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Wednesday 1 June 2022
Violent member of Chester “3rd Bone” Drug Gang Sentenced to Nearly a Decade in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tyleel Scott-Harper, 25, of Chester, PA, was sentenced to nine years in prison and three years of supervised release by United States District Court Chief Judge Juan R. Sanchez for narcotics and firearms offenses in furtherance of the activities of the violent street gang, Third Bone, that sold large amounts of crack, cocaine, and heroin in downtown Chester, PA.
In October 2019, 22 individuals including the defendant were arrested and charged in parallel indictments with drug trafficking and firearms offenses. These 22 defendants were members of rival drug trafficking groups operating next to each other in territories occupying the west side of Chester. The two rival groups were the “3rd Bone” (or “3BM”) and the “William Penn” (“the Pen” or “Ject Boyz”).
Scott-Harper and 12 of his “3rd Bone” co-conspirators were charged in a 70-count Indictment alleging conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting. As a member of 3rd Bone, Scott-Harper infused a dangerous drug into the community of Chester, and used violence and threats of violence to control the group’s territory and enforce drug debts. For his part, in August 2021, the defendant pleaded guilty to charges including conspiracy to distribute crack cocaine, possession with intent to distribute and distribution of crack cocaine, use of a communication facility in furtherance of a drug trafficking crime, possession of a firearm in furtherance of a drug trafficking crime.
“The defendant and his co-conspirators in 3rd Bone, together with the defendants in the William Penn gang, terrorized the Chester community for years with their drug dealing and associated violence,” said U.S. Attorney Williams. “Scott-Harper dealt dangerous narcotics and illegally possessed weapons to further his drug-dealing business, and for that he will now spend nearly a decade in prison. Thanks to the efforts of investigators at the FBI and DEA, the 3rd Bone and William Penn drug operations have been permanently shut down, making the streets safer and improving the quality of life for the Chester community.”
“Tyleel Scott-Harper and his 3rd Bone crew used threats and violence to maintain control of their territory, as they steadily poisoned the city of Chester by dealing dangerous drugs,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners are committed to freeing our communities from the clutches of violent drug gangs, which have zero regard for the incredible damage they do to people’s lives and quality of life.”
"Chester is a community that has been disproportionately affected by the drug trade," said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "That Scott-Harper was in a gang that engaged in the sale of multiple dangerous street drugs and used firearms to protect and further their drug-trafficking activities adversely impacted the overall quality of life for the citizens of Chester."
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. It is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Chester Police Department Narcotics Unit, with assistance from the Delaware County District Attorney’s Office, the Delaware County Drug Task Force, the U.S. Marshals Task Force, the Pennsylvania State Police, the Delaware County Sheriff’s Office, the Chester Township Police Department, the Ridley Township Police Department, and the Sharon Hill Police Department. It is being prosecuted by Assistant United States Attorneys Meaghan Flannery and Matthew Newcomer.
Varnville Man Pleads Guilty to Stealing More Than $300,000 from Military VeteransRead the Press Release
CHARLESTON, SOUTH CAROLINA —Raymond Huffman, 61, of Varnville, has pleaded guilty to stealing funds from 10 military veterans.
According to information presented to the Court, the U.S. Department of Veterans Affairs (“VA”) provides and cares for United States military veterans. Among its many programs, the VA administers a fiduciary program designed to protect veterans. Huffman was appointed to be a fiduciary to receive payments on behalf of veterans who, as a result of wars, injury, disease, or infirmities of advanced age, could not manage their VA benefits. Instead, Huffman stole money from these veterans.
“Stealing funds meant for a veteran is a despicable crime,” said U.S. Attorney Corey F. Ellis. “We owe it to our veterans, who have sacrificed so much for this country, to ensure they are not victimized when they most need assistance. I am grateful for the hard work from our federal and local partners.”
"Today's plea should send a clear message that the VA Office of Inspector General will vigorously investigate those who steal from our nation's veterans," said VA Office of Inspector General Special Agent in Charge Kim Lampkins. “The VA OIG will continue to ensure that veterans and other beneficiaries who rely on the critical financial services of VA-appointed fiduciaries are not exploited by greed for financial gain."
“This case is an example of what happens when we all work together - the Sheriff’s office, members of our community and other law enforcement agencies in our area,” said Dorchester County Sheriff L.C. Knight. “No veteran should ever have to worry about having benefits being stolen from them. When something like this happens, we want to make sure the crime is investigated and prosecuted to the fullest extent.”
Evidence obtained in the investigation revealed that Huffman misused funds intended for at least 10 of his VA clients through his company, Huffman Fiduciary Services. The victims included the estate of a veteran who had passed away in 2018. Huffman admitted to misusing and stealing money from some of his VA clients. In all Huffman stole at least $304,413.75, and also received fees in excess of $10,000.
Williams faces a maximum penalty of 50 years in federal prison. He also faces a fine of up to $250,000, restitution, and 30 years of supervision to follow the term of imprisonment. United States District Judge Bruce Howe Hendricks accepted the guilty plea and will sentence Huffman after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the VA Office of Inspector General, specifically Special Agent Robert Breunig, with assistance from Dorchester County Sheriff’s Office, specifically, Sgt. Chaz Easterlin Easterlin, and the Office of the Solicitor for the First Judicial Circuit. Assistant U.S. Attorney Sean Kittrell is prosecuting the case in federal court and Assistant Solicitor Shannon N. Elliott of the First Circuit Solicitor's Office prosecuted the case in state court.
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United States Army National Guardsman and Former Rockville, Maryland Police Officer Admits to Possessing over 12,000 Depictions of Child PornographyRead the Press Release
Baltimore, Maryland - Daniel Morozewicz, age 38, of Frederick, Maryland, pleaded guilty yesterday to possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Frederick County State’s Attorney J. Charles Smith; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his guilty plea, from September 2020 to January 2021, while employed as a Rockville Police Officer and an Army National Guardsman, Morozewicz received, possessed, and distributed child pornography on the BitTorrent file sharing network. Morozewicz also used multiple electronic devices to download and distribute child pornography involving prepubescent minors.
During that time, Morozewicz repeatedly distributed child pornography to undercover law enforcement officers. On at least four instances in 2020, investigators determined that the devices associated with Morozewicz’s IP address downloaded and shared child pornographic files on the BitTorrent; including eight packages of child pornography.
As stated in his guilty plea, on March 4, 2021, Morozewicz received a tip that federal law enforcement wished to conduct an in-person interview with him. The next day, on March 5, 2021, law enforcement executed a series of search and seizure warrants on Morozewicz’s residence, vehicle, and his person. As a result of the search of Morozewicz’s person, law enforcement seized a smartphone which had been recently factory reset and erased in light of the impending visit from federal law enforcement. He also admitted that he discarded his computer in anticipation of a visit from law enforcement. Morozewicz’s actions were viewed as an attempt to impede the investigation and prosecution of his child pornography offenses.
Multiple electronic devices were seized in connection the warrants executed at Morozewicz’s residence and in his vehicle. A forensic examination of Morozewicz’s devices revealed that he possessed over 12,300 depictions of child pornography and erotica, including over 200 depicts involving the sexual abuse of infants and toddlers, and over 90 child pornographic images involving sado-masochistic conduct.
Morozewicz faces a maximum sentence of 20 years in prison followed by up to lifetime of supervised release for possession of child pornography. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for September 8, 2022, at 11:00 a.m.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Frederick County State’s Attorney’s Office, and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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U.S. Attorney’s Office and the FBI Raise Awareness of Elder AbuseRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr. are committed to protecting older adults by raising awareness of elder abuse, neglect, and exploitation in the Northern District of Alabama.
“Unfortunately, some of the most vulnerable among us, our senior citizens, are a prime target of elder abuse, in all its forms. It is important that we inform and educate our older population about the scams that target them,” U.S. Attorney Escalona said. “The U.S. Attorney’s Office will continue to work closely with our federal, state, and local law enforcement partners to prosecute those who prey on senior citizens in the Northern District of Alabama.”
“Seniors are often targeted because they tend to be trusting and polite,” SAC Sharp said. “They also usually have financial savings, own a home, and have good credit—all of which make them attractive to scammers. I want to encourage all seniors and their caregivers to remain vigilant and educate yourself on the most prolific scams. Finally, if any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should immediately report it to the FBI.”
Each year, June 15th is recognized as World Elder Abuse Awareness Day. This day provides an opportunity to raise awareness of the abuse, neglect, and fraud schemes committed against older Americans.
Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year. The effects of financial crimes can be physically and emotionally devastating. Just in Alabama, in 2021, over 1100 Alabama seniors reported being victims of elder fraud with losses of over $17 million.
Some of the most common scams targeting older Americans include:
- Romance scam: Criminals pose as interested romantic partners on social media or dating websites in order to obtain money from the victim.
- Tech support scam: Criminals pose as technology support representatives and offer to fix non-existent computer issues, such as computer viruses or hacked accounts.
- Grandparent Scam: Criminals pose as a relative, usually a child or grandchild, claiming to be in immediate financial need.
- Governmental impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to pay.
These tips could help you or someone you know from becoming a victim:
- Resist the pressure to act quickly. Criminals create a sense of urgency to instill fear and the need for immediate action.
- Be cautious of unsolicited phone calls, mailings, and door-to-door service offers
- Never provide any personally identifiable information.
- Never wire money to persons or businesses you have only met online. Verify any email request for money
- Do not open emails or click on attachments or links you do not recognize or were not expecting.
- Research online and social media advertisements before purchase to determine if a product or company is legitimate.
- Stop communication with the perpetrator, but expect that the criminal will continue to attempt contact.
The U.S. Attorney’s Office has prosecuted and continues to prosecute elder abuse cases in the Northern District of Alabama. Assistant U.S. Attorney Catherine Crosby is the district’s Elder Justice Coordinator. She is responsible for prosecuting elder abuse cases, conducting public outreach and awareness activities related to elder abuse, serving as legal counsel for the district on matters relating to elder abuse, and ensuring collection of data required by the Elder Abuse Prevention and Prosecution Act.
For elder abuse resources in the State of Alabama visit – https://go.usa.gov/xJTQG. To learn more about the ways you can assist in our efforts to prevent fraud, neglect, and abuse of elders visit www.elderjustice.gov.
If you believe you or someone you know may have been a victim of elder fraud, contact the FBI Birmingham Field Office at 205.326.6166. You can also contact the National Elder Fraud Hotline at 1-833-372-8311 or file a complaint FBI’s Internet Crime Complaint Center – www.ic3.gov.
U.S. Attorney Dena J. King Appoints Environmental Justice Coordinator for the Western District of North CarolinaRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King has selected Assistant U.S. Attorney (AUSA) Caroline McLean of the U.S. Attorney’s Office in Asheville to serve as the Western District’s Environmental Justice Coordinator.
On May 5, 2022, the U.S. Department of Justice announced a series of actions aimed at enhancing the Department’s efforts to secure environmental justice for all Americans. In making the announcement, U.S. Attorney General Merrick B. Garland highlighted specific actions to strengthen the Department’s commitment to ensuring equal justice under the law by advancing the cause of environmental justice. Specifically, Attorney General Garland announced the creation of a new Office of Environmental Justice within the Department’s Environmental and Natural Resources Division (ENRD); the launching of a comprehensive environmental justice enforcement strategy to advance the cause of environmental justice through the enforcement of federal laws; and the issuance of an Interim Final Rule to restore the use of supplemental environmental projects when deemed appropriate.
“Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change,” said Attorney General Garland. “For far too long, these communities have faced barriers to accessing the justice they deserve. The Office of Environmental Justice will serve as the central hub for our efforts to advance our comprehensive environmental justice enforcement strategy. We will prioritize the cases that will have the greatest impact on the communities most overburdened by environmental harm.”
Attorney General Garland also directed U.S. Attorney’s Offices across the nation to designate an Environmental Justice Coordinator (EJC). As the Western District’s EJC, AUSA McLean will be responsible for developing and overseeing the Office’s environmental justice enforcement strategy; serve as legal counsel on matters related to environmental justice; prosecute criminal and civil environmental justice cases; and conduct public outreach and awareness activities related to environmental justice. AUSA McLean will also serve as the point of contact for environmental justice matters and will create and participate in environmental enforcement task forces. She will also be in charge of establishing a procedure for members of the public to report environmental justice concerns within the Western District of North Carolina.
AUSA McLean joined the U.S. Attorney’s Office in August 2018 and serves in the Office’s Civil Division in Asheville. AUSA McLean is responsible for handling civil defensive litigation in federal and state court, and affirmative civil enforcement cases on behalf of the United States. She is also a member of the Office’s recently-formed Civil Rights Team. In June 2020, AUSA McLean was selected as Buncombe County Bar Distinguished Young Lawyer for her contributions to the legal profession and the community as a member of the Bar.
In making today’s announcement, U.S. Attorney King said, “AUSA Caroline McLean is an experienced federal prosecutor dedicated to serving the people of the Western District of North Carolina. As my Office’s Environmental Justice Coordinator, AUSA McLean will work closely with Department of Justice components, local, state and federal agencies, and stakeholders within the community to address concerns related to environmental justice, using all available legal tools to promote justice for communities historically harmed by environmental violations.”
U.S. Attorney Charges Bronx Attorney with Attempted Sexual Exploitation of A Minor and Attempted Enticement of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the arrest of TONG HYON SUH, a/k/a “Jason Suh.” SUH is charged with communicating online with an individual he believed to be a 14-year-old girl and attempting to meet the girl to engage in sexual activities and record the activities. SUH was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court and detained.
U.S. Attorney Damian Williams said: “Suh’s behavior is the nightmare of every parent. He attempted to exploit the most vulnerable in our society. This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them.”
According to the allegations in the Complaint[1] filed yesterday in White Plains federal court:
Beginning on April 24, 2022, a detective with the Greenwich Police Department (“Detective-1”), who was posing as a 14-year-old girl named “Megan,” communicated via the social platform, Kik, with TONG HYON SUH, a/k/a “Jason Suh.” During the communications, SUH, who was using the Kik user name “suhjason,” identified himself as a 45-year-old Korean male living in New York City and indicated that he wanted to meet with “Megan” for the purpose of having sex. Detective-1 told SUH that she was a 14-year-old female from Connecticut. During the communications, SUH sent various photos of himself showing his face.
During their communications, which occurred from April 24, 2022 to May 27, 2022, among other things, SUH told Detective-1 that he “find[s] the age gap hot tbh” and “tbh on the down low I want a young submissive sl*t.” SUH requested pictures from “Megan.” For example, he told her, “So sneak in a bathroom break pic. I love a good sl*t.”
On April 26, 2022, SUH discussed meeting in person. He asked “Megan” for some “sl*tty pics” that she could “delete after taking.” During the communications, SUH referenced other teenage girls with whom he had engaged in sexual activity. On or about May 2, 2022, SUH told “Megan” that he wanted to film them engaging in sexual acts and he continued to request pictures.
On or about May 20, 2022, an FBI Special Agent acting in an undercover capacity as “Megan,” spoke to SUH by phone. During the call, SUH identified himself as “Daddy” and “Jason.” SUH stated that he was born in 1977, is a New York attorney with an office in the Bronx, and has been a lawyer since he was 26 years old.
SUH and “Megan” spoke again on May 24, 2022. SUH and “Megan” discussed meeting and SUH said he would rent a residence and take the train to Greenwich, Connecticut. He said that he would use a ride service to pick “Megan” up at her house, and then they would travel together to the rented residence, where they would engage in sexual activity and smoke marijuana. During the conversation, “Megan” requested that SUH bring condoms, lollipops and marijuana, and wear a suit. “Megan” gave SUH an address in Greenwich, Connecticut and told him that she lived in an apartment located at that address.
After the May 24, 2022 phone call, SUH told “Megan” that they should meet on Friday, May 27, 2022. SUH said that he and “Megan” would use a ride service to go to the residence he rented in Stamford, Connecticut.
A public database for New York attorney registration information indicates that a “TONG-HYON SUH” is registered as an active attorney in New York with a business address in the Bronx. Additionally, the database indicates that “TONG-HYON SUH” was admitted to the New York bar on or about November 19, 2003.
On May 27, 2022, at approximately 3:31 p.m., TONG HYON SUH, a/k/a “Jason Suh,” arrived at the Metro North train station in Greenwich, Connecticut on a northbound Metro North train after passing through Westchester County. SUH was wearing a suit and carrying a black briefcase and a red and white shopping bag. Law enforcement observed SUH enter the rear passenger seat of a black Toyota Highlander and depart the train station.
At approximately 3:50 p.m., TONG HYON SUH, a/k/a “Jason Suh,” the defendant, arrived at the address provided by “Megan.” When SUH entered the building located at that address, detectives with the Greenwich Police Department arrested him. After SUH’s arrest, the detectives retrieved a black briefcase and a red and white shopping bag from the vehicle in which SUH was riding. An inventory search of the briefcase and bag revealed that they contained, among other things, a laptop computer, a thumb drive, sneakers, matches, marijuana, toiletries, clothing, an unopened package of lollipops, and six condoms.
Following his arrest, TONG HYON SUH, a/k/a “Jason Suh,” was charged in Stamford Superior Court.
There may be other victims of this alleged conduct. If you have information to report, contact the Federal Bureau of Investigation through its toll-free Tip Line at 1-800-CALL-FBI
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SUH, 45 of Bronx, New York, is charged with one count of attempted sexual exploitation of a minor, which carries a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of attempted enticement of a minor, which carries a minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Following today’s presentment, Judge Krause ordered that SUH be detained.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, Connecticut State’s Attorneys Office, Greenwich Police Department, and the Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Putnam County Sheriff's Office, Westchester County DAs Office, Rockland County DAs Office, NYPD, Westchester County PD, and the Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Department. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jennifer N. Ong and Marcia S. Cohen are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two men indicted for international conspiracy to ship Fentanyl, other drugs into United States through Dark Web connectionsRead the Press Release
BRUNSWICK, GA: Two men from Canada and the United Kingdom have been indicted in the Southern District of Georgia on federal charges alleging an international operation used the Dark Web to distribute illegal drugs in the United States, with some of those drugs resulting in the deaths of two U.S. Navy petty officers.
Thomas Michael Federuik, aka “Canada1,” 59, of Vancouver, British Columbia, Canada, and Paul Anthony Nicholls, aka “Nico Laeser,” 44, of Surrey, England, are charged with drug and money laundering offences, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges subject Federuik and Nicholls to possible statutory penalties of a minimum of 10 years in prison, up to life, along with fines of up to $10 million and a minimum of five years of supervised release after completion of any prison term.
“The number of deaths from drug overdoses, particularly Fentanyl and its analogues, has reached a record high in the United States and every citizen of this country should be alarmed. The prevalence of this drug is, in large part, fueled by an illicit pipeline of illegally imported drugs,” said U.S. Attorney Estes. “This investigation sought to trace that pipeline to its source to cut off its flow to our country in an effort to protect our citizens from harm.”
The investigation, dubbed Operation Canada1, began in October 2017 with the separate deaths of two U.S. Navy petty officers in Kingsland, Ga., that were attributed to Fentanyl-related drug overdoses. The source of the drugs was traced to a Dark Web vendor using Canadian-postmarked packaging labeled “East Van Eco Tours,” leading investigators from the Royal Canadian Mounted Police (RCMP) and the Calgary Police Service to target the Dark Web vendor Canada1.
The indictment alleges that Federuik and Nicholls conspired to import drugs from places including China and Hungary. Then, using business names including “East Van Eco Tours” and “Bridge City Consulting LLP,” the alleged conspirators distributed those drugs through the Dark Web in the Southern District of Georgia and elsewhere in the United States. The indictment further alleges that a shipment of those drugs packaged by the conspirators traveled from Canada to Kingsland, resulting in the deaths of B.J.T. and T.L.B. in October 2017.
Federuik and Nicholls have been taken into custody and are awaiting extradition proceedings to bring them to the Southern District of Georgia.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“The metrics of the opioid crisis are staggering,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to take decisive action to curtail the illegal distribution of opioids and other addictive prescription drugs, bringing to justice criminals who endanger the public’s health.”
“The importation and distribution of illicit narcotics within the United States pose a significant threat not only to our local communities but also our nation’s service members and ultimately our national security,” said Special Agent in Charge Thomas Cannizzo of the Naval Criminal Investigative Service Southeast Field Office. “Upon initiating this investigation, NCIS quickly recognized the incredible benefit of our valued collaboration with U.S. and international law enforcement partners. We are grateful for their extraordinary efforts to bring to justice those responsible for importing and distributing the illicit narcotics that led to the tragic overdose deaths of two U.S. Sailors.”
“This poison ultimately led to the deaths of two servicemembers and destroyed the lives of countless others,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Stopping drug traffickers takes a team, and I’m proud of the work done by HSI and its law enforcement partners working together to stop this destructive epidemic.”
“The opioid crisis is affecting countless families in our communities, even those who would not otherwise be deemed at risk,” said Superintendent Richard Bergevin, Officer in Charge of the BC RCMP Federal Serious and Organized Crime Major Projects teams. “This investigation showcases the great work that is being done by our teams, using traditional as well as innovative investigative techniques, to combat the sale and distribution of these deadly drugs.”
“Pills in the underground drug market and on the Dark Web are often diluted with dangerous and deadly substances like fentanyl, as was the case in this investigation,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “There is no quality control in the process, so there’s a high chance that users will receive a deadly dose of fentanyl. The success of this investigation was made possible because of the collaborative efforts between all law enforcement agencies involved.”
“The U.S. Postal Inspection Service’s objectives are to preserve the integrity of the nation’s mail system from criminal misuse, rid the mail of illicit drugs, and to keep our communities safe,” said Juan A. Vargas, Acting Inspector in Charge of the U.S. Postal Inspection Service Miami Division. “Postal Inspectors will work with our law enforcement partners to combine resources and expertise to achieve a common goal, which is to combat the perils of illegal and dangerous drug distribution and ensure perpetrators of such attempts are brought to justice.”
The case is being investigated in Canada by U.S. Homeland Security Investigations, Vancouver; the Royal Canadian Mounted Police and its Online Undercover Operations Unit and Federal Serious and Organized Crime Unit, Cybercrime Operations Group; Calgary Police Service; and the Canada Border Service Agency; in the United Kingdom assistance was provided by the National Extradition Unit with the Metropolitan Police and the Staffordshire Police; and in the United States by the U.S. Food and Drug Administration Office of Criminal Investigations; the U.S. Naval Criminal Investigative Service; Homeland Security Investigations Savannah; the U.S. Drug Enforcement Administration; and the U.S. Postal Inspection Service, with assistance from the U.S. Marshals Service. The U.S. Department of Justice’s Office of International Affairs is providing significant assistance. The case is being prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and E. Gregory Gilluly Jr.
Two Convicted Felons Arrested for Firearms OffensesRead the Press Release
BOSTON – Two previously convicted felons have been arrested in connection with illegally selling firearms, including ghost guns, and illegally possessing ammunition. A ghost gun is a firearm that has been manufactured by an individual and not by a firearms manufacturing company.
Zachary Zella, 29, of Dudley, and Mickie Simmons, 31, of Brookfield, were arrested on May 25, 2022, on one count each of being a felon in possession of ammunition and dealing firearms without a license. The defendants were detained following initial appearances in federal court in Worcester on May 26, 2022. A detention hearing for Zella is scheduled for June 8, 2022, before U.S. District Court Magistrate Judge David H. Hennessey.
“In recent weeks, we have all seen the critical threat posed by gun violence in the United States and the devastating impact it has on our communities,” said United States Attorney Rachael S. Rollins. “Preventing the illegal trafficking of firearms, and specifically ghost guns, helps protect the safety of Massachusetts residents by addressing this real and present danger at its source. These defendants, each barred from possessing firearms due to their criminal histories, are alleged to have manufactured unmarked firearms for sale in their homes, including assault-styled rifles. My office and our law enforcement partners remain committed to addressing the proliferation of illegal firearms and the threat they pose to our communities. Individuals who are manufacturing and dealing firearms, specifically ghost guns, will be identified and prosecuted.”
“In our fight against violent crime, every illegal gun taken off the street is a small victory, and every gun trafficker locked up is a big one, especially when they are convicted felons who are selling untraceable firearms,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The disturbing level of gun violence in Massachusetts is undeniably exacerbated by the abundance of illegal firearms on the street. Our North Shore Gang Task Force is working to battle that tide, whether it’s through takedowns of violent gun-toting gangs, or one by one, arresting felons like Zachary Zella and Mickie Simmons whose alleged, unabashed criminal behavior, has put the safety of our communities in jeopardy.”
“The Massachusetts Department of Correction is extremely proud of its partnerships with public safety agencies,” said the Department of Correction’s Commissioner Carol Mici. “These relationships play an important part of the Department’s mission to public safety and are crucial in protecting our communities.”
According to the charging documents, on three separate occasions between March and May 2022, the defendants sold a confidential source four 9mm ghost gun pistols – one of which contained a Gamo laser sight – six magazines and 55 rounds of 9mm ammunition. During a later search of Simmons’ residence, authorities seized at least five ghost guns, including an AR-15 short-barrel rifle, and 15 ghost gun kits, numerous rounds of ammunition, components of assault-style rifles, several other firearms and more than $25,000 in cash. Additional ammunition was seized from Zella’s residence.
In 2016 and 2017, Zella was convicted in Dudley and Worcester District Courts on drug charges for which he was sentenced to two years in prison. In 2014, Simmons was convicted in Dudley District Court of breaking and entering, larceny and conspiracy for which he was sentenced to 18 months in prison.
The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to a $250,000. The charge of dealing firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to a $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI Boston SAC Bonavolonta and Massachusetts DOC Commissioner Mici made the announcement today. Assistant U.S. Attorneys Danial Bennett and Brendan O’Shea of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Defrauding Investor and Banks of MillionsRead the Press Release
A man who defrauded an investor and two banks out of at least $8.4 million was sentenced Wednesday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced William Brian Mulder, 64, of Tulsa to 84 months in federal prison followed by 3 years of supervised release. He was further ordered to pay to pay $4.5 million in restitution to the investor and $3.9 million in restitution to Firstar Bank and BancFirst.
“William Mulder portrayed himself as a successful investor, trusted mentor and friend, but it was a façade. Instead, he was a con artist who defrauded his friends and banks for years in an effort to sustain a lifestyle beyond his means,” said U.S. Attorney Clint Johnson. “This 7-year sentence reflects the egregious nature of the defendant’s longstanding criminal deceit. Our federal law enforcement partners are to be commended for exposing Mulder’s elaborate web of lies and ensuring justice for the victims in this case.”
“To support his extravagant lifestyle, Mr. Mulder meticulously deceived victims based in our community for years,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Mulder’s sprawling web of lies and fraud was only untangled through the tenacious effort of FBI agents working in partnership with investigators from the IRS, Treasury Department, and FDIC. Mr. Mulder’s sentence should give pause to other con-men seeking to defraud Oklahoma citizens and businesses.”
“William Mulder used deceit and trickery to defraud trusting friends and investors of their hard-earned money,” said Christopher J. Altemus, Jr., Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. “IRS-CI special agents are committed to using their forensic accounting skills to help unravel complex fraud and money laundering schemes. Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their own financial gain.”
On Oct. 19, 2021, Mulder pleaded guilty to causing the interstate transmission of moneys taken by fraud and money laundering. He was set to begin trial at the time but opted to plead guilty instead.
According to court documents, Mulder misrepresented himself as worth millions to friends. Mulder told several individuals that a wealthy Missouri widow had left him over $100 million in a blind trust in appreciation for his services as an insurance salesman for the widow. In another story, he said he was the beneficiary of a different blind trust worth hundreds of millions of dollars from his father. Mulder convinced his friends that if they pooled their investments with his fortune, they could grow their money faster. The government asserted there were no investments made by Mulder on their behalf but instead, Mulder deposited checks into his personal bank accounts and used the funds to pay off credit card debts and to run a coffee shop chain.
To cover his tracks, Mulder created a web of convoluted rules and restrictions to keep the victims from seeing the progress of their investments. He also moved money between more than 60 bank accounts to make it difficult for the investors and law enforcement to follow the trail of money.
In his plea agreement, Mulder specifically admitted that beginning in 2000 and continuing through 2017, he received numerous checks totaling approximately $4.5 million from the investor, who was a local businessman and friend to Mulder. Mulder advised the victim to create a trust for his special needs son for which Mulder would be the trustee and have complete discretion and control. Mulder told the victim that he would prudently invest the funds on the son’s behalf. Instead, Mulder used the funds for his own personal expenses and to enrich himself.
Mulder also admitted that in December 2015, he fraudulently received a check from the victim in the amount of $142,500 and deposited funds from the check in the amount of $83,378.54 into his personal account, which he later used on a personal investment in generators in Missouri.
Further, Mulder admitted that he lied about his assets and submitted fabricated documents to obtain loans from Oklahoma banks in order to support a lifestyle he couldn’t afford on his own.
Prosecutors contended that Mulder applied for and received loans worth millions of dollars from five banks. From 2004 to 2014, Mulder obtained the loans by pledging phony collateral that included fictitious life insurance policies supposedly issued by Merrill Lynch that appeared to insure Mulder and his family members. Mulder used the same phony policy numbers with every new bank he swindled, adding new phony policies as he went. To secure each loan, he provided the banks with the same types of fabricated records and documents. On some of the documents, Mulder forged the signature of a former Merrill Lynch colleague. Mulder was able to pay off three of the banks by obtaining new loans from other banks. Ultimately, two banks— Firstbank and BancFirst— suffered about $3.9 million in losses.
Prosecutors asserted that Mulder further tried to impede the federal investigation into his criminal conduct by fabricating a story blaming one of his bankers for creating the fictitious life insurance policies in Mulder’s and his family members’ names. Agents debunked the claim based on the evidence that Mulder began his scheme long before he ever met the accused banker.
Mulder was remanded into the custody of the U.S. Marshals Service and will be transferred to a Federal Bureau of Prisons facility.
The FBI, IRS-Criminal Investigation, U.S. Department of Treasury Office of Inspector General; and the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Thomas E. Duncombe, Vani Singhal, and Kevin C. Leitch prosecuted the case.
Tickfaw Tax Preparer Pleads Guilty to Filing False IRS ReturnsRead the Press Release
NEW ORLEANS – CHERYL L. KINCHEN, age 40, a resident of Tickfaw, Louisiana, pleaded guilty on May 31, 2022 to two counts of filing false tax returns, in her personal capacity, before U.S. District Court Judge Greg G. Guidry announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
According to court records, KINCHEN, the owner/operator of Beyond Blessed Tax Services, prepared false tax returns in 2015 and 2017 for her own personal taxes, by significantly underreporting the gross income she earned as a tax preparer for those time periods.
Sentencing is set for August 30, 2022. KINCHEN faces a maximum sentence of three years, up to one year of supervised release, up to a $100,000 fine and a $100 mandatory special assessment fee for the filing of false tax returns.
U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
Three Charged with Conspiracy to Defraud Five People of $3.25 Million in Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – Three men were charged by indictment with conspiring to defraud five victims out of approximately $3.25 million through an investment fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Malcolm Dean Hampton II, 62, formerly of California and now of Quinlan, Texas, William Joseph Kuzma 60, of Billings, Montana, and Michael Russell Davis 56, formerly of New York and now overseas, are each charged by indictment with one count of conspiracy to commit wire fraud. Hampton and Kuzma appeared today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and were released on $150,000 bond each. Davis remains at large.
According to documents filed in this case and statements made in court:
During 2017, the conspirators advertised an investment opportunity in Standby Letters of Credit (SBLC), which are essentially a guaranty of payment by a bank or financial institution. The investments were offered through Hampton’s company, 5 Star Investments LLC. Kuzma handled inquiries from potential investors, and forwarded investment contracts via email to potential investors. The contracts were deliberately vague and confusing, and contained false and fraudulent statements, including promising “guaranteed” returns which were unrealistic and which no investor had achieved, and promising to return the investor’s monies if the SBLC’s were not created. Davis was identified as the “asset manager,” and investors were instructed to wire their investment monies to a bank account in the name of Davis’ company, Jet Exclusive Aviation LLC.
From from March through May 2017, five investors entered into contracts with Hampton, Kuzma and Davis, and wired approximately $3.25 million to Davis’ account. The defendants did not invest the monies as promised, but rather converted them for their own use. Within days of the first victim’s “investment” money going into Davis’ account, Davis began transferring money to his other bank accounts, and also to an account held in Hampton’s relative’s name. Hampton thereafter transferred some of the proceeds to Kuzma. In response to complaints by the victims, the defendants continued to falsely assure the victims that the investments were moving forward, and later that the victims would get their monies back. That did not happen. Instead, Hampton, Kuzma and Davis spent the victims’ money on personal expenses, cars, and travel, and also transferred money to other bank accounts controlled by themselves or their family members.
The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael J. Messenger in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Third Defendant Pleads Guilty in Manhattan Federal Court to Large-Scale Trafficking of Rhinoceros Horns and Elephant Ivory ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MANSUR MOHAMED SURUR, a/k/a “Mansour,” a Kenyan citizen, pled guilty to conspiring to traffic in rhinoceros horns and elephant ivory, both endangered wildlife species, which involved the illegal poaching of more than approximately 35 rhinoceros and more than 100 elephants. SURUR also pled guilty to conspiring to distribute heroin to a buyer located in the United States.
Two of SURUR’s co-defendants, MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” a citizen of Liberia, and AMARA CHERIF, a/k/a “Bamba Issiaka,” a citizen of Guinea, previously pled guilty on March 30, 2022, and April 27, 2022, respectively to conspiring to traffic in rhinoceros horns and elephant ivory, as well as substantive charges of trafficking in rhinoceros horns. The remaining defendants, BADRU ABDUL AZIZ SALEH, a/k/a “Badro,” and ABDI HUSSEIN AHMED, a/k/a “Abu Khadi,” are both citizens of Kenya. SALEH is in custody in Kenya based on a U.S. extradition request, and AHMED remains a fugitive. The U.S. Department of State has offered a reward of up to $1,000,000 for information leading to his arrest and/or conviction, and any information may be provided to [email protected] or by calling 1-844-FWS-TIPS.
U.S. Attorney Damian Williams said: “The protection of endangered wildlife and natural resources is a crucial and important priority for my Office. These defendants were responsible for furthering an industry that illegally slaughters species protected by international agreements around the world. One of these defendants also engaged in a narcotics conspiracy involving a large quantity of heroin. Thanks to the tireless efforts of the U.S. Fish and Wildlife Service and the Drug Enforcement Administration, these defendants have now pled guilty to the serious and destructive crimes they committed.”
According to the charging and other documents filed in the case, as well as statements made during the plea and other proceedings:
KROMAH, CHERIF, and SURUR were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, SURUR, and others conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export rhinoceros horns and elephant ivory for delivery to foreign buyers, including certain rhinoceros horns to a buyer represented to be in Manhattan, in packaging that concealed the horns in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some of which were sent through U.S. financial institutions, and paid in cash.
On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell additional rhinoceros horns of varying weights, including horns weighing up to approximately seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two rhinoceros horns sold by the defendants that were intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR conspired with others to distribute and possess with intent to distribute a large quantity of heroin to a buyer represented to be located in New York.
KROMAH previously was expelled to the United States from Uganda, while CHERIF and SURUR were extradited from Senegal and Kenya, respectively. The defendants have been detained since their arrest and arrival in this country.
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KROMAH, 52; CHERIF, 57; and SURUR, 62, each pled guilty to one count of conspiracy to commit wildlife trafficking, which carries a maximum sentence of five years in prison. In addition, KROMAH and CHERIF both pled to two counts of wildlife trafficking, each of which carries a maximum sentence of five years in prison, and SURUR also pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, which carries a maximum sentence of life in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, and he thanked law enforcement authorities and conservation partners in Uganda and Kenya, including the Uganda Wildlife Authority, the Uganda Office of the Director of Public Prosecution, the Uganda Police Force, the Kenya Directorate of Criminal Investigations, and the Kenyan Office of the Director of Public Prosecutions, for their assistance in this investigation. Mr. Williams also thanked the U.S. Department of State and the U.S. Department of Justice’s Office of International Affairs for their assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
Texan who groped minor teenage girl on airplane into Bozeman sentenced to 20 months in prisonRead the Press Release
MISSOULA — A Texas man who admitted to repeatedly groping a minor teenage girl who was sitting in the seat in front of him on a flight into Bozeman was sentenced today to 20 months in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Vincent Harry Kopacek, 76, of Fredericksburg, Texas, pleaded guilty in February to an information charging him with abusive sexual contact.
U.S. District Judge Dana L. Christensen presided. Judge Christensen further ordered $363 restitution and a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015. Judge Christensen remanded Kopacek into custody.
In court documents, the government alleged that on July 8, 2021, Kopacek was on an evening flight from Austin, Texas, to Bozeman and had a window seat. The victim, identified as Jane Doe, who was 15, was seated in the row in front of Kopacek, and her seat was fully upright during the flight. While in flight, Kopacek reached his hand along the interior wall of the aircraft and around to the seat in front of him. The government further alleged that Kopacek started by touching Doe’s arm, them moved to her breasts, and even tried to touch her groin area. When the victim went to the airplane’s bathroom to try to stop the abusive sexual contact, Kopacek pretended to be sleeping. When Doe returned to her seat, Kopacek would start the harassment all over again.
Doe recorded the touching with her cellular phone, and, while on the aircraft, looked at Kopacek and took photos of him. Doe later described being scared and that the unwanted touching made her feel dirty, ashamed and disgusting. Investigators downloaded the images from Doe’s phone and confirmed Kopacek’s identity.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the FBI, Gallatin County Sheriff’s Office and the Bozeman Yellowstone International Airport Public Safety Office.
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Tazewell County Woman Pleads Guilty to Stealing More Than $255,000 in Black Lung and Social Security BenefitsRead the Press Release
ABINGDON, Va. – A North Tazewell, Virginia woman who stole more than $255,000 in Black Lung and Social Security benefits pled guilty last week in U.S. District Court.
Martha Patrick Williams, 79, waived her right to be indicted and pled guilty last week to one count of receipt and conversion of public monies and one count of fraud in connection with Black Lung benefits and the receipt of Social Security benefits in the name of her long-deceased mother. The charges to which she pled guilty have a maximum statutory sentence of 10 years.
According to court documents, Williams is the daughter of Gracie Neel Winningham, who died in 2003. Winningham had been a lawful recipient of Federal Black Lung benefits which were designed to provide financial compensation to qualified disabled coal miners and managed by the Department of Labor’s Office of Workers Compensation Program - Division of Coal Mine Workers Compensation.
Following Winningham’s death in 2003 and continuing until 2021, Williams received, endorsed, and deposited monthly Black Lung benefit checks made payable to her mother. In order to continue to receive these checks, Williams forged her mother’s signature on DOL Form CM-929, the annual certification of personal information required by the DOL. On several occasions, Williams communicated with others posing as Winningham. Williams also received, endorsed, and deposited monthly Social Security payments made payable to her deceased mother.
In all, Williams received $255,823 in both Black Lung and Social Security benefits to which she was not entitled.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Department of Labor, the Social Security Administration, and the Russell County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
T&A Crips defendant sentenced to 40 years in prisonRead the Press Release
COLUMBUS, Ohio – The last of 19 defendants to be convicted in a Columbus gang-related racketeering conspiracy was sentenced in U.S. District Court today to 40 years in prison.
Shawn Nelms, 29, pleaded guilty in September 2021 to his part in furthering the violence of the local Crips gang known as T&A. The racketeering conspiracy first charged in 2018 includes five murders, at least 26 attempted murders, and other violent and drug-trafficking crimes.
Nelms participated in the 2013 murder of William Moore. Nelms and others spotted Moore, a rival Poindexter Thug Life Bloods gang member, walking on Mount Vernon Ave. and agreed to kill the man for the purpose of maintaining and increasing their positions within T&A.
Nelms also participated in the 2012 gang-related murder of Franky Tention on Ellison Street in Columbus.
According to his plea, in 2011, Nelms shot a separate victim in the chest, and the man survived. During a robbery in 2011, one of several rounds shot by Nelms went into a nearby house and struck a young girl, who also survived.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Travis S. Riddle, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; and United States Marshal Pete Tobin announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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St. Simons man admits bomb threat to IRS office in New YorkRead the Press Release
BRUNSWICK, GA: A Glynn County man awaits sentencing after admitting in U.S. District Court that he threatened to blow up an Internal Revenue Service office in New York.
Benjamin Stasko, 34, of St. Simons Island, pled guilty to Interstate Transmission of a Threat to Injure, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to five years in federal prison, along with substantial financial penalties and up to three years of supervised release after completion of any prison term. There is no parole in the federal system.
“We will not tolerate threats of violence against public institutions, and will vigorously pursue anyone who would perpetrate such crimes,” said U.S. Attorney Estes. “Benjamin Stasko’s admission of guilt will deliver justice for his dangerous and ill-advised threat.”
Stasko admitted that on July 6, 2020, he posted a comment on a federal agency’s website, alleging that a pipe bomb had been planted in the Ted Weiss Federal Building in New York, New York, as a threat directed toward the Internal Revenue Service. Federal Protective Service officers with bomb sniffing dogs and officers from the New York Police Department searched the facility and found no explosives. Investigators later located and arrested Stasko in St. Simons.
“One of the core tenets of the mission of the Treasury Inspector General for Tax Administration (TIGTA) is to protect IRS personnel and property,” said J. Russell George, the Treasury Inspector for Tax Administration. “We are grateful for the assistance of our law enforcement partners and the U.S. Attorney’s Office ensuring this individual is held to account.”
The case was investigated by the U.S. Department of Treasury, Treasury Inspector General for Tax Administration; the New York Police Department and the Brunswick Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Gregory Gilluly Jr. and Joshua S. Bearden.
Sex Offender Sentenced in South Florida to Five Years for Failure to RegisterRead the Press Release
Miami, Florida – Today, a federal district judge sitting in Fort Pierce sentenced John Francis Bolieau, 44, of Massachusetts, to 60 months in federal prison, followed by five years of supervised release, for failing to register as a sex offender.
Bolieau was convicted of aggravated rape and abuse of a child, indecent assault and battery of a child under 14, and indecent assault and battery on a person over 14 in Hampshire County, Massachusetts in 2013. For these offenses, Bolieau was sentenced to 10 to 12 years in prison and 10 years of probation to follow. In addition, he was required to register as a sex offender under the federal Sex Offender Registration and Notification Act. In July 2021, Bolieau was released from prison and placed on probation, with a requirement that he wear a GPS ankle monitor. After being on probation for only three months, Bolieau cut off his ankle monitor, left Massachusetts and came to the Miami-area, without notifying his probation officer or updating his sex offender registration. On December 15, 2021, law enforcement located and arrested Bolieau in a recreational vehicle park in Highlands County, Florida. On arrest, Bolieau admitted that he had not reported to any law enforcement officer that he was in Florida, nor did he register as a sex offender in the State of Florida, as required by law.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida announced the sentence imposed by U.S. District Aileen M. Cannon.
The United States Marshals Service investigated this case, with the assistance of the Highlands County Sheriff’s Office. Assistant United States Attorneys Luisa Berti and Stacey Bergstrom prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14002.
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Second "Boogaloo Bois" Member Sentenced to Prison for Conspiring to Provide Material Support to HamasRead the Press Release
MINNEAPOLIS – Benjamin Ryan Teeter, 24, of Hampstead, North Carolina, was sentenced today to 48 months in prison followed by five years of supervised release for conspiring to provide material support and resources to Hamas, a designated foreign terrorist organization, for use against Israeli and U.S. military personnel overseas, announced U.S. Attorney Andrew M. Luger.
According to court documents, in late May of 2020, the FBI initiated an investigation into Teeter and co-defendant Michael Robert Solomon, 32, two members of the “Boogaloo Bois,” and a sub-group called the “Boojahideen.” The Boogaloo Bois are a group of individuals who espouse violent anti-government sentiments.
According to court documents, on June 10, 2020, Teeter and Solomon met with a confidential human source (“CHS”), whom the defendants believed to be a member of Hamas. During this meeting, Teeter and Solomon proposed assisting Hamas as a means of furthering the goals of the Boogaloo Bois. Throughout the course of the conspiracy, Teeter used encrypted messaging applications to communicate with Solomon and the CHS about various aspects of the conspiracy.
On June 18, 2020, the defendant met with the CHS to discuss the goals of the Boogaloo Bois and identified a courthouse in northern Minnesota that he and Solomon believed was a suitable target for destruction.
On June 28, 2020, Teeter, Solomon, and the CHS, met an undercover employee of the FBI (“UCE”) that Teeter believed was a member of Hamas. During this meeting, Teeter and Solomon proposed manufacturing suppressors, untraceable firearms, and fully automatic firearms for Hamas.
On July 6, 2020, Teeter and Solomon purchased a drill press for the purpose of manufacturing suppressors for Hamas. Teeter admits that he and Solomon had planned to use the drill press to also manufacture suppressors for members of the Boogaloo Bois. Solomon and Teeter brought the drill press to Solomon’s home and later used the drill press to manufacture five suppressors.
On July 30, 2020, Teeter and Solomon delivered the five suppressors to the CHS and UCE believing those devices would be used by the militant wing of Hamas. During that meeting, Teeter and Solomon agreed to manufacture additional suppressors for Hamas believing that the next batch of suppressors would be used against Israeli and U.S. military personnel overseas.
Teeter admitted that he and Solomon again met the UCE on August 29, 2020. During this meeting, the defendants gave the UCE a 3-D printed “auto sear” believing that the auto sear would be used by Hamas to convert semi-automatic rifles into fully automatic rifles. At this time, Teeter and Solomon agreed to obtain, and did obtain, another order of auto sears for the CHS and the UCE.
Teeter was sentenced earlier today before Senior U.S. District Judge Michael J. Davis. In sentencing the defendant, the Court recognized the extensive assistance to multiple investigations that Teeter provided to the FBI following his arrest. On December 16, 2020, Teeter pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization.
This case was the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Andrew R. Winter and Trial Attorney Jessica Fender of the National Security Division's Counterterrorism Section prosecuted the case.
Schuylkill County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Guzman, age 50, of Pottsville, Pennsylvania, was indicted on May 17, 2022, by a federal grand jury for methamphetamine trafficking. The indictment was unsealed following Guzman’s arrest.
According to United States Attorney John C. Gurganus, the indictment charges Guzman with one count of distribution of methamphetamine and one count of possession with intent to distribute high-quality crystal methamphetamine on March 2 and 10, 2022, in Schuylkill County.
The charges against the defendant resulted from an investigation conducted by the Federal Bureau of Investigation and the Schuylkill County Drug Task Force. Assistant United States Attorney Robert J. O’Hara 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 charges carry a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in prison, a term of supervised release 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Salem Man Found Guilty on All Counts in Decade-Long Mortgage Fraud SchemeRead the Press Release
BOSTON – A former self-proclaimed Salem real estate developer has been convicted by a federal jury in Boston in connection with a 10-year mortgage fraud scheme involving at least two dozen fraudulent loan transactions totaling $6.5 million and resulting in more than $3.8 million in losses to lenders.
George Kritopoulos, 50, of Salem, was convicted on May 27, 2022, of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. U.S. District Court Judge Patti B. Saris scheduled sentencing for Sept. 29, 2022. Kritopoulos was charged in September 2018 along with co-defendants Joseph Bates III and David Plunkett.
“Mr. Kritopoulos held himself out to be a prominent real estate developer and believed he was above the law. This guilty verdict makes it clear that he is not,” said United States Attorney Rachael S. Rollins. “Mr. Kritopoulos and his co-conspirators thought they could line their pockets by victimizing innocent lenders and borrowers. When the scheme began unraveling, Mr. Kritopoulos attempted to have his co-conspirators create phony documents, but they refused. In an interview, Mr. Kritopoulos lied to investigators. We are committed to holding those who engage in this type of behavior accountable.”
“This verdict proves that George Kritopoulos is a predator who repeatedly targeted young, financially vulnerable victims and exploited them to pad his own pockets while driving them deeper into debt. He lied to the banks on behalf of those victims and tried to obstruct our investigation,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mortgage fraud cases like this one are important to deter would-be fraudsters from acting, and to ensure those who commit fraud, like Kritopoulos, face justice. After all, this type of crime artificially influences home values and threatens the investments of lawful buyers.”
“Mortgage fraud, like many financial crimes, creates untold harm to individuals, communities, businesses and the integrity of the financial system,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Office. “This guilty verdict is proof of IRS Criminal Investigation’s dedication to protecting the financial health of our communities when they are threatened.”
From 2006 through 2015, Kritopoulos, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units, which were also financed by mortgage loans obtained by fraud.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. As a result, the income asserted on the borrowers’ loan applications that Kritopoulos submitted to lenders grossly inflated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Kritopoulos brought newly recruited borrowers to Plunkett, who then prepared tax returns that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders of more than $3.8 million.
In addition, Kritopoulos sought to obstruct the federal criminal investigation into the mortgage fraud scheme by encouraging Bates and Plunkett to make false statements and create false documents he hoped would make the companies appear to have been legitimate.
In October 2018, Bates pleaded guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. A sentencing hearing for Bates has not yet been scheduled by the Court. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns and is scheduled to be sentenced on Sept. 15, 2022.
The charges of bank fraud and wire fraud each provide for sentences of up to 30 years in prison and five years of supervised release. The charge of obstruction of justice provides for a sentence of up to 20 years in prison and five years of supervised release. The charge of conspiracy provides for a sentence of up to five years in prison and three years of supervised release. The charge of aiding the preparation of false tax returns provides for a sentence of up to three years in prison and one year of supervised release. Each charge also carries a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS CI SAC Simpson and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office, made the announcement today. Valuable assistance was provided by the Salem Police Department. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit, are prosecuting the case.
Rochester Man Pleads Guilty to Gun Charge for His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Deshan Scott, 22, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between September and October 26, 2021, Scott conspired with others to sell cocaine. In the early morning of October 26, 2021, investigators executed search warrants at numerous locations associated with the narcotics conspiracy, including a residence on Bernard Street. At that location, Scott worked as a lookout for the organization, watching for threats to their operation such as law enforcement or armed robbers, while other co-conspirators sold street-level quantities of cocaine to customers. When Scott saw law enforcement approaching, he threw a loaded 9mm handgun out of a window, which was found on a roof ledge outside a window. During the search of the residence, law enforcement also recovered 200 plastic vials of cocaine and $2,310 United States currency.
Scott was arrested and charged along with eight other defendants. He is the fifth defendant to be convicted.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; Immigration and Customs Enforcement, under the direction of Acting Field Office Director Thomas Brophy; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, the New York State Police, under the direction of Major Barry Chase; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office, under the direction of Sheriff Philip Povero; the Rochester Police Department, under the direction of Interim Police Chief David M. Smith; the Greece Police Department, under the direction of Chief Michael Wood; the Brighton Police Department, under the direction of Chief David Catholdi; and the Greater Rochester Area Narcotics Enforcement Team.
Sentencing is scheduled for September 1, 2022, before Judge Geraci.
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Rochester Man Arrested After Selling Drugs to Undercover OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Colon, 30, of Rochester, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute and distribution of cocaine and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between January 18 and March 9, 2022, Colon sold cocaine and fentanyl to an undercover officer on five separate occasions.
Colon made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and is being held without bail.
The criminal complaint is the result of an investigation by the Monroe County Sherriff’s Office, under the direction of Sheriff Todd Baxter, the Rochester Police Department, under the direction of Interim Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team (GRANET), and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rochester Felon Arrested on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Chad Owens, 30, of Rochester, NY, was arrested and charged by criminal complaint with possession with intent to distribute cocaine, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. The charges carry a maximum penalty of life in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on May 13, 2022, a search warrant was executed at Owens’s Barberry Terrace residence in Rochester. During the search, investigators recovered $23,280 in cash, 75 individually wrapped bags of cocaine, another 52 grams of cocaine, and drug paraphernalia. A loaded .45 caliber handgun and a .40 caliber handgun with a defaced serial number, both of which had been reported stolen, and ammunition were also recovered. Owens was previously convicted on in Monroe County Court of Attempted Criminal Possession of a Firearm in the Second Degree and is legally prohibited from possessing firearms.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and is being held without bail.
The criminal complaint is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David Smith and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Previously Convicted Felon Sentenced to 20 Years in Federal Prison for Firearm and Drug Trafficking OffensesRead the Press Release
INDIANAPOLIS – Marvin Love, 38, of Indianapolis, was sentenced to 240 months in federal prison after pleading guilty to charges of possession with intent to distribute methamphetamine and cocaine, being a felon in possession of a firearm and carrying a firearm during and in relation to his trafficking of methamphetamine and cocaine.
According to court documents, on January 7, 2020, Love was stopped in his vehicle by Indianapolis Metropolitan Police Department (IMPD) officers, who discovered Love in possession of distribution quantities of cocaine and methamphetamine. Officers also found a handgun belonging to Love on the floorboard of his vehicle. Love is prohibited from possessing firearms due to multiple prior felony convictions, including two armed robberies in Marion County. During one of those robberies, Love shot a victim twice when stealing $10. Love also has a prior federal felony conviction for illegally possessing a firearm. He was released from prison for that crime in late October 2019, less than 2 ½ months before he was arrested in January 2020 in this case.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Indianapolis Metropolitan Police Department Chief Randal Taylor made the announcement.
The Indianapolis Metropolitan Police Department investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The sentence was imposed by U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Love be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Postal Employee Pleads Guilty to Possessing Stolen MailRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that Aleia Deborah Green (20, Brooksville) today pleaded guilty to possession of stolen mail. Green faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set. Green had been indicted on February 15, 2022.
According to court records, Green worked as a contract mail carrier for the United States Postal Service (USPS) delivering mail for the Crystal River Post Office. On October 13, 2021, the USPS – Office of Inspector General (OIG) received complaints of mail theft from Green’s route. On October 19, 2021, special agents from the USPS OIG conducted surveillance at a neighborhood cluster box on Green’s route. The agents put a piece of mail containing United States currency in the outgoing mail, and within an hour-and-a-half, Green had opened the mail and taken the money. When confronted by the agents, Green admitted to opening the mail and taking the money. Green advised that she has been opening mail along her route since August 2021, and that she had opened approximately 100 pieces of mail.
This case was investigated by the U.S. States Postal Service – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Paralegal Pleads Guilty to Embezzlement of Funds from Law Firm Trust AccountRead the Press Release
RICHMOND, Va. – A Midlothian woman pleaded guilty today to conspiring to embezzle funds from the trust account of the law firm where she worked.
According to court documents, from at least September 2, 2015, through December 5, 2017, Lindsey Epps Passmore, 38, was a paralegal at a Richmond area law firm that specialized in real estate law. That firm held loan proceeds in an escrow account for a private lender to Passmore’s co-defendant, Joshua Brian Romano, 39, of Chesterfield, who was involved with the purchase, rehabilitation, and sale of homes around Richmond. The loan proceeds were earmarked for Romano to use them only for the purchase of purchase and rehabilitation of specific properties, and only with the lender’s express approval for each disbursement. In order to cover this up, Passmore sent the lender emails that falsely reported the balances held in escrow for these properties.
Passmore disbursed a total of $1,206,953.27 of the lender’s funds held in escrow for Romano’s projects without receiving the lender’s approval or by misleading the lender about how the funds were to be used. The funds were then allegedly used by Romano for purposes outside the scope of the agreements with the lender.
Passmore is scheduled to be sentenced on August 18. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Romano is scheduled to face a trial by jury on October 17, 2022. He is presumed innocent until proven guilty.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office made the announcement after U.S. Magistrate Judge Elizabeth W. Hanes accepted the plea.
Assistant U.S. Attorney Michael C. Moore is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-26.
Owner of Northeast Philadelphia Pharmacy Charged with Conspiracy to Distribute Oxycodone and FraudRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Mitchell Spivack, 62, of Collegeville, PA, was charged by Information with conspiracy to distribute controlled substances and healthcare fraud. These charges are the result of a joint investigation between the United States Attorneys Office for the Eastern District of Pennsylvania and the Pennsylvania Office of Attorney General.
As alleged in the Information, Spivack owned Verree Pharmacy located in the Fox Chase section of Philadelphia and was the pharmacist in charge. Verree operated as a small neighborhood pharmacy for more than thirty years. During that time in business, Spivack and his coconspirators allegedly cultivated Verree’s reputation as an “easy fill” and “no questions asked” pharmacy for oxycodone and other dangerous and addictive opioid drugs. By 2016, Verree was the largest purchaser of oxycodone among retail pharmacies in the entire Commonwealth of Pennsylvania. In furtherance of the conspiracy, Spivack and his coconspirators filled prescriptions for wholesale quantities of high-dose oxycodone despite obvious alterations to the prescriptions and other red flags indicating that the drugs were not for a legitimate medical purpose. In addition, Spivack and other employees of Veree submitted entirely fraudulent claims to health care benefit programs for prescription drugs not dispensed. These drugs were designated in patient profiles as “BBDF” which was an acronym for “Bill But Don’t Fill.” From 2013 through 2019, Medicare and other insurers paid over $450,000 for these bogus claims.
“Pharmacies and pharmacists engage in the deepest violation of the community’s trust when they exploit their access to opioids and other controlled substances and illegally dispense the drugs for their own financial gain,” said U.S. Attorney Williams. “It is even more disturbing when pharmacists take advantage of their position of trust by fraudulently billing Medicare and other federal health care programs for bogus prescription drugs. Our Office will use every resource it has to pursue and hold these individuals accountable. I am grateful for the support and investigative teamwork that the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office provided in this important matter.”
“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “The defendant is charged with filling prescriptions outside of medical standards for the highly addictive drug oxycodone. Diversion of these drugs perpetuates the existing opioid crisis that killed 5,438 Pennsylvanians last year. Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate. Our office is committed to continuing to work with our federal partners to hold medical professionals like Mitchell Spivack accountable to the fullest extent of the law.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, a $250,000 fine, three years of supervised release, a special assessment and an order of restitution.
If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.
Earlier this year, the U.S. Attorney’s Office filed a civil suit against Spivack, his company, and employees alleging healthcare fraud and violations of the Controlled Substances Act. The criminal case was investigated by the Philadelphia Field Division of the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Pennsylvania Department of State’s Bureau of Enforcement and Investigation. The criminal case is being prosecuted by Assistant United States Attorney M. Beth Leahy and Special Assistant United States Attorney Linda Montag, who was specially designated by the AG. The civil case is being handled by Assistant United States Attorney Anthony D. Scicchitano.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Orleans Parish Woman Pleads Guilty to Theft of More than $61,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CATHERINE CAMPBELL WILLIAMS, age 69, of New Orleans, Louisiana, pled guilty on May 31, 2022 to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, beginning in December 2010 and continuing through 2020, WILLIAMS collected Social Security Administration benefits paid to a deceased relative. In total, WILLIAMS fraudulently received approximately $61,324 in Social Security Administration benefits to which she was not entitled.
WILLIAMS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee. U.S. District Judge Greg G. Guidry set sentencing for August 30, 2022.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Olathe Man Indicted Following Police Chase on Downtown Airport RunwayRead the Press Release
KANSAS CITY, Mo. – An Olathe, Kansas, man who led police officers on a high-speed chase down a runway at the downtown airport has been indicted by a federal grand jury for disrupting airport operations as well as illegally possessing a firearm and methamphetamine.
Efren Torres-Rodriguez, 34, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo., on May 18. He was arrested today.
Kansas City, Mo., police officers were notified of a suspicious car, a Dodge Charger, parked near a gate at the Charles B. Wheeler Downtown Airport on Feb. 1, 2022. When officers arrived, they found Torres-Rodriguez passed out in the driver’s seat of the running car. Officers turned off the car and opened the door, which woke up Torres-Rodriguez.
Officers ordered Torres-Rodriguez out of the car, but he refused. Instead, Torres-Rodriguez started the vehicle and drove away, crashing through the gate to the airfield. Torres-Rodriguez drove at speeds up to 100 miles per hour down the airport runway, with officers in pursuit. Torres-Rodriguez drove on a tarmac on the west side of the airfield. When he attempted to cross over the airstrip into a grassy area, his vehicle became inoperable. Officers removed Torres-Rodriguez from the vehicle and placed him under arrest. Officers found a clear plastic bag in his pants pocket that contained methamphetamine.
When officers searched Torres-Rodriguez’s vehicle, they found a Glock .40-caliber semi-automatic handgun with an extended magazine, which were both empty of ammunition, under the driver’s seat. They also found several rounds of ammunition and drug paraphernalia.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Torres-Rodriguez has prior felony convictions for possession of a firearm with a prior violent offense, for being a felon in possession of a firearm, and for robbery.
The federal indictment charges Torres-Rodriguez with one count of damaging and interfering with an air navigation facility, one count of damaging and disrupting an international airport, one count of being a felon and drug user in possession of a firearm, and one count of possessing methamphetamine.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Neighborhoods
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.
Oklahoma Man Charged in Complaint Alleging He Made Bomb Threats to L.A. Schools and Threatened to Shoot Elementary School StudentsRead the Press Release
LOS ANGELES – An Oklahoma man who grew up in Los Angeles was arrested today on a federal criminal complaint alleging that he telephoned bomb threats to five Los Angeles schools, including two elementary schools, and also threatened to shoot the children as they exited one of the elementary schools.
Marcus James Buchanan, 44, of Blackwell, Oklahoma, is expected to make his initial appearance this afternoon in United States District Court in Wichita, Kansas.
Buchanan is charged with one count of making a threat through interstate commerce to damage or destroy buildings by fire or explosives.
According to an affidavit filed with the complaint, during a period of less than two hours on the morning of February 28, Buchanan called in bomb threats to two elementary schools, two middle schools, and a high school in Los Angeles. In a call to one of the elementary schools, Buchanan allegedly threatened to shoot the children as they exited the building.
On April 27 and 28, Buchanan allegedly called in additional bomb threats to two of the Los Angeles schools he previously threatened, and threatened to shoot and kill children at other schools. On the afternoon of April 27, Buchanan called an elementary school and said to a school employee, “There is a bomb at your school and we will shoot the kids when they get out of the school. That is what you get for not accepting me in ’86,” according to the affidavit. When the employee asked who was calling, Buchanan allegedly responded, “If you try to find out, I will shoot you.” After receiving the threat, the school staff notified police and placed the school on lockdown. Police searched the campus for explosives or unusual items but found none.
On April 28, Buchanan allegedly called the same school again and said there was a pipe bomb placed at the school’s address. After receiving the bomb threat, the school staff notified police and placed the school on lockdown. Police searched the campus for explosives or unusual items but found none.
That same day, Buchanan allegedly called a different elementary school and said, “Stop playing games you know who this is. I am going to shoot the school. I know the kids are there.” Afterwards, the school was placed on lockdown, but – as with all the incidents – no explosives or unusual items were found.
Phone records indicated that the threatening calls came from a number identified with Buchanan, the affidavit states.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Buchanan would face a statutory maximum sentence of 10 years in federal prison.
The FBI and the Los Angeles School Police Department investigated this matter.
Assistant United States Attorney Morgan J. Cohen of the General Crimes Section is prosecuting this case.
Nurse Sentenced to 54 Months for Drug TamperingRead the Press Release
GREENSBORO – Emilee Kathryn Poteat, 32, of Danville, Virginia, was sentenced today to 54 months in prison for tampering with a consumer product, announced United States Attorney Sandra J. Hairston.
The Poteat indictment, filed in June 2021, charges that from on or about July 1, 2020, continuing up to and including on or about October 28, 2020, the defendant did, with reckless disregard for the risk that another person would be placed in danger of bodily injury and under circumstances manifesting extreme indifference to such risk, tamper and attempt to tamper with a consumer product that affected interstate commerce to wit: three syringes of injectable hydromorphone, in violation of 18 U.S.C. §1365(a)(4).
According to court documents, from July to November 2020, Poteat -- a registered nurse – was employed as a contract nurse in the Clinical Pre/Post Procedure Unit (“CPPU”) at Novant Health Forsyth Medical Center (“NHFMC”) in Winston-Salem, North Carolina. In that capacity Poteat was authorized to access the Pyxes machine located in the CPPU of NHFMC for the purpose of dispensing controlled substances, including injectable Hydromorphone, to patients at the direction of prescribing doctors.
A Pyxes machine is a device used to securely store controlled medications and prevent unauthorized access to such substances. Controlled substances are stored in locked drawers which require entry of both a fingerprint and a password before authorized medical personal can open the drawers to withdraw a controlled substance. Further, a nurse or other authorized person must enter specific prescription information for an actual patient to access prescribed substances secured in the Pyxes machine. Vials of drugs stored in the Pyxes machine at NHFMC were held in container packages with each individual vial sealed with tamper evident seals and caps.
From July 2020 through November 2020, Poteat opened container packages containing vials of injectable Hydromorphone that were stored in the Pyxes machine located in the CPPU at NHFMC. She then removed the vials from those container packages and opened the vials for the purpose of converting and consuming the Hydromorphone by injecting the drug into herself.
After removing and converting injectable Hydromorphone, Poteat injected saline solution into the vials so as to conceal her conversion of the drugs and replaced the lids of the vials with glue. Poteat then placed the tampered-with vials which were filled with saline solution into the opened container packages, closed and re-sealed the container packages, and then left those container packages in the locked and secured Pyxes machine -- knowing that CPPU nurses might administer the compromised and tampered-with vials of injectable Hydromorphone to surgical patients in the CPPU at NHFCMC, despite the fact that such vials did not contain the drug and were filled with potentially contaminated saline solution.
Poteat was ordered to pay a $3,000 fine and will face three years of supervised release in addition to her 4-1/2 year prison sentence.
This case was prosecuted by Assistant United States Attorney Frank J. Chut, Jr. The United States Food and Drug Administration investigated the case.
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Newton Physician Resolves Allegations of Improper Prescribing Practices Concerning Controlled SubstancesRead the Press Release
BOSTON – Dr. Hooshang Poor, a Newton geriatric medicine physician, has agreed to pay $100,000 to resolve allegations that he prescribed controlled substances outside the usual course of professional practice, a violation of the Controlled Substances Act. Dr. Poor previously resolved allegations in February 2019 that he violated the False Claims Act by submitting inflated claims to Medicare and the Massachusetts Medicaid program.
Under the Controlled Substances Act, physicians and other prescribers registered with the Drug Enforcement Administration may only issue prescriptions for a legitimate medical purpose and in the usual course of professional practice. Separately, under Massachusetts state law, prescribers of controlled substances are required to access the Prescription Monitoring Program (PMP) via a database (MassPAT) to review a patient’s prescription history prior to issuing a prescription for a Schedule II or Schedule III drug or a benzodiazepine, and prior to the first time they issue a prescription for a Schedule IV or V drug. The PMP allows a prescriber to see what, if any, Schedule II to V controlled substances patients are receiving from any other prescriber. With this information, prescribers can assess, among other things, whether the patient is at a high risk for overdose.
Pursuant to the settlement agreement, Dr. Poor admitted that in 2019 and 2020, he issued 51 prescriptions for Schedule II, IV or V controlled substances without first reviewing the patients’ prescription histories in MassPAT.
“Proper prescribing practices prevent overdoses and deaths,” said United States Attorney Rachael S. Rollins. “Simply put, the PMP saves lives and physicians who fail to comply with their statutory mandate to check the patient’s prescription history are putting their patients at risk. We will continue to work with our partners at the DEA to protect patients and enforce the Controlled Substances Act.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
“Physicians are responsible for the health and wellbeing of their patients, but this doctor irresponsibly prescribed dangerous drugs to Massachusetts residents without abiding by critical requirements. Protecting against these illegal practices is a priority for my team, and we’ll continue to work with our federal partners to hold bad actors accountable,” said Massachusetts Attorney General Maura Healey.
U.S. Attorney Rollins, DEA SAC Boyle and Massachusetts AG Healey made the announcement today. Assistant U.S. Attorney Evan Panich of Rollins’ Affirmative Civil Enforcement Unit handled the case along with Assistant Attorneys General Kevin Lownds and Elisha Willis of the Massachusetts Attorney General’s Medicaid Fraud Division.
New York Construction Company Owner Indicted for Filing False Tax ReturnsRead the Press Release
A federal grand jury in Central Islip, New York, returned an indictment last week charging a New York businessman with filing false business and individual tax returns with the IRS.
According to the indictment, Pawel Bartoszek, of Lake Grove, owned and operated Mega State Inc., a construction company. From 2015 through 2017, Bartoszek and individuals acting at his direction allegedly cashed more than $6 million in checks from Mega State clients at a check-cashing business, instead of depositing those funds into Mega State’s business bank account. Bartoszek then allegedly used some of this cash to fund an “off the books” cash payroll for Mega State. The indictment also charges that Bartoszek did not inform his return preparer about the cashed checks, thereby enabling Bartoszek to underreport Mega State’s gross receipts, sales and ordinary business income, as well as his 2015-2017 personal total income. As a result, Bartoszek allegedly filed false tax returns with the IRS for Mega State and himself for each of those years.
Bartoszek was arraigned today before U.S. Magistrate Judge Steven Tiscione of the U.S. District Court for the Eastern District of New York. If convicted, Bartoszek faces a maximum of three years in prison for each of six counts of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ann Marie Cherry and Catriona Coppler of the Tax Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced on Carjacking and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant KAHLIQ WILLIAMS, of New Orleans, Louisiana, was sentenced on May 31, 2022 by U.S. District Court Judge Greg G. Guidry to a total term of 164 months. As to Counts 1, 3, and 4 the Court sentenced WILLIAMS to 80 months of imprisonment, to be served concurrently with each other. As to Count 2, WILLIAMS was sentenced to a term of 84 months, to be served consecutively to the terms imposed on each of Counts 1, 3, and 4. Additionally, upon release from imprisonment, Judge Guidry ordered that WILLIAMS shall be on supervised release for a term of 5 years which consists of 3 years as to Counts 1, 3 and 4, and 5 years as to Count 2, such terms to run concurrently with each other. Finally, WILLIAMS was ordered to pay a total of $400 in mandatory special assessment fees on Counts One, Two, Three, and Four of the six-count indictment.
Counts One and Four of the indictment charged WILLIAMS with two separate carjackings, both in violation of Title 18, United States Code, Section 2119(1). Count 2 charged WILLIAMS with brandishing a firearm in furtherance of a crime of violence, that is, a carjacking, in violation of Title 18, United States Code Section, 924(c)(1)(A)(ii). Finally, Count Three charged WILLIAMS with burglary of a federal firearms licensee, in violation of Title 18, United States Code, Section 922(u).
According to filed documents, WILLIAMS pled guilty to two carjackings which occurred on April 16, 2020, and May 19, 2020. Both carjackings occurred in New Orleans, and in both instances, WILLIAMS admitted to taking the vehicles from the respective victims while brandishing a firearm during the commission of the carjackings. Additionally, on April 17, 2020, at approximately 1:16 AM, deputies with St. Tammany Sheriff’s Office were dispatched to C&S Gun Parlor in Covington, LA in response to a burglary alarm. C&S Gun Parlor is designated as a federal firearm licensee. Deputies arrived to find the front entrance damaged. Specifically, deputies noted that it appeared that a vehicle had rammed the front entrance. Investigators reviewed surveillance video footage from the interior and exterior of the store and observed a Chevrolet pick-up truck drive the rear end of the vehicle through the front entrance of the business, breaking a poll, glass doors, glass windows, and the metal gate. Three individuals wearing hoodies, masks, gloves, exited the vehicle and proceeded to throw rifles and handguns into the bed of the pick-up truck. Forty-five (45) total weapons were stolen from the store. WILLIAMS was eventually arrested in Jefferson Parish and several of the stolen firearms were found in his possession. In addition to admitting his role in the respective carjackings, he also admitted his participation in the burglary of the gun store.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives the New Orleans Police Department, the St. Tammany Parish Sheriff’s Department, and the Jefferson Parish Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
Nampa Man Sentenced to 6 years for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE - A Nampa man was sentenced to 72 months in federal prison for possession with intent to distribute methamphetamine.
According to court records, Shawn Eugene Norris, 44, led law enforcement officers on a high-speed chase in a Nampa neighborhood before crashing his vehicle into a trash can in a residential alley. Officers watched as Norris exited his vehicle and threw an object away in one of the trash cans. Officers opened the trash can and found that the only item inside was a quarter pound of methamphetamine.
Norris has a criminal history spanning 30 years with prior state convictions for possession of controlled substances, carrying a concealed weapon without a license, battery-domestic violence, grand theft, and a federal conviction for felon in possession of a firearm.
Senior U.S. District Judge Bill R. Wilson, from the Eastern District of Arkansas, sitting by designation, also ordered Norris to serve five years of supervised release following his prison sentence. Norris pleaded guilty to the charge on March 1, 2022.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and commended the investigation by the Nampa City Police Department, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Mexican Man Sentenced to 120 Months’ Imprisonment for Drug ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that Irving Cervantes Rodriguez, 27, of Mexico, was sentenced today by United States Judge Brian C. Buescher for conspiracy to possess with intent to distribute 50 grams or more of pure methamphetamine. Cervantes received a sentence of 120 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
In July 2019, investigators with the Minnesota Bureau of Criminal Apprehension began investigating Cervantes Rodriguez as a supplier/go-between for the distribution of methamphetamine. Cervantes was convicted in 2017 for possession with intent to distribute methamphetamine and was serving a sentence in a Nebraska prison. Investigators were aware that Cervantes was communicating via smuggled phones, and a BCA undercover agent was introduced to Cervantes. The undercover agent spoke to Cervantes over the phone and as a result, two transactions were arranged. The first occurred on July 18, 2019, and the second occurred on August 7, 2019. In total, the undercover agent was able to purchase 1.73 kilograms of pure methamphetamine through deals arranged by Cervantes.
This case was investigated by the Minnesota Bureau of Criminal Apprehension.
Man Who Sexually Abused Sleeping Woman Convicted at TrialRead the Press Release
A man who sexually abused a sleeping woman was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Robin Roberts, age 67, from the Meskwaki Settlement was convicted of sexual abuse. The verdict was returned this afternoon following about ninety minutes of jury deliberations.
The evidence at trial showed that on July 8, 2021, the victim went to Roberts’ residence and spent the night. The next day, the victim woke up to Roberts’ performing oral sex on her. The victim never consented to the sex and Roberts began the sex act while she was sleeping and not capable of consent.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Roberts remains in custody of the United States Marshal and will remain in custody pending sentencing. Roberts faces a possible maximum sentence of life imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Liz Dupuich and was investigated by the Federal Bureau of Investigation and the Meskwaki Nation Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-0060.
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Man Who Ran $1.4 Million Ponzi Scheme from Prison Sentenced to 8 More YearsRead the Press Release
A California man who ran a $1.4 million Ponzi scheme from behind bars while serving time on another fraud conviction was sentenced Tuesday to eight additional years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Michael David Carroll, 46, of Long Beach CA, pleaded guilty in November 2021 to wire fraud. He was sentenced yesterday by U.S. District Judge David C. Godbey, who also ordered him to pay $1,346,499.90 in restitution to his victims.
“This defendant had the audacity to mount a million dollar Ponzi scheme while serving time for a prior fraud. But for a second time, his avarice caught up with him: A federal judge more than doubled his sentence,” said U.S. Attorney Chad Meacham. “The U.S. Attorney’s Office and the FBI are determined to hold accountable those who defraud honest investors.”
“The defendant deceived dozens of investors to preserve his complex financial scheme and fund a lavish lifestyle. Many Ponzi scheme victims do not recover their investment and are often left financially devastated,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI will continue working with our partners to hold individuals accountable for defrauding investors and robbing them of their livelihood. We encourage the public to thoroughly research investment opportunities and to report any potential fraud to the FBI’s Internet Crime Complaint Center at ic3.gov.”
According to court documents, in September 2017, Mr. Carroll – already 36 months into a 70-month sentence for a prior fraud conviction – lied to investors about his intention to secure funding for their ventures and invest their funds into legitimate investment ventures.
He admitted that he pitched investors on bridge loans, short term loans used to buy assets or cover obligations until longer-term financing is found, promising 40 to 50 percent rates of return in just one to three months. He claimed that each bridge loan was backed by a bank and therefore guaranteed.
He concealed the fact that he was a convicted felon, and if asked about it, claimed he had been falsely accused and had the charges dismissed.
Instead of actually investing the money, however, he set up a Ponzi scheme, secretly using new investor funds to make payments to older investors. This gave them the false impression that their “investments” were yielding profits, thereby lulling them into a false sense of security and encouraging them to make more fraudulent investments.
He used excess money from his scheme to fund his lavish lifestyle, which included for a private jet service, luxury vehicles, high-end dining, and suites at NFL games.
He preyed on more than two dozen victims and fraudulently obtained at least $1.4 million, inducing multiple fraudulent transfers from investor accounts into accounts associated with his businesses, MCC Holdings, SLJ Holdings, and STR America Holdings.
Mr. Carroll is currently incarcerated at the federal correctional institution in Seagoville, TX.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Dimitri Rocha prosecuted the case with the help of auditor Sheila Powell.
Machias Woman Sentenced for Unlawfully Possessing FirearmRead the Press Release
BANGOR, Maine: A Machias woman was sentenced today in federal court for being an unlawful drug user in possession of a firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Suzanne Wilcox, 48, to time served (five months) and two years of supervised release. Wilcox pleaded guilty on February 16, 2022.
According to court records, in December 2021, Wilcox visited a Federal Firearms Licensee located in Calais and purchased a 9mm pistol. The following day, Wilcox was a passenger in a vehicle subjected to a lawful traffic stop in East Machias by Washington County Sheriff s Office personnel. While stopped roadside, Wilcox stated that she had the handgun in her purse and admitted to drug use. Wilcox was later found to be in possession of drug paraphernalia.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Washington County Sheriff’s Office investigated the case.
Project Safe Neighborhoods: Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Project Safe Neighborhoods is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories, and the program is customized to account for local violent crime problems and resources. Across all districts, Project Safe Neighborhoods follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Louis Coleman III Convicted by Federal Jury of Kidnapping Resulting in DeathRead the Press Release
BOSTON – Louis D. Coleman III was found guilty today by a federal jury of kidnapping and killing Jassy Correia.
Coleman, 35, of Providence, R.I., was convicted following a jury trial of the federal charge of kidnapping resulting in death. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for Sept. 22, 2022. Coleman was arrested and charged in March 2019 and was subsequently indicted by a federal grand jury in April 2019.
“Justice was done today in this courthouse,” said First Assistant United States Attorney Joshua S. Levy. “The victim in this case, Jassy Correia, was a vibrant young woman, a mother, a daughter, a sister and a friend. And the defendant, Louis Coleman, was a predator. He tricked Ms. Correia into believing he would give her a ride and instead he held her against her will, sexually assaulted her, murdered her and engaged in a massive cover up. Although this conviction cannot bring Ms. Correia back, today’s guilty verdict brings some measure of justice for her and her loving family who feel this devastating void every single day. This case is the result of incredibly collaborative law enforcement effort between local, state and federal agencies across three states – Massachusetts, Rhode Island, and Delaware. Thanks to their investigative work, the tireless efforts of the trial team and the bravery of Ms. Correia’s family and friends, Louis Coleman has been held accountable and will remain in prison for the rest of his life.”
“This crime was senseless and horrific, and there is no question today’s verdict is just. No excuse can justify the savagery committed by this man who will face life behind bars,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Together with the Boston and Providence Police Departments, the FBI worked tirelessly to seek justice for Jassy—a beloved mother, daughter, sister, and friend. The lasting impact and trauma this man has inflicted on her family can never be erased. Our hearts are with them today.”
In the early morning hours of Feb. 24, 2019, Ms. Correia, the victim, went out with friends to a nightclub in downtown Boston to celebrate her upcoming birthday. Just after 2 a.m., Ms. Correia became separated from her friends and tried to get a ride home from an Uber XL driver who was idling out front of the nightclub. The driver was waiting for a larger group and pushed Ms. Correia out of the car, and she stumbled onto the sidewalk. Seconds later, video surveillance captured Coleman approach the victim – who was alone, intoxicated, barefoot, and without a winter coat – and take both of her hands. Coleman offered Ms. Correia a ride back to her friend’s apartment.
After getting into the vehicle with Ms. Correia, video surveillance showed Coleman make a series of short turns before pulling over, just a few blocks from where he had originally parked, for approximately 12 minutes. Coleman then began driving south to his apartment in Providence.
Surveillance footage from Coleman’s Providence apartment building showed Coleman, at about 4:15 a.m. on Sunday, Feb. 24, 2019, parking and exiting the vehicle, and then returning a short time later carrying a blanket. He then walked from the car to the front of the building carrying the victim’s body slung over his shoulder. Once he entered the building, surveillance video showed Coleman dropping the victim on the floor and dragging her towards the elevator, and subsequently towards his apartment.
In the days that followed, Coleman visited two car washes and his internet search history reveled he Googled things such as “how to pull a tooth out that’s not loose;” “can a person fit inside a suitcase;” “buy dumpster;” “oil barrel;” “how to clean for embalming;” “turkey baster;” and “target sanitizing bleach.” In addition, Coleman purchased a $150 air purifier, three 12-lb bags of baking soda, duct tape, 50-gallon trash bags, personal protective equipment including full-body coveralls, an odor respirator, protective masks, safety goggles, a 600-lb rated dolly, three Tyvek suits and a large suitcase.
At 1:15 a.m., on Feb. 28, 2019, Coleman wheeled a suitcase containing the victim’s body out of his apartment and into the parking lot where his vehicle was parked. Coleman appeared to have difficulty lifting the suitcase into the trunk of his car, before driving away at 4 a.m.
On the afternoon of Feb. 28, 2019, Coleman’s vehicle was stopped by Delaware authorities on I-95 South near Wilmington, Del. Officers ordered Coleman out of the vehicle and asked him if anyone else was in the vehicle with him, to which Coleman said, “She’s in the trunk.”
Officers discovered the victim’s body in the trunk of Coleman’s vehicle, bound with duct tape and in the fetal position inside a sofa cushion cover, which was inside of a black trash bag, stuffed inside the suitcase Coleman was seen bringing into his apartment on Feb. 27, 2019. A duffle bag, a pair of new long-handled loppers, plastic garbage bags, clothing, a red plastic gas container, a green butane lighter, black gloves, charcoal air purifiers, air fresheners, tinted safety glasses, plastic Walmart bags, work towels, cloth work-gloves, a new set of DeWalt pliers, a laptop, the computer hard-drive/tower he used to conduct his Google searches and disinfectant wipes were also recovered in Coleman’s vehicle. Two large cracks in the windshield on the passenger side were found to contain both Coleman and Ms. Correia’s DNA.
The victim had significant bruising, a bloodied face, was bound with gray duct tape and was covered in baking soda. The medical examiner determined cause of death to be strangulation and found evidence consistent with a sexual assault.
The charge of kidnapping resulting in death provides for a sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
First Assistant U.S. Attorney Levy; FBI Boston SAC Bonavolonta; Boston Police Acting Commissioner Gregory Long; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Kevin Hayden; Colonel Melissa A. Zebley, Delaware State Police; and Colonel Hugh T. Clements Jr., Chief of Police, Providence Police Department made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of the Rhode Island Attorney General’s Office, the U.S. Attorney’s Office for the District of Delaware and the Massachusetts State Police. Assistant U.S. Attorneys Kenneth G. Shine, Robert Richardson and Elianna Nuzum of the Major Crimes Unit are prosecuting the case.
Leader of $9 Million Scheme to Defraud Prescription Drug Coupon Programs Sentenced to over 17 Years in Federal PrisonRead the Press Release
Miami, Florida – Today, William Clero, 45, a resident of Miami, Florida, was sentenced by U.S. District Judge K. Michael Moore to 210 months in prison. Clero had previously pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud stemming from his role as the leader in a $9 million scheme to defraud prescription drug cost-savings (coupon) programs offered by pharmaceutical manufacturers to reduce the cost of prescription drugs for consumers. Clero’s co-defendant, Cesar Armando Perez Amador, 52, a resident of Miami, Florida, was sentenced to 87 months in prison for his role in the scheme.
Beginning in 2014 through April 2021, Clero and Perez established numerous retail pharmacies in Miami-Dade County that purported to provide prescription drugs to individuals with private health insurance plans or without health insurance coverage. Clero and Perez conspired to defraud prescription drug coupon programs by causing the submission of false and fraudulent claims to those programs resulting in more than $9 million in payments. The government tied 21 pharmacies to the defendants’ scheme, which pharmacies existed only to transmit the false and fraudulent claims. The pharmacies did not have real customers or prescriptions and did not dispense medications.
To conceal their involvement in the scheme, Clero and Perez recruited nominee or “straw” owners for each pharmacy and listed them on corporate records, bank records, and other business documents. As part of the scheme, Clero and Perez transferred most of the proceeds of the scheme to shell companies they controlled and diverted large amounts of money for their personal use and benefit.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the sentences.
HSI Miami, El Dorado Task Force-South investigated the case. The prosecution was handled by Assistant U.S. Attorneys Aimee C. Jimenez and Ana Maria Martinez. Assistant U.S. Attorney Annika Miranda handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20112.
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Kentucky Man Sentenced for Conspiracy to Intrude Protected Computer System of Competitor BusinessRead the Press Release
MOBILE, AL – A Lexington, Kentucky man was sentenced today to two years of probation for conspiring to intrude into a competitor business’s protected computer system to steal information for his commercial advantage and financial gain.
According to court documents, Daniel Bruck LaCour, 33, operated a printing-services business called LaCour Printing Solutions, LLC (“LPS”) in Dothan, Alabama, from at least March 2016 to April 2017. One of LPS’s competitors was a printing-services company based in New York and Tennessee. The competitor printing company maintained a password-protected system of computers that contained its protected client account information.In March 2016, LaCour recruited a former employee of the competing printing company to work for him at LPS. On March 28, 2016, the former employee sent LaCour a set of login credentials to access the competing company’s protected computer system without the company’s consent, authorization, or knowledge. Those login credentials included the email address and password of a legitimate employee of the competing company whose account had elevated privileges that allowed it to access customer account profiles, including sensitive pricing information.
Over a year-long period, LaCour repeatedly used the stolen credentials from a computer at his house in Dothan to intrude into the competing company’s computer system. LaCour fraudulently accessed more than 30 customer accounts before the company cut off his access to the system after discovering his intrusion on April 4, 2017. During the period of the intrusion, the competing printing company lost business to LPS from numerous existing and potential clients due to LaCour’s unauthorized use of the other company’s sensitive pricing information.
Skype messages extracted from LaCour’s computer revealed how he obtained the login credentials and used them to steal the company’s information for LPS’s benefit. In one such message, LaCour stated, “I am trying to destroy [the victim company] . . . that’s my life long goal.”
Chief United States District Judge Emily C. Marks of the United States District Court for the Middle District of Alabama ordered LaCour to pay a $3,500 fine and to undergo mental health treatment while on probation, during which time he will be subject to credit restrictions. The court also ordered LaCour to pay $40,000 in victim restitution to the competing company and $100 in special assessments.
The Federal Bureau of Investigation investigated the case.Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Justice Department Concludes Oversight and Reform of Pennsylvania Alternative Education ProgramsRead the Press Release
The Department of Justice announced today that the Pennsylvania Department of Education (PDE) has fully implemented its settlement agreement with the United States to stop the unlawful placement of students with disabilities in PDE’s statewide system of alternative education programs, known as Alternative Education for Disruptive Youth (AEDY), and to ensure equal educational opportunities for English learner students in AEDY.
“No student should be excluded from the chance to learn because of a disability or language barrier,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this agreement, Pennsylvania has laid the groundwork for lasting change and advanced the crucial goal of educational equity for students with disabilities and English learner students. We commend state officials for working with the Department of Justice to ensure students with disabilities and English learners receive the legally required support they need to participate equally in schools.”
“Federal law does not allow schools to discipline students because of their disability, or to deprive them of an opportunity to learn English,” said U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “I commend PDE for abiding by the agreement and ensuring that students with disabilities and English learners are not prevented from learning opportunities afforded to other students.”
“Pennsylvania has taken substantial steps to ensure that children are not placed in an alternative disciplinary program simply because they have a disability,” said U.S. Attorney John Gurganus for the Middle District of Pennsylvania. “We congratulate the Commonwealth for implementing numerous changes to improve the education of children with disabilities and provide opportunities to English learners.”
“We recognize and appreciate that the Commonwealth of Pennsylvania has demonstrated a commitment to implement its settlement agreement by enacting reforms which ensure that all students have an equal opportunity to learn,” said U.S. Attorney Cindy Chung for the Western District of Pennsylvania.
The settlement agreement resolved a Justice Department investigation under Title II of the Americans with Disabilities Act, which prohibits state and local government entities, including public schools, from discriminating based on disability. The agreement also addressed noncompliance with the Equal Educational Opportunities Act of 1974, which prohibits a state from denying equal educational opportunity based on national origin by failing to take appropriate action to overcome language barriers faced by students.
The investigation was initiated following a complaint by the Education Law Center, and was conducted jointly by the Justice Department’s Civil Rights Division and all three U.S. Attorneys’ Offices in Pennsylvania.
Under the settlement agreement, PDE implemented new monitoring systems to help ensure that students are not placed in AEDY in a manner that discriminates based on disability; that they are not denied equal educational opportunities; and that students with disabilities are transferred back to their home schools in a timely manner. Specifically, actions required by the settlement agreement included:
- Investigating, and in some cases closing, AEDY programs based on complaints and other information about the mistreatment of students in those programs;
- Providing technical assistance to AEDY programs to implement evidence-based approaches to improve school climate;
- Developing new trainings for school district and AEDY program staff to ensure that students are not placed in AEDY for disability-related behaviors;
- Implementing evidence-based interventions to keep students in general education settings;
- Developing new data collection tools and analyses to monitor AEDY programs and school districts for disproportionate placement of students in AEDY based on disability; and
- Creating corrective action plans when appropriate.
PDE coordinated with the Pennsylvania Training and Technical Assistance Network, which provided important assistance in effectively implementing the agreement and to supporting students across Pennsylvania. PDE also implemented measures to ensure English learner students receive appropriate language assistance services in AEDY. After monitoring PDE’s compliance with the agreement, the United States determined that PDE was in substantial compliance. As a result, monitoring ended on May 31, 2022.
Protecting the rights of students with disabilities and English learners to inclusion and equal educational opportunities is a top priority of the Justice Department. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jury finds Canal Winchester man guilty on all counts in romance scam money laundering conspiracyRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted a Canal Winchester man of 35 counts of money laundering crimes related to an online romance fraud scheme.
The verdict was announced yesterday following a trial that began on May 16 before Chief U.S. District Judge Algenon L. Marbley.
According to court documents and trial testimony, Seth Nyamekye, 39, laundered the proceeds of online romance scams that generated millions of dollars of loss.
The perpetrators of the romance scams created several profiles on online dating sites and then contacted men and women throughout the United States and elsewhere. The scammers cultivated a sense of affection and, often, romance, with the victims they met online before requesting money for investment or need-based reasons. The romance scam perpetrators then provided victims with bank account information where the money should be sent. Nyamekye controlled one of these accounts and received more than $1.3 million in romance fraud proceeds from victims.
The government proved beyond a reasonable doubt at trial that Nyamekye laundered the victims’ money on behalf of the conspiracy. The defendant conspired with others from at least June 2016 until February 2018 to commit money laundering in multiple transactions of more than $10,000 with the purpose of concealing the fraudulent nature of the proceeds.
At least eight victims sent their money directly to Nyamekye’s bank account, which was in the name of Gloseth Ventures LLC. For example, one victim was defrauded by a purported member of the military and sent a $170,000 wire transfer to Nyamekye’s bank account. Another victim fell in love with a man he met online who also claimed to be in the military overseas and sent two wire transfers to Nyamekye totaling $73,000. A separate victim believed she was engaged to the man who was scamming her and sent $50,000 to the defendant’s bank account.
After the funds were deposited into Nyamekye’s bank account, Nyamekye took a cut of the victims’ money and then conducted financial transactions to move the funds where the perpetrators of the romance fraud could enjoy the criminal proceeds.
Nyamekye was charged by a criminal complaint in October 2020 and was later indicted in May 2021. He faces up to 20 years in prison on each of 18 counts, and up to 10 years in prison on each of 17 other counts.
“If you believe you are the victim of an online romance scam, I urge you to file a complaint at ic3.gov,” said U.S. Attorney Kenneth L. Parker.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the verdict. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
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Independence Man Arrested in Home Invasion Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man who was arrested when he was engaged in a home invasion robbery was indicted by a federal grand jury today for illegally possessing a firearm.
Theodore Watkins Jr., 31, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed on May 13.
According to an affidavit filed in support of the original criminal complaint, Independence police officers were called to a residence at 11:25 a.m. on May 12 by a neighbor who reported that he saw Watkins push his way into the residence of an elderly woman. The caller said they thought they observed something in the man’s hand when he forced entry.
Officers arrived at the residence and established a perimeter. A SWAT unit and hostage negotiators also arrived, and after making announcements on the loudspeaker, the victim came out of the residence through the front door. A short time later, Watkins came out of the residence and was taken into custody.
The victim, whom the affidavit says was visibly shaken and had bruising on her right arm, told investigators that Watkins originally came to her door and offered to mow her lawn. He came back a few minutes later, she said, and forced the door open, forcing his way into the residence. Watkins pointed a loaded Sig Sauer 9mm handgun at her and said, “Where’s the money?”
Watkins dumped out her purse and took the money from it, the affidavit says, then began going through her dresser drawers, closets, and other areas of the house. He used her cordless phone and her cell phone to make calls, including a call to his wife. When police arrived, the affidavit says, Watkins hid his gun in a furnace return air vent in the bedroom. Police officers found the firearm when they searched the house.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Watkins has two prior felony convictions for robbery, two prior felony convictions for burglary, two prior felony convictions for armed criminal action, and prior felony convictions for drug trafficking, kidnapping, and being a felon in possession of a firearm.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Independence, Mo., Police Department.
Project Safe Neighborhoods
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.
Houston area unlicensed cryptocurrency business results in convictionRead the Press Release
HOUSTON – A 49-year-old out-of-state man has pleaded guilty to running an unlicensed money transmitting business, announced U.S. Attorney Jennifer B. Lowery.
Hien Ngoc Vo, Seattle, Washington, admitted that between March 16, 2016, and June 8, 2016, he operated a prohibited cryptocurrency business in the Houston area.
Vo used Paxful and LocalBitcoins to buy and sell Bitcoin - websites where people can buy and sell cryptocurrencies. He profited from sales by collecting a percentage of the transactions which ranged from 5-30%. During the transactions, Vo did not ask clients for any form of identification nor the purpose for which they were purchasing the cryptocurrency.
Vo received funds in the form of cash, direct bank deposits, American Express credit cards as well as Amazon and generic gift cards. He used several bank accounts to conduct his business, but the banks shut down the accounts after inquiring about the origination of the funds.
During the course of three months, the unlicensed money transmitting business received and transmitted approximately $515,147.19 in Bitcoin.
Chief U.S. District Judge Lee H. Rosenthal will impose sentencing Sept. 5. At that time, Vo faces up to five years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Healthkeeperz, Inc. to Pay $2.1 Million to Resolve False Claims Act AllegationsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Pembroke, North Carolina based behavioral healthcare provider, Healthkeeperz, Inc. (Healthkeeperz), has agreed to resolve allegations that the company violated the False Claims Act by billing claims to Medicaid programs that were not reimbursable under the applicable North Carolina Medical Clinical Coverage Policy. Healthkeeperz has agreed to pay $2.1 million to resolve the allegations.
Healthkeeperz provides case management services for Medicaid beneficiaries under the North Carolina Medicaid Community Alternatives Program for Disabled Adults (CAP/DA). The settlement resolves allegations that from January 1, 2016, through October 31, 2019, Healthkeeperz submitted reimbursement claims to North Carolina Medicaid and received payment based on those claims for services that were not covered by Medicaid.
“Taxpayer-funded programs like Medicaid exist to provide critical services to beneficiaries in need of care, not to fill the coffers of healthcare providers,” said U.S. Attorney King. “When providers seek to divert resources from those who really need them, we will work with our state partners and use all tools at our disposal to pursue and hold accountable entities who perpetrate fraud on federal healthcare programs.”
“Protecting taxpayer resources requires strong partnership between the states and the federal government,” said North Carolina Attorney General Josh Stein. “I appreciate U.S. Attorney King’s partnership. When we work together, we can hold accountable health care providers who break the law.”
The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act and the North Carolina False Claims Act. Under the False Claims Acts, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act also allows the government to intervene and take over the action. The government conducted the investigation and intervened in this action to effectuate the settlement.
The settlement is a result of a coordinated effort between the Department of Health and Human Services Office of the Inspector General, the North Carolina Attorney General’s Medicaid Investigations Division, and the United States Attorney’s Office for the Western District of North Carolina.
The lawsuit resolved by this settlement is United States and the State of North Carolina ex rel. Ginger L. Hill v. Healthkeeperz, Inc. (1:20CV32). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Harrisburg Man Sentenced to 24 Months’ Imprisonment for Unlawfully Exchanging $1.8 Million in Federal Nutrition Assistance Benefits for CashRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jimmy Tran, age 41, of Harrisburg, Pennsylvania, was sentenced today to 24 months’ imprisonment by United States District Court Judge Sylvia H. Rambo for the unauthorized use, acquisition, and possession of benefits of the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP).
According to United States Attorney John C. Gurganus, Tran previously admitted that while owning and operating Asia Market in Harrisburg, he unlawfully provided cash in exchange for SNAP benefits. The scheme ran between January 2017 and August 2020. Tran redeemed $1,843,534 in improper benefits, and he was ordered to pay restitution in that amount.
The case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Hammond Tax Preparer Pleads Guilty to Filing False IRS Returns, Making False Statements to IRS and Department of EducationRead the Press Release
NEW ORLEANS – KENISHA R. CALLAHAN, age 44, and a resident of Ponchatoula, Louisiana, pleaded guilty today before U.S. District Court Judge Ivan L.R. Lemelle to one count of filing a false tax return, one count of aiding and assisting in the preparation of a false tax return and one count of making a false statement to the Department of Education, announced U.S. Attorney Duane A. Evans.
According to court records, Count One alleges that CALLAHAN, the owner of Callahan Tax Service, prepared and filed a false 2015 U.S. Individual Tax Return Form 1040, wherein she underreported her earned income for the alleged time. Count Two charges that in 2015, CALLAHAN aided in the preparation and filing of a client’s tax return that falsely stated to the IRS that the client owned a business and that the client had a business loss for the 2014 tax year. Count Three alleges that CALLAHAN committed financial aid fraud by falsely reporting the amount of income that she earned in 2015 to the Department of Education while applying for student loan forgiveness.
Sentencing will be on September 7, 2022, at which time CALLAHAN faces a maximum sentence of three years, up to one year of supervised release, and up to a $100,000 fine per tax count. The Department of Education count calls for a maximum sentence of five years, up to three years of supervised release, and up to a $250,000 fine. For each count, there is also a mandatory $100 special assessment fee.
U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation and the Department of Education for their handling of the matter. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
Gunman Sentenced to 20 Years for Shooting Port Arthur Man During CarjackingRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Charles Robert Knatt, 20, pleaded guilty on August 11, 2021, to carjacking and use of a firearm during a crime of violence and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, on March 15, 2021, law enforcement officers responded to a carjacking and shooting in Port Arthur where they found a man shot in the arm at his residence. The victim told officers that as he walked out of his house to go to work, he was approached by an unknown male - later identified as Charles Knatt - who was armed with a gun. Knatt forced the victim to his knees and pointed a pistol at the victim’s head demanding money and the keys to his truck. When the victim gave Knatt his keys and wallet, Knatt got in the victim’s truck and backed out of the driveway. The victim attempted to run inside his house, however his front door was locked and he could not get in due to Knatt stealing his keys. The victim began to franticly ring his doorbell and beat on the door in order to wake his wife and get inside the house, at which point Knatt exited the truck and fired several shots at the victim, striking him one time in the arm. Security cameras at the victim’s home captured the carjacking and shooting on video. Three days later, Knatt turned himself in to police after seeing news reports about the carjacking and shooting. Knatt admitted to law enforcement that he stole the victim’s truck and shot him. Knatt was indicted by a federal grand jury on May 6, 2021.
“Make no mistake about it, there are predators out there like this guy,” said U.S. Attorney Brit Featherston. “The Port Arthur Police and ATF have joined forces to stop violent offenders and we will pursue each one until they are in jail.”
“Working with our local, state, and federal partners is the most effective way to combat violent crime,” said ATF Special Agent in Charge Fred Milanowski. “This case sends a very clear message to those using firearms in crime and creating a threat to the public that law enforcement will work together at every level to keep the public safe.”
“I would like to thank United States Attorney Brit Featherston and his staff, Beaumont ATF, the dedicated women and men of the Port Arthur Police Department and citizens of Port Arthur for collectively bring this case to a successful conclusion,” said Port Arthur Police Chief Tim Duriso. “Hopefully, the conclusion of this senseless and violent crime gives the victim and his family closure, and assures the public, law enforcement is working diligently to ensure their safety.”
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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