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20 July 2022
Washington County Man Sentenced for Possessing Destructive Devices and Other FirearmsRead the Press Release
ALBANY, NEW YORK – Daniel Day, age 35, of Argyle, New York, was sentenced today to 51 months in prison for unlawful possession of destructive devices, firearms and ammunition.
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, Day admitted to possessing the component parts necessary to assemble and create three homemade, improvised explosive devices at his residence in Argyle on August 5, 2021. Day also admitted to possessing other firearms and ammunition at his residence, including a submachinegun, a sawed-off shotgun, and a 3D-printed pistol without a serial number. None of the firearms were registered to Day as required by federal law, and Day had a prior felony conviction that prevented him from possessing the firearms and ammunition. As part of his plea agreement, Day agreed to abandon and forfeit all the bomb-making materials and chemicals, firearms, firearm parts and ammunition found at his residence.
Chief United States District Judge Glenn T. Suddaby also ordered Day to serve a 3-year term of supervised release following his prison sentence.
This case was investigated by the Joint Terrorism Task Force (JTTF), which includes members of the FBI and New York State Police, and was prosecuted by Assistant U.S. Attorneys Alexander Wentworth-Ping and Richard Belliss.
U.S. Attorney and New Jersey Acting Attorney General Join Forces in Support of Continued Access to Reproductive Health CareRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger joined New Jersey Acting Attorney General Matthew J. Platkin today to announce their continued commitment to ensure that women in New Jersey have access to reproductive health care services in the wake of the U.S. Supreme Court’s Dobbs decision overturning Roe v. Wade.
“The U.S. Attorney’s Office for the District of New Jersey – and the entire Justice Department – will do everything within our power to protect reproductive freedom,” U.S. Attorney Sellinger said. “Despite the Court’s decision, abortion remains legal in New Jersey. We will work tirelessly to ensure women’s unobstructed access to reproductive health services throughout New Jersey, including access to abortion services, so that women may consult with their medical providers to make important and personal decisions about their bodies and their lives.”
“As other states impose draconian penalties on patients and health care professionals who seek or provide abortion care, New Jersey has chosen a very different path. We are using every available tool at our disposal to keep abortion patients and their providers safe,” Acting Attorney General Platkin said. “We’re proud to work side-by-side with Governor Murphy, the U.S. Attorney’s Office, and the federal government to protect access to reproductive health care.”
U.S. Sellinger and Acting Attorney General Platkin made the joint announcement today at a press conference in Newark.
U.S. Attorney Sellinger and Acting Attorney General Platkin emphasized their commitment to have open lines of communications and, when appropriate, to share intelligence and information in order to facilitate efficient decision-making in protecting reproductive rights. They also announced plans for their offices to work together to conduct a series of outreach sessions with stakeholders, such as reproductive service providers and advocates, to send a clear message that law enforcement at all levels will protect reproductive rights.
U.S. Attorney Sellinger reiterated U.S. Attorney General Merrick B. Garland’s strong disagreement with the Dobbs ruling and its far-reaching impact on people, particularly people of color and limited financial resources.
“While the right to control one’s own body is central to individual freedom, the Court’s decision denies millions of women that right by preventing them from being able to make critical and highly personal decisions about their bodies, their health, and their futures,” U.S. Attorney Sellinger said.U.S. Attorney Sellinger promised continued enforcement of the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits obstructing access to reproductive health services through violence, threats of violence, or property damage. He said women who live in New Jersey – or who travel to New Jersey – will continue to have unobstructed access to reproductive health services, including abortion services.
The Office’s newly created Civil Rights Division will lead the Office’s enforcement and outreach efforts. The Division brings together civil and criminal prosecutors into one division focused on protecting vitally important civil rights, including the right to access reproductive health care.
Anyone with knowledge of FACE Act violations can contact the office through the civil rights hotline at 855-281-3339 or through the complaint portal on the U.S. Attorney’s Office, District of New Jersey, website: District of New Jersey.
Two Nashville Men Headed to Federal Prison in "Blue Heroin" Distribution ConspiracyRead the Press Release
NASHVILLE – Two Nashville men indicted in February 2020 as part of a deadly heroin and fentanyl distribution network are headed to federal prison to serve lengthy prison sentences, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Marquel Peoples, aka Worm, 26, and Christopher Johnson, 28, have each made appearances in U.S. District Court to answer a 15-count indictment, which charged them with conspiracy to distribute and possession with intent to distribute heroin, fentanyl, and carfentanil, and various counts of possession with intent to distribute and distribution of heroin and fentanyl. Peoples and Johnson were also charged with being responsible for the distribution of more than 400 grams of fentanyl, and with possessing firearms in furtherance of drug crimes. The indictment also alleged that the fentanyl distributed by Peoples resulted in serious bodily injury to others and resulted in the death of one individual.
Peoples pleaded guilty yesterday to eight counts of the indictment under a binding plea agreement, which, if accepted by the Court, will require him to serve 16 years in prison when he is sentenced later this year. Johnson pleaded guilty in October 2021 to seven counts of the indictment and was sentenced in May to 70 months in prison.
“The U.S. just recorded its highest number of overdose deaths on record, surpassing 100,000 in 2021,” said U.S. Attorney Wildasin. “The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue those who fuel this deadly epidemic by illegally distributing these deadly substances.”
According to documents filed with the Court, in the summer of 2019, law enforcement became aware of reports of blue-tinted drugs, which were causing overdoses in the middle Tennessee area. Through a series of investigative efforts, law enforcement acquired blue-tinted drugs from Peoples, Johnson, and Blaine Ellis, and subsequent testing determined that those drugs contained heroin and fentanyl. During one operation, Peoples claimed responsibility for the blue drugs, saying, “[I]f you got the blue stuff … [you] got it from us.” The investigation also linked a fatal overdose in March 2019 to the conspiracy.
Blaine Ellis, 32, of LaVergne, Tenn., was also charged in this case with possession with intent to distribute heroin and fentanyl. He pleaded guilty in June 2021 and is scheduled to be sentenced in November.
This investigation was conducted by the Drug Enforcement Administration’s Nashville District Office Tactical Diversion Squad; the Tennessee Bureau of Investigation Opioid/Overdose Task Force; the Metropolitan Nashville Police Department SID Gang Unit; the Lavergne Police Department; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Spring Hill Police Department. Assistant U.S. Attorneys Amanda J. Klopf and Rascoe Dean are prosecuting the case.
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Two Miami-Area Men Sentenced in Connection with Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Hugo Hernandez, age 35, of Miami Lakes, Florida, was sentenced today to 60 months in prison for his roles in an access device fraud conspiracy and a money laundering conspiracy. Marlon Palacios, age 38, of Cape Coral, Florida, was sentenced today to four months in jail for his role in an access device fraud conspiracy and for committing aggravated identity theft. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
As part of his guilty plea on October 22, 2021, Hernandez admitted that between December 2015 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fraudulent credit and debit cards. The fraudulent cards were used to obtain money orders, gift cards, cash, and other things of value. Hernandez also admitted to being part of a conspiracy to launder funds obtained through the access device fraud conspiracy, and, in facilitating that conspiracy, causing at least 162 money orders, worth $173,257, to be deposited into a bank account he controlled. As part of his plea agreement, Hernandez agreed to be subject to a forfeiture money judgment in the amount of $173,257.
As part of his guilty plea on April 14, 2021, Palacios admitted to being a part of the same access device fraud conspiracy described above. Palacios also admitted to committing aggravated identity theft by sending or receiving e-mails that contained debit and credit card account information of victims who had had their card data skimmed and stolen by members of the access device fraud conspiracy. As part of his plea agreement, Palacios agreed to be subject to a forfeiture money judgment in the amount of $25,000.
Senior United States District Judge Gary L. Sharpe also imposed a three-year term of supervised release on Hernandez to follow his term of incarceration, and a one-year term of supervised release on Palacios to follow his term of incarceration.
This case was investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case was prosecuted by Assistant U.S. Attorney Rick Belliss.
Two Mexican Nationals Indicted for Illegal Firearms PossessionRead the Press Release
SAN ANTONIO – A federal grand jury in San Antonio returned an indictment today charging Juan Claudio D’Luna-Mendez, 23, and Juan Francisco D’Luna-Bilbao, 48, both citizens of Mexico, with one count each of possession of a firearm while unlawfully present in the United States.
According to court documents, the registration for a tractor trailer used in an attempted human smuggling event came back to a residence in San Antonio. San Antonio Police Department officers set up surveillance on the residence and observed two males leaving in separate trucks. After traffic stops on both trucks, the drivers were identified as D’Luna-Mendez and D’Luna-Bilbao. D’Luna-Bilboa was in possession of a handgun that was found in the center console of the truck he was driving. A search warrant was executed at the residence where additional firearms were located.
If convicted, both defendants face up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Both defendants have remained in federal custody since their arrests on June 27, 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski made the announcement.
The ATF, with valuable assistance from the San Antonio Police Department, is investigating the case.
Assistant U.S. Attorneys Amanda Brown and Sarah Spears are prosecuting the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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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Two Men Sentenced for Roles in Large-Scale Crystal Methamphetamine Distribution ConspiraciesRead the Press Release
LEXINGTON, Ky. — Two men, in separate cases, were sentenced on Monday, by Chief U.S. District Judge Danny C. Reeves, for their roles in two conspiracies to distribute considerable amounts of crystal methamphetamine.
William R. Hargis, 24, of Danville, Ky., was sentenced to a total of 420 months in federal prison. Hargis previously pled guilty to conspiracy to distribute and possession with intent to distribute 52.5 pounds of crystal meth, possession of firearms in furtherance of drug trafficking, and conspiracy to commit money laundering.
According to Hargis’ plea agreement, in May 2021, law enforcement was conducting a narcotics investigation regarding a group of individuals engaged in distributing crystal methamphetamine in Lexington. Law enforcement conducted a traffic stop where they found Hargis in possession of methamphetamine, cocaine, marijuana, a digital scale, plastic bags, and cash. Upon further investigation, it was determined that Hargis was a drug supplier and was storing, packaging, and cutting narcotics in a Lexington office building. In that office, law enforcement found more than 50 pounds of methamphetamine, four firearms, cocaine, and additional drug trafficking items.
Furthermore, Hargis also admitted to travelling from the Kentucky to Southern Indiana casinos to engage in financial transactions, by placing monetary bets to conceal the source of the bets, which was in whole or part proceeds from the drug trafficking.
In a second case, Deangelo Devon Grant, 36, of Los Angeles, was sentenced to 264 months in federal prison, after previously pleading guilty to conspiracy to distribute and possession with intent to distribute crystal methamphetamine.
According to Grant’s plea agreement, on August 16, 2021, Grant received a package that had been shipped from California to Lexington, which contained approximately 48 pounds of crystal methamphetamine for distribution. Grant admitting flying from California to receive the package, in Lexington. Grant’s vehicle was stopped by law enforcement, where they discovered the methamphetamine.
Grant had previous convictions for robbery in the second degree, in California (2004), and possession with intent to distribute cocaine in the Western District of Kentucky (2016).
Both Hargis and Grant pleaded guilty in April 2022.
Under federal law, Hargis and Grant must serve 85 percent of their prison sentences. Upon their release from prison, Hargis will be under the supervision of the U.S. Probation Office for five years and Grant will be under supervision for 10 years.
“As these two cases illustrate, the amount and purity of the methamphetamine we are seeing in Eastern Kentucky is remarkable,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Illegal methamphetamine trafficking has an immense impact on our communities, and often brings guns, violence, and other crime. We remain committed to prosecuting those who engage in this grave conduct, and we hope that sentences like these will serve as a warning to those who continue to engage in it.”
“Anyone who poisons our communities through the sale of illicit drugs must be stopped and brought to justice,” said J. Todd Scott, special agent in charge of the Drug Enforcement Administration’s Louisville Division. “I’m very proud of the work done by the men and women of DEA and our law enforcement counterparts in both of these cases.”
United States Attorney Shier; DEA SAC Scott; Colonel Phillip Burnett Jr. Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.
The investigations were conducted by the DEA, KSP, and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Roger West.
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Two Men Plead Guilty to Tampering with Witnesses in a Federal Carjacking CaseRead the Press Release
Two Tulsa men have been convicted in federal court for tampering with witnesses who were slated to testify in court proceedings regarding a carjacking, announced U.S. Attorney Clint Johnson.
Ulysses Semion Washington, 34, and Derius Donovan Ledet, 32, each pleaded guilty to tampering with a witness, victim, and informant by corrupt persuasion. Washington opted to plead guilty as his trial was set to begin Wednesday. Ledet pleaded guilty on July 8, 2022.
“Maintaining the integrity of our justice system is of the utmost importance. The U.S. Attorney’s Office will not tolerate any act that seeks to obstruct our federal court processes,” said U.S. Attorney Clint Johnson.
According to court documents, in late March of 2022, Ledet was being held at the David L. Moss Criminal Justice Center on charges related to an armed carjacking incident. On March 23, 2022, Ledet called Washington several times to discuss ways to get Ledet released from detention. Ledet instructed Washington to “put in some footwork” in an effort to prevent two witnesses from communicating with law enforcement about the case and to prevent their testimony in official court proceedings. Ledet also told Washington to pay off the witnesses with money obtained from selling one of Ledet’s cars.
Days later, Washington offered to pay the witnesses money if they would write affidavits that stated they would not cooperate in the pending carjacking case. Both witnesses were subpoenaed to make appearances in federal proceedings but neither showed.
Even after being indicted and as recently as July 5, 2022, Washington continued his attempts to contact one of the witnesses.
Per the stipulations in his plea agreement, Washington faces eight to 13 years in prison. Ledet faces a maximum of 20 years in prison. A federal judge will consider the U.S. Sentencing Guidelines and other statutory factors when determining appropriate sentences for both men. They will be sentenced at a later date.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Justin G. Bish and Ben Tonkin are prosecuting the case.
Two Men Plead Guilty to Tampering with Witnesses in a Federal Carjacking CaseRead the Press Release
Two Tulsa men have been convicted in federal court for tampering with witnesses who were slated to testify in court proceedings regarding a carjacking, announced U.S. Attorney Clint Johnson.
Ulysses Semion Washington, 34, and Derius Donovan Ledet, 32, each pleaded guilty to tampering with a witness, victim, and informant by corrupt persuasion. Washington opted to plead guilty as his trial was set to begin Wednesday. Ledet pleaded guilty on July 8, 2022.
“Maintaining the integrity of our justice system is of the utmost importance. The U.S. Attorney’s Office will not tolerate any act that seeks to obstruct our federal court processes,” said U.S. Attorney Clint Johnson.
According to court documents, in late March of 2022, Ledet was being held at the David L. Moss Criminal Justice Center on charges related to an armed carjacking incident. On March 23, 2022, Ledet called Washington several times to discuss ways to get Ledet released from detention. Ledet instructed Washington to “put in some footwork” in an effort to prevent two witnesses from communicating with law enforcement about the case and to prevent their testimony in official court proceedings. Ledet also told Washington to pay off the witnesses with money obtained from selling one of Ledet’s cars.
Days later, Washington offered to pay the witnesses money if they would write affidavits that stated they would not cooperate in the pending carjacking case. Both witnesses were subpoenaed to make appearances in federal proceedings but neither showed.
Even after being indicted and as recently as July 5, 2022, Washington continued his attempts to contact one of the witnesses.
Per the stipulations in his plea agreement, Washington faces eight to 13 years in prison. Ledet faces a maximum of 20 years in prison. A federal judge will consider the U.S. Sentencing Guidelines and other statutory factors when determining appropriate sentences for both men. They will be sentenced at a later date.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Justin G. Bish and Ben Tonkin are prosecuting the case.
Two Men Charged with 2002 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, Police Commissioner for the City of New York (“NYPD”), announced the unsealing of an indictment charging RICARDO AYALA, a/k/a “Richie,” and TERRIS OLIVER, a/k/a “T-Bird,” with murder in furtherance of drug trafficking in connection with the murder of Atari Felton on March 27, 2002 in the Bronx, New York. AYALA was arrested yesterday and was presented before U.S. Magistrate Judge Ona T. Wang. OLIVER is still at large. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams said: “We allege that over 20 years ago, Ricardo Ayala and Terris Oliver participated in the murder of Atari Felton, who was just 19 years old. Thanks to the extraordinary partnership of the NYPD and the Special Agents of our office, the defendants are charged in federal court for this decades-old murder. No matter how long it takes, we will tirelessly work to hold murderers accountable for their crimes.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
On March 27, 2002, AYALA and OLIVER planned and carried out the murder of Atari Felton, who was 19 years old. AYALA and OLIVER committed the murder in furtherance of a conspiracy to distribute more than 280 grams of crack cocaine and quantities of cocaine, heroin, and marijuana.
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AYALA, 42, and OLIVER, 40, are each charged with one count of murder in furtherance of drug trafficking, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of twenty years in prison; and one count of murder through the use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison.
Mr. Williams praised the investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the NYPD’s Cold Case Squad. Mr. Williams added that the investigation is continuing.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Mathew Andrews, Frank Balsamello, and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Two Indicted by Federal Grand Jury for Possessing with the Intent to Distribute Cocaine and FentanylRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment today charging Roberto Soto-Mora and Hector Manuel Soto-Alvarez, both of Texas, with conspiring to possess with the intent to distribute and possessing with the intent to distribute cocaine and fentanyl.
According to the indictment, Soto-Mora, 65, and Soto-Alvarez, 25, are both charged with conspiracy to possess with the intent to distribute five kilograms or more of cocaine and 400 grams or more of fentanyl, possession with the intent to distribute five kilograms or more of cocaine, and possession with the intent to distribute 400 grams or more of fentanyl.
They were both previously charged by criminal complaint on July 11, 2022. The complaint alleged that both men traveled together from Texas to Louisville on July 10, 2022. The defendants consented to a search of their vehicle by law enforcement officers in Louisville on that day. In their vehicle officers found 30 kilograms of suspected cocaine and one kilogram of suspected fentanyl. Both men were federally arrested on July 10th.
Soto-Mora and Soto-Alvarez are both scheduled to appear on July 21, 2022, before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky for their arraignments. If convicted, both face a mandatory minimum of 10 years in prison, and a maximum of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and J. Todd Scott, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Division, made the announcement.
The Drug Enforcement Administration, the Louisville Metropolitan Police Department, and the Jeffersontown Police Department are investigating the case.
Assistant U.S. Attorney Mac Shannon is prosecuting the 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.
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Two Florida Medical Study Coordinators Plead Guilty in Connection with Scheme to Falsify Clinical Trial DataRead the Press Release
Two Florida women pleaded guilty today in connection with their participation in a conspiracy to falsify clinical trial data.
According to court documents, Analay Rico, 37, of Fort Lauderdale, and Daylen Diaz, 44, of Miami, worked as study coordinators at a clinical research site called Tellus Clinical Research. As part of their plea agreements, Rico and Diaz admitted that they agreed with others to defraud clients paying for clinical trial work intended to evaluate treatments for various medical conditions, including opioid dependency, irritable bowel syndrome and diabetic nephropathy. Among other things, Rico and Diaz admitted they falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“Clinical trials are the foundation of the drug approval process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work with its law enforcement partners to prosecute those who falsify clinical trial data for personal profit.”
“The public relies on the accuracy of clinical trial data,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Falsifying clinical data endangers the safety of consumers and violates the public’s trust. It is a serious crime that we will continue to vigorously prosecute.”
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (FDA-OCI) Miami Field Office. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
Duniel Tejeda, 36, of Clewiston, Florida, Eduardo Navarro, 53, of Miami, Florida, and Nayade Varona, 51, of Port St. Lucie, Florida, previously pleaded guilty and were sentenced to 30 months in prison, 46 months in prison, and 30 months in prison, respectively, for their roles in the scheme. The trial is set for Sept. 27, in the case of three other defendants, Dr. Martin Valdes, 66, of Coral Gables, Florida, Fidalgis Font, 55, of Miami, and Julio Lopez, 55, of Hialeah, all charged by indictment in connection with Tellus.
FDA-OCI is investigating the case.
Trial Attorneys Lauren M. Elfner, Joshua D. Rothman and Wandaly Fernández García of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida has provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Troy Man Sentenced for Wire FraudRead the Press Release
ALBANY, NEW YORK - John R. Paeglow III, age 65, of Troy, New York, was sentenced today to three years of supervised release, and to perform 100 hours of community service, in connection with a scheme to defraud a commercial finance company that provided receipt factoring services to his former book printing business.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his previously entered guilty plea, Paeglow admitted that, between October and December 2014, he fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company in order to obtain the funds in exchange for the sale of books that, in fact, had not been sold or shipped.
Senior United States District Judge Frederick J. Scullin, Jr. also ordered Paeglow to pay restitution of $220,000 to the victim finance company, and a further $11,410 to reimburse the union that represented the IBT/Hamilton employees whose health care premiums Paeglow was also charged with embezzling.
This case was jointly investigated by U.S. DoL-OIG and the NYSP Financial Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Treatment Clinic Owner Convicted of Unlawfully Distributing OpioidsRead the Press Release
A federal jury convicted a Tennessee physician yesterday in the Middle District of Tennessee for unlawfully distributing opioids from his Smyrna clinic.
According to court documents and evidence presented at trial, Hau T. La, 54, of Brentwood, owned and operated Absolute Medical Care (AMC), which closed in the Spring of 2021. At AMC, La purportedly provided addiction treatment as his primary practice, but nevertheless prescribed opioid pain pills to some of his patients despite red flags for addiction and abuse. AMC, which did not accept health insurance, charged patients $200-$350 cash, credit, or debit, per visit and was only open on Fridays. La rarely spent more than a few minutes with the patients to whom he provided unlawful opioid prescriptions.
La was convicted of 12 counts of unlawful distribution of a controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose. He faces a maximum of 20 years in prison for each of these convictions. La was acquitted on four counts of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for Jan. 5, 2023.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee; Special Agent in Charge Douglas Korneski of FBI Memphis Field Office, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA) Louisville Field Division; Director David Rausch of the Tennessee Bureau of Investigation (TBI); and Special Agent in Charge Tamala E. Miles of the Department of Health and Human Service Office of the Inspector General (HHS-OIG) Atlanta Region made the announcement.
FBI, HHS-OIG, TBI, and DEA investigated the case.
Trial Attorneys Leslie Fisher and Emily Petro of the Criminal Division’s Fraud Section are prosecuting the case.
Three Effingham County Residents Charged with Methamphetamine OffensesRead the Press Release
BENTON, Ill. – Kimberly J. Atkins, 45, of Effingham, Illinois, Tyler R. Schumacher, 36, of
Altamont, Illinois, and Jennifer M. Hazlett, 34, of Altamont, Illinois, were each charged in a separate federal Indictment with methamphetamine related offenses on Wednesday, July 13, 2022.Atkins was charged in a five-count indictment. Counts 1-4 charge that Atkins distributed methamphetamine on January 24, 2022, January 26, 2022 (two times), and March 9, 2022. Count 5 charges that on April 11, 2022, Atkins possessed methamphetamine with the intent to distribute it.
All the crimes are alleged to have occurred in Effingham County, Illinois.With respect to Atkins, Counts 1 and 5 each carry penalties of up to 20 years imprisonment, up to a
$1,000,000 fine, and supervised release of not less than 3 years. Counts 2-4 each carry penalties of a minimum of 5 years up to 40 years imprisonment, up to a $4,000,000 fine, and supervised release not less than 4 years.Schumacher was charged in a two-count indictment. Count 1 charges that from about 2019, until on or about June 3, 2022, in Effingham County, within the Southern District of Illinois, Kentucky, and elsewhere, Schumacher conspired with others to distribute more than 50 grams of methamphetamine.
Count 2 charges that on February 22, 2022, in Effingham County, Schumacher possessed with intent to distribute more than 5 grams of methamphetamine.With respect to Schumacher, count 1 carries penalties of a minimum of 10 years up to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years. Count 2 carries penalties of a minimum of 5 years up to 40 years imprisonment, up to a $4,000,000 fine, and supervised release not less than 4 years.
Hazlett was charged in a two-count indictment. Count 1 charges that on March 23, 2022, in
Effingham County, Hazlett distributed more than 50 grams of methamphetamine. Count 2 charges that on March 30, 3022, in Effingham County, Hazlett distributed more than 5 grams of methamphetamine.With respect to Hazlett, count 1 carries penalties of a minimum of 10 years up to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years. Count 2 carries penalties of a minimum of 5 years up to 40 years imprisonment, up to a $4,000,000 fine, and supervised release not less than 4 years.
An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Effingham County Sheriff's Department, the Effingham City
Police Department, and the Southeastern Illinois Drug Task Force. Assistance was also provided by the Effingham County State’s Attorney’s Office.Third Ohio Gambling Business Owner Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
A Florida man pleaded guilty today to conspiring to defraud the IRS in connection with his ownership and operation of illegal gambling businesses in Canton.
According to court documents and statements made in court, from 2009 through 2018, Larry Dayton, 46, along with Jason Kachner, Rebecca Kachner, and other co-conspirators, owned and operated two illegal gambling businesses, Skilled Shamrock and Redemption. Dayton admitted to conspiring with others to defraud the IRS by filing false tax returns that omitted the cash income he received from the gambling businesses and by using a nominee to conceal his ownership. From 2012 through 2017, Dayton did not report more than $2 million in income he received from Skilled Shamrock and Redemption. Dayton and others also created a false “purchase agreement” where he purported to sell the assets of the gambling business to a nominee owner’s entity.
A sentencing hearing for Dayton will be scheduled at a later date. He faces a maximum penalty of five years in prison for conspiring to defraud the IRS. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On July 14, Jason and Rebecca Kachner pleaded guilty for participating in the tax conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation, the U.S. Department of the Treasury, Office of the Inspector General, the Ohio Casino Control Commission, and the Ohio Casino Control Commission are investigating the case. Homeland Security Investigations provided substantial assistance.
Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio are prosecuting the case.
Tampa Man Arrested for Fraudulently Using Federal GSA Smartpay Account NumbersRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest and indictment of Darius Lopez (27, Tampa) charging him with one count of access device fraud and one count of aggravated identity theft. If convicted, Lopez faces up to 10 years in federal prison for the fraud count and a consecutive 2 years’ imprisonment for the aggravated identity theft count.
According to court records, on April 13, 2021, Lopez purchased more than $27,0000 worth of landscaping equipment from a tractor dealer in Citrus County. During the transactions, Lopez used the unauthorized account numbers of four Department of Agriculture General Services Administration (GSA) Smartpay charge cards. The account numbers were fraudulently embossed on PayPal and 7-Eleven prepaid debit cards. GSA SmartPay provides services to more than 560 Federal agencies, organizations, and Native American tribal governments. Its payments solutions enable authorized government employees to make purchases on behalf of the federal government in support of their agency or organization’s mission.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the General Services Administration - Office of Inspector General with assistance from the following agencies and financial institutions: U.S. General Services Administration - Office of Inspector General (Southeast and Caribbean Regional Investigations Office), U.S. Department of Agriculture - Office of Inspector General (Southeast Region), Amtrak - Office of Inspector General (Central Region), U.S. Secret Service Orlando Cyber Fraud Task Force, Citrus County Sheriff's Office, U.S. Bank, Synchrony Bank Special Investigations Team, and Morgan Stanley Corporate Security. It is being prosecuted by Assistant United States Attorneys Hannah Nowalk and Tyrie K. Boyer.
Syracuse Entrepreneur Sentenced to Prison for Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Dean Whittles, age 61, formerly of Syracuse, was sentenced today in federal court in Utica to 2 years in prison after previously pleading guilty to one felony count of willfully failing to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.
From 2016 through 2019, Whittles was the sole owner of multiple businesses in and around Syracuse, New York: DJ’s on the Hill and DJ’s on the Boulevard; the 317 Corporation (restaurant); and Dejon’s Hair Design, with salons in Cicero, Westvale and Skaneateles. Whittles no longer owns or operates any of the businesses at issue and recently moved to Tucson, Arizona.
In pleading guilty, Whittles admitted that he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes, even though he withheld such taxes from his employees’ paychecks. Instead, he used the money withheld from employees to pay for business and personal expenses. As revealed at sentencing, his personal expenditures with the money he withheld from the IRS included three luxury vehicles, a condominium in Arizona, and several international vacations. In total, Whittles failed to pay approximately $617,843 in payroll taxes to the Internal Revenue Service between 2016 and 2019.
As part of the sentence, United States District Judge David N. Hurd ordered Whittles to serve 3 years on supervised release after he completes his two-year term of imprisonment; to pay restitution to the IRS in the amount of $617,843; and to pay a fine of $10,000.
This case was investigated by IRS-CI, and it was prosecuted by Assistant U.S. Attorney Michael F. Perry and former Assistant U.S. Attorney Andrew Beaty.
Suburban Chicago Man Sentenced to More Than 13 Years in Federal Prison on Gun and Drug ChargesRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to more than 13 years in federal prison for illegally possessing multiple firearms and dealing heroin and crack cocaine.
BRIAN STAFFORD, 42, illegally possessed two loaded handguns and drugs in his vehicle and residence in Bellwood, Ill., on Nov. 2, 2016. A day earlier, Stafford sold 101 grams of heroin to an individual who, unbeknownst to Stafford, was cooperating with law enforcement.
A federal jury in November found Stafford guilty of one count of possessing heroin and crack cocaine with the intent to distribute, one count of illegal possession of firearms by a previously convicted felon, and one count of possessing firearms in furtherance of drug-trafficking activities.
A separate federal jury in 2019 convicted Stafford of illegally possessing three assault rifles. All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.
U.S. District Judge Robert W. Gettleman on Tuesday sentenced Stafford to 13 years and four months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and the Bolingbrook, Ill., Police Department. The government was represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Alejandro Ortega.
Spencer Man Pleads Guilty to Meth Conspiracy ChargeRead the Press Release
Kenneth Alan Block, age 35, from Spencer, Iowa, pled guilty July 19, 2022, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Block admitted that from February 2021 through September 2021, he and others distributed at least 2.5 kilograms of methamphetamine in the Spencer area. In addition, on September 29, 2021, Block was found with approximately 170 grams of ice methamphetamine after giving consent to search his car.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Block remains in custody of the United States Marshal pending sentencing. Block faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Spencer, Iowa Police Department and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4020. Follow us on Twitter @USAO_NDIA.
Sparta Woman Sentenced to 5 1/2 Years in Prison for Concealing Material Support Intended for A Foreign Terrorist OrganizationRead the Press Release
NASHVILLE – A Sparta, Tennessee, woman was sentenced in U.S. District Court on Friday, to 66 months in prison to be followed by a term of supervised release of 15 years, for concealing material support and resources intended to be provided to a Foreign Terrorist Organization, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Georgianna A.M. Giampietro, 37, was indicted by a federal grand jury in August 2019, on charges of attempting to provide material support to a designated Foreign Terrorist Organization. A superseding Information filed in January 2022 charged Giampietro with concealment of material support and resources intended to be provided to a Foreign Terrorist Organization. She pleaded guilty to the charge in January.
According to court documents, in September 2018, Giampietro had conversations with an undercover agent who expressed interest in travelling to Syria to join Hayat Tahrir Al-Sham (HTS), a designated Foreign Terrorist Organization. The undercover agent told Giampietro that her husband swore an oath of allegiance to HTS and that he intended to fight on behalf of HTS.
Giampietro initially provided instruction and advice to the undercover agent on how to travel to Syria in order to avoid detection by law enforcement. That instruction and advice included actions that the undercover agent and her husband should undertake before making the trip, like severing ties with other persons 6-8 months in advance; acquiring new phones before they traveled; and considering traveling through Turkey prior to entering Syria.
In subsequent conversations with the undercover agent, Giampietro offered to communicate with her contacts on their behalf to assist them in safely traveling to Syria to join HTS. Giampietro engaged in a series of communications with an individual whom she knew could assist the undercover and her husband for such purpose. At one point after communicating with her contact, who claimed that there was presently no jihad in Syria, Giampietro asked the undercover agent if she and her husband had considered traveling to Afghanistan since there was still fighting there.
Giampietro later provided the undercover agent with her contact’s information to assist her and her husband in their travel to Syria. When Giampietro provided that contact information to the undercover agent, Giampietro knew that HTS was a designated terrorist organization and believed that the undercover agent and her husband intended to travel to Syria to work under the direction and control of HTS, and also believed that the contact would substantially assist them in this effort. In addition, Giampietro intended that the undercover agent and her husband would provide funds to that person, who would in turn provide funds to HTS, thereby providing material support to HTS disguised as a charitable contribution.
Giampietro utilized an end-to-end encrypted social media platform to communicate with the undercover and with her contact, and in some instances utilized self-destruct timers within her communications so that those communications would automatically delete, without the possibility of recovery, after a specified time.
This case was investigated by the FBI and the Joint Terrorism Task Force. Assistant U.S. Attorneys Philip H. Wehby, Ben Schrader, and Kathryn Risinger of the Middle District of Tennessee, and Trial Attorney Jennifer Levy of the Department of Justice’s National Security Division, prosecuted the case.
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Somerset County Man Sentenced to 46 Months in Prison for Orchestrating COVID-19 FraudRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced to 46 months in prison for orchestrating a $2 million COVID-19 fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Guaravjit “Raj” Singh, 27, of Montgomery, New Jersey, previously pleaded guilty before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud. Judge Sheridan imposed the sentence on July 20, 2021, in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to defraud and to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain personal protective equipment (PPE) and then stealing the money and not providing the PPE to the victims as promised.
Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million for approximately 1.5 million medical gowns, which ultimately were to be sourced to the city of New York amid the COVID-19 pandemic. The victims wired Singh, though his company GJS Solutions LLC, $712,500, representing a 10 percent initial deposit for the medical gowns. After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses.
In addition to the prison term, Judge Sheridan sentenced Singh to three years of supervised release.
U.S. Attorney Sellinger credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Chief of the General Crimes Unit in Newark.
Smyrna Treatment Clinic Owner Convicted of Unlawfully Distributing OpioidsRead the Press Release
NASHVILLE – A federal jury in Nashville convicted a Smyrna, Tennessee, physician yesterday for unlawfully distributing opioids from his Smyrna clinic.
According to court documents and evidence presented at trial, Hau T. La, 54, of Brentwood, owned and operated Absolute Medical Care (AMC), which closed in the Spring of 2021. At AMC, La purportedly provided addiction treatment as his primary practice, but nevertheless prescribed opioid pain pills to some of his patients despite red flags for addiction and abuse. AMC, which did not accept health insurance, charged patients $200-$350 cash, credit, or debit, per visit and was only open on Fridays. La rarely spent more than a few minutes with the patients to whom he provided unlawful opioid prescriptions.
La was convicted of 12 counts of unlawful distribution of a controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose. The jury acquitted him of four counts.
La faces a maximum of 20 years in prison on each count. Sentencing is scheduled for January 5, 2023.
U.S. Attorney Mark H. Wildasin; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Douglas Korneski of the Federal Bureau of Investigation Memphis Field Office, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration Louisville Field Division; Director David Rausch of the Tennessee Bureau of Investigation; and Special Agent in Charge Tamala E. Miles of the Department of Health and Human Service Office of the Inspector General Atlanta Region made the announcement.
FBI, HHS-OIG, TBI, and DEA investigated the case.
Trial Attorneys Leslie Fisher and Emily Petro of the Criminal Division’s Fraud Section are prosecuting the case.
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Sioux Falls Man Facing Multiple Firearm Charges After Sioux Falls RobberiesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for two counts of interference with commerce by threats and violence and two counts of brandishing a firearm during a federal crime of violence.
Samuel Oreoluwa Roberts, age 23, was indicted on these charges July 6, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 11, 2022, and pled not guilty to the Indictment.
The maximum penalty for the counts involving interference with commerce is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. The penalty for each count of brandishing a firearm during a crime of violence is a mandatory seven years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about March 29, 2022, in Sioux Falls, Roberts unlawfully obstructed, delayed, and affected commerce and the movement of articles and commodities in such commerce, by robbery when he unlawfully took and obtained cash from the Get-n-Go, against the will of the employees by means of actual and threatened force, violence, and fear of injury immediate and future to their person when he brandished a firearm during this crime of violence, demanded money, and forcibly took the money. Then on or about March 30, 2022, in Sioux Falls, Roberts unlawfully obstructed, delayed, and affected commerce and the movement of articles and commodities in such commerce, by robbery when he unlawfully took and obtained cash from the Kum and Go, against the will of the employees by means of actual and threatened force, violence, and fear of injury immediate and future to their person when he brandished a firearm during this crime of violence, demanded money, and forcibly took the money.
These charges are merely accusations and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Elizabeth A. Ebert is prosecuting the case.
Roberts was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 13, 2022.
Second Defendant Pleads Guilty to Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and a PPP Loan Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to conspiring with others in separate fraud schemes to defraud the IRS and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Seir Robinson Havana, 46, was the Vice President/Director and Chief Executive Officer of Mana Tax Services, a tax preparation business in the Los Angeles area. Havana engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from May of 2019 through November 2021, Havana conspired with Quin Ngoc Rudin, 45, of California, and others to prepare and file with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes. The false tax returns reported fabricated business and personal losses to generate refunds the athletes were not entitled to receive. Havana and his co-conspirators represented to the professional athletes that Quin Rudin had specialized knowledge their prior tax professionals lacked and that Mana Tax could obtain large refunds for the athletes. The co-conspirators also told the professional athletes that Mana Tax could amend prior year tax returns to correct purported errors made by the athletes’ previous accountants to get additional refunds they were not entitled to receive. Mana Tax then charged the athletes a fee of 30% of the resulting refund. To conceal the payments, Havana directed the athletes to send the fee to shell entities he controlled. In all, Havana collected more than $3.1 million in fees from the professional athletes.
From April of 2020 through December of 2021, Havana and his co-conspirators also used Mana Tax to apply for PPP on behalf of a number of small businesses, shell entities controlled by the co-conspirators themselves with few or no employees, and business entities controlled by others. To obtain the PPP loans to which the applicants were not entitled, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the PPP loan applications and submitted fabricated tax returns in support of the applications. Some of the business owners never saw their loan applications before Mana Tax filed them, and some of the businesses were not eligible for PPP loans because they had no payroll expenses or had not been in operation during the relevant time period.
In exchange for processing the applications, Mana Tax charged a fee of 30% of the value of the loan obtained. To conceal this fee, Havana and his co-conspirators directed the businesses to pay the fee through cashier’s checks and to falsely note on the memo lines of the checks that the funds were related to payroll. The cashier’s checks were deposited into accounts controlled by Havana, who then transferred the funds to other bank accounts to further hide the source of the funds.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by Havana and others. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses to the government of more than $25 million.
Havana pleaded guilty to one count of conspiracy to defraud the United States and to commit wire fraud, as well as to one count of money laundering. He is scheduled to be sentenced on November 9. He faces a maximum penalty of 5 years in prison for the conspiracy charge and 20 years in prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 13, Rudin pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud, and wire fraud. His sentencing is scheduled for September 14.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen, and Assistant Chief of the Justice Department’s Tax Division David Zisserson prosecuted the case.
The United States Attorney’s Office for the Central District of California provided assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-116.
Second Defendant Pleads Guilty in Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and Fraudulent PPP Loan SchemeRead the Press Release
A California man pleaded guilty today to conspiring with others in fraud schemes to defraud the IRS and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Seir Robinson Havana, 46, was the Vice President/Director and Chief Executive Officer of Mana Tax Services, a tax preparation business in the Los Angeles area. Havana engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from May 2019 through November 2021, Havana conspired with Quin Ngoc Rudin and others to prepare and file with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes. The false tax returns reported fabricated business and personal losses to generate refunds the athletes were not entitled to receive. Havana and his co-conspirators represented to the professional athletes that Quin Rudin had specialized knowledge their prior tax professionals lacked and that Mana Tax could obtain large refunds for the athletes. The co-conspirators also told the professional athletes that Mana Tax could amend prior year tax returns to correct purported errors made by the athletes’ previous accountants to get additional refunds they were not entitled to receive. Mana Tax then charged the athletes a fee of 30% of the resulting refund. To conceal the payments, Havana directed the athletes to send the fee to shell entities he controlled. In all, Havana collected more than $3.1 million in fees from the professional athletes.
From April 2020 through December 2021, Havana and his co-conspirators also used Mana Tax to apply for PPP loans on behalf of a number of small businesses, shell entities with few or no employees controlled by the co-conspirators, and business entities controlled by others. The co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the PPP loan applications and submitted fabricated tax returns in support of the applications. Some of the business owners never saw their loan applications before Mana Tax filed them, and some of the businesses were not eligible for PPP loans because they had no payroll expenses or had not been in operation during the relevant time period.
In exchange for processing the applications, Mana Tax charged a fee of 30% of the value of the loan received. To conceal this fee, Havana and his co-conspirators directed the businesses to pay the fee through cashier’s checks and to falsely note on the memo lines of the checks that the funds were related to payroll. The cashier’s checks were deposited into accounts controlled by Havana, who then transferred the funds to other bank accounts to further hide the source of the funds.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by Havana and others. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $25 million.
Havana is scheduled to be sentenced on Nov. 9. He faces a maximum penalty of five years in prison for the conspiracy charges and 20 years in prison for money laundering. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 13, Rudin pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud and wire fraud. His sentencing is scheduled for Sept. 14.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division, and Special Agent in Charge Darrell J. Waldon of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement.
The U.S. Attorney’s Office for the Central District of California provided assistance with the investigation.
Assistant Chief David Zisserson of the Tax Division and Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen are prosecuting the case.
Russell Lucius Laffitte Indicted on Federal Conspiracy, Wire Fraud, Bank Fraud, and Misapplication of Bank Funds ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA – A federal grand jury returned a five-count indictment charging Russell Lucius Laffitte with conspiracy to commit wire fraud and bank fraud, bank fraud, wire fraud, and misapplication of bank funds.
The indictment alleges that Laffitte conspired with a bank customer to commit wire fraud and bank fraud. The indictment alleges that during the conspiracy, Laffitte served as an employee, officer, or director of the Palmetto State Bank (“PSB”), and the bank customer worked as a personal injury attorney at a law firm in Hampton, South Carolina. Laffitte and the bank customer engaged in a scheme to defraud the bank customer’s personal injury clients under materially false and fraudulent pretenses and by making materially false representations. Laffitte and the bank customer conspired to obtain money from the bank customer’s personal injury clients and the law firm, money which was held at PSB.
Specifically, the indictment alleges that Laffitte - while serving as conservator for the bank customer’s personal injury clients - extended $355,000 in personal loans to himself and $990,000 in personal loans to the bank customer from funds held at PSB and belonging to the personal injury clients. Laffitte knew that the funds loaned to the bank customer were used to cover hundreds of thousands of dollars in overdraft on the bank customer’s personal account. The indictment further alleges that Laffitte knew that the bank customer used funds stolen from other personal injury clients to pay back the loans. Laffitte, as conservator or personal representative for the personal injury clients, received disbursement checks from the law firm, then negotiated and distributed the funds according to and at the bank customer’s direction. At the bank customer’s direction, Laffitte transferred the disbursed settlement funds into bank money orders, cash, and other wire transfers. The indictment alleges that Laffitte collected $391,781.07 in fees for serving as conservator and personal representative.
The indictment further alleges that on two occasions, Laffitte, as an officer and director of PSB, willfully misapplied bank funds. Specifically, on October 28, 2021, Laffitte paid the law firm $680,000 without notice to or consent from PSB, knowing that he had fraudulently transferred the money to the bank customer. Last, the indictment alleges that on July 15, 2021, Laffitte willfully misapplied $750,000 of bank funds by extending a commercial loan to the bank customer knowing that the loan was essentially unsecured and that the loan proceeds would be and were used to pay an attorney and to cover hundreds of thousands of dollars in overdraft on the bank customer’s personal account. Laffitte faces a maximum term of imprisonment of 30 years on all charges.
The case was investigated by the Federal Bureau of Investigation (“FBI”), South Carolina Law Enforcement Division (“SLED”), and South Carolina Attorney General’s Office. Assistant U.S. Attorney Emily Limehouse is prosecuting this case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that the Defendant is presumed innocent unless and until proven guilty.
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laffitte_indictment_.pdfRomanian National Sentenced to Prison for ATM Skimming FraudRead the Press Release
LAS VEGAS – A Romanian citizen — who entered the U.S. illegally — was sentenced today by U.S. District Judge Andrew P. Gordon to 42 months in prison followed by three years of supervised release for engaging in ATM skimming fraud scheme.
Marian Poenaru (21) pleaded guilty in April 2022 to one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft.
According to court documents, Poenaru and his co-conspirators installed and used skimmer devices and pinhole cameras at ATMs to capture users’ account information and PINs. The conspirators then re-encoded gift cards with the stolen bank information so they could make cash withdraws and purchases for their own personal benefit.
On April 25, 2021, Las Vegas Metropolitan Police Department officers arrested Poenaru. A search of his apartment uncovered more than 500 cards that were re-encoded. At least 300 of the counterfeit cards recovered were re-encoded with account information of debit cards issued by the Nevada Department of Employment, Training and Rehabilitation (DETR), which were used to disburse unemployment insurance benefits during the COVID-19 pandemic. During a search of his apartment, law enforcement found a lab used both to create ATM skimming equipment as well as to manufacture counterfeit cards. Additionally, Poenaru admitted that his fraudulent activities in Las Vegas were committed after he and his co-conspirators relocated their fraudulent scheme from another state to evade law enforcement; evidence shows that from 2017 to 2021, Poenaru engaged in ATM skimming fraud across the country, including in Maryland, Virginia, Indiana, Michigan, and Nevada. Poenaru is subject to deportation after the completion of his criminal sentence.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent In Charge Karon Ransom for the U.S. Secret Service made the announcement.
This case was investigated by the U.S. Secret Service and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jim Fang prosecuted the case.
In May 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Roane County Man Pleads Guilty After Pipe Bomb FoundRead the Press Release
CHARLESTON, W.Va. – A Roane County man pleaded guilty today to possessing an unregistered destructive device, after law enforcement officers found a pipe bomb at his residence.
According to court documents and statements made in court, on December 24, 2020, law enforcement officers executed a search warrant at the Spencer residence of Joseph David Bailey, 51. Officers found the completed pipe bomb as well as five unfinished pipe bombs in various stages of completion. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that the completed pipe bomb was a destructive device and that Bailey did not register it with the National Firearms Registration and Transfer Record.
Bailey is scheduled to be sentenced on November 16, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the ATF.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-249.
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Registered Sex Offender Convicted of Attempting to Sexually Exploit Minors and Distributing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Davis Burgos-Collazo was convicted by a jury of attempting to sexually exploit five children, two counts of distributing child pornography, accessing child pornography with intent to view it, and committing a felony sexual offense involving minors while being a registered sex offender. The verdict was returned after a one-week trial before United States District Judge Pamela K. Chen. When sentenced, the defendant faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The defendant, a registered sex offender who deviously portrayed himself as a modeling scout to lure victims, repeatedly victimized minors without regard for the profound harm he was causing them. With today’s verdict, he now faces the consequences necessary to protect the community from this serial predator,” stated United States Attorney Peace. “I urge parents and caregivers to remain vigilant about the importance of educating our children about the dangers of communicating online with strangers.”
Mr. Peace thanked the FBI-NYPD Child Exploitation and Human Trafficking Task Force for their work on the case.
“Burgos’s conviction illustrates how vulnerable our children are to sexual predators. The heartbreaking pleas from one of his victims to be left alone should shock parents and guardians. Please talk with children about the dangers they can face online, and tell them they can ask for help if they face a similar situation,” stated FBI Assistant Director-in-Charge Driscoll.
As proven at trial, in 2020, Burgos-Collazo used at least 26 Instagram accounts to attempt to sexually exploit children as young as nine-years-old. The defendant enticed the victims by pretending to be a modeling scout and by using accounts with names like “future models” and “preteen beauty pics.” In addition, after the defendant had coerced one victim into performing live sex acts for him on Instagram and she pleaded with him to leave her alone, he threatened to post a naked picture of the 10-year-old child online for her friends to see. The FBI recovered over 100 photos and videos of child pornography on the defendant’s phone. Burgos committed the crimes while he was a registered sex offender. In March 2006, he was convicted of raping a seven-year-old minor and attempting to sexually assault two other minors, ages 9 and 11.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being prosecuted by Assistant United States Attorneys Rachel A. Bennek and John O. Enright, with assistance from paralegal specialists Anna November and Shivani Parshad.
The Defendant:
DAVIS BURGOS-COLLAZO
Age: 43
Jamaica, New YorkE.D.N.Y. Docket No. 20-CR-492 (PKC)
Plymouth Crack Dealer and Armed Robber Sentenced to 11 Years in PrisonRead the Press Release
ELIZABETH CITY, N.C. – Cortha Matthew McNair, 44, of Plymouth was sentenced today to 132 months in prison for dealing crack cocaine and robbing a gas station in 2020. McNair pled guilty to distribution of cocaine base (crack) and interference with commerce by robbery on April 13, 2022.
According to court documents and other information presented in court, McNair sold crack cocaine to a confidential informant on four occasions between June 19 and July 22, 2020, in Plymouth. On July 23, 2020, state and local law enforcement agents executed a search warrant at McNair’s residence, where they recovered an additional 25 grams of crack cocaine, digital scales, and packaging materials.
On November 1, 2020, the Greenville Police Department responded to an armed robbery at the Oasis gas station, located at 2130 SE Greenville, Blvd. in Greenville. During the robbery McNair displayed a handgun and demanded money from the register and the back office. Surveillance footage from inside the store captured the robbery. McNair then fled the scene in a Honda sedan with a noticeable dent on the rear passenger door. Upon reviewing footage from the Greenville city street cameras, law enforcement tracked the vehicle to a nearby apartment complex. After observing McNair operating the Honda sedan, Greenville Police stopped the car and detained McNair. Officers searched the vehicle and recovered clothing that matched the suspect’s clothing from the robbery, a black face mask, and a loaded .9mm pistol.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. the Federal Bureau of Investigation, the North Carolina Bureau of Alcohol Law Enforcement, the Washington County Sheriff’s Office, the Plymouth Police Department, and Greenville Police Department investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-27-BO.
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Physician Assistant Is Indicted for Role in $10 Million Medicare Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A physician assistant is facing federal charges for his role in a genetic testing scheme that resulted in the submission of more than $10 million in fraudulent claims to the Medicare program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 34, of Monroe, N.C. is charged with one count of health care fraud and six counts of making false statements relating to health care matters.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, during 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. During the relevant time frame, Joyner allegedly signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for hundreds of Medicare beneficiaries residing in North Carolina.
The indictment alleges that Joyner’s prescriptions resulted in the submission of fraudulent reimbursement claims to the Medicare program in excess of $10 million. As alleged in the indictment, Joyner had never met, seen or treated these beneficiaries, and had only had brief telephone conversations with them, or no interactions with them whatsoever.
The indictment further alleges that Joyner falsified medical records in connection with these prescriptions to conceal that he was not the treating physician and that he did not conduct medical evaluations or examinations, and that he falsely certified that the genetic tests were medically necessary. According to allegations in the indictment, contrary to his claims, Joyner had neither pre-existing provider-patient treatment relationships with, nor plans to pursue further care for, the Medicare beneficiaries. Joyner allegedly did not perform medical evaluations or examinations and had little to no interaction with the beneficiaries before prescribing the genetic tests. Instead, Joyner allegedly received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12—and later $15—for each purported consultation that he performed.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.
The investigation was handled by the FBI and HHS-OIG.
Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Pharmacist Pleads Guilty to Misappropriating and Adulterating Prescription Pain MedicationRead the Press Release
MINNEAPOLIS – A Minneapolis woman has pleaded guilty to misappropriating and adulterating prescription morphine while working as a pharmacist, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 30, 2019, Jennifer Lee Draheim, 42, a pharmacist at Coburn’s Pharmacy in Ramsey, removed a bottle of morphine sulfate from the Scheduled Drug Cabinet and poured a quantity of the morphine from the stock bottle into a small container for her own personal use. She added water to the bottle to replace the morphine she took, thereby reducing the drug’s quality and strength. Draheim returned the diluted bottle of morphine to the Scheduled Drug Cabinet, where it was held in the pharmacy’s inventory for the purpose of filling customer prescriptions.
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly adulterate medicines put patients’ health at risk,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort.”
“The diversion of pharmaceuticals is a dangerous path that can lead to addiction, overdose and even death,” DEA Omaha Division Special Agent in Charge Justin C. King said. “We take diversion seriously as it impacts the person misusing the medication and also those for whom the prescription was intended. In this case, Jennifer Draheim’s actions put her life in danger and also affected those who were in need of morphine sulfate but instead received a tainted, watered-down medication. We applaud Coborn’s Inc., for alerting authorities to the diversion and our partners in the FDA for their work on this investigation.”
Draheim pleaded guilty yesterday before U.S. District Judge Nancy E. Brasel to one count of adulteration of a drug. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Food and Drug Administration and the U.S. Drug Enforcement Administration.
Assistant U.S. Attorney Lauren O. Roso is prosecuting the case.
Pennsylvania Man Sentenced to Prison for Sex Offense Involving MinorRead the Press Release
CHARLESTON, W.Va. – James Russell Loar, Jr., 40, of Washington, Pennsylvania, was sentenced today to seven years and three months in prison, to be followed by 15 years of supervised release, for traveling in interstate commerce to engage in sexual activity with a minor. Loar must also register as a sex offender.
According to court documents and statements made in court, on May 27, 2021, Loar traveled from Washington, Pennsylvania, to Clay County, West Virginia, to have sex with a 14-year-old minor. Loar had been communicating with the minor via Snapchat for nearly a year, and his communications with her were sexual in nature. The minor’s parents learned about his communications and informed him of her age, but his communications continued. When Loar traveled to Clay County, he met with the minor and invited her into his truck. The minor’s mother happened to be driving by and intervened. After he was subsequently arrested, Loar admitted to sending a pornographic picture to the minor as well as telling her that he wanted to perform sex acts with her.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-141.
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Pee Dee Man Sentenced to Eight Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
FLORENCE, SOUTH CAROLINA — James Edwards Phillips, 64, of McBee, was sentenced to 8 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the Court showed that, on the afternoon of December 6, 2019, a Deputy with Chesterfield County Sheriff’s Office responded to a report of an argument at a residence in Hartsville. Upon arrival, the Deputy saw Mr. Phillips holding a firearm and advancing towards another individual. The Deputy detained Phillips and recovered a loaded .22 caliber revolver from Phillips’s person. At the time of the incident, Phillips was prohibited from possessing a firearm or ammunition due to his prior federal and state felony convictions.
Chief United States District Judge R. Bryan Harwell sentenced Phillips to 96 months imprisonment, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Chesterfield County Sheriff’s Office, Hartsville Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Omaha Man Sentenced on Gun ChargesRead the Press Release
Acting United States Attorney Steven A. Russell announced today that Steven D. Crawford, age 39, of Omaha, was sentenced today by United States District Judge Brian C. Buescher to a sentence of 180 months imprisonment for being a Felon in Possession of a Firearm and Carrying and Using a Firearm During and In Relation to a Drug Trafficking Crime. There is no parole in the federal system. Upon his release, Crawford will serve a 4 year term of Supervised Release.
On May 26, 2020, a confidential source advised law enforcement that he/she was able to purchase ecstasy from co-Defendant Joi Y. Bradley. The confidential source contacted Bradley and agreed to meet Bradley at Big Jims located at 3024 Ames Ave. Bradley was the passenger seat of a Chevy Tahoe and Crawford was the driver. The confidential source purchased 10 pills of purported ecstasy from Defendant in exchange for $40. After this controlled purchase, the Omaha Police Department conducted continuous surveillance of the Tahoe before conducting a traffic stop. During a search of the vehicle, officers found a loaded HiPoint 9 mm handgun with an extended magazine containing 16 live rounds next to where Crawford had been sitting.
The 10 purported ecstasy pills were submitted to the Nebraska Public Service Laboratory and were determined to be eutylone and caffeine. Eutylone is a positional isomer of pentylone, a schedule I controlled substance.
A search warrant was obtained for Defendant’s DNA which was then compared against DNA swabs that had been taken from the firearm by the UNMC Human DNA Laboratory. The swab from the firearm generated a mixture of two individuals and Crawford could not be excluded as a contributor.
Firearm examiners from ATF examined the firearm and found that the firearm was not manufactured in the state of Nebraska and would have had to have travelled in interstate commerce to be located in Nebraska. Additionally, the ATF Trace Summary found that the gun had been originally purchased in the state of Texas.
Crawford was a convicted felon having previously been convicted of Assault Family Violence Impeding Breath/Circulation in Texas and Possession with Intent to Distribute a Controlled Substance- Less than 10 Grams of Crack Cocaine in Nebraska, and Aiding and Abetting Assault in the First Degree in Nebraska.
Bradley was convicted of Possession with Intent to Distribute Eutylone and was previously sentenced to a term of 5 years probation.
This case was investigated by the Omaha Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Omaha Man Sentenced for Transporting Minor for ProstitutionRead the Press Release
Acting United States Attorney Steven A. Russell announced that Jonte L. Fuller, age 35, of Omaha, was sentenced today by the Honorable Brian C. Buescher, United States District Judge, to 120 months imprisonment, to be followed by 5 years of supervised release. Fuller pled guilty in April 2022 to Transporting a Minor to Engage in Prostitution.
In about September 2020, a 16-year-old who had run from home met Fuller and his co-defendant Phillip Gonzales in Omaha. Gonzales took photos of the minor and placed them in advertisements he posted on a website used to advertise commercial sex, using an account under Fuller’s name and email address. Gonzales initially did not have a car, so Fuller drove the minor to “out calls” where s/he engaged in commercial sex with customers. The minor provided a portion of the money s/he received from such out calls to Fuller.
On or about October 2, 2020, Fuller drove Gonzales, the minor and an adult from Iowa to a residence in Bellevue, Nebraska for an out call. At the residence, both the minor and the adult engaged in commercial sex with a customer.
Gonzales pled guilty in in February 2022 to Producing Visual Depiction of Minor Engaging in Sexually Explicit Conduct and was sentenced on May 25, 2022 to 180 months imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
New York Man Sentenced to Five Years in Prison for Role in $4 Million Extortion SchemeRead the Press Release
WASHINGTON – Robert Evans, 35, of New York, N.Y., was sentenced today to five years in prison for his role in a wide-ranging fraud, extortion, and money laundering scheme, which involved one of his brothers pretending to be a New York mobster to get a Maryland man to embezzle more than $4 million from his Washington, D.C., employer. Evans is the fourth defendant to be sentenced in the case.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Evans pleaded guilty in April 2021, in the U.S. District Court for the District of Columbia, to interference with interstate commerce by extortion. He was sentenced by the Honorable Emmet G. Sullivan. In addition to the prison term, Judge Sullivan ordered that Evans serve three years of supervised release. Consistent with his plea agreement, Evans also must pay $4,217,542 in restitution and $777,955 in a forfeiture money judgment.
In April 2018, a federal grand jury indicted Evans, his common-law ex-wife Gina Russell, his brothers Tony John Evans and Corry Blue Evans, and his parents Archie Kaslov and Candy Evans, on various charges.
According to the government’s evidence, as part of the scheme, a New York woman conspired with Robert Evans, Russell, Tony John Evans, Corry Blue Evans, and Kaslov to extort money and gold bars from a Maryland man, which caused the man to embezzle funds from his employer between January 2017 and March 2017. The man converted embezzled funds to cash and gold bars. He delivered the money and gold bars to New York drop-off locations, including a hotel room, believing the funds were going to mobsters to whom the New York woman owed money. At one point during the scheme, Tony John Evans spoke to the man on the phone and threatened him by asking if he needed to remind the man where his kids went to school and where the man lived.
In reality, all of the funds that the man embezzled and delivered to New York went to members of the Evans-Kaslov family. Among other things, Robert Evans arranged the logistics of a $500,000 cash payment, which involved renting hotel rooms, retrieving the cash after the Maryland man delivered it, and taking the cash to a co-conspirator’s residence.
Like Robert Evans, Tony John Evans and Russell pleaded guilty to interference with interstate commerce by extortion. Tony John Evans, 33, was sentenced to five years in prison. Russell, also 33, has not yet been sentenced.
Kaslov, 55, pleaded guilty to conspiracy to commit wire fraud, and admitted to driving family members around New York with cash obtained from the scheme, selling gold bars for cash, and traveling to Texas to purchase a Rolls Royce Phantom Drophead for more than $300,000 in cash. In April 2022, Judge Sullivan sentenced Kaslov to 30 months in prison.
Candy Evans, 53, pleaded guilty to tampering with a witness by corrupt persuasion or misleading conduct. As part of her guilty plea, she admitted that once the FBI launched its investigation, she counseled the New York woman whom the Maryland man met on Backpage to lie to people, including the FBI. In November 2017, she also instructed Russell to lie to the FBI. In April 2022, Judge Sullivan sentenced her to a year and a day in prison.
Charges remain outstanding against Corry Blue Evans, 29, who has pleaded not guilty.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office Criminal Division. They expressed appreciation for assistance provided by the U.S. Department of Justice Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Arvind Lal, who assisted with forfeiture issues, Assistant U.S. Attorneys Oliver McDaniel and Melissa Goforth Koenig, who assisted with restraining funds that Candy Evans attempted to dissipate between the date of her guilty plea and sentencing, Forensic Accountant Bryan Snitselaar, and former Paralegal Specialists Jessica Mundi, Brittany Phillips, Stephanie Frijas, Kristy Penny, and Joshua Fein.
Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman and former Assistant U.S. Attorney David Kent for investigating and prosecuting the case.
Mission Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on July 19, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Anthony Kitteaux, Sr., age 29, was sentenced to 13 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kitteaux was indicted by a federal grand jury on March 8, 2022. He pled guilty on May 5, 2022.
The conviction stemmed from an incident that occurred in the early morning hours of January 24, 2022, at a residence in Todd County, South Dakota. On that date, a Rosebud Sioux Tribe Law Enforcement Services officer responded to a report that Kitteaux was assaulting his girlfriend. When the officer approached the residence and attempted to place Kitteaux under arrest, Kitteaux refused commands and attempted to close the front door of the residence. The officer reached through the door in an attempt to gain Kitteaux’s compliance and he repeatedly closed the door on the officer’s arm.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Kitteaux was immediately remanded to the custody of the U.S. Marshals Service.
Middleburg Nurse Sentenced to Federal Prison for Tampering with ICU Patients’ MedicationRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Monique Elizabeth Carter (36, Middleburg) to one year and one day in federal prison for tampering with a consumer product, specifically, injectable fentanyl. The court further ordered that after serving her prison sentence, Carter will serve one year of home detention as a condition of a two-year term of supervised release. During this time, Carter will also be prohibited from working in any position in which she would have access to prescribed medications. Carter had pleaded guilty on April 13, 2022.
According to court documents, Carter is a registered nurse who had previously been employed by a hospital in Jacksonville. She worked in a neural intensive care unit or ICU, which is a specialized unit that provides intensive and specialized care to critically ill patients with life-threatening neurological problems. Certain ICU patients were prescribed intravenous doses of fentanyl, a synthetic opioid used as a pain medication and as anesthesia.
After Carter’s shift on September 28, 2021, a hospital pharmacist examined the ICU wing’s inventory of fentanyl and found a fentanyl syringe with a tamper-proof cap missing, but with some form of foreign adhesive remaining at the tip. A second fentanyl syringe had a cap that appeared to have been glued back on. After reviewing hospital records, a pharmacist supervisor noted a pattern of Carter checking out doses of fentanyl for patients, but then cancelling the transactions and checking syringes back into the hospital’s inventory. Records showed that Carter did so 24 times between August 29 and September 28, 2021. Carter was the only nurse on her ICU wing who persistently checked out fentanyl and returned it to the hospital’s inventory.
The next day, when Carter arrived for work, hospital representatives interviewed her. Confronted with the pharmacists’ findings, Carter eventually admitted that—to obtain drugs for personal use at home—she had been removing injectable fentanyl from syringes, replacing the drug with saline, and then gluing the plastic tampering caps back on the syringes with an adhesive that she obtained from the hospital. She admitted that she had been tampering with fentanyl syringes since the summer of 2021. Carter denied injecting fentanyl while on duty at the hospital, but in her bag, law enforcement investigators later located needles, saline syringes, and adhesive.
Carter is a trained healthcare professional and knew that her activities likely resulted in critically ill patients receiving diluted fentanyl, which was not safe and effective. Having been deprived of sterile, medically necessary medication, such patients were exposed to possible infection and endured unnecessary pain and suffering. In addition, Carter knew that the failure to anesthetize or control pain in ICU patients can result in increased risks of illness or death, stemming from, among other things, respiratory, cardiovascular, and musculoskeletal complications.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Jacksonville Sheriff’s Office – Pharmaceutical Diversion and Designer Drug Unit attached to the North Florida High Intensity Drug Trafficking Area. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Mexican Man Indicted for Smuggling 163 Pounds of Methamphetamine Across the US-Mexico BorderRead the Press Release
PHOENIX, Ariz. –Last week, a federal grand jury in Phoenix, Arizona, returned a two-count indictment against Jose Luis Vazquez-Gonzalez, 39, of Mexico, for Possession with Intent to Distribute Methamphetamine and Importation of Methamphetamine into the United States from Mexico.
The indictment alleges that on June 18, 2022, Vazquez-Gonzalez entered the United States through San Luis, Arizona. At the Port of Entry, Customs and Border Protection officers discovered 155 packages hidden in Vazquez-Gonzalez’s car. The packages contained a white crystal-like substance that tested positive for methamphetamine. The combined weight of the packages was over 163 pounds.
A conviction for each of the charged offenses carries a maximum penalty of life in prison and a $10,000,000 fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-22-00815-PHX-DJH
RELEASE NUMBER: 2022-120_Vazquez-Gonzalez# # #
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.
McKeesport Man Sentenced to 6 Years for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA -- A resident of McKeesport, Pennsylvania, has been sentenced in federal court to 72 months’ imprisonment and 5 years’ supervised release on his convictions for violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Guy Wallar, Jr., age 25.
According to information presented to the court, on June 28, 2021, officers with the Duquesne Police Department noticed a male seated in the driver seat of a parked vehicle who was slumped over the arm rest. The vehicle was in the Truman Towers parking lot, a known drug trafficking area that had a shooting earlier that day. Upon approaching the vehicle, the officers detected the strong odor of burning marijuana and observed, in plain view, the driver sleeping, marijuana, and drug packaging material.
The officers woke the driver and asked him to exit the vehicle. The driver, and sole occupant of the vehicle, identified himself as Guy Wallar, Jr. Wallar then requested to show the officers something in the vehicle. As Mr. Wallar attempted to access the vehicle, officers told him to stop for fear of the destruction of evidence and officer safety. However, Wallar again tried to access the vehicle, and officers detained him. A search of Mr. Wallar incident to his arrest resulted in the seizure of marijuana, a cellular phone, and $8,517.00.
Officers requested consent to search the vehicle, which Wallar granted. The subsequent search resulted in the seizure of approximately 110 net grams of cocaine, an additional cellular phone, suspected narcotics, and a Polymer 80 pistol containing 16 rounds of ammunition.
On July 1, 2021, the same officers who arrested Wallar on June 28, 2021, observed Wallar walking out of Truman Towers. Based upon their recent interactions with Wallar and the Polymer 80, the officers asked for consent to search Wallar for weapons. Wallar consented, and an officer patted down Waller, feeling a baggie of suspected narcotics in his pocket. The officer pulled a baggie from the pocket, and it contained approximately six net grams of cocaine base, in the form commonly known as crack. The officers again arrested Mr. Wallar, and a search incident to arrest resulted in the seizure of two cellular phones and $882.00.
Following the return of the Superseding Indictment, law enforcement arrested Wallar near his vehicle on October 5, 2021. During the arrest, law enforcement observed a marijuana blunt in plain view within the vehicle. Subsequently, law enforcement applied for and obtained a federal search warrant for the vehicle. The search resulted in the seizure of small quantities of suspected marijuana and cocaine, in addition to $10,471.00.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Duquesne Police Department for the investigation leading to the successful prosecution of Wallar.
Maplewood Felon Sentenced to Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Maplewood man was sentenced to 77 months in prison followed by three years of supervised release for illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 12, 2021, Metro Transit Police Officers were dispatched to a report of a vehicle stuck on the light rail tracks in St. Paul. At the scene they found Deandre Lenier Neal-Hill, 35, unconscious in the driver’s seat of a maroon Chevrolet Malibu. The vehicle, with the engine still running, had a flat tire and was stuck in the tracks. Officers removed an unresponsive Neal-Hill from the vehicle and began preforming emergency medical aid until the paramedics arrived and took him to a hospital.
According to court documents, as officers extracted Neal-Hill from the vehicle, they observed a black handgun on the floorboard on the driver’s side of the vehicle, which was later determined to be an FNH USA model 503 9mm semiautomatic pistol. Neal-Hill’s pistol was loaded with one round in the chamber and seven bullets in the inserted magazine. Neal-Hill was also in possession of marijuana, methamphetamine, and oxycodone pills.
Neal-Hill has prior felony convictions, including convictions of drive-by shooting, assault, and drug sale, therefore he is prohibited under federal law from possessing firearms or ammunition at any time.
Neal-Hill was sentenced today in U.S. District Court by Judge Wilhelmina Wright. Neal-Hill pleaded guilty to one count of illegal possession of a firearm as a felon.
This case is the result of an investigation conducted by the ATF, the FBI, the St. Paul Police Department, and the Metro Transit Police Department.
Assistant U.S. Attorneys Matthew S. Ebert and Thomas Calhoun-Lopez prosecuted the case.
Many, LA Man Sentenced to Federal Prison for Trafficking Narcotics and Illegal Possession of FirearmsRead the Press Release
SHREVEPORT, La. – Ronald Carnell Holland, Jr., 24, of Many, Louisiana, was sentenced today on drug trafficking and firearms charges, announced United States Attorney Brandon B. Brown. Holland was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 111 months in prison, followed by 5 years of supervised release.
Merritt pleaded guilty on March 7, 2022 to one count of possession of flualprazolam with intent to distribute and one count of possession of a firearm in furtherance of drug trafficking. These charges are the result of a search warrant that was executed on April 14, 2021 at Holland’s residence in Many, Louisiana. Law enforcement officers found three loaded pistols, as well as a high-capacity drum magazine loaded with 48 rounds of ammunition. In addition, officers recovered 2,000 flualprazolam pills, cash, boxes of various ammunition, clear plastic baggies, and a scale.
The case was investigated by the ATF and the Sabine Parish Sheriff’s Office and was prosecuted by U.S. Attorney Brandon B. Brown and Assistant U.S. Attorney Earl M. Campbell.
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Man Arrested for Leading Role in $10 Million Tech Support Fraud Scheme That Exploited Elderly VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced charges against VINOTH PONMARAN for participating in a conspiracy that for several years exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services they did not need, and which were never actually provided. In total, the conspiracy generated more than $10 million in proceeds from at least approximately 7,500 victims. PONMARAN was arrested on Friday in Blaine, Washington, and will be presented in the Western District of Washington. The case has been assigned to U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “As alleged, the defendant was a leader of a sophisticated fraud scheme that preyed on victims, including the elderly. This conspiracy allegedly caused pop-up windows to appear on victims’ computers—pop-up windows which claimed, falsely, that a virus had infected the victim’s computer. Through this and other misrepresentations, this fraud scheme deceived thousands of victims, including some of society’s most vulnerable members, into paying a total of more than $10 million. Thanks to our partners at Homeland Security Investigations, this scheme has been dismantled.”
According to the allegations contained in the Superseding Indictment,[1] as well as court filings and statements made in court in connection with the cases of PONMARAN’s co-defendants:
From approximately March 2015 through December 2018, PONMARAN was a member of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme targeting elderly victims located across the United States and Canada, including in the Southern District of New York. The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services. Over the course of the conspiracy, the Fraud Ring generated more than $10 million in proceeds from at least 7,500 victims.
The scheme generally worked as follows. First, the Fraud Ring caused pop-up windows to appear on victims’ computers. The pop-up windows claimed, falsely, that a virus had infected the victim’s computer. The pop-up window directed the victim to call a particular telephone number to obtain technical support. In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.” In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company. In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company. Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist. And while the purported “virus” was a hoax, the pop-up window itself did cause various victims’ computers to completely “freeze,” thereby preventing these victims from accessing the data and files in their computer—which caused some victims to call the phone number listed on the pop-up window. In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet. The Fraud Ring also re-victimized various victims, after they had made payments to purportedly “fix” their tech problems.
PONMARAN was an India-based leader of the Fraud Ring. Among other things, PONMARAN managed a call center in India that was used to provide purported computer repair services to victims of the scheme. PONMARAN also recruited co-conspirators in the United States to register fraudulent corporate entities and open bank accounts that were used to receive fraud proceeds from victims of the scheme. PONMARAN also directed co-conspirators to wire fraud proceeds from the United States to accounts in India.
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PONMARAN, 34, a citizen of India, is charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PONMARAN’s co-defendants, Romana Leyva and Ariful Haque, were both sentenced earlier this year, following their respective guilty pleas. Leyva was sentenced to 100 months in prison and three years of supervised release, and she was ordered to pay forfeiture of $4,679,586.93 and restitution of $2,707,882.91. Haque was sentenced to one year and one day in prison and three years of supervised release, and he was ordered to pay forfeiture of $38,886.32 and restitution of $470,672.16.
Mr. Williams praised the outstanding work of the New York Office of the Homeland Security Investigations (“HSI”)’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group. Mr. Williams also thanked the New York City Police Department for its assistance on this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
[1] The entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Media AdvisoryRead the Press Release
United States Attorney Philip R. Sellinger and New Jersey Acting Attorney General Matthew J. Platkin to Announce State-Federal Collaboration to Ensure Protection of Individuals Seeking Abortion and Security of Abortion Providers
****** MEDIA ADVISORY — PLANNING PURPOSES ONLY ******NEWARK, N.J. – U.S. Attorney Philip R. Sellinger, District of New Jersey, and New Jersey Acting Attorney General Matthew J. Platkin to announce partnership that will protect in- and out-of-state patients, health care workers and reproductive health services providers while coordinating intelligence-sharing across local, state and federal law enforcement agencies.
WHEN: Wednesday, July 20, 2022, 2:00 p.m. EDT
WHO: U.S. Attorney Philip R. Sellinger, District of New Jersey
New Jersey Acting Attorney General Matthew J. PlatkinLaurie Doran, Director, New Jersey Office of Homeland Security and Preparedness
Pearl Minato, Director, Division of Criminal Justice
Cari Fais, Director, Division of Consumer AffairsWHERE: Office of the Attorney General, 124 Halsey St, 7th Floor, Newark, NJ.
Livestream available at: https://youtu.be/0BGCJ_Sx7w0
Lowell Man Sentenced to Seven Years in Prison for Illegal Firearm ChargesRead the Press Release
BOSTON – A Lowell man was sentenced on July 15, 2022 in federal court in Boston in connection with advertising the sale of firearms on Snapchat.
Juan Aparicio, 31, was sentenced by U.S. District Court Judge Patti B. Saris to seven years in prison and three years of supervised release. On Feb. 10, 2022, Aparicio pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
“Firearms are inherently dangerous weapons. Those who lawfully carry them in Massachusetts are required to undergo a thorough vetting process. There are also very strict requirements regarding the legal purchase and sale of any firearm. Convicted felons like Mr. Aparicio are strictly prohibited from possessing firearms in any way, which obviously includes trying to sell them on Snapchat,” said United States Attorney Rachael S. Rollins. “Whether an illegal possession or an unlawful sale is in person over conducted via social media, prohibited individuals will be found and prosecuted. We will work tirelessly with our law enforcement partners to keep deadly firearms out of the hands of prohibited individuals.”
“Illegal firearms trafficking is a serious threat to our communities,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF’s Boston Division will continue to work with our local, state and federal partners to target firearms traffickers and remove them from our communities. This investigation is an example of our commitment to protecting the public and making Massachusetts safer.”
In June 2019 and January 2020, Aparicio posted videos on his Snapchat offering to sell numerous firearms. A search of Aparicio’s residence resulted in the recovery of a loaded assault rifle and handgun. Due to previous convictions punishable by more than one year in prison, Aparicio is prohibited from possessing firearms and ammunition.
U.S. Attorney Rollins, ATF SAC Ferguson, Middlesex County District Attorney Marian T. Ryan and Superintendent Raymond Kelly Richardson of the Lowell Police Department made the announcement. Assistant U.S. Attorneys Evan Panich and Charles Dell’Anno of Rollins’ Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Louisville Man Sentenced to 60 Months for Possessing Stolen MailRead the Press Release
FRANKFORT, Ky.— A Louisville man, Antwan Lovelace, 27, was sentenced to 60 months in federal prison last Wednesday, by U.S. District Judge Gregory Van Tatenhove, following his conviction for possession of stolen mail.
According to the evidence at his trial, in late December 2020, in an apartment in Frankfort, Lovelace was in possession of over $400,000 worth of stolen mail. The stolen mail included checks, money orders, gift cards, and greeting cards; various ID documents; bank cards; acetone containers; and other chemicals commonly used to wash checks. Investigators contacted the senders of the checks and discovered they had mailed the checks from various post office locations in and around Louisville.
A jury convicted Lovelace in January 2022. Lovelace’s co-defendant, Joiya Smith, pleaded guilty and was sentenced to 18 months in federal prison.
Under federal law, Lovelace must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
“In some form or fashion, every one of us relies on the postal system to communicate, exchange articles, or transact business,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “That means the integrity of the postal system is critically important to us all. In conjunction with our partners, we will continue to investigate and prosecute those who criminally exploit the postal system. And this case should serve as a warning of the potential consequences that face those who do.”
“The results of this investigation serve as a great example of the coordination between the US Postal Inspection Service and our federal, state, and local law enforcement partners to preserve the safety, security, and integrity of the nation’s mail system from criminal activity,” said Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburgh Division. “As the nation’s oldest federal law enforcement agency, the Postal Inspection Service has a long, proud, and successful history of fighting criminals who misuse our nation’s postal system.”
United States Attorney Shier and Inspector Allison, jointly announced the sentence.
The investigation was conducted by the USPIS, with assistance from the U.S. Secret Service, Louisville Metro Police Department, and Franklin County Sheriff’s Office. The United States was represented by Special Assistant U.S. Attorney James Chapman.
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Louisiana Return Preparer Sentenced to Additional Prison Time for Second Tax Fraud ConspiracyRead the Press Release
A Louisiana woman was sentenced today to 10 months in prison for conspiring to defraud the United States. This sentence will begin to run after the completion of her previous sentence, imposed on April 14, of one year and one day in prison.
According to court documents and statements made in court, from January through April 2015, Brittany Patterson, of Jefferson Parish, conspired with others to file false tax returns for clients of Pelicans Income Tax and Payroll Service, a return preparation business with locations in Kenner and Westwego. Patterson and others prepared returns with false income and withholding amounts in order to generate tax refunds their clients were not entitled to receive. For the 2014 tax year, Patterson also falsified her own tax return, submitting to the IRS fictitious education expenses and dependent information. In total, Patterson and her conspirators fraudulently sought more than $550,000 in IRS refunds.
In addition to the term of imprisonment, U.S. District Judge Sarah S. Vance ordered Patterson to serve three years of supervised release and to pay approximately $283,378 in restitution to the United States.
On April 14, Patterson was sentenced to prison in connection with a separate tax conspiracy relating to Crown Tax Service LLC, another return preparation business where Patterson worked as a tax return preparer.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Jessica Kraft and William Montague of the Justice Department’s Tax Division and Assistant U.S. Attorney Carter Guice for the Eastern District of Louisiana prosecuted the case.
League City man gets 35 years for exploiting child on KikRead the Press Release
GALVESTON, Texas – A 38-year-old man has been ordered to federal prison following his conviction of production and possession of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Scott Jacob McGuire pleaded guilty Aug. 8, 2021.
Today, U.S. District Judge Jeffrey V. Brown sentenced McGuire to 360 and 60 months for the production and possession convictions, respectively. They will run consecutively for a total 420-month-term of imprisonment. At the hearing, the court an impact statement from one of the identified victims in the images McGuire possessed. McGuire was further ordered to pay $63,000 in restitution to seven of the victims whose images he possessed and the minor victim of whom he created child pornography. Additionally, he will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. McGuire will also be ordered to register as a sex offender.
McGuire had engaged in a conversation with someone who he believed to be a father to a young child on Kik, claiming he was also a dad to a three-year-old daughter. McGuire sent an image of the minor female with McGuire’s genitals in her hand and stated he would give the child melatonin so she would “sleep like a rock.” Then, McGuire requested images of the individual molesting his daughter.
Law enforcement was able to locate McGuire in League City and executed a search warrant at his residence. At that time, they seized numerous devices and discovered 721 images of child pornography. McGuire also possessed a large amount of child erotica and CGI animation child pornography.
In addition to the minor victim McGuire used to produce child pornography, he also possessed images and video of victims the National Center for Missing and Exploited Children has previously identified in 47 known series.
McGuire has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI – Texas City conducted the investigation with the assistance of the Washington Metropolitan Police FBI Child Exploitation Task Force.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Las Vegas Apartment Complex Manager Sentenced for Violating Clean Air Act Asbestos Regulations at Two FacilitiesRead the Press Release
A California man was sentenced to one year and one day in prison and 36 months of supervised release for renovating two apartment complexes in violation of federal Clean Air Act regulations intended to prevent human exposure to toxic airborne asbestos fibers.
Bobby Khalili, 46, of Los Angeles, was indicted by a grand jury sitting in the District of Nevada in September 2019, in connection with asbestos-related Clean Air Act violations at a Las Vegas apartment complex. The grand jury later returned a superseding indictment against Khalili in July 2021, in connection with new Clean Air Act asbestos violations at a second apartment complex, which Khalili committed while on pretrial release for the first set of charges. Khalili pled guilty on March 11, to failing to safely remove asbestos prior to renovation at each complex.
As part of his guilty plea, Khalili acknowledged that, on behalf of Las Vegas Apartments LLC, he oversaw renovation activities at both apartment complexes. He further admitted that he was aware of asbestos-containing materials at both buildings, and that he hired untrained individuals to tear out those materials without following asbestos work-practice standards prescribed by the Clean Air Act. Those work practice standards require that asbestos-containing materials be safely removed prior to general renovation activity taking place. Asbestos-containing materials must be kept wet at all times to prevent dust escaping, sealed in leak-proof bags, and disposed of at facilities authorized to accept asbestos waste. At both apartment buildings, untrained laborers removed asbestos-containing drywall and ceiling texture without wetting or containment, releasing asbestos fibers into the surrounding atmosphere.
Khalili also admitted to taking steps to evade law enforcement at each site. At the first apartment complex, Khalili attempted to have a dumpster filled with asbestos waste removed from the site when inspectors from the Clark County Department of Air Quality discovered asbestos-related violations. At the second complex, where he oversaw illegal renovations while on pretrial release, he instructed the contractor in charge of the renovation to lie to inspectors about who owned and oversaw the project, in an attempt to blame another person for the Clean Air Act violations he knowingly committed. According to the government’s sentencing memorandum filed with the court, Khalili also created a fake contract purportedly showing that other person’s responsibility for the renovation; in truth, that person was deceased at the time of the project.
Inhalation of airborne asbestos fibers has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. Congress and the EPA have determined that there is no safe level of exposure to asbestos.
“Today’s sentencing demonstrates that cutting corners on asbestos abatement will not result in a slap on the wrist,” said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division (ENRD). “These are serious offenses with serious consequences, and we will continue to work with EPA and our partners in U.S. Attorneys’ Offices to prosecute violations of the Clean Air Act’s asbestos safety regulations.”
“The defendant placed the public in danger of inhaling asbestos fibers when he failed to follow Clean Air Act regulations,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “This sentence sends a deterrent message that the U.S. Attorney’s Office and our partners will hold accountable individuals who violate federal environmental laws that are designed to protect workers and our communities.”
“The defendant failed to provide for the required safe removal of material containing asbestos,” said Special Agent in Charge Scot Adair of EPA’s Criminal Enforcement Program in Nevada. “In addition, the defendant created an elaborate scheme in an effort to deceive law enforcement and regulators. Today’s sentencing reflects our commitment to holding people like Khalili accountable for their criminal conduct.”
Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Senior Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jean Ripley and Special Assistant U.S. Attorney Rachel Kent for the District of Nevada prosecuted the case.