb drives and tablets. To date, approximately one million images and videos constituting child pornography and child erotica have been found on Gonzalez’s devices.
Investigators learned that Gonzalez made surreptitious recordings of pre-pubescent boys and girls in retail stores across El Paso, with a particular focus on their breasts, genitals and buttocks. A thorough review of those devices and his online storage accounts also revealed that Gonzalez had produced no fewer than 13 different series of child sexual abuse material.
During today’s sentencing, the court heard how Gonzalez abused the trust of friends and neighbors in a tight-knit community in North Texas.
On May 25, 2022, Gonzalez pleaded guilty to one count of aggravated sexual abuse of a child and 10 counts of production of child pornography. By pleading guilty, Gonzalez admitted that he filmed himself sexually abusing at least six minor children beginning as early as 2014 and later shared the videos online via cloud storage applications, email and the Dark Web. The children depicted range in age from four to 10 years old. An additional two minor victims were identified between the time of Gonzalez’s plea and today’s sentence.
Gonzalez further admitted that in late July 2021 he traveled from El Paso through New Mexico to Stratford with the intent to engage in a sexual act with one of the minor children.
Gonzalez was arrested on September 9, 2021 and has remained in custody since that time.
“For eight years, Gonzalez documented his depraved sexual abuse through photographs and videos, which he then shared with pedophiles around the world,” said U.S. Attorney Ashley C. Hoff. “The heinous nature of his conduct will digitally live forever and continue to victimize these children. While this sentence will not repair their pain and damage, it will ensure that he will never again have the opportunity to prey upon children.”
“Protecting children from dangerous child predators is a priority for the FBI. The crimes committed by these offenders cause incalculable damage to their young innocent victims,” said Jeffrey R. Downey, Special Agent in Charge of the FBI El Paso Field Office. “I hope today’s sentencing brings some closure to the victims knowing this predator will be in federal prison for a very long time. I want to thank the members of the FBI El Paso’s Crimes Against Children/Human Trafficking task force for their work on this case and their commitment to protecting our most vulnerable population, our children, to ensure justice is served for them.”
The FBI El Paso Division investigated the case with substantial assistance from FBI Dallas-Amarillo Resident Agency. The Ontario (Canada) Provincial Police also contributed to the investigation. This investigation remains ongoing as the FBI attempts to identify additional child victims. To report information related to this investigation, call the El Paso FBI office at 915-832-5000.
Assistant U.S. Attorneys Michelle Winters and Catherine Dos Santos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Steelton Man Charged with Attempting to Kill A Federal WitnessRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Melvin R. Thomas, age 43, of Steelton, Pennsylvania, was indicted by a federal grand jury on intimidation of a witness and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that on August 24, 2022, in Dauphin County, Thomas retaliated against a federal witness who testified in a federal proceeding. The indictment also charges that Thomas used a firearm in furtherance of the retaliation.
The case was investigated by the Federal Bureau of Investigation and the Steelton Police Department. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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St. Paul Man Sentenced to 43 Years in Prison for Targeting More Than 1,100 Minor Victims in Sextortion SchemeRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 516 months in prison followed by a lifetime term of supervised release for victimizing more than 1,100 minor girls across the country and abroad in an extensive online sextortion scheme, announced United States Attorney Andrew M. Luger.
“For several years, Yue Vang victimized more than 1,000 young girls – in Minnesota and beyond – through a vicious sextortion scheme. Using popular social media apps to prey on his victims, Vang’s manipulation began with compliments and expressions of flattery, which quickly turned into threats and extortion,” said U.S. Attorney Andrew Luger. “Today’s 40-year prison sentence shows that the reprehensible crime of child sexual exploitation will not be tolerated.”
“There are few crimes as damaging and traumatic to a young person as sextortion. Vang is a predator who targeted innocent and impressionable young girls, exploiting their innocence for pictures and videos. He robbed them of their childhood and forever altered their lives and the lives of their families,” said Michael Paul, FBI Special Agent in Charge, Minneapolis Division. “This case demonstrates the extensive reach of social media and the irreparable trauma one predatory individual inflicted on over a thousand young girls. However, the ensuing investigation highlights the immense collaboration and dedication of law enforcement partners throughout the country who worked tirelessly to identify the victims and hold Vang accountable for his atrocious crimes.”
According to court documents, for at least five years, Yue Vang, 31, created and used multiple Internet applications and social media services, including Kik, Snapchat, and Skype, to communicate with hundreds of minor girls throughout the United States and elsewhere. Vang created fake female personae to prey on vulnerable minor girls he met online in order to entice and coerce them to create sexually explicit images and videos to send to him. Vang also threatened to disseminate sexually explicit images of the minor victims to their family members, friends, and classmates, unless they created and sent him additional images and videos of themselves nude or engaging in sexually explicit conduct. For example, in June 2016, Vang contacted a 15-year-old girl and threatened to distribute sexually explicit pictures of her to her classmates and parents to “ruin her life” unless she complied with Vang’s demands to send additional sexually explicit images and videos.
On June 2, 2022, Vang pleaded guilty to two counts of production of child pornography, one count of possession of child pornography, and one count of interstate communications with intent to extort. Vang was sentenced today in U.S. District Court before Judge Eric C. Tostrud.
To date, at least 750 minor females have been identified, although law enforcement is attempting to confirm the identity of many other victims. Anyone who believes they may have been a victim of Vang’s offenses or who has information about this matter is encouraged to visit www.fbi.gov/resources/victim-services/seeking-victim-information/seeking-victims-in-yue-vang-investigation or www.Justice.gov/usao-mn/child-sextortion-victim-information.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Click on the “resources” tab for information about Internet safety education.
This case was the result of an investigation conducted by the FBI Minneapolis Field Office and multiple FBI Field Offices, the St. Paul Police Department, the Minnesota ICAC Task Force, the Chandler (Arizona) Police Department, the Delhi Township (Ohio) Police Department, and the Iowa Department of Criminal Investigation.
Assistant U.S. Attorney Chelsea A. Walcker and former Assistant U.S. Attorney Miranda E. Dugi prosecuted the case.
South Bend Man Sentenced to 121 Months in PrisonRead the Press Release
SOUTH BEND – Andre Pittman, 35 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. on his plea of guilty to two counts; a hobbs act robbery, and brandishing a firearm during and in relation to that crime of violence, announced United States Attorney Clifford D. Johnson.
Pittman was sentenced to 121 months in prison followed by 2 years of supervised release.
According to documents in this case, in June 2021, Pittman robbed a liquor store in South Bend at gunpoint. After brandishing a handgun at the store clerk, he made off with cash from the register. Pittman was later caught and admitted to committing multiple robberies, including the armed robbery of the liquor store. Pittman has a lengthy criminal history which includes a prior federal conviction for the armed robberies of other retail stores. He was out of federal prison for 1 ½ months before embarking on his recent robbery spree.
This case was investigated by the Federal Bureau of Investigation with the assistance of the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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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Rochester Man Going to Prison for More Than 15 Years for Fatal Fentanyl OverdoseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jacob Daniel Pimentel-Hernandez, 22, of Rochester, NY, who was convicted of possession with intent to distribute fentanyl and carrying a firearm during a drug trafficking crime, was sentenced to serve 188 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on June 2, 2021, Pimentel-Hernandez sold fentanyl to two individuals, identified as E.G. and M.H., in the area of the Valero gas station at 799 North Clinton Avenue in Rochester. After ingesting the fentanyl, E.G. and M.H. began to drive home but pulled over on the side of the road on Interstate 490 in Gates, NY, and were later found unconscious and unresponsive in the car. M.H. was taken to Unity Hospital but never regained consciousness and died a day later, on June 3, 2021. That same day, an undercover law enforcement officer purchased fentanyl from Pimentel-Hernandez at the same Valero gas station. Pimentel-Hernandez was subsequently arrested, at which time investigators recovered $580 in cash, quantities of fentanyl, para-fluorofentanyl, cocaine, and a loaded .380 caliber pistol from the defendant.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Greater Rochester Area Narcotics Enforcement Team (GRANET); the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief David M. Smith.
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Recording Artist Robert Kelly Convicted on Federal Child Pornography and Exploitation ChargesRead the Press Release
CHICAGO — A federal jury in Chicago today convicted recording artist ROBERT SYLVESTER KELLY, also known as “R. Kelly,” on child pornography and exploitation charges.
Evidence at the four-week trial in U.S. District Court in Chicago revealed that Kelly enticed multiple girls to engage in sexual activity and recorded some of the abuse on videotape. Kelly met the victims in the late 1990s and engaged in sex acts with them while they were under the age of eighteen.
Kelly, 55, of Chicago, was convicted on three counts of producing child pornography and three counts of enticing a minor to engage in sexual activity. Each count of producing child pornography carries a mandatory minimum sentence of ten years in federal prison and a maximum of 20 years. The maximum sentence for each count of enticement of a minor is ten years. In all, Kelly faces a sentence of ten to 90 years in prison.
U.S. District Judge Harry D. Leinenweber did not immediately set a sentencing date.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; R. Sean Fitzgerald, Acting Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the Chicago Police Department. Assistant U.S. Attorneys Jeannice W. Appenteng, Elizabeth R. Pozolo, Jason A. Julien, and Brian F. Williamson represented the government.
The jury acquitted Kelly on seven other counts, including one count of child pornography, one count of conspiracy to obstruct justice, one count of conspiracy to receive child pornography, two counts of receiving child pornography, and two counts of enticing a minor to engage in criminal sexual activity. The jury also acquitted two co-defendants, who were former employees of Kelly’s music business: DERREL MCDAVID, 61, of Chicago (acquitted of one count of conspiracy to obstruct justice, one count of conspiracy to receive child pornography, and two counts of receiving child pornography) and MILTON BROWN, also known as “June Brown,” 56, of Chicago (acquitted of one count of conspiracy to receive child pornography).
“The guilty verdicts finally hold Robert Kelly accountable for the sexual abuse of a 14-year-old girl, and they help right the wrongs that occurred in a prior prosecution in Cook County,” said U.S. Attorney Lausch. “The damage Mr. Kelly inflicted on his victims is immeasurable. I want to thank the victims for their strength, perseverance, and courage in coming forward to testify at trial. With regard to the not-guilty verdicts, we respect the jury’s decision. While certain aspects of the charges and the trial made it difficult to obtain convictions for all of the charged conduct, it is clear that justice has been served by the guilty verdicts returned today.”
Recidivist Drug Trafficker Sentenced to Additional 15 Years in Federal Prison for Heroin TraffickingRead the Press Release
INDIANAPOLIS – Derrick Outlaw, 48, of Indianapolis, was sentenced to 15 years in federal prison after pleading guilty to possession with intent to distribute over 1 kilogram of a mixture or substance containing heroin.
According to court documents, on April 18, 2021, DEA was investigating a drug trafficking organization operating in Indianapolis, and they identified Outlaw as a heroin distributor for the organization. On April 20, 2021, after conducting surveillance and seeing Outlaw drive different vehicles to various locations in and around Indianapolis, law enforcement officers stopped him at an Indianapolis gas station.
Outlaw agreed to speak to officers and admitted that there was heroin inside the vehicle. Law enforcement officers located 1.36 kilograms of a heroin and fentanyl mixture. According to the DEA, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. Law enforcement officers also located two cellular telephones, one of which Outlaw used to conduct his drug trafficking business. Outlaw admitted that he drove to Camby, Indiana on April 20 to pick up 1.5 kilograms of heroin for which he was to receive $70,000 in U.S. currency.
A search warrant was executed at Outlaw’s apartment where law enforcement officers located $26,521 in rubber-banded U.S. currency and multiple cellular telephones. Prior to committing the April 20, 2021, offense, Outlaw served a ten-year sentence in federal prison for trafficking cocaine.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
DEA investigated the case. Sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Outlaw be supervised by the U.S. Probation Office for 10 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lindsay Karwoski who prosecuted this case.
Randolph County man admits to fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Zane Matthew Young, of Coalton, West Virginia, has admitted to possessing fentanyl, United States Attorney William Ihlenfeld announced.
Young, 26, pleaded guilty yesterday to one count of “Possession with Intent to Distribute Fentanyl.” Young admitted to possessing fentanyl in Upshur County in November 2020 with the intent to distribute it.
Young faces up to 20 years of incarceration and a fine of up to $1,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Previously Convicted Felon Sentenced to 57 Months in Federal Prison for Unlawful Possession of a Firearm Following Arrest on Outstanding WarrantsRead the Press Release
INDIANAPOLIS – Lamont King, 22, of Indianapolis, was sentenced to 57 months in federal prison after pleading guilty to unlawful possession of a firearm by a convicted felon.
According to court documents, on April 11, 2021, law enforcement officers saw King exit from a residential apartment building. King was under surveillance because he was a suspect in a March 30, 2021, armed robbery and had two outstanding arrest warrants stemming from other charges. The Indianapolis Metropolitan Police Department Special Weapons and Tactics (IMPD SWAT) was in the vicinity because King was known to carry a firearm on his person.
IMPD SWAT approached King to arrest him and commanded him to stop. King was at the driver’s side door of a vehicle when he saw the officers approach. King moved towards the rear bumper and removed a pistol from his waistband dropping it on the ground. King was taken into police custody.
Police recovered the loaded .40 caliber semiautomatic pistol and located a plastic baggie containing 21 pills of 30 mg Oxycodone Hydrochloride in King’s pants pocket. King was transported to the Marion County Jail. Following an interview with law enforcement officers, a single 30 mg Oxycodone Hydrochloride pill was located on the floor underneath where King had been sitting.
King’s outstanding warrants were for failure to appear. King failed to appear in court for a probation violation related to a 2018, armed robbery felony conviction, and failed to appear related to a 2020 arrest for drug possession and drunk driving offenses. King is prohibited from possessing a firearm under federal law due to his 2018 felony conviction.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office; and Police Chief Randal Taylor of the Indianapolis Metropolitan Police Department (IMPD); made the announcement.
FBI investigated the case in conjunction with IMPD. Sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that King be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Previously Convicted Child Sexual Abuser Sentenced to 2 Years in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
INDIANAPOLIS – Darren Farris, 46, of Indianapolis, was sentenced to two years in federal prison after pleading guilty to failing to register as a sex offender.
According to court documents, on December 20, 2013, Farris was convicted of aggravated criminal sexual abuse of a minor, in Lasalle County in Ottawa, Illinois. As a result, Farris was required to register as a sex offender for life under the Sex Offender Registration and Notification Act.
On or about July 14, 2019, Farris traveled from Tampa, Florida to Indianapolis via Greyhound bus. Between July 14, 2019, and February 5, 2021, Farris resided in Indianapolis, but knowingly failed to register as a sex offender.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Joseph “Dan” McClain, U.S. Marshal for the Southern District of Indiana, made the announcement.
The U.S. Marshals Service investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Farris be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Farris must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who is prosecuting this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Plover Tax Preparer Sentenced to 8 MonthsRead the Press Release
MADISON, WIS. - Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James Canfield, 74, Plover, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 8 months in federal prison for aiding in the preparation of false tax returns filed with the Internal Revenue Service. Canfield pleaded guilty to this charge on January 4, 2022. Canfield also will be permanently prohibited by the IRS from preparing or filing any tax returns for third parties.
Canfield owned and operated Advanced Accounting Concepts, Inc., a business located in Plover. As part of his business, Canfield prepared tax returns for third parties in exchange for a fee. Between 2013 and 2018, Canfield prepared and electronically submitted tax returns to the IRS on behalf of clients with both exaggerated, and in some instances, fabricated business expenses resulting in unjustified deductions for the business use of the clients’ homes. This false information fraudulently reduced the amount of taxes his clients owed. Despite being told by clients that they primarily used their homes as their personal residence, Canfield often attributed 100% of their home for business, then took ordinary home expenses as deductible business expenses.
Judge Peterson noted that although Canfield did not directly profit financially from the fraudulent refunds or lower taxes paid by clients, he knowingly engaged in preparing the false returns to generate repeat business from the clients and expand his client base through favorable client recommendations. In choosing a sentence, Judge Peterson considered Canfield’s age and health, as well as the fact that Canfield’s conduct was “sustained and repeated.” Canfield had previously been fined on two separate occasions by the IRS for preparing returns with unjustified business expenses and claiming personal living expenses as business deductions. After the second time Canfield was fined, in 2012, IRS revenue agents met with him and explained in detail how deductions he was submitting were unlawful under IRS regulations. Nonetheless, Canfield continued to prepare returns using the same false deductions for the next six years.
The charge against Canfield was the result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorneys Robert A. Anderson and Meredith P. Duchemin.
Philadelphia Man Admits to Unlawful Possession of Firearm Recovered After High-Speed Chase Resulting in Multi-Car Crash in North PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Khaseem White, 24, of Philadelphia, PA, pleaded guilty before United States District Court Judge Karen Marston to the charge of unlawful possession of a firearm by a convicted felon.
On May 4, 2021, Philadelphia Police officers attempted to conduct a traffic stop of the defendant and his associate, who was driving. When officers approached, White and his associate suddenly made a U-turn and drove off at a high rate of speed, resulting in a car accident involving at least six cars. There was substantial damage to the defendant’s car and several others. An officer then saw the defendant climb out of his car and cross the street. When the officer caught up to White, the officer saw a black handgun with an extended magazine laying on the ground near him.
As part of the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, agents discovered videos of the defendant holding a similar firearm with an extended magazine as the one recovered near White, including in a music video posted to his social media account. Agents also learned that the defendant was prohibited from possessing firearms because he had previously been convicted of a felony offense.
“Our Office is committed to prosecuting those who commit violent crimes including illegally possessing firearms, which is a federal crime” said U.S. Attorney Romero. “In this case, a previously convicted felon illegally possessed a loaded firearm, which presents a clear danger to our community that is struggling under a surge of violent gun crime.”
“This investigation is a result of our outstanding partnership with the Philadelphia Police Department,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Convicted felons who carry firearms pose a serious risk to public safety. ATF will continue to aggressively pursue these investigations and work with our law enforcement partners to remove violent criminals from our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.
Pharmaceutical Company Akorn Operating Company LLC Agrees to Pay $7.9 Million to Resolve Allegations of Fraudulent BillingRead the Press Release
BOSTON – Akorn Operating Company LLC (Akorn), an Illinois-based pharmaceutical company, has agreed to pay $7.9 million to resolve allegations that it caused Medicare to pay false claims. Specifically, Akorn caused Medicare Part D to pay for three Akorn generic drugs that were no longer eligible for Medicare coverage. As part of the settlement, Akorn admits that it continued to sell generic drugs under obsolete prescription-only labeling.
FDA-approved “prescription only” (Rx-only) drugs may be dispensed only pursuant to a prescription. Medicare Part D reimburses for Rx-only drugs, but it does not reimburse for “over the counter” (OTC) drugs, which may be purchased by retail customers without a prescription. Subject to FDA approval, pharmaceutical manufacturers may seek to fully convert a brand-name Rx-only drug to an OTC drug. After FDA’s approval of a drug’s full conversion to OTC status, the drug is no longer considered an Rx-only product and makers of generic equivalents, like Akorn, are then required either to seek FDA approval for their own OTC switch or to seek withdrawal of their generic’s Rx-only approval and cease marketing it.
Akorn is a pharmaceutical manufacturer which sold, among other products, the following generic drugs: (1) Diclofenac Sodium 1%, a generic nonsteroidal anti-inflammatory cream (Diclofenac); (2) Olopatadine Hydrochloride 0.1% and 0.2%, a generic antihistamine eyedrop (Olopatadine); and (3), Azelastine Hydrochloride 0.15%, a generic antihistamine nasal spray (Azelastine) (collectively, Akorn Generics) during the relevant time. The FDA approved a full Rx-to-OTC conversion of the brand names of Diclofenac and Olopatadine in February 2020 and for Azelastine in June 2021.
As part of the settlement, Akorn has admitted that it delayed seeking the required conversions for the Akorn Generics from Rx-only to OTC status. Akorn continued to sell newly manufactured units of the Akorn Generics under their obsolete Rx-only labeling rather than beginning the process of converting these products to OTC or withdrawing their approval and ceasing their distribution.
Akorn did not apply to the FDA for an OTC conversion of Diclofenac until March 2021 or for Olopatadine until January 2021. Akorn eventually sought to withdraw its FDA approval for Azelastine, rather than convert it to OTC use, but did not do so until January 2022. FDA implemented this withdrawal in February 2022.
Under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases the Department of Justice credited Akorn’s cooperation in this matter.
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Albermarle, LLC v. Akorn Operating Company LLC. (D. Mass. 2021). The whistleblower will receive approximately $946,000 from the recovery.
United States Attorney Rachael S. Rollins and FBI SAC Bonavolonta made the announcement. Assistant U.S. Attorney Abraham R. George, Chief of Rollins’ Affirmative Civil Enforcement Unit, and Senior Trial Counsel Augustine Ripa of the Department of Justice handled the matter.
Parkersburg Man Pleads Guilty to Federal Tax CrimeRead the Press Release
CHARLESTON, W.Va. – Christopher Daniels, 52, of Parkersburg, pleaded guilty today to filing a false federal income tax return, after reporting that his moving business had suffered losses when it had made a six-figure profit.
According to court documents and statements made in court, from at least 2013 through at least 2020, Daniels owned and operated Accedia Moving Services LLC. Daniels admitted that he falsely claimed or inflated business expenses to report a taxable income loss of $18,898 on his 2017 U.S. Individual Income Tax Return. Daniels admitted his business should have reported a profit of $187,771 for tax year 2017.
Daniels further admitted that he reported false information on his U.S. Individual Income Tax Return forms for tax years 2016 through 2019. Daniels reported taxable income losses totaling $164,491 for those tax years when he should have reported income totaling $410,459. The income taxes owed and due total $148,653.
Daniels admitted to failing to properly withhold $119,417.46 in employment taxes, including federal taxes and the employer-due portion of Social Security and Medicare taxes. Daniels also admitted to failing to pay $12,018 in West Virginia Workers’ Compensation premiums on those unreported wages.
Daniels admitted that the total amount of tax liability that he wrongly withheld from state and federal entities is approximately $280,088.
Daniels is scheduled to be sentenced on December 15, 2022, and faces a maximum penalty of three years in prison, one year of supervised release, and a $250,000 fine. Daniels also agreed that he owes $280,088 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Internal Revenue Service-Criminal Investigation.
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Kathleen Robeson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-126.
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Operation Hard Pressed Results in Charges Against Seven Defendants for Selling Fentanyl, Cocaine and Fake Xanax PillsRead the Press Release
Seven suspects were arrested Tuesday in Tulsa for allegedly taking part in a drug trafficking organization operating in the Tulsa metro area that distributed counterfeit Xanax pills, cocaine, and fentanyl.
“The U.S. Attorney’s Office and our law enforcement partners are committed to dismantling and holding accountable criminal organizations that endanger communities across Oklahoma,” said U.S. Attorney Clint Johnson. “The seven arrests and searches at 10 locations were the result of a meticulous investigation into defendant Tristan Barlow’s drug trafficking organization. Barlow and six coconspirators are alleged to have distributed deadly fentanyl, cocaine and thousands of counterfeit Xanax pills in the Northern District of Oklahoma and elsewhere. My office will seek to hold these alleged drug traffickers accountable in a federal court.”
Agents and task force officers conducted searches on multiple residences, stash houses, a storage unit, and two parcels of rural land. During the searches, law enforcement located a tent set up at a residence with a pill press and ventilation system, thousands of pills, cash, and nineteen firearms, which included three AR-15 rifles, an AK-47, an Uzi machine gun, and handguns.
A Criminal Complaint and affidavit filed late Wednesday in federal court alleged that Barlow, 30, led the criminal operation and that members included Zachary Caughron, 30; Natalie Foutch, 20; Richard Markham, 35; Kolby Milford, 27; Christopher Ruff, 30; and Jacob Shoate, 21. Defendants were charged with drug conspiracy and with possession of a firearm in furtherance of a drug trafficking crime.
According to the documents, the drug trafficking organization imported raw clonazolam powder from Europe that was pressed into hundreds of thousands of counterfeit Xanax pills. Investigators estimate that Barlow provided some of his distributors between 10,000 and 20,000 pills per week and others between 20,000 and 40,000 per week for sale within the Northern District of Oklahoma and elsewhere. The drug trafficking organization further received fentanyl and cocaine from a source of supply in Mexico.
In 2022, law enforcement conducted multiple controlled buys of the counterfeit Xanax pills, cocaine and fentanyl. The counterfeit pills were stamped with GG249 and appeared to be Xanax but were later tested in a laboratory and found to contain clonazolam as well as methamphetamine.
“The successful arrests of numerous alleged members of this sophisticated drug trafficking organization, responsible for the distribution of deadly quantities of various drugs, to include cocaine and fentanyl, throughout our neighborhoods, is one step closer to a safer Oklahoma,” said DEA Special Agent in Charge Eduardo A. Chávez, who oversees operations in the State. “Our special agents, intelligence analysts, and task force officers spent countless hours, along with many of our law enforcement partners, ensuring justice is served for those who profit from illicit drug trafficking.”
The arrests and searches were conducted as part of Operation Hard Pressed, an Organized Crime Drug Enforcement Task Force investigation led by the Drug Enforcement Administration and Assistant U.S. Attorney Ben Tonkin. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and Tulsa County Sheriff’s Office are the investigative agencies.
This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. All defendants are presumed innocent until proven guilty in a court of law. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt.
Oak Grove Man Indicted by Federal Grand Jury for Drug TraffickingRead the Press Release
Paducah, KY – A Federal Grand Jury returned an indictment yesterday against Michael Crawford for possessing methamphetamine with the intent to distribute it.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Brian Laird of the Paducah Police Department, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to the indictment, Michael Crawford, 28, of Oak Grove, Kentucky, was charged with possession with the intent to distribute over 50 grams of methamphetamine. The defendant will be scheduled to make his initial court appearance at a later date before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted at trial, he faces not less than 10 years, nor more than life, in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Paducah Police Department and the FBI Louisville Field Office’s Paducah Resident Agency are investigating the case.
This case is being prosecuted by Assistant U. S. Attorney Leigh Ann Dycus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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New York-Presbyterian/Queens Hospital Settles Allegations of Federal Health Care Fraud for over $2.5 MillionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Queens Hospital. The settlement agreement, which requires a payment of over $2.5 million, addresses allegations that a former physician at New York-Presbyterian/Queens performed services that were not medically necessary and then billed federal health care programs for those services. The services involved the replacement of implantable cardioverter defibrillator (ICD) pulse generator batteries.
“This more than $2.5 million settlement rectifies that New York-Presbyterian/Queens was paid by the federal government for unnecessary procedures,” stated United States Attorney Peace. “This Office is committed to combatting fraud and abuse of our federal health care programs, especially when such conduct potentially puts patients at risk.”
Procedure Overview
An ICD is akin to a pacemaker. It is placed under a patient’s skin and is designed to ensure that the patient’s heart beats on a regular rhythm. ICDs run on batteries. Like all batteries, ICD batteries will eventually fail, which could lead to disastrous consequences, even death. But replacing an ICD battery involves a surgical procedure, which carries risk. Physicians closely monitor the functioning of ICD batteries so that they replace the batteries when they are nearing the end of their lives, but no earlier. That way, physicians can balance the risks associated with a failing ICD battery against the risk of the procedure needed to replace that battery. Put in more technical terms, the standard of care is to replace an ICD battery only when it reaches what is called the elective replacement interval (ERI) as determined by device interrogation conducted by specially equipped computerized monitors.
Settlement
A physician who was formerly affiliated with New York-Presbyterian/Queens repeatedly replaced ICD batteries earlier than was necessary. That is, he repeatedly replaced ICD batteries before they reached the ERI. Such batteries were functioning normally. He therefore subjected his patients to unneeded and risky surgical procedures. New York-Presbyterian/Queens then submitted claims for payments to federal health care programs for these procedures.
As a result of an internal investigation, New York-Presbyterian/Queens learned of the physician’s conduct. It voluntarily self-disclosed that conduct to the United States Department of Health and Human Services, Office of Inspector General. The settlement here, which requires New York-Presbyterian/Queens to pay $2,588,882.50 to the United States, resolves claims that the conduct violated the federal False Claims Act.
The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.
New Bedford Man Pleads Guilty to Possessing Heroin Intended for DistributionRead the Press Release
BOSTON – A New Bedford man has pleaded guilty in federal court in Boston in connection with heroin distribution.
Ramon Serrano, 43, pleaded guilty on Sept. 12, 2022 to possession with intent to distribute 100 grams or more of heroin. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 11, 2023. Serrano was charged in July 2019.
During a search of Serrano’s residence in Feb. 20, 2019, approximately $27,000, digital scales, cellular telephones and a money counter were recovered. Additionally, over 544 grams of fentanyl and heroin as well as over 206 grams of cocaine – divided into separate plastic bags for distribution – were also found at Serrano’s residence.
The charge of possession with intent to distribute over 100 grams of heroin provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and New Bedford Police Chief Paul Oliveira made the announcement. Assistant U.S. Attorney Craig Estes of Rollins’ Narcotics and Money Laundering Unit is prosecuting the case.
Native of Mexico Indicted on Illegal Reentry ChargeRead the Press Release
HARRISBURG, The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Wence-Mendoza, age 45, of Michoacán, Mexico, was indicted by a federal grand jury on a charge of Illegal Reentry.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about July 24, 2022, Wence-Mendoza was found in Cumberland County Pennsylvania after previously having been removed from the United States. The indictment also alleges that Wence-Mendoza had been removed from the United States through Laredo, Texas, and reentered without first obtaining legal permission to do so.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Lower Allen Township Police Department. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Monroe Man in Possession of Firearm at Local High School Sentenced to Federal PrisonRead the Press Release
MONROE, La. - United States Attorney Brandon B. Brown announced that Montrelle D. Jones, 21, of Monroe, Louisiana, has been sentenced by United States District Judge Terry A. Doughty to 78 months (6 years, 6 months) in prison, followed by 3 years of supervised release, on firearm charges. Jones was indicted by a federal grand jury on January 26, 2022 and charged with possession of a firearm by a prohibited person and possession of a firearm in a school zone. He pleaded guilty to the charges on March 28, 2022.
These charges stem from an incident on January 14, 2022, when a Monroe Police Department officer who was working off-duty security at the Neville High School basketball game on the school campus was alerted by several individuals that there were a group of males fighting outside in front of the gym. As the off-duty officer made his way outside to break up the fight, he observed approximately 30 individuals who were in an agitated state gathering in the foyer of the gym. The officer immediately went inside the foyer and observed Jones lift up his shirt with his left hand and saw he had a Glock-style handgun with an extended magazine secured in his waistband. The officer went to Jones and placed one hand on the weapon and the other on his shoulder and brought him to the nearest wall. He placed Jones’ gun on the floor and took Jones into custody. The officer observed several people flee from the foyer. Jones was escorted to the police vehicle and secured. The gun was taken into evidence and identified as a Glock Model 17, 9mm pistol.
At the time of Jones’ arrest, he was the subject of a court order which had been issued in Ouachita Parish, Louisiana on June 25, 2021 restraining him from harassing, stalking, or threatening an intimate partner. That order included a finding that Jones was a credible threat to the physical safety of the intimate partner, which prohibited him from possessing any firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Monroe Police Department and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joseph Lowers, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Lowers, 21, pleaded guilty on September 12, 2022, to one count of “False Statement in Connection with the Acquisition of a Firearm.” Lowers admitted to making a false written statement intended to deceive a firearms dealer during the purchase of a semi-automatic rifle.
Lowers faces up to 5 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Maryland man sentenced for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sven Alston, of Baltimore, Maryland, was sentenced today to 58 months of incarceration for distributing fentanyl, United States Attorney William Ihlenfeld announced.
Alston, age 33, pleaded guilty in October 2019 to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Alston was found in a motel in Spring Mills, West Virginia, in November 2018 with 30 grams of fentanyl, 39 grams of a synthetic opiate known as U47700, and a cutting agent, as well as digital scales and plastic baggies. The amount of fentanyl seized was enough to kill more than 10,000 people. Other drugs were also found in the room, along with $9,600 in cash.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office; the Berkeley County Sheriff’s Office; the Jefferson County Sheriff’s Office; the Martinsburg Police Department; the Charles Town Police Department; and the Ranson Police Department investigated. The United States Marshals assisted.
Chief U.S. District Judge Gina M. Groh presided.Find the original case here: https://www.justice.gov/usao-ndwv/pr/33-indicted-heroin-cocaine-and-fentanyl-distribution-operation-berkeley-and-jefferson
Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Damieon Lamont Ray, of Middle River, Maryland, was sentenced today to 36 months incarceration for distributing fentanyl, United States Attorney William Ihlenfeld announced.
Ray, 28, pleaded guilty in May 2022 to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Ray admitted to distributing fentanyl in Hampshire County in June of 2020.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Man Indicted in St. Louis on Child Pornography, Cyberstalking ChargesRead the Press Release
ST. LOUIS – A man from Hawaii appeared in U.S. District Court in St. Louis Wednesday to face charges accusing him of stalking teens online and distributing child pornography.
Gerardo Javier Montes, 31, was indicted July 27 on one count of distribution of child pornography, one count of attempted production of child pornography and one count of cyberstalking. He was arrested in Hawaii July 29 and arrived in St. Louis on Tuesday. He pleaded not guilty to the charges Wednesday.
The indictment alleges that Montes distributed child pornography online on Dec. 8, 2021. It also says between Dec. 6, 2021 and Jan. 15, 2022, Montes tried to persuade a 14-year-old girl to send him nude pictures of herself by threatening to post nude photos of her that he had already obtained, and then did so when she refused.
In a detention motion, Assistant U.S. Attorney Kyle T. Bateman said that in addition to the Missouri teen, Montes targeted a 17-year-old in Oklahoma, a 16-year-old in Texas, a 13-year-old in Hawaii, a 26-year-old in California and other, as-yet-unidentified minors.
Montes found some of his targets online, in chat rooms or messaging boards discussing suicide or depression, the motion says. He also pretended to be a young girl to get other young girls to send him child sex abuse material, the motion says.
The case was investigated by the FBI. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.
Officials say the number of cases of sextortion have been rising. The National Center for Missing and Exploited Children has more information, including tools to protect children and others from becoming victims.
Maine Recidivist Sex Offender Indicted for Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Maine recidivist sex offender has been indicted by a federal grand jury in Boston for failing to register as a sex offender when he moved from Haverhill, Mass. to Fryeburg, Maine.
Frank Boyd, 53, was indicted on one count of failure to register as a sex offender, in violation of the Sex Offender Registration and Notification Act. Boyd was previously charged by complaint on Aug. 4, 2022 and is currently in state custody. He appeared in federal court in Boston yesterday.
According to the charging documents, Boyd was a Level 3 Sex Offender who had been convicted of sex offenses against children in 2001 and 2009. Accordingly, he was required to register as a sex offender and update his registration any time he moved or changed employment.
In 2020, Boyd registered and listed a Haverhill, Mass. address as his residence. It is alleged that on or around March 23, 2021, police determined that Boyd was no longer living at the Haverhill residence he had listed on his registration form and was later found to have moved to Fryeburg, Maine. He did not register as a sex offender in Maine nor update his sex offender registration in Massachusetts at any point prior to his arrest on state charges on July 27, 2022. Boyd has two prior state court convictions in 2009 and 2015 for failure to register as a sex offender.
The charge of failure to register as a sex offender provides for a sentence of up to 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; and Kevin Neal, Acting U.S. Marshal for the District of Maine made the announcement today. The Haverhill and Fryeburg (Maine) Police Departments provided valuable assistance. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes 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.
MS-13 Leader Agrees to Plead Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – One of the leaders of a local MS-13 clique has agreed to plead guilty to racketeering conspiracy.
Edwin Amaya Mejia Alvarado, a/k/a “Duende,” 22, a Salvadoran national previously residing in East Boston, has agreed to plead guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as racketeering or RICO conspiracy. The Court deferred acceptance of the proposed plea agreement until sentencing, which U.S. District Court Judge Indira Talwani scheduled for Jan. 19, 2023. Amaya Mejia was indicted in April 2019.
MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras, and Guatemala. MS-13 gang members often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement and others whom the gang views as a threat. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. According to court documents, Amaya Mejia was a member and one of the local leaders of the Huntington Locos Salvatrucha (HLS) clique of MS-13, which operated in the cities of Boston, Lynn, Everett, Chelsea, Somerville and other parts of Massachusetts.
The charge of RICO conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The defendant also faces deportation upon the completion of his sentence. 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.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County District Attorney Kevin Hayden; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan W. Blodgett; Boston Police Commissioner Michael Cox; Chelsea Police Chief Brian A. Kyes; Lynn Police Chief Christopher P. Reddy; and Revere Police Chief David Callahan made the announcement today.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Sentenced for Bank Fraud ConspiracyRead the Press Release
BOSTON – A Lynn man was sentenced on Sept. 12, 2022 for his involvement in a scheme to defraud a financial institution and to obtain money from its customers’ accounts using fraudulent identification documents.
Judemario Josaphat, Jr., 26, was sentenced by U.S. District Court Judge Denise J. Casper to 25 months in prison and three years of supervised release. On Jan. 20, 2022, Josaphat pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Josaphat participated in and, at times, directed a scheme to defraud a financial institution. To carry out the scheme, Josaphat and others used fraudulent identification documents, among other means, to withdraw money from customers’ accounts at a federally insured bank in the form of checks and cash. The fraudulently obtained funds were then deposited in other bank accounts opened in the names of fictitious business entities before being withdrawn again. Between December 2017 and February 2018, Josaphat and his co-conspirators sought to withdraw over $800,000 from customers’ accounts, resulting in losses to the bank of over $350,000.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Luchese Crime Family Soldier and Five Others Charged in Connection with Operating Long-Running Illegal Gambling BusinessRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging six defendants for their roles overseeing and operating a large-scale illegal, online gambling business under the protection of the Luchese organized crime family. In operation for more than 15 years, the gambling business known as “Rhino Sports,” utilized an offshore website and dozens of bookmakers in the New York area to take millions in illegal sports bets.
Four of the defendants, Luchese crime family solider Anthony Villani and associates Louis Tucci, Jr., Dennis Filizzola and James Coumoutsos, were arrested at their residences in the New York area, and are scheduled to be arraigned this afternoon by United States Magistrate Judge Roanne L. Mann. A fifth defendant, bookmaker Michael Praino, was arrested in West Palm Beach, Florida and will make his initial appearance tomorrow morning in federal court in West Palm Beach, Florida.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, this conduct demonstrates how members of La Cosa Nostra continue to engage in illegal gambling operations and money laundering money-marking schemes that lead to threats of violence against anyone who stands in their way and has resulted in millions of dollars in profits to the Luchese crime family,” stated United States Attorney Peace. “These charges illustrate this Office’s continued commitment to rooting La Cosa Nostra out of New York.”
Mr. Peace thanked the New York City Police Department, New York State Police, and the Westchester County Police for their assistance in the investigation.
"Members of the mafia are not giving up the tried and true methods of criminal behavior, even in the face of the burgeoning world of legal gambling. As we allege, a Luchese soldier and other family members ran an illegal gambling operation and offered their clientele the same twisted customer service: do what they say or face terrifying consequences. One thing these criminals can bet on - the FBI will continue our pursuit," stated Assistant Director-in-Charge Driscoll.
As alleged in the indictment and court filings, defendant Anthony Villani, an alleged Luchese solider, oversaw a large-scale illegal gambling business called Rhino Sports (the “Gambling Business”). The Gambling Business was in continuous operation from at least 2004 through December 2020. During that period, the Gambling Business was hosted online using offshore servers in Costa Rica and employed local bookmakers to pay and collect winnings in cash. Records obtained from the Gambling Business’s website indicated that Villani’s illegal gambling operation regularly took bets from between 400 and 1,300 bettors each week, most of whom were based in New York City and the metropolitan area. As alleged, Villani’s bookmakers regularly included members and associates of the Luchese crime family and other La Cosa Nostra families. As part of the scheme, Villani employed co-conspirators Louis Tucci, Jr. and Dennis Filizzola, as runners to assist in operating the business. Villani is alleged to have received more than $1 million annually from the business. During law enforcement searches related to this matter in December 2020, agents recovered over $407,000 in cash from one of Villani’s residences, as well as brass knuckles and gambling ledgers.
The unsealed indictment charges Villani with racketeering in connection with participation in various criminal schemes, including illegal gambling, money laundering and attempted extortion. As one part of the money laundering, Villani and co-defendant Filizzola used gambling proceeds to purchase U.S. Postal Service money orders disguised as rent payments to a property owned by Villani. Further, between April 2020 and October 2020, Villani is alleged to have attempted to extort an individual identified as John Doe in the indictment, including by telling John Doe: “I’m telling you right now, you don’t get this money – [expletive] run away.”
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald and Antoinette N. Rangel are in charge of the prosecution. Assistant United States Attorney Claire S. Kedeshian is handling forfeiture in this case.
The Defendants:
ANTHONY VILLANI
Age: 57
Elmsford, NYJAMES COUMOUTSOS (also known as “Quick”)
Age: 59
Bronx, NYDENNIS FILIZZOLA
Age: 58
Cortlandt Manor, NYMICHAEL PRAINO (also known as “Platinum”)
Age: 44
Bronx, NYLOUIS TUCCI, JR. (also known as “Tooch”)
Age: 59
Tuckahoe, NYLong Beach Dockworkers Charged in Conspiracy to Fraudulently Bill Union's Health Plan for Sexual ServicesRead the Press Release
LOS ANGELES – Federal prosecutors today filed criminal charges against nine defendants – seven of them dockworkers at the Port of Long Beach – who allowed more than $2.1 million in fraudulent claims to be submitted to their labor union’s health insurance plan for sexual services or for physical therapy that never was provided.
The conspiracy’s ringleader, Sara Victoria, 46, of San Pedro, is charged in an information filed today with one count of conspiracy to commit health care fraud and one count of aggravated identity theft.
The plea agreements for Victoria and the other eight defendants were filed today in United States District Court, and they are expected to make their initial court appearances in the coming weeks.
According to her plea agreement, from January 2017 to August 2021, Victoria owned and operated three business: Back to Life Wellness Center LLC and The Chiroman Wellness Center – both based in San Pedro – and the Wilmington-based Waterfront Wellness Center Inc. These companies offered patients chiropractic services, acupuncture treatments, and also sexual services.
Victoria knew that dock workers and others involved in the shipping industry in Long Beach had health insurance under the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan. This plan generally covered all chiropractic services with no deductible and without requiring plan members to contribute any copay amount or out-of-pocket services.
Victoria hired women to provide sexual services to dock workers at her companies and recruited them through referrals and from strip clubs in the Long Beach area. In exchange for obtaining sexual services for themselves and their friends, ILWU-PMA plan members authorized Victoria to submit false claims for reimbursement for services not actually rendered, including chiropractic and physical therapy, using their names or the names of their family members, such as their spouses and children. Victoria also agreed to pay ILWU-PMA plan members cash kickbacks in exchange for authorization to submit false claims for reimbursement for services not actually rendered.
Victoria also admitted to using someone else’s identity without the person’s consent during the commission of the health care fraud conspiracy.
In total, Victoria submitted approximately $2,110,920 in claims to the ILWU-PMA plan, for which the plan paid approximately $551,810.
After Victoria enters a plea of guilty, she will face a statutory maximum sentence of 12 years in federal prison.
Also charged this week was Cameron Rahm, 39, of Pico Rivera, a Long Beach longshoreman and ILWU member whom a federal grand jury charged in an indictment with one count of conspiracy to commit health care fraud, two counts of health care fraud, and one count of making false statements to federal investigators.
Rahm allegedly was one of the customers of Victoria’s businesses and agreed to have her submit to the ILWU-PMA plan fraudulent claims for services not rendered or for sexual services. He also allegedly lied to FBI agents investigating this case when he denied allowing anyone to bill his health insurer for sexual services. He is expected to appear for this arraignment this afternoon in United States District Court in Los Angeles.
If convicted of all charges, Rahm would face a statutory maximum sentence of 10 years in federal prison for the conspiracy and health care fraud counts, and five years in federal prison for the false statements count.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.
Assistant United States Attorney Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Local contractor pleads guilty to bribery in bid rigging schemeRead the Press Release
HOUSTON – A 64-year-old Houston man has admitted to conspiring to commit mail fraud, announced U.S. Attorney Jennifer B. Lowery.
Abraham Joseph pleaded guilty to engaging in the fraud scheme for 12 years.
Joseph was the owner of One Point Inc., a company located in Houston.
As part of his plea, he admitted that from 2007 to 2019, he engaged in a bribery and bid rigging fraud scheme to secure construction and maintenance work contracts from a local company with a manufacturing facility.
During that time, he submitted fake bids through the company’s facilities manager to make it appear OnePoint was the lowest. In return, Joseph paid $1.3 million in cash and other items of value in bribes.
Joseph further admitted he failed to disclose he was submitting falsified bids and paying kickbacks from the victim company’s funds. He also had the victim company’s facilities manager on company payroll.
The victim company would not have paid invoices from OnePoint had they known about the falsified bids or the kickback payments.
U.S. District Judge Lee H. Rosenthal will impose sentencing Jan. 18, 2023. At that time, Joseph faces up to five years in federal prison and a possible $250,000 maximum fine.
Joseph was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Little Rock Man Who Fled After Shooting Sentenced to 25 Years in Prison for Possessing a Firearm as a FelonRead the Press Release
LITTLE ROCK—A Little Rock man has been sentenced to 300 months in federal prison for being a felon in possession of a firearm. United States District Judge Brian S. Miller sentenced Bradley Clayton Walker, 39, to the 25-year term of imprisonment today. Judge Miller also sentenced Walker to five years of supervised release.
In January 2021, Walker shot a man in Bryant in the chest and fled the scene in a white Chevrolet pickup truck. Law enforcement identified the vehicle as belonging to Walker, and officers waited near Walker’s home. At the time of the shooting, Walker lived in Conway. Walker saw the officers and fled. Driving over 80 miles per hour through residential neighborhoods in Conway, Walker continued into Perry County, where he was ultimately stopped and taken into custody.
In the vehicle, officers located an empty 9mm magazine under the driver’s seat and a Glock Model 26 9mm handgun, which Walker had used in the earlier shooting, loaded with 23 rounds in an extended magazine. The search also revealed over 50 grams of methamphetamine as well as a bag containing fentanyl.
Walker’s sentence was based on the offense as well as his criminal history, which classifies him as an armed career criminal and increased his sentencing range. Walker has a prior federal conviction for being a felon in possession of a firearm as well as prior convictions for possession of cocaine, aggravated battery, and robbery, among numerus other offenses. In 2016, in Kansas, Walker shot a victim in the face, causing near-fatal injuries, during a robbery of some electronic devices.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bryant Police Department, and Conway Police Department. The case was prosecuted by Assistant United States Attorney Jordan Crews.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Leader of Lawrence Area Drug Trafficking Organization Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
BOSTON – The leader of a drug trafficking organization (DTO) has pleaded guilty to his involvement in a drug trafficking conspiracy that distributed fentanyl, heroin, cocaine, carfentanil and fentanyl analogue in and around the Lawrence area, as well as to possessing a loaded firearm in furtherance of drug trafficking offense.
Luis Manuel Rodriguez Then, 31, formerly of Lawrence, pleaded guilty on Sept. 8, 2022 to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, heroin, 500 grams or more of cocaine, 10 grams or more of carfentanil and 10 grams or more of 4-fluoroisobutyryl fentanyl (fentanyl analogue); distribution of fentanyl, heroin, cocaine and 10 grams or more of 4-fluoroisobutyryl fentanyl; and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 12, 2023.
From October 2018 through March 13, 2019, Rodriguez Then was a leader of a DTO that distributed fentanyl, fentanyl analogue and other substances in and around the Lawrence area. Rodriguez Then and another individual employed a third individual who was tasked with residing at a stash house maintained by and serving as a courier for the DTO. Law enforcement utilized a confidential source to conduct three controlled purchases of fentanyl from the DTO, for which Rodriguez Then and the other individual obtained the order and collected payment. The courier provided the confidential source with the requested pills, which tested positive for fentanyl. For the third transaction, the pills distributed by Rodriguez Then’s DTO tested positive for fentanyl, heroin, cocaine and fentanyl analogue.
During a search of Rodriguez Then’s residence on March 13, 2019, a wall hide was located in the master bedroom containing $7,010 in drug proceeds, a loaded .22 caliber Smith and Wesson firearms and multiple fake identification cards bearing the Rodriguez Then’s likeness. During a subsequent search of the stash house multiple hidden compartments/wall hides were discovered, containing drug paraphernalia and narcotics including: approximately two kilograms of fentanyl; 732 grams of heroin; over two kilograms of cocaine; and 448.4 grams of carfentanil.
The charges of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, heroin, 500 grams or more of cocaine, 10 grams or more of carfentanil, 10 grams or more of 4-fluoroisobutyryl fentanyl (fentanyl analogue), and distribution of fentanyl, heroin, cocaine and 10 grams or more of 4-fluoroisobutyryl fentanyl each provide for a mandatory minimum sentence of five years and up to 40 years in prison, mandatory four years and up to lifetime supervised release and a fine of up to $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of five years and up to life in prison to be served consecutively with any sentence on the distribution and drug conspiracy charge, up to five 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement. Valuable assistance was provided by the Massachusetts State Police. Assistant U.S. Attorneys Katherine Ferguson and Lindsey E. Weinstein of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Man Pleads Guilty to Firearms and Narcotics ChargesRead the Press Release
BOSTON – A Lawrence man pleaded guilty on Sept. 6, 2022 in federal court in Boston in connection with firearms and narcotics charges.
Miguel Mejia, 35, pleaded guilty to one count of dealing in firearms without a license and one count of possession with intent to distribute distribution of 40 grams of more fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 10, 2023. Mejia was arrested and charged in November 2021.
“The illegal trafficking of firearms and, moreover, ghost guns, directly contributes to the gun violence and violent criminal activity we see escalating across our county. Although Boston is an outlier and we have actually seen a decrease in violent crime, I am acutely aware that any violence is too much violence. Stopping the flow of illegal firearms from entering into our communities is the most critical step in combating violent criminal activity directly at its source,” said United States Attorney Rachael S. Rollins. “For nearly half a year, Mr. Mejia made a profit off of bringing deadly and untraceable Glock style ghost guns as well as lethal fentanyl into our communities – endangering residents’ safety and wellbeing to line his own pockets.”
“ATF continues to work vigorously with our law enforcement partners to ensure the safety and protection of the communities that we serve,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division. “This guilty plea sends a clear message to those who illegally produce and sell ghost guns, you will be arrested and prosecuted to the fullest extent of the law.”
Between July 7, 2020 and Dec. 16, 2020, Mejia sold five privately made firearms (PMFs), more commonly known as ghost-guns along with ammunition. Specifically, Mejia sold two Glock 26 style PMF pistols, two Glock 17 style PMF pistols and 11 rounds of 9mm ammunition. Additionally, on July 31, 2020, Mejia sold approximately 50 grams of fentanyl. During a search of Mejia’s residence on Dec. 16, 2020, agents recovered: a Glock 43 style PMF pistol; 40 rounds of 9mm ammunition; three pistol magazines; a pill press and pill stamping set; and five baggies of narcotics cutting agents.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and ATF SAC Ferguson made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Lansing Man Sentenced to Life for Sexual Exploitation of ChildrenRead the Press Release
GRAND RAPIDS, MICHIGAN — Robert Duane Wicke, 60, from Lansing, Michigan was sentenced to life in prison for attempting to coerce and entice children to engage in sex acts. He was also sentenced to 20 years’ custody on each of three counts of distributing child pornography videos and 20 years’ custody for possessing a collection of child pornography. The sentences for the child pornography offenses will be served concurrently with the life sentence.
U.S. District Judge Jane M. Beckering also ordered 10 years of supervised release should he be released early from custody. In sentencing Wicke to serve life in prison, Judge Beckering expressed her dismay at Wicke’s long history of sexually abusing children and the extraordinary risk he posed to children. Judge Beckering described his “very very serious conduct” among some of the worst she had seen in her 14 years as a judge.
A special agent with the FBI was working undercover in a messaging application that is commonly used by individuals interested in sexually abusing children. The agent posed as a mother in California with 7-year-old and 9-year-old daughters. Wicke sought out children to sexually abuse and wanted the mother to bring the girls to him so he could sexually assault them and train them to be sex slaves. His chats with the mother were depraved and graphic. He sent the mother videos of other children being abused and raped and wanted the videos to be shared with the 7-year-old and 9-year-old girls as part of a grooming effort to desensitize the children to sex.
On March 21, 2022, Wicke traveled from his home in Lansing to a hotel in Grand Rapids as part of his plan to fly the mother and children from California to Michigan. Instead of meeting the mother and the victims, Wicke was greeted by federal agents. A subsequent search of his digital devices disclosed his collection of child pornography.
U.S. Attorney Mark Totten stated, “Mr. Wicke’s depraved actions are beyond words. I am grateful for the FBI’s work to protect children. Today and every day we will hold child predators accountable.”
“Protecting children from dangerous child predators is a top priority for the FBI in Michigan and across the country,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Mr. Wicke is an example of how manipulative these criminals can be. I commend the work of the special agents, deputies, police officers, and prosecutors who worked to make our children safer by ensuring he remains behind bars for the rest of his life.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru, in cooperation with the FBI in San Francisco, Lansing, and Grand Rapids, and WEBCHEX – “West Michigan Based Child Exploitation and Human Trafficking Task Force,” a partnership of FBI, Michigan State Police, and local agencies dedicated to investigating offenses against children.
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Lackawanna County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Paul Quick, age 26, of Scranton, Pennsylvania, was indicted by a federal grand jury on September 6, 2022, for drug trafficking and firearms offenses. The case was unsealed following Quick’s arrest.
According to United States Attorney Gerard M. Karam, the indictment alleges that on June 8, 2022, in Lackawanna County, Quick possessed methamphetamine for further distribution, possessed a firearm in furtherance of a drug trafficking crime, possessed a firearm with an obliterated serial number, and was a convicted felon in possession of a firearm and ammunition.
The charges against Quick resulted from an investigation conducted by the Scranton Police Department, the Pennsylvania State Police, and the Drug Enforcement Administration. Assistant United States Attorney Robert J. O’Hara and Special Assistant United States Attorney Brian Gallagher are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law, for the drug charges, Quick faces a mandatory minimum sentence of five years in prison and a maximum sentence of forty years, a term of supervised release and a fine. For the firearms charges, Quick faces an additional mandatory minimum sentence of five years in prison, which must run consecutive to any other sentence, a maximum sentence of life, a term of supervised release and a fine. 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lackawanna County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Moises Vargas-Olivio, age 21, of Olyphant, Pennsylvania, was indicted yesterday by a federal grand jury on drug trafficking and firearms offenses.
According to United States Attorney Gerard M. Karam, the indictment alleges that on May 25, 2022, in Lackawanna County, Vargas-Olivio sold cocaine to another individual, possessed additional cocaine for further distribution, and possessed firearms, including an illegal shotgun with a barrel less than 18 inches in length, in furtherance of a drug trafficking crime.
The charges against Vargas-Olivio resulted from an investigation conducted by Lackawanna County Detectives, the Olyphant Police Department, and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara and Special Assistant United States Attorney Brian Gallagher are prosecuting the case.
This case is also 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.
Under federal law, for the firearms charges, Vargas-Olivio faces a mandatory minimum sentence of ten years in prison, which must run consecutive to any other sentence, a maximum sentence of life, a term of supervised release and a fine. For the drug trafficking charges, the defendant faces a maximum sentence of twenty years, a term of supervised release and a fine. 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.
Indictments and 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 Announces COVID-19 Fraud Strike Force TeamsRead the Press Release
Today the Justice Department announced the establishment of three Strike Force teams created to enhance the Department’s existing efforts to combat and prevent COVID-19 related fraud.
“These Strike Force teams will build on the Department’s historic enforcement efforts to deter, detect, and disrupt pandemic fraud wherever it occurs,” said Attorney General Merrick B. Garland. “Since the start of this pandemic, the Justice Department has seized over $1.2 billion in relief funds that criminals were attempting to steal, and charged over 1,500 defendants with crimes in federal districts across the country, but our work is far from over. The Department will continue to work relentlessly to combat pandemic fraud and hold accountable those who perpetrate it.”
The Strike Force teams will operate out of U.S. Attorney’s Offices in the Southern District of Florida, the District of Maryland, and a joint effort between the Central and Eastern Districts of California.
“The Strike Force teams are the latest example of the Justice Department’s commitment to fight pandemic fraud,” said Associate Deputy Attorney General Kevin Chambers, who serves as the Department’s Director for COVID-19 Fraud Enforcement. “The work being done by our prosecutors, trial attorneys, agents and partners on our COVID-19 Fraud Enforcement Task Force has been extraordinary. We’re going a step further today with the announcement of Strike Force teams to support, enhance, and continue the great work being done across the Department.”
As Director for COVID-19 Fraud Enforcement, Chambers leads the Department’s criminal and civil enforcement efforts to combat COVID-19 related fraud. To date, those efforts have resulted in criminal charges against over 1,500 defendants with alleged losses exceeding $1.1 billion; the seizure of over $1.2 billion in relief funds; and civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.
“I am excited to work alongside these dynamic interagency teams,” said Assistant U.S. Attorney Michael C. Galdo, the Justice Department’s Deputy Director for COVID-19 Fraud Enforcement, who will lead the Strike Force teams. “Assembling the fraud, cybercrime, and money laundering expertise of all our agency partners in these prosecutor-driven Strike Force teams is the best way to bring these fraudsters to justice.”
The Strike Force teams are comprised of dedicated prosecutors and agents from the Department of Labor Office of Inspector General, the Small Business Administration Office of Inspector General, the Department of Homeland Security Office of Inspector General, the FBI, the U.S. Secret Service, Homeland Security Investigations, Internal Revenue Service Criminal Investigations, and the U.S. Postal Inspection Service, with assistance from the Pandemic Response Accountability Committee and the Special Inspector General for Pandemic Recovery.
“Criminals took advantage of the worst pandemic in a century to line their pockets with public money intended for struggling businesses and workers forced to sit idle,” said Acting U.S. Attorney Stephanie S. Christensen of the Central District of California. “Our office’s participation in the COVID-19 Strike Force reflects our determination to maximize our resources to root out and punish wrongdoers who used a national emergency to steal from American taxpayers.”
“Cheaters have been living large on funds intended to keep families and local business afloat during a national crisis,” said U.S. Attorney Erek L. Barron of the District of Maryland. “Our office is proud to participate in the COVID-19 Strike Force. We’ll continue prosecuting large-scale COVID-19 fraud while also integrating this priority into our violent crime strategy.”
“The U.S. Attorney’s Office for the Eastern District of California is proud to be included as a part of the COVID-19 Fraud Enforcement Strike Force,” said U.S. Attorney Phillip A. Talbert. “We have had early successes pursuing COVID-19 fraud both civilly and criminally. For example, our district obtained the first civil settlement in the nation for fraud related to the CARES Act’s Paycheck Protection Program, and we have brought a number of criminal prosecutions against defendants who obtained through fraud relief monies intended to help those in need. We remain committed to leading investigations and vigorously prosecuting those who commit COVID-19 fraud.”
“Over the years, the South Florida U.S. Attorney’s Office and its law enforcement partners have developed robust domestic and international fraud and money laundering practices,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida. “Our experience with these data-driven financial prosecutions allowed us to launch an early and aggressive attack on COVID-19 relief fraud in our district, holding accountable those who tried to capitalize on an unprecedented crisis. We are proud to have been selected to lead one of three COVID-19 Fraud Strike Force teams and look forward to continuing to advance this important Department of Justice effort.”
Since the establishment of the COVID-19 Fraud Task Force by the Attorney General in May 2021, the Department has worked closely with our law enforcement partners to analyze the extraordinary amount of data from our state workforce agency partners and the Small Business Administration. That data is the key to identifying and prosecuting the organized criminal groups and networks of overseas fraudsters who stole pandemic relief funds. The Strike Force teams are designed to accelerate the process of turning data analytics into criminal investigations, which will enhance our prosecutions. This prosecutor-led approach has proven successful in other organized crime arenas; it will be key to dismantling the networks that stole pandemic relief funds.
In May 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.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
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.
Justice Department Announces COVID-19 Fraud Strike Force TeamsRead the Press Release
SACRAMENTO, Calif. – Today the Justice Department announced the establishment of three strike force teams created to enhance the department’s existing efforts to combat and prevent COVID-19 related fraud.
The strike force teams will operate out of U.S. Attorney’s Offices in the Southern District of Florida, the District of Maryland, and a joint effort between the Eastern and Central Districts of California.
“These Strike Force teams will build on the Department’s historic enforcement efforts to deter, detect, and disrupt pandemic fraud wherever it occurs,” said Attorney General Merrick B. Garland. “Since the start of this pandemic, the Justice Department has seized over $1.2 billion in relief funds that criminals were attempting to steal, and charged over 1,500 defendants with crimes in federal districts across the country, but our work is far from over. The Department will continue to work relentlessly to combat pandemic fraud and hold accountable those who perpetrate it.”
“The Strike Force Teams are the latest example of the Justice Department’s commitment to fight pandemic fraud,” said Associate Deputy Attorney General Kevin Chambers, who serves as the department’s Director for COVID-19 Fraud Enforcement. “The work being done by our prosecutors, trial attorneys, agents and partners on our COVID-19 Fraud Enforcement Task Force has been extraordinary. We’re going a step further today with the announcement of strike force teams to support, enhance, and continue the great work being done across the department.”
“The U.S. Attorney’s Office for the Eastern District of California is proud to be included as a part of the COVID-19 Fraud Enforcement Strike Force,” said U.S. Attorney Phillip A. Talbert. “We have had early successes pursuing COVID-19 fraud both civilly and criminally. For example, our district obtained the first civil settlement in the nation for fraud related to the CARES Act’s Paycheck Protection Program, and we have brought a number of criminal prosecutions against defendants who obtained through fraud relief monies intended to help those in need. We remain committed to leading investigations and vigorously prosecuting those who commit COVID-19 fraud.” Recent examples of the Eastern District of California’s COVID-19 fraud work include the following:
U.S. v. Daryol Richmond, et al, 1:21-cr-184 DAD
Daryol Richmond, 31, a Kern Valley State Prison inmate, pleaded guilty on Feb. 22, 2022, to conspiracy and aggravated identity theft charges for his role in a $25 million unemployment insurance fraud scheme during the COVID-19 pandemic. Seven others, including an inmate at the California Correctional Institution in Tehachapi, California, were charged in the scheme. According to the plea agreement, between June 2020 and December 2020, Richmond obtained the personally identifiable information (PII) for other individuals, including inmates and non-inmates, without their authorization. He then provided this information to his co-conspirators inside and outside of prison through emails and jail calls. The co-conspirators then filed applications for unemployment insurance with the California Employment Development Department (EDD) that falsely stated that the inmates, minor children, and others previously worked as clothing merchants, handymen, and other jobs, and recently became unemployed because of the COVID-19 pandemic. Charges are pending against the other seven defendants; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. The charges carry a sentence up to 20 years in prison and a $250,000 fine.
U.S. v. Makiah Miles, et al., 1:22-cr-129 ADA
An inmate at the Central California Women’s Facility in Chowchilla, Makiah Miles, 29, of Compton, California, and her mother Apryl Weston, 50, of Santa Maria, California, took advantage of changes made to the California Employment Development Department (EDD) eligibility criteria in response to the COVID-19 pandemic and submitted the fraudulent claims. The inmate obtained other inmates’ names, dates of birth, and social security numbers and sent that information to her mother on the outside for her to submit claims in those inmates’ identities as well as her own identity. The underlying applications contained several misrepresentations, including that the inmates had been self-employed as accountants, beauty culturists, child care providers, cosmetologists, hairdressers, and other occupations, and that they recently became unemployed because of the COVID-19 pandemic. The claims were worth over $550,000. The defendants used the money to purchase handbags, jewelry, and televisions, among other items. The pending charges carry a maximum statutory penalty of 20 years in prison and $250,000 fine. The defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
In May 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.
Since the establishment of the task force, the department has worked closely with our law enforcement partners to analyze the extraordinary amount of data from our state workforce agency partners and the Small Business Administration. The strike force teams will be composed of dedicated prosecutors and agents from the Department of Labor Office of Inspector General, the Small Business Administration Office of Inspector General, the Department of Homeland Security Office of Inspector General, the FBI, the U.S. Secret Service, Homeland Security Investigations, Internal Revenue Service Criminal Investigations, and the U.S. Postal Inspection Service, with assistance from the Pandemic Response Accountability Committee and the Special Inspector General for Pandemic Recovery. The strike force teams are designed to accelerate the process of turning data analytics into criminal investigations, which will enhance prosecutions. This prosecutor-led approach has proven successful in other organized crime arenas; it will be key to dismantling the networks that stole pandemic relief funds.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
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.
Justice Department Announces COVID-19 Fraud Strike Force TeamsRead the Press Release
Today the Justice Department announced the establishment of three Strike Force teams created to enhance the Department’s existing efforts to combat and prevent COVID-19 related fraud.
“These Strike Force teams will build on the Department’s historic enforcement efforts to deter, detect, and disrupt pandemic fraud wherever it occurs,” said Attorney General Merrick B. Garland. “Since the start of this pandemic, the Justice Department has seized over $1.2 billion in relief funds that criminals were attempting to steal and charged over 1,500 defendants with crimes in federal districts across the country, but our work is far from over. The Department will continue to work relentlessly to combat pandemic fraud and hold accountable those who perpetrate it.”
The Strike Force teams will operate out of U.S. Attorney’s Offices in the Southern District of Florida, the District of Maryland, and a joint effort between the Central and Eastern Districts of California.
“The Strike Force teams are the latest example of the Justice Department’s commitment to fight pandemic fraud,” said Associate Deputy Attorney General Kevin Chambers, who serves as the Department’s Director for COVID-19 Fraud Enforcement. “The work being done by our prosecutors, trial attorneys, agents and partners on our COVID-19 Fraud Enforcement Task Force has been extraordinary. We’re going a step further today with the announcement of Strike Force teams to support, enhance, and continue the great work being done across the Department.”
As Director for COVID-19 Fraud Enforcement, Chambers leads the Department’s criminal and civil enforcement efforts to combat COVID-19 related fraud. To date, those efforts have resulted in criminal charges against over 1,500 defendants with alleged losses exceeding $1.1 billion; the seizure of over $1.2 billion in relief funds; and civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.
“I am excited to work alongside these dynamic interagency teams,” said Assistant U.S. Attorney Michael C. Galdo, the Justice Department’s Deputy Director for COVID-19 Fraud Enforcement, who will lead the Strike Force teams. “Assembling the fraud, cybercrime, and money laundering expertise of all our agency partners in these prosecutor-driven Strike Force teams is the best way to bring these fraudsters to justice.”
The Strike Force teams are comprised of dedicated prosecutors and agents from the Department of Labor Office of Inspector General, the Small Business Administration Office of Inspector General, the Department of Homeland Security Office of Inspector General, the FBI, the U.S. Secret Service, Homeland Security Investigations, Internal Revenue Service Criminal Investigations, and the U.S. Postal Inspection Service, with assistance from the Pandemic Response Accountability Committee and the Special Inspector General for Pandemic Recovery.
“Criminals took advantage of the worst pandemic in a century to line their pockets with public money intended for struggling businesses and workers forced to sit idle,” said Acting U.S. Attorney Stephanie S. Christensen of the Central District of California. “Our office’s participation in the COVID-19 Strike Force reflects our determination to maximize our resources to root out and punish wrongdoers who used a national emergency to steal from American taxpayers.”
“Cheaters have been living large on funds intended to keep families and local business afloat during a national crisis,” said U.S. Attorney Erek L. Barron of the District of Maryland. “Our office is proud to participate in the COVID-19 Strike Force. We’ll continue prosecuting large-scale COVID-19 fraud while also integrating this priority into our violent crime strategy.”
“The U.S. Attorney’s Office for the Eastern District of California is proud to be included as a part of the COVID-19 Fraud Enforcement Strike Force,” said U.S. Attorney Phillip A. Talbert. “We have had early successes pursuing COVID-19 fraud both civilly and criminally. For example, our district obtained the first civil settlement in the nation for fraud related to the CARES Act’s Paycheck Protection Program, and we have brought a number of criminal prosecutions against defendants who obtained through fraud relief monies intended to help those in need. We remain committed to leading investigations and vigorously prosecuting those who commit COVID-19 fraud.”
“Over the years, the South Florida U.S. Attorney’s Office and its law enforcement partners have developed robust domestic and international fraud and money laundering practices,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida. “Our experience with these data-driven financial prosecutions allowed us to launch an early and aggressive attack on COVID-19 relief fraud in our district, holding accountable those who tried to capitalize on an unprecedented crisis. We are proud to have been selected to lead one of three COVID-19 Fraud Strike Force teams and look forward to continuing to advance this important Department of Justice effort.”
Since the establishment of the COVID-19 Fraud Task Force by the Attorney General in May 2021, the Department has worked closely with our law enforcement partners to analyze the extraordinary amount of data from our state workforce agency partners and the Small Business Administration. That data is the key to identifying and prosecuting the organized criminal groups and networks of overseas fraudsters who stole pandemic relief funds. The Strike Force teams are designed to accelerate the process of turning data analytics into criminal investigations, which will enhance our prosecutions. This prosecutor-led approach has proven successful in other organized crime arenas; it will be key to dismantling the networks that stole pandemic relief funds.
In May 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.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
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.
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Judge Sentences Penn Hills Felon to 9 Years for Illegally Possessing Fentanyl and a FirearmRead the Press Release
PITTSBURGH - A suburban Pittsburgh resident has been sentenced in federal court to nine years of imprisonment on his convictions for distribution of fentanyl and possession of a firearm by a convicted felon, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Dayon Chambers, age 43, of Penn Hills, Pa.
According to information presented to the court, Chambers distributed slightly more than forty grams of a fentanyl to a confidential informant on Feb. 5, 2020. When law enforcement executed a search warrant at Chambers’ home after that transaction, law enforcement located a loaded shotgun and ammunition. Chambers was precluded from possessing firearms and ammunition under federal law because he had previously been convicted of felony offenses.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Chambers.
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted Felon and Possession of Marijuana with Intent to DistributeRead the Press Release
JACKSON, MS – A Jackson man pleaded guilty today to Possession of a Firearm by a Convicted Felon and Possession of Marijuana with Intent to Distribute.
According to court documents, Gregory L. Randle, 30, on December 3, 2021, fled from a traffic safety checkpoint resulting in a pursuit by the Mississippi Highway Patrol. Law enforcement officers apprehended Randle after a short chase and discovered a firearm and several pounds of marijuana in his vehicle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives continued the investigation into the firearm and the marijuana.
Randle plead guilty to a violation of Title 18, United States Code, Section 922(g)(1) which criminalizes the possession of firearms by convicted felons. Randle also plead guilty to a violation of Title 21, United States Code, Section 841(a)(1) which criminalizes the possession of controlled substances, including marijuana, with the intent to distribute. He is scheduled to be sentenced December 13, 2022, and faces a maximum penalty of 10 years in prison for the firearm charge and a maximum penalty of 5 years in prison for the controlled substances charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi; and Special Agent in Charge Kurt H. Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The Mississippi Highway Patrol and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.