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Thursday 30 June 2022
Convicted Felon Indicted for Possessing A FirearmRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Marquvius Trevon Dixon (26, Clearwater) with possessing a firearm as a convicted felon. If convicted, Dixon faces a minimum mandatory term of 15 years, and up to life, in federal prison. The indictment also notifies Dixon that the United States intends to forfeit the firearm traceable to his offense.
According to the indictment, on July 8, 2021, Dixon possessed a firearm. At the time of the incident, Dixon had multiple prior felony convictions for the sale of cocaine and possession of cocaine. As a previously convicted felon, Dixon is prohibited from possessing a firearm under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney David P. Sullivan. The forfeiture will be handled by Assistant United States Attorney Suzanne Nebesky.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Construction Company Owner Convicted of Fraud in Securing More Than $240 Million in Contracts Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
Yesterday, a federal jury in San Antonio, Texas, convicted the owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States.
According to court documents and evidence presented at trial, Michael Angelo Padron, along with co-conspirators Michael Wibracht and Ruben Villarreal, conspired to defraud the United States to obtain valuable government contracts under programs administered by the Small Business Administration (SBA). The evidence showed that Padron conspired to install Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Padron, along with his co-conspirator and business partner Wibracht, exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control in order to secure over $240 million in government contracts that were set aside for SDVOSBs in order to benefit their larger, nonqualifying businesses.
“Yesterday’s verdict is a victory for the rule of law,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division and its Procurement Collusion Strike Force welcome this decisive outcome, which protects service-disabled veterans from cheaters and schemers.”
“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy — small businesses,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG), Central Region. “OIG continues to relentlessly root out and protect the integrity of all SBA’s programs. I want to thank the Antitrust Division and our law enforcement partners for their dedication and pursuit of justice.”
“Yesterday’s verdict is a testament to the tenacity of Army CID’s special agents to detect and investigate those who attempt to defraud our military,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office.
“Federal agencies rely on the accuracy and validity of the information contained in GSA’s System for Award Management to make sound contracting decisions,” said Special Agent in Charge Jamie Willemin of the General Services Administration Office of Inspector General (GSA-OIG), Southwest and Rocky Mountain Division. “We will continue to work with our investigative partners to hold accountable those who fraudulently obtain government contracts by providing false information in the system.”
“Fraudulently obtaining multimillion-dollar government contracts from a program designed to benefit service-disabled veterans is reprehensible,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s (VA-OIG) South Central Field Office. “Yesterday’s guilty verdict sends a clear message that the VA-OIG will work diligently to hold those who would do so accountable. The VA-OIG thanks the Department of Justice Antitrust Division and our law enforcement partners for their efforts in this case.”
“This case demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who undermine the integrity of government-sponsored small business initiatives,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “Individuals who engage in activity that deprive legitimate program participants of valuable economic opportunities will be thoroughly investigated and held accountable.”
Padron was convicted of conspiracy to defraud the United States and six counts of wire fraud. He is scheduled to be sentenced on Oct. 19, and faces a maximum penalty of five years in prison and a $250,000 fine for the conspiracy count, and a maximum penalty of 20 years in prison and a $250,000 fine for each wire fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal II Section prosecuted the case, which was investigated by SBA-OIG, U.S. Army CID Major Procurement Fraud Unit, VA-OIG, DCIS, and GSA-OIG. The U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency also assisted with the investigation.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at (202) 598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
Connecticut Man Charged with Attempted Human SmugglingRead the Press Release
BOSTON – A Connecticut man was arrested yesterday on charges that he allegedly attempted to smuggle an individual from Brazil into the United States.
Fagner Chaves De Lima, 41, of East Hartford, Conn., was charged with one count of attempted human smuggling. De Lima will appear in federal court in Worcester today before U.S. District Court Magistrate Judge David H. Hennessy.
“It is alleged that Mr. De Lima orchestrated an elaborate and manipulative human smuggling operation. For a steep price, Mr. De Lima allegedly made arrangements for victims to travel from Brazil to the United States, and then extorted the vulnerable victims and their families for more money, even threatening harm,” said United States Attorney Rachael S. Rollins. “As we all know, smuggling operations abuse, exploit and endanger defenseless victims. Combating human smuggling and trafficking networks is a top priority of our office. This alleged crime is an affront to human dignity and a danger to national security.”
“What Fagner Chaves De Lima is accused of doing is disgraceful. In attempting to smuggle human beings into the United States for his own financial profit and then allegedly extorting them for more money, under the fear of harm, he has demonstrated a deliberate disregard for the safety of their lives, and our country’s laws that are in place to ensure the public’s safety,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It’s important for anyone who is a victim of human smuggling to know that we prioritize the safety of victims when working with our law enforcement partners to bring international human smugglers to justice.”
According to charging documents, De Lima ran a business that illegally smuggled individuals from Brazil into the United States. It is alleged that, in exchange for payments of thousands of dollars, De Lima made travel arrangements for clients to illegally enter the United States from Brazil by plane or bus and arranged lodging accommodations for clients during their travel. In addition, De Lima allegedly extorted clients while their journey to the United States was underway by threatening to harm them and/or their family if they did not pay additional money.
In May and June 2022, an undercover agent initiated communications with De Lima over WhatsApp under the guise that the agent sought to have his sister and niece smuggled into the United States. The undercover agent offered to pay $15,000 for De Lima’s services, and De Lima allegedly agreed to the arrangement. According to the charging documents, De Lima stated during these communications (translated from Portuguese) that he had been engaged in human smuggling “for 20 years,” and that he will smuggle individuals “whether you have a visa, no visa, or if . . .[they] are wanted by the police.” De Lima also allegedly acknowledged in later messages that human smuggling is “dangerous.” On June 16, 2022, De Lima traveled to Worcester to meet with the undercover agent, during which De Lima allegedly accepted two checks for the agreed upon total of $15,000 in exchange for his smuggling services and requested the sister’s passport and Social Security number.
The charge of attempted human smuggling provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $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 and FBI Boston SAC Bonavolonta made the announcement.
Valuable assistance was provided by U.S. Customs and Border Protection, Yuma Field Office; Homeland Security Investigations in Yuma; U.S. Postal Inspection Service, Boston Division; and the Marlborough, Worcester, Hartford (Conn.) and East Hartford (Conn.) Police Departments; Assistant U.S. Attorney John T. Mulcahy of Rollins’ Civil Rights Enforcement Team is prosecuting the case.
The Civil Rights Enforcement Team (CRET) was created in 2010 to coordinate the efforts of the U.S. Attorney’s Office in enforcing federal criminal civil rights laws. CRET is composed of Assistant U.S. Attorneys and professional staff from the criminal and civil divisions of the office. The primary goals of the CRET is to develop a comprehensive enforcement strategy to address civil rights issues that arise in the District of Massachusetts; to uphold the constitutional rights of all residents, particularly some of the most vulnerable members of society; and to enforce federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status, and national origin.
If you believe that you or someone you know may be a victim of human smuggling/trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA — Shaheem Shaquille Williams, 50, of Columbia, was sentenced to three and a half years in federal prison after pleading guilty to possessing a firearm after being convicted of a prior felony.
Evidence presented to the Court showed that on August 16, 2021, a Richland County deputy stopped Williams after determining the tag on the vehicle did not belong on the car he was driving. After the deputy realized Williams did not possess a driver’s license, Williams ran from the traffic stop. The deputy chased Williams and saw him throw down an object that was later determined to be a firearm. After having to wrestle with Williams and tase him, another officer arrived and the two deputies were able to take Williams into custody. After arresting Williams, the deputy retraced the path of the pursuit and found the firearm laying in the yard of a nearby home.
Senior United States District Judge Cameron McGowan Currie sentenced Williams to 43 months imprisonment, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon prosecuted the case.
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Columbia Man Sentenced to 5 Years in Federal Prison for Fraud Scheme that Amassed 94 Firearms and 7 Bump StocksRead the Press Release
COLUMBIA, SOUTH CAROLINA — Edward Daniel Kimpton, Jr., 26, of Columbia, was sentenced to 5 years in federal prison after pleading guilty to wire fraud and possession of stolen firearms.
Evidence presented to the Court showed that from June 2018 through his arrest in April 2020, Kimpton operated an elaborate fraud scheme that included the use of 16 pseudonyms or names, 58 e-mail addresses, and several financial accounts in false and fraudulent names.
During his scheme, Kimpton ordered high value products from individual sellers and retailers online and then diverted the packages mid-shipment, sometimes by posing as the seller or shipper. After he took possession of the packages, Kimpton filed claims that he never received them, causing money to be reverted and allowing Kimpton to take both the shipments and the money he purportedly paid. Kimpton defrauded at least 27 victims in 17 states.
During court-authorized searches in April 2020, ATF recovered from Kimpton what he amassed during the fraud – 94 firearms, including an illegal short-barreled shotgun and a .50 caliber rifle, as well as 7 illegal bump stocks, more than 23,000 rounds of ammunition, body armor, tactical helmets, tactical clothing, firearm scopes, gas masks, gas mask filters, indoor chemical gas grenades, firearm accessories, medic kits, and luxury consumer goods.
At sentencing, the Court held Kimpton accountable for the possession of machineguns for possessing the 7 bump stocks, which are devices that allow a semiautomatic firearm to shoot a continuous firing cycle by harnessing the recoil energy of the firearm. Bump stocks are illegal under federal law.
Senior United States District Judge Joe Anderson sentenced Kimpton to 5 years in prison, the maximum allowable under the plea agreement, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
At sentencing, the Court also ordered Kimpton to pay victims $44,317.15 in restitution. Restitution will be paid from $73,636.03 seized from a Kimpton bank account as fraud proceeds, and the Court ordered the balance to be forfeited.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the ATF and the United States Secret Service, with assistance from the Richland County Sheriff’s Department and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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Columbia Man Sentenced to 12 Years in Federal Prison for Drug and Firearms CrimesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Norris L. Bond, 42, of Columbia, was sentenced to 12 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute cocaine and crack cocaine and possessing a firearm during and in relation to drug trafficking.
Evidence presented to the Court showed that in July, 2019, Richland County Sheriff’s Department made a traffic stop on an Audi driven by Bond. In a subsequent search of the Audi, law enforcement found bags of suspected cocaine and crack cocaine, and a loaded 9mm pistol. Law enforcement arrested Bond and transported him to the detention center. While Bond was enroute, law enforcement noticed him moving around in the backseat of the patrol car. When Bond was removed from the patrol car, law enforcement discovered a torn bag of suspected cocaine where Bond had been sitting. The suspected cocaine and crack cocaine lab tested as approximately 63 grams of cocaine and 30 grams of crack cocaine.
Further investigation revealed Bond had been engaged in a multi-year conspiracy to sell cocaine and crack cocaine in the Columbia area. Bond’s role in that conspiracy was as a source of supply to others. In a three-year period, Bond was accountable for more than 10 kilograms of cocaine and more than 750 grams of crack cocaine.
United States District Judge Mary Geiger Lewis sentenced Bond to 144 months imprisonment, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Richland County Sheriff’s Department and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Colombian National Extradited from Panama Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Gerardo Gomez-Lubo, a/k/a Francisco Niño, (42, Colombia) to 15 years in federal prison for conspiracy to distribute cocaine knowing and intending it to be imported into the United States. Gerardo Gomez-Lubo had pleaded guilty on January 11, 2022.
According to court documents, beginning in approximately September 2017 and continuing through 2019, Gomez-Lubo was part of a transnational criminal conspiracy that transported cocaine directly from Colombia, through Central America and the Caribbean, directly to the United States, including Texas, California, Hawaii, and Florida.
Th investigation revealed that Gomez-Lubo and others discussed, planned, and executed the transportation of cocaine to include discussing cocaine prices, currency transfers, drug debts, and methods used to avoid apprehension and detection by law enforcement. The cocaine distributed by Gomez-Lubo and others displayed identifying symbols and marks. Those marks were found in kilograms of cocaine recovered by law enforcement in New York, Pennsylvania, and Florida.
Gomez-Lubo’s co-defendant, Piero Antonio Lubo-Barros, was also indicted.
Lubo-Barros was arrested in Costa Rica in January 2021, living under an assumed identity. He was extradited to the United States in November 2021 and is currently pending trial in Tampa.
“This case is a great example of how the DEA works in concert with our law enforcement partners all across the globe to apprehend and bring to justice those involved in the poisoning of American communities by trading in illicit drugs,” said Special Agent in Charge J. Todd Scott, head of DEA’s Louisville Division. “I’m very proud of the work done by all of our special agents who work very hard to keep our communities safe.”
This case was investigated by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation. It was being prosecuted by Assistant United States Attorney Diego F. Novaes.
The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance by extraditing Gerardo Gomez-Lubo from Panama to the Middle District of Florida.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Cleveland man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Willie Johnson, of Cleveland, Ohio, was sentenced today to 92 months of incarceration for his role in a drug trafficking conspiracy, U.S. Attorney William Ihlenfeld announced.
Johnson, age 38, pleaded guilty in July 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin within 1000 feet of a Protected Location.” Johnson admitted to working with someone to distribute heroin near Luau Manor, a housing facility owned by a public housing authority, in April 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on October 15, 2021, Ricky Lee Clark, Jr., 42, of St. Albans, was carrying a loaded Davis Industries, model P380, .380-caliber pistol in his waistband when law enforcement officers encountered him on a residential street in St. Albans.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Clark knew he was prohibited from possessing a firearm because of his felony conviction for possession with intent to deliver a controlled substance in Kanawha County Circuit Court on June 24, 2020.
Clark is scheduled to be sentenced on October 13, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the St. Albans Police Department for conducting the investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for providing valuable assistance.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-59.
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Cartel leader heads to prison for over $2M drug seizuresRead the Press Release
LAREDO, Texas – A leader within Cartel De Jalisco Nueva Generacion has been ordered to federal prison for his role in an elaborate conspiracy of possession with intent to distribute meth, heroin, cocaine and fentanyl, announced U.S. Attorney Jennifer B. Lowery.
Juan Manuel Salazar Alvarez, 29, Michoacan, Mexico, pleaded guilty Nov. 5, 2020.
Today, U.S. District Judge Diana Saldana sentenced Alvarez to 282 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. He was also ordered to pay a $2.7 million.
The investigation began in June 2017, when authorities identified Alvarez as a leader within Cartel De Jalisco Nueva Generacion. Alvarez directed the cartel’s large-scale operations functioning in Tamaulipas, Mexico. It comprised of couriers, stash house operators and transportation coordinators, all responsible for smuggling multi-kilogram quantities of narcotics concealed in fire extinguishers, wooden blocks, car batteries and hydraulic jacks. The drugs were often illegally imported into Laredo and stashed in storage units or tractor trailers to then be distributed into Houston, Dallas, Tennessee, Kentucky and North Carolina.
During the course of the investigation, authorities linked 16 separate drug seizures to Alvarez. The drugs were concealed in similar manner. The seizures spanned from July 18, 2017, through Sept. 10, 2019.
The wholesale value of the drugs seized is estimated to be $2.7 million.
Alvarez’s co-conspirators included truck drivers, stash house operators and transporters who were implicated in the seizure of wooden/steel blocks, hydraulic jacks, batteries or fire extinguishers which contained bundles of an assortment of drugs in multiple kilograms.
Alvarez is the last defendant among 11 who have been previously sentenced for their roles in the conspiracy. Roberto Ivan Rodriguez Ramirez, 27, and Manuel Enrique Ayala Rodriguez, 45, both of Nuevo Laredo, Mexico, were each sentenced to 192 months, while Giovani Mendez Hornelas, a non-U.S. citizen residing in Angier, North Carolina, received 108 months. Daniel Morales Hinojosa, 52, Santos Salazar, 35, Victor Hinojosa, 36, Omar Hiracheta-Cruz, 38, and Armando Animas Hernandez, 33, all from Michoacan and or Nuevo Leon, Mexico, were sentenced earlier in the year. Daniel Hinojosa and Salazar were each ordered to serve 262-month-terms of imprisonment, while Victor Hinojosa, Hiracheta-Cruz and Hernandez received 210, 192 and 120 months, respectively. All are also expected to face removal proceedings.
Alvarez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Gelo Podre (Rotten Ice) with the assistance of Laredo Police Department, U.S. Marshals Service, Border Patrol, Texas Department of Public Safety and Williamson County Sheriff’s Office coordinated through Special Operations Division Operation Python.
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, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Deputy Criminal Chief for the South Texas Organized Crime Drug Enforcement Task Force Mary Lou Castillo prosecuted the case.
Career Criminal Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A career criminal pleaded guilty today in federal court in Boston to trafficking fentanyl while on supervised release for a previous federal conviction.
Robert Roscoe, 31, of Boston and Attleboro, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 21, 2022. Roscoe was indicted in July 2021.
“Despite his past encounters with the criminal legal system, Mr. Roscoe chose to continue engaging in illegal activity by trafficking deadly narcotics into our communities. Adding insult to injury, he was on supervised release at the time he engaged in this new criminal conduct,” said United States Attorney Rachael S. Rollins. “We have lost far too many people to the opioid crisis and that number continues to rise. Drug traffickers, especially ones who are career criminals, will be found and prosecuted by my office.”
“Today’s guilty plea is a direct result of the dedicated work of the ATF and our local, state and federal partners combating criminals that distribute fentanyl in our communities,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Division. “The ATF will continue to investigate individuals and groups who attempt to further the scourge of drugs and violence in the areas we serve.”
On Feb. 3, 2021, Roscoe conspired with co-defendant Ozair Pereira to distribute fentanyl to a cooperating witness at the Westgate Mall in Brockton. At the time of his conduct, Roscoe was on supervised release for a 2019 conviction out of U.S. District Court in Boston for being a felon in possession of a firearm and ammunition. Roscoe had been previously convicted of armed robbery, unlawful possession of a firearm, and assault and battery on a police officer.
The charges of conspiracy to distribute fentanyl and distribution of fentanyl provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins; ATF Boston SAC Ferguson; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Brenda Perez; and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
California and New Hampshire Men Indicted for Attempting to Fraudulently Obtain $5 Million in CARES Act FundsRead the Press Release
CONCORD – Pierre Rogers, 43, of Irvine, California, and Joshua Leavitt, 40, of Northwood, New Hampshire were indicted by a federal grand jury on Monday and charged with multiple counts of bank fraud, wire fraud, and attempted wire fraud, United States Attorney Jane E. Young and William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division announced today. Rogers was also charged with money laundering.
Leavitt was arrested this morning and was released on conditions pending trial. Rogers’s appearance is being secured.
The indictment filed in court alleges that the defendants owned and operated at least seven companies, including Dark Matter Associates, Puro Trader (d/b/a Yayhn), Puro Group, and Puro Lounge. During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP program. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
In 2020 and 2021, Rogers and Leavitt applied for over two dozen PPP and EIDL loans for their companies. They submitted false documents, including fabricated tax documents, which inflated their size and payroll. Because PPP and EIDL loan size was tied to payroll and the number of employees a company had, the defendants were able to apply for and obtain larger loans. In total, the defendants applied for approximately $2 million in PPP loans and $3 million in EIDL funds.
The defendants also misused at least some of the loan proceeds. For example, Rogers and Leavitt obtained a $175,000 PPP loan for Puro Group using fraudulent documents. As charged in the indictment, Rogers used $107,780 of those funds to purchase a luxury vehicle, a Rolls Royce Ghost.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Treasury Inspector General for Tax Administration and Secret Service, with assistance from the U.S. Postal Inspection Service. It is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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California Man Pleads Guilty to Role in Capital Region Synthetic Cannabinoids ConspiracyRead the Press Release
ALBANY, NEW YORK – Abdullah M. Hussein, age 43, formerly of Schenectady, New York, and presently residing in California, pled guilty today to conspiring to distribute synthetic cannabinoids (frequently referred to as “spice” or K2”) in Schenectady.
The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
As part of his plea, Hussein admitted that from March through August 2018, he conspired with Rayen Hussein and Abdulqadoos Alomari to sell 2.5 kilograms’ worth of synthetic cannabinoids in brightly colored packets labeled with names including “Scooby Snax,” “Ice Dragon,” “Loopy,” “What’s Up,” and “Geeked Up” out of the former Stockade Market and Deli in downtown Schenectady. The synthetic cannabinoid in the packets was ADB-FUBINACA, which is a Schedule I controlled substance.
Co-conspirators Rayen Hussein and Alomari were arrested on August 17, 2018, when investigators executed federal search warrants on multiple locations in Schenectady, Amsterdam and Glenville, New York, and seized a kilogram’s worth of synthetic cannabinoids packaged for distribution. They have both pled guilty to conspiring to distribute synthetic cannabinoids and are awaiting sentencing.
Abdullah M. Hussein, Rayen Hussein and Alomari each face maximum sentences of 20 years in prison, fines of up to $1 million, and terms of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute(s) the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Co-conspirator Mansoor Ghaleb pled guilty to importing 8 kilograms of synthetic cannabinoids from China with the goal of processing the raw chemicals into “spice” or “K2” for distribution in the Capital Region, including out of the Stockade Market and Deli. On August 21, 2019, Ghaleb was sentenced to 60 months in prison and 3 years of supervised release by Senior United States District Judge Gary L. Sharpe.
This case was investigated by the DEA, HSI, and the USPIS. The Schenectady Police Department, Schenectady County Sheriff’s Office, Amsterdam Police Department and Albany Police Department also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Brooke County man admits to failure to register chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher J. Schragl, of Follansbee, West Virginia, has admitted to failing to update his sex offender registry, United States Attorney William Ihlenfeld announced.
Schragl, 46, pleaded guilty today to one count of “Failure to Register.” Schragl, a person required as a sex offender, failed to update his registration from May to December to 2021 in the Northern District of West Virginia.
Schragl faces up to up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The United States Marshals Service, West Virginia State Police, Texas Rangers, and the Nevada State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Bronx Gang Member Who Shot 12-Year Old Child in Playground Sentenced to 22 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NICHOLAS JOSEPH, a/k/a “Gotti,” a/k/a “Finesse,” was sentenced today to 22 years in prison in connection with his participation in the Castle Hill Crew, a violent street gang based in the Castle Hill Houses in the Soundview neighborhood of the Bronx, including for his role in the shooting of a 12-year old child on April 28, 2017, narcotics trafficking, firearms offenses, fraud, and other acts of violence. On September 22, 2021, a jury found JOSEPH guilty of racketeering conspiracy, violent crimes in aid of racketeering, and firearms offenses after a seven-day trial. U.S. District Judge P. Kevin Castel imposed today’s sentence.
U.S. Attorney Damian Williams said: “For years, Nicholas Joseph actively participated in the Castle Hill Crew, a violent gang that infected the Soundview neighborhood of the Bronx with guns, drug dealing, fraud, and violence. These crimes included a shooting in a crowded playground next to an elementary school, which seriously injured a 12-year-old child. Today’s lengthy sentence sends an important message to gang members who commit crimes that they will be apprehended and prosecuted to the fullest extent of the law.”
As alleged in the Indictment and based on the evidence at trial and statements made in open court:
Between in or about 2014 and in or about December 2020, JOSEPH was a member and associate of the Castle Hill Crew, a racketeering enterprise that operated principally in the Castle Hill Houses in the Soundview neighborhood of the Bronx. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, Castle Hill Crew members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder; distributed and possessed with intent to distribute narcotics; engaged in fraud; and obtained, possessed, and used firearms.
On or about November 19, 2015, JOSEPH and others stabbed a rival gang member in the head and back.
On or about April 28, 2017, JOSEPH shot at rival gang members in the vicinity of the Story Playground in the Bronx, New York, during which a 12-year-old child was injured.
In addition, on or about July 10, 2020, and in or around November 2020 and December 2020, JOSEPH illegally possessed firearms and ammunition.
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In addition to his prison term, JOSEPH, 23, of the Bronx, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the New York City Department of Investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Celia V. Cohen, Emily A. Johnson, and Justin V. Rodriguez are in charge of the prosecution.
Boston Woman Sentenced for Drug Trafficking Following Two-Kilogram Cocaine DealRead the Press Release
BOSTON – A Boston woman was sentenced today in connection with selling two kilograms of cocaine.
Ana Guadalupe Acosta Grajeda, 58, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and four years of supervised release. On Sept. 23, 2021, Grajeda pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
According to court documents, Grajeda was arrested and charged in September 2019 along with her son, Carlos Acosta Estrella, after they sold two kilograms of cocaine to a cooperating witness in East Boston. A search of Estrella and Grajeda’s apartment allegedly resulted in the seizure of one kilogram of heroin, numerous cellphones, a high-powered tactical shotgun with a laser sight and a box of ammunition for the shotgun.
Carlos Acosta Estrella has pleaded not guilty and is pending trial.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Police Officer Sentenced on Tax ChargeRead the Press Release
BOSTON – A Boston Police Officer was sentenced today in federal court in Boston for failing to report gambling winnings on his tax returns.
Dana Lamb, 57, of Roslindale, was sentenced by U.S. District Court Magistrate Judge Jennifer C. Boal to six months of probation. On April 27, 2022, Lamb pleaded guilty to one count of filing a false document with the Internal Revenue Service and has cooperated in a related prosecution.
In May 2020, while an Officer for the Boston Police Department, Lamb sold a winning lottery ticket worth $10,000 to a convenience store owner for cash rather than properly claiming it with the Massachusetts Lottery Commission. He then failed to report his gambling winnings on his tax return. Lamb’s failure to report the gambling proceeds resulted in an additional tax due and owing for that year of $1,800.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Massachusetts State Lottery Commission. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’s Public Corruption Unit prosecuted the case.
Boston Man Pleads Guilty to Methamphetamine Distribution ChargesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to distributing methamphetamine.
Daniel Lennon, 32, pleaded guilty to one count of distribution of five grams or more of methamphetamine and two counts of distribution of 50 grams or more of methamphetamine. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 26, 2022. Lennon was indicted on March 3, 2021.
In January and February 2021, investigators conducted three undercover purchases of methamphetamine from Lennon. On Jan. 13, 2021, Lennon delivered approximately 28 grams of 95% pure methamphetamine; on Jan. 19, 2021, Lennon delivered approximately 112 grams of 100% pure methamphetamine; and on Feb. 4, 2021, Lennon delivered approximately 110 grams of 87% pure methamphetamine.
When investigators searched the hotel room in which Lennon was staying, they located a myriad of drugs and drug distribution paraphernalia, including nearly 400 grams of fentanyl and fentanyl analogues, over 500 grams of methamphetamine, over 40 grams of cocaine and approximately $16,740 in cash.
The charge of distribution of five grams or more of methamphetamine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of distribution of 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Lauren A. Graber of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Baltimore City Man Facing Federal Charges for Allegedly Submitting Fraudulent Covid-19 Cares Act Relief Loan Applications and Stealing the Identity of a Tax PreparerRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Dana Lamar Antonio Hayes, Jr., age 37, of Baltimore, Maryland, on the federal charges of wire fraud, money laundering, and aggravated identity theft. The indictment was returned on June 23, 2022, and unsealed upon his arrest. Hayes will have an initial appearance today at 3:30 p.m. in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the six-count indictment, between March 2020 and October 2021, Hayes submitted several a fraudulent Economic Injury Disaster Relief loan application (EIDL loan) and several Paycheck Protection Plan loan applications (PPP loans) to the Small Business Administration (SBA) and two financial institutions (Bank1 and Bank 2).
Specifically, the indictment alleges in March 2020, Hayes submitted a fraudulent EIDL loan application on behalf of his previously forfeited and recently revived company, D&L Investment Properties Inc. The EIDL loan application allegedly contained false statements regarding the number of employees and payroll expenses of D&L. On the basis of false and fraudulent information, the SBA approved Hayes’s EIDL application and provided Hayes loan funds on behalf of D&L. The indictment also alleges that Hayes claimed to have company expenses of $15,000 and equipment costs of $35,000 when the company had been inactive since 2019. Additionally, within the EIDL application, Hayes allegedly stated that he was not on probation at the time of the filing. As alleged in the indictment, after the SBA initially denied Hayes’ EIDL application, he allegedly regularly contacted the SBA to have his EIDL application approved. Once the application was approved and the funds were deposited into D&L’s bank account, Hayes allegedly transferred all of the loan proceeds from D&L’s bank account into his personal savings account.
Further, in June 2020 and January 2021, Hayes allegedly applied for several PPP loans with Bank 1 and Bank 2 on behalf of D&L. In the PPP loan applications, Hayes allegedly included false statements regarding the number of employees, falsified tax forms, his probation status, and provided false payroll expenses of D&L. On the basis of fraudulent information, Bank 1 and Bank 2 approved and provided PPP loans in the name of D&L. As alleged in the indictment, Hayes quickly transferred the loan proceeds into his personal savings account.
The indictment continues to allege that Hayes used the name and Preparer Tax Identification number of Victim 1 to submit a fraudulent Form 941 to Bank 2 without Victim 1’s knowledge or consent. Victim 1 had been previously hired by Hayes to prepare D&L and Hayes’ personal tax returns, however, Victim 1 claims that they have never prepared Form 941’s for D&L, and federal records indicate no such form was ever filed.
If convicted, Hayes faces a maximum sentence of twenty years in federal prison for wire fraud, ten years in federal prison for money laundering, and a mandatory two years in federal prison followed by any other sentenced imposed for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and the IRS- CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Attorney General Garland to Undergo Medical ProcedureRead the Press Release
One week from today, on Thursday, July 7, Attorney General Merrick B. Garland will undergo a routine surgical procedure.
The Attorney General has been diagnosed with benign enlargement of the prostate or benign prostatic hyperplasia (BPH). BPH is the “the most common prostate problem for men older than age 50,” according to the National Institutes of Health (NIH). It affects approximately half of men between the ages of 51 and 60 and up to 90 percent of men older than 80, according to NIH.
To treat BPH, Attorney General Garland will undergo transurethral resection of the prostate (TURP), a medical procedure to remove enlarged prostate tissue. The surgery typically lasts less than one hour and requires general anesthesia. During the procedure, the Deputy Attorney General will assume the duties of the Attorney General.
As is customary following this type of surgery, Attorney General Garland will remain at the hospital for one to two days for observation and monitoring. He expects to return to the office the week of July 11.
Atlanta Man Pleads Guilty in Tri-State Check Cashing Scheme Targeting PublixRead the Press Release
ALBANY, Ga. – An Atlanta resident who pleaded guilty for his role in a check cashing scheme targeting Publix grocery stores in Georgia, Florida and Alabama was remanded to federal custody today.
Brandon Lamont Bell, 37, pleaded guilty to possession of counterfeit and unauthorized devices on June 23. Bell faces a maximum of ten years in prison to be followed by three years of supervised release and a $250,000 fine. Bell was remanded to federal custody at a petition for action on conditions of pretrial release hearing before U.S. District Judge Louis Sands today. Sentencing is scheduled for Sept. 29.
“Check cashing schemes using stolen bank information is not a minor offense—the harm it causes people and businesses can warrant federal prosecution and will not be ignored by our office,” said U.S. Attorney Peter D. Leary. “Our office is working with local, state and federal law enforcement partners to protect people and businesses from fraudsters.”
“This case is another example that clearly shows criminals are continuously looking for ways to steal from financial institutions. In this case, not only were financial institutions defrauded, but United States citizens were violated by having their bank account information stolen for the purpose of committing fraud,” said Clint Bush, Resident Agent in Charge, United States Secret Service, Albany, Georgia, Resident Office. “The United States Secret Service, along with our state, local and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.”
According to court documents, Georgia State Patrol (GSP) and Tifton Police Department officers were conducting a road check at the I-75 Northbound Exit 61 ramp (the intersection of Old Omega Road and Magnolia Drive in Tifton). During the course of the encounter with Bell and other occupants of the vehicle, and the subsequent United States Secret Service investigation, agents discovered a check cashing scheme involving Bell and other co-defendants targeting Publix Supermarkets in Georgia, Florida and Alabama.
Inside the vehicle, officers found 114 fictious checks printed with nineteen genuine bank account routing numbers, a printer and electric cords, nine counterfeit driver’s licenses and 18 VISA gift cards. Bell admitted that he possessed with the intent to defraud more than fifteen counterfeit and unauthorized access devices.
The case was investigated by the U.S. Secret Service, GSP and the Tifton Police Department.
Assistant U.S. Attorney Sonja Profit is prosecuting the case.
Arkansas Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Larry Arthur King, 39, of Arkansas, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, the Drug Enforcement Administration (DEA) and the West Virginia State Police conducted a traffic stop on U.S. Route 119 in South Charleston on May 19, 2022. King was in the front passenger seat of the stopped vehicle. King later admitted to possessing approximately 690 grams of methamphetamine found in a backpack located in the vehicle, and further admitted that he intended to distribute that methamphetamine to other people. On the same date, officers executed a search warrant of a Charleston hotel room rented by King and found over 400 additional grams of methamphetamine, over 150 grams of fentanyl, a quantity of cocaine, and two pistols.
King is scheduled to be sentenced on October 13, 2022, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release and a fine of up $5 million.
United States Attorney Will Thompson made the announcement and commended the investigative work of the DEA and the West Virginia State Police.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-121.
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Apple’s Former Director of Corporate Law Admits Insider TradingRead the Press Release
NEWARK, N.J. – The former corporate secretary and director of corporate law at Apple today admitted engaging in an insider trading scheme that spanned five years, Attorney for the United States Vikas Khanna announced.
Gene Levoff, 48, of San Carlos, California, pleaded guilty by videoconference before U.S. District Judge William J. Martini to six counts of an indictment charging him with securities fraud. Levoff was initially charged by complaint in February 2019.
“Gene Levoff betrayed the trust of one of the world’s largest tech companies for his own financial gain,” Attorney for the United States Khanna said. “Despite being responsible for enforcing Apple’s own ban on insider trading, Levoff used his position of trust to commit insider trading in order to line his own pockets. This Office will continue to prioritize securities fraud prosecutions.”
“This defendant exploited his position within a company strictly for financial gain that he would not have otherwise realized,” Terence Reilly, FBI Acting Special Agent in Charge in Newark, said. “That’s called ‘gaming the system.’ Insider trading is not just illegal, it is a threat to the viability of our markets. The average American, whose retirement savings is invested in these companies, has every right to expect that rules are being followed, the game is being played fairly, and their nest egg is safe from profiteers who willingly sidestep the rules to improve their own financial future at the expense of others. The FBI is here to make sure the playing field is level.”
According to documents filed in this case and statements made in court:
From February 2011 to April 2016, Levoff – the top corporate attorney at Apple who also served as the company’s assistant secretary and corporate secretary – misappropriated material, nonpublic information about Apple’s financial results and then executed trades involving the company’s stock. This scheme to defraud Apple and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others.
Specifically, Levoff was co-chairman of Apple’s Disclosure Committee, which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were publicly disclosed. Levoff mined these materials for inside information about Apple to guide his decisions to buy and sell Apple stock ahead of its earnings announcements. When Apple posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When there were lower-than-anticipated revenue and net profit, Levoff sold large quantities of Apple stock, avoiding significant losses.
Levoff was subject to Apple’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which he was responsible for enforcing – and instead repeatedly executed trades based on material, nonpublic information without Apple’s knowledge or authorization. On several occasions, Levoff executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Apple stock until the blackout period terminated.
The securities fraud counts each carry a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Nov. 10, 2022.
The SEC previously filed a civil complaint against Levoff based on the same conduct.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Reilly, with the investigation leading to today’s guilty plea. He also thanked the SEC, for the assistance provided by its Enforcement Division, and Apple, which cooperated with law enforcement over the course of the investigation.
The government is represented by Daniel V. Shapiro, Deputy Chief of the Criminal Division.
Anchorage Man Sentenced to 10 Years for Trafficking MethRead the Press Release
ANCHORAGE – An Anchorage man was sentenced in federal court to a mandatory 10 years in prison by U.S. Chief District Judge Sharon L. Gleason for distributing methamphetamine in the Anchorage area.
According to court documents and evidence presented at trial, Ruffy Alvarez, 39, trafficked large amounts of methamphetamine and cocaine from California into Alaska during 2016. He supplied these narcotics by the kilo to buyers throughout the Anchorage area. In November 2016, the FBI conducted an undercover operation resulting in the purchase of more than 135 grams of pure methamphetamine from Alvarez. An Alaska jury convicted Alvarez of the methamphetamine distribution following a three-day trial in June 2021.
Alvarez was previously convicted in 2001 by a federal jury for his role trafficking kilos of cocaine from California into Alaska.
“Illegal drugs such as methamphetamine are an ongoing threat to communities throughout Alaska. We will continue to press forward with our efforts to dismantle and eradicate both the supply and distribution of all illegal drugs across our state,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “This sentence sends a clear message that we will prosecute and hold accountable those who are harming our communities.”
“Mr. Alvarez trafficked significant amounts of dangerous narcotics from California to Anchorage for distribution, posing a danger to Alaskans,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Through our robust law enforcement partnerships in Alaska, the FBI remains committed to disrupting the flow of deadly drugs into our communities, and to hold drug traffickers accountable.”
The FBI, Drug Enforcement Administration (DEA), Anchorage Police Department and Alaska State Troopers investigated this case as part of the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney George Tran and Emily Allen prosecuted the case.
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Albuquerque man pleads guilty in armed robberies of letter carriersRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Cisco Casaus-Alires pleaded guilty on June 29 to robbery of mail, money and other property of the United States and brandishing a firearm during and in furtherance of a crime of violence. Casaus-Alires, 21, of Albuquerque, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Nov. 7, 2020, Casaus-Alires robbed a United States Postal Service (USPS) letter carrier at gunpoint in southeast Albuquerque, demanding the letter carrier’s cell phone, USPS keys and mail. On Dec. 26, 2020, in southwest Albuquerque, Casaus-Alires robbed another letter carrier at gunpoint. Casaus-Alires demanded the letter carrier’s wallet, phone and USPS keys, and then demanded that the letter carrier load parcels into Casaus-Alires’ vehicle.
On Dec. 28, 2020, in south Albuquerque, Casaus-Alires robbed a third letter carrier at gunpoint, demanding the letter carrier’s wallet, phone and USPS keys. As Casaus-Alires took mail and parcels from the USPS vehicle, he asked the letter carrier where “the good stuff” is delivered, then fled the area.
By the terms of the plea agreement, Casaus-Alires faces 16 to 20 years in prison.
The United States Postal Inspection Service investigated this case with assistance from the United States Marshals Service. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
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Airplane passenger removed from cross-country flight diverted to Billings admits interfering with flight crewRead the Press Release
BILLINGS — A Washington airline passenger today admitted allegations that he interfered with a flight crew by jumping on a beverage cart and pushing a flight attendant into a seat, screaming and trying to take off his clothes on a flight that was diverted to Billings for his removal, U.S. Attorney Jesse Laslovich said.
Adam Alexander Williams, 33, of Auburn, Washington, pleaded guilty to an indictment charging him with interference with flight members and attendants. William faces a maximum of 20 years in prison, a $25,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Williams was released pending further proceedings.
The government alleged in court documents that on Jan. 9, Williams boarded an American Airlines flight departing Seattle, Washington, for a flight to Charlotte, North Carolina. Once in the air, Williams’ behavior turned erratic and escalated. Williams yelled out to no one in particular, “Where is Jamie Sanders?” At one point, Williams jumped over passengers in his row and on to a beverage cart that was in service. As he came off of the cart, he almost landed on a flight attendant and pushed her into a seat, knocking drinks and cups to the ground. He then began to run down the aisle of the aircraft. Williams’ behavior startled the flight attendant, who later appeared distressed and traumatized.
Another flight attendant was able to calm Williams down and escort him to his seat. About 10 minutes later, Williams began to act up again and screamed an obscenity. Flight attendants placed several Marines, who happened to be on the flight, in seats around Williams. Then, after roughly another 10 minutes, Williams stood up and began screaming while taking off his clothes. At that point, to ensure the safety of passengers, the aircraft’s captain turned the plane around and landed in Billings so that Williams could be removed.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case, which was investigated by the FBI and Billings Airport Police.
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Accounts Payable Clerk Sentenced for FraudRead the Press Release
PROVIDENCE – An accounts payable clerk who misappropriated more than $300,000 belonging to a Providence small business for his own personal use was sentenced on Wednesday to eighteen months of incarceration, announced United States Attorney Zachary A. Cunha.
Grant Devillez, 38, of Dayville, Conn., pleaded guilty in January to each of the ten counts of wire fraud with which he had previously been charged by federal indictment. No plea agreement was filed in this matter.
At the time of his guilty plea, Mr. Devillez admitted that, from at least February 2016 through July 2018, he engaged in a scheme to defraud Décor Craft, Inc., of nearly $303,000, by transferring funds from the business’ bank account to his own personal bank accounts; to creditors for personal bills; and to the bank account of another individual.
Mr. Devillez also admitted that when given access to the business’ bank account to make authorized payments to vendors, he often made partial payments or no payments at all, instead transferring the funds for his own use. To cover his criminal conduct, he altered company records to reflect that full payment had been made to the vendors.
U.S. District Court Judge William E. Smith sentenced Devillez to eighteen months of incarceration to be followed by three years of federal supervised release – the first six months to be served in a half-way house; and to pay restitution totaling $302,995.
The case was prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by the FBI.
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11 in Northeast Ohio Charged with Bank Fraud and Stealing from U.S. MailRead the Press Release
11 individuals in the Northeast Ohio area were charged today in a five-count indictment for participating in a conspiracy that stole mail from the United States Postal Service (USPS), obtained checks within that stolen mail, and altered, forged and duplicated those checks for financial gain.
Named in the indictment are Elijah S. Payne, 21, of Streetsboro; William D. Saunders, 21, of Cleveland Heights; Cameron J. Proctor, 20, of Willowick; Tavion L. Bolden, 22, of Cleveland; Rashawn J. Creer, 22, of Cleveland Heights; Maurice A. Mowler, 22, of Kent; Latrent M. Redrick, 25, of Cleveland, Janiya M. N. Smith, 22, of Richmond Heights; Lady M. Walker, 28, of Cleveland; Antoine R. Whitsett, 22, of Euclid and Tyrone Williams, 21, of Euclid.
Defendants Williams, Creer, Whitsett, Proctor, Mowler and Saunders were arrested by law enforcement authorities today and Defendant Bolden was previously arrested. Arrest warrants have been issued for the remaining defendants.
The defendants are each charged with one count of conspiracy to commit bank fraud. Defendant Payne is charged with additional counts of bank fraud and possession of stolen mail. Defendant Proctor is also charged with an additional count of theft of mail by a postal employee.
According to the indictment, the defendants are accused of participating in a conspiracy that stole checks from the U.S. mail and fraudulently altered and duplicated those checks to then be deposited with various banks. In order to execute their scheme, members of the conspiracy are accused of unlawfully accessing U.S. mail collection boxes using stolen or otherwise unlawfully obtained collection box keys, sometimes directly from postal employees.
In one instance, it is alleged that Defendant Proctor, a postal employee at the time, stole mail in his custody and sold it, along with mail collection box keys, to other members of the conspiracy.
After obtaining and altering checks from the stolen mail, it is alleged that the conspirators used Instagram to recruit other co-conspirators to use their bank accounts to cash the stolen, altered and forged checks.
As a result of the scheme, the defendants caused an approximate loss of over $1.5 million.
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 United States Postal Inspection Service (USPIS) with assistance from the Cleveland Police Department, Rocky River Police Department, Middleburg Heights Police Department, Seven Hills Police Department and the United States Postal Service Office of the Inspector General (USPIS OIG). This case is being prosecuted by Assistant U.S. Attorney Jason W. White.
10 Boston Gang Members and Associates Convicted of Racketeering, Drug and Firearm OffensesRead the Press Release
BOSTON – Ten members and associates of NOB, a Boston-based street gang, have pleaded guilty over the last several weeks in federal court to various crimes, including racketeering (RICO) conspiracy, drug trafficking and illegal firearms charges. The final two defendants pleaded guilty last week. U.S. District Court Judge Leo T. Sorokin scheduled sentencings for various dates in September and November 2022.
The 10 defendants were indicted in June 2020 as part of a federal sweep targeting numerous NOB street gang members and associates. According to court records, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. While the gang is based in the Boston, its criminal activity has spanned across other communities, including Randolph, New Bedford, Stoughton, Brockton, East Bridgewater, Taunton and Cape Cod, as well as Rhode Island, Maine and Connecticut.
NOB members and associates use violence against rival gangs and witnesses to maintain and enhance their status and overall reputation, as well as to protect the gang’s power, reputation and territory. Members and associates assist each other with obtaining firearms and maintaining drug trafficking connections. NOB members and associates use various means to identify themselves as such, including gang-related hand signs, clothing and tattoos. Additionally, they create and publish gang-related videos used to promote NOB and further its activities.
Over the past several years, NOB members and associates committed multiple acts of violence, many of which targeted rival gang members, and engaged in drug trafficking activity involving fentanyl (in powdered form and counterfeit oxycodone pills), cocaine, cocaine base (crack cocaine), marijuana and various types of prescription pills, including opioids, throughout Massachusetts. In addition, NOB members and associates illegally possessed firearms and ammunition, several of which were seized during the investigation.
In addition to multiple historical firearm and drug recoveries by local law enforcement partners pursuant to search warrants executed during the course of this investigation, law enforcement seized numerous contraband items including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
The charge of RICO conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of $1 million. The charge of being a felon in possession of a firearm and/or ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $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.
First Assistant United States Attorney Joshua S. Levy; Boston Police Acting Commissioner Gregory P. Long; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit are prosecuting the case.
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APPENDIX
- Michael Brandao, a/k/a “G Fredo,” and “Frizzblock Fredo,” 21, pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
- Kelvin Barros, a/k/a “Kal” or “7981 Kal,” 26, pleaded guilty to RICO conspiracy; conspiracy to distribute and to possess with intent to distribute controlled substances; and possession with intent to distribute cocaine.
- Ricky Pina, a/k/a “Blake,” 25, pleaded guilty to RICO conspiracy.
- David Rodriguez, a/k/a “D,” 36, pleaded guilty to RICO conspiracy.
- Wilson Goncalves-Mendes, a/k/a “Dub,” 26, pleaded guilty to RICO conspiracy and possession with intent to distribute fentanyl.
- Joshua Teixeira, a/k/a “Trouble,” 27, pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
- Joseph Gomes, a/k/a “Joey” or “J-Money,” 26, pleaded guilty to RICO conspiracy and felon in possession of a firearm and ammunition.
- Samael Mathieu, a/k/a “Hamma” or “Hamma Thang,” 25, pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
- Darius Bass, a/k/a “Tre” or “Trigga Tre,” 28, pleaded guilty to RICO conspiracy.
- Damian Cortez, 33, pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances and possession with intent to distribute fentanyl.
Wednesday 29 June 2022
Warwick Man Convicted on Firearm ChargeRead the Press Release
PROVIDENCE – A Warwick man previously convicted and sentenced to federal prison for bank robbery admitted to a federal judge on Wednesday that he illegally possessed a firearm; that gun was discharged by a juvenile in the man’s home, resulting in a self-inflicted gunshot wound, announced United States Attorney Zachary A. Cunha.
Branden Eddie Smith, 37, pleaded guilty to possession of a firearm by a prohibited person.
According to information presented to the court, on March 21, 2022, Warwick police and emergency services were called to a Warwick residence several hours after a juvenile discharged a firearm, causing a self-inflicted wound to his knee. The juvenile ultimately told police that, earlier in the evening, he was handling what he believed to be an unloaded firearm; the gun was in fact loaded, however, and when the juvenile pulled the trigger, the firearm discharged sending a bullet through his knee.
Warwick police executed a court-authorized search of the residence and located the firearm, a Glock 42 semi-automatic pistol, as well as eight rounds of .380 caliber ammunition. The gun and ammunition were found inside a safe in the defendant’s bedroom.
Smith is scheduled to be sentenced on September 29, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, Smith was previously convicted of bank robbery in U.S. District Court in the District of Nevada in 2017 and sentenced to fifty-six months in prison to be followed by three years of federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by the Warwick Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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WVU students focus on dangers of FentanylRead the Press Release
MORGANTOWN, WEST VIRGINIA – A group of West Virginia University students has created a plan to educate their peers about fentanyl and protect them from the dangers of the deadly synthetic drug.
Today in Morgantown, a team of undergraduates led by WVU junior Azeem Khan announced the creation of the Mountaineer Fentanyl Education Task Force. The group includes 10 students who have been meeting since March and consulting with experts in drug prevention, psychiatry, communications, and criminal justice. The students have created a comprehensive strategy that will be implemented in August when the fall semester begins.
“This task force is about students at WVU saying we want to do our part to help. We are ready to step up and help educate our classmates about the dangers of fentanyl in the hopes of saving lives. This is too important for us to sit on the sidelines,” said Khan, a political science major from Charleston and member of the WVU Student Government Association.
“These young leaders have seen the harm caused by fentanyl and they’ve decided to do something about it,” said United States Attorney William Ihlenfeld. “They are bright, they are passionate, and they care deeply about their classmates.”
The mission of the Task Force is to educate all students on the threat posed by fentanyl, connect them with available resources, and deliver strategic messaging to prevent usage of the drug. The focus is on fentanyl because the drug has caused a sharp increase in overdose deaths among adolescents in West Virginia and across the country. The latest tactic being used by drug traffickers is to sell counterfeit pills that appear to be Adderall or Xanax but that actually contain fentanyl.
The Mountaineer Fentanyl Education Task Force is supported by the United States Department of Justice, the Washington-Baltimore High Intensity Drug Trafficking Area initiative, and Game Changer.
“I applaud the efforts of these students for taking such an active role in the important areas of prevention education coupled with the deadly dangers of fentanyl,” says Joe Boczek, Executive Director of GameChanger. “As a West Virginian, I couldn’t be prouder.”
You can follow the Task Force on Facebook, Twitter, and Instagram at @WVFentanylEdu.
United States Attorneys’ Joint Statement Regarding United States Supreme Court Decision in Oklahoma v. Castro-HuertaRead the Press Release
This morning the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.
“Today’s decision does not diminish the United States’ trust responsibility to our tribal partners,” said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. “The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country.”
United States Attorneys’ Joint Statement Regarding United States Supreme Court Decision in Oklahoma v. Castro-HuertaRead the Press Release
This morning, the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.
"Today’s decision does not diminish the United States’ trust responsibility to our tribal partners," said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. "The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country."
United States Attorneys’ Joint Statement Regarding United States Supreme Court Decision in Oklahoma V. Castro-HuertaRead the Press Release
This morning the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.
“Today’s decision does not diminish the United States’ trust responsibility to our tribal partners,” said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. “The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country.”
United States Attorney Bob Murray Announces RetirementRead the Press Release
United States Attorney Bob Murray announced his retirement after 27 years of service with the Department of Justice. He was appointed by Attorney General Merrick B. Garland on November 28, 2021, and by Chief District Judge Scott W. Skavdahl on March 28, 2022. Pursuant to the Federal Vacancies Reform Act, he became Acting United States Attorney in February 2021. Before he was named Acting United States Attorney, he was the First Assistant United States Attorney and previously served as Chief of the Criminal Division. He has been an Assistant United States Attorney since July 1995.
Prior to joining the United States Attorney’s Office, he served as an attorney for the Eastern Shoshone Tribe – of which he is an enrolled member – and as a litigation associate with the law firm of Holland and Hart in its Denver and Cheyenne offices. He earned his law degree from the University of Denver Sturm College of Law in 1990 and his undergraduate degree from the University of Wyoming in 1986.
Murray said, “It has been an absolute honor to serve the people of this great nation. For nearly 30 years, I had the privilege of serving alongside of incredibly dedicated law enforcement agents and officers from state, local, tribal, and federal law enforcement agencies who work every day to keep our communities safe. And, of course, I have always admired the professionalism, talent, and dedication to public service of the attorneys and support staff at the United States Attorney’s Office.”
On July 1, 2022, First Assistant United States Attorney Nicholas Vassallo will become the Acting United States Attorney for the District of Wyoming under the Vacancies Reform Act. As Acting United States Attorney, Mr. Vassallo will be the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States within the District of Wyoming. His term will last until January 27, 2023. If President Biden has not appointed a United States Attorney to the District of Wyoming by that time, the Chief District Judge will appoint a successor to serve until Wyoming gets a Presidential appointee. Mr. Vassallo has also been with the District of Wyoming for 27 years, first serving as an Assistant United States Attorney then as Chief of the Civil Division.
Mr. Vassallo said, “Bob has been an incredible asset not only to this office, but to the Department of Justice and the many communities we serve in Wyoming. Bob is an outstanding attorney who would have enjoyed great success in any endeavor he pursued, but he chose to devote his professional life to public service seeking justice and protecting the rights of the United States and its citizens. Bob’s absence will surely be felt, and I wish him all the best in retirement.”
U.S. Attorney Dena J. King Urges Consumers to Beware of Common Summer ScamsRead the Press Release
CHARLOTTE, N.C. – With summer upon us, U.S. Attorney Dena J. King urges consumers to be mindful of vacation, employment, and other summertime schemes, and take measures to avoid falling victims to common summer scams.
“Summer is the time of the year that many of us vacation, travel, and spend time with family and friends. But it’s also a popular time for scammers to maximize their profits by preying on consumers trying to save money on a good summer deal. Stay vigilant and beware of summer scams. Think before you buy and don’t let a scammer turn your summer into a nightmare,” said U.S. Attorney King.
The most common scams to look out for during the summer include:
Free or Discounted Vacation Packages – Whether it’s an email congratulating you for winning a free trip that requires you “only” to pay for fees and taxes, or a link to a website offering limited-time travel discounts, these types of summer scams are prominent. Common vacation scams include discounted deals on cruises, all-inclusive resorts, and flights, hotels and car rentals to popular destinations. Don’t be fooled by vacation scams and avoid the urge to take advantage of these too-good-to-be-true offers. Instead, book your travel through reputable, well-known travel engines or travel agencies. If you receive a special travel offer through email, do not make reservations using the provided link, even if it appears to be from a well-known travel booking website. Instead, go directly to the booking engine’s web page to locate the deal and make travel arrangements.
Low-Priced Vacation Rentals – Similar to bogus vacation packages, beware of scammers posting fake short-term rental properties available for a bargain price at popular vacation spots. Sometimes the advertised properties do not exist. Other times, scammers use photos of actual rental properties to create fraudulent listings. Be extra careful before booking a short-term rental property online especially one advertised at a discounted price. To avoid falling victim to this type of scam, either contact a local real estate company that specializes in vacation rentals or search the desired property on multiple short-term rental websites prior to booking to ensure the listing is not a scam. Also, ask the renter for additional photos, and reserve the property using a payment option that makes it easier to recoup a fraudulent charge.
Discounted Excursions or Entertainment Events – Be vigilant against scams that tout limited time offers on vacation excursions or cheap tickets to entertainment events, such as concerts. When booking an excursion, research the company offering the deal. Look for customer reviews that date a few months or years back to ensure this is a well-established business and check with the Better Business Bureau for any complaints on file. In addition, call the company directly before making an online credit card purchase. When buying tickets to events, it’s best to use reputable ticket sellers to ensure the tickets you are purchasing are legitimate.
Free Wi-Fi – During the summer, many people are on the go. With more and more businesses, restaurants, and venues offering free wi-fi access, it is easy to become a victim of wi-fi fraud. With this type of scam, fraudsters use what appears to be legitimate “free” wi-fi to dupe users into connecting to networks that can steal their information. Free wi-fi networks are generally unsecured. To the extent possible, avoid using them altogether, but definitely avoid using them to transmit sensitive information or conduct financial transactions.
Online summer Jobs – Online summer jobs offer an opportunity for extra income. If you are applying for a summer job online, take extra precautions with furnishing personally identifying information (PII) such as a Social Security number, date of birth, home address, etc. Be extra cautious with online employers who require applicants to send their PII for the purpose of conducting a background check before being offered the job. Instead, research the company and call the company directly to ensure it is a legitimate business in need of summer help.
The Moving Scam – Lots of people take advantage of the summer months to move. Unfortunately, scammers also are looking to exploit consumers in need of moving services. Moving schemes offering discounted deals can end up being very costly. When moving, take the time to research moving companies and ask for referrals. Be mindful of moving companies that offer low prices, have recent or no online reviews, or ask for advance payment to “lock in” the discounted rate. Check with the local Better Business Bureau to make sure you are dealing with a reputable moving company.
The tips below can help keep you safe from fraud this summer:
- Avoid paying with wire transfers, cash, gift cards, or sending money to individuals with whom you have only communicated online.
- Avoid “free” deals that require you to pay a fee. If a deal is truly free, you should never have to pay for any portion of it.
- Do not give out your credit card, bank account or other personal information.
- Before going on vacation, whether stateside or overseas, contact your banking institution and credit companies so they can alert you of unusual spending patterns or high dollar credit card charges.
- After your vacation, check your credit card or banking statements for extra or fraudulent charges.
To report fraud, file an online complaint with the Federal Trade Commission.
U.S. Attorney Breon Peace's Remarks on R. Kelly SentencingRead the Press Release
"Moments ago, R. Kelly was sentenced to 30 years in prison. This is a momentous outcome for all victims of R. Kelly, and especially for the survivors who so bravely testified about the horrific and sadistic abuse they endured. R. Kelly is a predator and as a result of our prosecution, he will serve a significant jail sentence for his crimes.
With the aid of his fame, money, and most importantly his inner circle, R. Kelly preyed upon children and young women for his own sexual gratification, for decades. He used coercive control – exemplified by a pattern of isolation, rules, dependence, threats, intimidation tactics, physical abuse, and, at least once, the presence of a firearm – to force victims, including minors, to engage in sexual activity with him and others and to become unwilling participants in the pornographic films he wrote, produced, and directed.
He continued committing his crimes for almost 30 years and avoided punishment. Until today.
Today, the sentence shows the witnesses reclaimed control over their lives, and over their future. These are the voices of mostly young black women and children that were heard and believed and for whom justice was achieved. This is a victory for them, for justice, and for future survivors of sexual assault. Victims of sexual violence must be heard, perpetrators must be held accountable and our women and children must be protected.
I hope this sentencing serves as its own testimony that it does not matter how powerful, rich or famous your abuser may be, or how small they make you feel – justice only hears the truth.
This case would not be possible without outstanding work dedication and skill of the prosecution team Assistant United States Attorneys Elizabeth Geddes, Nadia Shihata, and Maria Cruz Melendez, senior investigator Keith Kolovich, and former paralegal specialists Kyra Wenthen and Alyssa Fagel. Their dedication to the truth was truly extraordinary. I want to commend and thank the special agents who handled this case, Ryan Chabot, and Sylvette Reynoso of the Department of Homeland Security, Homeland Security Investigations under the supervision of supervisory special agents Elvin Hernandez and Patrick Gill, for their outstanding work on the case. Along with detectives from the New York City Police Department, they painstakingly went through records, documents, and interviews to collect and verify the facts that became the foundation of our strong case. And finally, an extraordinary thank you to the brave survivors, those who came forward, and all who endured. It is thanks to you that we are able to deliver justice today."
U.S. Attorney Announces $7.85 Million Settlement with Citadel Skilled Nursing Facility in Bronx for Fraudulently Switching Residents’ Healthcare Coverage to Boost Medicare PaymentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed and settled a civil healthcare fraud lawsuit against TCPRNC, LLC d/b/a PLAZA REHAB AND NURSING CENTER (“PLAZA REHAB CENTER”) and CITADEL CONSULTING GROUP LLC d/b/a CITADEL CARE CENTERS LLC (“CITADEL”). The lawsuit alleges that PLAZA REHAB CENTER, acting at the direction of CITADEL, fraudulently switched the type of Medicare coverage in which elderly residents were enrolled in order to maximize the Medicare payments that PLAZA REHAB CENTER would receive. As alleged in the Government’s complaint, the residents and their families often did not request, consent to, or know about the change to their healthcare coverage, which had the potential to impact their out-of-pocket payments, the scope of the services and care covered, and their drug coverage plan.
U.S. Attorney Damian Williams said: “Skilled nursing facility residents have the right to choose their own healthcare insurance coverage. Plaza Rehab Center frequently changed the insurance of its residents without their consent or knowledge, and without explaining how the change could impact their out-of-pocket costs and the scope of their healthcare coverage. When facilities unlawfully take advantage of elderly residents in order to maximize their revenue from federal healthcare programs, this Office will hold them accountable.”
HHS-OIG Special Agent-in-Charge Scott J. Lampert said: “HHS-OIG is committed to safeguarding Medicare and its beneficiaries from fraud. Those who exploit federal health care programs for financial gain and violate the trust of beneficiaries must be held accountable for their actions.”
Under the settlement, which was approved on June 27, 2022, by U.S. District Judge George B. Daniels, PLAZA REHAB CENTER and CITADEL agreed to pay a total of $7.85 million and made extensive factual admissions regarding their conduct. Specifically, PLAZA REHAB CENTER and CITADEL admitted that their staff often did not obtain the consent of the resident or their authorized representatives prior to disenrolling the resident from their Medicare Advantage Plan. In addition, as part of the settlement, CITADEL agreed to take steps to ensure that all skilled nursing facilities that are Citadel Care Centers comply with applicable guidance on Medicare health plan disenrollments and enrollments. PLAZA REHAB CENTER and CITADEL also entered into a Corporate Integrity Agreement with HHS-OIG, which requires that they maintain a compliance program designed to foster adherence to federal health care program requirements and thereby protect the programs.
Medicare beneficiaries may enroll in the original parts of Medicare, known as Original Medicare, or in Medicare Advantage Plans, which are administered by private companies that contract with the government. Original Medicare and Medicare Advantage Plans differ in how healthcare providers, including skilled nursing facilities, seek and receive reimbursement. Under Original Medicare, the Centers for Medicare & Medicaid Services (“CMS”) directly reimburses providers, like skilled nursing facilities, on a fee-for-service basis. In contrast, when furnishing medical services to a Medicare beneficiary enrolled in a Medicare Advantage Plan, the provider submits claims to the Medicare Advantage Organization (“MAO”) that operates the Medicare Advantage Plan, which in turn pays the provider an agreed-upon amount. CMS pays MAOs a fixed, capitated amount each month for providing coverage for Medicare beneficiaries enrolled in the Medicare Advantage Plan. CMS advises individuals to consider various factors in deciding between a Medicare Advantage Plan and Original Medicare, such as differences in out-of-pocket costs and doctor choice.
As alleged in the Complaint filed in Manhattan federal court:
It is well known within the skilled nursing facility industry that it is typically more profitable to admit residents who are enrolled in Original Medicare than residents enrolled in Medicare Advantage Plans. From September 2016 to February 2019, CITADEL exerted pressure on PLAZA REHAB CENTER staff to increase the number of residents enrolled in Original Medicare in order to increase Medicare reimbursements. PLAZA REHAB CENTER staff disenrolled many residents from their self-selected Medicare Advantage Plans and enrolled them in Original Medicare without obtaining the consent of the residents or their authorized representatives.
PLAZA REHAB CENTER staff were supposed to ensure that residents (or their authorized representatives) signed “disenrollment forms” prior to effectuating any disenrollment of the resident from their Medicare Advantage Plan. However, in many instances, PLAZA REHAB CENTER staff disenrolled residents from their Medicare Advantage Plan and enrolled them in Original Medicare without obtaining a signed disenrollment form reflecting the resident’s consent. Indeed, PLAZA REHAB CENTER employees effectuated numerous disenrollments without ever speaking to the resident or their authorized representative or explaining the consequences of switching to Original Medicare. In addition, in other instances, PLAZA REHAB CENTER staff discussed a disenrollment with the resident and purportedly obtained the resident’s consent, but the resident did not have the capacity to provide consent because of their health condition.
In the settlement agreement, PLAZA REHAB CENTER and CITADEL admit, acknowledge, and accept responsibility for the following conduct:
- PLAZA REHAB CENTER staff, at the direction and under pressure from a CITADEL manager responsible for the new admission practices, changed PLAZA REHAB CENTER residents’ insurance from Medicare Advantage Plans to Original Medicare after such residents’ admission to PLAZA REHAB CENTER. Among other things, CITADEL set a monthly disenrollment quota for PLAZA REHAB CENTER and identified potential candidates for disenrollment. PLAZA REHAB CENTER earned greater revenues for residents if such residents were enrolled in Original Medicare, as compared to Medicare Advantage Plans.
- PLAZA REHAB CENTER staff often did not obtain the consent of the resident or their authorized legal representatives prior to disenrolling the resident from their Medicare Advantage Plan and enrolling them in Original Medicare.
- In approximately 19 instances, PLAZA REHAB CENTER staff purportedly obtained the residents’ consent before disenrolling them from their Medicare Advantage Plan, but, according to these residents’ mental status assessments, they did not have the capacity to provide consent because of their health condition. PLAZA REHAB CENTER regularly failed to consider the results of these mental health assessments and did not evaluate the capacity of residents to consent to the insurance change.
- PLAZA REHAB CENTER staff effectuated these changes in a resident’s coverage by logging on to the Medicare.gov website using the resident’s personal information. PLAZA REHAB CENTER staff would use this website to disenroll the resident from their self-selected Medicare prescription drug plan, which resulted in the resident automatically being disenrolled from their self-selected Medicare Advantage Plan and being enrolled into Original Medicare. In some instances, when completing the information online to effectuate the disenrollment, PLAZA REHAB CENTER staff misrepresented that they were either: (i) the person listed on the enrollment form; (ii) a person helping the person listed on the enrollment form in completing the form; or (iii) a person authorized to act on behalf of the individual on the enrollment form under the laws of the State where the individual resided.
- PLAZA REHAB CENTER and CITADEL often did not offer Plaza Rehab Center residents assistance in re-enrolling them in a Medicare Advantage Plan upon discharge from the Plaza Rehab Center facility.
- As a result of the conduct described above, the Government made payments under Original Medicare to PLAZA REHAB CENTER for residents who were improperly enrolled in Original Medicare without their consent. PLAZA REHAB CENTER was not entitled to these payments.
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In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Williams thanked HHS-OIG for its investigative efforts and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Charles S. Jacob is in charge of the case.
Two Members of Baltimore “Triple C” Gang Plead Guilty to a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Rashaud Nesmith, a/k/a Shaud, age 21, and Michael Chester, a/k/a Mikkie, age 23, both of Baltimore, have pleaded guilty to their participation in a racketeering conspiracy, including attempted murder and murder, respectively, related to their participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, that operated throughout Baltimore City. Chester entered his guilty plea today and Nesmith entered his plea yesterday.
Rashaud Nesmith also pleaded guilty to a second racketeering conspiracy charge in connection with his participation in a group that conspired to commit multiple armed carjackings and robberies throughout Baltimore City.
The guilty pleas were announced 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); and Commissioner Michael Harrison of the Baltimore Police Department.
According to Nesmith’s plea agreement, Nesmith admitted that in connection with the carjacking and robbery conspiracy, Nesmith participated in a carjacking and two armed robberies and an attempted armed robbery, during two victims were shot and killed and one was shot and seriously injured. Specifically, a carjacking on April 19, 2019, in which a firearm was brandished; the July 23, 2019 robbery of Devon Chavis during which at least one member of the conspiracy discharged a firearm, striking and killing Chavis; the August 1, 2019 attempted robbery of Kendrick Sharpe, during which at least one member of the conspiracy fired a gun, striking and killing Sharpe; and the August 8, 2019 robbery of a victim, during which at least one member of the conspiracy fired a gun, striking and severely injuring the victim. In addition, Nesmith knew that his co-conspirators would commit other acts that he did not participate in, including a carjacking on June 12, 2019 where an individual was shot and killed, and five additional carjackings committed from June 12, 2019 through July 29, 2019.
According to Nesmith’s and Chester’s plea agreements, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreements, the gang benefitted financially from, and affected interstate commerce by, selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of the robberies and murders among members who participated, and often contacted each other to commit a robbery if that member needed money.
Also, according to the plea agreements, Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. They limited conversations about criminal plans to members of Triple C and critiqued each other after committing crimes regarding ways to improve their actions.
Chester admitted that he participated in five murders during which at least one member of the conspiracy discharged a firearm, including the murder of Devonte Monroe on August 19, 2017, the murder of Carols Jones on August 28, 2017, the murder of Diamante Howard on April 21, 2018, the murder of Darius Mason on July 29, 2018, and the murder of Corey Moseley on December 31, 2018. In addition, Chester participated in an attempted murder on April 4, 2018 and on May 1, 2018 was found with the firearm which is a ballistics match to that attempted murder. Nesmith admitted that as part of his activities with Triple C, he participated in four attempted murders, including an attempted murder of an individual on February 24, 2019; the attempted murder of Bel Air Road rivals on March 2, 2019; and the attempted murder of two individuals on July 4, 2019. Chester and Nesmith acknowledged that as part of their activities with Triple C, they agreed to distribute controlled substances, including crack cocaine and that it was reasonably foreseeable to them that members of the conspiracy would commit additional murders, attempted murders, carjackings, and robberies.
Chester, Nesmith and the government have agreed that, if the Court accepts their pleas, Chester will be sentenced to 20 years in federal prison and Nesmith will be sentenced to 40 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for Chester of October 7, 2022, at 10 a.m. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for Nesmith on October 28, 2022, at 12 p.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in these investigations and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigations and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting these cases.
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Twelve Alleged Members of Methamphetamine and Cocaine Trafficking Ring ArrestedRead the Press Release
EVANSVILLE – A federal grand jury returned an indictment charging twelve individuals with conspiracies to distribute methamphetamine and cocaine. Three of the defendants are also charged with illegally possessing firearms as convicted felons. The indictment was unsealed today following their arrests and initial appearances.
As alleged in court documents, John Byers, of Bowling Green, Kentucky, was the leader of a drug trafficking organization based out of Evansville that distributed large quantities of methamphetamine and cocaine around southern Indiana. Byers supplied codefendant Stacey Cabell, of Evansville, and others with methamphetamine. Byers also coordinated with others, including Lance Foster, of Plano, Texas, and Octavia Finott, of Evansville to ship multiple pound quantities of methamphetamine into the Evansville area. Byers further supplied Robert Brown, Jr., of Evansville, and others with cocaine.
The indictment alleges that multiple members of this drug trafficking ring were already convicted felons who illegally possessed firearms.
To date in this investigation, authorities have seized approximately 35 pounds of methamphetamine, approximately 45 grams of cocaine, and 4 firearms.
The following individuals are in custody or have been ordered to appear in federal court:
Defendant
Charge(s)
John Byers, 48, of Bowling Green, Kentucky
Conspiracy to distribute methamphetamine and cocaine
Lance Foster, 42, of Plano, Texas
Conspiracy to distribute methamphetamine
Octavia Finott, 38, of Evansville
Conspiracy to distribute methamphetamine
Stacey Cabell, 49, of Evansville
Conspiracy to distribute methamphetamine and cocaine
Taran Johnson, 24, of Evansville
Conspiracy to distribute methamphetamine
William Bacon, 56, of Evansville
Conspiracy to distribute methamphetamine; felon in possession of a firearm
Thomas Vest, 27, of Evansville
Conspiracy to distribute methamphetamine; felon in possession of a firearm
James Musgrave, 39, of Evansville
Conspiracy to distribute methamphetamine
Robert Brown, Jr., 51, of Evansville
Conspiracy to distribute cocaine
*Tony Johnson, 31, of Evansville
Conspiracy to distribute cocaine; felon in possession of a firearm
Tyron Northington, 33, of Evansville
Conspiracy to distribute cocaine
Antwan Hendry, 48, of Evansville
Conspiracy to distribute cocaine
The defendants face the following possible penalties, if convicted:
Charge
Penalties
Conspiracy to distribute methamphetamine
10 years to life in prison
Conspiracy to distribute cocaine
5 to 40 years in prison
Felon in possession of a firearm
Up to 10 years in prison
Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
This case was the result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Postal Inspection Service, the Evansville-Vanderburgh County Drug Task Force, the Evansville Police Department, the Vanderburgh County Sheriff’s Office, the Indiana State Police, and the Bowling Green Kentucky Police Department. The Vanderburgh County Prosecutor’s Office provided invaluable assistance.
U.S. Attorney Myers thanked Assistant United States Attorney Kristian Mukoski, who is prosecuting this case.
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, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Troy Resident Pleads Guilty to Role in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Terrell McDonald, age 32, of Troy, New York, pled guilty today to conspiracy to commit bank fraud and aggravated identity theft, announced United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville.
In pleading guilty, McDonald, whose aliases include “Ruger” and “Moon,” admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2018 and September 2020. McDonald and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. After committing these “smash-and-grab” vehicle thefts, McDonald and other members of the conspiracy used stolen debit cards, credit cards, checkbooks, and photo identifications to commit bank fraud by recruiting women who impersonated the smash-and-grab victims in drive-through bank lanes to withdraw money and cash checks. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in narcotics. McDonald admitted that the loss amount from the conspiracy attributable to him is between $95,000 and $150,000.
The charges to which McDonald pled guilty carry a minimum sentence of 2 years in prison and a maximum sentence of 30 years, a fine of up to $1 million, and a supervised release term of up to 5 years. McDonald will be sentenced on October 27, 2022, by Senior United States District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
McDonald was one of nine men charged in a 13-count indictment for their roles in the scheme. Keyshawn Arnold, age 25, of Schenectady, New York, and Tyrone Parker, age 40, of Fort Lauderdale, Florida, previously pled guilty for their roles in the indictment. The remaining co-defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 22, of Fort Lauderdale, Florida;
- JOSHUA MALLORY, a/k/a “P,” a/k/a “Pudge,” age 37, of Fort Lauderdale;
- RANDALL TAYLOR, a/k/a “Gucci,” a/k/a “Guwop,” age 35, of Fort Lauderdale;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida;
- ROBERT NATSON, a/k/a “Big Rob,” age 36, of Fort Lauderdale; and
- GARY GRIER, a/k/a “G,” age 36, of Fort Lauderdale.
Each of these defendants is charged with conspiracy to commit bank fraud and aggravated identity theft. The charges in the indictment are merely accusations, and the defendants whose cases remain pending are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
The case is being prosecuted by Assistant United States Attorneys Matthew J. McCrobie and Michael F. Perry.
Three More Defendants Sentenced for Their Roles in Wide-Ranging Medicaid Fraud ConspiracyRead the Press Release
PITTSBURGH, Pa. – Two residents of Pittsburgh and a resident of Georgia were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and related offenses, United States Attorney Cindy K. Chung announced today.
During sentencing hearings on June 28 and June 29, 2022, United States District Judge Cathy Bissoon sentenced Tiffhany Covington, 45, of Pittsburgh, to fifteen months’ imprisonment; Luis Columbie-Abrew, 36, of East Point, Georgia, to three years’ probation, including twelve months of home confinement; and Julie Wilson, 51, of Pittsburgh, to three years’ probation, including six months of home confinement. Covington, Columbie-Abrew, and Wilson were also ordered to pay restitution to the Pennsylvania Medicaid program totaling $245,376.26, $164,799.48, and $2,083.36, respectively. All three defendants previously pleaded guilty to conspiracy to commit health care fraud. Columbie-Abrew and Wilson also pleaded guilty to health care fraud, with Columbie-Abrew pleading guilty to an additional charge of aggravated identity theft.
During their plea hearings, each defendant admitted that they were employees of one or more of four related entities operating in the home health care industry—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), Coordination Care, Inc. (CCI), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between 2011 and 2017, the defendants admitted that they participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims or for which there was insufficient or fabricated documentation to support the claims. The Court was further advised that the defendants conspired with, among others, Arlinda Moriarty, the owner of MCI, ADL, and EPS; Daynelle Dickens, the owner of CCI and Arlinda Moriarty’s sister; various office workers at the companies, including Tamika Adams, Tony Brown, Terra Dean, Larita Walls, Keith Scoggins, and Tia Collins; and caregivers (“attendants”) at MCI, including Tionne Street and Autumn Brown. To date, each of these co-conspirators have also pleaded guilty for their roles in the conspiracy.
As part of the conspiracy, the defendants each admitted that co-conspirators fabricated timesheets to reflect the provision of in-home PAS care they provided to consumers but that, in fact, never occurred. In addition, certain co-conspirators, including Covington and Columbie-Abrew, stopped using their own names as the attendant on timesheets and instead used the names of “ghost” attendants, some of whom permitted their names to be used in exchange for a kickback of resulting fraudulent salary payments. The defendants also admitted that certain co-conspirators submitted false timesheets for PAS care they never provided during times when they were actually working at other jobs or living out of the area. In some cases, as the defendants acknowledged, Medicaid claims were submitted for PAS care that purportedly occurred while consumers were hospitalized, incarcerated, or deceased, and in other instances, co-conspirators paid kickbacks to consumers in exchange for the consumers’ agreement to participate in the submission of fraudulent timesheets in support of Medicaid claims. Indeed, Columbie-Abrew specifically admitted causing the submission of hundreds of thousands of dollars of Medicaid claims for purported care of consumers who lived in the Pittsburgh area, despite the fact that he—as the purported attendant—lived several states away in Georgia.
The defendants also admitted that Arlinda Moriarty directed co-conspirators, including Covington, to bill the maximum allowable PAS and service coordination hours for consumers to maximize profits and to ensure that the state did not require MCI, ADL, and CCI to forfeit underutilized consumer hours. To that end, Wilson acknowledged that, at Moriarty’s behest, she collected information about consumers who had “unused” PAS care hours—that is, hours of authorized PAS care that had not been performed and, as a result, had not been billed to Pennsylvania Medicaid. In response, Wilson would provide lists of such consumers and their “unused” hours to Moriarty and Dickens. Moriarty, in turn, would direct Wilson to submit false claims, in bulk, for some or all of the “unused” hours—without the relevant consumers’ knowledge or consent. Wilson further admitted that she would then send Moriarty a list of the “unused” hours Wilson had billed and that required the creation of back-dated timesheets to document the purported care. Rampant document fabrication also occurred during the course of state audits of the Moriarty-related entities.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of
Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.Three Florida Pharmacies Agree to Pay $830,707 to Resolve Allegations They Fraudulently Billed Federal Health Care ProgramsRead the Press Release
Miami, Florida – Habana Hospital Pharmacy, Inc., Longevity Drugs, LLC, and Forest Hill Pharmacy, LLC, all Florida-based pharmacies, have agreed to pay $830,707.19 to resolve allegations they fraudulently used collaborative pharmacy practice agreements to bill federal health care programs for unlawfully prescribed medications.
The United States previously alleged that five Florida-based pharmacies, including Habana Hospital Pharmacy, Inc., Longevity Drugs, LLC, Forest Hills Pharmacy, LLC, APB&J Holdings Corporation, and Tropic Pharmacy Holdings, Inc., violated the False Claims Act through the fraudulent use of collaborative pharmacy practice agreements. Representatives of the five pharmacies signed the settlement agreement.
A collaborative pharmacy practice agreement is a written agreement between a physician and pharmacist that allows the pharmacist to provide specific patient care services for chronic health conditions to the physician’s patients. Services provided by the pharmacist are outlined in the written agreement and must be in accordance with Florida law.
The United States previously alleged that the settling pharmacies used unlawful collaborative practice agreements to delegate prescribing authority from physicians to pharmacists, resulting in unlawful prescriptions, and used the same collaborative practice agreements to write and fill prescriptions without any physician involvement. It was alleged that the fraudulent scheme resulted in the submission of false claims to federal health care programs, including Medicare and Medicaid.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the settlement.
The settlement resolved allegations in a lawsuit filed by Beatriz Morales in federal court in Miami, Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act allows the government to intervene and take over the action, as it did in this case. The whistleblower share to be awarded in connection with the settlement is $166,141.44.
HHS-OIG investigated the matter. Assistant United States Attorney Matthew J. Feeley handled the litigation.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 17-cv-80871.
A copy of the settlement agreement is available
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St. Petersburg Man Sentenced to More Than 5 Years in Prison for His Involvement in Drug Trafficking OrganizationRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber today sentenced Shyron Deonta Givens, a/k/a “Ron,” (45, St. Petersburg) to 5 years and 10 months in federal prison for conspiring to distribute cocaine. Givens had pleaded guilty on April 16, 2021.
According to court documents, Givens was one of eleven defendants charged with federal drug trafficking offenses. According to the indictment, from around August 2018, and continuing through November 26, 2019, Givens and others conspired to distribute heroin, fentanyl, and cocaine. As part of this conspiracy, Givens facilitated cocaine deals between the co-defendants. In total, Givens was responsible for several drug transactions that involved more than 5 kilograms of cocaine.
Each of the eleven individuals charged in this case has pleaded guilty and been sentenced, as reflected in the chart below:
Defendant (age, residence)
Sentence Imposed
Ahmad Rashad Weston, a/k/a “Blood,” (45, St. Petersburg)
17 years, 6 months
Charleston Shellie Long, a/k/a “Shellie,” (41, St. Petersburg)
7 years, 6 months
Shyron Deonta Givens, a/k/a “Ron,” (45, St. Petersburg)
5 years, 10 months
Charlie James McDuffy, Jr. (34, Clearwater)
10 years
Teddy Terrell Strachan (40, Pembroke Pines)
6 years, 6 months
Ceveghnta Billvon Guyden, a/k/a “Chop,” (44, St. Petersburg)
17 years, 6 months
Quincy Alfonzo Turner, a/k/a “Chico,” (44, St. Petersburg)
10 years
Justice Deshonna McLaurin, a/k/a “Jussy,” (27, St. Petersburg)
5 years
Willie Carl McLaurin, a/k/a “Baldy,” (55, St. Petersburg)
Time Served
Ja’Vonta Willie McLaurin, a/k/a “Tay Tay,” (28, St. Petersburg)
5 years
Willie Carl McLaurin, Jr. (33, St. Petersburg)
5 years
This case was investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Drug Enforcement Administration, the St. Petersburg Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
St. Louis man sentenced on aggravated ID theft, other chargesRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a St. Louis man who used stolen identities to perpetrate a series of crimes, including hiding evidence for a jail inmate, to three years and eight months in prison.
Bryson Whiteside, 24, was also ordered to pay restitution of $8,735.
Whiteside pleaded guilty March 23 to use of a counterfeit access device, aggravated identity theft, two counts of possession of counterfeit securities and possession of a stolen vehicle.
Whiteside admitted that in early 2021, he used someone else’s name and birthdate, as well as a counterfeit ID, to communicate with Samuel Stoddard, who was at that time a pretrial detainee at the Jennings jail. Stoddard asked Whiteside to remove evidence of criminal activity from a storage facility, and Whiteside then used a second person’s identity to recover the items. After Stoddard was released from jail, he violated a judge’s order by leaving Missouri. Whiteside met with Stoddard in Kentucky, and Stoddard gave Whiteside a stolen car, a counterfeit temporary Illinois license bearing Whiteside’s picture and a counterfeit Illinois motor vehicle registration card in Whiteside’s name.
On May 4, 2021, investigators found Whiteside in a St. Charles motel with scanners, laptop computers, stolen financial records and personal identifying information that Whiteside intended to use to produce and use counterfeit checks and fraudulently obtain credit cards.
Whiteside’s co-defendant, Ashley Kelley, 30, of St. Ann, was sentenced last month to three years and one month in prison.
Stoddard is scheduled to be sentenced in September after admitting a series of crimes involving the use of stolen or fraudulent identities.
The case was investigated by the U.S. Postal Inspection Service, the U.S. Secret Service and the Missouri Department of Revenue. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Springfield Man Sentenced to 18 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Springfield man has been sentenced in federal court for leading a conspiracy to distribute methamphetamine in the Springfield area, including an undercover drug transaction that occurred in a home with two young children.
Devin J.H. Wrinkle, 32, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 28, to 18 years and four months in federal prison without parole.
On Jan. 27, 2022, Wrinkle pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Mo., from Dec. 27, 2019, to Aug. 19, 2020. He also pleaded guilty to distributing methamphetamine on a premises where a minor resided.
During the course of the drug-trafficking conspiracy, officers seized more than 425 grams of methamphetamine from Wrinkle and co-defendant Ashley N. Cooney, 39, of Springfield. In addition to the methamphetamine that was seized, an undercover law enforcement officer saw Wrinkle in possession of at least two pounds of methamphetamine.
Two confidential informants contacted law enforcement in January 2020 regarding Wrinkle being a pound-level distributor of methamphetamine in the Springfield area. An undercover law enforcement officer purchased methamphetamine from Wrinkle on two occasions. Wrinkle was in possession of a firearm during one of those undercover transactions, and again when he fled from the police on a motorcycle.
The second undercover drug transaction occurred at the John B. Hughes Apartments, inside another person’s apartment where two children, ages five and seven, resided. Wrinkle was in possession of at least two pounds of methamphetamine on that occasion.
On March 4, 2020, law enforcement officers executed a search warrant at Cooney’s residence. Officers found a Starbucks cup with approximately 34.2 grams of methamphetamine, a purse that contained a small baggie with approximately 1.1 grams of methamphetamine, another small baggie that contained approximately 1.1 grams of methamphetamine, three water bongs with methamphetamine residue inside a desk drawer, and drug paraphernalia in an upstairs office. Inside the toilet bowl of the upstairs bedroom, officers found two plastic bags that contained a total of approximately 329 grams of methamphetamine.
Later that month, according to court documents, Wrinkle fled from police on a motorcycle in possession of a firearm, ammunition, methamphetamine, and marijuana. He wrecked the motorcycle and took off running, at which point he tossed the firearm on the ground.
Cooney pleaded guilty and was sentenced on March 17, 2022, to three years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration, the Springfield, Mo., Police Department, and the Greene County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
South Florida Health Care Clinic Owners, Employees Sentenced for Roles in Multiple Fraud SchemesRead the Press Release
Miami, Florida – A federal district judge in Miami sentenced the last of five defendants for his role in a health care fraud scheme operated out of a physical therapy clinic in Doral.
According to court records, the defendants recruited and paid off beneficiaries of Blue Cross Blue Shield (BCBS) health insurance plans, then billed BCBS for services the clinic either never provided or which were not medically necessary. The two clinic owners also used the business, Polyclinic Healthcare Corp., to fraudulently obtain COVID-19 relief funds.
The five defendants were sentenced as follows:
- Carlos Rafael Saez Dorta, age 42, (clinic owner) was sentenced to 135 months in prison following a jury trial, three years’ supervised release, and ordered to pay $4,434,069 in restitution;
- Veronica Ramos Hernandez, age 35, (clinic owner) was sentenced to 135 months in prison following a jury trial, three years’ supervised release, and ordered to pay $4,434,069 in restitution;
- Michael Burrowes, age 43, (patient recruiter) was sentenced to 46 months in prison following a guilty plea, three years’ supervised release, and ordered to pay $73,116.61 in restitution;
- Dianelis Garcia Alvarez, age 41, (office manager) was sentenced to 35 months in prison following a guilty plea, three years’ supervised release, and ordered to pay $357,256 in restitution; and
- Deandre Mitchell Gabriel, age 33, (patient recruiter) was sentenced to 24 months in prison following a guilty plea, three years’ supervised release, and ordered to pay $30,810 in restitution;
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
According to evidence introduced in court, the billing fraud conspiracy resulted in more than $8 million in false claims being submitted to BCBS. Most of the claims were for unneeded or never-provided physical therapy treatments, such as electrical stimulation, ultrasound therapy, and therapeutic exercise, as well as for durable medical equipment.
Additionally, the evidence showed that in 2021 the clinic owners (Saez and Ramos) applied for a $607,585 Paycheck Protection Program (PPP) loan as well as a $500,000 Economic Injury Disaster Loan (EIDL) from the U.S. Small Business Administration (SBA). As a result, Saez and Ramos received over $1 million through these COVID-19 relief programs, stealing money that was meant for legitimate small businesses suffering from the devastating effects of the COVID-19 pandemic.
FBI Miami investigated the case. Assistant U.S. Attorneys Shannon Shaw and Stephanie Hauser for the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Annika Miranda handled asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The CARES Act also authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20324.
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Sober Home Owner Sentenced to 30 Months in Prison for $4.5 Million Kickback SchemeRead the Press Release
A Florida woman was sentenced today to 30 months in prison for a scheme to solicit and receive illegal kickbacks and bribes in exchange for referring residents of her sober home to a substance abuse treatment center, which billed insurance companies $4.5 million for medically unnecessary drug testing and purported substance abuse treatment provided to those residents.
According to court documents, Marthe Hippolyte, 59, of Wellington, owned Turning Point Sober Home Inc. and a related marketing company, through which she operated several sober living residences in Florida to house individuals in a drug- and alcohol-free environment while they received treatment at substance abuse treatment centers. Hippolyte accepted approximately $254,000 in kickbacks and bribes, often disguised as management fees, from Kenneth Chatman, the operator of Reflections Treatment Center (RTC), a treatment center that purported to operate as a licensed substance abuse treatment center. In exchange for the kickbacks and bribes, Hippolyte helped bring in patients from outside Florida who could be referred to RTC and required residents of Turning Point’s sober homes to travel to RTC several times per week to attend purported substance abuse treatment sessions and submit to urine drug testing. For the residents referred to RTC by Hippolyte, Chatman and others billed private insurers $4.5 million for substance abuse and bodily fluid testing that was medically unnecessary, not reimbursable, and not provided as represented.
Hippolyte pleaded guilty on Jan. 25, to one count of conspiracy to violate the Travel Act. Chatman pleaded guilty in 2017 to conspiracy to commit health care fraud, money laundering, and conspiracy to commit sex trafficking, and was sentenced to 330 months imprisonment.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
This case was investigated by the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI; IRS-Criminal Investigation; Palm Beach County State Attorney’s Office, Florida Department of Financial Services, Division of Investigative & Forensic Services; Amtrak Office of Inspector General; and Department of Labor-Employee Benefits Security Administration.
Trial Attorney Gary A. Winters of the Fraud Section’s National Rapid Response Strike Force is prosecuting the case.
Six-time convict and multi-gang member heads to prison againRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Victoria man has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.
Michael Salazar pleaded guilty April 7.
Today, U.S. District Judge Drew B. Tipton ordered Salazar to serve 95 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence of telephonic conversations during which Salazar discussed illicit drug sales and purchases. While in custody, Salazar also provided an individual with his Facebook login information and instructed her to “deactivate it” and “erase everything.”
Salazar was also identified as a member of the Tango Valluco, Tango Blast and Tango Houston gangs. In addition, the court learned of Salazar’s extensive criminal history that includes six prior drug convictions. Salazar committed the instant offense while serving a sentence for unlawful delivery of controlled substance.
On July 22, 2021, law enforcement was conducting surveillance on a female individual who had an outstanding warrant. However, the operation eventually led to Salazar who was driving East on Port Lavaca Highway with the woman in the passenger seat. Authorities attempted to conduct a traffic stop, but he did not initially comply. He eventually did as instructed.
At that time, authorities conducted a search of the vehicle and discovered a digital scale with meth residue in the center console. They also discovered a bag with crystal-like substance on the passenger side near the front right tire.
While stopped, Salazar told the female to take a bag he had removed from his pockets and run. She did but dropped the bag on the ground. At that time, Salazar yelled several times at the female to “take the charge.”
Laboratory analysis later confirmed the substance in the bag was in fact 22.65 grams of meth at 100% purity.
Salazar has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
Sioux Falls Man Sentenced for Child PornographyRead the Press Release
United States Attorney Alison Ramsdell announced that a Sioux Falls, South Dakota, man convicted of Possession of Child Pornography was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Shilo Ziegler, age 39, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay $3,000 in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ziegler was indicted by a federal grand jury on September 9, 2020. He pled guilty on March 28, 2022.
The conviction stemmed from an incident that occurred sometime prior to December 13, 2015, in Lower Brule, South Dakota. Ziegler set up a video tablet in a room he knew a minor victim was about to enter and change in after she exited the shower. A video was later recovered on the same tablet which showed the nude minor.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, and the FBI. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Ziegler was immediately turned over to the custody of the U.S. Marshals Service.