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Thursday 28 April 2022
Federal Firearms Charges Brought Against 6 Fresno Residents Arrested in Operation No Fly ZoneRead the Press Release
FRESNO, Calif. — A federal grand jury returned four indictments today against six Fresno residents as a result of Operation No Fly Zone that sought to address a rise in the number of shootings and homicides in Fresno, U.S. Attorney Phillip A. Talbert announced.
The multi-agency, months-long investigation resulted in the arrests of over 40 individuals, including six federal defendants.
Fresno residents Patrick Anthony Feaster, 23, and Marcus Rashad Newton, 24, are charged in one indictment with one count each of being a felon in possession of a firearm. Both have prior felony convictions and are prohibited from possessing firearms.
Donald Ray Phelps Jr., 28, of Fresno, is charged with being a felon in possession of ammunition. He has a felony conviction for conspiracy to commit pandering in Orange County and is prohibited from possessing ammunition.
Reginald Keith Cannon Jr., 24, of Fresno, is charged with being a felon in possession of a firearm. He has prior felony convictions involving firearms offenses and is prohibited from possessing a firearm.
Fresno residents Taylor Washington, 21, and his mother Jawana Washington, 42, are charged in one indictment. Taylor is charged with being a felon in possession of a firearm and Jawana is charged with aiding and abetting a felon’s possession of a firearm when she provided Taylor with a 9 mm handgun, knowing that he had been convicted of two felonies involving firearms offenses and was prohibited from possessing a firearm.
According to court documents, on March 16, 2022, investigators gained information that Newton and Feaster would be meeting at a residence in Fresno so that Newton could provide Feaster with a firearm and an extended magazine. Investigators observed the meetup, and shortly after Feaster left the residence, officers attempted to conduct a traffic stop on Feaster’s car. Feaster failed to yield, bailed out of the car with a bag, and fled on foot. After a chase, officers arrested Feaster and seized the bag from him. Inside the bag, officers found a semi-automatic handgun with an extended magazine.
On March 18, 2022, investigators learned about the presence of a firearm inside a car in which Phelps was a passenger. Officers conducted a traffic stop on the car, and during a search of the car, under the seat where Phelps had been sitting, officers found a loaded, privately manufactured, semi-automatic handgun with no serial number.
On March 23, 2022, investigators received information that Cannon was in possession of a firearm at the Fashion Fair Mall. Officers reported to the mall, where they found Cannon, a parolee, and conducted a parole-compliance check on him. During a search of his person, officers found a loaded semi-automatic firearm with an extended magazine attached.
On March 25, 2022, Jawana Washington loaned a firearm to Taylor Washington. Officers conducted a traffic stop on Taylor Washington’s car, searched it, and found the firearm in the center console.
These cases are the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fresno Police Department, the Fresno-area Multi-Agency Gang Enforcement Consortium (MAGEC), the California Department of Justice Special Operations Unit, the California Department of Justice Human Trafficking / Sexual Predator Apprehension Team, the California Highway Patrol, the Fresno County Sheriff’s Office, the Kings County Sheriff’s Office, the California Department of Corrections and Rehabilitation, and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Antonio J. Pataca, Justin J. Gilio, and Kimberly A. Sanchez are prosecuting the cases.
If convicted, the defendants each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fayette County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man was sentenced today to five years and three months in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, Anthony Maurice Bell, 55, of Oak Hill, possessed more than 400 grams of a substance containing fentanyl and a firearm in Oak Hill on January 26, 2021. Bell admitted that he intended to sell the fentanyl.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA), the Oak Hill Police Department, and the Central West Virginia Drug Task Force for conducting the investigation.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-16.
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FACT SHEET: Administration Legislative Proposals in Support of Kleptocracy Asset RecoveryRead the Press Release
“The Justice Department is putting all available resources to use to hold accountable individuals whose criminal actions are enabling Russia’s unjust war in Ukraine. The President’s proposals will give the United States and our international partners critical resources and tools to dismantle the criminal networks that enable sanctions evasion; to freeze, seize, and forfeit kleptocrat assets; and to transfer the proceeds of those assets to remediate the harms the people of Ukraine are enduring from Russia’s aggression.”
~ Attorney General Merrick B. Garland, April 28, 2022
Today, as part of the President’s supplemental budget request to support Ukraine, the Administration will send a package of proposals to Congress that would enhance the Justice Department’s ability to hold the Kremlin and Russian oligarchs accountable for the ongoing invasion of Ukraine.
In March, Attorney General Garland launched Task Force KleptoCapture, an interagency law enforcement task force led by Justice Department prosecutors that is dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Since that time, the Justice Department has worked with international partners to seize a Russian oligarch’s $90 million luxury yacht and seized approximately $625,000 associated with sanctioned parties held at nine U.S. financial institutions. Those seizures are based on sanctions violations by several specially designated Russian nationals. The Justice Department has also charged Russian oligarchs and their associates for evading sanctions, as well as foreign malign influence operations, arising from illegal efforts to promote Russian propaganda and undermine Ukrainian democracy and society.
The President’s supplemental budget request and accompanying proposals will give the Justice Department critical resources and tools to impose serious costs for Russia’s unjustified aggression, and to isolate and target the crimes of Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct. In addition to the Administration’s announced proposal to streamline asset forfeiture proceedings in certain circumstances, the following critical proposals would strengthen the Justice Department’s efforts:
- Enabling the Transfer of the Proceeds of Forfeited Kleptocrat Property to Ukraine to Remediate Harms of Russian Aggression. The proposal would improve the United States’ ability to use forfeited funds to remediate harms caused to Ukraine by Russia’s war of aggression against Ukraine. Generally, forfeited funds are used to compensate victims of the crimes underlying the forfeitures and for law enforcement purposes. This proposal would permit the Departments of Justice, the Treasury, and State to work together to return funds forfeited to the U.S. government to remediate harms of Russian aggression toward Ukraine. Providing this authority requires amendments to multiple statutes governing the use of forfeited funds.
- Clamping Down on Facilitation of Sanctions Evasion. This proposal would expand forfeiture authorities under the International Emergency Economic Powers Act (IEEPA) to reach property used to facilitate sanctions violations enabling the government to take away the violators’ “tools of the trade.” This proposal would amend IEEPA’s penalty provision to extend the existing forfeiture authorities to facilitating property, not just to proceeds of the offenses.
- Modernizing Racketeering to Include Sanctions Evasion. This proposal would improve the United States’ ability to investigate and prosecute sanctions evasion and export control violations by adding criminal violations of IEEPA and the Export Control Reform Act (ECRA) to the definition of racketeering activity in the Racketeer Influenced and Corrupt Organizations (RICO) Act. This proposal would extend a powerful forfeiture tool against racketeering enterprises engaged in sanctions evasion.
- Expanding the Time Limit to “Follow the Money.” This proposal would ensure that the United States can prosecute violators and seek forfeitures based on foreign offenses more effectively by extending the statute of limitations from five years to 10 years. The change would also extend the statute of limitations for seeking forfeiture of property based on these offenses, as a critical tool to deprive criminals of their ill‑gotten gains.
- Leveraging Foreign Partners’ Ability to Recover Oligarch Wealth. This proposal would improve the United States’ ability to work with our international partners to recover assets linked to foreign corruption. As kleptocrats and other criminals commit crimes and launder money in multiple jurisdictions, this proposal would expand upon existing U.S. law to facilitate enforcement of foreign restraint and forfeiture orders for criminal property. The proposal would improve our ability to take these actions here in the United States in support of international efforts to forfeit criminal property.
East St. Louis Man Sentenced to 30 Years Imprisonment for Production of Child Pornography and Gun OffenseRead the Press Release
EAST ST. LOUIS, Ill. – Dinish L. Watson, 26, of East St. Louis, Illinois, was sentenced to 30 years
in federal prison on Wednesday, April 27, 2022, for Production of Child Pornography and Felon in
Possession of a Firearm. Following his release from prison, Watson will serve a five-year term of
supervised release. Watson was also ordered to register as a sex offender.
According to court documents, on January 11, 2021, the United States Marshal’s Service (USMS)
executed an arrest warrant at Watson’s residence for one of Watson’s friends. Discovered during the
arrest was a Del-Ton 5.56 caliber rifle with a loaded extended magazine, a Sig Sauer 9mm pistol, a
bullet proof vest, and additional ammunition. Watson admitted to law enforcement
officials that he had previously held the rifle and posed for pictures with it. Watson later
messaged two different friends on a social media application indicating that law enforcement had
taken his guns. Evidence adduced at the sentencing hearing showed that Watson had acquired at least
one firearm after his contact with USMS and that Watson claimed affiliation with a local gang in
East St. Louis.Separately, in late January of 2021, the East St. Louis Police Department and the Public Safety
Enforcement Group (PSEG) received information that Watson had engaged in a
sexual relationship with a 16-year-old female. The investigation revealed that he repeatedly
engaged in sexual conduct with the 16-year-old and filmed her performing a sex act on
him. While law enforcement investigated the case, Watson threatened the 16-year-old and posted
the video of the sex act to a social media website.Watson has prior felony convictions for Aggravated Battery and Stealing from a Person. He was on
probation at the time of the offenses.This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to
be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together
to identify the most pressing violent crime problems in the community and
develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.This case was investigated by Public Safety Enforcement Group (PSEG), the East St. Louis Police
Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). PSEG is an Illinois
State Police unit embedded in and working in direct partnership with the East St.
Louis Police Department.
Assistant U.S. Attorney Laura Reppert prosecuted the case.East Chicago Man Sentenced to 24 Months in PrisonRead the Press Release
HAMMOND- Morris Burdette, 30 years old, of East Chicago, Indiana, was sentenced by United States District Court Judge James T. Moody on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Burdette was sentenced to 24 months in prison followed by 2 years of supervised release.
According to documents in the case, on September 10, 2020, Officers responded to a shots fired call in East Chicago and encountered Burdette at the scene. While possessing a firearm, Burdette fled from law enforcement, and was arrested as he attempted to throw the firearm over a fence. According to his criminal history, Burdette had a prior felony conviction for robbery, making his possession of a firearm or ammunition illegal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives/High Intensity Drug Trafficking Task Force with the assistance of the East Chicago Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Doctor Sentenced in $12 Million Medicare Fraud and Device Adulteration SchemeRead the Press Release
A California doctor was sentenced today to 93 months in prison for defrauding Medicare, re-packaging single-use catheters for re-use on patients, and submitting false declarations in a bankruptcy proceeding.
According to court documents, Donald Woo Lee, 55, of Temecula, recruited Medicare beneficiaries to his clinics, falsely diagnosed the beneficiaries, and provided the beneficiaries with medically unnecessary procedures. Lee billed these unnecessary procedures to Medicare using an inappropriate code in order to obtain a higher reimbursement, a practice known as “upcoding.” In addition, the evidence showed that Lee re-packaged used, contaminated catheters for re-use on patients. These catheters had been cleared by the Food and Drug Administration (FDA) for marketing as single-use only and the re-use of these devices put patients at risk of infection and other bodily injury. Lee submitted claims of approximately $12 million to Medicare for the vein ablation procedures he performed, and received $4.5 million as a result.
In October 2019, Lee was convicted after a five-day trial, when a jury found him guilty of seven counts of health care fraud and one count of adulteration of a medical device. Lee also pleaded guilty on March 2, 2020, to one count of submitting false declarations in a bankruptcy proceeding. In addition to the term of imprisonment, Lee was sentenced to serve three years of supervised release and ordered to pay more than $4.5 million in restitution to Medicare.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office; and Special Agent in Charge Lisa Malinowski of the FDA’s Office of Criminal Investigations’ (FDA-OCI) Los Angeles Field Office, made the announcement.
The FBI, HHS-OIG, and FDA-OCI investigated the case.
Assistant Chief Alexis Gregorian and Trial Attorney Emily Culbertson of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
District Man Sentenced to Nine Years in Prison for Armed Robbery of Northwest Washington Liquor StoreRead the Press Release
WASHINGTON – Leon A. Miller, 33, of Washington, D.C., was sentenced today to a nine-year prison term for armed robbery and a firearms offense stemming from a hold-up last fall at a liquor store in Northwest Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Miller pleaded guilty in February 2022, in the Superior Court of the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for Miller to be sentenced to a term of imprisonment between seven and nine years. The Honorable J. Michael Ryan accepted the plea and sentenced Miller accordingly. Following his prison term, Miller will be placed on five years of supervised release.
In court documents, Miller also admitted to committing two other robberies of liquor stores, also in Northwest Washington, and of two store customers. The five robberies took place on three successive evenings.
Miller pleaded guilty to charges stemming from the Oct. 14, 2021, robbery of Paul’s Wine and Spirits, in the 5200 block of Wisconsin Avenue NW. According to a factual proffer, Miller entered the store at approximately 6 p.m., brandished what appeared to be a black handgun, and demanded that a store employee open the cash registers. He stole about $200 in cash. He also demanded three specific kinds of champagne, none of which the store carries.
Miller also admitted robbing The Wine Specialist, in the 1100 block of 20th Street NW, on the evening of Oct. 12, 2021. There, he also brandished what appeared to be a black handgun and demanded that an employee open the cash registers. He took approximately $2,000 in cash as well as two bottles of champagne, valued at roughly $950.
The next evening, Oct. 13, 2021, Miller entered Press Liquors, in the 500 block of 14th Street, brandished what appeared to be a black handgun, and demanded an employee open the registers. He stole approximately $900 in cash. In addition, he brandished the gun at two customers and took their wallets and phones.
Miller was arrested about an hour after the robbery of Paul’s, near the Dupont Circle Metro station. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Metro Transit Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal Waddy, and Assistant U.S. Attorney Paul V. Courtney, who investigated and prosecuted the matter.
Convicted Felon Sentenced to 84 Months Imprisonment for Illegal Possession of FirearmRead the Press Release
EAST ST. LOUIS, Ill. – Bernard L. Mosley, Jr., 23, of East St. Louis, Illinois, was sentenced to 84
months in federal prison on Tuesday, April 26, 2022, for being a Felon in Possession of a Firearm.
As part of his sentence, Mosley will serve a two-year term of supervised release following his
release from federal prison.On August 4, 2020, the United States Marshals Service located Mosley at a house in East St. Louis
and arrested him on an active warrant. At the time of his arrest, Mosley was in possession of a
loaded handgun. Federal law prohibits convicted felons from possessing firearms or
firearm ammunition. A federal grand jury indicted Mosley in October of 2020, and Mosley pled
guilty on February 22, 2022.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),
United States Marshals Service Great Lakes Regional Fugitive Task Force, and the Illinois State
Police.
Assistant U.S. Attorneys Ali Burns and David Dean prosecuted the case.Convicted Felon Sentenced to 84 Months Imprisonment for Illegal Possession of FirearmRead the Press Release
EAST ST. LOUIS, Ill. – Bernard L. Mosley, Jr., 23, of East St. Louis, Illinois, was sentenced to 84
months in federal prison on Tuesday, April 26, 2022, for being a Felon in Possession of a Firearm.
As part of his sentence, Mosley will serve a two-year term of supervised release following his
release from federal prison.On August 4, 2020, the United States Marshals Service located Mosley at a house in East St. Louis
and arrested him on an active warrant. At the time of his arrest, Mosley was in possession of a
loaded handgun. Federal law prohibits convicted felons from possessing firearms or
firearm ammunition. A federal grand jury indicted Mosley in October of 2020, and Mosley pled
guilty on February 22, 2022.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),
United States Marshals Service Great Lakes Regional Fugitive Task Force, and the Illinois State
Police.
Assistant U.S. Attorneys Ali Burns and David Dean prosecuted the case.Convicted Felon Pleads Guilty to Fraud, Identity Theft, and Firearm OffensesRead the Press Release
NEWPORT NEWS, Va. – A six-time convicted felon from Richmond pleaded guilty today to conspiring to commit bank fraud, aggravated identity theft, and illegally possessing a firearm.
According to court documents, from around October 2020 through January 2021, Wilbert Bouldin, 25, joined together with at least two other men to defraud banks out of money and property under their custody and control. Bouldin and his coconspirators used the stolen driver’s license and social security card of an identity theft victim to negotiate thousands of dollars in counterfeit and stolen checks at banks in Williamsburg, Gloucester, Newport News, Hampton, and Richmond.
Bouldin has six prior felony convictions for fraud, firearm, and drug offenses. He and one of his codefendants are aspiring musicians who have released music under the moniker,
“Rich Felons.” When police went to arrest Bouldin, he fled from the law enforcement, but was ultimately apprehended in possession of a Smith & Wesson, SD9VE semi-automatic handgun – a firearm he is not allowed to possess as a convicted felon.Bouldin pleaded guilty to conspiring to commit bank fraud, aggravated identity theft, and possession of a firearm by a prohibited person. He faces a mandatory minimum sentence of two years and a maximum sentence of 42 years in prison when sentenced on August 26. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney Mack Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-13.
Convicted Bank Robber Indicted for EscapeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek T. Smith, age 54, of Harrisburg, Pennsylvania and previously of Maryland, was indicted on April 27, 2022, by a federal grand jury on escape charges.
According to United States Attorney John C. Gurganus, the indictment alleges that on April 21, 2022, Smith escaped from custody of the Capital Pavilion Residential Reentry Center in Dauphin County, where he was confined following his conviction for Bank Robbery. Following the escape, he was apprehended on April 23, 2022.
The case was investigated by the U.S. Marshals Service Fugitive Task Force. Assistant U.S. Attorney Johnny Baer is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to distribution of 5 or more grams of methamphetamine.
According to court documents and statements made in court, Colin Webb, 32, admitted that he sold approximately 2 ounces of methamphetamine to a confidential informant for $760 in a Kanawha City parking lot on February 13, 2020.
Webb is scheduled to be sentenced on July 21, 2022, and faces a mandatory minimum of five years and up to 40 in prison as well as up to four years of supervised release and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) for conducting the investigation.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-53.
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Cameroonian Citizen Sentenced for Online Pet Purchasing ConspiracyRead the Press Release
A Cameroonian national was sentenced today to 21 months in prison and two years of supervised release for his role in a scheme to trick American consumers into paying fees for pets that were never delivered and for using the COVID-19 crisis as an excuse to extract higher fees from victims.
“The Department of Justice will pursue criminals anywhere in the world when they target and exploit American consumers through fraud schemes, including when they take advantage of the circumstances presented by the COVID-19 pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We appreciate our partners at the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI, as well as the assistance from Romanian law enforcement in arresting and extraditing this defendant.”
Desmond Fodje Bobga, 29, was extradited to the United States from Romania in April 2021. According to court documents, from approximately June 2018 to approximately June 2020, Bobga conspired with others to offer pets for sale on internet websites. He and others communicated by text message and email with potential victims to induce purchases. Following each purchase, Bobga and co-conspirators claimed that a transportation company would deliver the pet and provided a false tracking number for the pet. Bobga and his co-conspirators, posing as the transportation company, then claimed the pet transport was delayed and that the victim needed to pay additional money for delivery of the pet.
Bobga and co-conspirators told some victims that they needed to pay more money for delivery because the pet had been exposed to COVID-19. The perpetrators used false promises and bogus documents regarding shipping fees and COVID-19 exposure to extract successive payments from victims. Once Bobga and the co-conspirators received money directly and indirectly through wire communications from the victims, they never delivered any pets.
“While many people came together to support each other during the pandemic, this defendant chose to use COVID-19 as a means to defraud the victims in this matter and he will now serve a prison sentence to answer for that crime,” said U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania. “Our office remains committed to addressing all types of fraud committed in relation to the pandemic.”
“Mr. Bobga was a scam artist, plain and simple,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “He exploited those who were looking for comfort during the COVID pandemic and cashed in at their expense. The FBI is firmly committed to holding fraudsters like Mr. Bobga accountable.”
The FBI’s Pittsburgh Field Office investigated the case. The Justice Department’s Office of International Affairs provided substantial assistance. Law enforcement authorities in Romania, including the Romanian National Police, Directorate for Combating Organized Crime and the Cluj Brigade for Combating Organized Crime, provided significant cooperation.
Assistant U.S. Attorney Christopher M. Cook for the Western District of Pennsylvania and Trial Attorney Wei Xiang of the Civil Division’s Consumer Protection Branch prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Cameroonian Citizen Sentenced for Online Pet Purchasing ConspiracyRead the Press Release
WASHINGTON – A Cameroonian national was sentenced today to 21 months in prison and two years of supervised release for his role in a scheme to trick American consumers into paying fees for pets that were never delivered and for using the COVID-19 crisis as an excuse to extract higher fees from victims.
“The Department of Justice will pursue criminals anywhere in the world when they target and exploit American consumers through fraud schemes, including when they take advantage of the circumstances presented by the COVID-19 pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We appreciate our partners at the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI, as well as the assistance from Romanian law enforcement in arresting and extraditing this defendant.”
Desmond Fodje Bobga, 29, was extradited to the United States from Romania in April 2021. According to court documents, from approximately June 2018 to approximately June 2020, Bobga conspired with others to offer pets for sale on internet websites. He and others communicated by text message and email with potential victims to induce purchases. Following each purchase, Bobga and co-conspirators claimed that a transportation company would deliver the pet and provided a false tracking number for the pet. Bobga and his co-conspirators, posing as the transportation company, then claimed the pet transport was delayed and that the victim needed to pay additional money for delivery of the pet.
Bobga and co-conspirators told some victims that they needed to pay more money for delivery because the pet had been exposed to COVID-19. The perpetrators used false promises and bogus documents regarding shipping fees and COVID-19 exposure to extract successive payments from victims. Once Bobga and the co-conspirators received money directly and indirectly through wire communications from the victims, they never delivered any pets.
“While many people came together to support each other during the pandemic, this defendant chose to use COVID-19 as a means to defraud the victims in this matter and he will now serve a prison sentence to answer for that crime,” said U.S. Attorney Cindy K. Chung. “Our office remains committed to addressing all types of fraud committed in relation to the pandemic.”
"Mr. Bobga was a scam artist, plain and simple," said FBI Pittsburgh Special Agent in Charge Mike Nordwall. "He exploited those who were looking for comfort during the COVID pandemic and cashed in at their expense. The FBI is firmly committed to holding fraudsters like Mr. Bobga accountable."
The FBI’s Pittsburgh Field Office investigated the case. The Justice Department’s Office of International Affairs provided substantial assistance. Law enforcement authorities in Romania,
including the Romanian National Police, Directorate for Combating Organized Crime and the Cluj Brigade for Combating Organized Crime, provided significant cooperation.Assistant U.S. Attorney Christopher M. Cook for the Western District of Pennsylvania and Trial Attorney Wei Xiang of the Civil Division’s Consumer Protection Branch prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Cadott Pharmacy to Pay Civil Penalty for Controlled Substance Dispensing and Recordkeeping ViolationsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced today that Cadott Miller Pharmacy, Ltd., located in Cadott, Wisconsin, entered into a settlement agreement to pay $20,000 to resolve civil allegations that it violated the Controlled Substances Act (CSA) by dispensing controlled substances outside the usual course of professional pharmacy practice, among other CSA violations.
As a registrant with the U.S. Drug Enforcement Administration (DEA), the CSA required the pharmacy to be both knowledgeable of and to adhere to federal and state statutes and regulations concerning the receipt, storage, recordkeeping, distribution, dispensing, and destruction of controlled substances.
Between 2017 and 2019, the DEA executed several administrative inspection warrants to review the pharmacy’s operations. As part of the inspections, the DEA investigated the pharmacy’s practices regarding the receiving, dispensing, and recordkeeping of controlled substances. On December 17, 2019, after determining the pharmacy’s compliance measures were unsuccessful, DEA served an immediate suspension order of the pharmacy’s DEA Certificate of Registration, and Cadott Miller Pharmacy voluntarily surrendered its DEA registration on January 7, 2020, for cause. As a result, the pharmacy has been unable to dispense controlled substances.
According to the government’s allegations set forth in the settlement agreement, Cadott Miller Pharmacy dispensed controlled substances outside the usual course of professional pharmacy practice by filling combinations of controlled substances and medications that have no legitimate medical purpose, are highly addictive, and were specifically combined to create or enhance abusive and euphoric effects. In addition, the government alleged that the pharmacy dispensed controlled substances with no valid prescription, provided unauthorized early refills, and dispensed Schedule II controlled substances for opioid dependence, which is prohibited under federal law.
In enacting the CSA, Congress recognized the importance of preventing the diversion of drugs from legitimate to illegitimate uses. The CSA, in relevant part, deters the illegal distribution, possession, dispensing, and improper use of controlled substances, all of which have contributed significantly to the opioid epidemic over the past two decades. The CSA therefore regulates all entities in the chain of distribution, including pharmacies and pharmacists.
“Pharmacies that dispense controlled substances outside the course of professional pharmacy practice endanger the public, abuse their DEA registration, and violate federal law,” said United States Attorney O’Shea. “Pharmacies hold a public trust and grave responsibilities. The overwhelming majority of pharmacies closely adhere to federal and state law and are entirely deserving of the public’s trust. The U.S. Attorney’s Office will, however, gladly partner with DEA to protect the public when pharmacies violate federal law.”
“The men and women of the DEA, alongside our state and local partners, will continue keeping the citizens of Wisconsin safe from the reckless and unscrupulous practices of pharmacies that do not adhere to the Controlled Substances Act,” said John G. McGarry, Assistant Special Agent in Charge for U.S. Drug Enforcement Administration-Wisconsin.
According to the settlement agreement, the civil penalty amount was based on an inability to pay a substantial penalty and determined after analysis and review of the pharmacy’s financial circumstances.
Assistant United States Attorney Leslie Herje represented the government in this matter. The DEA Milwaukee District Office primarily conducted the investigation, along with the United States Attorney’s Office Affirmative Civil Enforcement team. The settlement agreement states CSA allegations only; Cadott Miller Pharmacy denies the allegations.
Arizona Man Found Guilty of Bulk Cash SmugglingRead the Press Release
TUCSON, Ariz. – Yesterday, a federal jury in Tucson found Charles Robert Wright, 61, guilty of attempting to smuggle $204,080 in U.S. currency into Mexico. Sentencing is set for July 6, 2022 before U.S. District Judge Rosemary Márquez.
The facts at trial showed that on April 18, 2021, Charles Robert Wright was the owner, driver, and sole occupant of a Winnebago Adventurer when he attempted to leave the United States through the Lukeville Port of Entry. During outbound inspection, Wright denied transporting over ten thousand dollars in the Winnebago. The vehicle was subjected to an X-ray, which showed abnormalities in the roof. Customs and Border Protection Officers conducted a search of the vehicle and found a non-factory compartment that contained two plastic bags of U.S. currency, which was folded and rubber banded together. Officers also located 10 additional individually wrapped cellophane packages that contained U.S. currency. The total amount of cash found in the vehicle was $204,080.
Customs and Border Protection completed the interdiction. Homeland Security Investigations, Sells, conducted the investigation in this case. Assistant U.S. Attorney Matthew G. Eltringham, District of Arizona, Tucson, OCDETF, is handling the prosecution.
CASE NUMBER: 21-CR-01031-TUC-RM (MSA)
RELEASE NUMBER: 2022-054_Wright# # #
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.Appomattox Woman Admits to Defrauding Social Security AdministrationRead the Press Release
LYNCHBURG, Va. – An Appomattox woman, who was paid more than $30,000 in government benefits to which she was not entitled, pleaded guilty this week in federal court.
Amanda Nicole Mann, 38, waived her right to be indicted and pleaded guilty to a one-count Information charging her with theft of government money. At sentencing, Mann faces a maximum statutory penalty of up to 10 years in prison and/or a fine of up to $250,000.
According to court documents, in 2018, Mann falsely reported to the Social Security Administration (SSA) that her husband had not lived in her residence for the previous year. The reported change in this living situation caused Mann, and her son, to become eligible for Supplemental Security Income (SSI) benefits. Mann would not have been eligible for these benefits if SSA knew the truth about her husband still living in the home.
As a result, Mann was paid $31,578 in SSI payments to which she was not entitled.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Social Security Administration-Office of the Inspector General, Office of Investigations is investigating the case.
Assistant U.S. Attorney Charlene R. Day is prosecuting the case.
Albuquerque man sentenced to 10 years in prison for drug traffickingRead the Press Release
ALBUQUERQUE, N.M. – Guy Anthony Garcia, 62, of Albuquerque, was sentenced in federal court today to 10 years in prison for attempted possession with intent to distribute 40 grams and more of fentanyl, attempted possession with intent to distribute 50 grams and more of methamphetamine, and attempted possession with intent to distribute 100 grams and more of heroin. Garcia pleaded guilty on Sept. 1, 2021.
A federal grand jury indicted Garcia on March 9, 2021. In his plea agreement, Garcia admitted that on Dec. 9, 2020, he arranged for a delivery of drugs to his business in Albuquerque. The shipment was intercepted by law enforcement and the person delivering the drugs agreed to be accompanied by an undercover officer to proceed with the delivery and transaction. They arrived at Garcia’s business with what Garcia believed was methamphetamine, heroin and fentanyl, for which Garcia paid them $39,820. Garcia acknowledged that he intended to sell the drugs.
At the time, Garcia was on supervised release following a prison sentence for a 2016 drug trafficking conviction. The terms of his release required him to refrain from any unlawful use of a controlled substance and prohibited him from committing any federal, state or local crime. In his plea, Garcia acknowledged that his offenses on Dec. 9, 2020, were in violation of the terms of his supervised release. Additionally, on Nov. 5, 2020, he submitted a urinalysis sample that tested positive for amphetamine, opiates and cocaine. On Nov. 25, 2020, Garcia submitted another sample, which again tested positive for opiates.
Upon his release from prison, Garcia will be subject to 4 years of supervised release.
Homeland Security Investigations investigated this case with assistance from the Bureau of Indian Affairs and New Mexico State Police. Assistant United States Attorney Matthew Nelson prosecuted the case.
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Albany Man Sentenced for Possessing a Firearm as a Felon at Albany International AirportRead the Press Release
ALBANY, NEW YORK - Josef Jarvis, age 32, of Albany, was sentenced today to 46 months in prison for unlawfully possessing a firearm as a felon at the Albany International Airport. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Jarvis, who has prior felony convictions for racketeering and weapons offenses, admitted that he possessed a loaded handgun and ammunition while attempting to pass through a security checkpoint at Albany International Airport before boarding a flight on August 16, 2021.
Chief United States District Judge Glenn T. Suddaby also imposed a 3-year term of supervised release, which will start after Jarvis is released from prison.
This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF), the Transportation Security Administration (TSA), and the Albany County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
Wednesday 27 April 2022
Wytheville Pair Sentenced to Federal Prison for Large-Scale Mail TheftRead the Press Release
ABINGDON, Va. – A pair of Wytheville, Virginia residents were sentenced yesterday to federal prison time for possessing stolen mail, including letters from the Department of Veterans Affairs, the Social Security Administration, and the Virginia Department of Motor Vehicles.
Joseph Arthur Manning, 35, was sentenced to 21 months imprisonment followed by three years’ supervised release. Manning’s girlfriend, Caitlyn Page Turner, 23, was sentenced to 18 months imprisonment followed by three years’ supervised release.
According to court documents, on December 28, 2021, a victim contacted the Wythe County Sheriff’s Office and stated that they witnessed mail being stolen from their mailbox by a pair of individuals who drove off in a Kia Optima. Shortly after the call, Wythe County Sheriff’s deputies conducted a traffic stop on a Kia Optima and Manning and Turner were the occupants of the vehicle.
During the traffic stop, deputies located and recovered 63 pieces of mail from 32 different addresses in the Barren Springs area. The officers also recovered marijuana and a small quantity of methamphetamine.
United States Attorney Christopher R. Kavanaugh made the announcement.
The investigation of the case was conducted by the United States Postal Inspection Service – Washington Division and the Wythe County Sheriff’s Office.
Assistant United States Attorney Lena L. Busscher prosecuted the case for the United States.
Worcester Man Pleads Guilty to Attempting to Purchase Jeep with Counterfeit CheckRead the Press Release
BOSTON – A Worcester man pleaded guilty on Monday, April 25, 2022, to attempting to purchase a $56,000 Jeep Wrangler Rubicon with a counterfeit check.
David Hogan, 58, pleaded guilty to one count of wire fraud. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 27, 2022. Hogan was charged on March 4, 2022.
On March 31, 2021, Hogan visited a car dealership in Newton, where he agreed to purchase a Jeep Wrangler Rubicon for $56,208. Hogan tendered a check from Charles Schwab bank in the amount of the purchase price, took possession of the Jeep and drove it off the lot. When the car dealership attempted to cash the check, the bank did not honor it because the bank account had been frozen. The dealership contacted Hogan and advised that the check was not valid.
On April 9, 2021, using the dealership’s electronic chat app, Hogan promised the dealership that he would wire the money to the bank. Hogan did not ultimately wire any funds and the vehicle was repossessed by the dealership. A subsequent investigation revealed that the Charles Schwab account was opened using a stolen identity. Hogan later admitted that the phony check he used when attempting to purchase the Jeep had been printed by Brandon Brouillard.
Brouillard was charged separately with two counts of bank fraud and one count of aggravated identity theft in connection with using two victims’ identities to open bank accounts and attempting to purchase an $83,000 Chevrolet Camaro. Brouillard has since pleaded guilty and is scheduled to be sentenced on Sept. 13, 2022.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Boston, Braintree, Natick, Newton, Norwood, Worcester and Scottsdale (Ariz.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Criminal Division is prosecuting the case.
Woman Pleads Guilty to Laundering More Than $700,000Read the Press Release
A Florida woman pleaded guilty today to laundering $735,695 in money stolen from Medicare, Medicaid, and private health insurers as part of a sprawling health care fraud scheme in Miami.
According to court documents, Loyda Triana, 65, of Miami, laundered the fraudulent proceeds of five fraudulent medical supply companies over a two-year period. These companies — BF Distributors Corp, Timely Medical Services Corp., Ortho-Med Solution Inc., Expedited Medical Supplies Corp., and Prime Orthopedic Solutions Corp — were fake medical supply companies that billed Medicare, Medicaid, and private health insurers more than $48 million for medical equipment the companies never actually purchased and never actually provided to any patients. Triana laundered the stolen money by cashing checks issued by these companies and returning the cash, minus a fee, to her co-conspirators. To date, more than 15 individuals have been charged as part of the government’s investigation into this fraud and money laundering scheme.
Triana pleaded guilty to one count of conspiracy to commit money laundering. She is scheduled to be sentenced on May 25, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation, Office of the Inspector General (FDIC-OIG), Atlanta Regional Office; and Florida Attorney General Ashley Moody made the announcement.
The FBI, HHS-OIG, FDIC-OIG, and Florida’s Medicaid Fraud Control Unit are investigating the case.
Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section is prosecuting the case.
Winston-Salem Man Sentenced to 25 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
Greensboro, NC - Jose Mondujano-Hernandez, 25, was sentenced on April 27, 2022, to a total of 300 months in prison for conspiracy to distribute methamphetamine. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, in September 2020, an undercover officer (UC) was introduced to an unknown person located in Mexico who began negotiating a sale of crystal methamphetamine. On September 28, 2020, the UC was contacted by another unknown individual to coordinate the drug transaction in Winston-Salem. Agents from the Drug Enforcement Administration and the Federal Bureau of Investigation in Greensboro conducted surveillance on the meeting location where the transaction occurred and was video recorded. Mondujano-Hernandez sold the UC one kilogram of suspected methamphetamine, and a laboratory test confirmed the substance to be methamphetamine. On October 13, 2020, and November 5, 2020, the UC made additional controlled drug purchases from Mondujano-Hernandez for three kilograms of methamphetamine. In the following weeks, the UC was involved in further transactions involving Mondujano-Hernandez and his co-defendants for additional purchases that totaled approximately 16 kilograms of methamphetamine. Mondujano-Hernandez and four other co-defendants were charged by Superseding Indictment with conspiracy to distribute 500 grams or more of methamphetamine in February 2021.
The Honorable Thomas D. Schroeder sentenced Mondujano-Hernandez to 300 months imprisonment. After imprisonment, Mondujano-Hernandez will be subject to supervised release for ten years.
This case was prosecuted by Assistant U. S. Attorney Terry M. Meinecke. The Federal Bureau of Investigation and the Drug Enforcement Administration were involved in the investigation of the case and were assisted by several local and state agencies.
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Waterbury Drug Distributor Sentenced to 33 Months in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ISAAC WILSON, also known as “Ike,” 25, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in May 2020, the DEA New Haven Task Force and Waterbury Police Department began an investigation into a drug trafficking organization that was distributing large amounts of heroin, cocaine and crack in the Waterbury area. The investigation included court-authorized wiretaps on multiple phones used by members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs. In November and December 2020, Wilson was intercepted multiple times on a wiretap ordering distribution quantities of heroin and crack from Zachary Lee Foster. Wilson then sold the drugs to his own customers.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging Wilson, Foster and 15 others. On November 1, 2021, Wilson pleaded guilty to one count of conspiracy to distribute heroin and cocaine base (“crack”).
Wilson has been detained since his arrest on March 3, 2021. On that date, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine, and nine firearms
Foster pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
Vice President of Kenwood Keys Sentenced for Failing to Pay over Payroll TaxesRead the Press Release
United States Attorney Richard G. Frohling announced that on April 27, 2022, Patrick Souter (age: 57) of Racine, WI was sentenced to one year and one day in prison on charges that he willfully failed to account for and pay over payroll taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202.
According to documents filed in court, federal law requires employers to collect payroll taxes (which include federal income taxes, Social Security taxes, and Medicare taxes) from the wages paid to its employees, and to pay over these taxes to the United States through the Internal Revenue Service (“IRS”). The taxes withheld from wages paid to employees are commonly referred to as the “trust fund” portion of payroll taxes. Federal law also requires employers to pay additional payroll taxes to the IRS in an amount equal to the employees’ share of Social Security and Medicare taxes. These taxes are referred to as the “matching” portion of payroll taxes.
According to court filings, Souter is the vice president and a 50 percent shareholder of Kenwood Keys. Beginning in 2006 and continuing through 2020, Souter regularly failed to pay over to the IRS all or a portion of trust fund payroll taxes that he had withheld from employees’ wages. During that same time period, Souter also regularly failed to pay to the IRS all or a portion of the matching part of payroll taxes owed by Kenwood Keys. Records show that for the fifteen years from 2006 through 2020, Souter failed to pay a total of $559,249.82 in payroll taxes.
United States District Judge Lynn Adelman, who earlier this year had accepted Souter’s guilty plea, today sentenced Souter to a prison term of one year and one day and ordered him to pay $559,249.82 in restitution to the IRS.
The IRS Criminal Investigation division in Milwaukee investigated this case, which was prosecuted by Assistant United States Attorney Gregory J. Haanstad.
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Urgent Care Doctor and his Facilities Settle Allegations of Federal Health Care FraudRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that Dr. Josef Schenker and two urgent care facilities owned by him, Josef Schenker, M.D., P.C., and Care Partners Medical Management, LLC, have agreed to pay $564,217.70 to resolve allegations that they submitted false claims to Medicare for services not provided in administering COVID-19 vaccines and tests.
“In billing for medical services that were not provided to patients receiving COVID-19 vaccines and tests, Dr. Schenker exploited the pandemic for his own personal benefit,” stated United States Attorney Breon Peace. “This Office is committed to combatting fraud and abuse of our taxpayer-funded programs.”
This resolution follows the Department’s recent announcement of a nationwide coordinated law enforcement action to combat health care- related Covid-19 fraud.
When health care providers bill Medicare for COVID-19 tests and vaccines, they use certain Current Procedural Terminology (CPT) codes that specify the services that have been provided. In doing so, they signify that the services were performed as described and properly billed in accordance with industry standards. Applicable industry standards preclude physicians from billing for mid-level or high-level evaluation and management office visits when a Medicare beneficiary actually receives only a COVID-19 vaccine or test.
An investigation by the United States Attorney’s Office for the Eastern District of New York revealed that, from July 2020 to December 2021, Dr. Schenker routinely used CPT codes which falsely indicated to Medicare that he had conducted detailed examinations of the patients during mid-level and high-level evaluation and management office visits when, in fact, he had provided only a COVID-19 vaccine or test. The settlement resolves potential claims that Dr. Schenker’s alleged conduct violated the False Claims Act, 31 U.S.C. §§ 3729-33. The claims resolved by the settlement are allegations only.
The United States’ case was handled by Assistant U.S. Attorney Ekta Dharia of the Office’s Civil Division with assistance from Civil Investigator Joseph Giambalvo.
U.S. Attorney's Office Observes National Crime Victims' Rights Week & Hosts Ceremony to Honor Contributions to Crime Victims' RightsRead the Press Release
CHARLOTTE, N.C. – Each year in April, the Department of Justice and the United States Attorney’s Office for the Western District of North Carolina observe National Crime Victims’ Rights Week (NCVRW), by taking time to honor victims of crime and those who advocate on their behalf.
Throughout this week, the U.S. Attorney’s Office joins federal, state, local and Tribal law enforcement agencies, service providers, victim advocates and other allied professionals in remembering and honoring victims lost to violence and survivors of violence. This year’s observance, which takes place April 24-30, with the theme “Rights, Access, Equity for all Victims,” underscores the importance of assisting crime survivors find their justice by enforcing victims’ rights, expanding access to services, and ensuring equity and inclusion.
To commemorate NCVRW, the U.S. Attorney’s Office hosted an awards ceremony today, to honor outstanding individuals for their dedication to the cause of justice and for their support and service to crime victims.
“This week highlights the importance of promoting equal access to services for crime victims and ensuring that our criminal justice system supports all aspects of victims’ healing and recovery throughout the legal process and beyond,” said U.S. Attorney Dena J. King. “The individuals honored today were selected for their work in delivering justice to victims and their loved ones. Their work serves as a reminder that what we do impacts countless lives. I am grateful for the honorees’ contributions and I am proud of their work in ensuring that each and every crime victim in Western North Carolina receives the assistance and justice they need and deserve.”
Following is a list of the 14 award recipients who were nominated by their colleagues and selected by U.S. Attorney King:
Outstanding Law Enforcement Award
- Special Agent Klarissa Zaffark – Homeland Security Investigations
- Captain Errol Wedra – Mint Hill Police Department
- Captain Marnee Moberg – Mint Hill Police Department
- Criminal Analyst John White – Mint Hill Police Department
Outstanding Criminal Justice Professional Award
- Assistant U.S. Attorney Alexis Solheim
- Assistant U.S. Attorney Kenneth Smith
- Assistant U.S. Attorney Caryn Finley
- Assistant U.S. Attorney Benjamin Bain-Creed
- Assistant U.S. Attorney Julia Wood
Outstanding Support Staff Award
- Legal Assistant Robert Cassidy
- Legal Assistant Stacey Clickner
- Legal Administrative Specialist Shafia Rangoonwala
- Paralegal Lisa Shenton
Outstanding Victim Survivor Award
- Arist (Art) Doumtjes
U.S. Attorney King thanked the honorees for their outstanding dedication and service in working with crime victims and noted the important role each honoree has played in delivering justice and providing victims with the support they need in the aftermath of crime.
Throughout the nation, and in the Western District of North Carolina, victim advocacy organizations, community groups and state, local, and Tribal agencies host rallies, candlelight vigils, and other events during NCVRW, to raise awareness of victims’ rights and services. The Office for Victims of Crime (OVC) leads communities in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year, several national events are returning in-person, but will continue to feature livestream feeds. On Thursday, April 28, 2022, a candlelight vigil will be held on the National Mall near the U.S. Capitol from 6:30 p.m. to 7:30 p.m. On Friday, April 29, 2022, the National Crime Victims’ Service Awards Ceremony will be held at Constitution Gardens National Park on the National Mall from 3:00 p.m. to 5:00 p.m. To access a livestream feed for either event, please visit ovc.ojp.gov/live.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
U.S. Attorney Announces Charges Against A Doctor, Dentist, and Former NBA Player for Defrauding the NBA Players’ Health and Welfare Benefit PlanRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Superseding Indictment charging TERRENCE WILLIAMS, AAMIR WAHAB, WILLIAM WASHINGTON, ALAN ANDERSON, KEYON DOOLING, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN with conspiracy to commit health care fraud and wire fraud, in connection with a scheme to defraud the National Basketball Association’s (“NBA’s”) Health and Welfare Benefit Plan out of at least approximately $5 million. TERRENCE WILLIAMS and ALAN ANDERSON are also charged with aggravated identity theft in connection with the same scheme. TERRENCE WILLIAMS, ALAN ANDERSON, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN were charged in a prior Indictment and arrested, or surrendered, in October 2021. AAMIR WAHAB and WILLIAM WASHINGTON, both medical providers who allegedly facilitated the scheme, and KEYON DOOLING, a former NBA player who allegedly engaged in the scheme and recruited other co-conspirators to join the scheme, were added as defendants to the charged health care fraud and wire fraud conspiracy. WAHAB, WASHINGTON, and DOOLING were arrested today. WASHINGTON will be presented in the Western District of Washington. WAHAB will be presented in the Central District of California. DOOLING will be presented in the District of Utah. The case is assigned to U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “Today’s unsealing of additional charges in this case shows my office will investigate, and where appropriate charge, individuals involved in fraud schemes including medical providers who abuse their positions to defraud others. I thank our law enforcement partners in the FBI for their hard work uncovering more details of the defendants’ alleged pervasive scheme to attempt to defraud the NBA Health and Welfare Benefit Plan out of at least approximately $5,000,000.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Today we’re charging additional defendants in this health care fraud scheme who attempted to defraud the National Basketball Association’s Health and Welfare Benefit Plan of at least approximately $5,000,000. Health care fraud causes serious problems for both the industry and consumers alike, and results in losses of tens of billions of dollars a year to fraud. Thanks to the work of our dedicated FBI agents and partners who continue to work tirelessly on this case.”
As alleged in the Superseding Indictment unsealed today[1]:
The National Basketball Association Players’ Health and Welfare Benefit Plan (the “Plan”) is a health care plan providing benefits to eligible active and former players of the NBA. From at least in or about 2017, up to and including at least in or about 2021, TERRENCE WILLIAMS, AAMIR WAHAB, WILLIAM WASHINGTON, ALAN ANDERSON, KEYON DOOLING, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN engaged in a widespread scheme to defraud the Plan by submitting and causing to be submitted fraudulent claims for reimbursement of medical and dental services that were not actually rendered. Over the course of the scheme, the defendants submitted and caused to be submitted to the Plan false claims totaling at least approximately $5 million.
TERRENCE WILLIAMS orchestrated the scheme to defraud the Plan. WILLIAMS recruited other Plan participants to defraud the Plan by offering to provide them with false invoices to support their fraudulent claims. AAMIR WAHAB, a dentist in California, and WILLIAM WASHINGTON, a doctor in Washington State, provided WILLIAMS with fraudulent invoices that WILLIAMS sent to other co-conspirators. WILLIAMS, ALAN ANDERSON, and KEYON DOOLING each recruited other Plan participants to defraud the Plan by offering to supply them with false invoices to support their false and fraudulent claims to the Plan in exchange for payments to WILLIAMS and DOOLING. DOOLING also obtained fraudulent invoices from WAHAB, and others, which he used to submit his own fraudulent claims; based on those claims, DOOLING himself fraudulently obtained approximately $350,000 of Plan proceeds.
As described in the Superseding Indictment, WAHAB exchanged text messages with both WILLIAMS and DOOLING about the scheme.
For example, in or about March 2019, WILLIAMS requested that WAHAB produce additional fraudulent invoices, but WAHAB was hesitant to do so because they were having trouble collecting kickbacks from co-conspirators. WILLIAMS appeared to be upset and messaged WAHAB, in substance and in part, “YOUVE MADE THOUSANDS OF F[---]ING DOLLARS TO PRINT A INVOICE WITH A NAME AT THE TOP like you f[---]ing kidding me[?] We not gonna act like you doing dental work.” WILLIAMS also sent WAHAB messages containing the names, dates, and amounts to be listed on the fraudulent invoices.
In or about April 2018, WAHAB and DOOLING exchanged messages about the creation of fraudulent invoices for another former-NBA player. On or about April 30, 2018, WAHAB and DOOLING continued their discussion:
DOOLING: Let’s make this thing grow sir.
WAHAB: Lol I’m down bro[.] Get me the whole NBA [laughing emoji]
DOOLING: Yes we will[.]
DOOLING also messaged with another co-conspirator about transferring proceeds obtained from a transaction in the scheme. Specifically, on or about June 28, 2019, DOOLING messaged that co-conspirator and stated, in substance and in part, “Hey bro, here’s the breakdown: 5600 for you and me. Then 10800 for the guy. I fronted him 4200$ so you can put it with my 5600= 9800 to My [bank account information]. . . . That way everything is under 10k.”
The Plan also enabled eligible participants to use a Plan-issued debit card (the “Plan Debit Card”) to pay for eligible medical services and products at the point of service. WILLIAM WASHINGTON charged, and caused others to charge, the Plan Debit Cards of two co-conspirators for approximately $436,126. WILLIAMS also exchanged messages with WASHINGTON about WASHINGTON’s creation of fraudulent invoices in furtherance of the scheme. For example:
WILLIAMS: You have the card reader I have the [Plan Debit C]ards. Let’s work together . . . . Give me the bread I’ll get it to them. You still swiping. You getting your money back. . . . you gonna owe me. Ok.
WASHINGTON: We owe each other lol. . . .
To verify that certain services were medically necessary, the Plan sometimes requires participants to submit a letter of medical necessity from a medical provider establishing that necessity of the provided services. WILLIAMS fraudulently created, and transferred letters of medical necessity for three co-conspirators. ANDERSON also counseled, aided, and induced at least one co-conspirator to submit a forged letter of medical necessity to the Plan. These letters were unusual in several respects: they were not on letterhead, contained unusual formatting, had grammatical errors, and one of the letters misspelled a purported patient’s name.
* * *
TERRENCE WILLIAMS, AAMIR WAHAB, WILLIAM WASHINGTON, ALAN ANDERSON, KEYON DOOLING, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN are each charged with one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison. TERRENCE WILLIAMS is also charged with two counts of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other sentence imposed. ALAN ANDERSON is also charged with one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other sentence imposed.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI. In addition to the New York Field Office, Mr. Williams praised the work of the Seattle, Los Angeles, and Salt Lake City field offices.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Ryan B. Finkel and Kristy J. Greenberg are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Keene Residents Charged in Superseding Indictment with Additional Charges Related to Virtual Currency Exchange BusinessRead the Press Release
CONCORD – A federal grand jury returned a 33-count superseding indictment on Monday charging Ian Freeman, 41, and Aria DiMezzo, 35, both of Keene, with a variety of financial and fraud crimes, United States Attorney John J. Farley announced today.
According to the superseding indictment, Freeman, DiMezzo, and others operated a business that enabled customers to exchange fiat currency for virtual currency. The superseding indictment alleges that the unlicensed business violated federal anti-money laundering laws and regulations. Among other things, the superseding indictment alleges that the defendants opened bank accounts at financial institutions while deceiving financial institutions about the nature of the business being transacted through the accounts. The superseding indictment alleges that some of the transactions conducted by Freeman facilitated the transfer of the proceeds of scams, such as “romance scams.”
Freeman and DiMezzo are charged with participating in a conspiracy to operate an unlicensed money transmitting business.
Freeman also is charged with: (1) operating an unlicensed money transmitting business; (2) conspiracy to commit wire and bank fraud; (3) twelve counts of wire fraud; (4) four counts of money laundering; (5) conspiracy to commit money laundering: (6) four counts of attempting to evade taxes; and (7) operating a financial crimes enterprise.
DiMezzo also is charged with (1) operating an unlicensed money transmitting business; (2) four counts of wire fraud; and (3) three counts of money laundering.
Freeman and DiMezzo, along with four others, were previously arrested on March 16, 2021.
Three co-defendants, Nobody F/K/A Richard Paul, of Keene, and Andrew and Renee Spinella of Derry, have pleaded guilty. The government has moved to dismiss the charges against the fourth co-defendant without prejudice.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Postal Inspection Service in coordination with the Financial Crimes Enforcement Network. The case is being prosecuted by Assistant United States Attorneys Georgiana L. MacDonald, Seth R. Aframe, and John Kennedy.
The charges in the superseding indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Two Air Force Non-Commissioned Officers Charged with Conspiracy to Commit Theft of Government Property in Scheme to Steal U.S. Air Force AmmunitionRead the Press Release
Spokane, Washington – United States Air Force Staff Sergeants John I. Sanger and Eric A. Eagleton have been arrested on charges of Conspiracy to Commit Theft of Government Property. According to charging documents, Sanger, Eagleton, and others engaged in a conspiracy in March 2022 to steal ammunition belonging to the United States Government. As part of the scheme, Sanger, Eagleton, and their conspirators are alleged to have stolen thousands of rounds of U.S. Air Force ammunition. According to charging documents, they also falsified records at Fairchild Air Force Base to conceal the theft.
U.S. Attorney Vanessa Waldref commended the joint efforts of law enforcement and emphasized the importance of safeguarding government property and resources. “As the U.S. Attorney, I will not tolerate any abuse of trust by those charged with protecting our great Nation and community. So many of those who serve at Fairchild Air Force Base are career public servants who sacrifice their time, energy, and even their lives to keep America safe. When individuals put their own interests ahead of others and abuse the public trust, those individuals dishonor the countless public servants who dedicate their lives to government and military service. I commend the FBI and Air Force Office of Special Investigations, who identified this scheme and who serve diligently to keep our country and communities safe and strong.”
“Members of our nation’s armed forces swear an oath to support and defend the Constitution of the United States against all enemies, foreign and domestic,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “There is no exception to set aside this oath to achieve personal goals. The FBI, along with our partners in the Air Force and U.S. Attorney’s Office, are upholding our oaths and ending this criminal conspiracy.”
As the Department of the Air Force’s federal law enforcement arm, the Office of Special Investigations (OSI) works closely with interagency partners to identify and neutralize threats to the force in any form to include the theft of government property and its use for criminal gain. “I am proud of the expertise and commitment that went into this difficult and complex operation from all involved. From its start, force protection and community safety were our top priorities. I am in awe of how our law enforcement partners came together to halt this dangerous conspiracy,” stated Brigadier General Terry Bullard, Commander, OSI.
The case is being investigated by the FBI’s Seattle Field Office, Inland Northwest Joint Terrorism Task Force (“INJTTF”), and the United States Air Force Office of Special Investigations (OSI).
This case is being prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Burglary and Assault that Resulted in Substantial Bodily InjuryRead the Press Release
A Tulsa man who battered a former dating partner and threatened to kill her was sentenced in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Gerald Smith, 28, of Tulsa, to 84 months in federal prison followed by three years of supervised release.
“The U.S. Attorney’s Office will not shy away from prosecuting cases of domestic violence,” said U.S. Attorney Clint Johnson. “Gerald Smith’s threats and vicious attack on this victim are inexcusable, and he will spend seven years in federal prison as a result.”
In November, Smith pleaded guilty to first degree burglary in Indian Country and assault resulting in substantial bodily injury to an intimate/dating partner in Indian Country.
Smith admitted that on May 4, 2021, he broke into the home of a former dating partner and assaulted her. Smith entered the home without the victim’s permission through a sliding door and demanded the victim allow him to live in her home. When the victim declined, Smith further demanded that she book a hotel room for him and pay for it. He threatened to kill her if she refused. He then drove the victim in her vehicle to a local hotel where she paid for his room. As she attempted to leave in her car, Smith grabbed her and struck her in the face multiple times, resulting in scratches on her face and neck, a bite mark on her forearm, and an eye that was swollen shut.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Steven J. Briden prosecuted the case.
Tucson Man Sentenced to 10 Years for Child Pornography OffenseRead the Press Release
TUCSON, Ariz. – Zachary Zane Stephenson, 45, of Tucson, was sentenced yesterday by U.S. District Judge Cindy K. Jorgenson to 10 years in prison. Stephenson previously pleaded guilty to one count of Possession of Child Pornography.
On October 28, 2020, Stephenson, who was on supervision at the time in connection with a similar prior conviction, was charged after he was found to be using his cellphone to access graphic child sexual abuse material. Upon release from prison, Stephenson will be placed on lifetime supervised release with stringent conditions of supervision. He will be required to register as a sex offender and to complete a sex offender treatment program.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations, Tucson, conducted the investigation in this case. Assistant U.S. Attorneys Carin C. Duryee and Erica L. Seger, District of Arizona, Tucson, handled the prosecution
CASE NUMBER: CR-20-02257-TUC-JGZ
RELEASE NUMBER: 2022-051_Stephenson# # #
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.Timber Thieves Indicted for Large-Scale Theft from Government LandRead the Press Release
ROANOKE, Va. – A federal grand jury in Roanoke has indicted a trio of men on conspiracy charges, Lacey Act violations, and other charges related to the alleged illegal removal of walnut trees from federally protected land. The indictment, returned under seal May 20, 2021, was unsealed earlier this month following the arrest of two of the defendants. A third defendant remains at-large, and his identity remains under seal.
William Riley Stump, 52, of Narrows, Virginia, and Derrick Anthony Thompson, 48, of Princeton, West Virginia, were arraigned this week in U.S. District Court in Roanoke.
Stump is charged with one count of conspiracy to commit an offense to defraud the United States, five counts of violating the Lacey Act, five counts of theft of government property, five counts of removal of timber from lands of the United States, and seven counts of the illegal cutting of trees on lands of the United States. Thompson is charged with one count of conspiracy to commit an offense to defraud the United States, one count of violating the Lacey Act, one count of theft of government property, one count of removal of timber from lands of the United States, and three counts of illegal cutting of trees on lands of the United States.
“The Department of Justice will vigorously prosecute those who steal natural resources from federal lands for their personal enrichment,” United States Attorney Christopher R. Kavanaugh said today. “Federal protected lands not only serve as areas of conservation and flood management but also provide intrinsic beauty we all enjoy, particularly here in the Western District of Virginia.”
“It is the duty and mission of U.S. Forest Service Law Enforcement and Investigation to protect our federal land resources from theft, unwarranted destruction and disturbance, and to deter and prevent crimes,” said Katie Ballew, Patrol Captain USDA Forest Service George Washington and Jefferson National Forests.
According to court documents, Stump, Thompson, and another indicted co-defendant conspired to cut and remove black walnut trees located in the Bluestone Project in Giles County, Virginia and transport them to Lindside, West Virginia to sell. The Bluestone Project is a United States Army Corps of Engineers Flood Damage Reduction program designed to inhibit flood-level water flow along both the New River and Bluestone River. The project’s federally-protected area involves 21,000 acres of land that is a fertile habitat for growth of certain trees and plants, including the highly valuable black walnut trees, which are among the largest and longest living hardwood trees in the United States.
The U.S. Forest Service and the Army Corps of Engineers are investigating the case.
Assistant U.S. Attorney Michael Baudinet is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Sentenced in Scheme to Obtain and Distribute More Than Three Gallons of PCP and Meth from U.S. MailRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that three individuals were sentenced for their roles in a scheme that sought to distribute approximately three gallons of phencyclidine (PCP) and methamphetamine obtained through the U.S. mail.
Erwin D. Owens, age 39, of Compton, California, was sentenced to eight and a half years in prison, and Nathan Stewart, age 40, of North Olmsted, Ohio, was sentenced to six years in prison on April 25, 2022. Dawuan L. Williams, age 47, of Cleveland Heights, Ohio, was previously sentenced to seven years in prison on January 3, 2022.
According to court documents, in May 2020, investigators with the United States Postal Inspection Service identified three mail parcels suspected of containing drugs. After obtaining search warrants for the parcels, postal inspectors found that each parcel contained approximately one gallon of PCP concealed in acetone containers. Investigators identified Williams as the intended recipient of the three parcels in Ohio, and Owens as the person who mailed them from California.
Between February and March 2021, postal inspectors seized two more parcels that had been sent from California to addresses in Ohio. Each of those two parcels was found to contain approximately one kilogram of methamphetamine. Postal inspectors eventually identified Stewart as the intended recipient of those two drug parcels in Ohio and Owens as the person who sent them from California.
This case was investigated by the United States Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorneys James P. Lewis and Vasile C. Katsaros.
Three Men Convicted on Federal Charges Relating to a Kidnapping Resulting in DeathRead the Press Release
LEXINGTON, Ky.- Rosario Diaz Barraza, 32, of Phoenix, Ariz., and Ramon Camacho Zepeda, 54, of Lexington, were convicted by a federal court jury on Wednesday, of conspiracy to commit kidnapping and interstate transportation of stolen automobiles, following a 7-day trial. A third defendant, John Carlos Betancourt, 27, of Penuelas, Puerto Rico, was convicted of the interstate transportation of stolen vehicles.
According to evidence presented at trial, the charges stemmed from the kidnapping of two individuals, identified in court records as J.O. and M.A.T.O. Both victims were killed during the commission of the kidnapping. Their bodies were discovered in the trunk of a Volkswagen Jetta, on September 11, 2017, at 430 Blue Sky Parkway in Lexington. The location was an automotive repair business owned by J.O. Two vehicles belonging to J.O. were stolen during the offenses and transported to Wilkes-Barre, Pennsylvania. Evidence presented at trial included that Camacho Zepeda and Diaz Barraza were distributing kilogram quantities of cocaine and heroin in Lexington, and that J.O. had allegedly incurred a debt to them based on his involvement in the drug trafficking. Testimony by a pathologist from the Kentucky Medical Examiner’s Office showed that J.O.’s cause of death was attributed to “chop wounds” to the head and asphyxiation. The second victim, M.A.T.O., died from asphyxiation.
Two other defendants, Jose Felix Tlatenchi, 39, also of Wilkes-Barre, and Jean Michael Serrano-Jimenez, 31, of Hanover Township, Penn., previously entered guilty pleas relating to their involvement. Serrano-Jimenez pled guilty as charged to conspiracy to commit kidnapping, while Tlatenchi pled guilty as an accessory after the fact to the kidnappings.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, DEA, Louisville Field Office; Colonel Phillip Burnett, Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the verdict.
The lengthy investigation was conducted primarily by the Lexington Police Department, the Drug Enforcement Administration, and the Kentucky State Police. Multiple additional law enforcement agencies also provided valuable assistance, including the Wilkes-Barre, Pennsylvania Police Department, the Reading, Pennsylvania Police Department, the Pennsylvania State Police, the New York City Police Department, the Harlingen, Texas Police Department and Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and Francisco Villalobos.
Serrano-Jimenez is scheduled for sentencing on May 12, 2022. Tlatenchi is scheduled for sentencing on July 7, 2022. Diaz Barraza, Camacho Zepeda and Betancourt are all scheduled for sentencing on July 25, 2022. Diaz Barraza, Camacho Zepeda, and Serrano-Jimenez face a maximum sentence of life imprisonment. Tlatenchi faces up to 15 years and Betancourt up to 10 years. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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The Department of Justice and Virgin Islands U.S. Attorney Announce National Crime Victims’ Rights Week for the U.S. Virgin IslandsRead the Press Release
ST. THOMAS, USVI – In observance of National Crime Victims’ Rights Week, April 24-30, 2022, the United States Attorney’s Office for the District of the U.S. Virgin Islands, recognizes crime victims and those individuals, law enforcement agencies, community organizations, and faith-based institutions that have dedicated themselves to serve and assist victims of crime.
Each year in April, the Department of Justice (DOJ) and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department organizes events to honor crime victims and advocates, as well as to bring awareness to services available to victims of crime. This year’s observance takes place April 24-30, with the theme: Rights, access, equity, for all victims. This theme underscores the importance of helping crime survivors find justice by enforcing victims’ rights, expanding access to services, and ensuring equity and inclusion for all.
“Recognizing the rights of victims and providing services to victims of crime is an integral part of the work of the U.S. Attorney’s Office,” U.S. Attorney Shappert said. “We work with our law enforcement and community partners to seek justice, obtain restitution, and identify additional resources necessary to compensate those who suffer the consequences of crime.”
The U.S Department of Justice Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and right of victims of crime.
The District of the U.S. Virgin Islands has a dedicated Victim Witness Coordinator who supports federal crime victims across the district. The U.S. Attorney’s Office staff notifies victims of significant case events through the DOJ Victim Notification System (VNS). Through VNS, victims learn of upcoming court proceedings and the outcome of these proceedings. VNS enables victims to participate in court proceedings and make their voices heard.
In calendar year 2021, the Virgin Islands U.S. Attorney’s Office staff provided more than 1,000 notices to crime victims. In addition to notification, the District of the U.S. Virgin Islands Victim Witness Coordinator provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools for victims to reshape their futures.
The U.S. Department of Justice Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about National Crime Victims’ Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office Victim Witness Program at [email protected].
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Texarkana Man Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
TEXARKANA – A Texarkana man was sentenced today to 168 months in prison followed by three years of supervised release on one count of Possession with the Intent to Distribute Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, Officers with the Texarkana Police Department began investigating, 33 year old, Terron Jerome Pearse, after receiving information that a felony warrant had been issued for his arrest. On October 12, 2020, officers located and attempted to make contact with Pearse, while he sat in a parked vehicle at his residence. As officers approached Pearse, he ran inside his residence and locked the door. Knowing that Pearse was on state parole, and had an active search wavier on file, officers searched Pearse’s vehicle. Inside Pearse’s vehicle, officers located a backpack that contained approximately 611 grams (or about 1.34 pounds) of suspected methamphetamine. While officers were making attempts to get Pearse to come out of the residence, he fell through the ceiling and was taken into custody.
U.S. Attorney David Clay Fowlkes made the announcement.
The Texarkana Police Department, the Bi-State Narcotics Task Force and the FBI investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case.
Tax Tiger preparer pleads guilty to tax fraudRead the Press Release
HOUSTON – A local woman has admitted to aiding and assisting in preparation of at least 50 false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Krystle Robinson prepared income tax returns for clients under her own tax service business.
As part of her plea, Robinson admitted that between 2013-2017, she helped prepare income tax returns under the business name Tax Tigers. After January 2017, Robinson’s business name was changed to Tax Lions.
In the fraudulent tax returns, Robinson made false claims of business losses from sole proprietorships and inflated Schedule A deductions and education credits. Robinson also admitted that she assisted in preparing a false income tax return for an undercover IRS agent.
The fraudulent tax returns resulted in a total loss of $245,995. Robinson agreed to pay restitution to the IRS.
U.S. Circuit Judge Gregg Costa accepted the plea and set sentencing for May 18. At that time, Robinson faces up to three years in prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
South Texas woman ordered to prison for smuggling $1.5M in methRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old La Joya woman has been sent to prison for possessing with the intent to distribute more than 19 kilograms of highly pure meth, announced U.S. Attorney Jennifer B. Lowery.
Karla Jessica Perez pleaded guilty Dec. 21, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced her to a total of 70 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional testimony that Perez purchased the vehicle in which the drugs were found, drove the vehicle into Mexico and back across the border into the United States. In handing down the sentence, the court noted that Perez’s role in the planning and organizing of the offense rose above that of a minor participant.
On June 18, Perez drove a white Jeep Patriot into the primary inspection area of the Border Patrol (BP) checkpoint near Falfurrias. A thorough search of the SUV revealed hidden compartments in the exhaust system and body panels that concealed 16 large bundles of narcotics.
Laboratory analysis later confirmed the substance in the bundles was meth with a total weight of 19.87 kilograms. The drugs had an estimated street value of more than $1.5 million.
Perez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck prosecuted the case.
South Bay Resident Charged with Federal Firearm Violation in the Wake of January 2020 Shooting DeathRead the Press Release
SAN JOSE – The Office of the United States Attorney has filed a federal criminal complaint charging Marcus Pardo with a firearm-related crime in connection with a January 2020 shooting death near the corner of Squeri Drive and Clayton Road in San Jose, announced U.S. Attorney Stephanie M. Hinds and Federal Bureau of Investigation Acting Special Agent in Charge Sean Ragan.
The complaint, filed April 11, 2022, and unsealed earlier today, alleges that Pardo, of Gilroy, Calif., shot and killed the victim with a .50 caliber firearm on January 15, 2020, during a drug transaction. According to the complaint, the shooting victim was involved in coordinating a drug deal between Pardo and another individual (the Intended Buyer) earlier the same day. The victim’s recovered text messages and other evidence show that the victim and the Intended Buyer met with Pardo, who had agreed to sell prescription Oxycodone pills to the Intended Buyer. The text messages also indicate Pardo and the Intended Buyer were bringing firearms to the drug deal and that the Intended Buyer contemplated robbing Pardo during the deal. The complaint details text messages by the victim acknowledging the danger inherent in this situation, and, specifically, one message in which the victim wrote to his friends: “Y’all if I die tonight just know I love y’all.”
According to the complaint, during the resulting meeting, Pardo fired the .50 caliber handgun in his possession, striking and killing the victim.
Pardo is charged with one count of using or carrying a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i). Pardo faces a statutory mandatory minimum sentence of five years in prison, and a maximum sentence of life in prison. In addition, as part of any sentence, the court may order restitution, a maximum $250,000 fine, and up to three years of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Pardo made his initial federal court appearance this morning before U.S. Magistrate Judge Virginia K. DeMarchi.
A criminal complaint merely alleges that a crime has been committed, and, as with all defendants, Pardo is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Jeffrey Backhus is prosecuting the case with the assistance of Elise Etter. This prosecution is the result of an investigation by the San Jose Police Department and the FBI.
Somerset County Man Admits Conspiring to Distribute over 18 Kilograms of HeroinRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man today admitted his role in a drug trafficking network that was responsible for the importation of large quantities of heroin into New Jersey, U.S. Attorney Philip R. Sellinger announced.
William T. Bouza, 45, of Watchung, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to distribute heroin and possession of heroin with intent to distribute.
According to documents filed in this case and statements made in court:
In February 2019, Bouza arranged for a vehicle that was equipped with a secret compartment, or “trap,” containing 15 kilograms of heroin, to be shipped from California to a location in Union County. Law enforcement intercepted the vehicle, seized the narcotics, and identified Bouza as the intended recipient. In the following months, law enforcement determined that Bouza was storing and processing narcotics for street-level distribution at multiple locations in Essex County. In October 2019, Bouza was apprehended. Law enforcement subsequently discovered more than 1,000 packages, or “bricks” of heroin, each containing approximately 50 individual doses, in one of Bouza’s stash-houses. In total, law enforcement seized over 18 kilograms of heroin belonging to Bouza.
The controlled substances offenses carry a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine. Sentencing is scheduled for Sept. 13, 2022.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Sellinger credited law enforcement officers with the United States Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, the New Jersey State Police, and other law enforcement agencies within the Opioids Task Force with the investigation.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Sioux City Woman Sentenced to Federal Prison for Conspiracy to Distribute over 42 Pounds of MethamphetamineRead the Press Release
A Sioux City woman who distributed over 42 pounds of methamphetamine was sentenced April 19, 2022, to 7 years in federal prison. Heather Sorgdrager, age 41, from Sioux City, received the prison term after an October 18, 2021, guilty plea to conspiracy to distribute methamphetamine.
At a plea hearing, Sorgdrager admitted to conspiring to distribute large quantities of methamphetamine in and around Sioux City. Sorgdrager admitted to possessing methamphetamine in New Mexico that she intended to bring to Sioux City. In April 2021, law enforcement in New Mexico found Sorgdrager and another individual with over 42 pounds of methamphetamine.
Sorgdrager was sentenced in Sioux City by United States Chief District Court Judge Leonard T. Strand to 84 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Sorgdrager is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4031.
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Sioux City Man with History of Violence Sentenced to 8 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
A man who possessed a firearm as a felon was sentenced on April 26, 2022, to 8 years in federal prison.
Arrion Price, age 26, from Sioux City, Iowa, received the prison term after a December 2, 2021, guilty plea to one count of possession of a firearm by a felon.
Evidence in the case revealed that on June 8, 2021, Price was a passenger in a car when he and others were subject to a traffic stop. The stopping officer smelled marijuana, ordered everyone out of the car, and began a search. Price ran from the officer. A search of the car subsequently revealed a 9mm pistol and ammunition in the storage sleeve of the car seat directly in front of where Price had been seated. The gun was loaded with one round in the chamber and 15 more rounds in the magazine. Price was eventually captured, and search of his person revealed marijuana. A search of Price’s phone revealed movies and pictures of Price with a gun that appeared identical to the gun discovered in the car.
Price has a lengthy history of violent behavior including incidents where he assaulted, robbed, and shot other persons. Price has recent criminal convictions for Robbery, Burglary and Assault With a Dangerous Weapon.
Price was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Price was sentenced to 96 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Price is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department, the Woodbury County Sheriff’s Office, and the U.S. Department of Justice – Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4052.
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Sioux City Man Sentenced to 15 years in Prison for Third Federal Drug Conviction.Read the Press Release
A man who possessed with intent to distribute methamphetamine was sentenced on April 25, 2022, to 15 years in federal prison.
Kory Mammen, 52, from Sioux City, Iowa, pled guilty on January 4, 2022, to possession with intent to distribute methamphetamine. In 2000 and 2011, Mammen was convicted in the United States District Court for the Northern District of Iowa of conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that on March 26, 2021, Mammen was stopped by law enforcement for a traffic violation in Sioux City, Iowa. Due to suspicious behavior, law enforcement deployed a K-9 on the exterior of the car which indicated to the presence of controlled substances. A search of the car revealed a black bag under the driver’s seat which contained two syringes and 17 smaller bags containing a total of 42 grams of methamphetamine. On November 15, 2021, during Mammen’s arrest on the charges in this case, he was found with several baggies which contained approximately 65 grams of methamphetamine. Mammen admitted to law enforcement he planned to distribute some or all of the methamphetamine to others.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Mammen was sentenced to 180 months’ imprisonment and must serve an eight-year term of supervised release following the imprisonment. There is no parole in the federal system. Mammen remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4091. Follow us on Twitter @USAO_NDIA.
Second Gang Member Pleads Guilty to Firearms Offenses and Admits to Participating in Fatal October 2019 RobberyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DERRICK CASADO, a/k/a “Big Bank,” a/k/a “Papa D,” pled guilty today to conspiring to distribute 28 grams and more of crack cocaine and using, carrying, possessing, brandishing, and discharging a firearm in connection with a crime of violence—namely, the May 17, 2019 shooting of a rival gang member near Sheridan Avenue and Marcy Place in the Bronx. CASADO was the fourteenth defendant to plead guilty in the case and the second to admit his participation in an October 5, 2019 robbery near 20 East 116th Street in Manhattan, during which CARLOS ROSARIO, a/k/a “Baby Bottle,” shot and killed Jonathan Rodriguez, who tried to intervene in the robbery. On February 9, 2022, ROSARIO pled guilty to conspiring to commit assault with a dangerous weapon and murder in a gang-related incident on July 18, 2019, and two counts of discharging a firearm during gang-related incidents on July 20, 2019 and October 5, 2019. ROSARIO also admitted his role in causing Rodriguez’s death. All of the defendants pled guilty before U.S. District Judge J. Paul Oetken.
According to allegations in the Indictment and Superseding Indictments filed in this case, as well as statements by the Government and defense at plea proceedings in this case:
Between 2017 and 2019, DARRELL LAWRENCE, a/k/a “Capo,” and DAVON MCCULLOUGH, a/k/a “Yung,” a/k/a “Dayday,” were leaders and suppliers of a narcotics conspiracy that operated principally on and around East 176th Street and Anthony Avenue in the Bronx, as well as in Maine and Virginia. Many members of the conspiracy—including CASADO and ROSARIO—were also members of the Mac Ballers gang. Members of the conspiracy trafficked in significant quantities of crack cocaine, heroin, fentanyl, and other dangerous drugs; and they routinely used, carried, and possessed firearms to protect their drug operations and advance their gang interests. For example, on May 17, 2019, CASADO traveled from the area of East 175th Street to Sheridan Avenue near East 169th Street and shot at a member of a rival gang who had insulted CASADO’s gang set on social media. On July 18, 2019, ROSARIO attempted to shoot at other rival gang members in the vicinity of East 178th Street and Anthony Avenue; and two days later, on July 20, 2019, ROSARIO fired shots into the courtyard of an apartment complex at 2000 Valentine Avenue. Then, on September 13, 2019, MCCULLOUGH drove two co-conspirators to commit a robbery of marijuana at a store near 2163 Second Avenue in Manhattan, knowing that at least one of the robbers would use a gun to commit the robbery. During the ensuing robbery, both co-conspirators brandished guns and stole marijuana and proceeds of marijuana sales, among other things. On October 5, 2019, CASADO, ROSARIO, and a third co-conspirator approached and robbed personal property from two individuals near 20 East 116th Street in Manhattan while ROSARIO brandished a firearm and assaulted one of the victims with the firearm. Jonathan Rodriguez attempted to intervene, and as he approached ROSARIO from behind, ROSARIO turned and fired a shot, causing Rodriguez’s death.
CASADO pled guilty today to conspiring to distribute 28 grams and more of crack cocaine and using, carrying, and possessing firearms in connection with a crime of violence, which carry a combined mandatory minimum sentence of fifteen years in prison and a maximum sentence of life in prison. ROSARIO pled guilty to conspiring to commit assault with a dangerous weapon and murder, and two counts of using, carrying, possessing, brandishing, and discharging a firearm during gang related incidents, which carry a combined mandatory minimum sentence of twenty years in prison and a maximum sentence of life in prison.
Among the other defendants to plead guilty in this case, LAWRENCE pled guilty to conspiring to distribute 280 grams and more of crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana, which carries a mandatory minimum sentence of ten years in prison and a maximum sentence of life in prison; and on February 14, 2022, MCCULLOUGH pled guilty to using, carrying, and possessing a firearm in connection with a drug trafficking crime; using, carrying, and possessing a firearm that was brandished in connection with a robbery on September 13, 2019, and conspiring to retaliate against a cooperating witness, which carry a combined mandatory minimum sentence of twelve years in prison and a maximum sentence of life in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
ROSARIO is scheduled to be sentenced at 11:30 a.m. on May 26, 2022. MCCULLOUGH is scheduled to be sentenced at 11:00 a.m. on June 30, 2022. LAWRENCE is scheduled to be sentenced at 12:00 p.m. on July 12, 2022. CASADO is scheduled to be sentenced at 11:00 a.m. on October 27, 2022. Each of the defendants will be sentenced by U.S. District Judge J. Paul Oetken.
Mr. Williams praised the outstanding work of the New York City Police Department and Department of Homeland Security-Homeland Security Investigations.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Jamie Bagliebter, and Peter Davis are in charge of the prosecution.
Saturday is National Prescription Drug Take Back Day; West Virginians Encouraged to ParticipateRead the Press Release
CHARLESTON, W.Va. – West Virginians can rid their homes of unneeded medications, a simple yet effective step in the fight against substance use disorders, during the DEA's National Prescription Drug Take Back Day this Saturday, April 30, from 10 a.m. to 2 p.m.
The Drug Enforcement Administration (DEA) organizes this national event, and the United States Attorney’s Office for the Southern District of West Virginia is a ready partner. More than 70 sites across the Mountain State will offer a safe, convenient, and anonymous way to dispose of old, unwanted and unneeded medications that are susceptible to misuse.
“This is an easy measure to prevent the abuse of medication and cut off a potential gateway to addiction, “ said United States Attorney Will Thompson. “We know that a majority of opioid use disorders in West Virginia and nationwide start with prescription pills found at home.”
U.S. drug overdose deaths are up 16 percent in the last year, claiming more than 290 lives every day. According to a report published by the Substance Abuse and Mental Health Services Administration, a majority of people who misused a prescription medication obtained the medicine from a family member or friend. The Centers for Disease Control and Prevention estimates that in the United States, more than 106,000 people died as the result of a drug overdose in the 12-month period ending November 2021, marking the most drug-related deaths ever recorded, with opioid-related deaths accounting for 75 percent of all overdose deaths.
A nationwide surge in fake prescription pills, made and marketed by criminal drug networks, is driving harm, violence, and overdoses. Fake pills, marketed as legitimate prescription pills to deceive the American public, are easy to purchase and widely available. Many counterfeit pills are made to look like prescription opioids. Fentanyl is commonly found in counterfeit pills, and is the primary driver in the alarming increase in overdose deaths.
On Saturday, April 30, 2022, DEA and its law enforcement partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illicit drugs will not be accepted. DEA will accept vaping devices and cartridges provided lithium batteries are removed.
A location finder and partner toolbox are available at http://www.DEATakeBack.com for easy reference to nearby collection sites. Beyond DEA’s Take Back Day, there are also opportunities to regularly and safely dispose of unneeded medications at more than 13,000 pharmacies, hospitals, police departments, and businesses working to help clean out medicine cabinets throughout the year.
DEA’s National Prescription Drug Take Back Day reflects DEA’s commitment to Americans’ safety and health, encouraging the public to remove unneeded medications from their homes as a measure of preventing medication misuse and opioid addiction from ever starting. Working in close partnership with local law enforcement, Take Back Day has removed more than 7,600 tons of medication from circulation since its inception. These efforts are directly in line with DEA’s priority to combat the rise of overdoses plaguing the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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San Francisco Man Charged in Alleged Cryptocurrency Investor Fraud SchemeRead the Press Release
SAN FRANCISCO – Japheth Dillman was arrested today in connection with an alleged scheme to defraud victims into investing in a San Francisco-based cryptocurrency trading fund, announced U.S. Attorney Stephanie M. Hinds, FBI Acting Special Agent in Charge Sean Ragan and Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson.
Dillman, 44, of San Francisco, was charged in a complaint filed April 26, 2022, and unsealed earlier today. According to the complaint, from June 2017 through July 2018, Dillman was a general partner of Block Bits Fund I, LP (Block Bits Fund), a limited partnership incorporated in Delaware with a principal place of business in San Francisco. Dillman is alleged to have represented to potential investors that Block Fits Fund was developing a novel autotrader that would automatically complete cryptocurrency arbitrage trades on different exchanges. Dillman told potential investors that Block Fits Fund would profit from exploiting the price differences between different cryptocurrencies being sold on various exchanges. According to Dillman, investor funds would be used to develop and operate the autotrader, which he told investors was functioning and already returning profits. The complaint further alleges that, together with another general partner, David Mata, 42, of Spokane Wash., Dillman raised approximately $960,000 from investors by misrepresenting the status and functionality of the technology underlying the autotrader and by making false representations regarding the manner investor funds were being used.
The misrepresentations Dillman allegedly made are described in the complaint. For example, Dillman represented to multiple investors in June and July 2017 that the autotrader was already functioning and returning a substantial profit to Block Bits Fund. In fact, according to the complaint, there was no functioning autotrader at the time, and any claims regarding the autotrader’s ability to generate profits were false. According to the complaint, Block Bits Fund was never able to develop a functioning autotrader at any point in its existence. Further, in August 2017, Dillman represented to investors in an email that the arbitrage autotrader was being tested and that it would be deployed for automated trades within a week. The complaint alleges that these representations were false. According to the complaint, there was no prospect that the autotrader could be developed and deployed within one week of the date of the email, as development of the autotrader had not yet begun.
In addition, the complaint describes how Dillman allegedly misrepresented how investor funds were being used by representing that funds were being placed in “cold storage” where they would return high rates of profit for investors. “Cold storage” refers to a way of storing cryptocurrency that is supposedly safe and not exposed to risky investments. Dillman informed investors on multiple occasions that Block Bits Fund had reached “cold storage” deals with third parties whereby investor funds would be placed in “cold storage” for a period of time and receive a significant profit at the end of the storage period. However, rather than place the investor funds in “cold storage” for safe keeping, Dillman and Mata instead diverted the funds and used them to invest in risky, cryptocurrency-related ventures, none of which involved “cold storage” or were related to the stated purpose of Block Bits Fund. Moreover, the complaint alleges Dillman and Mata sent misleading updates and profit reports to investors representing that their funds were being stored securely when, in fact, they were invested in risky ventures. According to the complaint, all of the investments failed and investors lost a substantial portion of their funds.
In sum, the complaint alleges Block Bits investors lost approximately $508,000 due to Dillman’s scheme. Dillman is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343. Mata also is charged with one count of wire fraud in a separate document, an information filed earlier today. If convicted, Dillman and Mata face a maximum statutory prison sentence of 20 years. In addition, the charge carries a maximum $250,000 fine and 3 years of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A criminal complaint and an information contain mere allegations and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dillman’s next court appearance is scheduled for April 28, 2022, before U.S. Magistrate Judge Thomas S. Hixson. Mata’s next court appearance is scheduled for April 29, before Magistrate Judge Hixson.
The cases against Dillman and Mata are brought as a result of an investigation by the FBI and IRS-Criminal Investigation.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. The U.S. Attorney’s Office appreciates the assistance of the San Francisco Regional Office of the Securities and Exchange Commission.
San Antonio Woman Sentenced for Bank FraudRead the Press Release
SAN ANTONIO – Yesterday a San Antonio woman was sentenced to 45 months in prison and ordered to pay $12,443.64 in restitution for her role in a bank fraud scheme.
According to court documents, from July 2017 through June 2018, Audrey Lynne Avila, 32, carried out a scheme to defraud banks by filling out change of address forms with the U.S. Postal Service and having other people’s mail delivered to mailing addresses she controlled. She then used stolen credit cards and checks to buy items and deposit funds into her bank accounts.
On January 25, 2022, Avila pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Avila has been in federal custody since her arrest on June 4, 2021.
“This sentencing demonstrates that identity theft and fraud have serious consequences in the Western District of Texas,” said U.S. Attorney Ashley C. Hoff. “This office will aggressively prosecute those who commit such crimes.”
“The sentencing of Audrey Lynne Avila to almost four years in federal prison, in addition to forfeiture of assets, brings some closure to the anxiety and frustration that was inflicted upon her victims,” said Scott Fix, Inspector in Charge, Houston Division, United States Postal Inspection Service. “A scheme that started with stealing residential mail and grew into bank fraud now begins a long, drawn-out phase of payback: a stern reminder that postal inspectors are in the background watchfully helping to protect U.S. Mail, this time working alongside the Comal County Sheriff’s Office.”
The U.S. Postal Inspection Service, with valuable help from the Comal County Sheriff’s Office, investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.
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Richland Physician Sentenced to Four Years in Prison for Conspiring to Distribute Medically Unnecessary Fentanyl Patches, Opioid Pills and Other Controlled SubstancesRead the Press Release
Spokane, Washington – Senior U.S. District Judge Edward F. Shea has sentenced Dr. Janet Sue Arnold, age 63, of Benton City, Washington, to 48 months in federal prison for conspiring to distribute and possess with intent to distribute opioid pain medications and other controlled substances without a legitimate medical purpose and outside the usual course of professional practice. Senior Judge Shea also imposed a period of 3-years’ federal supervised release.
In announcing the sentence, Senior Judge Shea emphasized the risks created by Defendant’s offense, stating, that this “particular crime created the risk of so many others.”
According to court documents, Arnold abused her position of trust as a medical doctor by participating in a prescription drug conspiracy with Danielle Corine Mata, David Barnes Nay, Lisa Marie Cooper and Jennifer Cheri Prichard. As part of their conspiracy, Dr. Arnold and her conspirators pushed thousands of pills on the street to be abused by addicts, and potentially caused others to become addicted to controlled substances. Mata and Prichard, who were both addicts, started out as patients but eventually started working at Dr. Arnold’s Richland, Washington clinic – Desert Wind Family Practice. In approximately March 2016, Mata became the practice’s office manager and one of Arnold’s most trusted associates. During the conspiracy, Nay and Cooper also provided Mata with the names of fictitious patients for her to use on several of the blank, pre-signed prescriptions to obtain opioids.
The conspiracy operated primarily out of Dr. Arnold’s clinic in Richland, Washington. On regular basis, the conspirators distributed highly addictive and dangerous controlled substances, including fentanyl, oxycodone, methadone, hydromorphone, methylphenidate, an amphetamine mixture, as well as carisoprodol and alprazolam. Dr. Arnold had a pattern and practice of providing office staff and patients with hundreds of blank, pre-signed prescriptions that, after logging into the clinic computer, allowed the conspirators to complete and print prescriptions for opioids and other controlled substances. Text messages recovered by investigators from Arnold’s and Mata’s phones demonstrated that Dr. Arnold had texted Mata asking if she needed more “signed paper.” A conspirator acknowledged how important Dr. Arnold’s signature was to the illegal prescription drug distribution conspiracy when she commented to another conspirator, “It’s just a scribble, but it’s important.” Dr. Arnold also prescribed oxycodone pills to a DEA confidential informant without a legitimate medical reason and outside the usual course of medical practice. The confidential informant, posing as a patient, sought treatment from Dr. Arnold for a headache. The confidential informant’s interactions with Arnold were covertly audio- and video-recorded.
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, emphasized the seriousness of Dr. Arnold’s breach of trust to the community: “The severity of the conduct cannot be overstated. Dr. Arnold had the prescription pad, the pen, and all the power to prescribe highly addictive Schedule II and Schedule IV controlled substances. She abused that power by pre-signing numerous blank prescriptions and giving them to her office manager. Dr. Arnold contributed to an epidemic of opioid abuse and addiction in Washington. The human cost of this epidemic is staggering and stoked by the criminally poor decisions of doctors like Janet Arnold. She was aware of the red flags of opioid drug diversion, ignored them in her practice, and continued to prescribe drugs in direct violation of her duty as a licensed doctor in Washington. With the stroke of a pen, Dr. Arnold fueled the addiction of people to opioids. I commend the excellent investigative work conducted by DEA’s Tactical Diversion Squad and the Department of Health and Human Services Office of Inspector General. We all depend on doctors and medical professionals to deliver quality and medically-appropriate care, and we will continue to work with our law enforcement partners to hold health care practitioners accountable. By doing so, we help make communities in Eastern Washington safer and stronger.”
“Dr. Arnold contributed to the current opioid epidemic with her illegal and irresponsible prescribing habits,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “She broke the trust of the community and violated her oath to the public by using her prescription pad and signature to drive a conspiracy to distribute fentanyl patches, opioids and other controlled substances. Today’s sentence sends a clear message that those who participate in the illegal distribution/diversion of narcotics, will be held accountable. We will continue to work with our local, state and federal law enforcement partners to keep our communities safe and healthy.”
“Health care professionals have a duty to prescribe controlled substances responsibly. Dr. Arnold’s inappropriate prescribing habits violated federal law and presented a clear danger to patients’ health and safety,” stated Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to hold accountable medical professionals who recklessly prescribe opioids at the expense of their community’s well-being.”
Arnold is the third of five defendants to be sentenced in this case. David Barnes Nay, age 43, of Kennewick, Washington, and Lisa Marie Cooper, age 55, of Prosser, Washington, were sentenced to 78-month and 24-month terms of imprisonment, respectively. Danielle Corine Mata, age 44, of Richland, Washington, and Jennifer Cheri Prichard, age 46, of Prosser, Washington, are scheduled to be sentenced in May 2022.
The case was investigated by DEA’s Seattle Field Office, Tactical Diversion Squad (“TDS”), and the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office. This case was prosecuted by George J.C. Jacobs, III and Dominique J. Park, Assistant United States Attorneys for the Eastern District of Washington.
Real Estate Developer Agrees to Plead Guilty to Bribery Related to $45 Million Government Lease and Other Preferential ContractsRead the Press Release
LOS ANGELES – A real estate developer has agreed to plead guilty to a federal criminal charge for offering to buy a million-dollar home for a Los Angeles County public official in exchange for the official’s assistance securing a $45 million county lease for the developer, the Justice Department announced today.
Arman Gabaee, 61, a.k.a. “Arman Gabay,” of Beverly Hills, has agreed to plead guilty to one count of bribery, a crime that carries a statutory maximum sentence of 10 years in federal prison.
Gabaee is scheduled to enter his guilty plea on May 2 before United States District Judge George H. Wu, and also has agreed to pay a fine of at least $1,149,000 and any restitution ordered.
According to his plea agreement, Gabaee was a co-founder and co-managing partner of the Charles Company, a Hollywood-based commercial and residential real estate development firm. The then-county official whom Gabaee bribed was Thomas M. Shepos, 72, of Palmdale, who worked in Los Angeles County’s Real Estate Division and was involved in awarding contracts to real estate developers and contractors.
Beginning no later than 2011 and continuing until April 2017, Gabaee paid Shepos bribes and kickbacks of approximately $1,000 per month in exchange for county leases, preferential contract terms, non-public information and other benefits. From December 2016 when Shepos began cooperating to April 2017, Gabaee paid Shepos $6,000 in cash bribes during meetings Shepos secretly recorded at the direction of the FBI.
Further, in 2017, Gabaee offered to buy Shepos a Northern California residence – then worth more than $1 million – in exchange for Shepos’ assistance securing a county lease in the Hawthorne Mall, which Gabaee owned and was redeveloping. Gabaee wanted the county to enter into a 10-year, $45 million lease for county departments to rent office space in the Hawthorne Mall.
During other secretly recorded meetings with Shepos, Gabaee first offered to purchase him a home listed at $1,199,000 in Sonoma County. Upon learning that this property was already in escrow, Gabaee offered to buy Shepos a different house, listed at $1,095,000, and also located in Sonoma County. Gabaee placed two offers on this property, first for $1,035,000 and later for $1,065,000. Gabaee admitted in his plea agreement that he rescinded the second offer hours after he made it because FBI agents had approached and informed him that they were aware of his bribes to Shepos.
Shepos pleaded guilty in November 2018 to one count of making false statements to federal investigators who were investigating his financial relationship with Gabaee and one count of subscribing to a false tax return related to payments he received from Gabaee. Shepos is scheduled to be sentenced on June 27.
The FBI investigated this matter.
Assistant United States Attorneys Ruth C. Pinkel, Lindsey Greer Dotson and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section are prosecuting this case.