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Friday 20 May 2022
Navajo man arraigned on child sex abuse chargesRead the Press Release
ALBUQUERQUE, N.M. – Christian Apachito, 27, of TóHajiilee, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court today on a two-count indictment charging him with one count of aggravated sexual abuse of a child with force or threat and one count of sexual abuse of a minor. Apachito will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Apachito on April 28. According to the indictment and other court records, on Nov. 11, 2020, Apachito allegedly engaged in a sexual act with a child, identified in court records as Jane Doe, by using force against her. At the time of the abuse, Jane Doe had attained the age of 12 but was not yet 16. The alleged crime took place on the Navajo Nation Crownpoint Reservation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Apachito faces up to 15 years in prison for sexual abuse of a minor and a minimum of 30 years and up to life in prison for aggravated sexual abuse of a child with force or threat.
The FBI investigated this case with assistance from the Crownpoint Navajo Police Department. Assistant United States Attorney Mark Pfizenmayer 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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Missouri Man Charged with Murdering a Woman Whose Body Was Discovered in Mayes CountyRead the Press Release
A federal grand jury this week indicted a Missouri man for the first degree murder of a woman whose body was found in rural Mayes County in 2020, announced U.S. Attorney Clint Johnson.
In a fourth superseding indictment, Tre Robert Allen Ackerson, 28, was charged with first degree murder in Indian Country. Prosecutors allege that he took part in kidnapping Jolene Walker Campbell, murdered her, then conspired with others to tamper with witnesses in an effort to obstruct a federal investigation into the murder.
The indictment charges Breanna Lynn Sloan, 22, and Ackerson with kidnapping Ms. Walker Campbell between July 4 and July 5, 2020, which resulted in her death.
The victim’s body was found in a remote field in Mayes County on July 15, 2020. Prosecutors state that the victim was robbed and kidnapped in Missouri, driven into the State of Oklahoma, and then through the boundaries of the Cherokee Nation into the Muscogee Nation reservation, where she was murdered by Ackerson. The medical examiner ruled the cause of death as a homicide. At this time, details of the homicide will not be released.
Ackerson, Sloan and Lane Ryan Bronson, 29, were also charged with conspiracy to tamper with a witness, victim, and informant from July 5, 2020, through the date of the fourth superseding indictment.
Additionally, Ackerson, Sloan, Bronson, Jacob Ryan Scribner, 34, and Kimberly Kay Grissom, 47, all of the Joplin, Missouri area, were charged for various witness tampering and retaliation incidents. The defendants, along with others, used physical force or threatened the use of physical force against four witnesses in separate incidents. Various assaults on witnesses took place that included witnesses being kidnapped, restrained with zipties, blindfolded or having their eyes duct taped shut, being shot at, and being beaten. The acts were committed to prevent the witnesses from testifying in the kidnapping and murder case or as retaliation for communicating to law enforcement. Sloan also allegedly offered two of the witnesses $1,000 in exchange for recanting and changing their testimony against Ackerson.
Ackerson and Bronson are brothers, and Grissom is their mother. Jacob Scribner is the cousin of Ackerson and Bronson.
In April and May, other defendants named in the third superseding indictment admitted to taking part in the witness tampering incidents in various guilty pleas. They include Morgan Lee Bowman, 26; Megan Louise Detherage, 28; Sarah Michelle Humbard, 25; David William Morris, 34; and Chloe Louise Stith, 21.
The Justice Department is committed to seeking justice on behalf of missing and murdered Indigenous people. This fourth superseding indictment is the result of a nearly two year-long FBI-led investigation into the murder of Ms. Walker Campbell, a citizen of the Osage Nation.
Law Enforcement supporting the FBI during investigation include the Muscogee Nation Lighthorse Police Department, Mayes County Sheriff’s Office, and Joplin Police Department. Assistant U.S. Attorneys Justin G. Bish and George Jiang are prosecuting the case.
An indictment is merely an allegation and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Pleads Guilty to Aiding and Abetting CarjackingRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to aiding and abetting a violent carjacking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 15, 2021, Marion Quintel Ware, 19, used a firearm to carjack a victim. Ware’s accomplice struck the victim in the head with a heavy metallic object, splitting the victim’s forehead open. The victim escaped from his vehicle and Ware and his accomplice drove off with the victim’s wallet and cell phone still in the vehicle. Two weeks later, officers with the Minneapolis Police Department observed Ware driving the stolen vehicle. When officers tried to conduct a traffic stop, Ware fled from them, crashed the vehicle into a median, and then continued to flee on foot. Officers apprehended Ware after a brief foot chase. Officers also recovered a loaded Polymer80 semiautomatic handgun with an extended magazine, which Ware admitted to tossing while running away from the officers.
Ware pleaded guilty yesterday before U.S. District Judge Ann D. Montgomery to one count of aiding and abetting carjacking. A sentencing date has not been set.
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 FBI and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney Harry M. Jacobs.
Military Contractor Indicted for $15 Million Bid-Rigging Scheme and Conspiracy to Defraud the United StatesRead the Press Release
A federal grand jury in the Eastern District of Texas returned an indictment charging a military contractor for rigging bids on public military contracts in Texas and Michigan and defrauding the United States.
According to the indictment, from at least as early as May 2013 through at least April 2018, Aaron Stephens, 52, formed agreements with multiple co-conspirators to rig bids on certain government contracts in order to give the false impression of competition and secure government payments, and to defraud the United States. As a part of two different schemes, Stephens and his co-conspirators allegedly rigged eight military contracts and received more than $15 million from the government for those contracts. The contracts included work performed for the Red River Army Depot in Texarkana, Texas; the U.S. Army Contracting Command in Warren, Michigan; and the Sierra Army Depot in Herlong, California.
“U.S. taxpayers deserve to know that the government contracting process is not subverted through collusion,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Bid rigging undermines the competitive process, wastes taxpayer dollars and deprives businesses that follow the rules of fair competition. Investigating and prosecuting this case and others involving government contracting is a top priority for the Department of Justice and all members of the Procurement Collusion Strike Force.”
“Protecting U.S. tax dollars and the government contracting process is very important,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “The government provides significant economic opportunities for businesses, and the bidding process must be fair for qualified applicants. Any action taken to thwart this fair process will be investigated and prosecuted.”
“This indictment reflects the unrelenting approach and tenacity we employ daily in pursuing individuals who dare to attempt to defraud the federal government and the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Field Office. “When it comes to government contracting and purchasing, the superbly skilled and highly-trained special agents in our fraud unit use their finely honed investigation skills to combat and uncover fraud, deception, bribery and other criminal acts.”
“Bid rigging subverts the government contracting process and defrauds the American taxpayer,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners are committed to investigating those who conspire to undermine the principles of fair and free competition.”
Stephens was charged in the U.S. District Court for the Eastern District of Texas with one count of bid rigging in violation of the Sherman Act and two counts of conspiracy to defraud the United States.
The maximum penalty for conspiracy to restrain trade under the Sherman Act is 10 years in prison and a criminal fine of $ 1 million. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The maximum penalty for conspiracy to defraud the United States is five years in prison and a fine of twice the amount of the gain or loss associated with the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mifflintown Woman Charged with Possessing Fake Covid-19 Vaccine CardRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amy B. Leister, age 55, of Mifflintown, Pennsylvania, was charged on May 18, 2022, by criminal Information with knowingly possessing and making a fake COVID-19 vaccine card.
According to United States Attorney John C. Gurganus, the information charges Leister with knowingly possessing and making an unauthorized COVID-19 vaccine card, specifically a fake COVID-19 Vaccination Record Card, purportedly issued by the United States Department of Health and Human Services, Center for Disease Control to record medical information about vaccines purportedly received, and bearing the insignia of the Center for Disease Control.
The case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The maximum penalty under federal law for this offense is 6 months’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Mexico State Amber Alert Coordinators Collaborate to Enhance Efforts in Recovering Missing and Abducted Children in MexicoRead the Press Release
Merida, Mexico -- AMBER Alert coordinators throughout various states of Mexico gathered in a three-day conference in Merida, Yucatan to discuss and provide updates on advances in implementation of the AMBER Alert system. The U.S. Department of Justice’s Office of Prosecutorial Development, Assistance and Training (OPDAT) through funding from the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), organized this conference in order to promote and enhance AMBER Alert utilization and coordination throughout Mexico and further the goals of the U.S.-Mexico Bicentennial Framework on Security. Subject matter experts from the U.S. Marshals Service, the Federal Bureau of Investigations (FBI), and the International Centre for Missing and Exploited Children participated in this event.
The AMBER Alert system originated in the United States in 1996 to quickly disseminate information about missing and abducted children. In 2012, OPDAT and INL partnered with the government of Mexico to launch the same system in Mexico. Mexico is the first country in Latin America to adopt the AMBER Alert system. Since its initiation the alert is credited with recovering 966 children in the country.
This conference gave Mexico’s AMBER Alert Coordinators the opportunity to compare successes and challenges in their implementation of AMBER Alert programs, promote greater coordination amongst states and the federal program, and share best practices. A Mexican DNA expert detailed forensic DNA analysis can further missing person’s investigations. Likewise, technology experts from companies explained how technology social media platforms can be leveraged to quickly share information about missing children. Participants created an action plan to increase coordination and submitted recommendations for best practices to be implemented in their respective states, and possibly incorporated into formal protocols.
The conference included remarks from Ambassador Salazar and Dorothy Ngutter, the US Consul General based in Merida, Yucatan. “We have seen that the AMBER Alert network has been of great importance in reuniting families. In turn, it has fostered coordination between the two countries and allows us to advance our security goals, especially by contributing to the tranquility of our nations,” said Ambassador Salazar in his opening remarks. “The work you do through AMBER Alert is crucial to acting quickly and in a coordinated manner to locate missing children.”
The goal of this conference was to continue to institutionalize communication, cooperation, and coordination in cases involving missing children to further the protection of vulnerable populations and contribute to our shared security. OPDAT will continue to support AMBER Alert usage and offer capacity building opportunities in Mexico.
For more information visit: www.alertaamber.gob.mx
Mexican National Sentenced to 11 Years in Federal Prison for Drug TraffickingRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Ignacio Godinez-Mancilla, age 30, of Mexico, was sentenced to 11 years in federal prison for possession of methamphetamine with intent to distribute.
According to the plea agreement, on January 15, 2019, detectives with the North Metro Drug Task Force arranged for an order of six pounds of methamphetamine and ten ounces of heroin from the defendant. The defendant arrived at a location in Aurora arranged by detectives with the requested drugs, as well as over $1500 in cash, where he was placed under arrest. After being granted bond in the state case arising from these events, the defendant failed to appear for court proceedings and remained in warrant status until his apprehension by federal authorities in this case over two years later.
“We appreciate the work our partners are doing at the local, state and federal levels to take drug traffickers like this defendant off the streets,” said U.S Attorney Cole Finegan. “We cannot and will not allow these illicit drugs to continue to flood our communities. They are dangerous and can be deadly.”
"Drug trafficking cases remain a high priority for the FBI. In this case, the defendant was prepared to sell methamphetamine and fled to avoid prosecution. This lengthy sentence is a result of the common goals and valuable partnerships the FBI has with local and federal law enforcement agencies to stem the distribution of illegal drugs and make our communities safer,” said FBI Denver Special Agent in Charge Michael H. Schneider.
"While we are in the midst of a prolific nationwide drug crisis and fentanyl is the leading cause of overdose deaths, we serve well to remember that methamphetamine and heroin are still readily available and deadly drugs," said DEA Denver Field Division Special Agent in Charge Brian Besser. "This sentencing should be a clear message to those that push their poison in our communities that DEA and our law enforcement partners will continue to aggressively investigate and prosecute anyone who traffics illicit drugs in the Rocky Mountain Region.”
“The investigation of drug traffickers is critical in our fight to reduce the surging violent crime in communities throughout Colorado,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “The men and women of HSI Denver are working tirelessly with our law enforcement partners and will remain laser focused in our joint efforts to bring individuals like Godinez-Mancilla to justice and stop the flow of illegal drugs.”
“Our priority is to identify and remove noncitizens who pose a threat to public safety in Colorado like Godinez-Mancilla,” said Tracey Cammorto, Acting Field Office Director, ERO Denver. “We are thankful our federal law enforcement partners and the U.S. Attorney’s Office continue to work with us in the interest of public safety to stop the flow of illegal drugs in our community.”
Judge Daniel D. Domenico sentenced the defendant on May 11, 2022, to 11 years in prison, followed by five years of supervised release.
This case was investigated by the North Metro Drug Task Force and the Drug Enforcement Administration. The Federal Bureau of Investigation, Homeland Security Investigations, and Immigration and Customs Enforcement, Enforcement and Removal Operations assisted in the prosecution of the case, which was handled by Assistant United States Attorney Cyrus Y. Chung.
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.
Case number 21-cr-340-DDD
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Maryland Man Sentenced to over Seven Years in Federal Prison for Covid-19, Unemployment, Insurance, and Aggravated Identity Theft SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Idowu Raji, age 40, of Baltimore County, Maryland, to 94 months in federal prison, followed by two years of supervised release, for conspiracy to commit access device fraud, access device fraud, and aggravated identity theft in relation to multiple financial schemes. The Court also ordered Raji to pay $1,793,472 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Mark Lewis of the U.S. Department of State, Diplomatic Security Service (DSS), Washington Field Office; Acting Special Agent in Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service– Washington Division.
According to his guilty plea, in 2020, Raji conspired with multiple other individuals to defraud, use, and traffic in unauthorized access devices and obtain more than $900,000 in unemployment insurance and other COVID-19 related benefits. Moreover, from October 2018 to November 2020, Raji conspired with multiple individuals, including Adewumi Abioye, age 35, of Randallstown, Maryland and Lukman Salam, age 37, of Delaware, to defraud multiple businesses, individuals, and financial institutions to illegally obtain more than $750,000.
In furtherance of the access device conspiracy, Raji admitted arranging for the delivery of fraudulent unemployment insurance cards to his co-conspirators, providing instructions on the use of the cards, and obtaining a portion of the fraudulently obtained proceeds. In total, Raji admitted that he was involved in fraudulent unemployment claims that used the identities of more than 50 real people and caused more than $900,000 in losses to state and the federal governments.
Raji admitted using an encrypted text messaging application to carry out his crimes, including to coordinate the use of unemployment insurance and COVID-19 related benefits, obtain and transfer the personal identifying information of real individuals, and receive unemployment debit cards that were mailed to addresses in Maryland and loaded with fraudulently obtained benefits. Raji also directed the use of the fraudulently obtained debit cards to engage in point of sale and ATM transactions. He also used the state and federal government funds intended for disaster relief for his own benefit.
As part of his wire fraud conspiracy, co-conspirators Salam and Abioye used fake identification documents to open bank accounts, which Raji then coordinated the use of the accounts to receive fraud proceeds. For example, in November 2019, Salam opened a bank account at a financial institution using a fake passport with the alias “Chris Hobert.” In December 2019, the email account of a supervisor at a victim business was hacked, and an email was sent to the victim business that fraudulently claimed that another business had changed its payment instructions. As a result, the victim business sent a $33,200 wire to a fraudulent account opened by Salam. Raji worked with his co-conspirators to move the funds to another account registered under the alias “Michael Stone,” and to eventually gain access to the fraud proceeds.
Further, in July 2020, Raji fraudulently applied for a $31,200 Paycheck Protection Program loan on behalf of a business, Yours Truly LLC. Raji claimed that his business had more than $132,000 of gross revenue in the prior year when, in fact, it did not. Moreover, Raji did not spend the proceeds of the loan on employee salaries and other appropriate expenses required by the PPP loan.
As stated in his plea agreement, when Raji was arrested by federal agents in November 2020, he made multiple false statements to agents, including that he had never been involved in business email compromise schemes, wire fraud, or unemployment insurance fraud. Raji also falsely claimed that he never used Yours Truly LLC when he had received federal loans through the entity less than six months before the interview.
In April and May 2022 co-defendants Abioye and Salam were sentenced to 27 months and 30 months in federal prison; respectively for conspiracy to commit wire fraud. Hameed Adesokan, Olatunde Vincent, Akolade Ojo, and Damilola Lawal will be sentenced later this year in related cases.
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 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
United States Attorney Erek L. Barron commended HSI, DSS, the U.S. Department of Labor-OIG, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md.
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Louisville Doctor Charged with Murder-For-HireRead the Press Release
Louisville, KY – A federal criminal complaint and arrest warrant were issued yesterday charging a Louisville medical doctor with use of interstate commerce facilities in the commission of Murder-for-Hire.
According to court records, on May 15, 2022, Stephanie Russell, 52, contacted someone she believed she was hiring to murder her ex-husband. The individual she contacted to murder her ex-husband was an FBI Undercover Employee (UCE). Russell ultimately agreed to pay $7,000 to the UCE in exchange for murdering her ex-husband. On May 18, 2022, Russell placed $3,500 outside of her medical office in a drop box as half of the payment. She agreed to pay the other half once the murder took place. The FBI arrested Russell on May 19, 2022.
Russell made her initial appearance before a U.S Magistrate Judge in the U.S. District Court for the Western District of Kentucky on Friday, May 20, 2022, at 11:45 a.m. Russell is scheduled for preliminary and detention hearings in the U.S. Gene Snyder Courthouse on Tuesday, May 24, 2022, at 11:00 a.m.
If convicted at trial, she faces a maximum term of up to 10 years in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Federal Bureau of Investigation and the Louisville Metropolitan Police Department are investigating the case.
The case is being prosecuted by Assistant U. S. Attorney Marisa Ford.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
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Lawrence Man Arrested for Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man was arrested yesterday on fentanyl distribution charges.
Rafael Sierra-Baez, 42, was charged with five counts of distribution and possession with intent to distribute fentanyl. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Marianne B. Bowler, Sierra-Baez was detained pending a detention hearing scheduled for May 25, 2022.
According to the charging documents, on five separate occasions between Feb. 22, 2022 and May 4, 2022, Sierra-Baez sold suspected fentanyl to a law enforcement cooperating witness in Methuen.
The charge of distribution and possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kingman Man Convicted for Possessing Firearms and Ammunition as a Convicted FelonRead the Press Release
PHOENIX, Ariz. – Last week, a federal jury found Todd Gehman Howard, 60, of Kingman, Arizona, guilty of being a convicted felon in possession of firearms and ammunition. Sentencing is scheduled for August 1, 2022, before U.S. District Judge Susan Brnovich.
On October 11, 2019, FBI agents executed a search warrant at Howard’s residence in Kingman, Arizona. Inside the residence, agents discovered 23 firearms, including 21 in a safe in Howard’s bedroom closet, and approximately 7,600 rounds of ammunition. Howard’s firearms included various types of revolvers, shotguns, and semi-automatic rifles. One of the guns in the safe was a Privately Made Firearm (PMF), FAL-type .308 caliber semiautomatic rifle, sometimes referred to as a “ghost gun.” Evidence presented at trial showed the receiver of that firearm was forged in Australia, and that the completed firearm had traveled from the State of Washington to Arizona.
“The Department of Justice takes seriously the prohibited possession of firearms. This Office will continue to prosecute such cases vigorously, especially cases such as this that involve federal felons possessing large quantities of firearms and ammunition,” said United States Attorney Gary Restaino.
The FBI conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joseph Koehler and William Rubens, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-8033-PCT-SMB
RELEASE NUMBER: 2022-077_Howard# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Justice Department and EPA Reach Agreement with Potentially Responsible Parties to Clean up the Tremont City Barrel Fill Superfund Site in German Township, OhioRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) announced a proposed consent decree that requires seven potentially responsible parties (PRPs) to clean up contamination at the Tremont City Barrel Fill Superfund site in German Township, Ohio, at an estimated cost of $27.7 million.
The complaint was filed simultaneously with the proposed consent decree in the District Court for the Southern District of Ohio. The complaint alleges that the PRPs, Chemical Waste Management Inc., Franklin International Inc., International Paper Co., The Procter & Gamble Co., PPG Industries Inc., Strebor Inc. and Worthington Cylinder Corp. are liable for the cleanup because they are either former owners and operators of the barrel fill or sent wastes to the site for disposal.
“Today’s settlement requires those responsible for the contamination to clean up the Tremont Barrel Fill site,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The cleanup provided by this agreement will benefit the public health and surrounding community.”
“Today’s agreement is a huge win for the community and sets the stage for this important cleanup to finally begin,” said EPA Region 5 Administrator Debra Shore. “This is a critical step toward the remediation of the site and will minimize risks to the community and the environment.”
The Tremont City Barrel Fill site is a closed industrial waste landfill that covers 8.5 acres. From 1976 until 1979, when operations ceased, about 51,500 drums and 300,000 gallons of industrial liquid waste were disposed in waste cells at the site.
The proposed consent decree requires the PRPs to excavate and characterize drums and uncontained waste in the barrel fill. All liquid waste and nearly 1,000 drums containing hazardous substances, known as still-bottom waste, will be disposed off-site. The remaining hazardous and non-hazardous solid waste will be disposed on-site in a newly constructed hazardous waste landfill.
The consent decree is subject to a 30-day public comment period and final court approval and will be available for public review on the DOJ website.
More information about the site is available on the Tremont City Barrel Fill website.
Justice Department Statement on Ruling in Louisiana v. CDCRead the Press Release
The Department of Justice today released the following statement from spokesman Anthony Coley:
“The Centers for Disease Control and Prevention (CDC) invoked its authority under Title 42 due to the unprecedented public-health dangers caused by the COVID-19 pandemic. CDC has now determined, in its expert opinion, that continued reliance on this authority is no longer warranted in light of the current public-health circumstances. That decision was a lawful exercise of CDC’s authority.
“The Department of Justice intends to appeal the court’s decision in Louisiana et al. v. CDC et al.”
Justice Department Releases Guide to State Voting Rules That Apply After Criminal ConvictionsRead the Press Release
The Justice Department today announced the release of a guide to the state voting rules that apply after criminal convictions. This document is designed to help citizens who meet the age and residency requirements to understand how the state-by-state rules about voting after a criminal conviction could apply to them. Who keeps the right to vote and who can regain that right — and how — differs from state to state, and it depends on state law. This guide walks readers through a series of questions to help them understand how each state’s laws work. And it gives information about how to reach officials in a particular state if someone wants to register to vote or if they have additional questions.
“The right to vote is the foundation of American democracy and it is critical for returning citizens to have reliable information concerning what voting rules apply after a criminal conviction,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The right to vote affirms returning citizens’ membership and belonging in the broader community. And it helps to ensure that the communities to which they belong have a meaningful opportunity to elect representatives of their choosing.”
The department originally gathered the information here in response to Section 9 of Executive Order 14019 on Promoting Access to Voting, which was issued by President Biden on March 7, 2021. Among other things, the executive order directed the Attorney General, as part of the reentry process for citizens in federal custody, to “provide educational materials related to voter registration.”
This information will be available through justice.gov/voting.
Complaints about discriminatory voting practices may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov or by telephone at 1-800-253-3931.
Justice Department Files Proposed Settlement in Chambers County, Alabama School Desegregation CaseRead the Press Release
The Department of Justice, together with the Chambers County Board of Education and private plaintiffs represented by the NAACP Legal Defense Fund, filed a proposed consent order designed to provide equal educational opportunities for all students and allow the district to fulfill its obligations in a longstanding school desegregation case. The proposed consent order, which requires approval by the U.S. District Court for the Middle District of Alabama, would require the school district to build a new, consolidated high school; create a Science, Technology, Engineering, Arts and Mathematics (STEAM) magnet school; appoint a Desegregation Advisory Committee; and take other corrective action.
“This proposed consent order reinforces the Civil Rights Division’s unwavering commitment to ensuring that all students receive the equal educational opportunities to which they are entitled regardless of their race or color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This week marks 68 years since the Supreme Court declared in Brown v. Board of Education that ‘separate but equal has no place’ in our society, yet too many students find themselves in racially segregated schools. We will continue working to deliver on the unmet promises of Brown v. Board for the students of the Chambers County School District and for others across the country.”
“Education is the cornerstone of American society,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “My office fully supports the Civil Rights Division’s efforts to ensure that equal educational opportunities are available to all students, and I am pleased that this case is close to a final resolution.”
The proposed consent order is part of a desegregation case monitored and enforced by the United States. In reviewing the district’s compliance with the previous court orders in this case, the United States found that the district failed to meet earlier commitments to build a single, consolidated high school and maintained racially identifiable Black schools with fewer academic and extracurricular offerings than most of the other district schools. If approved, the order will require the district to, among other steps:
- Build and operate a single, consolidated high school on a neutral site to serve all district students in grades nine through twelve;
- Establish a STEAM Academy for all district kindergarteners through eighth graders and later renovate an existing facility to accommodate the magnet school;
- Make information about academic course offerings, extracurricular activities, and special programs, including gifted and talented programming, available on the district’s website and provide that information directly to parents;
- Ensure non-discrimination on the basis of race in its discipline practices by engaging technical assistance and revising the code of conduct;
- Improve its practices for recruiting and retaining diverse faculty and staff at each school; and
- Work with a newly-created and diverse Desegregation Advisory Committee to mitigate any desegregation-related issues that may arise.
The order would also require regular reporting to the court, the Justice Department and private plaintiffs. The court would retain jurisdiction over the consent order during its implementation, and the Justice Department would monitor the district’s compliance with the consent order.
This week marked the 68th anniversary of the U.S. Supreme Court’s historic ruling in Brown v. Board of Education. The Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can build a foundation of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Files Proposed Settlement in Chambers County, Alabama School Desegregation CaseRead the Press Release
WASHINGTON – The Department of Justice, together with the Chambers County Board of Education and private plaintiffs represented by the NAACP Legal Defense Fund, filed a proposed consent order designed to provide equal educational opportunities for all students and allow the district to fulfill its obligations in a longstanding school desegregation case. The proposed consent order, which requires approval by the U.S. District Court for the Middle District of Alabama, would require the school district to build a new, consolidated high school; create a Science, Technology, Engineering, Arts, and Mathematics (STEAM) magnet school; appoint a Desegregation Advisory Committee; and take other corrective action.
“This proposed consent order reinforces the Civil Rights Division’s unwavering commitment to ensuring that all students receive the equal educational opportunities to which they are entitled regardless of their race or color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This week marks 68 years since the Supreme Court declared in Brown v. Board of Education that ‘separate but equal has no place’ in our society, yet too many students find themselves in racially segregated schools. We will continue working to deliver on the unmet promises of Brown v. Board for the students of the Chambers County School District and for others across the country.”
“Education is the cornerstone of American society,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “My office fully supports the Civil Rights Division’s efforts to ensure that equal educational opportunities are available to all students, and I am pleased that this case is close to a final resolution.”
The proposed consent order is part of a desegregation case monitored and enforced by the United States. In reviewing the district’s compliance with the previous court orders in this case, the United States found that the district failed to meet earlier commitments to build a single, consolidated high school and maintained racially identifiable Black schools with fewer academic and extracurricular offerings than most of the other district schools. If approved, the order will require the district to, among other steps:
- Build and operate a single, consolidated high school on a neutral site to serve all district students in grades nine through twelve;
- Establish a STEAM Academy for all district kindergarteners through eighth graders and later renovate an existing facility to accommodate the magnet school;
- Make information about academic course offerings, extracurricular activities, and special programs, including gifted and talented programming, available on the district’s website and provide that information directly to parents;
- Ensure non-discrimination on the basis of race in its discipline practices by engaging technical assistance and revising the code of conduct;
- Improve its practices for recruiting and retaining diverse faculty and staff at each school; and
- Work with a newly-created and diverse Desegregation Advisory Committee to mitigate any desegregation-related issues that may arise.
The order would also require regular reporting to the court, the Justice Department, and private plaintiffs. The court would retain jurisdiction over the consent order during its implementation, and the Justice Department would monitor the district’s compliance with the consent order.
This week marked the 68th anniversary of the U.S. Supreme Court’s historic ruling in Brown v. Board of Education. The Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can build a foundation of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Announces New Initiatives to Address and Prevent Hate Crimes and Hate IncidentsRead the Press Release
On the one-year anniversary of enactment of the COVID-19 Hate Crimes Act, the Department of Justice today announced a series of actions to deter and confront hate crimes and other bias-related incidents, including:
- Issuing new guidance with the Department of Health and Human Services (HHS) aimed at raising awareness of hate crimes during the COVID-19 pandemic;
- Releasing grant solicitations for programs to create state-run hate crime reporting hotlines and to support community-based approaches to prevent and address hate crimes; and
- Hiring the Department’s inaugural Language Access Coordinator.
Attorney General Merrick B. Garland, Deputy Attorney Lisa O. Monaco, Health and Human Services Deputy Secretary Andrea Palm, and Associate Attorney General Vanita Gupta announced these new initiatives at an event at the Justice Department commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat hate crimes and hate incidents and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts. They were joined by family members of Khalid Jabara and Heather Heyer, members of Congress; Black, Asian American, Native Hawaiian, and Pacific Islander community-based organizations; civil rights organizations; and law enforcement leaders.
“Throughout our history, and to this day, hate crimes have a singular impact because of the terror and fear they inflict on entire communities,” said Attorney General Merrick B. Garland. “No one in this country should have to fear the threat of hate fueled violence. The Justice Department will continue to use every resource at its disposal to confront unlawful acts of hate, and to hold accountable those who perpetrate them.”
“We have seen a spike in hate crimes against many communities during the COVID-19 pandemic. In many cases, individuals are still scared to leave their homes – not only because of worry that they may contract the virus, but out of fear for their physical safety. This is unacceptable,” said Health and Human Services Secretary Xavier Becerra, who serves as Co-Chair of the White House Initiative and President’s Advisory Commission on Asian Americans, Native Hawaiians, and Pacific Islanders. “The Biden-Harris Administration is committed to combatting hate crimes against all Americans. Today’s announcements help deliver on the President’s pledge to ensure the safety of our communities.”
As set forth in the COVID-19 Hate Crimes Act, the Justice Department and HHS announced the joint issuance of guidance aimed at raising awareness of hate crimes during the COVID–19 pandemic. This guidance provides an overview of the rise of hate crimes and hate incidents during the pandemic, including a surge of hate crimes and hate incidents against Asian American, Native Hawaiian, and Pacific Islander communities, and several steps that law enforcement, government officials, and others can take to raise awareness of increased hate crimes and incidents, and to use increased awareness as a tool for the prevention of and response to hate crimes.
The Justice Department also announced the release of $10 million in grant solicitations in newly created grant programs to address hate crimes and hate incidents. This includes solicitations for grants authorized under the Jabara-Heyer NO HATE Act programs. Through these programs, the Office of Justice Programs (OJP) will provide up to $5 million in grant funds for the Bureau of Justice Statistics to support the transition of state and local law enforcement agencies to the National Incident-Based Reporting System (NIBRS) and reporting of hate crimes through NIBRS, and for the Office of Victims of Crime (OVC) to fund states to establish and run state-run reporting hotlines for victims of hate crimes. OJP’s Bureau of Justice Assistance (BJA) also released $5 million in grant solicitations under the Community-Based Approaches to Prevent and Address Hate Crimes Program, which supports community-based organizations and civil rights groups with implementing comprehensive approaches to promote community awareness and preparedness, increase victim reporting, strengthen community resiliency, and improve responses to hate crimes.
The Justice Department announced that Ana Paula Noguez Mercado will join the Office for Access to Justice, where she will serve as the Department’s first-ever Language Access Coordinator. Language access is a key barrier to the reporting of hate crimes, and the Language Access Coordinator will help improve knowledge, use, and expansion of the Department of Justice’s language resources.
Finally, the Justice Department announced that Saeed Mody will serve as the Department’s new Anti-Hate Crimes Resources Coordinator, after the first ever Coordinator was recently named Director of the newly restored Office of Access to Justice.
Over the last year, the Justice Department has taken a number of other actions in response to a rise in hate crimes and hate incidents. Some of these actions include:
- Designating a Deputy Associate Attorney General as the Justice Department’s first-ever Anti-Hate Crimes Resources Coordinator;
- Designating the chief of the Criminal Section of the Civil Rights Division to serve in role of facilitating the expedited review of hate crimes;
- Going above and beyond the directive under the COVID-19 Hate Crimes Act to expedite the review of certain hate crimes by including additional types of hate crimes;
- Designating at least one Assistant U.S. Attorney as a Civil Rights Coordinator in every U.S. Attorneys’ Office (USAO);
- Vigorously investigating and prosecuting hate crimes - since January 2021, the department has charged more than 40 defendants in over 30 cases and obtained more than 35 convictions of defendants charged with bias-motivated crimes;
- Elevating civil rights violations and hate crimes enforcement for prioritization among the FBI’s 56 field offices;
- Facilitating FBI-hosted regional conferences across the country with state and local law enforcement agencies regarding federal civil rights and hate crimes laws; to encourage reporting; strengthen relationships between law enforcement and local civil rights organizations; and build trust within the diverse communities they serve;
- Launching an FBI-led National Anti-Hate Crimes Campaign involving all 56 FBI field offices to encourage reporting. The campaign includes outdoor advertising, billboards, and radio streaming in addition to social media;
- Ensuring that all states have now become certified for participation in the FBI Uniform Crime Reporting National Incident Based Reporting System;
- Revitalizing the Community Relations Service (CRS) by, among other things, seating newly-confirmed director, Paul Monteiro;
- Adding information to the Department of Justice’s website on reporting hate crimes in 24 languages, including 18 of the most frequently spoken AAPI languages in the United States;
- Creating an online toolkit that provides USAO Civil Rights Coordinators with customizable community outreach materials and ready access to other resources and training;
- Piloting a new outreach training called United Against Hate help improve the reporting of hate crimes by teaching community members how to identify, report, and help prevent hate crimes and to provide an opportunity for trust building between law enforcement and communities;
- Developing additional resources to help empower local officials, community leaders, and residents to address and devise community responses to hate crimes and incidents, including a toolkit to address hate crimes and incidents against Asian American, Native Hawaiian and Pacific Islander communities, which has been translated into Arabic, Chinese (both Simplified and Traditional), Farsi, Hindi, Korean, Urdu, Tagalog, and Vietnamese;
- Releasing close to $21 million in grant funding through these programs to state and local partners to investigate and prosecute hate crimes and assist hate crime victims, including through the Matthew Shepard and James Byrd, Jr. Hate Crimes Program to support state, local, and tribal law enforcement and prosecution agencies in their efforts to investigate and prosecute hate crimes and in their outreach to and education of the public, victims, and others on hate crimes; and
- With the Department of Education, issuing facts sheets addressing harassment and discrimination in school, including harassment based on COVID-19 related issues, harassment of LGBTQI+ students, and discrimination based on national origin and immigration status.
Jemez man pleads guilty to assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Tyler Sando, 32, an enrolled member of the Pueblo of Jemez, pleaded guilty on May 19 in federal court to assault resulting in serious bodily injury in Indian Country and assaulting, resisting or impeding a federal officer involving physical contact. Sando will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Aug. 11, 2020, on the Jemez Pueblo, Sando got out of his vehicle, approached a victim and proceeded to strike him about the head and face. Sando then returned to his car and left. As a result of Sando’s assault, the victim suffered a subdural hematoma, needed staples to close a laceration on his head that left a scar, suffered daily headaches, and had blurry vision for a period of time.
On Nov. 16, 2020, Sando sped through a COVID checkpoint entering the Jemez Pueblo and crashed his vehicle. Law enforcement pursued Sando as he attempted to run away, and arrested him inside a residence. After Sando’s arrest, a federal officer attempted to interview him. Sando cursed at the officer and spat in his face.
Sando faces up to 10 years in prison for assault resulting in serious bodily injury and up to eight years in prison for assaulting, resisting or impeding a federal officer.
The FBI Albuquerque Field Office investigated this case with assistance from the Jemez Pueblo Police Department. Assistant United States Attorneys Nicholas J. Marshall and Novaline D. Wilson are prosecuting the case.
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Jackson County Woman Pleads Guilty to Theft of Social Security Income BenefitsRead the Press Release
CHARLESTON, W.Va. – A Jackson County woman pleaded guilty to fraudulently obtaining Social Security Administration (SSA) benefits.
According to court documents and statements made in court, Monique Ann Casto, 37, of Kenna, unlawfully collected $41,166 in Social Security Survivor’s Insurance Benefits payments on behalf of a minor child after losing custody of that child.
Casto began receiving the benefits in March 2006 for the care of a child as the child’s representative payee. These Social Security representative payee benefits were based on income and living arrangements. The benefits required that the SSA money received be used for the well-being of the child. They also created a duty on the recipient to report a change in living arrangements. Casto failed to disclose that the West Virginia Department of Health and Human Resources took custody of the minor child on June 23, 2015, and that her parental rights were terminated in May 2016. Casto continued to collect benefits unlawfully from June 2015 through August 2019.
Casto pleaded guilty to concealment of an event that affects SSA benefits and to conversion of SSA benefits. She is scheduled to be sentenced on September 8, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,00 fine.
United States Attorney Will Thompson made the announcement and commended the Social Security Administration (SSA) and SSA-Office of Inspector General (OIG) for conducting the investigation.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-137.
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Investor and Organizer of Cocaine Smuggling Operations via Semi-Submersible Vessels Pleads GuiltyRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that Oscar Adriano Quintero Rengifo, a/k/a “Guatala,” (34) today pleaded guilty to conspiring to distribute five or more kilograms of cocaine on vessels subject to the jurisdiction of the United States. Quintero Rengifo faces a maximum penalty of life imprisonment. He was arrested in Colombia on January 29, 2021, and extradited to the United States on January 26, 2022.
According to the plea agreement, Quintero Rengifo was part of a transnational criminal organization that smuggled cocaine from South America to Central America for ultimate importation into the United States. The organization primarily sent vessels such as self-propelled semi-submersible vessels to Guatemala, where the cocaine was then smuggled over the Guatemala/Mexican border and then into the United States. A former mayor in Guatemala, who controlled drug routes in northern Guatemala into Mexico, oversaw the smuggling of cocaine to Mexican cartel members. Quintero Rengifo progressed within the group from organizing smuggling operations to ultimately investing in shipments and securing investors.
From at least as early as January 2015 through September 2019, the United States Coast Guard interdicted at least four vessels, including two semi-submersible vessels, directly linked to the Quintero Rengifo’s organization and involving more than 13,000 kilograms of cocaine.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The Department of Justice’s Office of International Affairs substantially assisted in the extradition of the defendant to the United States. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 20 was:
Devin Farley, 40, of Missoula, on charges of conspiracy to distribute methamphetamine, possession with intent to distribute meth, distribution of meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Farley faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy and drug possession charges and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm charge. Farley was detained pending further proceedings. The Drug Enforcement Administration, Missoula County Sheriff’s Office and Missoula Police Department investigated the case. PACER case reference. 22-23.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 19 was:
Darnell Lee Not Afraid, 37, of Pryor, on charges of assault on federal officer and possession of firearm during a crime of violence. If convicted of the most serious crime, Not Afraid faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the assault charge and a mandatory minimum five years to life in prison, a $250,000 fine and five years of supervised release on the firearms charge. Not Afraid was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-44.
Appearing on May 16 was:
Brian Keith Maston, 52, unknown address, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and illegal possession of a machine gun. If convicted of the most serious crime, Maston faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges and a mandatory minimum 30 years to life in prison, consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release for the charge of possession of a machine gun in furtherance of a drug trafficking crime. Maston was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 22-53.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Woman Sentenced to 48 Months’ Imprisonment for Conspiracy to Commit Mail Fraud, Wire Fraud, and Money Laundering in Advance-Fee Fraud Scheme Targeting Deaf and ElderlyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 19, 2022, Donna L. Summerlin, age 63, of Fortville, Indiana, was sentenced to 48 months in prison by United States District Court Judge Jennifer P. Wilson for conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering.
According to United States Attorney John C. Gurganus, Summerlin was convicted in June 2021, of accepting over $1.2 million from victims of cross-border advance-fee schemes following a seven-day jury trial. Many of the identified victims were either elderly, deaf, or both. In these schemes, victims were contacted through Facebook and told that they were winners of a “deaf lottery” or that they had been selected for special and exclusive government grants or other programs. Summerlin herself is deaf, and the trial and other court proceedings were conducted with a team of American Sign Language (ASL) interpreters.
In order to claim their supposed prize, grant, or other financial reward, victims were directed to prepay expenses such as taxes and customs fees. Victims were persuaded to do so with the false promise of a much larger payoff. After making an initial payment, victims were directed to make additional larger payments. In some cases, fraudsters were successful at getting multiple payments from victims, who never received any financial reward.
Fraudsters contacting potential victims through Facebook, email, and text messages used fake names and photographs to disguise themselves. These fraudsters also took over the accounts of victims so that they could lure their friends into sending money and to reassure them of the scheme’s legitimacy when victims had doubts about participating. Victims were instructed to send these payments to Summerlin, who worked as a “money mule” or intermediary for these fraudsters for approximately four years, from 2012 to 2016.
At trial, the Government showed that Summerlin received over $1.2 million from over 100 people across the country and, in some cases, other countries such as Canada and Australia. Victims mailed Summerlin checks, cash, and money orders. They also wired her funds through bank-t-bank electronic wire transfers and sent her money through Western Union and MoneyGram money transfers. The victims included a deaf elderly couple that resided in this District during the time period of the conspiracy. The Government showed that this couple sent Summerlin around $500,000, depleting their life savings.
After receiving these funds, Summerlin rapidly withdrew them from the more than 40 bank accounts she used for these activities. Typically, she wired a portion of the funds to coconspirators in Nigeria and Great Britain. She also made large cash withdrawals, which were used to send funds to coconspirators and for personal use. Finally, she sent a large number of Western Union and MoneyGram money transfers to many of the same recipients in Nigeria and Great Britain.
Evidence at trial showed that Summerlin retained funds received from fraud victims for personal use as well.
In addition to the prison term, Summerlin was ordered to serve a term of supervised release of two years following her release from prison and to pay $723,436.57 in restitution to victims of the fraud scheme.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorneys Ravi Romel Sharma and Carlo D. Marchioli represented the United States at trial. The case was previously handled by Assistant U.S. Attorneys Chelsea Schinnour and Kim Douglas Daniel.
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Houma Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DARRIUS NEVILLE, age 26, a resident of Houma, Louisiana, was charged May 5, 2022, in a one-count sealed indictment by a federal grand jury with distribution of heroin in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), announced U.S. Attorney Duane A. Evans. The indictment was unsealed on May 12, 2022.
If convicted, NEVILLE faces a statutory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Hillsborough County Man Sentenced to 17 Years in Federal Prison for Distributing and Possessing Child Sexual Abuse Materials and Ordered to Pay Victims over $100,000 in RestitutionRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Andres Ivan Leyva Sabina (51, Tampa) to 17 years in federal prison for distributing and possessing images and videos depicting children being sexually abused. The court also ordered Sabina to pay more than $100,000 in restitution to child victims, serve a 10-year term of supervised release, and register as a sex offender. Sabina had pleaded guilty on January 12, 2022.
According to court documents, on several occasions in September 2018, Sabina used a social media application and the internet to distribute images depicting children being forced to engage in sexually explicit conduct. In July 2019, law enforcement officers executed a search warrant at Sabina’s residence. Several electronic devices used by Sabina were seized and officers discovered more than 4,000 images and videos depicting children being sexually abused contained in these devices.
“This predator possessed thousands of depictions of child pornography involving more than 150 victims that he collected and distributed on the dark web,” said HSI Tampa acting Assistant Special Agent in Charge Jennifer Silliman. “HSI special agents and Florida Department of Law Enforcement officers worked jointly to shut down this monstrous creature from leaving more child victims in his wake.”
This case was investigated by Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Criminal Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Woman Pleads Guilty to Wire FraudRead the Press Release
St. Thomas, USVI – United States Attorney Delia L. Smith announced today that on May 16, 2022, Marvelous Eghage, 39, of Houston, TX, pleaded guilty to one count of wire fraud before Magistrate Judge Ruth Miller.
According to court documents, between February 26, 2018, and March 13, 2018, Eghage devised a scheme to fraudulently obtain money and property by means of materially false and fraudulent pretenses and promises directed to third parties. Through her fraudulent scheme, Eghage diverted funds from her victims to a bank account under her controlled by way of electronic wires and later withdrew or transferred the funds for her own personal benefit and the benefit of others.
Specifically, court documents show that on February 26, 2018, Eghage and a co-conspirator electronically transferred $25,400.00 to an account under Eghage’s control. These funds were fraudulently acquired through forged checks from the account of R.B.R. On March 6, 2018, Eghage and a co-conspirator, fraudulently induced a representative of Colombia-based FDN to electronically transfer $34,965.00 to a Houston, TX bank account under Eghage’s control. On March 7, 2018, Eghage and a co-conspirator fraudulently induced N.D. to electronically transfer approximately $48,000.00 to a Houston, TX bank account controlled by Eghage. On March 8, 2018, Eghage fraudulently induced M.R. to transfer money to a bank account under her control. Lastly, on March 9, 2018, Eghage and a coconspirator fraudulently induced a representative of a law firm based in St. Thomas, VI, to electronically transfer approximately $108,637.00 to a Houston, TX bank account under Eghage’s control. Eghage used email communications to induce her victims into her fraudulent scheme. Eghage faces a maximum sentence of 20 years in prison and a maximum fine of $250,000.00.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Everard E. Potter.
Government Contractor Agrees to Pay $425,000 for Alleged False Claims Related to Conflicts of InterestRead the Press Release
Cape Henry Associates (Cape Henry), located in Virginia Beach, Virginia, has agreed to pay $425,000 to resolve allegations that it violated the False Claims Act by failing to inform contracting officers of the company’s organizational conflicts of interest (OCI) in connection with the award and performance of task orders on government contracts. Cape Henry performs manpower analysis, personnel analysis and training services for the U.S. Armed Forces.
The Justice Department alleged that Cape Henry failed to disclose that one of the company’s officers had an ownership interest in KOVA Global, a company to which Cape Henry awarded subcontracts to provide warehouse services in connection with two sole source task orders issued by the Army and General Services Administration (GSA).
“It is critical that companies disclose potential conflicts of interest to protect the integrity of the federal procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly conceal relevant information that may affect the award or performance of a government contract.”
“The failure of government contractors to disclose organizational conflicts of interest harms government procurement, creates unfairness, and can cost the taxpayers money,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia.
The Justice Department also alleged that Cape Henry failed to disclose relevant information about a conflict of interest arising from advisory & assistance services (A&AS) performed in 2015 by Q.E.D. Systems Inc. (Q.E.D.), a Cape Henry subcontractor. In connection with a multi-year delivery order under a Navy SeaPort-e contract, Cape Henry would submit project-specific proposals to a Navy program management office that was responsible for determining the scope and funding for each project. At the same time that Cape Henry was submitting proposals to the Navy, Cape Henry was also funding the direct labor of a Q.E.D. employee through a subcontract. This Q.E.D. employee was providing A&AS services to the Navy program office and making recommendations that could potentially affect Cape Henry’s funding and treatment in connection with these project proposals. Cape Henry failed to disclose this conflict of interest to the contracting officer as required by the OCI clause in Cape Henry’s contract with the Navy.
“The Department of Defense requires its contractors to divulge any potential conflicts of interest to maintain the integrity of the military’s procurement process,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by fully investigating all allegations of procurement fraud.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's (Army CID) Major Procurement Fraud Field Office.
“GSA OIG special agents are committed to working with DOJ and investigative partners to ensure that taxpayer dollars are properly spent and protected," said Special Agent in Charge Eric D. Radwick of the GSA Office of Inspector General, Mid-Atlantic Division.
“This settlement agreement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to vigorously pursue those who attempt to exert improper influence over the federal government contracting process and to protect American taxpayer dollars,” said Special Agent in Charge Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia with assistance from the DCIS, the Army CID, the GSA Office of Inspector General, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
The matter was handled by Trial Attorney Jason M. Crawford of the Civil Division and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The claims resolved by the settlement agreement are allegations only; there has been no determination of liability.
Government Contractor Agrees to Pay $425,000 for Alleged False Claims Related to Conflicts of InterestRead the Press Release
ALEXANDRIA, Va. – Cape Henry Associates (Cape Henry), located in Virginia Beach, has agreed to pay $425,000 to resolve allegations that it violated the False Claims Act by failing to inform contracting officers of the company’s organizational conflicts of interest in connection with the award and performance of task orders on government contracts.
Cape Henry performs manpower analysis, personnel analysis, and training services for the United States Armed Forces. The allegations involved that Cape Henry failed to disclose that one of the company’s officers had an ownership interest in KOVA Global, a company to which Cape Henry awarded subcontracts to provide warehouse services in connection with two sole source task orders issued by the Army and General Services Administration (GSA).
The Justice Department also alleged that Cape Henry failed to disclose relevant information about a conflict of interest arising from advisory & assistance services (A&AS) performed in 2015 by Q.E.D. Systems, Inc. (Q.E.D.), a Cape Henry subcontractor. In connection with a multi-year delivery order under a Navy SeaPort-e contract, Cape Henry would submit project-specific proposals to a Navy program management office that was responsible for determining the scope and funding for each project. At the same time that Cape Henry was submitting proposals to the Navy, Cape Henry was also funding the direct labor of a Q.E.D. employee through a subcontract. This Q.E.D. employee was providing A&AS services to the Navy program office and making recommendations that could potentially affect Cape Henry’s funding and treatment in connection with these project proposals. Cape Henry failed to disclose this conflict of interest to the contracting officer as required by the OCI clause in Cape Henry’s contract with the Navy.
“The failure of government contractors to disclose organizational conflicts of interest harms government procurement, creates unfairness, and can cost the taxpayers money,” said U.S. Attorney Jessica D. Aber.
“It is critical that companies disclose potential conflicts of interest to protect the integrity of the federal procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly conceal relevant information that may affect the award or performance of a government contract.”
“The Department of Defense requires its contractors to divulge any potential conflicts of interest to maintain the integrity of the military’s procurement process,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by fully investigating all allegations of procurement fraud.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's (Army CID) Major Procurement Fraud Field Office.
“GSA OIG special agents are committed to working with DOJ and investigative partners to ensure that taxpayer dollars are properly spent and protected," said Special Agent in Charge Eric D. Radwick of the GSA Office of Inspector General, Mid-Atlantic Division.
“This settlement agreement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to vigorously pursue those who attempt to exert improper influence over the federal government contracting process and to protect American taxpayer dollars,” said Special Agent in Charge Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Virginia, the Justice Department’s Civil Division, Commercial Litigation Branch, and Fraud Section, and with assistance from the Defense Criminal Investigative Service, the Army Criminal Investigation Division, the General Services Administration Office of Inspector General, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
The matter was handled by Assistant U.S. Attorney Clare Wuerker and Trial Attorney Jason M. Crawford of the Justice Department’s Civil Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The claims resolved by the settlement agreement are allegations only; there has been no determination of liability.
Gary Man Sentenced to 36 Months in PrisonRead the Press Release
HAMMOND- Raheri Boyd, 45 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon, on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Boyd was sentenced to 36 months in prison followed by 2 years of supervised release.
According to documents in the case, on June 8, 2021, a vehicle operated by Boyd was involved in a hit and run accident. When officers arrived, Boyd was found to be asleep in the driver’s seat. During a search of the vehicle, law enforcement recovered a loaded 9mm semi-automatic pistol in the center console. Boyd’s criminal history indicates that he has previously been convicted of multiple felony offenses, including possession of a controlled substance, unlawful use of a firearm by a felon, and aggravated discharge of a firearm. These convictions prohibit him from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Lake Station Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Gang leader convicted of federal charges in connection with nightclub shooting and subsequent murder of 17-year-old witnessRead the Press Release
ATLANTA, Ga. - A federal jury found Maurice Antonio Kent guilty of RICO Conspiracy, violent crime in aid of racketeering, discharging a firearm during the commission of those violent crimes, and possession of a firearm as a convicted felon.
“The 135 Pirus gang is a violent criminal organization whose members committed a multitude of crimes, including the horrific execution of a 17-year-old witness,” said U.S. Attorney Ryan K. Buchanan. “Kent and his fellow gang members demonstrated an absolute disregard for human life and have now been brought to justice as a result of the strong partnership between federal and local law enforcement. This case, which culminated in a jury verdict convicting Kent of all charges, reflects our office’s resolve to tirelessly investigate and prosecute gangs who drive violence in our communities.”
“The brutal and tragic violence perpetrated by Kent and his fellow gang members is completely shocking and deplorable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With this conviction, Kent will no longer be able to commit senseless violence and homicidal acts on our streets. The FBI remains unwavering in our resolve to work with our partners to ensure that individuals like Kent are held accountable for their crimes and to eliminate gang violence from our communities.”
“Gang and organized crime have no place in our community,” said Brookhaven Police Deputy Chief Brandon Gurley. “Organized crime knows no boundaries, and neither should we. The collaboration with the U.S. Attorney’s Office was instrumental to ensure that Kent and his associates were all held accountable for the violent crimes they committed in our city and throughout Georgia.”
“In reference to this investigation, I’d like to credit the Violent Repeat Offender Program (VRO) which is a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia and has been in place for many years,” said Cartersville Police Chief Frank McCann. “The VRO program puts federal, state, and local law enforcement officers together monthly to take violent repeat offenders off our streets. Positive results when we all work together!”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The 135 Pirus gang originated in Compton, California, and has a national presence, including in the Northern District of Georgia. Kent was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia. The 135 Pirus are governed by a set of rules, which, among other commands, prohibit its members from cooperating with law enforcement.
In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven nightclub between a California-based 135 Pirus gang member and a rival gang member. At that time, Kent fired multiple rounds into a crowd of people outside the club, critically wounding the other gang member as well as a club security guard. During his flight from the scene, Kent tossed the firearm from a vehicle just before he was apprehended by police. Soon after being arrested and while in custody, Kent learned that a 17-year-old fellow gang member, who may have witnessed the shooting, was interviewed by law enforcement. Kent believed he was “snitching.” Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, Georgia, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.
The jury also heard evidence that eight months prior to the nightclub shooting, in September 2016, Kent committed a drive-by shooting of a man standing in his front yard in Cartersville, Georgia. After that shooting, Kent threw the firearm into Lake Allatoona. The FBI later recovered the gun from the bottom of the lake and matched cartridge casings and a bullet from the drive-by shooting to Kent’s firearm.
In addition to Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, a number of other 135 Pirus gang members and associates were previously convicted in this case, including:
- Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, was convicted of RICO Conspiracy;
- Jamel Dupree Hughes, a.k.a. “Savage,” 27, a 135 Pirus member from Atlanta, Georgia, was convicted of murder in aid of racketeering, use of a firearm in furtherance of a crime of violence resulting in death, attempted murder in aid of racketeering, and discharge of a firearm in furtherance of a crime of violence;
- Cedric Sams, Jr., a.k.a. “Awall,” 29, a 135 Pirus member from Cartersville, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death;
- Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death; and
- Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was convicted of RICO Conspiracy.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. The sentencing hearing for Kent and the other defendants will be scheduled at a later date.
This case is being investigated by the FBI Safe Streets Gang Task Force, with valuable assistance provided by the Brookhaven Police Department, the Bartow County Sheriff’s Office, the Cartersville Police Department, and the Georgia Department of Community Supervision.
Assistant U.S. Attorneys Jessica Morris, who serves as the office’s Project Safe Neighborhoods (PSN) Co-coordinator, and Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fraud Scheme Involving Baby Formula Leads to 18-Year Federal Prison Sentences for SwindlersRead the Press Release
Miami, Florida – A federal district judge in Miami has sentenced each of three South Florida residents to 220 months in prison after a jury found them guilty of orchestrating an elaborate fraud scheme that cheated U.S. manufacturers of infant formula, eye-care products, and other FDA-regulated items out of more than $100 million.
Between 2013 and 2018, Johnny Grobman, 48, Raoul Doekhie, 53, and Sherida Nabi, 57, secured deep price discounts for infant formula and other items by lying to the U.S. manufacturers of the products. Doekhie and Nabi (who are married) told the manufacturers that they were purchasing the products to ship overseas, to Suriname, often in connection with purported government procurement contracts they held in Suriname. In fact, the defendants did not have government procurement contracts and never intended to export the products to Suriname. Instead, Grobman and others sold the products in the United States for millions of dollars, which the three defendants later split among themselves.
The defendants hid their activity from the U.S. manufacturers of the FDA-regulated products in one of three ways. The first was to send “dummy” shipments abroad. The dummy shipments did not contain the products purchased from the manufacturers, but they did generate documentation to prove that an export occurred. The second method was to “U-turn” the products: The products were shipped abroad, generating export documentation. As soon as they arrived overseas, they were shipped back to the United States. The third method was to create fraudulent export shipping documentation showing that the products were exported when they actually never left the country.
Following a 13-day trial, on February 6, 2020, a federal jury found Grobman, Doekhie, and Nabi guilty of conspiring to commit wire fraud; wire fraud; money laundering; conspiring to obtain pre-retail medical products worth $5,000 or more by fraud or deception, theft of pre-retail medical products; and smuggling goods from the United States.
On April 25, 2022, the Court entered forfeiture money judgments for the amounts of the criminal proceeds traceable to the offenses of conviction as follows: $87,187,374.83 against Grobman and $115,699,273.61 jointly against the Defendants Doekhie and Nabi.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Justin C. Fielder, Special Agent in Charge, Miami Field Office, United States Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), announced the sentences that U.S. District Judge Roy K. Altman imposed yesterday.
“The fraud perpetrated by these defendants is nothing short of egregious,” said U.S. Attorney Gonzalez. “The 18-year prison sentences reflect the seriousness of the defendants’ crimes. Our Office will continue to vigorously prosecute those who commit these types of offenses.”
“Today’s announcement should serve as a reminder that those who fraudulently divert consumer products for profit will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who engage in fraudulent schemes involving FDA-regulated products.”
FDA-OCI investigated the case. Broward County Sherriff’s Office assisted. Assistant U.S. Attorneys Shannon Shaw, Christopher Browne, and John Shipley prosecuted the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
This case is the second large-scale prosecution by the South Florida U.S. Attorney’s Office and FDA-OCI targeting fraud schemes related to the so-called “gray market,” which involves the diversion and re-sale of certain goods that were not intended for distribution in the United States. In September 2019, the Office announced the convictions of five defendants, including Byramji Javat, a citizen of Pakistan and Chairman of the Dubai-based Uniworld Group, for various offenses relating to a global fraud scheme that relied upon false claims about the United States military and the Government of Afghanistan.
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 18-cr-20989.
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Founder and CEO of Off-Shore Cryptocurrency Derivatives Platform Sentenced for Violating the Bank Secrecy ActRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that Arthur Hayes was sentenced today to six months of home detention, in connection with his violation of the Bank Secrecy Act (the “BSA”), through his willful failure to establish, implement, and maintain an anti-money laundering (“AML”) program at the cryptocurrency company he co-founded and owned, Bitcoin Mercantile Exchange or “BitMEX”. U.S. District Judge John G. Koeltl imposed today’s sentence.
U.S. Attorney Damian Williams said: “While building a cryptocurrency platform that profited him millions of dollars, Arthur Hayes willfully defied U.S. law that requires businesses to do their part to help in preventing crime and corruption. He intentionally failed to implement and maintain even basic anti-money laundering policies, which allowed BitMEX to operate as a platform in the shadows of the financial markets. This Office will continue to vigorously enforce United States law intended to prevent money laundering through financial institutions, including cryptocurrency platforms.”
According to the Indictment, public court filings, and statements made in court:
ARTHUR HAYES, together with BENJAMIN DELO and SAM REED, who have also pled guilty and are scheduled to be sentenced in the near-future, was one of the three co-founders and the CEO of BitMEX.
BitMEX is an online cryptocurrency derivatives exchange that, during the relevant time period, had U.S.-based operations and served thousands of U.S. customers, notwithstanding false representations to the contrary by the company, including HAYES. From at least September 2015, and continuing at least through the time of the Indictment in September 2020, HAYES willfully caused BitMEX to fail to establish and maintain an AML program, including a program for verifying the identify of BitMEX’s customers (or a “know your customer” or “KYC” program). As a result of its willful failure to implement AML and KYC programs, BitMEX was in effect a money laundering platform. For example, in May 2018, HAYES was notified of allegations that BitMEX was being used to launder the proceeds of a cryptocurrency hack. Neither HAYES nor the company filed a suspicious activity report thereafter, nor did they implement an AML or KYC program in response.
HAYES failed to institute AML or KYC programs at BitMEX despite closely following U.S. regulatory developments that made clear their legal obligation to do so if BitMEX operated in the United States, which it did. Despite repeatedly stating that BitMEX did not serve U.S. customers, including to members of the press and others outside of BitMEX, HAYES knew that BitMEX’s purported withdrawal from the U.S. market in or about September 2015 was a sham, and that “controls” BitMEX put in place to prevent U.S. trading were an ineffective facade that did not, in fact, prevent users from accessing or trading on BitMEX from the United States.
HAYES derived substantial profits from BitMEX, as a result of U.S.-based trading, and aggressively advertised the company’s lack of an AML or KYC program. At various points in time, BitMEX’s website stated that “No real name or other advanced verification is required on BitMEX.” Through at least August 2017, the platform’s registration page explicitly stated that first and last name were “not required” to register.
Because of the lack of KYC, the full scope of criminal conduct on BitMEX may never be known. The company, still owned by HAYES and his co-defendants, accepted a settlement with the Department of Treasury in which the Company neither admitted nor denied that that it had conducted more than $200 million in suspicious transactions, and that the Company had failed to file suspicious activity reports on nearly 600 specific suspicious transactions.
* * *
HAYES, 36, of Miami, Florida, was sentenced to six months of home detention and two years of probation. Hayes also agreed to pay a fine of $10 million dollars representing his pecuniary gain from the offense.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad, and thanked the attorneys and investigators at the Commodity Futures Trading Commission whose expertise and diligence were integral to the development of this case.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood, Samuel Raymond, and Thane Rehn are in charge of the prosecution.
Former Seattle resident indicted for bank fraud for allegedly stealing more than $500,000 from Paycheck Protection ProgramRead the Press Release
Seattle – A 28-year-old New York City man was indicted this week in the Western District of Washington for three counts of bank fraud related to his abuse of the COVID-19 Pandemic Paycheck Protection Program (PPP), announced U.S. Attorney Nick Brown. Donte Jamal McClellon was a resident of Seattle when he submitted falsified documents to obtain $500,948 in loan proceeds from three different banks in May and June 2020. Under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act such funding was supposed to help small businesses weather the pandemic storm.
“Those who swooped in early with false and forged documents to claim loan funds, robbed legitimate businesses of the assistance they needed,” said U.S. Attorney Nick Brown. “Prosecuting pandemic fraud is a top priority of the Department of Justice and an ongoing focus for investigators here in Seattle.”
According to records filed in the case, McClellon used the names of three limited liability corporations he had once registered in the State of Washington to make his claims. Each of the entities, ‘Frostlake,’ ‘Cannonlake,’ and ‘Skylake’ LLC, had been inactive and showed no signs of business activity in any state or federal registries in the years leading up to the pandemic. Nevertheless, in May and June 2020, McClellen submitted Paycheck Protection program applications claiming the entities each had as many as 13 employees and, in one case, gross receipts of more than $1.6 million. McClellan allegedly forged multiple Internal Revenue Service forms to make it appear the three companies were operating real estate or retail businesses, with employees who would benefit from the Paycheck Protection Program loans. McClellan claimed the businesses operated out of his home address in Seattle. The investigation revealed there was no business activity at that address.
The loan funds were disbursed to bank accounts that McClellon had set up just days before he made the loan applications. The proceeds were then moved to a personal bank account controlled by McClellon.
McClellon is scheduled to appear for arraignment on the indictment on May 31, 2022. Bank fraud is punishable by up to 30 years in prison.
The charges contained in the indictment 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.
The case is being investigated by The FBI Seattle Field Division with assistance from FBI New York and the Small Business Administration Office of Inspector General (SBA-OIG).
The case is being prosecuted by Assistant United States Attorney Sok Tea Jiang.
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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
mcclellon_indictment.pdfFormer Norfolk Sheriff Sentenced for Public CorruptionRead the Press Release
NORFOLK, Va. – A former elected Sheriff of the City of Norfolk was sentenced today to 12 years in prison for defrauding the citizens of Norfolk through bribery schemes. Last August, a jury convicted the former Sheriff of all 11 felonies charged against him.
According to court documents, Robert McCabe, 63, engaged in illicit quid pro quo relationships with vendors while he served as the Sheriff of the City of Norfolk. Evidence presented at trial showed that from 1994 through 2016, vendors provided McCabe with cash, travel, entertainment, gift cards, catering, personal gifts, and campaign contributions, in exchange for official actions that favored the vendors and their contracts with the Norfolk City Jail. These favorable actions included changing the terms of the contracts to favor certain companies, granting extensions and renewals, and providing inside bidding information.
Gerard Boyle, 64, of Franklin, Tennessee was the Chief Executive Officer of Correct Care Solutions (CSS), a company that he founded and which contracted with the Norfolk Sheriff’s Office to provide medical services to the inmates at the Norfolk City Jail. Between about January 2004 and December 2016, Boyle provided McCabe with cash, travel, a loan, entertainment, gift cards, personal gifts and campaign contributions. In exchange, McCabe performed official acts in favor of CCS, which was able to obtain medical services contracts worth more than $3 million per year with the Norfolk Sheriff’s Office. In one instance, McCabe met with Boyle at a hotel in Philadelphia where Boyle gave McCabe $6,000 in cash. On October 7, 2021, Boyle pleaded guilty to conspiring to commit honest services mail fraud by paying bribes to secure medical services contracts for the Norfolk City Jail
McCabe engaged in a similar illicit quid pro quo relationship with the Chief Executive Officer of a Louisiana-based company that provided food services management to the Norfolk City Jail. In exchange, the company regularly provided free catering at McCabe’s home, for his annual golf tournaments, and for other political events. The company’s former CEO also gave McCabe free trips – including a trip to the 2004 BCS National Championship game in Louisiana – and a ride in a glass-bottomed helicopter in San Francisco.
Despite receiving a multitude of gifts from vendors, McCabe concealed these bribes by never disclosing any of these items in his required campaign disclosures.
On February 25, Boyle was sentenced to three years in prison, ordered to forfeit $2,700,000, and to pay a $35,000 fine.
McCabe was sentenced today to 12 years in prison. The advisory guideline range for the charges for which he was convicted was a term of life imprisonment capped at 220 years.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Darrell J. Waldon, Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Melissa E. O’Boyle, Randy C. Stoker, and Anthony Mozzi prosecuted 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. 2:19-cr-171.
Former Georgia Insurance Commissioner John Oxendine charged with health care fraud and money laundering schemeRead the Press Release
ATLANTA - John W. Oxendine has been arraigned on federal charges of conspiracy to commit health care fraud and conspiracy to commit money laundering. Oxendine was indicted by a federal grand jury on May 17, 2022.
The indictment alleges that Oxendine conspired to obtain kickbacks for unnecessary genetic and toxicology lab tests, and used his insurance business to hide those kickbacks,” said U.S. Attorney Ryan K. Buchanan. “Patients go to their healthcare provider for treatment with the expectation that their treatment or test is necessary, not a scam for fraud.”
“These allegations describe someone who was more motivated by personal greed than their duty to provide appropriate and necessary care to patients,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI, along with our partners, will continue to investigate healthcare fraud to ensure these individuals who willingly defraud the American people are brought to justice.”
“Providers who exploit their positions as health care professionals for financial gain undermine patient trust and waste taxpayer dollars,” said Special Agent in Charge Tamala E. Miles, with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work tirelessly alongside our law enforcement partners to investigate any bad actors who attempt to defraud federal health care programs.”
“Health care providers who engage in kickback schemes to maximize profits violate the integrity of the Department of Defense health care system and betray the trust of their patients,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “Trusted healthcare professionals whose greed overcomes their moral obligations to those seeking medical treatment have no place in the DoD healthcare community and will be aggressively pursued for prosecution.”According to U.S. Attorney Buchanan, the charges, and other information presented in court: John W. Oxendine allegedly conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing. Physicians associated with Jeffrey Gallups’s ENT practice were pressured to order medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing from a testing lab in Texas. As part of the health care fraud scheme, the lab company agreed to pay Oxendine and Gallups a kickback of 50% of the net profit for eligible specimens submitted by Gallups’s practice to the lab company for the testing.
In total, the lab company submitted claims seeking over $2,500,000 in payment for laboratory tests ordered by Gallups’s practice. The insurance companies paid over $600,000 to the lab company as a result of these claims. The lab company then paid $260,000 in kickbacks through Oxendine's insurance services business. Oxendine used a portion of the kickback money to pay debts on behalf of Gallups, paying a $150,000 charitable contribution and $70,000 in attorney’s fees.
This case is related to United States v. Gallups, 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud.
John W. Oxendine, 60, of Duluth, Georgia was indicted on May 17, 2022. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Department of Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Chief Financial Officer Sentenced to 33 Months in Federal Prison for $2,400,000 Investment Fraud SchemeRead the Press Release
United States Attorney Richard G. Frohling announced that on May 19, 2022, Jeremy Arrington (age: 44) of Middleton, Wisconsin, was sentenced to 33 months in federal prison for carrying out a $2.4 million investment scheme that defrauded over 20 victims. Arrington had earlier pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343.
The information presented at sentencing showed that Arrington partnered with another individual to form a real estate business, Wisconsin Home Buyers Network, LLC (WIHBN), of which Arrington was the Chief Financial Officer. Between 2012 and 2017, the partners solicited and obtained from more than 20 investors approximately $2.8 million, promising little or no risk and healthy monetary returns ranging from 12% to 36%. In return, investors received promissory notes signed by Arrington detailing the investment terms. Some investors also received mortgages that purported to be for specific properties to be acquired and rehabilitated with the investors’ funds, although the partners failed to record all but a few of the mortgages.
Contrary to promises that the investor funds were secured by the assets of a successful and profitable business, WIHBN had business debt, delinquent tax obligations, and other financial issues that made the business unable to timely make payments on the promissory notes. Rather than being used for the promised investment purposes, investor funds were comingled with other funds and were used for Ponzi-type payments to existing investors, payroll for related businesses, debt reduction, personal draws by the partners, back taxes, and legal fees. When the partners were unable to pay as the promissory notes came due, they sought extensions, solicited additional funds from existing investors, and attempted to secure new investors. In the end, less than $400,000 of the over $2.8 million in investor funds was returned to investors.
Several victims filed impact statements with the court prior to sentencing. One victim made in-person remarks during the sentencing hearing, explaining how Arrington caused significant financial and emotional harm. Some investors lost funds that they had been saving for retirement. In pronouncing sentence, U.S. District Court Judge Brett H. Ludwig commented that the protracted nature of Arrington’s conduct and the magnitude of the loss required a sentence that both punished and deterred.
“Mr. Arrington’s conduct resulted in individuals losing their retirement savings and their sense of security and well-being,” said U.S. Attorney Frohling. “Along with our federal, state, and local partners, the United States Attorney’s Office remains committed to holding individuals who engage in these types of schemes accountable for their actions and to pursuing justice for their victims. Today’s sentence is a direct result of the excellent collaborative work of the agents from the FBI and the Department of Labor’s Employee Benefits Security Administration.”
“The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and prosecuting those that fail to comply with the law. EBSA will continue to work aggressively with our law enforcement partners to stop the financial harm caused by these types of schemes.” said Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Employee Benefits Security Administration. Assistant U.S. Attorneys Carol L. Kraft and John P. Scully prosecuted the case.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Fifteen People Charged with Trafficking Semi-Truckloads of Marijuana and Laundering Drug Proceeds, over $40 Million in Assets SeizedRead the Press Release
INDIANAPOLIS – A federal grand jury has indicted fifteen people on drug trafficking and money laundering charges. Specifically, the indictment charges the defendants with a conspiracy to distribute semi-truckload quantities of marijuana and THC-containing products and to launder the bulk cash proceeds from selling the drugs. Adewale Adediran, the alleged leader of the conspiracy, was also charged with engaging in a continuing criminal enterprise. Nathan Canary was charged with firearms-related offenses.
The charges are being announced today following a week-long effort by federal agents, in conjunction with state and local law enforcement partners in Indiana, California, Kentucky, and Florida, to arrest the charged defendants and seize drugs and drug proceeds. Over the past seven days, authorities have arrested ten of the defendants, executed search warrants at twenty-three different locations in three states, and executed seizure warrants on over a dozen bank accounts and a trove of high-end jewelry. Five defendants remain at large.
According to the indictment, from 2016 until this year, Adediran and the drug trafficking organization he led used commercial-level logistics and warehousing to distribute large quantities of marijuana throughout the United States and collect millions of dollars in cash proceeds. The indictment alleges that the organization utilized commercial trucking and airplanes to facilitate the shipment of tractor-trailer loads of marijuana to warehouses and other commercial locations in various states, including Indiana. The indictment further alleges that the organization used semi-trucks and an airplane to transport large quantities of cash back to Adediran and his co-conspirators in California, and later, used cashier’s checks and bank accounts to launder the proceeds. Adediran was arrested in California and was ordered detained in the custody of the U.S. Marshal’s Service pending trial.
To date in this investigation, authorities have seized or restrained nearly $40 million in drugs, alleged drug proceeds, and assets purchased with drug proceeds. Authorities have seized over three tons of marijuana and THC-containing products, valued at over $10 million, along with over a dozen firearms. In addition to the drug and gun seizures, authorities have seized or restrained cash and bank accounts totaling over $8 million; a private jet valued at $900,000; numerous luxury automobiles, including two Rolls-Royces, two Bentleys, a Ford GT, and a Lamborghini, valued at $2 million; high-end jewelry valued at over $8 million; numerous pieces of artwork and collectible items valued at $850,000; and nine pieces of real estate with a total value of $10 million.
The following defendants were charged in the indictment:
Defendant
Charge(s)
Adewale Adediran, 36, Orange, CA
Conspiracy to Distribute Marijuana; Continuing Criminal Enterprise; and Money Laundering Conspiracy
Jazmine Adediran, 31, Orange, CA
Conspiracy to Distribute Marijuana; Money Laundering Conspiracy
Crystal Thomas, 33, Irvine, CA
Conspiracy to Distribute Marijuana
Hugo Molina, 45, Irvine, CA
Conspiracy to Distribute Marijuana
Tayo Muyiwa Olukoya, 53, Irvine, CA
**FUGITIVE**
Conspiracy to Distribute Marijuana
Stephen Lamar Richardson, 51, Noblesville, IN
Conspiracy to Distribute Marijuana
Teoddy Carillo Domingo, 46, Tustin, CA
Conspiracy to Distribute Marijuana; Money Laundering Conspiracy
Jeremy Quire, 44, Tampa, FL
**FUGITIVE**
Conspiracy to Distribute Marijuana
Marquis Bruce, 34, Tampa, FL
**FUGITIVE**
Conspiracy to Distribute Marijuana
Nathan Canary, 37, Indianapolis, IN
Conspiracy to Distribute Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm as a Previously Convicted Felon
Richard Davis, 32, Fishers, IN
Conspiracy to Distribute Marijuana;
Rafael Smith, 30, Fortville, IN
Conspiracy to Distribute Marijuana;
John Carson, 36, Louisville, KY
Conspiracy to Distribute Marijuana;
Mercedes Blackwell, 27, Woodland Hills, CA
**FUGITIVE**
Conspiracy to Distribute Marijuana; Money Laundering Conspiracy
If convicted on the conspiracy with intent to distribute marijuana charges, each face between ten years to life imprisonment, no less than five years supervised release, and a $10,000,000 fine. If convicted on the continuing criminal enterprise charge, Adediran faces a mandatory twenty years up to lifetime imprisonment, no more than five years supervised release, and a $2,000,000 fine. If convicted on the money laundering charge, each faces up to twenty years in prison, up to three years of supervised release, and a $500,000 fine. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Justin Campbell, Special Agent in Charge of IRS-Criminal Investigation Chicago Field Office made the announcement.
The Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, the Brownsburg Police Department, the Clarksville Police Department, the Southern Indiana Drug Task Force (Jeffersonville Police Dept, New Albany Police Dept, Clark County Sheriff’s Office, Harrison County Sheriff’s Office, and Floyd County Sheriff’s Office), and the Hamilton/Boone County Drug Task Force investigated the case in conjunction with Homeland Security Investigations.
U.S. Attorney Myers thanked Assistant U.S. Attorney Michelle P. Brady, who is prosecuting the case, and Assistant U.S. Attorney Kelly Rota, who is handling asset forfeiture in this 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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Felon Pleads Guilty as Charged to Federal Drug Trafficking and Firearm OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on May 19, 2022, ANTHONY PITTMAN, age 33 of Metairie, Louisiana, pleaded guilty as charged to a three-count indictment. Count 1 charged the defendant with possession with intent to distribute controlled substances in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); Count 2 charged him with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and Count 3 charged him with possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, PITTMAN was previously convicted drug trafficking, among other felony firearm and drug offenses in Jefferson Parish. Due to these convictions, it is unlawful for him to possess a firearm. He is now convicted of possessing multiple firearms and possessing with the intent to distribute a cocaine, cocaine base (“crack”), and heroin. He was apprehended after a high-speed chase during an attempted traffic stop on October 4, 2020 in Westwego, Louisiana. The drugs were found in two camouflage bags which were originally seen by officers inside the car but thrown on the side of the road as the defendant tried to escape. Additional evidence consistent with drug trafficking was found in the center console of the vehicle.
For Count 1 of the indictment, PITTMAN faces a maximum term of twenty (20) years imprisonment, a fine of up to $1,000,000.00, a minimum of three (3) years of supervised release, and a $100.00 mandatory special assessment fee. For Count 2, he faces a minimum term of five (5) years up to a maximum term of life imprisonment to run consecutive to all other sentences, a fine of up to $250,000.00, up to five (5) years of supervised release, and a $100.00 mandatory special assessment fee. For Count 3, he faces a maximum of ten (10) years imprisonment, a fine of up to $250,000.00, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Westwego Police department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.
Federal inmate and Alabama correctional officer sentenced for attempting to smuggle methamphetamine into federal prisonRead the Press Release
ATLANTA – Julius Stoudemire and Jennifer Deramus have each been sentenced after their convictions for attempting to smuggle methamphetamine into United States Penitentiary Atlanta (“USP Atlanta”), a federal prison.
“Introducing contraband into a federal prison endangers the safety and security of inmates, guards, and visitors alike,” said U.S. Attorney Ryan K. Buchanan. “Jennifer Deramus, a correctional officer, was uniquely positioned to know those dangers and now faces significant prison time of her own.”
“Maintaining the secure environment of federal correctional facilities is key to the safety of staff, inmates, and the effort to deter future criminal conduct”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to the vigilant guards at USP Atlanta, Stoudemire and Deramus will be held accountable for their blatant criminal activity.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2019, Jennifer Deramus was a long-time correctional officer at a county jail in Prattville, Alabama. Her fiancée, Julius Stoudemire, was an inmate at USP Atlanta. On June 2, 2019, Deramus visited Stoudemire at USP Atlanta. After she went to the visitors’ restroom in the general population visiting room, she carried a cylindrical package to her seat across from Stoudemire. A guard watching the visitation area from a surveillance camera saw Deramus and Stoudemire acting unusually and sent another guard to investigate. Guards confiscated the package, and subsequent laboratory testing confirmed that the package contained methamphetamine. Deramus later made false statements to an FBI Agent about the events of that day.
Jennifer Deramus, 53, of Prattville, Alabama, was sentenced by U.S. District Judge Steven D. Grimberg to five years in prison, to be followed by four years of supervised release. On November 15, 2021, she was convicted by a jury of conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute a controlled substance, attempting to provide a prohibited object to a federal inmate, and aiding and abetting a federal inmate’s attempt to obtain a prohibited item.
Julius Stoudemire, 45, of Prattville, Alabama, was sentenced by Judge Grimberg to nine years and four months in prison, to be followed by three years of supervised release. On November 5, 2021, Stoudemire pleaded guilty to one count of attempting to obtain a prohibited object as a federal inmate.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Tal C. Chaiken and Phyllis Clerk prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Jury Convicts Ardmore Resident of Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Jonathan Ray Higginbotham, Jr, age 22, of Ardmore, Oklahoma was found guilty by a federal jury of Involuntary Manslaughter in Indian Country.
The jury trial began with testimony on Tuesday, May 17, 2022, and concluded on Thursday, May 19, 2022, with the guilty verdict.The evidence presented at trial proved that on January 19, 2021, the defendant fired a 9mm Hi-Point carbine killing George Powell in a private residence in the City of Ardmore.
The guilty verdict was the result of an investigation by the Federal Bureau of Investigation and the Ardmore Police Department.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant in this case is a member of a federally recognized Indian tribe and the crime occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Scott L. Palk, U.S. District Judge in the United States District Court for the Western District of Oklahoma in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Higginbotham was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Patrick Flanigan and Casey Richmond represented the United States.
Fayette County Woman Pleads Guilty to Being a Straw PurchaserRead the Press Release
BECKLEY, W.Va. – A Fayette County woman pleaded guilty to providing false information on a government form in order to acquire firearms.
According to court documents and statements made in court, on December 23, 2020, Terri Lawhorn, 27, of Fayetteville, bought three firearms: a Glock 44 .22-caliber pistol; a Glock 43 9mm pistol; and a Glock 42 .380-caliber pistol. Lawhorn admitted that she purchased the firearms for Bisheem Jones, also known as “Bosh,” who is separately charged in a pending gun trafficking conspiracy. Through an intermediary, Jones had given Lawhorn money to buy the firearms and told her which ones to buy from a gun dealer in Mount Hope, West Virginia.
Lawhorn purchased at least six firearms as part of the overall scheme. Each time Lawhorn bought firearms for Jones, she lied on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, Federal Firearms Transaction Records, certifying that she was buying the guns for herself when she knew they were for Jones.
Lawhorn is scheduled to be sentenced on September 2, 2022, and faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the ATF, which conducted the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
Lawhorn is among 13 individuals indicted in connection with their roles in a conspiracy to traffic over 130 firearms from the Beckley area to Philadelphia, Pennsylvania. More than 30 of the firearms have been recovered in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent offenses.
Co-defendant Arileah Lacy, also known as “Leah,” 24, of Beckley, pleaded guilty on April 22, 2022, to providing false information on an ATF form in order to acquire a firearm. The case remains pending against Jones and the other co-defendants. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-46.
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Dominican Republic Citizen Extradited to United States on Money Laundering ChargesRead the Press Release
NEWARK, N.J. – A citizen of the Dominican Republic who was extradited to the United States on money laundering charges made his initial appearance in New Jersey federal court, U.S. Attorney Philip R. Sellinger announced.
Jonathan Humeau-Hernandez, 41, is charged by indictment with five counts of money laundering and conspiracy to commit money laundering for his role in laundering millions in illegal cash drug proceeds from the United States to the Dominican Republic. Humeau-Hernandez was arrested in the Dominican Republic at the request of the United States on Feb. 20, 2022, and extradited to the United States. He had his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
Humeau-Hernandez was part of a criminal conspiracy that arranged to have large sums of cash drug proceeds in the United States laundered through the U.S. banking system and transferred to the Dominican Republic and elsewhere. From November 2018 through February 2020, Humeau-Hernandez coordinated with conspirators in New Jersey to pick up millions of dollars in cash drug proceeds and convert the cash into cashier’s checks or deposit the cash into accounts specified by Humeau-Hernandez so it could be transferred to other accounts. Humeau-Hernandez took these steps in order to conceal the nature, source, ownership, and control of the illegal drug proceeds and to avoid scrutiny by law enforcement and banking institutions.
The money laundering charges against Humeau-Hernandez carry a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the DEA Special Operations Division, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents of IRS Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; and the Morristown, New Jersey, Police Department, under the direction of Chief Darnell Richardson; with the investigation leading to the charges. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Humeau-Hernandez and his extradition to the United States. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 25 Years in Prison for Fatally Stabbing Woman in Northeast WashingtonRead the Press Release
WASHINGTON –Robert Dean, 64, of Washington, D.C., was sentenced today to 25 years in prison for fatally stabbing a woman with a screwdriver in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Dean was found guilty by a jury in November 2021 of second-degree murder while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Marisa J. Demeo.
According to the government’s evidence, on March 31, 2018, shortly before 5:04 p.m., Dean stabbed his former girlfriend, Tamiya White, 38, at her parking lot in the 1000 block of Mount Oliver Road NE before she drove herself to the local McDonalds to seek help. Ms. White’s two children were in the apartment at the time.
Dean was arrested on April 5, 2018. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the assistance provided by Bode Forensics and the FBI’s Cellular Analysis Survey Team (CAST). They also acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Emma McArthur and Eric Hansford; Chrisellen Kolb, Chief of the Appellate Division; Paralegal Specialists Grazy Rivera and Stephanie Siegerist; Investigative Analyst Zachary McMenamin; former Victim/Witness Advocate Marcia Rinker; Litigation Technology Specialist Taylor Davis; Forensic Child Interviewers Tracy Owusu and Karen Giannakoulias; Intern Lauren Rogers, and teams from the Victim/Witness Assistance Unit and the Litigation Technology Unit.
Finally, they commended the work of Assistant U.S. Attorneys Monica Trigoso and George A. Pace, who investigated and prosecuted the case.
Detroit Man Pleads Guilty to Fentanyl Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty to the distribution of a quantity of fentanyl.
According to court documents and statements made in court, Kyle L. Thomas, also known as “Trip,” 22, admitted to selling a quantity of fentanyl to a confidential informant in Amigo, Raleigh County, on October 18, 2021.
Thomas is scheduled to be sentenced on Sept. 2, 2022, and faces a maximum penalty of 20 years in prison, three years of supervised release and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the Beckley/Raleigh County Drug and Violent Crime Unit (BRCDVCU) and the Federal Bureau of Investigation (FBI) for conducting the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell 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-29.
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Defendants Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
This week, a federal judge in Greeneville, Tennessee, sentenced seven individuals and seven related corporate entities for their roles in a multimillion-dollar health care fraud scheme.
According to court documents and evidence presented at trial, Peter Bolos and his co-conspirators, Michael Palso, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
Peter Bolos was convicted by a federal jury in December 2021. Roix, Assad, Palso, Smith, Maikel Bolos, and various associated business entities pleaded guilty to their roles in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. U.S. District Judge J. Ronnie Greer imposed sentences this week for all of the defendants except Roix, whose sentencing hearing was rescheduled for June 15, 2022.
On May 16, the court sentenced Bolos to 14 years in prison and $2.5 million in forfeiture. On the same date, the court also sentenced Palso, 48, of Lutz, Florida, to 33 months in prison. Bolos and Palso also were each ordered to pay nearly $25 million in restitution.
On May 17, the court sentenced Smith, 52, of Tampa, to 42 months of imprisonment. The now-defunct corporate entities that Smith created, Alpha Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, ULD Wholesale LLC, and Tanith Enterprises, all were sentenced to pay nearly $25 million in restitution. The court also sentenced Taneja, 47, of Tampa, to 10 months of imprisonment and a $10,000 fine.
On May 18, the court sentenced Kapoor, 48, of Temple Terrace, Florida, to three years’ probation and a $10,000 fine. Sterling Knight, a now-defunct corporate entity that Kapoor and Taneja created, was sentenced to pay $21 million in restitution. The court also sentenced Maikel Bolos, 36, of Tampa, to 15 months of imprisonment and a $25,000 fine.
On May 19, the court sentenced Assad, 37, of Tampa, to 24 months of imprisonment and to pay nearly $25 million in restitution. HealthRight was sentenced to pay $4.25 million in restitution.
“The significant sentences imposed by the court reflect the seriousness of this large-scale fraud scheme, in which the defendants deceived consumers in order to facilitate the distribution of drugs without proper medical oversight, and overbilled insurers for illegal prescriptions,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes that violate the Food, Drug, and Cosmetic Act.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “These significant sentences should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentences in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
“Today’s sentencing holds the conspirators accountable for their reprehensible scheme that mislead patients and defrauded the federal government,” said Special Agent in Charge Amy K. Parker of OPM OIG. “The OPM OIG, along with our law enforcement partners, is committed to investigating individuals that seek to enrich themselves at the expense of patients, taxpayers, and the federal healthcare programs.”
Court documents and evidence at trial established that Bolos, Assad, and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. Evidence showed that to obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Evidence showed that Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial further established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed that Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices, and that Bolos, Palso, and Assad used illegal means to hide this activity from the PBMs so it could remain undetected.
The convictions resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
Defendants Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. This week, a federal judge in Greeneville, Tennessee, sentenced seven individuals and seven related corporate entities for their roles in a multimillion-dollar health care fraud scheme.
According to court documents and evidence presented at trial, Peter Bolos and his co-conspirators, Michael Palso, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
Peter Bolos was convicted by a federal jury in December 2021. Roix, Assad, Palso, Smith, Maikel Bolos, and various associated business entities pleaded guilty to their roles in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. U.S. District Judge J. Ronnie Greer imposed sentences this week for all the defendants except Roix, whose sentencing hearing was rescheduled for June 15, 2022.
On May 16, the court sentenced Bolos to 14 years in prison and $2.5 million in forfeiture. On the same date, the court also sentenced Palso, 48, of Lutz, Florida, to 33 months in prison. Bolos and Palso also were each ordered to pay nearly $25 million in restitution.
On May 17, the court sentenced Smith, 52, of Tampa, to 42 months of imprisonment. The now-defunct corporate entities that Smith created, Alpha Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, ULD Wholesale LLC, and Tanith Enterprises, all were sentenced to pay nearly $25 million in restitution. The court also sentenced Taneja, 47, of Tampa, to 10 months of imprisonment and a $10,000 fine.
On May 18, the court sentenced Kapoor, 48, of Temple Terrace, Florida, to three years’ probation and a $10,000 fine. Sterling Knight, a now-defunct corporate entity that Kapoor and Taneja created, was sentenced to pay $21 million in restitution. The court also sentenced Maikel Bolos, 36, of Tampa, to 15 months of imprisonment and a $25,000 fine.
On May 19, the court sentenced Assad, 37, of Tampa, to 24 months of imprisonment and to pay nearly $25 million in restitution. HealthRight was sentenced to pay $4.25 million in restitution.
“The significant sentences imposed by the court reflect the seriousness of this large-scale fraud scheme, in which the defendants’ deceived consumers in order to facilitate the distribution of drugs without proper medical oversight, and overbilled insurers for illegal prescriptions,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes that violate the Food, Drug, and Cosmetic Act.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “These significant sentences should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General. Northeast Area Field Office. “The sentences in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
“Today’s sentencing holds the conspirators accountable for their reprehensible scheme that mislead patients and defrauded the federal government,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “The OPM OIG, along with our law enforcement partners, is committed to investigating individuals that seek to enrich themselves at the expense of patients, taxpayers, and the federal healthcare programs.”
Court documents and evidence at trial established that Bolos, Assad, and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. Evidence showed that to obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Evidence showed that Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial further established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed that Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices, and that Bolos, Palso, and Assad used illegal means to hide this activity from the PBMs so it could remain undetected.
The convictions resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
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Current and Former DEA Agents Indicted for Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James F. Boyersmith, Special Agent-in-Charge of the Department of Justice Office of the Inspector General Miami Field Office, announced today that JOHN COSTANZO JR., a Drug Enforcement Administration (“DEA”) Special Agent, and MANUEL RECIO, a former DEA Assistant Special Agent-in-Charge, were indicted in Manhattan federal court with conspiracy to bribe a public official, conspiracy to commit honest services wire fraud, and honest services wire fraud, for a scheme in which RECIO funneled tens of thousands of dollars to COSTANZO in exchange for COSTANZO providing sensitive law enforcement information to RECIO to assist RECIO in recruiting clients for defense lawyers. In addition, COSTANZO was charged with accepting a bribe from RECIO and RECIO was charged with giving a bribe to COSTANZO. COSTANZO and RECIO were arrested today and presented before Magistrate Judge Barbara Moses. The case has been assigned to U.S. District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “The conduct alleged in the indictment violates the core duty of law enforcement officers to protect and serve the public, rather than to use their access to sensitive information to enrich themselves. As alleged, Manuel Recio provided substantial secret payments to John Costanzo Jr., and in exchange, received information about pending DEA investigations, sealed indictments, and impending arrests. It is critical for federal law enforcement officers to preserve the integrity of ongoing investigations and not divulge confidential information to the private sector in exchange for financial benefits.”
According to the Indictment unsealed today in Manhattan federal court:[1]
JOHN COSTANZO JR. is a DEA special agent currently assigned to DEA Headquarters and was a Group Supervisor in the DEA’s Miami Field Office until June 2019. MANUEL RECIO is a former DEA special agent who retired as the Assistant Special Agent-in-Charge for the Miami Field Office in November 2018. Upon his retirement, RECIO began operating his own business, which provided private investigative services to criminal defense attorneys and also helped defense attorneys to recruit clients. From around the time of RECIO’s retirement through around November 2019, RECIO agreed with COSTANZO to provide benefits to COSTANZO in exchange for COSTANZO providing RECIO with nonpublic information about DEA investigations. COSTANZO provided RECIO with information about forthcoming, sealed indictments and nonpublic investigations, such as the identities of individuals charged and the anticipated timing of arrests; and intelligence which COSTANZO obtained from the Narcotics and Dangerous Drugs Information System (“NADDIS”), a DEA database that contains information about individuals who are or have been under investigation by the DEA. RECIO paid COSTANZO for this information, which RECIO used to help recruit new clients for criminal defense attorneys.
As alleged in the Indictment, among the benefits paid to COSTANZO were a $2,500 payment made in November 2018, shortly after RECIO’s retirement from the DEA, which was funneled to COSTANZO through a company owned by a close family member of COSTANZO. At the same time that this payment was made, RECIO began asking COSTANZO to run searches in NADDIS to provide RECIO with nonpublic DEA information about DEA targets and investigations. Following that initial payment, RECIO and others continued to provide benefits to COSTANZO, including tens of thousands of dollars that were funneled from RECIO through a company created by a DEA task force officer, and $50,000 that was paid to COSTANZO through a close family member for COSTANZO’s purchase of a condominium in January and February 2019.
In return, COSTANZO continued to provide nonpublic DEA information to RECIO, including information about the timing of forthcoming indictments and information about DEA arrest plans of particular targets. COSTANZO also searched NADDIS for names of particular individuals requested by RECIO on dozens of occasions during the scheme, and provided RECIO with information and assistance with particular charged defendants represented by attorneys for whom REICO was working. During the scheme, COSTANZO and RECIO took steps to conceal the existence of the scheme, including by structuring the payments from RECIO to COSTANZO through third parties, and through COSTANZO’s use of a cellphone provided by RECIO for communications related to the scheme.
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COSTANZO JR., 47, of Arlington, Virginia, and RECIO, 53, of Miami, Florida, are each charged with one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, and one count of receiving or paying a bribe, respectively, which carries a maximum term of 15 years in prison. COSTANZO and RECIO are also charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which counts carries a maximum term of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the Department of Justice Office of the Inspector General, and thanked the DEA’s Office of Professional Responsibility for its support in this matter.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Thane Rehn and Sheb Swett are in charge of the prosecution.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Coordinadores De Alerta Amber De Estados De México Colaboran Para Mejorar Los Esfuerzos En La Recuperación De Menores Desaparecidos Y Secuestrados En MéxicoRead the Press Release
Merida, Mexico -- Coordinadores de Alerta AMBER de varios estados de México se reunieron en una conferencia de tres días en Mérida, Yucatán, para discutir y proporcionar actualizaciones sobre los avances en la implementación del sistema de Alerta AMBER. La Oficina Internacional para el Desarrollo de Sistemas de Procuración de Justicia (OPDAT) del Departamento de Justicia de EEUU, a través de la financiación de la Oficina de Asuntos Internacionales de Narcóticos y Aplicación de la Ley (INL), organizaron esta conferencia para mejorar tanto la utilización como la coordinación de la Alerta AMBER en todo el país y promover los objetivos del Marco del Bicentenario de Seguridad entre Estados Unidos y México. Expertos en la materia del departamento de U.S. Marshals, la Oficina Federal de Investigaciones (FBI) y el Centro Internacional para Niños Desaparecidos y Explotados participaron en este evento.
El sistema de Alerta AMBER se originó en los Estados Unidos en 1996 para difundir rápidamente información sobre menores desaparecidos y secuestrados. En 2012, OPDAT e INL se asociaron con el gobierno de México para lanzar el mismo sistema en México. México es el primer país de América Latina en adoptar el sistema de Alerta AMBER. Desde el inicio de la alerta se han recuperado 966 menores a nivel nacional.
Esta conferencia brindó a los coordinadores de Alerta AMBER la oportunidad de evaluar los éxitos y desafíos en su implementación del programa y promover mayor coordinación entre los estados y el gobierno federal. Un experto mexicano detalló cómo el análisis forense de ADN puede promover las investigaciones de personas desaparecidas. Asimismo, expertos en tecnología de compañías explicaron cómo se pueden aprovechar las redes sociales para compartir rápidamente información sobre menores desaparecidos. Incluso, participantes crearon un plan de acción para aumentar la coordinación y presentaron las mejores prácticas que se implementarán en sus respectivos estados.
La conferencia incluyó las palabras de apertura del Embajador Ken Salazar y Dorothy Ngutter, Cónsul General en Mérida. “Hemos visto que la red de Alerta AMBER ha sido de gran importancia para reunir a las familias. A su vez, ha fomentado la coordinación entre los dos países y nos permite avanzar en nuestros objetivos de seguridad, especialmente contribuyendo a la tranquilidad de nuestras naciones”, dijo el Embajador Salazar. ‘El trabajo que realizan a través de Alerta AMBER es crucial para actuar rápidamente y de manera coordinada para localizar a los menores desaparecidos’.
El objetivo de esta conferencia fue continuar institucionalizando la comunicación, la cooperación y la coordinación en casos que involucran a niños desaparecidos para promover la protección de las poblaciones vulnerables y contribuir a nuestra seguridad compartida. OPDAT continuará apoyando el uso de la Alerta AMBER y ofrecerá oportunidades de desarrollo de capacidades en México.
Para más información visite (www.alertaamber.gob.mx)
Cleveland Man Sentenced to 10 Years in Prison for Illegal Use of Firearms and Distributing a Substance Containing FentanylRead the Press Release
Oxford, MS – A Cleveland, Mississippi man was sentenced on Tuesday to 117 months in prison for his role in distributing a mixture and substance containing fentanyl and possessing a firearm during and in relation to a drug trafficking crime.
According to court documents, Davion Hunter a/k/a “D,” 38, previously pled guilty to two counts of an indictment charging that he aided and abetted the distribution of a substance containing fentanyl and that he possessed a firearm during and in relation to a drug trafficking crime. According to court documents and records, Hunter distributed narcotics to an FBI confidential informant, and also arranged for a third individual to sell heroin and multiple firearms to the same informant. Following that transaction, the DEA laboratory analyzed the substance sold as heroin and confirmed it contained fentanyl. On Tuesday morning, U.S. District Judge Sharion Aycock sentenced Hunter to almost 10 years in prison after hearing arguments and comments from Hunter, his counsel, and a prosecutor from the U.S. Attorney’s Office.
“The prosecution of individuals who illegally possess and use guns and who distribute illicit drugs has always been a priority in the United States Attorney’s Office for the Northern District of Mississippi,” remarked U.S. Attorney Clay Joyner. “These prosecutions are especially significant as we see an increase in the number of illicit controlled substances in our District that contain fentanyl and overdose deaths that result. The distribution of illegal narcotics is not a “victimless crime,” and this office remains committed to working with law enforcement partners to ensure that those who participate in the distribution of illegal narcotics in our community are held accountable for the full range of their illegal acts.”
FBI Special Agent in Charge Jermicha Fomby also commented on the sentence. " The FBI remains committed to collaboratively reducing the negative impact bad actors cause to the public through the distribution of illegal narcotics, as well as the use of unauthorized firearms in the furtherance of their crimes,” remarked Fomby. “The inclusion of fentanyl exponentially adds danger to the community which often ends in fatalities. The FBI will continue to aggressively investigate these matters in the same manner we brought Mr. Hunter to justice."
The FBI Jackson Division’s Oxford Resident Agency investigated the case as part of the Organized Crime Drug Enforcement Task Force (OCDEFT) and Project Safe Neighborhoods programs in partnership with state and local law enforcement. Multiple agencies played critical roles in the investigation, including the Cleveland Police Department, ATF, DEA, Mississippi Bureau of Investigation, and the Mississippi Highway Patrol.
Assistant U.S. Attorney Jay Hale prosecuted the case.
This operation was one of many parts 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.
Chicago Gang Member Sentenced to 35 Years in Federal Prison for Racketeering Offenses Including MurderRead the Press Release
CHICAGO — A member of a violent Chicago street gang has been sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included the murder of a rival gang member.
LUIS CONTRERAS, 42, of Chicago, pleaded guilty earlier this year to a federal charge of conspiracy to commit racketeering activity. U.S. District Judge Matthew F. Kennelly imposed the prison sentence Thursday 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; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Kavitha Babu.
Contreras admitted in a plea agreement that he was a member of the Latin Saints street gang, a criminal organization whose members and associates engaged in drug dealing and violence, including murder and assault, to acquire and preserve the gang’s territory in the Back of the Yards neighborhood on Chicago’s South Side. Contreras further admitted that on Feb. 18, 2018, he and other members of the Latin Saints fired multiple shots at rival gang members who were sitting in a vehicle in the 7700 block of South Kilbourn Avenue in Chicago’s Scottsdale neighborhood. The shots killed Andre Franzell, 23, and wounded another individual. Contreras admitted that the murder of Franzell was committed to further the purposes of the Latin Saints.
When Contreras was arrested at his home by federal law enforcement in October 2018, he was found in possession of two rifles and a handgun.
Charleston Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty to distribution of 50 grams or more of methamphetamine.
According to court documents and statements made in court, Caila Vance, 26, admitted to selling suspected methamphetamine to a confidential informant on February 8, 2022. The substance later tested positive as methamphetamine.
Vance is scheduled to be sentenced on September 15, 2022, and faces mandatory minimum of five years and up to 40 years in prison as well as at least four years of supervised release and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for conducting the investigation.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Steve Loew is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-57.
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