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17 June 2022
Federal Jury Convicts Louisville Attorney of Tax EvasionRead the Press Release
Louisville, KY – A federal jury convicted Keith Hunter today for engaging in tax evasion following a five-day trial held in the United States District Court for the Western District of Kentucky.
According to court documents and evidence presented at trial, Keith Hunter, 65, an attorney from Louisville, Kentucky, evaded the payment of federal income taxes, penalties, and interest due and owing by him to the United States, for the calendar years 2000, 2001, 2002, 2006, 2008, and 2011, totaling $1,124,620 by concealing assets in various ways. Among the methods Hunter used to conceal his assets from the United States Internal Revenue Service were storing personal income in a client escrow account, storing personal income in a nominee bank account, purchasing a home through a nominee as an alleged charitable donation, and by recycling cashier’s checks, which is the practice of engaging in a cycle of purchasing a cashier’s check, using a small portion of the check, and then purchasing another cashier’s check of lesser value. The evidence presented at trial showed that Hunter also intentionally provided false and misleading information regarding his assets and income to Internal Revenue Service civil collections personnel.
The jury found Hunter guilty of evasion of payment of tax in violation of Title 26, United States Code, Section 7201. Hunter faces a maximum penalty of five years in prison. There is no parole in the federal system. Hunter will be scheduled to appear before a federal district court judge who will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Bryant Jackson, of the Internal Revenue Service, Criminal Investigation made the announcement.
The Internal Revenue Service is investigating the case.
Assistant U.S. Attorneys Amanda E. Gregory and Joel King are prosecuting the case.
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Federal Jury Convicts Idabel Resident of Murder and Assault with A Dangerous Weapon in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Stewart Wayne Coffman, age 59, of Idabel, Oklahoma, was found guilty by a federal jury of Second-Degree Murder in Indian Country and Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country.
The jury trial began with testimony on Tuesday, June 14, 2022, and concluded on Thursday, June 16, 2022, with the guilty verdicts.
During the trial, the United States presented evidence that on October 5, 2017, Stewart Wayne Coffman murdered Joe Freeman Battiest Jr. with a metal pipe, at Coffman’s residence in Idabel, Oklahoma.
The guilty verdicts were the result of an investigation by the Idabel Police Department, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
Coffman was originally charged in October 2017 and convicted in October 2018 of First Degree Manslaughter in the District Court of McCurtain County, Oklahoma. Pursuant to the United States Supreme Court ruling in McGirt v. Oklahoma, the state conviction was reversed for lack of jurisdiction because the victim, Joe Freeman Battiest, Jr., was a member of a federally recognized Indian tribe and the crime occurred within the boundaries of the Choctaw Nation Reservation. Consequently, the defendant was charged and prosecuted in the United States District Court for the Eastern District of Oklahoma.
The Honorable Eric F. Melgren, U.S. District Judge in the United States District Court for the District of Kansas, sitting in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Coffman was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys William Cosner and Erin Cornell represented the United States.
Federal Charges Accuse Chicago Man of Shooting U.S. Marshal and K9 PartnerRead the Press Release
CHICAGO — Federal charges filed today accuse a Chicago man of shooting a Senior Inspector United States Marshal and his K9 partner during the execution of an arrest warrant earlier this month.
TARRION C. JOHNSON, 19, is charged with one count of using a dangerous and deadly weapon to assault the Senior Inspector U.S. Marshal and one count of discharging a firearm during a crime of violence. The firearm discharge count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life, while the assault charge is punishable by up to 20 years.
Johnson is currently in law enforcement custody. An initial appearance in federal court in Chicago has not yet been scheduled.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The U.S. Marshals Service provided valuable assistance. The government is represented by Assistant U.S. Attorney Sivashree Sundaram.
According to a federal criminal complaint, officers with the Great Lakes Regional Fugitive Task Force gathered to arrest Johnson on the afternoon of June 2, 2022, at his residence in the Portage Park neighborhood on Chicago’s Northwest Side. A state arrest warrant accused Johnson of attempted murder and attempted robbery.
After Johnson refused to comply with law enforcement’s commands to surrender, some of the officers forced entry into his residence, the federal complaint states. Johnson brandished a firearm at the officers, one of whom then fired a shot at Johnson, the federal complaint states. Johnson ran into a bedroom and fired approximately three shots through a window at the Senior Inspector U.S. Marshal and his K9 partner, who were standing outside in a rear alley, the charges allege. The Senior Inspector U.S. Marshal and his K9 partner were struck by bullets and suffered injuries.
Johnson then reemerged from the bedroom and shot at another officer in the residence, striking the officer’s ballistic shield, the complaint states. Johnson fled the residence and was arrested by law enforcement.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Fifth Venezuelan Pleads Guilty to Conspiracy to Possess Cocaine on Board a Vessel Subject to U.s. JurisdictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Carlos Rodriguez Garcia, 26, one of eleven Venezuelan nationals apprehended at sea off the coast of St. Croix, pleaded guilty before U.S. Magistrate Judge Emile A. Henderson, III to conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. The sentencing date for Garcia is scheduled for October 19, 2022. For his conviction, Garcia faces a mandatory minimum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter Donald Horsley intercepted a suspicious 55-foot vessel named La Gran Tormenta displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the La Gran Tormenta failed to respond to USCG’s efforts to engage in questioning of the crew, and upon detection, the La Gran Tormenta changed course and began jettisoning packages. Crew members from the USCG Cutter Donald Horsley subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick-shaped objects which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride.
After requesting and receiving permission to stop the vessel from the Venezuela, the flag state, USCG personnel attempted a right-of-visit boarding which was ineffective because crew on the La Gran Tormenta disregarded the USCG’s instructions. Eventually, USCG personnel obtained control of the La Gran Tormenta through use of an entanglement tactic which stopped the vessel’s engine. A USCG counter-drug boarding team later encountered 11 persons, including the defendants.
The case was investigated by the U.S. Coast Guard, Customs and Border Protection, and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Ellsworth Man Arrested on Child Pornography ChargesRead the Press Release
Bryan Ross, 25, from Ellsworth, Iowa, was arrested at his home yesterday on a federal arrest warrant by federal officials with the help of local law enforcement. Mr. Ross has been charged with five counts of child pornography offenses. The charges are contained in an Indictment filed on June 8, 2022, in United States District Court in Sioux City.
The Indictment alleges that, from about July 2019, through August 2021, Ross sexually exploited two minors, as well as received, possessed, and distributed child pornography.
If convicted on all charges, Ross faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, and at least five years of supervised release following any imprisonment.
Mr. Ross appeared in federal court in Sioux City today for an arraignment. He pleaded not guilty, and a jury trial is set to begin August 15, 2022. He is being detained until trial.
As with any criminal case, a charge is merely an accusation, and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Kraig R. Hamit and was investigated by Department of Homeland Security.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3016. Follow us on Twitter @USAO_NDIA.
Elkhorn Woman Sentenced to Five Years for EmbezzlementRead the Press Release
Acting United States Attorney Steven Russell announced that Kimberley Kaye Brummett, 59, of Elkhorn, Nebraska, was sentenced today by United States District Court Judge John M. Gerrard to a five-year term of imprisonment following her conviction for two counts of wire fraud. After she completes her prison sentence, Brummett will serve three years on supervised release. There is no parole in the federal system.
Brummett was a financial controller for Taste Traditions, a manufacturer of food products for organizations such as schools and for retail. Taste Traditions was acquired by Wald Family Foods in 2012. Both before and after it was acquired by Wald Family Foods, Brummett worked out of a Taste Traditions plant in Omaha, Nebraska. Wald Family Foods is owned by TOBA, Inc., a company headquartered in Grand Island, Nebraska. After the acquisition, Brummett’s new role entailed her working as the controller for three manufacturing facilities owned by Wald Family Foods, including the Taste Traditions facility located in Omaha. Brummett continued working for Taste Traditions until October 10, 2019, when her position was absorbed by TOBA, Inc.
Both before and after the acquisition, Brummett was engaged in a scheme to defraud Taste Traditions. GIX Logistics, Inc. is a business located in Grand Island that coordinates trucking services for companies. They provided services to TOBA, Inc. and Taste Traditions. Brummett was not associated with and has not worked for GIX Logistics, Inc. Brummett opened an account with Centris Federal Credit Union in Omaha under her name and doing business as “GIX Logistics,” but omitted the “Inc.” that is used by the real “GIX Logistics.” In the forms Brummett completed when she opened the account, the business was listed as a sole proprietorship owned by Brummett. Taste Traditions and Wald Family Foods did not enter into any contract to obtain products or services from the GIX Logistics entity created by Brummett and none were provided. Between 2013 and 2019, Brummett submitted numerous false invoices under the “GIX Logistics” name. Taste Traditions would then issue checks to pay the phony invoices and Brummett deposited those checks into the fake GIX Logistics account she created. Between 2013 and the end of her employment in 2019, Taste Traditions paid out a total of $1,666,128.13 to Brummett’s fictitious company. As part of her sentence, Judge Gerrard also ordered Brummett to pay restitution in that amount.
During the sentencing hearing, Judge Gerrard discussed how Congress and the United States Sentencing Commission have expressed a clear intent to punish white-collar offenders with prison sentences.
This case was investigated by the Federal Bureau of Investigation and the Nebraska State Patrol.
Eastern Shore Man Sentenced to Seven Years in Federal Prison for Possession of More Than 300 Grams of Crack Cocaine with Intent to DistributeRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Marcus Pitts, age 49, of Berlin, Maryland, today to seven years in federal prison, followed by three years of supervised release, for possession with intent to distribute crack cocaine.
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; and the members of the Worcester County Criminal Enforcement Team: Chief Ross C. Buzzuro of the Ocean City Police Department; Worcester County Sheriff Matthew Crisafulli; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Arthur R. Hancock of the Pocomoke City Police Department; and Chief Leo Ehrisman of the Ocean Pines Police Department.
According to Pitts’s guilty plea, in September 2018, members of the Worcester County Criminal Enforcement Team (WCCET) were investigating Pitts for suspected drug distribution. While conducting surveillance at Pitts’s residence investigators saw a suspected drug user go into the residence, come out a short time later, and then drive away. Investigators conducted a traffic stop of the individual and recovered a glass smoking pipe and a small amount of cocaine, which the person acknowledged he had just purchased from Pitts.
On September 14, 2018, members of the WCCET executed a search warrant at Pitts’s residence, where they recovered approximately 396 grams of crack cocaine, baking soda, a glass Pyrex dish, plastic baggies, an empty digital scale box, three cell phones, and $1,472 in U.S. currency. An additional cell phone was recovered from Pitts outside the residence. A subsequent search warrant of the cell phones revealed numerous text messages indicating that Pitts was involved in trafficking crack cocaine.
Pitts was released from state custody on bail on September 24, 2018. He was arrested on January 2, 2019 on a federal arrest warrant. At the time of his arrest, Pitts was in possession of a bag of crack cocaine, which he tried to throw away as police approached. Investigators also recovered a cell phone from Pitts’s vehicle. The cell phone was searched and was found to contain numerous text messages indicating that Pitts continued to distribute crack cocaine while he was released from state custody on bail.
United States Attorney Erek L. Barron commended HSI and the WCCET, comprised of the Ocean City Police Department, the Worcester County Sheriff’s Office, the Maryland State Police, the Pocomoke City Police Department and the Ocean Pines Police Department for their work in the investigation and thanked the Worcester County State’s Attorney’s Office for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Christina A. Hoffman and Darryl L. Tarver, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Defendant Pleads Guilty in Fentanyl Overdose Case Featured on HBO Documentary “the Crime of the Century”Read the Press Release
Assistant U. S. Attorneys Adam Gordon (619) 546-6720 and Galen Cheney (619) 546-7029
NEWS RELEASE SUMMARY—June 17, 2022
SAN DIEGO— Cole Thomas Salazar pleaded guilty in federal court today, admitting that he supplied a fatal dose of fentanyl that resulted in the death of a 24-year-old woman who was found inside her Vista apartment on November 3, 2020.
According to his plea agreement, Salazar used an online classified ads service to offer controlled substances for sale. After communicating online with the victim - identified in court documents by the initials S.E.F. - Salazar sold fentanyl to S.E.F. on November 2, 2020, and she subsequently died from ingesting the fentanyl.
On January 10, 2021, law enforcement officials arrested Salazar, who possessed packages of heroin and fentanyl when he was taken into custody. A search of his nearby hotel room located numerous quantities of controlled substances including more fentanyl and dealer-related paraphernalia such as scales, baggies, and pay and owe sheets.
The plea agreement stipulates for Salazar that the commission of the offense of distribution of fentanyl resulting in death and/or serious bodily injury applies. The investigation and arrest of Salazar and his co-defendant, Valerie Lynn Addison, was featured on the HBO show “The Crime of the Century.” Addison pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.
“We speak often about how counterfeit pills that contain fentanyl endanger our community members,” said U.S. Attorney Randy Grossman. “We can’t lose sight of the fact that powdered fentanyl – which caused the death in this case - is extremely dangerous. To those drug dealers who would sell fentanyl in all its forms: Know that federal law enforcement will hold you accountable for any deaths that your sales cause.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case and unfortunately, many others like it.
“The investigators on the DEA Overdose Response Team work tirelessly to identify and arrest people who cause fentanyl overdose deaths, such as Cole Salazar,” said DEA Special Agent in Charge Shelly S. Howe. “Our mission is to hold dealers accountable and to save lives. In this case, that mission was accomplished by arresting Salazar and seizing additional fentanyl that could have killed others.”
“These guilty pleas are the result of joint efforts between Homeland Security Investigations (HSI), DEA, the San Diego Sheriff’s Department, the San Diego County District Attorney’s Office and the U.S. Attorney’s office, working tirelessly to identify criminals who profit from selling lethal drugs in the San Diego community,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue to assist the DEA and our state and local partners to bring drug dealers to justice, while also aggressively pursuing drug cartels who smuggle dangerous drugs into the U.S.”
Salazar and Addison are scheduled to be sentenced on September 16, 2022, before U.S. District Judge Cathy Ann Bencivengo.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County. Investigators from the DEA Overdose Response Team led the investigation into S.E.F’s death.
DEFENDANTS Case Number 21cr3518-CAB
Cole Thomas Salazar Age: 32 San Diego, CA
Valerie Lynn Addison Age: 40 San Diego, CA
SUMMARY OF CHARGES
Salazar:
Possession with Intent to Distribute (Fentanyl) – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
Addison:
Possession with Intent to Distribute (Fentanyl and Methamphetamine) – Title18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
California Department of Health Care Services
San Diego Sheriff’s Department
San Diego Police Department
San Diego County District Attorney’s Office
Detroit Men Convicted of Numerous Federal Charges for a Large Drug Distribution Enterprise Targeting the Spirit Lake, Turtle Mountain and Fort Berthold Indian ReservationsRead the Press Release
FARGO – United States Attorney Jennifer Klemetsrud Puhl announced that on June 17, 2022, following a 12-day trial, a jury returned guilty verdicts on multiple counts against two men from Detroit, Michigan, for their leadership in a drug trafficking organization targeting three of North Dakota’s Native American Reservations.
Baquan Sledge, a/k/a Rell, a/k/a TJ, a/k/a Matthew Pierce, was convicted of Continuing Criminal Enterprise, Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, Possession with Intent to Distribute Oxycodone, and Maintaining a Drug-Involved Premise.
Darius Sledge, a/k/a Ace, a/k/a Man Man, a/k/a Frank Love, a/k/a Gary, a/k/a Bill, was convicted of Continuing Criminal Enterprise, Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, Possession with Intent to Distribute Oxycodone, and Maintaining a Drug-Involved Premise.
This case is part of "Operation Blue Prairie," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the multi-state trafficking of oxycodone.
The multi-agency investigation led by the Bureau of Indian Affairs Division of Drug Enforcement revealed that the Sledge defendants and their co-conspirators targeted areas with fewer law enforcement resources where they could distribute controlled substances at a premium price. The Sledge defendants and others used local residences and people for distribution and stash houses to further their criminal activities for monetary gain. In total, twenty-six defendants were charged in the case.
U.S. District Judge Daniel L. Hovland presided over the trial.
This case was investigated by the Bureau of Indian Affairs Division of Drug Enforcement, the Federal Bureau of Investigation, the Drug Enforcement Administration, Rolette County Sheriff’s Department, Bottineau County Sheriff’s Department, Ward County Narcotics Task Force, Lake Region Narcotics Task Force, Mandan Hidatsa Arikara Division of Drug Enforcement, North Dakota Bureau of Criminal Investigation, North Dakota Crime Laboratory, Michigan State Police, Minot Police Department, United States Department of Homeland Security Investigations.
The case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorneys Dawn Deitz and Lori Conroy assigned with the assistance of lead investigator Bureau of Indian Affairs Division of Drug Enforcement Special Agent Isaiah Soldier.
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Couple who Fraudulently Obtained Almost $743,000 in Paycheck Protection Program Loan Scheme Pleads Guilty in Federal CourtRead the Press Release
A Tulsa couple who fraudulently applied for approximately $2.7 million in Paycheck Protection Program Loans pleaded guilty this week in federal court, announced U.S. Attorney Clint Johnson. Paycheck Protection Program (PPP) loans are guaranteed by the Small Business Administration (SBA) under the CARES Act.TULSA, Okla. – A Tulsa couple who fraudulently applied for approximately $2.7 million in Paycheck Protection Program Loans pleaded guilty this week in federal court, announced U.S. Attorney Clint Johnson. Paycheck Protection Program (PPP) loans are guaranteed by the Small Business Administration (SBA) under the CARES Act.
William Mark Sullivan, 49, and his wife, Michelle Cadman-Sullivan, 42, each pleaded guilty to Conspiracy to Commit Bank Fraud this week. The plea agreements call for the defendants to pay restitution in the amount of $114,281.58 to Arvest Bank and $628,645.00 to Exchange Bank, totaling $742,926.58, which represents the proceeds illegally obtained by the defendants as a result of the offenses. A federal judge will determine appropriate sentences and restitution amounts at the defendants’ sentencing hearings, which will be scheduled by the court.
“The Sullivans applied for and secured numerous Paycheck Protection Program loans fraudulently,” said U.S. Attorney Clint Johnson. “The $743,000 was intended to go to legitimate small business owners who were fighting to serve our community. My office and our federal law enforcement partners will hold accountable anyone who seeks to illegally enrich themselves by misdirecting federal emergency assistance.”
“SBA OIG continues to safeguard SBA programs from persons seeking to fraudulently take advantage through falsified information,” said SBA OIG’s Central Region Special Agent in Charge Sharon Johnson. “Our office relentlessly pursues fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
In their plea agreements, the Sullivans stated that between April 8, 2020 and May 11, 2020, they conspired together to submit false statements and reports to Arvest Bank and Exchange Bank when they applied for numerous Paycheck Protection Program loans, totaling approximately $2.7 million. The Sullivans submitted false information, false W2s, false Form 941s and false 2019 IRS Schedule Cs (Form 1040) in six Paycheck Protection Program (PPP) loan applications. They further stated that they had knowingly certified all the information in the applications and supporting documents were true and correct when they knew the information to be incorrect. The couple admitted to transferring the $742,926.50 in funds they received through various bank accounts and using the funds for personal expenses.
Mr. Sullivan stated in his plea agreement that he had represented on applications that “Oklahoma Paving” had an average monthly payroll of $50,546.41 on April 8, 2020, and “USA-1 Construction” had an average monthly payroll of $143,483.00 on April 30, 2020.
Similarly, Mrs. Sullivan stated that in their PPP loan applications, she falsely represented that “U.S. Central Construction” had an average monthly payroll of $26,053.00 on April 28, 2020; “Oklahoma Energy” had an average monthly payroll of $279,101.66 on May 4, 2020; “Oklahoma Paving” had an average monthly payroll of $279,101.66 on May 4, 2020; and “Oklahoma Energy” had an average monthly payroll of $251,458.00 on May 11, 2020.
The indictment alleged the couple had misrepresented the number of businesses they owned and operated, addresses and locations of the borrowing companies, time during which the borrowing companies had purportedly been in operation, number of employees, names and addresses of employees, monthly payroll amount, wage figures, payroll taxes, and representations about how the PPP funds would be allocated. The couple submitted multiple applications for the same borrowing companies to both of the banks, without disclosing that they were submitting duplicative and overlapping applications.
“These pleadings demonstrate that those who defraud the federal government of pandemic relief funds will be vigorously pursued and held accountable for their actions,” said Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection.
The Small Business Administration Office of Inspector General, Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; U.S. Department of Treasury Inspector General for Tax Administration; and FBI conducted the investigation. Assistant U.S. Attorneys Cymetra M. Williams and Matthew Feeley are prosecuting the case.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Codefendants Sentenced to Ten Years Federal Prison for Firearm and Drug Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – Alexander Clifford Nelms, 43, and Jorvin Jermaine Cockran, 36, both of Miami, Florida, were convicted and sentenced to ten years in federal prison for their crimes. Nelms pled guilty to one count of possessing with intent to distribute more than 500 grams of cocaine on July 27, 2021, and was sentenced on November 15, 2021. Cockran was convicted at trial on February 11, 2022, of one count of possessing with intent to distribute more than 500 grams of cocaine and one count of possessing a firearm in furtherance of a drug trafficking crime and sentenced this week. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Concerted law enforcement partnerships like the Alachua County Drug Task Force serve a vital role in protecting our communities from armed drug traffickers,” said U.S. Attorney Coody. “These brave law enforcement officers place their lives in danger each day to remove firearms and addictive drugs from our streets. We remain vigilant to hold these criminals accountable.”
On January 20, 2021, a Gainesville Police Department officer assigned to the then Gainesville-Alachua County Drug Task Force’s Domestic Highway Enforcement Team conducted a traffic stop on a minivan for speeding. Nelms was identified as the driver and Cockran was the front seat passenger. The pair were travelling northbound on I-75 from Miami, Florida. While conducting his traffic enforcement duties the officer detected the odor of cannabis coming from the vehicle and received conflicting information from the subjects as to their travel plans. An Alachua County Sheriff’s Office Deputy who supervised the Domestic Highway Enforcement team arrived on scene as backup and deployed his narcotics detection canine partner to conduct an open-air sniff of the minivan. When the canine alerted to the odor of narcotics, officers detained Nelms and Cockran in the rear of a patrol vehicle and searched the minivan, ultimately locating one kilogram of cocaine in a gym bag between the driver and passenger seats, another two-ounce package of cocaine, some marijuana and THC cartridges, and two loaded firearms within ready reach and access of Cockran. Nelms attempted to claim the drugs while Cockran claimed the firearms, but conversation between the two of them in the rear of the patrol vehicle confirmed they were acting in concert to traffic in the cocaine.
"These sentences speak to the strength of the relationships we have with our local law enforcement partners as well as the dedication of the investigators, who work daily to ensure communities in northern Florida continue to be safe places to live,” said Drug Enforcement Administration Special Agent in Charge Deanne L. Reuter. “We will continue our collaborative efforts with our partners to ensure those who seek to harm our communities are brought to justice.”
“By collaborating with our partners on the local, state, and federal level, we will continue to make Alachua County a safe and welcoming community for all,” said Alachua County Sheriff Clovis Watson, Jr. “If you want to commit crimes, we are going to work together at every level to make sure criminals are held accountable.”
Nelms had multiple prior felony convictions, to include a prior trafficking in Roxicodone in the State of Florida. Nelms’ 10 years’ imprisonment will be followed by eight years of supervised release, and Cockran’s 10 years’ imprisonment will be followed by five years of supervise release.
“We are proud to have the Domestic Highway Enforcement Task Force working every day to take violent criminals off our highways,” said Acting Chief Lonnie Scott, Sr. “If you see one of these members on the highway, know that they are doing their best to keep our streets, community, and neighbors as safe as possible.”
This sentencing resulted from the collaborative work of the Gainesville Police Department, Alachua County Sheriff’s Office, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Chinook man sentenced to six years in prison for trafficking methamphetamine on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A Chinook man who admitted to trafficking methamphetamine on the Fort Belknap Indian Reservation was sentenced on June 16 to six years in prison to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
Kalled Sam Hassen Jaha, 39, pleaded guilty in March to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in March 2019, a Fort Belknap Law Enforcement police officer attempted a traffic stop of a vehicle that was speeding through a neighborhood on the reservation. After a short chase, the driver and passenger left the car and fled on foot. Multiple officers were unable to locate the individuals. Officers saw drugs and other items in the car, including a receipt with Jaha’s name printed on it, and impounded the car. Officers located Jaha the next day and detained him at the police station for questioning. While at the station, an officer noticed Jaha was chewing on a piece of paper and pulled it from mouth. The paper appeared to be pieces of a drug ledger. Jaha was charged with tribal offenses and released on bond. Two days later, officers attempted a traffic stop of a truck Jaha was driving. Jaha refused to pullover, and after a short chase, Jaha left the truck and fled on foot. Officers were unable to locate Jaha and impounded the truck. Tribal officers contacted the Tri-Agency Task Force, which knew Jaha was on state probation, and a state probation officer ordered a search of Jaha’s truck. During the search, officers found meth, miscellaneous pills, paraphernalia, two cellular phones and $685 in U.S. currency. A search warrant was served on the phone and law enforcement found text messages between Jaha and others that indicated Jaha intended to sell the meth.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the FBI, Tri-Agency Task Force and Fort Belknap Law Enforcement.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Chicago Man Charged in Federal Court with Trafficking More Than a Dozen GunsRead the Press Release
CHICAGO — A Chicago man has been arrested on federal firearm charges for allegedly trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in the city this year.
ANTHONY PEREZ-FLORES, 27, is charged with willfully dealing firearms without a license and illegally possessing firearms as a previously convicted felon. Perez-Flores was arrested Thursday. A detention hearing is set for June 22, 2022, at 1:30 p.m., before U.S. Magistrate Judge Young B. Kim.
The charges and arrest were 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 and Explosives; David Brown, Superintendent of the Chicago Police Department; and Thomas J. Dart, Cook County Sheriff. The government is represented by Assistant U.S. Attorney Jasmina Vajzovic.
According to a criminal complaint unsealed Thursday in U.S. District Court in Chicago, Perez-Flores sold 13 firearms on ten different occasions in Chicago this year. The transactions allegedly occurred in an alley in the Dunning neighborhood on the city’s Northwest Side. One of the firearms was considered a “ghost gun” because it contained no identifiable serial number and had been manufactured from parts collected from various sources. Another of the firearms was equipped with a machine gun conversion device, commonly known as a “switch,” allowing for multiple rounds to be fired with a single pull of the trigger. Unbeknownst to Perez-Flores, the individual to whom he sold the guns was an undercover law enforcement officer, the complaint states.
Perez-Flores was on parole for a state firearm conviction when he allegedly sold the guns to the undercover officer. As a previously convicted felon, Perez-Flores was prohibited by federal law from possessing a firearm.
Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a focus of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The illegal possession charge is punishable by up to ten years in federal prison, while the unlawful dealing charge carries a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
California Woman Sentenced to Five Years Imprisonment for Mailing Methamphetamine to LouisianaRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RACHEL CESARIO, age 43, of Riverside, California, was sentenced to five (5) years imprisonment on June 16, 2022 for using the mail for methamphetamine trafficking.
CESARIO pled guilty on December 8, 2021, to use of the mail in aid of racketeering, in violation of Title 18, United States Code, Section 1952(a)(3). According to court documents, CESARIO and her co-conspirators sold methamphetamine in multi-pound quantities. Law enforcement agents caught CESARIO and her codefendant, Allen Edgerson, mailing packages with multiple pounds of methamphetamine at a time to codefendant Sheon Copprue in New Orleans.
The Honorable Sarah S. Vance sentenced CESARIO to a term of imprisonment of five (5) years imprisonment, followed by two (2) years of supervised release, and a mandatory special assessment fee of $100. CESARIO’s codefendants, Sheon Copprue and Tonya Calvin, have already pled guilty in this case and are awaiting sentencing, and codefendant Allen Edgerson was previously sentenced to over 17 years for his role in the conspiracy.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
California Man Sentenced to 10 Years in Prison for Committing Multiple Robberies Including Several While on Pretrial ReleaseRead the Press Release
LAS VEGAS – A California resident was sentenced today by U.S. District Judge James C. Mahan to 10 years in prison followed by three years of supervised release for committing multiple robberies, including several while he was on pretrial release.
Spar Bilicki (30) pleaded guilty in March 2022 to one count of conspiracy to commit bank robbery; six counts of bank robbery; one count of conspiracy to commit interference with commerce by robbery; two counts of interference with commerce by robbery; and one count of commission of an offense while on release.
According to court documents, from October 26, 2020, to December 2, 2020, Bilicki and another person committed multiple robberies in Las Vegas and Henderson. In all of the robberies, Bilicki handed the victim bank teller or store employee a note that demanded money and also threatened to shoot people if the victim did not comply. In two of the robberies, he lifted his shirt to show a handgun in his waistband. After Bilicki made his initial appearance and once Bilicki was released from pretrial detention, he proceeded to commit three additional robberies on July 1, 2021 in Las Vegas.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorney Allison Reese prosecuted the case.
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Caldwell Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE - A Caldwell man pleaded guilty to distribution of methamphetamine.
According to court records, Jorge Armando Cervantes, 30, sold another person methamphetamine on two different occasions. On April 14, 2021, he sold approximately 29 grams of methamphetamine and on April 21, 2021, he sold approximately 54 grams of methamphetamine.
Cervantes is scheduled to be sentenced on September 19, 2022, and faces a statutory mandatory minimum sentence of at least five years and a maximum sentence of 40 years in federal prison, a five million dollar fine, and at least four years of supervised release. A federal district court judge will determine Cervantes’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and commended the investigation by the City County Narcotics Unit consisting of officers from the Caldwell Police Department and the Canyon County Sheriff’s office, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Butte nurse admits stealing opiates from medical centersRead the Press Release
MISSOULA – A Butte nurse accused of stealing opiates from multiple medical centers in the Butte-area community in 2021 admitted to criminal charges on June 16, U.S. Attorney Jesse Laslovich said today.
Shantyl Marie Giacoletto, 30, pleaded guilty to three counts of unlawfully obtaining controlled substances. Giacoletto faces a maximum of four years in prison, a $250,000 fine and one year of supervised release.
U.S. District Judge Dana L. Christensen presided. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 13. Giacoletto was detained pending further proceedings.
The government alleged in court documents that Giacoletto diverted opiates in 2021 while working at three medical centers in Anaconda, Butte and Deer Lodge. In June 2021, a Community Hospital of Anaconda manager reported the theft of oxycodone tablets from the hospital. The hospital’s records reflected the loss of 392 oxycodone pills over the past three months. The records showed that CHA nurse Giacoletto routinely pulled oxycodone from the pharmacy but did not document the administration of that drug to her patients. A review of 50 patient files showed that Giacoletto did this on 49 occasions. Several patients confirmed they never received that drug. When management confronted Giacoletto, she denied stealing controlled substances but quit shortly after the meeting. In an interview with an Anaconda Police Department detective, Giacoletto again denied any diversion and claimed the hospital was retaliating against her, criticized its training program and stated that another nurse would confirm the lack of documentation for the administration of drugs. The detective spoke with the nurse Giacoletto identified and other hospital employees. All advised they were required to record when controlled substances were given to patients and that it would be extremely rare for someone to fail to enter that information.
Another diversion occurred in October 2021 at Continental Care and Rehabilitation in Butte, where Giacoletto worked as a traveling nurse. Only three individuals, including Giacoletto, had access to narcotics at that time. The director provided records for the missing drugs, which included 26 hydrocodone and 80 oxycodone tablets. Several medication logs had been torn out, many drugs had been marked “destroyed” with no nurse signature as required and at least two patient files had been improperly altered. Management then announced a drug screening, and most nurses provided urine samples, which were all negative for the diverted drugs. Giacoletto did not submit to the drug test and did not return to work at that facility.
A third diversion occurred in November 2021 at The Ivy in Deer Lodge. The director of nursing advised that a drug count on Nov. 21, 2021 determined 52 oxycodone and 27 morphine tables were missing. And on Nov. 23, 2021, a drug count determined 115 oxycodone and 60 hydrocodone pills were missing. The director then requested urine samples from the staff working those dates. All complied and tested negative aside from Giacoletto, who initially refused and left the facility. Giacoletto’s employer then contacted her and instructed her to provide a sample. Giacoletto returned to the facility several hours later and requested a specific bathroom for the drug test. When she provided the sample, it was cold, and the result was inconclusive because the temperature was not within the approved testing range. In addition, patient logbooks for the two dates included pages that were crossed out, folded over and not signed as required by policy. Giacoletto was the only person with access to the medication cart on both days.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the Drug Enforcement Administration and the Anaconda Police Department.
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Brockton Man Sentenced to 30 Months in Prison for Role in South Shore Drug Distribution RingRead the Press Release
BOSTON – A Brockton man was sentenced on June 15, 2022 in federal court in Boston for his role in a drug trafficking conspiracy that spanned across the District.
Tony Goncalves, 24, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and three years of supervised release. In October 2021, Goncalves pleaded guilty to conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine, cocaine base, oxycodone and marijuana and possession with intent to distribute fentanyl, cocaine, cocaine base and marijuana.
In the fall of 2018, an investigation into a violent Brockton drug conspiracy led by Djuna Goncalves revealed that he worked with others, including his brothers Tony and Cody Goncalves, to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations at their family home in Brockton (Brockton base). The neighborhood surrounding the Brockton base has been the scene of numerous murders, shootings and other crimes of violence for several years.
During the investigation, intercepted conversations between Tony and Djuna Goncalves revealed that they conspired to distribute marijuana from the Brockton base, where in October 2018, an unidentified individual fired several shots at Djuna Goncalves. A subsequent search of the Brockton base resulted in the seizure of marijuana, packaging materials, scales, a kilo press, fentanyl, firearms and ammunition as well as documents in Tony and Djuna’s Goncalves’ names.
In all, 17 defendants, including Tony, Djuna and Cody Goncalves, were indicted as part of a wide-ranging drug trafficking conspiracy, of whom 15 have now been sentenced. Djuna and Cody Goncalves have each pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 30, 2022 and June 21, 2022, respectively.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Brenda Perez made the announcement. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Bloods Gang Member Sentenced to 25 Years for Two Murders and Other Violent CrimesRead the Press Release
Earlier today, in federal court in Central Islip, Dylan Cruz, a member of the Red Lane Gorillas “set” of the Bloods street gang, was sentenced by United States District Judge Joanna Seybert to 35 years in prison following his conviction on racketeering charges for his role in the July 2012 murder of Anthony Richard in Baldwin Harbor, the October 2014 murder of Ehrik Williams in Hempstead, the November 2010 attempted murder of a rival gang member in Roosevelt, and a several years’ long conspiracy to murder members of a rival “set” of the Bloods gang in Brooklyn. Cruz pleaded guilty to racketeering in December of 2021 along with co-defendant Richard Michel who is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“Dylan Cruz’s senseless, callous violence took the lives of two innocent young men and devastated their families, all because of suspected offenses against his fellow gang members and associates,” stated United States Attorney Peace. “The relentless efforts of this Office and our law enforcement partners resulted in Cruz being held accountable for these murders that went unsolved for years. Today’s sentence should send a message to all that violent actors will be held accountable for their criminal acts, no matter how long it takes.”
“The details of this years-long investigation make clear: The NYPD and our law-enforcement partners will never tolerate violent gangs and the havoc they wreak in our communities,” stated NYPD Commissioner Sewell. “Today’s sentencing reflects this defendant’s callous disregard for life, and reaffirms our commitment to rid our streets of violent criminals by holding them fully accountable for their actions. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Office of the FBI, the Nassau County Police Department, and everyone else who worked to make New York City safer for all the people we serve.”
According to court filings and statements made by the defendant at his guilty plea, between 2010 and 2021, Cruz, along with other members of the Red Lane Gorillas, engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn. Cruz conspired to kill members of the 5-9 Brims and on February 20, 2016, shot and seriously wounded a rival gang member and an innocent female bystander in Queens. On November 17, 2010, Cruz also shot a rival Crips gang member in Roosevelt that left the man paralyzed.
Cruz also engaged in extreme violence against anyone suspected of disloyalty or disrespecting his gang. On July 15, 2012, Cruz murdered Anthony Richard, whom he wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang. Cruz followed Richard to Baldwin Harbor, waited until he parked his car, and then fired 15 shots into Richard’s vehicle, killing him and seriously wounding a passenger.
Just over two years later on October 14, 2014, Cruz murdered Ehrik Williams in Hempstead in the mistaken belief that Williams had robbed one of his associates. Cruz walked up behind Williams in broad daylight and fired multiple shots at him, killing him.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Michael Maffei and Oren Gleich are in charge of the prosecution.
The Defendant:
DYLAN CRUZ (also known as “L Banga” and “Red Lane Banga”)
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-664 (S-3) (JS)
Bakersfield Resident Sentenced to 6 Years in Prison for Selling FentanylRead the Press Release
FRESNO, Calif. — Adrian Rodriguez Cardenas, 22, of Bakersfield, was sentenced today to six years in prison for conspiring to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 11, 2021, Cardenas negotiated with and sold to an undercover law enforcement officer counterfeit OxyContin/oxycodone pills containing fentanyl. Cardenas thereafter negotiated a second sale of pills to the undercover officer. On Jan. 19, 2021, co-defendant Keisean Rockmore, 27, also of Bakersfield, drove Cardenas and a third person to a fast-food restaurant parking lot in Bakersfield to meet with and sell to the undercover officer 1,000 fentanyl-laced pills for the negotiated price of $2,900. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the undercover officer during the transaction. Rockmore then fled in his vehicle with Cardenas and the other passenger to a nearby apartment complex, where they exited the vehicle and attempted to elude pursuing law enforcement officers. After law enforcement officers found and arrested Cardenas, Rockmore and the other accomplice at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.
On April 29, 2022, co-defendant Rockmore was sentenced to 21 months in prison for possessing with intent to distribute fentanyl.
This case was the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Christopher D. Baker and Justin J. Gilio are prosecuting the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Associate of Former Fall River Mayor Sentenced for Extorting Marijuana Vendor and Making False StatementsRead the Press Release
BOSTON – An associate and co-conspirator of the now-imprisoned former Fall River Mayor Jasiel F. Correia II was sentenced on June 15, 2022 in federal court in Boston for extortion and lying to federal agents about his role in assisting Correia to obtain money and property from local marijuana vendors.
David Hebert, 57, of Westport, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years of probation. Hebert was also ordered to pay a fine of $25,000 and a money judgement of $61,000. In September 2020, Hebert pleaded guilty to one count of extortion conspiracy, one count of extortion and one count of false statements.
Hebert conspired with Correia to extort a marijuana vendor for donations to Correia’s campaign in exchange for a non-opposition letter. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River.
Hebert handled the extortion for Correia and demanded that the marijuana vendor pay a total of $25,000 to Correia’s political campaign fund by purchasing $12,500 worth of fundraising tickets to two of Correia’s campaign fundraisers. Hebert also demanded that the vendor’s brother, who held a mortgage on one of Hebert’s properties, forgive the $61,000 mortgage balance owed by Hebert. As a result of the extortion, the marijuana vendor, his friends and his family members purchased the Correia fundraising tickets and his brother discharged the mortgage he held on Hebert’s property in exchange for the letter of non-opposition.
When interviewed by federal investigators in June 2019, Hebert falsely stated that he was not involved in the approval and opening of any marijuana dispensaries in Fall River and falsely stated that he had never acted as a financial conduit for Correia.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General, made the announcement. Assistant U.S. Attorneys David G. Tobin and Dustin Chao of Rollins’ Criminal Division prosecuted the case.
Arizona Man Sentenced to 15 Years for Methamphetamine Trafficking and Possession of a FirearmRead the Press Release
SYRACUSE, NEW YORK –Davonte Williams-Dorsey, 25, of Phoenix, Arizona, was sentenced today to serve a total of 180 months in prison for his conviction on charges of conspiracy to possess with intent to distribute a controlled substance (methamphetamine), possession with intent to distribute a controlled substance (methamphetamine), and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division. The Court also ordered Williams-Dorsey to serve a term of five years of supervised release following his incarceration.
Williams-Dorsey had been convicted of those charges following a four-day jury trial last year. The evidence at trial established that Williams-Dorsey conspired with others to bring 20 kilograms (approximately 44 pounds) of methamphetamine from Arizona to Syracuse, where it was to be sold. DEA Special Agents and other law enforcement officers arrested Williams-Dorsey in Syracuse on January 8, 2020, in possession of 20 kilograms of methamphetamine in an automobile. At the time of his arrest, Williams-Dorsey was carrying a loaded Taurus 9mm semiautomatic handgun in the waistband of his pants.
This case was investigated by the United States Drug Enforcement Administration (DEA), with the assistance of the Syracuse Police Department-Special Investigations Division, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and DEA Task Force Officers from the New York State Police, U.S. Department of Homeland Security ICE-ERO, the Oneida County Sheriff’s Department, and the City of Rome Police Department, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Alabama Defendant Convicted of Sex Trafficking and Offenses Tied to a Scheme to Compel Victims, Including a Minor, to Engage in ProstitutionRead the Press Release
A federal jury found defendant Lonnie Mitchell, 36, guilty of numerous offenses relating to the defendant’s involvement in coercing several victims, including a minor, to engage in prostitution over the course of several years. Following a five-day trial, the jury convicted the defendant of sex trafficking by force, fraud and coercion of five victims. The jury also found the defendant guilty of sex trafficking a minor, and three counts of coercing and enticing an individual to travel in interstate commerce for prostitution purposes. Two other defendants previously pleaded guilty.
According to the evidence presented in court, defendant Lonnie Mitchell targeted vulnerable victims who struggled with drug addictions, and then manipulated their drug addictions for his benefit. He increased the victims’ use of heroin and encouraged them to use it intravenously. He then did not provide heroin to the victims if they violated one of his many controlling rules or otherwise did not see enough commercial sex clients. Other consequences of violating defendant Mitchell’s rules or failing to provide him with sufficient money from prostitution included violence, threats of violence, and threats to send embarrassing information, photos, or videos to the victims’ loved ones. In addition, defendant Mitchell regulated the amount of food the victims could eat, when they could eat, and also confiscated their identity documents and credit cards all as part of his coercive scheme to control the victims.
Defendant Mitchell’s co-defendant and sister, Nettisia Mitchell, was aware of her brother’s scheme and facilitated it. Nettisia Mitchell had previously pleaded guilty to conspiracy to commit sex trafficking by force, fraud and coercion. According to court documents, Nettisia witnessed Lonnie’s violence against a victim yet harbored the victim and received the proceeds from the victim’s involvement in commercial sex. A third co-defendant, Donna Emmons, previously pleaded guilty to conspiracy to commit sex trafficking of a minor. Both Nettisia Mitchell and Emmons await sentencing. They face a maximum sentence of life in prison and mandatory restitution.
“Motivated by control, power and greed, this defendant targeted and recruited vulnerable victims who were struggling in life, and used their vulnerabilities and unspeakable violence to sell them over and over again for his own profit,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Sex trafficking and forced prostitution are heinous crimes that have no place in our society today. The Department of Justice remains committed to using our human trafficking laws to protect those who are the most vulnerable members of society and vindicate their rights.”
“Mitchell beat, threatened, manipulated and exploited his victims,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “He took advantage of their suffering and addictions to force them into prostitution and drug dealing, all for his own personal gain. The damage caused was not only physical, but also emotional. Undoubtedly, the victims will long be haunted by Mitchell’s actions. My office is committed to helping our law enforcement partners identify and prosecute those who prey on the young and vulnerable. I am grateful for today’s verdict and for the victims who told their stories during the trial. Because of their bravery, Mitchell will be held accountable for his crimes.”
“This verdict means Mitchell is facing justice for the many horrors that he inflicted upon his victim, in the name of profit,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thankfully, he will no longer be able to prey upon innocent children. This is another example of not only the great partnership HSI has with its law enforcement partners, but also the great work we do to protect our communities.”
Sentencing has not yet been scheduled in this matter. Defendant Mitchell faces a mandatory minimum sentence of 15 years for sex trafficking by force, fraud and coercion, and a maximum sentence of life. Restitution is also required under federal law.
Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division and U.S. Attorney Sandra J. Stewart for the Middle District of Alabama made the announcement.
This case was investigated by HSI, Alabama Law Enforcement Agency, Montgomery County Sheriff’s Office, and Montgomery Police Department. It is being prosecuted by Assistant U.S. Attorney J. Patrick Lamb for the Middle District of Alabama and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
16 June 2022
West Sacramento Man Pleads Guilty to Mail Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Philip Rich, 49, of West Sacramento, pleaded guilty today to one count of mail fraud and one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2019 and March 2021, Rich and co-defendant Kimberly Acevedo perpetrated a mail fraud scheme that involved theft of U.S. mail, identity theft, and unlawful possession of dozens of stolen bank cards. Generally, Rich and Acevedo obtained the personally identifiable information (PII) of victims and used that information to apply for new credit cards, debit cards, checkbooks, and other financial instruments to be sent to the victims’ real home addresses. The defendants then submitted change-of-address requests to USPS at www.usps.com using the victims’ PII. These change-of-address requests rerouted the victims’ mail to defendants’ shared home address, where they would open the mail and use its contents to make fraudulent purchases and cash fraudulent checks.
When federal agents executed a search warrant at defendants’ residence on Oct. 14, 2020, they seized dozens of notebooks filled with hundreds, if not thousands, of identity-theft victim PII. The notebooks were scattered throughout the house, though mainly located in defendants’ shared bedroom. In addition, agents recovered an envelope, labeled “ID Templates,” in the bedroom containing approximately 10-15 fake California Driver’s Licenses in the names of various victims, but featuring Rich and Acevedo’s photographs and fake authentication features. Agents also recovered the tools required to construct the fake IDs as well as a magstripe device. Further, agents recovered over 50 credit and debit cards in the home and approximately 40 checkbooks in victims’ names and in the names of Rich and Acevedo. In total, defendants’ scheme caused over $110,000 in actual and intended loss.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Yolo County Sheriff’s Office. Assistant U.S. Attorneys Denise N. Yasinow and Robert J. Artuz are prosecuting the case.
Rich is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Sept. 15, 2022. Rich faces a maximum statutory penalty of 20 years in prison for mail fraud and a mandatory consecutive sentence of two years in prison for aggravated identity theft. He faces a maximum fine of $250,000 on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges of mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices remain pending against Acevedo. The charges are only allegations; she is presumed innocent until and unless proved guilty beyond a reasonable doubt.
West Hartford Man Guilty of Heroin Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that U.S. District Judge Alvin W. Thompson today found DWAYNE THOMPSON, 37, of West Hartford, guilty of heroin trafficking offenses.
According to the evidence presented during a bench trial in Hartford, in July 2017, the Drug Enforcement Administration’s Hartford Task Force received information that Thompson’s associate, Jose Carrasquillo, was interested in acquiring heroin to distribute. Carrasquillo, working with Thompson, subsequently agreed to purchase three kilograms of heroin, for $42,000 per kilogram, from an undercover law enforcement officer posing as a heroin supplier. On August 22, 2017, Thompson and Carrasquillo, arriving in separate vehicles, met in South Windsor with an individual working with law enforcement to complete the transaction. Thompson was arrested after he was found in possession of a firearm and $126,200 in cash. Carrasquillo, who fled from the scene at a high rate of speed, surrendered to law enforcement two days later.
Judge Thompson found Dwayne Thompson guilty of one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of attempt to possess with intent to distribute one kilogram or more of heroin.
At sentencing, which is scheduled for September 9, Thompson faces a mandatory minimum term of imprisonment of 10 years and a maximum term imprisonment of life. Thompson, who had been released on bond, was remanded to the custody of the U.S. Marshals Service today.
On March 1, 2022, Carrasquillo, 36, of Wethersfield, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin. He is released on a $150,000 pending sentencing, which is scheduled for September 13.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Robert S. Ruff.
Vancouver Real Estate Developer Faces Federal Charges for Fraudulently Obtaining Covid-Relief Program Funds, Laundering ProceedsRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a real estate developer residing in Vancouver, Washington, and Lake Havasu, Arizona, with fraudulently obtaining Covid-relief program funds and laundering a portion of the proceeds.
Michael James DeFrees, 60, has been charged with wire fraud, bank fraud, and money laundering.
According to the indictment, between April 2, 2020, and April 4, 2022, DeFrees is alleged to have used two different business entities to illegally obtain under false pretenses Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans administered by the Small Business Administration (SBA). The EIDL and PPP programs, initially authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
To facilitate his scheme, DeFrees submitted multiple loan applications via two different banks headquartered in Washington State. In these applications, DeFrees indicated that he was the sole owner of two business entities—Gateway National Corporation, a construction company incorporated in Washington State, and Yacht Harbor, LLC, a real estate development company incorporated in Oregon—and that he, as the sole owner, had never been convicted of any criminal offense or placed on parole or probation. In reality, at the time he submitted these applications, DeFrees was serving a term of probation following a 2017 conviction in the Western District of Washington for falsifying records in a bankruptcy proceeding. After receiving the loan payouts, DeFrees laundered a portion of the proceeds using a third business entity.
DeFrees made his initial appearance in federal court today in the District of Arizona, where he was released and ordered to appear for further proceedings in the District of Oregon.
Wire and bank fraud are punishable by up to 20 and 30 years in federal prison, respectively. Money laundering is punishable by up to 10 years in federal prison.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the SBA Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The CARES Act is a federal law, enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Vallejo Woman Sentenced to over 3 Years in Prison for Wire Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Tamara Manuel, 52, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to three years and three months in prison for carrying out a fraudulent scheme that involved stealing the identities of severely disabled individuals to obtain federal tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from February 1999 through August 2015, Manuel worked at Sonoma Development Center (SDC), which was a large, state-run facility serving the needs of individuals with developmental disabilities. In her role at SDC, Manuel had access to SDC patients’ personal identification information, including Social Security Numbers and birthdates.
Manuel began stealing SDC patients’ identities in 2011 and filing fraudulent tax returns in their names. In the returns, Manuel falsified, among other things, the purported taxpayers’ employment, wages, tax withholdings, and dependents. She did so to claim exemptions, tax credits, and refunds the purported taxpayers were not due. For example, Manuel falsely represented in a tax return that an SDC patient made over $23,000 in annual income as a forklift driver, had a dependent, and was owed a child tax credit. In reality, the patient had no income or dependents and was severely disabled, requiring observation and care 24 hours a day.
In total, Manuel stole the identities of at least 18 SDC patients to file 33 fraudulent tax returns in which she claimed refunds totaling over $77,000. Based on those fraudulent returns, Manuel obtained almost $50,000 in refunds from the Internal Revenue Service.
In addition to SDC patients, Manuel also stole others’ identities to file fraudulent federal tax returns in her and her son’s names. Specifically, to maximize her and her son’s tax refunds, Manuel included false dependent information in their returns. For example, in her son’s return for the 2016 tax year, which Manuel filed, she used the names and Social Security numbers of two individuals she falsely claimed were her son’s nephews and dependents.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
United States and EU Foster Cooperation Against Ransomware AttacksRead the Press Release
Ransomware has become a global problem that requires cooperation on a worldwide level. Judicial experts and practitioners from the United States and the European Union participated in a two-day workshop in The Hague organized by the U.S. Department of Justice and Eurojust. The event aimed to share best practices and enhance collaboration in confronting ransomware attacks.
The event was opened by Eurojust President Ladislav Hamran and Assistant Attorney General Kenneth A. Polite, Jr. of the U.S. Department of Justice’s Criminal Division.
Assistant Attorney General Polite said: “Only by working together with key law enforcement and prosecutorial partners in the EU can we effectively combat the threat that ransomware poses to our society. I am confident that the U.S.-EU ransomware workshop will spur greater coordination and collaboration to address the ransomware threat.”
Eurojust President Hamran said: “There is no doubt that the scale, sophistication and impact of ransomware attacks is significant, affecting all sectors of the economy and society at large. We warmly welcome the opportunity to join forces with our U.S. colleagues in combating this form of crime. Through this week’s workshop, we are fostering closer cooperation not only between national authorities, but also between the public and the private sector. I am convinced that this will prove to be crucial in our efforts to protect our citizens against online and offline threats.”
The workshop, organized by the U.S. Department of Justice and Eurojust, brought together more than 100 prosecutors, law enforcement representatives and experts from the private sector and nongovernmental organizations, representing 27 countries. It took place on June 15 and 16 at Eurojust’s premises and online.
Participants attended a series of presentations and panel discussions on topics such as transnational cooperation on ransomware investigations, victim remediation, and prosecution of criminal organizations.
Attorneys from the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS), representatives from the FBI, the U.S. Secret Service, the U.S. Homeland Security Investigations (HSI), European Judicial Cybercrime Network, Eurojust’s Cybercrime Team and Europol’s European Cybercrime Centre shared their experiences, best practices, and lessons learned in directing an investigation to a successful outcome including collaborating with the tech and private sector. Law enforcement officers also discussed adversaries’ tactics and the latest investigative techniques.
Prosecutors additionally discussed relevant changes in the law, including issues related to electronic evidence, charging options, and cross-border considerations. Private sector and nongovernmental organization representatives included the CyberPeace institute, Microsoft and Bitdefender.
A recording of the opening remarks is available on the Eurojust YouTube channel at https://youtu.be/cQLTg0x5fhI for Assistant Attorney General Polite and https://youtu.be/3bfUvl4rZmc for Eurojust President Hamran.
Learn more about the Criminal Division’s International Computer Hacking and Intellectual Property (ICHIP) Program, jointly administered by the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training and CCIPS, here.
U.S. Attorney’s Office Joins Texoma Senior Citizens to Combat Elder Financial AbuseRead the Press Release
BONHAM, Texas – The U.S. Attorney’s Office is promoting World Elder Abuse Awareness in conjunction with the Department of Justice’s Elder Justice Initiative to help seniors in the Eastern District of Texas avoid falling victim to financial exploitation, announced U.S. Attorney Brit Featherston today.
The U.S. Attorney’s Office is participating in events through the summer to provide educational programming to seniors such as a presentation provided to residents of the Pecan Place Senior Apartments in Bonham. Assistant U. S. Attorney Camelia Lopez met with residents this morning to discuss prevalent fraud schemes targeting seniors and how to avoid them. Residents were also provided with tips for recognizing and avoiding scams and resources for reporting.
“Although we prosecute dozens of scammers each year, there are hundreds, if not thousands more we never know about,” said U.S. Attorney Brit Featherston. “Scammers are particularly skilled at tricking victims, often causing the victim to be embarrassed when they realize they have been duped and not report the crime. By educating our seniors we hope to spare them from this heartache. Preventing this crime is a lot easier than trying to investigate and get back the money!”
Earlier this year, a similar program was provided in coalition with the Texoma Council of Governments, Area Agency on Aging, at the Texoma Senior Center in Sherman. Groups or organizations that are interested in securing a speaker for their event should contact AUSA Lopez at the Plano U.S. Attorney’s Office at 972-509-1201.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
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Two Men Sentenced to 10 Years in Prison for Child Exploitation CrimesRead the Press Release
BECKLEY, W.Va. – Lawrence Lee Hart, 61, of Raleigh County, and Steven Alfred Bennett, 57, of Kanawha County, were each sentenced today to 10 years in prison for crimes involving the sexual exploitation of children. Both face 20 years of supervised release following their prison sentences and each must register as a sex offender.
According to court documents and statements made in court, Hart, of Glen Daniel, contacted another user on a dating app on October 1, 2021, who told Hart that she was only 13 years old and located in Beckley. After learning her age and that she was a virgin, Hart offered to teach her about sex. Over the next month, Hart engaged in extensive text and phone conversations with the girl during which he instructed her on masturbation, oral sex, and sexual intercourse. Hart also asked her to send him a sexually explicit image of herself and he sent her sexually explicit photographs of himself. On November 5, 2021, Hart was arrested when he went to meet the minor to engage in sexual activity. Hart pleaded guilty to attempted enticement of a minor to engage in illegal sexual activity.
Bennett, of Montgomery, admitted that he responded to a Craigslist ad in October 2020 from a woman allegedly located in Beckley. During their conversations, Bennett arranged to meet the woman in Beckley and pay $150 to engage in sexual activity with an 11-year-old girl who the woman had stated was her daughter. Bennett skipped the arranged meeting after he saw a local news story about a man getting arrested for responding to the same Craigslist ad. A subsequent search of Bennett’s home located computers that contained suspected child pornography, including an image of a prepubescent female that Bennett had received during a 2016 Skype conversation. Bennett pleaded guilty to receipt of child pornography.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Office, the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force, the FBI Child Exploitation and Human Trafficking Task Force, the West Virginia State Police, and the Kanawha County Sheriff’s Office.
United States District Judge Frank W. Volk imposed the sentences, citing the deplorable and horrendous conduct in each case. Assistant United States Attorney Jennifer Rada Herrald prosecuted the cases.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:21-cr-254 and 5:21-cr-20.
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Two Indicted for Distributing Cocaine in StocktonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Fidel Andrade, 33, of Stockton, and Neftali Castillo Montes, 40, a Mexican national residing in Stockton, charging them with conspiracy to distribute cocaine, distribution of cocaine, and unlawful use of a cellphone, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January and October of 2020, Montes sold an FBI confidential source over 9 ounces of cocaine. Andrade, who was working as a correctional officer at the time, was Montes’ cocaine supplier. Additionally, officers discovered an additional 2 ounces of cocaine during a search warrant executed at Andrade’s house on March 3, 2021.
This case is the product of an investigation by the California Department of Corrections and Rehabilitation, Customs and Borders Protection, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, and the Tracy Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, both Andrade and Montes face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Two Doctors and Their Medical Practice to Pay More than $181,000 to Resolve False Claims Act Liability Arising from Billing of “Sanexas” DevicesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Adam Teichman, DPM, Thomas Rocchio, DPM, R T Equity Holdings LLC (“R T Equity”), and PA Foot & Ankle Associates LLC (collectively, “PA Foot”) have agreed to pay $181,758 to resolve liability under the False Claims Act for the alleged improper billing of “Sanexas” devices.
Drs. Teichman and Rocchio are podiatrists and co-owners of PA Foot & Ankle Associates LLC, with office locations in Allentown, Easton, Northampton, and Lansford, Pennsylvania. From approximately September 2019 through March 2021, PA Foot submitted over 7,000 claims for payment to Medicare involving application of an RST Sanexas neoGEN-Series device (“Sanexas”), often billed with accompanying vitamin injections under various procedure codes (97012, 97016, 97032, 97112, G0283, and 99072) and injection codes (96372, J1955, J3411, J3415, J3420, and J3490).
Sanexas is an electric stimulation device marketed by RST Sanexas, Inc. (“RST”) to treat various forms of pain and other medical conditions. It consists of a large central unit and electrical leads that are temporarily affixed to the area being treated.
PA Foot principally used Sanexas treatment for patients suffering from diabetic neuropathy. Patients at PA Foot received treatment on an outpatient basis and typically received two treatments per week for twelve weeks, for a total of 24 treatments. Treatment times generally lasted approximately 30 to 40 minutes. In conjunction with Sanexas treatment, PA Foot injected patients with a vitamin blend. The United States contends that Medicare did not permit reimbursement of Sanexas or vitamin injections used in conjunction with Sanexas in the way in which PA Foot administered them. In particular, National Coverage Determination 160.7.1 states: “Electrical nerve stimulation treatments furnished by a physician in his/her office, by a physical therapist or outpatient clinic are excluded from coverage by § 1862(a)(1) of the Act.” Similarly, Local Coverage Determination (“LCD”) L35456 reinforces that “[t]he use of electrostimulation alone for the treatment of multiple neuropathies or peripheral neuropathies caused by underlying systemic diseases is not medically reasonable and necessary.” Other LCDs contain the same or similar statements, such as L35457, L37642, L35222, and L36850.
The United States Food and Drug Administration cleared Sanexas as substantially equivalent to a transcutaneous electrical nerve stimulator (“TENS”) in January 2003. Sanexas treatment was not FDA cleared for use in combination with vitamin injections, the vitamin blend was not FDA approved, and the vitamin blend was produced in bulk, rather than prescribed for individual patients.
The United States contends that vitamin injections used in conjunction with Sanexas treatment as PA Foot administered them do not fall under the limited coverage available for prescription drugs under Medicare Part B. Several LCDs reinforce that vitamin injections that act as nerve blocks are not medically reasonable and necessary, such as L35456, L35457, L37642, L35222, and L36850.
“Providers cannot blindly rely on a marketer’s advice or a medical billing service, especially when a healthcare billing scheme sounds too good to be true,” said U.S. Attorney Williams. “We would encourage anyone who may have been involved in similar billing to come forward voluntarily and self-disclose the misconduct.”
Williams continued, “we appreciate Drs. Teichman and Rocchio’s willingness to promptly negotiate a resolution in this matter, and we will continue working closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of the Inspector General, and U.S. Attorney’s Offices around the country to hold accountable those responsible for causing similar false claims to be submitted.”
“We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal healthcare programs,” said Chiquita Brooks-LaSure, Administrator of the Centers for Medicare and Medicaid Services. “Patient care and safety are top priorities for us, and every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of Sanexas and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This matter was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The investigation and settlement were handled by Special Assistant U.S. Attorney Eric S. Wolfish, Assistant U.S. Attorney and Civil Division Chief Gregory B. David, and Auditors Dawn Wiggins and Andrew Schobert.
Twin Cities House-Flipper Pleads Guilty to $3 Million Investor Fraud SchemeRead the Press Release
MINNEAPOLIS – A Twin Cities house-flipper has pleaded guilty to defrauding real estate investors out of more than $3 million, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2018 through December 2020, Suzanne Griffiths, 46, currently residing in Arizona, executed a scheme to defraud individuals by soliciting investments in her Minnesota-based house-flipping businesses. Griffiths was active in the house-flipping community and frequently attended seminars of a national real estate investment coaching program. Through these seminars, Griffiths networked with other individuals and pitched her own house-flipping businesses: Level 5 Properties, LLC; 45 North Investment Properties, LLC; and Our Town Properties. Griffiths frequently contacted seminar attendees about potential investment opportunities in properties owned by her companies. Griffiths promised investors various manners of repayment in return for investments. Griffiths frequently made material misrepresentations about the status of real estate projects, failed to take promised action, falsified documents, and misappropriated investments for her own use.
According to court documents, in November 2018, Griffiths solicited a $100,000 investment from an investor to finance the renovation of a property. Griffiths promised the investor that they would hold second position on the mortgage and falsely assured the investor that the necessary mortgage documents had been filed with the appropriate county. In reality, Griffiths never filed the documents and, as a result, the investor lost their entire investment.
According to court documents, in July 2020, Griffiths solicited a $70,000 investment from another investor. Months later, to facilitate the solicitation of a second investment for renovations of a property, Griffiths provided the investor with information, printed on title company letterhead, demonstrating the potential of the requested investment. The investor later contacted the title company and learned that Griffiths had altered the information provided by the title company to intentionally omit numerous preexisting encumbrances on the property. The investor lost their entire $70,000 from the first investment.
In total, Griffiths intentionally misappropriated at least $3,197,109.47 of investor funds.
Griffiths pleaded guilty today before U.S. District Judge Joan N. Ericksen to one count of wire fraud and one count of money laundering. A sentencing date has not been set.
This case is the result of an investigation led by IRS – Criminal Investigations and the United States Postal Inspection Service.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Tucson Man Sentenced to 30 Months for Firearms OffensesRead the Press Release
TUCSON, Ariz. – On Tuesday, Juan Carlos Rubio, 26, of Tucson, Arizona, was sentenced by U.S. District Judge John C. Hinderaker to 30 months in prison, followed by two years of supervised release. Rubio previously pleaded guilty to four counts of Conspiracy to Smuggle Goods from the United States, Smuggling Goods from the United States, False Statements in Connection with Acquisition of Firearm, and Aiding and Abetting False Statements in Connection with Acquisition of Firearm.
In early 2020, Rubio, a former Arizona Department of Corrections Officer, conspired with others to smuggle three firearms and 500 AK-type rifle magazines from the United States to Mexico. On January 18, 2020, Rubio also lied while purchasing a firearm from a licensed dealer, claiming on the required paperwork that he was buying the gun for himself, when he was actually purchasing it for someone else. On February 18, 2020, Rubio aided and abetted a third party in making a similar false statement to a licensed dealer while purchasing a firearm on Rubio’s behalf.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case, with assistance from Custom and Border Protection’s U.S. Border Patrol and Homeland Security Investigations. The United States Attorney’s Office, District of Arizona, Tucson handled the prosecution.
CASE NUMBER: CR-20-2526-TUC-JCH (EJM)
RELEASE NUMBER: 2022-097_Rubio# # #
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.Taos man sentenced to two years in prison for sexual abuse of a minorRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Elliott Romancito was sentenced to two years in prison. Romancito, 28, of Taos Pueblo, New Mexico, and an enrolled member of the Taos Pueblo, pleaded guilty on Nov. 3, 2021, to sexual abuse of a minor in Indian Country.
According to the plea agreement and other court records, in the early morning hours of Oct. 1, 2018, Romancito and the victim, identified as Jane Doe, left a party together. Rather than driving Jane Doe home, Romancito drove her to another location on the Taos Pueblo and had sex with her. Jane Doe, an enrolled member of the Taos Pueblo, was 15 years old at the time of the abuse.
Upon his release from prison, Romancito will be subject to five years of supervised release and must register as a sex offender.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorneys Elisa Dimas and David Cowen prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Statement from U.S. Attorney Rachael S. Rollins on the Acquittal of Amin KhouryRead the Press Release
Although we respect the jury’s verdict, we are disappointed. The government believes that the conduct and facts in this case warranted Mr. Khoury’s prosecution. Despite today’s verdict, this investigation, as well as the dozens of successful “Varsity Blues” prosecutions, have resulted in enormous and systemic changes in the college admissions process. These cases writ large have exposed the disturbing, improper, and inequitable role that wealth and privilege can play in distorting a system that is supposed to be merit based.
St. Paul Man Sentenced to Prison for $841,000 COVID-Relief Scheme to Defraud the Small Business Administration’s Paycheck Protection ProgramRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 81 months in prison followed by three years of supervised release for fraud, money laundering, and aggravated identity theft in connection to a more than $840,000 covid-relief fraud scheme, announced United States Attorney Andrew M. Luger.
According to court documents, Kyle William Brenizer, 33, was the owner and manager of True-Cut Construction LLC (“True-Cut”), a contracting and construction company located in Brooklyn Park. In August 2018, True-Cut and Brenizer were ordered by the Minnesota Department of Labor and Industry to cease and desist from doing business. In December 2019, True-Cut’s contractor license expired and was never renewed.
According to court documents, on May 1, 2020, Brenizer submitted a false and misleading Paycheck Protection Program (PPP) application in the name of True-Cut seeking approximately $841,000, but the application was denied. On May 12, 2020, Brenizer again submitted a false and misleading PPP application in the name of True-Cut seeking approximately $841,000 in PPP funds. This time, in order to conceal his role in submitting a fraudulent application, Brenizer submitted the application under the name of another individual whom Brenizer falsely claimed was the 90 percent owner of True-Cut. Brenizer further falsely stated that True-Cut’s average monthly payroll was $336,400 for approximately 30 employees. In support of both loan applications, Brenizer caused to be submitted to the lender fraudulent supporting documentation, such as falsified bank statements and IRS documents. In addition, Brenizer falsely certified that he was not subject to any pending criminal charges even though he was named in multiple felony charges pending in the State of Minnesota, including check forgery, identify theft, and theft by swindle. Due to these various misrepresentations and omissions, on May 13, 2020, Brenizer’s second application was approved, and he received $841,000 in PPP funds.
According to court documents, instead of using the PPP funds for authorized business expenses, such as payroll, Brenizer transferred approximately $650,000 to a bank account unrelated to True-Cut and made a $29,000 payment to purchase a Harley-Davidson motorcycle, among other impermissible expenditures and transactions.
Brenizer was sentenced today in U.S. District Court before Judge Eric C. Tostrud. On January 31, 2022, Brenizer pleaded guilty to one count of wire fraud, one count of money laundering, and one count of aggravated identity theft.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case is the result of an investigation conducted by IRS – Criminal Investigations, the FBI, the Federal Deposit Insurance Corporation – Office of Inspector General, and the Small Business Administration – Office of Inspector General.
Assistant U.S. Attorneys Matthew S. Ebert and Allison K. Ethen prosecuted the case.
St. Louis County man sentenced to 10 years in prison for drug crimesRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Thursday sentenced a St. Louis County man to 10 years in prison for drug and gun crimes.
Bryant Taylor, 31, sold oxycodone, heroin and fentanyl to an undercover Drug Enforcement Administration agent and a person working for the DEA in August and September of 2019.
On March 28, 2020, St. Louis Metropolitan Police Department officers saw what appeared to be a drug transaction, and officers found fentanyl, cocaine base and a 9mm Taurus handgun in a Mercedes Benz with Taylor.
On Oct. 1, 2020, after Taylor was charged in St. Louis Circuit Court and a U.S. Marshals task force went to his home to arrest him, they found fentanyl, $12,795 in cash, a Glock 19 handgun with a drum magazine, a Kel-Tec rifle, a Kimber .45-caliber handgun and drug paraphernalia. Taylor admitted selling fentanyl and cocaine base and admitted that the cash came from drug sales, his guilty plea says.
Taylor pleaded guilty in March to possession of a firearm in furtherance of a drug trafficking crime, possession with intent to distribute fentanyl and distribution of fentanyl and heroin.
The Drug Enforcement Administration, the U.S. Marshals Service, and the St. Louis Metropolitan Police Department conducted the investigation.
St. Albans Man Sentenced to Nearly 20 Years in Prison for Role in Kanawha County Methamphetamine TraffickingRead the Press Release
CHARLESTON, W.Va. – A St. Albans man was sentenced today to 19 years and seven months in prison, to be followed by five years of supervised release, for two counts of possession with intent to distribute methamphetamine.
According to court documents and statements made in court, Shane Kelly Fulkerson, 46, participated in a drug trafficking ring operating in and around St. Albans from March 2021 until September 2021. Fulkerson admitted that he distributed large quantities of methamphetamine that he obtained from out-of-state.
Fulkerson further admitted to selling more than 100 grams of methamphetamine to an informant on three occasions in July and August 2021. On August 11, 2021, Fulkerson fled on a motorcycle from law enforcement officers in Poca, Putnam County. He was arrested after dropping the motorcycle in a private yard near Winfield and fleeing on foot. Police recovered 95 grams of methamphetamine, a loaded pistol, and more than $70,000 from Fulkerson’s backpack. The next morning, law enforcement executed a search warrant at Fulkerson’s St. Albans residence and seized more than 8 pounds of methamphetamine and approximately 22 firearms as well as several vehicles that were used to facilitate drug trafficking or were purchased with drug proceeds.
This case is part of a long-term investigation of methamphetamine distribution that resulted in 17 individuals being charged with various drug and firearm offenses in three separate indictments. Fulkerson and 13 others pleaded guilty: Ramon David Alston, James Edward Bennett III, Treydan Leon Burks, Jonathan Gregory Bush, Kaitlyn Brooke Combs, Kelly Cordle, Denise Marie Cottrill, Brittany Frances Gilbert, Angie Lane Harbour, Scott Edward Hudson, Jason Robert Oxley, Michael Antonio Smith, and Brian Dangelo Terry. Timothy Wayne Dodd was convicted on March 24, 2022, following a two-day jury trial. Douglas Jonathan Wesley and Leo Antoine Smith were convicted on May 26, 2022, following a three-day jury trial. Dodd, Wesley and Smith are scheduled to be sentenced in August.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Charleston Police Department, the Kanawha and Putnam County Sheriff’s Departments, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Metropolitan Drug Enforcement Network Team (MDENT).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Joshua Hanks and Alex Hamner prosecuted the case.
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-171, 2:21-cr-172, and 2:21-cr-211.
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Six Defendants Plead Guilty to Scheme to Transport Stolen Catalytic Converters Across State LinesRead the Press Release
SPRINGFIELD, Mo. – Six Springfield, Mo., and Rogersville, Mo., residents have pleaded guilty in federal court to their roles in a scheme to transport tens of thousands of stolen catalytic converters across state lines as part of a multi-million-dollar business.
Evan Marshall, 24, of Rogersville, pleaded guilty today before U.S. District Judge M. Douglas Harpool to one count of transporting stolen property across state lines.
Six of the seven defendants indicted in this case have now pleaded guilty. Co-defendants Cody Ryder, 30, Enx Khoshaba, 29, Leslie Ice, 37, and Eric Kaltenbach, 37, all of Springfield, and Camren Joseph Davis, 25, of Rogersville, have pleaded guilty to their roles in a conspiracy to transport stolen property across state lines.
By pleading guilty today, Marshall admitted that he transported stolen catalytic converters, valued at $1 million or more, across state lines from December 2019 to October 2021. Marshall also admitted that he bought tens of thousands of stolen catalytic converters directly from his co-defendants and from other thieves, and sold the stolen catalytic converters for a total of approximately $1 million.
Marshall began selling the catalytic converters to a company in Mountain Home, Arkansas, in the fall of 2019. At that time, Marshall would purchase junk vehicles and sell the vehicles’ parts, including the catalytic converters. In the late fall of 2019, the owners of the Mountain Home company asked Marshall if he would begin purchasing catalytic converters in southwest Missouri and sell to them exclusively. Marshall agreed to do so; in return, they regularly provided Marshall with cash so that Marshall had the funds to purchase a higher volume of catalytic converters. They also provided Marshall with a list of valuable catalytic converters. By December 2019, Marshall had mostly ceased buying junk vehicles and scrapping them out for parts, and instead began purchasing already-detached catalytic converters from scrap yards and individual sellers.
By January 2020, the owners of the Mountain Home company were wiring Marshall hundreds of thousands of dollars on a monthly basis so that Marshall could purchase a higher volume of detached catalytic converters.
By December 2019, Marshall had also enlisted Davis to work for him and another company, which Marshall also established in December 2019. Davis’s job was to purchase catalytic converters using cash that Marshall provided him. During that time period, Marshall provided Davis with hundreds of thousands of dollars in cash to purchase catalytic converters on Marshall’s behalf. As part of the arrangement, Davis exclusively sold the catalytic converters he purchased to Marshall. On at least one occasion, Marshall provided Davis with $40,000 in cash for the purchase of catalytic converters on Marshall’s behalf.
Davis admitted that he bought at least 1,500 stolen catalytic converters from various thieves and sold them to Marshall for a total of approximately $250,000. In July 2020, a Springfield Police Department detective contacted Davis regarding his purchase of catalytic converters from individuals known to be thieves. Despite being put on notice that he was purchasing catalytic converters from thieves, Davis continued to purchase stolen catalytic converters.
In February 2021, Marshall enlisted Ryder to work for him and his company. As with Davis, Ryder’s job was to purchase catalytic converters using cash that Marshall provided him. From February 2021 through October 2021, Marshall provided Ryder with hundreds of thousands of dollars in cash to purchase catalytic converters on Marshall’s behalf. As part of the arrangement, Ryder exclusively sold the catalytic converters he purchased to Marshall. On at least one occasion, Marshall provided Ryder with $10,000 in cash for the purchase of catalytic converters on Marshall’s behalf.
Ryder admitted that he bought at least 1,500 stolen catalytic converters from thieves and sold them to Marshall for an aggregate amount of approximately $250,000.
Many of the catalytic converters that Davis and Ryder purchased with the cash Marshall provided them were stolen, and Marshall knew at the time that many of them were stolen. Marshall paid Davis and Ryder an agreed-upon percentage amount over their purchase price for the catalytic converters, less the amount of cash Marshall had fronted them.
From December 2019 through October 2021, in addition to utilizing Davis and Ryder as buyers of stolen catalytic converters, Marshall also purchased stolen catalytic converters directly from thieves. In July 2020, a Springfield, Mo., police detective contacted Marshall regarding the purchase of catalytic converters from individuals known to be thieves. Despite being put on notice that he was purchasing stolen catalytic converters, Marshall continued to purchase stolen catalytic converters, including from at least one of the individuals identified by the detective.
Marshall admitted that he knowingly purchased stolen catalytic converters from co-defendants Davis, Ryder, Ice, Kaltenbach, Khoshaba, and at least six other thieves. Marshall transported and sold almost all of the catalytic converters, including the stolen catalytic converters, to the owners of the Mountain Home business.
Marshall, Davis, Ryder and others loaded the catalytic converters, including the stolen catalytic converters, into bins that were placed on trailers at Marshall’s residence. They hauled the trailers, which each contained between 800 and 1,200 catalytic converters, many of which were stolen, from Rogersville to Mountain Home. Marshall transported catalytic converters from Rogersville to Mountain Home approximately every two weeks from December 2019 through October 2021.
Under the terms of today’s plea agreement, Marshall must forfeit to the government $125,651, 33 rifles, 20 scopes, six shotguns, 26 handguns, a Glock sub conversion kit, eight ammunition magazines, a 2011 Ram 3500 one-ton pickup, a 2004 Dodge Ram, a flat bed trailer, two 42-foot gooseneck flat bed trailers, a 16-foot livestock trailer, a 2021 Load N Go utility trailer, a 2007 car hauler trailer, a Volkswagen dune buggy, two Harley Davidson motorcycles, a 2012 Keystone 5th wheel camper, a Caterpillar skid steer, a 2019 Honda Talon SXS 1000 side by side, a 2016 Polaris RZR side by side, a Polaris Ranger 4x4, and 191 catalytic converters, all of which was seized by law enforcement. Marshall must also pay the government a money judgment in an amount to be determined by the court at sentencing.
Khoshaba admitted that he stole at least 60 catalytic converters from victims in Springfield and elsewhere between March 2021 and October 2021. Khoshaba then sold the stolen catalytic converters to co-conspirators for a total of at least $15,000.
Ice admitted that he stole at least 50 catalytic converters from victims in Springfield and elsewhere between October 2020 and March 2021. Ice then sold the stolen catalytic converters to co-conspirators for a total of at least $20,000.
Kaltenbach admitted that he stole at least 80 catalytic converters from victims in Springfield and elsewhere between January 2021 and September 2021. Ice then sold the stolen catalytic converters to co-conspirators for a total of at least $20,000.
When Khoshaba first began stealing catalytic converters, Ryder drove him around the Springfield area and pointed out to Khoshaba places to steal catalytic converters, such as a truck lot, as well as the types of vehicles that had valuable catalytic converters. Marshall provided Ice with a list of vehicles, by year, make, and model, that had valuable catalytic converters so that he could target specific vehicles from which to steal catalytic converters.
Marshall provided Ice with blades for the reciprocating saws that he used to cut the catalytic converters from his victims’ vehicles. Marshall also paid Ice’s bond in January 2021 so that Ice would be released from custody and continue to steal catalytic converters.
Khoshaba, Ice, and Kaltenbach stole catalytic converters by cutting the catalytic converter from the victim’s vehicle’s exhaust system using a battery-powered reciprocating saw. After they cut the catalytic converter from the victim’s vehicle, they sent a photograph of the stolen catalytic converter to Marshall, Davis, or Ryder by text message. They used the numbers imprinted on the catalytic converter to value the stolen catalytic converter, then responded by texting the price they would pay for the stolen catalytic converter.
In July 2021, Kaltenbach stole a catalytic converter from a victim’s car in Rogersville and was captured on surveillance footage, which was published on social media. When Kaltenbach went to sell the stolen catalytic converter, Marshall would not purchase it because he had seen the surveillance footage and was upset with Kaltenbach for stealing a catalytic converter in the town in which he lived. Marshall instructed Kaltenbach to not steal catalytic converters in Rogersville; after this incident, Kaltenbach did not steal catalytic converters from vehicles in Rogersville but continued to steal catalytic converters from victims’ vehicles in Springfield. At times, Kaltenbach sold five or six stolen catalytic converters per transaction.
Under federal statutes, Marshall is subject to a sentenced of up to 10 years in federal prison without parole. Each of the other six defendants is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Shannon T. Kempf, Megan W. Chalifoux and Nhan D. Nguyen. It was investigated by the Springfield, Mo., Police Department, Homeland Security Investigations, IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Webster County, Mo., Sheriff’s Department, the Missouri Department of Revenue and the Greene County, Mo., Prosecuting Attorney.
Organized Crime Drug Enforcement Task Forces
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Salem Man Indicted for Possession of a MachinegunRead the Press Release
CONCORD –Kyle Morris, 22, of Salem was indicted by a federal grand jury on Monday and charged with one count of possession of a machinegun, United States Attorney Jane E. Young announced today.
Morris was arrested in Salem on Thursday, June 16, 2022 and will have his initial court appearance at 3:45 pm today.
The indictment alleges that on February 16, 2022, Morris possessed two machineguns in violation of federal law.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation, the New Hampshire State Police and the Salem Police Department.
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Russian Botnet Disrupted in International Cyber OperationRead the Press Release
Assistant U. S. Attorney Jonathan I. Shapiro (619) 546-8225
NEWS RELEASE SUMMARY – June 16, 2022
SAN DIEGO – The U.S. Department of Justice, together with law enforcement partners in Germany, the Netherlands and the United Kingdom, have dismantled the infrastructure of a Russian botnet known as RSOCKS which hacked millions of computers and other electronic devices around the world.
A botnet is a group of hacked internet-connected devices that are controlled as a group without the owner’s knowledge and typically used for malicious purposes. Every device that is connected to the internet is assigned an Internet Protocol (IP) address.
According to a search warrant affidavit, unsealed today in the Southern District of California, and the operators’ own claims, the RSOCKS botnet, operated by Russian cybercriminals, comprised millions of hacked devices worldwide. The RSOCKS botnet initially targeted Internet of Things (IoT) devices. IoT devices include a broad range of devices—including industrial control systems, time clocks, routers, audio/video streaming devices, and smart garage door openers, which are connected to, and can communicate over, the internet, and therefore, are assigned IP addresses. The RSOCKS botnet expanded into compromising additional types of devices, including Android devices and conventional computers.
“The RSOCKS botnet compromised millions of devices throughout the world,” said U.S. Attorney Randy Grossman. “Cyber criminals will not escape justice regardless of where they operate. Working with public and private partners around the globe, we will relentlessly pursue them while using all the tools at our disposal to disrupt their threats and prosecute those responsible.” Grossman thanked the prosecution team, the FBI and the Department of Justice Criminal Division’s Computer Crimes and Intellectual Property Section for their excellent work on this case.
“This operation disrupted a highly sophisticated Russia-based cybercrime organization that conducted cyber intrusions in the United States and abroad,” said FBI Special Agent in Charge Stacey Moy. “Our fight against cybercriminal platforms is a critical component in ensuring cybersecurity and safety in the United States. The actions we are announcing today are a testament to the FBI’s ongoing commitment to pursuing foreign threat actors in collaboration with our international and private sector partners.”
A legitimate proxy service provides IP addresses to its clients for a fee. Typically, the proxy service provides access to IP addresses that it leases from internet service providers (ISPs). Rather than offer proxies that RSOCKS had leased, the RSOCKS botnet offered its clients access to IP addresses assigned to devices that had been hacked. The owners of these devices did not give the RSOCKS operator(s) authority to access their devices in order to use their IP addresses and route internet traffic. A cybercriminal who wanted to utilize the RSOCKS platform could use a web browser to navigate to a web-based “storefront” (i.e., a public web site that allows users to purchase access to the botnet), which allowed the customer to pay to rent access to a pool of proxies for a specified daily, weekly, or monthly time period. The cost for access to a pool of RSOCKS proxies ranged from $30 per day for access to 2,000 proxies to $200 per day for access to 90,000 proxies.
Once purchased, the customer could download a list of IP addresses and ports associated with one or more of the botnet’s backend servers. The customer could then route malicious internet traffic through the compromised victim devices to mask or hide the true source of the traffic. It is believed that the users of this type of proxy service were conducting large scale attacks against authentication services, also known as credential stuffing, and anonymizing themselves when accessing compromised social media accounts, or sending malicious email, such as phishing messages.
As alleged in the unsealed warrant, FBI investigators used undercover purchases to obtain access to the RSOCKS botnet in order to identify its backend infrastructure and its victims. The initial undercover purchase in early 2017 identified approximately 325,000 compromised victim devices throughout the world with numerous devices located within San Diego County. Through analysis of the victim devices, investigators determined that the RSOCKS botnet compromised the victim device by conducting brute force attacks. The RSOCKS backend servers maintained a persistent connection to the compromised device. Several large public and private entities have been victims of the RSOCKS botnet, including a university, a hotel, a television studio, and an electronics manufacturer, as well as home businesses and individuals. At three of the victim locations, with consent, investigators replaced the compromised devices with government-controlled computers (i.e., honeypots), and all three were subsequently compromised by RSOCKS. The FBI identified at least six victims in San Diego.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Jonathan I. Shapiro of the Southern District of California and Ryan K.J. Dickey, Senior Counsel for the Department of Justice Criminal Division’s Computer Crimes and Intellectual Property Section. The Department of Justice extends its appreciation to the authorities of Germany, the Netherlands, and the United Kingdom, the Justice Department’s Office of International Affairs and private sector cybersecurity company Black Echo, LLC for their assistance provided throughout the investigation.
In September 2020, FBI Director Christopher Wray announced the FBI’s new strategy for countering cyber threats. The strategy focuses on imposing risk and consequences on cyber adversaries through the FBI’s unique authorities, world-class capabilities, and enduring partnerships. Victims are encouraged to report the incident online with the Internet Crime Complaint Center (IC3) www.ic3.gov.
Romanian National Involved in ATM Skimming Scheme is SentencedRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NICOLAE MARIUS BARBU, 50, a citizen of Romania, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 21 months of imprisonment for his participation in an extensive ATM skimming scheme that defrauded banks in Connecticut and elsewhere.
According to court documents and statements in court, between February and June 2017, a Connecticut bank experienced approximately 35 incidents of ATM skimming at locations in Stratford, Monroe, Trumbull, Greenwich, Fairfield and elsewhere in Connecticut. As part of the scheme, conspiracy members placed skimming devices at the ATMs to capture account numbers and personal identification numbers (“PINs”) from customers who used their ATM cards at the ATMs while the devices were in place. Conspiracy members then used the captured information to make substitute ATM cards, and obtained money and made purchases using those cards. Barbu joined this conspiracy in April 2017.
In addition, in April 2018, Barbu and another individual stole credit cards from an individual’s belongings at a gym in Rockville, Maryland. They then used the cards to make more than $9,000 in purchases at Microsoft and Apple stores in Maryland.
Judge Shea ordered Barbu to pay restitution of $139,533 to the victim bank, and $9,536 to the banks that issued the credit cards used for his fraudulent purchases.
Barbu was arrested in Michigan in September 2020. He subsequently pleaded guilty and was sentenced in Michigan for state offenses related to credit card theft and possession of forged identification.
On March 25, 2022, Barbu pleaded guilty in federal court to one count of conspiracy to commit bank fraud.
Barbu, who has been detained since his arrest, faces immigration proceedings when he completes his prison term.
This investigation was conducted by the Connecticut Financial Crimes Task Force, U.S. Secret Service, Greenwich Police Department, Monroe Police Department, Homeland Security Investigations (HSI), and several local police departments. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
Richlands Salon Owner Pleads Guilty to Defrauding Federal GovernmentRead the Press Release
ABINGDON, Va. – A Richlands, Virginia woman, who owned and operated a local hair and nail salon, pled guilty this week to defrauding the federal government out of pandemic unemployment assistance benefits and committing mail fraud.
Mandi Dawn Hammond, 36, waived her right to be indicted and pled guilty this week to one count of fraud in connection with a major disaster or emergency benefits program and one count of mail fraud.
“As the world faced a once-in-a-generation global pandemic, Congress and the President passed sweeping legislation to assist businesses and individuals in surviving economic upheaval,” United States Attorney Christopher R. Kavanaugh said today. “These programs were designed as a safety net for those in need, not as a get-rich-quick scheme for those looking to commit fraud. I am continually grateful for the work of our local, state, and federal law enforcement for pursuing these important prosecutions.”
“Mandi Hammond continued to fraudulently take taxpayer assistance to enrich herself during a time of national crisis that was meant to help people who truly needed it,” said IRS-Criminal Investigation Special Agent in Charge, Darrell Waldon, of the Washington, D.C. Field Office. “This is yet another example of IRS-CI’s commitment to work with our partners and pursue those who commit COVID-19 related fraud and bring them to justice.”
According to court documents, Hammond owned and operated Jama Nail Beauty Bar & Gift Shop in Richlands, Virginia. After an executive order signed in March 2020 by the Governor of Virginia closed all close-contact salons, Hammond closed her business for approximately six weeks.
On April 19, 2020, Hammond filed an application for pandemic unemployment assistance via the Virginia Employment Commission website where it was reviewed, processed, and approved. For approximately six weeks, she legitimately received pandemic unemployment assistance as intended by the government.
In May 2020, the executive order closing all close-contact salons was lifted and Hammond reopened her business. However, she continued filing weekly certifications to receive pandemic unemployment benefits from May 2020 through August 2021, each week reaffirming fraudulent representations that she was still unemployed because of COVID-19. Court records indicate Hammond received at least $29,154 in funds to which she was not entitled.
Hammond is scheduled to be sentenced on September 15, 2022. The charges with which she has been convicted carry a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS-Criminal Investigations Division and the Russell County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Daniel J. Murphy 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 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.
Owner and Operator of Telemedicine and Telemarketing Companies Sentenced to 14 Years for $20 Million Fraud Scheme and $4 Million Tax EvasionRead the Press Release
Miami, Florida – A Florida man was sentenced today to 14 years in prison for health care and wire fraud that cost Medicare more than $20 million dollars, and for evading taxes.
According to court documents, Marc Sporn, 59, of Delray Beach, owned and operated several telemarketing and telemedicine companies, including CPL Media Group Inc. Medipak, LLC, Real Time Physicians LLC, 24 HR Virtual MD LLC, Medtech Worldwide Inc., New World Holdings Inc., and Ins Cov LLC. Sporn used these companies to market medically unnecessary genetic tests to Medicare beneficiaries, and to sell prescriptions (i.e., doctors’ orders) for medically unnecessary genetic tests to laboratories in exchange for kickbacks and bribes. Sporn knew these laboratories would use these doctors’ orders to bill Medicare for medically unnecessary goods and services.
Through nominee owners, Sporn also operated and controlled Palm Beach companies Medi Biotech LLC and Walmol Holdings LLC. Sporn used Medi Biotech to market compounded prescription creams to customers with certain health conditions. Pharmacies and laboratories associated with Medi Biotech filled the prescriptions, billed the customers’ insurance companies, and paid Sporn kickbacks. In addition to opening bank accounts for Medi Biotech in nominee names, Sporn opened accounts in the name of Walmol Holdings, a shell corporation, and in 2014 and 2015, avoided paying over $1.6 million in personal income taxes by diverting millions through the company’s accounts. Sporn used these company accounts to purchase luxury items such as high-end watches and diamond jewelry, classic and exotic cars, two yachts, and other items. Sporn also evaded paying over $2.5 million in personal income taxes for other years dating back to 2000. When the IRS attempted to collect back taxes from Sporn, he tried to conceal assets by transferring property to trusts and individuals and by repeatedly opening and closing companies, among other things. In addition to the prison term, Sporn was ordered to pay more than $4 million in restitution to the IRS.
U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Field Division; and Special Agent in Charge Matthew D. Line of IRS-Criminal Investigation (IRS-CI), Miami Field Office announced the sentence.
The FBI’s Miami Field Office, HHS-OIG, and IRS-CI investigated the case.
Assistant U.S. Attorney Aurora Fagan for the Southern District of Florida, along with Trial Attorneys Ligia Markman and Reginald Cuyler of the Criminal Division’s Fraud Section, prosecuted the case.
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.
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Owner and Operator of Telemedicine and Telemarketing Companies Sentenced to 14 Years for $20 Million Fraud Scheme and $4 Million Tax EvasionRead the Press Release
A Florida man was sentenced today to 14 years in prison for health care and wire fraud that cost Medicare more than $20 million dollars, and for evading taxes.
According to court documents, Marc Sporn, 59, of Delray Beach, owned and operated several telemarketing and telemedicine companies, including CPL Media Group Inc. Medipak, LLC, Real Time Physicians LLC, 24 HR Virtual MD LLC, Medtech Worldwide Inc., New World Holdings Inc., and Ins Cov LLC. Sporn used these companies to market medically unnecessary genetic tests to Medicare beneficiaries, and to sell prescriptions (i.e., doctors’ orders) for medically unnecessary genetic tests to laboratories in exchange for kickbacks and bribes. Sporn knew these laboratories would use these doctors’ orders to bill Medicare for medically unnecessary goods and services.
Through nominee owners, Sporn also operated and controlled Palm Beach companies Medi Biotech LLC and Walmol Holdings LLC. Sporn used Medi Biotech to market compounded prescription creams to customers with certain health conditions. Pharmacies and laboratories associated with Medi Biotech filled the prescriptions, billed the customers’ insurance companies, and paid Sporn kickbacks. In addition to opening bank accounts for Medi Biotech in nominee names, Sporn opened accounts in the name of Walmol Holdings, a shell corporation, and in 2014 and 2015, avoided paying over $1.6 million in personal income taxes by diverting millions through the company’s accounts. Sporn used these company accounts to purchase luxury items such as high-end watches and diamond jewelry, classic and exotic cars, two yachts, and other items. Sporn also evaded paying over $2.5 million in personal income taxes for other years dating back to 2000. When the IRS attempted to collect back taxes from Sporn, he tried to conceal assets by transferring property to trusts and individuals and by repeatedly opening and closing companies, among other things. In addition to the prison term, Sporn was ordered to pay more than $4 million in restitution to the IRS.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George Piro of the FBI’s Miami Field Office; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Field Division; and Special Agent in Charge Matthew D. Line of IRS-Criminal Investigation (IRS-CI), Miami Field Office announced the sentence.
The FBI’s Miami Field Office, HHS-OIG, and IRS-CI investigated the case.
Trial Attorneys Ligia Markman and Reginald Cuyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aurora Fagan for the Southern District of Florida prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Operation Bear Trap Targets Drug Trafficking in the South Lake Tahoe AreaRead the Press Release
SACRAMENTO, Calif. — During a coordinated law enforcement operation this morning, law enforcement agents and officers executed three search warrants and arrested four defendants in South Lake Tahoe and Sacramento, U.S. Attorney Phillip A. Talbert announced.
The following defendants were arrested today with a criminal complaint for their participation in trafficking methamphetamine and heroin in and around South Lake Tahoe:
Sarah Anderson, 32, of South Lake Tahoe; Fabian Gomez, 33, of South Lake Tahoe; Epifanio Ramirez, 47, of South Lake Tahoe; and
Joaleen Rogers, 53, of South Lake Tahoe.The arrests were made as part of a continuation of Operation Bear Trap that began in 2020 to address the growing problem of methamphetamine distribution in South Lake Tahoe. Four additional defendants were charged last August with multiple drug and gun trafficking crimes as part of the same operation. Over the course of the operation, law enforcement agencies have interdicted methamphetamine, heroin, and numerous firearms, including “ghost” pistols and assault rifles (firearms manufactured without serial numbers, making them harder for law enforcement to trace). Today’s searches resulted in the recovery of a barn owl, which are a protected species under the Migratory Bird Treaty Act.
To date 36 individuals have been arrested in connection to Operational Bear Trap in California and Nevada on state and federal charges related to drug and firearms trafficking.
This case is the product of an investigation by the Federal Bureau of Investigation, the South Lake Tahoe Police Department, the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the Douglas County Sheriff’s Office, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Oakdale Man Pleads Guilty for His Role in Multi-Million Dollar Health Care Insurance Fraud SchemeRead the Press Release
MINNEAPOLIS – An Oakdale man has pleaded guilty for his role in a multi-million dollar insurance fraud scheme. Okwuchukwu Emmanuel Jidoefor, 38, along with multiple co-conspirators, participated in a scheme to defraud automobile insurance companies by recruiting patients, staging accidents, and receiving illegal kickbacks, announced U.S. Attorney Andrew M. Luger.
Jidoefor’s role was a “runner,” someone who solicited individuals who had been in car accidents to attend treatments at co‑conspirator clinics, including Healthcare Chiropractic, Meyer Injury Center, and Morrow Accident Rehabilitation Center.
Jidoefor pleaded guilty on June 14, 2022, before Senior U.S. District Judge Michael J. Davis to one count of mail fraud. A sentencing hearing is scheduled for July 27, 2022.
This case was a part of a larger investigation that ultimately resulted in charges against 26 individuals across seven separate metro-area chiropractic practices. Including this latest conviction, 24 of those individuals have either pleaded guilty or been found guilty following a trial.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Chelsea A. Walcker and David J. MacLaughlin are prosecuting the case.
Multi-Kilogram Cocaine Distributor Sentenced to 10 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Luis Raul Perez Rodriguez (50, Orlando) to 10 years in federal prison for conspiracy to distribute cocaine. Perez Rodriguez had pleaded guilty on March 28, 2022.
According to court documents, on January 21, 2022, Perez Rodriguez had arranged to receive a shipment of three parcels containing 19 kilograms of cocaine, valued at an estimated $570,000, through a delivery service from an address in Puerto Rico to an apartment in Orlando. On January 19, 2022, security specialists at the delivery service company detected the cocaine shipment and reported the parcels to the Drug Enforcement Administration. On January 21, 2022, an undercover officer, working with the DEA posed as a delivery driver and delivered a fake package to the address listed on the shipment. Perez Rodriguez was in the parking lot of his apartment and identified himself with the fake name associated with the parcels and showed the delivery driver that he was tracking the progress of the shipment on his phone. Perez Rodriguez was apprehended as the driver loaded two of the three packages into Perez Rodriguez’s vehicle. Additional evidence linked Perez Rodriguez to seven suspected kilogram-quantity shipments of cocaine from Puerto Rico to Orlando that were delivered as early as 2018.
This case was investigated by the Drug Enforcement Administration with assistance from the Orange County Sheriff’s Office and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Multi-Agency Investigation Takes Down Meth Distribution RingRead the Press Release
WACO – A multi-agency investigation into a methamphetamine distribution ring has led to multiple defendants being indicted and arrested.
On June 14, 2022, a federal grand jury sitting in Waco handed down five indictments charging a total of 27 defendants.
The following defendants were each charged with one count of conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. According to the indictments the conspiracy began in January 2021.
Charged in W22CR095: Jason Fletcher, 38, of Belton and Luis Guillermo Martinez, 28, of Waco. If convicted, Fletcher and Martinez face up to life in prison.
Charged in W22CR096: Karen Pendola Bennett, 45, of Waco; Jesus Espinoza Lopez, 33, of Waco; Patricia Nelson, 49, of Waco; Robert Johnson, 46, of Woodway; and Clayton Wilkins, 62, of Waco. If convicted, Bennett, Lopez, Nelson and Johnson face up to life in prison. Wilkins, if convicted, faces up to 40 years in prison.
Charged in W22CR109: Alejandro Solis, 32, of Waco; Jesus Castellanos-Renteria, 39, of Houston; Gustavo Alvarado Guerrero, 29, of Waco; William Charles Herrera, 30, of Waco; Maria Picon, 35, of Clifton; Rogers Anthony Marshall, 49, of Valley Mills; Denecia Alley, 32, of Waco; Jovita Ibarra, 28, of Waco; Lance John Showen, 51, of Waco; Hector Dominguez, 31, of Waco; Nicholas Ray Ramirez, 41, of Waco; Flocelo Mondragon Jr., 35, of McGregor; Alfred Turner, 28, of Waco; Areli Martinez Torrez, 38, of McGregor; Alexxus Briann Arocha, 26, of Waco; Felix Alberto Huezo-Hernandez, 33, of Waco; Sonya Renee Hughes, 44, of Waco; and Steven Merritt, 52, of Bruceville-Eddy. If convicted, Arocha, Huezo, Hughes and Merritt face up to 40 years in prison. All other defendants, if convicted, face up to life in prison.
Marshall and Picon are also charged with one count of possession of a firearm in furtherance of a federal drug trafficking crime. If convicted, they face up to five years in prison to run consecutive to any other sentence they receive.
Not charged with the conspiracy drug count is Able Chavez, 25, of Waco. Chavez is charged in W22CR094 with one count of possession with intent to distribute at least 500 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. If convicted, Chavez faces up to life in prison on the drug count and up to five years in prison on the gun count to run consecutive to any other sentence he receives.
Also not charged with the conspiracy drug count is Andrew Ochoa, 36, of Waco. Ochoa is charged in W22CR093 with one count of making a false statement in acquisition of a firearm. If convicted, Ochoa faces up to 10 years in prison. Investigation revealed Ochoa was purchasing and delivering firearms to a 13-year-old child.
All defendants have been arrested except for Karen Pendola Bennett who remains a fugitive in this case.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Oliver E. Rich Jr., San Antonio Division; Drug Enforcement Administration (DEA) Special Agent in Charge Daniel Comeaux, Houston Division; Waco Police Department Chief of Police Sheryl D. Victorian; McLennan County Sheriff Parnell McNamara; Bell County Sheriff Eddy Lange; and Texas Department of Public Safety (DPS) Regional Director Todd H. Snyder made the announcement.
The FBI; DEA; Waco Police Department; McLennan County Sheriff’s Office; Bell County Sheriff’s Office; and DPS are investigating the case.
Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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