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Thursday 21 April 2022
Two Boone County Men Plead Guilty in Connection with Damage to Energy FacilityRead the Press Release
CHARLESTON, W.Va. – Two Boone County men pleaded guilty in connection with damage to an energy facility, identified as a known mine located across Boone and Lincoln counties.
According to court documents and statements made in court, Danny Griffy, 57, of Sylvester, pleaded guilty today to aiding and abetting the destruction of an energy facility. Bradley Campbell, 27, of Costa, pleaded guilty to conspiring to damage an energy facility. The known mine is a West Virginia non-profit corporation engaged in the reclamation of a significant number of former mining permits and processes coal.
The case involved the theft of more than $5,000 worth of specialized mine equipment from the known mine on multiple occasions in April 2018, resulting in more than $5,000 in damage to the known mine. Campbell admitted to conspiring with others to steal the equipment, while Griffy admitted to aiding in the effort. Campbell and Griffy each admitted they and others sold the stolen equipment to a Whitesville business and converted the proceeds to their own uses.
Griffy is scheduled to be sentenced on July 27, 2022, and Campbell is scheduled to be sentenced on July 21, 2022. Each man faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine. Griffy and Campbell have also agreed to pay restitution.
United States Attorney Will Thompson made the announcement and commended the Federal Bureau of Investigation (FBI) and the West Virginia State Police for conducting the investigation.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearings. Assistant United States Attorney Kathleen Robeson is prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:22-cr-14, 2:22-cr-15, and 2:22-cr-77.
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Tobacco Wholesaler Pleads Guilty to PACT Act ViolationRead the Press Release
BOSTON – A tobacco wholesaler from Connecticut has pleaded guilty to violating the Prevent All Cigarette Trafficking (PACT) Act.
Syed I. Bokhari, 57, pleaded guilty on Tuesday, April 19, 2022 in federal court in Springfield before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for July 28, 2022. Bokhari was indicted in October 2014, and subsequently charged in a superseding indictment in December 2015.
Established in 2010, the PACT Act is designed to prevent the evasion of state tobacco taxes on cigarettes and smokeless tobacco. The PACT Act requires, among other things, businesses to file a statement with the state tobacco tax administrator prior to shipping cigarettes or smokeless tobacco into that state.
Bokhari owned and operated a wholesale supply business in Scranton, Pa., that sold smokeless tobacco to customers in Massachusetts. Between 2010 and June 5, 2012, Bokhari’s business shipped smokeless tobacco to customers in Massachusetts without ever filing the required statement with the Massachusetts tobacco tax administrator.
“By circumventing the law, Mr. Bokhari sold smokeless tobacco directly to consumers thereby cheating on his tax obligations,” said United States Attorney Rachael S. Rollins. “Whether it is through underreporting taxable income or secreting taxable products to customers, tax fraud is a crime that we will continue to investigate – plain and simple.”
“The Department of Revenue’s partnerships with the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Internal Revenue Service Criminal Investigations make it clear that we will pursue those who violate both federal and Massachusetts tax laws,” said Massachusetts Department of Revenue Commissioner Geoffrey E. Snyder. “The Department’s Criminal Investigations Bureau remains committed to working closely with our federal, state, and local partners to combat the illegal tobacco trade and recover lost revenue on behalf of Massachusetts taxpayers.”
“When unscrupulous tobacco wholesalers skirt their tax obligations, it puts competitors at an unfair disadvantage in the marketplace,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, Boston Office. “As the investigative arm of the IRS, IRS-CI special agents are a critical force multiplier with our partners in these investigations which focus on ensuring a level playing field for law-abiding tobacco businesses.”
“This guilty plea should send a clear message that the illegal diversion of tobacco products will not be tolerated,” said Special Agent in Charge James M. Ferguson of the ATF Boston Field Division. “ATF will continue to work alongside our partners to investigate incidents of illegal conduct and tax evasion of tobacco products.”
“As a wholesaler, Bokhari imported large quantities of tobacco to Massachusetts without paying the appropriate taxes, diverting significant revenue that belongs to the state. HSI is proud to support our law enforcement partners in this investigation,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office.
The charge of violating the PACT Act provides for a sentence of up to three years in prison, one year 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.
U.S. Attorney Rollins, ATF SAC Ferguson, IRS-CI SAC Simpson, HSI SAC Millhollin, Massachusetts DOR Commissioner Snyder and Connecticut Department of Revenue Service Commissioner Mark D. Boughton made the announcement. Assistant U.S. Attorneys Alex J. Grant and Christopher Morgan of Rollins’ Springfield Branch Office are prosecuting the case.
Three Sentenced in Connection with the 2013 Murder of Loomis Armored Guard Hector TrochezRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that yesterday JEREMY ESTEVES, age 35, ROBERT BRUMFIELD, III, age 28, and JASMINE THEOPHILE, age 29, all of New Orleans, were sentenced today by U.S. District Judge Lance Africk for their roles in the December 2013 armed robbery of a Loomis Armored vehicle at Chase Bank, 2331 S. Carrollton, Avenue, New Orleans, Louisiana, which resulted in the death of Loomis guard Hector Trochez.
ESTEVES, who was found guilty by a jury at trial in November 2019 of conspiracy to obstruct and obstruction of commerce by robbery, murder, and violations of the Federal Gun Control Act, was sentenced to 600 months imprisonment, a five-year term of supervised release following imprisonment, a $300 mandatory special assessment fee, and ordered to pay restitution in the amount of $277,000.00.
BRUMFIELD, who was also convicted at trial in November 2019 of conspiracy to obstruct commerce by robbery, was sentenced to 240 months imprisonment, a three year term of supervised release following imprisonment, a $100 mandatory special assessment fee, and ordered to pay restitution in the amount of $277,000.00.
THEOPHILE, the former girlfriend of co-defendant Lilbear George, previously pleaded guilty to obstruction of justice and was sentenced to a five year term of probation, which includes six months in the custody of a halfway house. She was further ordered to pay a $100 mandatory special assessment fee.
According to court documents, on December 18, 2013, ESTEVES along with co-defendants, Lilbear George, Chukwudi Ofomata, and Curtis Johnson, Jr., robbed a Loomis armored vehicle as it was making a delivery of approximately $265,000 to the Chase Bank at the intersection of S. Carrollton and S. Claiborne Avenues. As Trochez prepared to make the delivery, George and Ofomata, both armed, exited a Chevy Tahoe driven by ESTEVES and ordered Trochez to give up the money. Trochez pulled his weapon and fired at the robbers. Ofomata and George returned fired in Trochez’s direction. Johnson fired at the Loomis truck to keep the driver inside. Trochez was fatally struck on the left side of his forehead and suffered a graze wound to his elbow. One of the robbers ran towards the rear of the Loomis truck and took possession of the money bag before re-entering the Tahoe. The robbers fled the Chase Bank parking lot.
A witness seated in a vehicle at the corner of S. Claiborne and S. Carrollton Avenues observed the shooting and provided a description of the shooters and the vehicle they occupied. That witness followed the Chevy Tahoe as it fled the location of the shooting/robbery. During the vehicle’s flight, one of the shooters fired at the witness’s vehicle in an attempt to deter the witness from following. The witness observed the Chevy Tahoe arrive in the 1700 block of Adams Street and saw the four robbers exit the Chevy Tahoe and enter the awaiting Honda Accord driven by BRUMFIELD. The Honda Accord fled the Adams Street location, leaving the Chevy Tahoe behind.
The Tahoe was recovered by the New Orleans Police Department and searched pursuant to a federal search warrant. During the search, FBI agents observed that the steering wheel column of the vehicle had been breached. Agents located two screwdrivers on the floorboard and a bandana on the console. The items were collected and submitted for DNA testing at the Louisiana State Police Crime Laboratory. An unknown DNA profile, later confirmed to be that of George, was recovered from one of the screwdrivers. Likewise, the DNA recovered from the bandana was confirmed to be that of Johnson.
Co-defendants George and Ofomata previously pleaded guilty and were sentenced to 480 months imprisonment. Defendant Johnson was convicted at trial in March 2022 and will be sentenced on July 13, 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation along with the New Orleans Police Department and the Louisiana State Police. Assistant United States Attorneys Brittany L. Reed, Gregory M. Kennedy, and Inga Petrovich prosecuted the matter.
Three Men Charged with Scheming to Create and Sell False Works of Art and MemorabiliaRead the Press Release
CHICAGO — Two brothers from Michigan were among three men indicted on federal fraud charges for allegedly scheming to create and sell false works of art and memorabilia.
An indictment unsealed today in U.S. District Court in Chicago accuses DONALD HENKEL of altering and applying false autographs or signatures to paintings and memorabilia, including sports, Hollywood, and music collectibles, to make the items appear genuine or more valuable to potential buyers, including art galleries, auction houses, and individuals. The indictment alleges that Donald Henkel falsely added signatures of artists such as Ralston Crawford and George Ault to paintings that he knew were not created by those artists, and then schemed with his brother, MARK HENKEL, and others to fraudulently present the works as genuine. Donald Henkel and bogus “straw sellers” recruited by Mark Henkel allegedly provided a false provenance, or history, for numerous items, including a painting by Gertrude Abercrombie and baseballs or bats purportedly signed by Lou Gehrig, Babe Ruth, Honus Wagner, and Cy Young, as a means to falsely portray the items as genuine to potential buyers. One of the alleged straw sellers – RAYMOND PAPARELLA – schemed to conceal the Henkels’ involvement with the items in an effort to pass them off as genuine, the indictment states.
The alleged fraud scheme began in 2005 and continued until 2020. Many of the forged items were sold for more than $100,000 based on the false histories provided by the Henkels or the straw sellers, the indictment states.
The indictment charges mail fraud or wire fraud against Donald Henkel, 61, of Cedar, Mich., Mark Henkel, 66, of Ann Arbor, Mich., and Paparella, 59, of Boca Raton, Fla. Mark Henkel faces an additional charge of witness tampering for allegedly corruptly persuading a co-schemer to make a false statement to law enforcement.
The three defendants pleaded not guilty today during arraignments in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Michigan, and FBI Field Offices in Detroit, Mich., and Miami, Fla. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Texas Tax Preparer Charged with False ReturnsRead the Press Release
In an indictment unsealed today, a federal grand jury in Del Rio, Texas, indicted a tax return preparer for willfully helping clients file false tax returns with the IRS.
According to the indictment, in 2016 and 2017, Adela Cruz prepared tax returns for her clients that included false education credits, dependent information, and business profits and losses. Cruz allegedly charged the clients between $200 and $500 for each return. Cruz allegedly also falsified her own individual income tax returns for 2015 and 2016, claiming false education credits she was not entitled to receive.
If convicted, Cruz faces a statutory maximum sentence of three years in prison for each count of filing a false tax return for herself and her clients. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ashley C. Hoff for the Western District of Texas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert A. Kemins and Nicholas J. Schilling, Jr. of the Tax Division are 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.
Texas Man Sentenced to Federal Prison for Months’ Long Cyberstalking Campaign Sparked by an Unrequited Love InterestRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Desmond Babloo Singh, age 20, of Temple, Texas, late yesterday to 18 months in federal prison, followed by one year of home detention as part of three years of supervised release, for two counts of cyberstalking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, from April 18, 2020, to November 24, 2020, Singh used more than 100 different social media accounts, phone accounts, and various electronic communication tools to send harassing messages to Victim 1. The hundreds of public social media posts, text messages, and private social media messages included threats of death, bodily injury, sexualized violence, and racial slurs. Many of the accounts created and used by Singh incorporated Victim 1’s name, making it appear as if the accounts were owned and operated by her.
In early 2020, Singh sent Victim 1 online communications expressing his romantic interest in her. After Victim 1 rebuffed Singh’s advances and asked him not to contact her, Singh commenced a months’ long cyberstalking campaign against both Victim 1 and Victim 2, the latter of whom Singh viewed as a romantic rival.
Singh frequently used the fraudulent accounts he created to denigrate Victim 1’s character, appearance, and make the assertion that Victim 1 was “obsessed” with him. Singh’s harassing conduct included, among other things, numerous implied threats of bodily injury or death. For instance, Singh used a fraudulent social media account to send Victim 1 an image in which the faces of her and her family members were superimposed on the faces of several individuals hanging from nooses. In another edited picture, Singh superimposed Victim 1’s mother’s face on the body of a grieving woman at a grave site.
On or about July 19, 2020, Victim 1 received a “follow” request on a social media platform from an account that Singh created. On this account, Singh had posted pictures of Victim 1 and her family home. Additionally, Singh posted Victim 1’s parents’ address in Maryland and stated there would be a party there the following day. The following day, July 20, 2020, a Baltimore County Police Department employee received an anonymous email telling law enforcement to investigate a possible bomb at the parents’ home. Law enforcement officers responded to the residence only to learn that the bomb threat was a hoax. The federal investigation into Singh’s conduct revealed that Singh had solicited another individual to make the anonymous claim, in order to provoke an emergency police response to Victim 1’s parents’ home, referred to as “swatting.”
In furtherance of his harassment campaign against Victim 1, Singh also posted Victim 1’s personal information online including her birthdate, name, personal phone number, school, social media identities, and other identifying information. This form of online harassment is commonly referred to as “doxing”.
During the investigation of Singh’s harassment campaign, investigators discovered notes in Singh’s phone that documented his plans to harass Victim 1, including the plans to physically assault Victim 1’s family members, post over 10,000 messages relating to Victim 1’s friends, harass Victim 2, and take pictures of Victim 1 in real life.
Singh not only harassed Victim 1, but he also harassed Victim 2, whom he perceived to be a romantic rival. As he had done with Victim 1, Singh created numerous social media accounts incorporating Victim 2’s real name and publicly posted his personal information. Using an anonymous account, Singh posted a video of an unidentifiable person knocking on the door of Victim 2’s former residence with a caption telling Victim 2 to answer the door. Singh later posted the same video on an online platform which included Victim 2’s name, the former address of Victim 2, and a statement stating that he went to Victim 2’s residence to fight Victim 2.
United States Attorney Erek L. Barron commended the HSI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christopher M. Rigali, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Tennessee Man Guilty of East Texas Elder Fraud ViolationsRead the Press Release
TYLER, Texas – A Wartrace, TN, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
John Arthur Fuss, 71, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love.
According to information presented in court, Fuss was involved in a scheme developed and managed by a co-defendant. The scheme involved call center solicitations of various kinds, including home mortgage modifications, personal loans, payback of Social Security benefits, and IRS demands for payment. Victims were instructed to make payments through various money services businesses, or by mailing payments to specified addresses. Fuss was recruited to pick up payments from money services businesses or receive them in the mail, and then deposit them into accounts as instructed by one of the co-defendants. He also created at least one business so that the co-defendant could set up a bank account to use in the scheme. The overall scheme involved approximately $3.2 million in victims' payments and almost 2000 victims. Fuss admitted to being responsible for the deposit of approximately $1,173,233 in victim proceeds.
Fuss faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, HUD-OIG, and Treasury IG – Tax Administration and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.
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Superintendent of Chicopee Schools Indicted on Charges of Making False StatementsRead the Press Release
BOSTON – The Superintendent of the Chicopee Public Schools has been indicted by a federal grand jury on charges of making false statements in connection with sending 99 threatening messages to a candidate for Chicopee Police Chief.
Lynn Clark, 51, of Belchertown, was indicted today on two counts of making false statements. She will appear in federal court in Springfield on April 27, 2022. Clark was arrested and charged by criminal complaint on April 6, 2022.
According to the charging documents, in December 2021, the City of Chicopee was in the process of hiring a new Police Chief. On Dec. 3, 2021, law enforcement received a report that a candidate for the position was receiving threats intended to force the victim to withdraw their application for Chicopee Police Chief. In November 2021, after submitting their application for Police Chief, the victim allegedly received numerous text messages from unknown numbers containing threats to expose information that would cause the victim reputational harm. As a result, the victim withdrew their application and the City delayed the selection process.
The investigation revealed that a total of approximately 99 threatening messages were sent from fictitious phone numbers purchased through a mobile app. Phone and internet records revealed that these numbers were allegedly purchased by Clark and that these accounts allegedly sent each of the threatening messages.
According to the charging documents, on or about Dec. 6, 2021, Clark falsely stated to federal agents that she received threatening text messages from unknown phone numbers, when, in fact she sent the messages to herself. On or about Feb. 7, 2022, it is alleged that Clark again falsely stated that she did not know who sent the messages in addition to denying that she had downloaded a mobile app with which she purchased the fictitious phone numbers to send the messages. It is further alleged that Clark later admitted that she did indeed send the messages and downloaded the app.
The charges of making false statements each provide for a sentence of up to five years in prison, up to one of supervised release and a fine of up to $10,000. 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 Office made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Summary Judgement Issued in Civil Case Involving Hundreds of Fraudulent Medicaid/Tricare BillsRead the Press Release
MACON, Ga. – The District Court for the Middle District of Georgia entered an order partially granting summary judgment in favor of the United States and State of Georgia in U.S. ex rel Walthour v. Middle Georgia Family Rehab. Civ No. 5:18-cv-378-TES.
The order granted summary judgment on 808 false claims submitted by Middle Georgia Family Rehab (MGFR) and Brenda Hicks for services improperly billed to Medicaid and Tricare between Nov. 2, 2015, and June 18, 2020. Those improper services were billed under the names of a physical therapist and a speech therapist who were no longer employed by MGFR and therefore could not possibly have provided the services in question. U.S. District Judge “Tripp” Self, III issued the order on April 20.
In analyzing the question of whether MGFR knowingly submitted the false claims, the Court found that MGFR’s conduct “epitomizes ‘reckless disregard’ of the truth.” (ECF No. 52 at 30.) Specifically, the Court found that MGFR’s submission of 767 claims to Medicaid and Tricare over an eight-month period following the resignation of one physical therapist and the submission of 41 claims following the resignation of a speech therapist could not be characterized as an “honest mistake.” (ECF No. 52 at 30.)
Under the False Claims Act, the government is entitled to three times damages and civil penalties ranging from $5,500 and $11,000 for each identifiable claim submitted between Nov. 2, 2015 – July 31, 2016, and a range of $11,181 - $22,363 for violations committed after Jan. 29, 2018.
“Protecting the integrity of our nation’s health care programs that provide critical services for veterans, elderly and vulnerable people is imperative to ensure the continued good health of these very programs,” said U.S. Attorney Peter D. Leary. “Our office will pursue reports of medical facilities that file false claims, a choice that ultimately robs our citizens.”
The Court has ordered the parties to appear within 30 days for a hearing on the issue of damages. The hearing is scheduled for May 2 at 2:30 p.m. in Macon.
Assistant U.S. Attorneys Bowen Shoemaker and Taylor McNeill are handling this case for the Government.
Savage Man Arrested, Charged with Passport FraudRead the Press Release
MINNEAPOLIS – A federal criminal complaint has been filed against Mohamed Jama Ismail, 49, of Savage, charging him with passport fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, Ismail is one of the targets of a federal investigation into the misappropriation of Federal Child Nutrition Program funds. During the investigation, law enforcement identified several companies, including ThinkTechAct Foundation, Empire Cuisine & Market LLC, and Empire Enterprises LLC, that were receiving a suspiciously high amount of reimbursements under the Federal Child Nutrition Program. Collectively, these companies received more than $30 million in Federal Child Nutrition Program funds from approximately May 2020 to January 2022. As alleged, Ismail and a partner owned and controlled Empire Cuisine & Market LLC, which he and other co-conspirators used to fraudulently obtain, launder, and misappropriate millions of dollars in federal funds. For example, ThinkTechAct received more than $21 million in Federal Child Nutrition Program funds from February 2021 to January 2022, based on the claim that the company was serving meals to thousands of children a day at multiple distribution sites. Bank records show that ThinkTechAct transferred more than $12 million in federal funds to Empire Cuisine & Market LLC. In addition to the $12 million it received from ThinkTechAct, Empire Cuisine & Market also received more than $12 million in Federal Child Nutrition Program funds directly from Partners in Quality Care and Feeding Our Future during this same period.
As alleged, most of the funds were misappropriated and sent through shell companies to an array of individuals involved in the scheme. During the investigation, law enforcement recovered receipts for more than $800,000 in international wire transfers from Empire Cuisine & Market to entities in China. Bank records show that all of the money sent to China was traceable to Federal Child Nutrition Program funds. Bank records also show more than $700,000 in Federal Child Nutrition Program funds were wired from Empire Enterprises LLC (previously transferred from Empire Cuisine & Market) to Nairobi, Kenya in 2021.
According to court documents, on January 20, 2022, law enforcement executed a search warrant at Ismail’s home in Savage. During the search, law enforcement seized Ismail’s U.S. passport. Ismail provided law enforcement agents with the combination to the locked safe where the passport was stored. On March 22, 2022, Ismail applied for a new U.S. passport, falsely representing on the application that he had “lost” his passport “at home.” Ismail also claimed that he had filed a police report related to the loss of his passport. According to the Savage Police Department, Ismail has not filed any police reports related to the loss of his passport. Based on his application, the U.S. Department of State issued Ismail a new U.S. passport on March 22, 2022.
According to court documents, Ismail booked a flight from Rochester, Minnesota, to Nairobi, Kenya, via Minneapolis-St. Paul International Airport and Amsterdam Schiphol Airport, scheduled to depart on April 20, 2022. At 10:30 a.m. on April 20, 2022, at Rochester International Airport, Ismail used his newly obtained U.S. passport to check in for the flight. Ismail arrived at Minneapolis-St. Paul International Airport and was arrested by FBI agents while boarding his flight to Amsterdam.
Ismail is charged with one count of passport fraud. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Hildy Bowbeer.
This case is the result of an investigation conducted by the FBI, IRS, Postal Inspection Service, and U.S. Customs and Border Protection, with assistance from the Minneapolis-St. Paul Airport Police.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sacramento Felon Indicted for Possessing FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Nicholas D. Gray, 38, of Sacramento, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 31, 2022, law enforcement officers responded to a domestic disturbance in Sacramento. Before officers arrived, Gray took a duffle bag of firearms from his residence and drove to a mini-storage facility. Officers contacted Gray at his storage unit and found him in possession of firearms, additional firearms parts and lower receivers, and ammunition. Gray has eight prior felony convictions which prohibit him from possessing a firearm, including 2016 convictions for arson and manufacturing controlled substances.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the Sacramento Police Department, and the Woodland Police Department. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Gray faces 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 considering 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.
Rhea County Man Pleas Guilty to CARES Act Wire FraudRead the Press Release
CHATTANOOGA, Tenn. – On April 21, 2022, George Thacker, 59, of Spring City, Tennessee, pleaded guilty to one count of wire fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
The CARES Act is a federal law designed to provide emergency financial assistance to the millions of Americans suffering the economic effects brought about by the COVID-19 pandemic. Among other things, it authorized billions of dollars in forgivable loans to small businesses through programs referred to as the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program. The funds from those programs were intended to ensure that small businesses suffering economic impacts related to the coronavirus pandemic could continue to operate and pay expenses, including their employees’ wages.
According to court filings, Thacker applied for and received over $600,000 in PPP and EIDL loan proceeds. When applying for the loans, Thacker falsely certified that he would use the funds to pay employees and for other operating expenses. Instead of using the money to its intended purpose, Thacker used the funds for his own enrichment, among other things, purchasing cryptocurrency and funding his personal investment accounts.
This investigation was led by the United States Secret Service.
Sentencing has been set for September 22, 2022, before the United States District Judge Charles E. Atchley, Jr. Thacker faces a maximum of 20-year prison sentence; $250,000 in fines; and supervised release for three years.
Assistant United States Attorney Kyle J. Wilson represented the United States.
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Previously convicted felon sentenced to 6 years in prison for possessing firearmsRead the Press Release
DAYTON, Ohio – Davon Andre Winn, 36, of Dayton, was sentenced in U.S. District Court to 72 months in prison for possessing two loaded firearms after being convicted of a felony crime.
According to court documents, in November 2020, while Winn was on parole, Ohio Adult Parole Authority conducted a search of the residence in which Winn spent a majority of his time.
They discovered an assault rifle and a handgun. Both firearms were loaded.
Winn had prior felony convictions, including kidnapping, aggravated burglary with a deadly weapon, burglary and various other violent offenses. These convictions legally prohibited Winn from possessing a firearm or ammunition.
“We take felon-in-possession cases seriously, especially when they involve defendants using military-style weapons as street guns,” said U.S. Attorney Kenneth L. Parker. “These firearms, with their high-capacity magazines and ability to fire repeatedly without reloading, continue to exact a great cost in senseless bloodshed and tragedy in communities across the country.”
The defendant pleaded guilty in his federal case in October 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Kamran Afzal and other members of the Dayton Police Department’s Safe Streets Task Force announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Laura I. Clemmens represented the United States at sentencing.
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Portage Man Sentenced to 27 Months in PrisonRead the Press Release
HAMMOND- Luis Carlos Marin, Jr., 31 years old, of Portage, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to making a false statement in connection with the acquisition of a firearm, announced United States Attorney Clifford D. Johnson.
Marin was sentenced to 27 months in prison followed by 1 year of supervised release.
According to documents in the case, between March 26, 2020, and July 13, 2020, Marin purchased a total of 24 firearms from federally licensed firearm dealers. While purchasing the firearms, Marin made false statements on the ATF Form 4473 in violation of federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Chicago Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
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.
Physician Indicted in $10 Million Telemedicine Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Elemer Raffai, an orthopedic surgeon, with health care fraud in connection with a $10 million scheme involving the submission of false and fraudulent claims to Medicare and Medicare Part D plans. Raffai was arrested today and will make his initial court appearance this afternoon in United States District Court for the Northern District of New York.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr. Assistant Attorney General of the Justice Department’s Criminal Division; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG); and Janeen DiGuiseppi, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Field Office (FBI), announced the arrest and indictment.
“In exchange for kickbacks from telemedicine companies, Dr. Raffai allegedly submitted millions of dollars in false and fraudulent claims to Medicare on behalf of beneficiaries without even examining them or based on conversations on the phone that lasted less than three minutes,” stated United States Attorney Peace. “Dishonest doctors who think Medicare is a cash cow and connect with telemedicine companies to brazenly steal from this vital taxpayer-funded program, will find themselves arrested, prosecuted and their scheme disconnected.”
“These allegations describe a physician who is more motivated by personal enrichment than his duty to provide appropriate and necessary care to his patients,” stated HHS-OIG Special Agent in Charge Lampert. “Dr. Raffai is accused not only of disregarding proper patient care, but also of pilfering funds from a program upon which millions of citizens depend for health services. Our agency and law enforcement partners are dedicated to tracking down individuals who commit health care offenses, and their involvement in a fraud network does not insulate them from our pursuit.”
“Healthcare fraud is a serious crime that impacts every American. Dr. Raffai cheated the system for his own personal gain in the amount of $10 million. Like many others who commit healthcare fraud, Dr. Raffai’s crimes contribute to the rising cost of health care for everyone. The FBI, along with our partners, will continue to investigate healthcare fraud to ensure these individuals who willingly defraud the American people are brought to justice,” stated FBI Special Agent-in-Charge DiGuiseppi.
According to the indictment, Dr. Raffai purported to practice telemedicine with the AffordADoc Network and other telemedicine companies that paid the defendant for each consultation with a beneficiary. Between July 2016 and June 2017, Dr. Raffai allegedly participated in a health care fraud scheme in which he signed prescriptions and order forms via purported telemedicine services for durable medical equipment (DME), including orthotic braces, that were not medically necessary. Dr. Raffai caused the submission of these claims based solely on a short telephone conversation for beneficiaries he had not physically examined and evaluated, and that were induced, in part, by the payments of bribes and kickbacks. Dr. Raffai was paid by telemedicine companies approximately $25 or $30 per patient consultation. The indictment further alleges that Dr. Raffai, together with others, submitted or caused the submission of approximately $10 million in false and fraudulent claims to Medicare for DME on behalf of beneficiaries who were residents of the Eastern District of New York, and Medicare paid more than $4 million on those claims.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dr. Raffai faces up to 10 years in prison.
The FBI and HHS-OIG are investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Andrew Estes and Kelly M. Lyons of the Criminal Division’s Fraud Section are in charge of the prosecution.
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.
Defendant:
DR. ELEMER RAFFAI
Age: 56
Malone, New YorkE.D.N.Y. Docket No.: 22-CR-177 (SJ)
Physician Indicted in $10 Million Health Care Fraud SchemeRead the Press Release
A New York physician was charged in an indictment unsealed today in the Eastern District of New York for an alleged $10 million health care fraud scheme involving the submission of false and fraudulent claims to Medicare and Medicare Part D plans.
According to court documents, Elemer Raffai, 56, of Rome, between approximately July 2016 and June 2017, allegedly signed prescriptions and order forms via purported telemedicine services for durable medical equipment (DME) that were not medically necessary. Raffai caused these claims to be submitted based solely on a short telephone conversation for beneficiaries he did not physically examine and evaluate and that were induced, in part, by the payments of bribes and kickbacks to Raffai. The indictment further alleges that Raffai, with others, submitted or caused the submission of approximately $10 million in false and fraudulent claims to Medicare for DME, and Medicare paid more than $4 million on those claims.
Raffai is charged with health care fraud. He was arrested and is making his initial court appearance today in the U.S. District Court for the Northern District of New York. If convicted, Raffai faces a maximum total penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Janeen DiGuiseppi of the FBI’s Albany Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Trial Attorneys Kelly M. Lyons and Andrew Estes of the Criminal Division’s Fraud Section prosecuted 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.
Philadelphia Felon Found Guilty by Jury of Illegally Possessing a Firearm During June 2020 Civil UnrestRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Steven Pennycooke, 36, of Philadelphia, PA, was convicted after trial of a single count of possession of a firearm by a felon arising from a looting incident during the period of civil unrest and mandatory curfew in the City of Philadelphia in Spring 2020.
In June 2020, Philadelphia Police officers responded to a 911 call reporting that two men were seen pushing a looted ATM down a street in West Philadelphia. When the officers approached the block indicated in the call, they observed two men standing in the street less than a half a block away from a looted ATM loaded onto a cart. When the officers got closer to the suspects, they observed the defendant throw something into a vehicle; and one of the officers looked through the vehicle’s window and observed a firearm in the backseat. As a previously convicted felon in the Commonwealth of Pennsylvania in 2011, Pennycooke was prohibited from owning or possessing a firearm.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has reached record-breaking proportions,” said U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant illegally possessed a loaded firearm that fortunately was secured by experienced Philadelphia Police officers who took the defendant into custody without incident. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to support Philadelphia police and get criminals like this defendant off the streets for a long time.”
“Getting guns away from people not allowed to have them is vital as we battle violent crime in Philadelphia,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our PPD partners will use every tool at our disposal to take criminals off the street, as we work to make Philadelphia safer. The folks who live, work, or visit here deserve nothing less.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Alexandra Lastowski and Derek Hines.
Pacific Northwest Environmental Extremist and Arsonist Pleads GuiltyRead the Press Release
PORTLAND, Ore.—A Pacific Northwest environmental extremist, arsonist, and former fugitive pleaded guilty today in federal court for his role in two arson conspiracies targeting commercial and government-owned animal processing facilities in Oregon and California.
Joseph Mahmoud Dibee, 53, pleaded guilty to conspiracy to commit arson and arson in the District of Oregon and conspiracy to commit arson in the Eastern District of California.
Today’s plea also resolves Dibee’s pending criminal case in the Western District of Washington.
“No matter the agenda, using violence to advance a social or political cause is a serious crime. Over a series of years, Mr. Dibee and his co-conspirators caused millions of dollars in damage to commercial and government-owned properties. Today, after many years on the run, Mr. Dibee admitted to his role in these schemes and will finally face justice,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“It has taken more than 20 years for Joseph Dibee to face justice. The FBI and our law enforcement partners never gave up. From destroying evidence to fleeing the country, none of Mr. Dibee’s tactics stopped us from making sure he was held accountable for his malicious and destructive actions,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, beginning in October 1996 and continuing through December 2005, Dibee and at least 15 other individuals affiliated with the Earth Liberation Front and Animal Liberation Front knowingly conspired with one another to damage or destroy various commercial and government-owned properties.
Dibee and his co-conspirators held meetings to plan arsons of targeted sites, conducted research and surveillance of the sites, and discussed their planned actions using code words and code names. The conspirators designed and constructed destructive devices which functioned as incendiary bombs to ignite fires and destroy targeted sites. During their self-described “direct actions,” the conspirators dressed in dark clothing and wore masks and gloves to disguise their appearances. Some conspirators acted as lookouts while others were responsible for placing, igniting, or attempting to ignite the improvised incendiary devices.
On or about July 21, 1997, Dibee and others used incendiary devices to destroy the Cavel West Meat Packing Plant, a commercial slaughterhouse and meatpacking facility in Redmond, Oregon. Several years later, in October 2001, Dibee and others attempted to destroy the Bureau of Land Management’s Wild Horse Corrals, a government-owned facility used to remove wild horses from public lands located near Litchfield, California. The group’s attack on the facility caused the destruction of a barn and its contents.
Prior to the second incident, Dibee and others recruited co-conspirators and gathered supplies and fuel to make incendiary devices. The group used Dibee’s residence in Seattle, Washington to construct the devices and traveled from Seattle to Northern California in Dibee’s truck.
In 2006, after a long-running domestic terrorism investigation led by the FBI, a federal grand jury in Oregon indicted Dibee and 11 co-conspirators. Dibee and others were later indicted in the Eastern District of California and Western District of Washington. The conspirators, together known as “the Family,” were ultimately linked to more than 40 criminal acts between 1995 and 2001 and caused more than $45 million in damages.
Dibee fled the U.S. in December 2005. In late summer 2018, Cuban authorities arrested Dibee on an Interpol Red Notice. The U.S. Department of State, the U.S. Department of Homeland Security including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement, and the U.S. Embassy in Havana assisted in returning Dibee to the U.S.
With Dibee’s continued acceptance of responsibility, the government will recommend a sentence of 87 months in federal prison. He will be sentenced on July 27, 2022 by U.S. District Court Judge Ann Aiken in the District of Oregon.
As part of his plea agreement, Dibee has agreed to pay restitution to his victims as determined by the government and ordered by the court.
One of Dibee’s co-conspirators remains at large. Josephine Sunshine Overaker, an American citizen who is either 47 or 50 years old, is believed to have fled to Europe in late 2001. Overaker faces 19 felony charges including conspiracy to commit arson, conspiracy to commit arson and destruction of an energy facility, attempted arson, and arson in the District of Oregon, the Western District of Washington, and the District of Colorado. The FBI continues to offer a reward of up to $50,000 for information leading to Overaker’s arrest.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Asphaug, and U.S. Attorneys Phillip A. Talbert of the Eastern District of California and Nicholas W. Brown of the Western District of Washington made the announcement.
This case was investigated by the FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by the U.S. Attorney’s Offices for the District of Oregon, Northern District of California, and Western District of Washington, and the National Security Division’s Counterterrorism Section.
Owners of Behavioral Health Companies Sentenced for Medicaid FraudRead the Press Release
LAS VEGAS – The owners of two behavioral health companies in Las Vegas were sentenced yesterday to three years’ probation for their roles in defrauding the Medicaid health care benefit program of thousands of dollars.
Erica Goodley (37) and Billy Kirby (38), both of Georgia, each pleaded guilty in January 2022 to one count of conspiracy to commit health care fraud and one count of health care fraud. In addition to the three-year term of probation, U.S. District Judge Andrew P. Gordon ordered the forfeiture of $499,440.70 from the defendants.
According to court documents, Goodley and Kirby were the owners of Endeavor Behavioral Health and International Behavioral Health. From June 2016 to February 2018, Goodley and Kirby conspired to provide false representations and omissions on applications to enroll the companies as medical providers with Medicaid. On the applications, they omitted Kirby’s 2005 gross misdemeanor conviction.
It was further part of the conspiracy that the companies fraudulently billed Nevada Medicaid for 24 hours of counseling services by a single counselor in one day and for counselors who did not exist or did not work at the companies at the time of the services. As a result of the false billing, Goodley and Kirby caused a loss of thousands of dollars from Medicaid.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Albert Childress for the IRS-Criminal Investigation (IRS-CI), and Nevada Attorney General Aaron D. Ford made the announcement.
This case was investigated by IRS-CI and the Nevada Attorney General’s Office. Assistant U.S. Attorneys Christopher Burton and Steven Myhre prosecuted the case.
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Orleans Parish Man Pleads Guilty to Drug Trafficking OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DAVID SINGLETON, age 62, of New Orleans, pled guilty to violations of the Federal Controlled Substances Act. Specifically, SINGLETON pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B) and 846.
According to court documents, SINGLETON possessed over 500 grams of cocaine hydrochloride on about October 20, 2017 in New Orleans.
SINGLETON faces a mandatory minimum sentence of 10 years of imprisonment, up to life imprisonment, a fine of up to $8,000,000, at least 8 years of supervised release, and a $100 mandatory special assessment fee. United States District Judge Ivan L.R. Lemelle set sentencing for July 20, 2022.
U.S. Attorney Evans praised the work of the Federal Drug Enforcement Administration and the New Orleans Police Department in investigating this case. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Oregon Man Sentenced to 16 Years on Drug and Assault ChargesRead the Press Release
ANCHORAGE – An Oregon man was sentenced today by U.S. District Judge Ralph R. Beistline to 16 years in prison for drug conspiracy and assault of a corrections officer.
According to court documents, Michael Hindman, 32, mailed multiple packages of heroin and methamphetamine to a local drug dealer in Unalaska, Alaska, during 2019. In return, the local dealer mailed Hindman boxes of cash to pay for the drugs. One specific package Hindman sent on October 9, 2019, contained 93 grams of heroin. This heroin was divided and sold to individuals throughout the Unalaska community. On October 16 an individual who had received a baggie of the heroin was found deceased in a local hotel room. The medical examiner confirmed that the individual had died of a heroin overdose. The investigation led to Hindman, who was living in Oregon, as the distributor of the heroin to Unalaska.
Hindman was arrested in November 2019 on the federal drug charge. While being held at the Anchorage Correctional Complex in June 2020, Hindman assaulted an Alaska Department of Corrections Officer which required emergency room treatment.
Hindman pleaded guilty to both charges in August 2021.
“The US Attorney’s office and our law-enforcement partners will not stand by while drug dealers peddle their poison and kill Alaskans,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “This heavy sentence should be a warning to anyone considering trafficking in opioids, even from outside the state.”
“The sentencing of Michael Hindman removes a dangerous criminal from the streets and provides closure to the family of his victim. The shipment of illegal narcotics has no place in the US Postal Service and the State of Alaska.” said Inspector in Charge Anthony Galetti, “The US Postal Inspection Service is determined to investigate those who use the US Mail in support of their criminal activities. We thank our state, local and federal partners for their support and efforts in this investigation.”
The U.S. Postal Inspection Service, U.S. Coast Guard Investigative Service and the Unalaska Department of Public Safety investigated the drug conspiracy case. The U.S. Marshal Service investigated the assault with assistance from Alaska State Troopers and the Alaska Department of Corrections.
Criminal Chief, Assistant U.S. Attorney Christina Sherman and Assistant U.S. Attorney Karen Vandergaw prosecuted the case.
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Non-Citizen Charged with Hindering Removal to JamaicaRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cleon Ainsworth Samuels, age 32, was indicted on April 20, 2022, by a federal grand jury for hindering removal.
According to United States Attorney John C. Gurganus, Samuels is a removable alien, with a valid order of removal. The indictment alleges that Samuels knowingly took steps to prevent his own removal by failing to allow collection of a COVID-19 test which is necessary for air travel to effectuate his removal from the United States.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
Samuels faces a maximum penalty of four 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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New York For-Hire Vehicle Driver Sentenced to 235 Months in Prison for Sex CrimesRead the Press Release
CAMDEN, N.J. – A New York man was sentenced today to 235 months in prison for enticing and transporting a minor across state lines to engage in sexual activity, and for receiving images of child sexual abuse from another minor, U.S. Attorney Philip R. Sellinger announced.
Richard Gabriel Piedra Ordonez, 37, of Queens, New York, previously pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to a three-count information charging him with one count of coercion and enticement of a minor; one count of transporting a minor to engage in criminal sexual activity; and one count of receiving child pornography. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In April 2019, Piedra began communicating with a New Jersey resident who was under the age of 16 using Snapchat and other social media and messaging platforms. Piedra was aware of the minor’s age and misrepresented his own age as 19 when he was actually 35 years old. Over the course of the subsequent months, Piedra and the victim met in person and engaged sexual activity. On multiple occasions, Piedra traveled to New Jersey to have sex with the victim and drove the victim to his home in New York City, where they engaged in sexual activity.
Federal law enforcement agents executing a search warrant on Piedra’s residence in December 2019 found sexually explicit images and videos of minors on a hard drive located in Piedra’s bedroom. Further investigation revealed that, in 2017, Piedra had communicated with an Indiana resident who was under the age of 15 using various social media and messaging platforms. Piedra was aware of the minor’s age and misrepresented his own age as 19 years old. Piedra requested and received sexually explicit images and videos from the Indiana victim.
In addition to the prison term, Judge Hillman sentenced Piedra to 10 years of supervised release and ordered him to register as a sex offender.
U.S. Attorney Sellinger credited special agents with FBI’s Atlantic City Child Exploitation & Human Trafficking Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill; and the N.J State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. He also thanked the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
New Jersey Pawn Shop and its Owner Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Daniel Markus Inc., which operated pawn shops in New Jersey, and its owner have agreed to pay $50,000 in civil penalties to settle allegations that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. The company also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $240,000 on the improper loan.
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“This resolution demonstrates that the department will identify those who took advantage of relief packages meant to help the American people and will take steps to recover ill-gotten funds whenever possible,” said Associate Deputy Attorney General Kevin A. Chambers, the department’s Director of COVID-19 Fraud Enforcement.
“OIG continues to identify and bring to justice anyone who wrongfully obtains benefits from SBA programs,” said Special Agent-in-Charge Amaleka McCall-Brathwaite for SBA Office of Inspector General (OIG). “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Daniel Markus Inc. knowingly and improperly received and retained a second, duplicative PPP loan in 2020.
The settlement with Daniel Markus Inc., and its owner, Margarita Risis, resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry, and, as part of the resolution, he will receive approximately $3,500 as a share of the False Claims Act recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney David V. Simunovich of the District of New Jersey.
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. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud 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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
New Jersey Man Indicted for Wire Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Juller Perez, age 43, of Garfield, New Jersey, was arraigned today on an indictment charging him with engaging in a kickback scheme to defraud a company with operations in Greene County, from at least 2015 to 2019. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Tammy L. Tomlins, Special Agent in Charge of the Newark Field Office of Internal Revenue Service – Criminal Investigation (IRS-CI).
According to the indictment, from at least 2015 to 2019, Perez co-owned a trucking company in New Jersey that transported products as a third-party contractor for a bedding company with a distribution facility in West Coxsackie, New York. As part of the fraudulent scheme, Perez paid kickbacks to the transportation manager of the bedding company in exchange for the use of the bedding company’s trucks and drivers to transport merchandise from West Coxsackie to Perez’s truck yard in Clifton, New Jersey, which allowed Perez to avoid certain transportation costs. Perez then fraudulently invoiced and received payment from the bedding company as if his trucking company had transported and delivered the merchandise from West Coxsackie when Perez and his trucking company transported the merchandise only from the Clifton, New Jersey location.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Perez carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Perez was arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and was released pending a trial before United States District Judge Mae A. D’Agostino.
This case is being investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
New Haven Man Sentenced to Federal Prison for Selling CrackRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that TASHAUN FAIR, 29, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 21 months of imprisonment, followed by one year of supervised release, for distributing crack.
According to court documents and statements made in court, in 2020, the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department conducted an investigation into narcotics trafficking and related criminal activity in and around New Haven. In November 2020, Fair was intercepted over a court-authorized wiretap ordering distribution quantities of crack from his associate, Devaro Taylor. Fair then sold the drug to his own customers.
Fair has been detained since his arrest on January 26, 2021. On May 25, 2021, he pleaded guilty to one count of use of a telephone to facilitate a drug trafficking felony.
Fair’s criminal history includes several convictions, including two convictions related to his involvement in gunpoint robberies.
Taylor has pleaded guilty and awaits sentencing.
The FBI’s New Haven Safe Streets/Gang Task Force includes members from the New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police and Connecticut Department of Correction. The U.S. Drug Enforcement Administration and West Haven Police Department assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile and Marc H. Silverman 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.
Nevada Man Charged in Kidnapping ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on April 14, 2022, Aron Lee Ethridge, 41, of Henderson, Nevada was indicted on charges of participating in a conspiracy resulting in the kidnapping of Gregory Davis, a resident of Danville, Vermont, on January 6, 2018. Ethridge had his initial appearance on this charge in the District of Vermont on April 20, 2022, and he has a detention hearing scheduled for April 25, 2022.
The indictment identifies Ethridge’s co-conspirator as Jerry Banks, who was indicted on April 14, 2022, in the District of Vermont on kidnapping charges. The indictment charging Ethridge explains how Banks communicated with Ethridge about the kidnapping and murder of Davis.
The charges against Ethridge carry a maximum penalty of life imprisonment. Any actual sentence will be determined with reference to the Federal Sentencing Guidelines. The indictment charging Ethridge contains accusations only, and the defendant is presumed innocent until and unless proven guilty.
The prosecutors are Assistant United States Attorneys Paul Van de Graaf and Jonathan Ophardt. Mark A. Kaplan, Esq. represents Ethridge.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in their collaborative investigation of Ethridge.
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. https://www.justice.gov/psn
Milwaukee Man Sentenced to 15 years in Prison for Home Invasion RobberyRead the Press Release
United States Attorney Richard G. Frohling has announced that April 21, 2022, United States District Judge Lynn Adelman sentenced Michael Robertson to 15 years in federal prison after Mr. Robertson pled guilty to robbery affecting interstate commerce. Mr. Robertson was charged under the Hobbs Act. He also faced a 10-year mandatory minimum for discharging a firearm during a crime of violence.
The evidence showed that on June 23, 2021, Mr. Robertson entered the 59-year-old victim’s home armed with two firearms and demanded her money and property. When the victim resisted, Mr. Robertson fired his gun into her couch twice and pistol-whipped her in the head. Mr. Robertson stole the victim’s bag containing U.S. currency and various controlled substances and fled.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorney Abbey M. Marzick.
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Michigan City Man Sentenced to 84 Months in PrisonRead the Press Release
SOUTH BEND – Colton Crawford, 33 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Crawford was sentenced to 84 months in prison followed by 2 years of supervised release.
According to documents in this case, in August 2020, Crawford was stopped by police. During the stop, police discovered a handgun, magazines, and a holster, which DNA verified he possessed. Crawford has a June 2015 felony conviction in LaPorte County Superior Court which prohibits him from possessing any firearm and/or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police. This case was prosecuted by Assistant U.S. Attorneys Geovanny Martinez and Kimberly Schultz.
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.
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Mexican Woman Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BLANCA ESTELA AVALOS ALEJANDRO, age 41, a native of Mexico, was charged today in a one-count indictment with illegally using a social security number in order to enroll in a safety class to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
BLANCA ESTELA AVALOS ALEJANDRO faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Mexican National Indicted for Distribution of Fentanyl and Other Drugs in Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramos, 48, of Sinaloa, Mexico, charging him with distributing and possessing with intent to distribute fentanyl, eutylone, hydrocodone, and ketamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 13, 2021, after negotiating for the delivery 10,000 “pills” and “one of China”–a street term for synthetic heroin powder usually containing fentanyl–Ramos delivered pills containing fentanyl that weighed approximately 31 grams and approximately 2 pounds of a white powdery substance containing eutylone, hydrocodone, and ketamine. According to the Drug Enforcement Administration, 2 milligrams of fentanyl is considered a lethal dose. Ketamine is a schedule III pain reliever commonly used in anesthesia. Hydrocodone is a schedule II opiate used for severe pain. Eutylone is a schedule I stimulant, and is also known as “boot.”
This case is the product of an investigation by the Fresno High Impact Investigation Team (HIIT), which is a High Intensity Drug Trafficking Area Initiative (HIDTA) composed of law enforcement personnel from the Federal Bureau of Investigation; the DEA; the California Department of Justice; the California Highway Patrol; the Sheriff’s Offices of Fresno, Tulare, and Kings Counties; and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Ramos faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Citizen Sentenced to 60 Months for Trempealeau County Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Karlett Salazar Zagal, 23, a citizen of Mexico living in Trempealeau County, Wisconsin, pleaded guilty and was sentenced today by U.S. District Judge William M. Conley to 60 months in prison for conspiracy to distribute cocaine.
In August 2020, law enforcement received information that several people sold cocaine at a barbershop and taverns in Arcadia, Wisconsin. As their investigation continued, law enforcement learned that three people in Wisconsin received cocaine from someone in Puerto Rico. The Puerto Rican source-of-supply shipped ½ kilogram quantities of cocaine at a time, via U.S. Mail, and hid the drugs inside radios, printers, or bedsheets. In exchange for the cocaine, the Wisconsin-based cocaine traffickers sent money and guns to Puerto Rico.
As part of the investigation, United States Postal Service Office of Inspector General (USPS-OIG) agents obtained and executed several federal search warrants. On May 5, 2021, agents obtained a federal search warrant for a parcel sent from Puerto Rico and destined for a residence in Winona, Minnesota. The Minnesota residence belonged to a person associated with the Wisconsin-based cocaine traffickers. Inside the parcel, investigators found 557 grams of cocaine hidden inside a large Bluetooth speaker.
On June 29, 2021, a USPS-OIG agent obtained a federal search warrant for a parcel sent from Independence, Wisconsin to a residence in Puerto Rico. Inside the parcel, investigators discovered two Glock semi-automatic handguns.
On July 13, 2021, a USPS-OIG agent obtained a federal search warrant for a parcel sent from Puerto Rico to an address in Independence, Wisconsin. Inside, investigators found 506 grams of cocaine. On July 14, 2021, investigators conducted a controlled delivery of the parcel and executed a search warrant. Law enforcement found Salazar, another member of the conspiracy, and an underage female inside the residence.
During a post-arrest interview, Salazar admitted that she “knew what was going on” because she helped run the cocaine business. She discussed how a Puerto Rican source-of-supply sent cocaine to Wisconsin through the U.S. Mail, as well as how the Wisconsin-based traffickers distributed the drugs in and around Arcadia. Salazar also admitted that she helped send the Glock pistols to Puerto Rico.
In imposing the sentence, Judge Conley highlighted Salazar’s role in a large drug conspiracy, and Salazar’s decision to send firearms on behalf of another member of the conspiracy.
The charge against Salazar was the result of an investigation conducted by the USPS-OIG; U.S. Postal Inspection Service; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wisconsin Department of Justice Division of Criminal Investigation; Trempealeau County Sheriff’s Office; Winona County (Minnesota) Sheriff’s Office; Arcadia Police Department; and Independence Police Department. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Massachusetts Woman Pleads Guilty to Bank FraudRead the Press Release
CONCORD - Niurka Lebron, 45, of Dorchester, Massachusetts, pleaded guilty in federal court to bank fraud on Wednesday, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February 2019, the defendant was involved in a scheme to defraud several financial institutions. The defendants in the scheme applied for and obtained multiple loans to purchase cars purportedly sold by Allied Imports, a Manchester car wholesaler, and Cap’s Auto Sales, a Manchester car retailer. The sales were fraudulent because the defendants never owned or greatly inflated the value of the cars. In total, the defendants defrauded the financial institutions of several hundred thousand dollars.
Lebron participated in the scheme by signing a fraudulent car purchase contract from Allied Imports. She then used the contract to apply for a car loan secured by the vehicle, which Allied Imports did not own or have the title to.
Lebron is scheduled to be sentenced on August 22, 2022.
“Criminals use a wide variety of schemes to commit financial crimes,” said U.S. Attorney Farley. “We work closely with our law enforcement partners to uncover fraud schemes in the Granite State and to hold wrongdoers accountable for their unlawful activities.”
This matter was investigated by the United States Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen and Assistant U.S. Attorney Charles L. Rombeau.
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Marion, Indiana Woman Sentenced to 27 Months in Prison and Ordered to Pay $338,278.17 in RestitutionRead the Press Release
FORT WAYNE – Christina M. Morris, 50 years old, of Marion, Indiana, was sentenced by United States District Court Judge Holly A. Brady on her plea of guilty to mail fraud, announced United States Attorney Clifford D. Johnson.
Morris was sentenced to 27 months in prison followed by 1 year of supervised release and was also ordered to pay $338,278.17 in restitution to the Department of Veterans Affairs.
According to documents in this case, beginning in 2007, Morris worked for the Department of Veterans Affairs (VA) at the VA Medical Center in Marion, Indiana. In February 2008, Morris suffered a fall while working. She then filed a worker’s compensation claim and began receiving benefits, including payment for medical care related to her injury and expenses. As late as 2018 and 2019, Morris was regularly submitting claims through the U.S. Mail for reimbursement alleging that she traveled roughly 200 miles roundtrip to a clinic for treatment six days per week and had incurred out of pocket expenses. Agents spoke with employees at the clinic who revealed that Morris had not received treatment at the clinic for years and that her claims and the receipts submitted to support them were fraudulent. The fraudulent claims began in January 2014 and continued until July 2019, when Morris was confronted by investigators and admitted that she had filed false claims for reimbursement for treatment, mileage and expenses. The investigation revealed that Morris had filed 670 fraudulent claims for a total of $338,278.17.
This case was investigated by the Department of Labor, Office of the Inspector General and the Department of Veterans Affairs, Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
Man Pleads Guilty to Civil Rights Conspiracy Involving Robbery and KidnappingRead the Press Release
Memphis, TN- Kenneth Hicks, 62, has pleaded guilty to civil rights conspiracy violations. Joseph C. Murphy Jr., United States Attorney, announced the guilty plea today.
According to information presented in court, after a four-day jury trial, on April 15, 2022, Kenneth Hicks pled guilty to conspiring to violate the civil rights of others. Proof submitted to the jury and the court showed that between 2014 and 2018 Anthony Davis, Sam Blue, Ronnie Woods, Lester Page, Kenneth Hicks, David Douglas, and Jarvis Howard conspired to rob drug dealers of drugs and drug proceeds acting under color of law. Sam Blue was a sworn Memphis Police Department officer during this time. Hicks joined the conspiracy in the summer of 2018.
Prior to the planned robberies, various co-conspirators would conduct surveillance of the targets. Blue provided his co-conspirators with equipment, including an official MPD badge, and a car dashboard blue light to use during the planned robberies so that they could falsely claim to be or appear to be law enforcement officers. In the summer of 2018, conspirators targeted individuals believed to be in possession of drugs and drug proceeds. The plan was to pose as law enforcement and detain the targets and seize the drugs and/or money. Blue provided law enforcement sensitive information in furtherance of the conspiracy to rob these individuals and violate their constitutional rights. To further the conspiracy, Blue would contact MPD dispatch and request that a license plate be run. Blue would pass that information along to Davis. Blue also provided advice as to tactics to use to appear that the conspirators were law enforcement.
On July 13, 2018, the final victim was leaving his apartment in Memphis around 4:30 a.m. when a black car with flashing blue lights pulled up behind his car. Hicks and Douglas, dressed in law enforcement type clothing with the word "police" on it and wearing masks and armed with handguns, got out of the car, and ordered the victim to get on the ground.
He obeyed and the men handcuffed him, put a hood over his face, and put him in the back of their car. Hicks and Douglas then drove him to a house on Reese Road.
The victim was taken inside the house and restrained while the defendants beat him, burned him on his arm, neck, and head, and demanded that he tell them where he kept his money and/or drugs. The victim was able to eventually escape by diving head-first out of a window while still handcuffed and with a hood still over his head. A construction worker spotted him in the street and flagged down an officer to get him help. The victim suffered second and third-degree burns on his neck, face, and arms. He was hospitalized for a week in the burn unit at the Med and had to undergo surgery for his injuries including a skin graft to his arm.
"For the last 15 years, the FBI Memphis Field Office’s Tarnished Badge Task Force has been the model for investigating law enforcement corruption around the country," said Douglas M. Korneski, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "The Tarnished Badge Task Force is composed of law enforcement officers from the Shelby County Sheriff’s Office, Memphis Police Department, and the FBI. The continued commitment to investigating these crimes by the Shelby County Sheriff’s Office and Memphis Police Department has led to the tremendous success of this task force and helped deter criminal behavior and restore public trust in law enforcement. Since its inception, investigating law enforcement corruption has been a top priority for all three agencies and continued focus resulted in this successful prosecution."
"We are thankful for the dedicated work of the Tarnished Badge Task Force that led to the arrest of Kenneth Hicks and other coconspirators. This case is just another reminder that no one is above the law. Additionally, we should never let the unlawful actions of one group of individuals diminish the extraordinary work being done daily by the committed men and women of law enforcement," said Assistant Chief Don Crowe.
"These critical arrests are examples of what we can accomplish when our local and federal law enforcement agencies work together on joint task force operations in order to remove these criminal elements from our streets of Shelby County," said Shelby County Sheriff Floyd Bonner, Jr. "I am proud of our law enforcement partners, and my deputies assigned to this task force, for their collaborations to investigate and make these arrests."
Sentencing is set for August 25, 2022, before United States District Judge John T. Fowlkes, Jr., where Hicks faces up to life imprisonment. The remaining co-conspirators have pled guilty and are awaiting sentencing. There is no parole in the federal system.
This case was investigated by the FBI Tarnished Badge Task Force, a national model for investigating law enforcement corruption, comprised of the Memphis Police Department, the Shelby County Sheriff’s Office and FBI team members.
Assistant United States Attorney David Pritchard prosecuted this case on behalf of the government.
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Major San Francisco Drug Trafficker Convicted of Possessing with Intent to Distribute 65 Pounds of MethamphetamineRead the Press Release
SAN FRANCISCO – Alejandro Alvarez was convicted of possession with intent to distribute methamphetamine by a federal jury, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon. The guilty verdict followed a four-day jury trial before the Honorable William H. Orrick, U.S. District Court Judge, in San Francisco.
Evidence at trial showed that Alvarez, 46, of San Francisco, was dealing tens of thousands of dollars’ worth of methamphetamine and heroin monthly at the time that San Francisco Police Department officers executed a search warrant at his residence and recovered about 65 pounds of methamphetamine. The methamphetamine was valued at more than $1.5 million when sold in retail quantities. Alvarez’s stash contained more than five million individual doses.
The trial evidence demonstrated that the investigation began when officers with the San Francisco Police Department learned that an individual who went by the name “Chewy” was selling heroin and other drugs. Eventually officers developed enough evidence to execute a search warrant on Alvarez’s apartment. They recovered over $46,000 in bulk cash, ledgers that detailed drug deals and pricing, several pounds of suspected heroin, some 65 pounds of methamphetamine, and other indicia of drug trafficking.
On February 20, 2020, a federal grand jury indicted Alvarez, charging his with one count of possession with intent to distribute 500 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii). Pursuant to the jury’s verdict, Alvarez was found guilty of the sole count in the indictment.
Judge Orrick scheduled Alvarez’s sentencing for July 14, 2022. Alvarez faces a maximum statutory penalty of life imprisonment and a fine of $10,000,000. However, any sentence will 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.
Assistant U.S. Attorneys Joseph Tartakovsky and Alexis James are prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by the San Francisco Police Department, United States Drug Enforcement Administration, and the U.S. Attorney’s Office.
Lyndonville Woman Sentenced for Selling Misbranded Pet MedicationsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Lisa Wheeler, 56, of Lyndonville, Vermont was sentenced by United States Chief Judge Geoffrey W. Crawford on April 19, 2022 to time served for selling misbranded pet medications which were not approved for use in the United States. Chief Judge Crawford also sentenced Wheeler to three months of probation during which she must complete 20 hours of community service at a humane society or other animal charity. The maximum penalty for this misdemeanor offense was one year imprisonment and a $100,000 fine.
Wheeler also agreed to forfeit a substantial amount of pet medications, which were seized from her residence pursuant to a search warrant executed in August 2020. As the government noted at sentencing, Wheeler fully accepted responsibility for the offense and cooperated with the investigation.
According to court records, in 2020, Wheeler received voluminous shipments of prescription pet products, including flea medications, from a United Kingdom company associated with Bestflea.com, Petbucket.com, and Pharma Group. These medications were unapproved versions of prescription pet drugs available in the United States. Wheeler received hundreds of bulk packages of these pet medications and repackaged them for shipping to customers within the United States. Wheeler received a commission from the owner of the British companies for each parcel she shipped on their behalf.
Acting Special Agent in Charge Ronne G. Malham, Food and Drug Administration Office of Criminal Investigations New York Field Office stated that “FDA’s responsibility to protect the public health includes ensuring that prescription drugs for animals are safe and effective and dispensed according to valid veterinary prescriptions. We will continue to pursue and bring to justice those who attempt to evade the laws designed to protect our companion animals.”
This case was investigated by the Food and Drug Administration (Office of Criminal Investigations) and the U.S. Postal Inspection Service. United States Attorney Nikolas P. Kerest commended the efforts of the FDA Office of Criminal Investigations and the U.S. Postal Inspection Service in the investigation of Wheeler.
The United States is represented by Assistant U.S. Attorney Joseph Perella. Wheeler is represented by Mary Nerino, Esq. of the Federal Public Defender’s Office in Burlington, Vermont.
Luzerne County Couple Charged with Drug Trafficking ConspiracyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerome Edward Sturdivant, age 39, and Alison Sawchak, age 39, both of Wilkes-Barre, Pennsylvania, were indicted on March 29, 2022, by a federal grand jury for participating in a drug trafficking conspiracy.
According to United States Attorney John C. Gurganus, the indictment alleges that Sturdivant and Sawchak conspired to distribute cocaine and methamphetamine from August to October 2020. The indictment further alleges that Sturdivant, who is a convicted felon, unlawfully possessed firearms and ammunition.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania Office of the Attorney General Bureau of Narcotics Investigation and Drug Control, and the Wilkes-Barre Police Department. Assistant United States Attorney Jeffery St John is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law for these offenses is 20 years’ 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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Lubbock Postal Contractors Sentenced to 7+ Years for Stealing MailRead the Press Release
Two Lubbock postal contractors have been sentenced to a combined seven years and 10 months in federal prison for possession of stolen mail, announced Acting U.S. Attorney Chad E. Meacham.
The investigation – which culminated in the recovery of more than 8,000 pieces of mail with face values in excess of $4 million – marked the largest ever seizure of stolen mail in Northern District of Texas history.
Joe Roy Rivas, III, 22, and Jessica Lynn Solomon, 35, were indicted in October 2021. Mr. Rivas pleaded guilty in December 2021 to conspiracy to possess stolen mail and he was sentenced earlier this month to 57 months in federal prison. Two weeks after Mr. Rivas entered his plea, Ms. Solomon pleaded guilty to the same charges; she was sentenced Thursday to 37 months in federal prison.
“The U.S. Postal Inspection Service takes any report of mail theft seriously and will conduct an aggressive investigation,” said Thomas Noyes, Postal Inspector in Charge of the Fort Worth Division. “An egregious element of this case was the discovery of these few contractors who chose to violate their position of trust. This action brought to bear a swift and comprehensive response by both Postal Inspectors and our law enforcement partners aimed at bringing the criminal activity to an end. We thank the U.S. Attorney’s Office in the Northern District of Texas for their commitment in seeking justice on behalf of those who were affected by the crimes this group committed. Postal Inspectors will not cease in their ongoing effort to safeguard the U.S. Postal Service, its customers and ensure public trust in the mail.”
According to plea papers, Mr. Rivas and Ms. Solomon were former co-workers at Cargo Force, Inc., a company that contracts with the United States Postal Service to load mail into and out of air containers destined for flights to and from the Lubbock International Airport.
The defendants admitted they began stealing mail at the start of their employment with Cargo Force, approximately two years before they were caught. During their shifts, they sifted through mail looking for items containing merchandise, cash, gift cards, checks, and money orders.
The 8,000 pieces of stolen mail law enforcement recovered from the Rivas and Solomon were post-marked within a four-day period. Law enforcement found the staggering heap of stolen mail stuffed into 55-gallon trash bags and stockpiled inside a residence the two shared in Slaton, Texas.
The investigation revealed that the conspiracy involved regular “washing” of checks – removing the name of one payee to replace it with another – and selling cell phones removed from mail handled by Cargo Force.
At their sentencing hearings, prosecutors advised that the mail was destined for 36 states within the contiguous United States, Washington, D.C., and the Virgin Islands.
Prosecutors highlighted some of the mail that had been kept from its proper recipients: a multitude of payments to entities such as mortgage bankers; over 40 pieces of mail related to federal court proceedings; more than 50 letters from local college admissions offices to applicants; and numerous greeting cards intended to brighten someone’s day. The addresses and addressors included churches, charitable organizations, prison ministries, local judicial and law enforcement entities, financial institutions, trust companies, banks, lenders, local school districts, hospitals, hospices, pharmaceutical companies, medical equipment companies, and funeral homes.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Texas Department of Public Safety and the Slaton Police Department. Assistant U.S. Attorneys Ann Howey and Jeff Haag prosecuted the case.
Local Santa Rosa Lima Cartel Cell Head Sentenced for Drug Crimes, Money LaunderingRead the Press Release
A local Dallas cell head who worked with the Santa Rosa Lima Drug Cartel and other Mexico-based drug trafficking organizations was sentenced Wednesday to more than 16 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Carlos Espinoza Juarez, an 33-year-old Mexican national, pleaded guilty in July 2020 to money laundering and conspiracy to possess with intent to distribute heroin. He was sentenced by U.S. District Judge Ed Kinkeade.
According to plea papers, Mr. Juarez admitted he conspired to traffic drugs.
On Feb. 8, 2015, he admitted, he directed codefendant Heriberto Talamantes-Ceballos to deliver approximately one ounce of heroin to a buyer in exchange for $880.00; about a month later, on March 12, he directed codefendant Edwin Contreras-Diaz to deliver approximately three ounces of heroin to a buyer in exchange for $2640.00. Both men did so. The defendant also admitted to sending approximately three kilograms of heroin to Dorchester, Massachusetts.
Mr. Juarez further admitted to orchestrating a series of other drug deliveries, spanning from Texas to South Carolina, over the course of at least four years.
He also admitted to using fake names to wire money to recipients in Guanajuato, Mexico, in an effort to launder the proceeds of his illegal drug dealing.
As part of his plea deal, Mr. Juarez agreed to forfeit more than $35,000, six firearms, and two vehicles, including a Chevy Tahoe and a GMC Sierra. A foreign citizen in the U.S. illegally, he will face deportation proceedings after serving his sentence.
Seven additional defendants have been convicted in this case:
- Edwin Contreras-Diaz, aka “Flaco” – pleaded guilty to possession with intent to distribute heroin
- Heriberto Talamantes-Ceballos – pleaded guilty to possession with intent to distribute heroin
- Marcos Fernando Valle – pleaded guilty to conspiracy to possess with intent to distribute cocaine
- Adrian Lopez Olalde – pleaded guilty to money laundering and was sentenced to 72 months in federal prison
- Omar Suarez-Garcia – pleaded guilty to conspiracy to possess with intent to distribute heroin
- Bianca Jeannette Martinez – pleaded guilty to conspiracy to possess with intent to distribute heroin
- John Paul Sanchez – pleaded guilty to conspiracy to possess with intent to distribute heroin
The Drug Enforcement Administration’s Dallas Field Division and the Texas Department of Public Safety conducted the investigation with the assistance of the Grand Prairie Police Department, Grapevine Police Department, Lancaster Police Department, Dallas Police Department, Haltom City Police Department, the DEA’s Boston Field Division, the 24th Judicial district Drug and Violent Crime Drug Task Force, Decatur County, TN, U.S. Customs and Border Patrol, the Will County Sheriff’s Office, Peotone, IL., the Illinois State Police, Columbia Police Department, Columbia, South Carolina and IRS - Criminal Investigations. The case was prosecuted by Assistant United States Attorney George Leal.
The case stemmed from an Organized Crime Drug Task Force (OCDETF) investigation led by the North Texas OCEDTF Strike Force. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
Local President of "We Build the Wall" Pleads Guilty to Federal ChargesRead the Press Release
PENSACOLA, FLORIDA – Brian G. Kolfage, of Miramar Beach, Florida, pled guilty today for crimes charged in the Northern District of Florida relating to the filing of his 2019 federal income taxes. The plea was announced by Jason R. Coody, United States Attorney for the Northern District of Florida today.
Kolfage entered a guilty plea to three federal charges related to filing false income tax returns for the tax year 2019. With this plea, Kolfage admitted, under oath, that between January 2019 and July 2020, he engaged in a scheme to defraud the United States in relation to his 2019 federal income tax returns. Kolfage admitted receiving hundreds of thousands of dollars from multiple organizations during 2019, including We Build the Wall, Inc., which were deposited into his personal bank account. Kolfage failed to report this income to the Internal Revenue Service. Upon learning of an investigation into his federal income taxes, Kolfage then filed amended tax returns for 2019 that were also false. These amended tax returns continued to falsely fail to report income deriving directly from We Build the Wall and indirectly from We Build the Wall after being routed through other organizations in order to obfuscate where the money came from.
Kolfage’s plea was entered in the District Court for the Southern District of New York along with a guilty plea to conspiracy to commit wire fraud charges filed by the United States Attorney’s Office for the Southern District of New York for fraud related to donors of “We Build the Wall.”
Sentencing in this case is currently set for September 6, 2022, at 1:00 p.m., at the United States Courthouse in the Southern District of New York before the Honorable United States District Judge Analisa Torres.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Office of Agricultural Law Enforcement of the Florida Department of Agriculture and Consumer Services. The case was prosecuted by Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Liverpool Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Dominic Zampini, age 26, of Liverpool, New York, pled guilty today to one count of receipt of child pornography and two counts of possession of child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.
Zampini, who remains detained pending his sentencing scheduled for August 24, 2022, faces at least 5 years’ and up to 60 years’ imprisonment on the charges. Following a sentence of imprisonment, Zampini will also be placed on a term of supervised release of between 5 years and life, and will be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his guilty plea, Zampini admitted that between October 2020 and December 2020, he knowingly received child pornography images over the internet from another individual he met through a mobile application, and that in September, 2021 he possessed images depicting child pornography on two cell phones.
This case is being investigated the New York State Police and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Liberian National Sentenced to 10 Years for $23 Million COVID-19 Relief FraudRead the Press Release
A Liberian national who orchestrated a fraudulent scheme to secure more than $23 million in forgivable Paycheck Protection Program (PPP) loans was sentenced Thursday afternoon to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Steven Jalloul, a 43-year-old tax consultant from the Dallas area, was first charged via criminal complaint in September 2020; he pleaded guilty on in October 2021 to a superseding information charging him with one count of engaging in monetary transactions using property derived from unlawful activity. He was sentenced by U.S. District Judge Jane J. Boyle.
“Mr. Jalloul callously exploited the Paycheck Protection Program, which was designed to keep struggling businesses afloat during the pandemic. He took money out of the hands of businesspeople who truly needed it,” said U.S. Attorney Chad E. Meacham. “The Justice Department will not stand for PPP fraud.”
According to plea papers, Mr. Jalloul admitted he defrauded lenders participating in the Paycheck Protection Program — a measure authorized by Congress in the early days of the pandemic to award forgivable loans to small business impacted by COVID-19 — while awaiting sentencing in a separate tax fraud case.
In court documents, he admitted that he submitted roughly 170 falsified PPP loan applications to lenders (including through a fintech company) seeking more than $23 million on behalf of over 160 clients of his tax preparation business, Royalty Tax & Financial Services LLC.
Mr. Jalloul admitted he inflated clients’ employee rosters and monthly payroll expenses in order to increase the amount of PPP funds for which their businesses would be eligible. He generally charged clients a 2 to 20 percent commission on the PPP loans they received and even listed his ex-wife as Royalty Tax’s authorized representative, without her consent, when seeking an inflated PPP loan for his own business.
In total, 97 false PPP loan applications were ultimately approved, and Mr. Jalloul’s clients were awarded more than $12 million in PPP money. Those clients paid him at least $972,114 in fees. Mr. Jalloul also admitted to submitting a fraudulent PPP loan application on behalf of his tax preparer company and received $163,500 in PPP funds.
Mr. Jalloul was already behind bars at FCI-Seagoville, having pleaded guilty to tax fraud in the separate case in January 2020; in that case, he was sentenced to six years in federal prison. Judge Boyle ruled that he will serve his sentence in the PPP case consecutive to his sentence in the tax fraud case.
The Dallas Field Offices of the Federal Deposit Insurance Corporation's Office of Inspector General and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Fabio Leonardi and Marty Basu are prosecuting the case. Assistant U.S. Attorney Dimitri Rocha is handling the asset-forfeiture component of the case.
The Paycheck Protection Program was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP initially provided for up to $349 billion in forgivable loans to small businesses for payroll costs and certain other expenses, including rent; in April 2020, Congress authorized more than $300 billion in additional PPP funding. The PPP allows qualifying small businesses to receive loans with a maturity of two years and an interest rate of 1 percent. In addition, the PPP allows both the interest and principal on the loans to be forgiven if the business spends the money on qualifying expenses within a designated period of time
Las Vegas Man Sentenced to 15 Years in Federal Prison for Meth TraffickingRead the Press Release
United States Attorney Dennis R. Holmes announced that a Las Vegas, Nevada, man convicted of Conspiracy to Distribute a Controlled Substance - Methamphetamine was sentenced on March 18, 2022, by U.S. District Judge Karen E. Schreier.
Jesse Stewart, age 47, was sentenced to 15 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Stewart was indicted for Conspiracy to Distribute a Controlled Substance – Methamphetamine by a federal grand jury in January 2020. He pleaded guilty on December 10, 2021.
In September 2019, law enforcement became aware of a group of people distributing methamphetamine in the Rapid City, South Dakota area, led by Edward Martin. Through the investigation, law enforcement confirmed a methamphetamine source for the conspiracy in Las Vegas, Nevada. Between the summer of 2019 and December 2019, at least five to 15 kilograms of methamphetamine was sent to Rapid City. Stewart sold the methamphetamine in Rapid City and arranged for Martin to come and expand those efforts. Co-conspirators in Rapid City and Las Vegas tracked mailed packages of methamphetamine and also received money wire transfers paying for the shipped methamphetamine. On December 19, 2019, law enforcement searched Martin’s hotel room and located Stewart, eight ounces of methamphetamine, a firearm, $5,066 cash, and other items indicative of drug distribution.
Edward Martin, Sara Skinner, Carmen Dillon, Keeler Stands, Melanie Vance, Tyler Olson, Christopher James, and Kirbesha Bailey have all previously been sentenced for their roles in this same conspiracy.
This case was investigated by the Drug Enforcement Agency, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspector, and the Unified Narcotics Enforcement Team (UNET). UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorneys Kathryn N. Rich and Eric Kelderman prosecuted the case.
Stewart was immediately returned to the custody of the U.S. Marshals Service.
Las Vegas Man Charged with Wire Fraud Related to Telemedicine SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sergey Duman, age 45, of Las Vegas, Nevada, was charged in a criminal information with wire fraud.
According to United States Attorney John C. Gurganus, the information alleges that between January 2020 and June 2020, Duman participated in a scheme to defraud private health insurance companies, the United States, and the Commonwealth of Pennsylvania. After Duman purchased Cedar Care Pharmacy in Allentown, Pennsylvania, in January 2020, a telemedicine company regularly submitted prescriptions to the pharmacy that had been written without the knowledge of the listed patient. Cedar Care Pharmacy then fraudulently submitted private insurance and Medicaid claims for the prescriptions even though the pharmacy never provided the prescribed medications to patients. The total amount of the fraudulent claims exceeds $4.8 million.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General. Assistant U.S. Attorneys Carlo D. Marchioli and Ravi Romel Sharma are prosecuting the case.
The maximum penalty under federal law for this offense is 20 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lantry Man Sentenced on Multiple ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Lantry, South Dakota, man convicted of Sexual Exploitation of a Child, Abusive Sexual Contact of a Child, and Sexual Abuse of a Minor, was sentenced on April 18, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Mato Dyda, age 21, was sentenced to 240 months in federal prison, followed by five years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $893.80.
Dyda was indicted by a federal grand jury on July 14, 2021. He pled guilty on January 13, 2022.
The conviction stems from incidences on June 26, 2020, and November 8, 2020, in Ziebach County, South Dakota, when Dyda engaged in and attempted to engage in sexual acts with two underage victims. Dyda also made videos of this sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation, Cheyenne River Sioux Tribe Law Enforcement Services, and the Ziebach County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
Dyda was immediately turned over to the custody of the U.S. Marshals Service.
Kentwood Man Pleads Guilty to Defrauding Employer and Filing False TaxesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on April 19, 2022 MICHAEL J. GOLL, age 46, of Kentwood, pleaded guilty to wire fraud and filing false federal tax returns. GOLL entered his guilty plea before U.S. District Judge Wendy B. Vitter. Judge Vitter scheduled GOLL’s sentencing for July 26, 2022, at 1:30 p.m.
According to court documents, GOLL was the New Orleans branch manager of Company A, which provides material handling equipment to businesses. From January 2013 through September 2017, GOLL defrauded Company A of approximately $549,667.39. GOLL is alleged to have executed the scheme by sending Company A false invoices from shell companies that he had created, when in fact the work was either done by Company A’s own employees or the work was not done at all. As part of the scheme, GOLL had a contractor who did personal work for GOLL inflate his bills to Company A to cover the work done for GOLL. GOLL justified the overbilling by telling the contractor that he planned on buying Company A in the future, although GOLL never did purchase Company A, and GOLL never told his employer about the overbilling.
Additionally, GOLL pleaded guilty to filing false federal tax returns. According to court documents, GOLL filed false personal income tax returns for tax years 2014 through and including 2017 in which he failed to accurately report his income, including the money that he embezzled from Company A. Moreover, GOLL also counseled three other people, all of whom personally knew GOLL, to file false tax returns. GOLL told each of them, falsely, that he had graduated summa cum laude from the University of New Orleans with a Ph.D. in business administration, a degree that the University of New Orleans does not actually offer. GOLL persuaded them to become business partners in a fake restaurant enterprise, which they believed was a true business opportunity. GOLL then instructed them to file tax returns claiming business losses that were nonexistent. GOLL had them each pay to him a portion of the false tax refund. Through his own false tax returns and those of the three others that he aided, GOLL caused a tax loss to the United States of $188,694.00.
As to the charge of wire fraud, GOLL may receive up to a maximum of 20 years in prison, up to three years of supervised release, and a fine of up to $250,000.00 or twice the gross gain or twice the gross loss to any victims. As to the charge of filing false tax returns, GOLL may receive up to 3 years in prison, up to one year of supervised release, and a fine of up to $100,000.00. Each count also carries a $100 mandatory special assessment fee. As part of his plea, GOLL agreed to make full restitution to Company A and to the IRS.
U.S. Attorney Evans praised the work of the U.S. Secret Service and Internal Revenue Service Criminal Investigation, which investigated this case jointly. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
KC Woman Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, woman pleaded guilty in federal court today to her role in a conspiracy to distribute large quantities of methamphetamine.
Sonia Ornelas, 44, pleaded guilty before U.S. District Judge Howard F. Sachs to participating in a conspiracy to distribute methamphetamine from Oct. 1, 2018, to Aug. 7, 2019.
A confidential source purchased 500.1 grams of methamphetamine from Ornelas for $3,500 during a controlled purchase on June 25, 2019.
On June 28, 2019, law enforcement officers executed a search warrant at Ornelas’s residence. Detectives found approximately 112 grams of methamphetamine, 11 firearms, two cell phones, a video surveillance recorder, drug paraphernalia, and two drug ledgers. Detectives also found $27,248 in cash, which Ornelas must forfeit to the government ($2,460 of this was from the controlled purchase on June 25, 2019).
Ornelas told investigators she paid $25,000 twice a month since October 2018 for methamphetamine (approximately $450,000 over nine months). At a price of $7,000 per kilogram, this represents at least 65 kilograms of methamphetamine. A confidential source identified Ornelas as a source of methamphetamine from March to August 2019. During this time, the confidential source purchased one or two kilograms of methamphetamine from Ornelas twice a week, for a total of 44 kilograms of methamphetamine, and paid $7,000 per kilogram. The confidential source also traded several firearms for methamphetamine.
Ornelas is the second defendant to plead guilty in this case. Co-defendant Adam L. Ragsdale, 45, of Independence, Mo., was sentenced on Oct. 14, 2021, to 10 years and one month in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
Under federal statutes, Ornelas is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Jackson County Drug Task Force, the Blue Springs, Mo., Police Department, the Independence, Mo., Police Department, and the Kansas City, Mo., Police Department.
Justice Department and Baltimore Police Department Provide Progress Report Five Years After Consent DecreeRead the Press Release
The Justice Department today joined the City of Baltimore, the Baltimore Police Department (BPD) and the Court-appointed independent monitoring team to report on the City’s and BPD’s progress toward compliance with the terms of the consent decree designed to ensure effective and constitutional policing in the City.
At today’s public hearing before U.S District Court Chief Judge James K. Bredar, the Justice Department recognized the significant accomplishments that have been achieved including:
- adoption of a problem-oriented approach to policing, prioritizing public safety, crime reduction and lawful patrol and enforcement efforts;
- adoption of a wide range of new policies covering use of force, transport, impartial policing and stops, searches and arrests, that provide clear guidance to officers to ensure effective and constitutional policing;
- revitalization of the training academy, including upgraded facilities, expanded staff and revamped in-service training curricula, including new trainings developed to educate officers on the revised policies;
- revitalization of the internal affairs unit, including expanded staff and new procedures and training to ensure fair and thorough investigations of alleged misconduct and consistent discipline when misconduct takes place;
- creation of auditing procedures to ensure proper supervisory review of use-of-force incidents, scrutiny of arrests that do not result in charges filed against the arrestee, and the use of safe practices in the transportation of individuals in custody; and
- procurement of a new records management system to ensure accurate and consistent incident reporting and case management throughout BPD.
The Justice Department noted that to fully comply with the decree, BPD must show that its officers are consistently and effectively following the new policies and trainings and being held accountable if they do not. In the coming months, the independent monitoring team will conduct detailed assessments of BPD’s compliance with the decree’s requirements regarding the use of force, arrests and sexual assault investigations. These assessments will provide a roadmap for BPD’s continuing efforts to achieve full compliance in these areas.
“The problems at BPD were many years in the making and we are pleased with the progress that has been made since the consent decree was put in place,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While much work remains, we believe that a strong foundation has been laid to achieve effective and constitutional policing in Baltimore. The citizens of Baltimore deserve nothing less.”
The Justice Department initiated an investigation of BPD in May 2015 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section, and findings were announced in August 2016. The consent decree was approved by the Court in April 2017.
The findings report and consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt. Additional information about implementation of the consent decree is also available on the BPD website at www.baltimorepolice.org and the monitoring team’s website at www.bpdmonitor.com. The department welcomes comments or concerns from the community via email at [email protected].
View the consent decree here.
View the consent decree fact sheet here.
View the findings report here.
View the findings summary here.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care-Related COVID-19 FraudRead the Press Release
NOTE: Criminal complaint against Nisim Davydov has been dismissed. Link to dismissal order is at end of press release.
NEWARK, N.J. –The Department of Justice announced criminal charges against 21 defendants in nine federal districts across the United States for their alleged participation in various health care related fraud schemes that exploited the COVID-19 pandemic. These cases allegedly resulted in over $149 million in COVID-19-related false billings to federal programs and theft from federally-funded pandemic assistance programs. In connection with the enforcement action, the department seized over $8 million in cash and other fraud proceeds.
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said.
“Billions of dollars have been spent by the federal government to help individuals and their companies with the economic impact of the COVID-19 epidemic,” U.S. Attorney Philip R. Sellinger, District of New Jersey, said. “Unfortunately, unscrupulous people have stolen millions of dollars through a variety of schemes. We will continue to bring cases to fight this kind of fraud.”
“This COVID-19 health care fraud enforcement action involves extraordinary efforts to prosecute some of the largest and most wide-ranging pandemic frauds detected to date,” Director for COVID-19 Fraud Enforcement Kevin Chambers said.
The April 20, 2022, announcement builds on the success of the May 2021 COVID-19 Enforcement Action and involves the prosecution of various COVID-19 health care fraud schemes.
In the District of New Jersey:
- Abid Syed, Taquir Din, Tamer Mohamed, Abdul Rauf, Tauquir Khan, and Nisim Davydov, all of New Jersey, are charged by criminal complaint with conspiracy to violate the Federal Anti-Kickback Statute for their roles in an alleged scheme to defraud Medicare by paying illegal kickbacks and bribes of over $250,000 for laboratory tests for COVID-19 pathogen tests. Syed and Din owned and controlled Metpath, a clinical laboratory in Parsippany, New Jersey, which performed and billed Medicare for COVID-19 diagnostic testing. Khan, Mohamed, and Davydov were marketers who supplied thousands of COVID-19 diagnostic tests to Metpath and who received kickbacks and bribes from Syed and Din for doing so. The complaint alleges that Metpath tried to conceal its kickback payments to the marketers through shell companies set up and controlled by Rauf. The case is being prosecuted by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey.
- Lisa Hammell, 39, of Turnersville, New Jersey, an employee of the U.S. Postal Service, was charged by indictment with an alleged conspiracy to defraud the United States and fraud in connection with identification documents for her role in creating and distributing to others fraudulent COVID-19 vaccination record cards. Beginning in or around March 2021, Hammell allegedly began selling fraudulent COVID-19 vaccination record cards that she created by designing a COVID-19 vaccination record card and printing dozens of fraudulent cards while working at a post office. Hammell allegedly sold at least 400 fraudulent COVID-19 vaccination cards to unvaccinated people. As alleged in the indictment, the goal of the conspiracy was to undermine the Centers for Disease Control and Prevention (CDC)’s function of administering the COVID-19 vaccination program and ensuring that genuine COVID-19 vaccination cards containing accurate information are distributed to vaccine recipients only by authorized providers. The case is being prosecuted by Trial Attorneys Kelly M. Lyons and Darren C. Halverson of the Newark Strike Force.
The enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant Chief Justin Woodard of the Health Care Fraud Unit’s Gulf Coast Strike Force in the Criminal Division’s Fraud Section. The Fraud Section’s National Rapid Response Strike Force and the Health Care Fraud Unit’s Strike Forces (SF) in Brooklyn, the Gulf Coast, Miami, Los Angeles, and Newark, as well as the U.S. Attorneys’ Offices for the District of Maryland, District of New Jersey, District of Utah, Northern District of California, and Western District of Tennessee are prosecuting these cases. Descriptions of each case involved in this enforcement action are available on the department’s website at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit/case-summaries.
In addition to the FBI, HHS-OIG, and CPI/CMS, the U.S. Postal Inspection Service; Department of Defense Office of Inspector General; Department of the Interior Office of the Inspector General; Department of Labor Office of the Inspector General; Food and Drug Administration Office of the Inspector General; Homeland Security Investigations; U.S. Department of Veterans Affairs Office of the Inspector General; and other federal and local law enforcement agencies participated in the law enforcement action.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the CMS, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
davydovdismissal.pdf