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Friday 1 July 2022
Bullhead Man Indicted for Possession of a Stolen FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Possession of a Stolen Firearm.
Nicholas James Black Cloud, age 20, was indicted on January 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 29, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 25, 2021, in McLaughlin, South Dakota, Black Cloud was in possession of a stolen firearm, which he took from a vehicle.
The charge is merely an accusation and Black Cloud is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Corson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Black Cloud was released on bond pending trial. A trial date has not been set.
Birmingham Man Pleads Guilty to Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty to drug charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
Randy Hasan Abdurrahim, 37, pleaded guilty this week to possession of a controlled substance. His sentencing is scheduled for October 19, 2022, before United States District Court Judge Madeline Hughes Haikala.
According to the Plea Agreement, on September 2, 2021, while two detectives on patrol were at a Shell gas station on East Lake Boulevard, a Lexus pulled up to the gas pump with the smell of marijuana coming from inside the vehicle. A detective ran the tag through NCIC and it came back as belonging to a Nissan Altima. The vehicle left the gas station and the detectives attempted to perform a traffic stop. The driver refused to stop and fled from detectives. The driver hopped out of the Lexus and fled on foot as the vehicle rolled down the hill. The detectives pursued the driver and were able to take him into custody.
Detectives searched the vehicle and recovered 4 grams of cocaine, 9 grams of fentanyl, 6.16 grams of marijuana, 107 grams of methamphetamine, 2 grams of heroin, and drug paraphernalia.
ATF investigated the case along with the Jefferson County Sheriff’s Office. Assistant United States Attorney Darius Greene prosecuted the case.
Beckley Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Eric Dale Mills, 45, of Beckley, was sentenced today to five years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of a mixture or substance containing fentanyl.
According to court documents and statements made in court, on July 26, 2021, law enforcement officers found more than 50 grams of fentanyl and a small amount of methamphetamine in a vehicle driven by Mills after conducing a traffic stop. Officers also found small bags for packaging and scales. Mills admitted that he possessed the fentanyl and that he intended to distribute it.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell 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. 5:21-cr-252.
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Baltimore Man Pleads Guilty to Arson Charges and Admits to Setting a House on Fire While Three People Were InsideRead the Press Release
Baltimore, Maryland – Luther Moody Trent, age 21, of Baltimore, Maryland, pleaded guilty yesterday to malicious destruction of property by fire.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian S. Geraci; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Niles R. Ford of the Baltimore City Fire Department
According to his guilty plea, on May 21, 2021, at approximately 1:30 a.m., Trent poured gasoline along the exterior of a Baltimore residence and then set the gasoline on fire while Victim 1, Victim 2, and Victim 3 were inside. The fire caused significant damage to the residence and the adjoining property. All three victims and firefighter personnel were alerted and were able to evacuate without injury.
Victim 1 was in a prior volatile relationship with Trent which result in the police being called on at least one occasion, as well as an order of protection being issued in favor of Victim 1. Examination of Victim 1’s cell phone revealed that Trent had sent threatening text messages to Victim 1.
After further investigation, a Baltimore City police detective located a video of a prior incident with Trent and Victim 1 on March 23, 2021. After reviewing the video, the BPD detective recognized Trent and remembered that he had approached him at the scene of the arson. At that time, Trent identified himself as “Trey Johnson” and claimed to be inquiring about his “cousin” that he said lived in the residence. According to the detective, Trent seemed to be acting nervous and drove away from the scene in a black two-door sedan. Victim 1 confirmed that Trent drove a black two-door sedan at the time.
As stated in his guilty plea, Trent was interviewed by a local news station about the arson in which he claimed to have set Victim 1’s residence on fire because he was upset that he could not see Victim 1. Further, Trent compared his actions to Romeo and Juliet and stated that “if I can’t have her, nobody can, or at least no one in Baltimore.”
Trent faces a mandatory minimum of 5 years and a maximum of 20 years in prison for malicious destruction of property by fire. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 11, 2022 at 10 a.m.
United States Attorney Erek L. Barron commended the ATF, Maryland State Fire Marshals, the Baltimore City State’s Attorney’s Office, the Baltimore Police Department, and the Baltimore City Fire Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Bagel Company Owner Sentenced to Prison for Tax Evasion and Wire Fraud ConspiracyRead the Press Release
Joseph Smith, 57, formerly of Fishkill, New York, was sentenced to three years and six months in prison, three years of supervised release, and ordered to pay $2,100,450 in restitution by U.S. District Court Judge Gerald J. Pappert for his scheme to defraud prospective franchisees of more than $2.1 million, collectively.
In February 2022, the defendant, the owner of New York Bagel Enterprises Inc., (New York Bagel), which operated in Pennsylvania and other states, pleaded guilty to charges of conspiracy to commit wire fraud and tax evasion in connection with this scheme. According to court documents and statements made in court, Smith and Dennis Mason, charged separately, made numerous misrepresentations to individuals interested in buying a New York Bagel franchise. These misrepresentations included: a guarantee that New York Bagel could get financing for the prospective franchisee, the actual costs to open a franchise, the number of franchises that were already open or opening, and the profitability of existing franchises. The defendant and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When some prospective franchisees learned of the misrepresentations and demanded their money back, Smith refused to refund these fees. As a result of the fraud, Smith and New York Bagel sold more than 160 franchises and obtained more than $2.1 million in franchise fees.
From 2014 through 2016, Smith deposited more than $1.3 million franchise fees into New York Bagel bank accounts which he controlled. The defendant spent these funds on personal items unrelated to the business, including rent for his home, travel, car payments for personal vehicles and living expenses. Smith did not file corporate or individual income taxes for these three years or pay the taxes he owed to the IRS.
In addition to the term of imprisonment, Smith was ordered to serve three years of supervised release and pay $2,100,450 in restitution.
Mason previously pleaded guilty to related charges and was sentenced to three years in prison in April 2022.
“While Smith was defrauding investors out of their franchise fees, he also evaded nearly $175,000 in taxes due on that income,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Business owners who pay the IRS their fair share of taxes deserve to compete on a level playing field. Competitors who cut corners and seek to skirt their legal obligations should know they will be investigated and prosecuted.”
“Individuals seeking to own and operate business franchises are seeking opportunity and financial stability for themselves and their families; they deserve honesty and forthrightness in their business dealings so they can make informed decisions,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Mr. Smith took advantage of his position to swindle millions of dollars from people seeking legitimate business opportunities, and for that crime he will now spend years in prison.”
“Joseph Smith peddled what looked like a great opportunity to potential franchisees,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Division. “But once they signed on the dotted line, they learned he’d been peddling something else instead. Smith treated their franchise fees like found money. It was a clear-cut case of fraud and this sentence puts him behind bars and provides some justice for his victims. The FBI will always fight to hold crooks like this accountable.”
“Mr. Smith’s scheme served no purpose other than to mislead and defraud perspective franchisees,” said Special Agent in Charge Yury Kruty of IRS-Criminal Investigation. “Furthermore, he took steps to hide his earnings from IRS, thus shirking his tax liability. The sentence he received is a victory for all Americans who play by the rules.”
The FBI and IRS-Criminal Investigation are investigating the case.
Trial Attorney Eric B. Powers of the Tax Division and Assistant U.S. Attorney David Ignall for the Eastern District of Pennsylvania are prosecuting the case.
Attorney General Merrick B. Garland Announces Department of Justice 2022-26 Strategic PlanRead the Press Release
In the following message to all Department of Justice employees today, on the 152nd anniversary of the founding of the Department, Attorney General Merrick B. Garland announced the publication of the Department’s 2022-26 strategic plan:
“The Justice Department was founded exactly 152 years ago, on July 1, 1870. Today, the Department’s urgent mission continues: to uphold the rule of law; to keep our country safe from all threats, foreign and domestic; and to protect civil rights.
“The Strategic Plan we are issuing today reflects that charge. It organizes the Justice Department’s important responsibilities into five areas of focus that will guide our work in the years to come.
“Our first area of focus is upholding the rule of law, which is the foundation of our democracy. To that end, we will continue to work to uphold the norms and principles that are essential to the fair application of our laws and to the Justice Department’s independence and integrity.
“Our second area of focus is keeping our country safe. The Justice Department will continue to counter both foreign-based and domestic-based threats that endanger our safety and our democracy. These include the threats posed by nation-states, terrorist groups, cyber criminals, and others who seek to undermine our democratic and economic institutions, as well as the threats posed by violent crime, drug-trafficking organizations, and those who target vulnerable populations.
“Our third area of focus is protecting civil rights. We will continue to use every resource at our disposal to reinvigorate civil rights enforcement, including by defending voting rights, deterring and prosecuting hate crimes, advancing environmental justice, and expanding access to justice.
“Our fourth area of focus is ensuring economic opportunity and fairness for all. The Department will continue to strengthen its antitrust and consumer protection efforts; combat fraud, waste, and abuse; and investigate and prosecute corporate crime and the individuals responsible.
“Our final area of focus is administering just court and correctional systems. The Justice Department will continue to work to ensure that our nation’s immigration court system is fairly administered, and that our federal prisons and detention centers are safe, transparent, and effectively managed.
“I encourage you to read this plan, which will guide our efforts across the Department as we continue to fulfill our responsibilities to the American people.
“I have the utmost confidence in our ability to achieve these goals together, and I continue to be grateful to do this work alongside you.”
Armed Methamphetamine Dealer Sentenced to More Than 12 Years in PrisonRead the Press Release
MOBILE, AL – A Grand Bay man was sentenced to a total of 145 months in prison for conspiring to distribute methamphetamine.
According to court documents, Robert Orrin Draughon, Jr., 31, was arrested in May 2021 after leading sheriff’s deputies on a high-speed chase in Grand Bay. Deputies ended the chase by boxing Draughon’s truck in behind a gas station. Deputies then searched Draughon’s truck and the immediate area, recovering Draughon’s identification, more than $1,600 in cash, a loaded Ruger pistol, and a water cooler containing more than 160 grams of 99.6% pure methamphetamine. In connection with his guilty plea, Draughon admitted that he knowingly possessed the methamphetamine and the pistol. Data extracted from Draughon’s cell phone included text messages that he exchanged with others about drug distribution in the Mobile area.
In 2018, Draughon was convicted in the United States District Court for the Southern District of Alabama of being a felon in illegal possession of a firearm. Draughon was on federal supervised release at the time of his arrest in May 2021.
United States District Judge Kristi K. DuBose imposed a sentence of 121 months in prison, to run consecutively to a 24-month custody sentence for Draughon’s supervised-release violation, for a total sentence of 145 months. The court ordered Draughon to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge DuBose ordered Draughon to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Mobile County Sheriff’s Office and Homeland Security Investigations investigated the case.Assistant U.S. Attorneys Sinan Kalayoglu and Justin Roller prosecuted the case on behalf of the United States.
Air France and KLM Airlines to Pay $3.9 Million to Settle False Claims Act Allegations for Falsely Reporting Delivery Times of U.S. Mail Carried InternationallyRead the Press Release
The Justice Department announced today that Air France and KLM Airlines (AF/KLM) have agreed to pay $3.9 million to resolve their alleged liability under the False Claims Act for falsely reporting information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service (USPS). AF/KLM are international air carriers with headquarters in Paris and Amsterdam, respectively.
“The Department of Justice is committed to ensuring that government contractors provide the services for which they are paid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When contractors knowingly fail to meet their obligations, we will pursue appropriate remedies to redress the violations and deter future ones.”
USPS contracted with AF/KLM to take possession of receptacles of U.S. mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, AF/KLM was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by AF/KLM falsely reported the time and fact that they transferred possession of the mail.
“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Executive Special Agent in Charge Ken Cleevely of the USPS, Office of Inspector General (OIG). “The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, with substantial assistance from the USPS Office of the Inspector General and the USPS Office of General Counsel. Senior Trial Counsel Don Williamson of the Civil Division’s Commercial Litigation Branch, Fraud Section, represented the government in the civil case.
This is the seventh civil settlement involving air carrier liability for false delivery scans under the USPS ICAIR Contracts, and collectively the United States has recovered more than $84 million as a result of its investigation of such misconduct.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Abbeville Man to Spend Time in Federal PrisonRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Xzavier Dyson, 23, of Abbeville, Louisiana, has been sentenced by United States District Judge R. Summerhays to 42 months in prison, followed by 3 years of supervised release, on firearms charges.
Dyson was indicted by a federal grand jury in April 2021 and charged with possession of a firearm by a convicted felon. He pleaded guilty to the charge on March 23, 2022. The charge stems from an incident that occurred on May 26, 2020 when Dyson was the rear passenger in a vehicle that was stopped for a traffic violation in Abbeville. The driver consented to a search of the vehicle and a pat down search was conducted by law enforcement officers of each occupant of the vehicle. The deputy found a Cobra .380 pistol on Dyson’s person and seized the weapon. Dyson had a previous felony conviction for possession with intent to distribute marijuana and illegal carrying of a weapon in 2018 and was on probation when this offense occurred. As a convicted felon, he is prohibited from having a firearm or ammunition in his possession.
The case was investigated by the ATF and the Vermillion Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Thursday 30 June 2022
Woodbridge Man Pleads Guilty to Illegally Possessing a Firearm and over 14,500 Counterfeit Pills Containing FentanylRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pleaded guilty today to possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking.
According to court documents, between the end of November and beginning of December 2021, Keyshone Stephan Hogan, 24, worked with a co-conspirator to distribute counterfeit pressed pills containing fentanyl from a hotel room in Manassas. On December 2, 2021, Hogan was arrested after he and his co-conspirator exited the hotel and entered Hogan’s car in the hotel parking lot. At the time of his arrest, Hogan was concealing a loaded Glock handgun in his waistband. Law enforcement recovered over 250 counterfeit Percocet pills containing fentanyl from Hogan’s driver side door and several boxes of ammunition from the trunk of the vehicle.
A search of the hotel room, registered under Hogan’s name, revealed over 14,000 counterfeit Percocet pills containing over 1,500 grams of fentanyl in 14 plastic zipper bags. Two loaded mini Draco AK47 pistols and one loaded micro Draco AK47 pistol were in the hotel room. After his arrest and during processing at the local jail, Hogan was found to be hiding an additional 50 counterfeit Percocet pills containing fentanyl in his pants.
Hogan is scheduled to be sentenced on October 5. He faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison. 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney Rachael C. Tucker is prosecuting 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. 1:22-cr-104.
Woman admits firearm crime in fatal shooting on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A woman today admitted to a firearm crime after fatally shooting a man while she was in his car in Box Elder, on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said.
Shaide Jo Demontiney, 19, no permanent address, pleaded guilty to an information charging her with use of a firearm during and in relation to a crime of violence. Demontiney faces a mandatory minimum of 10 years to life in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Sept. 28. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Demontiney was detained pending further proceedings.
The government alleged in court documents that on Aug. 16, 2021, tribal police officers responded to a report of a shooting in Box Elder and found a deceased man. Officers learned that Demontiney had shot the man and driven away. Officers found and arrested Demontiney a short time later after the car she was driving broke down on the highway. Demontiney had a .380-caliber handgun and the victim’s cell phone. Demontiney told investigators that she had been in the car with the victim and had grabbed a handgun from her purse after he had offered her money and drugs for sex and touched her inappropriately. After the victim made another remark, Demontiney shot him in the chest. Demontiney told agents that she did not feel like she was in danger when she shot the victim. Demontiney then took the car and drove off.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case, which was investigated by the FBI and Rocky Boy’s Police Department.
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Wheeling man sentenced to 10 years for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Brookins, of Wheeling, West Virginia, was sentenced today to 120 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Brookins, 37, pleaded guilty in March 2022 to one count of “Possession of a Stolen Firearm.” Brookins admitted to having a 9mm Smith and Wesson firearm that had been stolen in June 2019 in Ohio County.
Assistant U.S. Attorney Jennifer T. Conklin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Wenham Man Charged with COVID-19 Pandemic Fraud SchemeRead the Press Release
BOSTON – A Wenham man was charged today in connection with a scheme to obtain Paycheck Protection Program funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act by submitting false applications.
James Joseph Cohen, 59, was charged and has agreed to plead guilty to one count of bank fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, between April 2020 and September 2021, Cohen submitted six false applications to financial institutions and to the Small Business Administration to obtain pandemic-related relief funds on behalf of companies that he controlled. In the applications, it is alleged that Cohen falsely misstated the revenues of the companies, the persons employed, or amounts paid to those employees in the 12-month period preceding the application. In total, Cohen is alleged to have fraudulently obtained approximately $1.2 million in pandemic relief funds based upon these false submissions.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Utah Tax Preparer Pleads Guilty to Tax Evasion and Obstructing IRSRead the Press Release
A Utah professional tax preparer pleaded guilty today to tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his personal tax debt.
According to court documents, Sergio Sosa, of Orem, owned and operated Sergio Centro Latino, a tax return preparation business. From 2004 to the present, Sosa conspired with his two adult children to defraud the United States by concealing Sosa’s assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his then pending tax debt of more than $750,000, he obstructed those efforts by using nominees to open corporate bank accounts, renaming his business and placing it in the names of his children, and making false statements to the IRS. Sosa also directed his daughter to make mortgage payments on his personal residence using funds he provided to her. In total, Sosa caused a tax loss to the IRS exceeding $1.1 million.
Sosa is scheduled to be sentenced on Sept. 19 and faces a maximum penalty of five years in prison for tax evasion, five years in prison for conspiring to defraud the United States and three years in prison for obstructing the IRS. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorney Ruth Hackford-Peer for the District of Utah are prosecuting the case.
U.S. Attorney’s Office to Join Partners with U.S. Postal Service for a Press Conference Tomorrow in Columbia at 10 a.m.Read the Press Release
COLUMBIA, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that a press conference will be held tomorrow, July 1, 2022, at 10 a.m., at the U.S. Post Office on 1601 Assembly Street in Columbia, South Carolina 29201.
The purpose of the press conference is to recognize National Postal Worker Day, which will include a recognition of significant cases brought by the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina and representatives of the U.S. Postal Service.
WHEN: Friday, July 1, at 10 a.m.
WHERE: U.S. Post Office
1601 Assembly Street in Columbia, South Carolina 29201
NOTE: Press inquiries regarding logistics should be directed to Assistant U.S. Attorney Derek A. Shoemake at 843-813-0982. Members of the media wishing to attend should arrive at the Post Office fifteen minutes in advance.
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U.S. Attorney's Office Testifies at D.C. Council Hearing on Forensic SciencesRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia testified today at a committee hearing before the Council of the District of Columbia on proposed legislation, Bill 24-0838, the “Restoring Trust and Credibility to Forensic Sciences Amendment Act of 2022.”
As stated today, the U.S. Attorney’s Office is committed to working with its partners to chart a path forward for the District of Columbia Department of Forensic Sciences.
In addition to appearing before the Council’s Committee on the Judiciary and Public Safety, Elana Suttenberg, Special Counsel to the U.S. Attorney, provided written remarks, available in the accompanying attachment.
The testimony is also available at this link.
U.S. Attorney Convenes Multi-Agency Briefing Informing Local Community Leaders on Targeted Violence IndicatorsRead the Press Release
SAN DIEGO – In response to recent violent shootings, online white supremacist rhetoric, and a significant increase in hate crimes, U.S. Attorney Randy Grossman today gathered key law enforcement and community leaders for a briefing that included a threat assessment, an overview of pre-attack indicators and the best ways to report and mitigate threats.
Grossman was joined by DHS officials in Washington, D.C., Marcus Coleman, Director of the DHS Faith Based and Community Relations Program, and Dominic Cucciarre, Team Lead in the DHS Office of Intelligence and Analysis, Counterterrorism Mission Center, several local law enforcement leaders, including Curtis Jones, Deputy National Sector Chief, FBI - InfraGard Program, San Diego Police Department Chief Dave Nisleit, Assistant District Attorney Dwain Woodley, FBI Supervisory Special Agent Renee Green, and two Fusion Center Senior Intelligence Analysts, as well as more than a dozen stakeholders who work in Southeast San Diego, including leaders of the San Diego Organizing Project, which requested the briefing.
“While the combination of hateful online rhetoric and access to firearms presents a chilling challenge, prevention through partnerships has saved lives, both nationally and here in San Diego,” said U.S. Attorney Randy Grossman. “Violent remarks by online extremists have resulted in public ‘tip’ reports to law enforcement, followed by a gun violence restraining order and successful federal prosecution. To ensure this prevention strategy is repeated, it is essential to arm our community leaders with information.”
“It’s important that the community members know they are not alone in this battle against radical extremism, hateful threats and targeted gun violence: federal, state and local law enforcement agencies are with you, ready to assist in every way possible,” Grossman added. “We want to work hand in hand with you to keep your loved ones and community safe.”
“Our faith and nonprofit leaders are often in the best position to notice and report suspicious behavior,” Marcus Coleman stated. “We need to ensure they are briefed on the latest intelligence so they can better identify pre-attack indicators and contact law enforcement.”
Two St. Louis County men charged with robbing postal workersRead the Press Release
ST. LOUIS – Two men from St. Louis County are facing federal charges accusing them of robbing two mail carriers at gunpoint on June 9.
Roy Lee Jones, 19, and Xavier Sean Boyd, 18, of Jennings, were charged by complaint June 15 with two counts of robbery and two counts of theft of a mail key. Boyd appeared in U.S. District Court June 23 and Jones appeared in court Thursday.
Charging documents say that on June 9 at about 12:30 p.m., Jones approached a U.S. Postal Service letter carrier near Lindbergh Boulevard and New Halls Ferry Road in St. Louis County and demanded his “arrow key,” which opens certain U.S. Postal Service collection boxes.
About 18 minutes later and a mile and a half away, Boyd robbed a different letter carrier of his arrow key, the charges say.
A few minutes later, St. Louis County police spotted the robbers’ Volkswagen Tiguan, which crashed after a brief chase.
Jones and Boyd tried to flee from the vehicle but were arrested, and the arrow keys and guns were found in the SUV, the charges say.
Charges set forth in a criminal complaint 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 U.S. Postal Inspection Service and the St. Louis County Police. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Two Sentenced for Conspiracy to Distribute MethRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Fort Pierre, South Dakota, woman and a Pierre, South Dakota, man both convicted of Conspiracy to Distribute a Controlled Substance were sentenced on June 28, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Shannon Spears, age 44, was sentenced to 121 months in federal prison, followed by five years of supervised release. John Klein, age 45, was sentenced to 20 years in federal prison, followed by five years of supervised release. Both Spears and Klein were each also ordered to pay a $1,000 fine, and special assessment to the Federal Crime Victims Fund in the amount of $100.
Klein was indicted by a federal grand jury on July 13, 2021. He pled guilty on March 24, 2022. Spears was indicted by a federal grand jury on September 14, 2021. She pled guilty on March 10, 2022.
The convictions stem from Klein and Spears conspiring with others to knowingly and intentionally distribute methamphetamine in and around central South Dakota. Klein utilized sources of supply of methamphetamine from Minnesota and Colorado to bring large amounts of methamphetamine to the Pierre area, where he would utilize individuals, including Spears, to distribute that methamphetamine in and around central South Dakota. It was reasonably foreseeable that over 500 grams of methamphetamine was distributed during the course of the conspiracy.
Klein’s spouse, Taylor Huemoeller, a/k/a, Taylor Klein, who was also involved in the conspiracy, is set to be sentenced on August 15, 2022. Randy Little Shield was previously sentenced to 10 years in federal custody for his role in the conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the FBI, the South Dakota Highway Patrol, the South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Klein and Spears were both immediately turned over to the custody of the U.S. Marshals Service.
Two Men Plead Guilty to International Telemarketing Sweepstakes Fraud SchemeRead the Press Release
Two individuals have pleaded guilty to an international telemarketing sweepstakes fraud scheme that defrauded numerous elderly and vulnerable victims in the United States of more than $9 million.
According to court documents, Maurice Levy, 51, and Derrick Levy, 54, both of Jamaica, admitted that between July 2008 and September 2016, they worked in call centers in Costa Rica that defrauded victims in the United States. Derrick Levy and Maurice Levy admitted that they concealed their physical location using Voice-over-IP technology, which enabled them to give victims telephone numbers that, although bearing U.S. area codes, were actually answered at the call centers in Costa Rica. Maurice Levy and Derrick Levy further admitted that they would call individuals in the United States, many of whom were elderly and vulnerable, and falsely claim that the individuals had won a sweepstakes prize but were required to pay fees prior to the delivery of the prize. In truth, no such prize existed. Once a victim made an initial payment for the purported fees, Maurice Levy, Derrick Levy, and their co-conspirators would continue to call the victim, falsely representing that a mistake had been made and that the victim had actually won a prize of a greater amount, or an issue had occurred, and the victim needed to pay additional fees to claim the prize. Many victims sent tens of thousands of dollars to Maurice Levy, Derrick Levy, and their co-conspirators in response to these calls. During the scheme, Derrick Levy and Maurice Levy fraudulently obtained more than $9,400,000 from victims, which was used to continue operating the call centers and for the co-conspirators’ personal benefit.
Maurice Levy pleaded guilty yesterday to conspiracy to commit wire fraud and will be sentenced at a future date. Derrick Levy pleaded guilty on Jan. 25 to conspiracy to commit wire fraud and will be sentenced on Sept. 28. They each face at least up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King of the U.S. Attorney’s Office for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s Atlanta Division; Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation’s (IRS-CI) Charlotte Field Office; and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.
This case was investigated by the U.S. Postal Inspection Service, IRS-CI, and the FBI, with assistance from the Federal Trade Commission, Homeland Security Investigations, and the U.S. Department of State’s Diplomatic Security Service. The Justice Department’s Office of International Affairs and Costa Rican authorities also provided assistance.
Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the plea agreements and informations, please visit https://www.justice.gov/criminal-vns/case/united-states-v-levy-et-al.
Two Guatemalan Nationals Plead Guilty to Assaulting a Federal OfficerRead the Press Release
TUCSON, Ariz. –On June 28, 2022, Esdly Amarilis Gonzalez, 28, of Guatemala, pleaded guilty to one count of assault on a federal officer. Sentencing is scheduled for September 7, 2022, before United States District Judge James A. Soto. Co-defendant Nayber Eziquiel Juarez-Mantanic, 24, of Guatemala, previously pleaded guilty to one count of assault on a federal officer. Juarez-Mantanic’s sentencing is scheduled for August 29, 2022, before United States District Judge James A. Soto.
On February 3, 2022, a U.S. Border Patrol (USBP) agent attempted to conduct an immigration inspection of the vehicle in which Gonzalez and Juarez-Mantanic were passengers. When the agent approached the vehicle and identified himself as a USBP agent in both English and Spanish, Gonzalez and Juarez-Mantanic attempted to run from the vehicle on foot. When the agent tried to detain them, Juarez-Mantanic intentionally struck the agent in the head and shoulders. As the agent was struggling to handcuff Juarez-Mantanic, Gonzalez came up behind them and intentionally struck the agent on his shoulders. The driver of the vehicle fled the scene.
A conviction for assault on a federal officer carries a maximum penalty of 8 years imprisonment, a fine of up to $250,000.00, or both.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorneys Sarah B. Houston and Frances M. Kreamer Hope, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBER: CR-22-00271-TUC-JAS (BGM)
RELEASE NUMBER: 2022-102_Gonzalez_et_al# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Convicted Felons Charged with Ammunition Offenses in Connection with Everett ShootingRead the Press Release
BOSTON – Two previously convicted felons have been charged with illegally possessing ammunition in connection with a January shooting in a residential neighborhood of Everett.
Luis Rivera, 25, of Medford, and Kenneth Munoz, 24, of Revere, were charged with one count each of being a felon in possession of ammunition. Rivera was arrested this morning and, following an initial appearance today before U.S. District Court Magistrate Judge Donald L. Cabell, Rivera was detained pending a detention hearing which is scheduled for July 6, 2022. Munoz is currently in state custody on unrelated state firearms charges and will appear in federal court at a later date.
“Gun violence continues to plague and hurt our communities,” said United States Attorney Rachael S. Rollins. “These defendants, each prohibited from possessing firearms and ammunition due to prior criminal convictions, are alleged to have recklessly fired shots in the middle of the day in a residential neighborhood, striking numerous homes. It is sheer luck that no one was harmed or killed as a result of their alleged reckless and violent conduct. Gun violence poses a real threat to our community. There is only one use for ammunition. One. Accordingly, we will prosecute prohibited individuals.”
“The ATF values the partnership we have with our local, state and federal partners to target violent offenders,” said James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “These individuals put the lives of everyday citizens at risk, and we will work diligently to combat these senseless acts of violence.”
According to the charging document, on the afternoon of Jan. 2, 2022, three individuals fired over 20 shots in an Everett neighborhood causing ballistic damage in the surrounding area, including bullet holes inside of bedrooms and living rooms in surrounding residences. The shooting was captured on video surveillance from nearby residences. Rivera and Munoz were allegedly identified as two of the shooters in the surveillance footage. Both men are prohibited from possessing firearms and ammunition due to prior convictions.
The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, ATF SAC Ferguson, Everett Police Chief Steven A. Mazzie and Chelsea Police Chief Brian Kyes made the announcement. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Toledo Woman Indicted for Purchasing Firearm for FelonRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a Toledo woman was charged in a two-count indictment for purchasing a firearm for a convicted felon.
Taylor Elysse Corggens, 29, was charged with making a false statement during the purchase of a firearm and providing a false statement to federal agents.
According to court documents, on May 24, 2021, Corggens and Lamondre Gaston, 32, of Toledo, were observed arriving together and entering a licensed federal firearms dealer in Oregon, Ohio. Court documents state that once inside the store, video footage depicts Gaston pointing out a firearm and handling it. Gaston is prohibited from possessing a firearm due to previous convictions of aggravated assault and heroin trafficking in the Lucas County Court of Common Pleas.
It is alleged that after Gaston handled the firearm, Corggens then completed the transaction to purchase the weapon. During the transaction, Corggens filled out ATF Form 4473, which asks the buyer: “Are you the actual transferee/buyer of the firearm(s) listed on this form…” and specifically states in bold, “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”
Court records state that Corggens checked the box, indicating that she was the buyer of the weapon.
On June 8, 2021, Gaston was arrested by officers with the Toledo Police Department and was found to be in possession of the weapon that Corggens had purchased. Federal law enforcement authorities interviewed Corggens regarding the incident, and it is alleged that Corggens indicated to authorities that Gaston did not accompany her, Corggens, to purchase the weapon.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations and the Toledo Police Department. This case is being prosecuted by Assistant U.S. Attorney Robert N. Melching.
Three Venezuelans Plead Guilty to Conspiracy to Possess Cocaine on Board a Vessel Subject to the Jurisdiction of the United StatesRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Vicent Mata Anyelo, 23, Alfer Rodriguez Boadas, 24, and Jhonny Rodriguez Rodriguez, 29, three of eleven Venezuelan nationals apprehended at sea off the coast of St. Croix, pleaded guilty before United States Magistrate Judge Emile A. Henderson, III, to conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States.
According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter Donald Horsley intercepted a suspicious 55-foot vessel named “La Gran Tormenta” displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the La Gran Tormenta failed to respond to USCG’s efforts to engage in questioning of the crew, and upon detection, the La Gran Tormenta changed course and began jettisoning packages. Crew members from the USCG Cutter Donald Horsley subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick-shaped objects which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride.
After requesting and receiving permission to stop the vessel from the Venezuela, the flag state, USCG personnel attempted a right-of-visit boarding which was ineffective as the crew of the La Gran Tormenta disregarded the USCG’s instructions. Shortly thereafter, USCG personnel obtained control of the La Gran Tormenta through use of an entanglement tactics which disabled the vessel’s engine. A USCG counter-drug boarding team later encountered 11 persons, including the defendants. Anyelo was the captain of the vessel.
Sentencing hearings have been scheduled for October 27, 2022, and October 28, 2022, for the defendants. For their convictions, they face a mandatory minimum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U.S. Coast Guard, U.S. Drug Enforcement Administration, and Customs and Border Protection, and prosecuted by Assistant United
States Attorney Melissa P. Ortiz. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and
dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligencedriven, multi-agency approach that leverages the strengths of federal, state, and local law
enforcement agencies against criminal networks.Three Men Charged in $100 Million Cryptocurrency FraudRead the Press Release
Miami, Florida – A South Florida federal grand jury today indicted Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, in connection with a global cryptocurrency-based fraud that generated around $100 million in revenues from investors. The indictment charges all three defendants with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud. The indictment also charges Pires and Goncalves with conspiracy to commit international money laundering.
According to the indictment, Pires and Goncalves founded EmpiresX, a cryptocurrency investment platform and unregistered securities offering. Pires and Goncalves, along with Nicholas, the company’s so-called “Head Trader,” fraudulently promoted EmpiresX. They misled investors about, among other things, a purported proprietary trading “bot” that they claimed could generate guaranteed returns to investors in EmpiresX.
As alleged in the indictment, Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange, and paid out early EmpiresX investors with money obtained from later investors in a Ponzi-style scheme.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said United States Attorney Gonzalez. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“The technology has changed, but the crime remains the same,” said George L. Piro, Special Agent in Charge of FBI Miami. “Unscrupulous fraudsters are nothing new to the investment world - what’s changing is they are now pushing their criminal activity into the cryptocurrency realm. Investors beware. Conduct your due diligence before investing. The FBI would like to commend Homeland Security Investigations for their close cooperation on this case.”
“This case should serve as a warning to any individuals who look to illegally capitalize on the perceived ambiguity of the crypto market to take advantage of innocent investors” said HSI Miami Special Agent in Charge Anthony Salisbury. “HSI will continue to work with our partners to pursue anyone who utilizes these types of schemes to victimize would be customers.”
FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Indictments contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Three Delaware Valley-Area Railroad Workers to Pay over $75,000 to Resolve Allegations of False Unemployment Benefits ClaimsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that three area railroad workers have agreed to pay over $75,000, collectively, to resolve claims of unemployment benefits fraud under the False Claims Act. In three civil actions filed this week, the government alleges that Shohana Culberson, of Philadelphia, PA; Keith Abele, of Levittown, PA; and James T. Billups, of Newark, DE; applied for and received unemployment benefits from the United States Railroad Retirement Board (RRB) when they were, in fact, gainfully employed.
The Railroad Retirement Act provides unemployment benefits for railroad workers who are out of work. The program is administered by the RRB and is financed by taxes paid by railroad employees.
The government alleges that defendant Culberson submitted 20 false claims for unemployment benefits between March and December 2017, while she was employed by Comcast. The government also alleges that Abele submitted 31 false claims for unemployment benefits between November 2016 and April 2018, while he was employed by Terminal Switching Company, LLC and Watco Transloading, LLC. Finally, the government alleges that defendant Billups submitted 13 false claims for unemployment benefits between September 2017 and February 2018, while he was employed by FedEx and Comcast. Between them, the government alleges, the defendants received a total of $37,127 of unemployment compensation on days when they knew they were not eligible for it.
The United States filed lawsuits against Culberson, Abele, and Billups under the False Claims Act, which provides for three times the government’s damages plus civil penalties for each false claim. To resolve these matters, the defendants each agreed to enter into a consent judgment subject to the Court’s approval that would resolve the matter without litigation.
The claims resolved by the settlements announced today are allegations only, and there has been no determination of liability.
“Unemployment benefits, no matter if they are administered by the government, a union, or a private entity, are very plainly meant to help individuals through a difficult time while unemployed, not as slush fund from which to obtain surplus income,” said U.S. Attorney Romero. “We will continue to work with all of our investigative partners and use every tool at our disposal to remediate this type of fraud.”
The allegations arose from investigations led by the Railroad Retirement Board Office of Inspector General in Philadelphia. The cases are being handled by Assistant United States Attorney Lauren DeBruicker.
Syracuse Man Sentenced to 48 Months in Prison for Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Adrian Esteras, 38, of Syracuse, NY was sentenced yesterday to serve 48 months in prison following his conviction for conspiring to distribute and possess with intent to distribute fentanyl and possessing cocaine with the intent to distribute, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his prior guilty plea, Esteras admitted that between May and July 2021, either he or his coconspirators distributed at least 8 grams of fentanyl. He also possessed at least 158 grams of cocaine that he kept at his residence and intended to distribute. Esteras had previously been convicted of seven felony offenses in state court. He was on state parole at the time he committed the federal offense.
Chief United States District Judge Glenn T. Suddaby also sentenced Esteras to a three-year term of supervised release to begin after he serves his term of imprisonment and ordered him to pay a forfeiture judgment in the amount of $3,909, which represented the proceeds from drug sales.
This case was investigated by the DEA-Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the U.S. Department of Homeland Security-Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Sylacauga Man Convicted of Attempted RobberyRead the Press Release
BIRMINGHAM, Ala. – Dameon LaShawn Nix, 32, of Sylacauga, was convicted after a jury trial of attempted robbery and of using a firearm during a crime of violence announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Evidence presented at trial revealed that on May 28, 2019, Nix entered the Coosa Pines Federal Credit Union in Sylacauga and shot a pistol three times into the ceiling. Twenty minutes after fleeing the credit union, Nix was caught by two Sylacauga police officers while attempting to escape through nearby woods. He was in possession of $195 belonging to a customer at the credit union and a gun holster. The firearm was never found. Nix had taken the cash from the customer when the tellers were unable to open their cash drawers. A delivery driver observed Nix donning a mask as he entered the credit union, and later picked him out of a lineup. Experts from the FBI laboratory in Quantico, Virginia, identified Nix’s DNA on clothing he had discarded in the woods as he fled the bank. The clothes bearing Nix’s DNA matched the clothing worn by the robber as revealed by the credit union’s surveillance cameras.
Nix faces imprisonment of approximately 40-50 months on the attempted credit union robbery and a 10-year consecutive term of imprisonment for discharging the firearm during the attempted robbery.
“The FBI is committed to working with our state, local and federal partners to combat violent crime and bring individuals like Nix to justice,” said FBI SAC Johnnie Sharp. “I particularly want to express my appreciation to our partners with the Sylacauga Police Department for their outstanding work and assistance in this case.”
“We are grateful for the work of the Sylacauga Police Department in apprehending this offender,” said U.S. Attorney Escalona. “As this case confirms, working closely with our federal, state, and local law enforcement partners is the best way to combat violent crime and remove violent offenders from our communities.”
The Federal Bureau of Investigation investigated. Assistant United States Attorneys John Camp and Bill Simpson prosecuted the case.
Sumter County Man Pleads Guilty to Wire FraudRead the Press Release
COLUMBIA, SOUTH CAROLINA —Rodney Ellis, 71, of Sumter County, has pleaded guilty to defrauding Sumter Behavioral Health Services (SBHS), a 501c3 non-profit.
Evidence obtained in the investigation revealed that Ellis, between 2013 and 2020, while employed by SBHS as its Financial Officer defrauded the non-profit out of at least $800,000 by diverting funds from SBHS banking accounts to his own personal banking accounts to which he was not entitled.
“This Office is committed to prosecuting economic crimes, especially those that take advantage of organizations that treat some of the most vulnerable in our community,” said U.S. Attorney Corey F. Ellis. “We appreciate the efforts of all state and federal agencies involved in this case.”
“Behavioral health organizations depend on every dollar allocated to treat those seeking help for their substance abuse challenges,” said FBI Columbia Special Agent in Charge, Susan Ferensic. “It is inexcusable for someone with a high-ranking position, like Ellis, to steal the organization’s funds for personal benefit. The FBI will continue to work jointly with the Sumter County Sheriff’s Office and other law enforcement partners to uncover the misuse of funds and hold the perpetrators accountable.”
Ellis faces a maximum penalty of twenty years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. Senior United States District Judge Terry Wooten accepted the guilty plea and will sentence Ellis after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the FBI and the Sumter County Sheriff’s Department. Assistant U.S. Attorney Amy Bower is prosecuting the case.
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Star Woman Sentenced to 14 Months for Making False Statements to Obtain $11 Million in Government Contracts Designated for Service-Disabled Veteran BusinessesRead the Press Release
BOISE – A Star woman was sentenced to 14 months in federal prison for falsely claiming that a business she controlled qualified as a service-disabled veteran-owned small business. By making the false statements, she made it appear that her business was eligible for more than $11 million in government procurement contracts at two military bases.
According to court records, between October 2012 and May 2018, Vicki Rice, 61, of Star, Idaho, willfully made materially false certifications that her business, CAM Services, Inc. (“CAM”), was qualified to compete for and obtain government contracts set aside for service-disabled veteran-owned small businesses. While CAM’s organizing documents supported Rice’s assertion that it was owned by a service-disabled veteran and that it qualified for the contracts, investigation revealed that the business was not, in fact, qualified. Rice, who is not a service-disabled veteran, actually controlled the business. And she willfully made the false certifications to make the business seem eligible for the government contracts.
The Defendant made her false statements in the System for Award Management, which is a database for federal contractors operated by the General Services Administration. Contractors must certify that they are qualified to compete for and receive federal procurement contracts in the System. In addition, contractors must annually certify their continued eligibility for government contracts set aside for service-disabled veteran-owned businesses.
On behalf of CAM, Rice submitted bids on commissary contracts at two military bases. Both contracts were set aside for service-disabled veteran-owned small businesses. CAM was awarded the contracts, which had a combined value of over $11 million over five years, and tax returns showed that Rice earned $480,039 from CAM between 2012 and 2019.
In addition to the 14-month sentence, Senior U.S. District Judge Bill R. Wilson, from the Eastern District of Arkansas, sitting by designation, ordered Rice to pay the $480,039 she reported earning from CAM in restitution to the Department of Defense and to serve three years of supervised release following her prison sentence. Rice pleaded guilty to the charge on April 12, 2022.
“Service-disabled veterans deserve better than to lose out on government contracts because someone else cheats the system,” said U.S. Attorney Josh Hurwit. “Our office will vigorously investigate and prosecute those who unlawfully subvert the government contracting process for their own personal gain.”
“Fraudulent schemes such as this fleece the government and deserving veterans who served our country,” said Special Agent in Charge Terry Pfeifer of the GSA Office of Inspector General. “GSA OIG will continue working with law enforcement partners to combat federal contract fraud.”
“This case demonstrates the commitment of the Department of Defense Office of Inspector General's Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursuing those who undermine the integrity of government-sponsored small business initiatives,” said Michael Mentavlos, Special Agent in Charge of DCIS's Southwest Field Office. “Individuals who engage in activity that deprives legitimate program participants of valuable economic opportunities will be thoroughly investigated and held accountable.”
“Falsifying documents to gain access to SBA program funds intended for the nation’s small businesses is reprehensible,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
U.S. Attorney Hurwit, of the District of Idaho, made the announcement and commended the following agencies for cooperative efforts that led to the prosecution of this case: the General Services Administration Office of Inspector General, the Department of Defense Office of Inspector General, the Small Business Administration Office of Inspector General, and the Internal Revenue Service Criminal Investigations.
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St. Louis man sentenced to six years in prison for drug and gun crimesRead the Press Release
ST. LOUIS – U.S. District Court Judge Henry E. Autrey on Thursday sentenced a St. Louis man caught three times with drugs or guns, or both, to six years in prison.
Carlos D. Bell Jr. pleaded guilty in March to two counts of being a felon in possession of a firearm and two counts of possession with the intent to distribute fentanyl.
Bell admitted being caught twice with a gun and three times with fentanyl or marijuana in a three-month period starting in September 2020. On Sept. 8, 2020, Bell was arrested for outstanding warrants by members of the St. Louis Metropolitan Police Department, who found marijuana on him and a loaded .40 caliber pistol with a large capacity magazine on the front seat of Bell’s car.
On October 3, 2020, Bell was pulled over by the Jefferson County Sheriff’s Department after running a stop sign. Deputies found 196 capsules containing fentanyl.
After Bell was federally indicted in November 2020, St. Louis police detectives conducted surveillance before arresting Bell. They saw Bell conduct a hand-to-hand transaction in front of his home, and found a Glock pistol with a large-capacity magazine, a second pistol, marijuana and 24 capsules containing fentanyl. Police also found plates and grinders with drug residue, empty capsules, and two loaded firearm magazines with ammunition in the kitchen.
The case was investigated by the St. Louis Metropolitan Police Department and the Jefferson County Sheriff’s Department and is being prosecuted by Assistant U.S. Attorney Zachary Bluestone.
South Carolina Man Pleads Guilty to Felony Charges for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A South Carolina man pleaded guilty today to two felony charges for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
George Amos Tenney III, 35, of Anderson, South Carolina, pleaded guilty in the District of Columbia to civil disorder and obstruction of an official proceeding. According to court documents, in December 2020, Tenney made plans to travel to Washington on Jan. 6, 2021. He sent a Facebook message on Dec. 28, 2020, that stated, among other things, “It’s starting to look like we may siege the capital building and congress if the electoral votes don’t go right.”
On Jan. 6, Tenney illegally entered the Capitol Building. He moved to the area inside the Rotunda Doors, arriving there at approximately 2:24 p.m. Rioters had amassed outside the doors and were struggling against the police officers attempting to secure the building. Tenney tried to open the Rotunda Doors to allow the rioters inside, and he had contact with multiple federal employees while doing so. He succeeded in opening one of the doors. A police officer who was outside tried to push them closed, and Tenney resisted, pushing against the door to try to keep it open. An employee of the House Sergeant at Arms then ran towards Tenney, pushing him aside in an effort to close the door. Tenney grabbed the employee by the shoulder. He and other rioters surrounded the employee, and a heated conversation began. A rioter from outside the doors forced his way inside and pushed the employee of the House Sergeant at Arms away.
Tenney, meanwhile, continued to stand in the doorway, and locked arms with a Capitol Police officer who was just outside the doors. He and the officer moved inside, towards the Rotunda. Tenney pushed away the officer’s hand. While in the Rotunda, he yelled, “Stand up, Patriots, stand up!” He then returned to the Rotunda Doors, where he assisted rioters entering the building, patting them on the back and helping them move forward. When another Capitol Police officer entered the area, Tenney pushed him to the side. Tenney ultimately had to be pulled back inside so that the Rotunda Doors could be closed to keep other rioters from entering. He then retreated to the Rotunda and exited the Capitol through a window at approximately 2:32 p.m.
Tenney was arrested on June 29, 2021, in Anderson, South Carolina. He is to be sentenced on Oct. 20, 2022. He faces a statutory maximum of five years in prison in prison on the civil disorder charge and up to 20 years in prison on the obstruction charge. The charges also carry potential financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office for the District of Columbia and the Justice Department’s National Security Division are prosecuting the case, with valuable assistance provided by the U.S. Attorney’s Office for the District of South Carolina.
The FBI’s Columbia, South Carolina Field Office investigated the case, with valuable assistance from the FBI’s Washington Field Office, the U.S. Capitol Police and the Metropolitan Police Department
In the 17 months since Jan. 6, 2021, more than 840 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov
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Second Jamaican National Sentenced for Stealing more than $970,000 in Lottery ScamRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Jamaican national Rajay Dobson of Trelawny Parish, Jamaica, was sentenced to 63 months in federal prison, followed by 3 years of supervised release and was ordered to pay $881,477.41 in restitution for his role in a lottery scheme that targeted an elderly woman in Estes Park, Colorado.
According to court documents, Dobson and another Jamaican national, Leonard Luton, conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz but needed to pay thousands of dollars in “fees” in order to receive her winnings. During the scam, Dobson instructed the victim to mail packages of cash and cashier’s checks, in addition to six iPhones, to the addresses of Luton’s friends. Dobson called the victim hundreds of times, grooming her to convince her to carry out his instructions.
On two occasions, at Dobson’s direction, Luton made trips to the victim’s home in Estes Park to pick up packages of cash. During the first trip in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. In total, the victim was scammed out of more than $970,000.
United States District Court Judge Christine M. Arguello sentenced Dobson on June 29, 2020. He pleaded guilty on March 24, 2022 to one count of conspiracy to commit mail fraud. The Court also entered an order of forfeiture in the amount of $881,477.41 and imposed a $100 special assessment fee.
“These fraudsters took advantage of one of our community’s most vulnerable victims,” said U.S. Attorney Cole Finegan. “We want to make it clear: individuals who prey on the elderly will be held accountable.”
"Scammers often prey on elderly individuals, who might be embarrassed and reluctant to come forward. In this case, by the time legitimate law enforcement was notified, the victim was defrauded of almost one million dollars," said Special Agent in Charge Michael Schneider. "The FBI is committed to combating these scammers, even those located outside of the United States."
Luton was sentenced on August 4, 2021, to 108 months in prison after being convicted at trial in February of 2020. His sentence was enhanced due to multiple instances of obstruction of justice. He was also ordered to pay $881,477.41 in restitution to the victim and an order of forfeiture was issued in the amount of $484,123.16.
After Luton was sentenced, the United States successfully located, arrested, and extradited Dobson from Jamaica.
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch, Sarah Weiss and Elizabeth Young prosecuted this matter.
CASE NUMBER: 19-cr-00098
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Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Salem, Oregon area drug trafficker was sentenced to more than 12 years in federal prison today after being arrested with distribution quantities of methamphetamine and heroin and two handguns.
Chase Benjamin Russell-Brown, 31, was sentenced to 150 months in federal prison and four years’ supervised release.
According to court documents, on November 5, 2019, officers from the Salem Police Department Strategic Investigations Unit (SIU) were conducting surveillance at a Salem hotel known for drug activity. Officers observed Russell-Brown, who had twice been arrested in the prior two months for drug trafficking offenses, exit the hotel carrying a bag and leave in a vehicle with expired registration. When the officers attempted a traffic stop, Russell-Brown fled.
Russell-Brown led officers into a crowded grocery store parking lot where the officers attempted to block him in a parking aisle. When officers positioned behind Russell-Brown’s vehicle approached on foot, Russell-Brown put his car into reverse, accelerated, and rammed a patrol car, nearly hitting the officers. After the collision, an officer in another patrol car drove forward and contacted Russell-Brown’s vehicle from the front, attempting to pin the vehicle in place. As officers approached on foot a second time, Russell-Brown continue to accelerate the vehicle trying to break free. Finally, officers were able to break the window of Russell-Brown’s vehicle and place him under arrest.
Officers found two loaded handguns on Russell-Brown’s person and several dozen grams of methamphetamine and heroin, drug packaging material, and additional ammunition and magazines in his vehicle. In total, approximately 380 grams of methamphetamine were seized from Russell-Brown during his three drug trafficking arrests.
On November 21, 2019, a federal grand jury in Portland returned an eight-count indictment charging Russell-Brown with possessing with intent to distribute methamphetamine and heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and illegally possessing a firearm as a convicted felon.
On September 16, 2020, Russell-Brown pleaded guilty to possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Repeat Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
TUCSON, Ariz. – On June 28, 2022, Modesta Solano, 51, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker to 10 years in prison, followed by three years of supervised release. Solano previously pleaded guilty on April 6, 2022, to conspiracy to distribute fentanyl.
A federal grand jury indicted Solano in October 2020 on drug and firearms charges after Solano sold a handgun and over 4,000 fentanyl pills to an undercover agent in Tucson. Solano was prohibited from possessing firearms due to a prior felony drug conviction for which she was sentenced to five years. Solano was on supervision when she committed these new offenses.
Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tucson Police Department conducted the investigation in this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 20-01978-TUC-JCH (MSA)
RELEASE NUMBER: 2022-103_SOLANO# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Randolph County man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Albert Perry Shreve, III, of Elkins, West Virginia, was sentenced today to five months of home confinement for a drug charge, United States Attorney William Ihlenfeld announced.
Shreve, 43, pleaded guilty in February 2022 to one count of “Distribution of Methamphetamine.” Shreve admitted to selling methamphetamine in Randolph County in April 2021.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug Task Force investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Prairie du Chien Resident Sentenced to 10 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Christopher Fernette, 45, Prairie du Chien, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 120 months in federal prison for possessing methamphetamine with intent to distribute. Fernette pleaded guilty to this charge on April 6, 2022. Judge Conley also ordered Fernette to forfeit $17,200.
During the course of a long-term, multi-agency investigation, law enforcement officers determined that a group of people, including Fernette, distributed significant amounts of methamphetamine in western Wisconsin. Investigators also learned that Fernette purchased methamphetamine from sources-of-supply who lived in multiple states.
On April 3, 2021, investigators followed Fernette as he and a passenger crossed into Wisconsin from Minnesota. When the car stopped at a tavern in Ferryville, a deputy from the Crawford County Sheriff’s Office approached Fernette and asked for permission to pat him down for weapons. Fernette consented to the pat down but attempted to hide a small plastic baggie in his hand. When the deputy questioned Fernette about the object in his hand, Fernette tossed the baggie and became combative. A fight ensued and the deputy eventually detained Fernette.
After the altercation, the deputy located the baggie and determined that it contained a personal use amount of methamphetamine. The deputy then found a discarded black canvas tool bag in a ditch that contained approximately three pounds of methamphetamine. The deputy used his canine partner to sniff the car that Fernette had been driving. When the canine alerted, investigators searched the car and found $17,200 in cash.
During a post-arrest interview, Fernette waived his Miranda rights and admitted that he and the passenger drove to Minnesota to purchase the methamphetamine found inside the black canvas bag. Fernette also explained that he and the passenger planned to split the methamphetamine with a third person in Wisconsin.
At sentencing, Judge Conley noted that the three pounds of methamphetamine found on April 3, 2021 likely understated the total amount of methamphetamine that Fernette sold on the street.
The charge against Fernette was the result of an investigation conducted by the Crawford County Sheriff’s Office, Prairie du Chien Police Department, Richland-Iowa-Grant Task Force, Dakota County (Minnesota) Drug Task Force, Iowa Division of Criminal Investigation, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Philadelphia Heroin Supplier Sentenced to 10 Years for Drug TraffickingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Roberto DeJesus Negrin, 35, of Philadelphia, PA, was sentenced to ten years in prison and five years of supervised release by United States District Court Judge Nitza I. Quinones-Alejandro for multiple narcotics offenses stemming from his role as a drug trafficker and a leading supplier of heroin in one of the most drug-laden neighborhoods in Philadelphia.
In January 2022, the defendant pleaded guilty to an Indictment charging him with conspiracy to distribute heroin, and two counts of possession with intent to distribute heroin. In pleading guilty, the defendant acknowledged that he coordinated shipments of heroin into Philadelphia and arranged for it to be packaged into street-level, sale-ready quantities at two locations which he obtained for the purpose of operating this bagging operation. During much of 2018, the defendant was the main heroin supplier to a drug trafficking organization that controlled an open-air drug market in the Kensington section of the city. In November 2018, when law enforcement executed search warrants at the two locations controlled by the defendant, they recovered over two kilograms of heroin in each place and other items consistent with drug trafficking.
“Drug use and the violence that surrounds it are – and have been – an epidemic in Philadelphia, and the federal government is aggressively prosecuting those who seek to profit from it,” said U.S. Attorney Romero. “This defendant played a key role in the supply chain of heroin distribution, for which he will now spend a decade in prison. We want to thank our law enforcement partners in this case, the FBI and the Philadelphia Police Department, for their hard work and dedication.”
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Timothy M. Stengel.
Passaic County Accountant Admits Subscribing to False Returns and Conspiring to Defraud United StatesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man who was employed as a certified public accountant in northern New Jersey today admitted failing to disclose income on his tax returns, U.S. Attorney Philip R. Sellinger announced.
William Kawam, 57, of Hewitt, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with subscribing to false tax returns and conspiracy to defraud the United States.
According to documents filed in this case and statements made in court:
In 2015, Kawam and a conspirator undertook a scheme to conceal certain money from the IRS. The conspirator compensated Kawam for a portion of his accounting services by providing him with a credit card belonging to one of the conspirator’s businesses that Kawam could use for personal expenses. Kawam failed to report the charges as income, and the conspirator failed to report the charges as business expenses. Kawam failed to report $146,605 for tax years 2015, 2016, and 2017, resulting in a tax loss of approximately $54,400.
The count of subscribing to false tax returns to which Kawam pleaded guilty carries a maximum penalty of three years in prison and a $100,000 fine; the conspiracy to defraud the United States count carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 21, 2022.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of the FBI, under the direction of Acting Special Agent in Charge Terence Reilly in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
Operators of over $16 Million International Boiler Room Fraud Sentenced to Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER WRIGHT and STEVEN HOOPER were sentenced to 52 months in prison and 42 months in prison, respectively, for defrauding elderly victims in connection with the fraudulent sale of stock and fake carbon credits as part of an over $16 million international telemarketing scheme. WRIGHT and HOOPER previously pled guilty before U.S. District Judge Jed S. Rakoff, who imposed the sentences.
According to the allegations in the Indictment, court filings, and statements made in Court:
From in or about 2009 up to and including in or about 2015, WRIGHT, HOOPER, and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds of the fraud through bank accounts in the United States and foreign countries. WRIGHT and HOOPER used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily elderly or retired individuals residing in the United Kingdom. Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious. Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more. In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by one of WRIGHT’s and HOOPER’s co-conspirators. WRIGHT and HOOPER assisted in emailing of documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims. Victims who tried to sell their investments found they were unable to do so. The victims never received a refund on their principal or any return on their investments.
In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, WRIGHT, HOOPER, and their co-conspirators set up overseas bank accounts, including in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies, which were used to launder a substantial portion of the fraud proceeds.
The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time. From in or about 2009 until in or about 2011, WRIGHT and his co-conspirators sold the stock of Florida-based corporation DirectView Holdings, Inc. (“DirectView”) to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time. In fact, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”
From in or about 2011 until in or about 2015, WRIGHT, HOOPER, and their co-conspirators engaged in the sale of fraudulent “carbon credits.” The boiler room callers appealed to victims by claiming that the investments would be environmentally friendly and help address the climate crisis. “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere. “Carbon offsets,” which are tied to particular carbon-dioxide emissions reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.” The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return. In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.
In total, victims lost over $16 million.
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In addition to their prison terms, WRIGHT, 49, and HOOPER, 49, who are both citizens of the United Kingdom, were ordered to pay restitution in the respective amounts of $16,407,459.52 and $14,457,104.19. WRIGHT and HOOPER were also ordered to pay forfeiture in the amount of $1,632,443.10 and $760,977.12, respectively.
Mr. Williams praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein, Olga I. Zverovich, and David Felton are in charge of the prosecution.
Ocean City Business Owner Admits to Intentionally Failing to Report $70,000 in Annual Income TaxRead the Press Release
Baltimore, Maryland – Sunil Chawla (“Chawla”), age 66, of Berlin, Maryland, pleaded guilty today to tax fraud. As part of his plea agreement, Chawla will be required to pay $70,000 in restitution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, Chawla owned and operated “India Emporium”, a seasonal retail store near Ocean City, Maryland for over 20 years. Chawla also received income from a business (Company 1) operated by his son, defendant Saurabh Chawla (“Saurabh”), age 36, of Aurora, Colorado, from 2009 to August 2019. Chawla’s duties at Company 1 included receiving electronics and other items obtained by Company 1. Chawla was involved in reselling, maintaining and tracking Company 1’s inventory, and packaging and shipping daily orders as directed by his son, Saurabh. From 2009 to 2018, Chawla received an annual salary from Company 1 of approximately $60,000. Each month, Chawla frequently wrote himself a $5,000 check that was drawn against Company 1’s bank account. In 2009 and 2010, Chawla intentionally did not report any income from Company 1. Ultimately, from 2012 to 2018, Chawla repeatedly engaged in tax fraud by underreporting his $60,000 annual salary at Company 1, resulting in a tax loss of $70,000 to the IRS.
Chawla and Saurabh discussed and agreed on the amounts that Chawla would list on his tax returns, which would then be listed on Saurabh’s returns as an expense of Company 1. In later years, part of Chawla’s compensation was fraudulently classified by Chawla and Saurabh as a non-taxable gift rather than compensation related to Chawla’s employment in an effort to lower Chawla’s taxable income in any given year.
Further, Saurabh failed to file a Form 1099 each year to report Chawla’s income to the IRS. In September 2013, Chawla emailed Saurabh, expressing his concern about whether a 1099 had been filed by Company 1 that would require Chawla to pay self-employment taxes.
As stated in his plea agreement, Chawla submitted a U.S. Joint Income Tax Return, IRS Form 1040, for the year 2017, in which he falsely reported that his adjusted joint gross income was $19,849 and that his total tax due was $3,571 when, in fact, Chawla knew that his joint taxable income was much greater than the amount reported.
In September 2021, U.S. District Judge Catherine C. Blake sentenced co-defendant Saurabh Chawla to 66 months in federal prison, followed by three years of supervised release for conspiracy, interstate transportation of stolen goods, and tax evasion. The Court also ordered Saurabh Chawla to pay $713,619 in restitution and sign an order of forfeiture requiring him to forfeit several fraud related assets including a 2013 Tesla Model S, $2,308,062.61 from accounts held in his name, and the sale of property in Aurora, Colorado.
Sunil Chawla faces a maximum sentence of three years in federal prison followed by one year of supervised release for tax fraud. U.S. District Judge Catherine C. Blake has scheduled sentencing for October 13, 2022, at 2 p.m.
United States Attorney Erek L. Barron commended the IRS and HSI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Oakland Resident Charged with Fentanyl and Methamphetamine Sales in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO – Alex Murillo appeared in federal court today and was ordered detained in custody on charges of distribution of fentanyl and methamphetamine, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon.
Murillo, 26, who resides in Oakland, was arrested on June 21, 2022, following the filing of a federal criminal complaint. The complaint charges multiple street drug sales by Murillo in San Francisco’s Tenderloin District. It specifically alleges that on April 7, 2022, Murillo met up with two undercover police officers near 8th and Market Streets in the Tenderloin and sold the undercover officers approximately 5 grams of a substance containing fentanyl for $100. The complaint further alleges that on June 8, 2022, Murillo communicated again with one of the undercover police officers and then met with the undercover officer in the area of the San Francisco Civic Center BART platform in the Tenderloin. This time, the complaint alleges, Murillo sold the undercover officer approximately two ounces of suspected fentanyl and approximately three ounces of methamphetamine for $1,400.
In a filed memo seeking his detention, the government described the arrest of Murillo on June 21 as he was leaving his residence in Oakland. Police searched Murillo upon his arrest and found in his backpack a digital scale, over three ounces of a substance containing methamphetamine, and over an ounce of a substance containing cocaine base.
The complaint charges Murillo with one count of distributing fentanyl in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C). The maximum statutory penalty for the charge is 20 years of imprisonment with three years of supervision upon release from prison. The complaint also charges Murillo with one count of distributing 50 grams or more of a substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(B)(viii). The statutory penalty for this charge is a minimum of five years imprisonment and a maximum of 40 years imprisonment as well as a minimum of 4 years of supervision following release from prison with a maximum of life supervision. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the complaint are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Murillo made his initial court appearance to face the federal complaint on June 22, 2022, in United States District Court in San Francisco. He appeared today before United States Magistrate Judge Laurel Beeler for a detention hearing and was ordered to remain detained in custody. His next court appearance is a status hearing scheduled for July 13 before United States Magistrate Judge Alex Tse.
Assistant U.S. Attorneys Christa Hall and Chris Kaltsas are prosecuting the case, with the assistance of Lance Libatique. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
Nurse Practitioner Pleads Guilty to Conspiracy in $15 Million Durable Medical Equipment SchemeRead the Press Release
CHARLOTTE, N.C. – Justin Segrest, 44, of Mount Airy, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to a conspiracy charge for his role in a durable medical equipment (DME) scheme that defrauded Medicare of almost $15 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.
According to filed plead documents and today’s plea hearing, during 2018 and 2019, Segrest was a nurse practitioner and was working for a telemedicine company based in Delaware. During the relevant time, Segrest caused thousands of claims to be submitted to Medicare for medically unnecessary orthopedic braces and other DME. As Segrest admitted in court today, Segrest facilitated the scheme by making false claims in medical records to support the fraudulent claims. He did so by signing false medical records describing purported “assessments” of Medicare beneficiaries and certifying that he had performed corresponding medical examinations when, in fact, Segrest had no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Segrest received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which he signed and returned to the telemedicine company in exchange for $15 for each purported assessment that he performed. Through this scheme, Segrest caused the submission of nearly $15 million in false and fraudulent claims to Medicare.
Following today’s plea hearing, Segrest was released on bond. The conspiracy charge carries a maximum prison term of five years and a $250,000 fine. A sentencing date for Segrest has not been set.
The investigation was handled by the FBI and HHS-OIG. Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
New Orleans Man Sentenced to 168 Months on Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that ANDREW PAYTON, age 48, a resident of New Orleans, Louisiana, was sentenced by U.S. District Judge Wendy B. Vitter on Tuesday June 28, 2022 to serve 168 months in the custody of the Federal Bureau of Prisons after pleading guilty to the charge of possession with the intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B). PAYTON’s federal term of imprisonment is to be followed by five years of supervised release.
Federal, state, and local law enforcement officials investigated the 2019 distribution of illegal narcotics into Orleans and St. Tammany Parishes from the Houston, Texas area. This investigation culminated with the indictment of PAYTON on October 18, 2019.
The case was investigated by the United States Drug Enforcement Administration (D.E.A.), the Louisiana State Police, the New Orleans Police Department, and the St. Tammany Parish Sheriff’s Office. Assistant United States Attorney Maurice E. Landrieu, Jr.is in charge of the prosecution.
Multiple Individuals Convicted in Crackdown on Unlicensed Marijuana Dispensary IndustryRead the Press Release
SAN DIEGO – Shahram “Sean” Sheikhan and Sabriana Williams pleaded guilty in federal court today to drug distribution charges, the latest individuals convicted as part of an ongoing investigation by federal and state authorities targeting unlicensed, illegal marijuana dispensaries throughout Southern California.
From at least 2019 through 2022, Sheikhan and Williams, along with others, operated an unlicensed, illegal marijuana business known as “Cannaland,” which functioned primarily as a wholesale supplier of marijuana and marijuana products to unlicensed and illegal marijuana dispensaries in Southern California. Additionally, Cannaland operated as an unlicensed, illegal marijuana dispensary in its own right, serving individual customers.
In April 2021, law enforcement executed a search warrant at Cannaland, which at the time was located at 10630 Willie Baker Way in Spring Valley, California. During the execution of the search warrant, more than 3,000 pounds of marijuana was seized, with an estimated street value in excess of $6 million, along with five firearms. Following the search warrant, Sheikhan and Williams personally coordinated and facilitated the procurement of replacement firearms for the business’ armed security guards and continued to operate their business and distribute vast amounts of marijuana. As part of their plea agreements, Sheikhan and Williams admitted the amount of marijuana products distributed during the course of the conspiracy exceeded 3,000 kilograms.
Sheikhan and Williams join several others who have pleaded guilty to various drug, firearm, and money laundering charges in federal court as part of this investigation.
“Over the last two years, federal and state law enforcement targeted the operation of dozens of illegal, unlicensed marijuana dispensaries in San Diego County in order to enforce the law and curtail the related crime alleged in this case,” Grossman said. He thanked the prosecution team and the investigating agencies for their efforts to protect the community.
“The FBI is committed to keeping our communities safe from the vast array of violent crimes and criminal activity which accompanies these illegal establishments,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our law enforcement partners at the San Diego County Sheriff’s Department, the San Diego Police Department, the Chula Vista Police Department, the Internal Revenue Service, the United States Attorney’s Office for the Southern District of California, and the San Diego County District Attorney’s Office for their commitment and collaboration on these cases. It’s these ongoing partnerships which enable law enforcement from around the county to be agile and able to handle these types of cases using a variety of investigative techniques with different prosecutive options.”
“IRS has been a part of the Organized Crime Drug Enforcement Task Force (OCDETF) for over 30 years. ‘Stronger Through Partnership’ is the OCDETF motto, and the success of this highly impactful investigation truly exemplifies that motto,” noted Ryan L. Korner, Special Agent in Charge of the Los Angeles Field Office of IRS-Criminal Investigation (IRS-CI). “The primary motivation of drug traffickers is greed. They don’t care how their actions negatively impact innocent people, the community, or our society. The role of IRS-CI is to fully dismantle these criminal organizations by following the money that fuels the drug trade, and ultimately ensure that the peddlers of these illicit drugs do not reap the benefits of their criminal activity.”
“The Sheriff's Department has been a proud partner in the collaborative law enforcement response to organized criminal activity related to unlicensed marijuana distribution in the East County,” said Kelly A. Martinez, Undersheriff of the San Diego County Sheriff’s Department. “Sheriff deputies, investigators, and analysts committed countless hours of investigative support, surveillance, and analysis to this effort. Today's outcome is a culmination of the dedication of federal, state, and local law enforcement partnerships in the region which are the hallmark of public safety in San Diego. East San Diego County is safer today because of this hard work.”
“This operation demonstrates that strong partnerships, including participating on federal task forces, keeps our community safe,” said San Diego Police Department Chief David Nisleit. “The San Diego Police Department is committed to working with neighboring law enforcement agencies to combat organized crime in our region. We are proud of the work that has been done to close these illegal distribution centers and stop the violent crime associated with them.”
“Illegal marijuana dispensaries have been responsible for numerous complaints by our community members,” added Chula Vista Police Department Chief Roxana Kennedy. “We’ve seen many of them open up near our schools over time. They pose a significant health and safety hazard to the public, especially our youth, and they move around trying to avoid enforcement. Collaborating with our law enforcement partners in the region and pooling our resources to stop these criminal organizations from putting our communities at risk is absolutely critical.”
To date, law enforcement has executed dozens of search warrants and charged more than 30 individuals with violating state and federal law. As a result of this joint effort, law enforcement has seized nearly 30,000 pounds of marijuana and marijuana products; 68 firearms, including ghost guns; and millions of dollars in currency, jewelry, and other valuables. Nearly 30 unlicensed, illegal marijuana dispensaries and wholesale distributors have been shut down as a result.
Of those who have been charged, two groups of individuals recently pleaded guilty in federal court besides Sheikhan and Williams.
The first group, headed by Lance Kachi, admitted to operating multiple unlicensed, illegal marijuana dispensaries in Spring Valley and El Cajon, including locations at 9545 Campo Road, 9600 Campo Road, 9070 Jamacha Road, 985 Greenfield Drive, and 9143 Birch Street. Since at least 2020, Kachi, Michael Yono, Avrin Yakou, Fabian Yakou, and others, oversaw multiple unlicensed dispensaries that would each generate up to $25,000 daily, and were open 24 hours a day, seven days a week.
Kachi and his coconspirators grossed millions of dollars in revenue from their illegal, unlicensed operation. Several times a week, Kachi and others would meet at various hotels where they would spend hours counting hundreds of thousands of dollars in dispensary proceeds using automated money counters. Before leaving the room with bags of money, the defendants would pack up their money counters as well as the various notes they took to account for their profits and expenses, such as the cost of armed security.
In July 2021, law enforcement executed multiple search warrants targeting the Kachi operation. In May 2022, Kachi, Yono, and the Yakou brothers pleaded guilty to various drug, firearms, and money laundering charges, as well as the forfeiture of millions of dollars in cash, jewelry, and other valuables.
Also in May 2022, a second group, comprised of the Shamoun brothers – Sean, Alvin, Vincent, and Andrew – pleaded guilty in federal court to charges stemming from their wholesale distribution of marijuana products to unlicensed, illegal marijuana dispensaries from Los Angeles to San Diego. Operating under the name of Babylon’s Garden, the Shamoun brothers manufactured a variety of marijuana products at a warehouse in San Diego, which they would deliver directly to dispensaries or ship in the United States mail. The Shamoun brothers admitted that their operation was responsible for the manufacturing and distribution of more than 3,000 kilograms of marijuana.
In their plea agreements, all the various defendants referenced above admitted that they had an obligation to report their income to both the Internal Revenue Service (“IRS”) and California state tax authorities, as well as pay taxes on any income derived from these illegal businesses, which they failed to do. Additionally, all individuals agreed to forfeit seized cash, which currently exceeds $5 million.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 22cr1445-CAB
Name
Age
Hometown
Shahram “Sean” Sheikhan
52
Las Vegas, Nevada
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Maximum Penalties: Forty years in prison with a mandatory minimum sentence of five years and a $5 million fine.
DEFENDANT Case Number 22cr1444-CAB
Name
Age
Hometown
Sabriana Williams
26
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Maximum Penalties: Twenty years in prison and a $1 million fine.
DEFENDANT Case Number 22cr1261-CAB
Name
Age
Hometown
Travis George
44
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Maximum Penalties: Forty years in prison with a mandatory minimum sentence of 5 years and a $5 million fine.
DEFENDANT Case Number 22cr1002-CAB
Name
Age
Hometown
Lance Kachi
33
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)
Maximum Penalties: For the drug charges: 20 years in prison, $1 million fine. For money laundering charges, 20 years in prison, and a fine of $500,000 or twice the value of the monetary instrument or funds involved.
DEFENDANT Case Number 22cr1006-CAB
Name
Age
Hometown
Michael Yono
32
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)
Maximum Penalties: For the drug charges, 20 years in prison and a $1 million fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved. For the firearms charges, life in prison with a mandatory minimum sentence of 5 years, and a $250,000 fine.
DEFENDANT Case Number 22cr1000-CAB
Name
Age
Hometown
Avrin Yakou
30
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)
Maximum Penalties: For the drug charges, 20 years in prison and a $1,000,000 fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved. For the firearms charges, life in prison with a mandatory minimum sentence of 5 years, and a $250,000 fine.
DEFENDANT Case Number 22cr1001-CAB
Name
Age
Hometown
Fabian Yakou
26
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Maximum Penalties: For the drug charges, 20 years in prison and a $1,000,000 fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved.
DEFENDANTS Case Number 21cr2994-CAB
Name
Age
Hometown
Sean Shamoun (1)
32
San Diego, California
Alvin Shamoun (2)
41
San Diego, California
Vincent Shamoun (3)
39
San Diego, California
Andrew Shamoun (4)*
35
San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846
Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)
Maximum Penalties: For the drug charges, 40 years in prison with a mandatory minimum sentence of five years and a $5 million fine (*20 years in prison and a $1 million fine). For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved.
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
San Diego County Sheriff’s Department
San Diego Police Department
Chula Vista Police Department
MorseLife Nursing Home Health System Agrees to Pay $1.75 Million to Settle False Claims Act Allegations for Facilitating COVID-19 Vaccinations of Ineligible Donors and Prospective DonorsRead the Press Release
The Justice Department announced today that MorseLife Health System Inc. (MorseLife) has agreed to pay the United States $1.75 million to resolve its potential liability under the False Claims Act for facilitating COVID-19 vaccinations for hundreds of individuals ineligible to participate in the Centers for Disease Control and Prevention’s (CDC) Pharmacy Partnership for Long-Term Care Program (LTC PPP), a program specifically designed to vaccinate long-term care facility (LTCF) residents and staff when doses of COVID-19 vaccine were in limited supply at the beginning of the CDC COVID-19 Vaccination Program. MorseLife is a not-for-profit corporation located in West Palm Beach, Florida, that oversees health care facilities on its campus, including a nursing home and an assisted living facility.
“This specific vaccination program was designed to protect some of the nation’s most vulnerable individuals at a critical time when the COVID-19 pandemic was devastating that population,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who misused vital pandemic relief programs for their own financial gain.”
“The settlement today exemplifies my office and its law enforcement partners’ strong commitment to combatting all forms of health care fraud-related schemes, especially those that exploit government resources designed to assist individuals who were acutely affected by the COVID-19 global pandemic,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will not relent in holding accountable those in South Florida who exploit health care programs intended to assist vulnerable populations during the COVID-19 pandemic.”
“It is disturbing to see initiatives designed to provide protections against COVID-19, for individuals who critically need them, manipulated in this way,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Region. “Our agency, working closely with our law enforcement partners, will continue to vigorously investigate those believed to illegally divert resources from federal pandemic-related health programs.”
The CDC announced the launch of the LTC PPP in October 2020. Because the LTCF population was at the highest risk of COVID-19 infections, the CDC created the LTC PPP to prioritize vaccinations of that population as quickly as possible and while vaccine availability was limited. Under this program, the CDC engaged with pharmacy partners to provide “end to end” management of the COVID-19 vaccination process, including conducting on-site vaccination clinics at the nursing homes and other LTCFs. Over 8 million vaccine doses were administered to LTCF residents and staff through this program.
MorseLife enrolled in the LTC PPP and scheduled its first vaccination clinic at MorseLife on Dec. 31, 2020 (the vaccination clinic) for residents and staff of the Joseph L. Morse Health Center, a skilled nursing facility on MorseLife’s campus. The settlement resolves allegations that MorseLife knew that the LTC PPP covered only LTCF residents and staff, but nevertheless invited and facilitated the vaccination of hundreds of ineligible persons at the clinic by characterizing them as “staff” and “volunteers,” many of whom MorseLife targeted for donations. Specifically, the United States alleged that MorseLife (1) characterized board members as “staff,” (2) directed the organization’s fundraising arm to invite donors and potential donors to the vaccination clinic, and (3) allowed the Vice Chairman of the MorseLife Health Systems Inc. Board and his brother to invite close to 300 ineligible individuals to receive the vaccine at MorseLife.
First, MorseLife allegedly invited members of MorseLife’s various boards of directors to the vaccination clinic and characterized them as “staff.” The vast majority of these individuals were donors to MorseLife. In addition to actual board members, MorseLife invited emeritus board members, as well as board members’ spouses, children, family members and friends to the vaccination clinic. In one instance, MorseLife’s CEO sent a text message to an ineligible individual stating, “I will find you when you come in the morning and we’re going to make you an employee of Morse . . . Guarantee you get the vaccine.” In all, MorseLife facilitated the vaccination of 128 ineligible board members, and their family and friends (along with the other ineligible persons described below).
Second, MorseLife’s CEO allegedly directed the MorseLife Foundation, the organization’s fundraising arm, to invite donors and potential donors to the vaccination clinic, encouraging Foundation employees to take advantage of the vaccination opportunity to target billionaires and millionaires for donations. For example, in one text message MorseLife’s CEO stated: “Of course go after the billionaires first hell we’re taking care of their life what the hell do you think you little boys and girls in the foundation go for the 25,000 I’ll go for the billions; I’m a little disappointed in the foundations mentality; I have delivered you 350 of the richest people in the country and you’re still thinking $25,000 gift . . . . Do not be weak be strong you have the opportunity to take advantage of everyone who needs the shot and figure out what they have and what we can go after and what their affinity [sic] as that’s what I would do [sic] I was running the foundation.”
Third, MorseLife’s CEO allegedly allowed the Vice Chairman of the MorseLife Health Systems Inc. Board and his brother to invite approximately 290 people to the vaccination clinic, none of whom lived or worked on the MorseLife campus and most of whom did not volunteer on MorseLife’s campus and had no prior affiliation with MorseLife. A significant number of these invitees were members of the same country club as the Vice Chairman and his brother, and some of the invitees flew to Florida just to get vaccinated at the clinic. As reflected in a MorseLife Foundation strategy document, “[t]his group was ‘recruited’ by [Vice Chairman and his brother] and owe allegiance to them at least as much as they owe it to us;” “[w]e allowed these people to be vaccinated mostly because [Vice Chairman and his brother] wanted us to;” “[t]hese prospects understand that and owe allegiance to [Vice Chairman and his brother] for arranging for them to get the vaccine;” and [w]e should use that allegiance to effectively get significant gifts from that group in a short amount of time.” The United States alleged that MorseLife falsely characterized donors and potential donors who had no previous affiliation with MorseLife, but were invited by the Foundation or the Vice Chairman and his brother, as “volunteers” for purposes of the LTC PPP.
Ultimately, the United States alleged that of 976 persons vaccinated at the Dec. 31, 2020, clinic, 567, or more than half, were ineligible to participate in the LTC PPP.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Florida, with substantial assistance from HHS-OIG, the FBI and the CDC. This matter was handled by Civil Division Fraud Section Attorneys Andy Mao, Natalie A. Waites, Elizabeth J. Kappakas and Jessica Sievert, and Assistant U.S. Attorney Rosaline Chan for the Southern District of Florida.
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. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil or criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Morris County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested for distributing and possessing videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Bryan Wesselius, 45, of Whippany, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor and was released on $100,000 unsecured bond, with home detention and electronic monitoring.
According to documents filed in this case and statements made in court:
From September 2021 through May 2022, Wesselius distributed material containing video files of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program, which allows internet users to trade digital files. An undercover law enforcement officer conducted online sessions using the (P2P) program. During multiple sessions, a user shared multiple files featuring videos of child sexual abuse from an IP address traced to Wesselius’ address. Law enforcement officials later recovered one file previously shared during one of those sessions from one of Wesselius’ electronic devices.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges. He also thanked the Boonton Township Police Department under the direction of Chief Michael Danyo, the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll, the Hanover Township Police Department under the direction of Chief Michael Loock and the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Clara Kim of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Montana man, woman sentenced to prison terms for trafficking drugs, including meth and fentanylRead the Press Release
BILLINGS — A Montana man and woman convicted of trafficking multiple drugs, including methamphetamine and more than 9,000 fentanyl pills, were each sentenced to prison terms this week, U.S. Attorney Jesse Laslovich said.
Eric Charles Swan, 35, of Wolf Point, was sentenced today to eight years in prison, to be followed by five years of supervised release. Swan pleaded guilty in March to possession with intent to distribute controlled substances.
Co-defendant Elizabeth Ardell Grace Ronshaugen, 30, of Great Falls, was sentenced on June 29 to four years in prison, to be followed by five years of supervised release. Ronshaugen pleaded guilty in March to possession with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement began investigating Swan and Ronshaugen in 2021 after receiving information of possible drug trafficking. In November, agents observed that Swan was traveling to Denver and returning to Montana. Law enforcement pulled over Swan and Ronshaugen near Buffalo, Wyoming, and Swan was found to have several fentanyl pills in the pocket of his clothing. Ronshaugen was found to have several fentanyl pills hidden in her clothing and approximately 52 additional fentanyl pills were located in a plastic zip lock bag on her person. Wyoming law enforcement searched the vehicle and found approximately 9,616 fentanyl pills, a little more than one pound of heroin, 103 grams of meth, a gram of cocaine, 14 Dialudid pills and $9,775 in U.S. currency.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Mississippi Pharmacist Returns $7.1 Million Unlawfully Taken from MedicareRead the Press Release
BIRMINGHAM, Ala. – The federal government has received $7.1 million in forfeited funds that were unlawfully obtained from Medicare by a Mississippi man who was convicted in 2021 of health care fraud and conspiracy to commit health care fraud, announced U.S. Attorney Prim F. Escalona and Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General.
In August 2021, Phillip Anthony Minga pleaded guilty to four counts of health care fraud and one count of conspiracy to commit health care fraud. In December 2021, Chief U.S. District Court Judge L. Scott Coogler sentenced Minga to 78 months in prison. At that time, the Court ordered Minga to repay more than $16.1 million in restitution and ordered him to forfeit $7.1 million. After filing a motion to forfeit certain property, the United States last week confirmed the receipt of $7.1 million from Minga. The U.S. Attorney’s Office will seek to restore these funds to the Medicare Program.
“It is always a goal of the justice system to make the victim whole following wrongdoing. When public agencies like Medicare are defrauded for personal gain, it harms all American taxpayers,” said United States Attorney Prim F. Escalona. “I’m grateful that the collaborative work of federal law enforcement agencies and state partners in Alabama and Mississippi have restored taxpayer dollars to an agency purposed to serve some of the most vulnerable in our communities,” added Escalona.
“Healthcare fraud is not a victimless crime. Defrauding federal healthcare programs not only wastes valuable taxpayer dollars, it also takes resources away from individuals in need of medical care,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to return these funds to the Medicare program.”
Minga failed to report a 2010 wire fraud conviction to the Centers for Medicare and Medicaid Services. Consequently, on October 17, 2016, Minga was excluded from the Medicare Program for 10 years. The exclusion provided that Medicare would not pay claims submitted by anyone who employed Minga in a management or administrative role. Nevertheless, from 2016 until 2021, Minga committed health care fraud by continuing to manage and control pharmacies that submitted claims for payment to Medicare. In order to avoid detection, Minga ensured that those submitting Medicare enrollment/revalidation paperwork for these pharmacies would not disclose Minga’s ownership interest or managerial role in these pharmacies. From October 17, 2016, to August 16, 2021, Medicare paid approximately $16,109,446.67 to the pharmacies in which Minga had an ownership interest or managerial role.
HHS was the lead federal investigative agency. HHS was closely assisted by the State of Mississippi’s Office of the Attorney General and the State of Alabama’s State Board of Pharmacy. Assistant U.S. Attorneys Tom Borton, Austin Shutt, and Kristen Osborne led the forfeiture recovery proceedings, while Lloyd Peeples, Ryan Rummage, and Don Long prosecuted the criminal health care fraud case.
Milford Man Pleads Guilty to Meth ConspiracyRead the Press Release
Justin Haubrich, 46, from Milford, pled guilty June 28, 2022, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Haubrich admitted that from May 2018 through January 2019, he was involved in a conspiracy that distributed at least five pounds of methamphetamine. Haubrich was supplied methamphetamine from sources in Denison and Council Bluffs, Iowa for further distribution in Northwest Iowa. During a traffic stop in January 2019, Haubrich was found in possession of a .45 caliber handgun and was known to keep and store guns during his drug trafficking activities.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Haubrich remains in custody of the United States Marshal pending sentencing. Haubrich faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, the Dickinson County Sheriff’s Office, the Palo Alto County Sheriff’s Office, the Okoboji, Iowa Police Department, and the Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4097.
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