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13 June 2022
Five people face federal charges for fraudulently obtaining COVID-19 relief fundingRead the Press Release
SAVANNAH, GA: Five people face charges including bank and wire fraud for allegedly using false information to secure thousands of dollars in COVID-19 relief funds.
The charges, via indictments or informations, accuse the defendants of applying for Coronavirus Aid, Relief and Economic Security (CARES) Act funding by using false financial information, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges carry statutory penalties upon conviction of up to 30 years in prison, along with fines of up to $250,000 and a period of supervised release after completion of any prison term.
There is no parole in the federal system.
“CARES Act funding provided a valuable safety net for small businesses that struggled financially during the worst of the global pandemic,” said U.S. Attorney Estes. “With our law enforcement partners, we will continue to identify and hold accountable those who would attempt to exploit these public assistance programs for their own personal enrichment.”
Those charged in the Southern District include:
- Brandon Lamar Williams, a/k/a “NH Skilo,” 30, of Savannah, charged in a second superseding federal indictment with two counts of Wire Fraud related to fraudulent applications for Paycheck Protection Program (PPP) loans. Williams also is charged in seven other counts with drug and firearm charges that carry penalties of up to life in prison.
- Cameron Mills, 30, of Hephzibah, Ga., charged with Bank Fraud; False Statement on a Loan Application; and Wire Fraud, related to applications that enabled him to secure a PPP loan.
- Jennai Mance, 34, of Fort Stewart, Ga., charged and pled guilty to Wire Fraud, related to a PPP application.
- Matthew Patsches, 24, of Hudson, Fla., pled guilty to an information charging him with Conspiracy to Commit Wire Fraud, related to two April 2021 applications for PPP loans.
- Willie Craft, 28, of Round Rock, Texas, charged with Conspiracy to Commit Wire Fraud, related to a PPP application and Economic Injury Disaster Loan application.
As alleged in the charges, the fraudulent loan applications in these cases combined to cause lenders to pay more than $130,000 to defendants.
Criminal indictments and informations contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases are being investigated by the U.S. Secret Service, the Small Business Administration Office of Inspector General, the U.S. Army Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Savannah Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Federal charges target drug trafficking organization bringing 20+ kilo loads of methamphetamine to Southwest WashingtonRead the Press Release
Tacoma – Multiple members of a methamphetamine trafficking ring were indicted last week in U.S. District Court for seven federal felonies related to their drug trafficking, announced U.S. Attorney Nick Brown. Some of the conspirators, have been charged in state court over the last ten years, but fled the jurisdiction and then returned using different names. Four of the defendants are detained pending further hearings. One remains a fugitive.
“These defendants are responsible for huge loads of methamphetamine, which continues to cause death and destruction in our community,” said U.S. Attorney Brown. “In one instance they brought 55 pounds of methamphetamine to Western Washington via Amtrak train – fortunately law enforcement seized the drugs at the Kelso train station.”
The indicted defendants are:
Jesus Venegas-Gatica, 35, of Lakewood, Washington
Jose Venegas-Gatica, 34, of Fresno, California
Juan Tolentino-Chino, 33, of Astoria, Oregon
Cristobal Venegas Diaz, 47, of Centralia, Washington
Esteban Martinez-Ortiz, 32, a citizen of Mexico, being sought by law enforcement.
According to records filed in the case, the Venegas family has been involved in drug trafficking since at least 2012. Defendant Jesus Venegas-Gatica was charged in Lewis County in 2012 in connection with a 15-pound load of methamphetamine. He fled the jurisdiction and returned under a different name. In 2013, law enforcement seized 70 pounds of meth and ten firearms from members of the drug trafficking organization. The criminal complaint details another arrest in 2019 in Kitsap County with 20 pounds of meth. In each of those cases the drug distributors fled and used aliases to return to drug trafficking.
Meth loadThe current case charges various large-scale methamphetamine deals in Cowlitz, Lewis, Grays Harbor, Pierce, and Thurston Counties. According to one informant, the Venegas family transported 20 to 25 kilograms of methamphetamine to Washington each month. Law enforcement tied these defendants to trafficking more than 105 pounds of meth at locations ranging from casino parking lots to outlet mall stores. In one instance, law enforcement caught a co-conspirator getting off an Amtrak train in Kelso, Washington with 55 pounds of methamphetamine in his luggage that he had transported from Sacramento, California.
In May 2022, authorities recovered another 19 kilos of methamphetamine when they executed search warrants at various defendant’s homes and cars.
“The culmination of this investigation signifies the DEA’s unyielding pursuit of drug trafficking organizations,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “This organization was responsible for distributing more than one hundred pounds of methamphetamine in Western Washington. The DEA, along with its federal, state and local partners will relentlessly pursue drug traffickers to keep our communities safe and healthy, no matter how long it takes.”
Due to the large amounts of drugs involved, each defendant faces a mandatory minimum ten-year prison term.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This investigation was conducted by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF).
The case is being prosecuted by Assistant United States Attorney Zachary Dillon in consultation with the Lewis County Prosecutor’s Office.
Load of methamophetamine venegas_indictment.pdf venegas_complaint.pdfFederal Jury Finds Greenbrier County Man Guilty of Child Pornography CrimesRead the Press Release
BECKLEY, W.Va. – After four days of trial, a federal jury convicted Jason Shortridge, 39, of Ronceverte, of possession and attempted distribution of child pornography.
Evidence at trial revealed that on May 1, 2019, Shortridge downloaded and made available for sharing child pornography online using a peer-to-peer file sharing program. Law enforcement subsequently executed a search warrant at Shortridge’s residence and seized a computer belonging to Shortridge. A forensic examination of the computer located hundreds of images of child pornography, primarily from the deleted space of the computer. Two computer forensic experts testified that during their examination of Shortridge’s computer, they recovered child pornography as well as search terms used to actively search for child pornography. Evidence showed that Shortridge possessed over 600 computer graphic image files containing images and videos of child pornography involving prepubescent minors.
Shortridge faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced.
“Such crimes of child sexual exploitation must never be tolerated, and I commend the investigative work of the Kanawha County Sheriff’s Department, the West Virginia State Police, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI),” said United States Attorney Will Thompson. “I also commend Assistant United States Attorneys Ryan Blackwell and Monica D. Coleman and the trial team for prosecuting the case.”
United States District Judge Frank W. Volk presided over the jury trial.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-223.
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Eastern Panhandle woman sentenced for bank fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ana Amesquita, of Kearneysville, West Virginia, was sentenced today to 12 months and one day of incarceration for bank fraud, United States Attorney William Ihlenfeld announced.
Amesquita, 27, pleaded guilty in February 2022 to one count of “Bank Fraud.” Amesquita was the head teller at the Inwood branch of City National Bank. In June 2019, Amesquita began a scheme to process ATM deposits without the supervision of a second bank employee, violating the bank’s policy. She would then take some of the cash for her own personal use and misrepresent the facts in the general ledger
Amesquita was also ordered to pay $144,661 in restitution to the bank.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The U.S. Secret Service investigated.
U.S. District Judge Gina M. Groh presided.
District Court Enjoins Vermont Pharmacy from Distributing Drugs Not Made in Compliance with FDCARead the Press Release
A federal court permanently enjoined a Colchester, Vermont, compounding pharmacy from distributing drugs unless they are manufactured in compliance with the Federal Food, Drug and Cosmetic Act (FDCA), the Justice Department announced.
In a complaint filed May 20, the United States alleged that Edge Pharm Inc., and its owners and operators Marc Chatoff and Kurt Radke, violated the FDCA by manufacturing and distributing adulterated and misbranded drugs, by causing drugs to become adulterated and misbranded while held for sale, and by introducing new unapproved drugs into interstate commerce. According to the complaint, the defendants manufactured injectable drugs intended to be sterile under conditions that fell short of the minimum requirements to ensure sterility. The complaint further alleged that U.S. Food and Drug Administration (FDA) inspections of the Edge facility between 2014 and 2021 revealed record-keeping violations, labelling inadequacies, improper airflow, structural disrepair and the presence in cleanroom suites of mold species that can cause diseases in humans which may be deadly to immunocompromised patients.
“Compounding pharmacies must ensure that their products are safe,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with the FDA to ensure that drugs are compounded in compliance with the law.”
“Edge Pharma LLC has put patients’ lives at risk by repeatedly producing drugs under insanitary conditions and failing to follow good manufacturing practice requirements,” said Director Donald Ashley of the Center for Drug Evaluation and Research (CDER) Office of Compliance. “While compounded drugs are not FDA-approved, all drug firms must prioritize patient safety, which Edge Pharma has been unable to do. This consent decree ensures that Edge Pharma will be held accountable, and FDA will continue to take all necessary steps within our regulatory authority to protect the health of the American public.”
The defendants did not admit or deny the allegations in the government’s complaint, but agreed to settle the suit and be bound by a consent decree of permanent injunction. The consent decree requires, among other things, that the defendants stop manufacturing and distributing drugs until they take specific remedial measures and demonstrate to the FDA that they will comply with federal law. Judge Chief Judge Geoffrey W. Crawford of the U.S. District Court for the District of Vermont entered the order against the defendants.
The government was represented by Trial Attorney David G. Crockett of the Civil Division’s Consumer Protection Branch, with the assistance of Claudia Zuckerman of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the District of Vermont provided valuable assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Contra Costa County Man Sentenced to 4 Years in Prison for Mail Theft and Bank Fraud Scheme Committed Throughout Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Richard Beldon Waters III, 29, formerly of Contra Costa County, was sentenced today to four years in prison for bank fraud and possession of stolen U.S. mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2020, Waters and co-defendant Desiree Bello aka Desiree Sanchez, 28, of Contra Costa County, perpetrated a mail theft and bank fraud scheme throughout Northern California.
The scheme involved stealing U.S. mail from residential mailboxes and harvesting bankcards, identification documents, financial information, checks, and personally identifiable information (PII) for use in fraudulent activity. Waters and Bello used the identification and PII of the mail theft victims to obtain money and property from banks and businesses.
On at least two occasions, Waters and Bello used identification documents and financial instruments of mail theft victims to purchase and lease vehicles from car dealerships. For example, on June 25, 2020, Bello entered a Hyundai dealership in Stockton to lease a new Hyundai Genesis G80 using a stolen identity. She made an initial $7,000 payment with a check in the victim’s name, and also submitted a lease application using the victim’s name, date of birth, California Driver’s License number, and Social Security Number. The dealership ultimately approved the application. Bello was able to drive the new G80, valued at approximately $55,490, off the lot.
Additionally, on two separate occasions in May 2020, Waters knowingly possessed stolen mail. On May 11, 2020, he was arrested in Folsom where he possessed over 300 pieces of stolen mail. Similarly, on May 18, 2020, he was arrested in El Dorado Hills where he possessed five large trash bags of mail that he and his co-schemers had just stolen minutes earlier from a residential complex.
This case was the product of an investigation by the U.S. Postal Inspection Service, the Stockton Police Department, the Folsom Police Department, the Concord Police Department, the Pittsburg Police Department, the El Dorado County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the California Highway Patrol. Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
In March 2022, Bello was sentenced to four years and nine months in prison for committing the same crimes as Waters.
Colchester Man Convicted of Drug CrimesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Carl Martin, 37, of Colchester, Vermont, was convicted on five of six counts on June 10, 2022, in United States District Court in Burlington, Vermont, following a five-day jury trial before United States District Judge William K. Sessions III.
In October 2020, Martin was charged in a multi-count federal grand jury indictment with participating in a conspiracy to sell cocaine from Fall 2018 to October 23, 2019, selling cocaine to an undercover agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on four occasions in late 2019, and during one of those drug distributions, trading cocaine for a semiautomatic pistol. According to court records and proceedings, the drug undercover investigation resulting in the charges here followed an earlier investigation into Martin’s involvement in a shooting that occurred in front of Nectar’s, a restaurant in Burlington, in February 2018. The shooter in that incident, Rashad Nashid, was sentenced to 12 ½ years in federal prison after pleading guilty to two counts of illegal firearm possession.
On June 10, 2022, the jury returned a verdict of guilty on five of six counts. The jury found Martin guilty on all counts except the count charging Martin with trading cocaine for a semiautomatic pistol. Judge Sessions ordered Martin to be detained after the jury returned its verdict and pending his sentencing.
United States Attorney Nikolas P. Kerest commended the efforts of the ATF, the Burlington Police Department, the Drug Enforcement Administration, and the Vermont State Police in the investigation and prosecution of Martin. United States Attorney Kerest also stated, “The U.S. Attorney’s Office will continue to collaborate with our federal, state, and local law enforcement partners to investigate and prosecute drug traffickers who possess and use firearms in Vermont. Prosecution of firearm-related offenses remains one of our top priorities and we appreciate the diligent and courageous work of the officers throughout Vermont on these cases.”
Martin faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of at least three years, and up to a $1,000,000 fine. Martin’s actual sentence, however, will be determined by the sentencing judge with guidance from the advisory Federal Sentencing Guidelines.
The prosecution of Martin was handled by Assistant U.S. Attorneys Wendy L. Fuller, Andrew C. Gilman, and Owen C.J. Foster. Martin was represented by Chandler Matson, Esq.
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. Please visit https://www.justice.gov/psn for more information.
Cleveland man admits to drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Lamark Hall, Jr., of Cleveland, Ohio, has admitted to a cocaine charge, United States Attorney William Ihlenfeld announced.
Hall, also known as “Cuz,” 40, pleaded guilty today to one count of “Distribution of Cocaine Base.” Hall admitted to selling cocaine base in June 2019 in Ohio County.
Hall faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Clearfield Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Andrew Knepp, 44, of Clearfield PA, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Knepp did conspire to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for October 13, 2022. The law provides for a minimum sentence of 10 years in prison and maximum sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Knepp. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Beverly Hills Man Pleads Guilty to Charge for Attempting to Hire Hitman to Murder a Woman He Briefly Dated but Later Rebuffed HimRead the Press Release
LOS ANGELES – A Beverly Hills man pleaded guilty today to a federal murder-for-hire charge for attempting to hire a hitman to kill a woman he briefly dated and who repeatedly tried to break off their relationship.
Scott Quinn Berkett, 25, pleaded guilty to one count of use of interstate facilities to commit murder-for-hire.
According to the affidavit in support of a criminal complaint in this case, Berkett met the victim online in 2020, and the woman flew to Los Angeles to meet Berkett in late October 2020. The victim, who described Berkett’s behavior as “sexually aggressive,” tried on several occasions to break off the relationship following the October trip, the affidavit states.
In April 2021, a family member, who had learned that Berkett continued to contact the victim, called and sent text messages to Berkett’s father’s phone, and, on April 20, Berkett appears to have responded saying “consider this matter closed.”
Berkett admitted in his plea agreement that, soon afterward in April 2021, he solicited and paid for murder-for-hire services via a website on the darknet that purportedly offered such services. Berkett provided the darknet group with specific directions and details about his target. As payment for the victim’s murder, Berkett send the darknet group bitcoin payments totaling approximately $13,000.
In May 2021, an undercover law enforcement officer contacted Berkett while posing as the hitman Berkett believed he had hired from the darknet group. The undercover officer sent Berkett pictures of the victim. Berkett confirmed that the pictures showed his intended victim and that he had made bitcoin payments to obtain her murder. Berkett further requested proof of her murder and made an additional $1,000 payment to the undercover officer via Western Union for her death.
United States District Judge Mark C. Scarsi scheduled a September 12 sentencing hearing, at which time Berkett will face a statutory maximum sentence of 10 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section is prosecuting this case.
Berkeley County man sentenced for role in drug trafficking and firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Matthew Todd Crimm, of Bunker Hill, West Virginia, was sentenced today to 30 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Crimm, 30, pleaded guilty in February 2022 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone.” Crimm admitted to working with others to distribute Eutylone from June 2019 to December 2020 in Berkeley and Jefferson Counties and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department, and the Metropolitan Police Department of Washington, D.C. investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. District Judge Gina M. Groh presided.
Baton Rouge Man Sentenced to Federal Prison for Defrauding an Elderly VeteranRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Shawn Phillips, age 44, of Baton Rouge, to 33 months in federal prison following his conviction for wire fraud, to run consecutively to his pending state charges. The Court further sentenced Phillips to three years of supervised release following his term of imprisonment and ordered him to pay restitution in the amount of $50,718.
According to admissions made as part of his guilty plea, Phillips befriended the victim, then took advantage of that friendship to steal over $50,718 over a 16-month period, January of 2020 to May of 2021. Phillips convinced the victim to loan him the money by claiming he needed to borrow money until his large inheritance came in. Yet, unbeknownst to the victim, at no point was Phillips expecting any inheritance.
Even when Phillips left Baton Rouge and moved to Georgia, he continued his scheme, convincing the victim to send 43 wire transfers from Baton Rouge to Georgia to fund his lifestyle there. Throughout the course of the scheme, Phillips continued his fraudulent assertion that he was waiting on an inheritance, even at points claiming to need additional money from the victim to get the ‘inheritance’ out of the court system.
This matter was investigated by Homeland Security Investigations and the Louisiana Bureau of Investigation and was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana.
The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information, please visit: https://www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Baton Rouge Man Sentenced to 74 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Darrell Dewayne Waller, age 47, of Baton Rouge, Louisiana, to 74 months in federal prison following his convictions for possession with the intent to distribute cocaine, crack cocaine, fentanyl, MDMA, and marijuana, and possession of a firearms in furtherance of a drug trafficking crime. The Court further sentenced Waller to serve three years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.
According to admissions made as part of his guilty plea, on April 8, 2020, law enforcement executed a search warrant for Waller’s residence and his vehicle. The searches of the residence and the vehicle yielded a Bersa, Model 380 ACP, .380 caliber, semi-automatic pistol, a Titan, Model 25 ACP, .25 caliber semi-automatic pistol, a Smith & Wesson, Model (TBD), .32 long caliber revolver, and a Beretta USA Corp, Model 92G, 9mm caliber, semi-automatic pistol as well as cocaine base, fentanyl, cocaine, MDMA, and marijuana,
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and East Baton Rouge Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jeremy S. Johnson.
Arizona Resident Pleads Guilty to Mail Fraud in a False Billing Scheme to Defraud a Food CompanyRead the Press Release
SACRAMENTO, Calif. —Glen Michael Martinka, 72, of Phoenix, Arizona, pleaded guilty today to mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning no later than Nov. 1, 2009, and continuing through approximately April 2012, Martinka, in his role as part owner and manager of a brokerage firm known as TSG Empire Roadrunner LLC, knowingly engaged in a false billing scheme to defraud a food company whose products the brokerage firm sold to various retailers and distributors. Martinka provided invoice numbers to his co-defendant Jeffrey Scott Davis, who, at the time, was the national sales manager for the food company. Davis then approved and submitted invoices on TSG Empire Roadrunner LLC letterhead for charges the brokerage firm was not entitled to receive. The false invoices also directed the food company to send payments to an Arizona address that Martinka controlled, rather than the brokerage firm’s headquarters where legitimately owed commissions were sent. Martinka split the fraudulently obtained money with Davis by directing checks made payable to Davis be mailed to Davis in California.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Martinka is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Sept. 12, 2022. Martinka faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gain or loss, and a three-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mail fraud and conspiracy charges remain pending against Davis. The charges are only allegations; the defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
11 June 2022
Syracuse Man Pleads Guilty to Distribution of “Molly”Read the Press Release
SYRACUSE, NEW YORK – Frederick A. Powers, age 42, of Syracuse, pled guilty yesterday to distributing N-Ethylpentylone, also known as “molly,” a Schedule I controlled substance.
The announcement was made by United States Attorney Carla B. Freedman; Matt Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Lieutenant Timothy Pritchard of the Oswego County Drug Task Force; and Chief Joseph Cecile of the Syracuse Police Department.
As part of his guilty plea, Powers admitted that on November 30, 2021, he distributed approximately 267 grams (approximately 10 ounces) of N-Ethylpentylone, also known as “molly,” to a customer outside his residence in Syracuse, in exchange for $2,500.
At sentencing, scheduled for October 12, 2022, Powers faces a maximum potential sentence of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life. 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 Homeland Security Investigations (HSI), the Oswego County Drug Task Force (comprised of Special Agents of HSI, members of the Oswego City Police Department, Fulton Police Department, Oswego County Sheriff’s Office, and U.S. Border Patrol), the Drug Enforcement Administration, the Syracuse Police Department, and Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
Binghamton Man Pleads Guilty to Methamphetamine OffenseRead the Press Release
SYRACUSE, NEW YORK – Adam Baldwin, age 41, of Binghamton, New York, pled guilty yesterday to attempted possession with intent to distribute methamphetamine.
The announcement was made by United States Attorney Carla B. Freedman and Acting Special Agent in Charge Matthew Scarpino of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Baldwin admitted that in September 2021, he agreed to receive shipments of methamphetamine, which he provided to another individual in exchange for payment. Baldwin had the shipments delivered to a store in Alexandria Bay, New York, where he picked them up. In October 2021, law enforcement intercepted two of the packages addressed to Baldwin, which contained a total of approximately 1,070 grams of pure methamphetamine.
At his sentencing scheduled for October 12, 2022, Baldwin faces a minimum term of 10 years and up to life in prison, a post-incarceration term of at least 5 years and up to lifetime supervised release, and a maximum fine of $10 million. 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 is being investigated by HSI, the Metro-Jefferson Drug Task Force (comprised of detectives from the Jefferson County Sheriff’s Office, the Watertown Police Department, and the Jefferson County District Attorney’s Office), and the Santa Ana Police Department in California, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
10 June 2022
Youngstown Man Sentenced to Prison for Selling over 100 Firearms Without a LicenseRead the Press Release
A Youngstown man was sentenced to 18 months in prison today by U.S. District Judge Benita Y. Pearson after he pleaded guilty to selling over 100 firearms without a license.
According to court documents, Josh Hones, 36, illegally possessed and sold over 100 firearms in the Youngstown area between July 2019 and August 2020. According to court documents, Hones admitted to selling firearms to and from pawnshops, gun shops, online and through Facebook messenger. Court records state that some of the firearms sold by Hones were then used to threaten people, shoot a car, facilitate drug trafficking and were later obtained by convicted felons.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this matter.
This case was prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Woman Who Defrauded Illinois Bank Using Fake Identity Sentenced to 30 Months in PrisonRead the Press Release
East St. Louis, Ill. – Heather Harper, 38, of Knoxville, Tennessee, was sentenced to thirty months in prison on Wednesday, June 8, 2022, in connection with her involvement in a conspiracy to commit bank fraud and aggravated identity theft.
In December 2020, Harper conspired with others to cash stolen checks and fraudulently obtain funds from financial institutions using stolen IDs—including driver’s licenses—belonging to real individuals living in the St. Louis metropolitan area. The scheme targeted banks located in
Southern Illinois and Missouri.When she pled guilty, Harper admitted that her conspirators broke into vehicles in the St. Louis area to steal checkbooks and IDs belonging to various individuals. Harper also admitted that her conspirators wrote checks from the stolen checkbooks made payable to other persons from whom the group had stolen identities. Harper went to banks around St. Louis and the Metro East and attempted to cash checks made payable to the persons whose identities had been stolen. Harper often disguised herself to look like the individuals on the stolen IDs, using accessories such as wigs.
Harper admitted that on December 11, 2020, she successfully cashed a check made payable to a person whose identity had been stolen at First Bank in O’Fallon, Illinois.The investigation was conducted by local law enforcement agencies, including the
O’Fallon (IL), Webster Groves, Shrewsbury, Maryland Heights, Des Peres, and St. Charles
County Police Departments, along with the United States Secret Service, Fairview Heights Domicile
Office of the Springfield Resident Office. Charges against Harper for defrauding banks in St. Louis
County are still pending.
Assistant United States Attorney Zoe J. Gross prosecuted the case.Waterloo Man Sentenced to over Seven Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm was sentenced on June 9, 2022, to 87 months in federal prison.
Dewon Campbell, age 23, of Waterloo received the sentence after a November 3, 2021 guilty plea to one count of being a felon in possession of a firearm. At the plea hearing, Campbell admitted that, on March 29, 2021, he knowingly possessed a pistol after having been convicted of a felony offense.
Campbell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Campbell was sentenced to 87 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Lisa Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and the Cedar Falls Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-2056.
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Union County Man Sentenced to 12 Years in Prison for Firearm and Drug ChargesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who was previously convicted of several felonies was sentenced to 144 months in prison for possessing and intending to distribute cocaine and oxycodone and for illegally possessing a handgun in furtherance of his drug distribution, U.S. Attorney Philip R. Sellinger announced today.
Arthur Forman, 39, of Plainfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a superseding information charging him with possession with the intent to distribute cocaine and oxycodone, possession of a firearm in the course of committing that narcotics offense, and being a previously convicted felon in possession of a handgun. Judge Hayden imposed the sentence on June 9, 2022, in Newark federal court.
According to documents filed in this case and statements made in court:
During an encounter with the Plainfield Police Department on Oct. 13, 2017, Forman resisted arrest by choking a Plainfield detective. While trying to evade capture, Forman transferred a bag containing the cocaine and firearm to a family member, who attempted to dispose of the bag and its contents by throwing it out a window. During a subsequent search of Forman’s bedroom, Plainfield police officers found numerous oxycodone pills and paraphernalia used to grind pills and package drugs for sale. Forman was previously convicted of multiple felonies under New Jersey state law, including a 2016 conviction in Union County, New Jersey for resisting arrest and eluding the police.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Jeffrey L. Matthews; the Plainfield Police Department, under the leadership of Police Director Lisa Burgess; and the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Joshua L. Haber and Deputy Chief Desiree Grace of the U.S. Attorney’s Office Criminal Division in Newark.
Two Men Charged with Illegally Trafficking Almost 60 Guns into Philadelphia from South CarolinaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Terrance Darby, 41, of Philadelphia, PA, and Ontavious Plumer, 32, of Due West, South Carolina, were charged by Superseding Indictment with gun trafficking offenses in connection with their scheme to straw purchase and transport across state lines almost 60 firearms.
Specifically, the defendants were charged with unlicensed dealing and transport of firearms, and conspiracy to engage in unlicensed dealing of firearms and to make false statements to a federally licensed firearms dealer. Darby was also charged with drug trafficking and gun possession stemming from his possession with intent to distribute methamphetamine and fentanyl, and unlawful possession of two firearms in his home in November 2021.
According to the Superseding Indictment, between November 2020 and February 2021, the defendants conspired with at least four other individuals to illegally straw-purchase almost 60 firearms from federally licensed gun shops in South Carolina, then transport these firearms via car into Philadelphia. Darby would allegedly place orders for firearms with Plumer, who would then direct co-conspirators to straw purchase firearms and transport them to Darby and his co-conspirator in Philadelphia.
This Superseding Indictment is the third set of charges brought by this Office in the last two months targeting the illegal trafficking of firearms from southern states into Philadelphia, a large northeastern city, a fact pattern which is known as the ‘iron pipeline.’ In April 2022, multiple defendants were Indicted in two federal cases involving the unlawful trafficking of approximately 400 firearms up the ‘iron pipeline’ into the city.
“Earlier this year, the Justice Department announced strategies to fight violent crime, including cracking down on firearms trafficking and the ‘iron pipeline,’ and our Office announced the indictment of fourteen people engaged in that that black-market business. With today’s charges, we have shut off yet another valve to stem the flow of guns into Philadelphia,” said U.S. Attorney Williams. “Our Office is working with urgency and determination to get guns off the streets of our city.”
“At a time when our communities have seen a spike in violent gun crime, it is more important now than ever that we hold those accountable for criminal actions,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The diligence of our local, state, and federal partners prevented more guns from circulation into the community, as the indictment alleges.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Flint Men Charged with Fraudulently Purchasing Firearms from Licensed Gun Dealers in Two States to Resell to Others for ProfitRead the Press Release
GRAND RAPIDS, MICH. – United States Attorney Mark A. Totten announced today that a federal grand jury charged two men with fraudulently acquiring 62 pistols and rifles from federally licensed firearms dealers in Michigan and Ohio by lying about who was purchasing and paying for the weapons they effectively stole from the dealers to resell to others for profit.
According to the indictment, Jonathan-Michael Brown, age 23, and Jalen Kenyatta-Malik Jackson, age 24, both of Flint, Michigan, illegally purchased 62 firearms (and attempted to purchase 19 additional firearms) from federally licensed firearms dealers using multiple fraudulent methods. Brown had previously been convicted of a felony offense and could not lawfully possess any firearms. It is alleged that Brown acquired firearms by posing as another person and using the driver’s license of that person and credit card account numbers of other victims to purchase the weapons for resale. The Indictment further alleges that Brown recruited Jackson to make false statements to gun dealers when he acquired multiple firearms using credit card numbers assigned to other victims to purchase those weapons to resell to others. As a result, the cost of the guns was passed on to others and Brown and Jackson transferred the firearms to others for profit.
Brown was charged with two counts of making false statements to firearms dealers, two counts of being a felon in possession of firearms, two counts of aggravated identity theft, conspiracy to commit wire fraud, and two counts of wire fraud. Jackson was charged with two counts of making false statements to firearms dealers, conspiracy to commit wire fraud, and two counts of wire fraud. If convicted, Brown and Jackson face a maximum of 20 years in prison on the wire fraud charges and a maximum of 10 years in prison for making false statements to firearms dealers. Brown also faces a maximum of 10 years in prison for being a felon in possession of the firearms and a mandatory consecutive 2 years in prison for aggravated identity theft. Both defendants also face a period of supervised release, restitution, and other monetary penalties. Upon conviction, a federal district judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The charges in the indictment are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until the government proves them guilty beyond a reasonable doubt in a court of law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case.
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Two Federal Inmates Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Coke, age 23, an inmate at the Federal Correctional Institution, Allenwood (FCI Allenwood), and Devonte Andrews, age 29, an inmate at FCI Allenwood, were charged separately yesterday by a federal grand jury with possessing contraband in prison.
According to United States Attorney John C. Gurganus, two federal inmates were charged with possessing contraband in prison:
- Coke was found in possession of a sharpened plastic shank on April 14, 2022; and
- Andrews was found in possession of a sharpened plastic shank on April 16, 2022.
The charges stem from an investigation by officers at FCI Allenwood and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the cases.
If convicted, Coke faces a maximum of five years of incarceration and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Three Defendants Sent to Federal Prison as a Result of Project Safe Neighborhoods CasesRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced the resolution of three cases in Shreveport today involving the illegal possession of firearms. United States District Judge Elizabeth E. Foote sentenced the following defendants:
Cedarrick Arenzo Brooks, 22, was sentenced to 120 months in prison, and Kymmton Solomon, 24, was sentenced to 51 months in prison for being convicted felons in possession of firearms. Both will serve 3 years of supervised release following their release from prison. Brooks and Solomon were both charged in October 2021 as the result of an investigation by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Shreveport/Caddo Violent Crime Abatement Team (VCAT). Agents began conducting surveillance of Solomon after he had been identified as a person of interest in multiple violent crimes by Shreveport Police Department detectives. During their investigation, agents observed Solomon as he drove to a house on Bibb Street in Shreveport and met with an unknown male, later identified as Brooks. Agents were able to see Brooks carrying what appeared to be an AR-style rifle with a high-capacity drum magazine as he got into the vehicle with Solomon.
Shortly thereafter, deputies with the Caddo Parish Sheriff’s Office initiated a traffic stop on the vehicle while driving on Mansfield Road but Solomon fled through traffic. After a pursuit, Solomon’s vehicle left the roadway and crashed on the side of the road. Solomon and the passenger, Brooks, exited the vehicle and fled on foot. Solomon fled into the woods and was taken into custody in the backyard of a residence on St. Helens Drive in Shreveport. Brooks was apprehended in the parking lot of a store on Walker Road. He was bitten by a K-9, escaped briefly, jumped on top of a car with a female and children inside, and then was tased and fell off the car.
Deputies cleared the vehicle Solomon was driving after both he and Brooks had fled and located a Zastava AK-47 rifle lying in the driver’s seat and a Carbon-15 .556 caliber pistol lying on the floorboard behind the driver’s seat. Solomon and Brooks were both arrested and interviewed. Solomon told officers that the Zastava AK-47 rifle belonged to his girlfriend but that he used it to protect himself. Brooks admitted that he knew there were two firearms in the vehicle. Solomon has a prior felony conviction for simple burglary in Caddo Parish in 2016. Brooks has a prior felony conviction for second degree battery in Ouachita Parish in 2019.
Haston Smith, Jr., 30, of Bossier City, Louisiana, was sentenced to 32 months in prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On or about October 5, 2021, agents with the ATF and the Shreveport/Caddo VCAT were conducting surveillance on Smith’s residence after he had been identified as a person of interest in an ongoing investigation by Shreveport Police Department’s Violent Crime detectives. Agents were aware that Smith was a convicted felon and could not possess firearms. Smith was observed leaving his residence with what appeared to be a handgun in his hand and get into a vehicle along with an adult female and two children. Agents maintained surveillance on Smith as he drove the vehicle from Bossier City to the Cooper Road area in Shreveport. After violating a traffic law, Smith was stopped by law enforcement agents. As they went to escort the female and children out of the vehicle, agents observed a firearm laying on the front passenger seat floorboard in plain view. The firearm was seized and identified as a Glock 23 pistol. Smith was arrested and admitted the firearm was his even though he knew as a convicted felon he was prohibited from doing so. Smith’s prior felony conviction was for illegal use of weapons in Caddo Parish in 2014.
These cases were investigated by the ATF, Shreveport Police Department, and Caddo Parish Sheriff’s Office and were prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Stock Trader Pleads Guilty to Defrauding Investors in Medical Technology CompanyRead the Press Release
A California man pleaded guilty yesterday in connection with a scheme to defraud investors in a publicly traded company’s securities and manipulate the company’s stock price.
According to court documents, Jason Nielsen, 55, of Scotts Valley, was a large shareholder of Arrayit, a publicly traded medical device company based in California. From approximately 2019 through April 2020, Nielsen engaged in an unlawful “scalping” and “spoofing” scheme to manipulate the price of Arrayit securities. Nielsen used online message boards to publicly post false and misleading information about the nature of his trading in Arrayit securities, in order to induce others to purchase Arrayit securities and thereby drive up the stock’s price, a practice known as “scalping.”
Nielsen admitted that he placed orders to buy Arrayit stock that he intended to cancel before execution. The purpose of these orders was to deceive the public and Arrayit shareholders by signaling demand for Arrayit securities which did not exist. This allowed Nielsen to sell his shares at artificially inflated prices, a practice known as “spoofing.” While engaged in these practices, Nielsen was secretly selling his own previously acquired shares at an artificially inflated price.
Nielsen pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on Oct. 24 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Stephanie M. Hinds for the Northern District of California; Special Agent in Charge Steven Ryan of the Department of Health and Human Services – Office of Inspector General (HHS-OIG); Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Sean Ragan of the FBI’s San Francisco Field Office; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group; Special Agent in Charge Kim Lampkins of the Department of Veterans Affairs – Office of Inspector General (VA-OIG), Mid-Atlantic Field Office; and Special Agent in Charge Bryan Denny of the Department of Defense Office of Inspector General’s (DoD OIG) Defense Criminal Investigative Service (DCIS) made the announcement.
HHS-OIG’s San Francisco Regional Office and Detroit Regional Office, U.S. Postal Inspection Service, the FBI, VA-OIG and DCIS investigated the case.
Acting Principal Assistant Chief Justin Weitz, Assistant Chief Jacob Foster, and Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lloyd Farnham of the Northern District of California are prosecuting the case.
The Fraud Section is using the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim, please visit https://www.justice.gov/criminal-vns/case/Nielsen.
Steward Health Care System Agrees to Pay $4.7 Million to Resolve Allegations of False Claims Act ViolationsRead the Press Release
BOSTON – Steward Health Care System LLC (Steward) and several related corporate entities have agreed to pay approximately $4.735 million to resolve allegations that its relationships with several physicians and physician practice groups violated federal law, including the False Claims Act. Despite its public denials, in the signed settlement agreement, Steward “admits, acknowledges, and accepts responsibility” for the facts underlying the government’s allegations.
Steward is one of the largest, private for-profit health care networks in the nation and the owner of multiple hospitals in Massachusetts. Steward owns and operates Steward Good Samaritan Medical Center, Inc. (GSMC), a for-profit hospital in Brockton.
According to the settlement agreement, in 2011, GSMC entered into an agreement with Brockton Urology Clinic (Brockton Urology) which obligated Brockton Urology to administer a Prostate Cancer Center of Excellence at GSMC. Steward admits that, since at least January 2012, GSMC had no Prostate Cancer Center of Excellence and Brockton Urology did not provide the services specified in the agreement with GSMC. However, from April 2011 through December 2017, GSMC purportedly paid Brockton Urology pursuant to the agreement and Brockton Urology referred patients to GSMC.
The United States reached a separate settlement agreement with Brockton Urology in February 2022 regarding this conduct.
GSMC entered into a similar agreement with a separate physician practice. Steward paid that physician practice from April 2011 through December 2015, purportedly for cancer center services. During a portion of that time, GSMC had an agreement that obligated the practice to provide a physician to serve as the director of GSMC’s Prostate Cancer Program. Steward admits, however, that the physician practice never provided a physician to serve as the director of GSMC’s Prostate Cancer Program and, in fact, did not perform any of the services specified in the agreement. That practice also referred patients to GSMC.
Over the course of the government’s investigation, Steward disclosed facts concerning two other sets of physician relationships that the United States contends violated federal law. First, in October 2010, Steward entered into a compensation arrangement with a physician pursuant to which the physician agreed to serve as GSMC’s Medical Director of Post-Acute Care Services. Steward admits that it has been unable to confirm that the physician performed the services but that it still paid the physician from November 2010 through June 2016 and that the physician referred patients to GSMC during that period. Second, Steward admits that it failed to charge the proper rent on some of its leases with physicians, physician organizations and non-physician organizations, resulting in some of those entities paying rent below fair market value. Steward admits that between January 2010 and October 2015, it leased real property to these physicians and physician organizations and that those entities were referral sources for Steward’s Massachusetts hospitals.
In connection with the settlement, GSMC has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its financial arrangements for compliance with the Anti-Kickback Statute and the Stark Law by an Independent Review Organization.
“This case is about fraud, waste, and abuse by Steward at the expense of the American taxpayers,” said United States Attorney Rachael S. Rollins. “When hospitals like Steward violate the law, we will work tirelessly to recover from them taxpayer money in order to ensure that Medicare and Medicaid funds are going to treat patients instead of supporting fraud.”
“Financial and referral arrangements between hospitals and physician practices that violate federal health care laws undermine the integrity of crucial medical decision-making,” said Phillip M. Coyne, Special Agent in Charge of HHS-OIG. “This settlement is an example of the government’s combined efforts to protect Federal health care programs and their beneficiaries from those who are alleged to have violated these laws.”
“This settlement should serve as a warning to hospitals that they should not pay referring doctors for services that they did not provide,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Here a hospital paid referring physicians under the guise of a bogus cancer center. The FBI is proud to work alongside our partners to make sure hospitals follow the law and to root out fraud anywhere in the system.”
The False Claims Act settlement resolves Steward’s self-disclosures and allegations originally brought by a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relators will receive 17 percent of the recovery.
U.S. Attorney Rollins, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. The Department of Defense’s Office of the Inspector General also provided assistance. Assistant U.S. Attorneys Charles B. Weinograd and Jessica J. Weber of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
St. Petersburg Child Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Julius Arline (31, St. Petersburg) to 40 years in federal prison, followed by a lifetime of supervised release, for engaging in the sex trafficking of minor children. Arline was also ordered to register as a sex offender and to pay restitution to the victims. Arline had pleaded guilty on March 11, 2022.
According to court documents, Julius Arline and his co-defendant, Leslie Reio, obtained, enticed and housed two child victims in a St. Petersburg hotel room, forcing them to commit commercial sex acts between March 6, 2021, and March 14, 2021. The child victims (14 and 15 years old) were rescued after being forced to take sexually explicit photographs of themselves that were used as online advertisements for commercial sex with strangers. The two children were kept in the hotel room where they were provided illegal drugs and forced to participate in a number of sex dates over an 8-day period. After being forced to engage in the sex acts and receiving payment, the child victims were required to give money to Arline and Reio.
A sentencing hearing for Reio is scheduled for July 8, 2022.
“Child sex trafficking is happening every day, and this significant sentence exemplifies HSI’s commitment to protecting children from sex trafficking crimes and victimization,” said HSI Tampa acting Assistant Special Agent in Charge Jennifer Silliman. “HSI, alongside St. Petersburg Police Department, are committed to locating, and recovering child victims, as well as ensuring predators are held responsible for their heinous crimes.”
This case was investigated by Homeland Security Investigations and the Tampa Bay Human Trafficking Task Force, with substantial assistance from St. Petersburg Police Department and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida, which is one of 13 task forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. More information about the Tampa Bay Human Trafficking Task Force can be found at www.justice.gov/usao-mdfl/humantrafficking. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
St. Louis rappers, others indicted on fentanyl conspiracy, other chargesRead the Press Release
ST. LOUIS –St. Louis rappers and others are among 14 people indicted on federal charges accusing them of running a fentanyl distribution ring in the St. Louis area.
Davante “Jizzlebuckz” Lindsey, 25, of St. Louis, Andre “Luh Half” Pearson, 25, of St. Louis County, and five others were originally indicted in April. Seven other defendants were added in a superseding indictment on Wednesday, including Edward “Edot” Hopkins, 20.
All defendants face a felony charge of conspiring to distribute fentanyl. Some are also charged with fentanyl possession, fentanyl distribution, possession of a firearm in furtherance of a drug trafficking crime, conspiracy to tamper with a witness or other crimes.
The forfeiture of nine pistols, two vehicles and more than $84,000 in cash seized during the investigation is also being sought in the indictment.
According to a detention motion filed by prosecutors, Lindsey and Pearson are leaders of the “55 Boyz,” an organization responsible for drug trafficking and gun violence throughout St. Louis, but particularly along the Interstate 55 corridor.
The others indicted are Tony Evans, 32, Araven Johnson, 27, Douglas Simpson, 33, of Normandy, Jeffrey Moore, 24, of Riverview, Shawn Liggins, 20, of Wellston, Omar Lewis, 21, Willie Lindsey, 42, Jamond “Huncho” Dismukes, 21, Travon Weatherspoon, 31, Birtha Lindsey, 41, and Erik Simmons, 28.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Spammers Plead Guilty, Company Forfeits $4.9 MillionRead the Press Release
Assistant U. S. Attorneys Sabrina L. Fève (619) 546-6786 and Melanie Pierson 546-7976
NEWS RELEASE SUMMARY – June 10, 2022
SAN DIEGO – Three employees of the affiliate marketing platform Amobee pleaded guilty in federal court today to hijacking Internet Protocol (IP) addresses to send unsolicited commercial email messages, commonly known as “spam.”
The three employees, Jacob Bychak, Mark Manoogian, and Abdul Mohammed Qayyum, joined Daniel Dye and Vincent Tarney in pleading guilty to violating the federal CAN-SPAM statute for their involvement in misusing the stolen IP addresses to send spam.
The defendants’ employer, formerly known as both Adconion Direct Inc. and Frontline Direct (hereafter, “Adconion”), previously agreed to forfeit $4,939,526 as the fraudulent proceeds of a wire fraud conspiracy in which its employees hijacked more than 500,000 IP addresses to send over 10 billion commercial emails to people in the United States and elsewhere.
IP addresses are the beginning and ending points for sending data via the internet. A discrete bundle of IP addresses in numeric order is known as a range or block. In this case, the defendants pleaded guilty to using fraudulent Letters of Authorization (“LOAs”) to take control of large blocks of IP addresses registered to eleven different entities without the registrants’ knowledge or consent. As part of the fraudulent scheme, the defendants used email accounts set up to impersonate the IP blocks’ true registrants. In particular, the defendants used and created email addresses with the true registrants’ domain name (e.g., ect.net) to impersonate real and fictitious employees. They then emailed the fraudulent LOAs, which were written on fake letterheads and included forged signatures, from these imposter email accounts to various Internet hosting companies to falsely represent to the hosting companies that the true registrants authorized them to use the IP addresses.
All the IP blocks hijacked by the defendants were IPv4 addresses. Demand for a finite number of IPv4 addresses available has driven up their value over time. Between December 2010 and September 2014, when the defendants’ conduct occurred, a block of 65,534 IP addresses, referred to as a Class B block, was worth approximately $650,000. Today, it is worth as much as $3.3 million. Internet Service Providers like Yahoo and Google routinely employ filters to block spam from reaching a recipient’s inbox. Once an IP address is associated with spam, the filters typically block messages sent from that IP address. Spammers need a constant supply of fresh unblocked IP addresses to deliver the unwanted commercial email.
The defendants’ jobs with Adconion were to acquire fresh IP addresses and employ other measures to circumvent the spam filters. To conceal Adconion’s ties to the stolen IP addresses and the spam sent from these IP addresses, the defendants used a host of DBAs, virtual addresses, and fake names provided by the company. While defendants touted ties to well-known name brands, the email marketing campaigns associated with the hijacked IP addresses included advertisements such as “BigBeautifulWomen,” “iPhone4S Promos,” and “LatinLove[Cost-per-Click].”
Today’s guilty pleas arise from an October 2018 indictment for which trial began on May 23, 2022. Following opening statements, the trial was interrupted by the recent COVID surge and had yet to resume. In exchange for misdemeanor pleas, the defendants have each agreed to admit their involvement in the scheme, to undertake 100 hours of community service, and to pay a maximum $100,000 fine.
This case was investigated by the Federal Bureau of Investigation with assistance provided by the Internal Revenue Service and the Department of Justice’s Computer Crime and Intellectual Property Section.
“The defendants generated millions of dollars for their company by high-jacking hundreds of thousands of IP addresses, enabling them to illegally inundate consumers with over 10 billion email ads,” said U.S. Attorney Randy Grossman. ““This case was the first in the nation to charge violations of the CAN-SPAM Act’s provision against using hijacked IP addresses to send spam. We are committed to using all the tools at our disposal to protect the internet and everyone who depends on it.” Grossman thanked the prosecution team as well as the investigating agencies, the American Registry of Internet Numbers, Yahoo, The Spamhaus Project, and The National Cyber-Forensics and Training Alliance.
“These defendants spent years illegally sending billions of spam emails nationwide which made millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI remains committed to pursuing these criminal conspiracies, no matter how long it takes, and holding them accountable in a court of law. I want to thank the United States Attorney’s Office for their ongoing support and partnership in bringing this case to an end.”
The defendants are scheduled to be sentenced on October 3, 2022, at 10:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS Case Number 18cr4683-GPC
Jacob Bychak Age: 36 Carlsbad, CA
Mark Manoogian Age: 39 Carlsbad, CA
Abdul Mohammed Qayyum Age: 40 Oceanside, CA
SUMMARY OF CHARGES
CAN-SPAM – Title 18, U.S.C., Section 1037(a)(5) and (b)(3)
Maximum penalty: One year in custody and $100,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
South Georgia man convicted of distribution, possession of child pornographyRead the Press Release
WAYCROSS, GA: A Coffee County man was found guilty on all counts after a two-day trial in federal court for possessing and distributing child pornography.
Ashley Marshall Carter, 41, of Douglas, Ga., was found guilty by a U.S. District Court jury on one count of Distribution of Child Pornography, and one count of Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The distribution charge carries a mandatory minimum sentence of five years in prison, up to 20, along with five years to life of supervised release and substantial financial penalties and restitution and registration upon release as a sex offender. There is no parole in the federal system.
“Our office and our partner law enforcement agencies make it a priority to identify and bring to justice those who would victimize children,” said U.S. Attorney Estes. “This guilty verdict by a jury of his peers ensures Ashley Carter will be held accountable for his crimes.”
As described in court, a task force officer working with Homeland Security Investigations identified electronic transfers of images of child exploitation originating from Carter’s Douglas address. During a subsequent search in February 2021, Carter was arrested after investigators removed multiple electronic devices from the home and identified thousands of images of child pornography.
Sentencing will be scheduled before U.S. District Court Judge Lisa Godbey Wood after completion of a presentence investigation by U.S. Probation Services.
“Finding, arresting and prosecuting those who are involved in the creation, collecting and or distribution of these disturbing images of child exploitation is one of our highest priorities, because of the devastating effects it has on our communities,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We will continue to work with our law enforcement partners to ensure these predators face justice and that our children are protected.”
The case was investigated by Homeland Security Investigations and the Lowndes County Sheriff’s Office, with assistance from the Candler County Sheriff’s Office, the Coffee County Sheriff’s Office, and the Georgia Bureau of Investigation, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Jeremiah L. Johnson.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood. Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
South Euclid Man Sentenced to 11 Years in Prison for Role in Methamphetamine ConspiracyRead the Press Release
A South Euclid man was sentenced to 11 years in prison on Thursday, June 9, 2022, by U.S. District Judge Donald C. Nugent after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of methamphetamine with intent to distribute.
According to court documents, on June 12, 2020, law enforcement officers from the United States Postal Inspection Service arrested Mark Holt Williams, 29, of South Euclid, Ohio, during a controlled delivery of a package containing a large quantity of methamphetamine. The parcel had been mailed from California to an apartment in University Heights, Ohio, but was intercepted in transit by Postal Inspectors. Williams was arrested and charged after accepting delivery of the methamphetamine parcel from an undercover Postal Inspector.
Also charged in the conspiracy is Donathan Woodson, age 30, of Warrensville Heights, Ohio. During the investigation into Williams, authorities learned that Woodson had traveled to California with Holt Williams to assist in mailing drug parcels back to Ohio. Woodson previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on August 18, 2022.
The United States Postal Inspection Service (USPIS) investigated this case with assistance from Homeland Security Investigations (HSI) and the Cuyahoga County Sheriff’s Office (CCSO). This case was prosecuted by Assistant U.S. Attorneys James P. Lewis and Elizabeth M. Crook.
Senior FARC Commander Extradited from Colombia to Face Charges of Operating a Violent Narcotics Distribution OrganizationRead the Press Release
Martin Leonel Perez Castro, also known as “Richard,” was extradited this morning to the United States from Colombia to face charges in the Eastern District of New York of leading a continuing criminal enterprise and participating in an international cocaine manufacture and distribution conspiracy. According to the indictment, court filings, and statements made in Court, the defendant was the commander of the Revolutionary Armed Forces of Colombia (FARC) 30th Front, a group that operated in southwestern Colombia. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), and Thomas Fattorusso, Executive Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the extradition and arraignment.
“As alleged, the defendant was a senior leader within FARC and used armed violence to protect a sophisticated operation that produced and distributed thousands of kilograms of cocaine on a global scale, all to help finance the paramilitary group’s mission to overthrow the Government of Colombia,” stated United States Attorney Peace. “The Department of Justice is committed to working with our international partners to dismantle destructive drug trafficking organizations, especially where their drug trafficking is used to finance violence and terrorism.”
Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, the Colombian National Police, the Government of Colombia, the New York City Police Department (NYPD), and the New York State Police (NYSP).
DEA Administrator Milgram said, “The charges today demonstrate that this violent narco-trafficking group imported tons of cocaine from Colombia into New York City. Through dedicated and tireless efforts, DEA and our global law enforcement partners have brought this senior FARC member to justice in the United States.”
“As an alleged senior FARC commander in Colombia, it’s charged that Martin Leonel Perez Castro used violence and terroristic tactics to expand the FARC’s narcotics empire while distributing thousands of pounds of cocaine across the United States and Europe. Today’s extradition is the beginning of a long road where Perez Castro will face American justice, and just as the FARC dissolved, so will his freedom,” said IRS-CI Special Agent in Charge Fattorusso.
The FARC was founded in 1964 as a left-wing paramilitary group dedicated to the violent overthrow of the Government of Colombia. Over decades of conflict, the FARC attacked Colombian government forces and used targeted killings, kidnapping, and other terrorist tactics to achieve its ends. In October 1997, the U.S. Secretary of State designated the FARC as a foreign terrorist organization (FTO). After the Government of Colombia and the FARC entered into a peace accord in 2016, the FARC formally dissolved. On November 30, 2021, the U.S. Secretary of State revoked the designation of the FARC as an FTO. The defendant’s conduct occurred prior to the 2016 peace accord.
The 30th Front, allegedly led by Perez Castro, supplied many thousands of kilograms of cocaine to other drug trafficking organizations for distribution to locations in the United States, Europe, and elsewhere, sometimes attacking rival drug trafficking groups or Colombian government forces to protect or expand FARC territory. As part of the investigation, law enforcement authorities seized over 2,500 kilograms of cocaine attributable to Perez Castro’s drug trafficking enterprise. The seizures included more than 1,000 kilograms of cocaine recovered at and near a large-scale laboratory that was co-owned by the defendant.
The extradition of Perez Castro is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Saritha Komatireddy and Andrew D. Wang are in charge of the prosecution.
The Defendant:
MARTIN LEONEL PEREZ CASTRO, also known as “Richard”
Age: 51
ColombiaE.D.N.Y. Docket No. 14-CR-465 (S-2) (RJD)
Scotts Valley Resident Pleads Guilty to Defrauding Investors in Medical Technology CompanyRead the Press Release
SAN FRANCISCO - A California man pleaded guilty yesterday in connection with a scheme to defraud investors in a publicly traded company’s securities and manipulate the company’s stock price.
According to court documents, Jason Nielsen, 48, of Scotts Valley, was a large shareholder of Arrayit, a publicly traded medical device company based in California. From approximately 2019 through April 2020, Nielsen engaged in an unlawful “scalping” and “spoofing” scheme to manipulate the price of Arrayit securities. Nielsen used online message boards to publicly post false and misleading information about the nature of his trading in Arrayit securities, in order to induce others to purchase Arrayit securities and thereby drive up the stock’s price, a practice known as “scalping.”
Nielsen admitted that he placed orders to buy Arrayit stock that he intended to cancel before execution. The purpose of these orders was to deceive the public and Arrayit shareholders by signaling demand for Arrayit securities which did not exist. This allowed Nielsen to sell his shares at artificially inflated prices, a practice known as “spoofing.” While engaged in these practices, Nielsen was secretly selling his own previously acquired shares at an artificially inflated price.
Nielsen pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on Oct. 24 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Stephanie M. Hinds for the Northern District of California; Special Agent in Charge Steven Ryan of the Department of Health and Human Services – Office of Inspector General (HHS-OIG); Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Sean Ragan of the FBI’s San Francisco Field Office; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group; Special Agent in Charge Kim Lampkins of the Department of Veterans Affairs – Office of Inspector General (VA-OIG), Mid-Atlantic Field Office; and Special Agent in Charge Bryan Denny of the Department of Defense Office of Inspector General’s (DoD OIG) Defense Criminal Investigative Service (DCIS) made the announcement.
HHS-OIG’s San Francisco Regional Office and Detroit Regional Office, U.S. Postal Inspection Service, the FBI, VA-OIG and DCIS investigated the case.
Acting Principal Assistant Chief Justin Weitz, Assistant Chief Jacob Foster, and Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lloyd Farnham of the Northern District of California are prosecuting the case.
The Fraud Section is using the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim, please visit https://www.justice.gov/criminal-vns/case/Nielsen.
Riverside Woman Sentenced to 11 Years in Prison for Possessing and Intending to Sell More Than 1½ Pounds of MethRead the Press Release
LOS ANGELES – A Riverside woman with a lengthy criminal history, including a prior drug trafficking conviction for selling methamphetamine, was sentenced today to 132 months in federal prison for several incidents in which she possessed or sold a total of more than 1.5 pounds of methamphetamine, twice in the presence of two minor girls.
Charlene Nicole Simmons, 41, was sentenced by United States District Judge Philip S. Gutierrez, who remarked at today’s court hearing that the seriousness of her offense was “affected by the presence of minors.”
Simmons pleaded guilty in October 2021 to one count of distribution of methamphetamine.
In May 2018 in Riverside County, Simmons was driving a car and was pulled over by law enforcement. During a search of her car – in which a minor was present – law enforcement seized 113 grams (0.25 pounds) of methamphetamine. In March 2019 in Riverside County, Simmons sold 6.14 grams of methamphetamine to a buyer for $650. Later that same day, Simmons sold the buyer 450.42 grams (nearly one pound) of methamphetamine for $1,460.
In May 2019, Simmons possessed with intent to distribute 132.87 grams (0.3 pounds) of methamphetamine in a backpack when she – along with two minor girls in her car – was pulled over by law enforcement.
Simmons possessed a total of 702.53 grams (1.6 pounds) of methamphetamine.
“During the times that [Simmons] possessed with intent to distribute methamphetamine, she brought minor girls with her and at least once directed one of the minors to conceal [Simmons’] crime,” prosecutors argued in a sentencing memorandum, which describes her as “a recidivist now 10-time-felon with over two decades of criminal history.”
Prior to this case, Simmons had nine felony convictions and five misdemeanor convictions between 1999 and 2011, including a felony drug trafficking conviction for selling methamphetamine, according to court documents.
“Further, she did not just sell methamphetamine, she also sold a firearm…during a drug deal,” prosecutors said in court documents.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riverside Police Department, and the Riverside County District Attorney’s Office investigated this matter.
Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office prosecuted this case.
Parker Man Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX, Ariz. – Leroy Bedell, Sr., 44, of Parker, Ariz., was sentenced yesterday by U.S. District Judge John J. Tuchi to 100 months in prison, followed by three years of supervised release. Bedell previously pleaded guilty to robbery.
On November 7, 2020, Bedell threatened the victim with a shotgun at a gas station in Parker, Arizona. Bedell then drove off in the victim’s vehicle but was stopped shortly after. While arresting Bedell, law enforcement seized a shotgun from inside the victim’s vehicle, and it matched the victim’s description of the shotgun used by Bedell during the robbery. Bedell is a member of the Colorado River Indian Tribes (“CRIT”) and the robbery occurred on the CRIT Indian Reservation.
The FBI and the CRIT PD conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00548-PHX-JJT
RELEASE NUMBER: 2022- 090_Bedell# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.More charges filed in nationwide fraud scam targeting elderly victimsRead the Press Release
HOUSTON – A 24-year-old Indian citizen has been taken into custody on charges related to a large nationwide conspiracy to commit mail fraud, announced U.S. Attorney Jennifer B. Lowery.
Anirudha Kalkote is set to make his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 2 p.m. He was incarcerated in Virginia and brought to Texas June 9 to face the charges.
The 12-count superseding indictment charges Kalkote with conspiracy and mail fraud. Also named in the indictment is MD Azad, 25, an illegal resident of Houston, who was originally charged in August 2020. He will appear again in court on the new charges in the near future.
The superseding indictment, returned June 9, accuses Azad and Kalkote of participating in a fraud ring from 2019-2020 which operated out of various cities including Houston. The scheme allegedly targeted elderly victims throughout the United States and elsewhere.
According to the charges, the ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
One such scheme allegedly involved the claim of providing computer technical support services. The indictment alleges that the scheme generally worked because fraudsters contacted victims by phone or via internet sites directing them to a particular phone number. Once victims contacted them, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then allegedly gained further access to their personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the alleged technical support but were later told they were due a refund, according to the charges. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.
The indictment alleges victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
Upon conviction, each faces up to 20 years in federal prison and a possible $250,000 fine.
Three others have already pleaded guilty in relation to the scheme and are awaiting sentencing - Sumit Kumar Singh, 24, Himanshu Kumar, 24, and MD Hasib, 26 are Indian nationals who illegally resided in Houston.
All five individuals remain in custody pending further criminal proceedings.
The FBI, U.S. Postal Inspection Service and IRS-Criminal Investigation conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison are prosecuting the case.
The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.
Moorhead, MN, Man Sentenced to 17 ½ Years in Federal Prison for Attempted Sex Trafficking of a Child and Distribution of Child PornographyRead the Press Release
FARGO – Interim United States Attorney Nicholas W. Chase announced that on June 9, 2022, U.S. District Court Chief Judge Peter D. Welte sentenced James Duane Vanraden, age 48, Moorhead, MN, to 17 ½ years in federal prison for Attempted Sex Trafficking of a Child and Distribution of Materials Containing Child Pornography. Chief Judge Welte also sentenced Vanraden to a lifetime period of supervised release.
Investigation revealed that on or about December 4, 2019, and continuing until on or about July 16, 2020, Vanraden attempted to solicit a perceived 10-year-old girl for the purpose of a commercial sex act. Specifically, on December 4, 2019, an Undercover Officer (UC) with law enforcement began a proactive Internet Crimes Against Children (ICAC) investigation and posted an advertisement on Craigslist searching for a "tutor" for his 10-year-old daughter. Vanraden responded to the Craigslist post and thereafter Vanraden and the UC began communicating via an encrypted platform. Over the ensuing seven months, Vanraden sent the UC child pornography and further arranged to engage in commercial sex with his perceived 10-year-old daughter. Eventually, Vanraden arranged for the UC to receive a $200 payment from a third party via Venmo, a mobile payment application, in exchange for the sexual activity.
On February 8, 2022, Vanraden pleaded guilty to knowingly Attempting Sex Trafficking of Children under the age of 14 and Distributing Materials Containing Child Pornography.
This case was investigated by the West Pargo Police Department, Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigations and prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Jennifer Puhl assigned to the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Milwaukee Man Sentenced to 124 Months in Federal Prison for Armed Bank RobberyRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that on June 7, 2022, Christopher Crittendon (age:33) of Milwaukee Wisconsin, was sentenced to a 124-month term of imprisonment for armed bank robbery. That term of imprisonment will be followed by an additional 36 months of supervised release. Crittendon had been convicted by a jury of bank robbery and brandishing a firearm in furtherance of a crime of violence.
The evidence presented at trial established that in 2016, Crittendon and a second man, Montrell Howard, committed a takeover-style armed robbery of a North Shore Bank in Wauwatosa, Wisconsin. Crittendon held a loaded gun to a bank teller’s head, and the men stole over $11,000 from the bank. Law enforcement was able to recover most of those funds.
“For his own gain, Mr. Crittendon entered a bank, jumped a counter, and brandished a firearm,” said U.S. Attorney Frohling. “His actions placed the well-being of bank employees and customers at risk and resulted in trauma to the victim tellers. I commend the outstanding collaboration between the FBI, the Wauwatosa Police Department, and all others involved in seeking to hold Mr. Crittendon accountable for his actions.”
“The FBI has been catching bank robbers for over a century, and we bring that extensive experience to every violation of federal law we investigate," stated FBI Special Agent in Charge Michael Hensle. "If a bank in Wisconsin is robbed, the FBI, our law enforcement partners, and the U.S. Attorney's Office will spare no resource to bring those responsible to justice."
Wauwatosa Police Chief James MacGillis extends thanks to all our law enforcement partners for their hard work and persistence in resolving this case; “This case highlights the importance of our partnerships with local, state and federal government and demonstrates how public safety is a shared responsibility for all community stakeholders.”
This case was investigated by the Wauwatosa Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Benjamin Taibleson and Christopher Ladwig.
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For Additional Information Contact:
Public Information Officer [email protected]
414-297-1700
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Mexican National Sentenced for Shooting at U.S. Border Patrol AgentRead the Press Release
DEL RIO – Today Sergio Trevino, 35, a Mexican national was sentenced to a total of 214 months in prison for shooting at two U.S. Border Patrol agents near Brackettville.
According to court documents, on January 3, 2021, U.S. Border Patrol agents attempted to stop Trevino as he drove a Chevy Suburban northbound on Texas Ranch Road 334 just north of Brackettville. A high-speed chase ensued when Trevino attempted to abscond. During the pursuit, Trevino fired multiple shots at the agents.
Spike strips were used to bring the Suburban to a stop. Trevino fled from the vehicle and was later apprehended. Six Honduran nationals were found in the vehicle along with 28-year-old Jesseca Ann Whitmire, a U.S. citizen.
On March 31, 2021, Trevino pleaded guilty to one count of assault on a federal officer and one count of using a firearm during a crime of violence. Trevino was sentenced to 94 months in prison on the assault charge and 120 months on the use of a firearm charge with both sentences to run consecutive.
“Sergio Trevino not only placed the lives of the U.S. Border Patrol agents who were attempting to apprehend him in peril, but also the lives of the undocumented noncitizens he was transporting and everyone traveling on the road that day,” said U.S. Attorney Ashley C. Hoff. “Thankfully no one was seriously injured by his senseless and dangerous actions. The collective efforts of agents from the U.S. Border Patrol, FBI, ATF, and Homeland Security Investigations, brought Mr. Trevino to justice so that he will no longer be a threat to the community for many years to come.”
“This sentence is yet another example of the vital work being conducted by HSI, and its law enforcement partners, to target individuals who are part of dangerous transnational criminal organizations spreading crime and violence in our communities,” said Craig Larrabee, Acting Special Agent in Charge, HSI San Antonio. “HSI will continue to aggressively pursue these criminal networks who put the lives of others in jeopardy for financial gain. We will not let up in our efforts to dismantle and disrupt their illicit pathways, leverage all available resources, and work together with our law enforcement partners to pursue justice.”
“Today’s sentencing sends a strong message to those who would commit violent acts against federal officers,” said Special Agent in Charge Oliver E. Rich Jr. “The FBI will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to hold violent criminals accountable for their actions at the border as well as throughout the United States.”
On June 14, 2021, Whitmire pleaded guilty to one count of conspiracy to transport illegal aliens in violation of Title 8, United States Code, Section 1324 and faces up to 10 years in federal prison. Whitmire is scheduled to be sentenced on April 4, 2023.
Trevino and Whitmire have remained in federal custody since their arrests on January 3, 2021.
HSI and FBI are investigating this case. The Texas Department of Public Safety, Kinney County Sheriff’s Office and Real County Sheriff’s Office assisted Border Patrol agents in apprehending Trevino, Whitmire and the undocumented noncitizens.
Assistant U.S. Attorney Larry W. Fadler Jr., is prosecuting this case on behalf of the government.
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Merced Man Indicted for $60,000 Credit Card FraudRead the Press Release
FRESNO, Calif. — Ruben Chavez III, 36, of Merced, was arrested today, after a federal grand jury indicted him on Thursday for credit card fraud and related identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from April 2021 through March 2022, Chavez obtained victims’ credit cards and used them to make over $60,000 in fraudulent purchases at retail stores. He also changed the victims’ mailing addresses to his own address and created fake identification cards in their names to help further his fraud.
This case is the product of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Chavez faces a maximum statutory penalty of 10 years in prison and fine of up to $250,000 for the credit card fraud, and a mandatory two-year consecutive sentence for the identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Memphis Man Charged with Trafficking 17-Year-Old Female into the New Orleans Area to Perform Commercial Sex ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DOMINIQUE PEEPLES, age 25, from Memphis, Tennessee, was charged today by a federal grand jury in a one-count indictment for bringing a seventeen-year-old female from Memphis, Tennessee to New Orleans, Louisiana and elsewhere for the purpose of having her perform commercial sex acts from in or about August 2020 and continuing until in or about January 2021. For this conduct, the indictment charges PEEPLES with Sex Trafficking of a Minor, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2.
If convicted, PEEPLES faces a mandatory minimum sentence of ten (10) years imprisonment up to life imprisonment. The defendant also faces supervised release for a minimum term of five years up to life, a fine of up to $250,000, a requirement that the defendant participate in the sex offender registration and notification program, and a mandatory $100.00 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jordan Ginsberg, Supervisor of the Public Corruption Unit, are in charge of the prosecution.
Member of Lummi Nation sentenced to 30 years in prison for aggravated sexual abuse of a minorRead the Press Release
Seattle – A 57-year-old member of the Lummi Nation was sentenced today in U.S. District Court in Seattle to 30 years in prison for aggravated sexual abuse, announced U.S. Attorney Nick Brown. U.S. District Judge Richard A. Jones sentenced Lewis Dean Armstrong to 30 years in prison, the mandatory minimum sentence for the offense and imposed a lifetime term of supervised release following prison. Armstrong will also be required to register as a sex offender.
In March 2014, Armstrong was convicted at trial of aggravated sexual abuse of a 6-year-old child. The assault occurred in March 2013, at a home on the Lummi reservation where the child was visiting her father. DNA evidence linked Armstrong to the assault.
Following the conviction, in June 2014, U.S. District Judge John C. Coughenour sentenced Armstrong to 20 years in prison, ruling the 30-year mandatory minimum sentence was unconstitutional as applied to Armstrong. On March 3, 2020, the 9th Circuit Court of Appeals upheld Armstrong’s conviction, reversed the 20-year sentence, and sent the case back for resentencing.
The case was investigated by the FBI and Lummi Nation Police Department.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.
Los Lunas man sentenced to 10 years for drug trafficking and firearms violationsRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Esteban Renteria III was sentenced on May 31 to 10 years in prison. Renteria, 26, of Los Lunas, New Mexico, pleaded guilty on July 26, 2021, to possession with the intent to distribute 40 grams and more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to the plea agreement and other court records, on Dec. 31, 2020, a New Mexico State Police Officer observed Renteria driving 102 miles per hour on Interstate 40 in Cibola County, New Mexico, and initiated a traffic stop. Upon learning that Renteria had two active arrest warrants, the officer arrested Renteria and performed an inventory of items in Renteria’s vehicle. During the inventory, the officer found a backpack containing $12,012 in cash and a loaded handgun. After obtaining a search warrant, investigators found 184 grams of fentanyl.
In his plea agreement, Renteria admitted that he intended to sell the fentanyl, that the cash was obtained by selling drugs, and that he possessed the firearm to protect his drug business.
Upon his release from prison, Renteria will be subject to five years of supervised release.
Homeland Security Investigations and the New Mexico State Police investigated this case with assistance from the Cibola County Sheriff’s Office. Assistant United States Attorney Mark Pfizenmayer prosecuted the case.
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Los Angeles Doctor to Pay $9.5 Million to Resolve Allegations of Fraud Against Medicare and Medi-CalRead the Press Release
SACRAMENTO, Calif. — United States Attorney Phillip A. Talbert announced today that Minas Kochumian M.D., a physician previously practicing in the Los Angeles area, has paid $9,486,287 to resolve allegations that he submitted false claims to Medicare and Medi-Cal for procedures and tests that were never performed. These payments include nearly $5.5 million paid by Kochumian as criminal restitution following his guilty plea to one count of health care fraud, in a separate criminal case filed in the Central District of California.
The civil settlement resolves contentions by the United States and the State of California that Kochumian, over a period of more than six years ending in April 2018, submitted claims to Medicare and Medi-Cal for procedures, services, and tests that were never conducted or administered to patients, including injections of medication designed to treat osteoarthritis and osteoporosis, drainage of tailbone cysts, and the removal and destruction of various growths. As part of the settlement agreement announced today, Kochumian admitted that he intentionally submitted false claims for payment with the intent to deceive the United States and California. In doing so, Kochumian violated both the federal False Claims Act and the California False Claims Act. Those statutes allow the government to recover damages and penalties for the presentation of false claims for payment to the United States and the State of California, respectively.
The civil settlement with Kochumian resolves allegations originally brought in a lawsuit filed by relators Elize Oganesyan and Damon Davies, Kochumian’s former medical assistant and former informational technology consultant, under the whistleblower provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblowers who filed the case against Kochumian will receive more than $1.75 million as their share of the recovery announced today. The whistleblowers’ claims for attorneys’ fees are not resolved by this settlement.
“Investigating allegations of health care fraud is an important priority for the United States Attorney’s Office,” said U.S. Attorney Talbert. “My office will continue to work closely with our federal and state partners to protect our publicly funded health care programs from the type of egregious fraud and abuse that occurred in this case.”
“When doctors misuse the state's Medi-Cal funds, they violate their Hippocratic Oath by harming a program which exists to help California’s Medi-Cal population, including the elderly, the sick and the vulnerable,” said Attorney General Bonta. “Dr. Kochumian’s alleged misconduct violated the trust of the patients in his care, and he selfishly pocketed funds that would otherwise have gone towards critical publicly funded healthcare services. My office is committed to ensuring honest care is provided to those that seek it through the Medi-Cal program. Today’s settlement sends a message: Deceitful actions that jeopardize state funds and prey on Medi-Cal recipients will not be tolerated. I applaud the important contribution of the two whistleblowers who alerted law enforcement to Dr. Kochumian’s unlawful actions.”
“Providers who exploit their status as medical professionals for financial gain undermine patient trust and waste valuable taxpayer dollars,” said Special Agent in Charge Steven Ryan, of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working tirelessly alongside our law enforcement partners to protect federal health care programs from fraud.”
The civil settlement was the result of an investigation by the Office of Inspector General of the U.S. Department of Health and Human Services. The civil lawsuit is captioned United States and State of California ex rel. Elize Oganesyan and Damon Davies v. Minas Kochumian, et al., Case No. 2:17-cv-2236 KJM JDP, and the parallel criminal case, which was filed in the Central District of California, is captioned United States v. Minas Kochumian, M.D., Case No. 2:20-CR-00423 (RGK).
Lebanon Man Sentenced for Threatening to Murder Members of the United States SenateRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former attorney, Kenelm L. Shirk, age 72, of Lebanon, Pennsylvania, was sentenced to time served of 16 months and 20 days’ imprisonment, a $10,000 fine, and one year of supervised release with conditions by U.S. District Court Judge Jennifer P. Wilson, for threatening to murder members of the United States Senate.
According to United States Attorney John C. Gurganus, on March 7, 2022, Shirk pleaded guilty to making threats to murder Democratic members of the United States Senate. On January 21, 2021, Shirk made threats to murder Democratic members of the United States Senate in retaliation for the performance of their official duties on January 6, 2021. Later that day, on January 21, 2021, Pennsylvania State Police troopers arrested Shirk while he was en route to Washington D.C. A search of Shirk’s vehicle recovered two handguns and an AR-15 rifle and loaded magazines, as well as hundreds of rounds of ammunition.
Shirk has remained in custody since this incident when bail was denied. As part of his supervision, Shirk was ordered to comply with psychiatric counseling, forfeit the weapons and ammunition involved with the case and provide a DNA sample.
The Court expressed gratitude to the law enforcement responders and Chambersburg Hospital staff for their efforts in this matter.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Franklin County District Attorney’s Office, the Cornwall Police Department, and the Washington D.C. Capitol Police. Assistant U.S. Attorney Jaime M. Keating prosecuted the case.
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Lander Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Bob Murray announced today that IAN JOSIAH TIMBANA, age 34, of Lander, Wyoming, was charged with assault resulting in serious bodily injury. Timbana appeared for an arraignment hearing on June 1, 2022, before Federal District Court Magistrate Teresa McKee and pleaded not guilty to the charge. A trial has been set for August 1, 2022 and the defendant was remanded to the custody of the United States Marshal Service.
Timbana faces up to 10 years’ imprisonment, three years of supervised release, up to a $250,000 fine, and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Michael J. Elmore is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-cr-00064-NDF
Justice Department Obtains Relief in Lawsuit Alleging Discriminatory Targeting of Hispanic HomeownersRead the Press Release
The Department of Justice today announced that the U.S. District Court for the Middle District of Florida has entered a consent order resolving the department’s Fair Housing Act claims against Advocate Law Groups of Florida P.A. (ALGF); Jon B. Lindeman Jr.; Ephigenia K. Lindeman; Summit Development Solutions USA LLC (SDS) and Haralampos “Bob” Kourouklis. The department’s lawsuit alleged that defendants discriminated on the basis of national origin when they targeted Hispanic homeowners for predatory mortgage loan modification services and interfered with those individuals’ ability to keep their homes.
The department alleged in its complaint that defendants targeted Hispanic homeowners with Spanish-language advertising that falsely promised to cut their mortgage payments in half. Defendants made the same representations to hundreds of Hispanic homeowners in person, promising lower payments in exchange for thousands of dollars of upfront fees and continuing monthly fees of as much as $550, which defendants claimed were “non-refundable.” Many of the targeted homeowners had limited English proficiency. The department’s complaint further alleged that defendants directed these homeowners not to communicate with their lenders and to stop making their monthly mortgage payments. According to the complaint, defendants did little or nothing to obtain the promised loan modifications for the homeowners, many of whom defaulted on their mortgage payments and ultimately lost their homes.
“Targeting homeowners with deceptive advertisements and predatory schemes because of their national origin and limited English proficiency is reprehensible and illegal,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “Homeowners of color and other protected groups must be safeguarded from discriminatory targeting that can lead to grave financial loss, including loss of one’s home. We will continue to use our federal civil rights laws to protect the rights of homeowners.”
“This settlement, reached in partnership with the Civil Rights Division’s Housing Section, is a major achievement for our Civil Division and its Civil Rights Unit,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We are committed to using every legal tool available, including the Fair Housing Act, to ensure that our residents enjoy their right to housing without discriminatory practices of this kind.”
The Justice Department brought this suit after Lucía Hurtado, Noemí Román, Argentina Roque and members of their families filed complaints of discrimination with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued charges of discrimination and referred the matter to the Justice Department for litigation. Hurtado, Román and Roque later intervened as plaintiffs in the department’s lawsuit.
“It is outrageous that these defendants engaged in business practices that were not only illegal and discriminatory, but also resulted in hard-working homeowners defaulting on their mortgages and losing their homes due to foreclosure,” said Demetria McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD commends the Justice Department for its commitment to enforcing the Fair Housing Act and for protecting the fair housing rights of all who call America home.”
The consent order enters a judgment against defendants for $4,595,000 to compensate people who were harmed by defendants’ conduct. Of that amount, defendants must pay a total of $95,000 to the three intervenors, plus a civil penalty to the United States. Most of the monetary judgment is suspended based on evidence of defendants’ limited net worth, including financial statements signed by defendants under penalty of perjury. The consent order requires defendants to submit updated financial statements each year during the five-year term of the settlement. If the court determines that defendants made any material misrepresentations or omissions in their original financial statements or in the annual updates, the entire judgment will be reinstated, and defendants will be immediately liable for the full amount.
In addition to monetary relief, the consent order permanently enjoins defendants from providing any mortgage relief assistance services, such as loan modifications or foreclosure defense services, and imposes reporting and recordkeeping requirements for defendants’ other real-estate activities.
This case was litigated by attorneys in the department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida.
The Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Obtains Relief in Lawsuit Alleging Discriminatory Targeting of Hispanic HomeownersRead the Press Release
WASHINGTON – The Department of Justice today announced that the U.S. District Court for the Middle District of Florida has entered a consent order resolving the department’s Fair Housing Act claims against Advocate Law Groups of Florida P.A. (ALGF); Jon B. Lindeman Jr.; Ephigenia K. Lindeman; Summit Development Solutions USA LLC (SDS) and Haralampos “Bob” Kourouklis. The department’s lawsuit alleged that defendants discriminated on the basis of national origin when they targeted Hispanic homeowners for predatory mortgage loan modification services and interfered with those individuals’ ability to keep their homes.
The department alleged in its complaint that defendants targeted Hispanic homeowners with Spanish-language advertising that falsely promised to cut their mortgage payments in half. Defendants made the same representations to hundreds of Hispanic homeowners in person, promising lower payments in exchange for thousands of dollars of upfront fees and continuing monthly fees of as much as $550, which defendants claimed were “non-refundable.” Many of the targeted homeowners had limited English proficiency. The department’s complaint further alleged that defendants directed these homeowners not to communicate with their lenders and to stop making their monthly mortgage payments. According to the complaint, defendants did little or nothing to obtain the promised loan modifications for the homeowners, many of whom defaulted on their mortgage payments and ultimately lost their homes.
“Targeting homeowners with deceptive advertisements and predatory schemes because of their national origin and limited English proficiency is reprehensible and illegal,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “Homeowners of color and other protected groups must be safeguarded from discriminatory targeting that can lead to grave financial loss, including loss of one’s home. We will continue to use our federal civil rights laws to protect the rights of homeowners.”
“This settlement, reached in partnership with the Civil Rights Division’s Housing Section, is a major achievement for our Civil Division and its Civil Rights Unit,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We are committed to using every legal tool available, including the Fair Housing Act, to ensure that our residents enjoy their right to housing without discriminatory practices of this kind.”
The Justice Department brought this suit after Lucía Hurtado, Noemí Román, Argentina Roque and members of their families filed complaints of discrimination with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued charges of discrimination and referred the matter to the Justice Department for litigation. Hurtado, Román and Roque later intervened as plaintiffs in the department’s lawsuit.
“It is outrageous that these defendants engaged in business practices that were not only illegal and discriminatory, but also resulted in hard-working homeowners defaulting on their mortgages and losing their homes due to foreclosure,” said Demetria McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD commends the Justice Department for its commitment to enforcing the Fair Housing Act and for protecting the fair housing rights of all who call America home.”
The consent order enters a judgment against defendants for $4,595,000 to compensate people who were harmed by defendants’ conduct. Of that amount, defendants must pay a total of $95,000 to the three intervenors, plus a civil penalty to the United States. Most of the monetary judgment is suspended based on evidence of defendants’ limited net worth, including financial statements signed by defendants under penalty of perjury. The consent order requires defendants to submit updated financial statements each year during the five-year term of the settlement. If the court determines that defendants made any material misrepresentations or omissions in their original financial statements or in the annual updates, the entire judgment will be reinstated, and defendants will be immediately liable for the full amount.
In addition to monetary relief, the consent order permanently enjoins defendants from providing any mortgage relief assistance services, such as loan modifications or foreclosure defense services, and imposes reporting and recordkeeping requirements for defendants’ other real-estate activities.
This case was litigated by attorneys in the department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida.
The Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Announces Investigation of the Louisiana State PoliceRead the Press Release
SHREVEPORT, La. - The Justice Department has announced that it has opened a pattern or practice investigation into the Louisiana State Police (LSP). This civil investigation will assess whether LSP uses excessive force and whether it engages in racially discriminatory policing. The investigation will include a comprehensive review of LSP policies, training, supervision, and force investigations, as well as LSP’s systems of accountability, including misconduct complaint intake, investigation, review, disposition, and discipline.
“In times of attempting to resolve controversy and conflict, the parties involved must get comfortable having uncomfortable conversations,” said U.S. Attorney Brandon B. Brown. “Today, the U.S. Department of Justice has pledged to be a conduit between the Louisiana State Police and community stakeholders, so that open lines of communication can start flowing and any concerns will not fall on deaf ears.”
“Protecting the civil rights of all Americans and building trust between law enforcement and the communities they serve are among the Justice Department’s most important responsibilities,” said Attorney General Merrick B. Garland. “This investigation, like all of our pattern or practice investigations, will seek to promote the transparency, accountability, and public trust that is essential to public safety.”
“Every American, regardless of race, has the right to constitutional policing,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Based on an extensive review of publicly available information and information provided to us, we find significant justification to investigate whether Louisiana State Police engages in excessive force and engages in racially discriminatory policing against Black residents and other people of color. The Justice Department stands ready to use every tool in our arsenal to confront allegations of misconduct and to ensure legitimacy during encounters with law enforcement.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The statute allows the Department to remedy such misconduct through civil litigation. The Department will be assessing law enforcement practices under the Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968 and Title VI of the Civil Rights Act of 1964.
The investigation is separate from any federal criminal investigation of LSP troopers.
Prior to the announcement, Department officials informed Governor John Bel Edwards, Colonel Lamar Davis, and Deputy General Counsel Gail Holland of the investigation. They pledged to cooperate with the investigation. As part of this investigation, the Department officials will reach out to community groups and members of the public to learn about their experiences with LSP.
The Special Litigation Section of the Department of Justice Civil Rights Division and the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Louisiana will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at [email protected] or by phone at (202) 353-0684. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s reporting portal, available at civilrights.justice.gov.
Information specific to the Civil Rights Division’s Police Reform Work can be found here: https://www.justice.gov/crt/file/922421/download.
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Jury Finds Doctor Guilty in $10 Million TRICARE SchemeRead the Press Release
LITTLE ROCK—An Alexander doctor has been convicted for his involvement in a multi-million-dollar kickback conspiracy at the conclusion of a week-long trial. A federal jury found Joe David “Jay” May, 41, guilty on all 22 counts for which he was indicted.
The jury returned their verdict Thursday evening after deliberating for about three hours. United States District Judge Kristine Baker presided over the trial, and Judge Baker will sentence May at a later date.
“Dr. May used his signature as a rubber stamp to help his friends rake in millions of dollars in kickbacks from fraudulent prescriptions,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “His crimes are a reprehensible abuse of his Hippocratic oath and his medical license. Our office and our federal law enforcement partners at the FBI and Department of Health and Human Services Office of Inspector General (HHS-OIG) are resolved to continue to bring to justice all other health care professionals who defraud our nation’s healthcare systems.”
A grand jury returned an indictment against May in January 2020. The indictment alleged that May signed off on illegitimate prescriptions for pain cream in order to trigger a payout from TRICARE, the nation’s insurance for veterans. A pharmacy promoter paid recruiters to find TRICARE beneficiaries, regardless of whether they needed the drugs, and then paid others to get medical professionals, including Jay May, to rubber stamp prescriptions for TRICARE beneficiaries.
TRICARE paid over $12 million for compounded drugs prescribed through this scheme. Evidence at trial indicated that May wrote 226 prescriptions over the course of ten months, for which TRICARE paid $4.63 million. All but one of those prescriptions were supplied by drug sales representatives, Glenn Hudson and Derek Clifton, both of whom have pleaded guilty in the scheme, and directed to prescribers, May and a nurse practitioner named Donna Crowder, who has also pleaded guilty. May accepted cash bribes totaling nearly $15,000 and signed off on the prescriptions without consulting patients and without determining whether or not the prescription was needed.
One recruiter hosted a meeting at Fisher Armory in North Little Rock. At that meeting, he signed people up for the drugs and offered to pay them $1,000. Thirteen of those patients were routed to Dr. May, who signed each prescription, and this group alone cost TRICARE $370,000. The conspirators learned that reimbursements from TRICARE might fall in May 2015, so April was the last opportunity to profit from the program. In the last ten days of April 2015, May signed 59 prescriptions, for which TRICARE paid $1.4M. During a single 9-week period at the height of the scheme, May deposited $9,925 cash; an FBI forensic accountant testified this was more cash than he deposited in 2014 and 2016 combined.
“TRICARE is dedicated to serving our veterans, military members, and their families,” said FBI Little Rock Special Agent in Charge James Dawson. “Dr. May displayed a lack of integrity by defrauding millions from our nation’s military insurer and lying to our Agents in an effort to conceal his crimes. The FBI is committed to working alongside our partners at the U.S. Attorney’s Office to protect our service members and their loved ones from corrupt medical professionals like Dr. May.”
“Dr. May engaged in a kickback scheme that undermined federal health care programs,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “This verdict is a testament to strong law enforcement partnerships committed to holding physicians accountable for providing quality care to beneficiaries of these programs,” said HHS-OIG Special Agent in Charge Miranda Bennett.
The statutory penalties for May’s convictions are: wire fraud, mail fraud, and falsifying records, not more than 20 years imprisonment; violation of the anti-kickback statute, not more than 10 years imprisonment; and conspiracy and making false statements, not more than five years imprisonment. In addition to any sentence imposed, May will also serve an added four years for convictions on two counts of aggravated identity theft. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not more than three years of supervised release.
The investigation was conducted by the FBI and HHS-OIG. The case was prosecuted by Assistant United States Attorneys Alexander Morgan and Stephanie Mazzanti.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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@EDARNEWS