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Thursday 26 May 2022
La Crosse Man Sentenced to 92 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua K. Breidel, 34, La Crosse, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 92 months in federal prison for being a felon in possession of a firearm. This prison term will be followed by 36 months of supervised release. Breidel pleaded guilty to this charge on March 1, 2022.
On the early morning of August 4, 2021, Breidel was involved in a domestic disturbance with his girlfriend in La Crosse. She later told La Crosse Police Department (LCPD) officers that during the argument, Breidel pointed a Glock handgun at her, which he had previously stolen from her. The girlfriend fled the house and reported hearing a pop, which she assumed was the defendant firing a round at her. Breidel later admitted to discharging the firearm. Breidel’s girlfriend described her relationship with Breidel as abusive and said he regularly threatened to kill her, her children, and her family.
The next day, LCPD officers arrested Breidel in his mother’s van in La Crosse. Breidel was wearing body armor and had a bullet in his pocket. Officers searched the van and found a Glock 48 handgun with a loaded extended magazine on the floor near where Breidel had been seated as well as two additional loaded magazines in his backpack. Breidel’s DNA was later found on the Glock handgun.
Breidel was prohibited from legally possessing a firearm based on multiple prior felony convictions. At the time of this offense, Breidel was out of custody on state bond for three separate open criminal cases. He was also on state probation for two prior cases, including a prior conviction for possessing a firearm as a previously convicted felon. His state supervision was revoked and he is currently serving a total sentence of 42 months in state prison followed by 42 months of extended supervision. Judge Peterson ordered this federal sentence to run concurrently with the remainder of Breidel’s state prison sentence which has approximately 32 months remaining.
At sentencing, Judge Peterson said that the protection of the public was an important factor in this case and that Breidel was a dangerous character in the community. Judge Peterson highlighted that Breidel was a repeat firearm offender and the case involved the discharge of a firearm, both of which were considered aggravating factors.
The charge against Breidel was the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office also provided assistance. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Kansas Bookkeeper Pleads Guilty to Bank FraudRead the Press Release
WICHITA, KAN. – A Kansas woman pleaded guilty in connection to a scheme to defraud her former employers of millions of dollars.
According to court documents, Nancy Martin, 77, of Wichita pleaded guilty to one count of bank fraud and one count of aid or assist filing a false tax document. Martin admits to defrauding her employers Mid-Kansas Wound Specialists and Emergency Services P.A. She worked for the businesses as a bookkeeper, business manager, and chief operating officer. An audit revealed that from 2012 to 2017, Martin embezzled approximately $3.1 million by fraudulent obtaining money from her employers’ banks. She used funds to pay for personal expenses, travel, and investments then made false accounting entries to disguise the embezzlement as payments or transferred funds between entities.
From 2013 to 2016, Martin either filed tax turns or caused tax returns to be filed to the Internal Revenue Service that omitted income, therefore, causing a tax loss to the IRS of approximately $670,000.
“IRS Criminal Investigation is committed to unravelling the most complicated embezzlement and tax schemes,” said William Steenson, Assistant Special Agent in Charge, IRS Criminal Investigation. “Ms. Martin’s guilty plea shows IRS-CI’s commitment to protecting the healthcare system and all those who work tirelessly to promote the welfare for all.”
Martin is scheduled to be sentenced on August 17 and faces a maximum penalty of 30 years in prison for bank fraud and a maximum of three years in prison for aid or assist filing a false tax document. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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KC Man Involved in Shooting Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who shot his girlfriend was sentenced in federal court today for illegally possessing firearms.
Kevin D. Hogan, also known as “Diablo,’ 34, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Oct. 25, 2021, Hogan pleaded guilty to two counts of being a felon in possession of a firearm.
Hogan admitted that he was in possession of a Smith & Wesson 9mm semi-automatic handgun on March 16, 2020. Hogan’s girlfriend, who was hospitalized early that morning, told Independence, Mo., police officers that he had punched her with a closed fist eight to 10 times, attempted to stab her with a knife, struck her several times with a handgun, then shot her in the left shoulder. Hogan was arrested on Sept. 29, 2020, when he was a passenger in a vehicle that was stopped by Independence police officers. When officers searched the vehicle, they found a loaded Glock .40-caliber handgun in the rear passenger area directly beneath Hogan’s seat. They also found a loaded Glock .40-caliber handgun, which had been reported as stolen, under the rear of the front passenger’s seat, where it was accessible to Hogan.
Hogan also admitted that he was in possession of a Glock 9mm semi-automatic handgun on June 6, 2021, when law enforcement officers stopped a vehicle in which Hogan was a passenger. Hogan fled from officers on foot but was eventually found at a nearby residence and detained. Officers searched the area and found the Glock handgun behind the residence where Hogan had hidden it.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hogan as a prior federal felony conviction for being a felon in possession of a firearm as well as state felony convictions for unlawful use of a weapon, possession of a controlled substance, forgery, and assault.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. 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.
Justice Department Secures Forfeiture of Maryland Property Purchased with $3.5 Million in Alleged Corruption Proceeds Linked to Ex-President of the GambiaRead the Press Release
The Department of Justice, pursuant to a court-ordered default judgment and final order of forfeiture entered on May 24, has secured the forfeiture of a Potomac, Maryland, property acquired with approximately $3.5 million in alleged corruption proceeds by the former President Yahya Jammeh of The Gambia, through a trust set up by his wife, Zineb Jammeh.
The judgment is the result of a civil forfeiture complaint filed by the United States in July 2020 seeking the forfeiture of the Maryland property. As alleged in the complaint, Yahya Jammeh corruptly obtained millions of dollars through the misappropriation of stolen public funds and the solicitation of bribes from businesses seeking to obtain monopoly rights over various sectors of the Gambian economy. Jammeh conspired with his family members and close associates to utilize a host of shell companies and overseas trusts to launder his alleged corrupt proceeds throughout the world, including through the purchase of a multimillion-dollar mansion in Potomac, Maryland. With this entry of final judgment, ownership of that Maryland property has now been forfeited to the United States along with all rental income generated by the property since the filing of the amended complaint in August 2020. The United States intends to sell the property, and recommend to the Attorney General that the net proceeds from the sale of the forfeited property be used to benefit the people of The Gambia harmed by former President Jammeh’s acts of corruption and abuse of office.
“The Department of Justice is committed to using the rule of law to forfeit assets traceable to alleged foreign corruption,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This case demonstrates our ability to work with foreign partners to secure the forfeiture of assets allegedly derived from illicit bribes and stolen funds despite complex attempts to disguise the proceeds and their intended recipients.”
“Corrupt foreign officials will not be allowed to hide illegal proceeds in Maryland or anywhere else in the United States,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We will use all the tools at our disposal to track down and seek to repatriate those funds.”
“Maryland real estate is not a shelter for funds for corrupt rulers who have stolen from their countrymen,” said Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore. “Working with our domestic and foreign partners, HSI Baltimore has been able to recover property purchased with ill-gotten gain. From here, we will focus our efforts into returning those funds to the people of The Gambia, from whom they were stolen.”
The investigation was conducted by HSI’s Illicit Proceeds and Foreign Corruption Investigations Group in Miami, with the assistance of the HSI Office of the Special Agent in Charge for Baltimore, HSI Attaché Office in Dakar, Senegal and the U.S. Department of State’s Diplomatic Security Service. The Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
The case is being handled by Trial Attorneys Steven Parker and Kaycee Sullivan of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Jennifer Wine for the District of Maryland. Substantial assistance was provided by the Justice Department’s Office of International Affairs. The department also thanks the government of The Gambia for its assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Justice Department Secures Agreement in Race Discrimination Lawsuit Involving Two Rental Properties in GeorgiaRead the Press Release
The Department of Justice announced today that the U.S. District Court for the Northern District of Georgia has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination in housing by the owners and manager of two rental properties in Cedartown, Georgia. The defendants are Crimson Management LLC; Benefield Housing Partnership (dba Cedartown Commons); and Cedartown Housing Associates (dba Cedarwood Village).
The lawsuit, filed in May 2020, alleged that the defendants steered Black housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a housing complex that is inferior in appearance, location and amenities to Cedarwood Village. Most residents of Cedartown Commons are Black. The lawsuit further alleged that the defendants subjected Black residents who are elderly or have a disability to less favorable rental terms, conditions and privileges as compared to similarly situated white tenants. The defendants’ policies allegedly perpetuated segregation at the two properties.
“It is unacceptable that race discrimination in housing persists in our nation more than a half-century after President Johnson signed the Fair Housing Act into law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This Justice Department is committed to vigorously enforcing our civil rights laws by holding housing providers responsible when they perpetuate racial segregation or otherwise engage in prohibited discrimination.”
“Access to housing opportunities remains unequal for Black housing applicants all too often,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “My office will continue to devote resources to eradicate this injustice and we will continue to hold housing providers accountable for racial discrimination in violation of the Fair Housing Act.”
This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia.
Under the court-approved decree, the defendants are required to pay $83,000 in damages to three former tenants who were allegedly harmed as a result of the defendants’ racial steering; pay a civil penalty to the United States; implement nondiscriminatory policies and procedures; complete fair-housing training; and submit periodic reports to the Justice Department.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online at https://civilrights.justice.gov/. Individuals may also contact the Department of Housing and Urban Development at 1-800-669-9777 or by file a complaint online at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint?utm_medium=email&utm_source=govdelivery.
Justice Department Files False Claims Act Complaint Against Six Physicians in Texas Relating to Alleged Kickbacks and Improper Laboratory Testing ClaimsRead the Press Release
The Justice Department amended its complaint in a laboratory testing fraud case to add six physicians in Texas. The case alleges False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law. The amended complaint further alleges that the six physicians caused claims to be improperly billed to federal health care programs for medically unnecessary laboratory testing.
According to the United States’ complaint, the six physician defendants received thousands of dollars in kickbacks in return for their referrals of laboratory testing. The complaint alleges that laboratories True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay physicians to induce referrals to the hospitals for laboratory testing, which was then performed by THD or BHD. As alleged in the complaint, the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring physicians. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary.
“The Department of Justice is committed to holding accountable health care providers, including physicians, who commit fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Improper financial arrangements involving physicians and laboratories can distort physicians’ medical judgments, waste taxpayer dollars and subject patients to unnecessary testing or other services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally-funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The United States’ amended complaint alleges that, in addition to the previously named defendants, the following six physicians received kickbacks from MSOs in return for their laboratory testing referrals:
- Doyce Cartrett, Jr., M.D., of Silsbee, Texas, allegedly received over $320,000 from LRH and two MSOs, Ascend MSO of TX LLC (Ascend) and Eridanus MG LLC (Eridanus), in return for his referrals.
- Elizabeth Seymour, M.D., of Corinth, Texas, allegedly received over $280,000 from two MSOs, Ascend and Eridanus, in return for her referrals.
- Emanuel Paul “E.P.” Descant, II, M.D., of Spring, Texas, allegedly received over $125,000 from two MSOs, North Houston MSO and Tomball Medical Management Inc., in return for his referrals.
- Frederick Brown, M.D., of Missouri City, Texas, allegedly received over $190,000 from two MSOs, Ascend and Indus MG LLC (Indus), in return for his referrals.
- Heriberto Salinas, M.D., of Cleburne, Texas, allegedly received over $75,000 from two MSOs, Ascend and Herculis MG LLC (Herculis), in return for his referrals.
- Hong Davis, M.D., of Lewisville, Texas, allegedly received over $70,000 from two MSOs, Ascend and Herculis, in return for her referrals.
“Schemes that funnel health care referrals do not work without the participation of physicians,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “They are not merely passive players in these elaborate schemes, but an integral part, without which the scheme could not exist. Our office is committed to rooting out health care fraud by pursuing all players involved the scheme, from the laboratories and their leaders to the marketers and the physicians who make it all possible. Naming these physicians in the complaint is evidence of that commitment.”
“Patients deserve reasonable and necessary care from providers without improper motivations,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Collaborating with our law enforcement partners, we will continue to investigate and hold accountable physicians accepting payments for referrals.”
“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste taxpayer resources and impact mission readiness,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will continue to work with our partners to hold those accountable who undermine the integrity of the health care system that supports our nation’s service members, retirees and their families.”
The United States’ amended complaint was filed in connection with a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Felice Gersh, M.D. and Chris Riedel. The United States intervened in the qui tam action in December 2021 and filed a complaint under the False Claims Act in January 2022 against former THD CEO Christopher Grottenthaler, former BHD CEO Susan Hertzberg, former LRH CEO Jeffrey Madison, and others. Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States, et al. ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.
This case is being handled by attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by HHS-OIG and DCIS. As a result of its efforts, the United States has already recovered more than $31 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 29 physicians, two health care executives and a laboratory company.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The claims in the complaint are allegations only, and there has been no determination of liability.
Ithaca Convenience Store Owner Sentenced for Committing Food Stamp FraudRead the Press Release
SYRACUSE, NEW YORK – Abdul Jalil, age 55, of Ithaca, New York, was sentenced yesterday to five years’ probation for federal food stamp fraud, announced United States Attorney Carla B. Freedman, Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture (USDA), and John Joly, Acting Chief of the Ithaca Police Department.
As part of his guilty plea, the defendant admitted that he exchanged food stamp benefits for cash with customers at his store, the Ithaca Halal Meat and Grocery, which is prohibited by the USDA, resulting in a loss to the government of $120,061. Following today’s sentencing, the defendant paid full restitution to the government.
This case was investigated by the United States Department of Agriculture – Office of Inspector General, the Ithaca Police Department, and the Ithaca Department of Social Services, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Individual Indicted for Market Manipulation ConspiracyRead the Press Release
BOSTON – A Chinese national and part-time Weymouth resident has been indicted by a federal grand jury in Boston for his alleged participation in a sophisticated, multi-year market manipulation conspiracy involving securities traded on the United States’ national securities exchanges.
Jiali Wang, 43, was indicted on one count of conspiracy to commit securities fraud and one count of conspiracy to commit market manipulation. Wang was previously charged by criminal complaint.
According to the charging documents, from approximately 2013 through at least 2018, Wang participated in and oversaw the manipulative trading activity of a group of securities traders located in China and, at times, in Massachusetts. Specifically, it is alleged that Wang and his co-conspirators used multiple brokerage accounts in their names, and in the names of others with whom Wang had a relationship, to artificially depress and inflate the prices of thinly traded securities. They allegedly did so by repeatedly placing relatively small sell (or buy) orders designed to send a false signal about a security’s supply (or demand) and to depress (or inflate) the security’s price. It is alleged that Wang and his co-conspirators then immediately placed relatively large buy (or sell) orders on the other side of the market to take advantage of their manipulations. Once the large orders executed, Wang and his co-conspirators allegedly cancelled their outstanding manipulative orders.
The charge of conspiracy to commit securities fraud provides for a sentence of up to 25 years in prison, five years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of conspiracy to commit market manipulation provides for a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Illinois Man Pleads Guilty to Mail Fraud and Aggravated Identity Theft in IRS Tax Refund SchemeRead the Press Release
A Chicago-area man pleaded guilty yesterday to mail fraud and aggravated identity theft associated with his filing of false tax returns.
According to court documents, Wilmer Alexander Garcia Meza used the personal identifying information of others — including their names, dates of birth and identification documents such as foreign passports — to fraudulently obtain Individual Taxpayer Identification Numbers (ITINs) in their names from the IRS. An ITIN is a tax processing number issued by the IRS to individuals who do not have, and are not eligible to obtain, a Social Security number. From 2013 through 2017, Garcia used the ITINs to file tax returns in the names of these stolen identities, claiming thousands of dollars in fraudulent refunds. Garcia then used identification documents in those same names to cash these refund checks issued by the IRS. In total, Garcia caused a tax loss of approximately $222,000.
Garcia is scheduled to be sentenced on Aug. 17 and faces a mandatory minimum sentence of two years in prison for aggravated identity theft and a maximum sentence of 20 years in prison for mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Thomas Flynn and Jacob Green of the Tax Division are prosecuting the case. Former Trial Attorney Michael Landman also provided valuable assistance on the case.
Houston Resident Sentenced for Conspiracy to Commit Mail Fraud OffenseRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that JIMMIE JAMES (“JAMES”), age 33, a resident of Houston, was sentenced on May 25, 2022 for conspiracy to commit mail fraud in violation of 18 U.S.C. § 371. The Honorable Ivan Lemelle sentenced JAMES to thirty (30) months in prison, three (3) years of supervised release, a $100 mandatory special assessment fee, and payment of $178,409.00 in restitution.
According to court documents, JAMES conspired with TYREE JOHNSON (“JOHNSON”), an employee with United Parcel Service (UPS), to steal shipments of Apple iPhones from the UPS Customer Service Center where JOHNSON worked. JOHNSON would over-label boxes of iPhones destined for AT&T Mobility stores with a shipping label provided to him by JAMES. These shipping labels would cause the boxes of iPhones to be redirected to JAMES’s home or an unidentified co-conspirator living in Chalmette. As a reward for over-labeling the packages, JAMES paid JOHNSON at least $3,500 through the Zelle payment application.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hobbs man pleads guilty to child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. – Matthew Lee Dale Taylor, 31, of Hobbs, New Mexico, pleaded guilty on May 25 in federal court to transportation of child pornography, possession of obscene visual representations of the sexual abuse of children, and a registered sex offender committing a felony offense involving a minor. Taylor will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on July 14, 2021, the National Center for Missing and Exploited Children (NCMEC) received a report from Dropbox identifying videos depicting suspected child pornography. On that date, Taylor uploaded 51 videos containing child pornography to a Dropbox account he created using the email address [email protected]. In his plea, Taylor acknowledged that he knew the videos included children engaged in sexually explicit conduct.
On March 7, 2017, Taylor was convicted in Lovington District Court of possession of a visual medium of sexual exploitation of children and was required to register as a sex offender.
By the terms of the plea agreement, Taylor faces 25 to 30 years in prison followed by a lifetime of supervised release.
The Roswell Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the NCMEC and the Hobbs Police Department. Assistant United States Attorney Matilda McCarthy Villalobos is prosecuting 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/.
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Guilty Verdict in Macon State Prison Contraband TrialRead the Press Release
MACON, Ga. – A Metro Atlanta resident was found guilty of trafficking methamphetamine intended for Macon State Prison.
Raquan Emahl Gray, 26, of Conley, Georgia, was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine by a federal jury on May 24, following a two-day trial that began on May 23, before U.S. District Judge C. Ashley Royal. Gray faces a maximum of 20 years of imprisonment to be followed by three years of supervised release and a maximum $1,000,000 fine. A sentencing date has not been scheduled.
“The flow of illegal and dangerous contraband into our prisons must end for the safety of everyone inside the prison and the general public,” said U.S. Attorney Peter D. Leary. “To that end, our office—working alongside our local, state and federal partners—will hold those who supply inmates with drugs, cell phones and other illegal items accountable for their crime.”
“This defendant attempted to get drugs into a state prison, but instead landed there himself,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success because of the spirited efforts of all law enforcement agencies involved.”
“Illegal drugs have no place in Georgia, not even in our prison system. They are dangerous and threaten the safety of all populations. We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations no matter where they are,” said GBI Director Vic Reynolds.
According to court documents and evidence presented at trial, Gray was the passenger of a vehicle that was pulled over by a Crawford County Sherriff’s Office deputy in Roberta, Georgia, for traveling 25 mph over the posted speed limit on Sept. 2, 2019. A strong odor of marijuana was emanating from the car and the driver, Demarea Demond Carey, 28, of Fairburn, Georgia, admitted he had smoked marijuana. A probable cause search of the vehicle found various packages wrapped in different colored duct tape and some were numbered. Some packages were softball shaped and wrapped in electrical tape. The packages contained 494 grams of methamphetamine, 150 suspected ecstasy pills which tested as methamphetamine, 50 cell phones, two large bags of cell phone chargers, approximately three pounds of marijuana, 19 bags of tobacco, a large bag of cigars and 19 lighters. Co-defendant Carey’s cell phone’s GPS destination was set for Macon State Prison.
Gray has an extensive criminal history including felony convictions for robbery, burglary and theft by taking. Two co-conspirators who were traveling with Gray—Daquann Marquez Epps, 25, of Columbus, Georgia, and Carey—both previously pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance and conspiracy to possess with intent to distribute methamphetamine, respectively. Sentencing for Epps and Carey is scheduled for July 6.
The Crawford County Sheriff’s Office, the Peach County Sheriff’s Office, GBI, the Georgia Department of Corrections and DEA investigated the case.
Assistant U.S. Attorneys Will Keyes and Leah McEwen are prosecuting the case.
Fourth Defendant in ‘Grandparent Scam’ Network Pleads Guilty to RICO ConspiracyRead the Press Release
A fourth member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.
According to court documents, Joaquin Lopez, 46, of Hollywood, Florida, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay up to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means, including in-person pickup, mail and wire transfer, and then laundered the proceeds, including through the use of cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will continue to investigate and prosecute criminals who target elderly Americans and take advantage of their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI in advancing the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”
“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman for the Southern District of California. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”
“These guilty pleas are a prime example of the collaboration and coordination among our local, state and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI’s San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Lopez pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. He is scheduled to be sentenced on Aug. 19. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Two co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson for the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Four Southern California Residents Arrested on Charges Alleging Elderly Timeshare Owners Were Defrauded Out of More Than $5 MillionRead the Press Release
SANTA ANA, California – Federal authorities today arrested four defendants charged in a 29-count grand jury indictment alleging they scammed dozens of timeshare owners out of more than $5 million by using boiler room tactics and lying that they could provide them financial relief.
The following defendants were arrested today and are expected to be arraigned this afternoon in United States District Court in Santa Ana:
- Michael McDonagh, 41, of Long Beach, the lead defendant and alleged ringleader of the scheme;
- Antonio Duarte, 42, of Corona;
- Christopher James Vannoy, 32, of Norwalk; and
- Ruben Ortiz, 40, of Long Beach.
Authorities are continuing to search for a fifth defendant named in the indictment, Frank Anthony Molina, 43, of San Pedro.
The indictment charges the defendants with one count of conspiracy. McDonagh, Duarte, Vannoy and Molina are charged with 28 counts of wire fraud and telemarketing fraud against the elderly. Ortiz, who allegedly joined the conspiracy in 2018, is charged with 12 counts of wire fraud and telemarketing fraud against the elderly.
According to the indictment returned on April 28 and unsealed today, from 2015 to May 2019, “openers” who worked for McDonagh-controlled telemarketing companies contacted timeshare owners and offered to help them terminate their timeshare interest for a fixed fee. If the timeshare owner expressed interest in the telemarketing companies’ services, the call was transferred to a “closer” – usually Duarte, Vannoy, Molina or another co-conspirator – who convinced victims to sign contracts with the telemarketing companies to get them out of their timeshare for a “one-time fee.”
Within weeks of the victim paying the fee, Duarte, Vannoy and Molina again contacted victims and told a series of lies to induce the victims to pay more money. For example, according to the indictment, some victims were falsely told that they would obtain – for an additional fee – a large settlement payment based on purported litigation against the victim’s timeshare company, including a class-action lawsuit.
The defendants allegedly also made false promises of securing – for an additional fee – a large “restitution” payment from the victim’s timeshare company because the timeshare company had purportedly rented out the victim’s timeshare property without the victim’s permission.
The victims were falsely told their additional fees would be refunded once the “restitution” and “settlement” had been paid, the indictment alleges. To conceal the scheme, the defendants frequently convinced victims to sign fraudulent non-disclosure agreements to prevent the victims from contacting the timeshare companies to inquire about the purported settlement or restitution payments by claiming that the timeshare companies required the agreements to release the promised funds. In fact, no litigation was pending, and no restitution payments were made.
McDonagh founded and or controlled several companies – Irvine-based Global Transfer Inc., Costa Mesa-based Global Transfer SoCal Inc., Santa Ana-based Nationwide Transfer Inc., and Signal Hill-based Nationwide Exit Specialist Inc. – that purported to offer timeshare relief. Once one telemarketing company became inundated with consumer complaints, McDonagh allegedly would form a new telemarketing company to perpetuate the fraud.
According to the indictment, McDonagh instructed employees of the telemarketing companies to “take no prisoners,” have “no remorse” when interacting with victims, and to “take every penny you can from” the victims “so they cannot sue” the telemarketing companies. The indictment further alleges that in response to complaints from Ortiz about the risks he was taking in participating in the conspiracy, McDonagh told him that “it’s def a risk but I mean I shut down global over a year ago and nothing! ‘Knock on wood’ but I mean it’s a decision you personally have to make ive made piece [sic] with it ive been a criminal my whole life and now it’s actually benefiting me[.]”
Through this conspiracy, the defendants fraudulently obtained more than $5 million from the victims. The indictment alleges that the scheme targeted dozens of victims, including many victims who were 55 years of age or older.
If convicted of all charges, each defendant would face a statutory maximum sentence of 20 years in federal prison on the conspiracy count and a statutory maximum sentence of 30 years in federal prison for each fraud count.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The United States Secret Service and the Huntington Beach Police Department investigated this matter.
Any member of the public who has information related to this case or similar fraud schemes is encouraged to contact the Secret Service’s Santa Ana Resident Office at (714) 246-8257.
Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section and Ian V. Yanniello of the General Crimes Section are prosecuting this case.
Former Mississippi Deputy Warden Pleads Guilty to Assaulting Inmate at Parchman PrisonRead the Press Release
Melvin Hilson, 49, a former deputy warden at the Mississippi State Penitentiary, which is also known as Parchman, pleaded guilty today to violating an inmate’s civil rights in 2016. In June 2021, Hilson was charged with violating the inmate’s civil rights by repeatedly striking him and knocking him to the ground, which resulted in the inmate suffering a ruptured eardrum, abrasions to his ear and neck and prolonged headaches. Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Clay Joyner of the Northern District of Mississippi made the announcement.
“This defendant is being held accountable for violating his duty as a corrections officer by unlawfully assaulting an inmate under his custody,” said Assistant Attorney General Clarke. “This former Parchman deputy warden caused severe injury to the victim, and his actions violated the trust that we place in corrections officials to lawfully carry out their duties. The Civil Rights Division will continue to hold law enforcement officials accountable when they use force without basis and violate people’s civil rights inside our jails and prisons.”
“When corrections officials use unlawful, unnecessary and unwarranted force against inmates, it casts a stain on the profession and all the upstanding officers who do their jobs each and every day within the confines of the law,” said U.S. Attorney Joyner. “Today’s guilty plea is an important step to ensuring that those who choose to violate the public’s trust are held accountable for their illegal actions.”
According to court documents and statements made during today’s hearing, Hilson was working as a member of Parchman’s K-9 Unit at the time of the assault. On or around Aug. 3, 2016, J.T. was in a caged area inside of the medical unit, where he waited to be seen by a medical provider. Hilson approached J.T. and struck him with a closed fist several times, knowing that there was no reason to use force and that J.T. did not pose any threat to himself or others. During the assault, Hilson knocked J.T. to the ground, picked him up, and then struck him and knocked him to the ground again. According to prosecutors, J.T. did not attempt to fight back or defend himself from Hilson’s assault.
A federal grand jury indicted Hilson in June 2021 on three separate counts, including writing a false report to conceal the assault and lying to Mississippi Department of Corrections investigators about the assault. The obstruction charges will be dismissed at the conclusion of sentencing. The civil rights violation carries a maximum sentence of 10 years’ imprisonment and a $250,000 fine. Hilson is scheduled to be sentenced on Sept. 1, 2022.
This case was investigated by the Jackson Division of the FBI. Special Litigation Counsel Samantha Trepel and Trial Attorney Cameron A. Bell of the Civil Rights Division, and Assistant U.S. Attorneys Kimberly Hampton and Robert Mims of the Northern District of Mississippi are prosecuting the case.
Former Kauai County Council Member Sentenced to 20 Years in Federal PrisonRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Arthur Brun, age 50, a former member of the Kauai County Council, yesterday to serve 20 years in federal prison for drug trafficking, assault of a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses. Brun, who was indicted with 11 other defendants on drug trafficking offenses, an assault on a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses, pled guilty to ten of those charges on November 10, 2021. All 11 other defendants have pled guilty to various charges and are awaiting sentencing.
According to information presented to the court, while serving as a member of the Kauai County Council, Brun worked with others to distribute substantial amounts of methamphetamine on Kauai. Among the individuals who supplied him the methamphetamine was co-defendant Maluelue Umu, a leader of the United Samoan Organization, which is a gang that operates both inside and outside of the prison system in the State of Hawaii.
As part of his guilty plea, Brun admitted that on October 29, 2019, after he had received a pound of methamphetamine from Umu, personnel with the Kauai Police Department (“KPD”) conducted a traffic stop of Brun’s vehicle. During the stop, a narcotic detection canine alerted to the odor of narcotics in the vehicle. A lieutenant with KPD, who was acting under the direction of federal investigators, asked Brun to get out of his vehicle. Brun refused. The KPD lieutenant then reached into the vehicle to remove the keys from the ignition. While his arm and shoulder were still partially inside of the vehicle, Brun placed the vehicle in drive and sped off, causing injury to the KPD lieutenant. Brun thereafter led investigators on a high-speed chase before he was finally apprehended. Although he threw the pound of methamphetamine out of his vehicle window during the chase, federal investigators were conducting Title III wiretap interceptions on Brun’s cellular telephones at the time and intercepted him instructing his accomplices to return to the scene of the chase to retrieve the drugs.
In sentencing Brun to 20 years in federal prison, Judge Watson emphasized that police officers put their lives on the line to protect the community and that when someone injures an officer while they are doing their job, the court’s obligation is to impose a sentence that adequately reflects the seriousness of that crime. Brun’s assault on a law enforcement officer, Judge Watson explained, elevates the seriousness of Brun’s drug trafficking conduct in this case.
“As methamphetamine trafficking continues to plague Hawaii as one of the worst crime problems in our state, the fact a publicly-elected official led a criminal organization engaged in such activity magnifies the seriousness of this matter,” said U.S. Attorney Clare E. Connors. “The additional fact that this public official personally assaulted a law enforcement officer in the course of his criminal conduct adds to the corrupt nature of his offense. We will continue to hold elected officials accountable for criminal misconduct.”
“It is deeply disturbing that an elected public official, particularly one who was the vice chair of the Kauai County Council’s Public Safety and Human Services Committee, would engage in such a pattern of lawlessness and disregard for the welfare of community,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Seattle Special Agent in Charge Jonathan T. McPherson. “This significant sentence should send a clear message to anyone who engages in this type of criminal behavior that it will not be tolerated.”
“As an elected official, Mr. Brun violated the trust of the community by participating in an elaborate crime ring,” said Homeland Security Investigations (HSI) Special Agent in Charge John F. Tobon. “This sentence shows that no one is above the law. Investigating organized crime is a top priority for HSI and we will continue to work with our law enforcement partners to disrupt this type of criminal activity.”
"Illicit drugs, especially methamphetamine, are responsible for destroying too many lives,” said Kauai Police Department Chief Todd Raybuck. “This case is evidence of the dedication and collaboration between the Kauai Police
Department and our federal partners. I am proud of, and grateful for, the women and men that placed themselves in harm’s way, sacrificing much time away from their families, to bring this case to conclusion. The Kauai Police Department and our federal partners will continue to identify, investigate, and bring to justice those persons responsible for distributing the illicit drugs that are causing addiction and suffering in too many homes across our community."ATF, the Kauai Police Department, and HSI conducted the investigation that resulted in the indictment, with the assistance of the United States Marshals Service Fugitive Task Force, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Coast Guard Investigative Service. Assistant U.S. Attorneys Micah Smith, Chris Thomas, and Michael Nammar handled the prosecution.
Former Illinois State Representative Sentenced to Nearly Five Years in Federal Prison for Participating in Bribery SchemeRead the Press Release
CHICAGO — Former Illinois State Rep. LUIS ARROYO has been sentenced to nearly five years in federal prison for participating in a bribery scheme involving a fellow state lawmaker and Arroyo’s private lobbying client, a sweepstakes gaming company.
Arroyo, 67, of Chicago, pleaded guilty last year to a federal wire fraud charge. U.S. District Judge Steven C. Seeger imposed a 57-month prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorney James P. Durkin.
Arroyo represented the 3rd District in the Illinois House of Representatives from 2006 to 2019. He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.
In 2018 and 2019, Arroyo accepted thousands of dollars in bribes from the gaming company, Collage LLC, in the form of checks made payable to Spartacus. In exchange for those bribes, Arroyo promoted legislation in the Illinois House of Representatives related to the sweepstakes industry and advised other state lawmakers to support the legislation.
In August 2019 Arroyo offered to have payments made to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie, Ill., and provided him with a $2,500 check from Collage as an initial bribe payment, with the expectation that the senator would receive similar payments for 12 months. Arroyo told the senator, “This is the jackpot,” and then wrote the name of the senator’s nominee on the company’s check. The nominee’s name was used for the purpose of concealing the illicit payment.
Former Financial Advisor from Berks County Convicted of Fraud, Money Laundering for Scheme to Steal from ClientsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jason Weigand, 51, of Sinking Springs, PA, was convicted at trial on thirty counts involving multiple charges of fraud, money laundering and identity theft arising from his elaborate scheme to steal money from his own financial advisory clients.
In October 2017, the defendant was charged by Indictment, which was then superseded several times. Further, while the defendant was out on bail awaiting trial, he committed additional fraud crimes, which resulted in a second indictment. Weigand was ultimately charged with thirty counts involving multiple counts each of wire fraud, mail fraud, bank fraud, interstate transportation of stolen property, unauthorized access to a computer, aggravated identity theft, money laundering, and committing offenses while on bail.
During the nearly 15 years that he served as an investment advisor and proclaimed himself a knowledgeable and reputable source of investment advice, the defendant repeatedly stole money from his clients and went to great lengths to cover up his thefts. Weigand laundered the stolen funds by passing them through a variety of bank accounts, and he even hacked into one client’s email account and accessed emails between the client and another investment advisor.
“Weigand has proven himself to be serial fraudster with no respect for the law or the fiduciary obligations of a financial advisor, and today a jury agreed,” said U.S. Attorney Williams. “Rather than serving his clients, he served himself. Prosecuting financial fraud, and thereby safeguarding innocent investors who stand to lose everything, will always be a priority for this Office.”
“With today’s guilty verdict, Jason Weigand’s victims may finally find some closure on their abuse at the hands of this serial fraudster,” said Postal Inspector in Charge of the Philadelphia Division Damon Wood. “Mr. Wiegand was dishonest in his dealing with them, and not surprisingly, that dishonesty extended through trial. Fortunately, a jury saw through his dishonesty and found him guilty of fraud. Postal Inspectors, picking up the work of investigators from the Pennsylvania State Department of Banking and Securities, along with prosecutors from the United States Attorney’s Office, saw this investigation through seven years of delays, a pandemic, continued criminal conduct by the defendant, and a nearly three-week trial. I applaud the tireless efforts of the investigators and prosecutors on this case.”
The case was investigated by the United States Postal Inspection Service and the Pennsylvania State Department of Banking and Securities, and is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Christopher J. Mannion.
Former Employee of Veterans Affairs Medical Center Sentenced to 57 Months in Prison for Stealing HIV MedicationRead the Press Release
NEWARK, N.J. – A former pharmacy procurement technician was sentenced today to 57 months in prison for stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Lisa M. Hoffman, 50, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 35, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. The loss amount was more than $8.2 million.
In addition to the prison term, Judge Salas sentenced Hoffman to three years of supervised release, ordered restitution of $8.29 million and forfeiture of $450,000.
Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and was sentenced in February 2022 to 42 months in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri; and the VA Police Service of New Jersey, under the direction of Chief Minelli Torres Sukola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.
Former Doctor Sentenced to 46 Months in Prison for Illegally Prescribing Controlled SubstancesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID CIANCIMINO, 63, of Trumbull, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally distributing prescription medication. Judge Williams also ordered Ciancimino to pay a $25,000 fine.
According to court documents and statements made in court, Ciancimino was a sole practitioner practicing psychiatry and neurology/psychiatry from an office located at 4 Corporate Drive in Shelton. In October 2020, law enforcement began investigating Ciancimino’s prescribing practices of various benzodiazepines, such as Xanax, and stimulants, such as Adderall. During the investigation, federal task force officers acting in an undercover capacity paid Ciancimino $200 during visits to receive prescriptions for Xanax or Adderall, or their generic equivalents, with little to no medical examination.
Ciancimino was arrested on September 23, 2021. On January 24, 2022, he pleaded guilty to one count of distribution of a controlled substance without a legitimate medical purpose and outside the scope of professional practice.
In addition to his fine, Ciancimino has forfeited $175,773.45 seized at the time of his arrest.
Ciancimino, who is released on a $500,000 bond, is required to report to prison on July 25.
Ciancimino surrendered his medical license in January.
This investigation was conducted by the DEA New Haven Tactical Diversion Squad and HHS-OIG’s Office of Investigations, with the assistance of the Connecticut Department of Consumer Protection – Drug Control Division and the Middlebury Police Department. The DEA’s Tactical Diversion Squad includes personnel from the DEA and the Bristol, East Windsor, Glastonbury, Hamden, Manchester, New Britain, Newington, Watertown and West Haven Police Departments.
This case was prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Former CPA Sentenced for Submitting False Documents to the IRSRead the Press Release
LONDON, Ky.- A former Certified Public Accountant (CPA), Charles Marshall Stivers, 59, of Manchester, Kentucky, was sentenced to 10 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, for submitting false documents to the IRS.
According to Strivers’ plea agreement, in 2015, he had previously been convicted in the Eastern District of Tennessee for participating in a cigarette tax stamp conspiracy; and as a result, he had his CPA license revoked by the Kentucky Board of Accountancy. Despite that, on multiple occasions from 2016 to 2019, Stivers held himself out as a CPA and falsely completed IRS Form 2848s (Power of Attorney and Declaration of Representative) indicating he was a licensed CPA.
Stivers pleaded guilty in December 2021.
Under federal law, Stivers must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for two years.
In addition to his prison sentence, he was also ordered to pay a $30,000 fine.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), Great Lakes Field Division, jointly announced the sentence.
The investigation was conducted by TIGTA. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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Former Aequitas Senior Executive and Chief Financial Officer Pleads Guilty to Making False Statements to a CreditorRead the Press Release
PORTLAND, Ore.—A former senior executive and chief financial officer of Aequitas Management, LLC, and several other entities formerly owned by Aequitas, pleaded guilty today to submitting a false statement to an Aequitas creditor to obtain a $4.2 million loan for the now-defunct company.
Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank.
According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitas’s behalf
By early January 2016, Aequitas’s general counsel advised Gillis and other executives that the company would soon default on payments due to Private Note investors, causing an “event of default” on Aequitas’s loan agreement with Wells Fargo. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an “advance notice,” requesting that Wells Fargo advance $4.2 million to Aequitas with a false certification that Aequitas was not confronting a potential event of default.
On August 11, 2020, the U.S. Attorney’s Office announced that Gillis had been charged in a 34-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Gillis was charged alongside former Aequitas CEO Robert J. Jesenik, 62, of West Linn, Oregon, and former Aequitas executives Brian K. Rice, 55, of Portland, and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023.
Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years’ supervised release. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court.
This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Attorneys for the District of Oregon.
Firearms Charge Brought Against Fresno Man Arrested in Operation No Fly ZoneRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Andre Marcele Grigsby, 50, of Fresno, charging him with being a felon in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced.
The case arose from Operation No Fly Zone, a multi-agency, months-long investigation that resulted in the arrests of over 40 individuals, including seven federal defendants. According to court documents, on April 14, 2022, Grigsby was found to be in possession of a firearm and ammunition. Grigsby has been convicted of felony child cruelty in 2015 in Fresno County.
This case is the product of an investigation by the Federal Bureau of Investigation; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Fresno Police Department; the Fresno-area Multi-Agency Gang Enforcement Consortium (MAGEC); the California Department of Justice Special Operations Unit, the California Department of Justice Human Trafficking / Sexual Predator Apprehension Team; the California Highway Patrol; the Fresno County Sheriff’s Office; the Kings County Sheriff’s Office; the California Department of Corrections and Rehabilitation; and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case.
If convicted, Grigsby faces a maximum statutory penalty of 10 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 is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH - A resident of Munhall, Pa., pleaded guilty in federal court to charges of cocaine trafficking and illegal firearm possession, United States Attorney Cindy K. Chung announced today.
Shaun Seidling, age 40, pleaded guilty to both counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Seidling arranged to have a kilogram of cocaine mailed to his residence, but postal inspectors seized the package and then executed a search of his residence. There, investigators located items which included the package, additional amounts of cocaine, a 9mm caliber handgun, ammunition for 9mm and .22 caliber firearms, scales and other drug packaging items. Court documents indicate that Seidling has previously been convicted of multiple felony offenses which preclude his lawful possession of a firearm or ammunition. One of those convictions was a prior federal conviction for illegally possessing a firearm.
Judge Schwab scheduled sentencing for October 12, 2022, at 9:30 am. The law provides for a total sentence of at least 5 years and up to 50 years in prison, a fine of up to $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
United States Postal Inspection Service conducted the investigation that led to the successful prosecution of Seidling, with valuable assistance from the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Federal Officials Adhere to Prior Decision Related to Nassar InvestigationRead the Press Release
The Justice Department announced today that after careful re-review of evidence gathered in the investigation of two former FBI special agents in connection with their involvement in the FBI’s investigation of Lawrence G. Nassar, it is adhering to its prior decision not to bring federal criminal charges.
This decision comes after multiple reviews and analyses of evidence gathered in the investigation of the former agents, and reflects the recommendation of experienced prosecutors. This does not in any way reflect a view that the investigation of Nassar was handled as it should have been, nor in any way reflect approval or disregard of the conduct of the former agents.
While the Justice Department’s Office of Inspector General has outlined serious concerns about the former agents’ conduct during the Nassar investigation, and also described how evidence shows that during interviews in the years after the events in question both former agents appear to have provided inaccurate or incomplete information to investigators, the Principles of Federal Prosecution require more to bring a federal criminal case.
We will continue to learn from what occurred in this matter, and undertake efforts to keep victims at the center of our work and to ensure that they are heard, respected, and treated fairly throughout the process, as they deserve. To that end, the department has continued to assess gaps in the law to protect the most vulnerable among us from exploitation. Addressing those gaps could help prevent events like this from taking place in the future and hold perpetrators accountable. We stand ready to collaborate with Congress to do so.
Federal Jury Finds Two Men Guilty for Roles in Major Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – After two days of trial, a federal jury today convicted Leo Antoine Smith, 38, of Cross Lanes, of conspiracy to distribute a quantity of methamphetamine and Douglas Johnathan Wesley, 33, of Charleston, of being a felon in possession of a firearm.
With today’s verdicts, all 17 individuals charged with various drug and firearms offenses in three separate indictments have either pleaded guilty or been otherwise convicted. The cases resulted from a long-term investigation of a large-volume methamphetamine conspiracy operating in and around St. Albans and South Charleston.
“This case represents an outstanding example of inter-agency teamwork and diligence that not only dismantled a significant drug operation, but also prevented a violent crime from occurring on Charleston’s West Side,” said United States Attorney Will Thompson. “I commend the excellent investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, the Kanawha County Sheriff’s Department, and the Metropolitan Drug Enforcement Network Team (MDENT). I also thank Assistant United States Attorneys Joshua Hanks and Alex Hamner and the trial team for their commitment to this case and I congratulate them on its successful prosecution.”
Evidence at trial revealed Smith distributed methamphetamine around Charleston between the fall of 2020 and September 21, 2021, and connected Wesley to a foiled Fourth of July 2021 murder scheme.
On at least one occasion in early 2021, Smith traveled with Brian Dangelo Terry to Atlanta to purchase methamphetamine from Ramon David Alston. Trial testimony, wiretap evidence, and text messages obtained from Smith’s cellphones revealed that he distributed more than 60 ounces of methamphetamine.
Wesley was one of four men who armed themselves at a Rand residence on July 4, 2021, and drove to Charleston’s West Side where they intended to shoot another man. Alerted to the plot, police in marked cruisers converged on the area. The four men abandoned their vehicle in a Lee Street parking lot due to the increased police presence. Law enforcement officers executed a search warrant on the vehicle and recovered four loaded firearms. The jury found Wesley possessed one of those firearms, a Sig Sauer, Model SP2022, .40-caliber pistol.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Wesley knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery in Kanawha County Circuit Court on August 4, 2005, and for being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on June 10, 2013.
Ramon David Alston, James Edward Bennett III, Treydan Leon Burks, Jonathan Gregory Bush, Kaitlyn Brooke Combs, Kelly Cordle, Denise Marie Cottrill, Shane Kelly Fulkerson, Brittany Frances Gilbert, Angie Lane Harbour, Scott Edward Hudson, Jason Robert Oxley, Michael Antonio Smith and Brian Dangelo Terry all pleaded guilty. Timothy Wayne Dodd was convicted on March 24, 2022, following a two-day jury trial.
United States District Judge Joseph R. Goodwin presided over the jury trial. Smith is scheduled to be sentenced on August 15, 2022, and Wesley on August 17, 2022. Smith faces up to 20 years in prison. Wesley faces up to 10 years in prison.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-171, 2:21-cr-172, 2:21-cr-211, and 2:22-cr-90.
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Federal Grand Jury Indicts Fresno Felon on Federal Firearm ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Salvador Tyrone Peraza, 22, of Fresno, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 6, 2022, law enforcement officers conducted a traffic-enforcement stop on a car driven by Peraza. Inside the car, officers found a loaded, privately manufactured firearm, also referred to as a “ghost gun” because of its lack of a serial number. Peraza has previously been convicted of several felony convictions and is therefore prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Fresno Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Peraza faces a maximum statutory penalty of 10 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 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.
Federal Drug and Gun Charges Brought Against Fresno ManRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Sorondo Jr., 49, of Fresno, charging him with conspiring to traffic fentanyl, methamphetamine, and cocaine, illegally possessing firearms, and possessing fentanyl with intent to distribute it, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in January and February 2022, Sorondo conspired with others to possess and distribute fentanyl, methamphetamine, and cocaine. On Feb. 1, 2022, when law enforcement officers tried to contact Sorondo, he fled and tossed a firearm over a chain-link fence. The officers apprehended Sorondo and then recovered the abandoned, loaded firearm. Two weeks later, a police officer arrested Sorondo in possession of another two firearms and about 100 counterfeit oxycodone pills laced with fentanyl. Sorondo is prohibited from possessing firearms because of his prior felony convictions. Sorondo is currently in custody awaiting trial on these charges.
This case is the product of an investigation by FORT, a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
If convicted of the drug offenses, Sorondo faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of being a felon in possession of a firearm or ammunition, he faces up to 10 years in prison and a fine of up to $250,000. 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 is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Federal Charges Result from Weekend Undercover Operation in Downtown Entertainment DistrictRead the Press Release
NASHVILLE – A Nashville, Tennessee man is facing federal drug distribution and firearms charges, as a result of an undercover operation last weekend in the downtown entertainment district, announced U.S. Attorney Mark H. Wildasin.
Khalil D. Smith, 26, was charged today, in a criminal complaint, with possession with intent to distribute fentanyl; possession of a firearm in furtherance of a drug trafficking crime; and being a convicted felon in possession of a firearm.
According to the complaint, on Friday night, members of the Metropolitan Nashville Police Department (MNPD) Specialized Investigation Division were conducting an undercover operation in the downtown entertainment district with the aim of identifying persons buying and selling illegal narcotics in the Broadway area. This operation was conducted in response to an increase in the number of people overdosing in that area after ingesting fentanyl.
After seeing an individual snorting cocaine, detectives arranged to purchase a “ball” of cocaine from the individual’s source. A short time later, the individual returned with Smith and another person. Smith approached the detectives and directed them to a business on 4th Avenue South, where Smith exchanged a bag of white powder for $200. Officers then attempted to arrest Smith, at which point he fled on foot. After a foot pursuit, MNPD officers took Smith into custody. The powder tested positive for fentanyl.
At the time of Smith’s arrest, he was in possession of multiple plastic bags containing a total of approximately 11 grams of fentanyl; a bag containing approximately 6 grams of cocaine; a bag containing approximately 21 grams of marijuana; a bag containing 23 full Xanax bars and multiple partial pieces of Xanax bars; as well as a 9mm Beretta semiautomatic handgun, which was loaded with 17 rounds of ammunition.
Smith was found to have been previously convicted of multiple felonies in Davidson County and Rutherford County, Tennessee.
If convicted, Smith faces a mandatory minimum sentence of five years, and up to life in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Robert McGuire is prosecuting the case.
The charges are merely accusations. Smith is presumed innocent until proven guilty in a court of law.
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Father and Son Prosecuted for Bank Fraud SchemeRead the Press Release
BIRMINGHAM, Ala. – On Tuesday, a father and son appeared in court on charges stemming from a bank fraud scheme in which they provided fraudulent information to financial institutions for the purpose of obtaining loans, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie C. Axon sentenced Christopher A. Montalbano, 39, of Vestavia, to 180 months in prison and ordered him to pay restitution in the amount of $11,924,471.00. Montalbano pleaded guilty to conspiracy to commit bank fraud, bank fraud, and money laundering in November 2021.
“Today’s sentence demonstrates that schemes to defraud federally-insured financial institutions are serious crimes that carry significant penalties,” U.S. Attorney Escalona said. “This defendant caused a multi-million-dollar loss to the victims. We will continue to work tirelessly with our law enforcement partners to hold perpetrators of these fraud schemes accountable and use all tools at our disposal to recover their ill-gotten gains.”
“Montalbano deserves every day of this sentence, as he went to great lengths to cover up his massive fraud scheme,” SAC Sharp said. “Hopefully, Montalbano enjoyed the short time he had with the luxury items he purchased with money he swindled from federally insured banks, as he will now pay for his crimes with years behind bars. American citizens can be assured that the FBI will continue to pursue predators who drag down our economy by deception for their own personal gain.”
According to the sentencing memo, between 2016 and 2020, Montalbano engaged in a bank fraud scheme targeting financial institutions insured by the Federal Deposit Insurance Company (FDIC) and the National Credit Union Administration (NCUA) in multiple states including Alabama. Montalbano, through his shell companies, and/or known associates, fraudulently obtained millions of dollars in loans from at least twenty different financial institutions by submitting fraudulent information and supporting documentation on more than 140 loans. Montalbano obtained these loan proceeds in his personal name, through a shell company, or in the name of a co-conspirator. Montalbano specifically used the loan proceeds to pay for an extravagant lifestyle which included traveling on a private jet aircraft, employing private pilots, employing a personal assistant, purchasing multiple high-end vehicles including Lamborghinis and Ferraris, and purchasing multiple real properties, including a residential home in a gated community, a lake house, and farmland.
To further facilitate the bank fraud scheme, Montalbano created internet websites for some of his shell companies including Land Work Tractor & Equipment (LWT&E), previously located in Florida and then Vincent, Alabama. On the LWT&E website, Christopher Montalbano posted photographs of agricultural and construction equipment, UTVs and boats which were purportedly in LWT&E’s possession and for sale. However, the majority of these photographs were copied and taken from the internet websites of legitimate equipment dealers. As a further part of the scheme, Christopher Montalbano purchased adjoining properties totaling approximately 150 acres in Vincent, Alabama, where LWT&E was purportedly located. Christopher Montalbano then gated the private access road(s) which both prevented unscheduled access, and severely limited the lenders’ ability to verify LWT&E’s possession of the equipment being sold and/or the validity of the equipment pictures on LWT&E’s internet website.
Gus Montalbano, 77, of Vestavia, pleaded guilty before U.S. District Court Judge Annemarie C. Axon to conspiring with Christopher Montalbano to commit bank fraud.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Robin B. Mark and Kristen Osborne are prosecuting the cases.
Fairfield Man Indicted for Possession of Methamphetamine and Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against William Josiah Scrivner, 36, of Fairfield, charging him with possession with intent to distribute methamphetamine and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 23, 2022, law enforcement officers observed Scrivner as the driver and sole occupant of a vehicle in the parking lot of the NorthBay Medical Center in Fairfield. The officers arrested Scrivner on an outstanding Solano County arrest warrant. A post-arrest search of his person and vehicle resulted in approximately 40 grams of methamphetamine, $551 on his person, and a digital scale in his car. A probation search of Scrivner’s residence resulted in the discovery of two firearms, one of which was stolen, firearm parts and ammunition, additional methamphetamine, and two more scales. Scrivner is prohibited from possessing firearms or ammunition because he has been convicted of several felonies, including two prior convictions for possession of methamphetamine for sale and a prior conviction for being a felon in possession of ammunition.
This case is the product of an investigation by the Fairfield Police Department, the Solano County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of the narcotics offense, Scrivner faces a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the firearms offense, he faces a maximum statutory penalty of 10 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 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.
Duluth Felon Sentenced to Nearly Eight Years in Prison for Illegal Possession of a FirearmRead the Press Release
DULUTH, Minn. – A Duluth man was sentenced to 95 months in prison, followed by three years of supervised release for illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, Jesse William Peterson, 40, possessed a .38-caliber Smith and Wesson revolver with an obliterated serial number. On October 25, 2020, officers with the Duluth Police Department attempted to arrest Peterson at a residence on an outstanding warrant. Peterson refused to exit the residence and comply with officers’ attempts to arrest him. Peterson shot the firearm at the direction of officers. After a two-hour stand-off, Peterson was taken into custody. Officers found the loaded .38-caliber Smith and Wesson revolver in the bathroom where Peterson was located during the stand-off. A subsequent analysis revealed Peterson’s DNA on the firearm. Directly adjacent to the firearm, officers found 13.76 grams of methamphetamine, 11.13 grams of cocaine, 38 doses of LSD, $5,826 in cash, and 11 live rounds of .38-caliber ammunition. Because Peterson has prior felony convictions in St. Louis County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Peterson was sentenced yesterday by U.S. District Judge Nancy E. Brasel. Peterson pleaded guilty to one count of illegal possession of a firearm on August 24, 2021.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the Drug Enforcement Administration (DEA), the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.
Assistant U.S. Attorney Joseph S. Teirab prosecuted the case.
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District of Columbia Fire/EMS Employee Pleads Guilty to Bribery in Scheme Involving Undelivered GoodsRead the Press Release
WASHINGTON—Louis “Joey” Mitchell, a former employee of the District of Columbia Fire and Emergency Medical Services Department (FEMS), pleaded guilty today to a federal bribery charge for accepting more than $60,000 in payments from a District of Columbia contractor in exchange for directing purchase agreements and orders to the contractor and then falsely certifying that goods that FEMS had paid for had been delivered.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Daniel W. Lucas, Inspector General for the District of Columbia.
Mitchell, of Capitol Heights, Maryland, pleaded guilty in the U.S. District Court for the District of Columbia. He is to be sentenced on Sept. 16, 2022, by the Honorable Amit P. Mehta. As part of the plea agreement, Mitchell will be required to pay a $61,250 forfeiture money judgment.
Mitchell was a warehouse supply technician at FEMS. In that role, he was responsible for verifying deliveries of goods to the warehouse before the agency would issue payments to the relevant vendors. According to the plea documents, beginning in at least 2016 and continuing through in or about 2020, Mitchell and a FEMS contract administrator engaged in a bribery scheme with a contractor whose company was an approved vendor for supplies.
According to the documents, Mitchell and the contract administrator solicited and received bribes from the contractor on at least seven occasions. In exchange, they directed purchase agreements and purchase orders to the company and confirmed delivery of and payment for goods that the company did not deliver.
As a result of the bribery scheme, FEMS paid the company more than $150,000 for goods that never were delivered. Mitchell personally received at least $61,250 in bribes from the contractor.
Law enforcement opened an investigation into the conduct after FEMS officials discovered billing anomalies and referred the matter to the District of Columbia Office of the Inspector General and the FBI for investigation. Mitchell was arrested on Feb. 10, 2022.
This case is being investigated by FBI’s Washington Field Office and D.C. Office of Inspector General. The case is being prosecuted by the Assistant U.S. Attorneys Molly Gaston and Amanda Vaughn of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
District Man Pleads Guilty to Bias-Related Attack of Family in Northwest WashingtonRead the Press Release
WASHINGTON – A District of Columbia man pleaded guilty today to three counts of simple assault, including one with a hate-bias enhancement, for punching and pushing three adults of Chinese descent as they walked on a street in Northwest Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Patrick Trebat, 39, of Washington, D.C., pleaded guilty in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael O’Keefe to a total of 630 days in jail, with all but 210 days suspended, on the condition that he successfully complete three years of supervised probation.
But for the victims appearing to be from another country, and speaking a language unknown to Trebat, this attack would not have occurred. According to the government’s evidence, the attack took place at about 9:30 p.m. on Aug. 7, 2021. The victims – a man, woman, and their adult son – were walking near the intersection of Wisconsin Avenue NW and Fulton Street NW, speaking in a Chinese dialect. Trebat began shouting profanities. As the victims arrived in the 3700 block of Fulton Street NW, they attempted to cross the street to get away from Trebat. He shouted at them, saying, among other things, “You are not American,” and “Go back to your country.”
Trebat then ran up and attacked the older man from behind, punching him in the back of the head and then pushing him with enough force to cause him to fall to the ground. Trebat then pushed the woman to the ground from behind. The couple’s son attempted to stop the attack, and Trebat punched him in the face.
Officers with the Metropolitan Police Department responded to the scene and all three victims identified Trebat as their attacker. He was arrested.
As a result of the attack, the older man experienced pain in the back of his head and suffered a broken wrist. The woman experienced pain in her arm and had to undergo medical evaluation. Their son suffered a fractured finger. All also sustained cuts and bruises.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim /Witness Advocate Christina Bloodworth.
Finally, they commended the work of Assistant U.S. Attorneys Robert K. Platt and Caroline P. Coates, who investigated and prosecuted the case.
Prosecuting bias-related crimes is critical to keeping our community safe. When one member of a group in the community is the victim of a bias-related crime, all members carry with them a fear that they, too, may be targeted because of who they are. The U.S. Attorney’s Office for the District of Columbia (USAO-DC) is committed to enforcing both federal and local hate and bias-related crime laws.
For more information:https://www.justice.gov/usao-dc/hatebias-related-crimes
Detroit Man Pleads Guilty to Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – A Detroit man pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, Eddie E. Kellom, also known as “Ace,” 23, admitted to selling a quantity of fentanyl to a confidential informant near Coal City, Raleigh County, on May 21, 2021. Kellom also admitted to selling fentanyl on three other occasions. Each of these transactions also occurred in Raleigh County.
Kellom further admitted to possessing approximately 250 grams of fentanyl recovered during a January 11, 2022, traffic stop by law enforcement officers near Putnam County. Kellom admitted that he intended to distribute the fentanyl in and around the Southern District of West Virginia.
Kellom is scheduled to be sentenced on September 9, 2022, and faces up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million.
United States Attorney Will Thompson made the announcement and commended the Federal Bureau of Investigation (FBI), the Beckley/Raleigh County Drug and Violent Crime Unit (BRCDVCU), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for conducting the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
The case is a result of a months-long investigation dubbed “Operation Wolverine Carousel,” an investigation into the wide-spread distribution of heroin and fentanyl in Raleigh and Fayette Counties.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-31.
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Detroit Man Pleads Guilty to Federal Methamphetamine CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Devonte Jamer McItyer, 27, admitted to selling approximately 1 ounce of methamphetamine to a confidential informant in Huntington on October 2, 2019. Following the sale, a Cabell County sheriff’s deputy pulled over a vehicle in which McItyer was a passenger. The deputy found approximately 142 grams of methamphetamine under McItyer’s seat. McItyer admitted to placing the drugs there for later distribution. McItyer further admitted to possessing a loaded Smith & Wesson .40-caliber pistol that the deputy also found in the vehicle.
McItyer is scheduled to be sentenced on September 6, 2022, and faces a mandatory minimum of five years and up to 40 years in prison, as well as up to four years of supervised release and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Southern West Virginia TOC-West Task Force, and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-243.
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DeMasi-Lemon named to national forfeiture committeesRead the Press Release
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld announced today that Danae DeMasi-Lemon has been selected to aid in the development of asset forfeiture policies for federal prosecutors from throughout the country.
DeMasi-Lemon, an Assistant United States Attorney since 2015, has been named to two national asset forfeiture working groups that will develop best practices, review legislative proposals, and mentor new prosecutors.
“Danae is an expert in the field of asset forfeiture, and she has been helping to recover property for crime victims in West Virginia for many years,” said U.S. Attorney Ihlenfeld. “Her expertise was recognized by Department of Justice officials in Washington D.C. and led to her being invited to be a part of these prestigious groups.”
As part of the Asset Forfeiture Working Group, DeMasi-Lemon joins a team that provides guidance to the Department of Justice’s Money Laundering and Asset Recovery Section and the Executive Office for United States Attorneys. Group members aid in the development of new policies and the review of legislative changes, as well as provide instruction for young prosecutors.
With the Firearms Working Group, DeMasi-Lemon will help federal, state, and local agencies develop policies to aid in the forfeiture of firearms involved in federal crimes.
DeMasi-Lemon will continue to work in her home district where she serves as the Asset Forfeiture Coordinator, the Financial Crimes Review Team Coordinator, and represents the United States Attorney’s Office in the district’s Drug Court Program.
Darknet Vendor of Fentanyl-Laced Pills Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Tampa, Florida, man pleaded guilty today to distributing fentanyl on the darknet.
According to court documents, from August 2021 to February 2022, Akshay Ram Kancharla, 26, ran the darknet moniker OnlyTheFinest on darknet marketsToRRez and Dark0de Reborn. He advertised and sold nationwide pressed Oxycodone containing fentanyl, pressed Xanax, pressed Adderall, and THC resin. On ToRRez market, Kancharla sold over $73,096 in controlled substances and completed over 264 transactions by December 21, 2021, which included sales of 7,375 pressed Oxycodone pills. On Dark0de Reborn, which Kancharla joined after ToRRez market went down, he sold over $39,793 in controlled substances, which included rated orders for 3,975 pressed Oxycodone pills sold.
The darknet, also called TOR network or darkweb, is a portion of the Internet that hosts darkmarkets, or hidden commercial websites. A darkmarket operates as a black market, selling or brokering transactions involving legal products as well as drugs, weapons, counterfeit currency, stolen credit card details, forged documents, unlicensed pharmaceuticals, steroids, and other illicit goods.
Between October 2021 and February 2022, law enforcement made controlled purchases from OnlyTheFinest, which included 710 pressed Oxycodone pills containing fentanyl shipped to the Eastern District of Virginia. On February 17, 2022, a search warrant was executed at the defendant’s residence. Therein, agents found marijuana as well as a large quantity of pressed Oxycodone pills weighing approximately 2.38 kilograms resembling those obtained through controlled purchases that tested positive for fentanyl and pressed Xanax bars weighing approximately 437.5 grams. Law enforcement also seized $30,140 in U.S. currency and agents observed the defendant’s cryptocurrency Ethereum wallet on his laptop that contain approximately 2.444 in Bitcoin.
Kancharla is scheduled to be sentenced on August 4. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge Michael S. Nachmanoff accepted the plea.
Assistant U.S. Attorney Bibeane Metsch is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-75.
Cruise Ship Employee from South Florida Charged with Sexually Exploiting Minor He Met on Alaskan VoyageRead the Press Release
Miami, Florida – Federal prosecutors in Fort Pierce, Florida have charged a 38-year-old cruise ship employee from Stuart, Florida with enticing an underage girl he met on the ship into having sex with him and with producing child pornography by recording their sexual interactions.
According to the allegations of the criminal complaint affidavit, Daniel Scott Crow met the victim while he was working aboard a cruise ship. The victim, a 16-year-old girl at the time, was a passenger on the ship, vacationing with her family. After the cruise, Crow remained in contact with the victim and used a messaging application to solicit lewd photographs from her, says the affidavit. It is also alleged that Crow arranged to and later met the victim (who was still under 18) at a hotel, where he engaged in sexual activity with her while recording it. Crow stored the conversations and videos involving the victim on his cellular telephone, according to the charging documents.
Yesterday, Crow made his initial appearance in federal court in Fort Pierce before U.S. Magistrate Judge Shaniek A. Maynard. A detention hearing is scheduled before Judge Maynard for 10:00 a.m. on May 27. If convicted, Crow faces up to life in prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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.
If you have information regarding this case, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
HSI Miami’s Fort Pierce office investigated the case. Assistant United States Attorney Christopher Hudock is prosecuting it.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
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-mj-00048.
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Covington Woman Sentenced for Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that HAYDEE ARMAS SANTANA (“SANTANA”), age 58, of Covington, Louisiana, was sentenced today for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, beginning in 2015, SANTANA filed for, and became eligible for, Social Security Supplemental Security Income (“SSI”) disability payments. SANTANA’s SSI application concealed an Iberia Bank account and her ownership in at least two additional pieces of real property, including one located in Miramar Beach, FL. In total, SANTANA fraudulently obtained over $31,000.00 in Social Security Administration SSI disability benefits.
U.S. District Judge Barry W. Ashe sentenced SANTANA to 5 years probation, Home Detention for 6 months, $31,060.61 in Restitution, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Convicted Felon Who Brandished Glock Pistol on Instagram Video Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Devontae D. Hunter (25, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. Hunter faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Hunter brandished a Glock pistol in a video he had uploaded to his Instagram account on September 11, 2021. Two days later, during a traffic stop, Hunter fled from law enforcement officers on foot and dropped the same Glock pistol he had displayed in the Instagram video, which was configured with an extended magazine and loaded with 20 rounds of ammunition. Hunter had previously been convicted of several felony offenses, including a conviction for possession of a firearm as a convicted felon, robbery, and aggravated battery on a law enforcement officer, and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys David W.A. Chee and Callan Albritton.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Church Finance Manager Sentenced to 4+ Years for Embezzling $261,000Read the Press Release
A Christ the King finance manager who embezzled more than a quarter of a million dollars from the church was sentenced today to more than four years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Former Christ the King Cathedral Church Lubbock employee Nathan Allen Webb, 43, pleaded guilty in February to wire fraud. He was sentenced Thursday to 51 months in federal prison by U.S. District Judge James Wesley Hendrix, who ordered him to pay $261,440.20 in restitution.
According to plea papers, Mr. Webb – the only church employee with access to the church’s PayPal and Venmo accounts – admitted he transferred $261,440.20 in parishioner donations from the church to himself using those platforms. Over the course of 18 months, he made more than 230 unauthorized transfers. He then altered church bank statements to make PayPal and Venmo debits appear as credits, thus concealing his criminal activity from the church finance committee and diocese.
On February 23, 2021, Mr. Webb traveled to Colombia, South America, taking a church laptop with him. While in Colombia, on March 2, he transferred $2,914.07 from the Church’s PayPal account to his personal PayPal account and then to his bank account. The church discovered his fraud and confronted him the following day.
At his sentencing hearing, prosecutors told the judge that following the confrontation, Mr. Webb remained in Colombia, eventually overstaying his visa. The Colombian government ordered him to leave the country, so he purchased a ticket from Cartagena to Fort Lauderdale, where he knew FBI agents would be waiting for him. Instead of boarding the flight, however, he traveled more than 500 miles inland to Pereira. Colombian officials there located and detained him; they continued to hold him based upon an Interpol Red Notice until the U.S. government negotiated his release and returned him to Texas.
Given Mr. Webb’s calculated plot to evade law enforcement, the judge agreed an obstruction of justice enhancement was appropriate.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with substantial assistance from FBI agents stationed in Colombia. Assistant U.S. Attorney Ann Howey prosecuted the case.
Chesterfield Man Pleads Guilty to $1.3 Million Tax FraudRead the Press Release
RICHMOND, Va. – A Chesterfield man pleaded guilty today to failing to pay over to the Internal Revenue Service (IRS) payroll taxes that were deducted from his employees’ paychecks.
According to court documents, from at least 2014 to 2018, David Corey Warren, 47, failed to pay over to the IRS payroll taxes from three different companies owned by his family. Warren served as the Director of Operations for Transitional Adult Residential Center, Transitional Home Care, and Elkridge Gathering Center, companies providing group homes, home care nurses, and daycare center services for mentally disabled adults in Chesterfield and Richmond. As Director of Operations, Warren was responsible for withholding the required Medicare, Social Security, and federal income taxes from his employees’ wages, and paying that amount over to the IRS. Warren also had an obligation to file Form 941s, the Employer’s Quarterly Federal Tax Return, but failed to file accurate returns with respect to each of those businesses.
Warren used a third-party payroll company for various payroll services, including the preparation of Forms 941. Despite receiving accurate Forms 941 from the payroll company, Warren consistently evaded his responsibilities to the IRS by deliberately and significantly underreporting the true value of the employment taxes due by filing Forms 941s that were different than those prepared by the payroll company, not paying over any employment taxes in some quarters, paying over only some of the employment taxes due in some quarters, or failing to report the employment taxes via Form 941 altogether in other quarters.
Over the course of four years, Warren failed to pay over $1.3 million in taxes to the IRS.
Rather than paying the amounts his businesses owed to the IRS, Warren used those withheld monies to fund his and his family’s personal living expenses, which included travel to the Caribbean, golf club memberships, private basketball lessons, luxury clothing, and accessories.
Warren is scheduled to be sentenced on October 13. He faces a maximum penalty of 5 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Carla Jordan-Detamore and Thomas A. Garnett are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-059.
Charlottesville Methamphetamine Traffickers Plead GuiltyRead the Press Release
CHARLOTTESVILLE, Va. – Four drug traffickers pled guilty recently to conspiring to distribute more than 500 grams of methamphetamine throughout the Charlottesville area.
Santo Hidalgo Siguenza, a.k.a. “Chila,” 40, from El Salvador, Francisco Rocha Uribe, 31, from Mexico, Rafael Vasquez Navarette, 26, from El Salvador, and Luis Guillermo Melendez-Henrique, 31, from El Salvador, all pled guilty to their roles in a drug conspiracy to possess and distribute 500 grams or more of methamphetamine. In addition to the drug charge, Siguenza also pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
On September 19, 2020, members of the Jefferson Area Drug Enforcement Task Force (JADE) executed a search warrant at a residence on Chapel Hill Road in Charlottesville and encountered Siguenza in the middle of a drug deal along with a .38 caliber revolver, over a kilogram of virtually pure methamphetamine, and $6,000 in cash. Lab analysis of the methamphetamine found it to be over 98% in purity. While law enforcement was searching the residence, Melendez-Henrique and Navarette arrived in a vehicle which was then searched and found to contain additional methamphetamine. Melendez-Henrique admitted to police that he had picked up a kilogram of methamphetamine from their source in Atlanta, Georgia and brought it back to the Chapel Hill Road residence for redistribution.
At sentencing, Siguenza, Uribe, and Melendez-Henrique face a mandatory minimum of 10 years and up to a maximum of life in prison for the drug charges, including a maximum fine of up to $10,000,000, while co-conspirator Navarette faces up to 20 years in prison and up to a $1,000,000 fine.
United States Attorney Christopher R. Kavanaugh made the announcement.
The Jefferson Area Drug Enforcement Task Force, the Albemarle County Police Department, the Drug Enforcement Administration, the Waynesboro Police Department, Homeland Security Investigations, the Virginia State Police, and the Skyline Drug Trask Force investigated the case.
Assistant U.S. Attorneys Ronald M. Huber and Heather L. Carlton are prosecuting the case.
Cedar Rapids Drug Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids drug dealer with 59 prior adult convictions was sentenced May 24, 2022, to more than 13 years in federal prison.
Kyle Anthony Doolin, age 61, from Cedar Rapids, Iowa, received the prison term after a March 26, 2021 guilty plea to one count of possession with intent to distribute a controlled substance near a protected location after having previously been convicted of a felony drug offense.
Information disclosed at sentencing showed that, on July 24, 2020, officers with the Cedar Rapids Police Department attempted to conduct a traffic stop on Doolin’s vehicle. As an officer attempted to initiate the traffic stop, Doolin drove away and a car chase ensued. Doolin turned into a driveway of a house, struck a wooden fence, and then fled on foot. After a short foot pursuit, Doolin was taken into custody with the assistance of a trained law enforcement K9. In the immediate area around where Doolin was taken into custody, law enforcement recovered several baggies containing a total of over 26 grams of ice methamphetamine. Officers also recovered methamphetamine and heroin from Doolin’s person. Prior to July 24, 2020, Doolin had previously been convicted 59 times, including a prior federal conviction for a drug-related offense.
Doolin was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Doolin was sentenced to 157 months’ imprisonment. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Doolin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00088.
Follow us on Twitter @USAO_NDIA.
California resident charged in human smuggling schemeRead the Press Release
Seattle – A 48-year-old Elk Grove, California man was arrested May 24, 2022, in Lacey, Washington, and was charged by criminal complaint with running a human smuggling scheme over the northern border with Canada and into Washington State, announced U.S. Attorney Nick Brown. Rajinder Pal Singh, aka Jaspal Gill, has been detained since his arrest at the Federal Detention Center at SeaTac.
According to the criminal complaint in the case, Singh and his coconspirators used the ride share app Uber to transport people who had illegally crossed the border to the Seattle area. Those records detail how trips beginning near the border in the early hours of the morning, would be split between different rides. For example, one Uber trip would be from the border to Sea-Tac airport, and then minutes later the second Uber trip would be from a nearby airport hotel to an address in Lacey, Washington, owned by Singh’s spouse. The Lacey house served as a way station for those entering the U.S. illegally. In some instances, Singh arranged for rental cars to drive those who entered the U.S. illegally to destinations in the mid-west. More recently Singh purchased airline tickets so that his smuggling customers could be flown to other parts of the country.
The smuggling scheme has been underway since at least 2018. It slowed during the pandemic when Canada was not admitting non-citizens. However as pandemic restrictions were lifted, the smuggling scheme became active again. In all, the investigation estimates that between July 2018, and April 2022, the 17 Uber accounts tied to this smuggling ring ran up more than $75,000 in charges. The Uber accounts were loaded onto pre-paid telephones to further hide who was running the scheme.
According to the complaint, Singh charged as much as $11,500 per person for his part of the smuggling services. Surveillance video captured Singh purchasing large numbers of Uber gift cards in northern California. Some of the gift cards were later used in connection with Uber trips that originated near the Canadian border.
In addition to the arrest in Lacey, law enforcement searched Singh’s Elk Grove, California, home. They found about $30,000 in cash as well as counterfeit identity documents.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Conspiracy to transport and harbor illegal aliens for profit is punishable by up to ten years in prison and a $250,000 fine.
The investigation is being led by Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Joe Silvio.
gill_complaint.pdfCalifornia Real Estate Developer Faces Federal Charges for Using Stolen Identities to Obtain COVID-Relief Program FundsRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a California real estate developer with using stolen identities to fraudulently obtain more than $1.5 million in loans intended to help small businesses during the COVID-19 pandemic.
Alfred E. Nevis, 52, of Arroyo Grande, California has been charged with wire fraud, aggravated identity theft, and money laundering.
According to court documents, from April 1, 2020, through at least August 6, 2020, Nevis is alleged to have used the identities of multiple individuals known to him—including current and former employees, business associates, and their spouses—to illegally obtain Economic Injury Disaster Loans (EIDLs) administered by the Small Business Administration (SBA). The EIDL program was one of several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). It enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
To facilitate his scheme, Nevis used the stolen identities to register straw corporations, obtain Employer Identification Numbers (EINs) from the IRS, and submit loan applications to SBA on behalf of the newly-registered corporations. In one instance, Nevis claimed a straw corporation called Isley Farms, registered in Oregon, had 12 employees and generated more than $725,000 in revenue in a 12-month period ending in January 2020.
Between April 1, 2020 and July 23, 2020, Nevis submitted at least 12 EIDL applications using the identities of at least eight individuals without their knowledge or permission. Together, these applications generated nearly $1.4 million in fraudulent loan disbursements. SBA approved one final EIDL for $150,000 in August 2020, bringing Nevis’ total fraud proceeds to more than $1.5 million. Nevis is further alleged to have laundered at least $160,000 of his ill-gotten gains.
Nevis made his initial appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and released pending a 3-day jury trial scheduled to begin on August 2.
Nevis faces a maximum sentence of 32 years in prison, fines of up to $500,000, and 3 years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the FDIC Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law, enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
California Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – STEPHEN LUONG, age 62, a resident of Oakland, California, was sentenced on May 25, 2022 by U.S. District Judge Jane Triche Milazzo to one-hundred twenty (120) months imprisonment, five (5) years of supervised release, and $200.00 in mandatory special assessment fees after pleading guilty to two (2) counts of a twenty-four count superseding indictment that charged him with Conspiracy to Distribute and Possess with Intent to Distribute One Thousand Kilograms or More of Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846, and Possession with Intent to Distribute One Hundred Kilograms or More of Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, in July 2019, a Jefferson Parish Sheriff’s Office Narcotics Division Agent received information regarding a large-scale marijuana distribution ring in the metro area. Additional investigation by agents revealed that on July 26, 2019, LUONG rented a storage facility in Metairie, Louisiana which he used to store marijuana and proceeds from the sale of marijuana. In September of 2019, agents conducting surveillance at the facility observed LUONG deposit a bag in one of the storage units. A subsequent traffic stop of LUONG after he exited the facility resulted in the seizure of $395,101.00 in cash. In a post-arrest statement, LUONG admitted that he traveled by air to various states to transport money. As agents continued their investigation, they learned that between June 2019 and August 2019, LUONG routinely shipped hundreds of pounds of marijuana from Oakland, California to the Eastern District of Louisiana, then traveled to New Orleans to obtain the proceeds of the sold marijuana and return to Oakland.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Office of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office. The prosecution was handled by former Assistant United States Attorney Mobayonle Osundare and Assistant United States Attorney André Jones.
California Couple Charged with Defrauding Paycheck Protection ProgramRead the Press Release
HONOLULU – A federal grand jury returned a four-count indictment today against Christopher A. Mazzei, age 44, and Erin V. Mazzei, age 41, of Arroyo Grande, California. The indictment charges the defendants with wire fraud, money laundering, and conspiracy in connection with a scheme to defraud the government of forgivable Paycheck Protection Program (PPP) loan funds intended for COVID-19-related relief.
The indictment alleges that the Christopher and Erin Mazzei, husband and wife, submitted applications for PPP funds to a Hawaii financial institution and two other financial institutions on behalf of three purported businesses, each time utilizing interstate wires. For each application, the Mazzeis allegedly created false Internal Revenue Service (IRS) tax returns and payroll records, which they presented as authentic and submitted to the banks to support their claims for PPP loan funds. According to the indictment, as a result of the false and fraudulent applications, the Mazzeis received $1,365,000 in PPP loan funds, which they then used for personal purposes, such as to purchase multiple sport utility vehicles and a home in Kapolei, Hawaii, among other things.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
“Our entire community suffers when federal funds appropriated to provide critical pandemic relief are illegally diverted for personal gain,” said U.S. Attorney Clare E. Connors. “We will pursue and prosecute those who defraud programs that provide a financial lifeline to struggling small businesses in Hawaii and across the United States during the COVID-19 pandemic.”
“As the country continues to battle the effects of the COVID-19 pandemic, these indictments are an unfortunate reminder that there are always those who will stoop low to unjustly enrich themselves, even at the cost of those suffering around them,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial fraud against government assistance programs is not victimless, as it directly steals resources from those who truly need it. Today’s court actions serve notice that IRS:CI will continue to protect our communities by investigating those who choose to commit these crimes.”
“The allegations described in this indictment represent significant abuse of the Paycheck Protection Program that was created to assist small businesses that were suffering the economic hardships caused by the pandemic," said Special Agent in Charge Jeffrey D. Pittano, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG will continue to work with our law enforcement partners in the District of Hawaii, and elsewhere throughout the country, to investigate those who seek to take advantage of Federal relief programs and threaten to undermine the integrity of our Nation's financial institutions.”
“Today’s indictment sends a clear message that those who exploit and defraud financial institutions and the government’s pandemic relief funds will be brought to justice,” said Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection.
A federal indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted jointly by IRS Criminal Investigation, the FDIC Office of Inspector General, and the Office of Inspector General for the Board of Governors of the Federal Reserve System, with assistance from the Small Business Administration Office of Inspector General and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Gregg Paris Yates is handling the prosecution.
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.
Concord Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
CONCORD - Jerry S. Roberts, Jr., 37, of Concord, pleaded guilty in federal court on Wednesday to sexual exploitation of a minor, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on July 15, 2019, the Concord Police arrested Roberts, a convicted sex offender, following his assault of another individual. The victim of the assault, advised that Roberts and a minor (Child Victim A) had left their personal property in the victim’s apartment. Pursuant to a search warrant, detectives searched the bags and recovered assorted electronic media, including a digital camera. Detectives obtained additional search warrants for the electronic media. From the digital camera, detectives identified two videos that Roberts filmed depicting Child Victim A engaging in sexually explicit conduct.
Roberts is scheduled to be sentenced on August 30, 2022.
“It is a paramount obligation of law enforcement to protect children from sexual exploitation crimes,” said U.S. Attorney Young. “Thus, my office is committed to working closely with our law enforcement partners to identify and prosecute the criminals who prey on young children.”
This matter was investigated by the Concord Police Department, with assistance from Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Cam T. Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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