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1 September 2022
Syracuse Man Sentenced to Prison for Drug TraffickingRead the Press Release
SYRACUSE, NEW YORK – Marquail Jones, age 33, of Syracuse, was sentenced yesterday to 96 months in prison for distributing cocaine, cocaine base and fentanyl. The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Kevin P. Bruen, Superintendent of the New York State Police.
In previously pleading guilty, Jones admitted he trafficked cocaine, cocaine base and fentanyl from Syracuse to the areas of Glens Falls and Plattsburgh, New York. Jones admitted that when police pulled him over in Plattsburgh on December 18, 2020, he possessed 82 grams of cocaine, 8.8 grams of cocaine base and 38 grams of fentanyl that he intended to distribute. Jones also admitted that he had distributed another 82 grams of cocaine just before he was pulled over.
Senior United States District Judge Norman A. Mordue also imposed a 3-year term of supervised release, which will start after Jones is released from prison.
This case was investigated by the DEA and New York State Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Surgeon Pleads Guilty to Federal Charge for Accepting $3.3 Million in Illicit Payments to Perform Spinal Surgeries at Corrupt HospitalRead the Press Release
LOS ANGELES – A neurosurgeon pleaded guilty today to a federal criminal charge for accepting approximately $3.3 million in bribes for performing spinal surgeries at a now-defunct Long Beach hospital whose owner later was imprisoned for committing a massive workers’ compensation system scam.
Lokesh Tantuwaya, 55, of San Diego, pleaded guilty to one count of conspiracy to commit honest services fraud and to violate the federal Anti-Kickback statute. He has been in federal custody since May 2021 after he was found to have violated the terms of his pretrial release.
According to his plea agreement and statements at today’s change-of-plea hearing, from 2010 to 2013, Tantuwaya accepted money from Michael Drobot, who owned Pacific Hospital in Long Beach, in exchange for Tantuwaya performing spinal surgeries at that hospital. The bribe amount varied depending on the type of spinal surgery.
Pacific Hospital specialized in surgeries, especially spinal and orthopedic procedures. Drobot conspired with doctors, chiropractors and marketers to pay kickbacks and bribes in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system. During its final five years, the scheme resulted in the submission of more than $500 million in medical bills for spine surgeries involving kickbacks.
Tantuwaya entered into contracts with Drobot and Drobot-owned companies. Tantuwaya admitted in his plea agreement that he knew or deliberately was ignorant that the payments were being given to him in exchange for bringing his patient surgeries to Pacific Hospital.
In furtherance of the scheme, Tantuwaya met with Drobot and Drobot’s employees. Tantuwaya further admitted to depositing bribe checks into his bank accounts.
Tantuwaya admitted that he knew the receipt of money in exchange for the referral of medical service was illegal and that he owed a fiduciary duty to his patients to not accept money in exchange for taking their surgeries to Pacific Hospital.
In total, Tantuwaya received approximately $3.3 million in illegal payments.
In April 2013, law enforcement searched Pacific Hospital, which was sold later that year, bringing the kickback scheme to an end.
To date, 23 defendants have been convicted for participating in the kickback scheme.
United States District Judge Josephine L. Staton scheduled a December 9 sentencing hearing, at which time Tantuwaya will face a statutory maximum sentence of five years in federal prison.
The FBI, IRS Criminal Investigation, United States Postal Service Office of Inspector General, and the California Department of Insurance investigated this matter.
Assistant United States Attorneys Joseph T. McNally and Billy Joe McLain of the Violent and Organized Crime Section are prosecuting this case.
St. Peters woman accused of $200,000 pandemic loan fraudRead the Press Release
ST. LOUIS – A grand jury on Wednesday indicted a woman from St. Peters, Missouri on charges accusing her of committing a $204,095 fraud involving a loan program intended for small businesses to continue to pay their employees during the pandemic.
The indictment says that from June 2020 through April 2021, Trashunda M. Harrison, 36, submitted multiple applications for Paycheck Protection Program loans in the names of three businesses: The Quiet Space LLC, Blow LLC and StrutN 80s LLC, as well as in her own name as a sole proprietor. On the application, Harrison made false representations about the payroll and income of the businesses and submitted fraudulent tax forms to support her false claims. On applications for additional loans, she falsely claimed to have used the first loan for payroll and other business expenses.
Harrison spent the PPP money on unapproved purposes, including shopping, dining, rent and payments to individuals who had no affiliation with the companies, the indictment says.
Harrison was indicted on two counts of bank fraud and seven counts of wire fraud. Each bank fraud charge carries a potential penalty of 30 years in prison, a $1 million fine, or both. The wire fraud charges carry a penalty of up to 20 years in prison, a $250,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
St. Martinville Man Sentenced for Possession of MethamphetamineRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Irvin J. Butler, 41, of St. Martinville, Louisiana, was sentenced today. United States District Judge Robert R. Summerhays sentenced him to 151 months (12 years, 7 months) in prison, followed by 5 years of supervised release, on drug trafficking charges. Butler pleaded guilty on May 20, 2022 to possession with intent to distribute methamphetamine.
On March 26, 2019, agents with the United States Postal Inspection Service intercepted a suspicious package which had been mailed from Arizona to an address in Lafayette, Louisiana. Agents deployed a canine trained in detecting narcotics who positively alerted on the seized package. A search warrant was obtained and later that day, agents conducted a controlled delivery of the package to the residence at the location specified by the sender. After the package was delivered, a female appeared and took possession of it. Agents were able to execute the search warrant and confirmed that the package contained approximately 1,858 grams of methamphetamine.
Further investigation by agents revealed that Butler had made two wire transfers to an individual in Arizona and had been tracking the package via the internet after it had been placed in the mail in Arizona. The female who took possession of the package admitted to agents that she had been dating Butler and he had packages sent to her residence. In addition, Butler sent a text message to the girlfriend that the package would be delivered to her residence that day. The seized substance was sent to the Acadiana Criminalistics Laboratory for analysis and the results confirmed that the substance was in fact methamphetamine.
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
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South Windsor Woman Sentenced to 5 Years in Federal Prison for Defrauding Immigrant Clients, USCISRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KHATIJA KHAN, 41, of South Windsor, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for conspiracy and fraud offenses related to a scheme through which individuals seeking immigration services were defrauded.
According to court documents and statements made in court, Khan and her husband, Babar Khan, operated JLLAS CORP. and EIMAAN LLC, which were created to provide services to clients involved in proceedings with U.S. Citizenship and Immigration Services (“USCIS”). From 2015 to 2020, the Khans recruited clients who sought some form of immigration status, relief or benefit. Many of these clients were aliens residing in the U.S. without legal status and had limited education, a limited ability to understand English, and little to no knowledge of the documents that the Khans were filing with USCIS on their behalf.
Khatija Khan represented herself as an attorney with a background in immigration matters, even though she was not an attorney. The Khans prepared petitions and applications for their clients that contained information that they knew to be false. They also fabricated false documents to support their clients’ applications with USCIS without their clients’ knowledge. They then mailed, or caused to be mailed, these fraudulent applications and documents to USCIS, where they were received and made part of the official Alien file of each respective client.
Many of the Khans’ clients received no relief from USCIS despite paying the Khans significant amounts of money. To generate fees from clients, Khatija Khan filed applications with USCIS even when the submissions lacked merit or a legitimate basis.
Khatija and Babar Khan were arrested on December 19, 2019. After her arrest, Khatija Khan continued to defraud multiple clients.
Victims identified to date have lost at least $326,212 as a result of this scheme. Judge Underhill ordered Khatija Kahn to pay full restitution.
On November 19, 2021, Khatija Khan pleaded guilty to one count of conspiracy to commit mail fraud and one count of mail fraud.
Khatija Khan, who is released on bond, is required to report to prison on December 14.
On February 28, 2022, Babar Khan pleaded guilty to one count of conspiracy to commit mail fraud and one count of making and subscribing a false tax return. He is scheduled to be sentenced tomorrow.
This matter is being investigated by Homeland Security Investigations (HSI), and the Internal Revenue Service – Criminal Investigation Division, with assistance from U.S. Citizenship and Immigration Services. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
South Florida Federal Judge Orders Prison Time for Former Pharmatech CEORead the Press Release
Miami, Florida – A former owner and CEO of a Broward County drug manufacturing company who lied to the FDA and allowed contaminated products to make their way to pediatric hospitals was sentenced yesterday to 37 months in federal prison.
Raidel Figueroa co-owned Pharmatech, LLC, a company that from 2016 to 2017 manufactured and distributed the laxative Diocto Liquid. In July 2016, as part of a larger investigation into an outbreak of infections linked to bacteria known as Burkholderia cepacia (“B. cepacia”), the FDA inspected Pharmatech’s operations. Typically found in water and soil, and transmissible through contaminated medications, B. cepacia can lead to respiratory and other infections for people with weak immune systems, chronic lung disease, and other conditions.
The FDA notified Figueroa in August 2016 that a sample taken from Pharmatech’s water system had tested positive for B. cepacia. Figueroa assured the FDA that Pharmatech would re-engineer its purified water system to prevent future contaminations.
In March 2017, the FDA again inspected Pharmatech’s operations and asked Figueroa to disclose all products that the company had manufactured since its supposed water system upgrade. Figueroa lied to the FDA investigators by knowingly excluding Diocto Liquid from its products distribution list (even though Pharmatech shipped over 7,000 units of the drug earlier that month) and by telling the FDA that Pharmatech’s new water system had met “acceptance criteria,” which was not true.
In July 2017, the CDC notified the FDA of multiple B. cepacia infections in pediatric patients at Stanford Children’s Health Lucile Packard Children’s Hospital in Palo Alto, California and Johns Hopkins Children’s Center in Baltimore, Maryland. The FDA investigated, collecting bottles of Diocto Liquid from these medical centers. Several of the bottles contained unacceptable amounts of bacteria, yeast, and mold. Some bottles tested positive for B. cepacia. The FDA’s investigation revealed that Pharmatech had distributed those same bottles in March 2017 – something that Figueroa knowingly failed to disclose to the FDA.
In June, Raidel pled guilty to conspiring to defraud the FDA, falsifying records in an FDA investigation, obstructing proceedings before the FDA, and distributing adulterated drugs.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Justin C. Fielder, Special Agent in Charge, Food and Drug Administration (FDA) Office of Criminal Investigations Miami Field Office, announced the sentence imposed by Senior United States District Judge James I. Cohn.
The FDA Office of Criminal Investigations, Miami Field Office investigated the case. Assistant U.S. Attorney Deric Zacca is prosecuting this case, with the assistance of Laura Akowuah, from FDA’s Office of Chief Counsel.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60033.
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Shreveport Businesswoman Pleads Guilty in CARES Act Fraud SchemeRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Janola Massaquoi, 41, of Shreveport, Louisiana, pleaded guilty today before Chief United States District Judge S. Maurice Hicks, Jr. to making false statements to a federal agency.
In March 2020 Congress enacted the Coronavirus Aid, Relief and Economic Security (CARES) Act which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. As part of the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL), which were low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act also provided authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
According to evidence presented to the court, Massaquoi formed the Jane Elizabeth Education Group (JEEG) in 2018 and also served as the president of a beauty career training company. In 2020, Massaquoi applied to the SBA for an EIDL in the name of JEEG d/b/a Company 1 seeking approximately $500,000 in EIDL Program funds. At the same time, she applied for a PPP loan in the name of JEEG d/b/a Company 1 seeking $178,750.
On or about April 20, 2020, as part of the EIDL application process, Massaquoi electronically submitted to the SBA a Loan Authorization and Agreement in which she certified to the SBA that “[JEEG] will not, without the prior written consent of SBA, make any distribution of Borrower’s assets, or give any preferential treatment, make any advance, directly or indirectly, by way of loan, gift, bonus, or otherwise to any owner or partner…” Massaquoi also certified that the loan funds would be used solely as working capital for JEEG.
Both loan applications were subsequently approved. Based on Massaquoi’s material misrepresentations set forth in the false Loan Authorization and Agreement, the SBA disbursed approximately $500,000 in EIDL benefits to a bank account held by Company 1. On April 23, 2020, approximately $178,750 in PPP loan benefits were disbursed to a bank account held by Company 1.
In reality and unbeknownst to the SBA, Massaquoi intended to make a large advance directly to herself and did not intend to use the EIDL funds solely as working capital for JEEG. After obtaining the loan benefits, Massaquoi transferred funds from Company 1’s bank account to other bank accounts she personally controlled and used the funds for a variety of personal expenses including a down payment on the purchase of a personal residence and mortgage payments. Massaquoi also withdrew over $30,000 in cash, transferred over $50,000 to friends and family members, and used approximately $83,000 to fund her personal investment and retirement accounts. In total, Massaquoi used $250,000 of the EIDL proceeds for her personal use.
“This defendant took advantage of taxpayer dollars at one of the most vulnerable times in American history,” stated U.S. Attorney Brandon B. Brown. “Over the last few years, small businesses have struggled to survive during the pandemic. Massaquoi exploited an opportunity given by the government to provide legitimate financial assistance to said businesses. Individuals who commit such fraud will be investigated and ultimately prosecuted. We will continue to work with our federal partners who have allocated their investigative resources toward combating this type of fraud.”
Massaquoi faces a sentence of not more than 5 years in prison, 3 years of supervised release, and a fine of up to $250,000. Sentencing has been set for January 11, 2023.
The case was investigated by the Department of Treasury-Inspector General for Tax Administration and Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Seth D. Reeg.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Scranton Doctor Sentenced to 140 Months’ Imprisonment for Unlawfully Prescribing Controlled Substances and Health Care FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton physician, Kurt Moran, age 70, was sentenced yesterday by United States District Court Judge Robert D. Mariani to 140 months’ imprisonment for unlawful distribution of controlled substances and engaging in a health care fraud scheme.
According to the United States Attorney Gerard M. Karam, Moran previously pleaded guilty to crimes related to the unlawful distribution of a controlled substance (Subsys), maintaining drug-involved premises, and health care fraud. As part of his plea agreement, Moran also agreed that he knowingly and intentionally distributed oxycodone and fentanyl, Schedule II controlled substances, outside the usual course of professional practice and not for legitimate medical purposes, and that the death of one of his patients resulted from the use of the substances.
With respect to the health care fraud scheme, Moran admitted that between December 2014 and through 2017, he conspired with others to receive bribes in exchange for prescribing the drug Subsys (sublingual fentanyl spray) to his patients. Subsys is a transmucosal immediate release fentanyl (TIRF) drug. It is approved by the Food and Drug Administration (FDA) only for use in cancer patients suffering from breakthrough cancer pain. Moran admitted that Insys Therapeutics paid him approximately $140,000 over a two-year period to prescribe Subsys to his patients for pain not associated with cancer. In order to conceal and disguise that kickbacks and bribes were being paid to Moran to prescribe Subsys, the company falsely designated the payments to Moran as “honoraria” for purportedly providing educational presentations regarding Subsys. Moran prescribed millions of micrograms of the sublingual fentanyl spray to patients with no cancer diagnosis and not suffering from breakthrough cancer pain.
Moran surrendered his DEA registration on September 18, 2020. His license to practice medicine in the Commonwealth of Pennsylvania was suspended on October 7, 2020.
Judge Mariani ordered Moran to serve 3 years of supervised release upon release from custody. Forfeiture of illicit proceeds were also ordered forfeited by Judge Mariani and included unlawful proceeds in the amount of $140,000; his medical license; the contents of a bank account in the amount of $12,570.45; and $5,430.00 seized from Moran in January 2018.
Restitution in the amount of $6,586.00 related to funeral expenses was also ordered.
The case was investigated by the Drug Enforcement Administration (DEA) located in Scranton, the United States Postal Service – Office of Inspector General, U.S. Department of Labor – Office of Inspector General, and the Pennsylvania Attorney General’s Office. Assistant United States Attorneys Michelle Olshefski and Michael Consiglio prosecuted the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
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Round Rock Man Sentenced to 10 Years in Prison for Fraud SchemesRead the Press Release
AUSTIN – Last week, a federal judge sentenced Okanlawon Azeez Egerongbe, aka Tony Kunle, Alex Tohee, 37, of Round Rock to 120 months in prison and to pay $633,520 in restitution for his role in a money laundering scheme.
On May 18, 2021, Egerongbe pleaded guilty to one count of conspiracy to commit money laundering. According to court records, Egerongbe knowingly laundered millions of dollars from victims that he obtained through various fraud schemes. The frauds included romance, business email compromise (BEC), unemployment insurance, and investment scams all designed to trick innocent victims through false pretenses. The amount of attempted and actual loss from the conspiracy was at least $3.5 million. To perpetuate the frauds, Egerongbe used fake passports to open multiple bank accounts in Austin. He would then structure withdrawals into smaller amounts to avoid a transaction reporting requirement. Many victims faced serious financial hardship from these schemes.
“My office will continue to pursue fraudsters and identity thieves who use the internet to prey on vulnerable victims online,” said U.S. Attorney Ashley C. Hoff. “That includes the money launderers who enable these transnational criminal networks by concealing and transferring their ill-gotten gains. The tragic suicide of one of the romance fraud victims in this case, who suffered the betrayal and the loss of so much hard-earned money, underscores the real-world impact of these online scams.”
“Let this sentence serve as a notice that Homeland Security Investigations (HSI) is committed to actively investigating individuals who prey on the vulnerable to perpetuate financial crimes,” said Acting Special Agent in Charge Craig Larrabee, HSI San Antonio. “These types of crimes have devastating effects on the victims and our financial institutions. HSI will continue to aggressively pursue cyber criminals and financial fraudsters to the full extent of the law and will fight to recover and legally return victim’s funds to their rightful owner.”
“The U.S. Postal Inspection Service (USPIS) has a long and proud history of protecting the U.S. Mail and investigating fraud schemes,” said Scott Fix, Inspector in Charge of the Houston Division of the USPIS. “Okanlawon Egerongbe devised multiple schemes to defraud innocent people and misused Postal Service products and the U.S. Mail to facilitate his crime. Postal Inspectors will continue to work with our law enforcement partners, including HSI Austin, to ensure anyone using the U.S. Mail for fraudulent financial gains are brought to justice.”
HSI and the USPIS investigated the case. Assistant U.S. Attorneys Keith M. Henneke and Michael C. Galdo prosecuted the case.
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Rockford Man Sentenced to More than Five Years in Federal Prison for Illegally Possessing Firearm “Switch” DevicesRead the Press Release
ROCKFORD — A Rockford man has been sentenced to five and a half years in federal prison for illegally possessing firearm “switch” devices.
JAVAUGHN A. HIXSON, 23, possessed and sold four of the devices, also known as “Glock switches,” in Rockford from October to December of 2020. Each conversion device is designed and intended to convert a firearm into a machine gun capable of automatically firing more than one shot with a single pull of the trigger.
Hixson also illegally possessed a loaded handgun with an extended magazine. On Jan. 4, 2021, Hixson was a passenger in a vehicle that was stopped by the Rockford Police Department. Hixson ran from the officers and tossed the gun into the snow. Hixson had previously been convicted of a felony weapons offense and was prohibited by federal law from possessing a firearm.
Hixson pleaded guilty earlier this year to one count of illegally possessing machine guns and one count of illegally possessing the firearm.
U.S. District Judge Iain D. Johnston imposed the 66-month prison sentence on Aug. 25, 2022, after a hearing in federal court in Rockford. In a written sentencing order, Judge Johnston stated, “The sole and exclusive purpose of Glock switches, which are easily manufactured, is to convert an already dangerous firearm into an extremely dangerous machinegun. The dangerousness manifests itself not only in the sheer number of bullets that can be emptied from the magazine in the blink of an eye but also in the resulting lack of control of the firearm when discharging it. The damage a machinegun can inflict is enormous. The damage — intended and unintended — a handheld machinegun can inflict is just as great. This offense involved 9 Glock switches, some of which Mr. Hixson sold believing they would be resold to others.”
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Talia Bucci.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Retired Jacksonville School Teacher Sentenced to Nearly 6 Years in Federal Prison for Possessing Videos and Images Depicting the Sexual Abuse of ChildrenRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Michael Paul Gillis (65, Jacksonville) to 5 years and 10 months in federal prison for possessing images and videos depicting the sexual abuse of young children. The court also ordered Gillis to serve a 10-year term of supervised release, register as a sex offender, and forfeit his computer media. Gillis had pleaded guilty on April 27, 2022.
According to court documents and information provided in court, FBI agents were investigating individuals who were using a particular online network to share child sexual abuse materials. The investigation revealed that Gillis, a retired Jacksonville public school teacher, had accessed this network from his home.
On February 2, 2022, FBI agents executed a search warrant at Gillis’s home. Gillis, who was home at the time, admitted that he had been accessing child sexual abuse materials using the internet for the past 15 years, and that he had viewed materials depicting children as young as 3 years old. Gillis also stated that he viewed these images and videos while employed as a schoolteacher and would fantasize about touching children inappropriately but claimed that he had never acted on it. He acknowledged that he would continue to seek out these materials online because he would have “a hard time” stopping this behavior because it is an “urge.” During the execution of the search warrant, FBI personnel seized several computers belonging to Gillis that contained at least 2,000 images and 150 videos depicting infants, toddlers, and other young children being sexually abused.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It 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.
Repeat Felon Sentenced to 85 Months in Federal Prison After Being Found Unconscious in his Running Vehicle while Illegally Possessing a FirearmRead the Press Release
INDIANAPOLIS – Jerry Poindexter, 27, of Indianapolis, was sentenced to 85 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on August 31, 2021, officers with the Indianapolis Metropolitan Police Department (IMPD) responded to a report of a personal injury accident on West Morris Street, in Indianapolis. Officers found Poindexter in the driver’s seat of his vehicle unconscious and slumped over the center console. The vehicle was stopped and still idling. An officer saw a black extended handgun magazine sticking out of Poindexter’s front right side that he believed was inserted into a handgun.
The officer also saw that vehicle was locked, still in drive and was being held in place by bushes or shrubbery. The officer tried several times to wake Poindexter but was unsuccessful, forcing the officer to break out the driver’s side window, to secure the vehicle. When officers opened the door and pulled Poindexter out of the vehicle, they found a handgun with an extended magazine in Poindexter’s right front waistband. The firearm was identified as a SCCY, model CPX-1, 9mm Luger, semi-automatic handgun with an extended magazine.
Poindexter regained consciousness after being treated by medics and initially provided officers with a false name. Once officers were able to positively identify Poindexter, they learned he had several warrants for his arrest. Poindexter was transported to the hospital for treatment and while enroute informed the medics that he had taken Xanax. Officers searched the front passenger seat of Poindexter’s vehicle and found a small baggie of suspected heroin. Poindexter was later arrested.
Poindexter has four previous state court felony convictions, including, dealing methamphetamine and marijuana, criminal recklessness, and forgery. Poindexter is prohibited from possessing firearms because of these prior felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, made the announcement.
ATF investigated the case in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Poindexter be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Recidivist Florida Fraudster Convicted at Trial for Financial Frauds, Aggravated Identity Theft, and Possession of Stolen MailRead the Press Release
MOBILE, AL – A federal jury convicted a Tampa, Florida man this week for conspiring to commit bank fraud, unlawfully possessing fake and stolen identification documents, possessing counterfeit and forged checks, aggravated identity theft, and possessing stolen mail.
According to court documents and evidence presented at trial, Timothy Howard Buchanan, 39, was arrested by deputies with the Baldwin County Sheriff’s Office during a traffic stop in February 2022. Buchanan was traveling northbound on I-65 with his codefendants, Tyre Dayshawn Crawford and Jaleeshia Deanna Robinson. Deputies initiated the traffic stop because the rental car in which the defendants were traveling had illegal tint applied to its side windows. During the stop, deputies saw drugs in plain view in the car, which led them to search it. Inside the car, deputies found dozens of counterfeit and stolen checks worth more than $300,000. The checks corresponded to victims in multiple states who had their checks stolen from the mail in Alabama and Florida. Deputies also recovered fake and stolen driver’s licenses, a scanner/printer, a check encoder, and a stack of blank check paper. The driver’s licenses had names matching those listed on the counterfeit checks and pictures matching Buchanan’s description.
Deputies and agents with the U.S. Secret Service interviewed Buchanan, and he confessed to his role in the scheme, which involved defrauding banks by attempting to cash counterfeit checks using fake and stolen driver’s licenses. The counterfeit checks that Buchanan possessed contained the personal identifying information of numerous victims, including names, addresses, bank account numbers, and signatures. Buchanan confessed that for his efforts, he would receive 10% of the illegal proceeds of the fraud scheme, which occurred over a period of several months in 2021 and 2022. Buchanan has previously been convicted of felony check fraud and grand theft in Hillsborough County, Florida on several occasions, including as recently as August 2021.
For his aggravated identity theft conviction, Buchanan faces a mandatory term of two years in federal prison, which must run consecutively to any prison term that Buchanan receives for his other crimes. Buchanan faces up to 30 years in federal prison for his bank fraud conspiracy conviction. He will be sentenced by United States District Judge Kristi K. DuBose in December 2022.
Crawford and Robinson each pleaded guilty to bank fraud conspiracy and aggravated identity theft. Judge DuBose will sentence them in September 2022.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.The Baldwin County Sheriff’s Office, the U.S. Secret Service, and the U.S. Postal Inspection Service investigated the case. The Tampa Police Department and the Hillsborough County Sheriff’s Office provided substantial assistance in the investigation.
Assistant U.S. Attorneys Justin Roller and Lydia Lucius are prosecuting the case on behalf of the United States.
Rapid City Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on August 16, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Javier Clark Moreno, age 41, was sentenced to 17 ½ years in federal prison, followed by eight years of supervised release. Moreno was ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100 and will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Moreno, formerly the Captain of the Salvation Army of the Black Hills, was arrested and federally indicted following two Cybertips from Kik Messenger. An examination of Moreno’s Kik account revealed over 10,000 recordings and images of child pornography including sadism and penetration of infants and toddlers. Moreno later admitted to viewing and collecting child pornography since the early 2000’s.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Moreno was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on August 29, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Travis Spotted Wolf, age 30, was sentenced to six years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Spotted Wolf was indicted by a federal grand jury in December of 2021 and pleaded guilty in April 2022. The conviction stems from Spotted Wolf, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Taurus, model PT111 Millennium Pro G2, 9mm caliber, semi-automatic pistol, which was found after Spotted Wolf came into contact with law enforcement in August of 2021.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Spotted Wolf was immediately remanded to the custody of the U.S. Marshals Service.
Raleigh County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
BECKLEY, W.Va. – Austin Michael Light, 21, of Beaver, pleaded guilty today to possession of prepubescent child pornography.
According to court documents and statements made in court, on January 27, 2021, law enforcement officers received a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC) regarding possible child pornography uploaded to a Google Mail account. The investigation led officers to Light. On August 18, 2021, investigators executed a search warrant at Light’s residence and seized several electronic devices including Light’s cell phone.
A forensic analysis of Light’s cell phone revealed nine images and 49 videos of minors and prepubescent minors, including infants, engaged in sexually explicit conduct. Several of the videos were of adults sexually assaulting prepubescent minors and of minors engaged in sadistic or masochistic conduct. Light admitted to downloading the child pornography from the internet from January 2020 until at least August 18, 2021. Light further admitted to attempting to upload a video depicting child pornography to the internet on January 26, 2021.
Light is scheduled to be sentenced on December 22, 2022, and faces a maximum penalty of 20 years in prison, five years to a lifetime of supervised release, and a $250,000 fine. Light must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Julie White is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
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. 5:21-cr-259.
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Purported Surgeon Sentenced to 9 Years in Federal Prison for Romance Scam Involving Online Dating WebsitesRead the Press Release
TALLAHASSEE, FLORIDA – Brian Brainard Wedgeworth (a/k/a “Dr. Brian Anderson,” a/k/a “Dr. Anthony Watkins,” a/k/a “Dr. Brian Adams,” a/k/a “Dr. Edward Chen,” a/k/a “Dr. Brian Chris,” a/k/a “Dr. Chris Williamson,” a/k/a “Dr. Brian Christopher Williamson,” a/k/a “Dr. Brian Edmonds,” a/k/a “Dr. Brian Ammerson,” a/k/a “Dr. Brian Lamar Wilson,” a/k/a “Dr. Brian Wilson,” a/k/a “Dr. Brian Mims,” a/k/a “Dr. Brian Lamar Sims”), 47, formerly of Tallahassee, Florida, and Center Point, Alabama, was sentenced to 9 years in federal prison after pleading guilty on May 19, 2022, to twenty-five counts of wire fraud, mail fraud, aggravated identity theft, and money laundering. Jason R. Coody, United States Attorney, for the Northern District of Florida announced the sentence.
“Our citizens should not be preyed upon by fraudsters who steal through overtures of affection,” said U.S. Attorney Coody. “With the assistance of our dedicated law enforcement partners, we are committed to investigating and vigorously prosecuting those who engage in all acts of fraud. Moreover, today’s sentence should serve as a significant deterrent to criminals of like mind.”
According to court documents, between October 2016 and March 2021, Wedgeworth devised a scheme to defraud women located across the country who he met through online dating forums by falsely representing that he was a physician in order to fraudulently obtain money and property from them. In so doing, Wedgeworth made promises to the women to induce them to send him money and buy him jewelry and watches. Wedgeworth admitted to causing, or intending to cause, a total loss of over $1.3 million to over 30 women who he victimized as a result of his scheme.
“Rooting out fraudulent schemes furthered by the U.S. Mail, such as romance scams, remains a top priority for the U.S. Postal Inspection Service,” said Juan A. Vargas, Acting Inspector In Charge, U.S. Postal Inspection Service, Miami Division. “Our agency will continue to investigate those that target innocent individuals and abuse their trust for financial gain.”
Wedgeworth’s federal prison sentence will be followed by three years of supervised release. He will also be required to pay $1,161,325.82 in restitution.
The conviction and associated sentence was the result of a joint investigation conducted by the United State Postal Inspection Service and the Internal Revenue Service–Criminal Investigations. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Philipsburg woman sentenced to prison for Social Security, SNAP, and Medicaid fraud totaling more than $140,000Read the Press Release
MISSOULA — A Philipsburg woman who admitted to lying for more than 10 years about her income and resources to receive more Social Security Administration (SSA) benefits and other federal aid than she was qualified to receive was sentenced today to one year and one day in prison, followed by three years of supervised release, and was ordered to pay full restitution of $142,542, U.S. Attorney Jesse Laslovich said.
Virginia Kathleen Pearson, 56, pleaded guilty in April to false statements to a government agency.
U.S. District Judge Donald W. Molloy presided. Judge Molloy remanded Pearson into custody.
“Pearson knew she was obligated to truthfully report her income and resources but instead lied for more than a decade to boost her benefits. Supplemental Security Income and Medicaid are federal programs intended to help those truly in need and to ensure they get adequate care when they cannot afford it. Pearson’s conduct took assistance from others who were without options. We will continue to safeguard federal benefits and will investigate and prosecute those who try to exploit these programs. I want to thank Assistant U.S. Attorney Karla E. Painter, the Social Security Administration’s Office of Inspector General and the Montana Department of Health and Human Services for their work on this case,” U.S. Attorney Laslovich said.
“This sentence holds Ms. Pearson accountable for defrauding government programs. As part of her scheme, she abused the Supplemental Security Income program, the needs-based safety net for the most vulnerable among us by falsifying her true circumstances and causing SSA to improperly pay her over $101,000,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to pursue those who exploit SSA programs for personal gain. I thank our law enforcement partners for their support in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
The government alleged in court documents that in 2006, Pearson applied for Social Security Income (SSI) from the SSA and was approved for benefits in 2008. Pearson was informed of her obligation to report any change to her household income, resources and household composition. Pearson had advised she lived in a home with her husband, Doyle Pearson, and, as such, his income and resources were considered in determining the amount of SSI for which Pearson was eligible. One month after receiving her first SSA payment, Pearson reported to SSA that her husband had moved out of the home. Pearson’s SSI benefits increased significantly after SSA removed Doyle Pearson’s contributions and re-calculated Pearson’s benefits. Further, between November 2008 and December 2019, Pearson received nine cost of living adjustments and two change in payment letters detailing her obligation to report changes to her income, resources and household composition.
In August 2019, Doyle Pearson applied for Social Security retirement benefits, reported he was married and provided the same address where Pearson stated she had lived alone since September 2008.
In response, SSA conducted a redetermination and Pearson again represented she lived alone, rented a home, had one savings account and co-owned one vehicle. Pearson attested that Doyle Pearson lived at another address and that they had been separated for 15 years.
An investigation determined that Pearson’s statements were false and that the couple lived together and co-owned the house. Pearson also had unreported bank accounts and additional vehicles that were titled in her name or jointly with her husband.
Pearson made similar misrepresentations to Montana Public Assistance. In total, Pearson fraudulently obtained $101,136 from SSA, $23,116 from the Montana Department of Health and Human Services, which distributes Supplement Nutrition Assistance Program (SNAP) benefits, and $18,203 from Medicaid.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the SSA Office of Inspector General and Montana Department of Health and Human Services.
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Philips Subsidiary to Pay over $24 Million for Alleged False Claims Caused by Respironics for Respiratory-Related Medical EquipmentRead the Press Release
Philips RS North America LLC, formerly known as Respironics Inc., a manufacturer of durable medical equipment (DME) based in Pittsburgh, Pennsylvania, has agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to DME suppliers. The affected programs were Medicare, Medicaid and TRICARE, which is the health care program for active military and their families.
The settlement resolves allegations that Respironics caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the DME suppliers. Respironics allegedly gave the DME suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians.
“Paying illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “To ensure that the goods and services received by federal health care program patients are determined by their health care needs, rather than the financial interests of third parties, we will pursue any individual or entity that violates the prohibition on paying kickbacks, including DME manufacturers.”
“The people of South Carolina need to know that medical facts — not finances — drive their health care decisions,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Those who improperly use money and other things of value to induce business in violation of the Anti-Kickback Statute will be held accountable.”
“Paying kickbacks to medical equipment providers is misaligned with patient care and corrupts our nation’s health care programs including TRICARE,” said Special Agent in Charge Christopher Dillard for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Working closely with our law enforcement partners, DCIS will continue to investigate those who risk harming the welfare of our active-duty service members and seek to profit at the expense of the American taxpayer.”
“By paying kickbacks to obtain patient referrals, DME manufacturers are prioritizing financial incentives over patient needs, which undermines the integrity of federal health care programs," said Special Agent in Charge Tamala E. Miles for the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). "HHS-OIG will continue to work tirelessly with our law enforcement partners to prevent such waste of valuable taxpayer dollars."
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement provides that Respironics will pay $22.62 million to the United States, and in addition, will pay $2.13 million to the various states as a result of the impact of Respironics’ conduct on their Medicaid programs, pursuant to the terms of separate settlement agreements that Respironics has, or will enter into, with those states.
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.
The settlement resolves a lawsuit originally brought by Jeremy Orling, a Respironics’ employee, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Orling will receive approximately $4.3 million of the federal settlement amount.
This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina with assistance from the HHS-OIG and HHS Office of Investigations; DCIS; the Defense Health Agency Office of General Counsel; and the National Association of Medicaid Fraud Control Units.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela District of South Carolina.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Perry Man Sentenced to 10 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
TALLAHASSEE, FLORIDA – Stephen Lance Gamble, 46, of Perry, Florida, was sentenced to 10 years in federal prison, on August 31, 2022, after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine or 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Methamphetamine distribution is a scourge on large and small communities of our district,” stated U.S. Attorney Coody. “With our dedicated law enforcement partners, we are committed to identifying and aggressively prosecuting those who threaten our citizens’ health and safety by distributing such addictive, controlled substances. This sentence is further proof of that resolve.”
Court documents reflect that Gamble drove an individual into North Florida in a vehicle containing approximately 700 grams of methamphetamine. Gamble was also obtaining methamphetamine from two other individuals and selling the narcotics in Taylor County. Ultimately, while arresting Gamble on a federal warrant at his residence, law enforcement observed drug paraphernalia which led to them obtaining a search warrant for his residence. During the execution of that search warrant, law enforcement discovered approximately 80 grams of methamphetamine under Gamble’s pillow.
“The Taylor County Sheriff’s Office appreciates the coordinated efforts of the Drug Enforcement Administration and Federal prosecutors, along with our local partner agencies in fighting the meth epidemic that is destroying our community,” said Taylor County Sheriff Wayne Padgett. “Our office will continue to fight this ongoing battle, with the help of concerned citizens of our community. Remember, if you see something, say something.”
“The Perry Police Department is proud to partner with the Taylor County Sheriff’s Office, the Drug Enforcement Administration, the U.S. Attorney’s Office, and other Federal and State partners in a concerted effort to remove this and other dangerous criminals that continuously spread the poison of dangerous drugs to the youth and other Citizens of North Florida,” said Perry Police Chief Jamie Cruse.
Gamble’s imprisonment will be followed by five years of supervised release.
“Methamphetamine continues to be one of the most destructive drugs in our communities, posing a serious danger to the safety and health of our residents,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The DEA Miami Field Division remains committed to working with our law-enforcement partners to hold those who bring this poison into our communities accountable for their actions.”
This sentence was the result of an investigation conducted by the Taylor County Sheriff’s Office, the Perry Police Department, and the Drug Enforcement Administration. Criminal Chief Gary Milligan, of the U.S. Attorney’s Office for the Northern District of Florida, prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Perpetrator of Catfishing Scheme Charged with Extortion, Cyberstalking, and Interstate ThreatsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a three-count Indictment charging defendant SAKOYA BLACKWOOD with interstate communications with the intent to extort, cyberstalking, and extortion. The defendant was arrested yesterday and presented before U.S. Magistrate Judge Jennifer Willis in federal court in Manhattan. The case has been assigned to U.S. District Judge Jesse M. Furman.
U.S. Attorney Damian Williams said: “No one should have to fear public humiliation and financial loss from the release of personal, private information. As alleged, Sakoya Blackwood created that very fear and sought to capitalize on it for her own personal gain. I commend the victim for reporting this alleged criminal activity and encourage anyone else who believes they may have been a victim of this scheme to contact the FBI.”
FBI Assistant Director Michael J. Driscoll said: "Most people hope for a personal human connection in life, and scam artists twist that desire into illicit schemes to steal more than hearts. We believe Blackwood used tactics we allege in this indictment to blackmail and extort money from other victims. We are asking those people to contact us so we can help them but also to ensure no one else ever falls victim to Blackwood's alleged deception."
As alleged in the Indictment unsealed yesterday in Manhattan federal court and statements made in court:[1]
The defendant used multiple online identities to target wealthy and high-profile men in a catfishing and extortion scheme. In particular, as alleged in Count One, BLACKWOOD made threats against the Chief Executive Officer of a publicly traded company, identified in the Indictment as “Victim-1,” and threatened to release sexually explicit photographs and communications involving Victim-1 with the intent to extort. BLACKWOOD engaged in a campaign of harassment against Victim-1, sending numerous intimidating and threatening text messages. BLACKWOOD also used threats of economic and reputational harm from the release of the sexually explicit communications and photographs in an attempt to obtain payments from Victim-1. As indicated in the Indictment, BLACKWOOD targeted multiple other victims as part of this catfishing and extortion scheme.
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BLACKWOOD, 34, of the Bronx, New York, is charged with one count of making interstate communications with intent to extort, which carries a maximum sentence of two years in prison; one count of cyberstalking, which carries a maximum sentence of five years in prison; and one count of extortion, which carries a maximum sentence of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Mollie Bracewell and Justin Rodriguez are in charge of the prosecution.
If you believe you are a victim of this offense, please contact the FBI at 1-800-CALL FBI, and reference this case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Pennsylvania Man Found Guilty of Attempting to Entice a Minor Using the InternetRead the Press Release
United States Attorney Alison J. Ramsdell announced that Cody Wayne Hopkins, age 31, of Montgomery, Pennsylvania, was found guilty of Attempted Enticement of a Minor Using the Internet following a federal jury trial in Rapid City, South Dakota. The verdict was returned on August 25, 2022.
The charge carries a mandatory minimum sentence of ten years up to life in federal prison and/or a $250,000 fine, a mandatory minimum of five years up to lifetime supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Hopkins was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2020 Sturgis Motorcycle Rally targeting internet predators. Following multiple text messages with a person Hopkins believed to be a 13-year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Hopkins went to the pre-determined location to meet the minor, he instead was met by law enforcement agents and placed under arrest.
The undercover operation was a joint effort between the South Dakota Division of Criminal Investigation, Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins and Kelsey Blair tried the case.
A presentence investigation was ordered. A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Oregon Man Sentenced to 20 Years for Distribution of Child PornographyRead the Press Release
BOISE – Gregory Boris, 27, of Ontario, Oregon, was sentenced to 240 months in federal prison for distribution of child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, on November 22, 2019, Homeland Security Investigations (“HSI”), along with state and local law enforcement, conducted an undercover internet-based child exploitation operation in Ada County. During the operation, Boris began communicating with an undercover detective posing as a 13-year-old girl. During the communications, Boris engaged in sexually explicit conversation with the purported 13-year-old and requested sexually explicit images. Boris also distributed images and videos of child pornography to the purported 13-year-old. HSI and local law enforcement later executed a search warrant at Boris’ Ontario residence and seized the cellphone he used to communicate with the undercover detective, as well as his laptop. A forensic examination revealed child pornography on the laptop.
Chief United States District Judge David C. Nye also ordered Boris to serve 20 years of supervised release following his prison sentence, to forfeit the electronic devices that were used to commit the offense, and to pay $27,000 in restitution to the victims in the images he possessed. As a result of the conviction, Boris will be required to register as a sex offender.
“There is no higher calling for law enforcement than to protect children, and this case shows how we work effectively across state lines and with our state and local partners to remove child predators from our communities,” U.S. Attorney Hurwit said. “We will continue to devote the resources necessary to make our Project Safe Childhood program one of the best in the country.”
“The conduct that Mr. Boris chose to engage in has no place in our society, and I’m thankful for the successful partnerships our agents have developed with law enforcement agencies in Idaho and Oregon to pursue child predators wherever they may lurk,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This sentence is a valuable piece in protecting our communities, and a reminder that our combined vigilance is necessary to further defend children from exploitation.”
U.S. Attorney Hurwit, of the District of Idaho commended the cooperative efforts of HSI, Idaho State Police, Rupert Police Department, Malheur County Sheriff’s Office, and Malheur County District Attorney’s Office which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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Ocala Convicted Felon Indicted for Illegally Possessing A FirearmRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Ricky Darnell Franklin, Jr. (30, Ocala) on an indictment charging him with possessing a firearm as a convicted felon. If convicted, he faces a maximum penalty of 10 years in federal prison. Franklin had been indicted on May 24, 2022.
According to the indictment, Franklin has four prior state felony convictions, including two convictions for attempted second degree murder with a firearm (2010), shooting at or into an occupied vehicle (2010), and possession of a firearm by a delinquent (2010). On September 30, 2021, Franklin possessed a handgun. As a convicted felon, Franklin is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the City of Ocala Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Newton Man Sentenced to Ten Years in Federal Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. - A Newton man was sentenced to 120 months in federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, William Eric Chapman, 41, was found in possession of a firearm by officers of the Meridian Police Department on January 30, 2020, during an investigation into an alleged assault. Chapman had a .556 caliber rifle and a sawed-off shotgun in his motel room. Chapman has several prior felony convictions. As a convicted felon, it is contrary to federal law for Chapman to possess any firearm.
Chapman pled guilty on May 31, 2022 to possession of a firearm by a convicted felon.
The Meridian Police Department and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New York State Environmental Facilities Corporation to Pay $500,000 for Falsely Certifying that Members of Former Governors’ Staff Worked on Federal Clean Water Act GrantRead the Press Release
ALBANY, NEW YORK – The New York State Environmental Facilities Corporation (“EFC”) has agreed to pay $500,000 to resolve allegations that it falsely certified that several individuals were working at EFC in support of a federal water-quality improvement grant when, in fact, they were working directly for now-former Governors of New York in positions unrelated to that grant, announced United States Attorney Carla B. Freedman. As part of the
settlement agreement , EFC admitted that former senior EFC officials caused the state to include in federal funding requests part of these individuals’ salaries and benefits without disclosing that they were hired by, and worked for, the Executive Chamber.United States Attorney Freedman stated: “The Environmental Facilities Corporation falsely certified that employees were supporting a clean water grant when they were actually working directly for former Governors in unrelated positions. I am pleased that current EFC leadership was willing to admit what happened, resolve EFC’s liability, and implement new compliance measures that should ensure ethical and legal behavior in the future. We will continue to use all of our resources to make sure that federal grant administrators follow the rules and that clean water grant money is used to improve water quality for all New Yorkers.”
EFC is a public benefit corporation that provides funding and technical assistance to municipalities, businesses, and state agencies for environmental and public health projects in New York State. During fiscal years 2009 through 2019 (the “Relevant Period”), New York State, through its Department of Environmental Conservation (“DEC”), submitted applications to the United States Environmental Protection Agency (“EPA”) for Clean Water State Revolving Fund (“CWSRF”) grants. During this same period, EPA awarded CWSRF grant funds to the state. EFC and DEC jointly administered New York’s CWSRF program.
The Executive Chamber is the Office of the Governor of the State of New York and includes staff who assist the Governor in managing state government. As part of the settlement agreement, EFC admitted that “during the Relevant Period, senior Executive Chamber staff asked (now-former) senior EFC officials for EFC to pay the salaries and benefits of several individuals who the then-Governors hired to work in the Executive Chamber in positions unrelated to the CWSRF program (the ‘Subject Employees’). During the Relevant Period, more than one former senior EFC official agreed to this arrangement.” EFC further admitted that “the individuals hired to work in the Executive Chamber pursuant to this arrangement were not hired specifically to work at EFC or to support the CWSRF program.” EFC acknowledged that “one individual whose salary and benefits EFC paid was hired by the Executive Chamber to work on the former Governor’s advance team while another was hired to help run the former Governor’s Washington, D.C. office.”
On eight occasions during the Relevant Period, EFC submitted certifications to EPA that identified one or more Subject Employee by name, title, and costs that EFC incurred to pay them, and falsely represented that such costs bore a “beneficial or causal relationship” to the CWSRF grant. EFC admitted in the settlement agreement that “it never informed EPA that those individuals worked for the Executive Chamber in positions unrelated to the CWSRF program.”
EFC represented in the settlement agreement that, upon learning of the United States’ investigation, it promptly took steps to ensure that all individuals listed as EFC staff in the CWSRF documentation submitted to EPA worked at EFC in positions related to those grants. It further represented that it has implemented safeguards in its internal controls to ensure the conduct covered by the settlement agreement will not recur in the future.
Special Agent in Charge Nic Evans of EPA’s Office of Inspector General (“OIG”) stated: “EFC knowingly submitted false information to EPA, resulting in the state accessing federal funds for unintended purposes. This settlement is an example of EPA OIG’s commitment to ensuring that all EPA grant administrators, including state actors, are held accountable when dealing with taxpayer funds so that the public can have confidence in the integrity of vital programs like the Clean Water State Revolving Fund.”
Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (“FBI”) stated: “EFC falsely certified for a decade that individuals worked in support of the Clean Water State Revolving Fund federal grant, when their actual positions in the Executive Chamber were wholly unrelated. The FBI takes our responsibility to investigate and pursue those who commit fraud very seriously and we will continue to work with our federal, state, and local law enforcement partners to ensure the protection of these federally funded programs.”
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, EPA OIG, and the FBI. The United States was represented by Assistant United States Attorney Adam J. Katz.
New Haven Man Sentenced to Prison for Distributing Fentanyl and CrackRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RAYQUAN GORY, also known as “Wavy,” 26, of New Haven, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 15 months of imprisonment, followed by three years of supervised release, for his role in New Haven drug trafficking ring.
According to court documents and statements made in court, in the fall of 2021, the New Haven Safe Streets/Gang Task Force and New Haven Police Department began investigating a drug trafficking ring that was distributing fentanyl, heroin crack and cocaine in and around the West Hills neighborhood, including the McConaughy Terrace housing complex, in New Haven. The investigation, which included court-authorized wiretaps, fixed video surveillance and controlled purchases of narcotics, revealed that a member of the conspiracy was receiving heroin and fentanyl from an out-of-state supplier, and kilogram quantities of cocaine through the U.S. Mail from a source in Puerto Rico. Gory sold fentanyl and crack cocaine to customers in the McConaughy Terrace complex.
During the investigation, law enforcement seized approximately 19 kilograms of cocaine, more than 7,000 bags of fentanyl, five firearms, and more than $780,000 in cash.
On February 15, 2022, a grand jury in New Haven returned an indictment charging Gory and seven co-defendants. Gory was arrested on February 17. On June 8, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl, heroin, cocaine base (“crack”) and cocaine.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the New Haven Police Department, Milford Police Department, East Haven Police Department, West Haven Police Department, Connecticut State Police and the Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Movie Producer Pleads Guilty to Conspiring to Operate A Prostitution BusinessRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DILLON JORDAN, a/k/a “Daniel Jordan,” a/k/a “Daniel Maurice Hatton,” a/k/a “Daniel Bohler,” pled guilty to conspiracy to violate the Mann Act for his operation of an interstate prostitution business. JORDAN pled guilty before U.S. District Judge John P. Cronan. Sentencing is scheduled for December 12, 2022.
As alleged in the Indictment, public court filings, and statements made in court:
From in or about 2010 through at least in or about May 2017, JORDAN operated a prostitution business throughout the United States and abroad. JORDAN maintained a roster of women who resided around the United States and who, in exchange for payment, performed sexual acts for JORDAN’s clients at locations throughout the United States, including the Southern District of New York, and abroad. JORDAN communicated with the clients of his prostitution business by email to coordinate the prostitution services, which included sending to clients photos of women who were available for hire for prostitution services, discussing the price of prostitution services, and overseeing travel logistics for women to travel to engage in prostitution. At times, JORDAN himself arranged the interstate travel for the women to engage in prostitution, and at other times, clients, at JORDAN’s direction, arranged the interstate travel for the women whom JORDAN directed to those clients. To facilitate his prostitution business, JORDAN also coordinated with a United Kingdom-based madam by sharing and referring customers and prostitutes.
JORDAN primarily managed the finances of the prostitution business through two front companies – a purported party and event planning company and a movie production company – incorporated in California. JORDAN opened multiple bank accounts for these companies, which he used to accept cash, wire, and check payments for prostitution services from clients and to pay for the expenses of the prostitution business, including paying the women for their prostitution services by cash and check. By using the two front companies to receive deposits from the prostitution business, JORDAN ensured that transactions involving those proceeds from the prostitution business would disguise the nature, source, and origin of those proceeds.
* * *
JORDAN, 50, of Arrowhead Lake, California, pled guilty to one count of conspiracy to violate the Mann Act, which carries a maximum sentence of five years in prison. As part of his guilty plea, JORDAN has agreed to forfeit $1,429,717 to the United States.
The sentencing of JORDAN is scheduled for December 12, 2022, before Judge Cronan.
We urge anyone who feels she may be a victim of, or have information related to, the conduct in this case to please contact the FBI at [email protected] or (973) 792-3000.
Mr. Williams praised the investigative work of the FBI. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Cecilia E. Vogel is in charge of the prosecution.
Mexican National Sentenced to Nearly 20 Years for Trafficking Dozens of Kilograms of Methamphetamine and Possessing A Shotgun and Three HandgunsRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Evaristo Marin-Dominguez (34, Michoacan, Mexico) to 19 years and 7 months in federal prison for conspiring to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Marin-Dominguez had pleaded guilty on April 26, 2022.
According to court documents, Marin-Dominguez sold a kilogram of methamphetamine to a law enforcement source in November 2020, after a broker in Mexico provided the source with Marin-Dominguez’s phone number. During a later meeting to pick up money from the source, Marin-Dominguez admitted to having just delivered 8 kilograms of methamphetamine and having another 16 kilograms available.
Marin-Dominguez was arrested in Highlands County, in the Southern District of Florida, the following year. During an execution of a search warrant at Marin-Dominguez’s residence, authorities seized almost four kilograms of methamphetamine, almost a quarter kilogram of heroin, a shotgun, a rifle, three pistols, and various drug paraphernalia.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation conducted by the Drug Enforcement Administration, with assistance from the Highlands County Sheriff’s Office, the Hardee County Sheriff’s Office, the Pasco Sheriff’s Office, the Largo Police Department, the Plant City Police Department, the Winter Haven Police Department, and the University of South Florida Police Department. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. It was prosecuted by Assistant United States Attorney Dan Baeza.
Member of “Merry Point Boys” Gang SentencedRead the Press Release
RICHMOND, Va. – A Lancaster man was sentenced yesterday to nearly 10 years in federal prison for possessing a firearm as a convicted felon.
According to court documents, Shadonta Lateef Beane, 26, was indicted on federal charges of possessing a Romarm/Cugir Mini Draco pistol, having a 30-round magazine and 22 rounds of ammunition, and possessing a stolen Taurus .40 caliber handgun with 10 rounds of ammunition after having been convicted of a felony. Beane pled guilty on February 23 to possessing the Draco firearm as a convicted felon. Evidence and testimony at Beane’s sentencing hearing showed that he was previously charged with and convicted of possessing a firearm at the Raceway Gas Station in Tappahannock, Virginia on October 31, 2020. Testimony at sentencing also identified that Beane is a member of the Merry Point Boys, a street gang operating in the Northern Neck area that has been recognized by the Virginia Department of Corrections as a gang.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
The Lancaster County Sheriff’s Office and FBI Fredericksburg Field Office provided significant assistance in this case.
Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
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. 3:21-cr-54.
Medicaid Recipients Agree to Pay $130,000 to Resolve False Claims Act Allegations of Health Care Benefit FraudRead the Press Release
Jackson, Miss. - Darren J. LaMarca, United States Attorney for the Southern District of Mississippi, announced today that Manpreet Kamboj and Gurdev Kamboj (aka David Singh) have agreed to pay $130,000 to resolve allegations that they knowingly falsified income to unlawfully create eligibility for Mississippi Medicaid health care benefits for their dependents.
The Medicaid Program is a state and federally funded health benefit program intended to assist low-income individuals and families. The Mississippi Division of Medicaid (MDOM) is the single state agency responsible for administering health care benefits for eligible, low-income individuals in Mississippi.
Despite Medicaid’s low-income requirement, the United States contends that Manpreet Kamboj and Gurdev Kamboj collectively owned and/or were associated with 48 convenience store/gas stations located in Mississippi and Louisiana. The Kambojs also own a five-bedroom 7,850 square foot home located in Madison, Mississippi, most recently valued at 1.3 million dollars.
According to the United States, the Kambojs falsely represented on various Mississippi Medicaid health care benefit applications and renewals that one of them was unemployed and that the household derived income from one convenience store/gas station. As such, the United States alleges that from August 29, 2011, to February 28, 2022, the Kambojs caused the MDOM to pay over $70,000 in health care coverage benefits to which they were not entitled.
“The Medicaid Program is intended to provide access to quality health coverage for vulnerable Mississippians,” said U.S. Attorney Darren LaMarca. “Our office will continue to pursue those individuals who unlawfully deplete valuable resources allocated for Medicaid eligible individuals and families.”
The False Claims Act claims settled are allegations only, and there has been no determination of liability. This case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General.
Massachusetts Man Pleads Guilty to Unlawful Drug and Firearm PossessionRead the Press Release
PLATTSBURGH, NEW YORK – Gerald Washington, age 29, of Springfield, Massachusetts, pled guilty today to possession of a controlled substance with intent to distribute and unlawful possession of a firearm by a prohibited person.
The announcement was made by United States Attorney Carla B. Freedman; New York State Police Superintendent Kevin P. Bruen; and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.
As part of his plea, Washington admitted that on July 1, 2020, he travelled from Springfield, Massachusetts, to Westville, New York, near the northern border, with a co-defendant, and acquired approximately 13 kilograms of marijuana that was intended for distribution in Massachusetts. Washington also admitted to possessing a handgun while being a convicted felon.
Washington faces a sentence of 70 months in prison, a fine of up to $250,000, and a term of post-imprisonment supervision of 2 years when he is sentenced on December 28, 2022, by United States District Judge Mae A. D’Agostino. This is a sentence jointly recommended by the Government and the defendant; if Judge D’Agostino rejects the recommendation, Washington can withdraw his guilty plea and proceed to trial.
This case was investigated by the United States Border Patrol and the New York State Police, Violent Gangs and Narcotics Enforcement Team (VGNET). This case is being prosecuted by Assistant U.S. Attorney Jeffrey Stitt.
Mason City Man Back to Federal Prison for More Than a Year for Violating his Supervised Release ConditionsRead the Press Release
A man who had previously served a federal term of 235 months’ imprisonment was sentenced to another term of 15 months’ imprisonment for violating conditions of his supervised release.
On August 29, 2022, Mingo Flores, 38, from Mason City, Iowa, received the prison term after violating terms of his supervised release. Specifically, Flores was determined by the district court to have two new law violations, including an assault and possession of methamphetamine-second offense. When Flores was arrested on the federal supervision violation stemming from the assault allegations, he was found with methamphetamine, which he attempted to destroy by attempting to flush the methamphetamine down a toilet at the Cerro Gordo County Jail.
In 2001, Flores was sentenced to federal prison for a term of 235 months and a five-year term of supervised release for distribution of LSD. Flores had been on supervised release for approximately two years prior to his violations of the terms of his release. On August 29, 2022, Flores was sentenced in Sioux City, Iowa, by United States District Court Chief Judge Leonard T. Strand to 15 months’ imprisonment. He must also serve a three-year term of supervised release after service of this prison term. There is no parole in the federal system. Flores remains in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Mason City Police Department, the Cerro Gordo County Sheriff’s Office, and United States Probation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 01-3052/22-3027. Follow us on Twitter @USAO_NDIA.
Manderson Man Sentenced to Federal Prison for Involuntary ManslaughterRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Manderson, South Dakota, man convicted of two counts of Involuntary Manslaughter was sentenced on August 23, 2022, by Judge Karen E. Schreier, U.S. District Court.
Moses Runs Against, age 39, was sentenced to seven years in federal prison on both counts of Involuntary Manslaughter, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund on each count. The prison sentences are to be served consecutively and the time of supervised release is to be served concurrently.
Runs Against was indicted by a federal grand jury in February of 2022. He pleaded guilty on May 13, 2022. The conviction stems from Runs Against, while intoxicated, crashing head-on into another vehicle on January 22, 2022, just north of Manderson. The collision resulted in the death of two females and serious injuries to two other females.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Runs Against was immediately remanded to the custody of the U.S. Marshals Service.
Man Sentenced to Prison for Interstate Stolen Property CrimeRead the Press Release
CHARLESTON, W.Va. – Millard Patrick, 53, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for aiding and abetting the interstate transportation of stolen property.
According to court documents and statements made in court, Patrick admitted to participating in a scheme with Mindy Turner, 51, to obtain vehicles totaling approximately $172,950 in value from car dealerships in Kentucky and West Virginia.
On June 28, 2021, Turner passed a bad check at a Louisville, Kentucky, dealership so she and Patrick could obtain a 2020 Ford Explorer with an approximate value of $53,500. Patrick told the sales person that he was a veteran United States Marshal.
The following day, Patrick and Turner transported the 2020 Ford Explorer to West Virginia and attempted to trade it at a Charleston dealership for a more expensive Ford F-250. Patrick told a dealership employee that he worked for the United States Marshals Service. Patrick further told the employee that an armed deputy U.S. Marshal would deliver a check in two days to pay for the trade in, and asked that employee to hold a personal check as collateral. Law enforcement officers were summoned to the dealership and Patrick and Turner were arrested.
On July 14, 2021, while out on bond, Turner and Patrick passed a bad check at a Hurricane dealership to obtain a Jeep Cherokee with an approximate value of $60,056.22. The following day, the pair passed a bad check at a Ripley dealership to obtain a new Ford Explorer with an approximate value of $59,393.48. That same day, Patrick and Turner attempted to obtain a Ford F-150 with an approximate value of $64,108.24 from a Hurricane dealership. They were turned away when the check did not clear.
Turner previously pleaded guilty to aiding and abetting the interstate transportation of stolen property on April 14, 2022, and was sentenced to one year in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the assistance provided by the Charleston Police Department, the Hurricane Police Department, the Jackson County Sheriff’s Office, and the Louisville, Kentucky, Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Negar M. Kordestani prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-18.
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Man Pleads Guilty to Possessing over 6 Kilograms of Methamphetamine and over $450,000 for the Purpose of Drug TraffickingRead the Press Release
A man who possessed over 6,000 grams of methamphetamine and $460,726 in Cedar Rapids, Iowa, pled guilty today.
Terrell McBride, age 31, from Cedar Rapids, Iowa, was convicted of distribution of methamphetamine.
In a plea agreement, McBride admitted to distributing over 1,500 grams of methamphetamine throughout the Cedar Rapids area. The Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms & Explosives searched McBride’s home and recovered over 6,900 grams of methamphetamine and $460,726 in United States Currency. McBride admitted that he used or intended to use all of the United States Currency seized for the purpose of drug trafficking.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. McBride remains in custody of the United States Marshal pending sentencing. McBride faces a mandatory minimum of 10 years’ imprisonment and the following maximum penalties: (1) not more than life imprisonment, without the possibility of parole; (2) a fine of not more than $10 million; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 5 years and up to life.
This case was investigated by the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR-00005-CJW.
Follow us on Twitter @USAO_NDIA.
Los Angeles Resident Sentenced to Prison for Attempting to Obstruct an Official Proceeding Dealing with a Scheme to Issue Commercial Driver’s Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Jaswinder Singh, 60, of Los Angeles, was sentenced today to serve a nine-month prison sentence and to pay a $7,500 fine for attempting to obstruct an official proceeding, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Singh contacted a trial witness in a pending federal criminal case and instructed the witness to lie to law enforcement as a trial date approached. The witness knew that Singh and others had participated in a conspiracy to bribe a DMV official to fraudulently obtain California commercial driver’s licenses (CDLs) for numerous drivers who did not want to take (or could not pass) the necessary tests. Nevertheless, Singh instructed the witness to falsely tell law enforcement the witness knew nothing, not to mention anything about Singh or Singh’s participation in the conspiracy, and not to name any names. Singh also told the witness not to talk on the phone and that it was very important for them to make sure their stories were similar to one another. On another occasion, Singh himself provided false statements about his knowledge and his role to law enforcement while the conspiracy was under investigation.
This case was the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Rosanne L. Rust and Christopher Hales prosecuted the case.
Logan Man Convicted of Securities FraudRead the Press Release
SALT LAKE CITY- On August 30, 2022, after a three-day trial, a federal jury in the District of Utah found Thomas Fairbanks, 69, of Logan, guilty of securities fraud as a result of his fraudulent activities as the CEO and founder of SupplyLine Partners, located in Logan.
At trial, federal prosecutors presented evidence that Fairbanks fraudulently represented to investors that Supplyline Partners’ purpose was to work as a cooperative in funding the financial needs of local businesses, and then leveraging those businesses’ assets to generate cash flow, which would benefit the local community. SupplyLine was not registered as a business with the State of Utah and neither SupplyLine nor Fairbanks were ever licensed to sell securities. In order to induce victims into investing in his scheme, Fairbanks promised investors that they would receive a six percent annual return on their investments; that investors would receive an accounting on their investments; that investors could liquidate their investment at any time; that invested funds would go towards funding SupplyLine’s lending capital; and that SupplyLine’s investments were collateralized by assets of other businesses. However, none of these representations were true.
Fairbanks offered and sold investment opportunities in SupplyLine to at least two Utah residents and collected money from them, some of which he used to fund his own business enterprises and to make loans to a realty company where he worked as a real estate agent. In total, victims lost more than $600,000.
Assistant United States Attorneys Ruth Hackford-Peer and Kevin Sundwall tried the case against the defendant. Investigators from the Utah Division of Securities conducted the investigation with assistance from the FBI.
Kansas Man Sentenced in Fentanyl ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Overland Park, Kansas, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 29, 2022, by U.S. District Judge Karen E. Schreier.
Sylvester Mitchell, III, age 31, was sentenced to 13 years in federal prison, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Mitchell was indicted for conspiracy to distribute a controlled substance by a federal grand jury in September of 2021. He pleaded guilty on June 7, 2022.
Beginning on an unknown date and continuing until on or about December 2021, Mitchell reached an agreement to distribute fentanyl, a Schedule II controlled substance, in the District of South Dakota.
During his involvement, Mitchell obtained pills containing fentanyl from a co-conspirator and distributed them to drug customers in South Dakota. On July 27, 2021, law enforcement executed a search warrant at an apartment where Mitchell was staying. When the officers searched the apartment, they found approximately 73 grams of blue M-30 pills that were later tested and found to contain fentanyl. Mitchell posted bail after that arrest and was released. As Mitchell was leaving Sioux Falls, a South Dakota Highway Patrol Trooper followed him. Mitchell pulled off the interstate and abandoned a safe at a business near the exit of the interstate. The trooper eventually found the safe and discovered approximately 454 grams of pills containing fentanyl inside of it. Through Mitchell’s involvement in the conspiracy, he personally distributed over 400 grams of a mixture and substance containing fentanyl.
This case was investigated by the Sioux Falls Police Department, South Dakota Highway Patrol, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Paige Petersen prosecuted the case.
Mitchell was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department Secures Settlement Agreement with the Indiana State Nursing Board Addressing Discrimination Against People with Opioid Use DisorderRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Indiana State Board of Nursing (Nursing Board) to resolve claims it violated Title II of the Americans with Disabilities Act (ADA). The settlement agreement ensures that nurses who take medication to treat opioid use disorder (OUD) can remain on their medication when participating in the Indiana State Nursing Assistance Program. The program assists in rehabilitating and monitoring nurses with substance use disorders, and is often required for these nurses to maintain an active license or have one reinstated. The department previously notified the Nursing Board of its findings, and described the remedial measures necessary for the Nursing Board to address the ADA violation identified. This case was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana.
“Indiana may not deny individuals life-saving medications, including medications that treat opioid use disorder, based on stereotypes and misinformation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Requiring nurses to stop taking prescribed medication as a condition of maintaining a nursing license violates the ADA, and not only creates barriers to recovery, but inappropriately limits employment opportunities based on disability.”
“The opioid epidemic has greatly impacted professionals and families of all walks of life, and Indiana nurses have the right to seek medically approved treatment for opioid use disorder under federal law,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Following the Justice Department’s findings and the parties’ settlement agreement, Indiana must now enact policies to ensure that Hoosier nurses will not be forced to choose between their recovery and their livelihoods.”
Under the terms of the agreement, the Nursing Board will allow nurses to participate in the states’ rehabilitation program while taking medication, including medication to treat OUD, when the medication is prescribed by a licensed practitioner as part of a medically necessary treatment plan and incorporated into a recovery monitoring agreement. In addition, the Nursing Board has agreed to revise its written polices to ensure that nurses taking prescribed medications for OUD are not subjected to discriminatory conditions or terms. The Nursing Board has also agreed to pay a total of $70,000 in damages to the complainant, and to report periodically on its compliance to the United States.
Methadone and buprenorphine (including brand names Subutex and Suboxone) are approved by the Food and Drug Administration to treat OUD. According to the U.S. National Institute on Drug Abuse (NIDA), methadone and buprenorphine help diminish the effects of physical dependency on opioids. When taken as prescribed, these medications are safe and effective.
The Civil Rights Division, together with U.S. Attorneys’ offices, has been working to remove discriminatory barriers to recovery for individuals who have completed, or are participating in, treatment for OUD. Through outreach, technical assistance and enforcement under the ADA, the Civil Rights Division seeks to ensure that those in treatment or recovery can successfully participate in their communities and the workforce. For example:
- On April 5, 2022, the department issued guidance on protections for people with OUD under the ADA.
- On March 24, 2022, the department entered into a settlement agreement with the Massachusetts Trial Court to resolve allegations that its drug court violated the ADA by discriminating against individuals with OUD.
- On March 17, 2022, the department entered into a settlement agreement with Ready to Work, a Colorado-based employment, residential and social services program for individuals experiencing homelessness, resolving allegations that the program denied admission to an individual because she takes medication for OUD.
- On Feb. 24, 2022, the department filed a lawsuit against the Unified Judicial System of Pennsylvania, alleging that it prohibits or otherwise limits participants in its court supervision programs from using medication to treat OUD.
For more information on the ADA, please call the department’s toll-free ADA information line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. Complaints about disability-based discrimination may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov/.
Justice Department Secures Settlement Agreement with the Indiana State Nursing Board Addressing Discrimination Against People with Opioid Use DisorderRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and the Justice Department announced today that it has entered into a settlement agreement with the Indiana State Board of Nursing (Nursing Board) to resolve claims it violated Title II of the Americans with Disabilities Act (ADA). The settlement agreement ensures that nurses who take medication to treat opioid use disorder (OUD) can remain on their medication when participating in the Indiana State Nursing Assistance Program. The program assists in rehabilitating and monitoring nurses with substance use disorders, and is often required for these nurses to maintain an active license or have one reinstated. The department previously notified the Nursing Board of its findings, and described the remedial measures necessary for the Nursing Board to address the ADA violation identified. This case was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana.
“The opioid epidemic has greatly impacted professionals and families of all walks of life, and Indiana nurses have the right to seek medically approved treatment for opioid use disorder under federal law,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Following the Justice Department’s findings and the parties’ settlement agreement, Indiana must now enact policies to ensure that Hoosier nurses will not be forced to choose between their recovery and their livelihoods.”
“Indiana may not deny individuals life-saving medications, including medications that treat opioid use disorder, based on stereotypes and misinformation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Requiring nurses to stop taking prescribed medication as a condition of maintaining a nursing license violates the ADA, and not only creates barriers to recovery, but inappropriately limits employment opportunities based on disability.”
Under the terms of the agreement, the Nursing Board will allow nurses to participate in the states’ rehabilitation program while taking medication, including medication to treat OUD, when the medication is prescribed by a licensed practitioner as part of a medically necessary treatment plan and incorporated into a recovery monitoring agreement. In addition, the Nursing Board has agreed to revise its written polices to ensure that nurses taking prescribed medications for OUD are not subjected to discriminatory conditions or terms. The Nursing Board has also agreed to pay a total of $70,000 in damages to the complainant, and to report periodically on its compliance to the United States.
Methadone and buprenorphine (including brand names Subutex and Suboxone) are approved by the Food and Drug Administration to treat OUD. According to the U.S. National Institute on Drug Abuse (NIDA), methadone and buprenorphine help diminish the effects of physical dependency on opioids. When taken as prescribed, these medications are safe and effective.
The Civil Rights Division, together with U.S. Attorneys’ offices, has been working to remove discriminatory barriers to recovery for individuals who have completed, or are participating in, treatment for OUD. Through outreach, technical assistance and enforcement under the ADA, the Civil Rights Division seeks to ensure that those in treatment or recovery can successfully participate in their communities and the workforce. For example:
- On April 5, 2022, the department issued guidance on protections for people with OUD under the ADA.
- On March 24, 2022, the department entered into a Settlement Agreement with the Massachusetts Trial Court to resolve allegations that its drug court violated the ADA by discriminating against individuals with OUD.
- On March 17, 2022, the department entered into a Settlement Agreement with Ready to Work, a Colorado-based employment, residential and social services program for individuals experiencing homelessness, resolving allegations that the program denied admission to an individual because she takes medication for OUD.
- On February 24, 2022, the department filed a lawsuit against the Unified Judicial System of Pennsylvania, alleging that it prohibits or otherwise limits participants in its court supervision programs from using medication to treat OUD.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Complaints about disability-based discrimination may be reported to the United States Attorney’s Office for the Southern District of Indiana by submitting a Civil Rights Complaint form, which can be found here, or sending an email to [email protected].
Jackson Man Pleads Guilty and is Sentenced to over 4 Years in Prison for Attempted Hobbs Act RobberyRead the Press Release
Jackson, Miss. – A Jackson man pled guilty and was sentenced today to attempted robbery in violation of the Hobbs Act, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Waddah Farah, 42, pled guilty in U.S. District Court in Jackson. Farah was also sentenced today after waiving any delay in sentencing. He was ordered to serve 51 months in federal prison and pay a $1500 fine.
According to court documents, Farah was arrested and indicted for the attempted robbery of a Dollar General store in Jackson on October 1, 2018.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Inmate Sentenced to Additional Prison Time for Escaping from A Residential Reentry CenterRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Winsdell Nowelin Lamb (35) to 18 months in federal prison for escape. The court also ordered Lamb to serve two years of supervised release following his prison term. Lamb’s sentence is to run concurrently to the sentence that he was serving when he escaped. Lamb had pleaded guilty on April 19, 2022.
According to court documents, in 2013, Lamb was sentenced to an eight-year prison term for being a felon in possession of a firearm. Lamb was completing that term at a Residential Reentry Center in the Middle District of Florida. In November 2020, Lamb escaped from the center and a criminal complaint and arrest warrant was issued immediately. Lamb was a fugitive until January 2022 when he was arrested by the Chicago Police Department on unrelated charges. Despite Lamb giving law enforcement a false name, his true identity was determined, and the U.S. Marshals Service returned Lamb to Orlando.
This case was investigated by the United States Marshals Service. It was prosecuted by Assistant United States Attorney John Gardella.
Illegal Possession of Firearm Sends Rayne Man to Federal PrisonRead the Press Release
LAFAYETTE, La. - Lamar Malbrough, 31, of Rayne, Louisiana, has been sentenced by United States District Judge Robert R. Summerhays to 120 months (10 years) in prison, followed by 3 years of supervised release, announced United States Attorney Brandon B. Brown.
According to evidence presented to the court, on August 11, 2021, Acadia Parish Sheriff’s Office deputies arrested Malbrough as the result of an active state arrest warrant after conducting a traffic stop of the vehicle he was driving. Malbrough was found to have various amounts and types of drugs, including fentanyl, methamphetamine, and marijuana, as well as a firearm, in his possession at the time of his arrest. He has prior felony convictions for attempted possession of a firearm by a felon (2020); simple burglary (2009); and possession with intent to distribute cocaine (2008) and knew that as a convicted felon, he was prohibited from possessing a firearm or ammunition. On April 20, 2022, Malbrough pleaded guilty to being a convicted felon in possession of a firearm.
The case was investigated by the Department of Homeland Security and the Acadia Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney John W. Nickel. It is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Honduran National Sentenced for Illegally Entering the US After a Prior RemovalRead the Press Release
PORTLAND, Maine: A Honduran national living in Auburn was sentenced in U.S. District Court in Portland today for entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
U.S. District Court Judge Nancy Torresen sentenced Santos Roman Pena Matute, 28, to thirteen months and a day in prison. Pena Matute pleaded guilty April 21, 2022.
According to court records, in January 2022, Pena Matute was arrested on domestic violence charges and detained at the Androscoggin Jail. After an investigation confirmed Pena Matute was illegally present in the U.S. and further revealed that he had previously been removed from the U.S. on four occasions, the Department of Homeland Security, Immigration and Customs Enforcement lodged an immigration detainer with the jail, and Pena Matute was charged with illegally entering the county after a prior removal. Pena Matute had been previously convicted in federal court in Texas for illegal re-entry into the United States and in California for attempted illegal entry.
U.S. Department of Homeland Security, Immigration and Customs Enforcement investigated the case.
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High Speed Chase Results in Firearm Charge for Stockton ManRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Rothel Leandre Satchell, 32, of Stockton, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 15, 2022, an Audi sedan made an illegal U-turn, sped off, and led law enforcement officers on a high-speed chase through a residential neighborhood. The vehicle ultimately was unable to navigate a turn and crashed into a row of parked cars. The driver, later identified as Satchell, climbed out of the passenger side door and fled on foot. Once apprehended, officers located a privately manufactured firearm (commonly known as a “ghost gun”) on Satchell’s person and a high-capacity magazine containing 27 rounds in the vehicle. Satchell is prohibited from possessing firearms or ammunition because he was previously convicted of two felonies, including a 2021 conviction for being a felon in possession of ammunition.
This case is the product of an investigation by the Stockton Police Department, the San Joaquin County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Satchell faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Harrison County Woman Sentenced for Trafficking FentanylRead the Press Release
MARSHALL, Texas – A Harleton, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Kerri Marie Thorn, 31, pleaded guilty on May 10, 2022, to possession with intent to distribute fentanyl and was sentenced to 54 months in federal prison today by U.S. District Judge Rodney Gilstrap.
According to information presented in court, Thorn was arrested in August 2021 following a report that she was in possession of more than 2.5 kilograms of stolen fentanyl that she had hidden near a residence in Harleton. Law enforcement officers recovered what was analyzed as 2,607.6 grams of fentanyl and interviewed Thorn, who admitted that she and her co-defendant intended to transport the fentanyl out of the state for sale, at which time they would split the profits. Thorn was indicted by a federal grand jury on Feb. 17, 2022.
This case was investigated by the Federal Bureau of Investigation, Marshall Police Department, and Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Hamden Man Pleads Guilty to Fraud OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that LAMONT BETHEA, 31, of Hamden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to fraud offenses.
According to court documents and statements made in court, Bethea took part in two separate criminal schemes. In the first scheme, Bethea was employed as a Patient Care Associate at Yale New Haven Health Systems (YNHHS). In June 2020, Bethea and Lorita Fair, who worked in the YNHHS payroll department, began to embezzle YNHHS payroll funds. Fair made fraudulent entries in the YNHHS payroll system that resulted in Bethea, Fair and another individual receiving direct-deposited payroll payments that they were not entitled to. Bethea and the other individual then kicked back to Fair a portion of the fraudulent payroll payments they received. As a result of this scheme, which lasted until December 2020, YNHHS sustained a loss of more than $116,260. Approximately $106,000 of this amount was paid into Bethea’s bank account.
In the second fraud scheme, beginning in July 2020, Bethea received personal checks that had been stolen from an individual who lived in New Haven. The victim’s signature was forged on the checks, which were made payable to Bethea, and Bethea deposited them into his personal bank account. Using the routing and account numbers on the checks, Bethea also arranged electronic transfers from the victim’s bank account and used these transfers to pay personal expenses for himself, his family members, and friends. The expenses included credit card bills, rent, car insurance payments, student loans, cell phone bills, and other payments. Through this scheme, Bethea and others stole more than $317,000, of which Bethea and his family members and friends received a total of more than $131,000.
On October 21, 2021, Bethea was arrested on a criminal complaint charging him with offenses arising from the YNHHS fraud scheme.
Bethea pleaded guilty to one count wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of bank fraud, which carries a maximum term of imprisonment of 30 years. Judge Dooley scheduled sentencing for November 23.
Bethea is released on a $50,000 bond pending sentencing.
On April 27, 2022, Fair, of Rock Hill, South Carolina, pleaded guilty to one count of theft in connection with health care for her role in the YNHHS fraud. She awaits sentencing and is also released on a $50,000 bond.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, with the assistance of YNHHS and Bank of America. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Hartford Woman Pleads Guilty to Wire Fraud and Money Laundering SchemeRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that on September 1, 2022, a Hartford woman pled guilty to executing a multi-million-dollar wire fraud and money laundering scheme. Vicki Berka, (age: 61) pled guilty to one count of wire fraud in violation of 18 U.S.C. § 1343, and one count of money laundering in violation of 18 U.S.C. § 1957, for embezzling approximately $2.7 million from her former employer, Bader Rutter & Associates (“Bader”).
According to the plea agreement, Berka admitted to engaging in a scheme to defraud Bader from July 2014 through approximately September 26, 2017. Berka used her position as Chief Financial Officer (“CFO”) and her bank account login credentials to make unauthorized ACH transfers from Bader’s health funding account to a bank account she controlled. Berka then falsified Bader’s general ledger by inflating the company’s reported healthcare expenditures to hide the amount of money she was embezzling. Berka used over $250,000 in stolen proceeds to buy a beach condo in North Carolina.
Berka faces a maximum possible sentence of twenty years in prison for the wire fraud count, and ten years in prison for the money laundering count. Berka also faces fines of up to $250,000 per count and has agreed to pay restitution in the amount of $2.7 million to Bader and its insurance company. Sentencing is scheduled for December 1, 2022, before Judge JP Stadtmueller.
The Federal Bureau of Investigation investigated the case and it is being prosecuted by Assistant United States Attorney Peter Smyczek.
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Four Defendants Face Federal Charges in an Alleged Business Email Compromise Scheme Involving over $4 Million in Fraudulent Bank TransactionsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging four defendants with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Charged in the indictment are:
Raissa Kaossele, age 22, of Baltimore, Maryland;
Damilola Ojo, age 29, of Pikesville, Maryland;
Victor Ojo, age 28, of Edgewood, Maryland;
Jamelia Thompson, age 29, of Pikesville, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (“TIGTA”).
According to the allegations in the eight-count indictment, from April 2016 to May 2019, the defendants allegedly executed a business email compromise scheme (“BEC scheme”). The defendants compromised email accounts of individual and business victims, which they used to send fraudulent payment instructions to financial institutions or business associates to misappropriate funds. The indictment alleges that the defendants used the stolen identifying information of individual victims to obtain Employer Identification Numbers and state business certificates in the name of shell businesses.
As alleged in the indictment, the defendants also obtained legitimate checks written on the accounts of payor business victims and made payable to payee business victims. The defendants allegedly altered the name of the payee on some checks and deposited the stolen checks into bank accounts they opened and controlled. Further, the indictment alleges the defendants and other conspirators then withdrew the unlawfully deposited funds from the accounts. As alleged in court documents, the defendants and other co-conspirators conducted over $4 million in fraudulent bank transactions.
If convicted, the defendants face a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, a maximum of 30 years in prison for bank fraud, and a mandatory minimum sentence of two years in federal prison consecutive to any other sentenced imposed for aggravated identity theft. 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. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work on the investigation and thanked the Baltimore City Police Department, Baltimore County Police Department, Harford County Sheriff’s Office, and U.S. Customs and Border Protection at Dulles International Airport for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Mary Setzer and Paul A. Riley, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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