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Tuesday 3 May 2022
Sex Offender Sentenced to Twenty Years in Federal Prison for Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Last week, Cody Dewayne Jones, 27, of Laurel Hill, Florida, was sentenced to twenty years in federal prison after pleading guilty on January 11, 2022, for attempted enticement of a minor, attempted transfer of obscene material to a minor, and for committing a felony while a registered sex offender. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This sentence acknowledges the deviant acts of a child predator,” said U.S. Attorney Coody. “Ensuring the safety of our communities is a top priority. With the assistance of our law enforcement partners, we remain vigilant to investigate and prosecute those who seek to harm our most vulnerable.”
In December 2020, an undercover Okaloosa County Sheriff’s Office (OCSO) investigator began chatting online to identify individuals interested in exploiting children. An individual, later identified as Jones, sent a private message via a social media platform to the investigator, who was posing as a 14-year-old girl. Over the next few days, Jones solicited pornographic photographs and discussed engaging in sexual activity with “her.” Law enforcement identified Jones as a previously convicted sex offender. On December 17, 2020, Jones traveled from Laurel Hill, Florida, to a predetermined location for the purpose of engaging in sexual activity with a person he believed to be a 14-year-old girl and was arrested by law enforcement.
“Protecting innocent children is one of the most important missions we have,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Our HSI special agents moved quickly to identify and take a child predator off the streets. HSI will always protect our children and will act swiftly to prosecute those who seek to do them harm.”
Jones’ federal prison sentence will be followed by 10 years of supervised release. Jones will continue to be required to register a sex offender and will be subject to all registration conditions.
“It’s very gratifying to see this lengthy sentence, to be followed by a decade of supervised release, for a registered sex offender who had attempted to continue to exploit and molest children,” said Okaloosa County Sheriff Eric Aden. “Through the joint efforts of all involved, that opportunity has been extinguished for decades to come.”
This conviction was the result of an investigation conducted by the Homeland Security Investigations and the Okaloosa County Sheriff’s Office. Assistant United States Attorney Jeffrey M. Tharp prosecuted the case.
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.
Seminole County Man Extradited from Croatia to Face COVID Relief Fraud ChargesRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Don V. Cisternino (45, Chuluota) has been successfully extradited from Croatia to face charges of wire fraud, aggravated identity theft, and illegal monetary transactions. A federal grand jury in Orlando previously returned an indictment against Cisternino for these charges in February 2021. If convicted, Cisternino faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 10 years’ imprisonment for each illegal monetary transaction count, and a mandatory consecutive term of two years for the aggravated identity theft counts.
Cisternino arrived in Orlando and had his initial appearance on the charges on April 29, 2022, following which he was ordered detained pending trial.
According to the indictment, in May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through a Paycheck Protection Program (“PPP”) loan.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in potentially 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. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time-period and uses at least a certain percentage of the loan towards qualifying business expenses.
Cisternino’s PPP loan application falsely claimed that Cisternino’s New York business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million. In truth, MagnifiCo, had few, if any, employees other than Cisternino and his girlfriend, and MagnifiCo did not report any wages to the IRS for 2019. In support of his PPP loan application, Cisternino submitted false W-2s for MagnifiCo’s purported employees, many of which listed the names and social security numbers of actual persons who were not MagnifiCo employees and who had not authorized Cisternino to use their identities.
Once he obtained the emergency loan of $7.2 million, Cisternino did not use these funds for qualifying expenses. Instead, he spent the funds for unauthorized purposes and for his own personal enrichment, including the purchase of Lincoln Navigator, Maserati, and Mercedes-Benz vehicles, and an approximately 12,579 sq. ft. residence in Seminole County, Florida, pictured below.
“Financial fraud targeting COVID-relief funds is a serious crime,” stated U.S. Attorney Roger B. Handberg. “Our successful extradition of this defendant from Croatia back to Orlando shows that we and our law enforcement partners will pursue every lawful avenue to locate and prosecute those engaged in such fraud.”
Department of Justice Director of COVID-19 Fraud Enforcement Kevin Chambers stated, “This matter demonstrates that the Department will aggressively go after anyone who stole pandemic relief funds, whether they are in the United States or hiding overseas. I applaud the tireless work of the Middle District of Florida in achieving this important step and thank our international partners for their assistance.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. The Justice Department’s Office of International Affairs provided valuable assistance in securing Cisternino’s arrest and extradition. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Schenectady Felon Pleads Guilty to Illegally Possessing Loaded FirearmRead the Press Release
ALBANY, NEW YORK – Thomas Hendricks Jr., age 40, of Schenectady, New York, pled guilty today to illegally possessing a loaded pistol as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his plea, Hendricks admitted that on June 20, 2021, he brandished a 9mm semi-automatic pistol while live-streaming on his Facebook account. He further admitted that on June 28, 2021, he possessed the same loaded pistol in his residence in the city of Schenectady, at which time it was seized by the Schenectady Police Department as part of an investigation. Two prior felony convictions, for criminal possession of a weapon and aggravated cruelty to animals, prevented Hendricks from legally possessing the firearm in New York.
Hendricks faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on September 13, 2022, by Senior United States District Judge Thomas J. McAvoy.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ATF and the Schenectady Police Department, with assistance provided by the Schenectady County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Saugus Woman Sentenced to 54 Months in Prison for Scheme to Defraud Elderly Uncle of over $490,000Read the Press Release
BOSTON – A Saugus woman was sentenced today in federal court in Boston in connection with a scheme to defraud her elderly uncle of his life’s savings.
Jayne Carbone, 54, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison and three years of supervised release. Carbone was also ordered to pay $493,279 in restitution and forfeiture. On Oct. 12, 2021, Carbone was convicted by a federal jury of four counts of wire fraud and four counts of aggravated identity theft.
Carbone was the caretaker for her uncle for over a decade from 2007 to 2018. Carbone systematically defrauded her uncle of $493,279, by using her uncle’s name and Social Security number to withdraw the funds from his bank accounts. To conceal the scheme, Carbone intercepted her uncle’s mail, removed his bank statements and then delivered him fake statements reflecting inflated balances. Once the scheme was uncovered, Carbone refused to return the funds and made various threats against her uncle and other family members.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher J. Markham, James R. Drabick and Leslie Wright of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Santa Clarita Man Agrees to Plead Guilty to Securities Fraud for Bilking Investors Who Purchased Real Estate ‘Coupon Bonds’Read the Press Release
LOS ANGELES – A Santa Clarita resident who invested in real estate and sold “coupon bonds” that promised regular interest payments on top of principal repayment has agreed to plead guilty to a federal criminal charge for defrauding investors out of more than $1.7 million, the Justice Department announced today.
Matthew Skinner, 45, who in 2014 founded a company called Empire West Equity, Inc. and later established Simple Growth, LLC, was charged today with securities fraud in a one-count information filed in United States District Court.
Federal prosecutors today also filed a plea agreement in which Skinner agreed to plead guilty to the offense and admitted he fraudulently sold securities.
Skinner used social media platforms such as Facebook and YouTube to promote himself, falsely claiming to be an experienced and successful real estate investor with more than $200 million in deals under his belt, according to court documents.
After Empire West experienced financial troubles – Skinner was unable to pay his staff and investors – he established Simple Growth in 2018 and falsely told investors who purchased Simple Growth coupon bonds “that their money would be used to purchase real estate that [Skinner] and Empire West would develop and resell at a profit,” according to the plea agreement.
Skinner admitted that he did not intend to purchase, develop or resell real estate, and that he instead used investor funds to pay older investors, his employees and himself.
Skinner “used investor funds from those entities and accounts to pay for personal trips, his mortgage, his utility bills, cosmetic surgery, and alimony payments to his ex-wife,” he acknowledged in the plea agreement.
Simple Growth raised approximately $1,744,946 from more than 20 investors – none of whom received any of their money back.
The securities fraud charge against Skinner carries a statutory maximum penalty of 20 years in federal prison.
Skinner has agreed to surrender to federal authorities and make his initial court appearance on May 25.
The FBI conducted the investigation into Skinner.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.
Rapid City Man Sentenced to 8 Years Imprisonment for Drug Trafficking ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, SD man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 2, 2022 by United States District Judge Jeffrey L. Viken.
Patrick Greenfield, age 32, was sentenced to 8 years in federal prison, followed by 4 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Greenfield was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on September 17, 2020. He pleaded guilty on December 6, 2021. Greenfield was responsible for distributing between 1.5 and 5 kilograms of methamphetamine in western South Dakota. Others charged in the conspiracy have been sentenced already and others have trial dates pending.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, South Dakota Division of Criminal Investigation, the South Dakota National Guard and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Greenfield was immediately returned to the custody of the U.S. Marshals Service.
Providence Resident Sentenced for Distributing Crack CocaineRead the Press Release
PROVIDENCE – A Providence resident who sold crack cocaine on at least three occasions while under surveillance by members of the FBI’s Safe Street Task Force was sentenced today to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Michael Rodriguez, 26, pled guilty on August 31, 2021, to two counts of distribution of 28 grams or more of cocaine base and distribution of cocaine base.
According to court documents, on July 30, 2020, Rodriguez cooked crack cocaine inside a family member’s Providence apartment while two children were inside the apartment. Rodriguez later sold the crack cocaine, engaging in one transaction that day, and two other sales on later dates.
U.S. District Court Chief Judge John J. McConnell, Jr., today sentenced Rodriguez to 60 months of incarceration to be followed by four years of federal supervised release.
The matter was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Providence Man Sentenced to 10 Years in Prison for Fentanyl and Heroin TraffickingRead the Press Release
BOSTON – A Providence man was sentenced yesterday in federal court in Worcester in connection with drug trafficking activities involving fentanyl and heroin.
Darwin J. Gonzalez Reyes a/k/a “España,” 36, was sentenced today by U.S. District Court Judge Timothy S. Hillman to 10 years in prison and five years of supervised release. On Sept. 29, 2021, Gonzalez Reyes pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of heroin, one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin and one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and heroin.
In June 2019, Gonzalez Reyes coordinated the delivery of 200 grams of fentanyl to an individual and, in August 2019, coordinated the delivery of another 300 grams of fentanyl and 40 grams of heroin to the same individual. Gonzalez Reyes directed another individual to make both deliveries on his behalf.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Worcester Police Department, Massachusetts State Police, U.S. Postal Inspection Service and the Providence Police Department. Assistant U.S. Attorney Kristen M. Noto of Rollins’ Worcester Branch Office prosecuted the case.
Prince George Man Pleads Guilty to Multimillion Dollar Fraud SchemeRead the Press Release
RICHMOND, Va. – A Prince George man pleaded guilty yesterday to tax fraud and executing a conspiracy to defraud individual lenders, financial institutions, and his employer out of almost $9 million.
According to court documents, from 2012 to 2020, Robert W. Guidry, 54, conspired with Christopher W. Elko, 51, Petersburg, to enrich themselves by, among other methods, falsely purporting to sell ownership interests in businesses where the conspirators worked, obtaining fraudulent loans and other forms of credit from individual lenders and financial institutions, and embezzling money from their employer. As part of the conspiracy, Guidry solicited and induced individuals to lend him money under false pretenses, claiming that the loans would be used for investment purposes—when, in fact, Guidry actually used the money to pay for personal expenses or to repay other lenders.
The conspirators also obtained loans and lines of credit from various financial institutions, relying on misrepresentations and deliberate omissions about Guidry’s personal financial status, such as the value of his assets and the amount of his liabilities. To repay the individual lenders and financial institutions they had fraudulently borrowed money from, and to pay their own personal expenses, the conspirators concocted a scheme to defraud their employer by misappropriating money through various frauds. For instance, the conspirators diverted customer payments owed to their employer to a bank account controlled by the conspirators, and fabricated payables to their employers’ vendors and others, depositing the payments into bank accounts they controlled.
In total, the conspirators' actions caused a total loss of more than $8.8 million to investors, banks, and their former employer.
Guidry is scheduled to be sentenced on September 7, 2022. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Kashan K. Pathan and Thomas A. Garnett and former Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-42.
Previously-Convicted Sex Offender Charged with Producing, Distributing, Possessing Child PornographyRead the Press Release
PROVIDENCE – A registered level three sex offender living in Narragansett who is alleged to be the administrator of at least three chat groups on a social media platform often used to download and share child pornography, appeared today in federal court in Providence on charges that he allegedly produced, distributed, and possessed child pornography, announced United States Attorney Zachary A. Cunha.
Jeremy P. Barton, 41, arrested this morning by FBI agents, is charged by way of a federal criminal complaint with production of child pornography; distribution of child pornography; and possession and access with intent to view a visual depiction of a minor in sexually explicit conduct. He was ordered detained following his appearance in federal court.
According to charging documents, in March and April 2022, an FBI online covert employee in Tennessee communicated with multiple members of an online-based social media platform, and observed users trading download links containing child sexual abuse material. The FBI employee communicated with the administrator of least three accounts, later identified by the FBI as Jeremy Barton.
It is alleged that during communications with the FBI employee, Barton discussed online interactions he had with two boys, one known to be 12 years old and another who Barton believed to be 13 or 14. It is alleged that Barton had each of the boys provide him with a video of themselves performing a sex act. Barton allegedly shared the images with the FBI employee.
On Tuesday morning, FBI agents in Rhode Island executed a court-authorized search of Barton’s residence and seized a cell phone belonging to the defendant. The phone is alleged to contain an app that was used to access the accounts allegedly administered by Barton and used when communicating with the FBI employee.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
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Philadelphia Father Sentenced to 13 Years for Attempted Armed Bank Robbery in Which His Sons Were Charged as AccomplicesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ronald DeWitt Vines, 50, of Philadelphia, PA, was sentenced to 13 years in prison and five years of supervised release by United States District Court Judge Paul S. Diamond for an armed robbery he and his accomplices, who were two of his sons, attempted to carry out in Bucks County in late 2017.
In August 2021, the defendant pleaded guilty to charges of attempted armed bank robbery, and using, carrying, and brandishing a firearm during a crime of violence, in connection with his attempt to commit the armed robbery of the PNC Bank branch on Buck Road in Holland, PA, in November 2017. To execute the robbery, Vines’ son, Elijah Vines (who was previously sentenced to five years and one month in prison), placed a handgun against the side of a bank employee’s head, forcing her to open the bank door as she arrived for work that morning. A second bank employee screamed when she realized the bank was being robbed. Vines and his accomplices, sons Elijah and Solomon Vines, quickly fled the bank in a getaway vehicle before being stopped by Northampton Township Police Officers responding to a 911 call. A search by officers of the getaway vehicle uncovered one loaded semi-automatic handgun, one loaded rifle, and two body armor vests.
“This defendant terrified and threatened the lives of bank employees who were just attempting to do their jobs, and he convinced his sons – young men with their whole lives ahead of them – to help him pull it off,” said U.S. Attorney Williams. “The simple fact is that this family is a danger to the community. This case demonstrates why our All Hands On Deck initiative is so important: we are investigating and prosecuting the most violent criminals to get them off the streets and behind bars.”
“Imagine the terror of that bank employee when the gun was put to her head,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Make no mistake, this was a violent crime, and the fact that Vines and his sons fled empty-handed doesn’t lessen the severity of their actions one bit. Fortunately, local police officers quickly saw and stopped the family’s getaway car before they could try again somewhere else. The FBI is gratified Vines is finally being held accountable for this shameful scheme in which he involved his own children.”
The case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northampton Township Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Orangeburg Man Indicted on Federal Gun Charges Detained After Contested Bond HearingRead the Press Release
Columbia, South Carolina --- Marcus Duran Singleton, 38, of Orangeburg, was indicted for being a felon in possession of a firearm and ammunition and has been detained following a contested bond hearing in federal court in Columbia.
A federal Grand Jury in Columbia indicted Singleton following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Orangeburg Department of Public Safety (ODPS), the Norway Police Department (NPD), and the South Carolina Law Enforcement Division (SLED). Singleton was charged with being a felon in possession of a firearm and ammunition. ATF, with the assistance of NPD and SLED, arrested Singleton, and he appeared in Court upon his request for a bond. After a contested hearing, United States Magistrate Judge Paige J. Gossett ordered Singleton detained without bond pending resolution of the federal charge against him.
During the hearing, an ATF special agent testified that Singleton was allegedly involved in unlawfully pointing and presenting of a firearm at the employees of the fast-food establishment, Cook-Out, located in Orangeburg, on September 4, 2021. As a result of the federal charge, Singleton faces a maximum term of imprisonment of 10 years, a fine of $250,000, and court-ordered supervision to follow any term of imprisonment.
The offense listed in the indictment is merely an allegation, and Singleton is presumed innocent unless and until proven guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) initiative, 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.
Assistant United States Attorneys Elle E. Klein and Elliott B. Daniels of the Columbia office are prosecuting the case.
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North Carolina man sentenced to additional prison time after lying during sentencing in previous case involving theft of company’s trade secretsRead the Press Release
SAVANNAH, GA: A North Carolina man has been sentenced to additional time in prison after being convicted of lying during a prior sentencing for conspiring to steal trade secrets from aircraft manufacturing companies.
Craig German, 60, of Kernersville, N.C., was sentenced to 20 months in prison for Perjury and False Statements to a Government Agency, in addition to the 70-month prison term he already was serving after pleading guilty in February 2020 to Conspiracy to Steal Trade Secrets, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge also fined R. Stan Baker also ordered German to pay a fine of $1,500.
“Craig German and his co-conspirators admitted engaging in illegal and deceptive practices to steal information from private businesses, and then German lied while being sentenced for those crimes,” said U.S. Attorney Estes. “Substantial time behind bars will hold him accountable for his dishonesty.”
German, Gilbert Basaldua, 63, of Hilton Head, S.C., and others were indicted in May 2019 to charges that they conspired to steal proprietary information from aircraft companies for which they worked inside and outside the Southern District, and then used that information to speed the design and regulatory review process for a competing aircraft company.
During his sentencing hearing in 2020, German lied when he testified under oath and denied having copied more than 15,000 proprietary engineering drawings and documents onto a removable storage device while he was employed at an aircraft manufacturing company. German also lied to the FBI during a voluntary meeting when he emphatically denied transferring more than 15,000 proprietary engineering drawings and documents to a removable storage device.
German’s co-defendant awaits sentencing. After two days of trial in September 2021, Basaldua pled guilty to Conspiracy to Steal Trade Secrets and Interstate Transportation of Stolen Property. He faces up to 10 years in prison on each charge, along with substantial financial penalties.
“False testimony undermines the justice process and can have dire consequences on the integrity of the justice system,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Hopefully this additional sentence demonstrates how seriously the FBI takes perjury and deters other from attempting to deceive the justice system in the future.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Nigerian citizen pleads guilty to COVID-19 unemployment fraud on Washington and 17 other statesRead the Press Release
Tacoma – A 45-year-old resident of Lekki, Nigeria, pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for using stolen identities to claim hundreds of thousands of dollars in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown. Abidemi Rufai has been in custody since his arrest at New York’s JFK airport in May 2021. At the time of his arrest, Rufai was the Special Assistant to the Governor of Nigeria’s Ogun State.
According to the plea agreement, since 2017, Rufai unlawfully obtained the personal identifying information for more than 20,000 Americans to submit more than $2 million in claims for federally funded benefits under a variety of relief programs. The various agencies involved paid out more than $600,000.
The largest amount of fraud was committed against the Washington State Employment Security Department, which paid out $350,763 in fraudulent pandemic unemployment claims to accounts controlled by Rufai. Rufai also submitted fraudulent pandemic unemployment claims in at least 17 other states.
Rufai also defrauded the Small Business Administration (SBA) by attempting to obtain Economic Injury Disaster loans (EIDL) tied to the COVID-19 pandemic. Between April 8, 2020, and June 26, 2020, he submitted 19 fraudulent EIDL applications. SBA paid out $10,000 based on the applications.
Between 2017 and 2020, Rufai attempted to obtain more than $1.7 million in IRS tax refunds by submitting 675 false claims. The IRS paid out $90,877 on these claims.
Rufai’s efforts to enrich himself with false disaster claims did not start with COVID-19. In September and October 2017, he submitted 49 disaster relief claims connected to Hurricane Harvey and Hurricane Irma. He filed $24,500 in false claims and was paid on 13 claims totaling $6,500.
Rufai has agreed to pay full restitution to the defrauded agencies.
Wire fraud in relation to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Aggravated identity theft is punishable two years in prison to follow any prison term imposed on another charge. Prosecutors have agreed to recommend no more than 71 months in prison. The recommendation is not binding on U.S. District Judge Benjamin H. Settle, who will determine the appropriate sentence on August 15, 2022, after considering the sentencing guidelines and other statutory factors.
This case was investigated by the FBI, with assistance from the Department of Labor Office of Inspector General, Internal Revenue Service Criminal Investigations, Department of Homeland Security Office of Inspector General, and the United States Small Business Administration Office of the Inspector General. The Washington Employment Security Department is cooperating in the investigation.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Cindy Chang of the Western District of Washington.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Newark Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for his role in a drug trafficking conspiracy, U.S. Philip R. Sellinger announced.
Rahim Jackson previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an indictment charging him with conspiracy to distribute heroin. Judge Martinotti imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2018 through July 31, 2019, Jackson and others conspired to distribute and possess with intent to distribute at least one kilogram of heroin. Jackson admitted using the Rotunda Recreation and Wellness Center on Clifton Avenue, where he was employed, in furtherance of the conspiracy.
In addition to the prison term, Judge Martinotti sentenced Jackson to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
He also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, the Rockaway Township Police Department, under the direction of Chief Martin McParland, and special agents from the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark.
The Broadway Townhomes investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s OCDETF Unit in Newark and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
New Orleans Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JARON MCCREE, age 27, a resident of Orleans Parish, was charged on April 29, 2022 in a one-count indictment by a federal grand jury for possessing a firearm while being a convicted felon, announced U. S. Attorney Duane A. Evans.
If convicted, MCCREE faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel.
New Haven Man Sentenced to Federal Prison for Possessing Sawed-Off RifleRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ANGEL RODRIGUEZ-MENDEZ, 25, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for illegal possession of an unregistered sawed-off rifle.
According to court documents and statements made in court, Rodriguez-Mendez was arrested on August 26, 2020, after a court-authorized search of his residence on East Street in New Haven revealed a loaded sawed-off rifle, a loaded handgun, ammunition, approximately 37 wax folds containing a mixture of heroin and cocaine, and approximately 74 grams of cocaine. Rodriguez also possessed approximately 20 grams of cocaine on his person.
On November 10, 2021, Rodriguez-Mendez pleaded guilty to one count of possession of an unregistered firearm.
Rodriguez-Mendez, who is released on a $100,000 bond, is required to report to prison on June 28.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Drug Enforcement Administration and New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Bedford Man Sentenced for Firearm and Cocaine OffensesRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for illegally possessing a firearm and selling cocaine.
Khyron Thompson, 32, was sentenced by U.S. District Court Judge Denise J. Casper to 57 months in prison and three years of supervised release. On Dec. 13, 2021, Thompson pleaded guilty to one count of being a felon in possession of firearm and ammunition and one count of distribution of and possession with intent to distribute cocaine.
On Feb. 13, 2020, Thompson distributed cocaine and possessed a loaded .32 caliber Hi-Point pistol firearm with an obliterated serial number and six rounds of ammunition. Thompson is prohibited from possessing a firearm due to multiple previous state convictions including assault and battery.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorneys Evan Gotlob and Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Nebraska Man Pleads Guilty to Charge Related to Kansas Bank RobberyRead the Press Release
TOPEKA, KAN. – A Nebraska man pleaded guilty to one count of use of a firearm during a crime of violence.
According to court documents, in February 2021, Cody Deichen, 26, of Hastings, Nebraska, admitted to aiding and abetting in the brandishing and use of a home built .223 caliber AR-15 style rifle during a bank robbery at Guaranty State Bank on South Main Street in Burr Oak, Kansas.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing hearing is scheduled for July 27.
The FBI and the Kansas Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Sara Walton is prosecuting the case.
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Multi-State Sam’s Club Theft Ring Defendants Sentenced to PrisonRead the Press Release
COLUMBUS, Ga. – Several Columbus-area residents involved in a multi-state Sam’s Club theft ring amounting to $900,567 in loss to the company were sentenced to federal prison for their crimes.
Brian Cowman, 46, of Fortson, Georgia, was sentenced to serve 46 months in prison to be followed by three years of supervised release after he previously pleaded guilty to two counts of conspiracy to transport stolen goods. Marcel Crawford, 68, of Columbus, was sentenced to serve 33 months in prison to be followed by three years of supervised release and Ernest Mitchell, 55, of Columbus, was sentenced to serve 51 months in prison to be followed by three years of supervised release after they previously pleaded guilty to one count conspiracy to transport stolen goods. Mildred Alarcon, 48, of Fortson, previously pleaded guilty to one count of false statements and was sentenced to three years of probation. U.S. District Judge Clay Land handed down the sentences on April 27. There is no parole.
“Brian Cowman profited from this theft ring, reaping hundreds of thousands of dollars, even making a down payment for a new home with the illegal proceeds. These types of large-scale schemes have negative consequences for those of us who do the right thing, including increased prices of goods, business closings and job loss,” said U.S. Attorney Peter D. Leary. “We will take the necessary steps to hold accountable those individuals who scam our citizens.”
“These defendants operated a complex multi-state theft ring that was costly to the economic well-being of our communities,” said Clint Bush, Resident Agent in Charge, United States Secret Service, Albany, Georgia Resident Office. “The United States Secret Service, along with our state, local and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of fraud in our community and nation.”
According to court documents and evidence presented in court, Cowman and Crawford conspired to transport and sell stolen goods taken from numerous Sam’s Club stores located throughout the southeastern and midwestern United States between March 2018 and Feb. 2019, with the assistance of the remaining co-defendants. Often financed and directed by Cowman, Crawford and his co-conspirators traveled to Sam’s Clubs stores in Georgia, Alabama, Mississippi, Louisiana, Florida, Tennessee, North Carolina, South Carolina, Ohio, Indiana and Kentucky, where they would steal various items including ink cartridges, Bose speakers, razors, DVDs, and tick and flea medications and collars for pets. The co-defendants often committed their crimes by emptying large boxes filled with inexpensive paper goods and filling them with more expensive items, paying only the cost of the boxed item and walking out of the store with the pilfered goods.
Following the theft, Crawford delivered the stolen goods to Cowman’s home in Columbus or a storage facility rented by Cowman. Cowman knew many of the items were stolen. Cowman would then sell the goods on his eBay store known as “rockislandoutdoorsllc." Cowman conducted at least 6,474 sales transactions between March 2017 and Feb. 2019; many of these sales were of stolen Sam’s Club merchandise. Cowman is known to have transferred a total of $412,900 from his PayPal account into his personal bank account in 2018 and the first quarter of 2019. A federal search warrant executed at Cowman’s home and storage facility recovered three boxes full of stolen goods plus stolen items valued at approximately $61,000. Cowman reaped the vast majority of the proceeds himself; Crawford estimated he received between $30,000 and $45,000 from Cowman in the year and a half that he sold Cowman stolen merchandise, proceeds from which Crawford used to pay his associates participating in the theft. Cowman used the money for personal expenses, including for a down payment on a new home in Harris County, Georgia. A forensic investigation determined that the total loss to Sam’s Club is $900,567.01.
The following two co-defendants have been indicted by a federal grand jury and remain at-large:
Christopher Brown, 50, of Phenix City, Alabama, and Orlando Brooks, 53, of Columbus, are both charged with one count of conspiracy to transport stolen goods. If convicted, Brown and Brooks face a maximum sentence of five years imprisonment and a fine of up to $250,000.
This case was investigated by the United States Secret Service (USSS) and the Columbus Police Department.
Assistant U.S. Attorney Amy Helmick is prosecuting the case.
Movie Producer Found Guilty in Film Financing SchemeRead the Press Release
Miami, Florida – Following a six-week trial, a federal jury in Fort Lauderdale has convicted a 44-year-old former actor and movie producer from Bartlesville, Oklahoma of conspiracy, wire fraud, and money laundering for his role in a financing scheme that defrauded movie and theatre producers out of more than $60 million.
According to court records and evidence introduced during trial, Jason Van Eman held himself out as a film producer and financier, offering to fund independent motion pictures, Broadway shows, music festivals, and other productions. Van Eman promised the victims (producers and others seeking financing), that his partner (a co-conspirator named Benjamin McConley) would match any cash that the victims contributed to their projects. Then, with the combined starting capital (which made the projects more attractive to investors), McConley would apply for and secure financing from financial institutions.
Based on these lies, victims sent over $60 million to accounts controlled by the fraudsters. Contrary to what Van Eman promised victims, his partner never matched their cash contributions or applied for financing. Instead, Van Eman and his co-conspirators stole the victims’ money by transferring it to their personal and corporate bank accounts, often within days of deposit. To make the scam more believable, Van Eman and McConley recruited Benjamin Rafael, a bank employee, whose role was to assure victims that their cash contributions had been matched and that their money was secure – neither of which was true.
Van Eman, McConley, and Rafael used the stolen money to purchase luxury automobiles, personal watercraft, real estate, jewelry, home furnishings, designer clothes, hotel accommodations, and private and commercial air travel. Van Eman used some of the stolen cash to fund movies in which he was cast.
Van Eman is scheduled to be sentenced on July 21, at 10 a.m. before U.S. District Judge Raag Singhal. He faces up to several decades in prison.
McConley previously pled guilty in this case and was sentenced to a prison term of 13 years. Rafael was sentenced to 42 months’ imprisonment for participating in two frauds: the first, the film financing scheme; the second, concealing his criminal history on applications for COVID-19 relief.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the guilty verdict.
FBI Miami Field Division investigated this case. Assistant U.S. Attorneys Christopher Browne and Yisel Valdes are prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20447.
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Monongalia County man accused of producing child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oliver Matheny, of Maidsville, West Virginia, was indicted today on child pornography charges, United States Attorney William Ihlenfeld announced.
Matheny, 48, was indicted today on three counts of “Attempted Production of Child Pornography – Previous Conviction” and two counts of “Production of Child Pornography – Previous Conviction.” Matheny was previously convicted of sexually abusing a minor in Florida in 1996. He is accused of using minors to produce child pornography from February to September 2018 in Monongalia County.
Matheny faces at least 25 years and up to 50 years of incarceration and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The FBI investigated.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to More Than 15 Years in Prison for Role in Drug Trafficking Organization that Manufactured and Attempted to Distribute 63 Kilos of Meth in Northern OhioRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Aquileo Perez-Pineda, 52, a Mexican national previously residing in Georgia, was sentenced on Friday, April 29, 2022, by U.S. District Judge Sara Lioi to 188 months or more than 15 years in prison after Perez-Pineda pleaded guilty to his role in a conspiracy to manufacture, possess and distribute large quantities of methamphetamine in Northern Ohio.
According to court documents, from January 2018 through March 2018, Perez-Pineda was part of a drug trafficking organization that conspired to manufacture, possess and distribute approximately 63 kilograms – more than 138 pounds – of methamphetamine in the Northern District of Ohio.
During this time, law enforcement officials had begun an investigation into a drug trafficking organization that established a system to transport liquid methamphetamine from Mexico to the Northern District of Ohio to be manufactured and cooked into crystal methamphetamine and distributed, with the cash proceeds to be sent back to Mexico. Court documents show that co-conspirators hid the liquid methamphetamine in the gas tanks of tractor-trailers.
According to court records, Perez-Pineda, a trusted methamphetamine cook for the Mexican traffickers, came to Ohio from Georgia to coordinate the manufacturing of crystal methamphetamine, converting the liquid methamphetamine to crystal methamphetamine. The manufacturing took place at warehouses in Aurora and Hudson, Ohio, where he was assisted by Hector Manuel Ramos-Nevarez and Gilbert Treviso-Garcia, two other Mexican nationals who had previously come to Ohio.
In the early morning hours of March 24, 2018, law enforcement officials with the DEA executed a search warrant at the warehouse in Hudson as part of their investigation into the drug trafficking organization, seizing a large quantity of crystal methamphetamine.
Immediately after the search, the co-conspirators, unaware that law enforcement had taken the drugs, came to suspect Shauheen Sohrabi of stealing the drugs.
Co-conspirators Deon Johnson and Tyrone Rogers discussed with suppliers in Mexico what to do about the theft, including possible retribution on Sohrabi. Johnson had coordinated the connection between suppliers in Mexico and co-conspirators in Northeast Ohio, all while serving a sentence for a prior crime in state prison.
After the Mexican suppliers told Johnson that they could be killed in Mexico for losing such a large quantity of drugs, Johnson told Rogers, “The call is made; he’s through,” referring to Sohrabi. Rogers then told another individual, “it’s over for” Sohrabi, explaining that “they already put the green light on him, it’s a wrap. I can’t save him now.”
Investigators then intervened, arresting members of the drug trafficking organization who were searching for Sohrabi. Authorities then searched the Hudson warehouse, where they seized additional methamphetamine in its liquid form.
During the two searches, officials seized approximately 63 kilograms of methamphetamine.
At the time investigators intervened in March 2018, Perez-Pineda had not been identified and had left the area. However, less than two months later, according to public reports, Perez-Pineda was arrested in the middle of another large-scale methamphetamine-manufacturing process in Harnett County, North Carolina. In that incident, Harnett County investigators seized 120 gallons of liquid methamphetamine, or more than 450 kilograms, reported to have a street value of approximately $90 million.
Perez-Pineda is also serving a separate 70-month sentence as a result of that incident. Perez-Pineda’s 188-month sentence has been ordered to run consecutive to that sentence.
Additionally charged in this matter as co-conspirators are Johnson, Rogers, Sohrabi, Ramos-Nevarez, Treviso-Garcia, Michelle Dailey, and Joseph Terlizzi, who have all pled guilty and been sentenced for their roles in the drug trafficking organization. Johnson was sentenced to 170 months in prison in March of this year.
Mexico-based supplier Jesus Cota-Medina has also been charged, and his matter remains pending. Cota-Medina is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the DEA. This case was prosecuted by Assistant U.S. Attorneys Elliot D. Morrison and Kevin P. Pierce.
Man from the Ring Thunder Community Indicted for Sexual Abuse of a Minor and Aggravated IncestRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Ring Thunder, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor and Aggravated Incest.
Marshall Knife, age 38, was indicted on April 12, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 29, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2019, and November 30, 2021, near Ring Thunder, Knife knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charges are merely accusations and Knife is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Knife was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maine Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Sean Chaput, 34, of Bangor, Maine, pleaded guilty on Monday in federal court to conspiracy to possess fentanyl with intent to distribute, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on November 27, 2020, a New Hampshire state police trooper stopped Chaput’s car for a traffic violation. Over the course of the encounter, the trooper developed suspicions that the car contained evidence of drug trafficking. The trooper obtained a search warrant for the vehicle, and subsequently located cylinders of pressed powder hidden in the car that contained 762 grams of fentanyl. The defendant later admitted to driving to Massachusetts to purchase the fentanyl found in the vehicle so he could bring it to Maine to be sold.
Chaput is scheduled to be sentenced on August 11, 2022.
“The U.S. Attorney’s Office works closely with our law enforcement partners to identify and prosecute the drug dealers who are distributing fentanyl and other deadly drugs,” said U.S. Attorney Young. “I am grateful to the New Hampshire State Police for stopping the distribution of this very substantial amount of fentanyl that could have endangered many lives.”
This matter was investigated by the New Hampshire State Police and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Jury Convicts Dutch National for Participation in Terror Financing RingRead the Press Release
ALEXANDRIA, Va. – Today a federal jury convicted a Dutch woman on charges for her participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to court records and evidence presented at trial, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women coordinated the payments using online chatrooms.
Hassan, in particular, was involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12 and 11 years imprisonment, respectively.
Hassan was convicted of conspiracy to provide material support to a designated foreign terrorist organization. She faces a maximum penalty of 15 years in prison when sentenced on July 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-230.
Jury Convicts Dutch National for Participation in Terror Financing RingRead the Press Release
Today, a federal jury convicted a Dutch woman on charges stemming from her participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to court records and evidence presented at trial, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women coordinated the payments using online chatrooms.
Hassan, in particular, was involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, Virginia, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12- and 11-years’ imprisonment, respectively.
Hassan was convicted of conspiracy to provide material support to a designated foreign terrorist organization. She faces a maximum penalty of 15 years in prison when sentenced on July 22. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Assistant Director Timothy Langan of the FBI’s Counterterrorism Division, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh for the Eastern District of Virginia are prosecuting the case, with valuable assistance provided by Trial Attorney Kathleen Campbell of the National Security Division’s Counterterrorism Section.
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the Netherlands.
Jane E. Young Sworn in as United States Attorney for the District of New HampshireRead the Press Release
CONCORD – The United States Attorney’s Office for the District of New Hampshire announced that the Honorable Jane E. Young was sworn in on Monday as the United States Attorney for the District of New Hampshire. Chief U.S. District Judge Landya McCafferty administered the oath of office at the federal courthouse in Concord.
U.S. Attorney Young is the 58th U.S. Attorney for the District. She was nominated by the President on January 26, 2022 and confirmed by the U.S. Senate on April 27, 2022. As the U.S. Attorney, Ms. Young is the chief federal law enforcement officer in New Hampshire.
Jane E. Young served as the Deputy Attorney General for the New Hampshire Department of Justice from 2018 to 2022. She has held various leadership positions in the office since she joined in 1992, including Director of the Division of Public Protection from 2017 to 2018, Chief of the Criminal Justice Bureau from 2007 to 2017, and Chief of the Drug Unit from 2006 to 2007. From 1990 to 1992, Ms. Young served as an Assistant County Attorney in the Hillsborough County Attorney’s Office.
Ms. Young received her J.D. from the University of New Hampshire Franklin Pierce School of Law in 1989 and her B.A. from Saint Anselm College in 1986.
“I thank President Biden and the Senate for the privilege to serve the State of New Hampshire as the United States Attorney,” said U.S. Attorney Young. “I also thank Senator Shaheen and Senator Hassan for recommending me to the President. I look forward to serving the people of New Hampshire in my new role and will work tirelessly to ensure that the federal laws are enforced and that those who violate those laws are held accountable.”
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Ithaca Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Leroy Reed, age 53, of Ithaca, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent Kevin P. Bruen.
Reed, who remains detained pending his sentencing scheduled for September 20, 2022, faces at least 15 years in prison and up to 60 years imprisonment on the charges. The Court will also impose a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Reed, admitted that from February 2020 to March 2021 he used a computer to download child pornography over the internet using peer-to-peer file sharing software. A subsequent search of Reed’s apartment revealed that he was in possession of 55 images and 94 video files depicting child pornography. Reed is a registered sex offender who was convicted in 2002 of Rape in the First Degree involving a victim who was 15 years old.
Reed’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Tompkins County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Inmate Pleads and is Sentenced to 18 Months in Prison for Possessing a Prohibited Object in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at Cambria County Prison pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 18 months in prison, followed by 1 year of supervised release, United States Attorney Cindy K. Chung announced today.
Peter Augustus Wright, 43, pleaded guilty to Count One of the Indictment before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, on October 22, 2020, Wright, while an inmate at Moshannon Valley Correctional Center, possessed a cellular telephone, as well as, a six-inch sharpened toothbrush, a weapon.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Wright.
Idaho I.T. Professional Charged with Misappropriating Pre-Publication Investment Recommendations for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging DAVID STONE with securities fraud in connection with an insider trading scheme. STONE was arrested yesterday and will be presented today in the United States District Court for the District of Oregon.
U.S. Attorney Damian Williams said: “As alleged, David Stone used his computer skills to extract pre-publication stock picks from an investment advice service so he could beat the markets and generate millions in trading profits. Though Stone may have thought that he could hide his scheme behind IP addresses, other losing trades, and donations to his church, he was wrong. This prosecution reflects my office’s commitment to market integrity and a fair playing field for investors.”
FBI Assistant Director Michael J. Driscoll said: “As we allege here today, Mr. Stone exploited his unauthorized access to market-moving stock recommendations to make trades in advance of their release. In relaying tips to another individual, he acknowledged his actions might be illegal and even provided advice to the individual on avoiding detection. As today's action demonstrates, the FBI and our partners remain committed to protecting the integrity of our financial markets from the unscrupulous actions of those who seek to reap illegal gains from them.”
According to the allegations in the complaint unsealed today in Manhattan federal court:[1]
From 2020 up to his arrest in 2022, DAVID STONE exploited market-moving stock recommendations made by an investment recommendation service (“Advisor-1”) before those recommendations were released to paying subscribers. STONE, an information technology (“I.T.”) professional, accessed Advisor-1’s computing system without authorization and viewed information relating to Advisor-1’s recommendations before they were announced to Advisor-1’s paying subscribers.
Advisor-1’s stock recommendations typically, but not always, lead to higher closing prices for the recommended stock as compared to the prior day’s closing price. By trading on those recommendations before they were announced, STONE was able to obtain significant profits unavailable to other market participants. In fact, since in or about November 2020, brokerage accounts associated with STONE traded ahead of Advisor-1 recommendations on more than a dozen occasions for approximately $3 million in gross gains.
In addition to his own trading, STONE supplied trading tips to at least one other person (“Tipee-1”). Between on or about January 20, 2021 up to and including on or about March 17, 2022, on approximately 45 different days, STONE sent emails to Tipee-1 providing stock names and/or ticker symbols ahead of Advisor-1 announcements of stock recommendations to its paying subscribers. Since in or about January 2021, a brokerage account associated with Tipee-1 traded ahead of Advisor-1 recommendations on more than a dozen occasions. As a result of that trading, Tipee-1 profited more than approximately $2.7 million.
Before providing tips to Tipee-1, STONE provided Tipee-1 with “guidelines” for avoiding detection and for donating some of the trading profits to a church. Specifically, on or about January 16, 2021, STONE sent an email to Tipee-1 that included the following:
I’m ok with sharing the weekly trades with you. I have used it so far to generate a significant amount of money and I'm sure you will be able to as well. There is a small possibility that what we are doing could be considered insider trading. [Advisor-1] uses only public information about to make its recommendations and even the recommendations are behind a paywall so it is a stretch to call it insider trading but it certainly behaves like it because it almost guarantees favorable price moves at a certain time.
So with that in mind these are the guidelines I am following:
. . . .
* Purchase a [Service-1] subscription from [Advisor-1] . . . and open some long term position of some of the recommendation that appeal to you
* Do other trades besides just what I tell you. If all your trades are up 5x and you never make a loosing trade it may call attention of regulators. . . .
* Pay your taxes. These trades are short term capital gains and are taxed at your regular income tax rate. You may get a significant tax bill come April 15 2022.
* Pay your tithe. This extra income has been a subject of regular prayer for me. I anticipate I will not need to keep my regular job for long when we are on the mission field. I have opened a donor advised fund which make it easy to contribute large sums of money or stocks directly and then schedule donations to be made to my church and any other charity I choose. It makes it easier to make anonymous donations as well which I feel is important.
. . . .
With these guidelines in place I can email the recommendations as soon as I know. I feel [a particular email provider] will be a more secure form of communication if it works for you.
* * *
STONE, 36, of Nampa, Idaho is charged with one count of securities fraud, which carries a maximum sentence of 25 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samuel P. Rothschild and Andrew Thomas are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to three years and one month in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, law enforcement officers were conducting surveillance on a residence on Norway Avenue in Huntington as part of a shooting investigation on July 7, 2021. Officers observed a vehicle believed to have been involved in a shooting and subsequently performed a traffic stop on the vehicle. The driver was identified as Jabar Markeith Sellers, 32, and a firearm was found in plain view in the driver’s door panel.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Sellers was aware he was prohibited from possessing a firearm because of felony convictions in Franklin County, Ohio, Court of Common Pleas for aggravated assault in June 2011 and possession of heroin in November 2016.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-120.
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Huntington Man Pleads Guilty to Firearm, Fentanyl-Involved CrimesRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty to aiding and abetting the illegal straw purchase of firearms and to conspiring to have drugs including fentanyl smuggled into the Western Regional Jail.
According to court documents and statements made in court, Corey Michael Perkins, 33, admitted to picking out four firearms at Jewelry Gold & Pawn in Huntington on June 30, 2020, telling an employee he would send someone to purchase them. Perkins knew he could not purchase the firearms himself because of a prior felony conviction. Perkins instead instructed another person to purchase the four firearms for him, providing that individual with the necessary cash. He further admitted that he aided, abetted, counseled, and induced that person to falsely state and represent on ATF Form 4473 that she was the actual transferee and buyer of the firearms, when in fact Perkins was the actual transferee and buyer of the firearms.
Perkins also admitted that while on home confinement he coordinated with multiple individuals to get drugs into the Western Regional Jail in Barboursville from November to December 2020. Perkins used recorded jail phone calls to arrange for a package containing 228 suboxone strips, 1.4 grams of fentanyl/methamphetamine mixture, and 1 gram of methamphetamine to be transported into the Western Regional Jail. Perkins utilized an inmate and a person who worked at the jail to carry out the scheme. Perkins was aware that the drugs were intended for redistribution in the jail, and that he would receive money.
Perkins is scheduled to be sentenced on August 22, 2022. He pleaded guilty to aiding and abetting the illegal straw purchase of firearms, and faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine for that crime. Perkins also pleaded guilty to conspiracy to distribute suboxone, methamphetamine, and fentanyl, and faces a maximum penalty of 20 years in prison, three years of supervised release and a $1 million fine for that offense.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the West Virginia State Police, the Huntington Police Department, and the West Virginia Division of Corrections and Rehabilitation Investigations Unit.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Courtney L. Cremeans and Ryan A. Keefe are prosecuting the cases.
The case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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. 3:22-cr-00056 and 3:21-cr-215.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty to the distribution of 5 grams or more of methamphetamine.
According to court documents and statements made in court, Jeremy Lee Pettry, 38, admitted that he sold 28.13 grams of methamphetamine to a confidential informant in Huntington on July 29, 2020. Pettry further admitted that law enforcement officers seized 2.21 grams of cocaine, 15.73 grams of heroin and 5.78 grams of methamphetamine that he intended to sell, as well as a revolver from a closet, during an August 6, 2020, search of his 25th Street residence in Huntington. Pettry also admitted to selling approximately 30 ounces of methamphetamine in the months leading up to the search of his residence.
Pettry is scheduled to be sentenced on August 15, 2022, and faces a mandatory minimum of five years and up to 40 years in prison as well as up to four years of supervised release and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) for conducting the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-246.
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Hartsville Man who Attempted Drive-Thru Bank Robbery by Taxicab Sentenced to 6 Years in Federal PrisonRead the Press Release
Florence, South Carolina --- Angel Luis Masdeu, 59, of Hartsville, has been sentenced to 6 years in federal prison after pleading guilty to attempted bank robbery.
Evidence presented to the court showed that on February 25, 2021, Masdeu took a taxicab to a bank in Hartsville where he directed the taxi driver to enter the drive-thru line and place an envelope in the pneumatic tube. The bank teller received the envelope, which contained a torn, handwritten note demanding all money from all drawers and threatening to kill and/or blow up the bank. The teller activated the alarm, and officers with the Hartsville Police Department were dispatched to the bank. After arriving on scene, officers located the taxicab in the drive-thru line and detained Masdeu. Upon searching the taxicab, officers located several envelopes matching the envelope that was used to send the note and part of a torn paper matching the tear on the note. Officers determined the taxi driver was not involved in the attempted bank robbery.
United States District Judge Sherri A. Lydon sentenced Masdeu to 72 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Hartsville Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Harrison County man indicted on firearms and witness tampering chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Raymond Wable, of Shinnston, West Virginia, was indicted today on firearms and witness tampering charges, United States Attorney William Ihlenfeld announced.
Wable, 61, was indicted today on one count of “Unlawful Possession of a Firearm” and one count of “Tampering with a Witness by Corrupt Persuasion.” Wable, a person prohibited from having firearms because of prior drug convictions, is accused of having a semi-automatic rifle in September 2020 in Harrison County. Wable is also accused of paying a witness to influence the witness’s testimony in a federal case before Senior U.S. District Judge Irene M. Keeley between October 1, 2020, and November 10, 22020 in Harrison County.
Wable faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge and faces up to 20 years of incarceration and a fine of up to $250,000 for the witness tampering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. ATF and the U.S. Probation Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Greenwich Resident Sentenced to 3 Years in Federal Prison for Defrauding Investors of Nearly $1.5 MillionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that SAMUEL KLEIN, 66, of Greenwich, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by three years of supervised release, for defrauding investors of nearly $1.5 million.
According to court documents and statements made in court, Klein controlled several different entities, including Visual Group LLC; O.S. Management, LLC; KF Pecksland LLC; Four Pines Holdings, LLC; and Payton Lane NH, Inc. In 2018, Klein made false representations to a victim investor, including that the victim’s funds would be invested in distressed debt, when Klein knew that all of the investment funds would not be used for the stated purposes. Based on these false representations, the victim investor wrote a check in the amount of $200,000 to Visual Group LLC for the purpose of making a purported investment in distressed debt. Klein caused the check to be transported from New York to Connecticut and deposited into a bank account in the name of Visual Group LLC. Klein subsequently solicited and received approximately $50,000 in additional funds from the victim investor.
The investigation further revealed that, from approximately July 2016 through at least June 2019, Klein defrauded three additional victim investors of a total of more than $1.2 million by making multiple false statements and misrepresentations.
Klein knew that all of the funds solicited from the victim investors would not be used for his stated purposes, and instead would be utilized by Klein for personal and other expenditures.
Judge Hall ordered Klein to pay restitution in the amount of $1,497,797.52.
On August 30, 2021, Klein pleaded guilty to one count of interstate transportation of property taken by fraud and one count of money laundering.
Klein, who had been released on bond, was remanded to custody at the conclusion of today’s court proceeding.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and David T. Huang.
Georgetown Man Sentenced to Five Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Julius Antwan Hicks, Jr., 38, of Georgetown has been sentenced to 5 years in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon.
Evidence presented to the court showed that on June 11, 2020, the Myrtle Beach Police Department executed a search warrant at Hicks’s residence in Myrtle Beach. During the search, officers located a firearm with an extended magazine and rounds of ammunition in one of the bedrooms. Hicks is prohibited from possessing a firearm and ammunition due to his prior convictions for Distribution of Crack Cocaine 1st Offense and Possession with Intent to Distribute Marijuana 1st Offense.
United States District Judge Sherri A. Lydon sentenced Hicks to 60 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Former Federal Agent Found Guilty of Participating in Bribery Scheme that Brought Him Approximately $100,000 in Ill-Gotten GainsRead the Press Release
LOS ANGELES – A former special agent with Homeland Security Investigations (HSI) was found guilty by a federal jury today of dozens of criminal charges for accepting cash payments and other benefits to help an organized crime-linked person, including taking official action designed to help two foreign nationals gain entry into the United States.
Felix Cisneros Jr., 48, of Murrieta, was found guilty of 30 felonies: one count of conspiracy to commit bribery of a public official, one count of bribery, 26 counts of money laundering and two counts of subscribing to a false tax return. After today's verdict was read, Cisneros was ordered immediately remanded into federal custody.
According to evidence presented at his five-day trial, over an 18-month period that started in September 2015, Cisneros accepted cash, checks, private jet travel, luxury hotel stays, meals and other items of value from a person identified in court documents as “Individual 1,” who was associated with a criminal organization. Cisneros received approximately $100,000 in checks and gifts from Individual 1 in 2015 and 2016.
Cisneros accepted the cash and other bribes while employed as a special agent with HSI, which is an agency within the United States Department of Homeland Security. In exchange for the bribes, Cisneros performed a series of official acts at the behest of Individual 1, including:
- Accessing a DHS database for information about a German national identified as W.R., and telling Individual 1 he removed a “hit” on W.R., “thus indicating derogatory information had been removed”;
- Placing an alert in a law enforcement database for an address associated with an illegal marijuana grow operation so Cisneros could learn of law enforcement interest and warn Individual 1;
- Obtaining an official DHS letter signed by an HSI assistant special agent in charge to allow the parole of Individual 1’s brother-in-law into the United States from Mexico, and later providing updates about the brother-in-law’s asylum application; and
- Collecting information on an associate of Individual 1 whose home had been searched by law enforcement and later providing Individual 1 with information about the investigation.
Cisneros also underreported his total income on his federal income tax returns by at least $20,000 for the year 2015 and at least $73,404 for the year 2016.
United States District Judge R. Gary Klausner has scheduled an August 1 sentencing hearing. The conspiracy charge carries a statutory maximum sentence of five years in federal prison, the bribery count carries a sentence of up to 15 years, each money laundering charge carries a statutory maximum sentence of 20 years’ imprisonment, and each tax count carries a statutory maximum sentence of three years in federal prison.
The FBI, IRS Criminal Investigation and the Department of Homeland Security’s Office of Inspector General investigated this matter.
Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section and Assistant United States Attorneys Michael J. Morse and Juan M. Rodriguez of the General Crimes Section are prosecuting this case.
Former FEMA Employee Pleads Guilty to Aiding in the Preparation of False Tax ReturnsRead the Press Release
Greenbelt, Maryland – Shanta Johnson, age 44, of Germantown, Maryland, pleaded guilty yesterday to aiding in the preparation of false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Inspector General Joseph V. Cuffari of the Department of Homeland Security, Office of Inspector General.
According to her guilty plea, from January 2013 through at least April 2016, while employed at the Federal Emergency Management Agency (“FEMA”), Shanta Johnson prepared and filed false tax returns with the Internal Revenue Service (“IRS”) on behalf of her taxpayer clients. As detailed in court documents, Johnson prepared at least some of these returns while at work at FEMA. The false items on these tax returns included false deductions, fictional businesses and business expenses, and fake education expenses – all of which were designed to increase her clients’ tax refunds. Johnson charged money for her services and, in many cases, directed a portion of her clients’ refunds into more than twenty bank accounts she controlled. Johnson did not report the income she received for preparing tax returns on her own tax returns. In total, Johnson prepared at least 194 tax returns. She created and used numerous email accounts to establish accounts in the names of her clients on the online tax preparation software she used to make it appear as if her clients were preparing their own tax returns. Johnson did not list herself as the paid tax preparer on any of them, as required under IRS rules. She caused a tax loss to the IRS of $217,424.
Johnson and the government have agreed that, if the Court accepts the plea agreement, Johnson will be sentenced to between six and 15 months in federal prison and will be required to pay restitution to the IRS. U.S. District Judge George J. Hazel has scheduled sentencing for August 30, 2022, at 10:00 a.m.
United States Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the IRS-CI and DHS-OIG for their work in the investigation and thanked the Maryland Comptroller’s Office for its assistance. Mr. Barron thanked Assistant U.S. Attorney Caitlin R. Cottingham and Trial Attorney Sam Bean of the Justice Department’s Tax Division, 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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Former Brooklyn Resident Pleads Guilty to $3 Million Tax Return and Covid-Relief Fraud SchemesRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick Poux pleaded guilty to filing false applications for hundreds of thousands of dollars in COVID-19 emergency relief loans in 2020 under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). Poux also pleaded guilty to fraudulently generating and submitting false tax return applications claiming millions of dollars in unearned tax refunds between 2016 and 2019. Today’s proceeding was held before United States Magistrate Judge Robert M. Levy. When sentenced, Poux faces up to 30 years in prison and a fine of up to $1 million.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“It was money not well earned, or well spent. The defendant admitted to preparing and filing false applications for millions of dollars’ worth of COVID-19 disaster relief funds and tax refunds and then spending that money on a life coach and luxury goods,” stated United States Attorney Peace. “This Office will vigorously prosecute individuals who steal taxpayer dollars, especially from critically important government programs designed to help struggling small businesses and families stay afloat during the pandemic.”
“Patrick Poux orchestrated an elaborate scheme to create false W-2 forms with excessively high federal withholdings, attempting to gain millions by using shell companies he controlled to get fraudulent tax refunds for him and his co-conspirators. Poux’s fraud went on to include COVID-19 loan applications for companies that had no operations or employees,” said Special Agent in Charge Fattorusso. “Poux lived a rich lifestyle filled with luxury goods while stealing hundreds of thousands of dollars from those who need the funds for their businesses to thrive. U.S. taxpayers have paid the bill for his lavish purchases for far too long, and today’s guilty plea ensures that Poux will soon pay it back by facing the consequences of his actions.”
The CARES Act was enacted on March 29, 2020 to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for certain specified expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Similarly, the EIDL program was a program that provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act authorized the SBA to provide EIDLs of up to $2,000,000 to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.
As set forth in court filings, between March 2020 and September 2020, amid the COVID-19 pandemic, Poux fraudulently applied for PPP and EIDL loans and grants totaling approximately $320,000, on behalf of himself and corporate entities he controlled. Poux received approximately $183,000 in COVID-19 relief loans and grants to which he was not entitled, and he spent those funds on personal expenses, including a life coach and luxury goods from stores such as Saks Fifth Avenue.
As also set forth in court filings, between 2016 and 2019, Poux and others used false wage and withholding information in income tax returns to obtain tax refunds to which they were not entitled. To advance the scheme, Poux created false tax forms for shell companies that had no operations or employees. He gave co-conspirators tax forms that falsely reported that the co-conspirator had worked at a shell company and had withheld income—even though the co-conspirator never worked at the shell company. Using these falsified forms, co-conspirators could claim substantial refunds from the United States Internal Revenue Service (IRS). In return, Poux received a percentage of such refunds. Poux and others submitted approximately 250 claims seeking a total of approximately $2.8 million in tax refunds from the IRS.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
PATRICK POUX
Age: 45
Snellville, GAE.D.N.Y. Docket No. 22-CR-117 (BMC)
Federal Indictment Returned for Columbia Man for Possessing a Firearm and MarijuanaRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a two-count indictment against Nicholas Vanover, 25, of Columbia, for being a felon in possession of a firearm and simple possession of marijuana.
The indictment alleges that Vanover possessed a firearm after having previously been convicted of a prior felony and possessed a quantity of marijuana on January 30, 2020.
Vanover faces a maximum penalty of 10 years in prison and a $250,000 fine, and is currently detained and has a detention hearing.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department.
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.
Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Federal Indictment Returned for Columbia Man for Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 3-count indictment against David Bryant, III, 24, of Columbia, for being a felon in possession of a firearm, possessing a stolen firearm, and possessing a firearm with an obliterated serial number.
The indictment alleges that Bryant, possessed 3 firearms after having previously been convicted of a prior felony, possessed a stolen firearm, and possessed a firearm with an obliterated serial number all on January 28, 2020.
Bryant faces a maximum penalty of 10 years in prison and $250,000 fine, and is currently detained pending trial.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department.
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.
Special Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Federal Indictment Returned for Columbia Man for Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 1-count indictment against Eric Grier, 54, of Columbia, for being a felon in possession of a firearm.
The indictment alleges that Grier possessed a firearm after having previously been convicted of a prior felony on October 10, 2020.
Grier faces a maximum penalty of 10 years in prison and $250,000 fine and is currently detained.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Columbia Police Department.
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.
Special Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Federal Indictment Returned for Columbia Man for Possessing a Firearm and MarijuanaRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 3-count indictment against Kendrick Mann, 36, of Columbia, for being a felon in possession of a firearm, possessing a firearm in furtherance of a drug trafficking crime, and possessing marijuana with the intent to distribute.
The indictment alleges that Mann possessed a firearm after having previously been convicted of a prior felony, possessed a firearm in furtherance of a drug trafficking crime and possessed a quantity of marijuana with the intent to distribute all on July 5, 2020.
Mann faces a maximum penalty of life in prison and a $250,000 fine and is currently detained.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Columbia Police Department.
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.
Special Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Elkins man indicted on firearms and drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Eugene McDonald, of Elkins, West Virginia, was indicted today on firearms and drug charges, United States Attorney William Ihlenfeld announced.
McDonald, 45, was indicted today on one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of a Firearm.” McDonald is accused of distributing methamphetamine in December 2020 in Marion County. McDonald, a person prohibited from having firearms because of prior convictions, is accused of having a .40 caliber semi-automatic pistol in December 2020 in Marion County.
McDonald faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. ATF and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Egyptian citizen gets massive sentence for sexually coercing Texas minorRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old man living in Massachusetts has been ordered to federal prison for nearly 34 years following multiple convictions of child exploitation, announced U.S. Attorney Jennifer B. Lowery.
On Nov. 18, 2021, U.S. District Judge David S. Morales found Ehab Sadeek guilty following a one-day bench trial.
Today, Judge Morales the court sentenced Sadeek to 405 months in federal prison.
Calling the matter one of the most “egregious cases” before the court, Judge Morales considered the emotionally moving victim statements which described the trauma that Sadeek’s misconduct caused the minor and her family. The court noted how Sadeek “terrorized an innocent” in committing his crime.
Sadeek will also serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and pay restitution to the minor victim.
On May 26, 2020, law enforcement responded to a call about a suspicious individual walking near a residence in a rural area of Corpus Christi. They discovered Sadeek outside the victim’s home.
The investigation revealed that Sadeek had groomed the minor and sent sexually explicit messages via social media for approximately two weeks. He then traveled from Massachusetts to Texas with the intent to engage sexually with the girl.
Sadeek will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the George West Police Department.
Assistant U.S. Attorneys Molly K. Smith and Dennis E. Robinson prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit. For more information about internet safety education, please visit the resources link on that page.
Distribution of Fentanyl and Illegal Possession of Firearms Results in Lengthy Federal Prison Sentence for Alexandria ManRead the Press Release
ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that Dustin Thompson, 36, of Alexandria, Louisiana, was sentenced today by United States District Judge Dee D. Drell for his involvement in the trafficking of fentanyl and illegal possession of firearms. Thompson was sentenced to 270 months (22 years, 6 months) in prison, followed by 3 years of supervised release.
Thompson was charged in an indictment returned by a federal grand jury with drug trafficking and firearms offenses. On October 4, 2021, Thompson pleaded guilty to possession with intent to distribute fentanyl and possession of firearms in furtherance of drug trafficking.
On March 12, 2018, Thompson distributed a controlled substance to an individual in Alexandria and represented to him that the substance was heroin, when in truth and in fact, it was fentanyl. After consuming what he thought to be heroin, the individual became unconscious and crashed his vehicle into the Alexandria, Louisiana Police Department.
Law enforcement officers administered NARCAN, a medicine that rapidly reverses an opioid overdose, in order to revive the victim and he was taken to a local hospital where a NARCAN drip was given to him for an extended period of time. Law enforcement officers later searched Thompson’s residence and found three loaded firearms, 54 grams of fentanyl, and a large sum of cash.
“In this case, a large amount of fentanyl was recovered. However, let it be known that the Western District of Louisiana’s United States Attorney’s Office will aggressively prosecute all illegal fentanyl trafficking cases regardless of the quantity involved and we will seek stiff sentences of imprisonment. This has become an epidemic throughout the southern part of the country and this district is no exception. These law enforcement officers are to be commended for their swift, heady action resulting in this victim’s life being spared.”
This case was investigated by the FBI, ATF and Alexandria Police Department and was prosecuted by Assistant U.S. Attorneys Seth D. Reeg and J. Aaron Crawford.
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Detroit Man Sentenced to More Than 19 Years in Federal Prison for CarjackingRead the Press Release
DETROIT – Deloneo Breham, 32, of Detroit, MI, was sentenced in federal court for carjacking and discharge of a firearm during a crime of violence, United States Attorney Dawn N. Ison announced today. Breham was sentenced by United States District Judge Nancy Edmunds to 235 months in federal prison, followed by six years of supervised release. Breham has been in custody since his arrest in February 2021.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division.
“Carjackers create an unacceptable risk of physical harm or death and erode the overall sense of safety and security in our community,” stated US Attorney Ison. “We are committed to bringing the full weight of the justice system to bear on individuals who are making our neighborhoods unsafe and who prey upon our citizens.”
“People who were just living their lives — doing ordinary things each of us has done thousands of times — were terrorized because this defendant wanted a car. No one should have to live in fear of something like that,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “Breham’s sentence should be a warning to anyone who commits a carjacking that the FBI and our law enforcement partners will find you and we will hold you accountable.”
According to court records, during the early morning hours of February 22, 2021, Breham approached a man pumping gas into his truck at a gas station on Gratiot Avenue in Detroit. Breham—armed with a handgun—told the victim to give him the keys to the truck. When the victim refused, Breham shot him in the leg. While Breham tried to open the driver’s door, the victim—a lawful CPL holder—retrieved his own firearm and shot Breham. Breham fled the scene on foot. Detroit Police responded within seven minutes and found Breham hiding in a bush nearby.
Additional facts presented to the court established that six months before the February 2021 carjacking, Breham carjacked a woman at her home. On August 31, 2020, the victim arrived home with her minor children to find Breham inside her house, armed with a gun. Breham pointed his gun at the victim and demanded the keys to her car. When the woman hesitated, Breham told her “I don’t want to do this in front of your kids.” The victim gave Breham the keys to her car and he left the house. The victim’s car was recovered from the Suez motel on Eight mile the following day.
The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Barbara Lanning and Diane Princ.
Dearborn Doctor Pleads Guilty to Diverting Prescription PillsRead the Press Release
DETROIT - Dearborn physician Tete Oniango, 47, pleaded guilty yesterday to conspiracy to distribute controlled substances, and agreed to forfeit approximately $37,000 in cash seized from his office, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division and Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
According to court records, Dr. Oniango admitted to prescribing 12,500 dosage units of hydrocodone, a powerful, Schedule II controlled substance without regard to medical necessity. Oniango issued these prescription drugs outside the course of professional medical practice and without any legitimate medical need for the drugs.
U.S. Attorney Ison said, “Hydrocodone is extremely addictive and can lead to addiction and eventual heroin use. Michigan has seen a devastating number of opioid drug overdoses in the last five years. My office remains committed to pursuing medical providers who abuse their roles as caregivers and inflict harm upon our community.”
Special Agent in Charge Tarasca stated, “Physicians who provide prescription drugs without a legitimate medical purpose are contributing to the drug epidemic in our community. The message should be clear, the FBI and our law enforcement partners will continue to focus our efforts on any doctor or healthcare professional who prioritizes profit over patient health and safety.”
“Physicians, and other medical practitioners, who place profits ahead of their patients by prescribing powerful controlled substances outside of medical necessity, unnecessarily risk the safety of those who they are charged to care for,” said Mario M. Pinto, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable those who needlessly prescribe controlled substances at the expense of the well-being of others.”
Sentencing is set for August 22, 2022.
This case was prosecuted by Assistant U.S. Attorney Philip A. Ross as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative.