Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 1 June 2022
Gonzales Man Pleads Guilty to Federal Drug ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that KEITH JENKINS, age 35, of Gonzales, pled guilty as charged on May 31, 2022 to a two count indictment, that charged him with participating in a conspiracy to distribute five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code Sections 841(a)(1), (b)(1)(A), and 846 and the possession with the intent to distribute 500 grams or more of cocaine hydrochloride, in violation of Title 21, United States Code Sections 841(a)(1) and (b)(1)(B).
JENKINS will be sentenced on August 30, 2022 and will face a sentence of ten (10) years up to life in prison, a fine of not more than $10,000,000.00, at least five (5) years of supervised release and a $100 mandatory special assessment fee on the conspiracy charge and from five (5) up to forty (40) years in prison, a fine of not more than $5,000,000.00, at least four (4) years of supervised release, and a $100 mandatory special assessment fee for the possession with the intent to distribute charge.
This case was investigated by members of the United States Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr.
Gillette Man Sentenced to Federal Prison and Ordered to Pay over $200,000 in Restitution for Wire Fraud and Tax ViolationsRead the Press Release
United States Attorney Bob Murray announced today that DAVID A. JACKSON, a/k/a GERALD DAVID JACKSON, a/k/a GERALD D. RODERICK-JACKSON, age 37 of Gillette, Wyoming, was sentenced for violations of wire fraud, willful failure to collect or pay over tax, and filing a false tax return. He appeared for a sentencing hearing before United States District Court Judge Nancy D. Freudenthal on May 24, 2022. Jackson received 46 months’ imprisonment for wire fraud and willful failure to collect or pay over tax to the IRS, respectively, with three years of supervised release. As to the offense of filing a false tax return, he received 36 months’ imprisonment with one year of supervised release. The sentences will be served concurrently. Jackson was also ordered to pay $203,251 in restitution and a $300 special assessment.
From October 2017 to April 2019, Jackson worked as the officer manager for a Gillette-based company. Part of Jackson’s duties included handling all financial aspects of his employer’s businesses, including collecting, accounting for and paying over trust fund taxes to the IRS on behalf of his employer. Jackson also owned and operated a taxi business in Gillette and Casper under the names: Need A Ride Transportation, All Star Transportation, and WYRide LLC. From February 2018 to April 2019, Jackson committed wire fraud by embezzling money from his employer, diverting money from the employer’s bank account and misusing a company credit card for his own personal expenditures, to include expenses associated with his taxi business. As part of his scheme to defraud his employer, Jackson also failed to account for and pay over to the IRS the employer’s trust fund taxes, instead diverting those funds for his own personal use, to include paying expenses associated with his taxi business. In January 2019, Jackson filed a 2018 individual income tax return with the IRS in which he failed to report $136,008 in income from several sources, namely, the monies he embezzled from his employer and other income he earned that year.
“Jackson took advantage of his position and the relationship he cultivated with his employer for his own purposes,” said United States Attorney Bob Murray. “Thanks to our partnership with IRS Criminal Investigations and the Gillette Police Department, he will have almost four years in federal prison to reflect on his actions. Let this sentence serve as a warning to others who might be tempted to abuse their position for personal gain.”
“Jackson was aware of his responsibilities and the duties he was trusted to perform, and instead he chose to embezzle funds from his employer and hide money from the IRS,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “Today’s sentencing sends a clear message that these crimes will not go unpunished. Our special agents along with our law enforcement partners will continue to track down individuals who act with a blatant disregard for the law and use the proceeds for their own personal benefit.”
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Gillette Police Department. Assistant United States Attorney Margaret M. Vierbuchen is prosecuting the case.
Case No. 21-cr-00087-NDF
Fort Wayne Man Sentenced to 156 Months in PrisonRead the Press Release
FORT WAYNE- Austin L. Williams, age 33, of Fort Wayne, was sentenced by United States District Court Judge Holly A. Brady, on his plea of guilty to possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Williams was sentenced to 156 months in prison followed by 4 years of supervised release.
According to documents in this case, in July 2021, following a tip, Williams was observed by law enforcement along with multiple individuals coming and going from his apartment. In that same time period, a controlled buy of methamphetamine from Williams took place, and a handgun was observed in his proximity. In August 2021, Williams reportedly pulled a handgun during an altercation. When police arrived, they stopped Williams who had a loaded 9mm handgun under the passenger seat of his car and over 6 grams of methamphetamine on his person. Williams criminal history revealed he had a prior felony conviction for burglary. This conviction prohibited him from possessing a firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Fort Wayne police Department. This case was prosecuted by Assistant United States Attorney Brent Ecenbarger.
Former U.S. Postal Service worker sentenced for stealing gift cards from mailRead the Press Release
MISSOULA – A former U.S. Postal Service employee who admitted to stealing gift cards from the mail was sentenced today to two years of probation and ordered to pay $440 restitution, U.S. Attorney Leif M. Johnson said.
Lassana Diaby, 54, pleaded guilty in January to an indictment charging him with theft of mail by officer or employee, a felony.
U.S. District Judge Dana L. Christensen presided. Judge Christensen followed recommendations in a plea agreement and imposed a probationary sentence.
In court documents, the government alleged that on March 26, 2021, a U.S. Postal Service customer reported items were stolen from a birthday card that was sent to his locking mailbox in Missoula. The sender confirmed that she mailed the card on March 20, 2021 from Whitefish and that it contained a $200 gift card to Costco, two $100 gift cards to Amazon and $40 cash. An investigation determined that Diaby presented his Costco membership card and the gift card to complete a purchase at the Costco in Missoula. At the time, Diaby worked for the U.S. Postal Service as a mail processing clerk and completed night shifts on March 20 to 23, including working several hours in the manual letter sorting section.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the U.S. Postal Service Office of Inspector General.
XXX
Former U.S. Marine Angel Dominguez Ramirez Jr. Sentenced for Leading International Cocaine Distribution OrganizationRead the Press Release
Assistant U. S. Attorney Kyle Martin (619) 546-7726
NEWS RELEASE SUMMARY – June 1, 2022
SAN DIEGO – Angel Dominguez Ramirez Jr., a former U.S. Marine with dual U.S. and Mexican citizenship, was sentenced in federal court to 195 months in prison for leading an international organization that transported ton-quantities of cocaine from South America to Mexico and into the United States.
Dominguez had previously entered a guilty plea to International Conspiracy to Distribute Cocaine and Money Laundering Conspiracy. In pronouncing sentence yesterday, U.S. District Judge William Q. Hayes noted the “staggering” amount of cocaine that Dominguez smuggled.
According to a court document, the organization Dominguez headed called itself El Seguimiento 39, El Seg 39, or simply “The Company.” According to the same document, Dominguez built his organization through cooperative alliances with the Beltran Leyva Organization (BLO), the Cartel de Jalisco Nueva Generacion (CJNG), the Sinaloa Cartel, the Cartel del Golfo (CDG), and Los Zetas.
Other publicly filed documents note that El Seg 39 also used its contacts with corrupt high-level Mexican officials to thwart investigations into its drug trafficking activities. As noted in court documents, agents from Homeland Security Investigations (HSI) estimate that at its height El Seg 39 used these alliances to smuggle approximately 10 tons of cocaine into the United States each month and move at least $10 million dollars of drug proceeds back into Mexico monthly.
“Today’s sentence sends a message that the leaders of even the most powerful criminal organizations will be held accountable,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, Homeland Security Investigations, the Drug Enforcement Administration, and Customs and Border Protection for their excellent work on this case.
“Today’s sentencing of Dominguez is a strong example of HSI’s ongoing efforts to target and dismantle the most significant drug trafficking organizations in the world, whose multi-billion dollar criminal networks funnel drugs onto our streets and spread violence into our communities,” said Chad Plantz, Special Agent in Charge of HSI San Diego. “We will continue to work together with our law enforcement partners in Mexico to root out the leaders of these insidious cartels, wherever they may be found, and bring them to justice.”
“This case is a perfect example of how DEA and our law enforcement partners work together to dismantle criminal organizations,” said DEA Special Agent in Charge Shelly S. Howe.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
DEFENDANT Case Number: 19CR1996-WQH
Angel Dominguez Ramirez Age: 50 Tamaulipas, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine and 5 years supervised release.
Conspiracy to Launder Monetary Instruments, in violation of Title 21 U.S.C. §§ 1956(a)(2)(B)(i). Term of custody of up to 10 years, $500,000 fine.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection
Department of Justice, Organized Crime Drug Enforcement Task Force
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Former McKees Rocks Resident Pleads Guilty to Drug ChargesRead the Press Release
PITTSBURGH, PA - A former Allegheny County resident has been sentenced in federal court to 54 months’ imprisonment and 3 years of federal supervised release on his conviction for violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Robert J. Colville imposed the sentence on Nehemiah Fisher-Egleston, 28, formerly of McKees Rocks, PA, following his guilty plea to conspiracy to distribute a quantity of heroin, fentanyl, and fluorofentanyl (an analogue of fentanyl) – all of which are scheduled controlled substances under federal law – which occurred from in and around September 2021 and continued through in and around February 2022 in the Western District of Pennsylvania.
According to information presented to the court, agents with the Federal Bureau of Investigation’s Greater Pittsburgh Safe Streets Task Force investigated drug trafficking activity in Pittsburgh’s Northside neighborhood (and elsewhere), and beginning in September 2021, as part of that investigation, agents began intercepting the wire and electronic communications of telephones used by codefendants charged in the same indictment as Fisher-Egleston. Through those intercepted communications and other investigative methods, the Government would have proven that codefendants obtained “bricks” (a slang term used to describe 50 individual dosage units containing substances such as heroin, fentanyl, and analogues of fentanyl) which were distributed to Fisher-Egleston. In intercepted communications with other codefendants, Fisher-Egleston expressed his intention to redistribute the “bricks” of heroin, etc., to various individuals in Washington, Pennsylvania. By pleading guilty, Fisher-Egleston admitted to conspiring with other named codefendants to distribute scheduled controlled substances like heroin, fentanyl, and fluorofentanyl.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pittsburgh Bureau of Police, which led the multi-agency investigation that also included the Allegheny County Sheriff’s Office, the Allegheny County Probation and Parole Office, the Pennsylvania Office of the Attorney General, the Monroeville Police Department, and Ligonier Township Police Department. The prosecution of Fisher-Egleston was a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former McKees Rocks Gets Prison for Drug Law ViolationsRead the Press Release
PITTSBURGH, PA - A former Allegheny County resident has been sentenced in federal court to 54 months’ imprisonment and 3 years of federal supervised release on his conviction for violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Robert J. Colville imposed the sentence on Nehemiah Fisher-Egleston, 28, formerly of McKees Rocks, PA, following his guilty plea to conspiracy to distribute a quantity of heroin, fentanyl, and fluorofentanyl (an analogue of fentanyl) – all of which are scheduled controlled substances under federal law – which occurred from in and around September 2021 and continued through in and around February 2022 in the Western District of Pennsylvania.
According to information presented to the court, agents with the Federal Bureau of Investigation’s Greater Pittsburgh Safe Streets Task Force investigated drug trafficking activity in Pittsburgh’s Northside neighborhood (and elsewhere), and beginning in September 2021, as part of that investigation, agents began intercepting the wire and electronic communications of telephones used by codefendants charged in the same indictment as Fisher-Egleston. Through those intercepted communications and other investigative methods, the Government would have proven that codefendants obtained “bricks” (a slang term used to describe 50 individual dosage units containing substances such as heroin, fentanyl, and analogues of fentanyl) which were distributed to Fisher-Egleston. In intercepted communications with other codefendants, Fisher-Egleston expressed his intention to redistribute the “bricks” of heroin, etc., to various individuals in Washington, Pennsylvania. By pleading guilty, Fisher-Egleston admitted to conspiring with other named codefendants to distribute scheduled controlled substances like heroin, fentanyl, and fluorofentanyl.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pittsburgh Bureau of Police, which led the multi-agency investigation that also included the Allegheny County Sheriff’s Office, the Allegheny County Probation and Parole Office, the Pennsylvania Office of the Attorney General, the Monroeville Police Department, and Ligonier Township Police Department. The prosecution of Fisher-Egleston was a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Malden Firefighter Charged with Possession and Distribution of Controlled SubstancesRead the Press Release
BOSTON – A former Malden firefighter has been charged and has agreed to plead guilty in connection with conspiring to distribute controlled substances including oxycodone, suboxone, Klonopin and Adderall.
Joshua Eisnor, 43, of North Reading, was charged by an Information with conspiracy to distribute and to possess with intent to distribute controlled substances. Eisnor is scheduled to plead guilty on June 23, 2022.
According to the charging document, while working as a firefighter at the Malden Fire Department, Eisnor distributed controlled substances to other members of the Malden Fire Department.
Sentences in a criminal case 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. The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to a $500,000.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian McClune, Acting Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Special assistance was provided by the Merrimack Valley Transnational Organized Crime Task Force. Assistant U.S. Attorneys Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, and Howard Locker, of Rollins’ Health Care Fraud Unit, are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Louisville, Kentucky Department of Corrections Officer Charged with Using Excessive ForceRead the Press Release
Darrell Taylor, 32, was indicted today by a federal grand jury in Louisville, Kentucky, for using unlawful force against a pretrial detainee while Taylor was an officer at the Louisville Metro Department of Corrections. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky and Special Agent in Charge Jodi Cohen for the FBI Louisville Field Office made the announcement.
Today’s indictment charges Taylor with one count of deprivation of rights under color of law. The indictment alleges that Taylor used unreasonable force when he assaulted pretrial detainee B.R., resulting in bodily injury to B.R., including a broken jaw.
The charge carries a maximum penalty of 10 years of imprisonment.
This case was investigated by the FBI Louisville Field Office, and is being prosecuted by Assistant U.S. Attorney Amanda Gregory for the Western District of Kentucky, and Special Litigation Counsel Sam Trepel and Trial Attorney Andrew Manns of the Justice Department’s Civil Rights Division.
An indictment is merely an allegation and the defendant is presumed innocent unless proven guilty.
Former Louisville Kentucky Department of Corrections Officer Charged with Using Excessive ForceRead the Press Release
WASHINGTON – Darrell Taylor, 32, was indicted today by a federal grand jury in Louisville, Kentucky, for using unlawful force against a pretrial detainee while Taylor was an officer at the Louisville Metro Department of Corrections. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
Today’s indictment charges Taylor with one count of deprivation of rights under color of law. The indictment alleges that Taylor used unreasonable force when he assaulted pretrial detainee B.R., resulting in bodily injury to B.R., including a broken jaw.
The charge carries a maximum penalty of 10 years of imprisonment.
This case was investigated by the FBI Louisville Field Office, and is being prosecuted by Assistant U.S. Attorney Amanda Gregory, and Special Litigation Counsel Sam Trepel and Trial Attorney Andrew Manns of the Justice Department’s Civil Rights Division.
An indictment is merely an allegation and the defendant is presumed innocent unless proven guilty.
# # #
22-583
Former Employee of NFT Marketplace Charged in First Ever Digital Asset Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging NATHANIEL CHASTAIN, a former product manager at Ozone Networks, Inc. d/b/a OpenSea (“OpenSea”), with wire fraud and money laundering in connection with a scheme to commit insider trading in Non-Fungible Tokens, or “NFTs,” by using confidential information about what NFTs were going to be featured on OpenSea’s homepage for his personal financial gain. CHASTAIN was arrested this morning in New York, New York and will be presented today in the United States District Court for the Southern District of New York.
U.S. Attorney Damian Williams said: “NFTs might be new, but this type of criminal scheme is not. As alleged, Nathaniel Chastain betrayed OpenSea by using its confidential business information to make money for himself. Today’s charges demonstrate the commitment of this Office to stamping out insider trading – whether it occurs on the stock market or the blockchain.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “In this case, as alleged, Chastain launched an age-old scheme to commit insider trading by using his knowledge of confidential information to purchase dozens of NFTs in advance of them being featured on OpenSea’s homepage. With the emergence of any new investment tool, such as blockchain supported non-fungible tokens, there are those who will exploit vulnerabilities for their own gain. The FBI will continue to aggressively pursue actors who choose to manipulate the market in this way.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
This case concerns insider trading in NFTs on OpenSea, the largest online marketplace for the purchase and sale of NFTs. In violation of the duties of trust and confidence he owed to his employer, OpenSea, CHASTAIN exploited his advanced knowledge of what NFTs would be featured on OpenSea’s homepage for his personal financial gain.
As part of his employment, CHASTAIN was responsible for selecting NFTs to be featured on OpenSea’s homepage. OpenSea kept confidential the identity of featured NFTs until they appeared on its homepage. After an NFT was featured on OpenSea’s homepage, the price buyers were willing to pay for that NFT, and for other NFTs made by the same NFT creator, typically increased substantially.
From at least in or about June 2021 to at least in or about September 2021, CHASTAIN used OpenSea’s confidential business information about what NFTs were going to be featured on its homepage to secretly purchase dozens of NFTs shortly before they were featured. After those NFTs were featured on OpenSea, CHASTAIN sold them at profits of two- to five-times his initial purchase price. To conceal the fraud, CHASTAIN conducted these purchases and sales using anonymous digital currency wallets and anonymous accounts on OpenSea.
* * *
CHASTAIN, 31, of New York, New York is charged with one count of wire fraud and one count of money laundering, each of which carries a maximum sentence of 20 years 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 a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the National Cryptocurrency Enforcement Team for their assistance in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Thomas S. Burnett and Nicolas Roos are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Congressional Candidate Pleads Guilty to Wire Fraud and Falsification of RecordsRead the Press Release
A former Congressional candidate pleaded guilty today for using COVID-19 relief funds for personal expenditures and for falsifying records to conceal thousands of dollars of in-kind contributions by employees in a report to the Federal Elections Commission (FEC).
According to court documents, in 2020, Nicholas Jones, 36, of Boise, Idaho, a small business owner, applied for and received COVID-19 relief funds, including through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), totaling $753,600. Despite certifying that these funds would only be used for business-related expenditures, Jones used a significant portion of the funds for personal expenses, including car payments, life insurance policies, and political advertisements.
In 2020, Jones ran as a candidate for the U.S. House of Representatives. Jones told employees of his small business that they could continue to be paid their normal wages if they worked on his congressional campaign. Employees reported to work on behalf of Jones’s congressional campaign and were paid thousands of dollars in wages through Jones’s small business including, in part, with funds Jones had received as part of a PPP loan. After losing the primary election, Jones caused his campaign committee to file a campaign finance report with the FEC, which omitted any in-kind contributions from any entity or individual other than Jones, including the thousands of dollars of in-kind contributions to his campaign in the form of employee time and work.
Jones pleaded guilty in the U.S. District Court of Idaho to wire fraud and falsification of records. Jones will be sentenced at a later date. Jones faces a maximum total penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Rafael M. Gonzalez, Jr., for the District of Idaho; and Special Agent in Charge Dennis Rice of the FBI’s Salt Lake City Field Office made the announcement.
The FBI is investigating the case.
Trial Attorneys Rosaleen O’Gara and Nicole Lockhart of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Josh Hurwit of the U.S. Attorney’s Office for the District of Idaho are prosecuting the case.
Former Brookfield Business Owner Sentenced to Federal Prison for Tax OffenseRead the Press Release
United States Attorney Richard G. Frohling announced that on May 27, 2022, United States District Judge J.P. Stadtmueller sentenced Kimberly Zulkowski (age: 43) to 15 months’ imprisonment, followed by three years of supervised release, for her willful failure to account for and pay over taxes owed to the Internal Revenue Service (IRS). Zulkowski was also ordered to pay $731,970 in restitution and a $100 special assessment.
According to court records, Zulkowski founded and managed Faith Family Services, Inc., a personal care business based in Brookfield, Wisconsin. Her business was successful, with gross annual receipts exceeding $5 million and over 150 employees. Despite that success, Zulkowski refused to tender monies she had withheld from her employees’ wages as part of her company’s payroll tax obligations.
Court records reveal that although the IRS had warned Zulkowski in 2015 that she was violating the federal tax laws, she nevertheless persisted in her criminal conduct for nearly two more years. Zukowski ultimately pled guilty to a willful violation of the tax laws in February 2020.
When imposing sentence, Judge Stadtmueller emphasized that our tax system relies upon voluntary compliance, such that defendants who willfully flout the tax laws must be sentenced in a fashion that encourages compliance.
“Individuals and businesses who cheat on their taxes not only undermine the government’s ability to fund vital and necessary programs but also effectively steal from their fellow citizens,” said U.S. Attorney Frohling. “The U.S. Attorney’s Office remains committed to working with IRS-Criminal Investigation and our other federal, state, and local partners to investigate and prosecute individuals who engage in these types of tax-related offenses.”
"Failure to pay over employment taxes taken from employee wages is a serious criminal offense,” said Justin Campbell, Special Agent in Charge, IRS Criminal Investigation Chicago Field Office. “It not only harms the employee’s future Social Security and Medicare benefits, it’s also stealing from honest taxpayers and the United States Treasury. IRS Criminal Investigation will continue to track down those who collect these taxes and use the funds for personal gain."
This matter was investigated by the Internal Revenue Service-Criminal Investigations and was prosecuted by Assistant United States Attorneys Kevin Knight and Kate Biebel.
# # #
For Additional Information Contact:
Public Information Officer [email protected]
414-297-1700
Follow us on Twitter
Former Augusta man sentenced to prison for multi-million-dollar scheme to defraud a mortgage lenderRead the Press Release
AUGUSTA, GA: A former Richmond County man has been sentenced to federal prison for bank and bankruptcy fraud related to his purchase of an Augusta apartment complex.
Jerome Walter Kiggundu, 38, now a resident of Commerce City, Colo., was sentenced to 48 months in prison after his conviction in a jury trial in December 2021 on charges of Bank Fraud, Bankruptcy Fraud, and False Statements Under Oath, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also fined Kiggundu $2,500 and ordered him to serve three years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Financial fraud costs everyone – not just the institutions who are the immediate victims, but everyone who participates in the free market and sees their costs increase to make up what fraudsters steal,” said U.S. Attorney Estes. “Jerome Kiggundu’s sentence should send an unmistakable message that our office and our law enforcement partners will relentlessly pursue such criminals and hold them accountable.”
As described in court documents and testimony, Kiggundu was the registered agent and managing member of Nakaddu LLC, a/k/a Kiggun Properties LLC, and borrowed $2,831,250 from a mortgage lender in March 2019 by submitting fraudulent bank statements to falsely claim that his company had an average monthly operating balance of approximately $100,000. During this period, his account actually had an average balance of approximately $500. Kiggundu also submitted a false personal financial statement overstating his net worth and assets to qualify for the loan, which he used to refinance an 80-unit apartment complex that the company owned at 405 Hale St., in Augusta.
When the scheme started to unravel, Kiggundu filed for bankruptcy protection under Chapter 11 to avoid foreclosure by the lender. Kiggundu then submitted another set of fake bank statements in his bankruptcy proceedings to conceal his bank fraud, and lied under oath about his finances when questioned by employees of the United States Trustee Program who suspected this fraud.
“Kiggundu’s extensive fraud scheme was motivated purely by personal greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence serves as a warning to others that the FBI will not let such lies go unchecked.”
The case was investigated by the FBI with assistance from the United States Trustees Program, and prosecuted for the United States by Assistant U.S. Attorneys Patrick J. Schwedler and Jennifer A. Stanley.
Florida Woman Pleads Guilty to Participating in Nationwide Tax Fraud SchemeRead the Press Release
A Florida woman pleaded guilty today to filing a false tax return with the IRS, whereby she obtained a refund she was not entitled to receive.
According to court documents and statements made in court, Rebecca Cyphers, 65, of Winter Springs, participated in and helped facilitate a nationwide tax fraud scheme. As part of the scheme, individuals prepared and assisted in the filing of tax returns for scheme participants, such as Cyphers, falsely claiming banks and other financial institutions had withheld large amounts of income tax from the participants that entitled them to a refund. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals.
As part of her plea, Cyphers admitted she filed a false 2013 amended income tax return claiming a refund she was not entitled to receive. As a result, the IRS issued her a refund of approximately $240,000. Cyphers then obstructed the IRS’s efforts to recover this ill-gotten refund by transferring funds into a trust, making a large cash withdrawal from the refund deposit and sending frivolous correspondence to the IRS. Cyphers also admitted to helping others promote the tax fraud scheme and recruit additional participants, even though she knew the scheme was illegal.
In March, the main promoter of the fraud scheme, Iran Backstrom, was sentenced to more than eight years in prison, and Backstrom’s second-in-command, Mehef Bey, was sentenced to 11 years in prison. Another individual, Aaron Aqueron, was sentenced to 51 months in prison for recruiting clients to the scheme and providing information to another co-conspirator for use in the preparation of false tax returns.
Cyphers is scheduled to be sentenced on Aug. 24 and faces a maximum penalty of three years in prison for filing a false tax return. She also faces a period of supervised release, monetary penalties and restitution. 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 Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Isaiah Boyd III of the Tax Division and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida are prosecuting the case.
Florida Woman Pleads Guilty to Participating in Nationwide Tax Fraud SchemeRead the Press Release
Orlando, FL – A Florida woman pleaded guilty today to filing a false tax return with the IRS, whereby she obtained a refund she was not entitled to receive.
According to court documents and statements made in court, Rebecca Cyphers, 65, of Winter Springs, participated in and helped facilitate a nationwide tax fraud scheme. As part of the scheme, individuals prepared and assisted in the filing of tax returns for scheme participants, such as Cyphers, falsely claiming banks and other financial institutions had withheld large amounts of income tax from the participants that entitled them to a refund. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals.
As part of her plea, Cyphers admitted she filed a false 2013 amended income tax return claiming a refund she was not entitled to receive. As a result, the IRS issued her a refund of approximately $240,000. Cyphers then obstructed the IRS’s efforts to recover this ill-gotten refund by transferring funds into a trust, making a large cash withdrawal from the refund deposit and sending frivolous correspondence to the IRS. Cyphers also admitted to helping others promote the tax fraud scheme and recruit additional participants, even though she knew the scheme was illegal.
In March, the main promoter of the fraud scheme, Iran Backstrom, was sentenced to more than eight years in prison, and Backstrom’s second-in-command, Mehef Bey, was sentenced to 11 years in prison. Another individual, Aaron Aqueron, was sentenced to 51 months in prison for recruiting clients to the scheme and providing information to another co-conspirator for use in the preparation of false tax returns.
Cyphers is scheduled to be sentenced on Aug. 24 and faces a maximum penalty of three years in prison for filing a false tax return. She also faces a period of supervised release, monetary penalties and restitution. 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 Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Isaiah Boyd III of the Tax Division and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida are prosecuting the case.
Fleeing Felon Sentenced to over Six Years in Prison for Ammunition PossessionRead the Press Release
FRESNO, Calif. — Angelo Joseph Fernandez, 42, of Fresno, was sentenced Tuesday by U.S. District Judge Dale A. Drozd to six years and six months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 25, 2021, Fernandez was found to be in possession of ammunition after he led law enforcement officers on a high-speed chase throughout Fresno reaching speeds of over 80 miles per hour on surface streets and at times traveling in opposing lanes of traffic. At the time, Fernandez was out on bail in another case. Fernandez is a convicted felon and is prohibited from possessing ammunition.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno County Sheriff’s Office, and the Fresno Police Department. Assistant U.S. Attorney Laura Jean Berger prosecuted the case.
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.
Fentanyl Seizures in First Five Months of 2022 Surpass all of 2021Read the Press Release
Golden – Law enforcement partners across Colorado announced they have already seized more illicit fentanyl in the first five months of 2022 than they did in all of last year. In a press conference at the headquarters for the Colorado State Patrol in Golden, law enforcement officials presented data from the Rocky Mountain High Intensity Drug Trafficking Area showing that more than 2 million dosage units of fentanyl were removed from Colorado communities so far this year.
“We appreciate the work law enforcement is doing to take this deadly poison off our streets. We also need the help of the public in ending the demand for it. It is risky to take any drug not prescribed by a doctor and obtained from a pharmacy,” warned U.S. Attorney Cole Finegan.
"Presently the Patrol's Interdiction Section has seized more fentanyl in the first five months of 2022 than all of 2021," stated Col. Matthew C. Packard, chief of the Colorado State Patrol. "While I would love to tell you that our troopers have eliminated the threat of this deadly drug, what we remove is a drop in the ocean. It's cheap, it's everywhere, including a strong counterfeit market where people think they are taking other forms of pills. If you have a loved one struggling with any form of drug abuse, get them help."
“When we analyze data that indicates increases in drug seizures and dramatic rises in fatal overdoses, it becomes alarmingly apparent that the user market for illicit fentanyl in the state is expanding. To save lives, a unified response between public safety and health professionals will be essential to counter this dangerous trend,” said Executive Director Keith Weis from the Rocky Mountain High Intensity Drug Trafficking Area Program.
"We have seen the harm that fentanyl brings to our communities. FBI Denver works closely with our partners to combat and prevent drug trafficking. The FBI will continue to use all resources necessary to thwart these deadly drugs and protect our citizens from harm," said FBI Denver Division Special Agent in charge Michael Schneider.
The U.S. Attorney’s Office for the District of Colorado will collaborate with law enforcement partners from around the state at the first ever Colorado Fentanyl Summit on June 2, 2022 and June 3, 2022. The summit is a two-day intensive training for law enforcement on all aspects of fentanyl enforcement from investigation and case-building through interdiction and prosecution. The Denver City Attorney is organizing the Summit, which is hosted by Denver Mayor Michael Hancock and Attorney General Phil Weiser.
Available resources:
Office of Behavioral Health: https://cdhs.colorado.gov/behavioral-health
Stop The Clock (where to get naloxone): https://www.stoptheclockcolorado.org/map
How to recognize an overdose: https://www.samhsa.gov/medication-assisted-treatment/medications-counseling-related-conditions/opioid-overdose
SAMHSA's National Helpline: https://findtreatment.samhsa.gov
CDC 24/7 Saving Lives, Protecting people: https://www.cdc.gov/stopoverdose/index.html
DEA One Pill Can Kill Website: https://admin.dea.gov/onepill
Rocky Mountain HIDTA Colorado Fatal Fentanyl-related Overdoses Rocky Mountain HIDTA Colorado Task Force Seizures Rocky Mountain HIDTA Colorado Fentanyl SeizedFederal Jury Convicts Mexican National for Trafficking Fentanyl and HeroinRead the Press Release
Baltimore, Maryland – A federal jury yesterday convicted Alexander Juarez-Sanchez, a/k/a Jose Manuel Flores, age 37, a citizen of Mexico most recently residing in Indianapolis, Indiana, for conspiracy to distribute controlled substances and for possession with intent to distribute controlled substances, specifically fentanyl and heroin, and for illegally re-entering the United States after removal.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Field Office Director Lyle Boelens of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), Baltimore Field Office; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office.
According to the evidence presented at his five-day trial, on August 5, 2020, Juarez-Sanchez and a co-conspirator were arrested near Hagerstown, Maryland, by officers of the Maryland State Police (MSP) following a traffic stop for following another vehicle too closely on I-81. The driver, who was driving a vehicle with expired Indiana license plates registered to another car, was not able to provide any identification, could not identify the passenger (Juarez-Sanchez), and fumbled through questions about where they were going. A K- 9 unit was subsequently called, and after the dog alerted for drugs, a search of the vehicle yielded approximately $47,000 in cash, just under two kilograms of fentanyl and one kilogram of heroin, and other indicators of drug smuggling. Juarez-Sanchez and the driver initially provided false names, however, their fingerprints and photographs matched those taken when they had previously been in United States Border Patrol or ICE custody. Evidence taken from the two men’s cell phones showed that, before their arrest, they had traveled directly from Burbank, California, where Juarez-Sanchez had obtained seven kilograms of drugs, four kilograms of which he had sold to a buyer in Kentucky the day before his arrest in Maryland for $44,000. Phone evidence also revealed that the men had conducted a similar trip to California in early July 2020 and transported an unknown quantity of drugs for sale to buyer in a northern suburb of Chicago, Illinois.
Juarez-Sanchez faces a mandatory minimum of 10 years and a maximum sentence of 40 years in federal prison for the conspiracy and for possession with intent to distribute fentanyl and heroin; and a maximum of 10 years in federal prison for illegally re-entering the United States after deportation. U.S. District Judge Julie R. Rubin has scheduled sentencing for July 25, 2022 at 10:00 a.m.
United States Attorney Erek L. Barron commended the Maryland State Police, ICE ERO, and DEA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Amy L. Schwartz, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Edmond Man Sentenced to More Than 12 Years in Federal Prison for Firearms OffensesRead the Press Release
OKLAHOMA CITY – Last Thursday, DEVIN DEWAYNE BENNETT, 31, of Edmond, was sentenced to serve 150 months in federal prison for being a felon in possession of a firearm and ammunition, announced U.S. Attorney Robert J. Troester.
On July 22, 2021, a federal grand jury returned a three-count Indictment against Bennett. Count 1 charged Bennett possessing a firearm. Counts 2 and 3 charged Bennett with possessing ammunition on two separate occasions. On September 21, 2021, Bennett pleaded guilty to the Indictment. Federal law prohibits convicted felons from possessing firearms or ammunition.
On May 20, 2021, officers with the Oklahoma City Police Department responded to a reported shooting at an apartment complex in Oklahoma City. Officers arrived and learned during their investigation that Bennett was involved. Officers then arrested Bennett that day after they located him nearby in possession of a firearm and ammunition. The investigation later determined that the firearm and ammunition found in Bennett’s possession were involved in the shooting.
Public records reflect that Bennett was prohibited from possessing firearms due to his lengthy criminal history. These convictions include: Oklahoma County case CF-2013-6234 – Burglary in the first-degree and felon in possession of firearm; Oklahoma County case CF-2014-6304 – attempted first degree burglary; Oklahoma County case CF-2015-1592 – felon in possession of firearm; Oklahoma County case CF-2018-3777 – domestic assault and battery with dangerous weapon; Oklahoma County case CF-2018-4083 – second-degree robbery and domestic assault and battery; and Oklahoma County case CF-2018-5214 – aggravated eluding a police officer.
At the sentencing hearing, U.S. District Court Judge Patrick Wyrick sentenced Bennett to serve 150 months in federal prison. In support of his sentence, Judge Wyrick cited, among other reasons, the serious nature of the offense and Bennett’s lengthy criminal history. Judge Wyrick also ordered Bennett to serve three years of supervised release. Bennett has been in federal custody since July 23, 2021.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Ashley Altshuler and David Nichols, Jr. prosecuted the case.
Drug Dealer Pleads Guilty to Selling Counterfeit Pills that Caused Death of Thirty-Five-Year-OldRead the Press Release
Assistant U. S. Attorney Sean Van Demark (619) 546-7657
NEWS RELEASE SUMMARY—June 1, 2022
SAN DIEGO — Drug dealer Saul Caro pleaded guilty in federal court today, admitting that he sold the fentanyl that caused the fatal overdose of a thirty-five-year-old San Diego resident, identified in court records as M.S.
According to his plea agreement, on April 11, 2021, Caro and the victim exchanged text messages to coordinate the sale of counterfeit oxycodone pills laced with fentanyl. Caro delivered the pills to M.S.’s residence.
M.S. died in his apartment sometime on the evening of April 11, 2021. Caro admitted that the pills he gave to M.S. caused his death. When a search warrant was executed at Caro’s residence, a loaded, unregistered, semi-automatic privately manufactured firearm with no serial number, or “ghost gun” was located along with other drugs and drug paraphernalia.
Prior to this meeting, Caro had sold the counterfeit oxycodone pills to M.S., and the victim had told Caro that some of the pills had caused him severe unintended effects.
“Drug dealers are playing with fire when they sell illicit drugs because deadly fentanyl is everywhere. Dealers beware: the counterfeit pills or powder you sell will inevitably be laced with fentanyl. If you provide the fatal pill or powder, you will be held responsible for the victim’s death.” Grossman thanked the prosecution team and agents from the Drug Enforcement Administration and Homeland Security Investigations for their excellent work to achieve justice in this case.
“Deaths caused by fentanyl continue to rise in San Diego County as the cartels and drug dealers, such as Saul Caro, drive addiction,” said DEA Special Agent in Charge Shelly S. Howe. “In response, DEA has increased the number of investigators on our Overdose Response Team, making us laser focused on pursuing dealers who distribute deadly fentanyl.”
“Homeland Security Investigations (HSI) San Diego, along with the DEA and our San Diego law enforcement partners, are prioritizing investigations targeting both the drug cartels who are smuggling fentanyl into the United States and the local dealers who peddle this lethal drug within our community,” said HSI San Diego Special Agent in Charge Chad Plantz.
Caro is scheduled to be sentenced on September 19, 2022 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the DEA to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into M.S.’s death.
DEFENDANTS Case Number 21cr3100-GPC
Saul Caro Age: 33 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
Homeland Security Investigations
San Diego County District Attorney’s Office
San Diego Police Department
State of California Department of Health Care Services
Davenport Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – Julian Darnell Black, age 28, was sentenced today to 150 months in prison for Possession with Intent to Distribute Five Grams or More of Methamphetamine and Carrying a Firearm During and in Relation to a Drug Trafficking Crime. Black was ordered to serve five years of supervised release to follow his prison term and immediately pay a $200 Special Assessment to the Crime Victims’ Fund.
According to court documents, the investigation into Black began when law enforcement was dispatched to a domestic incident where Black was identified as the suspect. A subsequent search of Black resulted in the seizure of two baggies containing methamphetamine and a loaded Draco rifle. Law enforcement also confirmed that Black had multiple state warrants outstanding. On January 24, 2022, Black pleaded guilty to the charges.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Davenport Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case was a 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.
Caris Life Sciences Pays over $2.8 Million to Settle False Claims Act Allegations from Delay in Submission of Genetic Cancer Screening TestsRead the Press Release
Caris Life Sciences, Inc. (Caris) has agreed to pay $2,886,674.86 to resolve allegations that it violated the False Claims Act in an alleged nationwide scheme to improperly bill Medicare for laboratory tests known as “Caris Molecular Intelligence” and the “ADAPT Biotargeting System.”
Breon Peace, United States Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG) and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the settlement.
“In this case, tests for cancer patients were delayed for no reason other than to circumvent a Medicare requirement and allow improper payment to Caris,” stated United States Attorney Peace. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for the elderly and vulnerable.”
Mr. Peace expressed his gratitude for the support of the United States Department of Health and Human Services for their assistance in investigating these important claims.
“This settlement is another example of our commitment to holding the health care industry accountable for proper billing practices,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, HHS-OIG will continue to ensure that individuals and entities billing federal health care programs do so in an honest manner.”
“Caris Life Sciences intentionally deceived the public health care system to benefit from unlawful payments. Medicare fraud, in all its many forms, puts public health at risk and hands taxpayers the bill. We will continue to work with our partners to ensure programs like Medicare remain free from fraudulent activity,” stated Assistant Director-in-Charge Driscoll.
Caris, a molecular science company headquartered in Texas, developed a series of laboratory tests primarily for cancer patients to detect the activity of certain genes within a breast cancer tumor to predict the risk of breast cancer recurrence in patients. These predictive genetic marker tests are used by oncologists and other physicians to assist in determining appropriate treatment options for cancer patients.
During the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for tests performed on specimens if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay either in an outpatient or inpatient setting. However, if the test was performed more than 14 days after discharge, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test.
The United States contends that Caris perpetrated a scheme to evade Medicare regulations when submitting claims to the Centers for Medicare & Medicaid Services (CMS) for its predictive marker tests to circumvent Medicare’s 14-Day Rule (which establishes who may bill Medicare for certain laboratory services) in three ways:
- Caris sought direct reimbursement from CMS for claims on behalf of Medicare beneficiaries, when tests were ordered and submitted for testing within 14 days after an inpatient discharge. For inpatient beneficiaries, hospitals receive a lump-sum payment CMS called the Diagnosis-Related Group (“DRG”) payment. By submitting separate claims for the laboratory tests, Medicare paid twice for the same service, as part of the DRG and in a direct payment to Caris.
- Caris sought direct reimbursement from CMS for claims on behalf of Medicare beneficiaries, when Caris failed to discourage providers who ordered testing within 14 days after an inpatient or outpatient discharge from canceling the order and placing a new order for testing after the 14-day time period had elapsed; and
- Caris sought direct reimbursement from CMS for tests ordered within 14 days of a beneficiary’s out-patient procedure.
The civil settlement includes the partial resolution of one action and final resolution of another brought under the qui tam or whistleblower provisions of the False Claims Act against Caris. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Doe v. (UNDER SEAL) and United States ex rel. Caughron v. CDx Holdings, Inc. f/k/a Caris Life Science, Civil Action No. 18-CV-0352 (E.D.N.Y).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by Senior Litigation Counsel Deborah B. Zwany with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell. The Office of Inspector General at the Department of Health and Human Services and the Federal Bureau of Investigation assisted in the investigation of these cases.
California Man Arrested for Abusive Sexual Contact on a Flight from Los Angeles to BostonRead the Press Release
BOSTON – A California man has been arrested for allegedly engaging in abusive sexual contact with two women aboard a redeye flight from Los Angeles to Boston yesterday.
Jairaj Singh Dhillon, 42, of Modesto, Cal., was charged with two counts of abusive sexual contact while in the special aircraft jurisdiction of the United States. Dhillon was arrested yesterday morning at Boston Logan International Airport. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Judith G. Dein, Dhillon was held in custody pending a detention hearing scheduled for June 2, 2022.
According to the charging document, during an overnight flight from Los Angeles to Boston on May 31, 2022, Dhillon engaged in unwanted sexual contact with two female passengers sitting next to him. The first victim reported that Dhillon, seated in the aisle seat next to her, allegedly touched her thigh and groin area while she was taking care of her infant child who was in a car seat in the window seat next to her. The first victim allegedly called for help and stated out loud, “this man just groped me.” The second victim, who was seated in the aisle seat opposite Dhillon, reported that Dhillon allegedly reached out with both hands and simultaneously grabbed her groin and buttocks when she was standing in the aisle. Flight crew then intervened and moved Dhillon to another part of the plane for the duration of the flight. When the flight arrived in Boston, law enforcement escorted Dhillon off the plane and placed him under arrest.
The charge of abusive sexual contact while in the special aircraft jurisdiction of the United States provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $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.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Butte felon sentenced to 54 months in prison for illegal possession of nine firearmsRead the Press Release
MISSOULA — A Butte man who was on state supervision for felony convictions was sentenced today to 54 months in prison, to be followed by three years of supervised release, after he admitted to illegally possessing nine firearms, U.S. Attorney Leif M. Johnson said.
Richard Daniel White, 35, pleaded guilty in February to prohibited person in possession of firearms.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in February 2020, White, a convicted felon on state supervision, possessed nine firearms and ammunition in his residence during a probation search. State probation officers conducted a search based on a positive urine analysis test for methamphetamine and information that White possessed stolen firearms. One of the semiautomatic firearms White possessed was capable of accepting a large capacity magazine, and there were several magazines capable of accepting more than 15 rounds of ammunition in his bedroom with the firearm. At the time of offense, White was on state supervision for three separate felony cases of criminal endangerment, criminal possession of dangerous drugs and attempted theft and criminal mischief.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Probation and Parole and the Butte Silver Bow Law Enforcement Agency.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Boxford Plumbing Company Owner Sentenced to Prison for Tax and Fraud SchemesRead the Press Release
BOSTON – A Boxford plumbing contractor was sentenced to more than a year in prison yesterday after engaging in a multi-year scheme to defraud customers by overcharging them and by billing them for services he did not perform and by evading his income taxes – defrauding the government of more than $1.45 million.
Jared Derrico, a/k/a “Jay,” 35, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one year and one day in prison and three years of supervised release. Derrico was also ordered to forfeit $315,000 in criminal proceeds and to pay $1.45 million in restitution to the Internal Revenue Service. The Court deferred to impose a fine, pending further proceedings to determine restitution to the victims of Derrico’s fraud scheme. On Feb. 1, 2022, Derrico pleaded guilty to one count of tax evasion and two counts of mail fraud.
For tax years 2015 through 2019, Derrico operated a plumbing business known, variously, as Derrico Services and The Pipe Surgeon. During that time, Derrico routinely overcharged his customers for plumbing, maintenance, and construction work he performed and billed his customers for work he did not perform at all. Derrico then cashed payments from his customers or deposited them into his personal accounts and misled his tax preparer about the gross receipts from his business to evade reporting this income on this tax returns. Derrico also fraudulently obtained payments for installing air conditioning units at a property in Boston, but in fact, did not install the units. In total, Derrico defrauded at least 11 customers by overcharging for his services or charging for services he did not perform.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The United State Postal Inspection Service and the Ipswich Police Department also provided valuable support in the investigation. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Boston Man Sentenced in Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston on conspiracy and distribution charges involving fentanyl.
Valentin Pujols, 35, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to time served (14 days in prison) and two years of supervised release, with the first year to be served in home detention. Pujols was also ordered to complete 100 hours of community service. On Jan. 28, 2022, Pujols pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl.
Pujols conspired with co-defendants Katherine Olivares-Soto and, allegedly, Maria Yovanny Soto-Diaz-Deperez to distribute fentanyl. On multiple occasions between December 2018 and February 2019, Soto-Diaz-Deperez allegedly agreed to sell quantities of fentanyl to an undercover agent. Pujols accompanied Soto-Diaz-Deperez on two occasions and distributed approximately 61 grams of fentanyl that Soto-Diaz-Deperez allegedly sold to the undercover agent.
Olivares-Soto previously pleaded guilty and is scheduled to be sentenced on Aug. 15, 2022. Soto-Diaz-Deperez remains a fugitive.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Arlington Police Chief Juliann Flaherty; and Somerville Acting Police Chief Charles Femino made the announcement today. Assistance in the investigation was provided by the Boston Housing Authority Police Division and the Arlington Public Housing Authority. Assistant U.S. Attorney James E. Arnold of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Birmingham Man Arrested for Possession of a Firearm While Subject to Protection from Abuse OrderRead the Press Release
BIRMINGHAM, Ala. – A federal indictment has been unsealed after a Birmingham man was arrested on Monday on gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Mickey French.
A two-count indictment filed in U.S. District Court charges Antarius Lanay Mitchell, 23, with possession of a firearm by a person subject to a court order restraining him from harassing, stalking, and threatening an intimate partner (known as a domestic violence protective order, Protection from Abuse order, or PFA) and providing a false statement on a federal firearm licensee record.
According to the indictment, in October 2021, Mitchell provided fraudulent information on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473, Firearms Transaction Record, to the effect that he was not the subject of a PFA when, in fact, he was the subject of a PFA. The PFA charge against Mitchell stems from his possession of a firearm, while subject to the terms of a PFA order issued by the Jefferson County Family Court on August 6, 2020. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms. As alleged in the indictment, Mitchell possessed a Steyr Arms 9mm pistol.
The maximum penalty for possession of a firearm while under a Protection from Abuse Order is 10 years in prison.
The maximum penalty for providing a false statement on federal firearm licensee records is 5 years in prison.
ATF investigated the case, along with the Homewood Police Department. Assistant U.S. Attorney Brittney Plyler is prosecuting the case.
This case is part of the U.S. Attorney’s Office Operation Safe Families Initiative, which was launched in October 2020. Operation Safe Families focuses on fighting domestic violence in the Northern District of Alabama. Annually, offenders with a history of domestic violence commit more than half of all homicides committed in Jefferson County. Through Operation Safe Families, the U.S. Attorney’s Office works with federal, state, and local law enforcement to use federal firearm laws to combat domestic violence. Additionally, the Office works with partners in the community who are focused on prevention, education, and survivor support. Operation Safe Families is a partnership between the Bureau of Alcohol, Tobacco, Firearms and Explosives, Birmingham Police Department, Jefferson County Sheriff’s Office, Jefferson County District Attorney’s Office, One Place Family Justice Center, YWCA, and the Hispanic Interest Coalition of Alabama.
This case is also 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.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Baltimore Fentanyl Dealer Sentenced to Six Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Donronald Dosey, age 33, of Baltimore, Maryland, to six years in federal prison, followed by four years of supervised release, for possession with intent to distribute more than 40 grams of fentanyl. In fact, Dorsey admitted that he possessed more than 400 grams of fentanyl. A lethal dose of fentanyl is approximately two milligrams, so the quantity possessed by Dorsey, and which he intended to distribute, is enough to kill 20,000 people.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, from October 2020 through March 1, 2021, Dorsey was part of a drug trafficking conspiracy involving large amounts of fentanyl and other controlled substances. Dorsey and his co-conspirators operated a stash house in an apartment in Pikesville, Maryland, where they processed fentanyl and other drugs, mixing them with cutting agents and packaging them for resale.
On March 1, 2021, law enforcement saw Dorsey leave the apartment with a co-conspirator, who was carrying a bag that contained narcotics. They entered a vehicle and drove away. Law enforcement followed the vehicle to a drug store parking lot in the 1500 block of Reisterstown Road in Pikesville, where Dorsey and his co-conspirator planned to conduct a drug transaction. Law enforcement stopped the vehicle and searched Dorsey and the vehicle, recovering 20 separate clear plastic bags, each containing approximately 50 gelatin capsules. The gelcaps contained a mixture of fentanyl weighing a total of 569 grams, which Dorsey admitted he intended to distribute.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the DEA, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jason D. Medinger and Anatoly Smolkin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
# # #
Baltimore City Defendant Malik Evans Sentenced to 17 Years in Federal Prison for Conspiracy to Participate in Racketeering Activity Involving CarjackingRead the Press Release
Baltimore, Maryland – Yesterday U.S. District Judge Stephanie A. Gallagher sentenced Malik Evans, age 25, of Baltimore City, Maryland to 17 years in federal prison, followed by 5 years of supervised release, for conspiracy to participate in racketeering activity involving carjacking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Malik Evans participated in a violent carjacking crew that committed a series of violent armed robberies and caused much suffering within the Baltimore community” said U.S. Attorney Erek L. Barron. “In partnership with our law enforcement partners, we will continue to aggressively prosecute violent offenders.”
According to his guilty plea, from April 2019 to August 2019, Evans and at least six other co-defendants were members of an enterprise that engaged in a pattern of deadly racketeering activity, including a series of thirteen armed carjackings in Baltimore City. The enterprise was also involved in multiple armed robberies, attempted armed robberies and the pawning of stolen goods.
Specifically, Evans participated in four of thirteen carjackings committed by the enterprise. In all four of the carjackings in which Evans participated, members of the enterprise brandished firearms. Other co-conspirators, not including Evans, participated in armed carjackings in which one victim was shot and killed. Two other victims were killed during street robberies; another victim was paralyzed as a result of an armed street robbery.
Members of the conspiracy not only promoted their activities on social media, but they also shared the proceeds of their exploits. Members also concealed enterprise activities by hiding, destroying, or disposing of evidence.
On December 20, 2021, co-defendant Karon Foster was sentenced to 40 years in federal prison for conspiracy to participate in racketeering activity, a carjacking conspiracy, and for aiding and abetting a carjacking resulting in death.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon Moore who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
# # #
Auburn Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Deryk Paul Burdick, age 33, of Auburn, New York waived indictment and pled guilty today to receipt and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police Superintendent Kevin P. Bruen.
As a part of his guilty plea Burdick, a former school bus driver, admitted that he purchased and downloaded hundreds of child pornography images and videos from the dark web from December 2019 through March 2020 and had child pornography files in his possession in December 2021.
At sentencing on October 12, 2022, Burdick faces a mandatory minimum term of imprisonment of five years and a maximum term of 20 years for the receipt offense and a maximum term of 20 years’ imprisonment for the possession offense. In addition to imprisonment, Burdick can be fined up to $250,000 per count, will be required to pay restitution to the victims of his child pornography receipt and possession offenses, and will be required to serve a term of supervised release after imprisonment of between five years and life. Burdick also will have to register as sex offender upon his release. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
Burdick’s case is being investigated by the Department of Homeland Security Investigations (HSI), the New York State Police, the Auburn Police Department, and the New York State Internet Crimes Against Children Taskforce (ICAC). The joint effort is a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Attempt to import $18M in meth in diesel tanks lands foreigner in custodyRead the Press Release
LAREDO, Texas – A 33-year-old Mexican national has been charged with attempting to import over 400 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury has returned a two-count indictment against Luis Alberto Garza Cisneros. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
The complaint originally filed in the case alleges that on May 6, Cisneros attempted to enter the country through the World Trade Bridge Port of Entry while driving a tractor trailer.
Law enforcement referred the vehicle to secondary inspection, at which time an X-ray allegedly revealed anomalies. They conducted a search and allegedly discovered approximately 413.98 kilograms of meth in 24 five-gallon buckets inside of the tractor’s diesel tanks, according to the charges.
The drugs have an estimated street value of approximately $18 million.
If convicted, Cisneros faces up to life in prison and a possible $10 million maximum fine.
Homeland Security Investigations conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Armed Career Criminal Sentenced to 188 Months in Federal Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
TALLAHASSEE, FLORIDA – Eddie D. Starks, 41, of Tallahassee, Florida, was sentenced to 188 months in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon. Jason R. Coody, United States Attorney, for the Northern District of Florida announced the sentence.
“Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said U.S. Attorney Coody. “This sentencing is another example that working jointly with our partners is making our communities safer.”
Law enforcement responded to Starks’ apartment because of a 911 call alleging that he had a firearm and was threatening to kill his wife. When Tallahassee Police Department officers arrived, they heard screaming and yelling coming from inside the apartment. Starks’ wife answered the door and told officers that he was armed inside and had threatened to kill her with the gun. Officers arrested Starks and located where he had hidden a firearm in a backpack inside the apartment. As officers removed the backpack containing the firearm from the residence, Starks admitted that they would find a quarter pound of marijuana and a firearm in the backpack.
“We are pleased to see another violent felon brought to justice and taken off our community’s streets,” said Deputy Chief Jason Laursen. “Our officers and detectives work tirelessly every day to enhance the safety of citizens. Ensuring felons do not have access to a firearm is crucial in this continued effort to protect the community we serve.”
Starks was prohibited from possessing firearms or ammunition because he was a convicted felon. Starks had 12 prior felony convictions and qualified for enhanced sentencing as an Armed Career Criminal because he had three or more convictions for violent felonies and/or serious drug offenses committed on separate occasions. He had been released from federal prison approximately three months before this arrest and remained on supervised release out of the Middle District of Georgia.
“ATF prioritizes investigations of armed and violent felons to disrupt the cycle of violence and make our communities safer,” said ATF Special Agent in Charge, Craig W. Saier. “Collaboration with our law enforcement partners in this investigation and prosecution demonstrates armed felons, recently released from prison, and committing alleged acts of domestic violence, will be prosecuted to the fullest extent of the law.”
Following his 188-month prison sentence, Starks will be on federal supervised release for five years. This sentencing resulted from the collaborative work of the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney James A. McCain.
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 works 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Another indicted in nationwide fraudulent car buyer paper tag schemeRead the Press Release
HOUSTON – More charges have been filed in the fraudulent paper license plate scheme involving fake car dealerships who issued more than 700,000 illegitimate paper tags, announced U.S. Attorney Jennifer Lowery.
Law enforcement arrested Daniel Rocky Christine-Tani, 33, Sugar Land, today. He is expected to make his initial appearance at 10 a.m. tomorrow before U.S. Magistrate Judge Sam Sheldon.
A federal grand jury in Houston returned the 22-count superseding indictment May 11 charging Christine-Tani aka Daniel Rocky Christine-Tahi, Ruben Gonzalez, Rocky Keys and Daniel Christine with conspiracy and various counts of wire fraud. The indictment also adds more charges against known fugitive Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera, 32, last known of Houston. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
Co-conspirators Leidy Areli Hernandez Lopez, 40, Houston, and Octavian Ocasio, 50, New York, were previously charged and arrested in the same scheme.
The indictment alleges all four participated in a scheme involving the use of fictitious car dealerships to issue and sell hundreds of thousands of Texas temporary buyer tags without selling cars. They also allegedly used email accounts and text messaging to communicate and deliver the fraudulent tags to purchasers throughout the United States. The four received and shared proceeds from the fraudulent sale of Texas buyer tags, according to the charges.
In Texas, used car dealerships must have an independent GDN license to buy, sell or exchange used vehicles. To obtain a license applicants must apply. Once an applicant obtains a GDN license, they can buy, sell or exchange used cars and create temporary buyer tags for the transaction through the Texas Department of Motor Vehicle’s online eTag portal. The portal is web-based and password protected, and only licensed GDN holders can access it. However, the GDN holder can create other users on their account to allow access to the portal to create and issue buyer tags.
The co-conspirators allegedly provided false information such as fake identities, drivers licenses, lease agreements and business signs in the online application portal to obtain GDN licenses for fictitious car dealerships. The indictment further alleges they advertised the sale of Texas buyer tags via Facebook and Instagram.
According to the charges, the illegal tags pose a danger to the public and law enforcement because purchasers use them to avoid obtaining registration, safety inspections and liability insurance. They can also allegedly be used to hide identities from law enforcement.
If convicted, each faces up to 20 years in prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with assistance from Travis County Precinct 3 Constables Office, Houston Police Department, Texas Department of Public Safety, sheriff’s offices in Harris and Ft. Bend Counties, Texas Department of Motor Vehicles, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Allentown Business Owner and Drug Dealer Sentenced to over Eight Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Brian David Cortes, a/k/a “Bambi”, 36, of Allentown, PA, was sentenced to eight years and one month in prison, and five years of supervised release by United States District Court Judge Jeffrey L. Schmehl for the distribution of the dangerous narcotic fentanyl.
In February 2022, the defendant pleaded guilty to distributing 40 grams or more of a mixture and substance containing heroin and fentanyl. The charges stemmed from a 2021 investigation into drug-trafficking activities occurring at the defendant’s barbershop on Tilghman Street and his garage on North 4th Street, both in Allentown. Law enforcement conducted multiple controlled buys of fentanyl from the defendant and other individuals during the investigation and in June 2021 executed numerous search warrants at residences and the two businesses, leading to the seizure of over 1,000 grams of fentanyl and $100,000.
“Fentanyl is one of the deadliest narcotics flooding the streets of our country, and this defendant made sure there was a steady supply of it right here in eastern Pennsylvania,” said U.S. Attorney Williams. “Cortes operated two successful, legitimate businesses, but that wasn’t enough. So he let his greed corrupt those enterprises, turning them into drug trafficking locations. Our Office is doing everything it can to uncover and disrupt these dangerous operations.”
"Illicit fentanyl is a dangerous street drug that has had a devastating and deadly impact across the Commonwealth and the nation at large," said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "That Cortes distributed significant amounts of fentanyl out of his legitimate businesses is all the more troubling."
This case is part of Project Safe Neighborhoods (PSN), a program bringing "Illicit fentanyl is a dangerous street drug that has had a devastating and deadly impact across the Commonwealth and the nation at large," said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "That Cortes distributed significant amounts of fentanyl out of his legitimate businesses is all the more troubling." 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.
The case was investigated by the Drug Enforcement Administration – Allentown Residence Office, and is being prosecuted by Assistant United States Attorney Charles J. Volkert, Jr.
Albany Felon Pleads Guilty to Escaping Halfway HouseRead the Press Release
ALBANY, NEW YORK – Glyn Frink, age 51, of Albany, pled guilty today to escaping from the Horizon House Residential Reentry Center in September 2021.
The announcement was made by United States Attorney Carla B. Freedman and United States Marshal David L. McNulty.
As part of the plea, Frink admitted that he was placed by the federal Bureau of Prisons at the Horizon House, and that he signed out to go to work on September 25, 2021 and failed to return at 6 pm as required. Frink remained in the community without approval until March 7, 2022, when he was arrested at a fast food restaurant in Albany.
Frink is scheduled to be sentenced on September 29, 2022 before Senior United States District Judge Lawrence E. Kahn. He faces a sentence of up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
This case was investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney Benjamin S. Clark.
18-wheeler driver convicted of smuggling 73 people from six countriesRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Mission man has pleaded guilty to illegally transporting non-U.S. citizens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Leonardo Davila Jr. admitted to smuggling 73 people while driving an 18-wheeler.
On Feb. 8, Davila drove a tractor trailer into the Border Patrol (BP) checkpoint near Falfurrias. There, a K-9 soon alerted authorities to the presence of concealed humans. Upon a search of the trailer, law enforcement discovered dozens of undocumented individuals.
In the trailer were nationals of Ecuador, Guatemala, Honduras, Peru, Mexico and El Salvador. All were later determined to be present in the country illegally.
U.S. District Judge Drew B. Tipton will impose sentencing Aug. 24. At that time, Davila faces up to five years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Patrick Overman is prosecuting the case.
13 Individuals Charged with Possession and Distribution of OpioidsRead the Press Release
SAN JUAN, Puerto Rico – On May 24, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging seven women and six men from the municipality of Ponce with conspiracy to possess with intent to distribute controlled substances, and a former doctor in medicine, defendant Julia Torres-Ortiz, with health care fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of the U.S. Department of Health & Human Services Office of Inspector General.
The indictment alleges that from January 2017, and continuing through April 2021, the defendants knowingly and intentionally conspired to possess with intent to distribute Oxycodone (commonly known as Percocet) and Alprozolam (commonly known as Xanax). Defendant Romualdo Matos-Rodríguez distributed the narcotics from his residence in Ponce, PR, and other places nearby, all for significant financial gain and profit.
Co-conspirators would buy pills at pharmacies and return them to defendant Romualdo Matos-Rodríguez for further distribution at his house and other nearby places.
The defendants are:
Leximara Santiago-Martínez
Edna Caridad Cruz-Vélez
Solmarie Gautier-Díaz
Ramón Costa-Pérez
David Santos-Soto
José Manuel Santos-Bodon, a/k/a “Manuel”
Gloria Elena Mercado-Millán
José Alberto Ortiz-Flores, a/k/a “Berto”
Jessenia Díaz-Torres
Edgardo Iván García-Santiago, a/k/a “Meru”
Naomi Rosario-López
Regina Santiago-Martínez, a/k/a “Gina”
Defendant Romualdo Matos-Rodríguez is facing a forfeiture allegation of his property, a residence located at Urb. Villa Dos Ríos, Yagüez Street, in Ponce, PR.
Defendant Julia Torres-Ortiz is facing two counts of health care fraud for prescribing medications, which were then paid by Triple-S Advantage, a medical insurance plan, using her expired DEA Certificate of Registration, Medical License, and Controlled Substance License. Defendant Torres-Ortiz had a National Provider Identifier (NPI), which Triple-S Advantage used to transmit payment for medication prescribed by her, despite lacking legal authority to do so.
Triple-S Advantage is a Medicare Advantage (MA) Plan. MA plans pay for claims submitted by providers for services provided to Medicare beneficiaries. The NPI is a Health Insurance Portability and Accountability Act (HIPAA) standard. It is a unique umber issued by the Centers for Medicare and Medicaid Services to identify a specific individual health care provider, including a specific physician, like defendant Torres-Ortiz.
“Prescribing and distributing opioids without regard to the potentially lethal consequences simply cannot be tolerated,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We will continue to work with our law enforcement partners to hold accountable criminals who scheme to profit from prescribing medically unnecessary drugs.”
“DEA’s objective is clear, the DEA will bring all it has to bear to make our communities safer and healthier, and to reverse the devastating trends of drug-related violence and overdoses plaguing our communities,” said Renita Foster, Special Agent in Charge of the DEA, Caribbean Division. “We will not rest until we eradicate drug violence.”
Assistant U.S. Attorney (AUSA) and Deputy Chief of the Asset Recovery and Money Laundering Unit Myriam Y. Fernández-González, and AUSA Manuel Muñiz-Lorenzi are in charge of the prosecution of the case. If convicted on the conspiracy charge, the defendants face a sentence of up to 20 years in prison. If convicted of health care fraud, Julia Torres-Ortiz faces up to 10 years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
Tuesday 31 May 2022
Young Texan ordered to federal prison for smuggling cocaine on passenger busRead the Press Release
CORPUS CHRISTI, Texas - A 21-year-old Hidalgo County man has been sent to federal prison for possessing with the intent to distribute 4.5 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Matthew Ethan Joseph Castillo pleaded guilty Feb. 10.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Castillo to serve 36 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Castillo transported cocaine numerous times in the past, having delivered narcotics to Houston and Dallas as well as Atlanta, Georgia, and New York City. In handing down the sentence, the court noted the significant quantity of cocaine that Castillo was smuggling.
At the time of his plea, Castillo admitted he knowingly attempted to smuggle the narcotics past a U.S. Border Patrol (BP) checkpoint.
On Sept. 29, 2021, Castillo was traveling on a Tornado commercial passenger bus that entered the primary inspection area of the checkpoint near Falfurrias. There, a service canine alerted to a specific piece of luggage in the lower compartment of the bus. Authorities identified Castillo as the owner.
They searched the item and found two wooden tortilla presses, each containing two bundles of cocaine. They had been individually wrapped in carbon paper and coffee and sealed in plastic.
The drugs had an estimated street value of more than $300,000.
Castillo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck prosecuted the case.
West Roxbury Woman Sentenced for Wire FraudRead the Press Release
BOSTON – A West Roxbury woman was sentenced today in federal court in Boston in connection with a return fraud scheme.
Tamara Khatuntseva, 64, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 90 days in prison and three years of supervised release. Khatuntseva was also ordered to pay restitution of $85,499 and forfeiture of $83,806. On Aug. 5, 2021, Khatuntseva pleaded guilty to wire fraud.
In December 2018, law enforcement initiated an investigation into multiple individuals who were suspected of engaging in activities to defraud runway stores across Massachusetts. From December 2018 through August 2020, Khatuntseva engaged in a scheme to defraud a store through refunds of inferior merchandise including high-end and expensive jewelry, clothing, purses, handbags, luggage and shoes. Specifically, Khatuntseva purchased high-end retail goods from the store and fraudulently returned lower value items in their place for a full refund. Khatuntseva then sold the legitimate merchandise on eBay for hundreds of thousands of dollars in illegal profits. For example, Khatuntseva was captured on video surveillance purchasing a pink Gucci scarf for $399, which was then listed for sale on an eBay site associated with Khatuntseva. Several days later, video surveillance showed Khatuntseva returning a different scarf – with the same bar code – and receiving a full refund. To further her scheme, Khatuntseva used two different eBay accounts, opened credit cards in her daughter’s name and purchased the same red security tags used by the store in order to disguise fraudulent returns as legitimate merchandise. On Aug. 27, 2020, a search of Khatuntseva’s home uncovered 42 items she planned to sell on eBay or fraudulently return. It is estimated that the victim company lost between $40,000 and $150,000 as a result of the scheme.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Criminal Division prosecuted the case.
WeLeakInfo.to and Related Domain Names SeizedRead the Press Release
WASHINGTON – The FBI and the U.S. Department of Justice announced today that they have seized the internet domain name weleakinfo.to and two related domain names, ipstress.in and ovh-booter.com, following an international investigation into websites allowing users to buy access to stolen personal information or to perform attacks on victim networks.
The announcement was made by U.S. Attorney Matthew M. Graves of the District of Columbia and Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division.
“Today, the FBI and the Department stopped two distressingly common threats: websites trafficking in stolen personal information and sites which attack and disrupt legitimate internet businesses,” said U.S. Attorney Graves. “Cyber crime often crosses national borders. Using strong working relationships with our international law enforcement partners, we will address crimes like these that threaten privacy, security, and commerce around the globe.”
“These seizures are prime examples of the ongoing actions the FBI and our international partners are undertaking to disrupt malicious cyber activity,” said Special Agent in Charge Jacobs. “Disrupting malicious DDoS operations and dismantling websites that facilitate the theft and sale of stolen personal information is a priority for the FBI.”
The WeLeakInfo.to website had claimed to provide its users a search engine to review and obtain the personal information illegally obtained in over 10,000 data breaches containing seven billion indexed records – including, for example, names, email addresses, usernames, phone numbers, and passwords for online accounts. The website sold subscriptions so that any user could access the results of these data breaches, with subscriptions providing unlimited searches and access during the subscription period (one day, one week, one month, three months, or lifetime). In January 2020, the FBI and the U.S. Department of Justice also announced that they had seized the internet domain name weleakinfo.com, shutting down a similar service then provided at that site.
The ipstress.in and ovh-booter.com domains were also seized. Those sites publicly offered to conduct “Distributed Denial of Service” attacks, or “DDoS” attacks for clients – specifically, a format called booter or stressor attacks. DDoS attacks are a type of network attack in which multiple internet-enabled devices are used to attack computers hosting a website – usually by flooding the site with internet traffic – for the purpose of rendering it inaccessible to legitimate users or unable to communicate with the internet.
With execution of the warrant, the seized domain names – weleakinfo.to and the related domains – are now in the custody of the federal government, effectively suspending the website’s operation. Visitors to the site will now find a seizure banner that notifies them that the domain name has been seized by federal authorities. The U.S. District Court for the District of Columbia issued the seizure warrant.
The seizures of these domains were part of a coordinated law enforcement action with the National Police Corps of the Netherlands and the Federal Police of Belgium. The actions executed by our international partners included the arrest of a main subject, searches of several locations, and seizures of the webserver’s infrastructure.
Any persons having information concerning weleakinfo.to or its owners and operators are encouraged to provide that information by filing a complaint (referencing #weleakinfo in the “Description of Incident” field) with the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/complaint/default.aspx.
These seizures are a part of a comprehensive law enforcement action taken by the FBI, the U.S. Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section, along with international law enforcement, including the Netherlands National Police Corps and the Belgium Federal Police.
Washington, D.C. man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Emmanuel Kwame West, of Washington, D.C., has admitted to selling heroin and fentanyl, United States Attorney William Ihlenfeld announced.
West also known as “Donte West,” 40, pleaded guilty today to one count of “Distribution of Heroin and Fentanyl Mixture.” West admitted to selling a mixture of fentanyl and heroin in March 2021 in Berkeley County.
West faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vancouver Man Sentenced to Federal Prison for Child Sex TraffickingRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for facilitating and benefitting from the sex trafficking of multiple children.
Keonte Desmond Scott, 24, was sentenced to 97 months in federal prison and five years’ supervised release.
According to court documents and trial testimony, in 2016, after he was released from prison, Scott met and befriended Johnl Jackson, 34, also of Vancouver. Jackson sold Scott cocaine and began coaching him in commercial sex trafficking. In late 2016, Scott met and began a relationship with another Vancouver resident, Diana Petrovic, 23. Jackson helped Scott traffic Petrovic and they began using her to recruit and traffic other minor females.
By early 2019, several minors reported to law enforcement that they had been trafficked by Scott and Petrovic. During the ensuing investigation, authorities learned of two teen girls, then 14- and 15-years-old, respectively, who together had run away from their homes in Lane County, Oregon and were introduced to Scott and Petrovic at a mall in Vancouver. Petrovic took the girls to a home the girls believed was Jackson’s and gave them drugs and alcohol. Scott and Petrovic told the girls they would take them to an upscale party, but, instead, took them to a location in Portland where they were sold for sex. Eventually, the girls separated themselves from Scott and Petrovic, spent the night elsewhere, and were driven back home by one of the girl’s mothers the next day.
Throughout the summer of 2018, after Scott had returned to prison, Petrovic worked closely with Jackson to traffic minors, including of the girls from Lane County.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and a third accomplice, Evan Blake Barajas, 24, of Vancouver, Washington, with sex trafficking of children and transporting minors with intent to engage in sexual activity. On December 4, 2019, a fourth accomplice, Jamil Timpke-Rhoades, 23, of Vancouver, Washington, was added as a co-defendant by superseding indictment.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking.
Barajas and Timpke-Rhoades are in custody pending a seven-day jury trial scheduled to begin on July 19, 2022.
On October 9, 2019, in a separate criminal case, a federal grand jury in Portland returned a three-count indictment charging Jackson and Petrovic with sex trafficking of a child by force, fraud, and coercion; sex trafficking of a child; and transportation of a minor with intent to engage in sexual activity. Later, on December 4, 2019, Jackson and Petrovic were charged by superseding indictment with conspiring to engage in sex trafficking of children; sex trafficking of a child; sex trafficking of a child by force, fraud, and coercion; and transporting a minor with intent to engage in sexual activity.
On July 22, 2020, Petrovic was charged by superseding criminal information with and pleaded guilty to distribution of controlled substances to persons under 21. She will be sentenced on April 3, 2023.
On March 11, 2022, Jackson was convicted at trial of one count of conspiracy to engage in sex trafficking; three counts of sex trafficking of a child; two counts of sex trafficking by force, fraud, and coercion; and three counts of transportation of a minor with intent to engage in sexual activity. He will be sentenced on July 25, 2022.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Tigard Police Department and Portland Police Bureau. It was prosecuted by Assistant U.S. Attorneys Ashley Cadotte and Pamela Paaso with assistance from Assistant U.S. Attorneys Kelly Zusman, Suzanne Miles, and Thomas Ratcliffe, and Multnomah County Deputy District Attorney Glen Ujifusa.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In January 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
Vacaville Man Sentenced to 8 Years in Prison for Billion Dollar DC Solar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Alan Hansen, 51, of Vacaville, was sentenced today to eight years in prison and ordered to pay $619,415,950 in restitution for participating in a billion-dollar Ponzi scheme involving DC Solar, U.S. Attorney Phillip A. Talbert announced.
On July 23, 2020, Hansen pleaded guilty to conspiracy to commit an offense against the United States and aiding and abetting money laundering.
According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the mobile solar generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. Jeff Carpoff, 51, Paulette Carpoff, 51, both of Martinez, and their co-conspirators solicited investors by claiming that there were favorable federal tax benefits associated with investments in alternative energy. They sold solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud. In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist and DC Solar paid early investors with funds contributed by later investors.
According to court documents, Hansen was an employee of a telecom company with which DC Solar had done some limited business. In that role, Hansen accepted $1 million from co-conspirators at DC Solar to fraudulently sign a false contract reflecting a much greater amount of supposed business leasing MSGs. Hansen’s co‑conspirators used that false contract to induce substantial investments by victims in DC Solar. After signing the contract, Hansen took a job at DC Solar at a significant pay increase and left his former employment. Later, as a DC Solar executive, Hansen and a co-conspirator agreed to share $20,000 cash from Jeff Carpoff to sign a false agreement related to the earlier contract by forging the signature of a former telecom company employee. Hansen’s co-conspirators used the false contract and forged agreement to induce still further payments by victims for MSGs. Hansen was paid for signing the first false contract through a series of interstate wire transfers into an account he set up in the name of a consulting company. Hansen knew the money he received came from payments by DC Solar investors, and that DC Solar was deceiving them to induce those payments.
On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff has pleaded guilty to conspiracy to commit an offense against the United States and money laundering, and is scheduled to be sentenced on June 28, 2022.
On Nov. 16, 2021, Joseph W. Bayliss, 46, of Martinez, was sentenced to three years in prison and ordered to pay $481.3 million in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 55, of Clayton, was sentenced to six years in prison and ordered to pay $624 million.
Other defendants have pleaded guilty to criminal offenses related to the fraud scheme and are scheduled for sentencing: Ronald J. Roach, 55, of Walnut Creek, is scheduled to be sentenced on June 28, 2022; and Ryan Guidry, 45, of Pleasant Hill, is scheduled to be sentenced on June 7, 2022.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys Christopher S. Hales and Kevin C. Khasigian are prosecuting the case.
Paulette Carpoff and Guidry face a maximum statutory penalty of 15 years in prison. Roach faces a maximum statutory penalty of 10 years prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney's Office and Fulton County District Attorney launch Summer Initiative to support youth as part of violence-prevention strategyRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office launched the second annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Mentorship Program”) at the Atlanta Police Foundation’s At-Promise Center.
“Last summer’s intensive mentoring efforts yielded a success rate of nearly 90%,” said U.S. Attorney Ryan K. Buchanan. “This type of structured and deliberate engagement is proven to decrease recidivism and bolsters community safety. We are pleased to partner with community leaders, law enforcement and families to support these youth, get them connected to college and career resources, and keep them actively engaged for the summer.”
“Credible Messenger makes Fulton County safer. By matching at-risk youth with mentors who can help them avoid a life trapped in the criminal justice system, we save lives that would be lost to crime or to incarceration. Our partnership with the U.S. Attorney and the U.S Department of Justice to bring this program to Fulton County is a great example of what partnership and cooperation can do for the citizens we serve.”
“The successful transition of youth into their community is one of our top priorities,” said Tyrone Oliver, Commissioner of the Department of Juvenile Justice. “Our partnership with the Northern District of Georgia’s Project Safe Neighborhoods has demonstrated improved outcomes for justice-involved youth, including reducing recidivism.”
The Summer Mentorship Program will engage up to 25 youth between the ages of 14 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and evidenced-based, cognitive-behavioral, life-skills sessions utilizing the Forward Thinking and Project EGRESS Curriculum. Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from CHRIS 180, formerly known as CHRIS Kids.
This initiative is being implemented by a team of Southeast Credible Messengers, in connection with the PSN Prevention and Reentry strategy of the U.S. Attorney’s Office. Southeast Credible Messengers are a Community-Based Collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative includes the Offender Alumni Association, Inc. (OAA), Freedom is a Choice, Inc., EGRESS Consultants & Services, LLC., and Mothers Against Gang Violence, Inc.
We would also like to thank leadership from the Georgia Department of Juvenile Justice, Office of Reentry Services, Fulton County Juvenile Court and the local business community for their continued partnership and support of the summer program.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two St. Joseph Men Plead Guilty to Heroin Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two St. Joseph, Mo., men have pleaded guilty to their roles in a conspiracy to distribute heroin and to illegally possessing firearms.
Franklin T. Hicks Jr., also known as “Frankie,” 41, pleaded guilty today before U.S. District Judge Greg Kays to participating in a conspiracy to distribute one kilogram or more of heroin and to possessing firearms in furtherance of a drug-trafficking crime. Co-defendant Roderick A. Hughes, 48, pleaded guilty on Friday, May 27, to his role in the drug-trafficking conspiracy and to one count of possessing a firearm in furtherance of a drug-trafficking crime.
Hicks and Hughes admitted they participated in the heroin conspiracy from Sept. 1, 2019, to March 26, 2021.
Hicks was arrested outside of a hotel in St. Joseph on Jan. 22, 2021. He was in possession of 35.8 grams of heroin and $2,687 in cash. Officers also found a loaded Rock Island Armory .380-caliber handgun under the driver’s seat of his car and a Ruger 9mm handgun in the glovebox.
Law enforcement officers executed a search warrant at Hughes’s apartment on Feb. 23, 2021, with both Hicks and Hughes present. They found a silver revolver on the kitchen table. They also found a loaded Glock 9mm handgun on a nightstand in the bedroom, a Stoeger 9mm handgun and a Jennings Bryco 9mm handgun on a shelf in the bedroom, and a black safe under the bed that contained 23.4 grams of heroin and $4,703 in cash. Officers also searched the garage and found three plastic bags with a total of 96.3 grams of heroin hidden in the rafters.
Co-defendant Harvey E. Johnson, 48, of Kansas City, Mo., pleaded guilty on Aug. 4, 2021, to participating in the conspiracy to distribute heroin. Johnson, who was in possession of approximately 51 grams of heroin at the time of his arrest, admitted that the drug-trafficking conspiracy involved at least two kilograms of heroin.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Orange County Tax Preparers Charged in Long-Running Tax and Benefit Fraud Scheme Orchestrated by Corrupt Social WorkerRead the Press Release
SANTA ANA, California – Two Orange County tax preparers were arraigned today on federal charges alleging they participated in a scheme orchestrated by a corrupt social worker who stole his clients’ identities to fraudulently obtain tax refunds, welfare benefits and credit cards.
Anton Nguyen, 53, of Fountain Valley, and Rosemary Pham, 64, of Midway City, were summonsed to appear in United States District Court in Santa Ana, where this morning they pleaded not guilty to the criminal charges against them. A July 26 trial date has been scheduled for both defendants, who remain out of custody.
Nguyen and Pham were charged in separate indictments filed on May 11 with conspiracy to defraud the United States. Nguyen also is charged with three counts of making false claims against the United States for the payment of federal income tax refunds, and Pham additionally is charged with 10 counts of aiding and advising the filing of false tax returns.
Nguyen and Pham allegedly conspired with John Tran, who is believed to be either 56 or 60, of Fountain Valley, an Orange County Social Services Agency case worker from July 1994 to October 2018, who stole the Social Security numbers and other personal identifying information (PII) from his clients – many of them recent immigrants.
From August 2010 to June 2019, Tran and his co-conspirators used the stolen information to fraudulently obtain money from the federal government, the State of California, the County of Orange and financial institutions.
Nguyen, who owned and operated the Westminster-based Century Travel & Tax, and Pham, the owner and operator of Victory Tax Service in Westminster, allegedly used the stolen identities that Tran provided to create fraudulent Forms 1099-MISC purporting to show payments made to the identity theft victims by companies, including those controlled by Tran and other co-conspirators.
The defendants allegedly prepared and filed federal income tax returns using the Tran-provided stolen identities. Nguyen and Pham used the purported payments on the fraudulent Forms 1099 as income to the identify theft victims, making them appear to qualify for tax credits, including the Earned Income Tax Credit and the Child Tax Credit.
In turn, the reported payments to the identity theft victims were used by Nguyen’s and Pham’s clients to offset business revenues and reduce the taxes they owed by making it appear that the identity theft victims worked for them, according to the indictments. In exchange for the fabrication of the Forms 1099, Nguyen’s and Pham’s clients allegedly paid them a fee.
Tran and his co-conspirators filed 433 tax returns using PII belonging to other individuals, generating at least $973,153 in fraudulently obtained tax refund payments from the United States. Pham and Nguyen allegedly caused at least $1,378,092 and $4,054,802, respectively, in unpaid taxes to be incurred.
Pham also allegedly reported fraudulent Fuel Tax Credits for other taxpayers.
Indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Nguyen would face a statutory maximum sentence of 10 years in federal prison and Pham would face a statutory maximum sentence of eight years in federal prison.
Prior to these indictments, federal prosecutors secured seven guilty pleas to criminal charges connected to this scheme.
Tran pleaded guilty in November 2019 to conspiracy to defraud the United States with respect to claims, mail fraud and aggravated identity theft. Tran is scheduled to be sentenced on July 25, at which time he will face a statutory maximum sentence of 72 years in federal prison and a mandatory minimum sentence of two years in federal prison.
Chau Nguyen, 68, of Garden Grove; Sophie Thuy Nguyen, 47, of Westminster; Kevin Le, 56, of Anaheim Hills; Van Quach, 42, of Monterey Park; and Peter Duc Nguyen, 62, of Garden Grove, each have pleaded guilty to evasion of assessment of taxes and are scheduled to be sentenced later this year, at which time they will each face a statutory maximum sentence of five years in federal prison.
Thomas Nguyen, 61, of Santa Ana, pleaded guilty in June 2021 to one count of tax evasion. He was fined $30,000 and ordered to pay $133,796 in restitution.
IRS Criminal Investigation, with assistance from the Orange County District Attorney’s Office, investigated this matter.
Assistant United States Attorneys Bradley E. Marrett and Daniel H. Ahn of the Santa Ana Branch Office are prosecuting these cases.
Three Indicted for Large-Scale Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Three defendants were indicted by a federal grand jury today for their roles in a conspiracy to distribute large amounts of methamphetamine in southwest Missouri after law enforcement officers seized approximately 29 pounds of methamphetamine.
Brian E. Hall, 44, of Aurora, Mo., and Jacqueline Aldrete Bojorquez, 28, and Jeffrey L. Hughley, 37, whose addresses are unknown, were charged in a six-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed on May 2.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers executed a search warrant at Hall’s residence on April 28, 2022, as part of an ongoing methamphetamine investigation. Officers seized seven pounds of methamphetamine, a Taurus 9mm semi-automatic pistol, approximately $57,000 in cash, and drug paraphernalia used for the packaging and sale of methamphetamine.
When Bojorquez and Hughley arrived at Hall’s residence later that night, they were taken into custody as well. Officers searched their vehicle and found approximately 22 pounds of methamphetamine in the trunk and a Taurus 9mm semi-automatic pistol in the floorboard of the front passenger seat.
Today’s indictment charges Hall, Bojorquez, and Hughley with participating in a conspiracy to distribute methamphetamine in Barry County and elsewhere from Jan. 1 to April 28, 2022.
In addition to the drug-trafficking conspiracy, Hall is charged with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm. Bojorquez and Hughley are charged together in one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
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 Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozarks Drug Enforcement Team, the Barry County, Mo., Sheriff’s Office, and the Stone County, Mo., Sheriff’s Office.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Tarentum Man Pleads Guilty in Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH, PA – A resident of Tarentum, PA, pleaded guilty in federal court to a violation of the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
John William Montgomery, 33, of Tarentum, PA, pleaded guilty to an Indictment charging him, and 26 other codefendants, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Government advised the Court that the prosecution of Montgomery arose out of a two-year investigation into a drug trafficking organization whose members distributed kilograms of cocaine, sourced from Mexico, throughout the United States (in California, Arizona, Pennsylvania, and elsewhere). The Court was advised that co-conspirators obtained kilograms of cocaine in Los Angeles, California, and sent them to the Western District of Pennsylvania (and elsewhere) through the United States Postal Service. In connection with his guilty plea, Montgomery admitted that he received cocaine-laden parcels that were sent by co-conspirators from Los Angeles, California, to the Western District of Pennsylvania, and that he redistributed the kilograms of cocaine to co-conspirators and others. As part his plea, Montgomery admitted that the quantity of cocaine attributable to him, through his conduct and through the conduct of co-conspirators that was reasonably foreseeable to him, was at least 15 kilograms but less than 50 kilograms. The Court was advised that agents seized in excess of 100 kilograms of cocaine during its two-year investigation into the drug trafficking organization, of which Montgomery admitted to being a member.
Judge Hardy scheduled sentencing for October 5, 2022. The law provides for a total sentence of not less than 10 years and not more than life imprisonment, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (in Pittsburgh, PA) and the United States Postal Service – Office of Inspector General led the multi-agency investigation that included members of the Drug Enforcement Administration (in Los Angeles, CA; in Tucson, AZ; in New York, NY; in Nashville, TN; at the Special Operations Division; and in Mexico); the Pennsylvania Office of Attorney General; the Los Angeles Police Department; the Pittsburgh Bureau of Police; the Allegheny County Police Department; the New Castle Police Department; the Monessen Police Department; and the Pennsylvania State Police. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Stockton Man Sentenced to over Six Years in Prison for Firearms Trafficking and Methamphetamine DistributionRead the Press Release
SACRAMENTO, Calif. — Vin Whealen Gaines Jr., 33, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and five months in prison for conspiracy to deal firearms without a license and distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Oct. 10, 2019, and Oct. 22, 2020, Gaines and his co‑conspirators sold at least 13 firearms to a confidential source or an undercover agent on behalf of the Everybody Killa (EBK) street gang in Stockton. Many of the firearms were obtained out of state in Reno, Nevada, and some were obtained by a straw purchaser from federally licensed firearms dealers in Reno. Gaines also sold about an ounce of methamphetamine to a confidential source on Feb. 20, 2020.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Co-defendant Johnnie Earl Ross III, 21, of Stockton, was previously sentenced to six and a half years in prison for conspiracy to deal firearms without a license and possession of an unregistered machinegun.
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.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.