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14 July 2022
Former Benefit Plan Administrator Admits Tax Evasion and Kickback SchemeRead the Press Release
NEWARK, N.J. – A former benefit plan administrator today admitted engaging in multiple years of tax evasion and a kickback scheme related to his role as administrator of two union related employee benefit plans, U.S. Attorney Philip R. Sellinger announced.
Jose Santa Maria, aka “Joe”, 64, North Haledon, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to a six-count information charging him with five counts of tax evasion and one count of paying kickbacks related to an employee benefit plan.
According to documents filed in this case and statements made in court:
Santa Maria was the plan administrator for a health fund and a training fund, both related to a labor union. At the same time, he was also employed by an attorney, who was serving as counsel for the two union funds. From at least 2013 through 2019, Santa Maria misappropriated in excess of $750,000 in benefit plan funds and then failed to report any of it to the IRS or pay the associated income taxes. Santa Maria also paid at least $50,000 to the attorney to influence that attorney’s actions with the executive board for the benefit plans.
The five counts of tax evasion each carry a maximum penalty of five years in prison and a $100,000 fine. The count of paying kickbacks related to an employee benefit plan, carries a maximum penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 15, 2022.
U.S. Attorney Sellinger credited investigators of the Department of Labor, Employee Benefits Security Administration (EBSA), under the direction of Regional Director of the New York Regional Office Thomas Licetti; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents of the Port Authority of New York and New Jersey, under the direction of John Gay, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Defense counsel Steven D. Altman Esq., New Brunswick, New Jersey
Felony Lane Gang Member Sentenced to Federal Prison for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Lauderdale Lakes, Florida man was sentenced to federal prison today for his leadership role in a bank fraud and identity theft scheme targeting female victims in the Portland Metropolitan Area.
Delvin Mills, 30, was sentenced to 55 months in federal prison and three years’ supervised release. Mills was also ordered to pay $98,733 in restitution.
According to court documents, Mills was a member of the Felony Lane Gang, an interstate criminal organization based in Florida that traveled to locations throughout the U.S. to commit vehicle break-in and fraud sprees. The organization targeted female victims who would leave their purses, wallets, and valuables in parked cars. After victims exited their vehicles—often to drop off children, run errands, or visit a gym—Felony Lane Gang members would break into the vehicles to steal targeted items. After the theft, the gang members quickly deployed associates to conduct fraudulent bank or merchant transactions using their victims’ stolen identification, checks, and credit or debit cards.
In the fall of 2019, Mills led a group of individuals who traveled to Portland to target local victims. Once Mills and his accomplices stole items from a vehicle, they checked to see if one of several female co-conspirators resembled the victim. If one of their female co-conspirators could impersonate the victim, they would attempt to cash fraudulent checks written in the impersonated victim’s name. The co-conspirators would cash checks at various local banks, using the outer-most lane of each bank’s drive-up teller window to avoid detection.
Investigators identified 32 vehicle thefts and 22 instances of bank fraud committed during Mills’ most recent known Oregon crime spree. In total, this spree resulted in a financial loss of more than $98,000. After Mills left Portland, he and a co-conspirator—Damian Fletcher, 27, of Fort Lauderdale, Florida—travelled to Denver, Colorado where they continued breaking into cars and stealing identities.
On June 6, 2020, a federal grand jury in Portland returned a 14-count superseding indictment charging Mills, Fletcher, and four co-defendants with conspiring to commit bank fraud, bank fraud, and aggravated identity theft. On February 24, 2021, Mills pleaded guilty to conspiring to commit bank fraud and aggravated identity theft.
After Mills pleaded guilty and was released on supervision conditions pending sentencing, he was arrested in Nevada for again breaking into cars. One month after his Nevada arrest, he was arrested in Southern Illinois for perpetrating a scheme similar to the one he had operated in Oregon. Mills’ arrest in Illinois led to a second federal conviction for which he will be sentenced on July 20, 2022.
On January 7, 2021, Fletcher pleaded guilty to conspiring to commit bank fraud and aggravated identity theft. On May 3, 2021, he was sentenced to three years in federal prison and three years’ supervised release.
Co-defendants Megan Spurlock, 28, of Washington State; Linda Marie Lupo, 53, of Deerfield, Florida; and Justin Curry, 29, of Fort Lauderdale, have all pleaded guilty and were sentenced for their roles in the scheme.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the West Linn Police Department, Tualatin Police Department, and Clark County Sheriff’s Office. It was prosecuted by Seth D. Uram and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.
Federal Inmate Sentenced to Serve an Additional Year in Federal Prison for Indecent Exposure to Prison Staff MembersRead the Press Release
OKLAHOMA CITY – Yesterday, a federal judge sentenced DONTE EARL GRIFFIN, 36, of Cincinnati, Ohio, to serve an additional 12 months and 1 day in federal prison for Indecent Exposure, announced U.S. Attorney Robert J. Troester.
On September 16, 2020, a federal grand jury returned a one-count Indictment that charged Griffin with Indecent Exposure while he was an inmate at the Federal Transfer Center (FTC) in Oklahoma City, Oklahoma. According to evidence presented at a bench trial in April 2021, Griffin willfully exposed his genitalia and intermittently engaged in masturbatory acts in front of two female FTC employees. The trial lasted two hours, after which U.S. District Court Judge Timothy DeGiusti found Griffin guilty of Indecent Exposure.
At sentencing, Judge DeGiusti sentenced Griffin to serve 12 months and 1 day in federal prison. This sentence will run consecutive to Griffin’s current sentence in June 2015 in the Eastern District of Kentucky to serve 10 years in federal prison for being a convicted felon in possession of a firearm. Federal law prohibits convicted felons from possessing firearms and ammunition. In announcing the sentence in the Oklahoma indecent exposure case, Judge DeGiusti cited, among other things, the serious nature of the offense, Griffin’s criminal history, and the impact the incident had on the female Bureau of Prisons employees. Judge DeGiusti also ordered Griffin to serve three years of supervised release upon release from prison.
This case was the result of an investigation by the Special Investigative Services at the Federal Transfer Center and the FBI Oklahoma City Field Office. Assistant U.S. Attorneys Ashley L. Altshuler and Travis Leverett prosecuted the case.
Reference is made to public filings for more information.
Federal Grand Jury Indicts Accused Tops Shooter on Federal Hate Crimes and Firearms Charges in Buffalo, New YorkRead the Press Release
A federal grand jury today returned a 27-count indictment charging Payton Gendron, 19, of Conklin, New York, with 14 violations of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act (Shepard-Byrd Act) and 13 firearms offenses in connection with the mass shooting at the Tops grocery store on Jefferson Avenue in Buffalo, New York. The announcement was made by Attorney General Merrick B. Garland, Assistant Attorney General Kristen Clarke for the Justice Department's Civil Rights Division, U.S. Attorney Trini E. Ross for the Western District of New York, and Special Agent-in-Charge Stephen Belongia of the FBI Buffalo Field Office.
The indictment alleges that on or about May 14, Gendron opened fire with a Bushmaster XM rifle and shot multiple individuals in and around the Tops grocery store, which resulted in the deaths of 10 Black people, as well as injury to three others. The indictment charges that Gendron violated the Shepard-Byrd Act by willfully causing the death of the victims because of their actual and perceived race and color.
In total, the 27-count indictment charges Gendron with 10 counts of hate crimes resulting in death, three counts of hate crimes involving an attempt to kill three injured individuals, and one hate crimes count alleging that Gendron attempted to kill additional Black people in and around the Tops grocery store. The indictment also charges Gendron with 13 counts of using, carrying, or discharging a firearm in relation to the hate crimes, and seeks forfeiture of items, including the weapon used in the shooting. The indictment further includes special findings alleging, among other things, that Gendron committed the offense after substantial planning and premeditation to commit an act of terrorism.
“Today, a grand jury has indicted Payton Gendron with hate crime and firearms offenses following the horrific attack on the Black community of Buffalo that killed 10 people and injured three others on May 14, 2022,” said Attorney General Garland. “The Justice Department fully recognizes the threat that white supremacist violence poses to the safety of the American people and American democracy. We will continue to be relentless in our efforts to combat hate crimes, to support the communities terrorized by them, and to hold accountable those who perpetrate them.”
Upon conviction, the charges in the indictment carry a maximum penalty of life imprisonment or the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Should the Attorney General determine that the circumstances of the offense are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. Gendron is currently in state custody pending state criminal charges.
The indictment is the result of an investigation by the FBI Buffalo and Albany Field Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Buffalo Office; the Buffalo Police Department; the New York State Police; and the Erie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Joseph M. Tripi, Brendan T. Cullinane, and Brett A. Harvey of the Western District of New York and Trial Attorney Shan Patel of the Justice Department’s Civil Rights Division.
More information about the Department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the Department’s resources for law enforcement, community groups, researchers, and others are available at www.justice.gov/hatecrimes.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
Federal Grand Jury Indicts Accused Tops Shooter on Federal Hate Crimes and Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – A federal grand jury today returned a 27-count indictment charging Payton Gendron, 19, of Conklin, New York, with 14 violations of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act (Shepard-Byrd Act) and 13 firearms offenses in connection with the mass shooting at the Tops grocery store on Jefferson Avenue in Buffalo, New York. The announcement was made by Attorney General Merrick B. Garland, Assistant Attorney General Kristen Clarke for the Civil Rights Division, U.S. Attorney Trini E. Ross for the Western District of New York, and Special Agent-in-Charge Stephen Belongia of the FBI Buffalo Field Office.
The indictment alleges that on or about May 14, 2022, Gendron opened fire with a Bushmaster XM rifle and shot multiple individuals in and around the Tops grocery store, which resulted in the deaths of 10 Black people, as well as injury to three others. The indictment charges that Gendron violated the Shepard-Byrd Act by willfully causing the death of the victims because of their actual and perceived race and color.
In total, the 27-count indictment charges Gendron with 10 counts of hate crimes resulting in death, three counts of hate crimes involving an attempt to kill three injured individuals, and one hate crimes count alleging that Gendron attempted to kill additional Black people in and around the Tops grocery store. The indictment also charges Gendron with 13 counts of using, carrying, or discharging a firearm in relation to the hate crimes, and seeks forfeiture of items, including the weapon used in the shooting. The indictment further includes special findings alleging, among other things, that Gendron committed the offense after substantial planning and premeditation to commit an act of terrorism.
“Today, a grand jury has indicted Payton Gendron with hate crime and firearms offenses following the horrific attack on the Black community of Buffalo that killed 10 people and injured three others on May 14, 2022,” said Attorney General Merrick B. Garland. “The Justice Department fully recognizes the threat that white supremacist violence poses to the safety of the American people and American democracy. We will continue to be relentless in our efforts to combat hate crimes, to support the communities terrorized by them, and to hold accountable those who perpetrate them.”
Upon conviction, the charges in the indictment carry a maximum penalty of life imprisonment or the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Should the Attorney General determine that the circumstances of the offense are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. Gendron is currently in state custody pending state criminal charges.
The indictment is the result of an investigation by the FBI Buffalo and Albany Field Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Buffalo Office; the Buffalo Police Department; the New York State Police and the Erie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Joseph M. Tripi, Brendan T. Cullinane and Brett A. Harvey of the Western District of New York and Trial Attorney Shan Patel of the Justice Department’s Civil Rights Division.
More information about the department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the department’s resources for law enforcement, community groups, researchers, and others, are available at www.justice.gov/hatecrimes.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
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Federal Charges Brought Against Stanislaus County Men After 440 Pounds of Methamphetamine SeizedRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Hugo Vigil Villagomez, 42, of Oakdale, and Serafin Villagomez Vigil, 27, of Riverbank, charging them with possessing and conspiring to possess with intent to distribute 500 grams or more of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 30, 2022, Villagomez and his nephew Vigil attempted to sell 440 pounds of methamphetamine to an undercover law enforcement officer. On the day of the deal, Villagomez and Vigil arrived at a parking lot in Salida, where they met with the undercover officer. They had brought with them several suitcases stuffed full of hundreds of pounds of methamphetamine. When the pair unzipped the suitcases, law enforcement personnel moved in and arrested them.
This case is the product of an investigation by the Drug Enforcement Administration and the Stanislaus County Sheriff’s Department Special Investigations Unit. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, the defendants each face a mandatory minimum prison sentence of 10 years in prison and a maximum sentence of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
East Haven Man Pleads Guilty to Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LUIS SALAMAN, also known as “J,” “Lou Benz,” “Louie Benz” and “Benz,” 20, of East Haven, pleaded guilty today via videoconference before U.S. Magistrate Judge Thomas O. Farrish in Hartford to possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on September 22, 2020, New Haven Police officers arrested Salaman on an outstanding state arrest warrant after he entered a store on the corner of Ferry Street and Sanford Street in New Haven. At the time of his arrest, Salaman possessed a loaded Sig Sauer 1911 .45 caliber firearm with an obliterated serial number, and heroin and marijuana that he intended to distribute.
Salaman has been detained since his federal arrest on October 2, 2020.
Salaman is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on October 17, 2022, at which time he faces a mandatory term of imprisonment of five years and a maximum term of imprisonment of life.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Natasha Freismuth.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
East Bay Mail Bomber Sentenced to 40 YearsRead the Press Release
SAN FRANCISCO – Ross Gordon Laverty, convicted of multiple felonies for mailing two improvised explosive devices with the intent to injure or kill his targets, was sentenced today to 40 years (480 months) in federal prison, announced United States Attorney Stephanie M. Hinds and U.S. Postal Inspection Service San Francisco Division Acting Inspector-In-Charge Kevin Rho. United States District Judge William H. Orrick handed down the sentence.
A federal jury convicted Laverty, 61, of Oakland, on October 14, 2020, of mailing explosive devices through the U.S. mail on two occasions with the intent to kill or injure the addressees. An explosives expert testified at trial that the improvised explosive devices (IEDs) were victim-activated devices “intended to go off when the victim causes it to go off” by opening the package. Both IEDs contained a nickel coin epoxied to the end of a pipe that was designed to shoot “off like a projectile” in a manner “just like a bullet would out of a gun,” thereby injuring or killing the victims “pretty easily.”
Revenge motivated Laverty’s mailings. Trial evidence established that he sent the first package to retaliate against a corrections officer who strip-searched Laverty while he was incarcerated at a San Mateo county jail in April of 2014. Evidence showed Laverty sent the second package as retribution against an Alameda Police Department officer involved in a probation search of Laverty’s residence in October of 2013. The officer found contraband during that search and arrested Laverty.
Laverty missed his intended targets and injured others instead. Trial evidence showed that Laverty mailed the first package to the wrong person, directing it to an East Palo Alto man employed as a Whole Foods grocery store clerk who happened to share the same name as Laverty’s intended victim, the San Mateo corrections officer. The package arrived via U.S. mail at the victim’s residence. Its return address listed a purported jewelry store in Palo Alto. On October 19, 2017, the victim opened the package while he was in his backyard. The package detonated with a loud blast. The nickel epoxied to the end of the device’s copper pipe shot off, blowing a hole in the backyard fence and ultimately landing in a neighbor’s yard. The victim was left injured and in shock, with bleeding hands and blisters on his stomach. To this day the victim suffers ringing in his ears, cramping in his hands, and trouble concentrating.
The intended target of Laverty’s second mail bomb was the Alameda police officer who had arrested Laverty. On November 24, 2017, the officer’s wife returned home to find a U.S. postman had delivered a package addressed to her husband. The package listed a return address for a non-existent jewelry store in Berkeley. As the wife began to open the package, she saw wires inside. She quickly threw it. The package exploded, filling the house with smoke and debris. The victim’s head was injured, and an ambulance rushed her to a hospital where she was admitted. Three years later, the victim testified at trial that she still experiences head pains and ringing in her ears.
A grand jury returned a superseding indictment against Laverty on May 21, 2019, charging him with two counts of mailing an explosive devise with the intent to injure or kill, in violation of 18 U.S.C. § 1716(a) and (j)(2); two counts of possession of an unregistered firearm (explosive device), in violation of 26 U.S.C. § 5861(d); and two counts of using an explosive during the commission of a felony, in violation of 18 U.S.C. § 844(h)(1) and (2).
A federal jury found Laverty guilty on all counts following his October 2020 trial.
“My heart goes out to the innocent victims of these horrific acts,” said United States Attorney Stephanie M. Hinds. “Ross Laverty not only injured the victims, he put mail carriers and handlers and numerous others at risk of serious injury and death. The public must be protected from such reckless, violent crimes. I thank our law enforcement partners, both federal and local, who worked long and hard to solve and prosecute these crimes.”
“This desperate and shocking attack on our partners in law enforcement did real harm to customers of the U.S. Postal Service,” said Acting Inspector-in-Charge Kevin Rho of the U.S. Postal Inspection Service, San Francisco Division. “Today’s sentence demonstrates our unity of purpose in protecting the public from dangerous items in the mail. I want to thank ATF, FBI, the San Mateo County Crime Laboratory, Verdugo Regional Crime Laboratory, San Mateo County Sheriff’s Office, East Palo Alto Police Department, Alameda Police Department, Alameda County Sheriff’s Department, and Oakland Police Department for their invaluable teamwork in bringing this criminal to justice.”
In addition to the 40 year sentence, United States District Judge Orrick imposed a three year term of supervision following Laverty’s release from prison and ordered that he pay restitution to his victims. Laverty was in custody at sentencing and begins serving his sentence immediately.
Assistant U.S. Attorney Barbara J. Valliere and former Assistant U.S. Attorney Elise LaPunzina of the Special Prosecutions Section of the United States Attorney’s Office prosecuted the case, with the assistance of Helen Yee. The prosecution is the result of an investigation by the U.S. Postal Inspection Service with assistance from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Palo Alto Police Department, the San Mateo County Sheriff’s Department, Alameda Police Department, Oakland Police Department, Alameda County Sheriff’s Department, and the San Mateo County Crime Laboratory and Verdugo Regional Crime Laboratory.
Deputy Attorney General Lisa O. Monaco Directs U.S. Attorneys and Law Enforcement Agencies to Prioritize Violent Crime in Indian CountryRead the Press Release
Today, during remarks at the Trilateral Working Group on Violence Against Indigenous Women and Girls, Deputy Attorney General Lisa O. Monaco announced a directive to all U.S. Attorneys and law enforcement component heads addressing public safety in Indian country, including violence directed at indigenous women, youth and children.
In a memorandum, Deputy Attorney General Monaco declared it a priority of the Department of Justice to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly, the high rates of indigenous persons reported missing. The memorandum directs each U.S. Attorney with Indian country jurisdiction — along with their law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the FBI and the U.S. Marshals Service (USMS) — to update and develop new plans for addressing public safety in Indian country.
“With this memorandum, we are reaffirming the department’s unwavering commitment to promoting public safety in Indian Country and to respecting Tribal sovereignty,” said Deputy Attorney General Lisa O. Monaco. “Tribes know best how to make their communities safer, and Tribal engagement has thus been the cornerstone of the department’s review of its policies and procedures. Federal law enforcement agencies will continue to work diligently with our Tribal partners in support of public safety in Indian Country.”
In November 2021, the department established a Steering Committee dedicated to marshalling the department’s resources and personnel to address public safety and the issues of missing or murdered indigenous persons. The Steering Committee undertook a review — in close consultation with Tribal leaders and stakeholders — of the department’s relevant guidance, policies and practices to improve the law enforcement response in Indian country.
Today’s memorandum marks the first guidance from the Deputy Attorney General to U.S. Attorneys in Indian country since 2010, when then-Deputy Attorney General David Ogden required each U.S. Attorney with Indian country jurisdiction to establish a structure and plan for addressing public safety in Indian country. Deputy Attorney General Monaco’s memorandum sets forth needed updates, which account for significant legal and legislative developments in the intervening decade, including the Tribal Law and Order Act of 2010, Savanna’s Act, the Not Invisible Act of 2019 and the 2013 and 2022 reauthorizations of the Violence Against Women Act. The memorandum also recognizes that the department’s law enforcement components are essential to investigating crimes in Indian country, and it directs those agencies to adopt their own guidelines, policies and protocols to address the unique public safety challenges in Indian country.
In particular, the memorandum instructs department prosecutors and law enforcement officers to update their operational plans, policies, and protocols to:
- Coordinate with Tribal, State and local law enforcement officers, as well as other federal agencies;
- Support victims, survivors and their families in a victim-centered and culturally-appropriate manner; and
- Address cases, including unresolved cases, involving missing or murdered indigenous people.
The memorandum also directs U.S. Attorneys Offices and law enforcement agencies to engage with Tribes to better address priority public safety issues, including combatting violence against women, youth and children and addressing the devastating consequences of drug trafficking and substance use disorder in Indian country.
You can read the Deputy Attorney General’s full remarks to the Trilateral Working Group here and the full text of the memorandum here.
Deputy Attorney General Lisa Monaco Directs U.S. Attorneys and Law Enforcement Agencies to Prioritize Violent Crime in Indian CountryRead the Press Release
WASHINGTON – During remarks at the Trilateral Working Group on Violence Against Indigenous Women and Girls, Deputy Attorney General Lisa O. Monaco announced a directive to all U.S. Attorneys and law enforcement component heads addressing public safety in Indian country, including violence directed at indigenous women, youth and children. U.S. Attorney Cole Finegan contacted Colorado’s tribal leaders to discuss implementation of this new directive and looks forward to working with them to make Indian country safer for everyone.
In a memorandum, Deputy Attorney General Monaco declared it a priority of the Department of Justice to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly, the high rates of indigenous persons reported missing. The memorandum directs each U.S. Attorney with Indian country jurisdiction — along with their law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the U.S. Marshals Service (USMS) — to update and develop new plans for addressing public safety in Indian country.
“With this memorandum, we are reaffirming the department’s unwavering commitment to promoting public safety in Indian Country and to respecting Tribal sovereignty,” said Deputy Attorney General Lisa O. Monaco. “Tribes know best how to make their communities safer, and Tribal engagement has thus been the cornerstone of the department’s review of its policies and procedures. Federal law enforcement agencies will continue to work diligently with our Tribal partners in support of public safety in Indian Country.”
In November 2021, the department established a Steering Committee dedicated to marshalling the department’s resources and personnel to address public safety and the issues of missing or murdered indigenous persons. The Steering Committee undertook a review — in close consultation with Tribal leaders and stakeholders — of the department’s relevant guidance, policies and practices to improve the law enforcement response in Indian country.
Today’s memorandum marks the first guidance from the Deputy Attorney General to U.S. Attorneys in Indian country since 2010, when then-Deputy Attorney General David Ogden required each U.S. Attorney with Indian country jurisdiction to establish a structure and plan for addressing public safety in Indian country. Deputy Attorney General Monaco’s memorandum sets forth needed updates, which account for significant legal and legislative developments in the intervening decade, including the Tribal Law and Order Act of 2010, Savanna’s Act, the Not Invisible Act of 2019 and the 2013 and 2022 reauthorizations of the Violence Against Women Act. The memorandum also recognizes that the department’s law enforcement components are essential to investigating crimes in Indian country, and it directs those agencies to adopt their own guidelines, policies, and protocols to address the unique public safety challenges in Indian country.
In particular, the memorandum instructs department prosecutors and law enforcement officers to update their operational plans, policies, and protocols to:
- Coordinate with Tribal, State and local law enforcement officers, as well as other federal agencies;
- Support victims, survivors, and their families in a victim-centered and culturally-appropriate manner; and
- Address cases, including unresolved cases, involving missing or murdered indigenous people.
The memorandum also directs U.S. Attorneys Offices and law enforcement agencies to engage with Tribes to better address priority public safety issues, including combatting violence against women, youth, and children and addressing the devastating consequences of drug trafficking and substance use disorder in Indian country.
Deputy Attorney General Lisa O. Monaco Delivers Remarks at the Closing Session of the Fourth Convening of the Trilateral Working Group on Violence Against Indigenous Women and Girls | OPA | Department of Justice
Deputy Attorney General Lisa O. Monaco Directs U.S. Attorneys and Law Enforcement Agencies to Prioritize Violent Crime in Indian Country | OPA | Department of Justice
Deputy Attorney General Lisa Monaco Directs U.S. Attorneys and Law Enforcement Agencies to Prioritize Violent Crime in Indian CountryRead the Press Release
WASHINGTON – Today, during remarks at the Trilateral Working Group on Violence Against Indigenous Women and Girls, Deputy Attorney General Lisa O. Monaco announced a directive to all U.S. Attorneys and law enforcement component heads addressing public safety in Indian country, including violence directed at indigenous women, youth and children.
In a memorandum, Deputy Attorney General Monaco declared it a priority of the Department of Justice to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly, the high rates of indigenous persons reported missing. The memorandum directs each U.S. Attorney with Indian country jurisdiction — along with their law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the FBI and the U.S. Marshals Service (USMS) — to update and develop new plans for addressing public safety in Indian country.
“With this memorandum, we are reaffirming the department’s unwavering commitment to promoting public safety in Indian Country and to respecting Tribal sovereignty,” said Deputy Attorney General Lisa O. Monaco. “Tribes know best how to make their communities safer, and Tribal engagement has thus been the cornerstone of the department’s review of its policies and procedures. Federal law enforcement agencies will continue to work diligently with our Tribal partners in support of public safety in Indian Country.”
In November 2021, the department established a Steering Committee dedicated to marshalling the department’s resources and personnel to address public safety and the issues of missing or murdered indigenous persons. The Steering Committee undertook a review — in close consultation with Tribal leaders and stakeholders — of the department’s relevant guidance, policies and practices to improve the law enforcement response in Indian country.
Today’s memorandum marks the first guidance from the Deputy Attorney General to U.S. Attorneys in Indian country since 2010, when then-Deputy Attorney General David Ogden required each U.S. Attorney with Indian country jurisdiction to establish a structure and plan for addressing public safety in Indian country. Deputy Attorney General Monaco’s memorandum sets forth needed updates, which account for significant legal and legislative developments in the intervening decade, including the Tribal Law and Order Act of 2010, Savanna’s Act, the Not Invisible Act of 2019 and the 2013 and 2022 reauthorizations of the Violence Against Women Act. The memorandum also recognizes that the department’s law enforcement components are essential to investigating crimes in Indian country, and it directs those agencies to adopt their own guidelines, policies and protocols to address the unique public safety challenges in Indian country.
In particular, the memorandum instructs department prosecutors and law enforcement officers to update their operational plans, policies, and protocols to:
- Coordinate with Tribal, State and local law enforcement officers, as well as other federal agencies;
- Support victims, survivors and their families in a victim-centered and culturally-appropriate manner; and
- Address cases, including unresolved cases, involving missing or murdered indigenous people.
The memorandum also directs U.S. Attorneys Offices and law enforcement agencies to engage with Tribes to better address priority public safety issues, including combatting violence against women, youth and children and addressing the devastating consequences of drug trafficking and substance use disorder in Indian country.
You can read the full text of the memorandum here.
Deputy Attorney General Lisa Monaco Directs U.S. Attorneys and Law Enforcement Agencies to Prioritize Violent Crime in Indian CountryRead the Press Release
WASHINGTON – Today, during remarks at the Trilateral Working Group on Violence Against Indigenous Women and Girls, Deputy Attorney General Lisa O. Monaco announced a directive to all U.S. Attorneys and law enforcement component heads addressing public safety in Indian country, including violence directed at indigenous women, youth and children.
In a memorandum, Deputy Attorney General Monaco declared it a priority of the Department of Justice to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly, the high rates of indigenous persons reported missing. The memorandum directs each U.S. Attorney with Indian country jurisdiction — along with their law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the FBI and the U.S. Marshals Service (USMS) — to update and develop new plans for addressing public safety in Indian country.
“With this memorandum, we are reaffirming the department’s unwavering commitment to promoting public safety in Indian Country and to respecting Tribal sovereignty,” said Deputy Attorney General Lisa O. Monaco. “Tribes know best how to make their communities safer, and Tribal engagement has thus been the cornerstone of the department’s review of its policies and procedures. Federal law enforcement agencies will continue to work diligently with our Tribal partners in support of public safety in Indian Country.”
In November 2021, the department established a Steering Committee dedicated to marshalling the department’s resources and personnel to address public safety and the issues of missing or murdered indigenous persons. The Steering Committee undertook a review — in close consultation with Tribal leaders and stakeholders — of the department’s relevant guidance, policies and practices to improve the law enforcement response in Indian country.
Today’s memorandum marks the first guidance from the Deputy Attorney General to U.S. Attorneys in Indian country since 2010, when then-Deputy Attorney General David Ogden required each U.S. Attorney with Indian country jurisdiction to establish a structure and plan for addressing public safety in Indian country. Deputy Attorney General Monaco’s memorandum sets forth needed updates, which account for significant legal and legislative developments in the intervening decade, including the Tribal Law and Order Act of 2010, Savanna’s Act, the Not Invisible Act of 2019 and the 2013 and 2022 reauthorizations of the Violence Against Women Act. The memorandum also recognizes that the department’s law enforcement components are essential to investigating crimes in Indian country, and it directs those agencies to adopt their own guidelines, policies and protocols to address the unique public safety challenges in Indian country.
In particular, the memorandum instructs department prosecutors and law enforcement officers to update their operational plans, policies, and protocols to:
- Coordinate with Tribal, State and local law enforcement officers, as well as other federal agencies;
- Support victims, survivors and their families in a victim-centered and culturally-appropriate manner; and
- Address cases, including unresolved cases, involving missing or murdered indigenous people.
The memorandum also directs U.S. Attorneys Offices and law enforcement agencies to engage with Tribes to better address priority public safety issues, including combatting violence against women, youth and children and addressing the devastating consequences of drug trafficking and substance use disorder in Indian country.
You can read the full text of the memorandum here.
Crafton Man with Prior Federal Conviction for Possession of Child Pornography Indicted AgainRead the Press Release
PITTSBURGH - A resident of Crafton, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
The one-count Indictment, returned on July 12, named Timothy Bryner, age 65, as the sole defendant.
According to the Indictment, from in and around June 2021 to in and around March 2022, Bryner did knowingly possess material depicting the sexual exploitation of a minor. Bryner is on federal supervised release from a previous Child Sexual Abuse Materials possession conviction for which he served 100 months in prison.
The law provides for a maximum total sentence of ten years in prison, fine of not more than $250,000.00, and a term of supervised release of at least five years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Sentenced to 80 Months in Prison for Firearm Possession During Drug CrimeRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson yesterday sentenced Andrew Schwab, 43, of Waianae, Hawaii, to 80 months in prison for possessing a firearm in furtherance of methamphetamine trafficking. Judge Watson took note that Schwab had a lengthy criminal history for burglary, theft, and escape, and he found Schwab’s conduct toward the Honolulu Police Department (“HPD”) officers who arrested him arguably the most serious aspect of the offense.
According to court documents and information presented in court, on August 21, 2018, HPD officers approached Schwab—a convicted felon with an outstanding state parole retake warrant—at a gas station. Instead of complying with the officers’ attempt to apprehend him, Schwab jumped back into his car and intentionally rammed it into the front of a police car with two police officers in it. Schwab then reached for the floorboard of the vehicle where he had a loaded firearm, a Glock 19, 9mm pistol. HPD officers forcibly removed Schwab from the vehicle and then recovered the Glock 19 pistol, which Schwab later admitted he possessed to protect his drugs and drug proceeds, along with two other loaded firearms, 23 rounds of 9mm ammunition, 27.3 grams of methamphetamine intended for distribution, and over $5,600 in drug proceeds.
In light of Schwab’s extensive criminal history and the nature and circumstances of the offense, Judge Watson imposed a sentence higher than the range calculated under the federal Sentencing Guidelines.
“As we work to reduce crime in our community, our priority is the apprehension of criminals like Schwab who possess firearms for the purpose of engaging in additional criminal activity,” said U.S. Attorney Clare E. Connors. “The prison sentence in this case is soundly justified based on the defendant’s violent resistance to law enforcement and his possession of multiple firearms and ammunition to protect his methamphetamine trafficking activity.”
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Honolulu Police Department conducted the investigation that resulted in the indictment. Assistant U.S. Attorney Sara D. Ayabe handled the prosecution.
Connecticut Ophthalmologist Pleads Guilty to Five-Year Health Care Fraud SchemeRead the Press Release
BOSTON – A Connecticut doctor pleaded guilty today in federal court in Boston to receiving kickbacks in exchange for ordering medically unnecessary brain scans.
Dr. Donald Salzberg, 67, of Avon, Conn., pleaded guilty before U.S. Senior District Court Judge Douglas P. Woodlock to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. A sentencing hearing has not yet been scheduled by the Court. Salzberg was charged by an Information on May 23, 2022.
Salzberg, a licensed medical doctor in the State of Connecticut for 36 years, owned and operated Donald J. Salzberg, M.D., an ophthalmology practice in West Hartford, Conn. From 2014 through 2019, Salzberg conspired with a principal for a medical diagnostics company that performed transcranial doppler (TCD) scans – brain scans that measure blood flow in parts of the brain – to order hundreds of medically unnecessary TCD scans in exchange for kickbacks. Salzberg and his co-conspirator used false patient diagnoses to order the unnecessary brain scans, for which the co-conspirator would submit claims to Medicare and other insurance companies on behalf of the medical diagnostic company for payment. In exchange, Salzberg was paid cash kickbacks of $100 to $125 per test that he ordered, as well as sham administrative services fees. The scheme resulted in fraudulent bills of over $3 million to Medicare and private insurance companies.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of conspiracy to violate the anti-kickback statute provides for a sentence of up to five years in prison, three years 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; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office. Assistant U.S. Attorneys Rachel Y. Hemani and Howard Locker of Rollins’ Health Care Fraud Unit are prosecuting the case.
Columbia Woman Sentenced to More than Three Years in Tax Refund SchemeRead the Press Release
COLUMBIA, SOUTH CAROLINA – Alice Felder-Lucas, 58, of Columbia, was sentenced to more than three years in federal prison for false claims against the United States and theft of governmental funds.
According to evidence presented during the defendant’s trial, Felder-Lucas filed fraudulent IRS Form 1040 tax returns petitioning for a tax refund of $708,190.00. As support, Felder-Lucas provided false IRS Form 1099 claiming millions of dollars of income and withholdings. Felder-Lucas’s tax return was flagged by the Internal Revenue Service (“IRS”) for potential fraud. However, the funds were erroneously released to her. Although the IRS was able to claw back approximately $30,000 of the refund once the fraud was discovered, Felder-Lucas had transferred most of the ill-gotten funds to other bank accounts. She used the funds to purchase a new house and car. During her case, Felder-Lucas filed several documents with the Court alleging she was a “sovereign citizen”. The sovereign citizen movement is a broad term applying to a loose association of tax protesters, financial scheme promoters, and conspiracy theorists. Typically, adherents of the theory claim to be answerable only to their view of law and to not be subject to any government statutes, rules, or proceedings. The Court rejected these claims.
“To steal from the Government is to steal from every taxpaying citizen in America," said U.S. Attorney Corey F. Ellis. “The Defendant here stole from the American people and spent that money on luxuries for herself. She deserves to go to prison, and I appreciate our partners with the IRS for making this case possible.”
“Those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today," said Donald “Trey” Eakins, Special Agent in Charge of the IRS’s Charlotte Field Office. "Today's sentencing emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
United States District Judge Mary G. Lewis sentenced Felder-Lucas to 41 months imprisonment for each count to run concurrently, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Felder-Lucas was also ordered to pay all outstanding tax balances to the IRS and ordered to pay $678,486.97 in restitution.
The case was investigated by the IRS and was prosecuted by Assistant U.S. Attorney T. DeWayne Pearson, who also serves as the Office’s Criminal Chief.
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Colorado Man Pleads Guilty to “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Jeffrey Kim, 51, of Colorado, pleaded guilty today to bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Feb. 1, 2017, and July 24, 2017, Kim participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
As part of the scheme, on Feb. 16, 2017, a participant opened an account at a BMO Harris branch in Arizona using a falsified Korean passport. Thirty-six checks were written against the account, all of which eventually bounced for insufficient funds. Another participant opened a Wells Fargo checking account in Arizona, using a different falsified Korean passport. Kim participated in the bust-out of this account. Seven times on May 25-26, 2017, Kim deposited checks from the BMO Harris account into the Wells Fargo at branch locations in Orangevale, Roseville, and Sacramento. Kim then made cash withdrawals of between $800 and $1,900, or requested cash back when depositing the checks.
In addition, on May 26, 2017, Kim purchased a postal money order for $995 from the Carmichael post office, using a debit card connected to one of the Wells Fargo bust-out accounts. Three days later, another participant deposited the money order into a different Wells Fargo account. The funds from the money order were used to give the bank account the appearance of legitimacy until that account was eventually “busted out” as part of the scheme.
On May 24, 2017, Kim obtained a fraudulent Korean passport with Kim’s picture, but the name and Social Security card of another individual, which he used to open a private mail box in Granite Bay and a bank account at the El Dorado Savings Bank in Folsom. Out of the El Dorado Savings Bank checking account, approximately 67 checks were presented for payment in amounts between $992 and $2,998 for a total of $313,796. All of the checks bounced as there was only $100 in the account to cover the checks.
Kim’s bust-out activity resulted in an actual loss of $196,058 to the banks, and an intended loss of $380,429 based on unsuccessful bust-out attempts.
Kim is the second defendant to plead guilty in this case. Kyung Min Kong pleaded guilty on Feb. 10, 2022, and is scheduled to be sentenced on Aug. 25, 2022. Charges are pending against Ki Jang, Il Chung, Hee Soung Oh, Bon Soke Hong, and Jong Eun Lee, who were all indicted on Oct. 21, 2021. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Kim is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 6, 2022. Kim faces a statutory maximum penalty of 30 years in prison and a fine of up to $1 million for bank fraud and a mandatory consecutive two years in prison and a fine of up to $250,000 for aggravated identity theft. The actual sentence, 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.
Charleston Man Sentenced to Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Shawn Lamont Lane, 33, of Charleston, was sentenced today to seven years in prison, to be followed by five years of supervised release, for distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on March 5, 2021, Lane was a passenger in a vehicle encountered by law enforcement officers in the South Hills section of Charleston. The officers subsequently found approximately 11 grams of methamphetamine and 1 gram of fentanyl in Lane’s pocket. Lane admitted that he intended to distribute the drugs. Lane further admitted to possessing a Springfield Armory XD-M Elite 9mm pistol and more than 50 grams of methamphetamine also found in the vehicle. Lane admitted that in furtherance of his drug trafficking, he possessed this firearm along with two others later found in a residence where he was staying: a Norinco SKS, 7.62x39mm rifle and an Anderson Manufacturing AM-15, .300 Blackout caliber rifle.
Lane also admitted that on July 15, 2021, he sold 21 grams of methamphetamine to a confidential informant. The next day, July 16, 2021, Lane was stopped by law enforcement in a vehicle in which he was carrying another loaded handgun. Lane was again stopped by law enforcement, on July 20, 2021, and had over $2,300 in drug proceeds.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Alex Hamner prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-227.
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Career Offender Sentenced to 15 Years in Federal Prison for Drug Trafficking and Firearm Offenses Following High-Speed ChaseRead the Press Release
INDIANAPOLIS – Santana Kendall, 30, of Indianapolis, was sentenced today to 15 years in federal prison for possession with intent to distribute a controlled substance and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, on August 11, 2021, Kendall led police on a high-speed chase after police attempted to stop him for speeding. Kendall ran a red light, drove on the wrong side of traffic, and ran several stop signs during the chase. After evading police, Kendall parked the vehicle at a residence and fled on foot. Kendall discarded a backpack he was carrying, which was later recovered by police. The backpack contained a loaded firearm, sizeable amounts of methamphetamine, heroin, crack cocaine, oxycontin pills, syringes, marijuana, a digital scale, and $5,517 in U.S. currency. Kendall was later found by police and arrested. Kendall admitted in his guilty plea that he possessed the controlled substances with the intent to distribute them and possessed the gun in furtherance of his drug trafficking activities. Under the U.S. Sentencing Guidelines, Kendall is a career offender as a result of his multiple prior felony drug-dealing convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, made the announcement.
ATF investigated the case. The Indianapolis Metropolitan Police Department also provided valuable assistance. The sentence was imposed by U.S. District Court Judge James Patrick Hanlon following Kendall’s guilty plea. As part of the sentence, Judge Hanlon also ordered that Kendall be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter Blackett who is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Career Offender Sentenced for Possession of Firearms and DrugsRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Eric Maurice Brown, Jr. (32, Fort Myers) to 13 years and 8 months in federal prison for possessing with the intent to distribute 40 or more grams of fentanyl and for possessing a firearm and ammunition as a convicted felon. Brown had pleaded guilty on January 27, 2022.
According to court records, on April 27, 2021, officers from the Fort Myers Police Department and emergency medical services personnel responded to a 911 call regarding a single-vehicle accident. The driver and sole occupant of the vehicle involved in the accident, Brown, was observed unresponsive in the driver’s seat suffering from an apparent drug overdose. Two loaded firearms were found on or near Brown by medical personnel treating him, including a Smith and Wesson .45-caliber handgun recovered from under Brown’s thigh and a Glock .380-caliber handgun located in his front left pants pocket.
Inside the vehicle officers located and seized multiple baggies containing suspected controlled substances, a box containing several rounds of ammunition, a loaded .45-caliber Smith and Wesson magazine, a digital scale, and a box of clear plastic baggies. Laboratory analysis later confirmed that the substances found in the vehicle included more than 50 grams of fentanyl, more than 32 grams of cocaine, and approximately 13 grams of cocaine base.
Brown was previously convicted in Florida state courts of multiple felony offenses, including robbery with a firearm, possession of a controlled substance, and robbery, and is therefore prohibited from possessing firearms or ammunition under federal law. As a result of his prior convictions, he was sentenced as a career offender.
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 case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
California Man Sentenced to Six Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that George D. Licata, 44, of Vista, California, was sentenced today in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Licata to 72 months in prison for possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine. After serving his sentence, Licata will be placed on supervised release for 4 years. There is no parole in the federal system.
On September 16, 2020, a Merrick County Sheriff’s deputy stopped Licata for a traffic violation. During the traffic stop, Licata provided consent to search his vehicle. The deputy located several syringes in the trunk of the vehicle and 6 glass methamphetamine pipes in a box. Under the air filter in the engine compartment, the deputy found a plastic bag containing a white crystal substance that appeared to be methamphetamine. The substance was sent to a lab for testing, and the lab determined that there was 107 grams of methamphetamine, of which at least 96 grams were pure.
This case was investigated by the Merrick County Sheriff’s Office, the Nebraska State Patrol, and the Tri-Cities Drug Enforcement Team (TRIDENT).
Bozeman man admits stealing government benefits while acting as a fiduciaryRead the Press Release
MISSOULA – A Bozeman man on Wednesday admitted to stealing more than $57,000 in government benefits from an individual for whom he was the fiduciary, U.S. Attorney Jesse Laslovich said.
Ira Kyrk Westbrook, 47, pleaded guilty on July 13 to Social Security fraud. Westbrook faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Oct. 28 before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Westbrook was released pending further proceedings.
The government alleged in court documents that in September 2021, the Social Security Administration (SSA) received information that Westbrook was misappropriating Social Security benefits for an individual, identified as John Doe. Doe suffered a stroke in 2018 and had been admitted to a rehabilitation and care facility. Westbrook was appointed as Doe’s Representative Payee and agreed to use the Social Security funds only for Doe’s needs. Westbrook acknowledged he could be charged criminally if he misused the money.
An investigation determined that Westbrook transferred deposits by SSA and the Veteran’s Administration (VA) into Doe’s account to another account Westbrook controlled. Westbrook then made payments to local businesses and restaurants in Bozeman, along with payments to CenturyLink and Amazon, with the account incurring multiple overdrafts. In 2020, Westbrook purchased a travel trailer for $8,500 and a Jeep for $10,000. Westbrook claimed the vehicle was used to run errands for Doe but disclosed that he and his wife had put approximately 15,000 miles on it over seven months. Social media posts showed Westbrook and his wife in the Jeep on a camping trip with the travel trailer. Westbrook diverted a total of $57,329 of Doe’s funds, consisting of $37,731 in VA benefits and $19,598 in SSA benefits.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the SSA, VA and Bozeman Police Department.
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Boston Gang Associate Sentenced for Cocaine Trafficking and Firearm OffensesRead the Press Release
BOSTON – A Boston gang associate was sentenced today for cocaine and firearm offenses in connection with his role in a cocaine trafficking conspiracy.
Renardo Williams, 45, of South Boston, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately 32 months in prison) and six years of supervised release. In September 2021, Williams pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute cocaine and one count of being a felon in possession of a firearm and ammunition.
Williams was charged in June 2020 along with 23 others as part of Operation Snowfall – a multi-year investigation into a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. Investigators identified Williams as a drug customer and distributor for co-defendant Kenji Drayton, the DTO’s principal drug suppler. In the hours preceding his arrest, investigators intercepted calls and conducted surveillance of Williams and Drayton, which allegedly indicated that Williams sought to purchase drugs from Drayton. At the time of his arrest, Williams was found in possession of approximately 125 grams of cocaine and a loaded firearm.
On April 13, 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced on Aug. 10, 2022.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran, Chief of the Organized Crime & Gang Unit, prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
BioReference Laboratories and Parent Company Agree to Pay $9.85 Million to Resolve False Claims Act Allegations of Illegal Remuneration to Referring PhysiciansRead the Press Release
BOSTON – BioReference Health, LLC, formerly known as BioReference Laboratories, Inc., (BioReference) and OPKO Health, Inc. (OPKO) have agreed to pay $9.85 million to resolve alleged violations of the False Claims Act. The government alleges that BioReference rented office space from physicians and then paid those physician-landlords above-market rent so that the physicians would send their laboratory business to BioReference. BioReference, a subsidiary of OPKO, is headquartered in New Jersey and is one of the largest clinical laboratories in the United States.
Between January 2013 and March 2021, BioReference made lease payments to physicians and physician groups for the rental of office space for amounts that exceeded fair market value, in violation of the Physician Self‑Referral Law and the Anti-Kickback Statute. The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a health care provider from billing for certain services referred by physicians with whom the provider has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration with the intent to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that physicians’ medical judgments are not compromised by improper financial inducements.
As part of today’s settlement, BioReference admitted that it rented the office space from the specified physician practices for Patient Service Centers (PSCs) where patients could have their blood samples taken. In calculating payments under certain PSC lease arrangements, BioReference inaccurately measured the amount of space it would use exclusively and included a disproportionate share of common spaces. BioReference analyzed referrals from nearby health care providers—including physician-landlords—when deciding whether to open, maintain, or close PSCs. Following OPKO’s acquisition of BioReference, the companies conducted multiple internal audits that showed that the payments to the specified physician-lessors exceeded fair market value. BioReference did not report or return any overpayments to federal health care programs.
“Medical decisions by doctors should be based on what is best for each patient, not a doctor’s personal financial interest,” said United States Attorney Rachael S. Rollins. “When companies violate the federal health care laws that are meant to protect patients, health care costs for hard working people increase. We will continue to find fraud and use the False Claims Act to make companies that break the law pay back the taxpayers they defrauded as well as pay a financial price for their misconduct.”
“The integrity of federal health care programs depends on providers making decisions based on the interests of their patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice and its agency partners are committed to enforcing laws prohibiting illegal financial arrangements that may distort health care decision-making and drive up costs to federal health care programs and patients.”
In connection with the False Claims Act settlement, BioReference and OPKO have also entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General, which provides for periodic reviews of BioReference’s processes, policies, and transactions for compliance with the Anti-Kickback Statute and the Stark Law by an Independent Review Organization.
“This settlement is a warning to laboratories that think they can boost their profits by entering into improper financial arrangements with referring physicians,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Working with our law enforcement partners, we will continue to crack down on such deals, which work to undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
“Laboratories that scheme to enrich their businesses through health care fraud—such as by paying kickbacks—drive up health care costs for everyone,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This settlement shows how seriously the FBI takes its responsibility to weed them out, and we’d also like to thank the whistleblower in this case for helping us ensure these entities are held accountable.”
“When health care companies pay unlawful remuneration to physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate healthcare fraud and protect TRICARE, the healthcare system for military members and their dependents.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the government and share in any recovery. In connection with today’s settlement, the whistleblower will receive 17 percent of the recovery.
Under the settlement, the defendants will also pay approximately $145,000 to the Commonwealth of Massachusetts and the State of Connecticut to resolve alleged violations of their respective state False Claims Acts.
U.S. Attorney Rollins, HHS-OIG SAC Coyne, FBI SAC Bonavolonta and DCIS SAC Hegarty made the announcement today. Assistant U.S. Attorneys Alexandra Brazier and Charles B. Weinograd of Rollins’s Affirmative Civil Enforcement Unit, and Trial Attorney Douglas Rosenthal of the Justice Department’s Civil Division, Commercial Litigation Branch, handled the matter.
BioReference Laboratories and Parent Company Agree to Pay $9.85 Million to Resolve False Claims Act Allegations of Illegal Payments to Referring PhysiciansRead the Press Release
BioReference Health LLC, formerly known as BioReference Laboratories, Inc., (BioReference), and OPKO Health, Inc. (OPKO) have agreed to pay $9.85 million to resolve alleged violations of the False Claims Act arising from BioReference’s payment of above-market rents to physician landlords for office space in order to induce referrals from those physicians to BioReference. BioReference, a subsidiary of OPKO, is headquartered in New Jersey and is one of the largest clinical laboratories in the United States.
“The integrity of federal health care programs depends on providers making decisions based on the interests of their patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice and its agency partners are committed to enforcing laws prohibiting illegal financial arrangements that may distort health care decision-making and drive up costs to federal health care programs and patients.”
BioReference and OPKO have agreed to pay $9.85 million to resolve allegations that, between January 2013 and March 2021, BioReference made lease payments to physicians and physician groups for the rental of office space for amounts that exceeded fair market value, in violation of the Physician Self‑Referral Law and the Anti-Kickback Statute. The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a health care provider from billing for certain services referred by physicians with whom the provider has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid and certain other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical judgments are not compromised by improper financial inducements.
As part of today’s settlement, BioReference admitted that it rented the office space from the specified physician practices for Patient Service Centers (PSCs), where patients could have their blood samples taken. In calculating payments under certain PSC lease arrangements, BioReference inaccurately measured the amount of space BioReference would use exclusively and included a disproportionate share of common spaces. BioReference analyzed referrals from nearby health care providers — including physician-lessors — when deciding whether to open, maintain or close PSCs. Following OPKO’s acquisition of BioReference, the companies conducted multiple internal audits that showed that the payments to the specified physician-lessors exceeded fair market value. BioReference did not report or return any overpayments to federal health care programs.
“Medical decisions by doctors should be based on what is best for each patient, not a doctor’s personal financial interest,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “When companies violate the federal health care laws that are meant to protect patients, health care costs for hard working people increase. We will continue to find fraud and use the False Claims Act to make companies that break the law pay back the taxpayers they defrauded as well as pay a financial price for their misconduct.”
In connection with the False Claims Act settlements, BioReference has also entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“This settlement is a warning to laboratories that think they can boost their profits by entering into improper financial arrangements with referring physicians,” said Special Agent in Charge Phillip M. Coyne of HHS-OIG. “Working with our law enforcement partners, we will continue to crack down on such deals, which work to undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
“Laboratories that scheme to enrich their businesses through health care fraud — such as by paying kickbacks — drive up health care costs for everyone,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “This settlement shows how seriously the FBI takes its responsibility to weed them out, and we’d also like to thank the whistleblower in this case for helping us ensure these entities are held accountable.”
“When health care companies pay unlawful remuneration to physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate health care fraud and protect TRICARE, the health care system for military members and their dependents.”
The settlement resolves allegations that were originally brought in a lawsuit filed by Jean Marie Crowley, a former employee at BioReference and OPKO, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the government and share in any recovery. Ms. Crowley will receive approximately $1.7 million as her share of the recovery in this case. The qui tam case is captioned United States ex rel. Crowley v. BioReference Laboratories, Inc. and OPKO Health, Inc., Civil Action No. 19-CV-10981-WGY (D. Mass.). Under the settlement, defendants will also pay the Commonwealth of Massachusetts $141,041 and the State of Connecticut $5,001 to resolve alleged violations of their respective state False Claims Acts.
The investigation was conducted by the Civil Division, Commercial Litigation Branch, Fraud Section, of the Department of Justice and the U.S. Attorney’s Office for the District of Massachusetts with assistance from HHS-OIG and Office of the General Counsel, the Department of Defense Office of Inspector General and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Berkeley County woman guilty of firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Taylor Dawn Marlow, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Marlow, 29, pleaded guilty today to one count of “Aiding and Abetting False Statement During Purchase of Firearm.” Marlow admitted to working with another to illegally purchase a .380 caliber pistol from a licensed dealer in Berkeley County in May 2021.
Marlow faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Albuquerque man indicted for tax evasion and false statementRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Arturo Archuleta was arraigned on July 13 on an indictment charging him with five counts of attempting to evade or defeat taxes and one count of false statements relating to healthcare matters. Archuleta, 50, of Albuquerque, will remain on conditions of release pending trial.
A federal grand jury returned a superseding indictment on June 15. According to the indictment, from 2014 to 2018, Archuleta worked as an office manager at ABQ Injury Clinic in Albuquerque. During that time, Archuleta allegedly attempted to conceal taxable income from the IRS. Archuleta allegedly made false entries and altered accounting records of ABQ Injury Clinic, causing the clinic not to file Form 1099s and Form W-2s recording his income. Archuleta also allegedly used cash and a nominee bank account under a fictitious name to avoid scrutiny.
The indictment also alleges that on March 27, 2018, Archuleta made false statements, claiming that he was homeless and that he had zero monthly income, in connection with the delivery of and payment for healthcare benefits, items and services involving Centennial Care and United Healthcare. Centennial Care operates Medicaid in New Mexico through managed care organizations, including United Healthcare.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Archuleta faces up to five in prison for attempting to evade or defeat taxes and up to five years in prison for false statements relating to healthcare matters.
The FBI investigated the healthcare component of this case, with IRS Criminal Investigation investigating tax evasion. Assistant United States Attorney Taylor F. Hartstein is prosecuting the case.
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13 July 2022
Woman Pleads Guilty to Multimillion-Dollar COVID-19 Loan Fraud ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Stockbridge, Georgia, woman pleaded guilty yesterday to conspiring with others to submit millions of dollars in fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Nikki Mitchum, 44, participated in a conspiracy to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs, initiated and expanded under the Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic. Nikki Mitchum and her co-conspirators, including Malik Mitchum, 26, and Jenna Mitchum, 25, of Hampton, submitted fraudulent claims for government benefits in the name of businesses that they falsely represented were struggling during the COVID-19 pandemic.
Between March 2020 and May 2021, 12 fraudulent applications for pandemic-related loan benefits were submitted using Nikki Mitchum’s information that contained false statements and misrepresentations about their income, employment, and claimed business entities. Nikki Mitchum is further linked to four other fraudulent loan applications by the IP address used to submit the applications. Finally, Nikki Mitchum is connected with 17 fraudulent loan applications submitted by other co-conspirators who paid kickbacks in an approximate amount of $204,000 to the companies owned and operated by Nikki Mitchum.
Malik and Jenna Mitchum previously pleaded guilty and were linked to more than $5.1 million in intended loss and caused more than $1.4 million in actual loss to the United States and participating financial institutions. Nikki Mitchum has agreed to pay more than $1.3 million in restitution to the United States for actual losses from her role in the conspiracy and is linked with intended fraud loss of more than $4 million.
Nikki Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution and is scheduled to be sentenced on December 7. She faces a maximum penalty of 30 years in prison. Malik and Jenna Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. They both face a maximum penalty of 30 years in prison. Malik and Jenna Mitchum are scheduled to be sentenced on July 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney D. Mack Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-85 and 4:22-cr-47.
Wilmington Man Receives More Than 13 Years for Drug Conspiracy and Robbery OffensesRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 164 months in prison for conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine and interference with commerce by robbery and aiding and abetting. On October 5, 2021, Frank Anthony Capuano pled guilty to the charges.
According to court documents and other information presented in court, on June 4, 2019, officers with the Wilmington Police Department responded to an armed robbery at a residence located in Wilmington. The investigation revealed that Capuano and another individual committed the robbery and marijuana vape pens were stolen during the robbery. Detectives also learned Capuano was distributing methamphetamine in New Hanover County and southeastern North Carolina and law enforcement conducted several controlled purchases of methamphetamine from Capuano. On September 17, 2019, Capuano was arrested, and a search warrant was executed at his house where officers located more than four-thousand dollars ($4,000.00). The investigation revealed that Capuano is responsible for distributing 460 grams of methamphetamine between March 2019 and September 2019 in southeastern North Carolina.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department, the New Hanover County Sheriff’s Office, and the Pender County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany and Special Assistant United States Attorney William Van Trigt prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00073-M.
Wildwood man charged after authorities found at least 400 pounds of methamphetamineRead the Press Release
ST. LOUIS – A man from Wildwood, Missouri has been caught with at least 400 pounds of methamphetamine, federal charging documents allege.
Kolby L. Kristiansen, 68, was indicted by a grand jury Wednesday with possession with the intent to distribute methamphetamine.
Charging documents say that investigators located a storage unit in St. Louis County that was being used by Kristiansen to store methamphetamine. On June 29, a drug-sniffing K9 alerted to Kristiansen’s storage unit, and on July 1, investigators executed a federal search warrant there, finding three plastic containers containing suspected methamphetamine. The containers, including packaging materials, weighed 476 pounds, charging documents allege.
“Methamphetamine has a street value of about $2,500 to $3,500 per pound at the mid-level drug distribution level where this drug was seized,” said Special Agent in Charge Michael A. Davis, head of DEA’s St. Louis Division. “That makes this seizure valued at more than $1 million, the largest meth seizure in this division’s history. It’s a testament to the dedicated effort of our agents at stopping this poison from reaching our communities.”
Kristiansen was recently released from federal prison after being found guilty of similar charges stemming from a 2014 case.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case is being investigated by the Drug Enforcement Administration, the Illinois State Police and the Metropolitan Enforcement Group of Southern Illinois.
Photo courtesy of the Drug Enforcement Administration Three containers containing suspected methamphetamine and packaging materials and totaling 476 pounds were found in a St. Louis County storage unit on July.Watertown Man Sentenced for Drug and Firearms ConvictionsRead the Press Release
SYRACUSE, NEW YORK – George D. Robinson, age 38, of Watertown, New York, was sentenced yesterday to serve 52 months in federal prison for his convictions for possession with intent to distribute methamphetamine, and possession of firearms by a convicted felon, announced United States Attorney Carla B. Freedman; Acting Special Agent in Charge Matthew Scarpino, Homeland Security Investigations (HSI), Buffalo, New York Field Office; and Jefferson County District Attorney Kristyna Mills.
Robinson was arrested on February 5, 2021, in Watertown following the execution of a search warrant at his residence that resulted in the seizure of a quantity of methamphetamine and several handguns. He was previously convicted of conspiracy to possess with intent to distribute methamphetamine in United States District Court for the Northern District of New York in 2003 and served 24-months in federal prison, making it illegal for him to possess firearms as a prior convicted felon.
At yesterday’s sentencing, Robinson was also ordered to serve a 4-year term of supervised release following his 52-month prison sentence.
This case was investigated by the Metro-Jefferson Drug Task Force, consisting of Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, Investigators from the Jefferson County District Attorney’s Office, Agents of the United States Border Patrol, and Special Agents from the United States Department of Homeland Security-Homeland Security Investigations (HSI), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick.
Urbana, Illinois, Woman Sentenced to Six Months in Prison for Transferring Firearms to Felon ParamoursRead the Press Release
URBANA, Ill. – An Urbana, Illinois, woman, Lawanda Rogers (formerly Moore), age 31, of the 1100 block of East Willard Street, was sentenced on July 12, 2022, to six months in prison for unlawfully transferring firearms to prohibited persons.
At the sentencing hearing, the government detailed how four firearms lawfully purchased by Moore were ultimately seized from two felons during subsequent criminal investigations. Moore’s husband possessed one firearm that had been purchased by Moore. The firearm was seized from a hotel room along with various narcotics in October 2015. Moore’s boyfriend was in possession of three firearms that were seized in November 2018 and June 2019 that had similarly been purchased by Moore. The three firearms seized from Moore’s boyfriend were confiscated by police during drug investigations, with one being used in a shooting in Champaign.
At the hearing, U.S. District Judge Michael M. Mihm emphasized the seriousness of Moore’s conduct, noting the dangerousness of buying firearms to then provide them to those unable to lawfully purchase firearms.
Moore was sentenced following a guilty plea. Unlawful transfer of a firearm to a prohibited person carries a statutory penalty of up to ten years in prison.
“This case demonstrates clearly that those who purchase firearms for others will be held accountable,” said Assistant U.S. Attorney Rachel Ritzer. “This sentence is a step forward in the fight against gun violence in our communities and sends a message to others engaged in the same dangerous behavior that it will not be tolerated.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; Champaign Street Crimes Task Force; and Champaign Police Department investigated the case. Assistant U.S. Attorney Ritzer represented the government in the prosecution.
United States Files Claims Alleging Fresenius Vascular Care, Inc. Defrauded Medicare and Other Healthcare Programs by Billing for Unnecessary Procedures Performed on Dialysis PatientsRead the Press Release
The United States filed a civil complaint yesterday in federal court in Brooklyn against Fresenius Vascular Care, Inc. (“Fresenius”) alleging that the company performed unnecessary procedures on dialysis patients at nine centers across New York City and Long Island, and billed the procedures to Medicare, Medicaid, the Federal Health Benefits Program and TRICARE. The complaint seeks damages and penalties under the False Claims Act.
The filing was announced by Breon Peace, United States Attorney for the Eastern District of New York, and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG).
“The conduct alleged in this case is egregious, as Fresenius not only defrauded federal healthcare programs but also subjected particularly vulnerable people to medically unnecessary procedures,” stated United States Attorney Peace. “This Office will hold medical providers accountable for practices that needlessly expose patients to harm for financial gain at taxpayer expense.”
Mr. Peace also expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the United States Office of Personnel Management, and the United States Department of Defense for their assistance with the investigation.
“The alleged conduct by Fresenius unnecessarily compromised patient care and undermined the financial integrity of federal health care programs,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, HHS-OIG is committed to protecting beneficiaries and taxpayers from such abusive practices.”
As alleged in the complaint, from about January 1, 2012 through June 30, 2018, Fresenius routinely performed certain procedures on patients with End Stage Renal Disease (ESRD) who were receiving dialysis, without sufficient clinical indication that the patients needed the procedures. These interventions included fistulagrams, which are radiological procedures in which dye is injected into the patient’s vein or artery to visualize the port and surrounding blood vessels, and angioplasties, in which wires and balloons are inserted into veins or arteries that have narrowed to restore the patient’s blood flow. Fresenius knowingly subjected ESRD patients—who included elderly, disadvantaged minority, and low-income individuals—to these procedures to increase its revenues.
The government filed its complaint in an ongoing action commenced pursuant to the qui tam provisions of the False Claims Act, United States ex rel. Pepe and Sherman v. Fresenius Medical Holdings, Inc., et al., No. 14-CV-3505 (ERK). The case is being handled by Assistant U.S. Attorneys Jolie Apicella and Anjna Kapoor, and Special Assistant U.S. Attorney Mary Ellen Buntin of the Office’s Civil Division.
Defendants operated vascular access centers at the following locations during the relevant period:
- American Access Care of Bellmore (now “American Access Care Nassau County”), 250 Pettit Avenue, Suite 2, Bellmore, NY 11710
- American Access Care Brooklyn, 577 Prospect Avenue Lower Level, Brooklyn, NY 11215
- American Access Care of New York (now “American Access Care Manhattan”), 403 E. 91st Street, Floor 2, New York, NY 10128
- American Access Care Queens, 176-60 Union Turnpike #130, Suite 130, Flushing, NY 11366
- American Access Care Suffolk County, 32 Central Avenue, Hauppauge, NY 11788
- American Access Care Bronx, 1200 Waters Place N. Lobby, Suite M 115, Bronx, NY 10461
- Saqib Chaudhry, MD – Flushing, 176-60 Union Turnpike Utopia Center, Suite 145, Flushing, NY 11366
- Saqib Chaudhry, MD – Roslyn, 1044 Northern Boulevard, Suite 302, Roslyn, NY 11676 (no longer operating)
- Verrazano Vascular Associates at Access Care Physicians, 2025 Richmond Avenue, Suite 1LL, Staten Island, NY 10314
U.S. Attorney’s Office partners with City of Detroit to host Peacenic in O’Hair Park.Read the Press Release
DETROIT - More than thirty community organizations and state, and federal law enforcement agencies participated in the first Peacenic held in O’Hair Park on Saturday, July 9 from 11-2.
The event was part of the Safe Summer Streets Initiative where federal law enforcement agencies including the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) partnered this summer with the City of Detroit, Detroit Police Department, and the Wayne County Prosecutor’s Office to strategically focus resources on the most dangerous neighborhoods in the city, which are two sections in the City’s 8th precinct and two sections in the 9th precinct. The strategy is designed to significantly reduce violence by narrowly focusing on those who are committing violence and to give these neighborhoods back to the majority of residents who want peace. The City of Detroit committed to address blight, ensure access to city services, and replenish community resources in the neighborhoods that were targeted for enforcement. The partners also agreed to hold community engagement events, Peacenics, where residents could have fun, engage with law enforcement, and obtain resources to improve the quality of their lives.
Saturday’s Peacenic held in O’Hair Park in the 8th Precinct was the first of these community engagement events. It featured vendors offering a variety of resources including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial and career development programs, and more. Several law enforcement agencies were also present to engage with the community and recruit to fill vacancies in their organizations. The event also included a panel discussion of Returning Citizens who discussed how they could collaborate to reduce violence in their communities. In addition to the resources, there were bounce houses, face painting, cookie decorating and free throw tournament for kids. Hooper from the Detroit Pistons also made an appearance and took photographs with attendees. Adults were also able to join in the fun with Hustle Dance lessons, chess games, and a Spades tournament. There was also pizza, hot dogs, sliders, and ice cream available for residents at the Peacenic.Gail Tubbs, President of the O’Hair Park Neighborhood Association, stated "The message of unity was on full display this past Saturday, July 9th at O'Hair Park. The community came together with law enforcement agencies to bring about a culture of peace in our neighborhoods and in the city of Detroit.”
Alvin R. Stokes, President, Citywide Citizens Police Community Relations, stated, “I would like to take this opportunity to thank U.S. Attorney Mrs. Dawn Ison and her team, for the great event that was held July 9th, 2022, at O'Hair park in the 8th precinct. With the help of several agencies, a great time was had by all. I applaud the Attorney and her team for showing the community the love and support that we need. It is such a pleasure to see the community and other agencies coming together for a good cause. I would love to see more.”
“The Peacenic was a day of empowerment filled with life-saving resources. Free food, job opportunities and plenty of activities for the family. Can’t wait for the next one," said Darryl Woods, Sr., President and CEO, Fighting the Good Fight.
The second Peacenic will be held on July 17, 2022, from 11-4 at Heilmann Park, which is in the 9th Precinct and will feature most of the same community and law enforcement partners. The Peacenic is designed for the residents of the 9th Precinct. Media is welcome to attend the event and should contact Gina Balaya at the above email address or contact her directly at (313)226-9758.
Participating Organizations
Bates Academy • Brilliant Detroit • Detroit at Work • Detroit Chess Club • Detroit Health Department • Detroit Public Schools Community District • Detroit Reconnect • Detroit Training Center • Detroit Wayne Integrated Health Network • Downtown Boxing Gym • Drug Enforcement Administration • Goodwill Industries • Homeland Security • I Teach Chess • Matrix Human Services • Michigan Army National Guard • Michigan Department of Corrections • Michigan Secretary of State • Michigan State Police • O’Hair Park Neighborhood Association • Project Clean Slate • Pure Heart Foundation • Team Wellness Center • 27th Letter Books • United States Marshals Services • Wayne County Community College District • Wayne County Sheriff’s Department •Wayne Metro Community Action Agency • Youthbuild
U.S. Attorney’s Office Reaches Settlement with Tattoo Studio for Alleged HIV DiscriminationRead the Press Release
SAN JOSE—The U.S. Attorney’s Office for the Northern District of California announced today that the United States has resolved a claim that Luna Tattoo Studio discriminated against a person with HIV in violation of the Americans with Disabilities Act (ADA).
Luna is a tattoo studio located in San Jose, California. The Department of Justice received a complaint from a prospective customer who is HIV-positive. The Complainant alleged that she was refused service by a tattoo artist who worked at Luna.
Title III of the ADA prohibits public accommodations, such as tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying the services they provide. In this case, the settlement agreement includes key findings from the Department of Justice’s investigation of the Complainant’s allegations. Specifically, the Department of Justice found that in August of 2020, the Complainant made an appointment to receive a tattoo at Luna. After informing the tattoo artist at Luna of her HIV-positive status, the prospective customer first was told that the artist would need to speak with the owner about the situation, and later, that the appointment was cancelled altogether. In refusing to provide service, the tattoo artist told the Complainant that the possibility of the tattoo artist performing tattoo services on Complainant made other artists at Luna Tattoo “very uncomfortable.”
To resolve the complaint, Luna agreed to pay $7,000 in compensatory damages to the victim. Luna also agreed, among other things, to develop a non-discrimination policy and to provide training to its employees for a two-year period.
The United States recognizes Luna’s cooperation in reaching this resolution.
For more information regarding the Department of Justice’s efforts to combat HIV discrimination, please visit https://www.ada.gov/hiv/ada_hiv_discrimination.htm.
Assistant U.S. Attorney David DeVito handled the matter for the government, with assistance from Lillian Do.
U.S. Attorney Scott Erik Asphaug Announces DepartureRead the Press Release
PORTLAND, Ore.—Scott Erik Asphaug announced today that, effective July 17, 2022, he will step down as U.S. Attorney for the District of Oregon. Asphaug will become the Justice Department’s Resident Legal Advisor in Nairobi, Kenya, where he will be detailed to the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) to work with Kenyan counterparts on justice sector issues.
Marco A. Hernández, Chief U.S. District Court Judge for the District of Oregon, also announced today that he will appoint Natalie K. Wight to serve as U.S. Attorney for the District of Oregon in an interim capacity pending her confirmation to the position by the U.S. Senate. On June 6, 2022, President Joseph R. Biden Jr. nominated Wight to serve as Oregon’s next Senate-confirmed U.S. Attorney, vice Billy J. Williams who resigned in February 2021.
Asphaug, a 17-year veteran of the Department of Justice, has served as U.S. Attorney for the District of Oregon since February 2021. Prior to being appointed U.S. Attorney, he held several leadership positions in the District of Oregon including First Assistant U.S. Attorney and Executive Assistant U.S. Attorney.
U.S. Attorney Chung Announces HIDTA Designation for Lawrence CountyRead the Press Release
PITTSBURGH – United States Attorney Cindy K. Chung announced today that Lawrence County has been officially designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy. Lawrence joins five other western Pennsylvania counties - Allegheny, Beaver, Washington, Westmoreland, and Erie - in receiving dedicated federal resources to coordinate federal, state, and local governments to fight drug trafficking and abuse.
“Lawrence County citizens will benefit significantly from HIDTA designation and the critical resources and support that brings to disrupt and dismantle major drug trafficking organizations,” said U.S. Attorney Chung. “We will use these crucial resources to attack the opioid crisis, to curtail cocaine trafficking, and to prevent the widespread distribution of methamphetamine, which has become a serious problem in Western Pennsylvania.”
According to U.S. Attorney Chung, Lawrence County is being utilized by multi-jurisdictional drug traffickers as a destination for the large-scale distribution of controlled substances into Lawrence and the surrounding counties in Pennsylvania and Ohio. The large number of illegal drug users, the network of bisecting highways and interstates, and a perceived lack of sanctions against drug traffickers has made Lawrence County an easy and attractive target for Drug Trafficking Organizations.
“The established cooperative partnership with the U.S. Attorney’s Office under the leadership of U.S. Attorney Cindy Chung continues to benefit the citizens of Lawrence County and western Pennsylvania,” said Lawrence County District Attorney Joshua Lamancusa. “Our designation as a HITDA community will provide additional resources, expand the reach of law-enforcement and ensure that traffickers of heroin, cocaine, and fentanyl are attacked at their sources and distribution points. I look forward to building upon our cooperative efforts to make Lawrence County a safer place.”
“The designation of Lawrence as a HIDTA county will bring federal funding, increased sharing of intelligence, analytical support, enhanced training opportunities, and a cooperative effort between the local, state and federal partners,” said Derek M. Siegle, Executive Director of the Ohio HIDTA.
U.S. Attorney Chung thanked Pennsylvania’s United States Senators Robert Casey and Pat Toomey, Governor Tom Wolf, Lawrence County District Attorney Joshua Lamancusa, Homeland Security Investigations, the Pennsylvania State Police, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, as well as local law enforcement who supported and worked in concert to receive this designation.
Lawrence County is located on the Pennsylvania-Ohio border in the far western part of Pennsylvania, about halfway between the northern and southern borders of Pennsylvania. It covers 363 square miles and has a population of 86,184.
Lawrence County joins the program’s Ohio HIDTA region.
Two Men Sentenced in Child Pornography CasesRead the Press Release
Two men have been sentenced this week in federal court after being convicted of child pornography charges.
“Timothy Gregston and Earl Morrow repeatedly viewed criminal material depicting the rape and assault of children,” said U.S. Attorney Clint Johnson. “The criminal acts of possessing, receiving and distributing child sexual abuse material revictimizes those individuals who have suffered tremendous physical and psychological trauma as children. My office and our local, state, federal, and tribal law enforcement partners will bring to account those who exploit children in such a manner.”
“The combined jail time of 315 months for these deviant child predators will help bring a sense of closure to the victims they abused through the viewing and distribution of thousands of repeated images and video depictions of rape and child molestation," said Christopher Miller, acting Special Agent in Charge HSI Dallas. "Let this stand as a warning to individuals that seek to harm our children that HSI will never relent in our efforts to protect our most vulnerable citizens from sexual abuse."
Timothy Maxey Gregston 36, of Sapulpa, was sentenced by U.S. District Judge Claire V. Eagan to 180 months in federal prison followed by a lifetime of supervised release. He was further ordered to pay $18,000 in restitution to the victims who were depicted in the child sexual abuse material.
Gregston pleaded guilty on Jan. 1, 2022. According to the plea agreement, he admitted that from Oct. 3, 2021, to Oct. 28, 2021, he knowingly received and distributed child sexual abuse material. He further admitted to possessing multiple visual depictions of children engaged in sexually explicit conduct, including children under the age of 12. On Oct. 28, 2021, special agents from Homeland Security Investigations served numerous search warrants on Gregston’s home. Agents recovered 256 images and 26 videos of child sexual abuse material, some depicting sadistic sexual acts committed on toddlers.
Gregston committed the crime after he had already been convicted of child sex crimes in Rogers County District Court.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Alex M. Scott prosecuted the case.
Also sentenced this week was defendant Earl Hardy Morrow, 40, of Broken Arrow. U.S. District Judge Daniel D. Crabtree sentenced Morrow to 135 months in federal prison followed by 10 years of supervised release. He was further ordered to pay $15,000 in restitution the victims depicted in the child sexual abuse material. In November 2021, Morrow was convicted at trial of distribution and receipt of child pornography and possession of child pornography
According to court documents and evidence presented at trial, Morrow distributed and received child pornography via electronic means on Feb. 20, 2020,. From Nov. 5, 2019, to Feb. 27, 2020, Morrow further possessed visual depictions involving prepubescent minors and minors who were under 12 years of age.
On Feb. 20, 2020, multiple files of child sexual abuse material were sent to the Tulsa Police Department’s Cyber Crimes Unit via the BitTorrent network from an IP address that was later tracked to a Broken Arrow user. The final torrent file distributed to Tulsa Police contained multiple video files depicting the sexual abuse of children.
Officers served a search warrant on the address where Morrow resided on Feb. 27, 2020. During the search, Morrow told officers that he used BitTorrent on his computer and that he had illegal files on the computer.
During the forensic extraction and review of Morrow’s various computers and thumb drives, officers discovered approximately 4,222 images and 248 videos of child sexual abuse material.
The Tulsa Police Department led the investigation with assistance from Homeland Security Investigations. Assistant U.S. Attorneys Christopher J. Nassar, Nathan E. Michel, and Stacey P. Todd are prosecuted the case. Judge Crabtree is a visiting judge from the District of Kansas. See conviction press release here.
Two Foreign Nationals Plead Guilty to Trafficking Ivory and Rhinoceros Horn from the Democratic Republic of the CongoRead the Press Release
Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), pleaded guilty yesterday in federal court in Seattle to conspiracy and Lacey Act charges. They were indicted on Nov. 3, 2021, on 11 counts relating to trafficking wildlife from DRC to Seattle. The court scheduled the sentencing hearing for Nov. 1.
In pleading guilty, both defendants admitted that beginning in November 2019, they agreed to smuggle elephant ivory, white rhinoceros horn and pangolin scales to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi shipped three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.
Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.
Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details of a large shipment of ivory, rhinoceros horn and pangolin scales, agents arrested both men in Edmonds, Washington.
The investigation was part of “Operation Kuluna,” an international operation conducted between the Office of Homeland Security Investigations (HSI) in Seattle, the Government of the DRC, the Department of State's Diplomatic Security Service (DSS) and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI-Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth approximately $3.5 million, all contraband related to wildlife trafficking.
The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.
The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.
HSI-Seattle conducted the investigation. The government is represented by Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environment and Natural Resources Division’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office in the Western District of Washington.
Two Foreign Nationals Plead Guilty to Trafficking Ivory and Rhinoceros Horn from the Democratic Republic of the CongoRead the Press Release
Seattle – Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), pleaded guilty yesterday in federal court in Seattle to conspiracy and Lacey Act charges. They were indicted on Nov. 3, 2021, on 11 counts relating to trafficking wildlife from DRC to Seattle. The court scheduled the sentencing hearing for Nov. 1.
In pleading guilty, both defendants admitted that beginning in November 2019, they agreed to smuggle elephant ivory, white rhinoceros horn and pangolin scales to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi shipped three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.
Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.
Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details of a large shipment of ivory, rhinoceros horn and pangolin scales, agents arrested both men in Edmonds, Washington.
The investigation was part of “Operation Kuluna,” an international operation conducted between the Office of Homeland Security Investigations (HSI) in Seattle, the Government of the DRC, the Department of State's Diplomatic Security Service (DSS), and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI-Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth approximately $3.5 million, all contraband related to wildlife trafficking.
The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.
The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.
HSI-Seattle conducted the investigation. The government is represented by Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environment and Natural Resources Division’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office in the Western District of Washington.
Three South Carolina Men Are Sentenced to Prison for Defrauding Lowe's of More Than $450,000Read the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced to prison three South Carolina men for a scheme that defrauded Lowe’s of more than $450,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making this announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department.
Judge Cogburn ordered Bobby Cherry, 58, of Manning, South Carolina, to serve 41 months in prison and three years of supervised release. Russell Leroy Calvin, 43, of Sumter, South Carolina, was ordered to serve 33 months in prison and three years of supervised release, and Michael Marcel Montgomery, 48, also of Sumter, was sentenced to 27 months in prison, followed by three years of supervised release. In addition to the prison terms imposed, the defendants were ordered to pay more than $450,000 jointly and severally as restitution. All three defendants pleaded guilty to conspiracy to commit wire fraud.
According to filed documents and today’s sentencing hearings, from August 2019 to March 2020, Cherry, Calvin and Montgomery engaged in a conspiracy to defraud Lowe’s stores in the southeastern United States. The defendants and other co-conspirators created business accounts for fraudulent landscaping and home improvement companies at Lowe’s stores, passed fictitious and worthless checks to fund the fraudulent accounts, and then purchased expensive landscaping equipment, such as zero turn mowers, and other items using the account funds. In total, during the course of the scheme, the co-conspirators opened more than 30 such fraudulent business accounts which they used to obtain more than $450,000 in fraudulently purchased goods. During the scheme, the three defendants made purchases at local stores in Mecklenburg, Gaston, Union, Lincoln, Cleveland, and Iredell Counties in North Carolina, as well as stores in South Carolina and Georgia.
In making today’s announcement, U.S. Attorney King thanked HSI and CMPD for their investigation of the case.
Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Taylor Man Sentenced to 25 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
DETROIT – A Taylor man was sentenced today to 25 years in federal prison on charges of sexual exploitation of children and possession of child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
Kenneth Hartley, 53, was sentenced before United States District Judge Victoria Roberts.
During his plea hearing, Hartley admitted that in 2010 he pretended to be a teenage female on the Skype internet messaging platform and tricked a male minor born in 1995 into providing sexually explicit images of himself to Hartley. As part of his plea agreement, Hartley also acknowledged that he used the Kik social media application to obtain sexually explicit images of a 13-year-old male in 2014 and another 13-year-old male in 2015. In all, Hartley victimized over 100 minors over the course of a decade until law enforcement executed a search warrant at his residence in December 2020. Agents identified 29 of those victims, 17 of those victims were minors under 12 years of age at the time Hartley exploited them. Hartley’s youngest victim was eight. Hartley was found responsible for possessing 46,153 images of child pornography for the purposes of sentencing guidelines.
“This investigation and subsequent prosecution ended this offender’s decade-long sexual exploitation of children. This significant sentence demonstrates that those who seek to harm our children through online exploitation will be held responsible. We will continue to work to make the Internet a safer place for our children.” stated Dawn N. Ison, United States Attorney.
“In addition to possessing child pornography, Mr. Hartley actively created it for himself and others by exploiting vulnerable children around the world,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI considers the investigation and prosecution of predators like this defendant to be of the highest priority. Today’s sentence serves as a warning to others like him the FBI will aggressively pursue anyone who victimizes and exploits children.”
The case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation. case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Student Who Hacked over a Dozen Email and Snapchat Accounts of Female Students from the University of Puerto Rico Pleads Guilty to CyberstalkingRead the Press Release
SAN JUAN, Puerto Rico – On July 13, 2022, Iván Santell-Velázquez pled guilty to cyberstalking before United States District Court Judge Silvia Carreño-Coll, in violation of 18 U.S.C. § 2261A(2), announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
According to the parties’ stipulation of facts, Santell-Velázquez, while a student at the University of Puerto Rico at Cayey, sent unauthorized emails to faculty, administration, and students under the moniker “Slay3r_r00t”. Santell targeted over 100 student email accounts and successfully broke into multiple university e-mail accounts, collecting personal information through phishing and spoofing schemes. In addition, between 2019 and 2021, Santell-Velázquez hacked into several female students’ Snapchat accounts, some of which contained nude images that he shared with third parties who published the images online.
After Santell-Velázquez broke into a victim’s Snapchat account, she began receiving harassing text messages with her intimate pictures. Nude photos stolen from the victim’s Snapchat account were posted on Twitter as well as on a Facebook page.
The plea agreement encompasses 15 female victims of Santell-Velázquez’s conduct, as well as the University of Puerto Rico.
“This individual engaged in phishing and spoofing schemes to steal information,” said U.S. Attorney Muldrow. “He harassed numerous women with the nude photos he stole from them, and in some cases, he published them. This case demonstrates the importance of safeguarding personal information and passwords, especially in response to suspicious e-mails and text messages.”
“Individuals who engage in this type of behavior know what they are doing is wrong and they know they are causing great harm to their victims. What I want everyone to know is that, it is not just wrong, it is a federal crime, and one that the FBI won’t tolerate.” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “I want to urge everyone who has been a victim to this crime to report it immediately by calling 787-987-6500 or visiting tips.FBI.gov”.
Assistant U.S. Attorney Jeanette Collazo is in charge of the prosecution of the case. FBI Special Agent Christian Nieves of the San Juan Cyber Division was in charge of the investigation. Cyberstalking carries a maximum prison sentence of five years. The sentencing hearing is scheduled for October 12, 2022.
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Statement of U.S. Attorney Damian Williams on the Espionage Conviction of Ex-CIA Programmer Joshua Adam SchulteRead the Press Release
Joshua Adam Schulte was a CIA programmer with access to some of the country’s most valuable intelligence-gathering cyber tools used to battle terrorist organizations and other malign influences around the globe. When Schulte began to harbor resentment toward the CIA, he covertly collected those tools and provided them to WikiLeaks, making some of our most critical intelligence tools known to the public – and therefore, our adversaries. Moreover, Schulte was aware that the collateral damage of his retribution could pose an extraordinary threat to this nation if made public, rendering them essentially useless, having a devastating effect on our intelligence community by providing critical intelligence to those who wish to do us harm. Today, Schulte has been convicted for one of the most brazen and damaging acts of espionage in American history.
Springfield, Illinois, Man Sentenced to Six Months’ Home Confinement, Fined for COVID-19 Related FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, Thalamus Alexander, Jr., 27, of the 2000 block of Bradley Court was sentenced on July 12, 2022, to six months’ home confinement, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $50,000 for wire fraud and theft of government property.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government presented evidence that Alexander fraudulently obtained an Economic Injury Disaster Loan (“EIDL”) from the U.S. Small Business Administration (“SBA”). The loans were funded through the CARES Act in response to the global pandemic caused by COVID-19. The EIDL funds were intended to provide low-interest loans to businesses that were unable to cover their fixed costs due to the pandemic. Alexander submitted six applications containing various falsehoods in an effort to obtain EIDL funding. On the application that was accepted and funded, Alexander falsely represented that he owned and operated a clothing and apparel business, Paper Junkie Desiner, that had generated $100,000 in revenue in the 12 months prior to January 31, 2020. Due to the misrepresentations, Alexander was granted a $49,000 loan and a $1,000 advance. Alexander did not have a registered business in the state of Illinois.
Also at the hearing, Judge Myerscough found that Alexander deprived other legitimate businesses of the funds that had been set aside to assist those who had been hit hard by the pandemic. By committing this fraud, Alexander was essentially stealing from small businesses in need.
Alexander was indicted in October 2021 and plead guilty in February 2022.
The statutory penalties for wire fraud are up to 20 years in prison, up to a $250,000 fine, and up to three years of supervised release. The statutory penalties for theft of government property are up to 10 years in prison, up to a $250,000 fine, and up to three years of supervised release.
“Individuals who fraudulently obtained funds through pandemic-related programs took necessary resources from other citizens in need,” said Assistant U.S. Attorney Sierra Senor-Moore. “The EIDL and PPP loans were funded using tax payor money. We all suffer when government programs are defrauded and those who criminally misused funds intended for COVID relief will be prosecuted.”
If members of the public are aware of COVID-19 related loans that they suspect were fraudulently obtained or forgiven, they should report it to the Office of Inspector General for the Small Business
Administration, 1-800-767-0385, or online at https://sbax.sba.gov/oigcss/. Reports can be made anonymously.
The Internal Revenue Service, Criminal Investigations, investigated the case. Assistant U.S. Attorney Senor-Moore represented the government in the prosecution.
South Florida PPE Thieves Headed to Federal PrisonRead the Press Release
Miami, Florida – Today, a federal district judge in Fort Lauderdale, Florida sentenced three members of a theft ring to federal prison terms for stealing large quantities of N-95 respirator masks, nitrile medical gloves, and medical gowns from a Broward County medical supply company during the early spread of Covid-19 in the United States.
U.S. District Judge Rodney Smith sentenced Alexander G. Jolly, Kenold Million, and Pietro Felipe Sinclair each to 28 months in federal prison, followed by three years of supervised release. In addition, Judge Smith ordered the defendants to pay over $470,000 in restitution.
Jolly and Million worked for a large medical supply company that provides personal protective equipment (PPE) and other products to hospitals for front-line health care workers. Sinclair worked for the trucking company that the medical supply company used to transport pallets of products to South Florida hospitals. In April 2020, during the start of the Covid-19 pandemic, when PPE was in high demand, Jolly and Million used their jobs at the medical supply company’s warehouse in Sunrise, Florida to steal PPE. They moved pallets containing large quantities of N-95 respirator masks, nitrile medical gloves, and gowns to certain areas of the warehouse. Sinclair would load the pallets onto his work truck (along with legitimate loads) and transport the stolen PPE to Jolly and Million’s home in Fort Lauderdale, Florida. Once there, Sinclair transferred the stolen pallets from the truck to the home’s carport. He used pieces of cardboard and furniture to hide the pallets from view. Then, rental trucks and vans were used to move the stolen PPE from Jolly and Million’s home to different locations in Broward and Miami-Dade.
Jolly, Million and Sinclair stole more than 8.5 million pairs of gloves, more than 57,000 respirator masks, and dozens of gowns from the medical supply company’s warehouse. The total replacement cost of the stolen PPE was $470,000. This was one of the largest known thefts of PPE in U.S. history.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Justin C. Fielder, Special Agent in Charge, Food and Drug Administration (FDA) Office of Criminal Investigations Miami Field Office, and Juan A. Vargas, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
The FDA Office of Criminal Investigations Miami Field Office investigated the case. Assistant U.S. Attorney James Ustynoski prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60007.
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Solera Specialty Pharmacy Agrees to Enter into Deferred Prosecution Agreement; Company and CEO to Pay $1.31 Million for Submitting False Claims for Anti-Overdose DrugRead the Press Release
Florida-based Solera Specialty Pharmacy has entered into a deferred prosecution agreement and agreed to pay a $1.31 million civil settlement to resolve allegations that it submitted fraudulent claims to Medicare for Evzio, a high-priced drug used in rapid reversal of opioid overdoses.
According to Solera’s admissions in the criminal and civil agreements, the pharmacy dispensed Evzio from January 2017 to May 2018. During that time, Evzio was the highest-priced version of naloxone on the market and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio. Solera completed Evzio prior authorizations forms in place of the prescribing physicians, including instances in which Solera staff signed the forms without the physician’s authorization and listed Solera’s contact information as if it were the physician’s information. In addition, Solera submitted Evzio prior authorization requests that contained false clinical information to secure approval for the expensive drug. Finally, Solera waived Medicare beneficiary co-payment obligations for Evzio on numerous occasions without analyzing whether the patient had a genuine financial hardship.
“Pharmacies, like all Medicare providers, must submit accurate claims,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing submissions of false claims by entities at all levels of the health care delivery chain.”
“Taxpayers deserve honesty and integrity from those who profit from federal health care programs,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “This resolution will provide oversight to correct behavior and prevent it from happening again.”
Solera entered into a deferred prosecution agreement in connection with a criminal information charging the pharmacy with one count of health care fraud. Solera and its CEO, Nicholas Saraniti, also entered into a civil settlement agreement and will pay the government $1.31 million to resolve claims under the False Claims Act.
In connection with the settlements, Solera and Saraniti entered into a three-year integrity agreement (IA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The IA requires, among other things, Solera implement measures designed to ensure that its submission of claims for pharmaceutical products complies with applicable law relating to prior authorizations and collection of beneficiary co-payment obligations. In addition, the IA requires reviews by an independent review organization.
“The submission of truthful and accurate documentation by all parties involved in the delivery of health care goods or services is essential to the integrity of federal health care programs. This includes pharmacies that submit claims for pharmaceutical products,” said Special Agent in Charge Phillip M. Coyne of the HHS-OIG. “Along with our law enforcement partners, HHS-OIG is committed to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“Today’s settlement resolves serious allegations that Solera submitted false and fraudulent claims to Medicare for their own financial gain, pilfering funds from a program intended to help those truly in need, while going behind the backs of prescribing physicians to secure approval for this expensive anti-overdose drug,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “This is not a victimless crime — health care fraud is a crime against all of us who contribute hard earned income and taxes into the system. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo Inc., the manufacturer of Evzio. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Ms. Socol will receive $262,000 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. Solera Specialty Pharmacy LLC., 18-cv010050-RGS (D. Mass.) (under seal). In 2021, the department announced settlements with kaléo for $12.7 million and with other pharmacies for $1 million relating to the submission of false claims for Evzio.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the HHS OIG; the Department of Defense Criminal Investigative Service; the Office of Personal Management, Office of Inspector General; the FBI; and the U.S. Postal Service Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorneys David Derusha, Abraham George and Amanda P.M. Strachan for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sioux City Felon Who Was Armed with a Handgun When Arrested Sentenced to Six Years in Federal PrisonRead the Press Release
A 23-year-old Sioux City man who unlawfully possessed a gun was sentenced on July 7, 2022, to six years in federal prison.
Denvy Hoffman, age 23, from Sioux City, Iowa, received the prison term after a March 8, 2022 guilty plea to possession of a firearm by a felon.
Evidence in the case revealed that Hoffman possessed a gun after being convicted on felony intent to deliver marijuana. During the investigation, Hoffman was apprehended on a pending felony state arrest warrant leaving a downtown Sioux City bar. An arresting officer noted the odor of marijuana emanating from Hoffman and located a loaded pistol and marijuana on Hoffman’s person. Hoffman has history of drug convictions, resisting arrest, and failures on state probation, parole and drug treatment.
Hoffman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hoffman was sentenced to 72 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hoffman is being held in the custody of the United States Marshal’s until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-04074
Seymour Man Sentenced to More Than 5 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that LOUIE McDOWELL, 49, of Seymour, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 66 months of imprisonment, followed by five years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that McDowell, Christian Rodriguez, Antonio Small, Evan Sheffield, Anthony Small and others were distributing large quantities of heroin, fentanyl and crack cocaine in the Bridgeport area.
McDowell and several of his co-conspirators were arrested on November 6, 2018. On that date, a search of McDowell’s residence on Cedar Street in Seymour revealed quantities of cocaine and heroin, items used to process and package narcotics, firearms and ammunition, jewelry, and approximately $129,000 in cash. A related search of a safety deposit box that McDowell used revealed approximately $217,000 in cash.
Judge Thompson ordered the forfeiture of the seized firearms, jewelry and cash.
McDowell has been detained since his arrest. On July 14, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute controlled substances, and one count of possession of a firearm during and relation to a drug trafficking crime.
Rodriguez, Antonio Small, Sheffield and Anthony Small also pleaded guilty. On October 27, 2020, Sheffield was sentenced to 97 months of imprisonment, and on February 11, 2022, Rodriguez was sentenced to 60 months of imprisonment.
Antonio Small and Anthony Small await sentencing.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Seven More Defendants Plead Guilty to Drug-Trafficking Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Seven more defendants have pleaded guilty in federal court to their roles in a major drug-trafficking conspiracy and to illegally possessing firearms.
Four defendants pleaded guilty in separate appearances before U.S. District Judge Greg Kays on Tuesday, July 12. Sonia Lara, 32, of Independence, Mo.; Haydee Griselda Erazo-Moreno, 39, a citizen of El Salvador residing in Kansas City, Mo.; and Yader J. Arita, 33, of Kansas City, Kansas, each pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin from Jan. 1, 2014, to June 23, 2020, and one count of conspiracy to commit money laundering. Erazo-Morena also pleaded guilty to one count of using firearms in furtherance of a drug-trafficking crime. Jose Antonio Soto Herrera, 60, a citizen of Mexico residing in Coachella, California, pleaded guilty to misprision of a felony.
Sergio Perez-Martinez, 43, a citizen of Mexico residing in Panorama City, Calif., and Ruben Chigo Paz, 26, of Kansas City, Mo., pleaded guilty on Monday, July 11. Perez Martinez pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of conspiracy to commit money laundering. Paz pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin, one count of conspiracy to commit money laundering, and one count of using firearms in furtherance of a drug-trafficking crime.
Melvin Aleman-Nunez, 27, of Independence, pleaded guilty on Friday, July 8, to his role in the methamphetamine and money-laundering conspiracies, and to using firearms in furtherance of a drug-trafficking crime.
They are among 18 defendants who have pleaded guilty in this case.
Lara admitted that she was responsible for the distribution of at least 10 kilograms of methamphetamine and one kilogram of heroin during the drug-trafficking conspiracy.
Erazo-Moreno admitted that she was responsible for the distribution of at least five kilograms of methamphetamine and one kilogram of heroin during the drug-trafficking conspiracy.
She was involved in the sale of approximately 3.5 kilograms of methamphetamine and 1.2 kilograms of heroin to confidential sources and undercover law enforcement officers between February and October 2019. In addition, law enforcement officers in the Eastern District of Missouri purchased approximately 900 grams of heroin in controlled buys. Erazo-Moreno also admitted that she sold, traded, or possessed multiple firearms during these drug-trafficking activities.Arita admitted that he was involved in the sale of methamphetamine to an undercover law enforcement officer on several occasions. Arita was arrested following a traffic stop on Sept. 5, 2018, in which officers found approximately three pounds (896 grams) of methamphetamine in his vehicle.
Perez-Martinez admitted that he is responsible for the distribution of at least 15 kilograms of methamphetamine during the conspiracy.
Perez-Martinez and Aleman-Nunez each admitted that Perez-Martinez supplied Aleman-Nunez with eight to 10 pounds of methamphetamine each week for five weeks. Perez-Martinez transported the methamphetamine from California to Missouri either by mail or by tractor trailer.
Perez-Martinez also admitted that he provided two kilograms of methamphetamine to Erazo-Moreno, who was paid to transport the methamphetamine to a customer in Columbia, Mo. The methamphetamine was seized by law enforcement officers when Erazo-Moreno was arrested during a traffic stop on Oct. 25, 2018. In total, Erazo-Moreno received more than six kilograms of methamphetamine from Perez-Martinez’s associates in Kansas City, Mo. Additionally, a law enforcement confidential informant conducted controlled drug purchases totaling 1,559 grams of methamphetamine, which were coordinated by Perez-Martinez.
Paz admitted that he is responsible for the distribution of more than 1.5 kilograms of methamphetamine during the conspiracy. Paz admitted that he sold a total of 1,314.49 grams of methamphetamine to a law enforcement confidential source from July 13 to Dec. 4, 2018. Paz was arrested at a residence in Kansas City, Mo., in which law enforcement officers found 37 pounds of methamphetamine, one pound of heroin, and a Zenith .45-caliber pistol with a magazine.
Aleman-Nunez admitted that he sold a total 2,225.9 grams of methamphetamine to two law enforcement confidential informants. During one of those transactions on Oct. 17, 2018, Aleman-Nunez told a confidential informant that he had sold seven pounds of methamphetamine in the last few days. Aleman-Nunez was arrested on April 30, 2019, when law enforcement officers were called to his residence on a disturbance. Officers searched the residence and found a stolen handgun, ammunition, approximately half an ounce of methamphetamine and drug paraphernalia.
Under the terms of their plea agreements, Lara, Erazo-Morena, Arita, Perez-Martinez, Paz and Aleman-Nunez each must forfeit to the government a money judgment according to their drug responsibility as determined by the court at sentencing, based upon drug value calculations but not to exceed $882,000, which represents the proceeds of the unlawful distribution of more than 220 pounds of methamphetamine (based on an average price of $3,500 per pound of methamphetamine) and more than two kilograms of heroin (based on an average price of $1,400 per ounce of heroin).
Under federal statutes, Erazo-Morena, Arita, and Aleman-Nunez each are subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. Lara and Perez-Martinez each are subject to a mandatory minimum sentence of up to 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Paz is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert M. Smith. It was investigated by the FBI, the Independence, Mo., Police Department, the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department, Homeland Security Investigations, and the U.S. Marshals Service.
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.