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21 July 2022
Joint Statement by the United States and the United Kingdom on Data Access AgreementRead the Press Release
The United States and United Kingdom intend to bring into force the Agreement between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland on Access to Electronic Data for the Purpose of Countering Serious Crime (“Data Access Agreement”), which was signed in 2019, on Oct. 3, 2022. The entry into force of the Data Access Agreement will start a new era of co-operation between the United States and the United Kingdom, bringing forward a renewed commitment to tackling the threat of serious crime.
The Data Access Agreement will be the first agreement of its kind, allowing each country’s investigators to gain better access to vital data to combat serious crime in a way that is consistent with our shared values and mission of protecting our citizens and safeguarding our national security.
The Data Access Agreement will allow information and evidence that is held by service providers within each of our nations and relates to the prevention, detection, investigation or prosecution of serious crime to be accessed more quickly than ever before. This will help, for example, our law enforcement agencies gain more effective access to the evidence they need to bring offenders to justice, including terrorists and child abuse offenders, thereby preventing further victimization.
Our Agreement will maintain the strong oversight and protections that our citizens enjoy and does not compromise or erode the human rights and freedoms that our nations cherish and share. It protects our citizens by improving both nations’ ability to fight serious crime while maintaining the democratic and civil liberties standards that we stand for and promote around the world.
This Agreement is the latest demonstration of the strength of the bond between the United States and the United Kingdom, and our commitment to robust co-operation in the future.
Iowa Man Sentenced to Federal Prison for Domestic AssaultRead the Press Release
A man who punched his victim repeatedly in the head and face was sentenced today to more than 3 years in federal prison.
Kiedis Oldbear, age 29, from Tama, Iowa, received the prison term after a January 27, 2022 guilty plea to assault resulting in substantial bodily injury to a dating partner.
Information from the case shows that, on September 28, 2021, Oldbear was parked in a car on the Meskwaki Settlement near Tama. The victim of the assault, a woman that Oldbear was dating, was with him in the car. Oldbear assaulted the victim by punching her in the head and face repeatedly, causing substantial injuries to her. The victim was eventually able to get out of the car and run for help.
Oldbear has an extensive criminal history and has been convicted of over 15 crimes as an adult. He has prior convictions for interference with official acts, operating while intoxicated, domestic abuse causing bodily injury, child endangerment, possession of a firearm as a felon, eluding, possession of cocaine with intent to deliver, assault on a police officer, and willful injury.
Oldbear was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Oldbear was sentenced to 41 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Oldbear is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Lisa Williams and investigated by the Federal Bureau of Investigation and the Meskwaki Nation Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-78.
Iowa City Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
DAVENPORT, Iowa – Kevin Emmett Toomey, age 70, of Iowa City, was sentenced Tuesday, July 19, 2022, to 180 months in prison for Receiving Child Pornography. Toomey was also ordered to serve 10 years of supervised release following his prison sentence and was assessed a special assessment immediately payable to the Crime Victims Fund. Toomey pleaded guilty in February 2022 to this offense.
Law enforcement received a cybertip in March 2020 alerting them to an email address that had uploaded suspected child pornography. Detectives obtained and executed a search warrant at Toomey’s residence and seized several electronic devices. A forensic examination of those devices revealed over 4,000 images and nearly 300 videos depicting child pornography. Toomey began accessing child pornography shortly after his release from prison for a prior federal child pornography conviction and continued until the time of his arrest in 2020.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa City Police Department and the Joint Forensic Analysis Cyber Team.This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Iowa City Man Sentenced to Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, Iowa – Brett Thomas Kriz, age 32, was sentenced on July 19, 2022, to 260 months in prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine and Possession with Intent to Distribute 50 Grams or More of Methamphetamine. Kriz was also ordered to serve five years of supervised release to follow his prison term. Kriz pleaded to the charges in December 2021.
According to court documents, law enforcement in Washington County, Iowa initiated a traffic stop on Kriz’s car, which resulted in a search of the vehicle. Officers discovered two backpacks containing ice methamphetamine and other drug paraphernalia. In post-Miranda statements, Kriz admitted to regularly purchasing methamphetamine, which he distributed in various places in eastern Iowa.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Washington County Sheriff’s Office, the Iowa Division of Narcotics Enforcement, and the Johnson County Drug Task Force and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Illinois Man Sentenced to over Five Years for Illegal Possession of Firearm and 50-Round Drum MagazineRead the Press Release
A man who illegally possessed a firearm and a high-capacity magazine was sentenced on July 20, 2022, in federal court in Cedar Rapids, Iowa. Dennis Earl Williams, Jr., age 32, from Chicago, Illinois, pled guilty on January 13, 2022, to being an unlawful drug user in possession of a firearm.
Evidence in the record showed that Williams was traveling through Dubuque, Iowa, with a loaded Glock, Model 19, 9mm caliber pistol along with a 50‑round drum magazine. Williams had marijuana in his system during the same time frame.
Sentencing was held before United States District Court Judge C.J. Williams. Williams was sentenced to serve 57 months’ imprisonment and must serve a three‑year term of supervised release following his term of incarceration. There is no parole in the federal system.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and Assistant United States Attorney Jason D. Norwood and was investigated by the Dubuque Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑01030.
Hudson County Man Admits Drug Conspiracy and Possession with Intent to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey man today admitted conspiring to distribute and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.
Jerome Powell, 43, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Court Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine.
According to the documents filed in this case and statements made in court:
From August 2019 through Feb. 2, 2020, Powell and others agreed to possess and distribute narcotics in Jersey City. Upon his arrest, Powell had 400 vials of cocaine in his pocket.
The charges of conspiracy to distribute cocaine and possession with intent to distribute cocaine each carry a maximum penalty of 20 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Dec. 8, 2022.
U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
Harrisburg Man Sentenced to over 13 Years in Prison for Serving as Lookout During A Pharmacy RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenrick Groover-Floyd, age 34, of Harrisburg, Pennsylvania, was sentenced on July 20, 2022, to 160 months' imprisonment by United States District Court Judge Jennifer P. Wilson for robbery.
According to United States Attorney Gerard M. Karam, Kenrick Groover-Floyd pled guilty to robbery for his role in the April 8, 2019, robbery of a Rite Aid pharmacy in Harrisburg. Groover-Floyd served as a lookout, while his confederates stole cash and over 3,000 pills from the pharmacy. As Judge Wilson explained when she imposed sentence, Groover-Floyd facilitated the robbery as much as the other codefendants in the case. Judge Wilson also noted Groover-Floyd’s long criminal history and the fact that he committed this crime while he was out on bail for unrelated local charges when imposing the sentence.
Groover-Floyd’s codefendants pled guilty to their roles in this robbery, as well as their roles in a string of robberies committed on April 6, 2019. Brandon Harris, age 29, of Harrisburg, Pennsylvania, was sentenced to 192 months’ imprisonment; Childes Neely, age 30, of Harrisburg, Pennsylvania, was sentenced to 181 months in prison; and David Rinehardt, age 21, of Statesville, North Carolina, was sentenced to 111 months in prison.
The Federal Bureau of Investigation brought this case in conjunction with the Harrisburg Bureau of Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
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Hardy County man sentenced to 10 years for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – David Lee Hockenberry, of Fisher, West Virginia, was sentenced today to 120 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Hockenberry, 49, pleaded guilty in February 2022 to one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine.” Hockenberry admitted to having more than five grams of methamphetamine, also known as “crystal meth” and “ice,” in Hardy County in March 2021.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Hancock County women admits to methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Chellsie S. Boyer, of Weirton, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Boyer, 32, pleaded guilty today to one count of “Distribution of 5 Grams or More of Methamphetamine.” Boyer admitted to selling more than five grams of methamphetamine in November 2021 in Hancock County.
Boyer faces at least five years and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Glenn County Man Indicted for Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
Glenn County Man Indicted for Being a Felon in Possession of Firearms and Ammunition
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Erick S. Perez, 34, of Orland, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 1, 2021, Perez was found to be in possession of 26 rounds of 9 mm ammunition, which was loaded into two “ghost guns.” Ghost guns do not contain serial numbers and are sold without background checks, making them difficult to trace and easy to acquire. Perez is prohibited from possessing firearms or ammunition because he was previously convicted of four felonies, including a 2021 conviction for being a felon in possession of a firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Glenn County Investigations and Narcotics Task Force, the Orland Police Department, and the Glenn County District Attorney’s Office. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, Perez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is 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.
Georgia Woman Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that STACIE WHEATEN (“S. WHEATEN”), age 51, of Fairburn, Georgia, pled guilty on July 21, 2022 to count one (1) of her indictment, charging Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In exchange, the government has agreed to dismiss four counts of Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. In pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea bring the total number of defendants convicted in Operation Sideswipe to 38.
According to court documents, S. WHEATEN served as an intermediary who recruited and directed passengers to participate in staged automobile collisions with tractor-trailers on May 17, 2017 and June 6, 2017. The passengers in these collisions filed fraudulent lawsuits that falsely claimed that the tractor-trailers were at fault. S. WHEATEN coordinated with co-conspirators including “slammer” Damian Labeaud and attorney Patrick Keating to arrange the staged collisions.
The Honorable Jane Triche Milazzo set sentencing in this matter for October 26, 2022.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon S. Long.
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Four Maryland Residents Facing Federal Indictment for CARES Act COVID-19 Unemployment Fraud Scheme with More Than $3 Million in LossesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging four Maryland residents with federal conspiracy and wire fraud charges related to a CARES Act unemployment insurance fraud scheme with more than $3 million in losses. The indictment was returned on July 13, 2022, and unsealed today upon the arrests of the defendants. Charged in the indictment are:
Tyshawna Davis, age 38, of Gwynn Oak, Maryland; Tiia Woods, age 44, of Cockeysville, Maryland; Donna Jones, age 55, of Hanover, Maryland; and
Devante Smith, age 27, of Baltimore.Davis, Jones, and Smith had initial appearances this afternoon in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner. They were released under the supervision of U.S. Pretrial Services. Woods is detained in the Middle District of Florida pending a detention hearing scheduled for July 22, 2022.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Troy Springer of the Washington Regional Office, U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the 14-count indictment, from June 2020 through May 2021, the defendants used the personally identifiable information (PII) of victims to fraudulently obtain unemployment insurance benefits. The CARES Act expanded states’ ability to provide unemployment insurance benefits for workers impacted by the COVID-19 pandemic and allowed states to give an additional $600 per week to individuals collecting regular unemployment insurance compensation during certain months in 2020.
The indictment alleges that the defendants obtained the names, dates of birth, and social security numbers of victims using false pretenses, then used the PII to submit and certify fraudulent Maryland unemployment insurance (UI) benefit applications in the victims’ names. For example, the indictment alleges that as part of the conspiracy a Maryland UI application was submitted in the name of Davis’s deceased ex-husband. The defendants allegedly caused the UI benefits to be loaded onto debit cards which were mailed to the addresses of the defendants, rather than the victims. The indictment alleges that the defendants used the fraudulently obtained debit cards to make cash withdrawals and other transactions throughout Maryland. The defendants allegedly used the cash for their own benefit and for the benefit of others who were also not entitled to the money, including by purchasing luxury vehicles. The indictment seeks the forfeiture of two 2021 Mercedes-Benz automobiles and any other proceeds of the scheme.
The indictment alleges that as a result of the scheme, at least 160 fraudulent UI claims were submitted in Maryland, with a loss of more than $3 million. The indictment details 13 specific wire transfers involving fraudulent UI benefits obtained in the names of eight separate victims.
If convicted, the defendants each face a maximum sentence of 20 years in federal prison for the conspiracy and for each count of wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended DOL-OIG and the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Zachary H. Ray and Christine Goo, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Fort Myers Man Sentenced to 12 Years for Committing A Similar Crime Months After Being Released from PrisonRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber today sentenced Herman Fleming (29, Fort Myers) to 12 years in federal prison for possessing a firearm as a convicted felon, possessing with the intent to distribute methamphetamine and fentanyl, and supervised release violations. Fleming had pleaded guilty in March 2022.
According to court documents, on August 24, 2021, an undercover ATF agent watched Fleming, a convicted felon, purchase an AK-47 style rifle at a North Fort Myers flea market. The agent recognized Fleming because, in nearly identical circumstances four years earlier, the agent had personally witnessed Fleming illegally purchase a rifle at a North Fort Myers gun show. That investigation resulted in federal charges for Fleming and a three-year federal prison sentence.
Knowing Fleming and that he had recently been released from prison, the undercover ATF agent and deputies from the Lee County Sheriff’s Office followed Fleming from the flea market and conducted a traffic stop on his vehicle. Inside the vehicle, the officers found the AK-47 Fleming had purchased, as well as 25 grams of pure methamphetamine and 10 grams of fentanyl, which Fleming admitted he had intended to distribute to others.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael Leeman.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Former Utica Police Officer Sentenced for Using Excessive ForceRead the Press Release
SYRACUSE, NEW YORK - Matthew Felitto, age 27, of Utica, New York, was sentenced yesterday in federal court in Syracuse after previously pleading guilty to violating the constitutionally protected right of an arrestee to be free from excessive force by a law enforcement officer. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty previously, Felitto admitted that while working as a police officer for the Utica Police Department in September 2020, he arrived on the scene of an arrest to assist in transporting the arrested individual to the station. The arrestee was handcuffed behind his back and in leg shackles when Felitto arrived because he had been refusing to comply with the commands of other officers already on-scene. Felitto helped those officers place the arrestee in the back of a police van. Once the arrestee was lying on the floor of the van face up and restrained, Felitto kicked him several times in the face and upper chest while wearing work boots. The kicks were without legal justification and were made with sufficient force to cause the arrestee pain and a bruised and swollen lip.
Chief United States District Judge Glenn T. Suddaby sentenced Felitto to a term of probation of 2 years and a fine of $7,500. Felitto will be required to perform 100 hours of community service during his probation term. As a convicted felon, Felitto will be prohibited under federal law from owning or possessing a firearm. Pursuant to the terms of the plea agreement Felitto has resigned from the Utica Police Department.
This case was investigated by the Federal Bureau of Investigation (FBI) and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Michael F. Perry with the assistance of the Civil Rights Division of the United States Department of Justice.
Former Town of Cortlandt Employee and Peekskill Business Owner Indicted for Public Corruption and Fraud OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a seven-count Indictment in White Plains federal court charging GLENN GRIFFIN, the owner, president, and principal of Griffin’s Landscaping Corporation, in separate bribery and bid rigging schemes, and GRIFFIN and ROBERT DYCKMAN, a former Assistant General Foreman with the Town of Cortlandt, in the bribery scheme in which DYCKMAN allowed GRIFFIN to dump hundreds of truckloads of unauthorized materials at a Cortlandt facility. GRIFFIN and DYCKMAN were arrested this morning and will be presented before United States Magistrate Judge Andrew E. Krause in White Plains federal court later today.
U.S. Attorney Damian Williams said: “As alleged, Robert Dyckman, a former Town of Cortlandt employee, used his position of trust to enrich himself by allowing Glenn Griffin to dump unauthorized materials at the Town’s facility, which will cost the Town as much as $1.5 million to clean up. Griffin is also alleged to have defrauded the village of Croton-on-Hudson and the hamlet of Verplanck in a separate bid rigging scheme. My Office will continue to ensure that corrupt business leaders and public officials will be brought to justice.”
As alleged in the Indictment unsealed today in White Plains federal court[[1]]:
Illegal Dumping Scheme
From 2018 until February 2020, GRIFFIN and DYCKMAN engaged in an unauthorized dumping scheme. DYCKMAN gave GRIFFIN and his employees unauthorized access to Arlo Lane, a Cortlandt facility, to dump hundreds of large truckloads of unauthorized materials such as thick concrete, cement with rebar, large rocks, and soil. Based on estimates provided by third-party vendors, the Town of Cortlandt estimates that it will cost between $600,000 to $1.5 million to remove these materials.
DYCKMAN generally allowed GRIFFIN and his employees access to Arlo Lane on Saturdays or after working hours. To carry out the scheme, DYCKMAN would attempt to clear senior Town of Cortlandt management away Arlo Lane around the time of the unauthorized dumping. When DYCKMAN arranged for a subordinate Town of Cortlandt worker to work overtime when GRIFFIN was dumping unauthorized loads, DYCKMAN would falsely record the worker’s overtime as having occurred during the week in order to conceal the scheme.
In exchange for access to Arlo Lane, GRIFFIN gave DYCKMAN cash bribes, firewood, flowers and gardening materials and made extensive improvements to DYCKMAN’s home at no cost. GRIFFIN also gave DYCKMAN a backdated, false invoice for DYCKMAN to give to his insurance company in support of a false insurance claim.
Bid-Rigging Scheme
Between 2015 and 2018, GRIFFIN also engaged in a bid-rigging scheme. GRIFFIN defrauded the village of Croton-on-Hudson, for work on its schools, and the hamlet of Verplanck, for work at its fire department. He made sham, non-competitive, and inflated bids on behalf of entities that GRIFFIN did not work for or have authorization to submit bids on behalf of, so that GRIFFIN would be the low bidder in a pool of purportedly competitive bids and receive public money for work on the projects. Based on these sham, non-competitive, and inflated bids, GRIFFIN was awarded contracts with a combined value exceeding $133,000.
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A chart containing the charges and maximum penalties for GRIFFIN, 53, of Cortlandt Manor, New York and DYCKMAN, 51, of Verplanck, New York, are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the Westchester County Police Department in this investigation. Mr. Williams also thanked the Westchester County District Attorney’s Office and the New York City Department of Investigation for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and James McMahon are in charge of the prosecution.
22-233 ###
COUNT
DEFENDANT(S)
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Pay and Receive Bribes and Gratuities: Illegal Dumping Scheme (18 U.S.C. § 371)
GLENN GRIFFIN
ROBERT DYCKMAN
5 years in prison
Count Two: Payment of Bribes and Gratuities in Illegal Dumping Scheme
(18 U.S.C. §§ 666(a)(2) and 2)
GLENN GRIFFIN
10 years in prison
Count Three: Receipt of Bribes and Gratuities in Illegal Dumping Scheme (18 U.S.C. §§ 666(a)(1)(B) and 2)
ROBERT DYCKMAN
10 years in prison
Count Four: Conspiracy to Misapply and Convert Property of Local Government Receiving Federal Funds in Illegal Dumping Scheme (18 U.S.C. § 371)
GLENN GRIFFIN
ROBERT DYCKMAN
5 years in prison
Count Five: Wire Fraud Conspiracy: Bid-Rigging Scheme (18 U.S.C. § 1349)
GLENN GRIFFIN
20 years in prison
Count Six: Wire Fraud: Bid-Rigging Scheme (18 U.S.C. §§ 1343 and 2)
GLENN GRIFFIN
20 years in prison
Count Seven: Aggravated Identity Theft: Bid-Rigging Scheme (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2)
GLENN GRIFFIN
Mandatory minimum of two years in prison
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former School Bus Driver Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Frederick J. Haresign, age 63, of Oswego, New York was sentenced yesterday to 10 years in prison to be followed by 20 years of supervised release for possessing child pornography. Haresign also will have to register as a sex offender upon his release from prison.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his prior guilty plea, Haresign, a former school bus driver, admitted that, in 2017, he provided a minor child who rode on his bus with nicotine and other gifts in exchange for the child creating sexually explicit images and videos and providing those images and videos to Haresign. Haresign admitted that he possessed those images and videos in 2017 so that he could view them.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the New York State Police: Fulton Bureau of Criminal Investigations, and Troop D Computer Crimes Unit and was prosecuted by Assistant United States Attorney Michael D. Gadarian in coordination with the Oswego County District Attorney’s Office as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ 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 https://www.justice.gov/psc.
Former Minneapolis Police Officer Thomas Lane Sentenced to 30 Months in Prison for Depriving George Floyd of His Constitutional RightsRead the Press Release
The Justice Department announced today that former Minneapolis Police Officer Thomas Lane, 39, was sentenced to serve 30 months in prison and two years of supervised release for depriving George Floyd Jr., of his constitutional rights.
On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when Lane saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury found that Lane’s failure to act resulted in bodily injury to and the death of Floyd. This offense is a violation of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity.
The same jury also found former Minneapolis Police Department (MPD) Officers Tou Thao and J. Alexander Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when Thao and Kueng each willfully failed to intervene to stop former MPD Officer Derek Chauvin’s use of unreasonable force, resulting in bodily injury to and the death of Floyd. Thao and Kueng were also found to have deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to and the death of Floyd. A sentencing hearing for Thao and Kueng has not yet been scheduled.
Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, 2022, Chauvin was sentenced to 252 months in prison for those crimes.
“The tragic death of George Floyd makes clear the fatal consequences that can result from a police officer’s failure to intervene to protect people in their custody,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Had this defendant and other officers on the scene with Derek Chauvin taken simple steps, George Floyd would be alive today. This sentence should send a message that protecting people in custody is the affirmative duty and obligation of every law enforcement officer, regardless of one’s rank or seniority.”
“In the critical last minutes of George Floyd’s life, former officer Lane understood the seriousness of the situation," said U.S. Attorney Andrew M. Luger for the District of Minnesota. “He knew that Mr. Floyd was in grave need of medical care, but he chose passivity rather than action. As a sworn law enforcement officer, he failed to uphold his duty to step in and save a man’s life.”
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter for the District of Minnesota.
Former Minneapolis Police Officer Thomas Lane Sentenced to 30 Months in Prison for Depriving George Floyd of His Constitutional RightsRead the Press Release
St. Paul, Minn. - The Justice Department announced today that former Minneapolis Police Officer Thomas Lane, 39, was sentenced to serve 30 months in prison and two years of supervised release for depriving George Floyd Jr., of his constitutional rights.
On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when Lane saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury found that Lane’s failure to act resulted in bodily injury to and the death of Floyd. This offense is a violation of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity. Lane was sentenced today in U.S. District Court by Senior Judge Paul A. Magnuson.
The same jury also found former Minneapolis Police Department (MPD) Officers Tou Thao and J. Alexander Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when Thao and Kueng each willfully failed to intervene to stop former MPD Officer Derek Chauvin’s use of unreasonable force, resulting in bodily injury to and the death of Floyd. Thao and Kueng were also found to have deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to and the death of Floyd. A sentencing hearing for Thao and Kueng has not yet been scheduled.
Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, 2022, Chauvin was sentenced to 252 months in prison for those crimes.
“The tragic death of George Floyd makes clear the fatal consequences that can result from a police officer’s failure to intervene to protect people in their custody,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Had this defendant and other officers on the scene with Derek Chauvin taken simple steps, George Floyd would be alive today. This sentence should send a message that protecting people in custody is the affirmative duty and obligation of every law enforcement officer, regardless of one’s rank or seniority.”
“In the critical last minutes of George Floyd’s life, former officer Lane understood the seriousness of the situation,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “He knew that Mr. Floyd was in grave need of medical care, but he chose passivity rather than action. As a sworn law enforcement officer, he failed to uphold his duty to step in and save a man’s life.”
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter for the District of Minnesota.
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Former Louisiana Police Chief and City Councilmember Plead Guilty in Vote-Buying ConspiracyRead the Press Release
WASHINGTON – A former police chief in Amite City and current Amite City councilmember pleaded guilty yesterday in New Orleans, Louisiana, to criminally violating federal election laws as part of a conspiracy to pay, or offer to pay, voters for voting in a federal election.
According to court documents, Jerry Trabona, 72, the former Chief of Police in Amite City, and Kristian “Kris” Hart, 49, a current Amite City councilmember, pleaded guilty to conspiring to pay and offering to pay voters residing in Tangipahoa Parish, Louisiana, for voting in the 2016 open primary election and the 2016 open general election. Trabona and Hart admitted that they agreed with each other and others to pay or offer to pay voters during contests in which the defendants were candidates, and in which federal candidates appeared on the same ballot.
In addition to the conspiracy with Trabona, Hart pleaded guilty to three counts of paying and offering to pay voters during both the 2016 and 2020 elections. In both elections, Hart was running for the seat he currently holds on the Amite City Council.
“The Department of Justice is committed to ensuring that illegal voting, including vote buying, has no place in our nation’s electoral system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
“We must have fair elections, free from the taint of corruption, to ensure a fully functional government,” stated U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Safeguarding the voting process is of paramount importance to our office and the Department of Justice.”
“Providing a voter with money or something of value in exchange for voting is a federal crime,” said Special Agent in Charge Douglas A. Williams, Jr. of the FBI New Orleans Field Office. “Today’s guilty pleas sends a clear message that individuals like former Amite Chief of Police Jerry Trabona and current Amite City Councilmember Kris Hart, who engaged in voter fraud, will be held accountable. We thank our partners at the Department of Justice Criminal Division’s Public Integrity Section and the United States Attorney’s Office Eastern District of Louisiana for helping disrupt voter fraud and continuing to protect the right to vote.”
Both defendants are scheduled to be sentenced on Nov. 1 and face up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans of the Eastern District of Louisiana; and Special Agent in Charge Douglas Williams of the FBI’s New Orleans Field Office made the announcement.
The case was investigated by the FBI’s New Orleans Field Office.
Trial Attorneys Michael N. Lang and Rosaleen T. O’Gara of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney M. Irene González of the Eastern District of Louisiana are prosecuting the case.
Former Louisiana Police Chief and City Councilmember Plead Guilty in Vote-Buying ConspiracyRead the Press Release
A former police chief in Amite City and a current Amite City Councilmember pleaded guilty yesterday in New Orleans, Louisiana, to criminally violating federal election laws as part of a conspiracy to pay, or offer to pay, voters for voting in a federal election.
According to court documents, Jerry Trabona, 72, the former Chief of Police in Amite City, and Kristian “Kris” Hart, 49, a current Amite City Councilmember, pleaded guilty to conspiring to pay and offering to pay voters residing in Tangipahoa Parish, Louisiana, for voting in the 2016 open primary election and the 2016 open general election. Trabona and Hart admitted that they agreed with each other and others to pay or offer to pay voters during contests in which the defendants were candidates, and in which federal candidates appeared on the same ballot.
In addition to the conspiracy with Trabona, Hart pleaded guilty to three counts of paying and offering to pay voters during both the 2016 and 2020 elections. In both elections, Hart was running for the seat he currently holds on the Amite City Council.
“The Department of Justice is committed to ensuring that illegal voting, including vote buying, has no place in our nation’s electoral system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
“We must have fair elections, free from the taint of corruption, to ensure a fully functional government,” stated U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Safeguarding the voting process is of paramount importance to our office and the Department of Justice.”
“Providing a voter with money or something of value in exchange for voting is a federal crime,” said Special Agent in Charge Douglas A. Williams, Jr. of the FBI New Orleans Field Office. “Today’s guilty pleas sends a clear message that individuals like former Amite Chief of Police Jerry Trabona and current Amite City Councilmember Kris Hart, who engaged in voter fraud, will be held accountable. We thank our partners at the Department of Justice Criminal Division’s Public Integrity Section and the United States Attorney’s Office for the Eastern District of Louisiana for helping disrupt voter fraud and continuing to protect the right to vote.”
Both defendants are scheduled to be sentenced on Nov. 1 and face up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans of the Eastern District of Louisiana; and Special Agent in Charge Douglas Williams of the FBI’s New Orleans Field Office made the announcement.
The case was investigated by the FBI’s New Orleans Field Office.
Trial Attorneys Michael N. Lang and Rosaleen T. O’Gara of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney M. Irene González for the Eastern District of Louisiana are prosecuting the case.
Former Federal Inmate Sentenced to Nearly Three Years for Fraudulently Collecting PUA Funds on Behalf of Incarcerated IndividualsRead the Press Release
PHILADELPHIA –United States Attorney Jacqueline C. Romero announced that Brandon Segers, 34, of Philadelphia, PA, was sentenced to two years and nine months in prison, 3 years of supervised release, and was ordered to pay $142,069 in restitution for fraudulently applying for and obtaining emergency unemployment benefits related to the COVID-19 pandemic. Specifically, Segers and others submitted false applications claiming that prison inmates lost employment as a result of the pandemic, and false weekly certifications that inmates were available to work full-time despite their incarceration.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received.
In April 2022, the defendant pleaded guilty to charges including conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States, and theft of government money. As part of his guilty plea, Segers acknowledged that applications were filed on behalf of inmates who did not lose their job due to COVID. Co-defendant and incarcerated individual, Michael Matthews, transmitted the necessary inmate information for the filing of PUA applications to Segers, a former federal inmate who was previously incarcerated with Matthews, via phone and email. Segers would then file the fraudulent applications and weekly certifications in the name of Matthews and other inmates Matthews provided. Segers compensated Matthews for providing the inmate information by depositing money into his federal prison commissary account. Matthews previously pleaded guilty to related charges and is due to be sentenced on July 22, 2022. Co-defendant Dionne Segers’ case is pending.
“Pandemic Unemployment Assistance and small business loan funds are intended to help working Americans and small business owners continue to pay their bills and make ends meet, even when revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Romero. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Segers and Matthews fraudulently obtained thousands of dollars in funds that could have helped struggling businesses and individuals.”
“Today, Brandon Segers has been held accountable for using deceit and fraud to line his pockets with PUA funds,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “This is a warning to those out there who think the PUA program is a slush fund. IRS CI, along with our partners, remains committed to investigating those who fraudulently target the PUA program.”
This case was investigated by the United States Department of Labor – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Timothy Lanni.
Former Director of Emergency Management at Pitt Sentenced for Selling Stolen PPE during PandemicRead the Press Release
PITTSBURGH - A suburban Pittsburgh resident has been sentenced in federal court to four years’ probation, 180 days of house arrest, and a fine of $4,000 for his conviction on Interstate Transportation of Stolen Property, United States Attorney Cindy K. Chung announced today. He was also ordered to make full restitution to the University of Pittsburgh.
United States District Judge Arthur J. Schwab imposed the sentence on Christopher D. Casamento, age 43, of the Ross Township area.
According to information presented to the court, Casamento, the former Director of Emergency Management at the University of Pittsburgh, was charged with stealing Personal Protective Equipment from the University, during the height of the Covid pandemic from February 28, 2020, to March 22, 2020. Casamento stole over 13,000 pieces of Aura N95 and other respirator masks and sold them from his eBay vendor page to buyers nationwide at excessive prices in February and March 2020. Casamento earned approximately $18,783.50.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Casamento.
Former Claims Manager for Michigan Unemployment Insurance Agency Sentenced in COVID-19 Fraud SchemeRead the Press Release
DETROIT - Jermaine Rose, a former lead claims examiner for the Michigan Unemployment Insurance Agency (MUIA), was sentenced to two years in federal prison today arising from his participation in a $1.5 million pandemic-related unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.
Jermaine Rose pleaded guilty on April 22, 2022, to one count of conspiracy to commit wire fraud arising out of his participation in a wide-ranging fraud scheme designed to provide Rose’s co-conspirators with pandemic unemployment insurance benefits to which they were not entitled.
United States Attorney Ison stated “Corrupt public servants compromise the ability of the government to function effectively and undermine confidence in all public programs. This prosecution reflects the seriousness with which my office takes corruption and fraud in the public sector as well as our commitment to prosecuting those who used a national crisis as an opportunity to defraud the public.
“Jermaine Rose, while employed as a State of Michigan Unemployment Insurance Agency lead claims examiner, abused his authority to allow the payment of more than $920,000 in fraudulent Pandemic Unemployment Assistance claims. Rose exploited his position to release payment on the claims in exchange for kickbacks from his co-conspirators. We will continue to work with our law enforcement and state partners to investigate those who exploit the unemployment insurance system, “stated Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor, Office of Inspector General.
According to court documents, Rose was working as a lead claims examiner for the MUIA in April 2020, and as such, had electronic access to the MUIA claims database. Rose could use his credentials to access and approve specific UI claims submitted to the agency.
Court documents indicate that beginning in approximately April 2020, Rose entered into an agreement with various individuals to defraud the MUIA by obtaining UI benefits through the submission of false UI claims. Rose’s co-conspirators would electronically submit fraudulent claims to MUIA in the names of various individuals, some of whom would be victims of identity theft and some of whom were entirely fictitious people. These co-conspirators made false statements in the applications attesting to the eligibility of these purported claimants, and would upload fictitious documentation to support those fraudulent claims. The co-conspirators would then communicate with Rose, either directly or through intermediaries, and identify the claims that they had submitted. Rose would then use his insider access to the MUIA system to approve the claims and release benefits. Most of the time, benefits would be electronically loaded onto Bank of America debit cards and mailed to addresses controlled by Rose’s co-conspirators. Rose was often paid for his services, typically in amounts between $50 and $150 per claim he touched.
While some of the individuals who approached Rose had legitimate UI claims and worked with him solely to receive benefits on an accelerated schedule, many of the individuals with whom Rose conspired submitted fraudulent UI claims in bulk. In his plea agreement, Rose acknowledged that he was well aware that many of the claims that he authorized were fraudulent.
Court documents indicate that while it is difficult to provide precise loss figures associated with Rose’s criminal scheme, a conservative estimate of the actual loss in this case is approximately $1,011,000.
The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Secret Service, with substantial assistance from the Michigan Unemployment Insurance Agency.
Felon Sentenced to Prison for Possessing a FirearmRead the Press Release
A man who unlawfully possessed a firearm was sentenced July 20, 2022, to more than five years in federal prison.
Terrence Roby, Jr., age 24, from Waterloo, Iowa, received the prison term after a December 22, 2021, guilty plea to one count of possession of a firearm by a felon.
In a plea agreement, Roby admitted that, on March 29, 2021, he knowingly possessed a firearm, a Smith and Wesson SD40 .40 caliber pistol, as a prohibited person. Roby was prohibited from possessing a firearm because he was previously convicted on February 17, 2020, of attempted burglary in the second degree in the Iowa District Court for Black Hawk County, a felony. On March 29, Roby was a passenger in a vehicle which led officers on a high-speed chase reaching speeds of 60 mph in a 30-mph zone in a residential area. After about 5 minutes, the driver stopped the vehicle and all the occupants fled on foot. Roby ran from the vehicle carrying the pistol which he disposed of between two homes. Roby also admitted that, on July 8, 2021, he possessed a Smith and Wesson 9x19mm caliber pistol and a Kel-Tec .40 caliber rifle. These weapons were found during the execution of a search warrant at Roby’s residence.
Roby was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roby was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Roby is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-2058.
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Federal Jury Finds Felon Guilty of Violating Narcotics and Firearms LawsRead the Press Release
PITTSBURGH - After deliberating for approximately one hour, a federal jury of six men and six women found James Taric Byrd guilty of three counts of federal narcotics trafficking and firearms charges, United States Attorney Cindy K. Chung announced today.
Byrd, 45, formerly of Pittsburgh’s Lincoln Park section, was tried before United States District Judge Cathy Bissoon in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Brendan T. Conway and Benjamin J. Risacher, who prosecuted the case, the evidence presented at trial established that on February 23, 2015, the McKeesport Police Department, while responding to a call after Byrd threatened to shoot up a house in McKeesport, arrested Byrd. On his person and in his vehicle, officers found a loaded and stolen firearm, a bulletproof vest, and quantities of heroin, cocaine, and marijuana. The defendant has numerous prior felony convictions, including for robbery, kidnapping, aggravated assault, obstruction of justice, and illegal gun possession, and he was therefore prohibited by federal law from possessing firearms and ammunition.
During the trial, the defendant assaulted his counsel, and the trial continued without the defendant. The defendant, however, returned to the courtroom and testified.
Judge Bissoon scheduled sentencing for Dec. 5, 2022. The law provides for a maximum total sentence of life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant.
The McKeesport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Byrd.
Federal Jury Convicts Ada Resident of Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Anthony Brian Walker, age 40, of Ada, Oklahoma was found guilty by a federal jury of one count of Murder in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151, and 1153. The jury trial began on Monday, July 18, 2022 and concluded on Wednesday, July 20. Based on the jury’s verdict, the Defendant is facing a mandatory minimum sentence of life imprisonment.
During the trial, the United States presented evidence that on November 21, 2021, the Defendant intentionally killed Jason “Bubba” Edward Hubbard, Jr. by stabbing him in the heart while Mr. Hubbard was sitting in a vehicle in the drive-thru of the Karry Out Korner in Ada, Oklahoma.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the Defendant is a member of a federally-recognized Indian tribe and the crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation and the Eastern District of Oklahoma.
The guilty verdict was the result of an investigation by the Federal Bureau of Investigation and the Chickasaw Nation Lighthorse Police Department.
The Honorable Ronald A. White, U.S. District Judge for the United States District Court for the Eastern District of Oklahoma, sitting in Muskogee, Oklahoma, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following the completion of the report. Walker was remanded to the custody of the United States Marshal pending the sentencing hearing.
Assistant United States Attorney Cameron McEwen and Special Assistant United States Attorney Erin McKenzie represented the United States.
Federal Grand Jury Returns Indictment Against Louisville Man for CARES Act FraudRead the Press Release
Louisville, Kentucky – A federal grand jury in Louisville returned an indictment yesterday charging a local man with thirteen counts of fraud related to various CARES Act financial assistance programs.
According to court documents, between August 5, 2020, and October 5, 2021, Blake Patterson, 37, of Louisville, Kentucky filed eleven fraudulent applications for various CARES Act financial assistance programs, including Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), resulting in the theft of $133,802 and attempted theft of an additional $608,704.50. Patterson organized the entities et Propellente, Darke Rose, and Link LLC after the onset of the Covid 19 pandemic. He then exaggerated the gross revenues, number of employees, and payroll of those entities in the fraudulent applications he filed. Patterson was granted one EIDL payment in the amount of $67,900 and one PPP loan in the amount of $65,902. Patterson further submitted a fraudulent application seeking forgiveness of the PPP loan, which was ultimately granted.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period of time and used a certain percentage of the PPP loan proceeds on payroll expenses.
The CARES Act authorized the SBA to provide EIDLs of up to $2 million to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. EIDL proceeds could be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
Patterson is charged with twelve counts of wire fraud in violation of Title 18, United States Code, Section 1343 and one count of bank fraud in violation of Title 18 United States Code Section 1344. The defendant made his initial court appearance today before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum penalty of 270 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, made the announcement.
The Treasury Inspector General for Tax Administration (TIGTA) is investigating the case.
Assistant U.S. Attorney Nicole Elver 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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Escaped Alabama Prisoner Indicted for Illegal Possession of Five Firearms in Evansville, IndianaRead the Press Release
EVANSVILLE – A federal grand jury in Evansville returned an indictment today charging Casey White, 38, of Florence, Alabama, with being a felon in possession of a firearm and a fugitive in possession of a firearm.
According to court documents, on April 29, 2022, White escaped from jail in Lauderdale County, Alabama. On May 9, 2022, White allegedly possessed five firearms in Evansville, Indiana, including four handguns and an AR15 rifle. White was legally prohibited from possessing firearms because he was a fugitive from justice and due to his 2019 felony convictions for attempted murder and kidnapping in Limestone County, Alabama.
White is currently detained in the custody of Alabama authorities on other charges and will make his initial appearance in the Southern District of Indiana at a later date. If convicted, the defendant faces up to ten years in federal prison on each count. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI Indianapolis Field Division made the announcement.
The case was investigated by the Federal Bureau of Investigation. The U.S. Marshals Service and the Vanderburgh County Sheriff’s Office provided valuable assistance.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lauren Wheatley who is prosecuting this case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dracut Man Pleads Guilty to Armed RobberyRead the Press Release
BOSTON – A Dracut man pleaded guilty today in federal court in Boston in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Dec. 24, 2020.
Michael Vangpa, 33, pleaded guilty to one count of interfering with commerce by robbery and one count of using a firearm in furtherance of a crime of violence. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 14, 2022. Vangpa was charged by criminal complaint in August 2021 and subsequently indicted by a federal grand jury in October 2021.
“Mr. Vangpa’s acts of violence spread panic across the communities he violated and terrorized by committing multiple armed robberies. Residents should be able to visit their local businesses without fear,” said United States Attorney Rachael S. Rollins. “My office is committed to ensuring the safety of this Commonwealth. We will continue to work with our law enforcement partners to hold violent individuals accountable and more so when they use firearms during their crimes.”
“Convicted felon Michael Vangpa’s crime spree on Christmas Eve during which he committed three commercial armed robberies within an hour, brandishing a handgun, put the store clerks in fear for their lives, and the public in danger,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Removing violent criminals like him from our communities is the top priority of FBI Boston's Violent Crimes Task Force.”
“Armed robberies at neighborhood stores make citizens fearful to carry out their daily business in our community,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF and our law enforcement partners are committed to pursuing violent offenders to ensure that those who commit violent crimes will be held accountable for their actions.”
On Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa brandished a firearm and demanded money from the store clerks. During one of the robberies, Vangpa discharged the firearm into cardboard boxes under the register while demanding money. In the other robberies, he used the firearm to strike the cashier in the head and make a store customer get on the ground.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of discharging a firearm in furtherance of a crime of violence provides for a mandatory sentence of 10 years in prison to be served consecutively to any other sentence imposed and up to life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, ATF SAC Ferguson and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
Conspirator in Murder-For-Hire Conspiracy Convicted after Eight-Day TrialRead the Press Release
Greenbelt, Maryland – A federal jury late yesterday convicted Jose David Navarro Cervellon, age 41, of Norcross, Georgia, on federal charges related to a murder-for-hire.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Acting Postal Inspector in Charge Tira Hayward of the U.S. Postal Inspection Service - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to the evidence presented at his eight-day trial and to court documents, Navarro was an associate of Miguel Angel Ayala Rivera, who was the leader of the Pinos Locos Salvatrucha clique of MS-13. In November 2016, co-defendant Miguel Antonio Renderos was looking for someone to murder Victim 1 in exchange for $10,000. Navarro introduced Renderos to Ayala Rivera, who agreed to commit the murder.
The evidence presented at trial proved that Renderos wanted Victim 1 to be killed because in 2012, after Renderos allowed the victim to move into the basement of Renderos’s home, Victim 1 began to have a romantic relationship with Renderos’s wife. With Navarro serving as the middleman between Renderos and Ayala Rivera, the defendants exchanged phone calls to arrange the murder.
As detailed at trial and in court documents, between November 1 and November 30, 2016, Navarro paid for a hotel room for Ayala Rivera and a co-conspirator at a hotel in College Park. During that time, Ayala Rivera, Navarro and the co-conspirator conducted surveillance of Victim 1 in and around Victim 1’s residence. On November 30, 2016, Navarro drove Ayala Rivera and the co-conspirator to Victim 1’s residence, where Ayala Rivera shot and killed Victim 1. After the murder, Navarro left the area with Ayala Rivera and the co-conspirator and took Ayala Rivera to collect payment from Renderos for the murder of Victim 1.
Navarro faces a mandatory sentence of life prison for the murder-for-hire conspiracy and for the use of interstate commerce facilities in the commission of a murder-for-hire; and a mandatory minimum of 10 years in federal prison, consecutive to any other sentence imposed, and up to life in prison for murder resulting from the use, carrying, brandishing and discharging of a firearm during and in relation to a crime of violence. U.S. District Judge Paula Xinis has not yet scheduled sentencing for Navarro.
Co-defendants Miguel Angel Ayala Rivera, age 28, of Silver Spring, Maryland, and Miguel A. Renderos, age 47, of Hyattsville, Maryland, each pleaded guilty to their roles in the murder-for-hire and are scheduled to be sentenced on August 5, 2022, at 12:00 p.m. and September 6, 2022, at 10:00 a.m., respectively. In a related case, Luis Cruz Hernandez, age 28, of Silver Spring, Maryland, previously pleaded guilty to his role in the murder-for-hire and was sentenced to 51 years in federal prison
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI, the U.S. Postal Inspection Service, and the Prince George’s County Police Department for their work in the investigation and thanked the Montgomery County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorneys William D. Moomau and Leah B. Grossi, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Connecticut Man Sentenced to 70 Months’ Imprisonment for Conspiracy to Distribute Heroin, Fentanyl, Cocaine, and Cocaine Base from Rutland ApartmentRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ralph Mariani (a.k.a. “D”), 28, of West Hartford, Connecticut was sentenced on July 20, 2022 in United States District Court in Rutland, Vermont by Chief Judge Geoffrey W. Crawford to 70 months of imprisonment. Mariani had previously pleaded guilty to conspiracy to distribute heroin, fentanyl, cocaine, and cocaine base in the Rutland, Vermont area. Judge Crawford also ordered that Mariani serve three years of supervised release by the U.S. Probation Office after he serves his term of imprisonment.
Mariani’s three codefendants, Cedano Brownswell of Hartford, Connecticut, Rashane Wedderburn of Hartford, Connecticut, and Jasmine Wendell of West Rutland, Vermont, have all pleaded guilty to drug trafficking offenses and are awaiting sentencing.
According to court records and proceedings, on November 18, 2020, law enforcement executed a federal search warrant for an apartment on Traverse Place in Rutland, Vermont. Mariani, Wedderburn, Brownswell, and Wendell were all present at the time of this search. Law enforcement seized approximately 72 grams of powder cocaine, 45 grams of cocaine base, 69 bags of fentanyl, and 52 Oxycodone pills. The search also resulted in the seizure of four firearms, including a loaded 9mm pistol located on the living room couch. Law enforcement also seized a total of over six thousand dollars in cash from Mariani, Cedano, and Wedderburn. The government argued that a long sentence was justified because Mariani’s offense involved drug trafficking for profit, possession of firearms, violence, and threats of violence, including his assault of a female drug addict to coerce her into dealing drugs for him in the Rutland area.
United States Attorney Nikolas P. Kerest commended the joint efforts in this investigation by the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rutland City Police, and Homeland Security Investigations. This case is prosecuted by Assistant U.S. Attorney Joseph Perella. Mariani is represented by Gerald Klein, Esq. of Hartford, Connecticut.
Connecticut Man Charged in Manhattan for Trafficking “Ghost” GunsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and John B. DeVito, Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced that MELVIN BURROUGHS was charged in a superseding indictment with conspiring to traffic firearms, trafficking firearms, and being a felon in possession of ammunition.
U.S. Attorney Damian Williams said: “As alleged, the defendant—a convicted felon—was in the business of building and selling untraceable ‘ghost guns.’ Thanks to our law enforcement partners, his dangerous ghost gun business has been shut down.”
ATF New York Special Agent-in-Charge John B. DeVito said: “ATF has no higher priority than stopping the flow of illegal guns of any kind. This case sends a clear message to those who seek to produce ghost guns for the criminal marketplace. The NYC Crime Gun Intelligence allows law enforcement to identify patterns, leads, and potential suspects such as in this case; in order to make our communities safer. Thanks to the collaboration with the NYPD Major Case Field Intelligence Team, NYSP and Ansonia CT Police Department for their hard work.”
According to the allegations in the Superseding Indictment[1] unsealed today in Manhattan federal court and in other public court documents:
From approximately 2019 through approximately January 2022, BURROUGHS purchased the parts for “ghost guns,” assembled the parts into completed firearms, and then illegally sold the working and completed firearms.
Based on review of surveillance video capturing the event from multiple angles, on March 14, 2021, BURROUGHS exited his house in Ansonia, Connecticut with a handgun and—in broad daylight—discharged five rounds at two men who had approached his house.
The Ansonia Police Department searched BURROUGHS’s house the next day. According to police reports and photographs documenting the search, law enforcement officers located two completed Glock-style privately made firearms (commonly known as “ghost guns”), and a .50-caliber Desert Eagle pistol that had been reported stolen in Georgia. Law enforcement officers also recovered a custom-made red and black AR-15-style rifle with the words “SUU WHOOP” inscribed on it. “Suu whoop” is a gang call of the Bloods street gang, and red is the color of the Bloods street gang. A photograph of the rifle is below:
During the search of BURROUGHS’s house, and in addition to the four firearms described above, law enforcement officers also recovered large quantities of ammunition, various gun parts and tools for making ghost guns, and a flamethrower.
In connection with the shooting and search of his residence, BURROUGHS was charged in Superior Court of Connecticut – Ansonia-Milford Judicial District in Milford, Connecticut with Connecticut state offenses of threatening in the first degree, reckless endangerment in the first degree, criminal mischief in the third degree, illegal discharge of a firearm, criminal use of a weapon, criminal possession of a firearm or ammunition, and attempt to commit first degree assault. BURROUGHS was released on bail conditions.
On January 8, 2022, BURROUGHS was arrested in Westchester County, New York with kits to build 17 ghost guns, a completed lower receiver[2] for an AR-15 rifle, 15 extended magazines, and an 18-inch machete. A photograph of the items seized from BURROUGHS on January 8, 2022 is below:
After BURROUGHS was arrested on January 8, 2022, law enforcement agents searched multiple cellphones belonging to BURROUGHS pursuant to search warrants. Evidence on those cellphones, including text message communications, videos, and photographs, establishes that BURROUGHS has been unlawfully selling firearms since approximately 2019. In particular, the evidence shows that BURROUGHS’s gun trafficking business involves purchasing ghost gun parts online or at gun shows, building the ghost guns at his home, and then selling the completed firearms. One of BURROUGHS’s cellphones contained a photograph, below, of 15 ghost gun kits that BURROUGHS purchased in approximately February 2021.
BURROUGHS, 35, of Ansonia, Connecticut, is charged with: (1) one count of conspiracy to traffic firearms, which carries a maximum sentence of five years in prison, (2) one count of trafficking firearms, which carries a maximum sentence of ten years in prison, and (3) one count of being a felon in possession of ammunition. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the ATF. Mr. Williams also thanked the New York City Police Department, the Ansonia Police Department, the Westchester County District Attorney’s Office, the Connecticut Office of the State’s Attorney for Ansonia-Milford, and the United States Attorney’s Office for the District of Connecticut for their assistance in the case.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Kevin Mead is in charge of the prosecution.
The charges in the Superseding Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and other assertions in public court documents, and the descriptions of those documents set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
[2] A “lower receiver” or “frame” is the bottom part of a firearm and the basic unit of a firearm, which, in an AR-15 rifle, houses parts related to the trigger, magazine, and hammer.
Colorado Couple Indicted for Payroll and Personal Tax FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Jay G. Mills and Danielle A. Mills were indicted by a federal grand jury on March 23, 2022, on charges of failure to account for and pay over employment payroll taxes and failure to file income tax returns. Danielle Mills had her initial appearance on July 20, 2022, before U.S. District Court Magistrate Judge Kato Crews and was released on bond. Jay Mills initially appeared in federal court on April 25, 2022.
According to information contained in the indictment, the co-defendants were the owners, operators and principal officers of Mills Solids Control Consulting LLC located in Colorado. During the period for quarters ending March 31, 2016, through June 30, 2017, it is alleged the co-defendants deducted and collected taxable wages from MSCC employees. The co-owners are alleged to have willfully failed to pay over to the Internal Revenue Service the federal income taxes, Social Security taxes, and Medicare taxes withheld during this six-quarter period. Both co-defendants are also alleged to have failed to file federal individual income tax returns for the 2015-2017 tax years.
Jay Mills and Danielle Mills each face six counts of failure to pay over employment payroll taxes and three counts of failure to file a federal tax return. The defendants face a maximum fine of $1,575,000 and up to five years in prison for each failure to pay over count and up to one year in prison for each count of failure to file income tax returns.
This case is being investigated by Internal Revenue Service: Criminal Investigation.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
Caribbean Corridor Strike Force Arrests Four Individuals Charged with Drug TraffickingRead the Press Release
ind_drug_trafficking_cloro_7-20-22-cr-328-fab_.pdf SAN JUAN, Puerto Rico – On July 20, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging four individuals with conspiracy and possession with intent to distribute cocaine, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Participating agencies in the Caribbean Corridor Strike Force and the Puerto Rico Police Bureau (PRPB) are in charge of the investigation of the case, with the collaboration from: the Puerto Rico Department of Justice, the Puerto Rico Department of Public Safety, the Puerto Rico Department of Corrections and Rehabilitation, the Puerto Rico Ports Authority, Customs and Border Protection (CBP), the San Juan Municipal Police, and the Guaynabo Municipal Police.According to the evidence recovered in the investigation, and as alleged in the indictment, as part of the manners and means of the conspiracy, the members of the conspiracy packaged the cocaine inside cardboard boxes labeled as cleaning products.
The defendants named in the indictment are:
Francisco Rivera-Rivera
Santiago Ramírez
Teddy Vergara-López
Jonathan Castro-Rivera
Part of the contraband seized in this case was recently recovered from a warehouse at a correctional facility. At this time, the evidence does not indicate the involvement of any correctional officer or correctional employee in the commission of this crime. Instead, it appears that the cocaine-laden boxes were not removed from the shipment as planned, and were mistakenly taken to the Ponce warehouse with the cleaning products. The estimated value of the approximately 228 kilograms of cocaine seized in this investigation is $4,104,000.
“This operation reflects the excellent collaboration between our state and federal law enforcement partners. We will continue following leads in this investigation in order to identify all of those responsible,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
“The Caribbean Corridor Strike Force is composed of our federal, state and local counterparts in an effort to stop the movement of contraband in the Caribbean,” said Iván J. Arvelo, Special Agent in Charge for HSI San Juan. “Those involved in drug trafficking should know that the Caribbean is no longer an option to transship narcotics into the United States, we are working together, we are interdicting, and we are arresting.”
“The events related to the discovery of 50 kilos of cocaine inside a warehouse at the Ponce Correctional Facility, have been coordinated with our Federal Law Enforcement partners, the Department of Correction and Rehabilitation, and the Department of Public Safety. Our combined mission in the investigation of this crime and violation of the law is to find and prosecute all individuals involved in this criminal organization,” stated the Secretary of the Department of Public Safety, Alexis Torres.
Assistant U.S. Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max Pérez-Bouret, Deputy Chief of the Transnational Organized Crime Section, AUSA Vanessa Bonhomme, and AUSA Luis A. Valentin are in charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years, and up to life in prison.
The Caribbean Corridor Strike Force is part of an Organized Crime Drug Enforcement Task Force’s (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Participating agencies of the Caribbean Corridor Strike Force include the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Coast Guard Investigative Service (CGIS), the U.S. Marshals Service, the Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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California Man Sentenced to 120 Months for Sex Trafficking of a MinorRead the Press Release
PHOENIX, Ariz. – On July 14, Jahque Dijion Williams, 21, of Los Angeles, California, was sentenced by United States District Judge Diane J. Humetewa to 120 months in prison. Williams previously pleaded guilty to Sex Trafficking of a Minor.
On July 23, 2020, the Human Trafficking Unit of the Los Angeles Police Department found the 17-year-old minor, who appeared to have been physically assaulted, at a Los Angeles hospital. The victim indicated that she first met Williams on July 19, 2020, through her social media account and he invited her to a party in Phoenix. At the party, she realized it was a “recruiting party” for commercial sex workers. Williams then transported the minor and another adult female to Los Angeles where he told the minor she would work for him. Williams gave the minor details about the amount of money she would bring back each night. On the trip to Los Angeles, Williams prevented the minor from leaving the car by activating the child lock on his vehicle.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the DOJ Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations, the Mesa Police Department, the Los Angeles Sheriff’s Department and the Los Angeles Police Department investigated the case. The United States Attorney’s Office, District of Arizona, Tucson and Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00687-PHX-DJH-1
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Burlington Man Sentenced to Federal Prison for Drug ChargeRead the Press Release
DAVENPORT, Iowa – Jose Luis Escundino Romayor, age 37, was sentenced on July 19, 2022, to 210 months in prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine. Romayor was also ordered to serve five years of supervised release to follow his prison term. Romayor pleaded to the charge in February 2022.
According to court documents, in July and August of 2017, law enforcement in Des Moines County utilized a police informant to purchase “ice” methamphetamine from Romayor on multiple occasions. During the investigation, law enforcement seized more than 2 kilograms of methamphetamine and a pistol. After his arrest, Romayor admitted regularly receiving large amounts of methamphetamine for resale.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the United States Drug Enforcement Administration, Department of Homeland Security, Immigrations and Customs Enforcement, the Iowa Division of Narcotics Enforcement, and the Southeast Iowa Drug Task Force and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Burlington County Woman Sentenced One Year and One Day in Prison for Role in Scheme to Launder Money, Defraud Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, woman was sentenced today to one year and one day in prison for her role in a GoFundMe scam that gained nationwide attention, U.S. Attorney Philip R. Sellinger announced.
Katelyn McClure, 32, of Bordentown, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiracy to commit wire fraud. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In November 2017, McClure and Mark D’Amico, 43, allegedly created a crowd-source funding page on GoFundMe’s website titled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of a homeless veteran, Johnny Bobbitt, 39, of Philadelphia. McClure and D’Amico posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a “good Samaritan” and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited to get Bobbitt off the streets and provide him with living expenses, setting a goal of $10,000.
In reality, McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure allegedly conspired to create the false story to obtain money from donors. The story was quickly picked up by local and national media outlets and went viral and raised approximately $400,000 from more than 14,000 donors in less than three weeks.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money allegedly was quickly spent by D’Amico and McClure on personal expenses over the next three months.
In mid-November of 2017, when the donations had reached approximately $1,500, D’Amico and McClure told Bobbitt about the campaign and the false gas story. In December of 2017, after setting up a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
In addition to the prison term, Judge Hillman sentenced McClure to three years of supervised release and ordered her to pay $400,000 in restitution. D’Amico previously pleaded guilty and was sentenced in April 2022 to 27 months in prison; Bobbitt pleaded guilty and is awaiting sentencing.
U.S. Attorney Sellinger credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Lachia L. Bradshaw; officers of the Florence Township Police Department; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the Criminal Division in Camden.
Burlington County Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man was sentenced to 120 months in prison for conspiring to distribute large amounts of cocaine and crack cocaine throughout Burlington County, U.S. Attorney Philip R. Sellinger announced today.
Herbert Mays, 65, of Willingboro, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Judge Quraishi imposed the sentence on July 20, 2022, in Trenton federal court.
Eighteen other members of the drug trafficking conspiracy have pleaded guilty. The charges against two other defendants remain pending; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, Mays, his codefendants and others engaged in a narcotics conspiracy that operated primarily in municipalities throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, and Edgewater Park – and which sought to profit from the distribution of cocaine and crack cocaine. Law enforcement officials learned that defendants obtained regular supplies of cocaine from co-conspirators in the Philadelphia area and elsewhere and then redistributed that cocaine, portions of which defendants converted into crack cocaine, for profit, to other conspirators, distributors, sub-dealers, and end users throughout Burlington County and elsewhere. Law enforcement officials intercepted numerous communications by and between the conspirators regarding such issues as cocaine and crack cocaine quality and availability, pricing, packaging, quantity, and customer satisfaction.
In addition to the prison term, Judge Quraishi sentenced Mays to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; detectives of the Burlington County Prosecutor’s Office, under the direction of Burlington County Prosecutor Lachia L. Bradshaw; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Acting Director of Public Safety Ian Bucs; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesce; officers of the Edgewater Park Police Department, under the direction of Chief of Police Brett V. Evans; officers of the Ewing Police Department, under the direction of Chief of Police Albert Rhodes; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; officers of the Trenton Police Department, under the direction of Director Steve Wilson with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the U.S. Attorney’s Office’s Criminal Division in Trenton and Andrew B. Johns of the Criminal Division in Camden.
Brother of Baltimore Business Owner Admits to Falsely Claiming His Brother’s Bank Balance and Activity as His Own in Order to Obtain a Federal Housing Administration LoanRead the Press Release
Baltimore, Maryland – Calvin Abramowitz, age 48, of Lakewood, New Jersey, pleaded guilty today to bank fraud. As part of his guilty plea, Abramowitz has been ordered to pay $209,036.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Shawn A. Rice of the U.S. Department of Housing and Urban Development Office of Inspector General.
According to his guilty plea, Calvin Abramowitz and his brother, Philip Abramowitz, age 40, of Pikesville, Maryland conspired to defraud at least one financial institution by fraudulently obtaining Federal Housing Administration (FHA) loans and property under false pretenses. Specifically, Philip Abramowitz used his company 163 N. Potomac St., LLC., to facilitate the fraudulent sales of his Potomac Street, Baltimore, Maryland properties.
In May 2016, Philip Abramowitz decided to sell one of the Potomac Street properties (Property 1) to his brother, Calvin Abramowitz for $300,000 using an FHA-insured loan. The FHA is part of the U.S. Department of Housing and Urban Development (HUD) and provides mortgage insurance on loans made by FHA-approved lenders. To qualify for the FHA-insured loans, the buyer must use the residence as their primary residence, disclose any familial or business relationship between the seller and buyer, and disclose the source of the money the buyer intends to use for the down payment and closing costs.
As stated in his guilty plea, Calvin Abramowitz applied for and received a $294,566 FHA-insured loan with a mortgage company (Mortgage Company 1) by falsely representing Philip Abramowitz’s bank account records as his own. The defendants also concealed their familial relation from Mortgage Company 1 by submitting false company filings during the loan application process, having Philip Abramowitz’s property manager (Property Manager 1) pose as the sole seller and manager of 163 N. Potomac St., LLC and arranging Property Manager 1 to sign the FHA-loan contact as the official seller of the property. Philip Abramowitz’s ownership of 163 N, Potomac St., LLC. or involvement in the sale was never disclosed.
Further, to facilitate the loan underwriting process, Philip Abramowitz gave Calvin Abramowitz $10,500 to pay for the closing costs for Property 1 as Calvin Abramowitz did not have the financial means to make the purchase. Based on the fraudulent financial information presented during the loan application process, Mortgage Company 1 loaned Calvin Abramowitz $294,566 for the purchase of Property 1. The majority of the loan proceeds were subsequently deposited into Philip Abramowitz’s bank account. Ultimately, Calvin Abramowitz never used Property 1 as a primary residence and rented the property to tenants before ceasing mortgage payments and causing the property to fall into foreclosure.
Philip Abramowitz pleaded guilty to conspiracy to commit wire fraud in May 2022 and is scheduled to be sentenced on August 9, 2022, at 2:30 p.m.
Calvin Abramowitz faces a maximum sentence of 30 years in federal prison followed by 5 years of supervised release for bank fraud. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 6, 2022, at 2:30 p.m.
United States Attorney Erek L. Barron commended HUD-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Brooklyn, NY Man Sentenced to 10 Years for Possessing a Fentanyl/Heroin Mix He Intended to DistributeRead the Press Release
PITTSBURGH, PA – A former resident of Brooklyn, New York, has been sentenced in federal court to 10 years’ imprisonment on his conviction for violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Miguel Rodriguez, 53, formerly of Belmont Avenue, Brooklyn, New York, who previously pleaded guilty to a Superseding Indictment charging him with possessing 400 grams or more of fentanyl and heroin intending to redistribute it.
In connection with his prior guilty plea, the Court was advised that law enforcement agents encountered Rodriguez on July 27, 2019, departing a bus in downtown Pittsburgh that had recently arrived from New York City. During a subsequent search of Rodriguez’s bags, agents discovered a large bag of powder that was later determined to contain mixtures of both heroin and fentanyl, which are scheduled controlled substances under federal law. In connection with his plea, Rodriguez admitted to knowingly possessing a controlled substance intending to distribute it in the Western District of Pennsylvania.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rodriguez.
Baraboo Resident Sentenced to 96 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Carl Rabe, 44, Baraboo, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 96 months in prison for possession of methamphetamine with intent to distribute. Rabe pleaded guilty to this charge on April 26, 2022.
During the course of a long-term, multi-agency investigation, law enforcement officers identified several people, including Rabe, who distributed significant amounts of methamphetamine in western Wisconsin. Investigators also learned that Rabe partnered with traffickers who purchased methamphetamine from sources-of-supply in other states.
On October 20, 2021, an investigator from the Richland-Iowa-Grant Drug Task Force watched Rabe meet with the driver of a pickup truck in a retail parking lot in Lancaster, Wisconsin. The investigator knew Rabe had an outstanding warrant and was on probation for prior drug charges.
While Rabe stood next to the pickup, the investigator and a canine officer from the Lancaster Police Department arrested Rabe on the outstanding warrant. Investigators then interviewed the driver of the pickup who admitted that he planned to purchase $50 worth of methamphetamine from Rabe.
Investigators searched Rabe’s car after the Lancaster Police Department’s drug detection dog alerted to the presence of narcotics in the vehicle. A scale, packaging material, and 425 grams of methamphetamine were found in the car.
At the sentencing hearing, Judge Conley described Rabe as someone who embraced the drug trafficking lifestyle. Judge Conley noted that, in addition to the charged conduct, Rabe jumped into a major drug trafficking network when he partnered with Christopher Fernette and Dillan Boydston to obtain three pounds of methamphetamine from a source-of-supply in Minnesota.
On June 29, 2022, Judge Conley sentenced Christopher Fernette to 120 months’ imprisonment for possession of methamphetamine with intent to deliver. Dillan Boydston pleaded guilty yesterday to conspiracy to distribute methamphetamine and is scheduled to be sentenced on November 3, 2022.
The charge against Rabe was the result of an investigation conducted by Crawford County Sheriff’s Office, Prairie du Chien Police Department, Richland-Iowa-Grant Drug Task Force, Lancaster Police Department, Dakota County (Minnesota) Drug Task Force, Iowa Division of Criminal Investigation, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Atlanta film producer pleads guilty for $2.5 million cryptocurrency-based investment scamsRead the Press Release
ATLANTA - Ryan Felton has pleaded guilty to multiple counts of wire fraud, securities fraud, and money laundering charges on the fourth day of his jury trial arising from his fraudulent promotion of two cryptocurrency investment schemes that cost investors millions in losses.
“The defendant used 21st century technology to perpetrate an age-old fraud: lying to investors to steal their money and fund his own lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Felton’s conviction should serve as a warning to anyone who seeks to capitalize on emerging technology to victimize others.”
“The technology has advanced, but the crime remains the same, and those who invest in cryptocurrency must be wary of opportunities that appear too good to be true,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to protecting investors from sophisticated cryptocurrency scammers that seek to capitalize on the novelty of digital currency.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 2017, Felton promoted an initial coin offering (ICO) for a new entertainment streaming platform, FLiK, which he promised would surpass Netflix. ICOs are fundraising events during which the issuers of a unique cryptocurrency “token” or “coin” set an amount they want to raise, offer it to the public in a crowd sale, and receive cryptocurrency from investors in exchange.
In order to increase, or pump, the price of FLiK coins, Felton falsely represented to investors that a prominent Atlanta rapper and actor was a co-owner of FLiK, the United States military had agreed to distribute the streaming platform to service members, and FLiK was finalizing licensing deals with major film and television studios. In reality, the rapper had no role in the company beyond authorizing a promotional social media post, FLiK had no military contract, and Felton never had discussions with any studio about licensing content. Felton further claimed that he was actively developing the platform and would use all funds raised in the ICO to launch FLiK. After the ICO closed, Felton dumped more than 40 million FLiK coins on trading markets, causing the value of FLiK coins to plummet.
Instead of using investor funds to develop the platform, Felton diverted approximately $2.4 million in investor proceeds from the ICO and trading markets to his personal account. He used the vast majority of the investor proceeds to fund his extravagant lifestyle, including all-cash purchases of a $1.5 million residence, a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe, a new $58,250 Chevy Tahoe, and approximately $30,000 in diamond jewelry.
In 2018, Felton promoted a second ICO for a new company, CoinSpark, which was a cryptocurrency trading exchange. In order to attract investors to the ICO, Felton promised that Spark coin investors would receive 25% of the trading exchange’s profits in the form of dividends. Felton further claimed that a global accounting firm would audit CoinSpark’s finances on a quarterly basis, but, in reality, he never spoke with the accounting firm. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites to further promote false information and build up excitement in CoinSpark.
After raising more than $200,000 in the ICO, Felton announced that CoinSpark would not pay Spark investors a dividend and offered ICO investors a refund. Felton then repeatedly rejected or ignored investor requests for refunds. The CoinSpark exchange ultimately launched months after its promised delivery date but had significant technical issues and minimal trading activity. Instead of applying ICO proceeds to CoinSpark, Felton again diverted significant funds to his personal bank account.
Ryan Felton, 48, of Atlanta, Georgia, pleaded guilty to twelve counts of wire fraud, ten counts of money laundering, and two counts of securities fraud on the fourth day of his jury trial. Sentencing will be scheduled at a later date before U.S. District Court Judge J.P. Boulee.
This case is being investigated by the Federal Bureau of Investigation.
The SEC Washington, D.C. Office and the SEC New York Regional Office provided valuable contributions in this case.
Assistant U.S. Attorneys Sekret T. Sneed and Nathan P. Kitchens are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ashland City Physician Charged in Federal Health Care Fraud ConspiracyRead the Press Release
NASHVILLE – A federal grand jury in Nashville on Monday returned a nine-count indictment, charging an Ashland City, Tennessee, physician in a telemedicine conspiracy to defraud Medicare of more than $41 million, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
John R. Manning, 61, faces charges of conspiracy to commit health care fraud and eight counts of health care fraud. The indictment also contains a forfeiture allegation in which the United States seeks to recover all property, including a money judgement, that represents the proceeds of the violations. Manning was arrested Tuesday at his home by federal agents.
The indictment alleges that Manning worked for various telemedicine companies that arranged for physicians to prescribe a variety of durable medical equipment (DME), topical creams, and Cancer Genomic (CGx) testing for Medicare beneficiaries. Manning and his co-conspirators sought to enrich themselves by paying and receiving kickbacks and bribes in exchange for signed doctors’ orders and prescriptions for DME, topical creams, and CGx testing, and submitting false and fraudulent claims to Medicare for such services and treatments that were not medically necessary and not eligible for reimbursement.
The indictment further alleges that Manning electronically signed doctors’ orders without having established a patient/doctor relationship as required, and issued orders and prescriptions based on only a brief telephonic conversation, or often no conversation at all, and without seeing or physically examining the patient, and without regard for medical necessity. The indictment also alleges that the telemedicine companies paid Manning a fee “per visit,” constituting illegal
kickbacks and bribes in exchange for signing doctors’ orders and prescriptions.
If convicted, Manning faces up to 10 years in prison on each count.
This case is being investigated by the U.S. Department of Health & Human Services-Office of Inspector General and the FBI, with the assistance of the Cheatham County Sheriff’s Office. Assistant U.S. Attorney Robert S. Levine and Trial Attorney Leslie Fisher of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Arizona Men Found Guilty of Investment FraudRead the Press Release
TUCSON, Ariz. –Last week, a federal jury found Jeffrey D. McHatton, 68, of Chandler, Arizona, and Robert B. Sproat, 60, of Mesa, Arizona, guilty on 10 counts of Securities Fraud. The case was tried before United States District Judge Rosemary Márquez. Sentencing is scheduled for September 28, 2022. Prior to trial, a third co-defendant, Robert Moss, 56, of Gilbert, Arizona, pleaded guilty to his involvement in the scheme and was sentenced to 30 months in prison.
Evidence presented at trial demonstrated that, between 2012 and 2014, McHatton, Sproat, and Moss used a religious charitable organization as a front to entice victims to invest over $1.2 million. Several of the victims targeted in the scheme were elderly. McHatton, Sproat, and Moss fraudulently promoted investments in the recovery of low alpha lead from Central America, gold from the Philippines, and diamonds from Africa, though none of the items were ever produced. McHatton, Sproat, and Moss used large portions of the investment funds for their own personal use. The victims never received a return on investments other than minimal “interest” payments derived from other victims’ money.
The FBI and the Arizona Corporation Commission conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-18-2220-TUC-RM
RELEASE NUMBER: 2022-122_McHatton et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit Justice.gov/AZ
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
91 Arrested in Crime Reduction Operation in North Carolina and South CarolinaRead the Press Release
CHARLOTTE, N.C. – A crime reduction operation in North Carolina and South Carolina has resulted in the apprehension of more than 91 individuals on charges of homicide, aggravated assault, sexual assault, robbery, kidnapping, child abuse, child sexual assault, drug distribution and gun crimes.
The enforcement operation announced today took place between July 5, 2022, and July 15, 2022, in Gaston County in North Carolina and York County in South Carolina, with special emphasis placed on communities within Gastonia, N.C. and Rock Hill, S.C.
Led by the U.S. Marshals Service, “Operation Washout” is a violent crime reduction initiative that brings together federal, state and local law enforcement, and focuses on improving safety in local communities by identifying and removing fugitives, violent criminals, self-identified gang members, sex offenders, drug traffickers, and parole violators.
“Criminal activity impacts the well-being of our communities,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “I commend the law enforcement agencies that took part in this crime reduction initiative. As we work together to build stronger relationships with our communities, we must hold accountable those who continue to spread violence and pose a threat to our citizens’ safety.”
“Our commitment to strengthen, protect and safeguard our communities is showcased by the collaborative effort of all the agencies involved in this operation,” said Chris Edge, Acting U.S. Marshal of the U.S. Marshals Service in the Western District of North Carolina. “It also serves as a somber reminder that if you commit a crime and think by fleeing the county or state the United States Marshals Service will find you, wherever you hide.”
Partnering agencies included the U.S. Marshals Service in North Carolina and South Carolina and the U.S. Marshals Service’s Carolinas Regional Fugitive Task Force, the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), the U.S. Attorney’s Office for the Western District of North Carolina, the U.S. Attorney’s Office for the District of South Carolina, the U.S. Probation Office for the Western District of North Carolina, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the South Carolina Highway Patrol, the North Carolina Department of Public Safety, the Gaston County Police Department, the City of Gastonia Police Department, the Gaston County Sheriff’s Office, the Gaston County District Attorney’s Office, the Rock Hill Police Department, the York County Sheriff’s Office, and the York County Solicitor’s Office.
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72-Year-Old Sentenced to 15 Years in Prison for Attempted Bank RobberyRead the Press Release
A 72-year-old El Paso man was sentenced today to 15 years in federal prison for attempted bank robbery, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
James Earl Green, Jr. was first charged in August 2020. He was convicted at trial in April and sentenced Thursday by U.S. District Judge James Wesley Hendrix.
According to evidence presented at trial, at approximately 7:40 a.m. on Sept. 24, 2019, Mr. Green accosted a First State Bank employee as she was attempting to enter the bank for opening.
Mr. Green held a handgun to the employee’s head and pushed her inside the bank, where he held her for approximately 20 minutes. During that time, surveillance video caught the defendant on camera pacing back and forth with an identifiable limp.
A second bank employee arrived at 7:57 a.m., and a struggle ensued. During the melee, Mr. Green struck the first employee on the head with his handgun. He then fled on foot without obtaining any money, leaving his two duffel bags behind.
At today’s sentencing hearing, one of the employees recounted that she still suffered anxiety stemming from the attack.
“Every single time I walk through the back door or my workplace, I clearly see the robber coming out of the bushes and holding his gun on me. I can still hear his voice telling me that he was going to kill me if I tried anything. I can clearly hear him say that if I tried to warn my co-worker, he would kill her and that it would be my fault,” she said in a statement to the court. “Even as time has passed, this crime is still so fresh on my mind, like it happened only yesterday.”
Following the incident, an anonymous tipster notified the Abilene Police Department that a gold Cadillac had been parked across the street from the bank the morning before the robbery. Law enforcement then identified the Cadillac – a four door sedan with its front right hub cap cover missing – in surveillance video pulled from the bank’s vicinity. An employee of the City of Abilene narrowed down gold Cadillacs from a list of more than 11,000 to locate a matching gold Cadillac belonging to Mr. Green.
After learning that Mr. Green lived in El Paso, officers reached out to an individual there that knew him, who reviewed the bank surveillance video and noted that the robber in the video walked in a similar manner to Mr. Green, who wore a prosthetic leg. She also shared a photo of Mr. Green’s Cadillac, which was gold and missing its front right hub cap cover.
Meanwhile, the Texas Department of Public Safety’s Crime Lab extracted a DNA profile from the duffel bag, ran it through the FBI’s Combined DNA Index System (CODIS), and found a match to a sample from Mr. Green. Additionally, a member of the FBI’s Cellular Analysis Survey Team obtained historical cell phone data from Mr. Green’s cell phone provider and placed Mr. Green’s cell phone traveling to Abilene from El Paso days before the attempted bank robbery and returning from Abilene to El Paso immediately following the attempted robbery.
The Abilene Police Department, the Federal Bureau of Investigation’s Dallas and El Paso Field Offices, and the Texas Department of Public Safety’s Crime Laboratory conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Ryan Redd tried the case.
21 Charged, Including Hospital and Lab CEOs, in Connection with Multistate Healthcare Kickback ConspiracyRead the Press Release
TYLER, Texas – The Department of Justice announced criminal charges against 36 defendants in 13 federal districts across the United States for more than $1.2 billion in alleged fraudulent telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes.
In connection with this national effort, the U.S. Attorney’s Office for the Eastern District of Texas has charged 21 individuals, including doctors, laboratory executives, hospital executives, and marketers for their involvement in healthcare kickback and money laundering conspiracies. Former True Health Diagnostics LLC CEO Christopher Grottenthaler, former Boston Heart Diagnostics Corporation Susan L. Hertzberg, former Rockdale Hospital d/b/a Little River Healthcare CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). Additionally, 33 doctors and healthcare executives have agreed to pay over $32 million in order to resolve False Claims Act allegations for their involvement in the scheme. The criminal and civil cases allege that the defendants unlawfully enriched themselves by paying and receiving illegal kickbacks in exchange for laboratory referrals.
Criminal Cases
U.S. v. Hertzberg, et al
Susan L. Hertzberg, 64, of New York, Matthew John Theiler, 56, of Mars, Pennsylvania, David Weldon Kraus, 64, Loudon, Tennessee, Jeffrey Paul Parnell, 54, of Tyler, Texas, Thomas Gray Hardaway, 49 of San Antonio, Texas, Laura Spain Howard, 48, of Allen, Texas, Jeffrey Paul Madison, 47, Georgetown, Texas, Todd Dean Cook, 57, Wimauma, Florida, William Todd Hickman, 59, of Lumberton, Texas, Christopher Roland Gonzales, 45, of McKinney, Texas, Ruben Daniel Marioni, 37, of Spring, Texas, Jordan Joseph Perkins, 38, of Conroe, Texas, Elizabeth Ruth Seymour, 39, of Corinth, Texas, Linh Ba Nguyen, 58, of Dallas, Texas, Thuy Ngoc Nguyen, 54, of Dallas, Texas, Joseph Gil Bolin, 50, of Dallas, Texas, Heriberto Salinas, 62, of Cleburne, Texas, and Hong Davis, 54, of Lewisville, Texas were indicted for conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs. The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to critical access hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to order, arrange for, or recommend the ordering of services from critical access hospitals and an affiliated lab in violation of the Anti-Kickback Statute.
Two Texas critical access hospitals, Little River Healthcare (LRH) based in Rockdale, Texas, and Stamford Memorial Hospital based in Stamford, Texas, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in blood testing. For a fee, BHD allowed the hospitals to bill their blood tests to insurers as purported hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory. The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas. In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals. Pursuant to the alleged kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly. BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions. Between July 1, 2015, and January 9, 2018, at least $11,256,241.68 in illegal kickback payments were exchanged by the defendants in furtherance of the conspiracy.
On May 24, 2022, Laura Howard pleaded guilty to her involvement in the kickback conspiracy.
On July 20, 2022, Ruben Marioni pleaded guilty to his involvement in the kickback conspiracy.
U.S. v. Peter Bennett
Peter Bennett, 47, of Houston, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his role in laundering the proceeds of the kickback conspiracy. To that end, he allegedly created sham trusts and shell corporations through which he laundered the kickback proceeds, and in furtherance of the money laundering conspiracy, Bennett laundered at least $2,724,080.41 in kickback proceeds.
U.S. v. Stephen Kash
Stephen Kash, 48, of Winnie, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his involvement in the money laundering conspiracy. Kash allegedly had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy.
U.S. v. Robert O’Neal
Robert O’Neal, 63, of San Antonio, Texas, was charged by information with conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). O’Neal was charged for his involvement in the kickback conspiracy and money laundering conspiracy. His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to critical access hospitals and an affiliated lab. O’Neal also had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy.
On January 18, 2022, O’Neal pleaded guilty to his involvement in the kickback conspiracy and the money laundering conspiracy.
The criminal cases were investigated by the Defense Criminal Investigative Services (DCIS), U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Veteran Affairs, Office of Inspector General (VA-OIG), and the Federal Bureau of Investigation Dallas – Frisco Resident Agency. They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and J. Kevin McClendon.
Civil Cases and Settlements
Boston Heart Diagnostics Corporation, 33 doctors, and healthcare executives have agreed to pay over $32 million to resolve False Claims Act allegations for their involvement in a scheme to pay and receive illegal kickbacks in exchange for laboratory referrals. Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan L. Hertzberg, former Little River CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). The United States filed an amended complaint in May 2022.
The civil settlements resolve allegations that doctors and healthcare executives violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from nine MSOs in exchange for ordering laboratory tests from Little River, True Health, and/or Boston Heart. Little River allegedly funded the remuneration to certain doctors in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.
The civil settlements are the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. The civil cases are being handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any patients who believe that they have been contacted as part of a fraudulent telemedicine, clinical laboratory, or DME scheme should call to report this conduct to HHS-OIG at 1-800-HHS-TIPS.
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20 July 2022
Winner Man Sentenced for Firearm ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Winner, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on July 19, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Cameron Fanning, age 24, was sentenced to 36 months in federal prison, followed by three years of supervised release, forfeiture of the firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fanning was indicted by a federal grand jury on December 14, 2021. He pled guilty on April 28, 2022.
The conviction stemmed from an incident that occurred on August 6, 2021, in Mission, South Dakota. On that date, the Rosebud Sioux Tribe Law Enforcement Services responded to a report of an individual driving erratically. Law enforcement made contact with the lone male occupant. The occupant fled the scene, which led to his arrest and search of the vehicle, where a handgun was located in the vehicle. Fanning had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, making it illegal for him to possess firearms.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Fanning was immediately turned over to the custody of the U.S. Marshals Service.
Waterbury Drug Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL MUNN, 55, of Waterbury, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by five years of supervised release, for participating in a narcotics conspiracy.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Louie McDowell was supplying large quantities of heroin and cocaine to Munn and others, who then sold the drugs to other distributors and drug users.
On January 8, 2019, Munn, McDowell and 10 other individuals were charged in a superseding indictment with various narcotics distribution and firearm distribution offenses. Munn was arrested on January 15, 2019. On January 15, 2020, he pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute controlled substances.
Munn, who is released on a $100,000 bond, is required to report to prison on August 23.
McDowell, of Seymour, pleaded guilty and, on July 13, 2022, was sentenced to 66 months of imprisonment.
The other 10 defendants also pleaded guilty.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington, Indiana Drug Dealer Sentenced to 46 Months in Federal Prison for Dealing Methamphetamine and Illegal Possession of FirearmsRead the Press Release
EVANSVILLE – Matthew V. Palmer-Coy, 26, of Washington, Ind., was sentenced late yesterday to 46 months in federal prison after pleading guilty to possession of a firearm and ammunition by a prohibited person and possession with intent to distribute methamphetamine.
According to court documents, on May 23, 2021, a Washington Police Officer stopped Palmer-Coy in the vehicle he was driving after observing a traffic violation. A K-9 officer alerted to the presence of illegal narcotics in the car and officers searched the vehicle. During the search, officers found a lockbox containing a firearm with an altered serial number, individually wrapped baggies of methamphetamine, clear glass pipes, unused plastic baggies, a digital scale, ammunition, and a notebook that appeared to be a drug ledger. Palmer-Coy knew he was unauthorized to possess firearms or ammunition as he was previously convicted of felony charges of neglect and possession of methamphetamine in Daviess County, Ind.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, made the announcement.
ATF investigated the case. The Washington Police Department also provided valuable assistance. The sentence was imposed by U.S. District Court Judge Richard L. Young. As part of the sentence, Judge Young ordered that Palmer-Coy be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew Miller who is prosecuting the case.