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22 July 2022
Yakima Resident Pleads Guilty to Fraudulently Obtaining More Than $59,000 in COVID-19 Relief FundsRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Karla Padilla, age 48, of Yakima, Washington, has pleaded guilty to felony charges of fraudulently obtaining more than $59,000 in COVID-19 relief funds. The plea announced today is the most recent conviction obtained by the Eastern Washington COVID-19 Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, convictions, and civil penalties.
During the plea hearing and in the written plea agreement, Padilla acknowledged that she fraudulently obtained more than $59,000 in PPP and EIDL funding for her purported collectible car business, Queen B Collectibles, using false information about the business, and that she unsuccessfully attempted to obtain an additional nearly $200,000 in additional funding in additional applications that she made that were not approved. Padilla further admitted that her PPP and EIDL applications were false and fraudulent in that Queen B Collectibles was not an active business, and that, therefore, neither Padilla nor Queen B Collectibles were eligible for any federal EIDL or PPP funding.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
Judge Mary K. Dimke accepted Padilla’s guilty plea and set sentencing for December 20, 2022, in Yakima.
Special Assistant United States Attorney Frieda K. Zimmerman, Assistant United States Attorney Dan Fruchter, and Assistant United States Attorney Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Wakpala Man Sentenced to Prison for Embezzlement from Standing Rock Tribal OrganizationRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Wakpala, South Dakota, man convicted of embezzlement and theft from an Indian tribal organization was sentenced on July 18, 2022, by U.S. District Judge Charles B. Kornmann.
Joshua Iron Cloud, Sr., age 39, was sentenced to six months in federal prison, followed by three years of supervised release. He was also ordered to pay $23,980 in restitution to the Standing Rock Sioux Tribe and $100 to the Federal Crime Victims Fund.
Iron Cloud was indicted by a federal grand jury on September 8, 2021. He pled guilty on April 21, 2022.
According to court documents, between in or about March and May 2020, Iron Cloud embezzled, stole, and converted approximately $25,000 of monies, funds, and credits belonging to Oyate Community Development Corporation of the Standing Rock Sioux Tribe, an Indian Tribal Organization. Iron Cloud used those monies on personal items and expenditures.
This case was investigated by the FBI and U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Iron Cloud will report to the U.S. Marshals Service on or before November 1, 2022, to begin serving his custody sentence.
This case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: the FBI; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Wakpala Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Wakpala, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Adrian Spotted Horse, age 43, was indicted on June 14, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 20, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May and June of 2022 in South Dakota, Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update a registration.
The charge is merely an accusation and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Vandalia Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. – Shane Hans, 45, of Vandalia, Illinois, pled guilty in federal court on
Thursday, July 21, 2022, to one count of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of felon in possession of a firearm. As part of his guilty plea, Hans acknowledged that on May 14, 2021, he possessed, with intent to distribute, approximately 15 grams of methamphetamine that was recovered by law enforcement officials from his residence in Vandalia, Illinois. Hans also acknowledged he possessed a firearm recovered from his residence on that date, while knowing he was a convicted felon. Hans further acknowledged on July 24, 2021, he knowingly distributed approximately 14 grams of methamphetamine from his residence in Vandalia. Hans is scheduled to be sentenced on November 17, 2022. Hans faces a maximum sentence of 20 years imprisonment.
U.S. Attorney Rachelle Aud Crowe thanks the Federal Bureau of Investigation-Springfield Field
Office and the Fayette County Sheriff’s Office for their work in investigating the case and notes that, “this kind of cooperative effort between federal and local law enforcement agencies is essential to making our communities safer.”
The case is being prosecuted by Assistant United States Attorney Daniel T. Kapsak.Uber Enters Non-Prosecution Agreement Related to 2016 Data BreachRead the Press Release
SAN FRANCISCO – Uber Technologies, Inc., has entered a non-prosecution agreement with federal prosecutors to resolve a criminal investigation into the coverup of a significant data breach suffered by the company in 2016, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
As part of a non-prosecution agreement to resolve the investigation, Uber admitted to and accepted responsibility for the acts of its officers, directors, employees, and agents in concealing its 2016 data breach from the Federal Trade Commission (“FTC”), which at the time of the 2016 breach had a pending investigation into the company’s data security practices. The FTC’s investigation continued from 2015 into 2017, and its written questions to Uber required Uber to provide information about any unauthorized access to personal information.
In the agreement’s Statement of Facts, Uber admits that its personnel failed to report the November 2016 data breach to the FTC despite a pending FTC investigation into data security at the company. According to the agreed facts, the hackers responsible for the 2016 breach used stolen credentials to access a private source code repository and obtain a private access key. The hackers then used that key to access and copy large quantities of data associated with Uber’s users and drivers, including data pertaining to approximately 57 million user records with 600,000 drivers’ license numbers. The breach was not reported to the FTC until approximately a year later, when new executive leadership was managing the company. Upon learning of the 2016 data breach, the new leadership team investigated the breach and disclosed it to affected drivers, to the public, to law enforcement, and to foreign and domestic regulators, including state attorneys general and the FTC.
The agreement filed today acknowledges several factors that support the resolution of the criminal investigation by a non-prosecution agreement. First, the agreement notes a change of executive management in late 2017 and the new leadership team’s prompt investigation of the 2016 breach and its disclosure to the public, FTC, law enforcement, and foreign and domestic regulators, and state attorneys general. Second, the agreement notes the company has invested substantial resources to significantly restructure and enhance the company’s compliance, legal, and security functions.
Third, the agreement further describes that in October 2018, after disclosing the 2016 data breach, Uber entered an agreement with the FTC under which Uber agreed to maintain a comprehensive privacy program for 20 years and to report to the FTC any incident reported to other government agencies relating to unauthorized intrusion into individuals’ consumer information. Fourth, the agreement cites Uber’s full cooperation with the government investigation of this matter, including the ongoing criminal case against Uber’s former chief security officer for his alleged attempt to cover-up the 2016 breach. However, the charges in that case are merely allegations, and the defendant in that case, as in all criminal cases, is presumed innocent until proven guilty beyond a reasonable doubt.
Finally, the agreement also notes that Uber settled civil litigation with the attorneys general for all 50 States and the District of Columbia related to the 2016 data breach, paying $148 million and agreeing to implement a corporate integrity program, specific data security safeguards, and incident response and data breach notification plans, along with biennial assessments.
Link to non-prosecution agreement here.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI. The U.S. Attorney’s Office acknowledges the assistance of the FTC.
U.S. Attorney General Merrick B. Garland Calls Mexico’s Secretary of Foreign Affairs Marcelo Ebrard Casaubon to Discuss the Extradition of Rafael Caro-QuinteroRead the Press Release
This afternoon, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Secretary of Foreign Affairs Marcelo Ebrard Casaubon. The two leaders previously met in Mexico City during the first U.S.-Mexico High-Level Security Dialogue (HLSD). During today’s call, Attorney General Garland expressed his gratitude to Secretary Ebrard and the Government of Mexico for successfully arresting Rafael Caro-Quintero. The Attorney General also offered his condolences to the families and loved ones of the Mexican servicemembers who gave their lives in service to their country last week. The two leaders reaffirmed their shared commitment to working expeditiously on the extradition of Caro-Quintero, who is wanted in the United States on a number of criminal charges, including his alleged involvement in the kidnapping and murder of Drug Enforcement Administration Special Agent Enrique “Kiki” Camarena in 1985.
U.S. Attorney Chris Kavanaugh Selected as Chair of the Attorney General’s Advisory Subcommittee on Terrorism and National SecurityRead the Press Release
CHARLOTTESVILLE, Va. – United States Attorney Chris Kavanaugh of the Western District of Virginia has been selected to chair the Terrorism and National Security Subcommittee for the Attorney General’s Advisory Committee (AGAC). The Terrorism and National Security Subcommittee is comprised of 18 current United States Attorneys representing districts throughout the country and is dedicated to addressing issues relating to investigating and prosecuting threats to national security and acts of domestic and international terrorism.
“The Department of Justice’s core priority is keeping our country safe from all threats, foreign and domestic. A critical step in achieving that goal is the streamlined approach to investigating and prosecuting threats to our national security, including acts of terrorism and espionage,” said U.S. Attorney Kavanaugh. “Our partners in law enforcement and the intelligence community are dedicated to this same mission, and I am thrilled to work with my fellow United States Attorneys to advise the Department on leading issues related to the investigation and prosecution of these central cases.”
Prior to his appointment as United States Attorney for the Western District of Virginia, Kavanaugh had been a federal prosecutor for 14 years, having served as the chief national security prosecutor in the United States Attorney’s Office (USAO) for the Western District of Virginia and also as a federal prosecutor in the National Security Section of the USAO for the District of Columbia.
In his role as Terrorism and National Security Subcommittee Chair, U.S. Attorney Kavanaugh will work with United States Attorneys across the country to provide leadership, guidance, and cooperation with the AGAC on terrorism and national security matters impacting federal prosecutions across the United States.
Established in 1973, the AGAC and its subcommittees advise the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.
Two defendants enter guilty pleas in Sweetie Pie’s murder-for-hire schemeRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross accepted a plea of guilty from Terica Taneisha Ellis and Waiel Rebhi Yaghnam on today’s date. A grand jury in the Eastern District of Missouri previously indicted Yaghnam and Ellis in August of 2020. Additional charges were filed in November 2020 for Yaghnam and Ellis for their roles in the murder-for-hire scheme involving James Timothy Norman and the death of Andre Montgomery. Judge Ross set sentencing for October 26, 2022.
According to the plea agreements, beginning at a time unknown, but up to and including March 14, 2016, and through the date of the superseding information, in the City of St. Louis and elsewhere within the Eastern District of Missouri, Terica Ellis, James Timothy Norman and others reached an agreement to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a $450,000 life insurance policy on his 20-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary.
Ellis and Norman had been involved in a sexual relationship for several years preceding the events of March 14, 2016. At Norman’s request, Ellis met him at the Chase Park Plaza Hotel, where they spoke and engaged in sexual intercourse. Afterward, Norman and Ellis spoke about Norman’s nephew, Andre Montgomery. Norman showed her a photograph of Montgomery and asked if she knew him.
Ellis advised that she had previously met Montgomery at Bottom’s Up, an exotic dance club in East St. Louis where she worked as a dancer. Norman advised Ellis that he was looking for Montgomery and needed her help to find him. Norman further explained that he was upset with his nephew. She informed Norman that Montgomery had introduced himself to her as a rapper from New Orleans while at Bottom’s Up and that they had exchanged phone numbers at that time.
Ellis agreed to assist Norman in locating Montgomery on March 14, 2016. Norman had advised her that he was looking for his nephew, and Ellis knew that Norman was upset and frustrated by his inability to locate Montgomery and knew that Norman was going to take some form of action relative to Montgomery. Despite this, Ellis did not take any affirmative steps to disavow or defeat the purpose of the commission of violent criminal activity on March 14, 2016.
In the days leading up to Montgomery’s murder, Ellis, communicated with Montgomery and informed him that she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location for the purpose of luring Montgomery outside.
Immediately after learning Montgomery’s location, Ellis placed a call to Norman. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman, and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis accepted a cash payment of $10,000.00 in U.S. currency from Norman in exchange for, among other things, finding out the location of Montgomery, causing him to come outside, and relaying the location information to co-defendants Norman and Travell Hill. Hill subsequently shot and killed Montgomery. Hill plead guilty to the charges on June 3, 2022.
On March 15, 2016, the day after Montgomery’s homicide, Ellis deposited $3,020.00 in U.S. currency into her checking account at the Orange Mound branch of the First Horizon Bank in Memphis, Tennessee. On the same date, she also deposited $4,340.00 into a savings account opened that day at the same bank in Memphis, Tennessee, for a total of $7,360.00 in cash deposits. On March 17, 2016, Ellis deposited an additional $1,900.00 in U.S. Currency into her checking account at the same branch. These deposits were all cash proceeds from the agreement she had made with Norman.
On March 18, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
According to Yaghnam’s plea agreement, prior to Montgomery’s murder, Norman conspired with Yaghnam, his insurance agent, to fraudulently obtain a life insurance policy on Montgomery. Beginning in October of 2014, Norman and Yaghnam submitted three separate life insurance applications, all containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background.
In the life insurance policy that ultimately issued, Norman obtained a $200,000 policy, as well as $200,000 accidental death rider that would pay out if Montgomery died of something other than natural causes, and a $50,000 10 year-term rider that would pay out if Montgomery died within 10 years of the policy’s issuance in 2014.
Following the murder of Andre Montgomery, Yaghnam placed two telephone calls to one of the insurance agencies seeking to file a claim on the life insurance policy James Timothy Norman owned on the victim.
On March 30, 2016, Yaghnam placed a phone call to Foresters Insurance agency lasting 10 minutes and two seconds. On May 21, 2016, Norman submitted to Foresters via US mail a written claim on his life insurance policy on Andre Montgomery.
On July 6, 2016, Norman received a letter via US mail from Foresters indicating that Foresters still had not received the finalized police, toxicology, and coroner’s reports necessary to process his claim on the life insurance policy. Between August of 2016 and November of 2016, Norman repeatedly contacted Foresters in connection with his attempt to claim the life insurance policy.
In or about September of 2018, Norman retained an attorney to represent him in connection with his attempt to claim the Foresters life insurance policy. That attorney subsequently sent a letter to Foresters indicating that Norman had authorized the attorney to file a lawsuit for failure to promptly pay the life insurance claim. On September 26, 2019, Foresters sent Norman a letter via US mail advising that as of the date of the letter, Foresters still had not received all the documentation required to adjudicate his claim on the life insurance policy.
Co-defendant Travell Hill pleaded guilty and is awaiting sentencing scheduled for September 20, 2022. James Timothy Norman is currently awaiting trial.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
Two Clinical Labs and Their Owners Agree to Pay $5.7 Million to Resolve False Claims and Kickback AllegationsRead the Press Release
NEWARK, N.J. – Two clinical laboratories and their owners have agreed to pay $5.7 million to resolve allegations that they caused the submission of false claims to Medicare by paying kickbacks in return for genetic testing samples, the Department of Justice announced today.
Metric Lab Services LLC and Metric Management Services LLC (Metric) and Spectrum Diagnostic Labs LLC (Spectrum) and two of their owners and operators, Sherman Kennerson and Jeffrey Madison, have agreed to the settlement.
“Rather than compete fairly for business, these labs engaged in a brazen kickback scheme to rake in millions of dollars of Medicare money,” Philip R. Sellinger, U.S. Attorney for the District of New Jersey, said. “A patient’s needs must guide medical decisions, not who is paying the biggest kickback. Today’s settlement recoups millions of dollars for the Medicare program, and demonstrates this Office’s continuing resolve to protect the integrity of federal healthcare programs.”
“Laboratories that attempt to profit from unlawful kickbacks will be held accountable,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”
“When health care providers engage in kickback schemes – particularly ones that deceive Medicare patients about the medical necessity of services – the trust of both patients and taxpayers are at risk,” Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “This case shows our commitment to investigating such allegations in order to protect the Medicare program’s ability to subsist and serve its mission.”
Metric and Spectrum were clinical laboratories in Mississippi and Texas, which Kennerson and Madison co-owned and operated along with other individuals. The United States alleged that Metric, Spectrum, Kennerson and Madison participated in a genetic testing fraud scheme with various marketers. These marketers solicited genetic testing samples from Medicare beneficiaries. The marketers arranged to have a physician fraudulently attest that the genetic testing was medically necessary, and Metric and Spectrum would process the tests, receive reimbursement from Medicare and pay a portion of that reimbursement to the marketers.
In an attempt to conceal the nature of the kickback arrangement, Metric and Spectrum entered into sham agreements with marketers to provide various consulting, marketing and other services at an hourly rate. In reality, however, Metric and Spectrum paid the marketers a percentage of revenue, including Medicare reimbursement, in return for the samples. The marketers then generated sham invoices for hourly services that matched the agreed-upon kickback amount.
Kennerson and Madison each previously pleaded guilty to one count of conspiracy to defraud the United States in connection with this scheme and are awaiting sentencing.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Andrew A. Caffrey III of the District of New Jersey and DOJ Trial Attorney J. Jennifer Koh.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability except to the extent admitted by Kennerson and Madison in their criminal pleas.
Two Airline Passengers Indicted for Interfering with Crew and Attendant on Flight to New DelhiRead the Press Release
SAN FRANCISCO – An indictment unsealed in federal court today charges David Singh Bhinder and Nitesh Babbar with interfering with a flight crew member and a flight attendant during a flight, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
According to the indictment, Bhinder, 44, and Babbar, 32, both of Southern California, were passengers onboard United Airline Flight 867 on October 19, 2021, departing from San Francisco enroute to New Delhi, India. The indictment alleges the two attempted to interfere with and intimidate a flight crew member and a flight attendant during the performance of their duties. The indictment describes that Bhinder and Babbar were disruptive and unruly, threatened to assault a flight crew member and flight attendant, and refused to comply with directions.
Bhinder and Babbar appeared today in federal court before United States Magistrate Judge Alex Tse to face the indictment. Their next appearance is scheduled for August 10 before United States District Judge Charles R. Breyer. Both Bhinder and Babbar remain out of custody.
Bhinder and Babbar have been charged together in one count of interference and attempted interference with the performance of duties of a flight crew member and flight attendant on an aircraft in violation of Title 49, United States Code, Section 46504. The charge carries maximum possible penalties of 20 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by a court only after the court’s consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 USC § 3553.
Charges contained in a criminal indictment are merely allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by the General Crimes Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI.
Transient Sentenced for Prohibited Possession of a FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a transient woman from the Sioux Falls, South Dakota, area was convicted of possession of a firearm by a prohibited person and was sentenced on July 21, 2021, by U.S. District Judge Karen E. Schreier.
Elizabeth Ashley Drake, age 35, was sentenced to 18 months in prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Drake was indicted for possession of a firearm by a prohibited person by a federal grand jury on July 7, 2021. She pled guilty on May 5, 2022.
On or about June 11, 2021, Drake had possession of a Taurus, model 85, .38 Special caliber, double action revolver, ammunition, methamphetamine, and methamphetamine paraphernalia, in Sioux Falls.
On June 11, 2021, the Sioux Falls Police Department lawfully searched a vehicle Drake was a passenger in and located the firearms, narcotics, and syringes. Drake knew she was prohibited from possessing a firearm, as she had been previously convicted of one or more crimes punishable by imprisonment exceeding one year. Drake was also prohibited from possessing firearms as she was an unlawful user of controlled substances.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Paige Petersen prosecuted the case.
Drake was immediately turned over to the custody of the U.S. Marshals Service.
Three fugitives arrested in massive multistate fraud schemeRead the Press Release
HOUSTON – Three more co-conspirators have been taken into custody on charges related to a multi-layered mortgage fraud, credit repair and government loan fraud scheme, announced U.S. Attorney Jennifer B Lowery.
Heather Ann Campos, David Lewis Best Jr. and Stephen Laverne Crabtree had evaded law enforcement for several months.
Campos, 43, Houston, is set for a detention hearing before U.S. Judge Dena H. Palermo today at 10 a.m. Best, 56, Spring, and Crabtree, 62, Herriman, Utah, remain in custody pending further criminal proceedings.
All three allegedly sent numerous sovereign citizen letters to federal agencies and the federal court in Houston declaring themselves immune from prosecution and refusing to recognize the authority of the federal courts.
Campos and Best were indicted in January on numerous charges for participating in a conspiracy to defraud mortgage lending businesses, banks, Small Business Administration (SBA) and the Federal Trade Commission (FTC). They indicated they would self-surrender but allegedly fled from law enforcement. Since that date, several other co-conspirators were indicted, including Crabtree. He was released on bond and also became a fugitive.
Those indicted include Steven Tetsuya Morizono, 59, Mission Viejo, California; Albert Lugene Lim, 53, Laguna Niguel, California; Melinda Moreno Munoz, 41, Elvina Buckley, 68, Leslie Edrington, 65, and ShyAnne Edrington, 29, all of Houston.
The charges allege Campos and Best recruited clients for credit repair using company names of KMD Credit, KMD Capital and Jeff Funding, among others. They allegedly “cleaned” their clients’ credit histories by filing false identity theft reports with the FTC. After fraudulently inflating client credit worthiness, the co-conspirators fraudulently obtained credit cards, disaster loans and mortgages for themselves and their clients, according to the charges. They were allegedly able to accomplish this through false statements and fake documents.
Campos was a mortgage broker and Buckley a realtor, while operating as a notary was the responsibility of Munoz, according to the charges. After fraudulently inflating client credit worthiness, the individuals allegedly obtained rental properties to deceptively build a real estate portfolio worth millions of dollars in their clients’ names and profit from rental income. The charges allege Crabtree was a credit repair client and recruited others, including his family members, and conspired to commit wire fraud.
In addition, they allegedly obtained loans from banks and the SBA’s Economic Injury Disaster Loan Program and Paycheck Protection Program. They were created in the names of clients, friends and family members through false statements and fake or altered documents.
Using the alias Jeff, Morizono was the leader and namesake for the scheme purporting to do business as Jeff Funding, according to the charges.
If convicted, they all face up to 30 years in federal prison and a possible $1 million maximum fine.
The Federal Housing Finance Agency – Office of Inspector General (OIG), U.S. Postal Inspection Service and SBA – OIG conducted the investigation with the assistance of the FTC – OIG and IRS – Criminal Investigation.
Other agencies assisted with the arrests of Campos, Best and Crabtree, to include The Unified Police Department of Greater Salt Lake; police departments in South Jordan, Riverton, and Herriman, Utah; FBI Hostage Rescue Team; U.S. Postal Inspection Service – Pittsburgh and Salt Lake City Divisions; and the U.S. Marshals Violent Fugitive Apprehension Strike Force.
Assistant U.S. Attorneys Kate Suh and Jay Hileman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Twice Deported Dr National Sentence to Nine Months of Incarceration and DeportationRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Reynaldo Mejia-Mejia, 33, of the Dominican Republic, was sentenced today by District Judge Wilma Lewis on his conviction of illegally reentering the United States. Judge Lewis sentenced Mejia-Mejia to nine months of incarceration followed by one year of supervised release, deportation and was ordered not enter the United States without first obtaining the permission of the Attorney General or Department of Homeland Security.
According to court documents, on March 23, 2022, Mejia-Mejia presented himself to U.S. Customs and Border Protection (CBP) for inspection prior to boarding a Spirit Airlines flight from St. Croix to Fort Lauderdale, FL. He presented a Washington State driver’s license in the name of another individual with a photo of his likeness as proof of identification to travel. During his primary inspection, Mejia-Mejia falsely stated that he was born in Puerto Rico, despite speaking with a distinct Dominican Republic accent. A subsequent fingerprint analysis positively identified Mejia-Mejia as an individual that was previously deported in 2018 and 2019 from the United States to the Dominican Republic. It was further determined that Mejia-Mejia is not a citizen or national of the United States and was not authorized to be present in the United States.
Homeland Security Investigations and U.S. Customs and Border Protection investigated this case and Assistant United States Attorney Melissa Ortiz prosecuted this matter.
Stephen K. Bannon Found Guilty by Jury of Two Counts of Contempt of CongressRead the Press Release
WASHINGTON – Stephen K. Bannon was found guilty by a jury today of two counts of contempt of Congress stemming from his failure to comply with a subpoena issued by the House Select Committee investigating the Jan. 6 breach of the United States Capitol.
Bannon, 68, was found guilty of one contempt count involving his refusal to appear for a deposition and another involving his refusal to produce documents, despite a subpoena from the House Select Committee to Investigate the January 6th Attack on the United States Capitol. The verdict followed a trial in the U.S. District Court for the District of Columbia.
“The subpoena to Stephen Bannon was not an invitation that could be rejected or ignored,” said Matthew M. Graves, U.S. Attorney for the District of Columbia. “Mr. Bannon had an obligation to appear before the House Select Committee to give testimony and provide documents. His refusal to do so was deliberate and now a jury has found that he must pay the consequences.”
“The tenets of our government rely upon citizens adhering to the established rules of law. Lawful tools, such as subpoenas and other legal orders, are critical in our system of government,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Mr. Bannon was found guilty of contempt by a jury of his peers for his choice to ignore a lawful subpoena. The FBI will continue our sworn duty to investigate those who have committed violations of our laws and hold them accountable for their actions."
On Sept. 23, 2021, the Select Committee issued a subpoena to Bannon. In its subpoena, the Select Committee said it had reason to believe that he had information relevant to understanding events related to Jan. 6, 2021. The subpoena required him to appear and produce documents to the Select Committee on Oct. 7, 2021, and to appear for a deposition before the Select Committee on Oct. 14, 2021. Bannon refused to appear to give testimony as required by subpoena and refused to produce documents in compliance with a subpoena.
Bannon, formerly a Chief Strategist and Counselor to the President, has been a private citizen since departing the White House in 2017. He was indicted on the contempt charges on Nov. 12, 2021.
Bannon is to be sentenced on Oct. 21, 2022. Each count of contempt of Congress carries a minimum of 30 days and a maximum of one year in jail, as well as a fine of $100 to $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
St. Paul Felon Indicted for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a St. Paul man for illegally possessing a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on May 2, 2022, Terrance Terrell Lane, 25, was found to be in possession of a Glock 30, .45 caliber handgun, equipped with an extended magazine and an auto sear, a device that turns a semi-automatic firearm into a fully automatic firearm. Because Lane has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Lane is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court yesterday before Magistrate Judge David T. Schultz.
This case was jointly investigated by the FBI, the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, the Hennepin County Violent Offenders Task Force, the Minnesota Bureau of Criminal Apprehension, Dakota County Probation, and Hennepin County Probation.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Lawrence County Woman Sentenced to 84 Months for Methamphetamine ConvictionRead the Press Release
PLATTSBURGH, NEW YORK – Megan Perkins, age 33, of Ogdensburg, New York, was sentenced yesterday to 84 months in prison for possessing and distributing methamphetamine.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Perkins admitted to traveling to Akron, Ohio, where she acquired bulk quantities of methamphetamine. Perkins would then return to St. Lawrence County to distribute the methamphetamine to local drug users.
Senior United States District Judge David N. Hurd also ordered that Perkins serve a 4-year term of supervised release following her release from prison.
This case was investigated by HSI, the Massena Police Department, and the St. Lawrence County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Stitt.
Sioux Falls Man Sentenced for Involvement in Meth ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man convicted of conspiracy to distribute a controlled substance was sentenced on July 19, 2022, by U.S. District Judge Karen E. Schreier.
Det Khaoon, a/k/a "D", "Chino" and "Johnny Lee", age 38, was sentenced to 176 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Khaoon was indicted for conspiracy to distribute a controlled substance by a federal grand jury on July 7, 2021. He pled guilty on March 31, 2022.
Beginning on an unknown date and continuing until on or about July 7, 2021, Khaoon knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to knowingly and intentionally distribute 500 grams or more of a mixture and substance containing methamphetamine, a Schedule II controlled substance. In total, Khaoon was involved in trafficking 43 pounds of methamphetamine and 80 grams of fentanyl.
This case was investigated by South Dakota Highway Patrol, Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Khaoon was immediately remanded to the custody of the U.S. Marshals Service.
Saratoga County Sex Offender Sentenced to 180 Months for Child Pornography ConvictionsRead the Press Release
ALBANY, NEW YORK – Zachary L. Duchesne, age 27, of Stillwater, New York, was sentenced today to 180 months in prison for transporting and possessing child pornography.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In previously pleading guilty, Duchesne admitted to using a Dropbox account to store, possess and view images and videos depicting the sexual abuse of children, between December 26, 2017 and June 23, 2019. He admitted to periodically transferring child pornography videos into his Dropbox account, and to using the stored child pornography as a form of “currency” to trade with other people.
Duchesne has been in custody since his arrest on July 15, 2020, and has a prior state conviction relating to the possession of child pornography.
United States District Judge Mae A. D’Agostino also imposed a 15-term of post-imprisonment supervised release, and ordered Duchesne to pay $36,000 in restitution to victims whose abuse was depicted in the images that he possessed. Duchesne will also have to register as a sex offender upon his release from prison.
This case was investigated by HSI, with assistance from the Stillwater Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Sand Springs Man Pleads Guilty to Strangling a Former GirlfriendRead the Press Release
A Sand Springs man pleaded guilty Friday in federal court to strangling a former dating partner in 2020, announced U.S. Attorney Clint Johnson.
Matthew Wayne Martin, 41, pleaded guilty to assault of an intimate/dating partner by strangling and attempting to strangle in Indian Country.
Martin admitted in Court that he held down the victim by her neck and strangled her during an argument on April 8, 2020. Injuries on the victim’s arms, chest, and neck were seen by officers with the Tulsa Police Department the next day, when her father reported the abuse. Martin will be sentenced at a date determined by the Court. A federal judge will consider the U.S. Sentencing Guidelines and other statutory factors when determining an appropriate sentence.
On April 18, 2022, Martin was also convicted in Tulsa County District Court in an unrelated domestic violence case. He was convicted of assault and battery by means likely to produce death; kidnapping; domestic assault and battery with a dangerous weapon; and threatening an act of violence.
The FBI and Tulsa Police Department conducted the federal investigation. Assistant U.S. Attorney George Jiang is prosecuting the case.
Salt Lake City Man Charged in $1.8 Million CARES Act Loan Fraud SchemeRead the Press Release
SALT LAKE CITY- Giuseppe Mirenda, 27, of Salt Lake City, was charged by a federal grand jury in the District of Utah with fraudulently obtaining more than $1.8 million in Economic Injury Disaster Loans (“EIDL”) authorized by Congress under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act").
As part of the CARES Act, Congress authorized the U.S. Small Business Association ("SBA") to provide EIDL loans of up to $2 million to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. Under the terms of the EIDL program, proceeds of the loans could only be used as working capital for the businesses to alleviate economic injury caused by the COVID-19 pandemic.
According to allegations contained in the federal indictment, Giuseppe Mirenda is the partial owner of five Utah restaurants known generally as “Sicilia Mia,” in addition to being a partial owner of a business known as Sicilia Restaurant Management. According to the indictment, Mirenda submitted six fraudulent EIDL loan applications to the SBA between March 30, 2020, and June 24, 2020, and obtained $1,889,400 dollars in EIDL loan proceeds. The first four loan applications required that Mirenda list all owners of the applicant businesses and whether they were U.S. citizens. The second two loan applications required Mirenda to list all persons who owned 20% or more of the applicant business and whether they were U.S. citizens. In these 2020 EIDL loan applications, Mirenda falsely represented that he was the 100% owner of each of the applicant businesses knowing that two of his family members, who lived in the U.S. without legal immigration status, each owned at least 33% of each of the applicant businesses. By omitting these business partners from the applications, Mirenda avoided having to disclose that these family members were living in the U.S. illegally. Under the terms of the EIDL loan program, the fact that his business partners were living in the U.S. illegally would have disqualified each of the businesses from receiving EIDL proceeds.
The indictment further alleges, that in addition to fraudulently obtaining the EIDL loans, Mirenda used the proceeds from these loans for approximately $1.2 million in unlawful purposes, including the purchase of a $610,204.85 home in West Jordan; a $518,346.46 house in Las Vegas; a Jaguar F-Pace SUV purchased for $16,058; a BMW-M3 luxury car purchased for $26,723; and $39,000 in cryptocurrency purchased from Robinhood and Coinbase.
An initial appearance is scheduled for this matter on August 23, 2022, in U.S. District Court in Salt Lake City.
This case is being prosecuted by Assistant United States Attorney Todd Bouton from the United States Attorney’s Office for the District of Utah. This case was investigated by the SBA-Office of Inspector General (“OIG”) and the FBI’s Salt Lake City Field Office.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An Indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rosebud Woman Indicted for Child AbuseRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
ShawnDae Lynn White Bird, age 33, was indicted on July 11, 2022. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 20, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges between September 7, 2021, and October 29, 2021, in Mission, White Bird did abuse, expose, torture, torment, and cruelly punish a child who had not attained the age of seven.
The charge is merely an accusation and White Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
White Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Robert and Todd Morgan Sentenced for Financial FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Morgan, 65, of Rochester, NY, who was convicted of conspiracy to commit wire fraud, was sentenced to time served and fined $2,000 by Chief U.S. District Judge Elizabeth A. Wolford. As part of his plea agreement, Robert Morgan agreed to pay $16.27 million dollars, which the Government alleged was the proceeds of other financial fraud, to settle the civil forfeiture case brought against him.
In addition, Todd Morgan, 33, of Pittsford, NY, who was convicted of bank larceny, was sentenced to time serve and fined $500.
Assistant U.S. Attorney Evan K. Glaberson, who handled the case, stated that Robert Morgan was the manager of Morgan Ellison Heights LLC, which was the majority owner of Ellison Heights Apartments LLC. His son, Todd Morgan, worked as Project Manager for his father’s real estate management company Morgan Management.
In September 2016, Robert and Todd Morgan, and others, caused ESL Federal Credit Union to issue a construction loan based on inaccurate information regarding the construction contract price. The defendants were aware of documents reflecting inaccurate information but submitted the information to ESL to obtain a larger amount of the construction loan than what would have otherwise been supported by the actual figures. The loan was used to construct Ellison Heights Apartments, a multi-family residential complex in Penfield, NY.
The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
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Robbinsdale Felon Indicted for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Robbinsdale man for illegally possessing a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, Tavaris Michael Dixon, 32, is a member of the Tre Tre Crips, a Minneapolis gang that engages in a variety of criminal activities such as murder, assaults, robberies, drive-by shootings, carjackings, and other firearm offenses. On June 22, 2022, law enforcement encountered Dixon in possession of a 9mm Glock semiautomatic pistol, equipped with a laser attachment. Because Dixon has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Dixon is charged with one count of possessing a firearm as a felon. Magistrate Judge Tony N. Leung has ordered Dixon to remain in detention pending further court proceedings.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Edina Police Department.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Repeat Felon Sentenced to 5 Years in Federal Prison for Illegal Possession of a Firearm Used to Fire Shots in a Densely Populated NeighborhoodRead the Press Release
INDIANAPOLIS – Dariel Hill, 57, of Indianapolis, was sentenced to five years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on October 3, 2020, an officer with the Indianapolis Metropolitan Police Department (IMPD) was flagged down by a witness near the area of East Michigan Street and North Sherman Drive in Indianapolis. The witness told the officer that there was a male, later identified as Hill, running down East Michigan Street firing gunshots at vehicles.
The officer investigated and located Hill walking along East Michigan Street holding a black handgun. The officer exited his patrol car and ordered Hill to drop the handgun. Hill complied by throwing the gun in some nearby bushes. Once Hill was detained, the officer located a black .40 caliber Glock handgun in the bushes where Hill had tossed it.
The Glock was stolen. Upon further investigation, additional responding IMPD officers found several spent .40 caliber shell casings in the vicinity. The casings were located over a five-block, densely populated residential area. The casings were later determined to come from shots fired by Hill’s gun. Following these events, Hill was placed under arrest. Hill has twenty-four prior felony convictions, dating back to 1983. As a result of his criminal record, Hill knew he was prohibited from legally possessing a firearm.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division; and Indianapolis Metropolitan Police Department Chief Randal Taylor made the announcement.
ATF and IMPD investigated the case. The sentence was imposed by U.S. District Judge Sarah Evans Barker following the defendant’s guilty plea. As part of the sentence, Judge Barker ordered that Hill be supervised by the U.S. Probation Office for three years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson McGrath who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Readout of Reproductive Rights Task Force Meeting with Offices of State Attorneys GeneralRead the Press Release
This afternoon, Associate Attorney General Vanita Gupta and members of the Reproductive Rights Task Force met with senior staff from offices of state attorneys general to discuss the Task Force and the work state attorneys general are doing in their communities to respond to the Dobbs decision. The Associate and Task Force members updated participants on the Task Force’s work. The state attorneys general’s offices provided information about developments in their states, including what they are seeing and hearing from women and providers. This information will help inform the Task Force’s work going forward.
The Task Force will continue meeting with stakeholders and coordinating with government partners in the coming weeks.
Readout of Deputy Attorney General Lisa O. Monaco’s Trip to ColoradoRead the Press Release
Deputy Attorney General (Deputy AG) Lisa O. Monaco traveled to Colorado this week to highlight the Justice Department’s mission to protect and defend the rule of law.
On Wednesday, the Deputy AG was in Aspen, Colorado, to speak at the Aspen Security Forum. Alongside Treasury Deputy Secretary Walley Adeyemo, she discussed the wide-ranging response by the Justice and Treasury Departments as part of the U.S. government’s ongoing efforts to impose consequences on the Russian regime for its unprovoked aggression in Ukraine.
In particular, the Deputy AG highlighted the success of the Justice Department’s Task Force KleptoCapture, and its work with partners across the U.S. government and around the world to enforce the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed on Russia. She also described the department’s resolve to expose the corruption that has benefited the Russian regime, saying:
“It is important, I think, to expose the corruption; to do everything we can to go after these ill-gotten gains — whether they’re in bank accounts here, whether they’re in the form of planes or yachts, you name it — and to expose this corruption to say that there’s no place that you can hide these ill-gotten gains — we’ll go to Fiji if we have to, to get [them] back.”
A video recording of the discussion, titled “Freezing, Seizing, and More: Behind the Sanctions on Russia,” is available here.
On Thursday, the Deputy AG was in Denver to visit the U.S. Attorney’s Office for the District of Colorado. There she met with U.S. Attorney Cole Finegan and his leadership team, and received a series of briefings on cases from across the district. She also had an opportunity to hear from and talk with the men and women of the U.S Attorney’s Office during an all-hands meeting. Finally, the Deputy AG convened a roundtable with state, local, federal and Tribal law enforcement leaders to discuss public safety issues — including violent crime and the ongoing threat posed by fentanyl. Deputy AG Monaco thanked the assembled leaders for their partnership.
Deputy AG Monaco and Treasury Deputy Secretary Adeyemo at the Aspen Security Forum
Deputy AG Monaco meets with US Attorney Finegan, state, local, federal and Tribal law enforcement partners in DenverPort Arthur Man Indicted for Glock Switch ViolationsRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been arrested and charged in connection with federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Frankie Malik Cunningham, 23, was named in a three-count indictment in the Eastern District of Texas on July 6, 2022, charging him with receipt of a firearm while under indictment, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. Cunningham was arrested on July 11, 2022 and appeared in federal court before U.S. Magistrate Judge Zack Hawthorn on July 20, 2022, and was ordered to be detained until trial.
According to information presented in court, on May 17, 2022, law enforcement officers arrived at a Port Arthur residence where Cunningham was located to serve an outstanding felony warrant. They received consent to search from the owner of the residence and located Cunningham in a bedroom. In the bedroom with Cunningham, they also located two Glock pistols, a rifle with a drum magazine, a pound of suspected marijuana, and several Hydrocodone pills. One of the pistols was outfitted with a “Glock Switch.” A Glock Switch is a device used to convert a standard, legal handgun into a fully automatic machine gun.
At the time, Cunningham was under felony indictment for possession of a controlled substance. Federal law prohibits the possession of a firearm or ammunition while under felony indictment.
If convicted, Cunningham faces up to 15 years in federal prison.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Port Arthur Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service and the Jefferson County Sheriff’s Office. This case is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman with assistance from the Jefferson County District’s Attorney’s Office.
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Plainview Man Sentenced to 20 Years for Sharing Child Pornography on KikRead the Press Release
A man who discussed child sex abuse online was sentenced today to 20 years in federal prison for distributing sexually explicit images of minors, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Jacob Corey Penton, 30, was indicted in January. He pleaded guilty in March to receipt and distribution of child pornography and was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
“Through this sentencing, we have removed another threat from our community, sharing a message with our law enforcement partners that we are committed to aggressively pursuing anyone who seeks to exploit the innocence of our children," said Christopher Miller, acting Special Agent in Charge of Homeland Security Investigations’ Dallas Field Office. "We will continue to devote our law enforcement resources to investigate and bring to justice those who victimize children through the heinous crimes and trauma associated with the production and distribution of child sexual abuse materials.”
According to plea papers, the investigation began when law enforcement received a tip stating that Mr. Penton had discussed his sexual attraction to children on an encrypted chat app. In messages, he stated that he had sexually assaulted a minor.
Agents analyzed Mr. Penton’s Kik account and found 15 pornographic images of children as young as four being sexually abused. In plea papers, he admitted he shared some of the videos with other Kik users shortly after he received them.
Homeland Security Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Stephen Rancourt prosecuted the case.
Pasco County Meth Dealer Sentenced to over 12 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Adam Fleming (36, Zephyrhills) to 12 years and 7 months in federal prison for possession with the intent to distribute methamphetamine. Fleming had pleaded guilty on April 27, 2022.
According to court documents, on June 14, 2020, the Dade City Police Department seized 340 grams of methamphetamine from Fleming following a traffic stop. On April 1, 2021, the Zephyrhills Police Department seized over 500 grams of methamphetamine from Fleming following another traffic stop.
This case was investigated by the Federal Bureau of Investigation, the Dade City Police Department, and the Zephyrhills Police Department. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Omaha Man Sentenced for Possession of Child PornographyRead the Press Release
Acting United States Attorney Steven A. Russell announced that Adam J. Bindel was sentenced today in federal court in Omaha for possession of child pornography. The Honorable Robert F. Rossiter sentenced Bindel to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Bindel will serve 5 years of supervised release.
In March 2021, the Nebraska State Patrol began investigating a Cyber Tipline Report from Kik stating that a user had uploaded images and videos of child pornography. On March 30, 2021, investigators contacted Bindel at his residence in Omaha, Nebraska. Bindel admitted to viewing and sharing child pornography online and consented to a search of his phone. Investigators observed an image of child pornography on Bindel’s phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Newburgh Man Sentenced to 48 Months for Alien SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Marlon Lainez-Velasquez, age 48, of Newburgh, New York, was sentenced yesterday to 48 months in prison for alien smuggling.
The announcement was made by United States Attorney Carla B. Freedman and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.
In pleading guilty, Lainez-Velasquez admitted that in May 2021, he traveled to the border in Burke, New York, where he assisted in smuggling five Vietnamese nationals from Canada and into the United States for profit.
United States District Judge Mae A. D’Agostino ordered that Lainez-Velasquez serve his federal term of imprisonment after he finishes serving an unrelated 6-year state term of imprisonment for sex abuse.
This case was investigated by the United States Border Patrol, Burke Station, and prosecuted by Assistant U.S. Attorney Jeffrey C. Stitt.
New Orleans Man Sentenced for Shooting at Woman and ChildRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that STERLING ROBINSON, also known as “Scooter,” age 31, a resident of New Orleans , was sentenced to twenty years imprisonment on Thursday, July 21, 2022. Ten years of the sentence was for possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), to be run consecutive to another ten years imprisonment for obstruction of justice in violation of Title 18, United States Code, Section 1512(c)(2). ROBINSON is also required to pay a total of $200 in mandatory special assessment fees.
ROBINSON was convicted after a federal jury trial. Testimony and evidence at trial proved that he possessed a firearm and ammunition on March 13, 2020 when he fired five rounds at a vehicle his girlfriend was driving with her young son in the backseat. He then obstructed justice on recorded phone calls from jail where he tried to influence the victim, his girlfriend, to change her story and tell authorities someone else shot at her.
According to court records, ROBINSON was previously convicted of a federal felony charge for being in possession of a firearm in furtherance of a drug trafficking crime. At the time of the current offense, ROBINSON was still on supervised release with U.S. Probation after having served a five-year sentence for that previous conviction.
ROBINSON faced up to ten years in prison, up to three years of supervised release, a maximum fine of up to $250,000, and a mandatory special assessment fee of $100 for being a felon in possession of a firearm. For obstruction of justice, he faced up to twenty years in prison, up to three years of supervised release, a maximum fine of up to $250,000, and a mandatory special assessment fee of $100.
The Honorable U.S. District Judge Eldon E. Fallon presided over the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter. Assistant United States Attorneys Maurice E. Landrieu, Jr. and Charles D. Strauss prosecuted the case.
New Haven Teen Charged with Gunpoint CarjackingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TIHAJA ORTIZ-TUCKER, 18, of New Haven, was arrested today on a federal criminal complaint charging him with carjacking.
As alleged in court documents and statements made in court, the Federal Bureau of Investigation’s Safe Streets Violent Crime Task Force and several police departments have been investigating multiple violent carjackings that have occurred recently in Connecticut. One carjacking involved a victim who had posted her vehicle for sale on Facebook Marketplace. On July 7, 2022, Ortiz-Tucker and others met the victim on Thompson Street in Bridgeport and test drove her car. The victim reported that, after the test drive, Ortiz-Tucker reached into a black fanny pack-style pouch slung over his shoulder and pulled out a 9mm handgun and pointed it at her. Ortiz-Tucker instructed the victim to get out of the car or he was going to shoot her. The victim complied, and Ortiz drove away in the victim’s vehicle.
It is further alleged that Ortiz-Tucker is suspected of being involved in other gunpoint carjackings, including two carjackings of Uber drivers on May 2 and May 4, 2022. In both instances, an Uber driver picked up the carjacker in New Haven and drove to Wallingford where their cars were taken from them. Both cars were later recovered in the same area of Hamden.
Ortiz-Tucker appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and was ordered detained pending a detention hearing that is scheduled for July 26.
The complaint charges Ortiz-Tucker with conspiracy, which carries a maximum term of imprisonment of five years, and with possessing and brandishing a firearm in connection with a crime of violence, namely carjacking, which carries a mandatory consecutive sentence of at least seven years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Safe Streets Violent Crime Task Force, the Connecticut State Police and the Wallingford, New Haven, Hamden, Waterbury, and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Tara E. Levens.
Movie Producer Sentenced to over 21 Years for Role in Film Financing SchemeRead the Press Release
Miami, Florida - Yesterday, a federal district judge in South Florida sentenced a 44-year-old former actor and movie producer from Bartlesville, Oklahoma, to 262 months in prison for his role in a financing scheme that defrauded investors out of more than $60 million. The defendant, Jason Van Eman, also was ordered to pay certain victims over $9 million in restitution.
The sentence comes after a federal jury found Van Eman guilty of conspiracy, wire fraud, and money laundering in May.
According to the evidence, Van Eman held himself out as a film producer and financier, offering to fund independent motion pictures, Broadway shows, music festivals, and other productions. Van Eman promised the victims (producers and others seeking financing), that his partner (a co-conspirator named Benjamin McConley) would match any cash that the victims contributed to their projects. Then, with the combined starting capital (which made the projects more attractive to investors), McConley would apply for and secure financing from financial institutions.
Based on these lies, victims sent over $60 million to accounts controlled by the fraudsters. Contrary to what Van Eman promised victims, his partner never matched their cash contributions or applied for financing. Instead, Van Eman and his co-conspirators stole the victims' money by transferring it to their personal and corporate bank accounts, often within days of deposit. To make the scam more believable, Van Eman and McConley recruited Benjamin Rafael, a bank employee, whose role was to assure victims that their cash contributions had been matched and that their money was secure - neither of which was true.
Van Eman, McConley, and Rafael used the stolen money to purchase luxury automobiles, personal watercraft, real estate, jewelry, home furnishings, designer clothes, hotel accommodations, and private and commercial air travel. Van Eman used some of the stolen cash to fund movies in which he was cast as an actor.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and John J. Bernardo, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence imposed by U.S. District Judge Raag Singhal.
FBI Miami Field Division investigated this case. Assistant U.S. Attorneys Christopher Browne and Yisel Valdes prosecuted it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
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 19-cr-20447.
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Mount Vernon Man Charged with Sex Trafficking of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging RAI THOMAS with sex trafficking of a minor and use of interstate facilities to promote sex trafficking and prostitution. THOMAS was arrested this morning and will be presented before United States Magistrate Judge Andrew E. Krause.
U.S. Attorney Damian Williams said: “As alleged, Rai Thomas exploited a teenage girl who lived at a residential facility for vulnerable and at-risk youth, and caused her to engage in commercial sexual activity at hotels throughout the Bronx and Brooklyn for his own profit. Thomas’s alleged conduct is particularly insidious given his minor victim’s vulnerable status and living situation. This Office, along with our law enforcement partners at the FBI, will continue to identify, investigate, and prosecute those engaged in the sex trafficking of minors.”
FBI Assistant Director Michael J. Driscoll said: "Human traffickers exploit at-risk teenagers, using their vulnerabilities against them. Make no mistake - these criminals are forcing children to have sex so they can make money. We are doing everything we can to help the victim in this case, but she may not be the only one. Please reach out to us at 1-800-CALL-FBI to report any information that could help ensure Thomas faces justice for his alleged crimes."
As alleged in the Complaint:[1]
In January and February 2022, THOMAS recruited Minor Victim-1 to engage in commercial sexual activity and caused her to do so on multiple occasions in hotels within the Bronx and Brooklyn, New York. THOMAS facilitated and benefited from the scheme in numerous ways, including by recruiting and enticing Minor Victim-1 to engage in commercial sex; coordinating the transportation of Minor Victim-1 to the hotels and reserving the hotel rooms in which she engaged in commercial sex; facilitating the advertisement of Minor Victim-1 on various websites to customers for commercial sex; and profiting from the sex trafficking scheme.
There may be other victims of this alleged conduct. If you have information to report, contact the Federal Bureau of Investigation through its toll-free Tip Line at 1-800-CALL-FBI.
* * *
THOMAS, 27 of Mount Vernon, New York, is charged with (1) sex trafficking of a minor, which carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison, and (2) use of interstate facilities to promote unlawful activity, which carries a maximum sentence of five years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s Hudson Valley Safe Streets Task Force, the Town of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and the New York City Police Department. Mr. Williams noted that the investigation is ongoing.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Qais Ghafary is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Montana Man Indicted on Multiple Wildlife ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Hardin, Montana, man has been indicted by a federal grand jury for the Bald and Golden Eagle Protection Act, Lacey Act, and Migratory Bird Treaty Act violations.
Harvey Hugs, age 59, was indicted on May 19, 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollman on July 18, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that at various times between August 20, 2020, and March 3, 2021, Hugs knowingly transported, sold, received, and acquired bald and golden eagles, when Hugs should have known the protected birds were taken, possessed, transported, and sold in violation of, and in a manner unlawful under the laws and regulations of the United States. Hugs further and with wanton disregard for the consequences of his actions, possessed, sold, bartered, and offered to sell and barter a bald and golden eagles and parts thereof.
The charges are merely accusations and Hugs is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Hugs was released on bond pending trial. A trial date of September 20, 2022, has been set.
Mission Man Indicted for Arson and BurglaryRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Arson and Third Degree Burglary.
Tommy Vargas, a/k/a Tommy Lee Spotted Eagle, age 32, was indicted on July 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 21, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 27, 2021, in Mission, Vargas unlawfully entered the Sinte Gleska Maintenance Building and stole multiple pieces of property. As he was leaving the premises, Vargas willfully and maliciously set fire to and burned the building.
The charges are merely accusations and Vargas is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Vargas was remanded to the custody of the U.S. Marshals Service pending trial. A trial date is set for September 13, 2022.
Mexican nationals charged with illegally transporting aliens resulting in deathRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Jose Luis Aguilera-Guzman and Jesus David Nuñez-Monreal have been charged with illegally transporting a group of undocumented non-citizens, three of whom died as they crossed into the United States. Aguilera-Guzman, 25, and Nuñez-Monreal, both of Mexico, made an initial appearance in federal court today where they face charges of conspiracy and bringing in and harboring aliens resulting in death. Aguilera-Guzman and Nuñez-Monreal will remain in custody pending a preliminary and detention hearing scheduled for July 27.
According to a criminal complaint, on July 19, Aguilera-Guzman and Nuñez-Monreal allegedly led a group from Mexico into Luna County, New Mexico. The group had run out of water and were lost when some members of the group became unable to continue traveling northward. Responding to a distress call, Border Patrol Agents, Luna County Sheriff Deputies and a New Mexico National Guard helicopter searched for the group and found seven members of the party. Agents learned that three people had been left behind, and those members were later found dead.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Aguilera-Guzman and Nuñez-Monreal face up to life in prison or death.
Homeland Security Investigations (HSI) investigated this case with assistance from U.S. Border Patrol, U.S. Customs and Border Protection, the Luna County Sheriff’s Office and the New Mexico National Guard. Assistant United States Attorney Mark Standridge is prosecuting the case.
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Mexican national admits to transporting 85 aliens in hot trailerRead the Press Release
LAREDO, Texas – A 31-year-old undocumented alien himself has pleaded guilty to conspiracy to transport undocumented aliens for financial gain, announced U.S. Attorney Jennifer B. Lowery.
Jose Luis Vega-Arzate, Nuevo Laredo, Temaulipas, Mexico, drove into the Border Patrol (BP) checkpoint north of Laredo on May 11. At initial inspection, he displayed nervous behavior and had trouble shifting gears.
After a K-9 also alerted to the trailer, authorities broke the seal, opened it and discovered 85 individuals locked inside the vehicle. They were later determined to be illegally present in the United States.
At that time, Vega-Arzate told authorities that he had agreed to pay $8,000 to have himself smuggled from Mexico into the country and transported to Austin. He volunteered to drive the tractor trailer through the Border Patrol (BP) checkpoint to receive a large reduction in his own transportation fee. He did not possess experience or a commercial driving license to drive a tractor trailer in Texas.
According to court documents, he was cautioned to avoid stopping on the way to San Antonio because the undocumented individuals could die due to lack of ventilation resulting from the trailer’s lack of movement.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Oct. 20. At that time, Vega-Arzate faces up to 20 years in federal prison and possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Homero Ramirez is prosecuting this case.
Mexican National Sentenced to 4 Years in Prison for Fentanyl and Heroin Trafficking; Porterville Co-conspirator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Maria Delgado, 31, of Culiacán, Mexico, was sentenced today to four years in prison for her participation in a conspiracy to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Delgado delivered 1,350 fentanyl pills to an undercover officer in exchange for $9,500. She also received 2.2 pounds of heroin in Los Angeles for distribution in Porterville.
Another member of the conspiracy, James Cox, 58, of Porterville, pleaded guilty today to participating in the drug conspiracy. According to court documents, Cox and another individual received over a pound of methamphetamine in two separate transactions from co-defendant Renato Aguilera, 30, of Porterville. Aguilera has pleaded guilty to participating in the drug conspiracy and was sentenced to seven years and three months in prison.
Cox is scheduled to be sentenced on Oct. 14, 2022, by U.S. District Judge Jennifer L. Thurston. Cox faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation, the Porterville Police Department, the Coalinga Police Department, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
This effort 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 www.justice.gov/OCDETF.
Metric Lab Services, Metric Management Services LLC, Spectrum Diagnostic Labs LLC, and Owners Agree to Pay $5.7 Million to Settle Allegations of False Claims for Unnecessary Genetic TestingRead the Press Release
Metric Lab Services LLC and Metric Management Services LLC (collectively, Metric) and Spectrum Diagnostic Labs LLC (Spectrum) and two of their owners and operators, Sherman Kennerson and Jeffrey Madison, have agreed to pay $5.7 million to resolve allegations that they caused the submission of false claims to Medicare by paying kickbacks in return for genetic testing samples, the Department of Justice announced today.
Metric and Spectrum were clinical laboratories in Mississippi and Texas, which Kennerson and Madison co-owned and operated along with other individuals. The United States alleged that Metric, Spectrum, Kennerson and Madison participated in a genetic testing fraud scheme with various marketers. These marketers solicited genetic testing samples from Medicare beneficiaries. The marketers arranged to have a physician fraudulently attest that the genetic testing was medically necessary, and Metric and Spectrum would process the tests, receive reimbursement from Medicare and pay a portion of that reimbursement to the marketers.
In an attempt to conceal the nature of the kickback arrangement, Metric and Spectrum entered into sham agreements with marketers to provide various consulting, marketing and other services at an hourly rate. In reality, however, Metric and Spectrum paid the marketers a percentage of revenue, including Medicare reimbursement, in return for the samples. The marketers then generated sham invoices for hourly services that matched the agreed-upon kickback amount.
“Laboratories that attempt to profit from unlawful kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”
“Rather than compete fairly for business, these labs engaged in a brazen kickback scheme to rake in millions of dollars of Medicare money,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “A patient’s needs must guide medical decisions, not who is paying the biggest kickback. Today’s settlement recoups millions of dollars for the Medicare program, and demonstrates this Office’s continuing resolve to protect the integrity of federal healthcare programs.”
“When health care providers engage in kickback schemes, the trust of both patients and taxpayers are at risk,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This case shows our commitment to investigating such allegations in order to protect the Medicare program’s ability to subsist and serve its mission.”
Kennerson and Madison have previously each pled guilty to one count of conspiracy to defraud the United States in connection with this scheme and are awaiting sentencing. United States v. Kennerson, No. 20-cr-00448 (BRM) and United States v. Madison, No. 20-cr-00449 (BRM) (D.N.J.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
The matter was handled by Trial Attorney J. Jennifer Koh and Assistant U.S. Attorney Andrew A. Caffrey III for the District of New Jersey.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability except to the extent admitted by Kennerson and Madison in their criminal pleas.
Mescalero woman charged with assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Lucinda Ann “Pug” Yuzos was charged by criminal complaint with assault of a spouse or intimate partner resulting in substantial bodily injury in Indian Country. Yuzos, 48, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, made an initial appearance in federal court today and will remain in custody pending a preliminary and detention hearing scheduled for July 27, 2022.
According to the complaint, on May 31, Yuzos allegedly assaulted her intimate partner at a residence on the Mescalero Apace Reservation. After confronting the victim, who is also an enrolled member of the Mescalero Apache Tribe, Yuzos allegedly struck him across the head with a blunt object. The victim sustained a gash across his temple and forehead and was flown by medivac to University Hospital in El Paso, Texas, for emergency treatment.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Yuzos faces up to five years in prison.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Joni Autrey Stahl is prosecuting the case.
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Members of Bronx Street Gang and Their Hitman Charged with Racketeering, Firearms Offenses, and MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Frank A. Tarentino III, Special Agent-in-Charge of the New York Office of the Drug Enforcement Administration (“DEA”), today announced additional charges against six alleged members of a street gang known as the “Young Bronx Money Getters” or “YBMG” in the Bronx, New York. SHPENDIM HAXHAJ, a/k/a “White Mike,” YELTSIN BELTRAN, a/k/a “Yells,” BORIS BELTRAN, a/k/a “Bebe,” JEREMY CEDENO, a/k/a “Jerm,” FRANCISCO ORTEGA, a/k/a “Fresh,” and IVIS PERDOMO, a/k/a “Light,” all of whom are members of YBMG, were charged in a Superseding Indictment with racketeering conspiracy, drug trafficking, and firearms offenses. HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, CEDENO, and PERDOMO were also charged with engaging in violent crimes in aid of racketeering. LUCAS CHAJECKI, a/k/a ‘Luc Luc,” whom members of YBMG allegedly hired to commit a murder, HAXHAJ, and BORIS BELTRAN, are additionally charged with the August 16, 2019 murder of Isael Lagares in the Bronx. The case is assigned to U.S. District Judge Katherine Polk Failla.
SHPENDIM HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, JEREMY CEDENO, FRANCISCO ORTEGA, and IVIS PERDOMO were already in custody in connection with charges contained in a previous indictment related to this prosecution. LUCAS CHAJECKI is in state custody in connection with his alleged murder of Isael Lagares and will be transferred into federal custody.
U.S. Attorney Damian Williams said: “As alleged in the Superseding Indictment, YBMG was an extremely violent street gang that brutalized the Bronx with guns and drugs for at least 15 years. Among YBMG’s many victims was Isael Lagares, who was allegedly gunned down at the age of 27 by Lucas Chajecki at the direction of Shpendim Haxhaj and Boris Beltran. With this superseding indictment, we take another step towards holding YBMG’s members and leaders accountable for their alleged crimes.”
Special Agent-in-Charge of the New York Office of DEA Frank A. Tarentino III said: “The DEA’s mission is to keep people safe and healthy. We accomplish this by holding accountable those who cause the most harm in our communities. Just like defendants in this investigation who are charged with some of the most serious violent crimes imaginable. I applaud the tenacity of the investigative team in bringing these violent offenders to justice and holding them accountable.”
According to the allegations in the Superseding Indictment filed today in federal court:[1]
From at least in or about 2006 to in or about 2021, YBMG was a criminal enterprise centered in the Bronx, New York. In order to make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of YBMG engaged in, among other things, narcotics trafficking and violence, including murder. To that end, YBMG members sold heroin, cocaine, and marijuana, promoted their gang affiliation on social media, possessed firearms, and engaged in shootings as part of their gang membership and narcotics trafficking.
As alleged in the Superseding Indictment, on or about August 16, 2019, SHPENDIM HAXHAJ and BORIS BELTRAN hired LUCAS CHAJECKI to murder a rival gang member, and CHAJECKI then shot and killed Isael Lagares in the Bronx, New York.
YBMG members also participated in a conspiracy to distribute narcotics in New York and elsewhere. SHPENDIM HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, JEREMY CEDENO, FRANCISCO ORTEGA, and IVIS PERDOMO participated in a conspiracy with other individuals to distribute more than one kilogram of heroin, five kilograms of cocaine, and marijuana from at least in or about 2006 up to and including 2021.
Between in or about 2006 and in or about 2021, SHPENDIM HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, JEREMY CEDENO, FRANCISCO ORTEGA, and IVIS PERDOMO also possessed, used, brandished, and discharged firearms in furtherance of the narcotics conspiracy in which they all participated. SHPENDIM HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, JEREMY CEDENO, and IVIS PERDOMO are further charged with engaging in violent crimes in aid of racketeering, and using, brandishing, and discharging firearms in furtherance of these crimes of violence.
* * *
A chart containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding work of the FBI, DEA, and NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division. Assistant United States Attorneys Mathew Andrews, Frank Balsamello, Christopher Brumwell, and Benjamin Gianforti are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Charges
Maximum Penalties
SHPENDIM HAXHAJ, a/k/a “White Mike”
30
Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy; Murder in Aid of Racketeering; Murder for Hire; Murder for Hire Conspiracy; Use of a Firearm Resulting in Death; Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Crime of Violence
Mandatory life in prison
YELTSIN BELTRAN, a/k/a “Yells”
30
Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy; Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Crime of Violence
Maximum of life in prison; mandatory minimum 30 years in prison (20 years to run consecutive to any other sentence)
BORIS BELTRAN, a/k/a “Bebe”
24
Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy; Murder in Aid of Racketeering; Murder for Hire; Murder for Hire Conspiracy; Use of a Firearm Resulting in Death; Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Crime of Violence
Mandatory life in prison
JEREMY CEDENO, a/k/a “Jerm”
36
Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy; Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Crime of Violence
Maximum of life in prison; mandatory minimum 30 years in prison (20 years to run consecutive to any other sentence)
IVIS PERDOMO, a/k/a “Lite”
40
Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy; Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Crime of Violence
Maximum of life in prison; mandatory minimum 30 years in prison (20 years to run consecutive to any other sentence)
FRANCISCO ORTEGA, a/k/a “Fresh”
33
Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy
Maximum of life in prison; mandatory minimum 20 years in prison (10 years to run consecutive to any other sentence)
LUCAS CHAJECKI, a/k/a “Luc Luc”
26
Murder in Aid of Racketeering; Murder for Hire; Murder for Hire Conspiracy; Use of a Firearm Resulting in Death
Mandatory life in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Medical Device Manufacturer Biotronik Inc. Agrees to Pay $12.95 Million to Settle Allegations of Improper Payments to PhysiciansRead the Press Release
Biotronik Inc. (Biotronik), a medical device manufacturer based in Oregon, has agreed to pay $12.95 million to resolve allegations that it violated the False Claims Act by causing the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce their use of Biotronik’s implantable cardiac devices, such as pacemakers and defibrillators.
“Paying kickbacks to doctors to influence their selection of medical devices undermines the integrity of federal healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was selected based on quality of care considerations and not on improper payments from manufacturers.”
“Kickbacks to doctors are illegal because they impose hidden costs on the health care system and they taint the doctor-patient relationship,” said Acting U.S. Attorney Stephanie S. Christensen for the Central District of California. “The resolution to this matter concludes a lengthy investigation that demonstrates our commitment to take strong action when patient care takes a backseat to generating profits.”
"Valuable taxpayer dollars that fund Medicare and Medicaid are meant to support the delivery of health care services most suitable for beneficiaries. The payment of kickbacks to medical providers to impel their use of certain devices can improperly divert those dollars and undermine the quality of care being provided to patients," said Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG remains dedicated to working with fellow law enforcement agencies to safeguard the integrity of federal health care programs and the services they cover."
The Federal Anti-Kickback Statute prohibits offering or paying anything of value to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.
The settlement announced today resolves allegations that Biotronik engaged in a kickback scheme to pay certain favored physicians to induce and reward their use of Biotronik’s pacemakers, defibrillators and other cardiac devices. In particular, Biotronik allegedly abused a new employee training program by paying physicians for an excessive number of trainings and, in some cases, for training events that either never occurred or were of little or no value to trainees. Biotronik allegedly made these payments despite concerns raised by its own compliance department, which warned that salespeople had too much influence in selecting physicians to conduct new employee training and that the training payments were being over-utilized. The settlement also resolves allegations that Biotronik violated the Anti-Kickback Statute when it paid for physicians’ holiday parties, winery tours, lavish meals with no legitimate business purpose and international business class airfare and honoraria in exchange for making brief appearances at international conferences.
Medicaid is funded jointly by the states and the federal government. The States of Arizona, California, Illinois, Missouri and Nevada paid for a portion of the Medicaid claims at issue and will receive a total of approximately $933,400 from the settlement with Biotronik.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jeffrey Bell and Andrew Schmid, both of whom were previously employed as independent sales representatives for Biotronik. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Bell and Mr. Schmid will receive approximately $2.1 million as their share of the recovery in this case. The qui tam case is captioned United States ex rel. Bell, et al. v. Biotronik, Inc. et al., No. 2:18-cv-1895 (C.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Central District of California. HHS-OIG assisted in the investigation.
The matter was handled by Fraud Section Trial Attorneys Breanna Peterson and Jonathan Hoerner and Assistant U.S. Attorney Karen Paik for the Central District of California.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Man Charged with Multi-Million Dollar Medicare Fraud in Connection with False Claims for Durable Medical EquipmentRead 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 U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”) New York Regional Office announced today the arrest of MATTHEW WITKOWSKI on charges of conspiracy and health care fraud. As alleged in a Complaint unsealed today in federal court, and at a presentment held this morning before U.S. Magistrate Judge Jared M. Strauss of the United States District Court for the Southern District of Florida, WITKOWSKI, ran a company dedicated to illegally buying written orders for durable medical equipment (“DME”) such as leg, arm, and back braces, and then selling those written orders to DME supply companies, which in turn used those orders to file fraudulent Medicare claims. These fraudulent claims are estimated to have resulted in payments to WITKOWSKI’s coconspirators of at least $10 million. WITKOWSKI was arrested yesterday evening at the Ft. Lauderdale-Hollywood International Airport, after he flew in from Santo Domingo, Dominican Republic. Witkowski remains in custody, with a detention hearing scheduled for 10:00 a.m. on July 27, 2022, before the Magistrate Judge is Alicia O. Valle in Fort Lauderdale.
U.S. Attorney Damian Williams said: “Medicare is a valuable taxpayer-funded program designed to provide affordable health care to beneficiaries over 65 or with disabilities, not to lining the pockets of those who would enrich themselves through fraud. Here, the defendant is charged with illegally selling written orders for medical equipment used to bilk Medicare out of millions of dollars.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The alleged fraud scheme that the defendant engaged in was motivated by pure greed. HHS-OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.”
As alleged in the Complaint and at the detention hearing held this morning:[1]
From at least August 2019 through at least April 2021, WITKOWSKI and an unnamed co-conspirator (“CC-1”) engaged in a scheme to defraud Medicare and to violate the Anti-Kickback Statute, which prohibits the buying and selling of written orders for goods and services paid for by Medicare, including DME. WITKOWSKI illegally purchased fraudulent written orders for DME, and then sold those written orders to pharmacies and DME suppliers, including in New York City. Those pharmacies and DME suppliers then used those written orders as the basis for millions of dollars of fraudulent claims to Medicare. Many of these fraudulent written orders used names and personal health information of Medicare beneficiaries, without the beneficiaries’ authorization or prior knowledge. Many of these written orders also contained professional information of doctors and other health-care providers enrolled in the Medicare program, as well as the purported electronic signatures of these providers, which were falsified and created without the authorization or knowledge of these providers.
During the course of the scheme, WITKOWSKI and CC-1 took in more than $3.5 million from DME suppliers, who made these payments to True Prospects Marketing, Inc., a company controlled by Witkowski and CC-1. The Government estimates that the orders for DME illegally sold by True Prospects were used to bill Medicare for more than $10 million.
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WITKOWSKI, 36, of the Dominican Republic, is charged with one count of conspiracy to commit health care fraud and to violate the Anti-Kickback Statute, which carries a maximum prison sentence of five years; and one count of health care fraud, which carries a maximum prison sentence of 10 years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of HHS-OIG.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Raymond Lewis is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Lynnwood, Washington, man arrested for allegedly making interstate threats of racially motivated violenceRead the Press Release
Seattle – A 37-year-old Lynnwood, Washington man was arrested yesterday afternoon and is charged in U.S. District Court in Seattle with making interstate threats, announced U.S. Attorney Nick Brown. Joey David George will make his initial appearance on the criminal complaint today, Friday July 22nd at 2:00 PM. He is being held at the Federal Detention Center at SeaTac, Washington, pending further court hearings.
According to the criminal complaint, on July 19 and 20, 2022, George allegedly telephoned a grocery store in Buffalo, New York and threatened to shoot Black people in the store. In the second call George allegedly ranted about a “race war.” Law enforcement traced the phone number and identified George as the person who made the call.
“The Buffalo community is trying to heal from the horrific shooting at a Tops grocery store. I cannot imagine the type of fear such hate fueled threats engendered in those just trying to go about their daily lives, said U.S. Attorney Nick Brown. “We cannot tolerate this kind of hate in our community and will not sit by while people seek to terrorize others across our country.”
In addition to the calls to Buffalo, George is charged in connection with a May 2022, call to a restaurant in San Bruno, California. In that call George allegedly threatened to shoot Black and Hispanic patrons in the restaurant.
The criminal complaint describes other threatening calls George allegedly made over the last 12 months to businesses in Maryland, Connecticut, and Washington State where George allegedly used racial slurs and threats to shoot customers at the businesses because of his racial hatred.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with the assistance of multiple local police departments. The case is being prosecuted by Assistant United States Attorneys Thomas Woods and Rebecca Cohen in consultation with the Department of Justice Civil Rights Division.
george_complaint.pdfLittle Eagle Man Sentenced to Prison for Embezzlement from Standing Rock Tribal OrganizationRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Little Eagle, South Dakota, man convicted of embezzlement and theft from an Indian tribal organization was sentenced on July 18, 2022, by U.S. District Judge Charles B. Kornmann.
Donel Takes The Gun, age 55, was sentenced to eight months in federal prison, followed by three years of supervised release. He was also ordered to pay $15,935.93 in restitution to the Standing Rock Sioux Tribe and $100 to the Federal Crime Victims Fund.
Takes The Gun was indicted by a federal grand jury on July 7, 2021. He pled guilty on April 21, 2022.
According to court documents, between about October 2017 and March 2020, Takes The Gun embezzled, stole, and converted approximately $16,000 of monies, funds, and credits belonging to the Running Antelope District of the Standing Rock Sioux Tribe, an Indian Tribal Organization. Takes The Gun, an elected official of the Running Antelope District, used those monies on personal items, expenditures, and gambling.
This case was investigated by the FBI and U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Takes The Gun was remanded to the custody of the U.S. Marshals Service to begin serving his custody sentence.
This case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: the FBI; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Little Eagle Man Indicted for Assault and Firearm ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Discharge of a Firearm During a Crime of Violence.
Raul Tomas Mata, age 21, was indicted on July 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 21, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 29, 2022, in Little Eagle, Mata fired a gun towards several residences with intent to commit murder. A minor was struck and seriously injured by one of the bullets fired by Mata.
The charges are merely accusations and Mata is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services, Standing Rock Agency, the FBI, the Corson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Mata was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Leader of international drug trafficking organization and his trusted lieutenant plead guilty to federal chargesRead the Press Release
Seattle – A top leader of a violent international drug trafficking organization that distributed heroin, fentanyl, and methamphetamine in the Puget Sound region, pleaded guilty this week in U.S. District Court in Seattle. Luis Arturo Magana-Ramirez, 34, of Fife, Washington, faces a mandatory minimum ten years in prison and up to life in prison when he is sentenced by U.S. District Judge John C. Coughenour on November 1, 2022.
In his plea agreement, Magana-Ramirez admits he led a transnational drug trafficking organization. Law enforcement has linked the organization to the CJNG cartel in Mexico. Magana-Ramirez was responsible for bringing large amounts of heroin, methamphetamine, and fentanyl into western Washington. Magana-Ramirez also pursued those who owed drug debts to the organization. At various times on the wiretap, federal law enforcement heard Magana-Ramirez threatening to beat or murder those who owed the organization money. In at least one instance, law enforcement moved in to protect a target of Magana-Ramirez’ threats of violence.
When Magana-Ramirez was arrested on July 28, 2020, he possessed two firearms – one of them had been reported stolen and the other had an obliterated serial number. Magana-Ramirez could not legally possess firearms as he is a Mexican national who is illegally present in the U.S. Possession of firearms by an illegal alien is punishable by up to ten years in prison. In all, this drug ring was responsible for bringing more than 120 pounds of meth into the region as well as heroin, fentanyl pills and cocaine.
Prosecutors have agreed to recommend no more than 17 years in prison when Magana-Ramirez is sentenced in November.
Also this week, one of Magana-Ramirez trusted lieutenants also pleaded guilty. Jorge Mondragon, 26, of Kent, also faces a mandatory minimum ten years in prison due to the amount of heroin and methamphetamine he trafficked as part of the organization. He, too, illegally possessed firearms. Mondragon is prohibited from possessing firearms due to his two 2018 felony convictions in King County Superior Court for unlawfully possessing firearms.
According to the plea agreement, Mondragon was one of the conspirators involved in threatened violence over drug debts. During the investigation, Mondragon also threatened to leave one target needing a wheelchair and law enforcement had to intervene. On July 16, 2020, in Kent, Mondragon jumped from an embankment and ran from police. He attempted to hide a stolen firearm that he had in his possession. When investigators served a search warrant at Mondragon’s residence, they found another firearm and ammunition. At Mondragon’s storage locker they located additional ammunition.
Prosecutors have agreed to recommend no more than 11 years in prison for Mondragon when he is sentenced by Judge Coughenour on October 25, 2022. However, Judge Coughenour is not bound by either of the recommendations for these defendants, and can sentence the defendants up to the maximum of life in prison.
This effort 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 www.justice.gov/OCDETF
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Las Vegas Man Pleads Guilty to Unemployment Benefits Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas man pleaded guilty today to participating in a scheme to fraudulently obtain nearly $70,000 in unemployment benefits issued by the State of Massachusetts’s Employment Security Department (ESD).
Clyde Edward Austin, 64, pleaded guilty to one count of wire fraud. U.S. District Judge Mahan scheduled sentencing for October 21, 2022.
From April 2020 to June 2020, Austin fraudulently submitted ESD applications for at least 11 people —without those persons’ consent. As part of the scheme, Austin and another person agreed to use Austin’s two bank accounts in Nevada to receive the fraudulent unemployment benefits. In total, the ESD transferred approximately $68,579 in benefits for the fraudulent claims.
At sentencing, Austin faces a statutory maximum penalty of 20 years in prison, a term of supervised release, and a fine.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Karon Ransom for the U.S. Secret Service made the announcement.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Daniel R. Schiess is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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