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Thursday 21 July 2022
Former Louisiana Police Chief and City Councilmember Plead Guilty in Vote-Buying ConspiracyRead the Press Release
WASHINGTON – A former police chief in Amite City and current Amite City councilmember pleaded guilty yesterday in New Orleans, Louisiana, to criminally violating federal election laws as part of a conspiracy to pay, or offer to pay, voters for voting in a federal election.
According to court documents, Jerry Trabona, 72, the former Chief of Police in Amite City, and Kristian “Kris” Hart, 49, a current Amite City councilmember, pleaded guilty to conspiring to pay and offering to pay voters residing in Tangipahoa Parish, Louisiana, for voting in the 2016 open primary election and the 2016 open general election. Trabona and Hart admitted that they agreed with each other and others to pay or offer to pay voters during contests in which the defendants were candidates, and in which federal candidates appeared on the same ballot.
In addition to the conspiracy with Trabona, Hart pleaded guilty to three counts of paying and offering to pay voters during both the 2016 and 2020 elections. In both elections, Hart was running for the seat he currently holds on the Amite City Council.
“The Department of Justice is committed to ensuring that illegal voting, including vote buying, has no place in our nation’s electoral system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
“We must have fair elections, free from the taint of corruption, to ensure a fully functional government,” stated U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Safeguarding the voting process is of paramount importance to our office and the Department of Justice.”
“Providing a voter with money or something of value in exchange for voting is a federal crime,” said Special Agent in Charge Douglas A. Williams, Jr. of the FBI New Orleans Field Office. “Today’s guilty pleas sends a clear message that individuals like former Amite Chief of Police Jerry Trabona and current Amite City Councilmember Kris Hart, who engaged in voter fraud, will be held accountable. We thank our partners at the Department of Justice Criminal Division’s Public Integrity Section and the United States Attorney’s Office Eastern District of Louisiana for helping disrupt voter fraud and continuing to protect the right to vote.”
Both defendants are scheduled to be sentenced on Nov. 1 and face up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans of the Eastern District of Louisiana; and Special Agent in Charge Douglas Williams of the FBI’s New Orleans Field Office made the announcement.
The case was investigated by the FBI’s New Orleans Field Office.
Trial Attorneys Michael N. Lang and Rosaleen T. O’Gara of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney M. Irene González of the Eastern District of Louisiana are prosecuting the case.
Former Louisiana Police Chief and City Councilmember Plead Guilty in Vote-Buying ConspiracyRead the Press Release
A former police chief in Amite City and a current Amite City Councilmember pleaded guilty yesterday in New Orleans, Louisiana, to criminally violating federal election laws as part of a conspiracy to pay, or offer to pay, voters for voting in a federal election.
According to court documents, Jerry Trabona, 72, the former Chief of Police in Amite City, and Kristian “Kris” Hart, 49, a current Amite City Councilmember, pleaded guilty to conspiring to pay and offering to pay voters residing in Tangipahoa Parish, Louisiana, for voting in the 2016 open primary election and the 2016 open general election. Trabona and Hart admitted that they agreed with each other and others to pay or offer to pay voters during contests in which the defendants were candidates, and in which federal candidates appeared on the same ballot.
In addition to the conspiracy with Trabona, Hart pleaded guilty to three counts of paying and offering to pay voters during both the 2016 and 2020 elections. In both elections, Hart was running for the seat he currently holds on the Amite City Council.
“The Department of Justice is committed to ensuring that illegal voting, including vote buying, has no place in our nation’s electoral system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
“We must have fair elections, free from the taint of corruption, to ensure a fully functional government,” stated U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Safeguarding the voting process is of paramount importance to our office and the Department of Justice.”
“Providing a voter with money or something of value in exchange for voting is a federal crime,” said Special Agent in Charge Douglas A. Williams, Jr. of the FBI New Orleans Field Office. “Today’s guilty pleas sends a clear message that individuals like former Amite Chief of Police Jerry Trabona and current Amite City Councilmember Kris Hart, who engaged in voter fraud, will be held accountable. We thank our partners at the Department of Justice Criminal Division’s Public Integrity Section and the United States Attorney’s Office for the Eastern District of Louisiana for helping disrupt voter fraud and continuing to protect the right to vote.”
Both defendants are scheduled to be sentenced on Nov. 1 and face up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans of the Eastern District of Louisiana; and Special Agent in Charge Douglas Williams of the FBI’s New Orleans Field Office made the announcement.
The case was investigated by the FBI’s New Orleans Field Office.
Trial Attorneys Michael N. Lang and Rosaleen T. O’Gara of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney M. Irene González for the Eastern District of Louisiana are prosecuting the case.
Former Federal Inmate Sentenced to Nearly Three Years for Fraudulently Collecting PUA Funds on Behalf of Incarcerated IndividualsRead the Press Release
PHILADELPHIA –United States Attorney Jacqueline C. Romero announced that Brandon Segers, 34, of Philadelphia, PA, was sentenced to two years and nine months in prison, 3 years of supervised release, and was ordered to pay $142,069 in restitution for fraudulently applying for and obtaining emergency unemployment benefits related to the COVID-19 pandemic. Specifically, Segers and others submitted false applications claiming that prison inmates lost employment as a result of the pandemic, and false weekly certifications that inmates were available to work full-time despite their incarceration.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received.
In April 2022, the defendant pleaded guilty to charges including conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States, and theft of government money. As part of his guilty plea, Segers acknowledged that applications were filed on behalf of inmates who did not lose their job due to COVID. Co-defendant and incarcerated individual, Michael Matthews, transmitted the necessary inmate information for the filing of PUA applications to Segers, a former federal inmate who was previously incarcerated with Matthews, via phone and email. Segers would then file the fraudulent applications and weekly certifications in the name of Matthews and other inmates Matthews provided. Segers compensated Matthews for providing the inmate information by depositing money into his federal prison commissary account. Matthews previously pleaded guilty to related charges and is due to be sentenced on July 22, 2022. Co-defendant Dionne Segers’ case is pending.
“Pandemic Unemployment Assistance and small business loan funds are intended to help working Americans and small business owners continue to pay their bills and make ends meet, even when revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Romero. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Segers and Matthews fraudulently obtained thousands of dollars in funds that could have helped struggling businesses and individuals.”
“Today, Brandon Segers has been held accountable for using deceit and fraud to line his pockets with PUA funds,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “This is a warning to those out there who think the PUA program is a slush fund. IRS CI, along with our partners, remains committed to investigating those who fraudulently target the PUA program.”
This case was investigated by the United States Department of Labor – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Timothy Lanni.
Former Director of Emergency Management at Pitt Sentenced for Selling Stolen PPE during PandemicRead the Press Release
PITTSBURGH - A suburban Pittsburgh resident has been sentenced in federal court to four years’ probation, 180 days of house arrest, and a fine of $4,000 for his conviction on Interstate Transportation of Stolen Property, United States Attorney Cindy K. Chung announced today. He was also ordered to make full restitution to the University of Pittsburgh.
United States District Judge Arthur J. Schwab imposed the sentence on Christopher D. Casamento, age 43, of the Ross Township area.
According to information presented to the court, Casamento, the former Director of Emergency Management at the University of Pittsburgh, was charged with stealing Personal Protective Equipment from the University, during the height of the Covid pandemic from February 28, 2020, to March 22, 2020. Casamento stole over 13,000 pieces of Aura N95 and other respirator masks and sold them from his eBay vendor page to buyers nationwide at excessive prices in February and March 2020. Casamento earned approximately $18,783.50.
Assistant United States Attorney Gregory C. Melucci 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 Casamento.
Former Claims Manager for Michigan Unemployment Insurance Agency Sentenced in COVID-19 Fraud SchemeRead the Press Release
DETROIT - Jermaine Rose, a former lead claims examiner for the Michigan Unemployment Insurance Agency (MUIA), was sentenced to two years in federal prison today arising from his participation in a $1.5 million pandemic-related unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.
Jermaine Rose pleaded guilty on April 22, 2022, to one count of conspiracy to commit wire fraud arising out of his participation in a wide-ranging fraud scheme designed to provide Rose’s co-conspirators with pandemic unemployment insurance benefits to which they were not entitled.
United States Attorney Ison stated “Corrupt public servants compromise the ability of the government to function effectively and undermine confidence in all public programs. This prosecution reflects the seriousness with which my office takes corruption and fraud in the public sector as well as our commitment to prosecuting those who used a national crisis as an opportunity to defraud the public.
“Jermaine Rose, while employed as a State of Michigan Unemployment Insurance Agency lead claims examiner, abused his authority to allow the payment of more than $920,000 in fraudulent Pandemic Unemployment Assistance claims. Rose exploited his position to release payment on the claims in exchange for kickbacks from his co-conspirators. We will continue to work with our law enforcement and state partners to investigate those who exploit the unemployment insurance system, “stated Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor, Office of Inspector General.
According to court documents, Rose was working as a lead claims examiner for the MUIA in April 2020, and as such, had electronic access to the MUIA claims database. Rose could use his credentials to access and approve specific UI claims submitted to the agency.
Court documents indicate that beginning in approximately April 2020, Rose entered into an agreement with various individuals to defraud the MUIA by obtaining UI benefits through the submission of false UI claims. Rose’s co-conspirators would electronically submit fraudulent claims to MUIA in the names of various individuals, some of whom would be victims of identity theft and some of whom were entirely fictitious people. These co-conspirators made false statements in the applications attesting to the eligibility of these purported claimants, and would upload fictitious documentation to support those fraudulent claims. The co-conspirators would then communicate with Rose, either directly or through intermediaries, and identify the claims that they had submitted. Rose would then use his insider access to the MUIA system to approve the claims and release benefits. Most of the time, benefits would be electronically loaded onto Bank of America debit cards and mailed to addresses controlled by Rose’s co-conspirators. Rose was often paid for his services, typically in amounts between $50 and $150 per claim he touched.
While some of the individuals who approached Rose had legitimate UI claims and worked with him solely to receive benefits on an accelerated schedule, many of the individuals with whom Rose conspired submitted fraudulent UI claims in bulk. In his plea agreement, Rose acknowledged that he was well aware that many of the claims that he authorized were fraudulent.
Court documents indicate that while it is difficult to provide precise loss figures associated with Rose’s criminal scheme, a conservative estimate of the actual loss in this case is approximately $1,011,000.
The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Secret Service, with substantial assistance from the Michigan Unemployment Insurance Agency.
Felon Sentenced to Prison for Possessing a FirearmRead the Press Release
A man who unlawfully possessed a firearm was sentenced July 20, 2022, to more than five years in federal prison.
Terrence Roby, Jr., age 24, from Waterloo, Iowa, received the prison term after a December 22, 2021, guilty plea to one count of possession of a firearm by a felon.
In a plea agreement, Roby admitted that, on March 29, 2021, he knowingly possessed a firearm, a Smith and Wesson SD40 .40 caliber pistol, as a prohibited person. Roby was prohibited from possessing a firearm because he was previously convicted on February 17, 2020, of attempted burglary in the second degree in the Iowa District Court for Black Hawk County, a felony. On March 29, Roby was a passenger in a vehicle which led officers on a high-speed chase reaching speeds of 60 mph in a 30-mph zone in a residential area. After about 5 minutes, the driver stopped the vehicle and all the occupants fled on foot. Roby ran from the vehicle carrying the pistol which he disposed of between two homes. Roby also admitted that, on July 8, 2021, he possessed a Smith and Wesson 9x19mm caliber pistol and a Kel-Tec .40 caliber rifle. These weapons were found during the execution of a search warrant at Roby’s residence.
Roby was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roby was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Roby is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-2058.
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Federal Jury Finds Felon Guilty of Violating Narcotics and Firearms LawsRead the Press Release
PITTSBURGH - After deliberating for approximately one hour, a federal jury of six men and six women found James Taric Byrd guilty of three counts of federal narcotics trafficking and firearms charges, United States Attorney Cindy K. Chung announced today.
Byrd, 45, formerly of Pittsburgh’s Lincoln Park section, was tried before United States District Judge Cathy Bissoon in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Brendan T. Conway and Benjamin J. Risacher, who prosecuted the case, the evidence presented at trial established that on February 23, 2015, the McKeesport Police Department, while responding to a call after Byrd threatened to shoot up a house in McKeesport, arrested Byrd. On his person and in his vehicle, officers found a loaded and stolen firearm, a bulletproof vest, and quantities of heroin, cocaine, and marijuana. The defendant has numerous prior felony convictions, including for robbery, kidnapping, aggravated assault, obstruction of justice, and illegal gun possession, and he was therefore prohibited by federal law from possessing firearms and ammunition.
During the trial, the defendant assaulted his counsel, and the trial continued without the defendant. The defendant, however, returned to the courtroom and testified.
Judge Bissoon scheduled sentencing for Dec. 5, 2022. The law provides for a maximum total sentence of life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant.
The McKeesport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Byrd.
Federal Jury Convicts Ada Resident of Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Anthony Brian Walker, age 40, of Ada, Oklahoma was found guilty by a federal jury of one count of Murder in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151, and 1153. The jury trial began on Monday, July 18, 2022 and concluded on Wednesday, July 20. Based on the jury’s verdict, the Defendant is facing a mandatory minimum sentence of life imprisonment.
During the trial, the United States presented evidence that on November 21, 2021, the Defendant intentionally killed Jason “Bubba” Edward Hubbard, Jr. by stabbing him in the heart while Mr. Hubbard was sitting in a vehicle in the drive-thru of the Karry Out Korner in Ada, Oklahoma.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the Defendant is a member of a federally-recognized Indian tribe and the crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation and the Eastern District of Oklahoma.
The guilty verdict was the result of an investigation by the Federal Bureau of Investigation and the Chickasaw Nation Lighthorse Police Department.
The Honorable Ronald A. White, U.S. District Judge for the United States District Court for the Eastern District of Oklahoma, sitting in Muskogee, Oklahoma, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following the completion of the report. Walker was remanded to the custody of the United States Marshal pending the sentencing hearing.
Assistant United States Attorney Cameron McEwen and Special Assistant United States Attorney Erin McKenzie represented the United States.
Federal Grand Jury Returns Indictment Against Louisville Man for CARES Act FraudRead the Press Release
Louisville, Kentucky – A federal grand jury in Louisville returned an indictment yesterday charging a local man with thirteen counts of fraud related to various CARES Act financial assistance programs.
According to court documents, between August 5, 2020, and October 5, 2021, Blake Patterson, 37, of Louisville, Kentucky filed eleven fraudulent applications for various CARES Act financial assistance programs, including Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), resulting in the theft of $133,802 and attempted theft of an additional $608,704.50. Patterson organized the entities et Propellente, Darke Rose, and Link LLC after the onset of the Covid 19 pandemic. He then exaggerated the gross revenues, number of employees, and payroll of those entities in the fraudulent applications he filed. Patterson was granted one EIDL payment in the amount of $67,900 and one PPP loan in the amount of $65,902. Patterson further submitted a fraudulent application seeking forgiveness of the PPP loan, which was ultimately granted.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period of time and used a certain percentage of the PPP loan proceeds on payroll expenses.
The CARES Act authorized the SBA to provide EIDLs of up to $2 million to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. EIDL proceeds could be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
Patterson is charged with twelve counts of wire fraud in violation of Title 18, United States Code, Section 1343 and one count of bank fraud in violation of Title 18 United States Code Section 1344. The defendant made his initial court appearance today before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum penalty of 270 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, made the announcement.
The Treasury Inspector General for Tax Administration (TIGTA) is investigating the case.
Assistant U.S. Attorney Nicole Elver is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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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Escaped Alabama Prisoner Indicted for Illegal Possession of Five Firearms in Evansville, IndianaRead the Press Release
EVANSVILLE – A federal grand jury in Evansville returned an indictment today charging Casey White, 38, of Florence, Alabama, with being a felon in possession of a firearm and a fugitive in possession of a firearm.
According to court documents, on April 29, 2022, White escaped from jail in Lauderdale County, Alabama. On May 9, 2022, White allegedly possessed five firearms in Evansville, Indiana, including four handguns and an AR15 rifle. White was legally prohibited from possessing firearms because he was a fugitive from justice and due to his 2019 felony convictions for attempted murder and kidnapping in Limestone County, Alabama.
White is currently detained in the custody of Alabama authorities on other charges and will make his initial appearance in the Southern District of Indiana at a later date. If convicted, the defendant faces up to ten years in federal prison on each count. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI Indianapolis Field Division made the announcement.
The case was investigated by the Federal Bureau of Investigation. The U.S. Marshals Service and the Vanderburgh County Sheriff’s Office provided valuable assistance.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lauren Wheatley who is prosecuting this 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.
Dracut Man Pleads Guilty to Armed RobberyRead the Press Release
BOSTON – A Dracut man pleaded guilty today in federal court in Boston in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Dec. 24, 2020.
Michael Vangpa, 33, pleaded guilty to one count of interfering with commerce by robbery and one count of using a firearm in furtherance of a crime of violence. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 14, 2022. Vangpa was charged by criminal complaint in August 2021 and subsequently indicted by a federal grand jury in October 2021.
“Mr. Vangpa’s acts of violence spread panic across the communities he violated and terrorized by committing multiple armed robberies. Residents should be able to visit their local businesses without fear,” said United States Attorney Rachael S. Rollins. “My office is committed to ensuring the safety of this Commonwealth. We will continue to work with our law enforcement partners to hold violent individuals accountable and more so when they use firearms during their crimes.”
“Convicted felon Michael Vangpa’s crime spree on Christmas Eve during which he committed three commercial armed robberies within an hour, brandishing a handgun, put the store clerks in fear for their lives, and the public in danger,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Removing violent criminals like him from our communities is the top priority of FBI Boston's Violent Crimes Task Force.”
“Armed robberies at neighborhood stores make citizens fearful to carry out their daily business in our community,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF and our law enforcement partners are committed to pursuing violent offenders to ensure that those who commit violent crimes will be held accountable for their actions.”
On Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa brandished a firearm and demanded money from the store clerks. During one of the robberies, Vangpa discharged the firearm into cardboard boxes under the register while demanding money. In the other robberies, he used the firearm to strike the cashier in the head and make a store customer get on the ground.
The charge of interference with commerce by robbery 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 charge of discharging a firearm in furtherance of a crime of violence provides for a mandatory sentence of 10 years in prison to be served consecutively to any other sentence imposed and up to life in prison. 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, FBI SAC Bonavolonta, ATF SAC Ferguson and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
Conspirator in Murder-For-Hire Conspiracy Convicted after Eight-Day TrialRead the Press Release
Greenbelt, Maryland – A federal jury late yesterday convicted Jose David Navarro Cervellon, age 41, of Norcross, Georgia, on federal charges related to a murder-for-hire.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Acting Postal Inspector in Charge Tira Hayward of the U.S. Postal Inspection Service - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to the evidence presented at his eight-day trial and to court documents, Navarro was an associate of Miguel Angel Ayala Rivera, who was the leader of the Pinos Locos Salvatrucha clique of MS-13. In November 2016, co-defendant Miguel Antonio Renderos was looking for someone to murder Victim 1 in exchange for $10,000. Navarro introduced Renderos to Ayala Rivera, who agreed to commit the murder.
The evidence presented at trial proved that Renderos wanted Victim 1 to be killed because in 2012, after Renderos allowed the victim to move into the basement of Renderos’s home, Victim 1 began to have a romantic relationship with Renderos’s wife. With Navarro serving as the middleman between Renderos and Ayala Rivera, the defendants exchanged phone calls to arrange the murder.
As detailed at trial and in court documents, between November 1 and November 30, 2016, Navarro paid for a hotel room for Ayala Rivera and a co-conspirator at a hotel in College Park. During that time, Ayala Rivera, Navarro and the co-conspirator conducted surveillance of Victim 1 in and around Victim 1’s residence. On November 30, 2016, Navarro drove Ayala Rivera and the co-conspirator to Victim 1’s residence, where Ayala Rivera shot and killed Victim 1. After the murder, Navarro left the area with Ayala Rivera and the co-conspirator and took Ayala Rivera to collect payment from Renderos for the murder of Victim 1.
Navarro faces a mandatory sentence of life prison for the murder-for-hire conspiracy and for the use of interstate commerce facilities in the commission of a murder-for-hire; and a mandatory minimum of 10 years in federal prison, consecutive to any other sentence imposed, and up to life in prison for murder resulting from the use, carrying, brandishing and discharging of a firearm during and in relation to a crime of violence. U.S. District Judge Paula Xinis has not yet scheduled sentencing for Navarro.
Co-defendants Miguel Angel Ayala Rivera, age 28, of Silver Spring, Maryland, and Miguel A. Renderos, age 47, of Hyattsville, Maryland, each pleaded guilty to their roles in the murder-for-hire and are scheduled to be sentenced on August 5, 2022, at 12:00 p.m. and September 6, 2022, at 10:00 a.m., respectively. In a related case, Luis Cruz Hernandez, age 28, of Silver Spring, Maryland, previously pleaded guilty to his role in the murder-for-hire and was sentenced to 51 years in federal prison
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI, the U.S. Postal Inspection Service, and the Prince George’s County Police Department for their work in the investigation and thanked the Montgomery County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorneys William D. Moomau and Leah B. Grossi, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Connecticut Man Sentenced to 70 Months’ Imprisonment for Conspiracy to Distribute Heroin, Fentanyl, Cocaine, and Cocaine Base from Rutland ApartmentRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ralph Mariani (a.k.a. “D”), 28, of West Hartford, Connecticut was sentenced on July 20, 2022 in United States District Court in Rutland, Vermont by Chief Judge Geoffrey W. Crawford to 70 months of imprisonment. Mariani had previously pleaded guilty to conspiracy to distribute heroin, fentanyl, cocaine, and cocaine base in the Rutland, Vermont area. Judge Crawford also ordered that Mariani serve three years of supervised release by the U.S. Probation Office after he serves his term of imprisonment.
Mariani’s three codefendants, Cedano Brownswell of Hartford, Connecticut, Rashane Wedderburn of Hartford, Connecticut, and Jasmine Wendell of West Rutland, Vermont, have all pleaded guilty to drug trafficking offenses and are awaiting sentencing.
According to court records and proceedings, on November 18, 2020, law enforcement executed a federal search warrant for an apartment on Traverse Place in Rutland, Vermont. Mariani, Wedderburn, Brownswell, and Wendell were all present at the time of this search. Law enforcement seized approximately 72 grams of powder cocaine, 45 grams of cocaine base, 69 bags of fentanyl, and 52 Oxycodone pills. The search also resulted in the seizure of four firearms, including a loaded 9mm pistol located on the living room couch. Law enforcement also seized a total of over six thousand dollars in cash from Mariani, Cedano, and Wedderburn. The government argued that a long sentence was justified because Mariani’s offense involved drug trafficking for profit, possession of firearms, violence, and threats of violence, including his assault of a female drug addict to coerce her into dealing drugs for him in the Rutland area.
United States Attorney Nikolas P. Kerest commended the joint efforts in this investigation by the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rutland City Police, and Homeland Security Investigations. This case is prosecuted by Assistant U.S. Attorney Joseph Perella. Mariani is represented by Gerald Klein, Esq. of Hartford, Connecticut.
Connecticut Man Charged in Manhattan for Trafficking “Ghost” GunsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and John B. DeVito, Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced that MELVIN BURROUGHS was charged in a superseding indictment with conspiring to traffic firearms, trafficking firearms, and being a felon in possession of ammunition.
U.S. Attorney Damian Williams said: “As alleged, the defendant—a convicted felon—was in the business of building and selling untraceable ‘ghost guns.’ Thanks to our law enforcement partners, his dangerous ghost gun business has been shut down.”
ATF New York Special Agent-in-Charge John B. DeVito said: “ATF has no higher priority than stopping the flow of illegal guns of any kind. This case sends a clear message to those who seek to produce ghost guns for the criminal marketplace. The NYC Crime Gun Intelligence allows law enforcement to identify patterns, leads, and potential suspects such as in this case; in order to make our communities safer. Thanks to the collaboration with the NYPD Major Case Field Intelligence Team, NYSP and Ansonia CT Police Department for their hard work.”
According to the allegations in the Superseding Indictment[1] unsealed today in Manhattan federal court and in other public court documents:
From approximately 2019 through approximately January 2022, BURROUGHS purchased the parts for “ghost guns,” assembled the parts into completed firearms, and then illegally sold the working and completed firearms.
Based on review of surveillance video capturing the event from multiple angles, on March 14, 2021, BURROUGHS exited his house in Ansonia, Connecticut with a handgun and—in broad daylight—discharged five rounds at two men who had approached his house.
The Ansonia Police Department searched BURROUGHS’s house the next day. According to police reports and photographs documenting the search, law enforcement officers located two completed Glock-style privately made firearms (commonly known as “ghost guns”), and a .50-caliber Desert Eagle pistol that had been reported stolen in Georgia. Law enforcement officers also recovered a custom-made red and black AR-15-style rifle with the words “SUU WHOOP” inscribed on it. “Suu whoop” is a gang call of the Bloods street gang, and red is the color of the Bloods street gang. A photograph of the rifle is below:
During the search of BURROUGHS’s house, and in addition to the four firearms described above, law enforcement officers also recovered large quantities of ammunition, various gun parts and tools for making ghost guns, and a flamethrower.
In connection with the shooting and search of his residence, BURROUGHS was charged in Superior Court of Connecticut – Ansonia-Milford Judicial District in Milford, Connecticut with Connecticut state offenses of threatening in the first degree, reckless endangerment in the first degree, criminal mischief in the third degree, illegal discharge of a firearm, criminal use of a weapon, criminal possession of a firearm or ammunition, and attempt to commit first degree assault. BURROUGHS was released on bail conditions.
On January 8, 2022, BURROUGHS was arrested in Westchester County, New York with kits to build 17 ghost guns, a completed lower receiver[2] for an AR-15 rifle, 15 extended magazines, and an 18-inch machete. A photograph of the items seized from BURROUGHS on January 8, 2022 is below:
After BURROUGHS was arrested on January 8, 2022, law enforcement agents searched multiple cellphones belonging to BURROUGHS pursuant to search warrants. Evidence on those cellphones, including text message communications, videos, and photographs, establishes that BURROUGHS has been unlawfully selling firearms since approximately 2019. In particular, the evidence shows that BURROUGHS’s gun trafficking business involves purchasing ghost gun parts online or at gun shows, building the ghost guns at his home, and then selling the completed firearms. One of BURROUGHS’s cellphones contained a photograph, below, of 15 ghost gun kits that BURROUGHS purchased in approximately February 2021.
BURROUGHS, 35, of Ansonia, Connecticut, is charged with: (1) one count of conspiracy to traffic firearms, which carries a maximum sentence of five years in prison, (2) one count of trafficking firearms, which carries a maximum sentence of ten years in prison, and (3) one count of being a felon in possession of ammunition. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the ATF. Mr. Williams also thanked the New York City Police Department, the Ansonia Police Department, the Westchester County District Attorney’s Office, the Connecticut Office of the State’s Attorney for Ansonia-Milford, and the United States Attorney’s Office for the District of Connecticut for their assistance in the case.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Kevin Mead is in charge of the prosecution.
The charges in the Superseding Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and other assertions in public court documents, and the descriptions of those documents set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
[2] A “lower receiver” or “frame” is the bottom part of a firearm and the basic unit of a firearm, which, in an AR-15 rifle, houses parts related to the trigger, magazine, and hammer.
Colorado Couple Indicted for Payroll and Personal Tax FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Jay G. Mills and Danielle A. Mills were indicted by a federal grand jury on March 23, 2022, on charges of failure to account for and pay over employment payroll taxes and failure to file income tax returns. Danielle Mills had her initial appearance on July 20, 2022, before U.S. District Court Magistrate Judge Kato Crews and was released on bond. Jay Mills initially appeared in federal court on April 25, 2022.
According to information contained in the indictment, the co-defendants were the owners, operators and principal officers of Mills Solids Control Consulting LLC located in Colorado. During the period for quarters ending March 31, 2016, through June 30, 2017, it is alleged the co-defendants deducted and collected taxable wages from MSCC employees. The co-owners are alleged to have willfully failed to pay over to the Internal Revenue Service the federal income taxes, Social Security taxes, and Medicare taxes withheld during this six-quarter period. Both co-defendants are also alleged to have failed to file federal individual income tax returns for the 2015-2017 tax years.
Jay Mills and Danielle Mills each face six counts of failure to pay over employment payroll taxes and three counts of failure to file a federal tax return. The defendants face a maximum fine of $1,575,000 and up to five years in prison for each failure to pay over count and up to one year in prison for each count of failure to file income tax returns.
This case is being investigated by Internal Revenue Service: Criminal Investigation.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
Caribbean Corridor Strike Force Arrests Four Individuals Charged with Drug TraffickingRead the Press Release
ind_drug_trafficking_cloro_7-20-22-cr-328-fab_.pdf SAN JUAN, Puerto Rico – On July 20, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging four individuals with conspiracy and possession with intent to distribute cocaine, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Participating agencies in the Caribbean Corridor Strike Force and the Puerto Rico Police Bureau (PRPB) are in charge of the investigation of the case, with the collaboration from: the Puerto Rico Department of Justice, the Puerto Rico Department of Public Safety, the Puerto Rico Department of Corrections and Rehabilitation, the Puerto Rico Ports Authority, Customs and Border Protection (CBP), the San Juan Municipal Police, and the Guaynabo Municipal Police.According to the evidence recovered in the investigation, and as alleged in the indictment, as part of the manners and means of the conspiracy, the members of the conspiracy packaged the cocaine inside cardboard boxes labeled as cleaning products.
The defendants named in the indictment are:
Francisco Rivera-Rivera
Santiago Ramírez
Teddy Vergara-López
Jonathan Castro-Rivera
Part of the contraband seized in this case was recently recovered from a warehouse at a correctional facility. At this time, the evidence does not indicate the involvement of any correctional officer or correctional employee in the commission of this crime. Instead, it appears that the cocaine-laden boxes were not removed from the shipment as planned, and were mistakenly taken to the Ponce warehouse with the cleaning products. The estimated value of the approximately 228 kilograms of cocaine seized in this investigation is $4,104,000.
“This operation reflects the excellent collaboration between our state and federal law enforcement partners. We will continue following leads in this investigation in order to identify all of those responsible,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
“The Caribbean Corridor Strike Force is composed of our federal, state and local counterparts in an effort to stop the movement of contraband in the Caribbean,” said Iván J. Arvelo, Special Agent in Charge for HSI San Juan. “Those involved in drug trafficking should know that the Caribbean is no longer an option to transship narcotics into the United States, we are working together, we are interdicting, and we are arresting.”
“The events related to the discovery of 50 kilos of cocaine inside a warehouse at the Ponce Correctional Facility, have been coordinated with our Federal Law Enforcement partners, the Department of Correction and Rehabilitation, and the Department of Public Safety. Our combined mission in the investigation of this crime and violation of the law is to find and prosecute all individuals involved in this criminal organization,” stated the Secretary of the Department of Public Safety, Alexis Torres.
Assistant U.S. Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max Pérez-Bouret, Deputy Chief of the Transnational Organized Crime Section, AUSA Vanessa Bonhomme, and AUSA Luis A. Valentin are in charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years, and up to life in prison.
The Caribbean Corridor Strike Force is part of an Organized Crime Drug Enforcement Task Force’s (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Participating agencies of the Caribbean Corridor Strike Force include the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Coast Guard Investigative Service (CGIS), the U.S. Marshals Service, the Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office.
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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California Man Sentenced to 120 Months for Sex Trafficking of a MinorRead the Press Release
PHOENIX, Ariz. – On July 14, Jahque Dijion Williams, 21, of Los Angeles, California, was sentenced by United States District Judge Diane J. Humetewa to 120 months in prison. Williams previously pleaded guilty to Sex Trafficking of a Minor.
On July 23, 2020, the Human Trafficking Unit of the Los Angeles Police Department found the 17-year-old minor, who appeared to have been physically assaulted, at a Los Angeles hospital. The victim indicated that she first met Williams on July 19, 2020, through her social media account and he invited her to a party in Phoenix. At the party, she realized it was a “recruiting party” for commercial sex workers. Williams then transported the minor and another adult female to Los Angeles where he told the minor she would work for him. Williams gave the minor details about the amount of money she would bring back each night. On the trip to Los Angeles, Williams prevented the minor from leaving the car by activating the child lock on his vehicle.
This case was brought as part of Project Safe Childhood (PSC), 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 the DOJ Child Exploitation and Obscenity Section, PSC 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.
Homeland Security Investigations, the Mesa Police Department, the Los Angeles Sheriff’s Department and the Los Angeles Police Department investigated the case. The United States Attorney’s Office, District of Arizona, Tucson and Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00687-PHX-DJH-1
RELEASE NUMBER: 2022-121_Williams# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Burlington Man Sentenced to Federal Prison for Drug ChargeRead the Press Release
DAVENPORT, Iowa – Jose Luis Escundino Romayor, age 37, was sentenced on July 19, 2022, to 210 months in prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine. Romayor was also ordered to serve five years of supervised release to follow his prison term. Romayor pleaded to the charge in February 2022.
According to court documents, in July and August of 2017, law enforcement in Des Moines County utilized a police informant to purchase “ice” methamphetamine from Romayor on multiple occasions. During the investigation, law enforcement seized more than 2 kilograms of methamphetamine and a pistol. After his arrest, Romayor admitted regularly receiving large amounts of methamphetamine for resale.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the United States Drug Enforcement Administration, Department of Homeland Security, Immigrations and Customs Enforcement, the Iowa Division of Narcotics Enforcement, and the Southeast Iowa Drug Task Force and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Burlington County Woman Sentenced One Year and One Day in Prison for Role in Scheme to Launder Money, Defraud Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, woman was sentenced today to one year and one day in prison for her role in a GoFundMe scam that gained nationwide attention, U.S. Attorney Philip R. Sellinger announced.
Katelyn McClure, 32, of Bordentown, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiracy to commit wire fraud. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In November 2017, McClure and Mark D’Amico, 43, allegedly created a crowd-source funding page on GoFundMe’s website titled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of a homeless veteran, Johnny Bobbitt, 39, of Philadelphia. McClure and D’Amico posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a “good Samaritan” and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited to get Bobbitt off the streets and provide him with living expenses, setting a goal of $10,000.
In reality, McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure allegedly conspired to create the false story to obtain money from donors. The story was quickly picked up by local and national media outlets and went viral and raised approximately $400,000 from more than 14,000 donors in less than three weeks.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money allegedly was quickly spent by D’Amico and McClure on personal expenses over the next three months.
In mid-November of 2017, when the donations had reached approximately $1,500, D’Amico and McClure told Bobbitt about the campaign and the false gas story. In December of 2017, after setting up a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
In addition to the prison term, Judge Hillman sentenced McClure to three years of supervised release and ordered her to pay $400,000 in restitution. D’Amico previously pleaded guilty and was sentenced in April 2022 to 27 months in prison; Bobbitt pleaded guilty and is awaiting sentencing.
U.S. Attorney Sellinger credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Lachia L. Bradshaw; officers of the Florence Township Police Department; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the Criminal Division in Camden.
Burlington County Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man was sentenced to 120 months in prison for conspiring to distribute large amounts of cocaine and crack cocaine throughout Burlington County, U.S. Attorney Philip R. Sellinger announced today.
Herbert Mays, 65, of Willingboro, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Judge Quraishi imposed the sentence on July 20, 2022, in Trenton federal court.
Eighteen other members of the drug trafficking conspiracy have pleaded guilty. The charges against two other defendants remain pending; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, Mays, his codefendants and others engaged in a narcotics conspiracy that operated primarily in municipalities throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, and Edgewater Park – and which sought to profit from the distribution of cocaine and crack cocaine. Law enforcement officials learned that defendants obtained regular supplies of cocaine from co-conspirators in the Philadelphia area and elsewhere and then redistributed that cocaine, portions of which defendants converted into crack cocaine, for profit, to other conspirators, distributors, sub-dealers, and end users throughout Burlington County and elsewhere. Law enforcement officials intercepted numerous communications by and between the conspirators regarding such issues as cocaine and crack cocaine quality and availability, pricing, packaging, quantity, and customer satisfaction.
In addition to the prison term, Judge Quraishi sentenced Mays to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; detectives of the Burlington County Prosecutor’s Office, under the direction of Burlington County Prosecutor Lachia L. Bradshaw; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Acting Director of Public Safety Ian Bucs; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesce; officers of the Edgewater Park Police Department, under the direction of Chief of Police Brett V. Evans; officers of the Ewing Police Department, under the direction of Chief of Police Albert Rhodes; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; officers of the Trenton Police Department, under the direction of Director Steve Wilson with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the U.S. Attorney’s Office’s Criminal Division in Trenton and Andrew B. Johns of the Criminal Division in Camden.
Brother of Baltimore Business Owner Admits to Falsely Claiming His Brother’s Bank Balance and Activity as His Own in Order to Obtain a Federal Housing Administration LoanRead the Press Release
Baltimore, Maryland – Calvin Abramowitz, age 48, of Lakewood, New Jersey, pleaded guilty today to bank fraud. As part of his guilty plea, Abramowitz has been ordered to pay $209,036.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Shawn A. Rice of the U.S. Department of Housing and Urban Development Office of Inspector General.
According to his guilty plea, Calvin Abramowitz and his brother, Philip Abramowitz, age 40, of Pikesville, Maryland conspired to defraud at least one financial institution by fraudulently obtaining Federal Housing Administration (FHA) loans and property under false pretenses. Specifically, Philip Abramowitz used his company 163 N. Potomac St., LLC., to facilitate the fraudulent sales of his Potomac Street, Baltimore, Maryland properties.
In May 2016, Philip Abramowitz decided to sell one of the Potomac Street properties (Property 1) to his brother, Calvin Abramowitz for $300,000 using an FHA-insured loan. The FHA is part of the U.S. Department of Housing and Urban Development (HUD) and provides mortgage insurance on loans made by FHA-approved lenders. To qualify for the FHA-insured loans, the buyer must use the residence as their primary residence, disclose any familial or business relationship between the seller and buyer, and disclose the source of the money the buyer intends to use for the down payment and closing costs.
As stated in his guilty plea, Calvin Abramowitz applied for and received a $294,566 FHA-insured loan with a mortgage company (Mortgage Company 1) by falsely representing Philip Abramowitz’s bank account records as his own. The defendants also concealed their familial relation from Mortgage Company 1 by submitting false company filings during the loan application process, having Philip Abramowitz’s property manager (Property Manager 1) pose as the sole seller and manager of 163 N. Potomac St., LLC and arranging Property Manager 1 to sign the FHA-loan contact as the official seller of the property. Philip Abramowitz’s ownership of 163 N, Potomac St., LLC. or involvement in the sale was never disclosed.
Further, to facilitate the loan underwriting process, Philip Abramowitz gave Calvin Abramowitz $10,500 to pay for the closing costs for Property 1 as Calvin Abramowitz did not have the financial means to make the purchase. Based on the fraudulent financial information presented during the loan application process, Mortgage Company 1 loaned Calvin Abramowitz $294,566 for the purchase of Property 1. The majority of the loan proceeds were subsequently deposited into Philip Abramowitz’s bank account. Ultimately, Calvin Abramowitz never used Property 1 as a primary residence and rented the property to tenants before ceasing mortgage payments and causing the property to fall into foreclosure.
Philip Abramowitz pleaded guilty to conspiracy to commit wire fraud in May 2022 and is scheduled to be sentenced on August 9, 2022, at 2:30 p.m.
Calvin Abramowitz faces a maximum sentence of 30 years in federal prison followed by 5 years of supervised release for bank fraud. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 6, 2022, at 2:30 p.m.
United States Attorney Erek L. Barron commended HUD-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Brooklyn, NY Man Sentenced to 10 Years for Possessing a Fentanyl/Heroin Mix He Intended to DistributeRead the Press Release
PITTSBURGH, PA – A former resident of Brooklyn, New York, has been sentenced in federal court to 10 years’ imprisonment on his conviction for violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Miguel Rodriguez, 53, formerly of Belmont Avenue, Brooklyn, New York, who previously pleaded guilty to a Superseding Indictment charging him with possessing 400 grams or more of fentanyl and heroin intending to redistribute it.
In connection with his prior guilty plea, the Court was advised that law enforcement agents encountered Rodriguez on July 27, 2019, departing a bus in downtown Pittsburgh that had recently arrived from New York City. During a subsequent search of Rodriguez’s bags, agents discovered a large bag of powder that was later determined to contain mixtures of both heroin and fentanyl, which are scheduled controlled substances under federal law. In connection with his plea, Rodriguez admitted to knowingly possessing a controlled substance intending to distribute it in the Western District of Pennsylvania.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rodriguez.
Baraboo Resident Sentenced to 96 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Carl Rabe, 44, Baraboo, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 96 months in prison for possession of methamphetamine with intent to distribute. Rabe pleaded guilty to this charge on April 26, 2022.
During the course of a long-term, multi-agency investigation, law enforcement officers identified several people, including Rabe, who distributed significant amounts of methamphetamine in western Wisconsin. Investigators also learned that Rabe partnered with traffickers who purchased methamphetamine from sources-of-supply in other states.
On October 20, 2021, an investigator from the Richland-Iowa-Grant Drug Task Force watched Rabe meet with the driver of a pickup truck in a retail parking lot in Lancaster, Wisconsin. The investigator knew Rabe had an outstanding warrant and was on probation for prior drug charges.
While Rabe stood next to the pickup, the investigator and a canine officer from the Lancaster Police Department arrested Rabe on the outstanding warrant. Investigators then interviewed the driver of the pickup who admitted that he planned to purchase $50 worth of methamphetamine from Rabe.
Investigators searched Rabe’s car after the Lancaster Police Department’s drug detection dog alerted to the presence of narcotics in the vehicle. A scale, packaging material, and 425 grams of methamphetamine were found in the car.
At the sentencing hearing, Judge Conley described Rabe as someone who embraced the drug trafficking lifestyle. Judge Conley noted that, in addition to the charged conduct, Rabe jumped into a major drug trafficking network when he partnered with Christopher Fernette and Dillan Boydston to obtain three pounds of methamphetamine from a source-of-supply in Minnesota.
On June 29, 2022, Judge Conley sentenced Christopher Fernette to 120 months’ imprisonment for possession of methamphetamine with intent to deliver. Dillan Boydston pleaded guilty yesterday to conspiracy to distribute methamphetamine and is scheduled to be sentenced on November 3, 2022.
The charge against Rabe was the result of an investigation conducted by Crawford County Sheriff’s Office, Prairie du Chien Police Department, Richland-Iowa-Grant Drug Task Force, Lancaster Police Department, Dakota County (Minnesota) Drug Task Force, Iowa Division of Criminal Investigation, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Atlanta film producer pleads guilty for $2.5 million cryptocurrency-based investment scamsRead the Press Release
ATLANTA - Ryan Felton has pleaded guilty to multiple counts of wire fraud, securities fraud, and money laundering charges on the fourth day of his jury trial arising from his fraudulent promotion of two cryptocurrency investment schemes that cost investors millions in losses.
“The defendant used 21st century technology to perpetrate an age-old fraud: lying to investors to steal their money and fund his own lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Felton’s conviction should serve as a warning to anyone who seeks to capitalize on emerging technology to victimize others.”
“The technology has advanced, but the crime remains the same, and those who invest in cryptocurrency must be wary of opportunities that appear too good to be true,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to protecting investors from sophisticated cryptocurrency scammers that seek to capitalize on the novelty of digital currency.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 2017, Felton promoted an initial coin offering (ICO) for a new entertainment streaming platform, FLiK, which he promised would surpass Netflix. ICOs are fundraising events during which the issuers of a unique cryptocurrency “token” or “coin” set an amount they want to raise, offer it to the public in a crowd sale, and receive cryptocurrency from investors in exchange.
In order to increase, or pump, the price of FLiK coins, Felton falsely represented to investors that a prominent Atlanta rapper and actor was a co-owner of FLiK, the United States military had agreed to distribute the streaming platform to service members, and FLiK was finalizing licensing deals with major film and television studios. In reality, the rapper had no role in the company beyond authorizing a promotional social media post, FLiK had no military contract, and Felton never had discussions with any studio about licensing content. Felton further claimed that he was actively developing the platform and would use all funds raised in the ICO to launch FLiK. After the ICO closed, Felton dumped more than 40 million FLiK coins on trading markets, causing the value of FLiK coins to plummet.
Instead of using investor funds to develop the platform, Felton diverted approximately $2.4 million in investor proceeds from the ICO and trading markets to his personal account. He used the vast majority of the investor proceeds to fund his extravagant lifestyle, including all-cash purchases of a $1.5 million residence, a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe, a new $58,250 Chevy Tahoe, and approximately $30,000 in diamond jewelry.
In 2018, Felton promoted a second ICO for a new company, CoinSpark, which was a cryptocurrency trading exchange. In order to attract investors to the ICO, Felton promised that Spark coin investors would receive 25% of the trading exchange’s profits in the form of dividends. Felton further claimed that a global accounting firm would audit CoinSpark’s finances on a quarterly basis, but, in reality, he never spoke with the accounting firm. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites to further promote false information and build up excitement in CoinSpark.
After raising more than $200,000 in the ICO, Felton announced that CoinSpark would not pay Spark investors a dividend and offered ICO investors a refund. Felton then repeatedly rejected or ignored investor requests for refunds. The CoinSpark exchange ultimately launched months after its promised delivery date but had significant technical issues and minimal trading activity. Instead of applying ICO proceeds to CoinSpark, Felton again diverted significant funds to his personal bank account.
Ryan Felton, 48, of Atlanta, Georgia, pleaded guilty to twelve counts of wire fraud, ten counts of money laundering, and two counts of securities fraud on the fourth day of his jury trial. Sentencing will be scheduled at a later date before U.S. District Court Judge J.P. Boulee.
This case is being investigated by the Federal Bureau of Investigation.
The SEC Washington, D.C. Office and the SEC New York Regional Office provided valuable contributions in this case.
Assistant U.S. Attorneys Sekret T. Sneed and Nathan P. Kitchens are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ashland City Physician Charged in Federal Health Care Fraud ConspiracyRead the Press Release
NASHVILLE – A federal grand jury in Nashville on Monday returned a nine-count indictment, charging an Ashland City, Tennessee, physician in a telemedicine conspiracy to defraud Medicare of more than $41 million, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
John R. Manning, 61, faces charges of conspiracy to commit health care fraud and eight counts of health care fraud. The indictment also contains a forfeiture allegation in which the United States seeks to recover all property, including a money judgement, that represents the proceeds of the violations. Manning was arrested Tuesday at his home by federal agents.
The indictment alleges that Manning worked for various telemedicine companies that arranged for physicians to prescribe a variety of durable medical equipment (DME), topical creams, and Cancer Genomic (CGx) testing for Medicare beneficiaries. Manning and his co-conspirators sought to enrich themselves by paying and receiving kickbacks and bribes in exchange for signed doctors’ orders and prescriptions for DME, topical creams, and CGx testing, and submitting false and fraudulent claims to Medicare for such services and treatments that were not medically necessary and not eligible for reimbursement.
The indictment further alleges that Manning electronically signed doctors’ orders without having established a patient/doctor relationship as required, and issued orders and prescriptions based on only a brief telephonic conversation, or often no conversation at all, and without seeing or physically examining the patient, and without regard for medical necessity. The indictment also alleges that the telemedicine companies paid Manning a fee “per visit,” constituting illegal
kickbacks and bribes in exchange for signing doctors’ orders and prescriptions.
If convicted, Manning faces up to 10 years in prison on each count.
This case is being investigated by the U.S. Department of Health & Human Services-Office of Inspector General and the FBI, with the assistance of the Cheatham County Sheriff’s Office. Assistant U.S. Attorney Robert S. Levine and Trial Attorney Leslie Fisher of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Arizona Men Found Guilty of Investment FraudRead the Press Release
TUCSON, Ariz. –Last week, a federal jury found Jeffrey D. McHatton, 68, of Chandler, Arizona, and Robert B. Sproat, 60, of Mesa, Arizona, guilty on 10 counts of Securities Fraud. The case was tried before United States District Judge Rosemary Márquez. Sentencing is scheduled for September 28, 2022. Prior to trial, a third co-defendant, Robert Moss, 56, of Gilbert, Arizona, pleaded guilty to his involvement in the scheme and was sentenced to 30 months in prison.
Evidence presented at trial demonstrated that, between 2012 and 2014, McHatton, Sproat, and Moss used a religious charitable organization as a front to entice victims to invest over $1.2 million. Several of the victims targeted in the scheme were elderly. McHatton, Sproat, and Moss fraudulently promoted investments in the recovery of low alpha lead from Central America, gold from the Philippines, and diamonds from Africa, though none of the items were ever produced. McHatton, Sproat, and Moss used large portions of the investment funds for their own personal use. The victims never received a return on investments other than minimal “interest” payments derived from other victims’ money.
The FBI and the Arizona Corporation Commission conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-18-2220-TUC-RM
RELEASE NUMBER: 2022-122_McHatton et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit Justice.gov/AZ
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
91 Arrested in Crime Reduction Operation in North Carolina and South CarolinaRead the Press Release
CHARLOTTE, N.C. – A crime reduction operation in North Carolina and South Carolina has resulted in the apprehension of more than 91 individuals on charges of homicide, aggravated assault, sexual assault, robbery, kidnapping, child abuse, child sexual assault, drug distribution and gun crimes.
The enforcement operation announced today took place between July 5, 2022, and July 15, 2022, in Gaston County in North Carolina and York County in South Carolina, with special emphasis placed on communities within Gastonia, N.C. and Rock Hill, S.C.
Led by the U.S. Marshals Service, “Operation Washout” is a violent crime reduction initiative that brings together federal, state and local law enforcement, and focuses on improving safety in local communities by identifying and removing fugitives, violent criminals, self-identified gang members, sex offenders, drug traffickers, and parole violators.
“Criminal activity impacts the well-being of our communities,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “I commend the law enforcement agencies that took part in this crime reduction initiative. As we work together to build stronger relationships with our communities, we must hold accountable those who continue to spread violence and pose a threat to our citizens’ safety.”
“Our commitment to strengthen, protect and safeguard our communities is showcased by the collaborative effort of all the agencies involved in this operation,” said Chris Edge, Acting U.S. Marshal of the U.S. Marshals Service in the Western District of North Carolina. “It also serves as a somber reminder that if you commit a crime and think by fleeing the county or state the United States Marshals Service will find you, wherever you hide.”
Partnering agencies included the U.S. Marshals Service in North Carolina and South Carolina and the U.S. Marshals Service’s Carolinas Regional Fugitive Task Force, the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), the U.S. Attorney’s Office for the Western District of North Carolina, the U.S. Attorney’s Office for the District of South Carolina, the U.S. Probation Office for the Western District of North Carolina, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the South Carolina Highway Patrol, the North Carolina Department of Public Safety, the Gaston County Police Department, the City of Gastonia Police Department, the Gaston County Sheriff’s Office, the Gaston County District Attorney’s Office, the Rock Hill Police Department, the York County Sheriff’s Office, and the York County Solicitor’s Office.
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72-Year-Old Sentenced to 15 Years in Prison for Attempted Bank RobberyRead the Press Release
A 72-year-old El Paso man was sentenced today to 15 years in federal prison for attempted bank robbery, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
James Earl Green, Jr. was first charged in August 2020. He was convicted at trial in April and sentenced Thursday by U.S. District Judge James Wesley Hendrix.
According to evidence presented at trial, at approximately 7:40 a.m. on Sept. 24, 2019, Mr. Green accosted a First State Bank employee as she was attempting to enter the bank for opening.
Mr. Green held a handgun to the employee’s head and pushed her inside the bank, where he held her for approximately 20 minutes. During that time, surveillance video caught the defendant on camera pacing back and forth with an identifiable limp.
A second bank employee arrived at 7:57 a.m., and a struggle ensued. During the melee, Mr. Green struck the first employee on the head with his handgun. He then fled on foot without obtaining any money, leaving his two duffel bags behind.
At today’s sentencing hearing, one of the employees recounted that she still suffered anxiety stemming from the attack.
“Every single time I walk through the back door or my workplace, I clearly see the robber coming out of the bushes and holding his gun on me. I can still hear his voice telling me that he was going to kill me if I tried anything. I can clearly hear him say that if I tried to warn my co-worker, he would kill her and that it would be my fault,” she said in a statement to the court. “Even as time has passed, this crime is still so fresh on my mind, like it happened only yesterday.”
Following the incident, an anonymous tipster notified the Abilene Police Department that a gold Cadillac had been parked across the street from the bank the morning before the robbery. Law enforcement then identified the Cadillac – a four door sedan with its front right hub cap cover missing – in surveillance video pulled from the bank’s vicinity. An employee of the City of Abilene narrowed down gold Cadillacs from a list of more than 11,000 to locate a matching gold Cadillac belonging to Mr. Green.
After learning that Mr. Green lived in El Paso, officers reached out to an individual there that knew him, who reviewed the bank surveillance video and noted that the robber in the video walked in a similar manner to Mr. Green, who wore a prosthetic leg. She also shared a photo of Mr. Green’s Cadillac, which was gold and missing its front right hub cap cover.
Meanwhile, the Texas Department of Public Safety’s Crime Lab extracted a DNA profile from the duffel bag, ran it through the FBI’s Combined DNA Index System (CODIS), and found a match to a sample from Mr. Green. Additionally, a member of the FBI’s Cellular Analysis Survey Team obtained historical cell phone data from Mr. Green’s cell phone provider and placed Mr. Green’s cell phone traveling to Abilene from El Paso days before the attempted bank robbery and returning from Abilene to El Paso immediately following the attempted robbery.
The Abilene Police Department, the Federal Bureau of Investigation’s Dallas and El Paso Field Offices, and the Texas Department of Public Safety’s Crime Laboratory conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Ryan Redd tried the case.
21 Charged, Including Hospital and Lab CEOs, in Connection with Multistate Healthcare Kickback ConspiracyRead the Press Release
TYLER, Texas – The Department of Justice announced criminal charges against 36 defendants in 13 federal districts across the United States for more than $1.2 billion in alleged fraudulent telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes.
In connection with this national effort, the U.S. Attorney’s Office for the Eastern District of Texas has charged 21 individuals, including doctors, laboratory executives, hospital executives, and marketers for their involvement in healthcare kickback and money laundering conspiracies. Former True Health Diagnostics LLC CEO Christopher Grottenthaler, former Boston Heart Diagnostics Corporation Susan L. Hertzberg, former Rockdale Hospital d/b/a Little River Healthcare CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). Additionally, 33 doctors and healthcare executives have agreed to pay over $32 million in order to resolve False Claims Act allegations for their involvement in the scheme. The criminal and civil cases allege that the defendants unlawfully enriched themselves by paying and receiving illegal kickbacks in exchange for laboratory referrals.
Criminal Cases
U.S. v. Hertzberg, et al
Susan L. Hertzberg, 64, of New York, Matthew John Theiler, 56, of Mars, Pennsylvania, David Weldon Kraus, 64, Loudon, Tennessee, Jeffrey Paul Parnell, 54, of Tyler, Texas, Thomas Gray Hardaway, 49 of San Antonio, Texas, Laura Spain Howard, 48, of Allen, Texas, Jeffrey Paul Madison, 47, Georgetown, Texas, Todd Dean Cook, 57, Wimauma, Florida, William Todd Hickman, 59, of Lumberton, Texas, Christopher Roland Gonzales, 45, of McKinney, Texas, Ruben Daniel Marioni, 37, of Spring, Texas, Jordan Joseph Perkins, 38, of Conroe, Texas, Elizabeth Ruth Seymour, 39, of Corinth, Texas, Linh Ba Nguyen, 58, of Dallas, Texas, Thuy Ngoc Nguyen, 54, of Dallas, Texas, Joseph Gil Bolin, 50, of Dallas, Texas, Heriberto Salinas, 62, of Cleburne, Texas, and Hong Davis, 54, of Lewisville, Texas were indicted for conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs. The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to critical access hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to order, arrange for, or recommend the ordering of services from critical access hospitals and an affiliated lab in violation of the Anti-Kickback Statute.
Two Texas critical access hospitals, Little River Healthcare (LRH) based in Rockdale, Texas, and Stamford Memorial Hospital based in Stamford, Texas, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in blood testing. For a fee, BHD allowed the hospitals to bill their blood tests to insurers as purported hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory. The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas. In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals. Pursuant to the alleged kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly. BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions. Between July 1, 2015, and January 9, 2018, at least $11,256,241.68 in illegal kickback payments were exchanged by the defendants in furtherance of the conspiracy.
On May 24, 2022, Laura Howard pleaded guilty to her involvement in the kickback conspiracy.
On July 20, 2022, Ruben Marioni pleaded guilty to his involvement in the kickback conspiracy.
U.S. v. Peter Bennett
Peter Bennett, 47, of Houston, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his role in laundering the proceeds of the kickback conspiracy. To that end, he allegedly created sham trusts and shell corporations through which he laundered the kickback proceeds, and in furtherance of the money laundering conspiracy, Bennett laundered at least $2,724,080.41 in kickback proceeds.
U.S. v. Stephen Kash
Stephen Kash, 48, of Winnie, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his involvement in the money laundering conspiracy. Kash allegedly had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy.
U.S. v. Robert O’Neal
Robert O’Neal, 63, of San Antonio, Texas, was charged by information with conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). O’Neal was charged for his involvement in the kickback conspiracy and money laundering conspiracy. His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to critical access hospitals and an affiliated lab. O’Neal also had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy.
On January 18, 2022, O’Neal pleaded guilty to his involvement in the kickback conspiracy and the money laundering conspiracy.
The criminal cases were investigated by the Defense Criminal Investigative Services (DCIS), U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Veteran Affairs, Office of Inspector General (VA-OIG), and the Federal Bureau of Investigation Dallas – Frisco Resident Agency. They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and J. Kevin McClendon.
Civil Cases and Settlements
Boston Heart Diagnostics Corporation, 33 doctors, and healthcare executives have agreed to pay over $32 million to resolve False Claims Act allegations for their involvement in a scheme to pay and receive illegal kickbacks in exchange for laboratory referrals. Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan L. Hertzberg, former Little River CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). The United States filed an amended complaint in May 2022.
The civil settlements resolve allegations that doctors and healthcare executives violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from nine MSOs in exchange for ordering laboratory tests from Little River, True Health, and/or Boston Heart. Little River allegedly funded the remuneration to certain doctors in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.
The civil settlements are the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. The civil cases are being handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any patients who believe that they have been contacted as part of a fraudulent telemedicine, clinical laboratory, or DME scheme should call to report this conduct to HHS-OIG at 1-800-HHS-TIPS.
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Wednesday 20 July 2022
Winner Man Sentenced for Firearm ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Winner, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on July 19, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Cameron Fanning, age 24, was sentenced to 36 months in federal prison, followed by three years of supervised release, forfeiture of the firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fanning was indicted by a federal grand jury on December 14, 2021. He pled guilty on April 28, 2022.
The conviction stemmed from an incident that occurred on August 6, 2021, in Mission, South Dakota. On that date, the Rosebud Sioux Tribe Law Enforcement Services responded to a report of an individual driving erratically. Law enforcement made contact with the lone male occupant. The occupant fled the scene, which led to his arrest and search of the vehicle, where a handgun was located in the vehicle. Fanning had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, making it illegal for him to possess firearms.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Fanning was immediately turned over to the custody of the U.S. Marshals Service.
Waterbury Drug Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL MUNN, 55, of Waterbury, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by five years of supervised release, for participating in a narcotics conspiracy.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Louie McDowell was supplying large quantities of heroin and cocaine to Munn and others, who then sold the drugs to other distributors and drug users.
On January 8, 2019, Munn, McDowell and 10 other individuals were charged in a superseding indictment with various narcotics distribution and firearm distribution offenses. Munn was arrested on January 15, 2019. On January 15, 2020, he pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute controlled substances.
Munn, who is released on a $100,000 bond, is required to report to prison on August 23.
McDowell, of Seymour, pleaded guilty and, on July 13, 2022, was sentenced to 66 months of imprisonment.
The other 10 defendants also pleaded guilty.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington, Indiana Drug Dealer Sentenced to 46 Months in Federal Prison for Dealing Methamphetamine and Illegal Possession of FirearmsRead the Press Release
EVANSVILLE – Matthew V. Palmer-Coy, 26, of Washington, Ind., was sentenced late yesterday to 46 months in federal prison after pleading guilty to possession of a firearm and ammunition by a prohibited person and possession with intent to distribute methamphetamine.
According to court documents, on May 23, 2021, a Washington Police Officer stopped Palmer-Coy in the vehicle he was driving after observing a traffic violation. A K-9 officer alerted to the presence of illegal narcotics in the car and officers searched the vehicle. During the search, officers found a lockbox containing a firearm with an altered serial number, individually wrapped baggies of methamphetamine, clear glass pipes, unused plastic baggies, a digital scale, ammunition, and a notebook that appeared to be a drug ledger. Palmer-Coy knew he was unauthorized to possess firearms or ammunition as he was previously convicted of felony charges of neglect and possession of methamphetamine in Daviess County, Ind.
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 (ATF), Columbus Field Division, made the announcement.
ATF investigated the case. The Washington Police Department also provided valuable assistance. The sentence was imposed by U.S. District Court Judge Richard L. Young. As part of the sentence, Judge Young ordered that Palmer-Coy 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 Matthew Miller who is prosecuting the case.
Washington County Man Sentenced for Possessing Destructive Devices and Other FirearmsRead the Press Release
ALBANY, NEW YORK – Daniel Day, age 35, of Argyle, New York, was sentenced today to 51 months in prison for unlawful possession of destructive devices, firearms and ammunition.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Day admitted to possessing the component parts necessary to assemble and create three homemade, improvised explosive devices at his residence in Argyle on August 5, 2021. Day also admitted to possessing other firearms and ammunition at his residence, including a submachinegun, a sawed-off shotgun, and a 3D-printed pistol without a serial number. None of the firearms were registered to Day as required by federal law, and Day had a prior felony conviction that prevented him from possessing the firearms and ammunition. As part of his plea agreement, Day agreed to abandon and forfeit all the bomb-making materials and chemicals, firearms, firearm parts and ammunition found at his residence.
Chief United States District Judge Glenn T. Suddaby also ordered Day to serve a 3-year term of supervised release following his prison sentence.
This case was investigated by the Joint Terrorism Task Force (JTTF), which includes members of the FBI and New York State Police, and was prosecuted by Assistant U.S. Attorneys Alexander Wentworth-Ping and Richard Belliss.
U.S. Attorney and New Jersey Acting Attorney General Join Forces in Support of Continued Access to Reproductive Health CareRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger joined New Jersey Acting Attorney General Matthew J. Platkin today to announce their continued commitment to ensure that women in New Jersey have access to reproductive health care services in the wake of the U.S. Supreme Court’s Dobbs decision overturning Roe v. Wade.
“The U.S. Attorney’s Office for the District of New Jersey – and the entire Justice Department – will do everything within our power to protect reproductive freedom,” U.S. Attorney Sellinger said. “Despite the Court’s decision, abortion remains legal in New Jersey. We will work tirelessly to ensure women’s unobstructed access to reproductive health services throughout New Jersey, including access to abortion services, so that women may consult with their medical providers to make important and personal decisions about their bodies and their lives.”
“As other states impose draconian penalties on patients and health care professionals who seek or provide abortion care, New Jersey has chosen a very different path. We are using every available tool at our disposal to keep abortion patients and their providers safe,” Acting Attorney General Platkin said. “We’re proud to work side-by-side with Governor Murphy, the U.S. Attorney’s Office, and the federal government to protect access to reproductive health care.”
U.S. Sellinger and Acting Attorney General Platkin made the joint announcement today at a press conference in Newark.
U.S. Attorney Sellinger and Acting Attorney General Platkin emphasized their commitment to have open lines of communications and, when appropriate, to share intelligence and information in order to facilitate efficient decision-making in protecting reproductive rights. They also announced plans for their offices to work together to conduct a series of outreach sessions with stakeholders, such as reproductive service providers and advocates, to send a clear message that law enforcement at all levels will protect reproductive rights.
U.S. Attorney Sellinger reiterated U.S. Attorney General Merrick B. Garland’s strong disagreement with the Dobbs ruling and its far-reaching impact on people, particularly people of color and limited financial resources.
“While the right to control one’s own body is central to individual freedom, the Court’s decision denies millions of women that right by preventing them from being able to make critical and highly personal decisions about their bodies, their health, and their futures,” U.S. Attorney Sellinger said.U.S. Attorney Sellinger promised continued enforcement of the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits obstructing access to reproductive health services through violence, threats of violence, or property damage. He said women who live in New Jersey – or who travel to New Jersey – will continue to have unobstructed access to reproductive health services, including abortion services.
The Office’s newly created Civil Rights Division will lead the Office’s enforcement and outreach efforts. The Division brings together civil and criminal prosecutors into one division focused on protecting vitally important civil rights, including the right to access reproductive health care.
Anyone with knowledge of FACE Act violations can contact the office through the civil rights hotline at 855-281-3339 or through the complaint portal on the U.S. Attorney’s Office, District of New Jersey, website: District of New Jersey.
Two Nashville Men Headed to Federal Prison in "Blue Heroin" Distribution ConspiracyRead the Press Release
NASHVILLE – Two Nashville men indicted in February 2020 as part of a deadly heroin and fentanyl distribution network are headed to federal prison to serve lengthy prison sentences, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Marquel Peoples, aka Worm, 26, and Christopher Johnson, 28, have each made appearances in U.S. District Court to answer a 15-count indictment, which charged them with conspiracy to distribute and possession with intent to distribute heroin, fentanyl, and carfentanil, and various counts of possession with intent to distribute and distribution of heroin and fentanyl. Peoples and Johnson were also charged with being responsible for the distribution of more than 400 grams of fentanyl, and with possessing firearms in furtherance of drug crimes. The indictment also alleged that the fentanyl distributed by Peoples resulted in serious bodily injury to others and resulted in the death of one individual.
Peoples pleaded guilty yesterday to eight counts of the indictment under a binding plea agreement, which, if accepted by the Court, will require him to serve 16 years in prison when he is sentenced later this year. Johnson pleaded guilty in October 2021 to seven counts of the indictment and was sentenced in May to 70 months in prison.
“The U.S. just recorded its highest number of overdose deaths on record, surpassing 100,000 in 2021,” said U.S. Attorney Wildasin. “The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue those who fuel this deadly epidemic by illegally distributing these deadly substances.”
According to documents filed with the Court, in the summer of 2019, law enforcement became aware of reports of blue-tinted drugs, which were causing overdoses in the middle Tennessee area. Through a series of investigative efforts, law enforcement acquired blue-tinted drugs from Peoples, Johnson, and Blaine Ellis, and subsequent testing determined that those drugs contained heroin and fentanyl. During one operation, Peoples claimed responsibility for the blue drugs, saying, “[I]f you got the blue stuff … [you] got it from us.” The investigation also linked a fatal overdose in March 2019 to the conspiracy.
Blaine Ellis, 32, of LaVergne, Tenn., was also charged in this case with possession with intent to distribute heroin and fentanyl. He pleaded guilty in June 2021 and is scheduled to be sentenced in November.
This investigation was conducted by the Drug Enforcement Administration’s Nashville District Office Tactical Diversion Squad; the Tennessee Bureau of Investigation Opioid/Overdose Task Force; the Metropolitan Nashville Police Department SID Gang Unit; the Lavergne Police Department; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Spring Hill Police Department. Assistant U.S. Attorneys Amanda J. Klopf and Rascoe Dean are prosecuting the case.
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Two Miami-Area Men Sentenced in Connection with Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Hugo Hernandez, age 35, of Miami Lakes, Florida, was sentenced today to 60 months in prison for his roles in an access device fraud conspiracy and a money laundering conspiracy. Marlon Palacios, age 38, of Cape Coral, Florida, was sentenced today to four months in jail for his role in an access device fraud conspiracy and for committing aggravated identity theft. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
As part of his guilty plea on October 22, 2021, Hernandez admitted that between December 2015 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fraudulent credit and debit cards. The fraudulent cards were used to obtain money orders, gift cards, cash, and other things of value. Hernandez also admitted to being part of a conspiracy to launder funds obtained through the access device fraud conspiracy, and, in facilitating that conspiracy, causing at least 162 money orders, worth $173,257, to be deposited into a bank account he controlled. As part of his plea agreement, Hernandez agreed to be subject to a forfeiture money judgment in the amount of $173,257.
As part of his guilty plea on April 14, 2021, Palacios admitted to being a part of the same access device fraud conspiracy described above. Palacios also admitted to committing aggravated identity theft by sending or receiving e-mails that contained debit and credit card account information of victims who had had their card data skimmed and stolen by members of the access device fraud conspiracy. As part of his plea agreement, Palacios agreed to be subject to a forfeiture money judgment in the amount of $25,000.
Senior United States District Judge Gary L. Sharpe also imposed a three-year term of supervised release on Hernandez to follow his term of incarceration, and a one-year term of supervised release on Palacios to follow his term of incarceration.
This case was investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case was prosecuted by Assistant U.S. Attorney Rick Belliss.
Two Mexican Nationals Indicted for Illegal Firearms PossessionRead the Press Release
SAN ANTONIO – A federal grand jury in San Antonio returned an indictment today charging Juan Claudio D’Luna-Mendez, 23, and Juan Francisco D’Luna-Bilbao, 48, both citizens of Mexico, with one count each of possession of a firearm while unlawfully present in the United States.
According to court documents, the registration for a tractor trailer used in an attempted human smuggling event came back to a residence in San Antonio. San Antonio Police Department officers set up surveillance on the residence and observed two males leaving in separate trucks. After traffic stops on both trucks, the drivers were identified as D’Luna-Mendez and D’Luna-Bilbao. D’Luna-Bilboa was in possession of a handgun that was found in the center console of the truck he was driving. A search warrant was executed at the residence where additional firearms were located.
If convicted, both defendants face up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Both defendants have remained in federal custody since their arrests on June 27, 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski made the announcement.
The ATF, with valuable assistance from the San Antonio Police Department, is investigating the case.
Assistant U.S. Attorneys Amanda Brown and Sarah Spears are 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. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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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Two Men Sentenced for Roles in Large-Scale Crystal Methamphetamine Distribution ConspiraciesRead the Press Release
LEXINGTON, Ky. — Two men, in separate cases, were sentenced on Monday, by Chief U.S. District Judge Danny C. Reeves, for their roles in two conspiracies to distribute considerable amounts of crystal methamphetamine.
William R. Hargis, 24, of Danville, Ky., was sentenced to a total of 420 months in federal prison. Hargis previously pled guilty to conspiracy to distribute and possession with intent to distribute 52.5 pounds of crystal meth, possession of firearms in furtherance of drug trafficking, and conspiracy to commit money laundering.
According to Hargis’ plea agreement, in May 2021, law enforcement was conducting a narcotics investigation regarding a group of individuals engaged in distributing crystal methamphetamine in Lexington. Law enforcement conducted a traffic stop where they found Hargis in possession of methamphetamine, cocaine, marijuana, a digital scale, plastic bags, and cash. Upon further investigation, it was determined that Hargis was a drug supplier and was storing, packaging, and cutting narcotics in a Lexington office building. In that office, law enforcement found more than 50 pounds of methamphetamine, four firearms, cocaine, and additional drug trafficking items.
Furthermore, Hargis also admitted to travelling from the Kentucky to Southern Indiana casinos to engage in financial transactions, by placing monetary bets to conceal the source of the bets, which was in whole or part proceeds from the drug trafficking.
In a second case, Deangelo Devon Grant, 36, of Los Angeles, was sentenced to 264 months in federal prison, after previously pleading guilty to conspiracy to distribute and possession with intent to distribute crystal methamphetamine.
According to Grant’s plea agreement, on August 16, 2021, Grant received a package that had been shipped from California to Lexington, which contained approximately 48 pounds of crystal methamphetamine for distribution. Grant admitting flying from California to receive the package, in Lexington. Grant’s vehicle was stopped by law enforcement, where they discovered the methamphetamine.
Grant had previous convictions for robbery in the second degree, in California (2004), and possession with intent to distribute cocaine in the Western District of Kentucky (2016).
Both Hargis and Grant pleaded guilty in April 2022.
Under federal law, Hargis and Grant must serve 85 percent of their prison sentences. Upon their release from prison, Hargis will be under the supervision of the U.S. Probation Office for five years and Grant will be under supervision for 10 years.
“As these two cases illustrate, the amount and purity of the methamphetamine we are seeing in Eastern Kentucky is remarkable,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Illegal methamphetamine trafficking has an immense impact on our communities, and often brings guns, violence, and other crime. We remain committed to prosecuting those who engage in this grave conduct, and we hope that sentences like these will serve as a warning to those who continue to engage in it.”
“Anyone who poisons our communities through the sale of illicit drugs must be stopped and brought to justice,” said J. Todd Scott, special agent in charge of the Drug Enforcement Administration’s Louisville Division. “I’m very proud of the work done by the men and women of DEA and our law enforcement counterparts in both of these cases.”
United States Attorney Shier; DEA SAC Scott; Colonel Phillip Burnett Jr. Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.
The investigations were conducted by the DEA, KSP, and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Roger West.
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Two Men Plead Guilty to Tampering with Witnesses in a Federal Carjacking CaseRead the Press Release
Two Tulsa men have been convicted in federal court for tampering with witnesses who were slated to testify in court proceedings regarding a carjacking, announced U.S. Attorney Clint Johnson.
Ulysses Semion Washington, 34, and Derius Donovan Ledet, 32, each pleaded guilty to tampering with a witness, victim, and informant by corrupt persuasion. Washington opted to plead guilty as his trial was set to begin Wednesday. Ledet pleaded guilty on July 8, 2022.
“Maintaining the integrity of our justice system is of the utmost importance. The U.S. Attorney’s Office will not tolerate any act that seeks to obstruct our federal court processes,” said U.S. Attorney Clint Johnson.
According to court documents, in late March of 2022, Ledet was being held at the David L. Moss Criminal Justice Center on charges related to an armed carjacking incident. On March 23, 2022, Ledet called Washington several times to discuss ways to get Ledet released from detention. Ledet instructed Washington to “put in some footwork” in an effort to prevent two witnesses from communicating with law enforcement about the case and to prevent their testimony in official court proceedings. Ledet also told Washington to pay off the witnesses with money obtained from selling one of Ledet’s cars.
Days later, Washington offered to pay the witnesses money if they would write affidavits that stated they would not cooperate in the pending carjacking case. Both witnesses were subpoenaed to make appearances in federal proceedings but neither showed.
Even after being indicted and as recently as July 5, 2022, Washington continued his attempts to contact one of the witnesses.
Per the stipulations in his plea agreement, Washington faces eight to 13 years in prison. Ledet faces a maximum of 20 years in prison. A federal judge will consider the U.S. Sentencing Guidelines and other statutory factors when determining appropriate sentences for both men. They will be sentenced at a later date.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Justin G. Bish and Ben Tonkin are prosecuting the case.
Two Men Plead Guilty to Tampering with Witnesses in a Federal Carjacking CaseRead the Press Release
Two Tulsa men have been convicted in federal court for tampering with witnesses who were slated to testify in court proceedings regarding a carjacking, announced U.S. Attorney Clint Johnson.
Ulysses Semion Washington, 34, and Derius Donovan Ledet, 32, each pleaded guilty to tampering with a witness, victim, and informant by corrupt persuasion. Washington opted to plead guilty as his trial was set to begin Wednesday. Ledet pleaded guilty on July 8, 2022.
“Maintaining the integrity of our justice system is of the utmost importance. The U.S. Attorney’s Office will not tolerate any act that seeks to obstruct our federal court processes,” said U.S. Attorney Clint Johnson.
According to court documents, in late March of 2022, Ledet was being held at the David L. Moss Criminal Justice Center on charges related to an armed carjacking incident. On March 23, 2022, Ledet called Washington several times to discuss ways to get Ledet released from detention. Ledet instructed Washington to “put in some footwork” in an effort to prevent two witnesses from communicating with law enforcement about the case and to prevent their testimony in official court proceedings. Ledet also told Washington to pay off the witnesses with money obtained from selling one of Ledet’s cars.
Days later, Washington offered to pay the witnesses money if they would write affidavits that stated they would not cooperate in the pending carjacking case. Both witnesses were subpoenaed to make appearances in federal proceedings but neither showed.
Even after being indicted and as recently as July 5, 2022, Washington continued his attempts to contact one of the witnesses.
Per the stipulations in his plea agreement, Washington faces eight to 13 years in prison. Ledet faces a maximum of 20 years in prison. A federal judge will consider the U.S. Sentencing Guidelines and other statutory factors when determining appropriate sentences for both men. They will be sentenced at a later date.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Justin G. Bish and Ben Tonkin are prosecuting the case.
Two Men Charged with 2002 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, Police Commissioner for the City of New York (“NYPD”), announced the unsealing of an indictment charging RICARDO AYALA, a/k/a “Richie,” and TERRIS OLIVER, a/k/a “T-Bird,” with murder in furtherance of drug trafficking in connection with the murder of Atari Felton on March 27, 2002 in the Bronx, New York. AYALA was arrested yesterday and was presented before U.S. Magistrate Judge Ona T. Wang. OLIVER is still at large. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams said: “We allege that over 20 years ago, Ricardo Ayala and Terris Oliver participated in the murder of Atari Felton, who was just 19 years old. Thanks to the extraordinary partnership of the NYPD and the Special Agents of our office, the defendants are charged in federal court for this decades-old murder. No matter how long it takes, we will tirelessly work to hold murderers accountable for their crimes.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
On March 27, 2002, AYALA and OLIVER planned and carried out the murder of Atari Felton, who was 19 years old. AYALA and OLIVER committed the murder in furtherance of a conspiracy to distribute more than 280 grams of crack cocaine and quantities of cocaine, heroin, and marijuana.
* * *
AYALA, 42, and OLIVER, 40, are each charged with one count of murder in furtherance of drug trafficking, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of twenty years in prison; and one count of murder through the use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison.
Mr. Williams praised the investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the NYPD’s Cold Case Squad. Mr. Williams added that the investigation is continuing.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Mathew Andrews, Frank Balsamello, and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Two Indicted by Federal Grand Jury for Possessing with the Intent to Distribute Cocaine and FentanylRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment today charging Roberto Soto-Mora and Hector Manuel Soto-Alvarez, both of Texas, with conspiring to possess with the intent to distribute and possessing with the intent to distribute cocaine and fentanyl.
According to the indictment, Soto-Mora, 65, and Soto-Alvarez, 25, are both charged with conspiracy to possess with the intent to distribute five kilograms or more of cocaine and 400 grams or more of fentanyl, possession with the intent to distribute five kilograms or more of cocaine, and possession with the intent to distribute 400 grams or more of fentanyl.
They were both previously charged by criminal complaint on July 11, 2022. The complaint alleged that both men traveled together from Texas to Louisville on July 10, 2022. The defendants consented to a search of their vehicle by law enforcement officers in Louisville on that day. In their vehicle officers found 30 kilograms of suspected cocaine and one kilogram of suspected fentanyl. Both men were federally arrested on July 10th.
Soto-Mora and Soto-Alvarez are both scheduled to appear on July 21, 2022, before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky for their arraignments. If convicted, both face a mandatory minimum of 10 years in prison, and a maximum of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and J. Todd Scott, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Division, made the announcement.
The Drug Enforcement Administration, the Louisville Metropolitan Police Department, and the Jeffersontown Police Department are investigating the case.
Assistant U.S. Attorney Mac Shannon is 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.
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Two Florida Medical Study Coordinators Plead Guilty in Connection with Scheme to Falsify Clinical Trial DataRead the Press Release
Two Florida women pleaded guilty today in connection with their participation in a conspiracy to falsify clinical trial data.
According to court documents, Analay Rico, 37, of Fort Lauderdale, and Daylen Diaz, 44, of Miami, worked as study coordinators at a clinical research site called Tellus Clinical Research. As part of their plea agreements, Rico and Diaz admitted that they agreed with others to defraud clients paying for clinical trial work intended to evaluate treatments for various medical conditions, including opioid dependency, irritable bowel syndrome and diabetic nephropathy. Among other things, Rico and Diaz admitted they falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“Clinical trials are the foundation of the drug approval process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work with its law enforcement partners to prosecute those who falsify clinical trial data for personal profit.”
“The public relies on the accuracy of clinical trial data,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Falsifying clinical data endangers the safety of consumers and violates the public’s trust. It is a serious crime that we will continue to vigorously prosecute.”
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (FDA-OCI) Miami Field Office. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
Duniel Tejeda, 36, of Clewiston, Florida, Eduardo Navarro, 53, of Miami, Florida, and Nayade Varona, 51, of Port St. Lucie, Florida, previously pleaded guilty and were sentenced to 30 months in prison, 46 months in prison, and 30 months in prison, respectively, for their roles in the scheme. The trial is set for Sept. 27, in the case of three other defendants, Dr. Martin Valdes, 66, of Coral Gables, Florida, Fidalgis Font, 55, of Miami, and Julio Lopez, 55, of Hialeah, all charged by indictment in connection with Tellus.
FDA-OCI is investigating the case.
Trial Attorneys Lauren M. Elfner, Joshua D. Rothman and Wandaly Fernández García of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida has provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Troy Man Sentenced for Wire FraudRead the Press Release
ALBANY, NEW YORK - John R. Paeglow III, age 65, of Troy, New York, was sentenced today to three years of supervised release, and to perform 100 hours of community service, in connection with a scheme to defraud a commercial finance company that provided receipt factoring services to his former book printing business.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his previously entered guilty plea, Paeglow admitted that, between October and December 2014, he fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company in order to obtain the funds in exchange for the sale of books that, in fact, had not been sold or shipped.
Senior United States District Judge Frederick J. Scullin, Jr. also ordered Paeglow to pay restitution of $220,000 to the victim finance company, and a further $11,410 to reimburse the union that represented the IBT/Hamilton employees whose health care premiums Paeglow was also charged with embezzling.
This case was jointly investigated by U.S. DoL-OIG and the NYSP Financial Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Treatment Clinic Owner Convicted of Unlawfully Distributing OpioidsRead the Press Release
A federal jury convicted a Tennessee physician yesterday in the Middle District of Tennessee for unlawfully distributing opioids from his Smyrna clinic.
According to court documents and evidence presented at trial, Hau T. La, 54, of Brentwood, owned and operated Absolute Medical Care (AMC), which closed in the Spring of 2021. At AMC, La purportedly provided addiction treatment as his primary practice, but nevertheless prescribed opioid pain pills to some of his patients despite red flags for addiction and abuse. AMC, which did not accept health insurance, charged patients $200-$350 cash, credit, or debit, per visit and was only open on Fridays. La rarely spent more than a few minutes with the patients to whom he provided unlawful opioid prescriptions.
La was convicted of 12 counts of unlawful distribution of a controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose. He faces a maximum of 20 years in prison for each of these convictions. La was acquitted on four counts of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for Jan. 5, 2023.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee; Special Agent in Charge Douglas Korneski of FBI Memphis Field Office, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA) Louisville Field Division; Director David Rausch of the Tennessee Bureau of Investigation (TBI); and Special Agent in Charge Tamala E. Miles of the Department of Health and Human Service Office of the Inspector General (HHS-OIG) Atlanta Region made the announcement.
FBI, HHS-OIG, TBI, and DEA investigated the case.
Trial Attorneys Leslie Fisher and Emily Petro of the Criminal Division’s Fraud Section are prosecuting the case.
Three Effingham County Residents Charged with Methamphetamine OffensesRead the Press Release
BENTON, Ill. – Kimberly J. Atkins, 45, of Effingham, Illinois, Tyler R. Schumacher, 36, of
Altamont, Illinois, and Jennifer M. Hazlett, 34, of Altamont, Illinois, were each charged in a
separate federal Indictment with methamphetamine related offenses on Wednesday, July 13, 2022.Atkins was charged in a five-count indictment. Counts 1-4 charge that Atkins distributed
methamphetamine on January 24, 2022, January 26, 2022 (two times), and March 9, 2022. Count 5
charges that on April 11, 2022, Atkins possessed methamphetamine with the intent to distribute it.
All the crimes are alleged to have occurred in Effingham County, Illinois.With respect to Atkins, Counts 1 and 5 each carry penalties of up to 20 years imprisonment, up to a
$1,000,000 fine, and supervised release of not less than 3 years. Counts 2-4 each carry penalties
of a minimum of 5 years up to 40 years imprisonment, up to a $4,000,000 fine, and supervised
release not less than 4 years.Schumacher was charged in a two-count indictment. Count 1 charges that from about 2019, until on
or about June 3, 2022, in Effingham County, within the Southern District of Illinois, Kentucky, and
elsewhere, Schumacher conspired with others to distribute more than 50 grams of methamphetamine.
Count 2 charges that on February 22, 2022, in Effingham County, Schumacher possessed with intent to
distribute more than 5 grams of methamphetamine.With respect to Schumacher, count 1 carries penalties of a minimum of 10 years up to life
imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years. Count 2
carries penalties of a minimum of 5 years up to 40 years imprisonment, up to a $4,000,000 fine, and
supervised release not less than 4 years.Hazlett was charged in a two-count indictment. Count 1 charges that on March 23, 2022, in
Effingham County, Hazlett distributed more than 50 grams of methamphetamine. Count 2 charges that
on March 30, 3022, in Effingham County, Hazlett distributed more than 5 grams of
methamphetamine.With respect to Hazlett, count 1 carries penalties of a minimum of 10 years up to life
imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years. Count 2
carries penalties of a minimum of 5 years up to 40 years imprisonment, up to a $4,000,000 fine, and
supervised release not less than 4 years.An indictment is merely a formal charge against a defendant. Under the law, the defendant is
presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the
satisfaction of a jury.The investigation was conducted by the Effingham County Sheriff's Department, the Effingham City
Police Department, and the Southeastern Illinois Drug Task Force. Assistance was also
provided by the Effingham County State’s Attorney’s Office.Third Ohio Gambling Business Owner Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
A Florida man pleaded guilty today to conspiring to defraud the IRS in connection with his ownership and operation of illegal gambling businesses in Canton.
According to court documents and statements made in court, from 2009 through 2018, Larry Dayton, 46, along with Jason Kachner, Rebecca Kachner, and other co-conspirators, owned and operated two illegal gambling businesses, Skilled Shamrock and Redemption. Dayton admitted to conspiring with others to defraud the IRS by filing false tax returns that omitted the cash income he received from the gambling businesses and by using a nominee to conceal his ownership. From 2012 through 2017, Dayton did not report more than $2 million in income he received from Skilled Shamrock and Redemption. Dayton and others also created a false “purchase agreement” where he purported to sell the assets of the gambling business to a nominee owner’s entity.
A sentencing hearing for Dayton will be scheduled at a later date. He faces a maximum penalty of five years in prison for conspiring to defraud the IRS. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On July 14, Jason and Rebecca Kachner pleaded guilty for participating in the tax conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation, the U.S. Department of the Treasury, Office of the Inspector General, the Ohio Casino Control Commission, and the Ohio Casino Control Commission are investigating the case. Homeland Security Investigations provided substantial assistance.
Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio are prosecuting the case.
Tampa Man Arrested for Fraudulently Using Federal GSA Smartpay Account NumbersRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest and indictment of Darius Lopez (27, Tampa) charging him with one count of access device fraud and one count of aggravated identity theft. If convicted, Lopez faces up to 10 years in federal prison for the fraud count and a consecutive 2 years’ imprisonment for the aggravated identity theft count.
According to court records, on April 13, 2021, Lopez purchased more than $27,0000 worth of landscaping equipment from a tractor dealer in Citrus County. During the transactions, Lopez used the unauthorized account numbers of four Department of Agriculture General Services Administration (GSA) Smartpay charge cards. The account numbers were fraudulently embossed on PayPal and 7-Eleven prepaid debit cards. GSA SmartPay provides services to more than 560 Federal agencies, organizations, and Native American tribal governments. Its payments solutions enable authorized government employees to make purchases on behalf of the federal government in support of their agency or organization’s mission.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the General Services Administration - Office of Inspector General with assistance from the following agencies and financial institutions: U.S. General Services Administration - Office of Inspector General (Southeast and Caribbean Regional Investigations Office), U.S. Department of Agriculture - Office of Inspector General (Southeast Region), Amtrak - Office of Inspector General (Central Region), U.S. Secret Service Orlando Cyber Fraud Task Force, Citrus County Sheriff's Office, U.S. Bank, Synchrony Bank Special Investigations Team, and Morgan Stanley Corporate Security. It is being prosecuted by Assistant United States Attorneys Hannah Nowalk and Tyrie K. Boyer.
Syracuse Entrepreneur Sentenced to Prison for Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Dean Whittles, age 61, formerly of Syracuse, was sentenced today in federal court in Utica to 2 years in prison after previously pleading guilty to one felony count of willfully failing to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.
From 2016 through 2019, Whittles was the sole owner of multiple businesses in and around Syracuse, New York: DJ’s on the Hill and DJ’s on the Boulevard; the 317 Corporation (restaurant); and Dejon’s Hair Design, with salons in Cicero, Westvale and Skaneateles. Whittles no longer owns or operates any of the businesses at issue and recently moved to Tucson, Arizona.
In pleading guilty, Whittles admitted that he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes, even though he withheld such taxes from his employees’ paychecks. Instead, he used the money withheld from employees to pay for business and personal expenses. As revealed at sentencing, his personal expenditures with the money he withheld from the IRS included three luxury vehicles, a condominium in Arizona, and several international vacations. In total, Whittles failed to pay approximately $617,843 in payroll taxes to the Internal Revenue Service between 2016 and 2019.
As part of the sentence, United States District Judge David N. Hurd ordered Whittles to serve 3 years on supervised release after he completes his two-year term of imprisonment; to pay restitution to the IRS in the amount of $617,843; and to pay a fine of $10,000.
This case was investigated by IRS-CI, and it was prosecuted by Assistant U.S. Attorney Michael F. Perry and former Assistant U.S. Attorney Andrew Beaty.
Suburban Chicago Man Sentenced to More Than 13 Years in Federal Prison on Gun and Drug ChargesRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to more than 13 years in federal prison for illegally possessing multiple firearms and dealing heroin and crack cocaine.
BRIAN STAFFORD, 42, illegally possessed two loaded handguns and drugs in his vehicle and residence in Bellwood, Ill., on Nov. 2, 2016. A day earlier, Stafford sold 101 grams of heroin to an individual who, unbeknownst to Stafford, was cooperating with law enforcement.
A federal jury in November found Stafford guilty of one count of possessing heroin and crack cocaine with the intent to distribute, one count of illegal possession of firearms by a previously convicted felon, and one count of possessing firearms in furtherance of drug-trafficking activities.
A separate federal jury in 2019 convicted Stafford of illegally possessing three assault rifles. All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.
U.S. District Judge Robert W. Gettleman on Tuesday sentenced Stafford to 13 years and four months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and the Bolingbrook, Ill., Police Department. The government was represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Alejandro Ortega.