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Wednesday 20 July 2022
Spencer Man Pleads Guilty to Meth Conspiracy ChargeRead the Press Release
Kenneth Alan Block, age 35, from Spencer, Iowa, pled guilty July 19, 2022, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Block admitted that from February 2021 through September 2021, he and others distributed at least 2.5 kilograms of methamphetamine in the Spencer area. In addition, on September 29, 2021, Block was found with approximately 170 grams of ice methamphetamine after giving consent to search his car.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Block remains in custody of the United States Marshal pending sentencing. Block faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Spencer, Iowa Police Department and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4020. Follow us on Twitter @USAO_NDIA.
Sparta Woman Sentenced to 5 1/2 Years in Prison for Concealing Material Support Intended for A Foreign Terrorist OrganizationRead the Press Release
NASHVILLE – A Sparta, Tennessee, woman was sentenced in U.S. District Court on Friday, to 66 months in prison to be followed by a term of supervised release of 15 years, for concealing material support and resources intended to be provided to a Foreign Terrorist Organization, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Georgianna A.M. Giampietro, 37, was indicted by a federal grand jury in August 2019, on charges of attempting to provide material support to a designated Foreign Terrorist Organization. A superseding Information filed in January 2022 charged Giampietro with concealment of material support and resources intended to be provided to a Foreign Terrorist Organization. She pleaded guilty to the charge in January.
According to court documents, in September 2018, Giampietro had conversations with an undercover agent who expressed interest in travelling to Syria to join Hayat Tahrir Al-Sham (HTS), a designated Foreign Terrorist Organization. The undercover agent told Giampietro that her husband swore an oath of allegiance to HTS and that he intended to fight on behalf of HTS.
Giampietro initially provided instruction and advice to the undercover agent on how to travel to Syria in order to avoid detection by law enforcement. That instruction and advice included actions that the undercover agent and her husband should undertake before making the trip, like severing ties with other persons 6-8 months in advance; acquiring new phones before they traveled; and considering traveling through Turkey prior to entering Syria.
In subsequent conversations with the undercover agent, Giampietro offered to communicate with her contacts on their behalf to assist them in safely traveling to Syria to join HTS. Giampietro engaged in a series of communications with an individual whom she knew could assist the undercover and her husband for such purpose. At one point after communicating with her contact, who claimed that there was presently no jihad in Syria, Giampietro asked the undercover agent if she and her husband had considered traveling to Afghanistan since there was still fighting there.
Giampietro later provided the undercover agent with her contact’s information to assist her and her husband in their travel to Syria. When Giampietro provided that contact information to the undercover agent, Giampietro knew that HTS was a designated terrorist organization and believed that the undercover agent and her husband intended to travel to Syria to work under the direction and control of HTS, and also believed that the contact would substantially assist them in this effort. In addition, Giampietro intended that the undercover agent and her husband would provide funds to that person, who would in turn provide funds to HTS, thereby providing material support to HTS disguised as a charitable contribution.
Giampietro utilized an end-to-end encrypted social media platform to communicate with the undercover and with her contact, and in some instances utilized self-destruct timers within her communications so that those communications would automatically delete, without the possibility of recovery, after a specified time.
This case was investigated by the FBI and the Joint Terrorism Task Force. Assistant U.S. Attorneys Philip H. Wehby, Ben Schrader, and Kathryn Risinger of the Middle District of Tennessee, and Trial Attorney Jennifer Levy of the Department of Justice’s National Security Division, prosecuted the case.
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Somerset County Man Sentenced to 46 Months in Prison for Orchestrating COVID-19 FraudRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced to 46 months in prison for orchestrating a $2 million COVID-19 fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Guaravjit “Raj” Singh, 27, of Montgomery, New Jersey, previously pleaded guilty before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud. Judge Sheridan imposed the sentence on July 20, 2021, in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to defraud and to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain personal protective equipment (PPE) and then stealing the money and not providing the PPE to the victims as promised.
Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million for approximately 1.5 million medical gowns, which ultimately were to be sourced to the city of New York amid the COVID-19 pandemic. The victims wired Singh, though his company GJS Solutions LLC, $712,500, representing a 10 percent initial deposit for the medical gowns. After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses.
In addition to the prison term, Judge Sheridan sentenced Singh to three years of supervised release.
U.S. Attorney Sellinger credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Chief of the General Crimes Unit in Newark.
Smyrna Treatment Clinic Owner Convicted of Unlawfully Distributing OpioidsRead the Press Release
NASHVILLE – A federal jury in Nashville convicted a Smyrna, Tennessee, physician yesterday 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. The jury acquitted him of four counts.
La faces a maximum of 20 years in prison on each count. Sentencing is scheduled for January 5, 2023.
U.S. Attorney Mark H. Wildasin; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Douglas Korneski of the Federal Bureau of Investigation Memphis Field Office, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration Louisville Field Division; Director David Rausch of the Tennessee Bureau of Investigation; and Special Agent in Charge Tamala E. Miles of the Department of Health and Human Service Office of the Inspector General 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.
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Sioux Falls Man Facing Multiple Firearm Charges After Sioux Falls RobberiesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for two counts of interference with commerce by threats and violence and two counts of brandishing a firearm during a federal crime of violence.
Samuel Oreoluwa Roberts, age 23, was indicted on these charges July 6, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 11, 2022, and pled not guilty to the Indictment.
The maximum penalty for the counts involving interference with commerce is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. The penalty for each count of brandishing a firearm during a crime of violence is a mandatory seven years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about March 29, 2022, in Sioux Falls, Roberts unlawfully obstructed, delayed, and affected commerce and the movement of articles and commodities in such commerce, by robbery when he unlawfully took and obtained cash from the Get-n-Go, against the will of the employees by means of actual and threatened force, violence, and fear of injury immediate and future to their person when he brandished a firearm during this crime of violence, demanded money, and forcibly took the money. Then on or about March 30, 2022, in Sioux Falls, Roberts unlawfully obstructed, delayed, and affected commerce and the movement of articles and commodities in such commerce, by robbery when he unlawfully took and obtained cash from the Kum and Go, against the will of the employees by means of actual and threatened force, violence, and fear of injury immediate and future to their person when he brandished a firearm during this crime of violence, demanded money, and forcibly took the money.
These charges are merely accusations and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Elizabeth A. Ebert is prosecuting the case.
Roberts was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 13, 2022.
Second Defendant Pleads Guilty to Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and a PPP Loan Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to conspiring with others in separate fraud schemes to defraud the IRS and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Seir Robinson Havana, 46, was the Vice President/Director and Chief Executive Officer of Mana Tax Services, a tax preparation business in the Los Angeles area. Havana engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from May of 2019 through November 2021, Havana conspired with Quin Ngoc Rudin, 45, of California, and others to prepare and file with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes. The false tax returns reported fabricated business and personal losses to generate refunds the athletes were not entitled to receive. Havana and his co-conspirators represented to the professional athletes that Quin Rudin had specialized knowledge their prior tax professionals lacked and that Mana Tax could obtain large refunds for the athletes. The co-conspirators also told the professional athletes that Mana Tax could amend prior year tax returns to correct purported errors made by the athletes’ previous accountants to get additional refunds they were not entitled to receive. Mana Tax then charged the athletes a fee of 30% of the resulting refund. To conceal the payments, Havana directed the athletes to send the fee to shell entities he controlled. In all, Havana collected more than $3.1 million in fees from the professional athletes.
From April of 2020 through December of 2021, Havana and his co-conspirators also used Mana Tax to apply for PPP on behalf of a number of small businesses, shell entities controlled by the co-conspirators themselves with few or no employees, and business entities controlled by others. To obtain the PPP loans to which the applicants were not entitled, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the PPP loan applications and submitted fabricated tax returns in support of the applications. Some of the business owners never saw their loan applications before Mana Tax filed them, and some of the businesses were not eligible for PPP loans because they had no payroll expenses or had not been in operation during the relevant time period.
In exchange for processing the applications, Mana Tax charged a fee of 30% of the value of the loan obtained. To conceal this fee, Havana and his co-conspirators directed the businesses to pay the fee through cashier’s checks and to falsely note on the memo lines of the checks that the funds were related to payroll. The cashier’s checks were deposited into accounts controlled by Havana, who then transferred the funds to other bank accounts to further hide the source of the funds.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by Havana and others. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses to the government of more than $25 million.
Havana pleaded guilty to one count of conspiracy to defraud the United States and to commit wire fraud, as well as to one count of money laundering. He is scheduled to be sentenced on November 9. He faces a maximum penalty of 5 years in prison for the conspiracy charge and 20 years in prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 13, Rudin pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud, and wire fraud. His sentencing is scheduled for September 14.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen, and Assistant Chief of the Justice Department’s Tax Division David Zisserson prosecuted the case.
The United States Attorney’s Office for the Central District of California provided assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-116.
Second Defendant Pleads Guilty in Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and Fraudulent PPP Loan SchemeRead the Press Release
A California man pleaded guilty today to conspiring with others in fraud schemes to defraud the IRS and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Seir Robinson Havana, 46, was the Vice President/Director and Chief Executive Officer of Mana Tax Services, a tax preparation business in the Los Angeles area. Havana engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from May 2019 through November 2021, Havana conspired with Quin Ngoc Rudin and others to prepare and file with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes. The false tax returns reported fabricated business and personal losses to generate refunds the athletes were not entitled to receive. Havana and his co-conspirators represented to the professional athletes that Quin Rudin had specialized knowledge their prior tax professionals lacked and that Mana Tax could obtain large refunds for the athletes. The co-conspirators also told the professional athletes that Mana Tax could amend prior year tax returns to correct purported errors made by the athletes’ previous accountants to get additional refunds they were not entitled to receive. Mana Tax then charged the athletes a fee of 30% of the resulting refund. To conceal the payments, Havana directed the athletes to send the fee to shell entities he controlled. In all, Havana collected more than $3.1 million in fees from the professional athletes.
From April 2020 through December 2021, Havana and his co-conspirators also used Mana Tax to apply for PPP loans on behalf of a number of small businesses, shell entities with few or no employees controlled by the co-conspirators, and business entities controlled by others. The co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the PPP loan applications and submitted fabricated tax returns in support of the applications. Some of the business owners never saw their loan applications before Mana Tax filed them, and some of the businesses were not eligible for PPP loans because they had no payroll expenses or had not been in operation during the relevant time period.
In exchange for processing the applications, Mana Tax charged a fee of 30% of the value of the loan received. To conceal this fee, Havana and his co-conspirators directed the businesses to pay the fee through cashier’s checks and to falsely note on the memo lines of the checks that the funds were related to payroll. The cashier’s checks were deposited into accounts controlled by Havana, who then transferred the funds to other bank accounts to further hide the source of the funds.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by Havana and others. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $25 million.
Havana is scheduled to be sentenced on Nov. 9. He faces a maximum penalty of five years in prison for the conspiracy charges and 20 years in prison for money laundering. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 13, Rudin pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud and wire fraud. His sentencing is scheduled for Sept. 14.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division, and Special Agent in Charge Darrell J. Waldon of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement.
The U.S. Attorney’s Office for the Central District of California provided assistance with the investigation.
Assistant Chief David Zisserson of the Tax Division and Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen are prosecuting the case.
Russell Lucius Laffitte Indicted on Federal Conspiracy, Wire Fraud, Bank Fraud, and Misapplication of Bank Funds ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA – A federal grand jury returned a five-count indictment charging Russell Lucius Laffitte with conspiracy to commit wire fraud and bank fraud, bank fraud, wire fraud, and misapplication of bank funds.
The indictment alleges that Laffitte conspired with a bank customer to commit wire fraud and bank fraud. The indictment alleges that during the conspiracy, Laffitte served as an employee, officer, or director of the Palmetto State Bank (“PSB”), and the bank customer worked as a personal injury attorney at a law firm in Hampton, South Carolina. Laffitte and the bank customer engaged in a scheme to defraud the bank customer’s personal injury clients under materially false and fraudulent pretenses and by making materially false representations. Laffitte and the bank customer conspired to obtain money from the bank customer’s personal injury clients and the law firm, money which was held at PSB.
Specifically, the indictment alleges that Laffitte - while serving as conservator for the bank customer’s personal injury clients - extended $355,000 in personal loans to himself and $990,000 in personal loans to the bank customer from funds held at PSB and belonging to the personal injury clients. Laffitte knew that the funds loaned to the bank customer were used to cover hundreds of thousands of dollars in overdraft on the bank customer’s personal account. The indictment further alleges that Laffitte knew that the bank customer used funds stolen from other personal injury clients to pay back the loans. Laffitte, as conservator or personal representative for the personal injury clients, received disbursement checks from the law firm, then negotiated and distributed the funds according to and at the bank customer’s direction. At the bank customer’s direction, Laffitte transferred the disbursed settlement funds into bank money orders, cash, and other wire transfers. The indictment alleges that Laffitte collected $391,781.07 in fees for serving as conservator and personal representative.
The indictment further alleges that on two occasions, Laffitte, as an officer and director of PSB, willfully misapplied bank funds. Specifically, on October 28, 2021, Laffitte paid the law firm $680,000 without notice to or consent from PSB, knowing that he had fraudulently transferred the money to the bank customer. Last, the indictment alleges that on July 15, 2021, Laffitte willfully misapplied $750,000 of bank funds by extending a commercial loan to the bank customer knowing that the loan was essentially unsecured and that the loan proceeds would be and were used to pay an attorney and to cover hundreds of thousands of dollars in overdraft on the bank customer’s personal account. Laffitte faces a maximum term of imprisonment of 30 years on all charges.
The case was investigated by the Federal Bureau of Investigation (“FBI”), South Carolina Law Enforcement Division (“SLED”), and South Carolina Attorney General’s Office. Assistant U.S. Attorney Emily Limehouse is prosecuting this case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that the Defendant is presumed innocent unless and until proven guilty.
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laffitte_indictment_.pdfRomanian National Sentenced to Prison for ATM Skimming FraudRead the Press Release
LAS VEGAS – A Romanian citizen — who entered the U.S. illegally — was sentenced today by U.S. District Judge Andrew P. Gordon to 42 months in prison followed by three years of supervised release for engaging in ATM skimming fraud scheme.
Marian Poenaru (21) pleaded guilty in April 2022 to one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft.
According to court documents, Poenaru and his co-conspirators installed and used skimmer devices and pinhole cameras at ATMs to capture users’ account information and PINs. The conspirators then re-encoded gift cards with the stolen bank information so they could make cash withdraws and purchases for their own personal benefit.
On April 25, 2021, Las Vegas Metropolitan Police Department officers arrested Poenaru. A search of his apartment uncovered more than 500 cards that were re-encoded. At least 300 of the counterfeit cards recovered were re-encoded with account information of debit cards issued by the Nevada Department of Employment, Training and Rehabilitation (DETR), which were used to disburse unemployment insurance benefits during the COVID-19 pandemic. During a search of his apartment, law enforcement found a lab used both to create ATM skimming equipment as well as to manufacture counterfeit cards. Additionally, Poenaru admitted that his fraudulent activities in Las Vegas were committed after he and his co-conspirators relocated their fraudulent scheme from another state to evade law enforcement; evidence shows that from 2017 to 2021, Poenaru engaged in ATM skimming fraud across the country, including in Maryland, Virginia, Indiana, Michigan, and Nevada. Poenaru is subject to deportation after the completion of his criminal sentence.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent In Charge Karon Ransom for the U.S. Secret Service made the announcement.
This case was investigated by the U.S. Secret Service and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jim Fang prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Roane County Man Pleads Guilty After Pipe Bomb FoundRead the Press Release
CHARLESTON, W.Va. – A Roane County man pleaded guilty today to possessing an unregistered destructive device, after law enforcement officers found a pipe bomb at his residence.
According to court documents and statements made in court, on December 24, 2020, law enforcement officers executed a search warrant at the Spencer residence of Joseph David Bailey, 51. Officers found the completed pipe bomb as well as five unfinished pipe bombs in various stages of completion. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that the completed pipe bomb was a destructive device and that Bailey did not register it with the National Firearms Registration and Transfer Record.
Bailey is scheduled to be sentenced on November 16, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the ATF.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-249.
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Registered Sex Offender Convicted of Attempting to Sexually Exploit Minors and Distributing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Davis Burgos-Collazo was convicted by a jury of attempting to sexually exploit five children, two counts of distributing child pornography, accessing child pornography with intent to view it, and committing a felony sexual offense involving minors while being a registered sex offender. The verdict was returned after a one-week trial before United States District Judge Pamela K. Chen. When sentenced, the defendant faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The defendant, a registered sex offender who deviously portrayed himself as a modeling scout to lure victims, repeatedly victimized minors without regard for the profound harm he was causing them. With today’s verdict, he now faces the consequences necessary to protect the community from this serial predator,” stated United States Attorney Peace. “I urge parents and caregivers to remain vigilant about the importance of educating our children about the dangers of communicating online with strangers.”
Mr. Peace thanked the FBI-NYPD Child Exploitation and Human Trafficking Task Force for their work on the case.
“Burgos’s conviction illustrates how vulnerable our children are to sexual predators. The heartbreaking pleas from one of his victims to be left alone should shock parents and guardians. Please talk with children about the dangers they can face online, and tell them they can ask for help if they face a similar situation,” stated FBI Assistant Director-in-Charge Driscoll.
As proven at trial, in 2020, Burgos-Collazo used at least 26 Instagram accounts to attempt to sexually exploit children as young as nine-years-old. The defendant enticed the victims by pretending to be a modeling scout and by using accounts with names like “future models” and “preteen beauty pics.” In addition, after the defendant had coerced one victim into performing live sex acts for him on Instagram and she pleaded with him to leave her alone, he threatened to post a naked picture of the 10-year-old child online for her friends to see. The FBI recovered over 100 photos and videos of child pornography on the defendant’s phone. Burgos committed the crimes while he was a registered sex offender. In March 2006, he was convicted of raping a seven-year-old minor and attempting to sexually assault two other minors, ages 9 and 11.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being prosecuted by Assistant United States Attorneys Rachel A. Bennek and John O. Enright, with assistance from paralegal specialists Anna November and Shivani Parshad.
The Defendant:
DAVIS BURGOS-COLLAZO
Age: 43
Jamaica, New YorkE.D.N.Y. Docket No. 20-CR-492 (PKC)
Plymouth Crack Dealer and Armed Robber Sentenced to 11 Years in PrisonRead the Press Release
ELIZABETH CITY, N.C. – Cortha Matthew McNair, 44, of Plymouth was sentenced today to 132 months in prison for dealing crack cocaine and robbing a gas station in 2020. McNair pled guilty to distribution of cocaine base (crack) and interference with commerce by robbery on April 13, 2022.
According to court documents and other information presented in court, McNair sold crack cocaine to a confidential informant on four occasions between June 19 and July 22, 2020, in Plymouth. On July 23, 2020, state and local law enforcement agents executed a search warrant at McNair’s residence, where they recovered an additional 25 grams of crack cocaine, digital scales, and packaging materials.
On November 1, 2020, the Greenville Police Department responded to an armed robbery at the Oasis gas station, located at 2130 SE Greenville, Blvd. in Greenville. During the robbery McNair displayed a handgun and demanded money from the register and the back office. Surveillance footage from inside the store captured the robbery. McNair then fled the scene in a Honda sedan with a noticeable dent on the rear passenger door. Upon reviewing footage from the Greenville city street cameras, law enforcement tracked the vehicle to a nearby apartment complex. After observing McNair operating the Honda sedan, Greenville Police stopped the car and detained McNair. Officers searched the vehicle and recovered clothing that matched the suspect’s clothing from the robbery, a black face mask, and a loaded .9mm pistol.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. the Federal Bureau of Investigation, the North Carolina Bureau of Alcohol Law Enforcement, the Washington County Sheriff’s Office, the Plymouth Police Department, and Greenville Police Department investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-27-BO.
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Physician Assistant Is Indicted for Role in $10 Million Medicare Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A physician assistant is facing federal charges for his role in a genetic testing scheme that resulted in the submission of more than $10 million in fraudulent claims to the Medicare program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 34, of Monroe, N.C. is charged with one count of health care fraud and six counts of making false statements relating to health care matters.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, during 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. During the relevant time frame, Joyner allegedly signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for hundreds of Medicare beneficiaries residing in North Carolina.
The indictment alleges that Joyner’s prescriptions resulted in the submission of fraudulent reimbursement claims to the Medicare program in excess of $10 million. As alleged in the indictment, Joyner had never met, seen or treated these beneficiaries, and had only had brief telephone conversations with them, or no interactions with them whatsoever.
The indictment further alleges that Joyner falsified medical records in connection with these prescriptions to conceal that he was not the treating physician and that he did not conduct medical evaluations or examinations, and that he falsely certified that the genetic tests were medically necessary. According to allegations in the indictment, contrary to his claims, Joyner had neither pre-existing provider-patient treatment relationships with, nor plans to pursue further care for, the Medicare beneficiaries. Joyner allegedly did not perform medical evaluations or examinations and had little to no interaction with the beneficiaries before prescribing the genetic tests. Instead, Joyner allegedly received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12—and later $15—for each purported consultation that he performed.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.
The investigation was handled by the FBI and HHS-OIG.
Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Pharmacist Pleads Guilty to Misappropriating and Adulterating Prescription Pain MedicationRead the Press Release
MINNEAPOLIS – A Minneapolis woman has pleaded guilty to misappropriating and adulterating prescription morphine while working as a pharmacist, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 30, 2019, Jennifer Lee Draheim, 42, a pharmacist at Coburn’s Pharmacy in Ramsey, removed a bottle of morphine sulfate from the Scheduled Drug Cabinet and poured a quantity of the morphine from the stock bottle into a small container for her own personal use. She added water to the bottle to replace the morphine she took, thereby reducing the drug’s quality and strength. Draheim returned the diluted bottle of morphine to the Scheduled Drug Cabinet, where it was held in the pharmacy’s inventory for the purpose of filling customer prescriptions.
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly adulterate medicines put patients’ health at risk,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort.”
“The diversion of pharmaceuticals is a dangerous path that can lead to addiction, overdose and even death,” DEA Omaha Division Special Agent in Charge Justin C. King said. “We take diversion seriously as it impacts the person misusing the medication and also those for whom the prescription was intended. In this case, Jennifer Draheim’s actions put her life in danger and also affected those who were in need of morphine sulfate but instead received a tainted, watered-down medication. We applaud Coborn’s Inc., for alerting authorities to the diversion and our partners in the FDA for their work on this investigation.”
Draheim pleaded guilty yesterday before U.S. District Judge Nancy E. Brasel to one count of adulteration of a drug. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Food and Drug Administration and the U.S. Drug Enforcement Administration.
Assistant U.S. Attorney Lauren O. Roso is prosecuting the case.
Pennsylvania Man Sentenced to Prison for Sex Offense Involving MinorRead the Press Release
CHARLESTON, W.Va. – James Russell Loar, Jr., 40, of Washington, Pennsylvania, was sentenced today to seven years and three months in prison, to be followed by 15 years of supervised release, for traveling in interstate commerce to engage in sexual activity with a minor. Loar must also register as a sex offender.
According to court documents and statements made in court, on May 27, 2021, Loar traveled from Washington, Pennsylvania, to Clay County, West Virginia, to have sex with a 14-year-old minor. Loar had been communicating with the minor via Snapchat for nearly a year, and his communications with her were sexual in nature. The minor’s parents learned about his communications and informed him of her age, but his communications continued. When Loar traveled to Clay County, he met with the minor and invited her into his truck. The minor’s mother happened to be driving by and intervened. After he was subsequently arrested, Loar admitted to sending a pornographic picture to the minor as well as telling her that he wanted to perform sex acts with her.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-141.
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Pee Dee Man Sentenced to Eight Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
FLORENCE, SOUTH CAROLINA — James Edwards Phillips, 64, of McBee, was sentenced to 8 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the Court showed that, on the afternoon of December 6, 2019, a Deputy with Chesterfield County Sheriff’s Office responded to a report of an argument at a residence in Hartsville. Upon arrival, the Deputy saw Mr. Phillips holding a firearm and advancing towards another individual. The Deputy detained Phillips and recovered a loaded .22 caliber revolver from Phillips’s person. At the time of the incident, Phillips was prohibited from possessing a firearm or ammunition due to his prior federal and state felony convictions.
Chief United States District Judge R. Bryan Harwell sentenced Phillips to 96 months imprisonment, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Chesterfield County Sheriff’s Office, Hartsville Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Omaha Man Sentenced on Gun ChargesRead the Press Release
Acting United States Attorney Steven A. Russell announced today that Steven D. Crawford, age 39, of Omaha, was sentenced today by United States District Judge Brian C. Buescher to a sentence of 180 months imprisonment for being a Felon in Possession of a Firearm and Carrying and Using a Firearm During and In Relation to a Drug Trafficking Crime. There is no parole in the federal system. Upon his release, Crawford will serve a 4 year term of Supervised Release.
On May 26, 2020, a confidential source advised law enforcement that he/she was able to purchase ecstasy from co-Defendant Joi Y. Bradley. The confidential source contacted Bradley and agreed to meet Bradley at Big Jims located at 3024 Ames Ave. Bradley was the passenger seat of a Chevy Tahoe and Crawford was the driver. The confidential source purchased 10 pills of purported ecstasy from Defendant in exchange for $40. After this controlled purchase, the Omaha Police Department conducted continuous surveillance of the Tahoe before conducting a traffic stop. During a search of the vehicle, officers found a loaded HiPoint 9 mm handgun with an extended magazine containing 16 live rounds next to where Crawford had been sitting.
The 10 purported ecstasy pills were submitted to the Nebraska Public Service Laboratory and were determined to be eutylone and caffeine. Eutylone is a positional isomer of pentylone, a schedule I controlled substance.
A search warrant was obtained for Defendant’s DNA which was then compared against DNA swabs that had been taken from the firearm by the UNMC Human DNA Laboratory. The swab from the firearm generated a mixture of two individuals and Crawford could not be excluded as a contributor.
Firearm examiners from ATF examined the firearm and found that the firearm was not manufactured in the state of Nebraska and would have had to have travelled in interstate commerce to be located in Nebraska. Additionally, the ATF Trace Summary found that the gun had been originally purchased in the state of Texas.
Crawford was a convicted felon having previously been convicted of Assault Family Violence Impeding Breath/Circulation in Texas and Possession with Intent to Distribute a Controlled Substance- Less than 10 Grams of Crack Cocaine in Nebraska, and Aiding and Abetting Assault in the First Degree in Nebraska.
Bradley was convicted of Possession with Intent to Distribute Eutylone and was previously sentenced to a term of 5 years probation.
This case was investigated by the Omaha Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Omaha Man Sentenced for Transporting Minor for ProstitutionRead the Press Release
Acting United States Attorney Steven A. Russell announced that Jonte L. Fuller, age 35, of Omaha, was sentenced today by the Honorable Brian C. Buescher, United States District Judge, to 120 months imprisonment, to be followed by 5 years of supervised release. Fuller pled guilty in April 2022 to Transporting a Minor to Engage in Prostitution.
In about September 2020, a 16-year-old who had run from home met Fuller and his co-defendant Phillip Gonzales in Omaha. Gonzales took photos of the minor and placed them in advertisements he posted on a website used to advertise commercial sex, using an account under Fuller’s name and email address. Gonzales initially did not have a car, so Fuller drove the minor to “out calls” where s/he engaged in commercial sex with customers. The minor provided a portion of the money s/he received from such out calls to Fuller.
On or about October 2, 2020, Fuller drove Gonzales, the minor and an adult from Iowa to a residence in Bellevue, Nebraska for an out call. At the residence, both the minor and the adult engaged in commercial sex with a customer.
Gonzales pled guilty in in February 2022 to Producing Visual Depiction of Minor Engaging in Sexually Explicit Conduct and was sentenced on May 25, 2022 to 180 months imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
New York Man Sentenced to Five Years in Prison for Role in $4 Million Extortion SchemeRead the Press Release
WASHINGTON – Robert Evans, 35, of New York, N.Y., was sentenced today to five years in prison for his role in a wide-ranging fraud, extortion, and money laundering scheme, which involved one of his brothers pretending to be a New York mobster to get a Maryland man to embezzle more than $4 million from his Washington, D.C., employer. Evans is the fourth defendant to be sentenced in the case.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Evans pleaded guilty in April 2021, in the U.S. District Court for the District of Columbia, to interference with interstate commerce by extortion. He was sentenced by the Honorable Emmet G. Sullivan. In addition to the prison term, Judge Sullivan ordered that Evans serve three years of supervised release. Consistent with his plea agreement, Evans also must pay $4,217,542 in restitution and $777,955 in a forfeiture money judgment.
In April 2018, a federal grand jury indicted Evans, his common-law ex-wife Gina Russell, his brothers Tony John Evans and Corry Blue Evans, and his parents Archie Kaslov and Candy Evans, on various charges.
According to the government’s evidence, as part of the scheme, a New York woman conspired with Robert Evans, Russell, Tony John Evans, Corry Blue Evans, and Kaslov to extort money and gold bars from a Maryland man, which caused the man to embezzle funds from his employer between January 2017 and March 2017. The man converted embezzled funds to cash and gold bars. He delivered the money and gold bars to New York drop-off locations, including a hotel room, believing the funds were going to mobsters to whom the New York woman owed money. At one point during the scheme, Tony John Evans spoke to the man on the phone and threatened him by asking if he needed to remind the man where his kids went to school and where the man lived.
In reality, all of the funds that the man embezzled and delivered to New York went to members of the Evans-Kaslov family. Among other things, Robert Evans arranged the logistics of a $500,000 cash payment, which involved renting hotel rooms, retrieving the cash after the Maryland man delivered it, and taking the cash to a co-conspirator’s residence.
Like Robert Evans, Tony John Evans and Russell pleaded guilty to interference with interstate commerce by extortion. Tony John Evans, 33, was sentenced to five years in prison. Russell, also 33, has not yet been sentenced.
Kaslov, 55, pleaded guilty to conspiracy to commit wire fraud, and admitted to driving family members around New York with cash obtained from the scheme, selling gold bars for cash, and traveling to Texas to purchase a Rolls Royce Phantom Drophead for more than $300,000 in cash. In April 2022, Judge Sullivan sentenced Kaslov to 30 months in prison.
Candy Evans, 53, pleaded guilty to tampering with a witness by corrupt persuasion or misleading conduct. As part of her guilty plea, she admitted that once the FBI launched its investigation, she counseled the New York woman whom the Maryland man met on Backpage to lie to people, including the FBI. In November 2017, she also instructed Russell to lie to the FBI. In April 2022, Judge Sullivan sentenced her to a year and a day in prison.
Charges remain outstanding against Corry Blue Evans, 29, who has pleaded not guilty.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office Criminal Division. They expressed appreciation for assistance provided by the U.S. Department of Justice Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Arvind Lal, who assisted with forfeiture issues, Assistant U.S. Attorneys Oliver McDaniel and Melissa Goforth Koenig, who assisted with restraining funds that Candy Evans attempted to dissipate between the date of her guilty plea and sentencing, Forensic Accountant Bryan Snitselaar, and former Paralegal Specialists Jessica Mundi, Brittany Phillips, Stephanie Frijas, Kristy Penny, and Joshua Fein.
Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman and former Assistant U.S. Attorney David Kent for investigating and prosecuting the case.
Mission Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on July 19, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Anthony Kitteaux, Sr., age 29, was sentenced to 13 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kitteaux was indicted by a federal grand jury on March 8, 2022. He pled guilty on May 5, 2022.
The conviction stemmed from an incident that occurred in the early morning hours of January 24, 2022, at a residence in Todd County, South Dakota. On that date, a Rosebud Sioux Tribe Law Enforcement Services officer responded to a report that Kitteaux was assaulting his girlfriend. When the officer approached the residence and attempted to place Kitteaux under arrest, Kitteaux refused commands and attempted to close the front door of the residence. The officer reached through the door in an attempt to gain Kitteaux’s compliance and he repeatedly closed the door on the officer’s arm.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Kitteaux was immediately remanded to the custody of the U.S. Marshals Service.
Middleburg Nurse Sentenced to Federal Prison for Tampering with ICU Patients’ MedicationRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Monique Elizabeth Carter (36, Middleburg) to one year and one day in federal prison for tampering with a consumer product, specifically, injectable fentanyl. The court further ordered that after serving her prison sentence, Carter will serve one year of home detention as a condition of a two-year term of supervised release. During this time, Carter will also be prohibited from working in any position in which she would have access to prescribed medications. Carter had pleaded guilty on April 13, 2022.
According to court documents, Carter is a registered nurse who had previously been employed by a hospital in Jacksonville. She worked in a neural intensive care unit or ICU, which is a specialized unit that provides intensive and specialized care to critically ill patients with life-threatening neurological problems. Certain ICU patients were prescribed intravenous doses of fentanyl, a synthetic opioid used as a pain medication and as anesthesia.
After Carter’s shift on September 28, 2021, a hospital pharmacist examined the ICU wing’s inventory of fentanyl and found a fentanyl syringe with a tamper-proof cap missing, but with some form of foreign adhesive remaining at the tip. A second fentanyl syringe had a cap that appeared to have been glued back on. After reviewing hospital records, a pharmacist supervisor noted a pattern of Carter checking out doses of fentanyl for patients, but then cancelling the transactions and checking syringes back into the hospital’s inventory. Records showed that Carter did so 24 times between August 29 and September 28, 2021. Carter was the only nurse on her ICU wing who persistently checked out fentanyl and returned it to the hospital’s inventory.
The next day, when Carter arrived for work, hospital representatives interviewed her. Confronted with the pharmacists’ findings, Carter eventually admitted that—to obtain drugs for personal use at home—she had been removing injectable fentanyl from syringes, replacing the drug with saline, and then gluing the plastic tampering caps back on the syringes with an adhesive that she obtained from the hospital. She admitted that she had been tampering with fentanyl syringes since the summer of 2021. Carter denied injecting fentanyl while on duty at the hospital, but in her bag, law enforcement investigators later located needles, saline syringes, and adhesive.
Carter is a trained healthcare professional and knew that her activities likely resulted in critically ill patients receiving diluted fentanyl, which was not safe and effective. Having been deprived of sterile, medically necessary medication, such patients were exposed to possible infection and endured unnecessary pain and suffering. In addition, Carter knew that the failure to anesthetize or control pain in ICU patients can result in increased risks of illness or death, stemming from, among other things, respiratory, cardiovascular, and musculoskeletal complications.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Jacksonville Sheriff’s Office – Pharmaceutical Diversion and Designer Drug Unit attached to the North Florida High Intensity Drug Trafficking Area. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Mexican Man Indicted for Smuggling 163 Pounds of Methamphetamine Across the US-Mexico BorderRead the Press Release
PHOENIX, Ariz. –Last week, a federal grand jury in Phoenix, Arizona, returned a two-count indictment against Jose Luis Vazquez-Gonzalez, 39, of Mexico, for Possession with Intent to Distribute Methamphetamine and Importation of Methamphetamine into the United States from Mexico.
The indictment alleges that on June 18, 2022, Vazquez-Gonzalez entered the United States through San Luis, Arizona. At the Port of Entry, Customs and Border Protection officers discovered 155 packages hidden in Vazquez-Gonzalez’s car. The packages contained a white crystal-like substance that tested positive for methamphetamine. The combined weight of the packages was over 163 pounds.
A conviction for each of the charged offenses carries a maximum penalty of life in prison and a $10,000,000 fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-22-00815-PHX-DJH
RELEASE NUMBER: 2022-120_Vazquez-Gonzalez# # #
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.
McKeesport Man Sentenced to 6 Years for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA -- A resident of McKeesport, Pennsylvania, has been sentenced in federal court to 72 months’ imprisonment and 5 years’ supervised release on his convictions for violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Guy Wallar, Jr., age 25.
According to information presented to the court, on June 28, 2021, officers with the Duquesne Police Department noticed a male seated in the driver seat of a parked vehicle who was slumped over the arm rest. The vehicle was in the Truman Towers parking lot, a known drug trafficking area that had a shooting earlier that day. Upon approaching the vehicle, the officers detected the strong odor of burning marijuana and observed, in plain view, the driver sleeping, marijuana, and drug packaging material.
The officers woke the driver and asked him to exit the vehicle. The driver, and sole occupant of the vehicle, identified himself as Guy Wallar, Jr. Wallar then requested to show the officers something in the vehicle. As Mr. Wallar attempted to access the vehicle, officers told him to stop for fear of the destruction of evidence and officer safety. However, Wallar again tried to access the vehicle, and officers detained him. A search of Mr. Wallar incident to his arrest resulted in the seizure of marijuana, a cellular phone, and $8,517.00.
Officers requested consent to search the vehicle, which Wallar granted. The subsequent search resulted in the seizure of approximately 110 net grams of cocaine, an additional cellular phone, suspected narcotics, and a Polymer 80 pistol containing 16 rounds of ammunition.
On July 1, 2021, the same officers who arrested Wallar on June 28, 2021, observed Wallar walking out of Truman Towers. Based upon their recent interactions with Wallar and the Polymer 80, the officers asked for consent to search Wallar for weapons. Wallar consented, and an officer patted down Waller, feeling a baggie of suspected narcotics in his pocket. The officer pulled a baggie from the pocket, and it contained approximately six net grams of cocaine base, in the form commonly known as crack. The officers again arrested Mr. Wallar, and a search incident to arrest resulted in the seizure of two cellular phones and $882.00.
Following the return of the Superseding Indictment, law enforcement arrested Wallar near his vehicle on October 5, 2021. During the arrest, law enforcement observed a marijuana blunt in plain view within the vehicle. Subsequently, law enforcement applied for and obtained a federal search warrant for the vehicle. The search resulted in the seizure of small quantities of suspected marijuana and cocaine, in addition to $10,471.00.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Duquesne Police Department for the investigation leading to the successful prosecution of Wallar.
Maplewood Felon Sentenced to Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Maplewood man was sentenced to 77 months in prison followed by three years of supervised release for illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 12, 2021, Metro Transit Police Officers were dispatched to a report of a vehicle stuck on the light rail tracks in St. Paul. At the scene they found Deandre Lenier Neal-Hill, 35, unconscious in the driver’s seat of a maroon Chevrolet Malibu. The vehicle, with the engine still running, had a flat tire and was stuck in the tracks. Officers removed an unresponsive Neal-Hill from the vehicle and began preforming emergency medical aid until the paramedics arrived and took him to a hospital.
According to court documents, as officers extracted Neal-Hill from the vehicle, they observed a black handgun on the floorboard on the driver’s side of the vehicle, which was later determined to be an FNH USA model 503 9mm semiautomatic pistol. Neal-Hill’s pistol was loaded with one round in the chamber and seven bullets in the inserted magazine. Neal-Hill was also in possession of marijuana, methamphetamine, and oxycodone pills.
Neal-Hill has prior felony convictions, including convictions of drive-by shooting, assault, and drug sale, therefore he is prohibited under federal law from possessing firearms or ammunition at any time.
Neal-Hill was sentenced today in U.S. District Court by Judge Wilhelmina Wright. Neal-Hill pleaded guilty to one count of illegal possession of a firearm as a felon.
This case is the result of an investigation conducted by the ATF, the FBI, the St. Paul Police Department, and the Metro Transit Police Department.
Assistant U.S. Attorneys Matthew S. Ebert and Thomas Calhoun-Lopez prosecuted the case.
Many, LA Man Sentenced to Federal Prison for Trafficking Narcotics and Illegal Possession of FirearmsRead the Press Release
SHREVEPORT, La. – Ronald Carnell Holland, Jr., 24, of Many, Louisiana, was sentenced today on drug trafficking and firearms charges, announced United States Attorney Brandon B. Brown. Holland was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 111 months in prison, followed by 5 years of supervised release.
Merritt pleaded guilty on March 7, 2022 to one count of possession of flualprazolam with intent to distribute and one count of possession of a firearm in furtherance of drug trafficking. These charges are the result of a search warrant that was executed on April 14, 2021 at Holland’s residence in Many, Louisiana. Law enforcement officers found three loaded pistols, as well as a high-capacity drum magazine loaded with 48 rounds of ammunition. In addition, officers recovered 2,000 flualprazolam pills, cash, boxes of various ammunition, clear plastic baggies, and a scale.
The case was investigated by the ATF and the Sabine Parish Sheriff’s Office and was prosecuted by U.S. Attorney Brandon B. Brown and Assistant U.S. Attorney Earl M. Campbell.
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Man Arrested for Leading Role in $10 Million Tech Support Fraud Scheme That Exploited Elderly VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced charges against VINOTH PONMARAN for participating in a conspiracy that for several years exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services they did not need, and which were never actually provided. In total, the conspiracy generated more than $10 million in proceeds from at least approximately 7,500 victims. PONMARAN was arrested on Friday in Blaine, Washington, and will be presented in the Western District of Washington. The case has been assigned to U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “As alleged, the defendant was a leader of a sophisticated fraud scheme that preyed on victims, including the elderly. This conspiracy allegedly caused pop-up windows to appear on victims’ computers—pop-up windows which claimed, falsely, that a virus had infected the victim’s computer. Through this and other misrepresentations, this fraud scheme deceived thousands of victims, including some of society’s most vulnerable members, into paying a total of more than $10 million. Thanks to our partners at Homeland Security Investigations, this scheme has been dismantled.”
According to the allegations contained in the Superseding Indictment,[1] as well as court filings and statements made in court in connection with the cases of PONMARAN’s co-defendants:
From approximately March 2015 through December 2018, PONMARAN was a member of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme targeting elderly victims located across the United States and Canada, including in the Southern District of New York. The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services. Over the course of the conspiracy, the Fraud Ring generated more than $10 million in proceeds from at least 7,500 victims.
The scheme generally worked as follows. First, the Fraud Ring caused pop-up windows to appear on victims’ computers. The pop-up windows claimed, falsely, that a virus had infected the victim’s computer. The pop-up window directed the victim to call a particular telephone number to obtain technical support. In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.” In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company. In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company. Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist. And while the purported “virus” was a hoax, the pop-up window itself did cause various victims’ computers to completely “freeze,” thereby preventing these victims from accessing the data and files in their computer—which caused some victims to call the phone number listed on the pop-up window. In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet. The Fraud Ring also re-victimized various victims, after they had made payments to purportedly “fix” their tech problems.
PONMARAN was an India-based leader of the Fraud Ring. Among other things, PONMARAN managed a call center in India that was used to provide purported computer repair services to victims of the scheme. PONMARAN also recruited co-conspirators in the United States to register fraudulent corporate entities and open bank accounts that were used to receive fraud proceeds from victims of the scheme. PONMARAN also directed co-conspirators to wire fraud proceeds from the United States to accounts in India.
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PONMARAN, 34, a citizen of India, is charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PONMARAN’s co-defendants, Romana Leyva and Ariful Haque, were both sentenced earlier this year, following their respective guilty pleas. Leyva was sentenced to 100 months in prison and three years of supervised release, and she was ordered to pay forfeiture of $4,679,586.93 and restitution of $2,707,882.91. Haque was sentenced to one year and one day in prison and three years of supervised release, and he was ordered to pay forfeiture of $38,886.32 and restitution of $470,672.16.
Mr. Williams praised the outstanding work of the New York Office of the Homeland Security Investigations (“HSI”)’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group. Mr. Williams also thanked the New York City Police Department for its assistance on this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
[1] The entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Media AdvisoryRead the Press Release
United States Attorney Philip R. Sellinger and New Jersey Acting Attorney General Matthew J. Platkin to Announce State-Federal Collaboration to Ensure Protection of Individuals Seeking Abortion and Security of Abortion Providers
****** MEDIA ADVISORY — PLANNING PURPOSES ONLY ******NEWARK, N.J. – U.S. Attorney Philip R. Sellinger, District of New Jersey, and New Jersey Acting Attorney General Matthew J. Platkin to announce partnership that will protect in- and out-of-state patients, health care workers and reproductive health services providers while coordinating intelligence-sharing across local, state and federal law enforcement agencies.
WHEN: Wednesday, July 20, 2022, 2:00 p.m. EDT
WHO: U.S. Attorney Philip R. Sellinger, District of New Jersey
New Jersey Acting Attorney General Matthew J. PlatkinLaurie Doran, Director, New Jersey Office of Homeland Security and Preparedness
Pearl Minato, Director, Division of Criminal Justice
Cari Fais, Director, Division of Consumer AffairsWHERE: Office of the Attorney General, 124 Halsey St, 7th Floor, Newark, NJ.
Livestream available at: https://youtu.be/0BGCJ_Sx7w0
Lowell Man Sentenced to Seven Years in Prison for Illegal Firearm ChargesRead the Press Release
BOSTON – A Lowell man was sentenced on July 15, 2022 in federal court in Boston in connection with advertising the sale of firearms on Snapchat.
Juan Aparicio, 31, was sentenced by U.S. District Court Judge Patti B. Saris to seven years in prison and three years of supervised release. On Feb. 10, 2022, Aparicio pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
“Firearms are inherently dangerous weapons. Those who lawfully carry them in Massachusetts are required to undergo a thorough vetting process. There are also very strict requirements regarding the legal purchase and sale of any firearm. Convicted felons like Mr. Aparicio are strictly prohibited from possessing firearms in any way, which obviously includes trying to sell them on Snapchat,” said United States Attorney Rachael S. Rollins. “Whether an illegal possession or an unlawful sale is in person over conducted via social media, prohibited individuals will be found and prosecuted. We will work tirelessly with our law enforcement partners to keep deadly firearms out of the hands of prohibited individuals.”
“Illegal firearms trafficking is a serious threat to our communities,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF’s Boston Division will continue to work with our local, state and federal partners to target firearms traffickers and remove them from our communities. This investigation is an example of our commitment to protecting the public and making Massachusetts safer.”
In June 2019 and January 2020, Aparicio posted videos on his Snapchat offering to sell numerous firearms. A search of Aparicio’s residence resulted in the recovery of a loaded assault rifle and handgun. Due to previous convictions punishable by more than one year in prison, Aparicio is prohibited from possessing firearms and ammunition.
U.S. Attorney Rollins, ATF SAC Ferguson, Middlesex County District Attorney Marian T. Ryan and Superintendent Raymond Kelly Richardson of the Lowell Police Department made the announcement. Assistant U.S. Attorneys Evan Panich and Charles Dell’Anno of Rollins’ Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Louisville Man Sentenced to 60 Months for Possessing Stolen MailRead the Press Release
FRANKFORT, Ky.— A Louisville man, Antwan Lovelace, 27, was sentenced to 60 months in federal prison last Wednesday, by U.S. District Judge Gregory Van Tatenhove, following his conviction for possession of stolen mail.
According to the evidence at his trial, in late December 2020, in an apartment in Frankfort, Lovelace was in possession of over $400,000 worth of stolen mail. The stolen mail included checks, money orders, gift cards, and greeting cards; various ID documents; bank cards; acetone containers; and other chemicals commonly used to wash checks. Investigators contacted the senders of the checks and discovered they had mailed the checks from various post office locations in and around Louisville.
A jury convicted Lovelace in January 2022. Lovelace’s co-defendant, Joiya Smith, pleaded guilty and was sentenced to 18 months in federal prison.
Under federal law, Lovelace must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
“In some form or fashion, every one of us relies on the postal system to communicate, exchange articles, or transact business,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “That means the integrity of the postal system is critically important to us all. In conjunction with our partners, we will continue to investigate and prosecute those who criminally exploit the postal system. And this case should serve as a warning of the potential consequences that face those who do.”
“The results of this investigation serve as a great example of the coordination between the US Postal Inspection Service and our federal, state, and local law enforcement partners to preserve the safety, security, and integrity of the nation’s mail system from criminal activity,” said Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburgh Division. “As the nation’s oldest federal law enforcement agency, the Postal Inspection Service has a long, proud, and successful history of fighting criminals who misuse our nation’s postal system.”
United States Attorney Shier and Inspector Allison, jointly announced the sentence.
The investigation was conducted by the USPIS, with assistance from the U.S. Secret Service, Louisville Metro Police Department, and Franklin County Sheriff’s Office. The United States was represented by Special Assistant U.S. Attorney James Chapman.
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Louisiana Return Preparer Sentenced to Additional Prison Time for Second Tax Fraud ConspiracyRead the Press Release
A Louisiana woman was sentenced today to 10 months in prison for conspiring to defraud the United States. This sentence will begin to run after the completion of her previous sentence, imposed on April 14, of one year and one day in prison.
According to court documents and statements made in court, from January through April 2015, Brittany Patterson, of Jefferson Parish, conspired with others to file false tax returns for clients of Pelicans Income Tax and Payroll Service, a return preparation business with locations in Kenner and Westwego. Patterson and others prepared returns with false income and withholding amounts in order to generate tax refunds their clients were not entitled to receive. For the 2014 tax year, Patterson also falsified her own tax return, submitting to the IRS fictitious education expenses and dependent information. In total, Patterson and her conspirators fraudulently sought more than $550,000 in IRS refunds.
In addition to the term of imprisonment, U.S. District Judge Sarah S. Vance ordered Patterson to serve three years of supervised release and to pay approximately $283,378 in restitution to the United States.
On April 14, Patterson was sentenced to prison in connection with a separate tax conspiracy relating to Crown Tax Service LLC, another return preparation business where Patterson worked as a tax return preparer.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Jessica Kraft and William Montague of the Justice Department’s Tax Division and Assistant U.S. Attorney Carter Guice for the Eastern District of Louisiana prosecuted the case.
League City man gets 35 years for exploiting child on KikRead the Press Release
GALVESTON, Texas – A 38-year-old man has been ordered to federal prison following his conviction of production and possession of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Scott Jacob McGuire pleaded guilty Aug. 8, 2021.
Today, U.S. District Judge Jeffrey V. Brown sentenced McGuire to 360 and 60 months for the production and possession convictions, respectively. They will run consecutively for a total 420-month-term of imprisonment. At the hearing, the court an impact statement from one of the identified victims in the images McGuire possessed. McGuire was further ordered to pay $63,000 in restitution to seven of the victims whose images he possessed and the minor victim of whom he created child pornography. Additionally, he will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. McGuire will also be ordered to register as a sex offender.
McGuire had engaged in a conversation with someone who he believed to be a father to a young child on Kik, claiming he was also a dad to a three-year-old daughter. McGuire sent an image of the minor female with McGuire’s genitals in her hand and stated he would give the child melatonin so she would “sleep like a rock.” Then, McGuire requested images of the individual molesting his daughter.
Law enforcement was able to locate McGuire in League City and executed a search warrant at his residence. At that time, they seized numerous devices and discovered 721 images of child pornography. McGuire also possessed a large amount of child erotica and CGI animation child pornography.
In addition to the minor victim McGuire used to produce child pornography, he also possessed images and video of victims the National Center for Missing and Exploited Children has previously identified in 47 known series.
McGuire has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI – Texas City conducted the investigation with the assistance of the Washington Metropolitan Police FBI Child Exploitation Task Force.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Las Vegas Apartment Complex Manager Sentenced for Violating Clean Air Act Asbestos Regulations at Two FacilitiesRead the Press Release
A California man was sentenced to one year and one day in prison and 36 months of supervised release for renovating two apartment complexes in violation of federal Clean Air Act regulations intended to prevent human exposure to toxic airborne asbestos fibers.
Bobby Khalili, 46, of Los Angeles, was indicted by a grand jury sitting in the District of Nevada in September 2019, in connection with asbestos-related Clean Air Act violations at a Las Vegas apartment complex. The grand jury later returned a superseding indictment against Khalili in July 2021, in connection with new Clean Air Act asbestos violations at a second apartment complex, which Khalili committed while on pretrial release for the first set of charges. Khalili pled guilty on March 11, to failing to safely remove asbestos prior to renovation at each complex.
As part of his guilty plea, Khalili acknowledged that, on behalf of Las Vegas Apartments LLC, he oversaw renovation activities at both apartment complexes. He further admitted that he was aware of asbestos-containing materials at both buildings, and that he hired untrained individuals to tear out those materials without following asbestos work-practice standards prescribed by the Clean Air Act. Those work practice standards require that asbestos-containing materials be safely removed prior to general renovation activity taking place. Asbestos-containing materials must be kept wet at all times to prevent dust escaping, sealed in leak-proof bags, and disposed of at facilities authorized to accept asbestos waste. At both apartment buildings, untrained laborers removed asbestos-containing drywall and ceiling texture without wetting or containment, releasing asbestos fibers into the surrounding atmosphere.
Khalili also admitted to taking steps to evade law enforcement at each site. At the first apartment complex, Khalili attempted to have a dumpster filled with asbestos waste removed from the site when inspectors from the Clark County Department of Air Quality discovered asbestos-related violations. At the second complex, where he oversaw illegal renovations while on pretrial release, he instructed the contractor in charge of the renovation to lie to inspectors about who owned and oversaw the project, in an attempt to blame another person for the Clean Air Act violations he knowingly committed. According to the government’s sentencing memorandum filed with the court, Khalili also created a fake contract purportedly showing that other person’s responsibility for the renovation; in truth, that person was deceased at the time of the project.
Inhalation of airborne asbestos fibers has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. Congress and the EPA have determined that there is no safe level of exposure to asbestos.
“Today’s sentencing demonstrates that cutting corners on asbestos abatement will not result in a slap on the wrist,” said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division (ENRD). “These are serious offenses with serious consequences, and we will continue to work with EPA and our partners in U.S. Attorneys’ Offices to prosecute violations of the Clean Air Act’s asbestos safety regulations.”
“The defendant placed the public in danger of inhaling asbestos fibers when he failed to follow Clean Air Act regulations,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “This sentence sends a deterrent message that the U.S. Attorney’s Office and our partners will hold accountable individuals who violate federal environmental laws that are designed to protect workers and our communities.”
“The defendant failed to provide for the required safe removal of material containing asbestos,” said Special Agent in Charge Scot Adair of EPA’s Criminal Enforcement Program in Nevada. “In addition, the defendant created an elaborate scheme in an effort to deceive law enforcement and regulators. Today’s sentencing reflects our commitment to holding people like Khalili accountable for their criminal conduct.”
Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Senior Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jean Ripley and Special Assistant U.S. Attorney Rachel Kent for the District of Nevada prosecuted the case.
Las Vegas Apartment Complex Manager Sentenced for Violating Clean Air Act Asbestos Regulations at Two FacilitiesRead the Press Release
LAS VEGAS – A California man was sentenced to one year and one day in prison and 36 months of supervised release for renovating two apartment complexes in violation of federal Clean Air Act regulations intended to prevent human exposure to toxic airborne asbestos fibers.
Bobby Khalili, 46, of Los Angeles, was indicted by a grand jury sitting in the District of Nevada in September 2019, in connection with asbestos-related Clean Air Act violations at a Las Vegas apartment complex. The grand jury later returned a superseding indictment against Khalili in July 2021, in connection with new Clean Air Act asbestos violations at a second apartment complex, which Khalili committed while on pretrial release for the first set of charges. Khalili pled guilty on March 11, to failing to safely remove asbestos prior to renovation at each complex.
As part of his guilty plea, Khalili acknowledged that, on behalf of Las Vegas Apartments LLC, he oversaw renovation activities at both apartment complexes. He further admitted that he was aware of asbestos-containing materials at both buildings, and that he hired untrained individuals to tear out those materials without following asbestos work-practice standards prescribed by the Clean Air Act. Those work practice standards require that asbestos-containing materials be safely removed prior to general renovation activity taking place. Asbestos-containing materials must be kept wet at all times to prevent dust escaping, sealed in leak-proof bags, and disposed of at facilities authorized to accept asbestos waste. At both apartment buildings, untrained laborers removed asbestos-containing drywall and ceiling texture without wetting or containment, releasing asbestos fibers into the surrounding atmosphere.
Khalili also admitted to taking steps to evade law enforcement at each site. At the first apartment complex, Khalili attempted to have a dumpster filled with asbestos waste removed from the site when inspectors from the Clark County Department of Air Quality discovered asbestos-related violations. At the second complex, where he oversaw illegal renovations while on pretrial release, he instructed the contractor in charge of the renovation to lie to inspectors about who owned and oversaw the project, in an attempt to blame another person for the Clean Air Act violations he knowingly committed. According to the government’s sentencing memorandum filed with the court, Khalili also created a fake contract purportedly showing that other person’s responsibility for the renovation; in truth, that person was deceased at the time of the project.
Inhalation of airborne asbestos fibers has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. Congress and the EPA have determined that there is no safe level of exposure to asbestos.
“Today’s sentencing demonstrates that cutting corners on asbestos abatement will not result in a slap on the wrist,” said Assistant Attorney General Todd Kim of the Environment and Natural Resources Division (ENRD). “These are serious offenses with serious consequences, and we will continue to work with EPA and our partners in U.S. Attorneys’ Offices to prosecute violations of the Clean Air Act’s asbestos safety regulations.”
“The defendant placed the public in danger of inhaling asbestos fibers when he failed to follow Clean Air Act regulations,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “This sentence sends a deterrent message that the U.S. Attorney’s Office and our partners will hold accountable individuals who violate federal environmental laws that are designed to protect workers and our communities.”
“The defendant failed to provide for the required safe removal of material containing asbestos,” said Special Agent in Charge Scot Adair of EPA’s Criminal Enforcement Program in Nevada. “In addition, the defendant created an elaborate scheme in an effort to deceive law enforcement and regulators. Today’s sentencing reflects our commitment to holding people like Khalili accountable for their criminal conduct.”
Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Senior Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jean Ripley and Special Assistant U.S. Attorney Rachel Kent for the District of Nevada prosecuted the case.
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Lake City Man Sentenced to Eleven Years in Federal Prison for Trading Child Sexual Abuse Material with His BrotherRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Dennis Dewayne Jackson (39, Lake City) to 11 years and 6 months in federal prison for receiving visual depictions of child sexual abuse. The Court also ordered Jackson to serve a 20-year term of supervised release, to register as a sex offender, and to forfeit the phone that he had used to receive the images and videos of children being sexually abused. Jackson had pleaded guilty on March 9, 2022, and has been detained since his arrest on July 22, 2021.
Jackson’s older brother, John Thomas Jackson, was sentenced on January 27, 2022, to 20 years in federal prison for distributing visual depictions of child sexual abuse.
According to court documents, the FBI initiated an investigation of a private chat group that catered to people interested in sexual activity between daughters and daddies and in which files of child sexual abuse material were regularly shared. After identifying John Jackson, the Columbia County Sheriff’s Office and the FBI executed a search warrant at the Jacksons’ residence in Lake City on July 4, 2021. While reviewing seized electronic devices, the FBI discovered that John Jackson was distributing videos of the sexual assault of children to his brother, Dennis Jackson. Further, the two had exchanged messages about the “need” to rape a 15-year-old child with whom John Jackson was communicating and of whom Dennis Jackson requested nude photos.
During a recorded interview, Dennis Jackson admitted to distributing and receiving child sexual abuse material for the last two years, and that he had received approximately 1,500 files of such material and distributed files dozens of times.
“The exploitation of children requires swift and intense law enforcement action,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “We at the FBI are prepared to immediately respond whenever a child is at risk. Predators should heed this warning: the FBI, along with our local, state, and federal law enforcement partners will stop at nothing to stop these heinous crimes and protect innocent children.”
This case was investigated by the Federal Bureau of Investigation and the Columbia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ladson Man Sentenced to 5 Years Imprisonment for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA --- David Crosby, 29, of Ladson, was sentenced to five years in federal prison after pleading guilty to possession of child pornography.
Evidence presented to the Court demonstrated that an individual in Canada traded child pornography with Crosby through an instant messaging application for smartphones. Investigators located Crosby through the IP address he used to access the instant messaging application. Following the execution of a search warrant at his residence, investigators located 398 images and 20 videos of child pornography on Crosby’s devices, including images of prepubescent minors having sex with adults.
United States District Judge Margaret Seymour sentenced Crosby to 60 months in federal prison, to be followed by a lifetime term of court-ordered supervision. Judge Seymour also ordered Crosby to pay $3,000 in restitution to a victim identified in the case.
This sentencing is the result of an investigation by Homeland Security Investigations (“HSI”). Assistant United States Attorney Emily Limehouse prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Lander Man Sentenced to 63 Months’ Imprisonment for Wire Fraud Relating to Cares Act Stimulus FundingRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that PAUL MCCOWN, 33, of Lander, Wyoming, was sentenced on July 5, 2022, by Chief United States District Court Judge Scott W. Skavdahl, for four counts of wire fraud in relation to pandemic relief programs administered by the Wyoming Business Council and Coronavirus Aid, Relief, and Economic Security (CARES) Act funds and three counts of wire fraud in relation to money fraudulently obtained from Ria R Squared, Inc., the proceeds of which were used in part to repay the Wyoming Business Council. McCown was sentenced to 63 months’ imprisonment to be followed by three years of supervised release and was ordered to pay $700 in special assessments. The court will determine any restitution amount at a later time.
Paul McCown was the Chief Financial Officer of the Wyoming Catholic College in Lander, Wyoming. He was also attempting to open a gin distillery. When the Wyoming Business Council received CARES Act funds to distribute to Wyoming businesses suffering the effects of the COVID-19 pandemic, McCown applied for grants for his personal business even though he had never sold any gin. After his grants were audited, he agreed to pay back the $841,863 he fraudulently obtained from the State of Wyoming. Through his position at Wyoming Catholic College, he was introduced to a private financial management firm, Ria R. Squared, Inc. He then engaged in an elaborate scheme that included impersonating others and forging documents to fraudulently induce the financial management firm to loan him $15,000,000.
“Paul McCown’s fraudulent behavior was extreme and went on for nearly a year” said Acting United States Attorney Nicholas Vassallo. “He violated the trust of the people of the State of Wyoming and the United States by fraudulently obtaining nearly $850,000 in COVID relief money. His misconduct damaged the community as a whole and harmed businesses that legitimately needed the aid. He then went on to defraud a private investment firm for approximately $15,000,000. The District Court’s 63-month sentence reflects the gravity of McCown’s deceitful conduct.”
FBI Denver Special Agent in Charge Michael Schneider said, “Mr. McCown took advantage of money allocated by the Federal government through programs that were created to provide critical support to our communities during the pandemic. This case is a reminder that the FBI will continue to aggressively pursue those who defraud the Federal government to enrich themselves.”
This crime was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Christyne M. Martens prosecuted the case.
Case No. 22-cr-00023-SWS
Kentucky Drug Dealers Sentenced to Federal Prison for Trafficking Methamphetamine in Evansville and HendersonRead the Press Release
EVANSVILLE – James Shultz, 37, of Louisville, Ky., was sentenced today to 15 years in federal prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. On Jan. 5, 2021, codefendant Sheena Garrett, 35, of Henderson, Ky., was sentenced to 12 years in federal prison for conspiracy to distribute methamphetamine.
According to court documents, from Jan. through Sept. 2018, Shultz and Garrett conspired to distribute more than 4.5 kilograms of crystal methamphetamine. Shultz regularly supplied three to six pounds of methamphetamine at a time to Garrett, who distributed the methamphetamine in Evansville, Henderson, and surrounding areas.
On Sept. 1, 2018, Shultz was driving on I-69 in Vanderburgh County when he was stopped by law enforcement officers following a traffic violation. Officers searched the vehicle after a drug detection dog alerted to the presence of narcotics. Officers seized approximately 1,425 grams of methamphetamine and a large amount of U.S. currency from the vehicle. In his guilty plea, Shultz admitted that he intended to distribute the methamphetamine to Garrett for further distribution.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office; and the Evansville Vanderburgh County Drug Task Force (EVCDTF) made the announcement.
DEA and the EVCJDF investigated the case. The sentences were imposed by U.S. District Judge Richard L. Young following the defendants’ guilty pleas. As part of the sentences, Judge Young ordered that Shultz and Garrett each be supervised by the U.S. Probation Office for five years, following their release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lauren Wheatley who prosecuted this case.
KC Man Pleads Guilty to Heroin, Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., pleaded guilty in federal court today on charges related to heroin and methamphetamine trafficking and to illegally possessing firearms.
Brian K. Tice, 58, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of conspiracy to distribute heroin, two counts of possessing heroin with the intent to distribute, one count of possessing methamphetamine with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms.
By pleading guilty today, Tice admitted that he received an Express Mail package from California on Feb. 18, 2022, that contained 393.26 grams of heroin. The package was intercepted by a postal inspector, who learned that Tice had been sent 20 similar packages from the same person in California over the previous year. Law enforcement officers set up a controlled delivery of the package to Tice’s residence. When he brought the package inside and opened it, officers executed a search warrant at his residence.
Officers found a loaded Springfield Armory handgun, which was later determined to be stolen, and a loaded Smith & Wesson 9mm handgun on the bed where the controlled delivery parcel was located. Officers also found a Springfield Armory handgun and a Bryco .380-caliber handgun, which was later determined to be stolen, in the closet of the same bedroom. Officers also seized 115 grams of methamphetamine, two grams of crack cocaine, four cell phones and drug paraphernalia.
On March 5, 2022, law enforcement officers arrested Tice when he left a residence they had under surveillance. Officers searched Tice and the vehicle he was in, and seized 84 tablets of benzodiazepines, 69 tablets of Alprazolam, 108 tablets of Zolpidem Tartrate, 24 tablets of Hydrocone, and a vial that contained fentanyl.
Tice had earlier been stopped by a Jackson County sheriff’s deputy, which is the basis for one of the heroin distribution counts. At about 11 p.m. on Sept. 5, 2019, Tice was driving a 2009 Volkswagen Jetta and made a left-hand turn onto Broadway from West 39th Street in Kansas City. The deputy braked to avoid a collision with the Jetta, which continued traveling north on Broadway down the middle of the street. The deputy stopped the vehicle and conducted a series of field sobriety tests, which Tice failed. The deputy arrested Tice for driving under the influence; during a search the deputy found two plastic bags that contained a total of 25 grams of heroin and $3,762 in cash in Tice’s pockets. The deputy also searched Tice’s vehicle and found a grocery sack underneath the driver’s seat that contained a plastic bag with approximately 91 grams of heroin.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Tice has prior felony convictions for sale of a controlled substance and conspiracy to distribute five kilograms or more of cocaine.
Under the terms of today’s plea agreement, Tice is subject to a sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the U.S. Postal Inspection Service, the Jackson County Drug Task Force and the Jackson County, Mo., Sheriff’s Department.
Justice Department Secures Agreement with Jefferson County, Kentucky, Officials to Ensure Polling Place AccessibilityRead the Press Release
The Justice Department has secured an agreement under Title II of the Americans with Disabilities Act (ADA) with the Jefferson County, Kentucky, Board of Elections to ensure that the Board’s polling places are accessible to individuals with disabilities.
The department identified architectural barriers at numerous polling places after it reviewed the Jefferson County Board’s voting program for compliance with the ADA. These barriers included inaccessible parking, ramps that were too steep, walkways that had steep cross slopes or had gaps and bumps and voting machines that could not be accessed by voters with mobility disabilities. The department also identified that the Jefferson County Board fails to provide voters with disabilities privacy and independence while voting.
Under the ADA, state and local governmental entities that conduct elections may not select polling places that are inaccessible to individuals with disabilities for use during elections, and they must make reasonable modifications to ensure that voters with disabilities have equal opportunity to participate in voting programs.
“Voting is the bedrock of our democracy, and all voters, including those with disabilities, should have an equal opportunity to participate in the voting process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to use every tool at our disposal, including the Americans with Disabilities Act, to protect the rights of all Americans to vote.”
Under the terms of the agreement, the Jefferson County Board will immediately begin remediating its voting program. The Board will employ measures such as portable ramps, signage and propped-open doors to ensure that its selected polling places are accessible to voters with disabilities. In addition, the Board will train its poll workers and other elections staff on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible during elections. The Board will also survey polling locations for accessibility and maintain the accessibility of each polling place it uses on election days. When selecting future polling places, the Board will select locations that will be accessible during elections.
This settlement is part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this initiative, the Department of Justice has surveyed more than 2,500 polling places and increased polling place accessibility in more than 50 jurisdictions, including Newton County, Arkansas; St. Louis, Missouri; Travis County, Texas; and Lackawanna County, Pennsylvania.
For more information about the ADA, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Charges Dozens for $1.2 Billion in Health Care FraudRead the Press Release
The Department of Justice today 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.
The nationwide coordinated law enforcement action includes criminal charges against a telemedicine company executive, owners and executives of clinical laboratories, durable medical equipment companies, marketing organizations, and medical professionals. In connection with the enforcement action, the department seized over $8 million in cash, luxury vehicles, and other fraud proceeds.
Additionally, the Centers for Medicare & Medicaid Services (CMS), Center for Program Integrity (CPI) announced today that it took administrative actions against 52 providers involved in similar schemes.
“The Department of Justice is committed to prosecuting people who abuse our health care system and exploit telemedicine technologies in fraud and bribery schemes,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This enforcement action demonstrates that the department will do everything in its power to protect the health care systems our communities rely on from people looking to defraud them for their own personal gain.”
The coordinated federal investigations announced today primarily targeted alleged schemes involving the payment of illegal kickbacks and bribes by laboratory owners and operators in exchange for the referral of patients by medical professionals working with fraudulent telemedicine and digital medical technology companies. Telemedicine schemes account for more than $1 billion of the total alleged intended losses associated with today’s enforcement action. These charges include some of the first prosecutions in the nation related to fraudulent cardiovascular genetic testing, a burgeoning scheme. As alleged in court documents, medical professionals made referrals for expensive and medically unnecessary cardiovascular and cancer genetic tests, as well as durable medical equipment. For example, cardiovascular genetic testing was not a method of diagnosing whether an individual presently had a cardiac condition and was not approved by Medicare for use as a general screening test for indicating an increased risk of developing cardiovascular conditions in the future.
“Protecting the American people is at the forefront of the FBI’s mission,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Fraudsters and scammers take advantage of telemedicine and use it as a platform to orchestrate their criminal schemes. This collaborative law enforcement action shows our dedication to investigating and bringing to justice those who look to exploit our U.S. health care system at the expense of patients.”
“Today’s enforcement action highlights our dedication to fighting health care fraud and investigating individuals who target Medicare beneficiaries and steal from taxpayers for personal gain,” said Inspector General Christi A. Grimm of the U.S. Department of Health and Human Services. “HHS-OIG is proud to work alongside our law enforcement partners to disrupt fraud schemes that use the guise of telehealth to expand the reach of kickback schemes designed to cheat federally funded health care programs.”
One particular case charged involved the operator of several clinical laboratories, who was charged in connection with a scheme to pay over $16 million in kickbacks to marketers who, in turn, paid kickbacks to telemedicine companies and call centers in exchange for doctors’ orders. As alleged in court documents, orders for cardiovascular and cancer genetic testing were used by the defendant and others to submit over $174 million in false and fraudulent claims to Medicare—but the results of the testing were not used in treatment of patients. The defendant allegedly laundered the proceeds of the fraudulent scheme through a complex network of bank accounts and entities, including to purchase luxury vehicles, a yacht, and real estate. The indictment seeks forfeiture of over $7 million in United States currency, three properties, the yacht, and a Tesla and other vehicles.
Some of the defendants charged in this enforcement action allegedly controlled a telemarketing network, based both domestically and overseas, that lured thousands of elderly and/or disabled patients into a criminal scheme. The owners of marketing organizations allegedly had telemarketers use deceptive techniques to induce Medicare beneficiaries to agree to cardiovascular genetic testing, and other genetic testing and equipment.
“The Centers for Medicare & Medicaid Services continues to aggressively investigate fraud, waste and abuse and has taken action to protect patients, critical health care resources and to prevent losses to the Medicare Trust Fund,” said CMS Administrator Chiquita Brooks-LaSure. “Work like this to combat fraud, waste, and abuse in our federal programs would not be possible without the successful partnership of CMS, the Department of Justice, and the U.S. Department of Health and Human Services Office of Inspector General.”
The charges announced today allege that the telemedicine companies arranged for medical professionals to order these expensive genetic tests and durable medical equipment regardless of whether the patients needed them, and that they were ordered without any patient interaction or with only a brief telephonic conversation. Often, these test results or durable medical equipment were not provided to the patients or were worthless to their primary care doctors.
Today’s announcement builds on prior telemedicine enforcement actions involving over $8 billion in fraud, including 2019’s Operation Brace Yourself, 2019’s Operation Double Helix, 2020’s Operation Rubber Stamp, and the telemedicine component of the 2021 National Health Care Fraud Enforcement Action. Specifically, the Operation Brace Yourself Telemedicine and Durable Medical Equipment Takedown alone resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that enforcement action.
Today’s enforcement actions were led and coordinated by Acting Principal Assistant Chief Jacob Foster, Acting Assistant Chief Rebecca Yuan and Trial Attorney Catherine Wagner of the National Rapid Response Strike Force in the Criminal Division’s Fraud Section. The Fraud Section’s National Rapid Response Strike Force and the Health Care Fraud Unit’s Strike Forces (SF) in Brooklyn, Detroit, the Gulf Coast, Houston, Miami, Newark, as well as the U.S. Attorneys’ Offices for the District of New Jersey, Eastern District of Louisiana, Eastern District of Texas, Middle District of Florida, Middle District of Tennessee, Northern District of Georgia, Northern District of Mississippi, and Western District of North Carolina are prosecuting these cases.
In addition to the FBI, HHS-OIG, and CPI/CMS, VA-OIG, DCIS, IRS, MFCU, DEA, and other federal and state law enforcement agencies participated in the operation.
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 16 strike forces operating in 27 districts, has charged more than 5,000 defendants who collectively billed federal health care programs and private insurers approximately $24.7 billion.
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.
The following documents related to today’s announcement are available on the Health Care Fraud Unit website through the following links:
Telemedicine Enforcement Action (justice.gov)
Telemedicine Court Documents (justice.gov)
Telemedicine Press Releases (justice.gov)
Telemedicine Case Summaries (justice.gov)
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.
Investigation of a Pizza Delivery Box Lands a Meth Dealer in PrisonRead the Press Release
WILMINGTON, N.C. – Jerrell Taylor, 36, of Kinston North Carolina, was sentenced to 180 months (15 years) in prison for trafficking methamphetamine. The investigation tied meth sales to Taylor through a pizza delivery box that listed his address. When Taylor began to believe he was under federal investigation, he left North Carolina for Las Vegas, Nevada. He was arrested there in April of 2020.
“Through our collaboration across federal, state and local law enforcement, we are taking dangerous and illegal drugs off the streets and putting dealers behind bars,” said U.S. Attorney Michael Easley.
Taylor pled guilty in July 2021, to conspiracy to possess with intent to distribute and distribute 500 grams or more of a substance containing methamphetamine and possess with intent to distribute 50 grams or more of a substance containing methamphetamine.
According to court documents, evidence presented in court and other documents, on July 24, 2019, Onslow County Sheriff’s Detectives arranged a controlled purchase of 449 grams of meth for $6500. A “middleman” arrived on a motorcycle carrying a pizza box which contained the meth. The address listed on the pizza box was Taylor’s residence in Kinston. Following the deal, the middleman met with Taylor. Law enforcement observed the meeting and stopped both individuals. Taylor was found in possession of money from the controlled purchase.
The investigation revealed that from December 2018 until his arrest, Taylor was involved in the receipt and distribution of more than 18 kilograms of methamphetamine. Taylor was supplied methamphetamine from California including from people associated with the Grape Street Crips. Taylor and others would have packages sent to addresses in Kinston and New Bern. Taylor also had various people wire drug proceeds back to California. Among those involved in this conspiracy was Carlos Green. According to information received by law enforcement, Green received several packages of meth from the same source in California. Green was also involved in the distribution of heroin and cocaine in New Bern and Beaufort. Green was convicted of possession of a firearm by a felon and multiple drug trafficking charges in September of 2020. He was sentenced to 30 years in prison earlier this year.
This is part of operation “Fighting Jelly Fish” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, Department of Homeland Security, United States Postal Service, the Craven and Onslow County Sheriffs’ Office and the New Bern and Kinston Police Departments investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00005.
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Inform Diagnostics Agrees to Pay $16 Million to Resolve False Claims Act Allegations of Medically Unnecessary TestsRead the Press Release
BOSTON – Inform Diagnostics, Inc., (Inform) formerly known as Miraca Life Sciences, Inc. (Inform), has agreed to pay $16 million to resolve allegations that it submitted false claims for payment to Medicare and other federal health care programs.
Inform is a clinical laboratory headquartered in Irving, Texas, that provides anatomic pathology services to physician practices throughout the United States. On April 27, 2022, Fulgent Genetics purchased Inform, and the company is now a wholly owned subsidiary of Fulgent Genetics.
According to the settlement, Inform admits that, between 2013 and 2018, it routinely and automatically conducted additional tests on biopsy specimens prior to a pathologist’s review and without an individualized determination regarding whether additional tests were medically necessary. The United States contends that Inform’s policy of conducting routine additional tests caused Inform to perform many tests that were medically unnecessary. Inform submitted these medically unnecessary tests for payment, causing federal health care programs to pay for false claims.
“Laboratories that bill for medically unnecessary tests drain funds from Medicare and other federally funded health care programs,” said United States Attorney Rachael S. Rollins. “Prioritizing profit over complying with the law wastes hard earned taxpayer dollars. Companies that engage in this fraudulent conduct will be held accountable.”
“Clinical laboratories are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. We are committed to pursuing these types of allegations along with our law enforcement partners as we work to protect the integrity of our federal health care system.”
“Companies that provide services to VA will be held to the highest standards of integrity, professionalism, and accountability,” said Christopher Algieri, Special Agent in Charge of the Veteran Affairs’ Office of Inspector General’s Northeast Field Office. “Submitting claims for medically unnecessary services will not be tolerated, and the VA OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to hold wrongdoers accountable.”
“Submitting claims for medically unnecessary tests threatens the integrity of the federal health care programs and wastes taxpayer dollars,” said Amy K. Parker, Special Agent in Charge of the Office of Personnel Management’s Office of Inspector General. “Today’s settlement is a reminder to all providers that the OPM OIG will not tolerate fraud against the Federal Employees Health Benefits Program.”
“Billing federal health care programs for medically unnecessary tests contributes to the soaring costs of health care for all of us,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s settlement with Inform Diagnostics demonstrates the FBI’s commitment to ensuring that health care providers base their treatment decisions on patients’ needs rather than their own financial interests.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the government and share in any recovery. In connection with today’s settlement, the whistleblower will receive 17 percent of the recovery.
U.S. Attorney Rollins, HHS-OIG SAC Coyne, FBI SAC Bonavolonta and OPM OIG SAC Parker made the announcement today. The Department of Veterans Affairs’ Office of the Inspector General also provided assistance. Assistant U.S. Attorneys Alexandra Brazier and Lindsey Ross of Rollins’s Affirmative Civil Enforcement Unit handled the matter.
Indiana Man Sentenced to 8 Years in Prison for Conspiring to Distribute Narcotics and Money LaunderingRead the Press Release
JOHNSTOWN, Pa. – A former resident of Indiana, PA, has been sentenced in federal court to a total of 97 months in prison followed by 4 years of supervised release on his convictions of conspiracy to distribute and possess with the intent to distribute methamphetamine, fentanyl, and cocaine base, and conspiracy to commit money laundering, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Ahmed Doumbia, a/k/a “Med”, age 28.
According to information presented to the court, from on or about July 5, 2018, to on or about May 5, 2020, Doumbia did conspire to distribute and possess with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 40 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack,” as well as, conspired to commit money laundering.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
OCDETF conducted the investigation leading to the Indictment in this case. The task force is headed by the Federal Bureau of Investigation, Laurel Highlands Resident Agency and is comprised of members drawn from the FBI Safe Streets Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, and Firearms, the Pennsylvania State Police, and the Indiana Borough Police Department.
Guilty verdict in conspiracy to transport 124 peopleRead the Press Release
LAREDO, Texas – A federal jury sitting in Laredo has convicted a 67-year-old Laredo man of conspiring to transport people in a sealed trailer, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for two hours before convicting David William McKeon for conspiracy to transport undocumented aliens following a two-day trial.
On April 20, McKeon arrived at the Laredo North Border Patrol (BP) checkpoint while driving a tractor-trailer. At that time, law enforcement heard suspicious noises coming from the trailer. They opened a vent door and discovered 124 locked behind the doors.
At trial, the jury heard that McKeon had said he was recruited for the job at his birthday party a few days earlier. They heard he picked up the tractor-trailer from a dirt road then was given a fraudulent bill of lading in the parking lot of a Popeye’s restaurant before driving to the checkpoint.
However, the defense attempted to convince the jury that McKeon didn’t know there were aliens inside the trailer. The jury ultimately found him guilty of engaging in a conspiracy to transport the aliens.
U.S. District Judge Marina Garcia Marmolejo presided over trial and will set sentencing at a later date. At that time, McKeon faces up to 10 years in prison and a possible $250,000 maximum fine.
McKeon has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorneys Brian Bajew and David Fawcett are prosecuting the case.
Four Orleans Parish Residents and One Jefferson Parish Resident Indicted for Violations of the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – JOHN GUILLORY III, a/k/a “Tunie,” age 51, JOHN PETRIE, age 38, DEVIN JOHNSON, age 36, and SHAWN MAJOR, JR., a/k/a “G-Shawn,” age 22, residents of Orleans Parish, Louisiana, and LARRY MOSES, age 37, a resident of Jefferson Parish, Louisiana were charged on July 14, 2022, in a fourteen-count indictment by a federal grand jury. Charges include conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, crack, methamphetamine, heroin, and marijuana; distribution of fentanyl and crack; possession with intent to distribute crack, cocaine, fentanyl, heroin, and marijuana; felon in possession of firearms; and a person convicted of domestic violence in possession of a firearm, announced U.S. Attorney Duane A. Evans.
GUILLORY III is charged with conspiring to distribute 28 grams or more of crack, a quantity of cocaine, a quantity of fentanyl, and a quantity of marijuana , in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 841(b)(1)(D). He’s also charged with distribution of 28 grams or more of crack and fentanyl, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C); possession with intent to distribute 28 grams or more of crack, cocaine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 841(b)(1)(D); and being a felon in possession of a firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
If convicted of the conspiracy count, distribution of 28 grams or more of crack count, and possession with intent to distribute 28 grams or more of crack count, GUILLORY III faces a statutory mandatory minimum sentence of five years, up to a maximum of forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment for each count. For the distribution of fentanyl and possession with intent to distribute cocaine counts, he faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. For the possession with intent to distribute marijuana count, he faces not more than 5 years imprisonment, a fine not to exceed the greater of that authorized in accordance with the provisions of Title 18 of the United States Code or $250,000. If convicted of being a felon in possession of a firearm, GUILLORY III faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release For each count, he also faces payment of a mandatory $100 special assessment fee.
PETRIE is charged with conspiring to distribute 28 grams or more of crack, a quantity of cocaine and a quantity of marijuana. He’s also charged with possession with intent to distribute 28 grams or more of crack, cocaine, and marijuana; and being a felon in possession of a firearms.
If convicted of the conspiracy count, and the possession with intent to distribute 28 grams or more of crack count, PETRIE faces a statutory mandatory minimum sentence of five years, up to a maximum of forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment for each count. For the possession with intent to distribute cocaine count, he faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. For the possession with intent to distribute marijuana count, he faces not more than 5 years imprisonment, a fine not to exceed the greater of that authorized in accordance with the provisions of Title 18 of the United States Code or $250,000. If convicted of being a felon in possession of a firearm, PETRIE faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release. For each count, he also faces payment of a mandatory $100 special assessment fee.
JOHNSON is charged with conspiring to distribute 28 grams or more of crack, a quantity of cocaine, a quantity of fentanyl, a quantity of heroin, and a quantity of marijuana. He’s also charged with possession with intent to distribute 28 grams or more of crack, cocaine, fentanyl, heroin, and marijuana.
If convicted of the conspiracy count, and possession with intent to distribute 28 grams or more of crack count, JOHNSON faces a statutory mandatory minimum sentence of five years imprisonment, up to a maximum of forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment for each count. For the possession with intent to distribute cocaine, fentanyl, and heroin counts, he faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. For the possession with intent to distribute marijuana count, he faces not more than 5 years imprisonment, a fine not to exceed the greater of that authorized in accordance with the provisions of Title 18 of the United States Code, or $250,000 on each count. For each count he also faces payment of a mandatory $100 special assessment fee.
MAJOR, JR. is charged with conspiring to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, a quantity of crack, a quantity of methamphetamine, and a quantity of marijuana. He’s also charged with possession with intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, a quantity of crack, a quantity of methamphetamine, and a quantity of marijuana, being a felon in possession of a firearm, and being a person convicted of domestic violence in possession of a firearm.
If convicted of the conspiracy count, and the possession with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin counts, MAJOR, JR. faces a statutory mandatory minimum sentence of five years, up to a maximum of forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment for each count. For the possession with intent to distribute crack, and methamphetamine counts, he faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment for each count. For the possession with intent to distribute marijuana count, he faces not more than 5 years, a fine not to exceed the greater of that authorized in accordance with the provisions of Title 18 of the United States Code or $250,000. If convicted of being a felon in possession of a firearm and a person convicted of domestic violence in possession of a firearm, MAJOR, JR. faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release on each count. For each count, he also faces payment of a mandatory $100 special assessment fee.
MOSES is charged with being a felon in possession of firearms. If convicted, MOSES faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release. For each count, he faces payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the superseding indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
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.
This case was investigated by the federal Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Gretna Police Department, Orleans Parish Sheriff’s Office, Plaquemines Parish Sheriff’s Office, Kenner Police Department, and U.S. Border Patrol. The prosecution is being handled by Assistant United States Attorney Christopher Usher.
Fort Stockton Man Found Guilty of Distributing Child PornographyRead the Press Release
PECOS – Yesterday, a federal jury convicted Thomas Scott Perkins, 31, of Fort Stockton on child pornography charges.
According to court documents and evidence presented at trial, Homeland Security Investigations (HSI) agents determined through investigation that Perkins was sharing child pornography online. A search warrant was executed at Perkins’ residence and multiple hard drive devices were discovered that contained 95,316 images and 1,237 videos of child pornography.
Perkins was found guilty of one count of distribution of child pornography and eight counts of possession of child pornography. He is scheduled for sentencing on October 24, 2022 and faces up to 20 years in prison on the distribution count and up to 10 years in prison on each of the possession counts. Perkins has remained in federal custody since his arrest on September 14, 2020.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and HSI Special Agent in Charge Frank Burrola, El Paso Division, made the announcement.
HSI, with assistance from the FBI, the U.S. Department of Agriculture and the Department of Public Safety, is investigating the case.
Assistant U.S. Attorneys Scott V. Greenbaum and Kevin Cayton are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former officer sent to prison for accepting bribeRead the Press Release
McALLEN, Texas – A 48-year-old Mission resident has been ordered to federal prison after allowing drugs into the country, announced U.S. Attorney Jennifer B. Lowery.
Oziel Cantu is a former Customs and Border Protection (CBP) officer. He pleaded guilty April 1, 2021, to one count of bribery of a public official.
Today, U.S. District Judge Micaela Alvarez handed Cantu a 120-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted this type of case bothers her every single time and it is very difficult to understand the situation in which Cantu put himself. She informed him that everyone in the court room has been in a difficult financial situation before and yet none of them resorted to crime. Judge Alvarez stated that she would not let law enforcement corruption slide.
The investigation began after authorities suspected Cantu had contacted members of a Mexican drug trafficking organization to offer his assistance in smuggling narcotics through the Pharr Port of Entry where he was stationed for payment.
During an undercover operation, Cantu had agreed to assist with importing 40 kilograms of cocaine in exchange for a cash payment of $15,000. Cantu provided instructions on how to drive a vehicle containing the narcotics through a specific inspection lane during the early morning hours on Aug. 19, 2020. Once there, Cantu would let the vehicle pass into the United States.
Cantu was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Homeland Security - Office of Inspector General and CBP – Office of Professional responsibility conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Former Sales Representative Convicted in Compound Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative was convicted by a federal jury for his role in a scheme to defraud public health benefits programs by billing for medically unnecessary compound prescriptions, U.S. Attorney Philip R. Sellinger announced today.
Matthew Puccio, 40, of Randolph, New Jersey, was convicted on July 19, 2022, of conspiracy to commit health care fraud following a seven-day jury trial before U.S. District Judge John Michael Vazquez.
According to documents in this case and the evidence at trial:
Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compound drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
From November 2014 to March 2016, Puccio participated in a conspiracy that involved submitting fraudulent prescriptions for compound medications to public health benefits programs. Marketing companies recruited and paid sales representatives, such as Puccio, to obtain compound medications for themselves and others regardless of medical necessity, targeting health plans that reimbursed for compound medications at high rates.
Puccio exploited this opportunity through working as a sales representative for several compounding pharmacies. He targeted individuals who had health plans that covered compound medications and then convinced those individuals to obtain prescriptions for compound medications, regardless of medical necessity. Puccio and others induced two New Jersey-based physicians to sign medically unnecessary prescriptions for beneficiaries that Puccio and others had recruited.
Once the prescriptions were written, they were filled by the compounding pharmacies with which Puccio worked. The compounding pharmacies would then receive reimbursement from the health plans and would pay Puccio a percentage of the reimbursement amount. Puccio and his conspirators caused a significant loss to public health benefits programs.
For the charge of conspiracy to commit health care fraud, Puccio faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 29, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Shawn Barnes of the Criminal Division in Newark.
Former Postal Worker Pleads Guilty then Sentenced to Probation and Community Service for Obstruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SIERRA HUDSON, age 35, of New Orleans, Louisiana, pled guilty to obstruction of mail in violation of Title 18, United States Code, Section 1701 on July 15, 2022. HUDSON was sentenced to five years’ probation, 100 hours of community service, a $1,000.00 fine, and a $100 mandatory special assessment fee by United States District Court Judge Ivan L.R. Lemelle.
According to court documents, HUDSON was employed by the United States Postal Service as a Letter Carrier and was assigned to work at the Central Carrier Station, New Orleans, LA 70122. From May 2020 through July 2020, HUDSON knowingly and willfully obstructed the passage of mail in that she unlawfully secreted, destroyed, detained, and delayed approximately 640 First Class postcards and 573 pieces of political mail that were recovered from a residential trash can. HUDSON also unlawfully secreted, detained, and delayed approximately two First Class letters, 535 advertising flyers, and 20 nonprofit small parcels in the trunk of her personal vehicle.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Rachal Cassagne.
Former Federal Employee Sentenced to Eight Years in Prison for Receipt of Child PornographyRead the Press Release
WASHINGTON – Gary Lee Peksa, a former federal employee, was sentenced today to eight years in prison for repeatedly connecting his cellphone to a wireless network at the Library of Congress and searching for, downloading, and viewing images and videos depicting the sexual abuse of young children.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and J. Thomas. Manger, Chief of the U.S. Capitol Police.
Peksa, 56, of Mechanicsville, Maryland, pleaded guilty in December 2021, in the U.S. District Court for the District of Columbia, to one count of receipt of child pornography. He was sentenced by the Honorable Richard J. Leon. Following his prison term, Peksa will be placed on 20 years of supervised release. He also will be required to pay $47,000 in restitution to victims depicted in the child pornography he received and possessed. He also must register as a sex offender for at least 15 years.
According to court documents, Peksa was a sheet metal mechanic who worked for the Architect of the Capitol at the Library of Congress. On various dates, between Oct. 11, 2018 and July 29, 2019, he used his cellphone and the public wireless network at the Library of Congress to access websites that contained images and videos of child pornography. He did so in areas including a bathroom, his office, and a breakroom. Additionally, Peksa used his personal laptop, cellphone, and WiFi service to access similar materials at home.
Peksa’s conduct came to light after the Library of Congress network security operations center notified investigators of web traffic on the Library of Congress public wireless network of browsing associated with child pornography and the sexual exploitation of children. In July 2019, Capitol Police seized Peksa’s cellphone and laptop. The cellphone had 199 images that showed minor boys and girls exposing their genitals and/or engaging in sexual activity. The laptop had 215 files that depicted young girls being sexually abused and assaulted.
Peksa was arrested on Oct. 21, 2019.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force and the U.S. Capitol Police. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Manger commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force and the U.S. Capitol Police. They also acknowledged the assistance provided by the National Center for Missing and Exploited Children. They expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including former Paralegal Specialist Kenny Nguyen, and Assistant U.S. Attorney Amy E. Larson, who prosecuted the case.