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13 July 2022
Seasoned Federal Prosecutor Receives the Attorney General's Award for Fraud PreventionRead the Press Release
CHARLOTTE, N.C. – Attorney General Merrick B. Garland announced the recipients for the 69th Annual Attorney General’s Awards yesterday, recognizing Department of Justice employees and partners for their extraordinary contributions to the enforcement of our nation’s laws.
Daniel Ryan, Assistant United States Attorney (AUSA) for the Western District of North Carolina, was among the 298 Justice Department employees and 54 non-department individuals who were honored for their work. AUSA Ryan was part of a team receiving the Attorney General’s Award for Fraud Prevention, which recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption.
“This year’s awardees have served selflessly to further the Department’s important work upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Garland. “I am proud to recognize these individuals for their professionalism, skill, and leadership, and I am grateful for their service to our Department and our nation.”
“AUSA Ryan is a worthy recipient of this prestigious award. As a seasoned federal prosecutor, he is being recognized for his tireless dedication to the pursuit of justice. His contributions to the community, his advocacy on behalf of victims, and his high standards of professional conduct exemplify his commitment to our office’s mission,” said U.S. Attorney King.
AUSA Ryan is the recipient of the award for his legal work in connection with the multi-agency investigation of Wells Fargo’s unlawful sales practices, including the opening of millions of accounts without customer authorization. The dedicated efforts of AUSA Ryan and his colleagues, which resulted in the payment of a $3 billion penalty, ensured that Wells Fargo was held accountable for its conduct and that affected victims were made whole.
This is AUSA Ryan’s second Attorney General Award. In 2015, AUSA Ryan was awarded the Attorney General’s Award for Distinguished Service for his work in connection with the Department of Justice’s record breaking $16.65 billion settlement with Bank of America concerning its origination and securitization of residential mortgages.
AUSA Ryan received his undergraduate degree from the University of Notre Dame and his law degree from Harvard School of Law.
In making today’s announcement, U.S. Attorney King thanked AUSA Ryan for his tireless dedication to fulfilling the Justice Department’s mission and noted that it is an honor and a privilege to recognize him both for his accomplishments and public service.
Rome Donut Shop Owners Sentenced to Prison for Tax EvasionRead the Press Release
SYRACUSE, NEW YORK – A Rome, New York couple and their adult son were sentenced today in federal court in Utica for tax evasion and conspiracy to defraud the United States, announced United States Attorney Carla B. Freedman, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, New York Field Office.
In November 2021, John Zourdos, age 69, his wife, Helen Zourdos, age 65, and their son, Dimitrios Zourdos, age 39, were each convicted of conspiracy to defraud the United States, tax evasion, and helping to file false corporate tax returns. U.S. District Court Judge David N. Hurd sentenced John Zourdos to 30 months’ imprisonment; Helen Zourdos to 20 months’ imprisonment; and Dimitrios Zourdos to 10 months’ imprisonment. Judge Hurd also ordered the defendants to pay $2,000,769 in restitution to the United States and to serve 3 years of supervised release after they complete their terms of incarceration.
According to evidence presented at trial and other court documents, John, Helen, and Dimitrios Zourdos operated three Dippin Donuts coffee and donut shops with locations in Rome and New Hartford. From 2012 to 2017, the trio concealed from the IRS approximately $4.5 million in cash sales. During that period, they evaded more than $2 million in individual and corporate taxes, by, among other things, depositing cash directly into their personal bank accounts instead of into business bank accounts, providing incomplete information to their accountants, causing their accountants to file false individual and corporate tax returns with the IRS, and funding personal expenditures directly with undeposited and unreported cash. They used unreported income to fund a lavish lifestyle that included multiple luxury vehicles, expensive watches, investment accounts, and real estate. They also paid some of their employees “off the books” cash wages to avoid federal payroll taxes.
This case was investigated by the IRS Criminal Investigation Division. It was prosecuted by Assistant Chief John N. Kane of the Justice Department’s Tax Division and Assistant United States Attorney Michael F. Perry.
Repeat Offender Sentenced to 10 Years in Prison for Knowingly Possessing Visual Depictions of Children Engaging in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — William Richter, 39, of Shasta County, was sentenced Tuesday to 10 years in prison, plus 20 years of supervised release, for knowing possession of visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
Additionally, Richter was ordered to pay $3,000 in victim restitution and was sentenced to an additional four months in prison for violating the terms of his supervised release on his prior federal case.
According to court documents, Richter had been convicted of the same offense in 2013, and was on federal supervised release when he committed this new crime on July 23, 2020. On that date, Richter was pulled over for a traffic violation. A smart phone was discovered hidden in Richter’s driver’s seat cover. According to the terms of his supervised release, Richter was not allowed to use the internet or to possess a smart phone. Forensic analysis revealed that Richter possessed at least 51 explicit photographs and three videos of pre-pubescent minors on his phone, one of which depicted sexual abuse of an infant. The victims in the images came from locations outside of California, such as the Philippines, Germany, Russia, Ukraine, Ecuador, Slovenia, Sweden, Pennsylvania, Alabama, Virginia, Florida, Tennessee, Utah, and Delaware. Richter had installed programs such as Kik messenger, VLC media player, the TOR browser, Yo Live, Telegram and Mega on his unauthorized phone, and accessed websites which likely hosted sexually explicit conduct.
This case is the product of an investigation by Homeland Security Investigations and the Shasta County Sheriff’s Office. Assistant U.S. Attorney Christina McCall is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Previously convicted sex offender sentenced to 35 years in prison for federal child pornography crimesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Donald Alvin Tolbert was sentenced on July 12 to 35 years in prison. Tolbert, 53, of Albuquerque, pleaded guilty on July 8, 2019, to 12 counts of distribution, receipt, and possession of videos and images containing child pornography.
According to the plea agreement and other court records, between July 17, 2012, and September 20, 2012, Tolbert sent and received numerous images and videos of child pornography by email. Tolbert then transferred several of those pornographic images and videos between his multiple email accounts. Tolbert also stored videos and images of child pornography on his mother’s computers.
At the time Tolbert committed these crimes he had been convicted of sexual offenses previously in New Mexico. In 2006, Tolbert was convicted of two counts of criminal sexual contact of a minor in the third degree, one count of kidnapping, one count of bribery of a witness and one misdemeanor count of battery.
“The U.S. Attorney’s Office will bring the full weight of the law to bear upon those who sexually exploit children,” said U.S. Attorney Uballez. “This case is an example of how federal, state, and local law enforcement cooperate together to keep our children safe. Most importantly, I thank the victims and witnesses who bravely shared their stories during the course of this case; your bravery has made a difference.”
Upon his release from prison, Tolbert will be subject to 10 years of supervised release and must register as a sex offender.
The Albuquerque office of Homeland Security Investigations (HSI), New Mexico Attorney General’s Office, New Mexico State Probation and Parole, and the New Mexico Regional Computer Forensics Laboratory investigated this case as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. U.S. Attorney Uballez and Assistant U.S. Attorney Kristopher N. Houghton prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
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Postal Worker Charged with Obstruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN HART, age 31, a resident of Marrero, Louisiana, was charged on July 12, 2022 in a one-count bill of information with obstruction of mail, announced United States Attorney Duane A. Evans.
According to court documents, HART was employed by the United States Postal Service as a City Carrier Associate and was assigned to work at the Johnson Street Post Office in Metairie, Louisiana, 70001. On or about July 1, 2021, HART knowingly and willfully did obstruct and retard the passage of the mail in that he unlawfully secreted, destroyed, detained, and delayed approximately 236 pieces of mail that were recovered from a dumpster in Metairie.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, the defendant faces a maximum penalty of up to six (6) months imprisonment, up to a $5,000 fine or the greater of twice the gross grain to defendant or twice to gross loss to any person under Title 18, United States Code, Section 3571, and a $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the U.S. Postal Service Office of Inspector General in investigating this matter. Assistant U. S. Attorney Rachal Cassagne is in charge of the prosecution.
Port Angeles, Washington, man who prompted evacuation in Olympic National Park, pleads guilty to interfering with a government communication systemRead the Press Release
Tacoma – A 42-year-old Port Angeles, Washington, man pleaded guilty today in U.S. District Court in Tacoma to interfering with a federal communications system, announced U.S. Attorney Nick Brown. Caleb Jesse Chapman’s actions from August 29, 2021 to August 31, 2021, resulted in the evacuation and closure of a popular section of Olympic National Park, at one the busiest times of the year. Under the terms of the plea agreement prosecutors will recommend no more than ten months in prison when Chapman is sentenced by U.S. District Judge Robert J. Bryan on October 7, 2022.
According to the plea agreement, just after midnight on August 29, 2021, Chapman appeared at a stranger’s home armed with a handgun and AR-15 style rifle. Chapman admits he was high on methamphetamine when he handed the stranger a letter outlining his concerns over political events, his difficulty getting ammunition, and his belief that there would be a revolution starting on the Olympic Peninsula, Texas and elsewhere.
Chapman drove his girlfriend to Olympic National Park where he felled a tree to block a road to the Deer Park campground. Chapman told his girlfriend she was going to die in the “revolution.” The girlfriend called 9-1-1 and Chapman threw a can of soup at her, cutting her leg. Chapman stormed off into the woods with nine firearms including a stolen handgun, an AR-15 and two shotguns. He had more than 3500 rounds of ammunition.
Law enforcement evacuated the Deer Park campgrounds, trailheads, and road areas, and attempted to locate Chapman. Around 3 PM on August 29, 2021, Chapman disabled the Olympic National Park radio communications site (radio repeater) located at the summit of Blue Mountain. The repeater is used by the park for emergency response, public safety, and administrative radio communications. By disabling the repeater, Chapman left the northeast corner of the park without emergency communications. In fact, the Blue Mountain repeater was also the repeater that the NPS Search and Rescue helicopter based at Mt. Rainier would need to use, for a rescue at Olympic National Park.
On August 31, 2021, a drone located Chapman in the park. Chapman fired a short barrel shotgun at the drone. Ultimately, law enforcement was able to negotiate Chapman’s surrender with no injuries to anyone.
As part of the plea agreement, Chapman has agreed to make restitution to those harmed by his actions, including losses to the National Park Service, and to specific individuals, incurred because of the closure of portions of Olympic National Park, including the popular Hurricane Ridge Visitor’s Center.
Interference with a federal communications system is punishable by up to ten years in prison. Judge Bryan is not bound by prosecutors’ ten-month recommendation and can impose any sentence up to the statutory maximum after considering the sentencing guidelines and other statutory factors.
The case was investigated by the Investigative Services Branch of the National Park Service, the FBI, and the Olympic Peninsula Narcotics Enforcement Team (OPNET) which includes officers from Jefferson County Sheriff’s Office, Clallam County Sheriff’s Office, the Sequim, Port Angeles, and Port Townsend Police Departments and the U.S. Border Patrol.
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
Pittsburgh Cocaine Dealer Sentenced to 15 Years' ImprisonmentRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years of imprisonment and 10 years of supervised release on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Cadee Akins Sr., age 50, formerly of the City’s Stanton Heights neighborhood.
According to information presented to the court, Akins Sr. conspired to possess with intent to distribute and distribute five kilograms or more of cocaine and 280 grams or more of cocaine base. The investigation revealed that from November 2017 to September 2020, the defendant distributed cocaine to multiple individuals who in turn distributed cocaine to lower-level dealers and end users. Additionally, during a July 2019 traffic stop, law enforcement seized two kilograms of cocaine from the defendant, who was operating a rental vehicle. In a subsequent traffic stop in March 2020, law enforcement seized approximately $50,600 in drug proceeds from the defendant.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Drug Enforcement Administration and the Pennsylvania Office of Attorney General for the investigation leading to the successful prosecution of Akins Sr.
Pharmacy Agrees to Enter into Deferred Prosecution and Civil Settlement Agreements in Connection with Fraudulent Claims for Anti-Overdose DrugRead the Press Release
BOSTON – Florida-based Solera Specialty Pharmacy has entered into a deferred prosecution agreement and has agreed, along with its Chief Executive Officer (CEO), 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 the admissions of Solera and its CEO Nicholas Saraniti in the civil agreement, and Solera’s additional admissions in the criminal agreement, 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 authorization 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. In addition, Solera submitted Evzio prior authorization forms 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.
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, Saraniti, also entered into a civil settlement agreement and will pay the government $1.31 million to resolve claims under the False Claims Act.
“Taxpayers deserve honesty and integrity from those who profit from federal health care programs,” said United States Attorney Rachael S. Rollins. “This resolution will provide oversight to correct behavior and prevent it from happening again.”
“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.”
In connection with the settlement, 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. The IA requires, among other things, that 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 Department of Health and Human Services Office of Inspector General (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 Joseph R. Bonavolonta, Special Agent in Charge 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. 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.
U.S. Attorney Rollins, Principal Deputy AAG Boynton of the Justice Department’s Civil Division, HHS-OIG SAC Coyne and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys David J. Derusha, Abraham R. George, and Amanda P.M. Strachan of Rollins’s Office and Senior Trial Counsel Sarah Arni of the Justice Department’s Civil Division handled the matter.
Passaic County Man Admits Role in Illegal Money Transmitting SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in an illegal money transmitting business, U.S. Attorney Philip R. Sellinger announced.
Enmanuel Nunez-Reyes, 29, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with aiding and abetting an illegal money transmitting business.
According to documents filed in this case and statements made in court:
From December 2016 through September 2017, Nunez-Reyes accepted over $2.8 million in cash and purchased over 100 cashier’s checks at local bank branches in New Jersey and elsewhere, the proceeds of illegal drug distribution. The check purchases were part of an illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks.
The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Oct. 18, 2022.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the DEA Special Operations Division, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; the Morristown, New Jersey, Police Department, under the direction of Acting Police Chief Darnell Richardson; and the Passaic, NJ Police Department under the direction of Chief Luis A. Guzman. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
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.
Defense counsel: Wanda M. Akin Esq., Newark
Parker Man and Woman Sentenced in Connection with Robbery After Stealing Victim’s VehicleRead the Press Release
PHOENIX, Ariz. – On Monday, Andre Stephan Stevens, 21, and Tenelle Inez Moses, 32, both of Parker, Arizona, were sentenced by United States District Judge Michael T. Liburdi. Stevens, who previously pleaded guilty to Robbery, was sentenced to 126 months in prison, followed by three years of supervised release. Moses, who previously pleaded guilty to Accessory After the Fact, was sentenced to 46 months in prison, followed by three years of supervised release.
On October 29, 2019, Stevens assaulted the victim outside of Moses’ residence in Parker. After the assault, Moses and Stevens drove the victim’s vehicle to a remote location near a casino in Parker. The victim was in the back seat when Stevens told Moses to pull over. Moses stopped the vehicle and Stevens threw the victim out of the victim’s own vehicle. Moses and Stevens then fled the scene in the victim’s vehicle. Stevens later led law enforcement on a high-speed chase, driving the victim’s vehicle with Moses in the passenger seat. The police pursuit was abandoned due to safety concerns, but Stevens and Moses were arrested later that morning. These offenses occurred on the Colorado River Indian Tribes (CRIT) Reservation. Stevens, Moses, and the victim are all enrolled members of the CRIT Tribe.
The FBI and the CRIT Police Department conducted the investigation in this case. Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00317-PHX-MTL
RELEASE NUMBER: 2022-115_Stevens-Moses# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Palm Beach Art Dealer Indicted on Charges Related to Art Fraud SchemeRead the Press Release
Miami, Florida – Palm Beach art dealer Daniel Elie Bouaziz was charged by Indictment with mail fraud, wire fraud, and money laundering in connection with his alleged scheme to sell forged high-end artwork.
The indictment alleges Bouaziz engaged in a scheme to sell paintings and other artwork that he falsely marketed for sale as original or authentic pieces by prominent artists, including Jean-Michel Basquiat, Andy Warhol, Banksy, and Roy Lichtenstein. The indictment further alleges that the fraudulent art, that was purchased from Bouaziz, was picked up from Bouaziz’s South Florida galleries, mailed by commercial interstate carrier, and hand-delivered to Bouaziz’s victims. Bouaziz purchased and acquired pieces from various sources, to include online auction sites at low prices, and falsely sold the pieces as originals, at drastically increased prices, at his retail art galleries on Worth Avenue in Palm Beach, Florida. To make the fraudulent art appear authentic, Bouaziz allegedly made false representations to prospective buyers regarding the provenance and originality of the art. To support these false statements, it is alleged Bouaziz, among other things: (1) provided prospective buyers with invoices and documents that included false provenance information; (2) omitted descriptors that were included with low-cost online purchases, to include “after” and “reproduction” language; (3) sold prospective buyers pieces on which false edition numbers and artists’ signatures had been added; and (4) provided prospective buyers with certificates of authenticity that included false assertions and appraisals which had a stamped signature block that read “Daniel Bouaziz, Certified International Fine Art Appraiser.”
The indictment further alleges that Bouaziz committed money laundering by engaging in transactions in criminally derived property.
Bouaziz was previously charged in a criminal complaint under case number 22-mj-08209-RMM.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; John J. Bernardo, Acting Special Agent in Charge, FBI Miami; and Matthew D. Line, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI) Miami Office, made the announcement.
FBI Miami’s West Palm Beach Office and IRS-CI Miami investigated this matter. Assistant U.S. Attorney Sarah J. Schall is prosecuting this case. Assistant U.S. Attorney Peter A. Laserna is handling the asset forfeiture aspects of this case.
An indictment contains mere allegations. The defendant is presumed innocent unless and until proven guilty in a court of law.
If you believe you have been a victim of art fraud, please contact the FBI’s Art Crime Team at 1-800-CALL-FBI.
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-80099.
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Owners and Operators of Mid-State Japanese Restaurants Indicted in Conspiracies Related to Harboring Undocumented WorkersRead the Press Release
NASHVILLE – A nine-count federal indictment, unsealed today, charges four individuals with conspiracy to harbor undocumented workers while employing them to work at various mid-state restaurants, harboring undocumented workers, and conspiracy to commit money laundering, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. The indictment also charges these individuals and another person with conspiracy to defraud the United States by failing to collect and pay employment taxes to the IRS.
Those charged in the indictment are: Zhongzhi “Tommy” Zhuo, 46, Jianping “Alan” Zhuo, 37, and Xiaofen “Joyce” Zhuo, 38, all of Hendersonville, Tennessee; and Jianhua “Jason” Zhuo, 35, and Lili Wu, 32, both of Gallatin, Tennessee.
The indictment alleges that Zhongzhi, Jianping, and Jianhua Zhuo, along with Lily Wu, as the owners or operators of several middle Tennessee restaurants, participated in a scheme to harbor persons who were in the United States illegally, by providing a means of financial support through employment at the restaurants and providing them with housing and transportation. The restaurants identified in the indictment include the Fuji Japanese Steakhouse, with locations in Hendersonville, Goodlettsville, and Whitehouse, Tennessee; Bonfire Mongolian Grill, with locations in Hendersonville, Clarksville, Mount Juliet, and Spring Hill, Tennessee; and the Koi Japanese Steakhouse in Gallatin, Tennessee.
The indictment also alleges that residential properties owned or leased by one or more of the defendants were used to house undocumented workers, including properties in Hendersonville, Gallatin, Goodlettsville, Clarksville, Mount Juliet, and Spring Hill.
Other allegations in the indictment include that these defendants communicated with and paid a broker to find and deliver undocumented workers to work at the restaurants; employed undocumented workers without requiring them to complete applications or collecting any documents to determine the worker’s immigration status and employment authorization; housed the undocumented workers at the residences; transported the undocumented workers between the residences and restaurants; and maintained separate books accounting for payments to undocumented workers made outside of the regular payroll system.
The allegations also include that these defendants, along with Xiaofen “Joyce” Zhuo, conspired to defraud the United States by paying undocumented workers in cash; failed to withhold and pay employment taxes to the IRS; and refused to allow undocumented workers to pay taxes, including for those that had Individual Taxpayer Identification Numbers. These defendants also conspired to provide understated wages to tax preparation businesses that prepared and filed tax forms with the IRS.
The indictment also contains a forfeiture allegation in which the United States seeks to forfeit four residences involved in the commission of the offenses, bank accounts, and a money judgement representing the amount of the proceeds of the crimes.
The charges carry maximum penalties between 5 and 20 years in prison, if convicted.
This case was investigated by Homeland Security Investigations; IRS-Criminal Investigation; the Tennessee Bureau of Investigation; and the Hendersonville Police Department. Assistant U.S. Attorneys Robert S. Levine and Thomas J. Jaworski are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Orange County Man Prohibited from Preparing Tax Returns after Filing Returns that Fraudulently Sought over $50 Million in RefundsRead the Press Release
SANTA ANA, California – A federal judge has ordered a Buena Park man to stop preparing or helping to prepare tax returns after federal authorities determined his clients filed tax returns that claimed bogus dependents and fraudulently sought more than $50 million in tax refunds.
The judgment that became public today enjoins Jose Pineda and his business – the Anaheim-based ABK Income Tax & Travel, Inc. – from directly or indirectly acting as federal tax return preparers and other federal tax-related activities.
According to a civil complaint filed in March 2021 by the United States, between 2013 and 2020, Pineda and ABK fraudulently claimed fabricated or unqualified dependents on their customers’ tax returns, thus claiming refundable credits to which they were not entitled, including the child tax credit, the additional child tax credit and the earned income credit.
When the IRS confronted taxpayers with the false returns, they confirmed the dependents were added fictitiously and they did not qualify for the tax benefit. A majority of Pineda and ABK’s customers came from Spanish-speaking immigrant communities in Orange County. Due to their limited education, language ability and knowledge of tax or accounting matters, most of Pineda and ABK’s customers followed Pineda’s direction to certify that their tax returns were correct, even though they did not understand contents of the returns.
Pineda and ABK’s customers revealed during interviews with IRS authorities that, even when Pineda and ABK knew the IRS was disallowing erroneously claimed dependents, Pineda and ABK continued to falsely report these same dependents on their customers’ tax returns for subsequent years. According to the government’s complaint, between 2016 and 2020, Pineda and ABK prepared approximately 22,340 federal income tax returns, and 89% of those returns sought refunds – a total of approximately $51,899,961 in refunds, most of which stemmed from fraudulent deductions on those returns.
This case was handled by Assistant United States Attorney Najah Shariff of the Tax Division. The IRS’ Abusive Transactions Investigation Group conducted the investigation in this matter.
The judgment entered today on the court’s docket concludes the government’s case in United States v. Jose Pineda, individually and doing business as ABK Income Tax & Travel, and ABK Income Tax & Travel, Inc., SACV21-463. United States District Judge David O. Carter on Tuesday filed the judgment for injunction with the consent of Pineda and ABK.
Return preparer fraud remains a high priority of the IRS, and taxpayers seeking a return preparer should remain vigilant. The IRS has published tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
Nigerian National Sentenced to Eight Years in Federal Prison for an Elder Fraud Scheme and Unrelated Cares Act Covid-19 Unemployment Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Oluwaseyi Akinyemi, a/k/a “Paddy Linkin”, a/k/a “Joseph Kadin”, age 35, of Hyattsville, Maryland, yesterday to eight years in federal prison, followed by three years of supervised release for two counts of mail fraud relating to a social media advanced fee fraud scheme that targeted elderly victims. Judge Chuang also ordered Akinyemi to pay $486,119.07 in restitution to his victims.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General; and Chief Malik Aziz of the Prince George’s County Police Department.
“Akinyemi committed elder fraud and CARES Act COVID-19 fraud, which are both priorities for this Office,” said United States Attorney for the District of Maryland Erek L. Barron. “Akinyemi not only took advantage of a nursing care patient, a national health crisis, and an employment crisis, but he also caused financial harm to at least 13 elderly victims.”
According to his guilty plea, from July 10, 2018 to April 29, 2019, Akinyemi and at least one co-conspirator engaged in a social media based elder fraud scheme. Members of the conspiracy targeted elderly victims on social media platforms, representing themselves as agents of both real and fictitious government agencies and offered victims non-existent financial rewards if the victims first sent cash, money orders, or gift cards to cover associated “taxes and fees.” Conspirators even impersonated social media accounts of the victim’s friends to vouch for their fraudulent financial scheme. Believing that they would receive a financial reward, the victims sent cash, money orders, gift cards, and other valuable items through the mail to Akinyemi as well as other members of the conspiracy in order to obtain a financial reward. Akinyemi, who lived in Landover, Maryland at the time, received packages under the aliases of Paddy Linkin,” “Flex,” “Joseph Kadin,” “Anna Marcos,” and other aliases. After receiving the fraudulently obtained funds, Akinyemi kept a portion of the funds and provided the rest of the fraudulently obtained cash to co-conspirators in Nigeria. Akinyemi admitted that this advance fee fraud scheme defrauded 13 victims from around the United States, ranging in age from 47 to 78 years old, of a total of $478,145.07.
For example, Victim 1, who was 78 years old and lived in Texas, received an application via social media to apply to a purported federal government grant program. The application was accompanied by a message from a person whom Victim 1 believed was a friend, vouching for the program. Victim 1 was told by members of the conspiracy that he had been approved for $100,000 in grant funds but would need to pay taxes before he could receive the grant funds. As instructed by members of the conspiracy, Victim 1 sent multiple packages of money, including to Akinyemi. To induce Victim 1 to continue to send money, members of the conspiracy sent Victim 1 electronic “certificates,” including a “Certificate of Completion” bearing the Internal Revenue Service seal, stating that it was from the “Federal and State Tax Institutes.” Victim 1 also received a certificate with a U.S. flag on it with the words “Federal Grants” next to it which included Victim 1’s full name and the text: “Federal Government Grants for the sum of $5,000,000.” After receiving these certificates, Victim 1 continued to send money to Akinyemi and other members of the conspiracy. In total, Victim 1 sent between approximately $70,000 to $80,000 to Akinyemi.
Victim 2, who was 71 years old and lived in Indiana, received a message from someone they believed to be a high school friend regarding a “Strengthening Community Fund,” but was, in fact, a member of the conspiracy posing as the victim’s high school friend. The conspiracy member told Victim 2 that they received money from the fund in the recent past and that there were different amounts for which a person could apply. The member of the conspiracy then provided Victim 2 with the contact information for a fictitious agent representing the “Fund.”
After Victim 2 contacted and sought information regarding the Fund, a member of the conspiracy masquerading as an agent asked Victim 2 if they were ready to apply. When Victim 2 communicated their desire to do so, the member of the conspiracy sought biographical information from Victim 2, including their monthly income. Once Victim 2 provided this information, the member of the conspiracy informed Victim 2 that they had been “approved.” Victim 2 applied for $80,000, which Victim 2 believed would cost $800 in fees. Victim 2 sent a total of approximately $50,000 in fictitious fees and taxes in order to obtain money from the fictitious fund.
During an interview with law enforcement on April 25, 2019, Akinyemi confirmed that he had received packages from victims throughout the country, detailed the scheme to defraud, and informed investigators that individuals in Nigeria were responsible for soliciting the victims to send money to him. Further, Akinyemi stated that he received approximately $80,000 in the mail in the year prior to his interview. A subsequent review of Akinyemi’s phone revealed, among other things, photos of tracking numbers and dollar amounts, a receipt for a money order, and conversations with conspirators discussing the percentage of the proceeds Akinyemi would take for his participation in the conspiracy. At least five victims suffered a substantial financial hardship as a result of the money that was fraudulently obtained by Akinyemi and his co-conspirators during the execution of the scheme.
According to his plea agreement, beginning in December 2020, Akinyemi and other co-conspirators also illegally obtained unemployment and CARES Act COVID-19 related benefits by filing fraudulent unemployment claims in the names of living and deceased victims from Maryland and Arizona. Akinyemi and his co-conspirators used the mailing address of his Landover residence, as well as the home address of a Washington D.C. client to whom Akinyemi provided at-home nursing care services to receive the fraudulent unemployment insurance debit cards in the mail. A total of nine unemployment insurance claims were filed using the address of Akinyemi’s D.C. nursing care client. As stated in his plea agreement, 10 CARES Act Pandemic Unemployment Assistance (“PUA”) claims were filed with the state of Maryland using Akinyemi’s Landover residence as the mailing address, with an intended loss of more than $170,000.
In total, Akinyemi and his co-conspirators used the identities of 19 real individuals to file fraudulent CARES Act unemployment insurance and PUA claims, causing an actual loss of more than $7,000, and an intended loss of $250,000 in state and federal benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Erek L. Barron commended HSI, the DOL-OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Rajeev R. Raghavan, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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New York Donut Shop Operators Sentenced to Prison for Tax EvasionRead the Press Release
A New York couple and their adult son were sentenced to prison today for conspiring to defraud the United States and for tax evasion.
In November 2021, John Zourdos, his wife Helen Zourdos and their son Dimitrios Zourdos, all of Rome, were each convicted by a federal jury of conspiracy to defraud the United States, tax evasion and helping to file false corporate tax returns. U.S. District Court Judge David N. Hurd sentenced John Zourdos to 30 months in prison, Helen Zourdos to 20 months in prison and Dimitrios Zourdos to 10 months in prison.
According to evidence presented at trial and other court documents, John, Helen and Dimitrios operated three Dippin Donuts coffee and donut shops with locations in Rome and New Hartford. From 2012 to 2017, the defendants concealed from the IRS approximately $4.5 million in cash sales. During that period, they evaded more than $2 million in individual and corporate taxes by, among other things, depositing cash directly into their personal bank accounts instead of into business bank accounts, providing incomplete information to their accountants, causing their accountants to file false individual and corporate tax returns with the IRS, and funding personal expenditures directly with undeposited and unreported cash. They used unreported income to fund a lavish lifestyle that included multiple luxury vehicles, expensive watches, investment accounts and real estate. They also paid some employees “off the books” cash wages for overtime hours, and paid other employees entirely in “off the books” cash.
In addition to the terms of imprisonment, Judge Hurd ordered each defendant to serve three years of supervised release and to pay more than $2 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman for the Northern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief John N. Kane of the Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York prosecuted the case.
New Orleans Man Sentenced to over 16 Years for Gun and Drug OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHEON COPPRUE, age 52, of New Orleans, was sentenced to sixteen and a half years in prison on charges relating to drug trafficking, firearm possession, and bribery.
COPPRUE previously pled guilty to conspiring to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846. COPPRUE also pled guilty to possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)(1), and bribery of a public official, in violation of 18 U.S.C. § 201(b)(1).
According to court documents, COPPRUE conspired with several California-based drug dealers, including codefendants Allen EDGERSON and Rachel CESARIO, to ship large quantities of methamphetamine from California to New Orleans. COPPRUE also bribed codefendant TONYA CALVIN, a postal worker, to deliver the drug-filled packages to him in New Orleans. COPPRUE, who was a felon and prohibited from possessing firearms, was caught with four firearms that he kept at his home and another address where he stored narcotics. All of COPPRUE’s co-defendants have already pled guilty, and all but CALVIN have already been sentenced. EDGERSON was sentenced to over seventeen years in prison, and CESARIO to five years in prison.
Today, U.S. District Judge Sarah S. Vance sentenced COPPRUE to a 198-month term of imprisonment or sixteen and a half years, a mandatory special assessment fee of $300, and five years of supervised release.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Navajo man sentenced to eight years in prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Meredith Yazzie, 51, of To’hajiilee, New Mexico, was sentenced on July 12 to eight years and four months in prison. Yazzie pleaded guilty on Sept. 13, 2021, to assault in Indian Country resulting in serious bodily injury and assaulting a federal officer.
In his plea agreement, Yazzie admitted that on May 25, 2020, he intentionally stabbed a man in the torso with a knife, causing a puncture to the man’s heart and lungs. During his apprehension on June 11, 2020, Yazzie raised a hatchet menacingly at a federal officer. The assaults occurred on the Navajo Nation in Bernalillo County, New Mexico.
Upon his release from prison, Yazzie will be subject to three years of supervised release.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Joseph Spindle prosecuted the case.
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Muskegon Man Charged with Drug Trafficking, Firearms OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Saul Douglas Briggs, a/k/a “76 Chain,” a/k/a “Chain,” a 32 year-old resident of Muskegon, Michigan, has been indicted on multiple drug trafficking charges, including conspiracy to distribute fentanyl, heroin, cocaine, and methamphetamine, as well as possession of controlled substances with the intent to distribute them. Briggs is also charged with illegal firearms possession and maintaining a drug house.
The charges stem from a series of search warrants conducted by law enforcement in and around the Muskegon area in June 2022. On the afternoon of June 15, 2022, investigators raided a residence at 2060 Letart Avenue in Muskegon, which they suspected to be a stash house used by Briggs and other drug traffickers to store and process their illegal products. Inside, investigators seized approximately 8 kilograms of suspected fentanyl, 774 grams of suspected black tar heroin, 61 grams of suspected cocaine, and 22 grams of suspected methamphetamine. They also seized extensive drug trafficking paraphernalia as well as seven firearms, including four assault style rifles, a tactical shotgun, and two semi-automatic pistols. They recovered one of the pistols under the seat of Briggs’s vehicle. In related searches as part of the same investigation, law enforcement also seized nearly $250,000 in cash believed to be proceeds of drug trafficking, jewelry, and multiple vehicles.
At the time of the search of the residence at 2060 Letart Avenue, Briggs, who had been inside, attempted to flee on foot, running out of the house and jumping over the back fence of the residence. Investigators apprehended Briggs and took him into custody at that time.
The investigation into Briggs is part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and has been led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). To date, the operation has led to the prosecution and conviction of 10 separate defendants on drug trafficking charges.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges in the indictment are merely accusations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Stephanie M. Carowan.
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Monongalia County woman guilty of child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nicole Renee Halterman, of Morgantown, West Virginia, has admitted to a child pornography charge, United States Attorney William Ihlenfeld announced.
Halterman, 32, pleaded guilty today to one count of “Possession of Child Pornography.” Halterman admitted to having child pornography in March 2021 in Monongalia County.
Halterman faces up to 20 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 David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Massachusetts Men Indicted for Conspiring to Steal 12 FirearmsRead the Press Release
CONCORD – Jaythean Diaz, 19, of Lawrence and Gary Ortiz, 18, of Haverhill, were indicted by a federal grand jury on July 11, 2022, and charged with one count of conspiracy to steal firearms from a New Hampshire Federal Firearm Licensee, United States Attorney Jane E. Young announced today.
Diaz and Ortiz were arrested in Lawrence today and released on electronic monitoring and a 8:00 pm to 6:00 am curfew.
The indictment filed in court alleges that between on or about December 6, 2021, and on or about December 8, 2021, in the District of New Hampshire and elsewhere, the two men conspired with each other and with other persons to steal firearms from Second Amendment Arms, a Derry, New Hampshire Federal Firearms Licensee. During the course of the conspiracy, the indictment alleges that the men stole 12 firearms.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Andover Police Department, the Atkinson Police Department, the Brentwood Police Department, the Derry Police Department, the Haverhill Police Department, the Lawrence Police Department, the Massachusetts State Police, the Methuen Police Department, the Milford Police Department, the New Hampshire State Police, the Rockingham County Sheriff’s Office, the Salem (NH) Police Department, the Somersworth Police Department, the Saugus Police Department, the Wellesley Police Department, and the Windham Police Department.
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Maryland heights man charged in suspected overdose death of St. Charles mother of threeRead the Press Release
ST. LOUIS – A man suspected of supplying drugs to a St. Charles mother who died last month was indicted Wednesday on a charge of possession and distribution of fentanyl.
The woman’s children, ages 2, 4 and 2 months, had been alone in a bedroom after their mother’s death for as many as 20 hours before their screaming alerted a neighbor, charging documents say.
Charging documents say Valentino Terez Carpenter, 37, of Maryland Heights, sold two capsules containing suspected fentanyl to the victim at her home on Lindenwood Avenue early on the morning of June 21 for $10. Investigators believe Carpenter was aware the woman’s children were in the home. About three hours later, he warned her not to ingest a whole capsule, adding “you almost died last night.”
At about 7:40 p.m. that night, a neighbor heard the screams of the victim’s children and entered the apartment, discovering the victim dead on the couch and the children confined to a bedroom with a baby gate.
Police found one black and white capsule which tested positive for fentanyl in a field test, and Facebook messages in which the victim told Carpenter she wanted to buy fentanyl, charging documents say.
Carpenter was arrested July 7 at his home and was charged by complaint July 8 with distribution of a controlled substance.
“While the facts in this case are appalling, it is just one of many currently being investigated by law enforcement in the St. Louis area, and every case seems more tragic than the next,” said U.S. Attorney Sayler Fleming Wednesday.
U.S. Attorney Fleming also thanked the hard work of those who helped the children and investigated the case. “The children are now safe and in the care of relatives,” she said.
“This is another example of how fentanyl is impacting our communities in tragic ways,” said Special Agent in Charge Michael A. Davis, head of DEA’s St. Louis Division. “Fentanyl is killing Americans at an unprecedented rate. Our best defense against this deadly drug is awareness of its danger, helping those who suffer from substance use or mental health disorders find help, and continued enforcement of the drug laws.”
The drug charge carries a penalty of up to 20 years and prison, a fine of up to $1 million, or both.
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 was investigated by the Drug Enforcement Administration, the St. Charles Police Department and the St. Charles County Regional Drug Task Force.
Manteno, Illinois, Man Sentenced to 96 Months in Prison for Attempted Enticement of a Minor and Use of Interstate Facilities to Attempt to Transmit Information about a MinorRead the Press Release
URBANA, Ill. – A Manteno, Illinois, man, Joseph Longanecker, 42, was sentenced on July 12, 2022, to 96 months in prison for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
At the sentencing hearing before United States District Judge Michael M. Mihm, the government presented evidence that on or about February 14 to 15, 2020, Longanecker knowingly attempted to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years to engage in sexual activity. On those same dates, Longanecker also knowingly used a facility and means of interstate commerce, namely, the internet and a cellular telephone, with the intent to transmit the name and address of another individual who had not attained the age of 16, and he did so with the intent to entice, encourage, offer, and solicit that person to engage in sexual activity.
Longanecker was indicted in March 2020 and pleaded guilty in February 2022. He was taken into the custody of the United States Marshals after the sentencing hearing.
The prosecution was the result of an investigation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Kankakee County Sheriff’s Office; Kankakee Area Metropolitan Enforcement Group, and the Bradley Police Department. Special Assistant U.S. Attorney Shannon O’Brien, also an Assistant Attorney General for the Illinois Attorney General’s Office, represented the government in the prosecution.
“Children are among the most vulnerable victims, and Individuals who exploit them must be held accountable for their reprehensible actions,” said Illinois Attorney General Kwame Raoul. “I am thankful for the collaboration and work of the dedicated men and women who represent different law enforcement agencies that came together to ensure justice was served in this case.”
“Each year hundreds of children fall victim to online crimes, said FBI Springfield Field Office Special Agent in Charge David Nanz. "The FBI implements proactive techniques as part of its effort to stop offenders from taking advantage of the innocence of children."
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Sentenced for Role in the 2013 Murder of Loomis Armored Guard Hector TrochezRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that CURTIS JOHNSON, JR., 30, of New Orleans, was sentenced today by U.S. District Judge Lance Africk for his role in the December 2013 armed robbery of a Loomis armored vehicle at Chase Bank, 2331 S. Carrollton, Avenue, New Orleans, Louisiana, which resulted in the death of Loomis guard Hector Trochez.
JOHNSON, was found guilty by a jury at trial in March 2022 of conspiracy to commit a Hobbs Act robbery, aiding and abetting the commission of a Hobbs Act Robbery, and discharging a firearm in furtherance of Hobbs Act robbery.
JOHNSON was sentenced to 600 months imprisonment, a five-year term of supervised release following imprisonment, a $300 mandatory special assessment fee, and ordered to pay restitution in the amount of $277,000.
According to court documents, on the morning of December 18, 2013, JOHNSON, along with co-defendants, Lilbear George, Chukwudi Ofomata, and Jeremy Esteves, robbed a Loomis armored vehicle as it was making a delivery of approximately $265,000 to the Chase Bank at the intersection of S. Carrollton and S. Claiborne Avenues. As the Loomis guard, Hector Trochez, prepared to make the delivery, George and Ofomata, both armed, exited the vehicle (a Chevy Tahoe stolen by George in preparation for the robbery), and ordered Trochez to give up the money. Trochez pulled his weapon and fired at the robbers. Ofomata and George fired their weapons in Trochez’s direction. JOHNSON fired at the Loomis truck to keep the driver inside. Trochez was fatally struck on the left side of his forehead and suffered a graze wound to his elbow. One of the robbers ran towards the rear of the Loomis truck and took possession of the money bag before re-entering the Tahoe. The robbers then fled the Chase Bank parking lot.
A witness seated in a vehicle at the corner of S. Claiborne and S. Carrollton Avenues observed the shooting and provided a description of the shooters and the vehicle they occupied. That witness followed the Chevy Tahoe as it fled the location of the shooting/robbery. During the vehicle’s flight, one of the shooters fired at the witness’s vehicle in an attempt to deter the witness from following. The witness observed the Chevy Tahoe arrive in the 1700 block of Adams Street and saw the four robbers exit the Chevy Tahoe and enter the awaiting Honda Accord driven by co-defendant Robert Brumfield, III. The Honda Accord fled the Adams Street location, leaving the Chevy Tahoe behind.
In November 2019, Esteves and Brumfield were found guilty by a jury at trial, and later sentenced to 600 months imprisonment and 240 months imprisonment, respectively. In 2021, George and Ofomata pleaded guilty and were both sentenced to a 480-month term of imprisonment. Co-defendant Jasmine Theophile, the former girlfriend of Lilbear George, pleaded guilty to obstructing justice and was sentenced to a five (5) year term of probation, which included six months in the custody of a halfway house.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation along with the New Orleans Police Department and the Louisiana State Police. Assistant United States Attorneys Brittany L. Reed, Gregory M. Kennedy, and Inga Petrovich prosecuted the matter.
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Man Arrested, Charged with Assaulting an FBI AgentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Tyler Collins, 27, of Buffalo, NY, was arrested and charged by criminal complaint with assaulting a federal officer. The charge carries a maximum penalty of eight years in prison.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that according to the complaint, on July 12, 2022, at approximately 4:00 p.m., Collins attempted to enter the FBI-Buffalo Division main office but was denied entry by the security guards inside of the front door. At the time, three federal agents were walking back to the main office and encountered Collins, who they observed was yelling into the intercom system. Collins was heard yelling “You are screwing with me! The FBI is screwing with me!” One of the federal agents approached Collins and attempted to calm him down, at which time Collins punched the federal agent, physically assaulting him. One of the other federal agents discharged pepper spray, in an attempt to subdue Collins, who then fled on Elmwood Avenue. Approximately an hour later, Collins was taken into custody as he was walking on Delaware Avenue.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Luzerne County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jon Robert Donohue, age 29, of Pittston, Pennsylvania, was indicted yesterday by a federal grand jury on drug trafficking and firearms offenses.
According to United States Attorney Gerard M. Karam, the indictment alleges that Donohue possessed with the intent to distribute over 500 grams of cocaine and over 50 grams of methamphetamine on May 9, 2022, in Luzerne County, Pennsylvania. The indictment also alleges that Donohue possessed various ammunition and multiple firearms in furtherance of his drug trafficking. The indictment further alleges that Donohue possessed the ammunition and firearms after being prohibited to possess firearms due to a prior felony conviction.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne County Drug Task Force and the Luzerne County Adult Probation and Parole Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law for this offense is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Louisiana Woman Sentenced to Prison in False Tax Return SchemeRead the Press Release
A Louisiana woman was sentenced yesterday to 40 months in prison for conspiring to defraud the United States.
According to court documents, Carlanda Isaac, of New Orleans, worked for Pelican Income Tax and Bookkeeping Services LLC, and later for Taxes by J.A.D.A., another tax preparation business. Isaac, together with others, sought inflated tax refunds for clients by claiming on their returns false income, withholding and education credits. Isaac charged her clients a fee for preparing false tax returns.
In addition to the term of imprisonment, U.S. District Judge Greg G. Guidry ordered Isaac to serve three years of supervised release and to pay approximately $283,378 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Carter Guice of the U.S. Attorney’s Office for the Eastern District of Louisiana prosecuted the case.
Los Angeles County Man Indicted on Child Exploitation ChargesRead the Press Release
SACRAMENTO, Calif. — Pedro Luis Millan, aka Peter Millan, 36, of Montebello, was arrested today after a federal grand jury returned a two-count indictment last Thursday, charging him with conspiracy to sexually exploit a child and receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Millan used the Kik messaging application to conspire with another user located in Yuba County to produce an image of a child under the age of 12 engaged in sexually explicit conduct. Millan received that image, as well as additional pornographic images of the same child victim, from his co-conspirator over the Kik messaging application.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
If convicted of conspiracy to sexually exploit a child, Millan faces a mandatory minimum sentence of 15 years in prison, a maximum statutory penalty of 30 years in prison, and a $250,000 fine. If convicted of receipt of child pornography, Millan faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 20 years in prison, and a $250,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Long-Term Care Pharmacy, Tara Pharmacy SE, LLC, to Pay $622,000 to Settle Lawsuit Alleging Violations of False Claims Act and to Settle Alleged Controlled Substances Act ViolationsRead the Press Release
BIRMINGHAM, Ala. – Tara Pharmacy SE, LLC has agreed to pay the United States $622,000 to resolve allegations that it violated the Controlled Substances Act by dispensing Schedule II controlled drugs without a valid prescription and violated the False Claims Act by submitting false claims to Medicare for these improperly dispensed drugs, announced U.S. Attorney Prim F. Escalona, Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General, and DEA Special Agent in Charge Brad L. Byerley.
“Pharmacies that violate federal prescribing guidelines put their patients’ health at risk and contribute to the drug epidemic plaguing our communities. Since 2020, drug overdose deaths in Alabama have increased by more than 71%,” said United States Attorney Prim F. Escalona. “Law enforcement and public health agencies are committed to combatting any unlawful sources that distribute controlled substances into our communities.”
“Pharmacies that distribute controlled substances without legitimate prescriptions seriously endanger the well-being of their patients. In billing Medicare for inappropriately dispensed drugs, those pharmacies also divert federal funds needed to care for the program’s many beneficiaries,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to collaborate with our law enforcement partners to thoroughly investigate allegations of such activity.”
“Prescription drug abuse is a serious public health crisis that harms families and communities,” said DEA Special Agent in Charge Brad L. Byerley. “DEA Registrants, like Tara Pharmacy, who violate their duties will be held accountable for allowing these medications to get into the wrong hands. This settlement agreement is the result of DEA’s continued commitment to work with the United States Attorney’s Office and our law enforcement partners and hold accountable those who participate in illegally diverting controlled substances.”
Tara Pharmacy is a specialty pharmacy located in Homewood, Alabama, that provides pharmacy services for long-term care facilities located in Alabama and Georgia. Tara Pharmacy filled prescriptions for controlled substances listed in Schedule II under the Controlled Substances Act. Schedule II drugs, such as oxycodone, can cause significant harm if used improperly and have a high potential for abuse.
The agreement settled allegations that Tara Pharmacy filled prescriptions for Schedule II controlled substances that lacked a valid, original physician signature and that Tara Pharmacy failed to get written prescriptions for Schedule II controlled substances within the required 7-day period after an emergency dispense.
The False Claims Act allegations resolved by today’s settlement were originally brought by Alex Sproule and Nicholas Fuhrmann, former employees of Tara Pharmacy, under the whistleblower provisions of the Act, which authorize private parties to sue on behalf of the United States and to receive a portion of any recovery. Mr. Sproule and Mr. Fuhrmann will receive $52,000 as their share of the settlement.
The settlement with Tara Pharmacy was the result of a coordinated effort among HHS-OIG, the DEA, and Assistant U.S Attorney Don Long.
The lawsuit is captioned United States ex rel. Sproule, et al., v. Aurora Cares LLC d/b/a Tara Cares, et al., 2:20-CV-217-AMM (N.D. Ala.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
Long Island Man Convicted of over $600 Million Health Care Fraud, Wire Fraud and Identity Theft SchemeRead the Press Release
Earlier today, a federal jury in Central Islip returned a guilty verdict on eight counts of a superseding indictment charging Mathew James with perpetrating an over $600 million health care fraud scheme, which also included wire fraud and aggravated identity theft charges. The verdict followed a six-week trial before United States District Judge Joanna Seybert.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The defendant stands convicted of carrying out an audacious scheme in which he used insurance companies like ATM machines. He stole hundreds of millions of dollars until he was finally exposed by a paper trail a mile-long, phone recordings on which he impersonated patients, and text messages and emails with his co-conspirator doctor clients demonstrating his nefarious billing practices. For this massive fraud, a federal jury convicted him today,” stated United States Attorney Peace. “Health care fraud is not a victimless crime, because fraudulent billing ultimately affects consumers who must pay the cost of higher insurance premiums.”
“James orchestrated a fraudulent medical billing scheme to steal from insurance companies and businesses, in order to line his own pockets,” said Assistant Attorney General Polite of the Justice Department’s Criminal Division. “This conviction shows that medical billers who fuel health care fraud will be brought to justice.”
As proven at trial, James operated medical billing companies to provide billing services for physicians, primarily plastic surgeons throughout the United States, and used his companies to carry out a massive scheme to defraud insurance companies. As a third-party medical biller, James submitted claims to insurance companies and when necessary, requested reconsideration or appeals of denied claims. The evidence showed that James billed for procedures that were either more serious or entirely different than those his doctor-clients performed. For example, the government presented evidence that James impersonated Jeff Pash, the National Football League’s general counsel, and Marcus Smart, a professional basketball player for the Boston Celtics of the National Basketball Association, in calls the defendant made to insurance companies in which he exaggerated medical procedures. James made thousands of impersonation calls resulting in over tens of millions of dollars in additional reimbursement to his doctor-clients and from which he received a percentage of the fraudulent proceeds.
James also directed his doctor-clients to schedule elective surgeries through the emergency room so that insurance companies would reimburse at substantially higher rates. When insurance companies denied the inflated claims, James impersonated patients to demand that the insurance companies pay the outstanding balances of tens or hundreds of thousands of dollars.
The FBI investigated the case and was brought under the supervision of the U.S. Attorney Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Assistant United States Attorneys Catherine M. Mirabile and Antoinette N. Rangel of the Eastern District of New York, and Acting Assistant Chief Miriam L. Glaser Dauermann of the Fraud Section are in charge of the prosecution with the assistance of paralegal specialist Shernita Moore-Glasgow.
The Defendant:
MATHEW JAMES
Age: 54
Saint James, Long IslandE.D.N.Y. Docket No. 19-CR-382 (JS)
Las Cruces man arraigned on federal charges related to shooting deathRead 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 today that Rudy Garcia was arraigned on a five-count indictment. Garcia, 35, of Las Cruces, New Mexico, will remain in custody pending trial, which has not been scheduled.
A federal grand jury indicted Garcia on June 22. According to the indictment, on Jan. 25, Garcia allegedly shot and killed another man during a drug deal involving fentanyl. The indictment charges Garcia with conspiracy, distribution of fentanyl, using a firearm during a drug trafficking crime and in furtherance of such a crime, discharging a firearm during a drug trafficking crime resulting in death, and being a felon in possession of a firearm and ammunition. At the time of the alleged offenses, Garcia was a convicted felon and could not legally possess a firearm or ammunition.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted on all counts, Garcia faces up to life in prison or death.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Las Cruces Police Department. Assistant United States Attorneys Randy M. Castellano and Matthew Ramirez are prosecuting the case.
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KC Man Used Fake Gun in Foiled Independence Restaurant RobberyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who attempted to rob an Independence, Mo., restaurant with a fake gun, but was thwarted when employees fought back, pleaded guilty in federal court today to the robbery.
Bryan C. Byers, 23, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of robbery.
Byers robbed Lucky Buffet, 2931 S. Noland Road in Independence, on Feb. 21, 2022. Byers, armed with what appeared to be a Glock handgun, approached two restaurant employees who were working near the sushi station in the restaurant. Investigators later learned the upper portion of the apparent handgun was an actual Glock, but the lower portion was from an airsoft pistol and was not designed to fire.
Byers pointed the apparent handgun at the two employees, who later told officers they feared for their lives, and told them they had five seconds to give him the cash from the cash register or he would kill them. The employees opened the register drawer and Byers began taking money from the register. One of the employees grabbed the apparent handgun from Byers and both employees began fighting with Byers. Byers attempted to get away but was restrained until police arrived. During the physical altercation, restaurant employees threw plates of food at Byers and repeatedly hit him with a chair to keep him from getting away.
Byers, who was on the floor of the restaurant, was arrested and transported to a local hospital for medical treatment. Police officers found approximately $873 scattered on the floor of the restaurant.
Under federal statutes, Byers is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jury convicts former Missoula resident of child pornography crimesRead the Press Release
MISSOULA — A jury today convicted a former Missoula resident of transporting, distributing and receiving child pornography using the internet and social media, U.S. Attorney Jesse Laslovich said.
After a three-day trial, the jury found Taurean Jerome Weber, 39, formerly of Missoula and currently of Littleton, Colorado, guilty of all eight counts, including four counts of transportation of child pornography, three counts of distribution and one count of receipt of child pornography. The trial began on July 11. Weber faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Dana L. Christensen presided. Judge Christensen set sentencing for Nov. 18. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Weber was remanded into custody pending further proceedings.
“Weber’s distribution of child pornography perpetuated the sexual exploitation and abuse of children for his own gratification. It was wrong and disgusting. We are committed to protecting children from this horrible crime and will be resolute in our efforts to hold those who prey on them accountable. I want to thank Assistant U.S. Attorneys Cyndee L. Peterson and Karla E. Painter, along with the Missoula Police Department, Internet Crimes Against Children Task Force and FBI for investigating and prosecuting this case,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that from about September 2016 to July 2020, Weber used Dropbox and Instagram to transport child pornography images and a computer to distribute child pornography. An investigation began in October 2019 when Instagram reported child pornography on its platform to the National Center for Missing and Exploited Children (NCMEC), which sends those CyberTips to members of the Internet Crimes Against Children Task Force for investigation. Records obtained through subpoenas and search warrants found evidence that Weber was the creator and user of the social media and email accounts. Investigators served a search warrant on Weber’s residence, seized computers and storage devices and determined they contained video and image files depicting minors engaged in sexually explicit conduct.
Assistant U.S. Attorneys Cyndee L. Peterson and Karla E. Painter are prosecuting the case, which was investigated by Missoula Police Department Det. Katie Hall, the Internet Crimes Against Children Task Force and FBI.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Jury Convicts Man of $600 Million Health Care Fraud, Wire Fraud, and ID Theft SchemeRead the Press Release
A federal jury convicted a New York man today in an over $600 million health care fraud, wire fraud, and identity theft scheme.
According to court documents and evidence presented at trial, Mathew James, 54, of East Northport, operated a medical billing company that billed for procedures that were either more serious or entirely different than those James’ doctor-clients performed. James directed his doctor-clients to schedule elective surgeries through the emergency room so that insurance companies would reimburse at substantially higher rates. When insurance companies denied the inflated claims, James impersonated patients to demand that the insurance companies pay the outstanding balances of tens or hundreds of thousands of dollars.
“James orchestrated a fraudulent medical billing scheme to steal from insurance companies and businesses, in order to line his own pockets,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This conviction shows that medical billers who fuel health care fraud will be brought to justice.”
“The defendant stands convicted of carrying out an audacious scheme in which he used insurance companies like ATM machines. He stole hundreds of millions of dollars until he was finally exposed by a paper trail a mile-long, phone recordings on which he impersonated patients, and text messages and emails with his co-conspirator doctor clients demonstrating his nefarious billing practices. For this massive fraud, a federal jury convicted him today,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Health care fraud is not a victimless crime, because fraudulent billing ultimately affects consumers who must pay the cost of higher insurance premiums.”
“Health care fraud, including fraudulent billing schemes like this, costs U.S. taxpayers tens of billions of dollars annually. These crimes impact all of us in many ways, including increased health insurance premiums, greater out-of-pocket expenses and copayment amounts for medical treatment, and reduced or lost benefits, just to name a few,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, together with our law enforcement partners, is committed to rooting out health care fraud in all its forms and bringing those who seek to exploit our health care system to justice.”
James was convicted of conspiracy to commit health care fraud, health care fraud, three counts of wire fraud, and three counts of aggravated identity theft. He is scheduled to be sentenced at a later date and faces up to 10 years in prison for health care fraud conspiracy, up to 10 years in prison for health care fraud, up to 20 years in prison for each of three wire fraud counts, and a two year mandatory minimum each for three aggravated identity theft counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Catherine Mirabile and Antoinette Rangel of the Eastern District of New York are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Johnstown Woman Pleads Guilty to Conspiring to Distribute and Possess Cocaine and FentanylRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Mary Lou Nelson, 59, pleaded guilty to a lesser included offense at Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about April 2019 to on or about July 2021, Nelson did conspire to distribute and possess with intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack;”, a quantity of a mixture and substance containing a detectable amount of cocaine, and a quantity of a mixture and substance containing a detectable amount of fentanyl.
Judge Gibson scheduled sentencing for November 29, 2022. The law provides for a minimum sentence of 5 years in prison and a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon. is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Nelson. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jamestown Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Alfredo Diaz a/k/a Dindo, 59, of Jamestown, NY, who was convicted of possession with intent to distribute, and to distribute, fentanyl, was sentenced to serve 70 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Michael J. Adler and Evan K. Glaberson, who handled the case, stated that in April 2020, investigators conducted three controlled purchases of fentanyl from Diaz. On May 13, 2020, searches were conducted of both Diaz’s residence as well as a storage unit he used. In the residence, investigators located approximately $8,000 in U.S. currency as well as drug distribution paraphernalia, including glassine bags and a digital scale. In the storage unit, a black 2016 Cadillac SRX sport utility vehicle registered to Diaz, as well as approximately $44,075 U.S. currency, was seized. The vehicle also contained a digital scale and packaging material.
The sentencing is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone; the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.; and the New York State Police, under the direction of Major Eugene Staniszewski.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Florida Men Charged with Kidnapping
Gerardo Hernandez Anselmo, 34, and Felipe Engracia-Gonzalez, 39, both of Kissimmee, Florida, are charged with kidnapping an individual and holding him for money. The indictment alleges that on June 9, 2022, they transported the victim from Wisconsin to Florida.
Anselmo and Engracia-Gonzalez previously were charged with this offense in a criminal complaint filed in U.S. District Court for the Western District of Wisconsin on June 23, 2022. The complaint alleges that on June 9 the two defendants forced an individual into a vehicle in Abbotsford, Wisconsin, and transported him to Florida to work off a debt owed to the defendants.
Anselmo and Engracia-Gonzalez were arrested in Florida and are in federal custody. A date for their initial appearance in Wisconsin has not been set. If convicted, Anselmo and Engracia-Gonzalez face a maximum penalty of life in federal prison. The charge against them is the result of an investigation by the Federal Bureau of Investigation, Marathon County Sheriff’s Office, Colby-Abbotsford Police Department, and the Kissimmee (Florida) Police Department, with assistance from the Marathon County District Attorney’s Office. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
La Crosse County Man Charged with Drug & Gun Crimes
Todd Allyn Valentine, 53, Holmen, Wisconsin, is charged with possessing 500 grams or more of methamphetamine with intent to distribute, with being a felon in possession of a firearm, and with maintaining a drug house. The indictment alleges that on April 20, 2021, Valentine possessed 500 grams or more of methamphetamine for distribution and a loaded .22 pistol. The indictment further alleges that from March to April 2021, he maintained a place in Holmen for the purpose of distributing methamphetamine.
If convicted, Valentine faces a mandatory minimum penalty of 10 years and a maximum of life in prison on the charge of possessing 500 grams or more of methamphetamine for distribution, 10 years on the felon in possession of a firearm charge, and 20 years on the charge of maintaining a drug house. The charges against him are the result of an investigation by the La Crosse Police Department, La Crosse and Marquette County Sheriffs’ Offices, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Steven Anderson and Chadwick Elgersma are handling the case.
Baraboo Man Charged with Drug Crimes
Paul R. Ripp, 49, Baraboo, Wisconsin, is charged with 2 counts of distributing methamphetamine and 2 counts of possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he distributed methamphetamine on November 2 and 29, 2021, and that on March 28 and 29, 2022, he possessed 50 grams or more of methamphetamine for distribution.
If convicted, Ripp faces a maximum penalty of 20 years in federal prison on each distribution charge. The charges alleging the possession of 50 grams or more of methamphetamine with intent to distribute carry a mandatory minimum penalty of 5 years and a maximum of 40 years. The charges against him are the result of an investigation by the Columbia and Sauk County Sheriffs’ Offices. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Madison Man Charged with Drug Crimes Involving Fentanyl, Heroin & Crack Cocaine
Earl Galtney, Jr., is charged with 3 counts of distributing fentanyl, 2 counts of distributing heroin, 2 counts of distributing a mixture containing both heroin and fentanyl, and 1 count of distributing fentanyl and crack cocaine. The indictment alleges that these 8 distributions occurred between April 18 and June 9, 2022. The indictment further alleges that one of the fentanyl distributions involved 40 grams or more of the drug.
If convicted, Galtney faces a mandatory minimum penalty of 5 years and a maximum of 40 years on the charge alleging the distribution of 40 grams or more of fentanyl. The other seven charges each carry a maximum penalty of 20 years. The charges against him are the result of an investigation by the Dane County Narcotics Task Force. Assistant U.S. Attorney David Reinhard is handling the prosecution.
Wausau Man Charged with Drug & Gun Crimes
Trenton McCorkle, 26, Wausau, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute and with being a felon in possession of a firearm and ammunition. The indictment alleges that on December 14, 2021, he possessed 50 grams or more of methamphetamine for distribution and a loaded .45 caliber handgun and ammunition.
If convicted, McCorkle faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the drug charge. The gun charge carries a maximum penalty of 10 years. The charges against him are the result of an investigation by the Wisconsin State Patrol, Rothschild Police Department, Marathon County Sheriff’s Office, Central Wisconsin Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
La Crosse Man Charged with Illegally Possessing Firearm
Anthony J. James, 38, La Crosse, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on April 3, 2022, he possessed a .22 caliber handgun.
If convicted, James faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Wisconsin State Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
The indictments against Valentine, McCorkle and James are brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Gallia County man pleads guilty to dealing fentanylRead the Press Release
COLUMBUS, Ohio - A 39-year old Bidwell, Ohio man pleaded guilty in U.S. District Court here today to dealing and possessing hundreds of grams of deadly fentanyl on a rural property in southern Ohio.
Michael D. Valentine pleaded guilty to all five counts contained in an indictment returned against him in April following a six-month investigation by law enforcement agencies in West Virginia and Ohio. Investigators found that he dealt approximately 141 grams of fentanyl from the rural property and had stored approximately 677 grams more for the purpose of distribution.
Valentine pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, a crime punishable by at least ten years and up to life in prison. Valentine also entered guilty pleas to two counts of dealing 40 grams or more of fentanyl, crimes that carry a penalty of at least five and up to 40 years in prison, distribution of a detectable amount of fentanyl (up to 20 years) and possession with intent to distribute 400 grams or more of fentanyl (also punishable by at least ten years and up to life in prison). Penalties are listed for reference only.
Valentine entered the guilty pleas before U.S. Magistrate Judge Norah McCann King. Senior U.S. District Judge Michael Watson, who is presiding over the case, will determine Valentine’s sentence under federal sentencing guidelines.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division said that the charges stemmed from an investigation begun by the Metropolitan Drug Enforcement Network Team (MDENT) in Charleston, West Virginia who worked with the FBI and Gallia County Sheriff Matt Champlin to build the case. Assistant United States Attorney Nicole Pakiz is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts, and dismantles 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.
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Fraudster Resentenced to More Than 10 Years in Federal Prison for Stealing the Identities of Hundreds of Victims to Fraudulently Obtain More Than $2.2 Million in Tax RefundsRead the Press Release
Baltimore, Maryland – Yesterday, U.S. District Judge Catherine C. Blake sentenced Toyosi Alatishe, a/k/a Felix Victor Johnson, age 51, of Columbia, Maryland, to 126 months in federal prison, for conspiracy to commit credit/debit card fraud, wire fraud, and for aggravated identity theft, in connection with two separate schemes from 2012-2015 to obtain fraudulent tax refunds. Judge Blake also required Alatishe to serve a period of supervised release following his release from prison and pay restitution in the amount of $2,287,959.67. A federal jury convicted Alatishe on all 16 counts charged in the indictment on January 24, 2019.
The Court had previously sentenced Alatishe in 2019, and re-sentenced him yesterday after he appealed his conviction and sentence to the U.S. Court of Appeals For The Fourth Circuit, which remanded the case for a new sentencing. At the resentencing, Judge Blake only reduced Alatishe’s 2019 sentence by six months, based on the harsher conditions of confinement caused by the COVID-19 pandemic, and rejected Alatishe’s request for a time-served sentence.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office; Acting Postal Inspector in Charge Tira Hayward of the U.S. Postal Inspection Service - Washington Division; and Chief Gregory Der of the Howard County Police Department.
According to the evidence presented at Alatishe’s six-day trial, in the first scheme, which occurred from 2012 to 2013, Alatishe misused his position as a caretaker for residents of a group home for individuals suffering from severe mental and physical disabilities, by using their personal information to file fraudulent tax returns with the IRS and the State of Maryland. Alatishe also obtained access to the personal identifying information of other mentally disabled Maryland victims, who lived at group homes run by a company where Alatishe’s ex-wife worked, as well as eight other victim taxpayers from across the United States. Alatishe filed the fraudulent tax returns through an online tax filing company and had the tax refunds deposited into bank accounts he controlled, including an account opened using a fraudulent Nigerian passport in the name of Felix Victor Johnson. The fraudulent tax returns contained false information concerning the taxpayers, including their marital status, spouses, dependents, employers, wages, withholdings, tax due and owing, and refund amounts. This resulted in Alatishe receiving fraudulently obtained tax refunds of more than $30,000 in March and April 2013, which the IRS direct deposited into the Felix Victor Johnson bank account.
In the second scheme, a conspirator in Florida used the identifying information of a Florida accountant to fraudulently purchase debit cards from First View Financial, purportedly so that customers of the accountant could have their tax refunds transferred directly from the IRS to the cards. The co-conspirator asked First View to mail 2,000 prepaid debit cards to him at an address in Tampa, Florida, which was actually the address of Regus Management Group, LLC, a company that provided virtual office services to businesses. Still posing as the accountant, the co-conspirator contracted with Regus for mail forwarding. Specifically, the evidence proved that all mail received by Regus in the victim accountant’s name was forwarded to Alatishe’s address in Columbia, Maryland. Trial evidence showed that during January and February 2015, First View sent out the debit cards in five different shipments, which Regus then forwarded to Alatishe’s address.
Further, the government presented evidence proving that in 2015, the personal identifying information of more than 300 individuals from across the United States was used without their permission and knowledge to file false tax returns with the IRS in order to obtain refunds. More than 300 of the First View debit cards were activated and loaded with IRS tax refund money from the fraudulently filed tax returns. The total value of the IRS funds loaded onto the cards was more than $2.2 million. During February and March 2015, Alatishe and his co-conspirator withdrew more than $1 million through ATM and point-of-sale transactions, including the purchase of $40,000 in money orders.
Further, between March 6 and March 15, 2015, Alatishe was captured on security video repeatedly using ATMs at a specific financial institution in Columbia, Maryland. As detailed in the trial testimony, withdrawals occurred in short periods of time with many different cards from First View, in approximate withdrawal amounts of $300. The large number of transactions and high dollar value resulted in the ATMs running out of money. The financial institution conducted an investigation and notified law enforcement and First View, resulting in First View and other financial institutions freezing the remaining funds on the First View debit cards on about March 17, 2015.
According to trial testimony, a federal search warrant was executed at Alatishe’s residence in June 2016. Law enforcement recovered electronic evidence, including evidence as to Alatishe’s involvement in both fraudulent tax refund schemes. Agents also seized physical evidence, including numerous handwritten lists containing the personal identifying information of identity theft victims. Some of these handwritten documents were identified by Alatishe as his handwriting and the information on the handwritten sheets matched even more extensive lists of personal identifying information from his computer. In 2013, Alatishe had been the subject of an investigation and search warrant by the Howard County Police Department, which led to the seizure of important evidence used during the federal trial of the two schemes.
United States Attorney Erek L. Barron praised the IRS-CI, DCIS, U.S. Postal Inspection Service, and Howard County Police Department for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Dana J. Brusca, who prosecuted the case and handled the appeal and Paralegal Joanna B.N. Huber, who assisted with the prosecution.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community and to report fraud, please visit www.justice.gov/usao/md and https://www.justice.gov/usao-md/report-fraud.
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Four Time Convicted Felon Going to Prison for Gun PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Roosevelt E. Collins, III, 40, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to serve 18 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that Collins was previously convicted on felony charges in 2001, 2005, 2010, and 2015, in Monroe County Court, and is legally prohibited from possessing a firearm. On July 26, 2021, members of the U.S. Marshals Task Force were surveilling Collins, who was wanted in connection with an alleged shooting incident on July 2, 2021. Officers took Collins into custody while he was sitting in a vehicle parked in a driveway on Magee Avenue. During the arrest, officers observed a loaded 9mm semiautomatic pistol in plain view on the floor of the front passenger seat. Collins also had a magazine loaded with 12 additional rounds of ammunition on his person.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the U.S. Marshals Service, under the direction of Marshal Charles Salina, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Former Santa Rosa County Deputy Sheriff Pleads Guilty to Federal and State ChargesRead the Press Release
PENSACOLA, FLORIDA – Scott P. Haines, 50, of Milton, Florida, pled guilty to multiple federal and state felony charges this week, announced Jason R. Coody, United States Attorney for the Northern District of Florida. Haines entered his guilty pleas in federal court and state court separately. In federal court, Haines pled guilty to making material false statements to the Federal Bureau of Investigation during the course of its investigation. In state court, Haines pled guilty to the unauthorized access or use of a computer system or network in relation to law enforcement systems.
During his plea in federal court, Haines admitted that he became personally involved in the real property management and finances of an elderly woman in Santa Rosa County and deposited rental payments from tenants of the elderly woman into his own bank account without authority to do so. When confronted by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, Haines made material false statements regarding his involvement with the rental properties, the depositing of rental payments into his personal account, and his knowledge and involvement with the Last Will and Testament of the elderly woman of which he became a beneficiary.
During his plea in state court, Haines admitted to his personal misuse of the National Crime Information Center database utilized by law enforcement officers and analysts for official purposes.
Sentencing is currently set for October 17, 2022, at 9:00 a.m., at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers. Haines faces up to five years’ federal imprisonment and a $250,000 fine. He will also pay over $45,000 in investigative and prosecutive costs and relinquish his criminal justice certifications pursuant to the state prosecution.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. The cases are being prosecuted by Assistant United States Attorney David L. Goldberg and Assistant Statewide Prosecutor Guillermo L. Vallejo.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former President of Central Pasco Chamber of Commerce Pleads Guilty to Wire FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that David Gainer, Jr. (50, Lutz) has pleaded guilty to three counts of wire fraud. Gainer faces a maximum penalty of 20 years in federal prison on each count. A sentencing date has not yet been set.
According to the plea agreement, Gainer is the former President and Treasurer of the Central Pasco Chamber of Commerce (“Chamber”), an organization comprised of area merchants who paid membership dues and other funds to the Chamber to promote their businesses within the community. As President and Treasurer, Gainer had access to bank account information utilized by the Chamber to maintain its operations as well as to its funds and deposits.
Gainer devised a scheme to defraud the Chamber of funds. He used his positions as President and Treasurer to access the Chamber’s bank accounts, make unauthorized withdrawals from said accounts, deposit the misappropriated funds into accounts he controlled, and use the proceeds of such unauthorized withdrawals to pay personal bills and debts and otherwise for his own personal enrichment. Gainer fraudulently misappropriated at least $104,689 of the Chamber’s funds. He has agreed to forfeit this amount as part of his plea agreement with the government.
This case was investigated by the United States Secret Service and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Maria Guzman.
Former Ottawa County Prosecutor Pleads Guilty After Seeking Sexual Favors from Defendants in Exchange for Favorable Treatment in Court ProceedingsRead the Press Release
A former Ottawa County Assistant District Attorney pleaded guilty in federal court after he provided drugs and performed favorable legal actions that benefitted defendants in exchange for sex, announced U.S. Attorney Clint Johnson.
Daniel Thomas Giraldi, 44, of Joplin, pleaded guilty to one count of possession of Oxycodone with intent to distribute (Count 1) and four counts of honest services fraud (Counts 14-17). Giraldi will be sentenced by a federal judge at a later date.
Per the stipulations in the plea agreement, Giraldi will relinquish and forfeit his Oklahoma Bar License and never apply for reinstatement to the Oklahoma Bar. He will also never hold any public office nor any position of public trust within the state of Oklahoma.
“Daniel Giraldi disgraced the office of Assistant District Attorney,” said U.S. Attorney Clint Johnson. “As a public servant, he had a duty to act with integrity and competence. Instead, he violated the law and the trust placed in him by the District Attorney and the people of Ottawa County. Investigators with the Miami Police Department, District Attorney’s Office, Oklahoma State Bureau of Investigation and FBI were unyielding in their pursuit of justice in this case, thus ensuring Giraldi’s conviction.”
“The citizens of Ottawa County entrusted Daniel Giraldi to represent them ethically and transparently,” said FBI Oklahoma City Special Agent in Charge Edward Gray. “In a reprehensible misuse of public trust, he exploited his position and undermined the integrity of the District Attorney’s Office. The FBI stands firm with our law enforcement partners in rooting out all forms of public corruption, no matter the person, position, or purpose.”
In the plea agreement, Giraldi admitted that on April 19, 2022, he carried and possessed Oxycodone with intent to distribute. Giraldi had texted a defendant approximately a week earlier and agreed to bring the drug when the two rendezvoused for sex.
Giraldi further admitted to defrauding the citizens of Oklahoma and the Ottawa County District Attorney’s Office of their right to honest and faithful services that he owed to them as an Assistant District Attorney, stating that he took bribes in exchange for corrupt official acts that benefitted defendants. Specifically, he stated that he would receive something of value, including sexual acts with multiple women, in exchange for favorable treatment that included reduction of bond amounts on criminal defendants, the dismissal of traffic violations, and other corrupt actions. The crimes occurred from approximately February 2019 through April 19, 2022.
The FBI, Oklahoma State Bureau of Investigation, Miami Police Department, and District Attorney’s Office-District 13 conducted the investigation. Assistant U.S. Attorney Kyle M. McWaters is prosecuting the case.
Former Oregon Dentist Pleads Guilty in Federal Drug CaseRead the Press Release
Defendant also faces federal charges for fraudulently obtaining millions in COVID-relief funds
PORTLAND, Ore.—A former Clackamas, Oregon dentist pleaded guilty today to illegally distributing controlled substances, including thousands of pills of prescription drugs, and anabolic steroids.
Salwan Wesam Adjaj, 43, a resident of West Linn, Oregon, waived indictment and pleaded guilty to a one-count information charging him with distributing and possessing with intent to distribute controlled substances.
According to court documents, beginning in at least March 2016 and continuing until August 2020, Adjaj knowingly and intentionally distributed and possessed with intent to distribute thousands of doses of drugs including Tramadol, anabolic steroids, injectable testosterone, Phendimetrazine, Diazepam, Alprazolam (Xanax), Lorazepam, Carisoprodol (Soma), Zolpidem, and Promethazine. Adjaj used his position as a dentist to obtain some of these drugs from a pharmaceutical manufacturer. None of the drugs distributed by Adjaj were for a legitimate medical purpose.
On December 15, 2021, in a separate criminal case, Adjaj was charged with aggravated identity theft and wire fraud for fraudulently converting to his personal use nearly $8 million in loans intended to help small business during the COVID-19 pandemic.
Adjaj is in custody pending sentencing. In his drug case, he faces a maximum sentence of 10 years in prison, a $500,000 fine, and up to 3 years of supervised release. He will be sentenced on October 11, 2022, by U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Adjaj has agreed to abandon his ownership interest in any criminally-derived property, including, but not limited to, a 2017 Maserati Levanti.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Clackamas County Sheriff’s Office, and the Oregon Board of Dentistry. It is being prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 relief fundsRead the Press Release
ATLANTA – Jason Lary, the former Mayor of the City of Stonecrest, has been sentenced for using his elected office to steal hundreds of thousands of dollars in federal COVID-19 relief funds allocated to the city.
“Lary betrayed the trust placed in him by the citizens of Stonecrest by stealing the very funds meant to help his constituents weather the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.”
“It is extremely disheartening when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. In July 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest.
Stonecrest was required to spend the relief funds in accordance with the CARES Act. In general, according to the Department of the Treasury, relief funds could “only be used to cover costs that – [were] necessary expenditures incurred due to the public health emergency . . . . and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020.” Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures.
In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. The resolution also adopted a funding plan for most of Stonecrest’s relief funds. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (“Small Business Program”).
Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. Instead Lary worked behind the scenes to form a private company, Municipal Resource Partners Corporation, Inc. (“MRPC”), recruit its CEO, open its bank accounts, and ensure that Lania Boone, his convicted co-conspirator, would be hired as MRPC’s bookkeeper. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest.
In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. The application included the question, “are you willing to allocate 25% of your grant to marketing your business?” Hundreds of businesses applied for relief funds, but most of the applicants were rejected. Ignoring input from the official selection committee, from about November 2020, until about February 2021, Boone signed dozens of checks on behalf of MRPC, directing relief funds to individuals, businesses, churches, and non-profit organizations of Lary’s own choosing.
Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. In January 2021, Boone used her access to one of MRPC’s bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boone’s son’s college tuition and rent.
Second, Lary told churches that received relief funds from the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary. For example, Lary presented a check for $150,000 in relief funds to “Church 1,” on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (“REMC”). Lary did not tell Church 1 at this time that he actually controlled REMC. And while Lary falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19, in reality he used the money for his own purposes, including to pay off his outstanding federal, state, and local tax liabilities.
As another example, Lary presented a check from MRPC for $50,000 to “Church 2.” Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.
Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Lary and others falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising. Yet Lary and others asked that these “contributions” be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Lary did not tell the businesses that he controlled these entities. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates. For example, Lary used relief funds held by Visit Us to pay for an associate’s political advertising.
Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media.
Jason Lary, 60, of Stonecrest, Georgia, has been sentenced to four years and nine months in prison to be followed by three years of supervised release. He was ordered to pay restitution in the amount of $119,607.69. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Lania Boone, Lary’s co-conspirator, pleaded guilty to conspiracy on February 11, 2022. She is scheduled to be sentenced on August 15, 2022.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Illinois Department of Agriculture Investigator Charged with Federal Civil Rights Violations for Allegedly Grabbing and Groping Multiple Individuals While on DutyRead the Press Release
CHICAGO — A former investigator for the Illinois Department of Agriculture has been charged with federal civil rights violations for allegedly grabbing and groping several operators of animal care facilities while on duty.
An indictment unsealed today in U.S. District Court in Chicago charges JOSE GUILLEN, 41, of Melrose Park, Ill., with four counts of deprivation of civil rights under color of law and one count of obstruction of justice. Guillen pleaded not guilty to the charges at his arraignment this afternoon in federal court. A status hearing was scheduled for Aug. 10, 2022, at 9:00 a.m., before U.S. District Judge Joan Humphrey Lefkow.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Amarjeet Bhachu and Diane MacArthur.
Guillen worked for the Illinois Department of Agriculture as an animal and animal products investigator, conducting on-site inspections of animal care facilities in Cook County, Ill., to ensure compliance with state laws. In his official capacity as an investigator, Guillen had the power to influence whether an animal care facility received a license to operate and could continue in operation after receiving the license. The indictment accuses Guillen of grabbing and groping the victims in 2019, 2020, and 2021 while Guillen was on duty and acting under color of law as a state employee.
The obstruction charge accuses Guillen of knowingly providing false testimony during a deposition last year in a federal civil lawsuit filed by one of the alleged victims. The charge states that Guillen falsely testified under oath that he had accidentally touched the victim’s buttocks during the course of an on-site inspection at an animal care facility, and that he falsely denied touching other alleged victims.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction count is punishable by up to 20 years in federal prison, while each count of deprivation of civil rights is punishable by up to one year. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you have additional relevant information related to the charged offenses or the defendant, you are encouraged to contact the FBI Chicago Field Office at (312) 421-6700.
Former Ford County Resident Sentenced to 14 Years in Prison for Charges Related to Domestic TerrorismRead the Press Release
URBANA, Ill. – Emily Claire Hari, formerly known as Michael B. Hari, 51, of the 200 block of First Street in Clarence, Illinois, was sentenced on July 11, 2022, to 14 years in the federal Bureau of Prisons for conspiracy to interfere with commerce by threats and violence, attempted arson, unlawful possession of a machinegun, and unlawful possession of a firearm by a felon.
Hari had previously pleaded guilty to all four charges contained in the indictment. During the latter part of 2017, Hari started a militia group, which called itself the “Patriot Freedom Fighters,” and which sometime later went by the nickname the “White Rabbits.” In addition to Hari, who served as its founder and leader, the militia group included convicted conspirators Michael McWhorter, Joe Morris, Ellis J. Mack, and Wesley Johnson. Around the latter part of 2017, the conspirators began engaging in repeated criminal acts of violence, which they referred to as “jobs.” As part of their militia activities, the conspirators obtained materials used to make incendiary devices, provided weapons and uniforms to the conspirators, and assigned rank to the conspirators To assist in their militia activities, the conspirators acquired and/or assembled four shotguns and four assault rifles, some of which were fully automatic. The weapons, as well as thermite (a pyrotechnic composition), were stored in a locked safe in the militia group’s “office” in Clarence.
On November 7, 2017, Hari, McWhorter, Morris, and Johnson travelled to the Women’s Health Practice located in Champaign, Illinois. The Women’s Health Practice provided medical services at that location and purchased and distributed medical supplies. The conspirators went to the Women’s Health Practice for the purpose of using an incendiary device (i.e., a pipe bomb) constructed by Hari to set the building on fire. Hari rented a truck in which the conspirators traveled to the Women’s Health Practice. Once there, Morris broke a window and placed the pipe bomb in the building; the pipe bomb did not ignite, however. On the morning of November 7, 2017, a receptionist at the Women’s Health Practice found the pipe bomb on the floor and called law enforcement officers.
On December 16, 2017, with Hari’s approval, the conspirators traveled from Clarence to a residence in Ambia, Indiana, for the purpose of robbing a Hispanic individual they believed to be involved in drug trafficking. The conspirators wore their “White Rabbit” uniforms and were each armed with firearms. Pretending to be law enforcement officers executing a search warrant, the conspirators forced entry to the residence. The conspirators handcuffed and zip-tied the residents, causing injury to the wrists of one of the zip-tied individuals. After searching for cash and drugs, the conspirators left the residence and returned to Clarence.
On two occasions in December 2017, several conspirators traveled to WalMart stores in Illinois (one in Watseka, and one in Mt. Vernon) with Hari’s approval to attempt to obtain money. The conspirators entered the stores armed with dangerous weapons and confronted cashiers.
On January 17, 2018, Hari, McWhorter, and Morris traveled from Clarence to a location near Effingham, Illinois, where they attempted to sabotage railroad tracks owned by the Canadian National Railway, through the use of an incendiary device. Following the attempted sabotage, the conspirators sent an extortion demand via anonymous e-mail to the Canadian National Railway threatening that that there would be more damage inflicted by the conspirators to railroad tracks if the railroad did not pay the conspirators approximately $190,000 in cryptocurrency.
On February 18, 2018, the conspirators planted bomb-making materials, including a pipe bomb, on the property of an individual in Clarence to attempt to get the individual in trouble with law enforcement prior to a court hearing in Ford County where Hari faced criminal charges for allegedly assaulting the individual in June 2017. Hari then e-mailed an anonymous “tip” to federal authorities that explosive devices were contained in a suitcase and gray bag in a shed at the individual’s property. On the same day, the FBI responded to the address and found multiple explosive devices, including a pipe bomb attached to a small green propane tank, in a shed at the back of the residence.
Following the Clarence search, the conspirators became concerned that the FBI might search the militia group’s office and seize their weapons, including the machineguns. Therefore, Hari and McWhorter moved the weapons, including the machineguns, to the residence of another member of the militia group located in Clarence, where they were later seized by the FBI. The same day the FBI seized the conspirators’ machineguns, Hari, McWhorter, Morris, and Mack fled Clarence, Illinois, on foot and stayed in the woods and in abandoned barns. While they were “on the run,” the conspirators made a video where they wore masks and requested assistance from other militia members.
At the sentencing hearing, U.S. District Judge Michael M. Mihm found that Hari’s crimes were serious and wide-ranging and accepted the parties’ agreement that Hari should be sentenced to fourteen years of imprisonment. In December 2020, following a jury trial, Hari was convicted of charges related to the August 2017 firebombing of a mosque in Minnesota, along with McWhorter and Morris. A federal judge in Minnesota previously sentenced Hari to fifty-three years of imprisonment for those charges.
“Although the militia group started by Hari called itself the ‘Patriot Freedom Fighters,’ the members of the group convicted of federal crimes were not patriots but violent criminals,” said United States Attorney Gregory K. Harris. “Attacking innocent citizens and lawful facilities using threats and violence are not the acts of ‘patriots,’ and this conduct will be prosecuted to the fullest extent of the law. Once again, this case exemplifies the extraordinary investigative efforts of the FBI to bring individuals to justice who commit violent crimes.”
“Emily Claire Hari represents the very real threat posed by domestic violent extremists in the United States,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “The FBI’s counterterrorism team is designed to combat this type of violence and is committed to prioritize and gather intelligence to continually assess the threat picture. The FBI’s focus has been and will remain keeping the American people safe from threats or acts of violence.”
On April 15, 2022, Johnson was sentenced to 66 months of imprisonment for his role in the conspiracy by U.S. District Judge Donovan W. Frank in the District of Minnesota. On April 12, 2022, McWhorter was sentenced to 190 months (15 years and 10 months) of imprisonment by Judge Frank on both the Illinois and Minnesota charges. On that same date, Judge Frank sentenced Joe Morris to 170 months (14 years and 2 months) of imprisonment. On March 8, 2022, Judge Mihm sentenced Ellis Mack to 42 months of imprisonment (time served).
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Office. Supervisory Assistant U.S. Attorney Eugene L. Miller is represented the government in the Central District of Illinois prosecution.
Former Catawba County Director of Utilities Is Sentenced to Prison for Accepting BribesRead the Press Release
CHARLOTTE, N.C. – Barry Bryan Edwards, 66, of Hickory, N.C., was sentenced today to a year and a day in prison and one year of supervised release for accepting kickbacks and bribes from a private contractor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, the Court previously issued a $30,000 money judgement against Edwards.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney King in making today’s announcement.
In February 2022, Edwards pleaded guilty to wire fraud. According to filed documents and today’s hearing, from 2012 to 2018, Edwards and an unnamed individual identified in court documents as the Contractor, devised a bribery and kickback scheme involving Catawba County (the County) government contracts. As Edwards admitted in court, as Director of Utilities and Engineering, Edwards had the authority to review and award contracts on behalf of the County government to private businesses, for engineering and consulting activities related to the County’s landfill, and solid waste and natural gas projects, among others. As court documents show, Edwards admitted to awarding contracts to three businesses associated with the Contractor, all while receiving gifts and other things of value that influenced his decisions, such as expensive meals, tickets to sporting events, and wine-tasting tours, totaling more than $30,000.
Edwards will begin serving his sentence upon designation of a federal facility by the federal Bureau of Prisons.
In making today’s announcement U.S. Attorney King thanked the SBI and the FBI for their investigation of the case.
Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
Former Baltimore Police Sergeant Sentenced to Almost Two Years in Federal Prison for Conspiracy to Deprive Civil Rights for Assisting a Member of the Baltimore Police Gun Trace Task Force by Planting a Gun at the Scene of an ArrestRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Sergeant Keith Allen Gladstone, age 53, of New Park, Pennsylvania, to 21 months in federal prison, followed by three years of supervised release, for conspiracy to deprive civil rights, in connection with planting evidence at a crime scene. As part of his plea, Gladstone also admitted that he told a witness to lie about the event if questioned by law enforcement.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
Keith Allen Gladstone joined the Baltimore Police Department (BPD) as an officer on November 20, 1992, and was promoted to Sergeant on December 16, 2011. Gladstone retired from the BPD on December 25, 2012, but was subsequently reinstated as a Sergeant on December 9, 2013. In March 2014, Gladstone was the officer-in-charge of a Special Enforcement Section (SES) unit assigned to BPD’s Western District. Gladstone retired from the BPD for a second time on May 1, 2017.
On the evening of March 26, 2014, Gladstone, who was on duty, was having dinner with Detective Carmine Vignola when he received a call on his cell phone from Wayne Jenkins, another sergeant in the BPD, who was in a panic because he had just run over an arrestee, D.S., in the front yard of a home in Northeast Baltimore. Gladstone obtained a BB gun from another BPD Officer, Detective Robert Hankard, then drove with Vignola to the site of D.S.’s arrest on Anntana Avenue and Belair Road in Northeast Baltimore City. Gladstone admitted that he dropped the BB gun near a pickup truck where D.S. had laid injured on the ground although by the time Gladstone arrived D.S. had been taken to the hospital. Gladstone told Jenkins, “it’s over by the truck,” or words to that effect. The BB gun was then seen by another BPD officer and ultimately recovered by the BPD’s crime lab unit. Based on a false statement of probable cause written by Jenkins in another officer’s name, D.S. was subsequently charged in Maryland state court with possession, use, and discharge of a gas or pellet gun, for the BB gun that Gladstone planted at the scene of D.S.’s arrest, and a number of drug offenses. D.S. was detained on those charges and related charges for 10 months. On January 16, 2015, the charges were disposed of by nolle prosequi, which is a form of dismissal.
As a result of his actions, Gladstone conspired to deprive D.S. of his liberty without the due process of law.
After Jenkins and six other officers who had been members of the BPD’s Gun Trace Task Force were arrested on federal racketeering charges, Gladstone and Vignola arranged to meet in person. Gladstone arranged for the meeting to take place in a swimming pool, to ensure that Vignola was not wearing a recording device. Gladstone admitted that during the meeting, he told Vignola that if questioned by federal law enforcement about the events on March 26, 2014, Vignola should tell federal investigators that Gladstone and Vignola were at the crime scene for “scene security,” which Vignola knew was not true. Gladstone also told Vignola to tell law enforcement that Gladstone had gotten the BB gun from his trunk, which was also not true, since Gladstone and Vignola had obtained the gun from Hankard.United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community and to report civil rights complaints, please visit www.justice.gov/usao/md or https://www.justice.gov/usao-md/civil-rights.
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Former Army Soldier Sentenced for Assault on Law Enforcement OfficersRead the Press Release
WACO – An Austin man was sentenced today to 24 months in prison for assault on law enforcement officers.
According to court documents, on February 6, 2021, Ricardo Manuele Davila-DeJesus, 29, became intoxicated and got into an argument with several individuals inside a Fort Hood military barracks. The argument continued outside when the defendant pulled out a .45 caliber pistol and discharged his firearm in the direction of a soldier who, fearing for his life, retreated back into the barracks. Other individuals who were at the scene managed to subdue and disarm the defendant. During transport to the police station, Davila struck an officer and spit in the face of another. He continued to resist arrest by repeatedly kicking the back door of the patrol vehicle.
On March 22, 2022, Davila pleaded guilty to two counts of assaulting, resisting or impeding certain officers.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Oliver E. Rich Jr. made the announcement.
The FBI together with the Fort Hood Military Police investigated the case.
Special Assistant U.S. Attorney Captain Shmuel Bushwick prosecuted the case.
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Florida Man Sentenced to 10 Years for Selling Methamphetamine and Possessing A Firearm as Convicted FelonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle today sentenced Cecil Hickox (46, Hillard) to 10 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine and for possessing a firearm as a convicted felon. Hickox had pleaded guilty on April 13, 2022.
According to court documents, on September 11, 2019, Hickox sold 27 grams of 100% pure methamphetamine to a law enforcement confidential informant. The next day, Hickox facilitated the sale of a firearm to an undercover law enforcement officer. Less than two weeks later, on September 25, 2019, Hickox sold an undercover law enforcement officer 110 grams of 99% pure methamphetamine.
This case was investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Pasco Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Charlie D. Connally.