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Thursday 2 June 2022
Mount Pleasant Man Sentenced to Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – Victor Alberto Elias Rodriguez, age 40, of Mount Pleasant, was sentenced Wednesday, June 1, 2022, to 342 months in prison for Production of Child Pornography. Elias Rodriguez was also ordered to serve ten years of supervised release following his imprisonment and was assessed a $100 Special Assessment immediately payable to the Crime Victims Fund.
According to court documents, officers initiated an investigation into Elias Rodriguez after receiving information regarding his possible sexual abuse of a minor female. The investigation revealed that Elias Rodriguez had been sexually assaulting the minor victim from the age of five, up to this incident when the victim was seventeen years old. In addition, Elias Rodriguez took a video of the sexual assault with his cell phone. On January 21, 2022, Elias Rodriguez pleaded guilty to the one-count Indictment.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Homeland Security Investigations.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Morris County Man Sentenced to 78 Months in Prison for Role in Passaic County Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 78 months in prison for his role in a Passaic County cocaine distribution conspiracy, U.S. Attorney Philip R. Sellinger announced.
Kiuny Perez, 44, of Rockaway Township, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a criminal information charging him with conspiracy to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
The defendant was part of a conspiracy to distribute large quantities of cocaine in and around Passaic County. In November 2017, law enforcement officers observed Perez and a co-defendant meet at a location in Passaic and exchange a package containing cocaine. Law enforcement officers stopped Perez’s vehicle and found cocaine in a hidden compartment underneath the dashboard. Law enforcement officers also discovered $297,350 in cash in Perez’s residence.
In addition to the prison term, Judge Cecchi sentenced Perez to three years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office under the direction of Passaic County Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Michael Avenatti Sentenced to 48 Months in Prison for Identity Theft and Defrauding A Former ClientRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MICHAEL AVENATTI was sentenced today in Manhattan federal court by United States District Judge Jesse M. Furman to 48 months in prison for fraud and aggravated identity theft. AVENATTI was previously found guilty on February 4, 2022, following a two-week jury trial.
U.S. Attorney Damian Williams said: “Lawyers have a duty to be loyal and advocates for their clients. Far from being a loyal advocate for his client, Michael Avenatti stole his client’s identity and her money in order to line his own pockets. Now, Avenatti will serve a substantial prison sentence for his brazen crimes and betrayal of his client.”
According to the allegations in the Indictment, court documents, and evidence presented at trial:
AVENATTI met Stormy Daniels in February 2018, when she was seeking an attorney to assist her with respect to a non-disclosure agreement that she had earlier signed with President Donald Trump. Daniels later signed a book deal to publish her memoir, and AVENATTI, pretending to act as her attorney and in her interests, stole a portion of the advance on that deal by directing her literary agent to send the money to a bank account AVENATTI controlled.
Specifically, AVENATTI stole two installments of Daniels’ book advance, totaling $297,500. AVENATTI sent to Daniels’ literary agent a fraudulent and unauthorized letter purporting to be from Daniels and appearing to bear her signature, which directed that future payments be sent to a bank account controlled by AVENATTI. In fact, AVENATTI wrote the letter himself, never received authorization from Daniels, and caused Daniels’ signature to be copied and pasted from another document onto the letter without her consent.
After transmitting the fraudulent letter to Daniels’ literary agent, AVENATTI received an installment of Daniels’ advance, worth $148,750, and promptly spent the money to satisfy his own personal and business expenses. When Daniels began inquiring of AVENATTI as to why she had not received the payment, AVENATTI lied to Daniels, telling her that her publisher had not made the payment. Approximately one month after diverting the payment, after Daniels threatened to go directly to her publisher about the missing payment, AVENATTI obtained a personal loan to pay $148,750 to Daniels, so that Daniels would not realize that AVENATTI had previously taken and used Daniels’ money.
A short time later, AVENATTI pressured the publisher to make the next installment payment early, purportedly at Daniels’ request though in truth without her awareness. AVENATTI soon received that installment, another payment of $148,750, which he again spent for his own purposes. For months after he had stolen this installment, Daniels repeatedly asked AVENATTI about the missing payment and, after he again falsely claimed that the publisher had not made the payment, asked that AVENATTI, as her lawyer, assist her in obtaining the book payment. AVENATTI continued to lie and claim that he was fighting with the publisher on her behalf when, as he knew, the publisher had made the payment early, but that he had stolen it. At the same time, further to avoid discovery of his scheme, AVENATTI, purporting to act as Daniels’ attorney, told her publisher and literary agent not to respond to direct requests for information from Daniels.
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In addition to the prison sentence, AVENATTI, 51, of Los Angeles, California, was sentenced to three years of supervised release, as well as restitution and forfeiture. AVENATTI is currently serving a thirty-month sentence for extorting NIKE, Inc., imposed by Judge Paul G. Gardephe in United States v. Avenatti, 19 Cr. 373. Thirty months of imprisonment in this case were imposed consecutively with AVENATTI’s other sentence, and the remainder will run concurrently.
Mr. Williams praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The cases are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Matthew Podolsky, Robert B. Sobelman, and Andrew A. Rohrbach are in charge of the prosecution.
Meriden Man Charged with Trafficking CocaineRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that a federal grand jury in New Haven returned an indictment yesterday charging BIMAEL ACEVEDO-ROMAN, 28, of Meriden, with one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
As alleged in court documents and statements made in court, in October 2020, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force began investigating a cocaine trafficking operation headed by Acevedo-Roman. The investigation revealed that Acevedo-Roman was coordinating the shipment of parcels containing kilogram quantities of cocaine from U.S. Post Offices in Puerto Rico to various “drop addresses” in Meriden, New Britain and Bristol, and the shipment of parcels of cash back to Puerto Rico. Acevedo-Roman and others picked up parcels from the drop addresses and delivered them to Acevedo-Roman’s Meriden residence.
During the investigation, it is alleged that investigators intercepted and seized mail parcels containing more than five kilograms of cocaine and $179,300 in cash, and have identified dozens of other suspicious parcels that likely contained kilogram quantities of cocaine and bulk currency.
Acevedo-Roman was arrested on May 18, 2022, and is currently released on a $100,000 bond. If convicted of the charge, he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Stephanie Levick.
Medford Man Sentenced to Federal Prison for Possessing Methamphetamine on Post-Prison SupervisionRead the Press Release
MEDFORD, Ore.—A Medford, Oregon man on post-prison supervision after a previous drug trafficking conviction was sentenced to federal prison today for eluding law enforcement while in possession of methamphetamine and a firearm.
Vincent Russell Jacobo, 38, was sentenced to 80 months in federal prison and five years’ supervised release.
According to court documents, on December 31, 2020, a Jackson County Sheriff’s Office deputy was on patrol in Medford when he observed a black sedan driving toward him at a high rate of speed. The deputy attempted to stop the vehicle, but it fled and the deputy terminated the pursuit. A short time later, the deputy located the vehicle in a ditch and observed Jacobo attempting to crawl out the back window. Authorities arrested Jacobo and located a gram of heroin, two cell phones, and $1,500 on his person. Later, detectives from the Medford Area Drug and Gang Enforcement team (MADGE) searched Jacobo’s vehicle and located more than 90 grams of methamphetamine, a small quantity of heroin, a loaded pistol, and drug packaging material. At the time of the incident, Jacobo had recently been released from state prison after convictions for drug trafficking and other felonies.
On January 28, 2021, Jacobo was charged by criminal complaint with possessing with intent to distribute methamphetamine, illegally possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime. Later, on February 1, 2022, he was charged by criminal information with possessing with intent to distribute methamphetamine. On February 28, 2022, Jacobo waived indictment and pleaded guilty.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from MADGE. It was prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
Marietta Man Pleads Guilty to Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Thomas Martin, age 35, of Marietta, New York, pled guilty yesterday to one count of distribution of child pornography, one count of receipt of child pornography and three counts of possession of child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.
Martin, who remains detained pending his sentencing scheduled for September 29, 2022, before United States District Judge Brenda K. Sannes, faces at least 5 years and up to 60 years in prison and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Martin will also be required to register as a sex offender.
As part of his guilty plea yesterday, Martin admitted that he actively traded child pornography images and videos using a social media messaging application on his cellular telephones, and that on January 30, 2022, he distributed an image file depicting the lascivious display of a child’s genitals who was between 4 and 6 years old. Martin further admitted that from February 3, 2020 to January 30, 2022, he received child pornography through the messaging application, including an image file depicting the lascivious display of a child’s genitals who was between 9 and 11 years old. Finally, Martin admitted that on February 11, 2022, he knowingly possessed 158 image files and 2 video files depicting child pornography on his three cellular telephones.
Martin’s case was investigated by U.S. Homeland Security Investigations (HSI), and Investigators of the New York State Police, Computer Crimes Unit (CCU). The case is being prosecuted by Assistant U.S. Attorney Geoffrey J.L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Man Pleads Guilty to Violating the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on June 1, 2022, TRAVIS GIBSON, 48, pled guilty to possession with the intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
GIBSON conspired to distribute methamphetamine throughout Jefferson Parish and the surrounding areas for over a year.
At sentencing, GIBSON faces up to a maximum term of imprisonment of twenty (20) years, a maximum fine of up to $1,000,000.00, at least three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee per count, pursuant to Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
Los Angeles Man Sentenced to Federal Prison for Bank Fraud and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Los Angeles man was sentenced to federal prison today after he orchestrated an elaborate bank fraud and identity theft scheme targeting an elderly couple residing in Oregon.
Ijomah Joseph Oputa, 53, was sentenced to 36 months in federal prison and five years’ supervised release. Oputa was also ordered to pay $40,396 in restitution and forfeit $32,478.
According to court documents, since his arrest in Los Angeles in March 2021, Oputa has failed to disclose to law enforcement the details of his many suspected fraud schemes. Instead, he has repeatedly misled investigators on his sources and level of income as well as basic biographical details such as his date of birth, where and with whom he lives, how many siblings he has, and whether his parents are still living. Oputa’s repeated obfuscation of basic facts presented significant challenges to law enforcement. Despite these, investigators successfully uncovered a scheme Oputa concocted targeting an elderly couple residing in northeast Oregon.
In April of 2019, an elderly victim and his wife, both in their seventies, obtained a home equity line of credit from First Community Credit Union (FCCU). The couple accessed cash from this line of credit via an account they maintained at FCCU. Just two weeks after receiving the loan, Oputa called FCCU’s customer-service line, pretending to be his elderly victim. Oputa verified his stolen identity with the victim’s basic biographical details, account number, and monthly payment information. Oputa then proceeded to hijack his victim’s account.
After linking the victim’s bank account to his own email address, Oputa changed the mailing address on the account to a mailbox he controlled at a commercial mail drop in Los Angeles. Oputa then requested that a debit card linked to the account be issued to himself. Between June 2 and July 12, 2019, Oputa used the debit card to purchase 41 money orders at five U.S. Postal Service locations in the greater Los Angeles area. Together, the money orders totaled more than $32,000. Oputa deposited most of the money orders into bank accounts he maintained under other stolen identities at several Los Angeles banks. A review of records from one such account revealed that 74 money orders totaling nearly $71,000 had been laundered through it.
In mid-July 2019, the adult victim reported the unauthorized account activity to FCCU and local police. By then, FCCU had suffered losses exceeding $40,000. Local police referred the investigation to the U.S. Postal Inspection Service (USPIS).
On February 27, 2021, Oputa was charged by criminal complaint with aggravated identity theft and bank fraud. Later, on March 16, 2021, a federal grand jury in Portland indicted him on the same charges. Finally, on April 20, 2022, Oputa pleaded guilty to both charges.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by USPIS with assistance from the IRS, Environmental Protection Agency, and Small Business Administration Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Liberty Man Sentenced for Trafficking Fentanyl Near High SchoolRead the Press Release
KANSAS CITY, Mo. – A Liberty, Mo., man was sentenced in federal court today for distributing fentanyl from his apartment near Liberty High School and for illegally possessing a firearm.
Daniel I. Ramirez, 22, was sentenced by U.S. District Judge Gary A. Fenner to 11 years in federal prison without parole.
On Oct. 19, 2021, Ramirez pleaded guilty to one count of conspiracy to distribute fentanyl, one count of distributing fentanyl within 1,000 feet of a public school, and one count of possessing a firearm in furtherance of a drug-trafficking crime. Co-defendant Valerie Rios, 23, also of Liberty, has pleaded guilty to the same charges and awaits sentencing.
Ramirez admitted that he participated in a conspiracy to distribute fentanyl from March 4 to April 30, 2021. According to court documents, Rios sold an undercover detective fentanyl on three occasions between March 4 and March 9, 2021.
Law enforcement officers executed a search warrant at Ramirez’s apartment on South Forrest Avenue in Liberty, which is near Liberty High School, on March 12, 2021. Officers found a plastic bag that contained 184 counterfeit oxycodone pills that were actually fentanyl, a Smith and Wesson .45-caliber handgun with a loaded magazine, four magazines and ammunition, and $12,340 in cash.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Clay County, Mo., Sheriff’s Department, the Drug Enforcement Administration, the Liberty, Mo., Police Department, and the Missouri State Highway Patrol.
Lev Tahor Operatives Convicted at Trial of Kidnapping OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that MORDECHAY MALKA and MATITYAU MALKA were convicted in White Plains federal court of kidnapping following a three-week jury trial. The defendants, members of an extremist Jewish sect called Lev Tahor, participated in a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York in December 2018. The kidnappers then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband,” who she had religiously “married” when she was 13 years old. After the children were recovered and returned to their mother, the defendants and their co-conspirators tried to kidnap the children a second time in March 2019. Two co-conspirators, Nachman Helbrans and Mayer Rosner, were previously convicted of kidnapping and sexual exploitation charges in connection with this case after an October 2021 trial and have each been sentenced to 12 years in prison.
According to the allegations contained in the Superseding Indictment, other court filings, and the evidence presented at trial:
MORDECHAY MALKA and MATITYAU MALKA are U.S. citizens and members of Lev Tahor, an extremist Jewish sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala. In or about October 2018, the mother of Minor-1 and Minor-2 escaped from Lev Tahor’s compound in Guatemala and arrived in the United States in early November 2018. Also in November 2018, a Brooklyn family court granted her sole custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.
After the mother fled and settled in New York with her children, MORDECHAY MALKA and other Lev Tahor members devised a plan to return Minor-1 and Minor-2 to the Lev Tahor community. Then, in December 2018, the kidnappers took the children in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico. MORDECHAY MALKA and his co-conspirators used disguises, aliases, drop phones, fake travel documents, an encrypted application, and a secret pact to execute on their kidnapping plan. At the time of the kidnapping, Lev Tahor leadership was seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran.
Following a three-week search involving hundreds of local, federal, and international law enforcement officers, Minor-1 and Minor-2 were recovered in Mexico and returned to their mother in New York.
Then, in March 2019, members of Lev Tahor again tried to kidnap the children. The leader of Lev Tahor, Nachman Helbrans, attempted another kidnapping of the children while incarcerated in Westchester, New York. MATITYAU MALKA acted as the operative on the ground to execute the attempted kidnapping.
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MORDECHAY MALKA, 27, of Guatemala, and MATITAU MALKA, 30, of Guatemala, were convicted of one count of conspiring to commit international parental kidnapping, to unlawfully use a means of identification, and to enter by false pretenses the secure area of an airport, which carries a maximum sentence of five years in prison. MORDECHAY MALKA was also convicted of two counts of international parental kidnapping, which carries a maximum sentence of three years in prison for each count. MATITYAU MALKA was also convicted of one count of attempted international parental kidnapping, which carries a maximum sentence of three years in prison for each count.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI, United States Customs and Border Protection, the Department of State, the Transportation Security Administration, the New York State Police, the Rockland County Sheriff’s Department, the Sullivan County District Attorney’s Office, the Village of Spring Valley Police Department, Special Agents with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners in Mexico, Guatemala, Canada, and Israel.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Jamie Bagliebter, Jim Ligtenberg, and Daniel Tracer, and paralegal specialist Shannon Becker, are in charge of the prosecution.
Lawrence Man Pleads Guilty in Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to his role in a Lawrence-based fentanyl trafficking conspiracy.
Elvin Mendoza, 25, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Patti B. Saris scheduled sentencing for Oct. 12, 2022.
In June 2021, Mendoza was indicted along with 13 others following an over two-year investigation into a drug trafficking organization (DTO) operating out of the Lawrence area. As a result of the investigation, Mendoza was identified as a drug trafficker who distributed fentanyl throughout Massachusetts and southern New Hampshire. In December 2020, approximately $74,000 cash and approximately four kilograms of fentanyl, among other evidence, were seized from members of the DTO in various locations in Billerica, Methuen, Lawrence and Ayden, N.C.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least five years and up to life in prison, at least four years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by Homeland Security Investigations in Boston and the Andover, Billerica, Haverhill, Lawrence, Lowell, Methuen, North Andover, Tewksbury, Wilmington and Salem (N.H.) Police Departments. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Criminal Division is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Judge Orders Middle Georgia Family Rehab to Pay $9.6 Million in Damages for Submitting Hundreds of Fraudulent TRICARE/Medicaid ClaimsRead the Press Release
MACON, Ga. – The District Court for the Middle District of Georgia found in favor of the United States and the State of Georgia in a civil case involving the fraudulent billing of hundreds of TRICARE and Medicaid claims by a Macon health care facility, ordering the defendants to pay $9,617,679.22 in damages and penalties.
U.S. District Judge Tilman E. “Tripp” Self, III issued the judgment following an evidentiary hearing in U.S. v. Middle Georgia Family Rehab (MGFR) on Tuesday, May 24. The judgment was entered today.
“The ‘reckless disregard’ displayed by Middle Georgia Family Rehab in its billing should serve as a warning to other health facilities across Georgia—and the nation—that filing improper and false claims will come with hefty consequences,” said U.S. Attorney Peter D. Leary. “Middle Georgia Family Rehab reaped hundreds of thousands of dollars from taxpayers by improperly filing claims with agencies designated to provide physical therapy and speech therapy services to children and military families. A strong team effort from our Civil Division and its investigative partners resulted in a significant judgment against Middle Georgia Family Rehab which reinforces that our community’s most deserving patients are entitled to quality health care services.”
“Providers who undermine the integrity of the Department of Defense health care system for their own selfish gain must be held accountable,” said Special Agent in Charge Cynthia A. Bruce, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners will aggressively pursue those who divert funds intended for military families.”
“When Medicaid providers fraudulently divert funds for personal gain, not only does it undermine the needs of those who are most vulnerable, but the taxpayers of Georgia are harmed as well,” said Georgia Attorney General Chris Carr. “Middle Georgia Family Rehab was charged with providing trusted health services to our military families and children in-need, and it failed to fulfill its responsibilities by instead choosing to exploit the system. This type of deceptive behavior is entirely unacceptable, and those who abuse our publicly-funded health care programs will be held accountable.”
U.S. District Judge Self initially granted partial summary judgment in this False Claims Act case on Wednesday, April 20. According to court documents, in that decision, the Court determined that approximately 800 false claims for services were improperly billed to Medicaid and TRICARE by MGFR and MGFR owner Brenda Hicks. Those improper services were billed under the names of a physical therapist and a speech therapist who were no longer employed by MGFR and therefore could not possibly have provided the services in question.
In analyzing the question of whether MGFR knowingly submitted the false claims, the Court found that MGFR’s conduct “epitomizes ‘reckless disregard’ of the truth.” (ECF No. 52 at 30.) Specifically, the Court found that MGFR’s submission of almost 800 claims to Medicaid and TRICARE over an eight-month period following the resignation of one physical therapist and the submission of 41 claims following the resignation of a speech therapist could not be characterized as an “honest mistake.” (ECF No. 52 at 30.)
Assistant U.S. Attorneys Bowen Reichert Shoemaker and Taylor McNeill in the Civil Division are handling this case on behalf of the United States, with assistance from Senior Assistant Attorney General Rick Tangum, Assistant U.S. Attorney Todd Swanson, and Investigators Scott Jones and Shaketia Morgan, along with investigators from the Georgia Medicaid Fraud Control Division, U.S. Department of Defense, U.S. Department of Health and Human Services and the Department of Veterans Affairs.
Jesse Laslovich sworn in as U.S. Attorney for District of MontanaRead the Press Release
MISSOULA – U.S. District Judge Dana L. Christensen swore in Jesse Laslovich today as the United States Attorney for the District of Montana. President Biden nominated Laslovich on Jan. 31, and the U.S. Senate confirmed him on May 17.
U.S. Attorney Laslovich leads all federal criminal prosecutions and civil litigation in the District of Montana. The district has offices in Helena, Great Falls, Missoula, Butte and Billings.
“I am honored to serve as United States Attorney for the District of Montana,” U.S. Attorney Laslovich said. “As the chief federal law enforcement officer, I look forward to working with communities across Montana and with our federal, state, local and tribal partners to improve public safety, seek justice and uphold civil rights for everyone. I am excited to join the U.S. Attorney’s Office and to work with the outstanding attorneys and support staff who have devoted their careers to public service.”
Prior to becoming the U.S. Attorney, Laslovich served as regional vice president for the SCL Health Montana-Wyoming region since 2017. From 2009 to 2016, Laslovich was chief legal counsel in the office of the Montana Commissioner of Securities and Insurance, where he prosecuted securities fraud cases. During 2011 and 2012, Laslovich also served as a special assistant U.S. attorney on securities cases in the U.S. Attorney’s Office for the District of Montana. From 2007 to 2008, Laslovich was the lead consumer protection attorney in the Montana Attorney General’s Office, in the Montana Department of Justice. Laslovich began his legal career at Datsopoulos, MacDonald & Lind, P.C. in Missoula and also taught as an adjunct professor at the University of Montana School of Law for two semesters.
As one of the youngest Montanans ever elected to the Montana Legislature, Laslovich first served in the House of Representatives from 2001 through 2004 and then in the Senate from 2005 to 2010, representing Anaconda-Deer Lodge, Granite, and Powell counties.
Laslovich received his J.D. from the University of Montana School of Law in 2006 and his B.A., with high honors, from the University of Montana in 2003.
During his career, Laslovich has volunteered his time to non-profit organizations, including Aware, which serves people who have developmental and mental disabilities, and ExplorationWorks, which promotes the sciences to children, and he volunteers as a youth baseball and basketball coach. Laslovich also served on the professionalism committee for the State Bar of Montana.
U.S. Attorney Laslovich thanked former U.S. Attorney Leif M. Johnson, who has served as the interim U.S. Attorney since December 2020, for his leadership and dedicated service. Johnson joined the office in 1995 as a career prosecutor and previously served as First Assistant U.S. Attorney under U.S. Attorney Kurt G. Alme, who left the office in December 2020 with the change in administration.
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Indictment Unsealed Charging a Birmingham Lawyer with Child Exploitation OffensesRead the Press Release
BIRMINGHAM, Ala. – Today, a federal grand jury indictment was unsealed charging a Birmingham lawyer with child exploitation offenses, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
The two-count indictment filed in the U.S. District Court charges Chase Tristian Espy, 36, with attempted coercion and enticement of a minor and possession of child pornography arising out of events that occurred from March 2021 to August 2021.
The attempted coercion and enticement of a minor charge carries a statutory imprisonment range of ten years to life and a $250,000 fine. The maximum penalty for child pornography is 20 years in prison and a $250,000 fine.
Birmingham FBI’s Child Exploitation Human Trafficking Task Force (CEHTTF) investigated the case along with the Homewood Police Department and the Alabama Law Enforcement Agency (ALEA). Assistant U.S. Attorneys R. Leann White and Jonathan Cross are prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Indian National Indicted for Immigration Documents Fraud and Aggravated Identity TheftRead the Press Release
CAMDEN, N.J. – An Indian national was indicted for immigration documents fraud and aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today.
Rohit Kumar, 30, of West Bengal, India, is charged with six counts of submitting false and fraudulent immigration documents and six counts of committing aggravated identity theft.
According to documents filed in this case and statements made in court:
Kumar worked for several years in India for one of the largest information technology companies in the world. This IT company contracted with an electric utility company that was based in New Jersey and owned and operated nuclear power facilities at multiple locations, including in southern New Jersey. Under the contract, the IT company supplied services to the New Jersey company, including through the use of foreign national workers from India who worked in specialized occupations.
Kumar helped to arrange for Indian national workers to enter the United States under the H-1B visa program and then work at the New Jersey company. Some of these Indian national workers were stationed at a nuclear power plant in southern New Jersey, while other foreign workers were stationed at the company’s other locations in and around New Jersey.
On several occasions in 2017 and 2018, Kumar created and presented false and fraudulent documents to the United States Citizenship and Immigration Service in support of the H-1B visa applications of the Indian national workers. The documents purported to contain the authorized signature of a contracting manager at the New Jersey electric utility company, but the contracting manager never signed or authorized a signature on these documents.
Each count of immigration documents fraud is punishable by a sentence of up to 10 years in prison, as well as a maximum fine of $250,000. Each count of aggravated identity theft is punishable by sentence of two years in prison, which must be served consecutively to any other term imposed, as well as a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Jason M. Richardson in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Illegal alien admits to reentry chargeRead the Press Release
WHEELING, WEST VIRGINIA – Maical Kvec, a Romanian National, has admitted to being in the United States illegally, United States Attorney William Ihlenfeld announced.
Kvec, 24, pleaded guilty today to one count of “Reentry of Removed Alien.” Kvec, after being removed from the Chicago in 2019 and convicted of a felony in 2017 in California and another charge in 2019 in Iowa, was found in February 2022 in Ohio County.
Kvec faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The U.S. Department of Homeland Security Immigration and Customs Enforcement and the West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Houston Man Sentenced for Stealing $230,000 from Bank ATMsRead the Press Release
KANSAS CITY, Mo. – A Houston, Texas, man was sentenced in federal court today for stealing more than $230,000 from bank ATMs in Kansas City, Mo., and Allen Park, Michigan.
Deandre J. Gilliam, 20, was sentenced by U.S. District Judge Stephen R. Bough to three years and one month in federal prison without parole. The court also ordered Gilliam to pay $218,835 in restitution to JPMorgan Chase Bank, N.A.
On Jan. 6, Gilliam pleaded guilty to one count of aiding and abetting bank theft. He also pleaded guilty to one count of aiding and abetting the possession and concealment of money stolen from a bank, which was a case transferred from the Eastern District of Michigan.
Gilliam admitted that he and his co-conspirators broke into and stole $150,200 from the Chase Bank ATM located at 1614 E. 63rd Street in Kansas City, Mo., on March 6, 2020. Gilliam and his co-conspirators left Houston at about 5 p.m. on March 5, 2020, and traveled to Kansas City in three vehicles. Between midnight and 4:30 a.m. on March 6, 2020, they stole a Ford F-250 pick-up truck that was parked on the street in Fairway, Kansas, to use in their ATM theft. They used their cell phones to search for a suitable ATM.
At approximately 5:30 a.m. on March 6, 2020, four conspirators (wearing clothing that completely covered their faces and bodies) used tools to break into the ATM. The truck then backed up to the ATM and two chains were attached to the ATM. The truck then accelerated away from the ATM and forcibly pulled apart the ATM’s inner encasement. Conspirators removed canisters of cash from the ATM, got back into the truck, and drove away. While the conspirators in the truck broke into the ATM, others assisted by sitting in a nearby get-away vehicle and conducting counter-surveillance for police vehicles. Investigators later found the abandoned truck, with the tow chains still attached, near the Citadel Apartments.
Gilliam and his co-conspirators drove from Kansas City back to Houston. Law enforcement officers, who used a traffic camera to obtain the license plate number of the get-away vehicle, were able to track their return trip. Officers intercepted the vehicles on the outskirts of Houston and attempted to stop the vehicles. One of the vehicles pulled over immediately, but the other two vehicles fled from the officers and a high-speed chase ensued. One of the fleeing vehicles crashed and its occupants were arrested.
The occupants of the third vehicle, including Gilliam, eventually abandoned the vehicle and fled on foot. As he fled from the police, Gilliam picked up a red Spiderman backpack that had been dropped by one of his co-conspirators. Gilliam was still in possession of the backpack, which contained $72,385 stolen from the bank ATM, when he was arrested.
On June 2, 2021, Gilliam traveled from Houston to the Detroit, Mich., area. On June 3, 2021, Gilliam and his co-conspirators worked together to forcibly break into an ATM located outside the Chase Bank branch in Allen Park, Mich. Gilliam and his co-conspirators used a stolen Ford F250 pick-up truck, hooks, chains, and crowbars to break into the ATM and steal approximately $80,240.
Gilliam and his co-conspirators transported the stolen money to a rental house located about eight miles away, in Detroit. Later the same day, law enforcement officers executed a search warrant at that residence, where Gilliam and four co-conspirators were found. Officers found $71,238 in stolen money concealed in various places throughout the house. They also found the tools and clothing used to break into the ATM.
Two of Gilliams’s co-defendants have pleaded guilty and been sentenced, and two co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and Leigh Farmakidis. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Houston, Texas, Police Department, the Texas Department of Public Safety, the Montgomery County, Texas, Sheriff’s Department, the Montgomery County, Texas, Constable, the Detroit, Mich., Police Department and the Allen Park, Mich., Police Department.
Honesdale Man Indicted on Child Pornography ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Drew Lynn Jennings, age 35, of Honesdale, Pennsylvania, was indicted on May 31, 2022, by a federal grand jury on child pornography charges.
According to United States Attorney John C. Gurganus, the indictment alleges that Jennings attempted to distribute child pornography on June 5, June 22 and June 23, 2021, in Wayne County.
The case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case was brought as 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 the United States Attorneys' 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to one year in federal prison.
Juan Raymundo-Perez, age 34, a citizen of Guatemala illegally present in the United States and residing in Dubuque, Iowa, received the prison term after a guilty plea on February 28, 2022, to one count of illegal reentry into the United States after having been deported.
In a plea agreement, Raymundo-Perez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. In June 2017, Raymundo-Perez was convicted in the Northern District of Iowa of using a fraudulent permanent resident card and a fraudulent Social Security card with numbers assigned to other people to illegally obtain employment in Dubuque. Illegal aliens are not authorized to work in the United States. Raymundo-Perez was deported to Guatemala by immigration officials in July 2017. He claimed to have illegally re-entered the United States through Texas in April 2021. On November 8, 2021, immigration officials learned Raymundo-Perez had illegally returned to the United States and found Raymundo-Perez at the Dubuque County Jail following his arrest on state charges. Further investigation by immigration officials showed that Raymundo-Perez again used a fraudulent permanent resident card and a fraudulent Social Security card with numbers assigned to other people to illegally obtain employment in Dubuque using an alias in April 2021.
Raymundo-Perez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Raymundo-Perez was sentenced to imprisonment of 12 months and one day. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Raymundo-Perez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1035.
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Grand jury charges 2 New York men in $1 million, California-to-Cincinnati narcotics conspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged two New York men in a narcotics conspiracy involving more than 66 pounds of cocaine and at least 10 pounds of heroin.
Maximo Pena Herrera, 40, and Joel Serrata Rosario, 27, were each charged with conspiring to possess with intent to distribute at least one kilogram of heroin and five kilograms or more of cocaine.
Rosario was charged with a second count of possessing with the intent to distribute cocaine.
According to court documents, on May 11, law enforcement conducted a traffic stop in El Reno, Oklahoma on a commercial truck driver traveling from California to Cincinnati. The DEA Dallas-Oklahoma District Office assisted agents from the Oklahoma Corporation Commission (OCC) and Oklahoma Bureau of Narcotics (OBN) on the traffic stop.
A drug-detecting canine alerted to an SUV being transported by the hauler truck. Law enforcement officials discovered 29 kilograms of cocaine and five kilograms of heroin in a hidden compartment within the SUV. The amount of narcotics seized has a street value of more than $1 million.
Court documents detail that law enforcement tracked the vehicle to the Cincinnati area where Herrera and Rosario allegedly picked up the vehicle and paid the commercial truck driver $1,900 in cash. It is alleged the defendants were instructed by an inmate in a New York jail to obtain the narcotics in Harrison, Ohio, and deliver them to a specific location in Cincinnati.
A subsequent search of Rosario’s Cincinnati hotel room led agents to discover an additional three kilograms of cocaine.
The narcotics conspiracy charged in this case carries a penalty of at least 10 years and up to life in prison. Possessing with intent to distribute cocaine, as charged against Rosario, is punishable by five to 40 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kent Kleinschmidt, Acting Special Agent in Charge, Drug Enforcement Administration (DEA); and other members of the DEA’s drug task force announced the charges. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury Indicts Former UC Davis Assistant Water Polo CoachRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Daniel Joseph Noble, 26, of Davis, charging him with distribution of visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
According to court documents, while working as the assistant water polo coach for UC Davis men’s team and the associated youth team, Noble joined a Kik group where users exchanged videos and images depicting the sexual abuse of children. On multiple dates in 2022, Noble sent the Kik group different videos showing children being sexually abused. Noble was arrested during the execution of a search warrant at his residence in Davis on May 19, 2022.
This case is the product of an investigation by the Federal Bureau of Investigation (in Jacksonville, FL and Sacramento, CA) and the Sacramento Internet Crimes Against Children task force. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Noble has been released on a $100,000 bond, with special conditions including no-contact with minors and home confinement with electronic location monitoring.
If convicted, Noble faces a maximum statutory penalty of 20 years in prison, with a mandatory minimum of five years in prison, a $250,000 fine, and up to a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as 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 the United States Attorneys’ 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.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Gladstone Woman Pleads Guilty to Arson-for-Hire Attempt of KC BusinessRead the Press Release
KANSAS CITY, Mo. – A Gladstone, Mo., woman pleaded guilty in federal court today to attempting to hire an arsonist to destroy her commercial building in Kansas City, Mo., which contained several businesses.
Mia Lee Jamison, 70, pleaded guilty before U.S. Magistrate Judge Lajuana M. Counts to one count of soliciting a crime of violence – specifically, to maliciously destroy a building by arson – and one count of making a false statement to investigators of the Bureau of Alcohol, Tobacco, Firearms and Explosive.
By pleading guilty today, Jamison admitted that she met with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives at her home on several occasions in April 2019 to discuss hiring him to commit arson. She offered to pay the undercover agent $150,000 to burn her commercial building, Mia Plaza, which is located near the corner of 39th Street and Bell Avenue in Kansas City. Three businesses operated at that location at that time – 39th World of Spirits (a liquor and grocery store), Bob Wasabi Kitchen (a sushi bar), and Sahara Sheesha Lounge (a hookah lounge).
Jamison told the undercover agent that she was going to be losing ownership of the building due to a civil lawsuit, and wanted the building burned before April 29, 2019. She told the agent she had a $1.5 million insurance policy on the building (it was actually $2 million). She agreed to pay him $150,000 and gave him a deposit of $3,500. Jamison wanted the fire to look like an accident, and the undercover agent agreed to set the fire between 3 a.m. and 5 a.m. to limit the risk to the tenants.
On April 28, 2019, Jamison met with the undercover agent for the last time. She told the undercover agent she had removed the video surveillance cameras at the building in preparation for the fire and wanted the building to be burned that night. Investigators recorded all the meetings between Jamison and the undercover agent by either audio or video recording equipment, or both.
At approximately 4 a.m. the next morning, federal investigators contacted Jamison at her residence. Investigators asked whether she burned down the building in question or whether she asked someone to burn the building down. On multiple occasions she denied requesting or hiring someone to destroy the building by fire.
Following the interview, they told Jamison her building had not actually been damaged by a fire but was still standing and placed her under arrest.
Under federal statutes, Jamison is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Trey Alford and Patrick D. Daly. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Georgia Meth Supplier Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Gainesville, Georgia, man was sentenced on May 27, 2022, to 15 years in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Isaiah Daniel Lambert was identified during an investigation in which investigators used a confidential informant to make a controlled purchase of methamphetamine ice from him. The investigation began in 2016 in Baldwin County, Alabama, and 13 defendants were arrested and prosecuted in federal court who implicated Lambert as their source of supply for methamphetamine ice. Some of the drugs were brought to Mobile County for distribution, and some were brought to Baldwin County for distribution. Court documents also reflect that Lambert himself traveled to Baldwin County and to Pensacola, Florida, to transport drugs and pick up drug money. Lambert pled guilty to the conspiracy charge in federal court in Mobile in July of 2021. He admitted he was responsible for the distribution of approximately 152 kilograms of methamphetamine ice.
United States District Court Judge Kristi K. Dubose imposed the 15-year sentence. The judge further ordered that Lambert would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Lambert will also undergo mental health counseling, testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Lambert pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the Mobile County Sheriff’s Office, the Department of Homeland Security, and the Federal Bureau of Investigation. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.Georgia Man Arranging Methamphetamine Transactions from Within Federal Prison Sentenced to 300 Additional MonthsRead the Press Release
TALLAHASSEE, FLORIDA – Brian Stanton, 38, of Athens, Georgia, was sentenced to 300 months in federal prison following his trial conviction on charges of conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence.
“Cooperative and concerted efforts like Operation Arrowhead enable our local, state, and federal law enforcement partners to identify and investigate those distributing addictive and deadly controlled substances in both our urban and rural communities,” said U.S. Attorney Coody. “We remain vigilant to support their investigative efforts and will aggressively prosecute those engaged in drug trafficking throughout North Florida.”
Stanton was already serving federal sentences for possession of a firearm and conspiracy to distribute methamphetamine when he was arrested on the new charge. While incarcerated at a federal prison in Atlanta, Stanton used a contraband cellular telephone to arrange for the distribution of at least 24 pounds of methamphetamine through various sources of supply outside the prison between June 2019 and November 2020. His new sentence will run consecutive, meaning Stanton will not begin serving the 300 months, until after his current period of incarceration is complete. Upon release, Stanton will be on supervised release for ten years.
“This sentence demonstrates the commitment of the DEA to work with our local, state, and federal partners to ensure that those who continue to engage in criminal activities and bring this poison into our Florida communities will be held accountable for their actions,” said Miami Field Division Special Agent in Charge Deanne L. Reuter. “I commend the men and women who worked tirelessly on this investigation to dismantle this criminal drug network in order to keep their communities safe and healthy.”
“It is a constant battle to keep drug dealers off the street, and protect our families from their poisonous grip,” said Taylor County Sheriff Wayne Padgett. “It takes federal, state, and local agencies working together as one team to make it happen. All law enforcement officers who came together for the success of Operation Arrowhead are to be commended. However, our mission would have been unsuccessful without the assistance of public citizens who take the initiative to say something when they see something.”
“When it comes to those who endeavor to commit serious crimes, jurisdictional boundaries are of no concern or consequence,” said Perry Police Chief Cruse. “The only way to disrupt the abilities and markets of those dedicated to distributing illicit substances in our rural communities is through strong cooperative enforcement efforts. The investigation and prosecution of all those convicted in Operation Arrowhead was made possible by means of collaborative efforts. To have state, local, and federal partners dedicate competent professionals to this investigation are a positive example of an effective alliance with substantive results. The Perry Police Department and the City of Perry are appreciative of all who participated in this investigation.”
In addition to Stanton, the operation resulted in the conviction of 23 other individuals, including:
- Erica Keeler, 22, of Perry, Florida; Sentenced to time served
- Kristin Walker , 32 of Perry, Florida; Sentenced to time served
- Audrey Newmeyer, 56, of Perry, Florida; Sentenced to 18 months in federal prison
- Jeffrey Thomley, Jr., 32, of Perry, Florida; Sentenced to 18 months in federal prison
- Russell Walker, Jr., 34, of Perry, Florida; Sentenced to 24 months in federal prison
- Carlton Hull, 50, of Perry, Florida; Sentenced to 30 months in federal prison
- Kammra Witt, 53, of Silver Springs, Florida; Sentenced to 36 months in federal prison
- Heather Vann, 40, of Perry, Florida; Sentenced to 48 months in federal prison
- Connie Sullivan, 52, of Trenton, Florida; Sentenced to 48 months in federal prison
- Roger Slaughter, 36, of Perry, Florida; Sentenced to 60 months in federal prison
- Kathryn Comolli, 41, of Edgewater, Florida; Sentenced to 72 months in federal prison
- Mark Johns, 50, of Lake City, Florida; Sentenced to 72 months in federal prison
- James Watkins, 37, of Fort White, Florida; Sentenced to 108 months in federal prison
- Abel Guerra, 60, of Perry, Florida; Sentenced to 114 months in federal prison
- Cedrick Gaddy, 44, of Perry, Florida, Sentenced to 120 months in federal prison
- Paul Pridgeon, 73, of Mayo, Florida; Sentenced to 144 months in federal prison
- Robert Murphy, 53 of Tallahassee, Florida; Sentencing set for June 15, 2022
- Kevin Lambert, 48, of Brooksville, Florida; Sentencing set for June 16, 2022
- Brian Morgan, 43 of Brooksville, Florida; Sentencing set for July 13, 2022
- Fawn Hurley, 37, of Mayo, Florida; Sentencing set for July 14, 2022
- Beyah Besha,44, of Perry, Florida; Sentencing set for July 27, 2022
- Robert Segrest , 40, of Perry, Florida; Sentencing set for August 4, 2022
- Stephen Gamble, 49, of Perry, Florida, Sentencing set for August 22, 2022
This conviction was the result of a collaborative investigation by the Drug Enforcement Administration, Taylor County Sheriff’s Office, Perry Police Department, Jefferson County Sheriff’s Office, Madison County Sheriff’s Office, Lafayette County Sheriff’s Office, the Florida Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Operation Arrowhead was a joint investigation targeting methamphetamine traffickers in several rural North Florida counties.
Operation Arrowhead was prosecuted by Assistant United States Attorneys Gary Milligan, Eric Mountin, James A. McCain, Kaitlin Weiss, and Christopher Elsey.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Gary Man Sentenced to 210 Months in PrisonRead the Press Release
HAMMOND- Jaron Johnson, 23, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to kidnapping, announced United States Attorney Clifford D. Johnson.
Johnson was sentenced to 210 months in prison followed by 2 years of supervised release.
According to documents in the case, on the night of April 14, 2019, Johnson participated in the kidnapping of a woman hoping to elicit information as to the whereabouts of a witness in his brother’s upcoming criminal case. Johnson participated in forcing the victim into a car at gunpoint, blindfolding and duct-taping her, and driving her around. The victim was beaten and threatened when she would not provide the information. At one point, the vehicle stopped, and another individual entered the back seat and continued beating the victim. A short time later the victim was dragged from the car to an area behind a house where one of the perpetrators shot her in the face and arm, and left her for dead, but she survived the attack.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary Police Department, Indiana State Police, and Lake County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorney Michael Toth and former Assistant United States Attorney Thomas Mahoney.
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.
Former insurance agent arrested for defrauding customers, COVID fraudRead the Press Release
CINCINNATI – A former insurance agent was arrested this morning on federal charges alleging he defrauded dozens of victims in the Cincinnati and Dayton area and fraudulently obtained two COVID Paycheck Protection Program loans.
Seneca Birchmore, 44, of Cincinnati, lost his license as an insurance agent in 2019 because he was writing insurance policies for people who did not want them so that he could collect the commissions.
According to court documents, after losing his license, Birchmore then stole the identities of two other insurance agents and used those identities to write more life insurance policies for customers who did not want them. It is alleged Birchmore had the commissions from dozens of local customer victims deposited into his own bank accounts.
Local law enforcement departments received complaints from victims that money was being automatically withdrawn from their bank accounts for insurance policies they never ordered. Many of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and Cincinnati.
The commissions for Birchmore’s original fraudulent insurance policies under his own name as an agent totaled more than $8,000. The commissions for policies created under the stolen identities of other agents totaled more than $80,000.
It is also alleged that, in a separate scheme, Birchmore fraudulently obtained two COVID Paycheck Protection Program loans totaling more than $40,000. Birchmore allegedly claimed on both loan applications that he owned a business in his name and stated his gross income for 2019 was more than $13 million. It is alleged that no such business exists.
Fraud in connection with emergency benefits is a federal crime punishable by up to 30 years in prison. Social security fraud carries a potential maximum penalty of five years in prison and aggravated identity theft includes a mandatory two years of imprisonment.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, was joined by the Social Security Office of Inspector General, U.S. Secret Service, Ohio Department of Insurance, Ohio Bureau of Motor Vehicles, U.S. Department of Labor Office of Inspector General, U.S. Marshals Service, Butler County Sheriff’s Office and Cincinnati Police Department in announcing the charges. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Tennessee Securities Broker-Dealer Sentenced to 78 Months’ Imprisonment for Embezzling $5.7 Million from Employee Pension Benefit PlanRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former securities broker based in Memphis, Tennessee, John Sherman Jumper, age 56, of Eads, Tennessee, was sentenced to 78 months’ imprisonment to be followed by three years on supervised release by Chief District Court Judge Matthew W. Brann, for embezzling $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer located in Clarence, Centre County, Pennsylvania. Chief Judge Brann also ordered Jumper to pay restitution to the pension plan in the amount of $2,426,550, reflecting partial financial recoveries obtained by Snowshoe Refractories on behalf of the plan.
According to United States Attorney John C. Gurganus, on April 9, 2021, Jumper forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016. Jumper used the embezzled funds to make unauthorized loans and investments for the purchase of a tubing plant in Arkansas and three other business, to pay off $1.2 million of his personal loans, and to cover his personal legal fees. In addition, Jumper received a personal interest in the businesses purchased with the embezzled pension funds, and his securities company, Alluvion Securities in Memphis, received over $1 million in fees from the sale of the Arkansas tubing plant.
The indictment stated that the Snow Shoe Refractories Employee Pension Plan for Hourly Employees included about 129 active and retired employees. At the time the alleged $5.7 million embezzlement began, the pension plan assets were worth approximately $9.8 million.
As a result of his fraudulent misappropriation of pension funds, Jumper has been the subject of civil and regulatory sanctions obtained by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), a private corporation that acts as a self-regulatory organization for member brokerage firms and exchange markets. On November 1, 2018, a federal district judge in the Western District of Tennessee granted the SEC’s motion for default judgment against Jumper, and the court there entered a final judgment as to Jumper and his companies and businesses. The final judgment permanently enjoined Jumper from violating securities laws and ordered that he disgorge $5,700,000, representing profits gained as a result of the fraudulent conduct, together with prejudgment interest in the amount of $726,758.79. On February 3, 2017, FINRA permanently barred him, with his consent, based on allegations that he misappropriated funds from the Snowshoe pension plan for his personal use and to infuse capital into his member firm, Alluvion Securities.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Employee Benefits Services Administration of the United States Department of Labor, the Financial Industry Regulatory Authority (FINRA), and the United States Securities and Exchange Commission. Assistant U.S. Attorney George J. Rocktashel prosecuted the case.
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Former State Highway Patrol Officer Sentenced for Selling Firearms Without a LicenseRead the Press Release
GREENSBORO, N.C. - Timothy Jay Norman, of Browns Summit, North Carolina, was sentenced today to 37 months in prison for unlawfully transporting and dealing in firearms, announced United States Attorney Sandra J. Hairston.
Norman, age 47, pleaded guilty on March 10, 2022, to dealing in firearms without a license, a violation of Title 18, United States Code, Sections 922(a)(1)(A), 923(a), and 924(a)(1)(D).
According to court-filed documents, beginning in January 2021, the Federal Bureau of Investigation (FBI) learned that Norman was selling firearms to various persons, including a convicted felon, while employed as a North Carolina State Highway Patrol (NCSHP) trooper. During the investigation, the FBI learned that Norman held out for sale, using the convicted felon as a “middleman,” various firearms, which included decommissioned NCSHP service weapons: Sig Sauer P226 .357 semi-automatic pistols; Arma Lite, AR-15 5.56mm semi-automatic rifles, and Beretta, Model 1201FP, 12-gauge shotguns. Thereafter, law enforcement agencies conducted three successful controlled purchase operations.
Specifically, on or about May 12, 2021, law enforcement, using a confidential human source, purchased a decommissioned Sig Sauer P226 .357 semi-automatic pistol, with the NCSHP badge engraved on top of the slide, in a case with two magazines, for $1,600 from Norman. On or about June 8, 2021, agencies, using a source, purchased a Beretta 12-gauge shotgun and an Arma Lite AR-15 semi-automatic rifle, one magazine, one soft black case, and one 50-round drum magazine from Norman at his home in Browns Summit, for $3,200. Finally, on or about June 24, 2021, law enforcement conducted a third successful controlled firearms evidence purchase from Norman, wherein Norman sold a NCSHP Sig Sauer P226 .357 semi-automatic pistol from his patrol car to a source at a closed gas station. Norman received $2,000 in FBI case funds in exchange for the decommissioned weapon. As to all of these firearms, records from the Federal Firearms Licensee (“the FFL”) where Norman purchased them establish that Norman made a significant profit as a result of the various transactions. The records also showed that Norman had purchased thirty-six firearms from the FFL since January 1, 2021.
On July 7, 2021, investigating agencies executed a search warrant on Norman’s home and seized thousands of rounds of ammunition and over fifty firearms. In Norman’s patrol car, they found two more firearms (neither of which was NCSHP-issued), including one AR-15 rifle that Norman purchased from the FFL earlier that year. There was also an envelope with over $2,000 in cash, which included FBI buy money from one of the controlled buy operations referenced above.
Norman was ordered to pay a $15,000 fine and will face three years of supervised release in addition to his 37-month prison sentence.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol-Internal Affairs Division investigated the case. The case was prosecuted by Assistant U.S. Attorney JoAnna G. McFadden.
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Former Ohio Police Chief Sentenced for Illegally Trafficking 200 Fully Automatic Machine GunsRead the Press Release
INDIANAPOLIS – Dorian LaCourse, 66, of Milford, Ohio, was sentenced today to 3 years’ probation, including 6 months home detention for conspiracy and making false statements. LaCourse is the former Chief of Police in the Village of Addyston, Ohio. Two federally licensed firearms dealers in Indiana were his coconspirators, Johnathan Marcum, 34, of Laurel, Indiana, and Christopher Petty, 58, of Lawrenceburg, Indiana, previously pleaded guilty in separate cases to participating in the same conspiracy and will be sentenced later this year.
According to court documents, LaCourse, Marcum, and Petty, illegally exploited a law enforcement exception to the federal ban on the possession or transfer of fully automatic machine guns. As Chief of Police, LaCourse signed multiple “demonstration letters” falsely stating that the Village of Addyston Police Department was interested in purchasing various types of machine guns, including military-grade weapons, and asking that Marcum and or Petty give the demonstration. Marcum and Petty then sent the letters to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to obtain the weapons. Addyston is a village in southwestern Ohio of approximately 1,000 residents. LaCourse was the village’s only full-time police officer.
LaCourse also placed direct orders for German-made machine guns that were purported to be paid for by the Police Department. In fact, the purchases were fully funded by Marcum and Petty and intended to bypass restrictions on the importation of such weapons by anyone other than the police or the military.
The Addyston Police Department was never authorized to purchase any of the machine guns, and the Indiana gun dealers never provided any demonstrations of machine guns to the police department. Instead, the gun dealers resold the machine guns at a significant profit. In some instances, a gun dealer resold illegally acquired machine guns for five or six times the purchase price. The conspirators purchased or caused the importation of approximately 200 fully automatic machine guns. LaCourse received over $11,500 from the gun dealers for his role in the scheme.
“Law enforcement officers are sworn to protect our communities and uphold the law, and the public has a right to expect police powers are used for the public good,” stated Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Instead, the defendant sold his badge to facilitate a criminal machine gun trafficking conspiracy. With heartbreaking regularity, we see the carnage that criminals can inflict on our communities with weapons of war. Today’s sentence demonstrates that officers who violate the public’s trust with utter disregard for the public’s safety will be held accountable.”
“LaCourse committed an egregious betrayal of the public’s trust by engaging in this machine gun trafficking scheme,” stated Travis S. Riddle, Acting Special Agent in Charge of ATF’s Columbus Field Division. “I hope that this sentence serves as an example to anyone else out there who might be tempted to betray their oath of office and their responsibility to their community.”
The ATF investigated the case. The sentence was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that the defendant pay a $11,800 fine. Over 100 illegally obtained machine guns, 52,500 rounds of ammunition, and over $6,000 in proceeds of the crime seized from LaCourse’s office desk will be forfeited to the United States.
U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden, William L. McCoskey, and Nicholas J. Linder who prosecuted this case.
The U.S. Attorney’s Office for the Southern District of Indiana is part of the U.S. Department of Justice’s Chicago Gun Trafficking Strike Force and has prioritized investigation and prosecution of gun trafficking crimes. On July 22, 2021, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. These gun trafficking strike forces are designed to ensure coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Former Nixa School Official Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former assistant principal at Nixa Junior High School in Nixa, Mo., was sentenced in federal court today for soliciting sexually explicit photos from a 13-year-old victim by posing online as a teen girl.
Colby Fronterhouse, 42, of Springfield, Mo., was sentenced by U.S. Chief District Judge Beth Phillips to 12 years in federal prison without parole.
On Aug. 19, 2021, Fronterhouse pleaded guilty to one count of receiving and distributing child pornography. Fronterhouse was employed as an assistant principal at the junior high school at the time of the offense; he was terminated on Feb. 8, 2021.
A Christian County sheriff’s deputy was contacted by a 13-year-old child victim and his father in September 2020. The child victim, identified in court documents as “John Doe,” had been engaging in a series of text messages for approximately a week with Fronterhouse, who posed as a 14-year-old girl. Fronterhouse, posing as a 14-year-old, encouraged John Doe to transmit sexually explicit images of himself to Fronterhouse, made specific requests for poses or types of images, and had sexually explicit conversations with John Doe.
Investigators learned that the phone used by Fronterhouse was a burner phone number with a Voice Over Internet Protocol (VoIP) account, but they were able to trace the account to Fronterhouse. Officers executed a search warrant at Fronterhouse’s residence on Jan. 26, 2021, and he was arrested. Investigators seized Fronterhouse’s cell phone and found evidence linking his cell phone to the burner account. Investigators confirmed that Fronterhouse had access to the child victim’s cell phone number through school records.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, the Greene County, Mo., Sheriff’s Department, and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as 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 the United States Attorneys' 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Navy Depot Supervisor Sentenced for Assaulting EmployeeRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jared B. Heisey, age 32, of Etters, Pennsylvania, was sentenced to two months’ imprisonment to be followed by five months of home confinement by United States District Court Judge Christopher C. Conner for assaulting a employee at the Naval Support Activity (NSA) in Mechanicsburg, Pennsylvania. Judge Conner also ordered Heisey to undergo counseling and have no contact with the victim.
According to United States Attorney John C. Gurganus, Heisey, a former Defense Logistics Agency (DLA) supervisor, assaulted an employee during work hours on August 9, 2019, at the NSA. Heisey directed the victim to accompany him to conduct an inventory count in a remote building at the NSA and when they entered the building, Heisey pinned the victim up against the wall by grabbing her neck with his hand while making sexual comments about what he would like to do to her. Heisey is no longer employed by DLA.
The case was investigated by the Naval Criminal Investigative Service (NCIS). Assistant U.S. Attorney Jaime M. Keating prosecuted the case.
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Former Muscogee Co. Deputy Clerk of Court Sentenced to 145 Months Imprisonment in Historic Multi-Million Dollar Fraud CaseRead the Press Release
COLUMBUS, Ga. – The ring-leader of a massive and lengthy scheme to drain the Muscogee County Clerk of Courts’ coffers of millions of dollars was sentenced to prison for his crime today, along with five co-defendants.
Willie Demps, 64, of Phenix City, Alabama, and the former Deputy Clerk of Court for Muscogee County, Georgia, was sentenced to serve the guideline maximum of 121 months imprisonment for conspiracy to commit bank fraud. On each of the two counts of tax evasion, he was given 60 months imprisonment with 12 months to be served consecutively to the bank fraud sentence. The total amount of imprisonment is 145 months to be followed by five years of supervised release. U.S. District Judge Clay Land handed down the sentence and ordered Demps to pay $1,323,045.21 in restitution to the Muscogee County Clerk of Court’s Office and $359,604 to the IRS, joint and severable with the other defendants, and advised that Demps’s retirement benefits be garnished to pay the restitution. In addition, the Government has requested a money judgement for $1,095,991, which will be ruled upon at a later date. There is no parole in the federal system.
“Willie Demps was the mastermind of an extraordinary, years-long theft of the Muscogee County taxpayers, stealing millions of dollars from its citizens under the guise of a trusted county employee,” said U.S. Attorney Peter D. Leary. “Demps has been brought to justice for his crimes thanks to the unwavering persistence of FBI and IRS investigators, who teamed up with federal prosecutors to map out the complex fraud and bring those involved in this scheme accountable.”
“The FBI was proud to work alongside our federal and local partners in this multimillion-dollar bank fraud investigation that uncovered a decade of illegal conduct by Demps and his codefendants,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This lengthy sentence will hold Demps accountable for cheating U.S. taxpayers and hopefully bring closure to all who were affected by his crimes.”
“Demps abused his position as Deputy Clerk of Courts while engaging in a series of fraudulent financial transactions devised to siphon funds from the community. IRS Criminal Investigation is proud to have assisted our federal partners in unraveling the criminal activity undertaken by Demps for his personal benefit,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation Atlanta Field Office. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”
The following co-defendants were sentenced for conspiracy to commit bank fraud:
Terry McBride, 45, of Smiths Station, Alabama, was sentenced to serve 24 months in prison to be followed by five years of supervised release and pay $299,285 in restitution.
Samuel Cole, 73, of Columbus, was sentenced to serve 18 months in prison to be followed by five years of supervised release and pay $387,020 in restitution.
George Cook, 33, of Columbus, was sentenced to time served, five years of supervised release and pay $215,196 in restitution.
The following co-defendant was sentenced for misprision of a felony:
Lamarcus Palmer, 35, of Smiths Station, Alabama, was sentenced to serve one year probation and pay $12,606 in restitution.
The following co-defendant was sentenced for interstate transportation of stolen property:
Rosalie Bassi, 66, of Phenix City, Alabama, was sentenced to serve five years of probation and pay $61,896.46 in restitution.
The following co-defendants will be sentenced on June 14 after pleading guilty to conspiracy to commit bank fraud:
Curtis Porch, 48, and Dereen Porch, 43, both of Columbus.
According to court documents, Demps worked for the Muscogee County Clerk for approximately 30 years and supervised money deposits received by the Clerk’s Office. The Clerk’s Office received money from fines and condemnations, and payments were frequently made in cash. From at least 2010 to 2019, Demps maintained a safe in his office to store sums of cash that were collected by the Clerk’s Office. During the business day, this safe was rarely locked, even when Demps was away from his office. Demps (or his designee) was responsible for depositing cash received by the Clerk’s Office into an appropriate Clerk of Superior Court bank account. Records indicate that the Clerk’s Office received over $5.5 million in cash during the period of 2010-2019, yet only a single cash deposit of approximately $210 was made into official Columbus accounts in 2019. No cash deposits were made in other years.
From Oct. 19, 2010, to approximately Nov. 27, 2019, Demps issued at least 330 Clerk of Superior Court checks payable to the named co-defendants, and to some individuals not named, with a face value of at least $1.3 million. Bank records prior to Oct. 19, 2010, are not available, and the Muscogee County Clerk’s Office records prior to that date cannot be obtained. Demps would meet various co-defendants in locations away from his place of business at the Clerk’s Office to give the illicit checks to them to be cashed at banks in Columbus and in nearby Alabama. The co-defendants cashed the checks and returned the money to Demps, who would give the participating co-defendant a portion of the money. Demps admits he used the money for personal expenses, to send money to foreign countries and to spend at casinos.
Demps received cash deposits to his bank during the tax years 2018-2019, which he now admits were not the result of direct deposits from his lawful salary but rather proceeds from the money he stole from the Muscogee County Clerk’s Office. This money was not reported to the IRS and resulted in tax liability. Demps deposited $147,455 in cash in 2018 and $327,787 in cash in 2019 and fraudulently failed to account for these amounts as income on his tax returns. The IRS calculated Demps’s total amount of tax due from years 2015 to 2019 as $359,604.
FBI and IRS investigated the case, with assistance from the Columbus Police Department.
Assistant U.S. Attorney Amy Helmick prosecuted the case for the Government. Retired Assistant U.S. Attorney Mel Hyde initiated the prosecution of this case.
Former Congressional Candidate Pleads Guilty to Covid-19 Relief Fraud and Falsification of RecordsRead the Press Release
Boise – A Boise man pleaded guilty for using COVID-19 relief funds for personal expenditures and for falsifying records to conceal thousands of dollars of in-kind contributions by employees in a report to the Federal Elections Commission (FEC).
According to court documents, in 2020, Nicholas Jones, 36, of Boise, Idaho, a small business owner, applied for and received COVID-19 relief funds, including through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), totaling $753,600. Despite certifying that these funds would only be used for business-related expenditures, Jones used a significant portion of the funds for personal expenses, including car payments, life insurance policies, and political advertisements.
In 2020, Jones ran as a candidate for the U.S. House of Representatives. Jones told employees of his small business that they could continue to be paid their normal wages if they worked on his congressional campaign. Employees reported to work on behalf of Jones’s congressional campaign and were paid thousands of dollars in wages through Jones’s small business including, in part, with funds Jones had received as part of a PPP loan. After losing the primary election, Jones caused his campaign committee to file a campaign finance report with the FEC, which omitted any in-kind contributions from any entity or individual other than Jones, including the thousands of dollars of in-kind contributions to his campaign in the form of employee time and work.
Jones pleaded guilty in the U.S. District Court of Idaho to wire fraud and falsification of records. Jones will be sentenced at a later date. Jones faces a maximum total 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and commended the investigation by the Federal Bureau of Investigation, which led to the charges.
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Former Chicago Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DAVENPORT, Iowa – Kevin Lorenzo Perry, age 33, was sentenced today to 20 years in prison for Distribution of Fentanyl Resulting in Death. Perry was ordered to serve three years of supervised release following his prison term and immediately pay a $100 Special Assessment to the Crime Victims’ Fund.
According to court documents, the case involved Perry’s distribution of fentanyl to two individuals, in Iowa City, on May 12, 2020. Both individuals overdosed as a result of their ingestion of the fentanyl. One of the individuals died and the other was able to be resuscitated. The surviving individual identified Perry as the source of the fentanyl, which was corroborated by text messages with Perry. On January 11, 2022, Perry pleaded guilty to the charge.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Iowa Department of Public Safety and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Bank Employee Admits $8 Million Fraud and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted conspiring to commit bank fraud and accepting bribes, U.S. Attorney Philip R. Sellinger announced.
Kurt Phelps, 53, of Flanders, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to commit bank fraud and one count of bank bribery. Three of Phelps’ conspirators previously pleaded guilty in connection with the fraud scheme.
According to documents filed in this case and statements made in court:
From 2013 through 2019, Phelps and his conspirators carried out a scheme to defraud Phelps’ employer, a bank. They obtained millions of dollars of credit from the bank for Starnet Business Solutions Inc. a now defunct New Jersey-based printing company where Phelps’ conspirators worked. Phelps’ conspirators paid him large cash bribes in connection with the fraud scheme
In 2013, Starnet received a line of credit from the bank after providing materially false financial information. The bank not only allowed Starnet to maintain the line of credit, at various times it increased the line of credit. By 2018, the line of credit was worth approximately $8 million, and Starnet has not repaid it
Phelps was aware that financial information Starnet provided to the bank for the line of credit was materially false, and coached Starnet on how to defraud the bank. Phelps would review draft financial information for Starnet and provide feedback on how his conspirators should falsify the information before submission. Phelps also worked to ensure that the bank did not detect the fraud scheme by helping Starnet avoid audits and other quality control measures employed by the bank.
Phelps solicited large cash bribes – tens of thousands of dollars at a time – from Starnet in connection with the fraud scheme. Phelps’ conspirators pooled cash to pay Phelps bribe payments. Over the course of the conspiracy, Phelps accepted hundreds of thousands of dollars in cash bribes.
The conspiracy to commit bank fraud and bank bribery charges each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 3, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Ferndale, Washington, woman indicted for trafficking in counterfeit goodsRead the Press Release
Seattle – A 42-year-old Ferndale, Washington woman was indicted this week by a federal grand jury for multiple counts of trafficking in counterfeit goods, announced U.S. Attorney Nick Brown. Kara Suneva Allen, aka Kara Suneva Mitchell is scheduled to appear for arraignment on the indictment on June 9, 2022.
According to records filed in the case, Allen operated a business named ‘Keepin Up With Kara’ LLC. The business was located in a warehouse space in Ferndale, Washington. As of March 2022, a website associated with the business advertised 467 different items for sale that appeared to be products made by Adidas, Burberry, Cartier, Chanel, Christian Dior, Fendi, Gucci, Hermès, Louis Vuitton, MCM, Nike, Prada, Saint Laurent, Tiffany & Co., Tory Burch, and UGG. All the products were priced substantially below the suggested retail price for the genuine items.
An investigation by Homeland Security Investigations, U.S. Customs and Border Protection, and the Whatcom County Sheriff’s Office revealed that in August and September 2021, three shipments destined for Allen and her company were seized from the mail in Oakland, California. The shipments, which originated in China and Hong Kong, contained a wide variety of counterfeit goods, including handbags, wallets, and jewelry. Allen was notified of these seizures, but never petitioned to have the goods in the shipments released. An analysis of shipping records revealed that between September 2021 and March 2022, approximately 46 shipments from China and Hong Kong had been sent to the Ferndale warehouse where ‘Keepin Up With Kara’ operated.
To document Allen’s sale of counterfeit goods, an undercover agent made online purchases from the company’s website. In one instance, the agent made an undercover purchase of a Louis Vuitton-branded handbag for $110. The suggested retail price for that specific authentic Louis Vuitton handbag is $1,690.00. A Louis Vuitton representative confirmed the handbag purchased from the website was counterfeit.
Fake designer bagOn May 2, 2022, law enforcement executed search and seizure warrants at Allen’s place of business, home, and vehicle. Large quantities of counterfeit merchandise were seized.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Trafficking in counterfeit goods is punishable by up to 10 years in prison and a $2,000,000 fine.
The case is being investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection, the Whatcom County Sheriff’s Office, U.S. Postal Inspection Service, the Ferndale Police Department, and the National Intellectual Property Rights Center.
The case is being prosecuted by Special Assistant United States Attorney Jessica M. Ly.
allen_kara_indictment.pdf Warehouse goods Table of fake designer bagsFederal Law Enforcement Initiative Leads to Charges Against Nine Men for Firearm and Drug Trafficking OffensesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. has announced that an investigation into a drug trafficking organization based out of Ascension Parish has resulted in a federal grand jury superseding indictment leading to the arrest of nine men on various firearm and drug trafficking offenses.
According to the Indictment, the defendants engaged in an extensive drug trafficking venture where they distributed large quantities of methamphetamine in the Middle District of Louisiana. Agents seized over nine kilograms of methamphetamine and several firearms during the investigation.
Charged and arrested as part of this initiative were the following individuals:
Reshide Wooden, age 25, of Donaldsonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine, possession with intent to distribute 50 grams or more of methamphetamine, and possession of a firearm by a convicted felon.
Rokedrick Tyrell Williby, age 31, of Donaldsonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of 50 grams or more of methamphetamine.
Denzel Dionte Gray, age 29, of Donaldsonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
Malcolm Oliver, Jr., age 32, of Napoleonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine.
Kelly Derrell Jones, age 40, of Gonzales, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
David Burnell Lewis, age 37, of Gonzales, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute 50 grams or more of a substance containing a detectable amount of methamphetamine.
Christopher Dee Harrod, age 41, of Prairieville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
Blain Joseph Slayton, age 29, of Gonzales, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
Robert Jason Slayton, age 51, of Plaquemine, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
This investigation was led by the Drug Enforcement Administration and task force officers from Iberville Parish Sheriff's Office and Baton Rouge Police Department with critical assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, the United States Marshals Service, East Baton Rouge Sheriff’s Office, Gonzales Police Department, West Baton Rouge Sheriff’s Office, and Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jessica Jarreau, who also serves as Deputy Chief, overseeing the newly formed Organized and Violent Crime Unit of the U.S. Attorney’s Office.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Eight Charged with Trafficking More Than 1,300 Pounds of Cocaine in Northeast OhioRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a 22-count superseding indictment charging eight individuals for their roles in a drug trafficking conspiracy that distributed approximately 611 kilograms, or more than 1,300 pounds, of cocaine throughout Northeast Ohio.
Named in the superseding indictment are Marc Mahoney, 43, of North Royalton, Hosea Lock, 53, of Cleveland, Jesse Bojorquez, 38, of Chula Vista, California, Jerome McGinns, 47, of Cleveland, Ohio, Marquis Glenn, 36, of South Euclid, Ohio, Desmond Smith, 31, of Westlake, Ohio, Deshon Knowles, 38, of Ashtabula, Ohio, and Sammy Abraham, 60, of Cleveland, Ohio.
Law enforcement authorities with the United States Marshals Service arrested defendants McGinnis, Glenn, Knowles, and Abraham in connection with the unsealing of the superseding indictment. Defendants Mahoney, Lock and Bojorquez were previously arrested in January of 2022 pursuant to charges alleged in a criminal complaint. Smith was arrested on May 18, 2022, pursuant to charges alleged in a separate criminal complaint.
Each defendant is charged with conspiracy to distribute and possess with intent to distribute controlled substances and use of a communications facility to facilitate a drug trafficking offense. In addition, defendant Mahoney is charged with additional counts of conspiracy to launder monetary instruments and possession with intent to distribute cocaine.
Defendant Bojorquez is charged with an additional count of interstate travel in aid of racketeering. Defendant Smith is charged with additional counts of possession with intent to distribute controlled substances, possession with intent to distribute cocaine, possession with intent to distribute cocaine base, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
According to court documents, from January 2019 to May 2022, defendant Mahoney allegedly obtained large quantities of cocaine from Mexico, which he then redistributed to the named defendants to be further distributed throughout Northeast Ohio.
It is alleged that Mahoney distributed approximately 611 kilograms of cocaine to defendants Lock, McGinnis, Glenn and Smith to be redistributed in Northeast Ohio. Smith further distributed cocaine and cocaine base to defendants Knowles and Abraham to be redistributed. In return, the defendants allegedly provided Mahoney with a combined approximate total of nearly $20 million in proceeds, which Mahoney then sent back to Mexico. On January 20, 2022, the indictment states that Mahoney delivered $2,399,585.00 of cocaine sales proceeds to Bojorquez, in Cleveland, Ohio, for transportation back to Mexico.
The conspirators are also accused of using cell phones and coded language to obscure and disguise their drug trafficking activity.
On January 20, 2022, investigators executed a search warrant at Mahoney’s residence and at a storage unit associated with Bojorquez. During the execution of the warrants, investigators obtained more than $2.4 million in U.S. currency, a drug ledger and approximately 22 kilograms of cocaine. Mahoney allegedly used the ledger to record his drug transactions.
The indictment also alleges that to conceal the proceeds of his cocaine sales, Mahoney conspired with Rueben Schwartz, 49, of Conneaut, Ohio, to purchase properties in Conneaut with cash derived from Mahoney’s drug trafficking activities. Mahoney allegedly paid Schwartz cash for the properties and the two worked together to conceal the true amount paid.
Schwartz was chargedin a separate indictment with money laundering on May 25, 2022, for his role in the scheme.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
If convicted, a defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses, and the characteristics of the violations.
In all cases, sentences will not exceed the statutory maximums, and in most cases, will be less than the maximums.
The investigation was conducted by the Drug Enforcement Administration, with assistance from the Westshore Enforcement Bureau, the Westlake Police Department, the Conneaut Police Department, the Federal Bureau of Investigation, the Rocky River Police Department, the North Olmstead Police Department and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Robert J. Kolansky.
Coraopolis Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Coraopolis Pennsylvania, pleaded guilty in federal court to possessing material depicting the sexual exploitation of minors, United States Attorney Cindy K. Chung announced today.
Christopher A. Sennett pleaded guilty to one count of Possession of Material Depicting the Sexual Exploitation of a Minor before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on September 26, 2018, law enforcement executed a search warrant at Sennett’s residence in Coraopolis, PA, during which the officers seized a computer and Apple iPhone, both of which were found to contain videos and still images of child sexual abuse material. Forensic analysis of the electronic equipment revealed 120 videos and 9 still photographs depicting the sexual exploitation of minor females.
Judge Bissoon scheduled sentencing for October 3, 2022, at 1:45 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Sennett remain on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and other members of the Western Pennsylvania Violent Crimes Against Children Task Force conducted the investigation that led to the prosecution of Christopher A. Sennett.
This case was brought as 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 the United States Attorneys’ 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Connecticut Contractor Sentenced for Bribery Conspiracy to Procure Consultation Contracts at Colleges and UniversitiesRead the Press Release
BOSTON – The principal of a Connecticut environmental consulting firm was sentenced yesterday in federal court in Springfield for paying bribes to procure consulting contracts at higher educational institutions in Massachusetts and New York.
Stephen Dinapoli, 42, of Wilton, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation. Dinapoli was also ordered to pay forfeiture of $66,718. The government recommended a sentence of two years in prison. On Dec. 21, 2021, Dinapoli pleaded guilty to one count of conspiracy and two counts of bribery concerning programs receiving federal funds.
Dinapoli is the principal of Big East Environmental, an environmental project management and consulting firm based in Connecticut. From 2015 to 2019, Dinapoli paid cash bribes to co-conspirator Floyd Young, who held positions involving facility maintenance at three collegiate institutions including American International College (AIC) in Springfield, Mass. Specifically, Dinapoli paid Young in cash during face-to-face meetings in order to obtain contracts for environmental consulting work at AIC, Cornell Tech and Cooper Union. These bribes were typically 15% of the value for each contract with the collegiate institutions. In total, Dinapoli paid Young $66,718 in bribes to procure contracts with a total value of approximately $444,786.
Young was charged in a separate case and, in August 2020, pleaded guilty to steering contracts for construction, repair, maintenance and other work for the collegiate institutions to favored contractors, including Dinapoli, in exchange for bribe payments typically in the amount of 15% of the contract. A sentencing hearing for Young has not yet been scheduled by the Court.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Steve Breslow of Rollins’ Springfield Branch Office prosecuted the case.
Connecticut Companies Pay $5.2 Million to Resolve Allegations of False Claims Act Violations Concerning Fraudulently Obtained Small Business ContractsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Numet Machining Techniques, LLC (“Numet”), Numet Industries, Inc., KCO Numet, Inc., and Kidd & Company, LLC (collectively the “Numet Entities”), have entered into a civil settlement agreement with the United States and have paid $5,227,355.28 to resolve allegations that they violated the False Claims Act when Numet improperly obtained set-aside contracts reserved for small businesses that it was ineligible to receive.
Numet is limited liability company located in Orange, Connecticut that manufactures and provides aerospace engine machined components for commercial and U.S. military purchases. On August 30, 2011, Numet was acquired by Numet Industries, Inc., which was owned by KCO Numet, Inc., which was ultimately owned by individuals associated with Kidd & Company, LLC, a family office investment company located in Greenwich, Connecticut.
The government contends that, after Numet’s acquisition in August 2011, it ceased to qualify as a “small business concern” within the meaning of the Small Business Administration (“SBA”) regulations relating to government contracts due to Numet’s affiliation through stock ownership with other businesses. Nevertheless, between August 2011 and February 2016, Numet falsely certified that it was a “small business concern” and, as a result, it was awarded 22 small business set-aside contracts that it was ineligible to receive. In addition, between September 2013 and February 2016, Numet falsely certified that it was a “women-owned small business concern.”
Government contractors are required to timely disclose to the government, in writing, whenever they have credible evidence that they have committed a violation of the False Claims Act. On November 4, 2019, in connection with due diligence performed relating to Numet’s sale to another entity, Numet voluntarily disclosed to the government facts concerning its potential affiliation with other businesses that the government contends made it ineligible to be awarded contracts set aside for small businesses. The Numet Entities received credit in the settlement for Numet’s voluntary disclosure and cooperation with the government during its investigation.
“Government contractors that make false representations to receive contracts for which they are not eligible will be held to account,” said U.S. Attorney Avery. “We thank our investigative partners for their efforts on this case and their ongoing work to protect government programs that exist to assist small or disadvantaged companies.”
“Protecting Department of Defense contracts set aside for small businesses is a priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement reflects our commitment to working with our law enforcement partners and the U.S. Attorney’s Office for the District of Connecticut to investigate allegations of false representations made during the DoD procurement process.”
“SBA procurement programs must be preserved for contractors that are truly small businesses” said Therese Meers, Acting General Counsel of SBA. “The settlement in this matter demonstrates the excellent results achieved in the government’s forceful response to procurement fraud. SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs.”
“Contractor abuse of government set-aside programs not only undermines the federal acquisition process, but also harms the legitimate small businesses these programs are intended to support,” said Special Agent in Charge William W. Richards, Air Force Office of Special Investigations. “AFOSI, our joint investigative partners, and the DOJ will continue to combat fraud threatening the Department of Defense’s procurement process and ensure wrongdoers are held accountable for their actions.”
This investigation was conducted by the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Defense Contract Audit Agency Operations Investigative Support Division, and the SBA Office of General Counsel. This matter was handled by Assistant U.S. Attorney Sarah Gruber, with the assistance of Auditor Susan N. Spiegel.
Child Sex Trafficker Sentenced to 21 Years in PrisonRead the Press Release
A Delaware man was sentenced today to 21 years in prison for trafficking minor and young adult victims throughout the mid-Atlantic region.
Anthony Jones, 38, of Wilmington, Delaware, was convicted by a federal jury in April 2019 following a 14-day trial. Jones was found guilty of conspiracy to engage in sex trafficking of minors by force, fraud or coercion, and of sex trafficking three minors by force, fraud or coercion. According to evidence presented at trial and court documents, Jones and his codefendants – Dkyle Bridges and Kristian Jones – ran a prostitution enterprise in which girls and young women were sex trafficked throughout southeastern Pennsylvania, Delaware, and elsewhere. Bridges was the violent ringleader who used force and threats to cause the victims to engage in commercial sex acts. Kristian and Anthony Jones helped Bridges run the ring, including by providing security and reserving hotel rooms. The investigation began in November 2016 when local police rescued minors who had been advertised for prostitution on Backpage.com, and subsequent investigation uncovered additional victims.
Jones was also sentenced to 10 years of supervised release and ordered to pay $15,160 in restitution to the victims.
Bridges was sentenced in March 2021 to 35 years in prison, followed by 10 years of supervised release, and ordered to pay $53,000 in restitution to the victims. Kristian Jones was sentenced in June 2021 to 20 years in prison, followed by 10 years of supervised release, and ordered to pay $15,160 in restitution to the victims.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania and Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office made the announcement.
The FBI’s Philadelphia Field Office investigated the case with substantial assistance from the Tinicum Township Police Department; Newark Police Department; Delaware State Police; Philadelphia Police Department; Delaware River & Bay Authority and Wilmington Police Department.
Trial Attorney Jessica L. Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Priya T. De Souza of the U.S. Attorney’s Office for the Eastern District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Carbon County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Roberto Magobet, age 44, of Jim Thorpe, Pennsylvania, was indicted on May 31, 2022, by a federal grand jury and charged with drug trafficking.
According to United States Attorney John C. Gurganus, the indictment alleges that Magobet possessed with the intent to distribute over 50 grams of methamphetamine and a quantity of fentanyl on August 31, 2021, in Jim Thorpe, Pennsylvania.
The case was investigated by Homeland Security Investigations (HSI), Jim Thorpe Police Department and the Pennsylvania State Probation and Parole Office. Assistant U.S. Attorney Jenny P. Roberts is 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.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Canton Man Sentenced to 10 Years in Prison for Illegal Possession of Firearm and Intent to Distribute Fentanyl, MarijuanaRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that Chance R. Young, 26, of Canton, Ohio, was sentenced on Wednesday, May 25, 2022, to ten years in prison by U.S. District Judge Patricia A. Gaughan after Young pleaded guilty to possession with intent to distribute fentanyl and marijuana and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on December 4, 2020, Young was arrested by law enforcement officers with the FBI and FBI Safe Streets Task Force on multiple outstanding warrants for kidnapping, aggravated robbery and felonious assault issued by the Canton Municipal Court. Following the arrest, authorities executed a search warrant at the known residence of Young. During the search, authorities obtained a handgun with a loaded magazine and an attached weapon light, a rifle with a loaded magazine, several bags of marijuana and quantities of fentanyl.
This case was investigated by the FBI, Canton Police Department and FBI Safe Streets Task Force. This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LAMAIN HEARD, 31, of Bridgeport, pleaded guilty today in Hartford federal court to unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, June 15, 2021, law enforcement attempted to stop a car in which Heard was a passenger. The car drove at police officers, crashed into multiple vehicles, and then crashed into a pole. When the car stopped, Heard dropped a semiautomatic pistol in the car and then attempted to flee the scene before he was apprehended. Subsequent forensic analysis of the firearm revealed that it contained Heard’s DNA.
Heard has previously been convicted of a felony offense and he attended a Project Safe Neighborhoods presentation at which he was informed that a felon caught with a firearm could be prosecuted in federal court.
Heard has been detained since his federal arrest on January 21, 2022. Judge Underhill scheduled sentencing for August 24, at which time Heard faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bogus Online Auto Auction Participant Indicted for Bank FraudRead the Press Release
SAN JOSE – A federal grand jury indicted Ionut Ganea with three counts of bank fraud in a scheme to defraud consumers with fake online automobile auction advertisements, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
According to the indictment, Ionut Ganea, 28, a Romanian national last known to be in Romania, conspired to defraud consumers by posting fraudulent automobile auction advertisements on multiple automobile websites. The automobile auction advertisements contained information typical of legitimate auctions, including photographs of the automobiles for sale. The indictment alleges, however, that the automobiles advertised for sale were not owned by the purported sellers. The purported sellers thereafter communicated with interested buyers through online messaging platforms and induced them to place bids on the auctions. After a victim-buyer “won” an auction and wired payment to the seller’s bank account as instructed, the vehicle was never delivered.
The indictment alleges Ganea acted as a “money mule” in the scheme, collecting the illegally obtained money and sending it to the other participants in the fraud. Ganea used fake identities to set up bank accounts in the United States with legitimate banking institutions. The bank accounts were used to receive the wire transfers of funds from the victim-buyers in the fraudulent auctions. Ganea then allegedly withdrew the funds from the accounts.
Between December 2019 and September 2020, the indictment alleges Ganea opened at least 74 bank accounts in eight banks across the country while using 28 fake names and fraudulent passports from the Czech Republic, Slovakia, and Latvia. According to the indictment, 117 individual victim-buyers wired nearly $2 million dollars to these accounts, and Ganea withdrew more than $1.8 million of those funds.
The federal indictment charges Ganea with three counts of bank fraud in violation of 18 U.S.C. § 1344(2). The maximum statutory sentence for each violation of 18 U.S.C. § 1344(2) is 30 years in prison, a fine up to $1,000,000 or twice the gross gain or loss amount, and five years of supervised release following prison. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Ganea remains at large. The investigation continues.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Anne Hsieh is prosecuting the case with the assistance of Laurie Worthen. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
Bergen County Woman Sentenced to 21 Months in Prison for Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman was sentenced today to 21 months in prison for her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, U.S. Attorney Philip R. Sellinger announced.
Ruby Baroni, 55, of Lyndhurst, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company. In that capacity, Baroni had authority to cut checks against the company’s bank accounts. During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company. Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use. In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company. Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return. Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on Sept. 20, 2021, and was sentenced on April 25, 2022, to 27 months in prison.
In addition to the prison term, Judge Neals sentenced Baroni to two years of supervised release and ordered her to pay $295,297 in restitution.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, and special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Baldwinsville Man Sentenced to 60 Months for Receiving Child Pornography from an 11-Year-Old ChildRead the Press Release
SYRACUSE, NEW YORK – Richard Curtis, age 22, of Baldwinsville, New York, was sentenced today to serve 5 years in federal prison for receiving child pornography, announced 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), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his guilty plea, Curtis admitted that in September of 2017 he asked an 11-year-old child to send him sexually explicit videos of herself over the internet application Instagram. In his exchanges with the child, the defendant pretended that he was a female fashion designer looking for models. At his direction, the child produced and sent to Curtis five sexually explicit video files.
Chief United States District Judge Glenn T. Suddaby also imposed a 35-year term of supervised release, which will start after Curtis is released from prison, and ordered Curtis to pay a $100 special assessment. Curtis will also be required to register as a sex offender.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU). The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Athens, Vermont Man Charged with Unlawful Possession of Short-barrel ShotgunRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ryan Goodrich, 37, of Athens, Vermont was arraigned yesterday on an indictment that alleges on March 3, 2022, Goodrich unlawfully possessed an unregistered short-barrel shotgun, unlawfully possessed multiple shotguns and an AR-style rifle due to Goodrich’s prior felony convictions, and unlawfully possessed heroin.
According to court records, Vermont Game Wardens began an investigation of Goodrich in late winter of 2022 for violations of fish and wildlife regulations. During their investigation, the wardens obtained a search warrant for Goodrich’s Facebook account, which revealed a photograph of a short-barrel shotgun. The messages within the account revealed Goodrich had discharged the weapon and likely possessed it at his residence. The wardens coordinated with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to execute a search warrant at Goodrich’s residence on March 3, 2022. During the search, agents located the short-barrel shotgun (which was loaded), multiple additional shotguns, multiple rifles (including an AR-style rifle), 2,978 rounds of ammunition, $6,000 in U.S. Currency, and 880 bags of heroin.
After the warrant was executed, the federal grand jury returned an indictment on March 10, 2022. Agents attempted to locate Goodrich in and around Athens, and in doing so, encouraged people who knew him to have Goodrich turn himself in to law enforcement. Goodrich did not do so. On April 9, 2022, Keene, New Hampshire Police located Goodrich at a hotel in Keene. Officers obtained a search warrant for the hotel room, but Goodrich was not inside when it was executed. Agents found evidence of Goodrich’s prior presence, including personal paperwork in a backpack. On April 19, 2022, law enforcement learned that Goodrich was attempting to obtain transportation to Texas. Goodrich was subsequently located and apprehended at a hotel in Deerfield, Massachusetts.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Goodrich remains presumed innocent until and unless he is convicted of a crime. Goodrich faces a maximum sentence of 10 years of imprisonment on each firearm violation. The actual sentence would be determined with reference the Federal Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Vermont Department of Fish and Wildlife, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. He also thanked the Keene Police Department, the Massachusetts State Police, the Deerfield Police Department, and the Greenfield Police Department for their assistance in locating and apprehending Goodrich.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Goodrich is represented by Assistant Federal Public Defender Mary Nerino.
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. See https://www.justice.gov/psn for more information.
23 Defendants Charged with Participating in $26 Million Life Insurance Fraud SchemeRead the Press Release
CHICAGO — A federal grand jury in Chicago has charged 23 defendants with participating in a fraud scheme through which they allegedly swindled ten life insurance carriers out of at least $26 million in fraudulent benefits.
The defendants submitted fraudulent applications to obtain life insurance policies in the names of various individuals and then induced the carriers to pay death benefits by knowingly misrepresenting the identity of a different deceased person as the insured, according to an indictment unsealed today in U.S. District Court in Chicago. The fraud scheme charged in the indictment began in 2013 and continued until last month. Among the defendants are sets of spouses and, in some cases, their children, as well as an insurance agent who owned a side business that performed medical examinations on applicants for term life insurance policies. The indictment seeks forfeiture from the defendants of at least $26 million in alleged ill-gotten gains, as well as nine luxury automobiles, eight Rolex watches, and properties in the Chicago suburbs of Orland Park, Bridgeview, and Burbank.
The indictment charges the 23 defendants with multiple counts of wire and mail fraud. Most of the defendants were arrested Thursday in Illinois and Florida and will be making initial appearances in federal courts in Chicago, Orlando, Tampa, and Miami.
The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Nicholas A. Pecora, Jr., Chief of the Arlington Heights, Ill., Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office, U.S. Marshals Service, and United States Attorney’s Offices for the Middle and Southern Districts of Florida. The government is represented by Assistant U.S. Attorneys Philip N. Fluhr and Andréa L. Campbell.
“The fraud scheme charged in the indictment involved an elaborate deception perpetrated against multiple insurance companies for the purpose of financial gain,” said U.S. Attorney Lausch. “I commend the FBI Chicago Field Office and the Arlington Heights Police Department for their diligent work in uncovering this complex scheme and seeking to hold the defendants accountable for their personal and economic harms.”
“We will not allow deceitfulness to prevail for selfish financial gain,” said FBI SAC Buie. “The FBI is proud to work with our local law enforcement and prosecutorial partners to fight these extravagant fraud schemes and ensure justice is served.”
“The Arlington Heights Police Department is proud of the results achieved by detectives and agents who investigated this multistate fraud scheme involving a structured plan designed to defraud numerous insurance companies,” said AHPD Chief Pecora. “This investigation is a clear example of local and federal partners working in collaboration to defeat the criminal element and halt their unlawful activity.”
Charged in the indictment are JAMES MILLS, also known as “Jamie Montes,” 47, of Oak Lawn, Ill., JOSEPH BROWN, 50, of Chandler, Ariz., JULEY ELY, 47, of Oak Lawn, Ill., GINGER ELY, 26, of Oak Lawn, Ill., SYLVIA EVANS, 48, of Kissimmee, Fla., HOLLY STERGO, also known as “Holly Stego,” 29, of Missouri City, Texas, JESSICA VACA, 51, of Deerfield Beach, Fla., ANGELA BECHO, 30, of Fort Lauderdale, Fla., FRANK COSTELLO, 44, of Hoffman Estates, Ill., JOE ROUGA, 29, of Oak Lawn, Ill., MARY BACCO, 53, of Bridgeview, Ill., STEVE MONTEGA, also known as “Fonzie Cerano,” 44, of Orland Park, Ill., NIKO RISTICK, 23, of Orland Park, Ill., TONY RISTICK, also known as “Anthony Walker,” 52, of Orlando, Fla., RACHEL MONTEGA, also known as “Samantha Walker,” 48, of Orlando, Fla., ROBERT CRAIG, also known as “Jake,” 37, of Lakeland, Fla., STEVE VEGA, also known as “Cabby,” 45, of Fort Lauderdale, Fla., SOPHIE BECHO, 46, of Fort Lauderdale, Fla., MARK BLANCA, 30, of Burbank Ill., DIANA LUMAS, 30, of Burbank, Ill., RICKY BLANCA, also known as “Fonz Ristick,” 48, of Orland Park, Ill., DAVID JENSEN, also known as “Tony,” 52, of Lakeland, Fla., and JOE JOHN, 66, of Arlington Heights, Ill.
The charges allege that the defendants paid premiums on the fraudulently obtained policies for two years, at which time the period for contestability expired, making it more difficult for insurance companies to decline death benefit claims. Fraudulent claims for death benefits would then be submitted, using records that falsely identified a different deceased person as the insured, the indictment states. To support the fraudulent claims, the schemers obtained false death certificates in the names of the insureds and made false representations about the deceased person to law enforcement, first responders, medical personnel, funeral home staff, and cemetery employees, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.