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Wednesday 20 April 2022
Upper Marlboro Man Sentenced to Eight Years in Federal Prison for Heroin and Cocaine Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Charles Benjamin Stewart, Jr., age 49, of Upper Marlboro, Maryland, on April 18, 2022, to eight years in federal prison, followed by five years of supervised release for conspiracy to distribute heroin and cocaine; for illegally transporting a firearm obtained out of state; and for possession with intent to distribute heroin and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Calvert County Sheriff Mike Evans; St. Mary’s County Sheriff Timothy K. Cameron; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, from at least June 2016 through July 2017, Stewart conspired with Patrick Nathan Broxton, Stephen Eugene Clark, Jr., Stephen Michael Kinnison, Robert Eugene Davidson, and others to distribute heroin and cocaine in Calvert and Prince George’s County. Stewart obtained heroin from Broxton and then sold smaller quantities of heroin to Kinnison, Davidson, and others. Stewart also supplied cocaine to Kinnison and others for further distribution.
During the course of the conspiracy, Stewart regularly communicated with Broxton, Clark, Kinnison, Davidson, and others, both in person and via phone calls and text messaging, to arrange narcotics transactions. Between September 8, 2016 and February 10, 2017 law enforcement arranged controlled purchases of heroin from Stewart on four occasions, totaling 23 grams. Law enforcement also obtained court-authorized wiretaps for the cellular telephones used by Stewart, Broxton, Clark, Kinnison, and Davidson.
For example, between April 11 and 13, 2017, Stewart and Broxton communicated by telephone to arrange a heroin transaction at a convenience store in Anne Arundel County, Maryland. Law enforcement conducted surveillance and saw Broxton meet Stewart at the convenience store, where Stewart bought 150 grams of heroin. Immediately following the meeting, Stewart returned to his residence and contacted one of his customers to see if the customer needed more heroin.
As detailed in his plea agreement, on three occasions between April 15 and May 6, 2017, Stewart purchased a total of more than 210 grams of cocaine from Clark. For example, on April 24, 2017, Stewart arranged by phone to purchase 4.5 ounces of cocaine from Clark for $4,000. Later that day, law enforcement surveilled the meeting at a fast-food restaurant in Prince George’s County, where Stewart and Clark completed the transaction.
On July 6, 2017, law enforcement executed search warrants at locations associated with the drug distribution conspiracy, including Stewart’s two residences in Upper Marlboro. From Stewart’s residences, law enforcement recovered, among other things, a total of approximately 138 grams of heroin; approximately three grams of cocaine, crack cocaine and procaine (a local anesthetic drug); a prescription pill bottle containing approximately 89 Oxycodone pills; approximately three grams of a white powdery substance consisting of cocaine, heroin, caffeine, and diphenhydramine (an antihistamine); approximately 15 grams of cocaine; a total of $40,235 in cash; and drug paraphernalia, including an electric grinder and digital scale, both with heroin and cocaine residue; two bottles of Mannitol powder (a cutting agent); and empty zip-lock baggies. Stewart admitted that he possessed the controlled substances, baggies, and grinder as part of his drug trafficking business and intended to distribute the drugs.
In addition, law enforcement officers also located and seized a .40 caliber semi-automatic pistol loaded with nine rounds of ammunition and a spare magazine loaded with nine rounds of .40 caliber ammunition; a 9mm luger caliber semi-automatic pistol; a 12-gauge pump-action firearm; nine rounds of 9mm ammunition; approximately 21 rounds of .40 caliber ammunition; seven 12-gauge shotgun shells; and approximately $16,687 in cash. Stewart admitted that he possessed the firearms and ammunition in furtherance of his drug trafficking business. Further investigation revealed that the 12-gauge pump-action firearm and the .40 caliber semi-automatic pistol were both stolen. Stewart also admitted that, between January 24, 2014 and July 6, 2017, he caused the transportation of a Smith and Wesson model SD9VE, from outside Maryland to his residence, while he was on probation.
Co-defendants Patrick Nathan Broxton, age 50, of Ellicott City, Maryland; Stephen Eugene Clark, Jr., age 57, of Laurel, Maryland; Stephen Michael Kinnison, age 47, of Lusby, Maryland; and Robert Eugene Davidson, age 32, of Sunderland, Maryland, previously pleaded guilty to their roles in the conspiracy and were sentenced to between 19 months and 10 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, the ATF, the Calvert County Sheriff’s Office, the St. Mary’s County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Jared Engelking and Assistant U.S. Attorney Adam K. Ake, 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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United States District Court Appoints Randy S. Grossman to Serve as U.S. AttorneyRead the Press Release
Media Relations Director Kelly Thornton (619) 546-9726 or [email protected]
NEWS RELEASE SUMMARY – April 20, 2022
SAN DIEGO – The U.S. District Court has appointed Randy S. Grossman to remain as the U.S. Attorney for the Southern District of California.
“It is a tremendous honor and privilege to serve as the U.S. Attorney,” Grossman said. “I am grateful to the district judges for appointing me to serve in this special role, and I’m proud to work beside members of this talented office and our law enforcement community to protect our district and seek justice on behalf of the United States”
Grossman, who previously served as the First Assistant U.S. Attorney, began serving as Acting U.S. Attorney upon the resignation of former U.S. Attorney Robert Brewer on February 28, 2021. Attorney General Merrick Garland then appointed Grossman to be the interim U.S. Attorney, effective December 26, 2021, and Grossman was to serve in that role for 120 days. The United States District Judges in the Southern District of California have voted to appoint Grossman as U.S. Attorney until the appointment and qualification of a successor to the Southern District of California as provided by law. An order signed by the district court judges was entered on April 19, 2022, and Grossman’s appointment under that order becomes effective on April 25, 2022.
The Southern District of California encompasses San Diego and Imperial Counties. The U.S. Attorney serves as the chief federal law enforcement official for the district.
Grossman joined the U.S. Attorney’s Office in March 2020. He served in the Border Enforcement Section and the Major Frauds & Public Corruption Section. He was selected to become First Assistant U.S. Attorney in September 2020.
Grossman began his legal career as a Deputy District Attorney for Ventura County and then San Diego County. During his more than eight years as a state prosecutor, Grossman tried more than 70 cases, including homicides and other crimes of violence. Grossman also worked in private practice as a partner at two international law firms. His practice areas included complex civil litigation, white collar criminal defense, corporate internal investigations and pro bono representation of refugees seeking asylum.
U.S. Attorney Sellinger Announces Launch of Anti-Hate Crime Initiative in New JerseyRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today his office’s participation in a first of its kind, anti-hate crime outreach program entitled United Against Hate, which seeks to directly connect federal, state, and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division joined U.S. Attorney Sellinger, Acting New Jersey Attorney General Matthew J. Platkin, and FBI Acting Special Agent in Charge Terence Reilly to announce their federal and state partnership on this new initiative. After they spoke to an audience of community leaders, civil rights advocates, and community members, subject matter experts from their offices engaged in a presentation and direct discussions with community leaders and advocates about taking steps to identify, report, and prevent hate crimes and incidents.
“Hate crimes and discrimination are antithetical to the core principles underlying our democracy,” U.S. Attorney Sellinger said. “No one should ever be subject to acts of discrimination or hate because of where they are from, what they look like, whom they love, or how they worship. In response to a dramatic increase in hate crimes and hate incidents, we are launching the United Against Hate Initiative in New Jersey. Combatting hate crimes, hate incidents, and discrimination is core to our mission, and through dynamic outreach and prevention efforts, we are eager to take steps to combat hate beyond prosecution.”
“The U.S. Department of Justice continues to marshal all resources at its disposal to hold people who engage in unlawful, bias-motivated acts of hate accountable,” Assistant Attorney General Clarke of the Justice Department’s Civil Rights Division said. “Through United Against Hate, we are bringing together the Justice Department, local law enforcement, and community leaders to strengthen our overall efforts to combat hate crimes and prevent hate incidents. Our communities, schools, workplaces and homes are all safer when we stand unified in the fight against hate.”
“The ripple effect of hate crimes is felt hundreds, even thousands of miles away,” FBI Acting Special Agent in Charge Reilly said. “People who identify with those victims see themselves and wonder ‘will it happen here?’ and ‘Will I be next?’ The Constitution of the United States grants us many freedoms. When any one of those freedoms – or any other constitutional right – is threatened or violated, we have to respond. And when I say ‘we,’ I’m not speaking just as a member of the FBI. I’m speaking as a member of the community. Because if we don’t respond, we risk the erosion of our very identity as a nation. That's why the FBI embarked on a hate crimes awareness campaign last year. We want people to call us if they have witnessed or been subjected to a hate crime.”
“The numbers are clear. Hate and bias are at an all-time high across our nation and in New Jersey,” Acting Attorney General Platkin said. “One of the strongest tools we have at our disposal is the collaboration between government and community stakeholders. That is why I am proud to stand shoulder to shoulder with federal and state partners who share the same commitment and urgency to stem the tide of hate.”
The U.S. Attorney’s Office for the District of New Jersey was chosen as one of three districts, out of 94 districts in the nation, to advance the United Against Hate outreach initiative. The U.S. Attorney’s Office plans to engage with communities across New Jersey to deepen connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.
Last month, U.S. Attorney Sellinger announced the creation of a Civil Rights Division within the U.S. Attorney’s Office. This new division, which enforces both civil and criminal civil rights laws, will engage with local community members, advocacy groups, and other federal and state agencies to protect civil rights. The division will lead the U.S. Attorney’s Office’s efforts in implementing the United Against Hate initiative.
Members of the public may report possible civil rights violations through the https://www.justice.gov/usao-nj/civil-rights-enforcement or may call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
U.S. Attorney Dena J. King Announces New Civil Rights TeamRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King announced today the formation of a new Civil Rights Team within the U.S. Attorney’s Office, which will focus on prioritizing the enforcement of federal civil and criminal civil rights laws across Western North Carolina and enhance the Office’s presence in the community through increased education and community outreach efforts.
“Our role as federal prosecutors is to ensure that equal protection under the law is a reality for all people living in the Western District of North Carolina,” said U.S. Attorney King. “The Civil Rights Team was established to prioritize the investigation of potential violations of civil rights statutes, ensure that allegations of wrongdoing are thoroughly investigated, and bring criminal charges and civil enforcement actions when warranted. Communities thrive only when fairness and equality are a reality for all people, and everyone can have equal opportunities, live free from hate, exercise the right to vote without fear, have access to equal justice, and enjoy all the protections guaranteed by federal law. When those fundamental principles are threatened or violated, it is our duty to act.”
The Civil Rights Team comprises federal prosecutors and staff from the Office’s Criminal and Civil Divisions in Charlotte and in Asheville. U.S. Attorney King has appointed a Criminal Civil Rights Coordinator to lead the Team’s efforts in investigating and prosecuting criminal civil rights violations, including hate crimes, color of law violations, and human trafficking cases. U.S. Attorney King also appointed a Civil Civil Rights Coordinator, who is tasked with prioritizing civil enforcement actions related to discrimination in housing, lending, employment, and education and the protection of voting rights and disability rights or access, among other areas. The team will continue to foster a strong relationship with the Justice Department’s Civil Rights Division and coordinate with other Department of Justice components and federal agencies as needed.
In addition to enforcement efforts, the Civil Rights Team will enhance the District’s multi-prong approach to advancing the protection of civil rights by focusing on public awareness and increasing the Office’s presence in the community through engagement, to encourage reporting of potential civil rights violations to the appropriate offices, agencies or components. The Team will also enhance its prevention efforts by working with state and local agencies, law enforcement, community groups, advocates, stakeholders and public and private entities to conduct proactive training to educate stakeholders on their rights and obligations under the law.
“Putting the enforcement of civil rights at the forefront of our priorities brings us a step closer to our nation’s founding ideals of equal justice and equal opportunity for everyone,” said U.S. Attorney King. “I’m looking forward to the work of our Civil Rights Team in this important area of the law and fulfilling the Justice Department’s responsibility of ensuring equal protection for all.”
Two More Defendants Sentenced for Conspiring to Stage Automobile Accidents to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that CHANDRIKA BROWN (“BROWN”), age 31, and AISHA THOMPSON (“THOMPSON"), age 44, both of New Orleans, Louisiana, were sentenced today for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to documents filed in federal court, BROWN, along with her co-defendants, Doniesha Gibson (Gibson), of New Orleans, Louisiana; and Ishais Price (Price), of New Orleans, and a co-defendant driver conspired to commit mail fraud in connection with a staged accident with a co-defendant driver on October 15, 2015. THOMPSON, along with her co-defendants, Dewayne Coleman, Erica Lee Thompson (“Erica Lee”), Donisha Lee, Passenger A, and another individual, conspired to commit mail fraud in connection with a staged accident with the same co-defendant driver, occurring on September 6, 2017. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-six (36).
BROWN claimed that on October 15, 2015, she was a passenger in a 2014 Dodge Avenger owned and driven by Gibson that was hit by a Hotard bus while traveling on the I-10 near the flyover of the I-510. Also in the vehicle was defendant Price. In truth, a co-defendant asked Gibson to recruit Brown and Price to ride along as passengers and he then sought out a commercial vehicle to intentionally hit. After the staged accident, the co-defendant driver switched seats with Gibson, and they called the N.O.P.D. Gibson, along with the passengers, falsely stated that the Hotard bus illegally changed lanes and caused the accident. Thereafter, BROWN, Gibson, Price, and the co-defendant driver each retained counsel and made demands against Hotard’s owner and insurer for personal injury damages. As a result of the claims, the insurer utilized the U.S. mails to send the settlement drafts to BROWN, Gibson, Price, and the co-defendant driver’s counsel. The total settlement for the Hotard bus accident was approximately $677,500.
Similarly, THOMPSON falsely claimed that on September 6, 2017, on the I-10 near the Almonaster exit, she was a passenger in co-defendant Erica Lee’s 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. After the staged accident, the driver exited the RAV4 and told Erica Lee to get behind the wheel of the RAV4 to make it appear that Erica Lee was driving the vehicle at the time of the staged accident. The defendants contacted the NOPD and falsely claimed that Erica Lee was the driver at the time of the collision. Passenger A falsely claimed to the NOPD that she was THOMPSON. Approximately one or two days after the staged accident, Coleman, Donisha Lee, Erica Lee, THOMPSON, and another individual went to an attorney’s office for the purpose of collecting money from the insurance and trucking company. THOMPSON and her co-defendants sought medical treatment from doctors and healthcare providers. THOMPSON was treated despite not being in the RAV4 at the time of the staged accident. THOMPSON retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000. On March 26, 2019, Coleman, Donisha Lee, and another individual each provided false testimony in depositions taken in conjunction with the Thompson Lawsuit. On April 9, 2019, THOMPSON provided false testimony in a deposition taken in conjunction with the Thompson Lawsuit. In these depositions, THOMPSON and her co-defendants lied about the September 6, 2017 accident including, but not limited to, who was driving the RAV4 and the extent of their injuries.
United States District Judge Sarah S. Vance sentenced BROWN to 3 years’ probation, 100 hours community service, restitution in the amount of $121,076.75, and a $100.00 special assessment fee. and THOMPSON to 18 months incarceration, followed by 3 years of supervised release, 100 hours of community service, restitution in the amount of $677,500.00, and a $100.00 special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
Two Defendants Sentenced on Child Pornography ChargesRead the Press Release
SHREVEPORT, La. – Two men from the Shreveport/Bossier City area have been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. in separate cases on child pornography charges, United States Attorney Brandon B. Brown announced.
Daniel Robert Bissell, 55, of Shreveport, was sentenced to 172 months (14 years, 4 months) in prison, followed by 5 years of supervised release for receipt of child pornography. Bissell was also ordered to pay restitution in the amount of $33,000 to victims in the case.
Bissell pleaded guilty on December 6, 2021 to receipt of child pornography as the result of an investigation by the Special Victims Unit with the Louisiana State Police and agents with the Federal Bureau of Investigation (FBI). Investigators located a suspect IP address which was sharing numerous files of child pornography and obtained information from a cable provider identifying the customer to be Bissell. On July 30, 2020, law enforcement agents executed a search warrant at Bissell’s residence and found him at the home. He admitted to using software to download to his computer and share files containing child sex abuse material. A forensic examination of Bissell’s computer hard drives revealed that he had approximately 365,523 images and 8,520 videos of child pornography, which included images of prepubescent minors who had not reached the age of 12 and of minors being bound with rope/straps around their ankles, wrists, and necks. The images and videos specifically depicted children under 12 years of age being sexually exploited.
The case was investigated by the FBI, Louisiana State Police, and the Bossier City Marshal’s Office, and was prosecuted by Assistant U.S. Attorney Tennille Gilreath.
In a separate case, Johnny Lee Henderson, Jr., 45, of Bossier City, Louisiana, was sentenced to 188 months (15 years, 8 months) in prison, followed by 5 years of supervised release. Henderson pleaded guilty on December 13, 2021 to one count of enticement of a minor to engage in sexual activity.
In March 2020, the mother of a 12-year-old female issued a complaint at the local police department in Kansas where the victim lived alleging that her minor daughter had been communicating with an adult male from Shreveport on social media and a cell phone. The mother claimed that her minor daughter and the adult male had exchanged sexually explicit video clips of each other and engaged in sexually explicit video chats. Detectives with the police department interviewed the minor daughter and she confirmed her mother’s allegations. The minor admitted that from January to March of 2020, she had been communicating with the adult male named “Chuck” Henderson. The communications included social media chat messages, phone conversations, text messages and video chats. The minor told detectives that when she and “Chuck” began communicating, she told him that she was 12 years old.
Detectives obtained search warrants for the social media accounts for “Chuck” and the minor female and examined phone records and logs. They discovered evidence of numerous sexually explicit video clips that were sent to “Chuck” as well as messages from him encouraging and enticing the minor female to produce and send them to him. Law enforcement agents with the Federal Bureau of Investigation (FBI) were able to determine that the phone number and social media accounts belonged to Henderson. The minor victim positively identified Henderson’s picture from his Facebook profile and his voice as the person she knew as “Chuck.” At the time of the offense, Henderson was a registered sex offender in Louisiana as the result of a conviction in 2006 for Sexual Molestation of a Juvenile.
The case was investigated by the FBI and Baldwin City Police Department and was prosecuted by Assistant U.S. Attorney Earl M. Campbell.
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Two Defendants Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – LEON HENRY, age 39, of Atlanta, Georgia, and JABAR GIBSON, age 36, of New Orleans, Louisiana, were sentenced on April 19, 2022 before the Honorable Jay C. Zainey on charges of violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, HENRY and GIBSON conspired to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin and a quantity of a mixture or substance containing a detectable amount of cocaine. HENRY admitted to dispatching two couriers on trips between Baton Rouge and Houston with kilograms of heroin and cocaine.
Judge Zainey sentenced HENRY to 225 months and GIBSON to 188 months, respectively, in the federal Bureau of Prisons. Each also received three years of supervised release and was ordered to pay a $100 mandatory special assessment fee.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
Two Clearfield County Men Plead Guilty in Operation Return to Sender Meth CaseRead the Press Release
PITTSBURGH, PA – Two residents of Penfield, Pennsylvania each pleaded guilty in federal court to violation federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Terry Kelly, age 48, and Jason Whitaker, age 60, each pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine before United States District Judge Christy Criswell Wiegand. Kelly and Whitaker were two of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on April 21, 2021, investigators received information that couriers were transporting a large amount of methamphetamine from Houston, Texas to Clearfield County, Pennsylvania. Investigators obtained a search warrant and seized over ten kilograms of pure methamphetamine from a truck parked in the parking lot of the Red Roof Inn located in Clearfield County. Investigators determined that the methamphetamine was destined for a residence shared by Kelly and Whitaker.
Judge Wiegand scheduled sentencing for Whitaker on August 25, 2022, at 9:30 a.m. and Kelly on August 25, 2022, at 1:00 p.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that both defendants remain out on bond.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tulsa Man Convicted on Coercion and Enticement and Child Pornography ChargesRead the Press Release
A federal jury convicted a 28-year-old Tulsa man Wednesday for enticing a girl between the ages of 15 and 17 years old and for possessing sexually explicit pictures and videos of the girl, announced U.S. Attorney Clint Johnson.
Alexander Nicholaus Sweet was found guilty of coercion and enticement of a minor (count 1); production of child pornography (counts 2,5,6,7); receipt of child pornography (count 3); and possession of child pornography (count 4).
“Alexander Sweet targeted and groomed a vulnerable teenager struggling with the loss of two loved ones and a difficult childhood. This week, she showed tremendous courage when she faced him in a federal courtroom,” said U.S. Attorney Clint Johnson. “This predator thought he was above the law but has now been convicted and sits behind bars where he can no longer victimize another child.”
“There is nothing more disgraceful than a person who intentionally exploits a child’s vulnerabilities to ingratiate themselves and manipulate their decisions,” said Edward Gray, FBI Special Agent in Charge of the Oklahoma City Field Office. “The FBI is, and will continue to be, determined in its efforts to ensure people like Mr. Sweet do not move forward with impunity.”
In December 2020, the FBI received numerous reports that Sweet was in a sexual relationship with a vulnerable 16 year old girl and was in possession of explicit photographs and videos of the girl that would be considered child pornography. Agents further reviewed posts made by Sweet across several social media platforms where he specifically discussed his sexual interest in female minors. For example, in one post, a Reddit poster asked, “What was sexy 10 years ago but isn’t now?” Sweet replied “My 22-year-old niece.” Per his post, Sweet implied that he thought his niece was sexier when she was 12 as opposed to 22.
Sweet initially reached out to the victim online when she was 15 years old after he saw a post she had made on social media indicating that she recently lost a family member. The teenager had recently lost two people she cared about within a month and told authorities she had felt very alone at that time. Sweet, who was aware of the victim’s age, groomed the minor on and off social media for several months until September 2020 when he initiated a “relationship” with the minor. The minor’s guardian opposed Sweet’s interest in the child and eventually applied for a protective order against him. Sweet threatened the guardian when she tried to keep him away from the girl.
Over the course of the grooming, Sweet coerced the victim into sending a significant number of sexually explicit photographs and videos to him using multiple platforms, including Google Meet and Google Hangouts. The victim indicated that most of the images were sent using her school laptop. Law enforcement discovered a Google photos folder and a Google Hangouts conversation associated with Sweet’s account that corroborated what the victim had told authorities.
After he realized that law enforcement was pursuing a case against him, agents learned that Sweet took the minor to Payne County to apply for a marriage license. The victim testified that Sweet incorrectly believed that if the two were married, she could not testify against him. The victim’s guardian contacted the courthouse and advised them that she did not provide consent. Sweet then took the minor to Arkansas to marry her without the guardian’s consent.
At that time, agents also learned that Sweet planned to leave the country with the minor. Sweet was arrested as he was leaving Tulsa driving a car with “Just Married” written across the back window. The victim was also in the vehicle, and her hair had been bleached. Inside the vehicle, agents found “doll clothing,” multiple electronic devices, over $1,000 in cash, United States passport applications for both Sweet and the minor victim, and a Polish citizenship application for Sweet. During a search of relevant accounts, authorities discovered multiple videos of Sweet engaged in sexual acts with the victim.
In court, the victim testified that Sweet regularly provided her alcohol and drugs during the period in which he groomed her. She also testified that she was working to get the fraudulent marriage annulled. Sweet, who at times represented himself during the trial asked the victim if she would be willing to get back together with him to which the victim replied “Under no circumstance.”
During the course of the investigation, several other victims came forward. Although, they were not part of the indictment filed against Sweet, they hope to be heard at sentencing.
The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Edward Snow and Leah Paisner are prosecuting the case.
Three Sentenced to Prison in Nationwide Card Fraud, Money Laundering SchemeRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – April 20, 2022
SAN DIEGO – Three men were sentenced in federal court today for engaging in a years-long, nation-wide fraud conspiracy that stole victims’ financial information from ATMs and gas pumps in San Diego and across the country, and then used the stolen information to make fake credit and debit cards.
Davit Simonyan was sentenced to 46 months in prison, together with forfeiture of $642,347.16 and restitution of $116,408.00. His brother, Vahram Simonyan, was sentenced to 33 months in prison, forfeiture of $642,053.31, and identical restitution. Arsen Galstyan was sentenced to 18 months in prison and $47,796.00 in forfeiture and an identical restitution award, based on his conviction for fraud.
Including today’s defendants, a total of seven people have admitted to participating in the conspiracy, and in a related money laundering conspiracy, that together netted over $1 million in ill-gotten gains.
In sentencing the men, U.S. District Judge Michael M. Anello observed that “this was a huge criminal enterprise, nationwide.”
Throughout the scheme, the coconspirators stole unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs. With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts. According to court documents, the fraud victimized consumers in New York, Illinois, Missouri, Oklahoma, and across Southern California, including in San Diego.
The defendants’ scheme inflicted both real and attempted losses of at least $1.2 million, according to their plea agreements. The two lead defendants—brothers Davit and Vahram Simonyan—each admitted to obtaining over $642,000 in stolen money over the course of the conspiracy, which stretched from 2017 to 2020. They also acknowledged structuring their withdrawals from the banks to avoid bank reporting requirements. For example, in one month alone, the Simonyan brothers withdrew $91,500 in cash from a single bank account.
Davit Simonyan also staged a phony car accident in order to commit insurance fraud, according to his plea agreement. He planned an accident involving cars insured by two of his codefendants, including Arsen Galstyan, who was also sentenced today. Then Simonyan had one of the damaged vehicles repaired at a collision shop owned by an unindicted co-conspirator who kicked back thousands of dollars to Simonyan and his brother as part of their money laundering scheme. Davit Simonyan admitted that by staging a car accident, he caused the reckless risk of serious bodily injury.
“Identity thieves may believe that they can make easy money by stealing from unwitting victims in our community,” said U.S. Attorney Randy Grossman. “But this office will ensure that those defrauding the public will be brought to justice.” Grossman thanked the prosecution team, the U.S. Secret Service and the U.S. Postal Inspection Service for their excellent work on this case.
“We are thankful to all those who partnered with us in the investigation and prosecution of this organized criminal network. The Secret Service, along with our collaborative law enforcement partners, continue to work tirelessly investigating this type of skimming case, which targets unsuspecting victims,” said San Diego Acting Special Agent in Charge Timothy Scott. “We will continue to use all investigative means necessary to bring to justice those perpetrating these crimes.”
“Today’s sentencing is an example of our commitment and dedication to protect the American public from becoming victimized and to prevent Postal Service products from criminal attack and misuse,” said Carroll Harris, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service. “Working with our law enforcement partners we seek to stop these criminals and hold them accountable for their actions.”
Other conspirators to face sentencing have all received prison time. On April 21, 2021, co-defendant Arsen Minasyan was sentenced by U.S. District Judge Michael M. Anello to 37 months in custody. He was ordered to forfeit $75,145.90 and to pay restitution to victims in the amount of $109,834.14. Judge Anello sentenced co-defendant Mukuch Mkrtchyan on October 14, 2021, to 24 months in prison, forfeiture of $28,077.11, and restitution of $116,070. Co-defendant Smbat Shahinyan was also sentenced to 24 months in prison and similar financial penalties on January 12, 2022.
The remaining defendant, Gor Plavchyan, is scheduled to be sentenced on May 4, 2022.
Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Age Case Number 20cr314-MMA
- Davit Simonyan 30 Residence: Glendale, California
- Vahram Simonyan 34 Residence: Glendale, California
- Arsen Minasyan 34 Residence: Terminal Island FCI
- Gor Plavchyan 26 Residence: Winnetka, California
- Arsen Galstyan 40 Residence: Glendale, California
- Mukuch Mkrtchyan 32 Residence: Fair Oaks, California
- Smbat Shahinyan 41 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)
Maximum Penalty: twenty years in prison; fine of $500,000 or twice the value of the property involved
Conspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)
Maximum Penalty: five years in prison; fine of $250,000 or twice the gross gain or loss
AGENCY
United States Secret Service
U.S. Postal Inspection Service
Three Men Charged with Federal Firearm Violations After Exchange of Gunfire in Suburban Chicago Parking LotRead the Press Release
CHICAGO — Three men involved in an exchange of gunfire in a store parking lot in a Chicago suburb have been indicted on federal firearm violations.
The indictment in U.S. District Court in Chicago accuses ANTHONY HAYES and JAMARI WILLIAMS of each firing multiple rounds at REGINALD DANIELS in the store parking lot in Calumet City, Ill., on Aug. 9, 2021. Daniels and another individual with him were wounded. Daniels drew a gun from his waistband and fired multiple rounds at Hayes and Williams as they ran away, the indictment states. One of Daniels’s shots struck an individual who happened to be driving near the store and was not involved in the exchange of gunfire, the indictment states.
Three days after the shootings, law enforcement conducted a court-authorized search of Hayes’s residence and discovered eight firearms, including the handguns used by Hayes and Williams in the shooting of Daniels and the individual with him, the indictment states.
The indictment charges Hayes, 24, of Dolton, Ill., Williams, 23, of Chicago, and Daniels, 40, of Chicago, with illegal possession of a firearm as previously convicted felons. Hayes also faces additional counts of illegal possession of machine guns. All three defendants are in law enforcement custody. Daniels is scheduled to appear for a detention hearing today at 3:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes. Federal court appearances for Hayes and Williams have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Calumet City Police Department, U.S. Marshals Service, South Suburban Major Crimes Task Force, South Suburban Emergency Response Team, Cook County Sheriff’s Office, and Illinois State Police. The government is represented by Assistant U.S. Attorney Paul Mower.
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. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Three Men Charged in Conspiracy to Distribute Millions of Fentanyl PillsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Patrick Silfrain (40, Winter Garden), aka “Prada,” “Haitian Pat,” Kevin Jean-Gilles (39, Orlando), aka “G,” “Cole,” “Darren Tai,” “Vincent DiPietro,” and Jean Kesnor Choisil (50, Ocoee) with conspiracy to manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or dispense, at least 400 grams of fentanyl. If convicted, each faces a mandatory minimum of 10 years, and up to life, in federal prison. The indictment also notifies the defendants that the United States intends to forfeit any assets that are alleged to be traceable to proceeds of the offense.
According to court documents, from at least May 2020 through April 2022, Silfrain, Jean-Gilles, and Choisil conspired to manufacture and distribute fentanyl-laced pills throughout the Middle District of Florida. The pills were manufactured using multiple pill presses that were owned and operated by the defendants and could each produce 5,000 pills per hour.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of a Drug Enforcement Administration investigation titled “Operation Pillgrim.” This operation specifically targets counterfeit pill production in an effort to reduce fentanyl and other dangerous pills from flooding communities in central and southern Florida.
It will be prosecuted by Assistant United States Attorney Ranganath Manthripragada.
Tampa Accountant Sentenced to More Than Six Years in Federal Prison for Plotting A Murder-For-HireRead the Press Release
Tampa, Florida– U.S. District Judge Steven D. Merryday today sentenced DeAnna Marie Stinson (50, Tampa) to six years and six months in federal prison for murder-for-hire. The Court also ordered Stinson to pay $11,403.22 in restitution to the victim of the offense and a $1,000 fine. Stinson had pleaded guilty on January 19, 2022.
According to court documents, on June 24, 2021, Stinson created an account on a dark web website (“The Website”) that purported to provide murder-for-hire services to its customers. The following day, Stinson submitted an “order” requesting that a hitman be assigned to complete a “quick hit in southern Florida” to kill the spouse of Stinson’s former significant other. In the order, Stinson provided the victim’s name, address, and a photograph of the victim. Between June and July 2021, Stinson sent four additional orders and over $12,000 in bitcoin to effectuate the hit. During this time, Stinson repeatedly messaged administrators of The Website and purported hitmen requesting that the “job” be completed as soon as possible and even offered a “bonus” if the hit was completed by a specific date. When Stinson had not received a status update from administrators of The Website, on July 31, 2021, Stinson requested that the administrators “reassign the job to someone who has a history of getting jobs done” because she “need[ed] th[e] job done ASAP.”
Law enforcement agents received information regarding Stinson’s criminal activity and obtained records from her virtual currency exchange account. The records showed that Stinson had paid Bitcoin to The Website. An agent contacted Stinson while acting in an undercover capacity as a hitman for The Website. In a recorded phone call, Stinson confirmed that she wanted the victim killed and agreed to send additional money to the undercover agent via Bitcoin so that the transaction could not be traced. On September 13, 2021, Stinson sent $350 in bitcoin to the undercover agent so that the agent could purchase a revolver to commit the murder.
This case was investigated by the Federal Bureau of Investigation (Miami). It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Supervisor at Long Island Drug Manufacturer Sentenced to Prison for Theft of Medical ProductsRead the Press Release
Earlier today, in federal court in Central Islip, Gregory Settino, a resident of Bethpage, New York, was sentenced by United States District Judge Joanna Seybert to a year and a day’s imprisonment for theft of approximately $750,000 worth of medical products. The Court also ordered Settino to pay restitution of $847,093.
Breon Peace, United States Attorney for the Eastern District of New York, and Ronne G. Malham, Acting Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, New York Field Office (FDA-OCI), announced the sentence.
“Today’s sentence is the finish line of Gregory Settino’s criminal conduct. He stole thousands of bottles of drugs, ignored safe handling practices, and allowed them to be given to horses at New York racetracks without regard for the health of the animals – only focusing on his own personal gain,” stated United States Attorney Peace. “Those who jeopardize drug safety and risk the health of others will be held accountable and face serious consequences.”
“The FDA ensures that veterinary drugs are safe and effective so that animals remain healthy. Drugs that are taken out of the legitimate supply chain pose a risk to the animals that take them,” said Acting Special Agent in Charge Malham. “We will continue to investigate and bring to justice those who endanger the health of animals.”
As admitted at defendant’s plea, Settino, the production supervisor of manufacturing at a Long Island Drug Manufacturer, American Regent formerly Luitpold Pharmaceuticals, Inc. in Shirley, New York, Settino stole Adequan, a drug manufactured there. Adequan is an injectable equine drug administered to horses to treat degenerative joint disease Settino’s thefts of thousands of bottles of Adequan covered a period of eight years, from 2012 to 2020, and Settino sold those drugs worth $750,000 for hundreds of thousands of dollars to trainers and veterinarians at New York racetracks, including Belmont Park. Settino’s conduct endangered the health of horses because the drugs were not maintained, stored or transported in accordance with proper procedures for ensuring the safety, effectiveness and efficacy of the drugs. At times, Settino transported the drugs in shoeboxes stored in his car.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.
The Defendant:
GREGORY SETTINO
Age: 60
Bethpage, New YorkE.D.N.Y. Docket No. 20-CR-340 (JS)
Stericycle Agrees to Pay over $84 Million in Coordinated Foreign Bribery ResolutionRead the Press Release
Stericycle Inc. (Stericycle), an international waste management company headquartered in Lake Forest, Illinois, has agreed to pay more than $84 million to resolve parallel investigations by authorities in the United States and Brazil into the bribery of foreign officials in Brazil, Mexico, and Argentina.
According to court documents, Stericycle entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice in connection with the filing of a criminal information charging the company with two counts of conspiracy to violate (1) the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA), and (2) the FCPA’s books and records provision. Pursuant to the DPA, Stericycle’s criminal penalty is $52.5 million. The department has agreed to credit up to one-third of the criminal penalty against fines the company pays to authorities in Brazil in related proceedings, including an amount of approximately $9.3 million to resolve investigations by the Controladoria-Geral da União (CGU) and the Advocacia-Geral de União (Attorney General’s Office) in Brazil. In addition, Stericycle has agreed to pay approximately $28 million to resolve a parallel investigation by the U.S. Securities and Exchange Commission (SEC).
“Stericycle today accepted responsibility for its corrupt business practices in paying millions of dollars in bribes to foreign officials in multiple countries,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The company also maintained false books and records to conceal corrupt and improper payments made by its subsidiaries in Brazil, Mexico, and Argentina. Today’s resolution demonstrates the Department of Justice’s continuing commitment to combating corruption and protecting the international marketplace.”
“Today’s resolution with Stericycle shows that the FBI and our international law enforcement partners will not allow corruption to permeate domestic or international markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The consequences of violating the FCPA are clear: Companies that bribe foreign officials for business advantage will be held accountable.”
According to the company’s admissions and court documents, Stericycle conspired to corruptly offer and pay approximately $10.5 million in bribes to foreign officials in Brazil, Mexico, and Argentina in order to obtain and retain business and other advantages for Stericycle. The company earned at least $21.5 million in profits from the corrupt scheme.
Specifically, between 2011 and 2016, Stericycle caused hundreds of bribe payments to be made to officials at government agencies and instrumentalities in Brazil, Mexico, and Argentina to obtain and retain business and to secure improper advantages in connection with providing waste management services. In perpetrating the scheme, an executive at Stericycle’s Latin America division directed employees in the company’s offices in Brazil, Mexico, and Argentina who paid bribes, typically in cash, that were calculated as a percentage of the underlying contract payments owed to Stericycle from government customers. In all three countries, the co-conspirators tracked the bribe payments through spreadsheets and described the bribes through code words and euphemisms, such as “CP” or “commission payment” in Brazil; “IP” or “incentive payment” in Mexico; and “alfajores” (a popular cookie) or “IP” in Argentina.
As part of the DPA, Stericycle has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the DPA, Stericycle agreed to continue to enhance its compliance program and to retain an independent compliance monitor for two years, followed by self-reporting to the department for the remainder of the term.
The government reached this resolution with Stericycle based on a number of factors, including, among others, the company’s failure to voluntarily and timely disclose the conduct that triggered the investigation and the nature, seriousness, and pervasiveness of the offense. Stericycle received full credit for its cooperation with the department’s investigation and engaged in extensive remedial measures. Although Stericycle has taken extensive remedial measures, it has not fully implemented or tested its enhanced compliance program, necessitating the imposition of an independent compliance monitor for a term of two years. Accordingly, the criminal penalty reflects a 25% reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
In a related civil matter in the United States, Stericycle has agreed to pay disgorgement and prejudgment interest totaling approximately $28 million to resolve an investigation by the SEC. In related proceedings in Brazil, the company has agreed to resolve investigations by the CGU and the Attorney General’s Office.
The FBI’s New York Field Office is investigating the case. Trial Attorneys Paul A. Hayden and Jil Simon of the Criminal Division’s Fraud Section are prosecuting the case. Authorities in Brazil and Mexico provided assistance in this matter, as did the Justice Department’s Office of International Affairs.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Statement from U.S. Attorney Rachael S. Rollins on the First Circuit Ruling in U.S. V. Jasiel Correia IIRead the Press Release
“After six delays, today’s order from the First Circuit declares what so many have longed to hear in the case against former Fall River Mayor Jasiel Correia – he will begin his prison sentence in the coming days. Although we cannot erase the impact Jasiel Correia’s conduct and subsequent legal battle has had on the City and constituents he swore to honestly serve, this ruling marks the next step in bringing justice to the people of Fall River and the many others who fell victim to his corruption.”
St. Louis man sentenced to 25 years in federal prison for series of armed robberiesRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross sentenced Jalon Moore, age 25, to 25 years in federal prison for several counts of armed robbery and possession and brandishing of a firearm in furtherance of crimes of violence. Moore previously pleaded guilty in January.
According to the plea agreement, Moore and two co-defendants committed a string of armed robberies in 2019 within the Eastern District of Missouri. Each of the robberies involved a yellow Camaro (which was used as the getaway car), the brandishing of firearms, and the taking or attempted taking of money from local businesses, by the use of force, threatened force, or violence.
Moore and the others were responsible for robbing (or attempting to rob) the following businesses on the following dates:
- Mack Bar and Grill located at 4615 Macklind, St. Louis, Missouri on January 9, 2019;
- Jimmy John’s located at 6459 Chippewa Street, St. Louis, Missouri on February 9, 2019;
- Subway located at 1151 South Kingshighway Boulevard, St. Louis, Missouri on February 17, 2019;
- Panda Express located at 4400 Hampton Avenue, St. Louis, Missouri on March 18, 2019; and
- Sprint located at 5441 Hampton Avenue, St. Louis, Missouri on March 21, 2019.
This case was investigated by the Federal Bureau of Investigation-St. Louis and the Saint Louis Metropolitan Police Department, in coordination with the United States Attorney’s Office for the Southern District of Illinois; the Federal Bureau of Investigation-Springfield; and the Collinsville and Fairview Heights Police Departments.
Randolph County woman sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Patricia Ann Mahoney, of Elkins, West Virginia, was sentenced today to 84 months of incarceration for methamphetamine charge, United States Attorney William Ihlenfeld announced.
Mahoney, 52, pleaded guilty in October 2021 to one count of “Distribution of at Least Five Grams of Methamphetamine.” Mahoney admitted to selling at least five grams of methamphetamine in February 2020 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Prolific Fraudster Sentenced to 18 Months in PrisonRead the Press Release
SAN JUAN, Puerto Rico – On April 19, 2022, defendant Ramón Julbe-Rosa was sentenced to 18 months in prison and was ordered to pay $270,941.98 in restitution, by United States District Court Judge Aida Delgado Colón, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On January 27, 2022, Julbe-Rosa pleaded guilty to 12 counts including theft of government property and introducing unapproved new drugs into the United States. Ramón Julbe-Rosa defrauded the Social Security Administration and Medicare by receiving Social Security Disability Insurance Benefit payments while working.
Defendant Julbe-Rosa also committed fraud against the Department of Veterans Affairs for fraudulently receiving unemployability benefits, and fraud in connection with Major Disaster or Emergency Benefits related to Hurricane María. Julbe-Rosa applied for an SBA Disaster Loan by falsely representing that on September 20, 2017, his primary residence, damaged by Hurricane María was located in Morovis, Puerto Rico when he well knew that this was not his primary residence. As a result, the defendant fraudulently received $50,000.00 from SBA.
In addition, Julbe-Rosa plead guilty to Introducing into Interstate Commerce Unapproved New Drugs. Defendant Julbe-Rosa established and operated the website www.aceitedeguanabana.com through which he promoted and sold various products intended as treatments for serious medical conditions without FDA approval. Defendant Julbe-Rosa sold at least $341,242.26 worth of unapproved new drugs.
Julbe-Rosa was ordered to make restitution as follows: $57,552.00 for the Social Security Administration; $118,943.94 for the U.S. Department of Veterans Affairs; $47,002.10 for the Medicare Program and $47,443.94 for the Small Business Administration; for a total restitution amount of $270,941.98.
This case was investigated by the Social Security Office of Inspector General (SSA-OIG) with the collaboration of the Food and Drug Administration, Office of Criminal Investigations (FDA); Department of Homeland Security, Office of Inspector General (DHS-OIG); Health and Human Services, Office of Inspector General (HHS-OIG); Department of Veterans Affairs, Office of the Inspector General (VA-OIG); and the Puerto Rico Police Bureau.
Special Assistant U.S. Attorney Vanessa D. Bonano from the Social Security Administration prosecuted the case.
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Previously Removed Dominican Republic Man Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced that Reynaldo Mejia-Mejia, a citizen of the Dominican Republic, pleaded guilty yesterday in District Court before Magistrate Judge George W. Cannon, Jr. to illegally reentering the United States.
According to court documents, Reynaldo Mejia-Mejia, age 33, presented himself to U.S. Customs and Border Protection (CBP) officers for inspection to board a Spirit airlines flight from St. Croix, USVI to Fort Lauderdale, FL on March 23, 2022. He displayed a Washington State driver’s license in the name of another individual with a photo of his likeness as proof of identification to travel.
During questioning at the primary inspection, Mejia stated that he was born in Puerto Rico; however, the CBP officer noticed that Mejia’s accent sounded distinctive to the Dominican Republic. A subsequent fingerprint check positively identified Mr. Mejia-Mejia, and record checks revealed that he was previously deported by immigration officials in 2018 and 2019 from the United States to the Dominican Republic. CBP officers determined that Mejia-Mejia is not a citizen or national of the United States. Reynaldo Mejia-Mejia is in fact a citizen and national of the Dominican Republic, and he was not in possession of the required legal documents to be present or to enter the United States.
Homeland Security Investigations and U.S. Customs and Border Protection are investigating the case.
Assistant U.S. Attorney Melissa Ortiz is prosecuting the case. Mejia-Mejia is scheduled to be sentenced on August 18, 2022, and he faces a maximum penalty of two years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Orleans Parish Man Pleads Guilty to Federal Firearms ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on April 19, 2022, defendant EDWARD DAVIS, age 45, resident of New Orleans, LA, pled guilty before U.S. District Court Judge Jay C. Zainey to a federal weapons violation of being a felon in possession of a firearm.
In Count 1 of the indictment, DAVIS is charged with possessing two firearms on January 11, 2022, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). DAVIS faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years supervised release, and a mandatory special assessment fee of $100.00. DAVIS’s sentencing is scheduled for July 28, 2022.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
Orleans Parish Man Pleads Guilty to Carjackings and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA - U.S. Attorney Duane A. Evans announced that on April 19, 2022, defendant RICHARD JONES, of New Orleans, Louisiana, pled guilty on April 10, 2022 before U.S. District Court Judge Greg G. Guidry to carjacking, possession of a firearm in furtherance of a crime of violence, burglary of a federal firearms licensee, and felon in possession of a firearm.
Specifically, RICHARD JONES pled guilty to Counts One, Two, Three, and Six of the indictment. JONES pled guilty to Count One, which charges him with a carjacking, in violation of Title 18, United States Code, Section 2119(1). JONES also pled guilty to Count Two, which charges him with possessing a firearm in furtherance of a crime of violence, that is, a carjacking, in violation of Title 18, United States Code Section, 924(c)(1)(A). JONES also pled guilty to Count Three, which charges him with burglary of a federal firearms licensee, in violation of Title 18, United States Code, Section 922(u). Finally, JONES pled guilty to Count Six, which charges him with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(a)(2).
As to Count One, JONES faces a maximum sentence of 15 years imprisonment, a fine of up to $250,000, up to three years of supervised release, and a $100 mandatory special assessment fee. As to Count Two, JONES faces a mandatory minimum sentence of five years up to a maximum of life imprisonment, to run consecutive to any other sentence imposed, a fine of up to $250,000, up to five years of supervised release, and a $100 mandatory special assessment fee. Finally, as to Counts Three and Six, JONES faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000, up to three years supervised release, and a $100 mandatory special assessment fee. For each count of conviction, JONES, must pay a $100 mandatory special assessment fee at sentencing. JONES's sentencing is scheduled for August 9, 2022.
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.
U.S. Attorney Evans praised the work of the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Department, and the Jefferson Parish Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
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Orleans Parish Financial Manager Charged with Embezzling over $200,000Read the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that KATIE LAROCHE, age 53, from New Orleans, was charged on April 19, 2022 with wire fraud, based on her embezzlement of $233,363.53 from a client.
The government filed a one-count bill of information that charged LAROCHE with wire fraud involving conduct from 2015 through 2021. According to the bill of information, LAROCHE was a financial manager who handled bookkeeping, accounting, and other financial services for her clients. From 2015 through 2021, LAROCHE embezzled funds from one of her clients. LAROCHE hid the embezzlements by falsely indicating that withdrawals and transfers out of the victim’s account were for tax payments, when in fact the money was deposited into LAROCHE’s personal account or used for LAROCHE’s own purposes.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, LAROCHE faces up to twenty years in prison. LAROCHE also faces up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to LAROCHE or the gross loss to any victims, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Secret Service. Assistant United States Attorneys Nicholas D. Moses and Jordan Ginsberg are in charge of the prosecution.
Oklahoma Man Sentenced to 12 Years in PrisonRead the Press Release
LITTLE ROCK—An Oklahoma man has been sentenced to 12 years in prison for his role in a conspiracy that resulted in the trafficking of firearms to Mexican cartels. Andrew Scott, Pierson, 46, of Jay, Oklahoma, was sentenced this afternoon by United States District Judge Brian S. Miller.
In May 2017, an Arkansas resident received a shipment of firearm components that had been sent to him for cerakoting, a process in which a polymer-ceramic coating is added to a firearm or its parts to improve durability. The parts appeared to be 80% Colt lower receivers, and this individual recognized these firearm parts as counterfeit. He contacted law enforcement. The counterfeit receivers were traced to an organization in Laredo, Texas, which was transporting firearm parts to Pierson in Nuevo Laredo, Mexico. Pierson assembled the parts into functioning weapons for the Cartel Del Noreste (CDN) and Cartel Jalisco Nueva Generacion (CJNG).
Pierson was arrested at the southern United States border on December 10, 2018. Pierson admitted to ordering and receiving firearm parts from the United States and manufacturing automatic weapons in Mexico for the CDN and CJNG cartels. Law enforcement later confirmed cartel firearm availability was impaired following Pierson’s arrest.
On September 3, 2019, a federal grand jury indicted Pierson and seven others for their involvement conspiracies to traffic in counterfeit goods and to violate the Arms Export Control Act. Five codefendants have previously pleaded guilty, and one co-defendant remains a fugitive. In November 2021, Pierson pleaded guilty to Count 2 of the Fourth Superseding Indictment, conspiracy to violate the Arms Export Control Act.
“Mr. Pierson’s participation in the exportation and manufacturing of illegal firearms to Mexican cartels is an inexcusable contribution to the violence carried out by these groups,” said United States Attorney Jonathan D. Ross. “We are committed to prosecuting any case that will help prevent violent criminal organizations from obtaining firearms.”
“Our Special Agents worked diligently on this investigation to intercept illegal weapon components being trafficked to criminal organizations in Mexico,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Kurt Thielhorn. “Our goal is to disrupt and dismantle the illegal activity and this sentencing sends a message to those who seek to aid violent criminals that it will not be tolerated. ATF works aggressively to identify and investigate individuals who arm the ruthless organizations that are responsible for a majority of the extreme violence in Mexico.”
“The U.S. Postal Inspection Service values our law enforcement partners and the U.S. Attorney’s Office in the Eastern District of Arkansas who helped bring this investigation to a successful conclusion,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Illegal shipments of weapons threaten the safety of all our communities. These crimes are a priority for Postal Inspectors and demonstrate the importance of our mission that includes the safeguarding of the Postal Service, its customers, and preventing the illegal use of the U.S. Mail.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Essential support and coordination for Operation Thor’s Hammer was supplied by Special Operations Division (SOD) personnel, including assigned agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, and attorneys from the Narcotic and Dangerous Drug Section and Money Laundering and Asset Recovery Section. The United States Postal Inspection Service and the Pine Bluff Police Department were also instrumental in the investigation, with assistance from Homeland Security Investigations and the FBI. The case was prosecuted by Assistant United States Attorney Anne Gardner.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Ocean County Man Charged with Federal Hate Crimes for Series of Violent Assaults on Members of Orthodox Jewish CommunityRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was charged with federal hate crimes for a series of violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today.
Dion Marsh, 27, of Manchester, New Jersey, is charged with four counts of violating the federal Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the hate crimes violations, Marsh is charged with willfully causing bodily injury to four victims, and attempting to kill and cause injuries with dangerous weapons to three of them, all because they were Jewish. Marsh is in custody on related state charges and will make his initial appearance on the federal charges on a date to be determined.
According to documents filed in this case and statements made in court:
At 1:18 p.m. on April 8, 2022, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him in the process. Marsh took control of the man’s car and drove away. A surveillance video in the area captured Marsh arriving in the area prior to the carjacking and assault.
At 6:06 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim and causing him to suffer several broken bones.
At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, attempted to kill another visibly identifiable Orthodox Jewish man. Marsh used the stolen vehicle to deliberately strike the man, who was walking in Lakewood. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer a stab wound and other injuries.
At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.
At 12:00 a.m. on April 9, 2022, law enforcement officers arrested Marsh at his residence.
The three hate crimes violations charging Marsh with attempting to kill those victims each carry a statutory maximum term of life in prison and a $250,000 fine. The hate crime violation charging Marsh with assaulting the other victim carries a statutory maximum term of 10 years in prison and a $250,000 fine. The carjacking charge carries a statutory maximum term of 15 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; officers of the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer; officers of the Jackson Township Police Department, under the direction of Chief of Police Matthew Kunz; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; prosecutors and detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office’s Civil Rights Division.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Noble, LA Man Receives Sentence of 23+ Years in Federal Prison on Sexual Exploitation ChargeRead the Press Release
SHREVEPORT, La. – Dustin Lee Crow, 33, of Noble, Louisiana, was sentenced today by United States District Judge Elizabeth E. Foote to 286 months (23 years, 10 months) in prison, followed by 5 years of supervised release, announced United States Attorney Brandon B. Brown.
In July 2019, the National Center for Missing and Exploited Children (NCMEC) reported three cybertips to the Louisiana Bureau of Investigations. The cybertips concerned images and videos of child pornography contained on three Twitter accounts belonging to Crow. The child pornography images which were uploaded contained videos and a still image of a victim under the age of 6. These videos and image were uploaded to Twitter and sent in a direct message to another Twitter account. Agents executed a search warrant at Crow’s house and admitted his involvement in the offenses to law enforcement agents. Crow pleaded guilty on June 9, 2021 to one count of sexual exploitation of children.
The case was investigated by the Homeland Security Investigations and the Louisiana Bureau of Investigations Cyber Crime Unit and was prosecuted by Assistant U.S. Attorneys Jessica D. Cassidy and Earl M. Campbell.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Orleans Woman Sentenced for Conspiring to Stage Automobile Accident in Order to Defraud Insurance and Trucking Company Out of $4.7 MillionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that KEISHIRA ROBINSON (“K. ROBINSON”), age 27, of New Orleans, Louisiana was sentenced today for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of her involvement in a staged automobile accident that occurred on October 13, 2015. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-six (36).
According to documents filed in federal court, A. Robinson, Harris, Schaffer, and K. ROBINSON intentionally collided with a tractor-trailer in the area of Alvar Street and France Road in New Orleans. Roderick Hickman (“Hickman”), who pled guilty to a previous indictment charging him and 10 others with staging automobile accidents, was driving A. Robinson’s vehicle at the time of this accident. Hickman intentionally struck a tractor-trailer owned and operated by C.R. England, and then was picked up from the collision site by Damian Labeaud (“Labeaud”), who has also pled guilty to a previous indictment as part of this investigation. After the accident, A. Robinson, who had been in Labeaud’s vehicle at the time of the accident, then got behind the wheel of his own vehicle to make it appear that he had been driving at the time of the staged accident. A. Robinson falsely reported to the NOPD that he had been driving and that the tractor-trailer had struck his vehicle.
All four defendants were referred to an attorney who paid Labeaud for staging this accident, among others. All of the defendants were treated by doctors and healthcare providers at the direction of their attorneys, and A. Robinson, Harris, and Schaffer underwent surgeries. In total, in July 2019, the victim trucking and insurance company paid out approximately $4.7 million for the fraudulent claims associated with this staged accident.
United States District Judge Ivan L.R. Lemelle sentenced K. ROBINSON to 5 years’ probation, restitution ordered in the amount of $4,725,000, $100 mandatory special assessment, and the court granted the preliminary order of forfeiture in the amount of $5,000.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon Long, Brian M. Klebba, Chief of the Financial Crimes Unit, Assistant U.S. Attorney Maria Carboni, and Assistant U.S. Attorney Edward Rivera.
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New Jersey Man Sentenced to over Ten Years for Violent Carjacking in Philadelphia Restaurant Parking LotRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Sherman Artwell, 24, of Camden, NJ was sentenced to ten years and one month in prison, five year of supervised release by United States District Court Judge Paul S. Diamond for his participation in a violent carjacking in Philadelphia and flight to New Jersey in the stolen vehicle.
In November 2021, the defendant pleaded guilty to carjacking and using, carrying and brandishing a firearm during a crime of violence. The charges arose from an incident that occurred in May 2018 in which the defendant, armed with a shotgun, and a juvenile co-conspirator approached the victim and his friend while the two were talking in the parking lot outside a Dunkin Donuts in Philadelphia. The two forcibly pulled the victim from the driver’s seat, threw him onto the ground, and pointed guns at him. The co-conspirator jumped into the driver’s seat of the victim’s vehicle, and the defendant got into the passenger seat. The two fled to New Jersey, and Camden County Police officers apprehended the juvenile co-defendant after he crashed the vehicle. The defendant was separately identified through video and forensic evidence and apprehended a short time later.
“As we have said many times since launching the #AllHandsOnDeck initiative, our Office and our federal partners are doing everything we can to support the Philadelphia Police Department and prosecute cases federally when appropriate,” said U.S. Attorney Williams. “Here, the defendant participated in a brazen carjacking at gunpoint in the middle of the afternoon in busy neighborhood -- an offense that certainly meets the criteria for federal prosecution. We are committed to bringing the full might of the federal justice system to this battle against the escalating number of carjackings.”
“Imagine the terror of being pulled from your car with a shotgun pointed straight at you,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Sherman Artwell violently accosted an individual living his life, minding his business, just to take that vehicle. The FBI is firmly committed to working with our police partners to address the spate of carjackings that have been plaguing Philadelphia. People shouldn’t have to live in fear every time they get behind the wheel.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Camden County (NJ) Police Department, and is being prosecuted by Assistant United States Attorney Christopher Parisi and Special Assistant United States Attorney Martin Howley.
New Jersey Man Charged with Federal Hate Crimes for String of Violent Assaults on Members of Orthodox Jewish CommunityRead the Press Release
A New Jersey man was charged with federal hate crimes for a series of violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey announced today.
Dion Marsh, 27, of Manchester, is charged with four counts of violating the federal Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the hate crimes violations, Marsh is charged with willfully causing bodily injury to four victims, and attempting to kill and cause injuries with dangerous weapons to three of them, all because they were Jewish. Marsh is in custody on related state charges and will make his initial appearance on the federal charges on a date to be determined.
According to documents filed in this case and statements made in court:
At 1:18 p.m. on April 8, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him in the process. Marsh took control of the man’s car and drove away. A surveillance video in the area captured Marsh arriving in the area prior to the carjacking and assault.
At 6:06 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, causing the victim to suffer several broken bones.
At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in Lakewood. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing significant injuries.
At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, causing the man to suffer several broken bones and internal injuries.
At approximately 12:00 a.m. on April 9, law enforcement officers arrested Marsh at his residence.
The three hate crimes violations charging Marsh with attempting to kill those victims each carry a statutory maximum term of life in prison and a $250,000 fine. The hate crime violation charging Marsh with assaulting the other victim carries a statutory maximum term of 10 years in prison and a $250,000 fine. The carjacking charge carries a statutory maximum term of 15 years in prison and a $250,000 fine.
Assistant Attorney General Clarke and U.S. Attorney Sellinger credited special agents of the FBI Newark Field Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; officers of the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer; officers of the Jackson Township Police Department, under the direction of Chief of Police Matthew Kunz; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; prosecutors and detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko for the U.S. Attorney’s Office’s Civil Rights Division.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
NBA Player's Personal Assistant Sentenced to 70 Months for Theft of $4.7 MillionRead the Press Release
TUCSON, Ariz. – Theodore Itsvan Joseph Kritza, 46, of Superior, Colorado (formerly of Chandler, Arizona), was sentenced yesterday by U.S. District Judge Cindy K. Jorgenson to 70 months in prison, followed by five years of supervised release. Kritza was also ordered to pay $4,794,874 in restitution to the victim. Kritza previously pleaded guilty to bank and wire fraud.
In April 2005, the victim, an NBA player, hired Kritza to serve as his personal assistant, taking care of his day-to-day tasks, including paying his bills. Between 2005 and 2012, Kritza fraudulently obtained funds by forging the victim’s signature on more than two dozen documents, including business loans, credit line applications, and a power of attorney. Kritza also forged his employer’s signature to open a bank account in the victim’s name so Kritza could conceal his use of the victim’s personal funds. Kritza stole money from the victim’s salary, endorsement contract, and sale of a condo. Kritza then used the stolen funds to maintain a lavish lifestyle for his family that included expensive luxury cars, homes, vacations, private school tuition for his children, business investments, and the attempted purchase of an airplane.
“We see this scenario time and again,” said United States Attorney Gary Restaino. “A confidant abuses a position of trust and embezzles someone else’s assets. Thanks to our partners at the FBI for their hard work on the investigation.”
“For years, Theodore Kritza preyed upon the trust he gained with the victim and defrauded him of his hard-earned money and savings, choosing greed over trust. Today, Kritza found out the cost of his scheme,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “This sentencing sends a clear message that fraud is a serious crime, with serious consequences. The FBI remains committed to pursuing justice for all victims of fraud.”
The FBI conducted the investigation in this case. Assistant U.S. Attorneys Sandra M. Hansen and Jane L. Westby with the Financial Crimes and Public Corruption section of the U.S. Attorney’s Office, Tucson, handled the prosecution.
CASE NUMBER: CR-17-00938-CKJ
RELEASE NUMBER: 2022-047_Kritza# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Moss Point Man Sentenced to 10 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – A Moss Point man was sentenced to 120 months in federal prison for being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to information presented to the Court, on February 8, 2021, Bayliss Morris Jenkins, 44, was taken into custody by Moss Point Police officers after a traffic stop for operating a vehicle with a switched tag. Jenkins possessed two handguns in his vehicle.
Jenkins had prior felony convictions for possession of a controlled substance, aggravated assault, and a felon in possession of a firearm. He was indicted on June 15, 2021, for possession of a firearm by a convicted felon. He pled guilty on November 17, 2021.
The Court sentenced Jenkins to 120 months, which is the statutory maximum sentence for his offense.
The ATF and Moss Point Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner prosecuted the case.
Mercer County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Mercer County man pleaded guilty today to distribution of hydromorphone.
According to court documents, Eric Hendricks, 46, of Bluefield, admitted he sold four hydromorphone pills for $100 to a confidential informant in the Bluefield, Mercer County, area on February 26, 2018. Hendricks further admitted to selling four hydromorphone pills to a confidential informant on February 21, 2018, and again on March 7, 2018.
Hendricks is scheduled to be sentenced on July 18, 2022, and faces a maximum penalty of 20 years in prison.
United States Attorney Will Thompson made the announcement. The Southern Regional Drug and Violent Crime Task Force conducted the investigation.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney John L. File is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:18-cr-90.
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Maryland Doctor Facing Federal Indictment for COVID-19 Healthcare Fraud Scheme is Part of a Nationwide Coordinated Law Enforcement Action to Combat Health Care Related COVID-19 Fraud Announced by the Justice Department TodayRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland has indicted Ron Elfenbein, M.D., age 47, of Arnold, Maryland, for three counts of healthcare fraud for submitting false and fraudulent claims to Medicare and other insurers for patients who received COVID-19 tests at sites operated by the defendant. The indictment was returned yesterday.
The Department of Justice today announced the criminal charges against Elfenbein and 17 other defendants in nine federal districts across the United States for their alleged participation in various fraud schemes involving health care services that exploited the COVID-19 pandemic and resulted in over $149 million in COVID-19 related false billings to federal programs and theft from pandemic assistance programs. In connection with the enforcement action, the department seized over $8 million in cash and other fraud proceeds.
The Maryland indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Special Agent in Charge Maureen Dixon for the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas Sobocinski for the FBI Baltimore Field Office, and Special Agent in Charge Amy K. Parker for the Office of Personnel Management, Office of Inspector General (OPM-OIG).
“The indictment alleges that Ron Elfenbein took advantage of a national health crisis to line his own pockets,” said United States Attorney for the District of Maryland Erek L. Barron. “Our office has and will continue to investigate and prosecute fraud by anyone who used the COVID-19 pandemic to defraud individuals or the government.”
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
“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,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs.”
Today’s announcement by the Department of Justice builds on the success of the May 2021 COVID-19 Enforcement Action and involves the prosecution of various COVID-19 health care fraud schemes. Multiple defendants offered COVID-19 testing to induce patients to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive tests or services.
For example, according to the Maryland indictment, Elfenbein owned and operated Drs ERgent Care, LLC, d/b/a First Call Medical Center and Chesapeake ERgent Care. Drs ERgent care operated drive-through COVID-19 testing sites in Anne Arundel and Prince George’s Counties. The indictment alleges that Elfenbein instructed the employees of Drs ERgent Care that, in addition to billing for the COVID-19 test, the employees were to bill for moderately complex office visits, lasting between 30 and 39 minutes for existing patients and between 45 and 59 minutes for new patients, even though Elfenbein knew that the visits lasted five minutes or less. Further, the indictment alleges that Elfenbein, through Drs ERgent Care, submitted or caused the submission of claims totaling more than $1.5 million to Medicare and other insurers for office visits that were not provided as represented and were ineligible for reimbursement.
“It is unconscionable that this defendant sought to line his own pockets during a global pandemic by grossly overbilling Medicare and other insurers for these vital healthcare services during a time of national crisis,” said FBI Special Agent in Charge Thomas J. Sobocinski. “If the allegations against Dr. Elfenbein, and the 17 others that were charged today are proven, they should be ashamed of their conduct and will be held accountable for their criminal actions.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by Centers for Medicare & Medicaid Services (CMS) to enable increased access to care during the COVID-19 pandemic.
“The attempt to profit from the COVID-19 pandemic by targeting beneficiaries and stealing from federal health care programs is unconscionable,” said Inspector General Christi A. Grimm of the Department of Health and Human Services (HHS). “HHS-OIG is proud to work alongside our law enforcement partners at the federal and state level to ensure that bad actors who perpetrate egregious and harmful crimes are held accountable.”
“The OPM OIG has no tolerance for providers that profit off of the COVID-19 pandemic by defrauding the federal health care programs,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “We are grateful to work with our law enforcement partners to hold the wrongdoers accountable for their flagrant fraud schemes.”
Today’s announcement also includes charges brought against two additional defendants for schemes targeting the Provider Relief Fund (PRF). The PRF is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 that provided financial assistance to medical providers to provide needed medical care to Americans suffering from COVID-19. In total, 10 defendants have been charged with crimes related to misappropriating monies intended for frontline medical providers and three have pleaded guilty.
The law enforcement action also includes charges against manufacturers and distributors of fake COVID-19 vaccination record cards, who intentionally sought to obstruct the HHS and Centers for Disease Control and Prevention in their efforts to administer the nationwide vaccination program and provide Americans with accurate proof of vaccination. While not part of today’s announcement, in Maryland a federal criminal complaint was previously filed charging Amar Salim Shabazz, age 23, of Owings Mills, Maryland, for mail fraud and obstruction of justice in connection with his alleged distribution of fraudulent COVID-19 vaccination cards.
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it has taken an additional 28 administrative actions against providers for their alleged involvement in fraud, waste and abuse schemes related to the delivery of care for COVID-19, as well as schemes that capitalize upon the Public Health Emergency.
“We are committed to working closely with our law enforcement partners to combat fraud, waste and abuse in our federal health care programs,” said CMS Administrator Chiquita Brooks-LaSure. “The administrative actions CMS has taken protect the Medicare Trust Funds while also safeguarding people enrolled in Medicare.”
Today’s 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, prosecuted these cases. Descriptions of each case involved in today’s enforcement action are available on the department’s website at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit/case-summaries.
The SF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI, and HHS-OIG. In addition, 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 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 law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
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 HHS Centers for Medicare and Medicaid Services, 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.
If convicted, Elfenbein faces a maximum sentence of 10 years in federal prison for each of the three counts of healthcare fraud and Shabazz faces a maximum sentence of 20 years’ incarceration each for mail fraud and for obstruction of justice. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the HHS-OIG, DCIS, the FBI, and OPM-OIG for their work in the Elfenbein investigation and thanked Assistant U.S. Attorney Matthew P. Phelps and Trial Attorney D. Keith Clouser of the Justice Department’s Fraud Section, who are prosecuting the case. United States Attorney Barron also commended HSI, USPIS, HHS-OIG, and the Baltimore County Police Department for their work in the Shabazz investigation and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are prosecuting that 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.
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Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
TULSA, Okla. – A Tulsa man’s trial was set to begin when he pleaded guilty Tuesday for assaulting and strangling a woman, announced U.S. Attorney Clint Johnson.
Vernon Jenedia Neel, 42, pleaded guilty to assault resulting in serious bodily injury in Indian Country. If the plea agreement is accepted by U.S. District Judge Gregory K. Frizzell, Neel will serve between eight and 10 years in federal prison. Neel will be sentenced at a later date.
“The U.S. Attorney’s Office will not tolerate acts of criminal violence,” said U.S. Attorney Clint Johnson. “Vernon Neel has been held responsible for the harm he caused to this victim thanks to the work of Assistant U.S. Attorneys Stacey Todd, Vani Singhal and Gina Gilmore and our partners at the Tulsa Police Department and FBI.”
During the early morning hours of July 3, 2021, the Defendant assaulted the victim by striking her repeatedly with his fists and strangling her. The victim sustained serious injuries including a broken nose, a severed lip requiring stitches, a concussion and multiple bruises and abrasions. Neel ran off with her phone so she could not call for help.
Neel also has multiple felony convictions including for domestic violence and violating a protective order.
The Tulsa Police Department and the FBI conducted the investigation. Assistant U.S. Attorneys Stacey P. Todd, Vani Singhal and Gina S. Gilmore are prosecuting the case.
Man Charged with Defrauding Customers Who Sought to Buy Cryptocurrency-Mining Computers and Miner-Hosting ServicesRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, New York Division of the Federal Bureau of Investigation (“FBI”), announced the arrest today of CHET STOJANOVICH, a/k/a “Chester J. Stojanovich,” on charges of defrauding more than a dozen victims of more than $1.8 million, through fraudulent misrepresentations that he would provide the victims with specialized cryptocurrency-mining computers (“Miners”), and that he would provide Miner-hosting services that would provide the victims with a lucrative stream of “hash power” convertible into cryptocurrency. Instead, as alleged, STOJANOVICH deceived his victims, misappropriated his victims’ money, and provided them with almost no Miners, Miner-hosting services, or hash power. The defendant was arrested early this morning after crossing from Canada into the United States at Champlain, New York. He is expected to appear tomorrow before U.S. Magistrate Judge Stewart D. Aaron in the Southern District of New York.
U.S. Attorney Damian Williams said: “A great deal of excitement and ‘buzz’ has been generated in recent years about the ‘new world’ of cryptocurrency mining. But new financial frontiers can also generate fresh opportunities for old-fashioned fraud. Here, Chet Stojanovich is charged with using those time-worn fraud techniques on a new frontier.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, Mr. Stojanovich induced his victims to invest in his fraudulent cryptocurrency mining schemes, and caused them to incur losses approaching $2 million. Today's action should serve as an example of the FBI's commitment to rooting out financial fraud, as well as our focus on identifying and investigating emerging threats as they evolve.”
According to the allegations contained in the Complaint, and publicly available information:[1]
Since at least 2019, STOJANOVICH has controlled various companies, including Chet Mining Co. LLC (“Chet Mining”). Starting in or about March 2019, STOJANOVICH engaged in a scheme to defraud people who were seeking to purchase Miners and Miner-hosting services through which they expected to obtain “hash power” convertible into cryptocurrency and money. STOJANOVICH defrauded these victims by falsely telling them that: (1) he would purchase, and had purchased, Miners on their behalf; and (2) he would provide them with Miner-hosting services and had already obtained such Miner-hosting services for them. In fact, STOJANOVICH failed to deliver the promised Miners and Miner-hosting services.
In all, STOJANOVICH induced more than a dozen customer-victims to pay a total of more than $1.84 million to STOJANOVICH and his companies, ostensibly in return for Miners and Miner-hosting services. Despite fraudulent representations to the contrary, STOJANOVICH: (1) failed to provide many of the Miners that he told customers he had acquired; (2) failed to provide the hosting services and cryptocurrency hash power that he represented that he would provide; (3) employed deceptive practices to create the illusion that such Miners had been acquired and were being used to provide hash power to those customers; and (4) misappropriated his customers’ funds and spent the funds on unrelated and personal expenditures, including by spending a substantial portion those funds on personal expenses, including chartered air flights, hotel rooms, limousines, and private parties.
Defrauding at Least 10 Victims in 2019
In the spring and early summer of 2019, STOJANOVICH fraudulently induced at least 10 customers to pay a total of more than $1.66 million to STOJANOVICH and Chet Mining, in return for Miners and Miner-hosting services. Between March and July 2019, based on these and other misrepresentations, STOJANOVICH issued at least 15 invoices to these 10 victims, with instructions to make payment to STOJANOVICH or one of his companies. As directed by STOJANOVICH, these 10 customers paid STOJANOVICH a total of approximately $1,618,000 in bank wires and cryptocurrency transfers. However, STOJANOVICH failed to provide the Miners and Miner-hosting services that he had agreed to provide and for which he had been paid.
Defrauding 3 More Victims in 2021
In or about August and September 2021, STOJANOVICH induced at least three additional customer-victims to pay him a total of approximately $179,880, as payment for a total of 127 Miners. Ultimately, STOJANOVICH provided those customers with only 3 of the 127 Miners they had paid for and repaid those customers only approximately $61,000 of the $179,880 they had paid.
The March 2022 Deposition
Several of the victims of the scheme described in the Complaint brought lawsuits against STOJANOVICH in federal court in Manhattan. In one such lawsuit, Holmes et al. v. Chet Mining, Chet Stojanovich, et ano., Case No. 1:20-CV-04448-LJL (S.D.N.Y.), STOJANOVICH was ordered by the court to appear for a deposition on March 4, 2022. During that deposition, STOJANOVICH testified falsely on a number of subjects. For example, in response to several questions, STOJANOVICH testified that he did not know the answers without looking in his personal cellphone, and falsely testified that his phone was downstairs in his rental car or in storage. The deposition was thereupon adjourned for a half-hour, and STOJANOVICH was instructed to retrieve his cellphone and return to the deposition. Instead, STOJANOVICH left the deposition and loitered in the vicinity of his car until after everyone else participating in the deposition had left. Shortly thereafter, he returned to Canada, where he has been residing in recent weeks.
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STOJANOVICH, 37, previously of Manhattan but in recent months apparently residing in Canada, is charged with one count of wire fraud, which carries a maximum penalty of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI for its assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Macy Man Sentenced for RobberyRead the Press Release
United States Attorney Jan Sharp announced that Andres Runningshield, 20, of Macy, Nebraska, was sentenced today in federal court for two counts of robbery. The Honorable Brian C. Buescher, sentenced Runningshield to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Runningshield will serve 3 years of supervised release. Co-Defendant Tariq Thomas is scheduled to be sentenced on June 30, 2022.
In March 2021, officers with the Omaha National Law Enforcement Services responded to a residence in Macy, Nebraska, on a report of a fight. Officers contacted the victims who advised that they had given two men a ride from Sioux City, Iowa, back to Macy, Nebraska, and when they arrived at the residence, the men assaulted them and robbed them at knifepoint, taking a cell phone and the keys to the vehicle. Witnesses identified the robbers as Runningshield and Thomas.
This case was investigated by the Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
MS-13 Gang Member Sentenced to 50 Years in Federal Prison for a Racketeering Conspiracy Involving Multiple MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar yesterday sentenced Jose Joya Parada, a/k/a “Calmado,” age 20, to 50 years in federal prison, followed by three years of supervised release, for a racketeering conspiracy, racketeering, and related violent crimes in aid of racketeering, connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13. On January 24, 2022, a federal jury convicted Joya Parada, along with Milton Portillo-Rodriguez, a/k/a “Little Gangster,” age 26; Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro,” age 22; and Oscar Armando Sorto Romero, a/k/a “Lobo,” age 22; on those charges after a three-month trial. Portillo-Rodriguez, Sandoval-Rodriguez, and Sorto Romero were each also convicted of multiple counts of murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations, Baltimore Office; Chief Jason Lando of the Frederick City Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal E. Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Malik Aziz of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. The defendants were members of the Fulton Locos Salvatruchas (“FLS”) and Parque Vista (“PVLS”) cliques.
The evidence at the three-month trial established that between 2015 and 2017, the defendants engaged in drug trafficking, extortion, and brutal acts of violence against suspected rivals of the gang in an effort to increase MS-13’s power in the Frederick County, Montgomery County, and Anne Arundel County areas of Maryland.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
As detailed during the trial, from 2015 through 2017, the Fulton clique of MS-13 sought to increase its presence in Frederick, Wheaton, and Annapolis, Maryland through numerous acts of violence, extortion, and drug sales. Joya Parada was a member of the Fulton clique of MS-13. Trial evidence related to Joya Parada focused on his participation in two grisly murders of individuals suspected of association with rival gang members carried out in 2017. First, on March 31, 2017, the gang lured a 17-year old from Annapolis to Wheaton Regional Park, where they stabbed him over 100 times, dismembered him, removed his heart, and buried him in a clandestine grave. Specifically, Joya Parada arrived at Wheaton Regional Park with other MS-13 members to dig the grave before the victim arrived there and participated in the murder by stabbing, cutting, and dismembering the victim.
Two days later, the gang kidnapped another individual from Silver Spring, Maryland and brought him to a wooded area in Frederick, where he was killed with knives and machetes before being buried in a shallow grave. Before being taken to Frederick, the victim, who was extremely intoxicated, was held in a basement laundry room in Wheaton, Maryland by members and associates of MS-13, including by Joya Parada. Inside the laundry room, the victim was forced to remove his shirt so that gang members could examine his tattoos to satisfy themselves that the victim was associated with a rival gang and should therefore be killed.
Co-defendant Sorto Romero and others went to the laundry room where the victim was being held, and they placed him in the backseat of a car in which Sorto Romero was a passenger. In the meantime, Joya Parada and other members of MS-13 went to the woods in Frederick with weapons and a shovel to dig a grave and to wait for the victim’s arrival. Sorto Romero eventually arrived with the victim, delivering the victim to other members of MS-13 who were waiting, including Joya Parada. A member of MS-13 incapacitated the victim by hitting him in the head with a tree branch. Joya Parada and others then dragged the victim through the woods to the hole they had dug for the victim’s grave. They placed the victim face down on the ground next to the hole and stabbed and slashed his body repeatedly with a machete. Joya Parada personally participated in this murder not only by slashing the victim with the long edge of the machete blade, but also by plunging the point of the machete into the victim’s back numerous times. The victim died as a result of the blunt force trauma, stabbing, cutting, and chopping inflicted by Joya Parada and his co-conspirators.
Based on his participation in this murder, Joya Parada earned the new nickname “Little Jason,” a reference to a character from a horror movie franchise who used a machete to kill his victims.
According to trial evidence, these murders were all intended to maintain and increase the status of MS-13, as well as allow individual MS-13 members to maintain or increase their status within the gang.
More than 30 MS-13 members and associates have been convicted in this and a related case.
Portillo-Rodriguez, Sandoval-Rodriguez, and Sorto Romero each face a mandatory sentence of life in prison for each of the murder in aid of racketeering charges. Chief Judge Bredar has scheduled sentencing for Sorto Romero for May 6, 2022, at 10 a.m.; for Portillo Rodriguez for May 13, 2022, at 10 a.m.; and for Sandoval Rodriguez for May 23, 2022, at 3:30 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron commended the FBI; HSI; the Frederick Police Department; the Frederick County Sheriff’s Office; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and the Baltimore County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark, Zachary Stendig, and Anatoly Smolkin, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Louisiana Man Sentenced to 46 Months in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Natchez, Miss. – Jordan Rashard Thomas, 24, of Vidalia, Louisiana, was sentenced to 46 months in prison for possessing a firearm after having been previously convicted of felony crimes, announced U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Jackson Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on April 12, 2020, Adams County Sheriff’s deputies stopped a car for a traffic violation. Due to the odor of marijuana coming from the car, deputies asked the occupants to step out of the car. The passenger was identified as Jordan Rashard Thomas who possessed a firearm concealed in his waistband under his sweatshirt. Thomas had previously been twice convicted of burglary and convicted of possession with intent to distribute controlled substances in Concordia Parish, Louisiana.
Thomas pled guilty on January 11, 2022, to being a felon in possession of a firearm.
The Adams County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted 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.
Longtime Employee of a Harford County, Maryland Manufacturer Pleads Guilty to Participating in a $20 Million Kickback SchemeRead the Press Release
Baltimore, Maryland – Elliott Dennis Kleinman, age 68, of Bel Air, Maryland, pleaded guilty today to conspiracy to commit wire fraud and tax evasion, in connection with a kickback scheme that defrauded his employer of more than $20 million.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his guilty plea, Kleinman was a longtime employee of Company 1, a family-owned global business headquartered in New York, but with manufacturing facilities in Belcamp and Abingdon, Maryland, both in Harford County. Beginning in 2012, Kleinman and another employee (Employee 1) began to use their management positions at Company 1 to execute a fraudulent billing scheme whereby they would get illegal kickbacks from various drum vendors doing business with Company 1, which used drums to store and transport its products. As the facility managers, Kleinman and Employee 1 oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities. They also had authority to review drum invoices and authorize payments to the drum vendors.
Anthony P. Urcioli, Sr., is the owner and President of Tunnel, Barrel & Drum Co, Inc. (TBD), located in Carlstadt, New Jersey, and of another drum supply company called Hartford Fibre Drum, Inc. ( Hartford), both of which did business with Company 1. After TBD became a drum supplier to Company 1, Kleinman and Employee 1 entered into arrangement with Urcioli whereby TBD could continue selling drums to Company 1 if Urcioli agreed to fraudulently invoice Company 1 for more drums than TBD actually sold and delivered to the company. If Urcioli agreed to falsify its invoices in this way, Employee 1 and Kleinman said that they and TBD could split the extra money Company 1 paid TBD for the made-up drum deliveries 50/50. Employee 1 told Urcioli that he would split his share of the kickbacks with Elliot Kleinman 75/25. Urcioli agreed to participate in the false billing scheme.
From approximately January 2012 to January 31, 2020, Employee 1 contacted Urcioli at least once a week to discuss the number and type of drums that Employee 1 actually wanted delivered to Company 1’s Maryland facilities. During the same conversation, Employee 1 told Urcioli how many additional drums to charge, but not deliver, to Company 1. After Urcioli created the invoices that fraudulently billed Company 1 for both delivered and undelivered drums, Employee 1 approved the invoices and sent them to Company 1’s headquarters to be paid.
In addition, Urcioli would create a handwritten purchase order ticket that summarized the breakdown of actual and bogus drum orders and how the kickback amounts were calculated. Urcioli would put a copy of the purchase order ticket in an envelope along with Employee 1’s and Kleinman’s share of the kickback amount payable via checks from TBD and Hartford, and then send the envelope to their personal residences in Harford County, Maryland. In December 2013, Urcioli told Employee 1 about Hartford, the other drum supply company Urcioli owned. After receiving records that proved that Hartford was a legitimate company, Employee 1 and Urcioli agreed to expand the kickback scheme to include Hartford.
Urcioli wanted to pay the kickbacks to Kleinman and Employee 1 by check so the payments would look like payments to drum wholesalers and be deductible as a cost of goods sold on TBD’s tax returns. Kleinman advised that he wanted his kickback checks payable to a company he formed called “EDK Management, LTD.” Urcioli agreed, and in addition to making the kickback checks drawn on TBD and Hartford accounts payable to that company, Urcioli wrote the word “drums” on the checks to further the pretense of legitimate purchases.
Between January 2012 and January 31, 2020, Urcioli falsely invoiced Company 1 a total of $20,300,757. TBD and Hartford kept half that amount while the remaining funds were sent to Employee 1 and Kleinman. Kleinman’s share of the kickbacks was approximately $2,307,121. Kleinman opened and maintained two commercial bank accounts for EDK, one in the name of “EDK Management Ltd,” and the other in the name of “EDK Management Ltd t/a Main Street Cigars,” a retail store he owns, located in Bel Air, Maryland. Kleinman deposited the drum vendor’s checks into EDK’s business account, where it was withdrawn as cash, spent on personal expenses, or transferred to the bank account for Main Street Cigars.
For the period of 2017 through 2019, TBD paid Kleinman a total of approximately $1,034,911 in kickbacks for his role in the fraudulent billing scheme. Kleinman’s 2017 through 2019 income tax returns filed with the IRS did not report those kickback payments as personal or business income, resulting in a loss to the U.S. government of approximately $291,143.
Kleinman faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a maximum of five years in federal prison for tax evasion. U.S. District Judge Lydia Kay Griggsby has not yet scheduled sentencing.
Anthony P. Urcioli, Sr., age 78, of Park Ridge, New Jersey, previously pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for his role in the scheme and is awaiting sentencing.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Long Island Medical Doctor Charged as Part of COVID-19 Health Care Fraud Enforcement ActionRead the Press Release
An indictment was returned yesterday in Central Islip charging Dr. Perry Frankel with three counts of health care fraud for an alleged scheme to defraud Medicare and Medicaid of over $1.3 million in claims that were billed during the COVID-19 health emergency in connection with COVID-19 testing. Frankel, a cardiologist and the owner and operator of Advanced Cardiovascular Diagnostics PLLC, allegedly caused the submission of claims to Medicare and Medicaid for office visits that were not performed for patients who received COVID-19 tests at Advanced Cardiovascular Diagnostics PLLC’s mobile testing sites across Long Island, including on dates when Frankel was not present in the state of New York. Frankel was arrested this morning and will be arraigned this afternoon before United States District Judge Joanna Seybert.
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; and 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), announced the charges.
“As alleged, exploiting a public health crisis by using patients who received COVID-19 tests at mobile testing sites to fraudulently bill Medicare and Medicaid for fictitious office visits is reprehensible,” stated United States Attorney Peace. “This Office and our law enforcement partners will vigorously prosecute those who take advantage of the pandemic to steal from taxpayer-funded programs."
“As alleged, Frankel took advantage of the COVID-19 health crisis to engage in a fraud scheme that undermined our health care system and the people it serves,” said HHS-OIG Special Agent in Charge Lampert. “Such scams waste taxpayer funds and drive up healthcare costs for all of us. HHS-OIG and our law enforcement partners will remain vigilant in our efforts to root out all related fraud schemes during the ongoing public health emergency.”
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” said Assistant Attorney General Polite. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
The charges filed in Central Islip are part of a coordinated health care fraud enforcement action across nine federal districts, led by the Medicare Fraud Strike Force, that resulted in criminal charges against 21 defendants for their alleged participation in health care fraud schemes related to COVID-19 involving more than $149 million in false and fraudulent claims.
HHS-OIG is investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Kelly M. Lyons and Patrick J. Campbell of the 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.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The Defendant:
PERRY FRANKEL
Age: 64
Roslyn, New YorkE.D.N.Y. Docket No. 22-CR-180
Local man sentenced for possessing pornography featuring young childrenRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Corpus Christi resident has been ordered to federal prison for possessing nearly 1300 images of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Camden Chase Plumb pleaded guilty Oct. 5, 2021.
Today, U.S. District Court Judge Drew B. Tipton ordered Plumb serve a total of 190 months in federal prison. The court considered victim impact statements and took into account Plumb’s previous state conviction for indecency with a minor in determining his sentence. Plumb will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and pay $15,000 in restitution to victims.
In June 2017, authorities learned Plumb had sexually abused a minor. The investigation led to the seizure of his cell phone and a computer he had used. Forensic analysis of the devices resulted in the discovery of 1,058 images of child pornography on his cell phone, and 113 videos and 230 images of child pornography on the computer. Both devices included images depicting prepubescent children being sexually exploited.
Homeland Security Investigations conducted the investigation with the assistance of the FBI and Corpus Christi Police Department.
Assistant U.S. Attorneys Dennis E. Robinson and Molly K. Smith prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Lawrence Man Sentenced to over Five Years in Prison for Fentanyl and Firearm OffensesRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for drug trafficking activities involving fentanyl and illegal possession of a firearm and ammunition.
Jose Martinez, 26, was sentenced by U.S. District Court Judge Richard G. Sterns to 66 months in prison and four years of supervised release. On Aug. 31, 2021, Martinez pleaded guilty to one count of possession with intent to distribute fentanyl and two counts of being a felon in possession of a firearm and ammunition.
Martinez was charged as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
In the spring of 2019, federal agents began an investigation into a drug trafficking organization (DTO) in the Lawrence area. Between April and June 2019, federal agents made five controlled purchases of fentanyl from the DTO. Each purchase took place near Martinez’s residence and the fentanyl was delivered by Martinez’s co-defendant, Ronyel Pena. Immediately following the transactions, Pena was observed going directly to Martinez’s home.
Following a controlled purchase in June 2019, agents arrested Pena and approached Martinez’s residence. After knocking and hearing movement inside, agents forced entry out of concern for potential destruction of evidence. As agents entered, Martinez attempted to flee out of a window but was detained at the perimeter of the property. A search of the home revealed a loaded Kel Tec .566 semi-automatic rifle caliber pistol, a Glock 26 handgun, as well as additional ammunition, a bullet proof vest, an attachment for a firearm and gun oil. Law enforcement also found two large plastic bags containing empty capsules, a tray to fill pill capsules, several wet plastic bags in the trash can that contained a white residue, a bottle of lactose and several plastic bags, a digital scale, a money counter, a large quantity of cash and multiple cellphones. In the bathroom, agents found hundreds of empty green pill capsules and a smashed cell phone in the sink and observed that the toilet water was green, similar in color to the pill capsule – indicating that Martinez had destroyed evidence by flushing fentanyl down the toilet and smashing cell phones.
In May 2021, Pena was sentenced to one year and one day in prison and four years of supervised release.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. The Massachusetts State Police and the Lawrence Police Department assisted in this investigation. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Laurel Man Sentenced to over 15 Years in Federal Prison for Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Kyle Elio Ripper, age 25, of Laurel, Maryland, yesterday to 188 months in federal prison, followed by 25 years of supervised release, for enticement of a minor to engage in illegal sexual activity, specifically, production of child pornography. Judge Gallagher also ordered Ripper to pay $36,000 in restitution to his victims.
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 Sheriff Joseph Gamble of the Talbot County Sheriff’s Office.
According to Ripper’s guilty plea, on January 17, 2020, the Talbot County Sheriff’s Office initiated an investigation after discovering evidence that an adult male had sexual contact with a 14-year-old male (Minor Victim 1).
As detailed in his plea agreement, on March 10, 2020, law enforcement executed search warrants at Ripper’s residence and on his vehicle and seized several electronic devices, including a laptop containing a 500 GB internal hard disk drive, a 2 TB external hard drive, and a cell phone. Upon further investigation and review of Ripper’s phone, investigators discovered that Ripper had communicated with minors via the internet and engaged in sexual relations with at least two minor victims.
Specifically, a forensic review of Ripper’s cell phone revealed that on December 28, 2019, Ripper engaged in a sexually explicit conversation with Minor Victim 1 in which Ripper requested Minor Victim 1 to send Ripper an image of Minor Victim 1’s genitals. Ripper also asked to film a sexual encounter with the victim. Ripper traveled to the victim’s residence, engaged in sexual relations with the minor victim, and made videos documenting the sexual encounter on his cell phone. Additional evidence from Ripper’s cell phone revealed that in January 2020, Ripper also communicated with a 16-year-old male victim (Minor Victim 2). During their communications, Ripper requested, and received, at least one sexually explicit image of Minor Victim 2. According to communications on Ripper’s phone, Ripper traveled to Minor Victim 2’s residence in Baltimore to pick up the victim, and then took the victim to Ripper’s residence in Anne Arundel County, Maryland. Ripper then engaged in sexual acts with Minor Victim 2 and produced a video documenting his sexually explicit conduct with Minor Victim 2 using his cell phone.
Additionally, a forensic review of Ripper’s hard drives and laptop revealed thousands of images and videos depicting the sexual abuse of children. For example, Ripper’s computer contained over 4,000 images and videos of child pornography, including a nine-minute video depicting the sexual abuse of a female toddler and multiple videos depicting the sexual abuse of an infant.
Ripper admitted that he knew Minor Victim 1 was 14-years-old before he engaged in sexual acts with the victim and Ripper admitted that he drove to the minor’s residence to engage in sexual relations with Minor Victim 1 on two occasions. Ripper also admitted to having sex with Minor Victim 2.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI and the Talbot Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine L. Duey and Abigail Ticse, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Kingpin and All Members of Birmingham-Based Continuing Criminal Enterprise Convicted of Conspiracy to Distribute Methamphetamine, Heroin, Fentanyl, and Cocaine ConspiracyRead the Press Release
BIRMINGHAM – A federal jury on Monday convicted a Bessemer man charged under the “Kingpin” statute, and three other defendants, on charges of operating a continuing criminal enterprise involved in the large-scale distribution of illegal drugs, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and Internal Revenue Service Criminal Investigation (IRS-CI) Atlanta Field Office Special Agent in Charge James E. Dorsey.
After a week-long trial before United States District Court Judge Annmarie C. Axon a jury convicted Rolando Antuain Williamson, also known as “Baldhead” and “Ball Head,” 37, of Bessemer, Alabama, of leading a multi-million dollar continuing criminal enterprise. Williamson, Adrien Hiram Taylor, also known as “Slim,” 34, of Bessemer, Alabama, Ishmywel Calid Gregory, also known as “C,” 38, of Mulga, Alabama, and Hendarius Lamar Archie, also known as “Hen,” 33, of Bessemer, Alabama, were convicted of conspiring to distribute and possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Williamson, Taylor, Gregory, and Archie were all convicted of distributing or possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Williamson and Archie were convicted of using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime. Williamson and Taylor were convicted of several counts of using a communication facility to commit a drug trafficking crime.
With today’s verdict, all 18 people charged in the indictment returned on October 29, 2019, have now been convicted. The convictions were the result of a three-year investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of this West Jefferson County-based drug-trafficking enterprise. The investigation identified acts committed in furtherance of the conspiracy over a period of six years. Prior to the trial, 14 of the charged defendants pleaded guilty. Seven members of the criminal enterprise have been sentenced and the remaining defendants await sentencing.
The OCDETF agencies involved in this investigation are the FBI, IRS, member agencies of the FBI North Alabama Safe Streets Task Force, Bessemer Police Department, and the Jefferson County Sheriff’s Department.
The North Alabama Safe Streets Task Force arrested Williamson the morning of August 22, 2019, in the parking lot of a grocery store located in Homewood, Alabama. Williamson was driving a 2016 Dodge Hellcat worth $80,000. At the time of arrest, Williamson was found to be in possession of two loaded pistols (with additional loaded magazines) and almost $14,000 in cash. All other members of the conspiracy were arrested on or about November 13, 2019.
At the time of Williamson’s arrest law enforcement officers also seized from Williamson and three of his stash houses, 366 grams of heroin/fentanyl, 109 grams of suspected cocaine, 573 grams of pure methamphetamine, 52 kilos of marijuana, over $97,000 in cash, multiple firearms, and over 1700 rounds of ammunition.
“This verdict should send a message to those engaged in violent crime and distribution of deadly drugs in our communities,” U.S. Attorney Escalona said. “The investigation and prosecution of violent crime continues to be our highest priority. I commend our law enforcement partners for their tireless efforts to ensure these defendants were brought to justice.”
“Removing this “kingpin” and the dangerous drugs he and his criminal enterprise peddled will no doubt save lives and families from the pain of addiction,” SAC Sharp said. “This sentence reflects the severity of Williamsons actions, and he will have decades in prison to consider the impact of his decisions. This case highlights the joint commitment, dedication, and partnership between our law enforcement partners in combatting drug trafficking in our community.”
“Jefferson County Sheriff’s Deputies assigned to the FBI Safe Streets Task Force, worked in conjunction with the FBI and other participating agencies during this 3-year investigation,” Sheriff Pettway said. “The illegal drug trade ruins hundreds of lives in Jefferson County every year. We are proud to have been a part of disrupting the trade and distribution of these illegal narcotics in western Jefferson County. Working in unison with our fellow local and federal agencies, we are able to share and act on critical intelligence that is imperative to shutting down these type operations. This case is an example of how these agencies working together successfully disrupted a large-scale drug operation. We look forward to continuing these invaluable partnerships against crime.”
As, a convicted “Kingpin,” Williamson faces a mandatory sentence of life in prison. Taylor faces a mandatory minimum sentence of twenty-five years to life in prison. Gregory faces a maximum of thirty years in prison. Archie faces a mandatory minimum sentence of five years to forty years in prison.
Forfeiture was obtained for two high-end vehicles of Williamson: a $46,000 Ford F-250 “King’s Ranch” and a $37,000 Cadillac Escalade; over $100,000 dollars in cash; $45, 000 in jewelry; and all firearms and ammunition used to facilitate the drug trafficking enterprise.
The Federal Bureau of Investigation, and Internal Revenue Service, investigated the case along with the Jefferson County Sheriff’s Office and Bessemer Police Department. Assistant U.S. Attorneys Jonathan S. Cross and Gregory R. Dimler are prosecuting the case.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
Kentucky Man Pleads Guilty to Defrauding Homeowners in Three StatesRead the Press Release
CHARLESTON, W.Va. – A Kentucky man pleaded guilty today to wire fraud after accepting payments for building projects he never intended to do.
According to court documents, William T. Hurst, 44, of Morehead, Kentucky, admitted he agreed to build pole barns for a pair of residents in Putnam and Jackson counties in March 2021, receiving checks totaling $10,186 as down payments. Hurst admitted he never intended to build either barn, and instead cashed or deposited the checks at area banks for his personal use.
Hurst further admitted to similarly scamming six other property owners in Ona and Lesage, Cabell County; Charleston, Kanawha County; Coolville and Willow Wood, Ohio; and South Shore, Kentucky, all between February 22, 2021, and March 23, 2021. In each instance, Hurst agreed to build a pole barn or other structure but never began any work or bought any needed supplies. These residents together had paid Hurst $25,032, which he kept for himself. Hurst eventually stopped communicating with the victims.
Hurst admitted to receiving a total of $35,218 as a result of his fraudulent representations, and pleaded guilty to two counts of wire fraud. He is scheduled to be sentenced on July 28, 2022, and faces up to 40 years in prison.
United States Attorney Will Thompson made the announcement. The Kanawha County Sheriff’s Office and the Federal Bureau of Investigation (FBI) conducted the investigation. The Cabell County Sheriff’s Department and the West Virginia Department of Revenue also provided assistance with the investigation.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-41.
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Justice Department Finds Conditions at Mississippi State Penitentiary Violate the ConstitutionRead the Press Release
The Justice Department concluded today, based upon a thorough investigation, that there is reasonable cause to believe that conditions and practices at the Mississippi State Penitentiary (also known as Parchman) violate the Eighth and Fourteenth Amendments to the U.S. Constitution. Assistant Attorney General Kristen Clarke of the Civil Rights Division, U.S. Attorney Clay Joyner for the Northern District of Mississippi and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.
Specifically, the department concluded that there is reasonable cause to believe Mississippi routinely violates the constitutional rights of people incarcerated at Parchman by:
- failing to provide adequate mental health treatment to people with serious mental health needs;
- failing to take sufficient suicide prevention measures to protect people at risk of self-harm;
- subjecting people to prolonged isolation in solitary confinement in egregious conditions that place their physical and mental health at substantial risk of serious harm; and
- failing to protect incarcerated people from violence at the hands of other incarcerated people.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department provided the state of Mississippi with written notice of the supporting facts for these findings and the minimum remedial measures necessary to address them in a comprehensive 59-page findings letter.
“The Constitution guarantees that all people incarcerated in jails and prisons are treated humanely, that reasonable measures are taken to keep them safe, and that they receive necessary mental health care, treatment, and services to address their needs,” said Assistant Attorney General Clarke. “Our investigation uncovered evidence of systemic violations that have generated a violent and unsafe environment for people incarcerated at Parchman. We are committed to taking action that will ensure the safety of all people held at Parchman and other state prison facilities. We look forward to working with state officials to institute comprehensive reforms.”
“Prisons have a constitutional obligation to keep safe the incarcerated persons who depend on them for their basic needs,” said U.S. Attorney Joyner. “Mississippi violated the rights of persons incarcerated at Parchman by failing to keep them safe from physical violence and for failing to provide constitutionally adequate mental health care and that people confined to Parchman experience serious physical and psychological harm as a result. Our office is dedicated to defending the civil rights of all our district’s residents, including those who are incarcerated. We look forward to continuing to work with the Mississippi Department of Corrections to protect the civil rights of those incarcerated at Parchman.”
“The action taken today by the Department of Justice will ensure that the Mississippi State Penitentiary at Parchman fulfills its constitutional obligations,” said U.S. Attorney LaMarca. “Those obligations extend to reasonable efforts to provide basic mental health care, prevent violence between incarcerated persons and prevent suicides. Those who owe a debt to society should have these basic needs while paying that debt. We are committed to working with state officials to ensure that the State of Mississippi abides by its constitutional obligations.”
The department’s investigation began in February 2020. Our investigation of conditions at Southern Mississippi Correctional Institution, Central Mississippi Correctional Facility, and Wilkinson County Correctional Facility is ongoing. Individuals with relevant information are encouraged to contact the department by phone at (833) 591-0288, or by email at [email protected].
For more information about the Civil Rights Division and the Special Litigation Section, please visit https://www.justice.gov/crt/special-litigation-section.
Additional information about the Northern and Southern U.S. Attorneys’ Offices is available at: https://www.justice.gov/usao-ndms and https://www.justice.gov/usao-sdms. You can contact the Northern District’s Civil Division at (662) 234-3318, and the Southern District at (601) 965-4480. You can also report civil rights violations to the Section by completing the complaint form available at https://civilrights.justice.gov/.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care-Related COVID-19 FraudRead the Press Release
The Department of Justice today 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,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
“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,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs.”
This 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. For example, several cases announced today involve defendants who allegedly offered COVID-19 testing to induce patients to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then used the information and samples to submit false and fraudulent claims to Medicare for unrelated, medically unnecessary, and far more expensive tests or services. In one such scheme in the Central District of California, two owners of a clinical laboratory were charged with a health care fraud, kickback, and money laundering scheme that involved the fraudulent billing of over $214 million for laboratory tests, over $125 million of which allegedly involved fraudulent claims during the pandemic for COVID-19 and respiratory pathogen tests. The proceeds of this fraudulent scheme were allegedly laundered through shell corporations in the United States, transferred to foreign countries, and used to purchase real estate and luxury items. In two separate cases in the District of Maryland and the Eastern District of New York, owners of medical clinics allegedly obtained confidential information from patients seeking COVID-19 testing at drive-thru testing sites and then submitted fraudulent claims for lengthy office visits with the patients that did not, in fact, occur.
“Throughout the pandemic, we have seen trusted medical professionals orchestrate and carry out egregious crimes against their patients all for financial gain,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These health care fraud abuses erode the integrity and trust patients have with those in the health care industry, particularly during a vulnerable and worrisome time for many individuals. The actions of these criminals are unacceptable, and the FBI, working in coordination with our law enforcement partners, will continue to investigate and pursue those who exploit the integrity of the health care industry for profit.”
In another type of COVID-19 health care fraud scheme announced today, defendants allegedly exploited policies that the Centers for Medicare and Medicaid Services (CMS) put in place to enable increased access to care during the COVID-19 pandemic. For example, in the Southern District of Florida, one medical professional was charged with a health care fraud, wire fraud, and kickback scheme that allegedly involved billing for sham telemedicine encounters that did not occur and agreeing to order unnecessary genetic testing in exchange for access to telehealth patients. Late last year, one defendant previously was sentenced to 82 months in prison in connection with this scheme.
“The attempt to profit from the COVID-19 pandemic by targeting beneficiaries and stealing from federal health care programs is unconscionable,” said Inspector General Christi A. Grimm of the Department of Health and Human Services (HHS). “HHS-OIG is proud to work alongside our law enforcement partners at the federal and state levels to ensure that bad actors who perpetrate egregious and harmful crimes are held accountable.”
Today’s announcement includes charges against two additional defendants for schemes targeting the Provider Relief Fund (PRF). The PRF is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 that provided financial assistance to medical providers to provide needed medical care to Americans suffering from COVID-19. In total, 10 defendants have been charged with crimes related to misappropriating PRF monies intended for frontline medical providers and three have pleaded guilty.
Today’s announcement also includes charges against manufacturers and distributors of fake COVID-19 vaccination record cards who, according to the allegations, intentionally sought to obstruct the HHS and Centers for Disease Control and Prevention in their efforts to administer the nationwide vaccination program and provide Americans with accurate proof of vaccination. For example, in the Northern District of California, three additional defendants were charged in a scheme to sell homeoprophylaxis immunizations for COVID-19 and falsify COVID-19 vaccination record cards to make it appear that customers received government-authorized vaccines. One defendant allegedly misused her position as the Director of Pharmacy at a northern California hospital to obtain real lot numbers for the Moderna vaccine that were then used to falsify COVID-19 vaccination record cards. Another defendant pleaded guilty in April 2022. In a separate case in the Western District of Washington, one manufacturer was charged in the multistate distribution of fake COVID-19 vaccination record cards after allegedly telling an undercover federal agent that “until I get caught and go to jail, [expletive] it I’m taking the money, ha! I don’t care.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it has taken an additional 28 administrative actions against providers for their alleged involvement in fraud, waste, and abuse schemes related to the delivery of care for COVID-19, as well as schemes that capitalize upon the public health emergency.
“We are committed to working closely with our law enforcement partners to combat fraud, waste and abuse in our federal health care programs,” said CMS Administrator Chiquita Brooks-LaSure. “The administrative actions CMS has taken protect the Medicare Trust Funds while also safeguarding people enrolled in Medicare.”
Today’s 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 today’s 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; U.S. Postal Service Office of the Inspector General; 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 Criminal Investigations; 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.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care Related COVID-19 FraudRead the Press Release
Memphis, TN - The Department of Justice today 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,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
“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,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs.”
This 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. For example, several cases announced today involve defendants who allegedly offered COVID-19 testing to induce patients to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then used the information and samples to submit false and fraudulent claims to Medicare for unrelated, medically unnecessary, and far more expensive tests or services. In one such scheme in the Central District of California, two owners of a clinical laboratory were charged with a health care fraud, kickback, and money laundering scheme that involved the fraudulent billing of over $214 million for laboratory tests, over $125 million of which allegedly involved fraudulent claims during the pandemic for COVID-19 and respiratory pathogen tests. In two separate cases in the District of Maryland and the Eastern District of New York, owners of medical clinics allegedly obtained confidential information from patients seeking COVID-19 testing at drive-thru testing sites and then submitted fraudulent claims for lengthy office visits with the patients that did not, in fact, occur. The proceeds of these fraudulent schemes were allegedly laundered through shell corporations in the United States, transferred to foreign countries, and used to purchase real estate and luxury items.
“Throughout the pandemic, we have seen trusted medical professionals orchestrate and carry out egregious crimes against their patients all for financial gain,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These health care fraud abuses erode the integrity and trust patients have with those in the health care industry, particularly during a vulnerable and worrisome time for many individuals. The actions of these criminals are unacceptable, and the FBI, working in coordination with our law enforcement partners, will continue to investigate and pursue those who exploit the integrity of the health care industry for profit.”
In the Western District of Tennessee, Raymond Earl Vallier, 52, of Collierville, Tennessee was indicted with theft of government property and aggravated identity theft in connection with a scheme to unlawfully convert CARES Act Provider Relief Fund monies. Vallier was the former owner and operator of North Delta Hospice and Palliative Services LLC, a hospice care center, which, on April 10, 2020, received $107,568.03 from the Provider Relief Fund. North Delta Hospice had ceased seeing patients and billing Medicare and Medicaid by the end of September 2019. According to the indictment, rather than returning the funds deposited, as North Delta Hospice did not qualify for the Provider Relief Fund Payment, the defendant used the name of the deceased owner of North Delta Hospice to falsely attest to the terms and conditions of the Provider Relief Fund — claiming that the funds would be used for expenses related to the treatment of COVID-19 patients — and wrote a check to himself and made a payment on one of his other company’s credit card accounts with the funds. This case is being prosecuted by Trial Attorney Sara E. Porter of the Gulf Coast Strike Force and Assistant U.S. Attorney Tony Arvin of the U.S. Attorney’s Office for the Western District of Tennessee.
In another type of COVID-19 health care fraud scheme announced today, defendants allegedly exploited policies that the Centers for Medicare and Medicaid Services (CMS) put in place to enable increased access to care during the COVID-19 pandemic. For example, in the Southern District of Florida, one medical professional was charged with a health care fraud, wire fraud, and kickback scheme that allegedly involved billing for sham telemedicine encounters that did not occur and agreeing to order unnecessary genetic testing in exchange for access to telehealth patients. Late last year, one defendant previously was sentenced to 82 months in prison in connection with this scheme.
“The attempt to profit from the COVID-19 pandemic by targeting beneficiaries and stealing from federal health care programs is unconscionable,” said Inspector General Christi A. Grimm of the Department of Health and Human Services (HHS). “HHS-OIG is proud to work alongside our law enforcement partners at the federal and state levels to ensure that bad actors who perpetrate egregious and harmful crimes are held accountable.”
Today’s announcement includes charges against two additional defendants for schemes targeting the Provider Relief Fund (PRF). The PRF is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 that provided financial assistance to medical providers to provide needed medical care to Americans suffering from COVID-19. In total, 10 defendants have been charged with crimes related to misappropriating PRF monies intended for frontline medical providers and three have pleaded guilty.
Today’s announcement also includes charges against manufacturers and distributors of fake COVID-19 vaccination record cards who, according to the allegations, intentionally sought to obstruct the HHS and Centers for Disease Control and Prevention in their efforts to administer the nationwide vaccination program and provide Americans with accurate proof of vaccination. For example, in the Northern District of California, three additional defendants were charged in a scheme to sell homeoprophylaxis immunizations for COVID-19 and falsify COVID-19 vaccination record cards to make it appear that customers received government-authorized vaccines. One defendant allegedly misused her position as the Director of Pharmacy at a northern California hospital to obtain real lot numbers for the Moderna vaccine that were then used to falsify COVID-19 vaccination record cards. Another defendant pleaded guilty in April 2022. In a separate case in the Western District of Washington, one manufacturer was charged in the multistate distribution of fake COVID-19 vaccination record cards after allegedly telling an undercover federal agent that “until I get caught and go to jail, [expletive] it I’m taking the money, ha! I don’t care.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it has taken an additional 28 administrative actions against providers for their alleged involvement in fraud, waste, and abuse schemes related to the delivery of care for COVID-19, as well as schemes that capitalize upon the public health emergency.
“We are committed to working closely with our law enforcement partners to combat fraud, waste and abuse in our federal health care programs,” said CMS Administrator Chiquita Brooks-LaSure. “The administrative actions CMS has taken protect the Medicare Trust Funds while also safeguarding people enrolled in Medicare.”
Today’s 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 today’s 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.
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Jury Convicts Arizona Man for Fraudulent Citizenship Scheme Targeting Immigrant PopulationRead the Press Release
LAS VEGAS – Yesterday, a federal jury convicted an Arizona man of orchestrating an adult adoption business scheme to fraudulently obtain more than one million dollars from his clients — who consisted mostly of Chinese and Spanish speaking individuals — by promising them U.S. citizenship through adult adoption.
“U.S. citizenship cannot be bought,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our law enforcement partners, our office will hold accountable those who manipulate and defraud immigrants for their own personal financial gain, such as by deceiving victims on the false promise of U.S. citizenship.”
"It is an honor and a privilege to become an American citizen, and this individual egregiously exploited trusting victims for his own financial gain," said Special Agent in Charge Spencer L. Evans for the FBI. "The sentence should serve as a warning to others that the FBI and our law enforcement partners will remain steadfast in our efforts to dismantle criminal enterprises that strive to circumvent our laws by deceptive and deceitful means.”
Following a six-day trial, Douglas Lee Thayer (68, of Mohave Valley, Arizona) was found guilty of two counts of mail fraud. U.S. District Judge Gloria M. Navarro presided over the trial and scheduled a sentencing hearing for July 26, 2022. For each count of mail fraud, Thayer faces a statutory maximum penalty of 20 years in prison, a term of supervised release, and a fine.
According to court documents and evidence presented at trial, in 2015 and 2016, Thayer operated U.S. Adult Adoption Services Inc. (USAAS), a business that promised its clients U.S. citizenship in exchange for money. Thayer fraudulently represented to his adult clients that they would be adopted by U.S. citizens. This would supposedly allow the clients to obtain new birth certificates and, subsequently, obtain U.S. citizenship for themselves. Thayer charged each client an upfront payment between $7,000 and $20,000 for USAAS’s services. In total, Thayer received more than $1,018,337.83 in payments from his clients.
This case was investigated by the FBI. Assistant U.S. Attorneys Simon F. Kung and Jessica Oliva are prosecuting the case.
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Israeli Corporate Lawyer Charged in Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal indictment charging MOSHE STRUGANO, an Israeli lawyer specializing in the creation of offshore companies, with securities fraud and conspiracy to commit securities fraud in connection with a scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that Ormat Technologies Inc. (“Ormat”), a renewable energy company, would be acquiring U.S. Geothermal, Inc. (“U.S. Geothermal”). The United States intends to seek the extradition of STRUGANO.
U.S. Attorney Damian Williams said: “As alleged, Moshe Strugano, a corporate lawyer, traded on nonpublic information for personal gain. His charged actions show a brazen disregard for laws intended to keep a level playing field for investors.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Time and again, we see greedy, unscrupulous actors trade securities based upon their access to material non-public information. As alleged, Mr. Strugano is another in a long series of similar illegal actors. Today's action is an example of our commitment to insuring our financial markets are fair for all investors.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
Ormat is a publicly traded renewable energy company headquartered in Nevada with offices and facilities in Yavne, Israel.
U.S. Geothermal was a publicly traded renewable energy company that operated geothermal power projects in Oregon, Nevada, and Idaho. U.S. Geothermal’s common stock traded under the symbol “HTM” on the NYSE American.
Between in or about September 2017 and January 2018, Ormat engaged in merger negotiations with U.S. Geothermal. A co-conspirator not named in the Indictment (“CC-1”) served as Ormat’s Head of Mergers and Acquisitions and was one of Ormat’s principal negotiators for the deal. In that role, CC-1 had access to material, nonpublic information about the deal. CC-1 and STRUGANO, who both lived in the vicinity of Tel Aviv, Israel, maintained a personal relationship and friendship.
On or about December 19, 2017, the Ormat board approved acquiring U.S. Geothermal at a price of up to $5.50 per share, which was U.S. Geothermal’s asking price prior to the Ormat board meeting. Almost immediately after the Ormat board meeting ended, CC-1 tipped off STRUGANO that the Ormat-U.S. Geothermal deal was going to close through a coded WhatsApp message. Within minutes of receiving that message, STRUGANO placed a failed WhatsApp call to his broker (the “Broker”) for a bank account he controlled at a Swiss bank (“Bank-1”). STRUGANO then tried to call the Broker another four times over the next four minutes. Minutes later, STRUGANO placed a telephonic order with Bank-1 to purchase over $20,000 in U.S. Geothermal shares. This was the first time STRUGANO had ever asked Bank-1 to purchase U.S. Geothermal stock for his accounts.
Over the next several weeks, STRUGANO directed the Broker to purchase large blocks of U.S. Geothermal shares. By January 18, 2018, STRUGANO had purchased over $2.7 million in U.S. Geothermal shares, for an approximately 3.8% equity stake in the company. For the time period from December 19, 2017 through January 18, 2018, STRUGANO was responsible for approximately one third of the total trading volume in U.S. Geothermal stock.
On January 18, 2018, STRUGANO was informed that his account at Bank-1 was in shortfall. STRUGANO asked the Broker to buy him time to cover the shortfall, asking for a few days, and then on January 24, 2018, for a few more hours. Less than an hour later, Ormat and U.S. Geothermal announced their merger. When the market opened that day, the U.S. Geothermal stock price jumped. After the deal was announced, STRUGANO sold all of his shares and realized profits of approximately $1.2 million.
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STRUGANO, 52, of Caesarea, Israel, is charged with one count of conspiracy to commit securities fraud, which has a maximum sentence of five years in prison, and two counts of securities fraud, which have maximum sentences of 20 and 25 years in prison, respectively.
The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against the defendant, for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Matthew R. Shahabian and Jordan Estes are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.