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26 May 2022
No Bond for Fort Pierce Man Charged in Federal Court with Child Sexual ExploitationRead the Press Release
Miami, Florida – Today, following a hearing, a federal magistrate judge ordered that 21-year-old Blaine Korbin Hulten remain behind bars pending his trial on charges of sexually enticing a child, producing child pornography, and distributing child pornography.
According to the allegations in a criminal complaint affidavit, Hulten had sex with a 13-year-old and a 16-year-old, while knowing their age and after communicating with the minors through a messenger application. It is also alleged that Hulten recorded his sex acts with the 16-year-old and distributed it on the messenger application’s platform. If convicted, Hulten faces up to life in prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami’s Fort Pierce Office and Martin County Sheriff’s Office investigated the case. Assistant United States Attorneys Luisa Berti and Christopher Hudock are prosecuting it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you have information regarding this case, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
A criminal indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14027.
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Newark Man Sentenced for Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Tristan Warner, age 48, of Newark, New Jersey, was sentenced today to 120 months in prison for the attempted online enticement of a minor, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Warner admitted that between about October 2020 and January 15, 2021, he exchanged electronic messages, via text and through a social networking platform, with someone he believed to be the mother of an 11-year-old girl. In those messages, Warner expressed an interest in meeting the minor girl and in engaging in sexual acts with her. He also communicated by telephone with someone he believed to be the girl’s mother. On January 15, 2021, Warner drove from Newark to a pre-determined location in Watervliet, New York, to meet and engage in sexual acts with the minor. He brought with him condoms, stuffed animals and two sex-related devices to give to the girl as gifts. Warner was then encountered by law enforcement and arrested.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of supervised release to follow the term of incarceration.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police and the Colonie Police Department, and the Watervliet Police Department. The case was prosecuted by Assistant U.S. Attorney Rick Belliss.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
New Haven Man Sentenced to More Than 5 Years in Federal Prison for Trafficking Fentanyl and HeroinRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that QUENTINE DAVIS, 31, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 63 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, in late 2019, the DEA New Haven Task Force began an investigation into the distribution of heroin and fentanyl in New Haven and Waterbury. The investigation, which included thousands of intercepted communications over court-authorized wiretaps, revealed that Wilton Reynoso was receiving large quantities of fentanyl and heroin from a source in New York and then selling the narcotics to other drug distributors in Connecticut. Reynoso supplied Tyson Quinones with heroin and fentanyl, which Quinones then sold to his own customers in Waterbury, and also distributed to other dealers, including Deeshawn Pittman in New Haven. Davis worked with Pittman to sell fentanyl, heroin and crack cocaine to a large customer base in and around New Haven.
On June 13, 2020, investigators sought to arrest Reynoso and Quinones, of Waterbury, after intercepting a series of calls indicating that Reynoso and Quinones were planning to conduct a 200-gram heroin transaction. On that date, Quinones was arrested at the anticipated meeting place. Reynoso fled from the meeting scene in his vehicle, which was found abandoned nearby. He was arrested a short time later after he returned to the vehicle. A search of a location in Waterbury that Reynoso used to store narcotics revealed more than kilogram of a mixture of fentanyl and heroin, and items used to process and package narcotics.
Davis has been detained since his arrest on August 17, 2020. On December 15, 2021, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 40 grams or more of fentanyl.
Reynoso, Quinones and Pittman also pleaded guilty. On September 13, 2021, Reynoso, a citizen of the Dominican Republic, was sentenced to 60 months of imprisonment. He faces immigration proceedings when he completes his prison term.
Quinones and Pittman await sentencing.
This investigation was conducted by the DEA New Haven Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Elena L. Coronado through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
New Castle Man Sentenced to 84 Months in Federal Prison for Gun CrimesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Harry Brown of New Castle was sentenced today to 84 months in federal prison for the illegal possession and use of firearms. Chief U.S. District Judge Colm F. Connolly pronounced the sentence.
According to court documents, in March 2020, Mr. Brown, 33, was on probation in the state of Delaware when his probation officer received information that Mr. Brown was engaged in drug dealing and concealing a firearm inside his residence. A probation search of Mr. Brown’s residence yielded a firearm, distribution quantities of crack cocaine, and $7,500 in cash. At the time of the search, Mr. Brown was a convicted felon and thus prohibited from possessing a firearm. A few months later, in July 2020, U.S. Marshals executed a fugitive warrant for Mr. Brown in Chester, Pennsylvania. Marshals located Mr. Brown in a hotel room and found him in possession of another firearm.
Mr. Brown was ultimately charged in the District of Delaware with one count of possessing a firearm in furtherance of a drug trafficking offense and one count of being a felon in possession of a firearm. Mr. Brown was also charged in the Eastern District of Pennsylvania with possession of the firearm found in the hotel room. Mr. Brown pleaded guilty to all three offenses before Chief Judge Connolly in the District of Delaware.
U.S. Attorney Weiss stated, “Those who illegally possess a firearm while dealing drugs contribute to the perpetuation of both violent crime and drug addiction – two significant scourges in our community. Together with our law enforcement partners, our office will continue to work to keep our community safe. And as this case demonstrates, the work we do here does not only benefit Delaware, but neighboring communities as well.”
The case was investigated by the Wilmington Department of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Briana Knox prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Navajo man pleads guilty to assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Perfinna King, 42, of Fruitland, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty on May 25 in federal court to assault with a dangerous weapon in Indian Country. King will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Nov. 2, 2020, King, swerved into the lane of another vehicle. The other driver pulled over, believing it was a relative playing a joke on him. Instead, it was King, who began cursing and threatening him. When the other driver took a photo of King’s license plate, King attempted to hit the driver with his vehicle. King then shot out the rear driver’s side window and the rear window with an air pistol.
The incident occurred in San Juan County, New Mexico, on the Navajo Nation.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Navajo Nation Police Department. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Navajo man appears in court, charged with assault with a dangerous weaponRead the Press Release
ALBUQUERQUE, N.M. – Brandon Barber, 36, an enrolled member of the Navajo Nation, made an initial appearance in federal court on May 25 facing two counts of assault with a dangerous weapon. Barber will remain in custody pending a preliminary and detention hearing scheduled for May 27.
According to a criminal complaint, on the morning May 9, Barber arrived at the residence of a victim, identified in court records as John Doe, in Lower Fruitland, New Mexico. John Doe was in his vehicle cleaning glass from a passenger side window that Barber allegedly broke the previous day. Barber allegedly approached John Doe with a hatchet and a machete and attempted to attack John Doe through the broken window.
John Doe attempted to flee in his vehicle, but Barber reentered his vehicle and pursued John Doe. Barber allegedly rammed John Doe’s vehicle, causing the driver-side airbag to deploy into John Doe’s face. As John Doe attempted to leave the property he came to a locked gate, leading him to get out of his vehicle and flee on foot. John Doe tried to jump a barbed-wire fence, but his leg was caught, causing him to injure his ankle. John Doe had to hide in a nearby ditch until Barber left the property.
Later that afternoon, near Nenahnezad, New Mexico, Barber and an accomplice allegedly threw a rock through the windshield of a vehicle driven by a second victim, identified as Jane Doe. The glass from the windshield shattered in Jane Doe’s face. Barber allegedly began attacking the vehicle with the hatchet and machete as the accomplice tried to pull Jane Doe from the vehicle by her hair. Barber allegedly placed the sharp edge of the machete against the back of Jane Doe’s head as she was pulled from the vehicle. Barber allegedly attempted to strike Jane Doe with the hatchet, but Jane Doe was able to roll out of the way.
Barber and the accomplice entered the vehicle and drove a short distance away. Barber then steered the vehicle toward Jane Doe, who had to dive out of the path of the vehicle, which nearly struck her.
Both alleged offenses occurred on the Navajo Nation.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Barber faces up to 10 years in prison for each count.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Mark C. Pfizenmayer is prosecuting the case.
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Multi-Kilogram Drug Trafficker Convicted at Trial, After Spending More Than Four Years on the LamRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Derrick Samuel Lewis (51, Sarasota) guilty of conspiracy, possession with the intent to distribute five kilograms or more of cocaine, and possession with the intent to distribute 100 kilograms or more of marijuana. Lewis faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for August 24, 2022. Lewis had been charged by way of a superseding indictment on June 28, 2017.
According to testimony and evidence presented at trial, in 2016 and 2017, Lewis was involved with a drug trafficking organization (DTO) that specialized in the distribution of cocaine and marijuana. On behalf of the DTO, Lewis coordinated the shipment of kilogram quantities of cocaine and marijuana from Arizona to Florida, hidden among innocuous items such as unassembled office furniture. On February 24, 2017, investigators seized an incoming shipment containing 25 kilograms of cocaine and 444 kilograms of marijuana in Tampa, which had a wholesale value at that time of more than $3 million.
On June 7, 2017, investigators arrested Lewis. When taken into custody, he was in possession of $50,000 in bulk cash currency. On June 30, 2017, the court set conditions of pre-trial release for Lewis. A short time later, he absconded and became a fugitive from justice, leaving his wife and family. While on the run, Lewis at times resided in Mexico. On August 31, 2021, the U.S. Marshals Service rearrested Lewis in Arizona, and returned him to the Middle District of Florida to stand trial.
This case was investigated by the Drug Enforcement Administration and the Tampa Police Department. Substantial assistance was provided by the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Michigan Man Sentenced to 41 Months in PrisonRead the Press Release
HAMMOND- Taequan Richardson, 23 years old, of Grand Rapids, Michigan, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Richardson was sentenced to 41 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 10, 2021, law enforcement conducted a traffic stop on the Indiana Toll Road on a vehicle. During the search of the car, law enforcement recovered a firearm underneath the front passenger’s seat at Richardson’s feet. Richardson’s criminal history revealed he has a prior Michigan conviction for manufacturing/delivering controlled substances, and as such, was prohibited from possessing a firearm or ammunition.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Mexican National Sentenced for Receiving Child PornographyRead the Press Release
SAN ANTONIO – Yesterday, a Mexican national living in Lytle was sentenced to 120 months in prison and ordered to pay $45,000 in restitution for receiving child pornography.
According to court documents, on October 23, 2020, the FBI received information that Luis Rodolfo Hernandez Borjas, 29, stored images of child pornography on his laptop. Further investigation revealed Borjas had over 1900 images and 17 video files depicting child pornography. Borjas also admitted to sexually assaulting an eight-year-old child.
On June 22, 2021, Borjas pleaded guilty to one count of receipt of child pornography. Borjas has remained in federal custody since his arrest on January 25, 2021.
“There are so many devastating consequences of this type of child exploitation,” said U.S. Attorney Ashley C. Hoff. “Not only are the lives of the victims forever adversely impacted, but the abuse of additional victims is perpetuated by normalizing the behavior in a child predator’s mind. Our office will continue to vigorously prosecute those who prey upon children in such a manner.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Methamphetamine smuggling attempt foiled at northern borderRead the Press Release
Seattle – A 51-year-old resident of Alberta, Canada was arrested on the water in the U.S. San Juan Islands yesterday in a small watercraft loaded with more than 1400 pounds of methamphetamine. Ted Karl Faupel, was taken into custody after U.S. Customs and Border Patrol (CBP) encountered the boat riding low in the water near Stuart Island.
According to the criminal complaint, officers with CBP’ Office of Field Operations encountered the 18’ Bayliner Capri speedboat as it was headed towards Canada. The boat had Canadian registration numbers. The Customs and Border Patrol vessel used lights and siren to get the watercraft to stop. The officers noted that the speedboat was riding very low in the water.
The boat’s driver, Faupel, agreed to pull back the cabin cover and the officers noted a number of duffle bags that were secured with small luggage padlocks. Acting on border search authority, officers made a small cut in one bag and observed shrink wrap packaging of what appeared to be crystal methamphetamine.
Faupel was taken into custody and the boat was taken to the Bellingham Coast Guard Station where a drug dog alerted to the presence of narcotics. In all, the boat contained 28 duffle-bags filled with 539 packages of methamphetamine. The total weight was nearly 1,432 pounds.
Faupel is charged with possession of methamphetamine with intent to distribute. Due to the amount of drugs involved, Faupel faces a mandatory minimum ten years in prison. Additionally, Faupel possessed a 9mm firearm at the time of his arrest.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations in coordination with U.S. Customs and Border Protection.
The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
faupel_complaint.pdfMeth trafficking sends Missoula woman to prison for more than five yearsRead the Press Release
MISSOULA — A Missoula woman was sentenced today to five years and three months in prison, to be followed by five years of supervised release, for trafficking a large amount of methamphetamine in the community, U.S. Attorney Leif M. Johnson said.
Jasmine Lori Snyder, 40, pleaded guilty in February to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
In court documents, the government alleged that Snyder possessed and intended to distribute 5.8 kilograms, which is approximately 12.7 pounds, of meth. On Nov. 30, 2021, a controlled delivery of two U.S. Postal Service parcels, previously determined to contain more than 500 grams of meth, was conducted at a residence in Missoula. Witnesses indicated that the packages belonged to Snyder. A confidential informant also regularly purchased meth directly from Snyder from August to October 2021. Twelve pounds of meth is the equivalent of approximately 46,000 doses.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Massachusetts Man Sentenced to over 9 Years for Attempted Bank Fraud, Aggravated Identity Theft and Criminal ContemptRead the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced in federal court for conspiring to commit bank fraud, aggravated identity theft and for committing criminal contempt while on pretrial release, U.S. Attorney Darcie N. McElwee announced.
Chief U.S. District Judge Jon D. Levy sentenced Bernard Gadson, 31, of Weymouth, Massachusetts to 110 months in prison and four years of supervised release. He was also ordered to pay $243,341 in restitution. Gadson pleaded guilty on October 25, 2021.
According to court records, beginning in about December 2018, Gadson oversaw a scheme to defraud banks and credit unions throughout New England. Gadson would obtain the names and personal identifying information of real individuals with good credit scores. Other members of the conspiracy would apply for unsecured personal loans in those names. Gadson obtained fake identification documents (e.g., driver’s licenses) bearing the names of the stolen identities with a photograph of a co-conspirator as well as bogus pay stubs and lease agreements to support the fraudulent loan applications. In January 2019, individuals working for Gadson attempted to obtain a $20,000 loan from KeyBank in Kittery. A loan officer at KeyBank became suspicious and alerted local law enforcement.
While on bail pending trial, Gadson engaged in new criminal conduct and orchestrated the submission of fraudulent loan applications to financial institutions in Minnesota. He also traveled extensively outside of the state without the prior approval of his supervising probation officer in violation of his conditions of release.
The U.S. Department of Homeland Security’s Homeland Security Investigations and the Kittery Police Department investigated the case.
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Man Sentenced for Trafficking Kilos of Fentanyl-like Substance and Possessing Four Semiautomatic WeaponsRead the Press Release
RICHMOND, Va. – A Petersburg man was sentenced today to 25 years in prison for trafficking over two (2) kilograms of a potent fentanyl analogue known as parafluorofentanyl while in possession of four semiautomatic weapons, including one equipped with an extended magazine.
According to court documents, Troy Deon Allen, 31, sold fentanyl and parafluorofentanyl to a confidential source three times between June 14, 2021, and August 19, 2021. Parafluorofentanyl is a fentanyl analogue that is similar to fentanyl but is much stronger. Investigators from ATF and Prince George County Police Department obtained and executed a search warrant at Allen’s residence in North Dinwiddie. After entering the residence, they found Allen in the bathroom attempting to flush parafluorofentanyl down the toilet.
During the search of Allen’s residence, law enforcement recovered over two kilograms of para-fluorofentanyl, 128 grams of acetyl fentanyl, 53 grams of methamphetamine, and 14 pounds of marijuana. They also recovered Allen’s cellular telephone, over $20,000, and four loaded semi-automatic firearms — a Glock, Model 45, 9mm; a Glock, Model 42, .380 caliber; an Alex Pro Firearm, Model APF-15, multi-caliber, semi-automatic pistol; and a Smith & Wesson, Model M&P Shield EZ, 9mm, semi-automatic. Allen was a previously convicted felon and prohibited from possessing any firearms.
At Allen’s sentencing, the Court received evidence obtained from Allen’s cellular telephone under a search warrant. Among that evidence were messages discussing drug trafficking and buying and exchanging firearms with a juvenile. Several messages also discussed Allen’s knowledge and potential involvement in a July 4, 2021, homicide at a park in Hopewell where an 18-year old was killed during a shootout.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division, and Colonel W. Keith Early, Chief of Police for Prince George County Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorney Kenneth Simon prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-143.
Manchester Man Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
CONCORD - Raheem Tyler, 23, of Manchester, pleaded guilty in federal court on Wednesday to possession of a firearm by a prohibited person, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on three separate occasions in July, 2021, Tyler posted selfie-style videos of himself on his Snapchat account in which he lifted his shirt to reveal a pistol in his waistband. One video depicted Tyler lying on a bed in what appeared to be a room that belonged to a female based upon the décor. Investigators identified a residence associated with Tyler’s girlfriend and approached the residence to determine if Tyler was present. Tyler was at the apartment and wearing the same clothing observed in the video posted earlier in the day. Tyler acknowledged that he was prohibited from possessing a firearm because of his previous felony convictions and directed officer to the location of the firearm. Officers then located and seized the gun along with 15 rounds of ammunition.
Tyler is scheduled to be sentenced on August 30, 2022.
“To protect our community from violent crime, it is vital that we keep guns out of the hands of criminals,” said U.S. Attorney Young. We will continue to work in partnership with our law enforcement colleagues to keep enhance public safety in the Granite State.”
“As the Chief of Police, I have made it a priority for the Manchester Police Department that we will aggressively investigate and appropriately charge individuals who are prohibited from possessing firearms,” said Manchester Police Chief Allen Aldenberg.
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Los Banos Man Charged with Drug Trafficking Offense While on ProbationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Joshymar Estrada, 33, of Los Banos, charging him with possession with intent to distribute a controlled substance, U.S. Attorney Phillip A. Talbert announced.
On April 28, 2022, law enforcement officers conducted a probation compliance check at Estrada’s home. While officers attempted to contact Estrada at the front door, he ran out of the back door and threw two canvas bags over his backyard fence. The bags contained more than a kilogram of cocaine, including approximately 380 bags of cocaine in various quantities packaged for distribution. Officers also seized additional cocaine, a number of unidentified pills, and a digital scale.
This case is the product of an investigation by the Los Banos Police Department, the Merced County Probation Department, and Homeland Security Investigations. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted, Estrada faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Longtime Missouri juvenile officer indicted on child sex trafficking chargeRead the Press Release
ST. LOUIS – A man from Hannibal who spent more than 30 years working as a deputy juvenile officer in Missouri state court has been indicted in United States District Court on a felony charge of sex trafficking of a minor.
Scott F. Burow, 62, was indicted May 18. The indictment alleges that between March 25, 2020 and April 2, 2020, he solicited a minor to engage in a commercial act.
A detention motion says the female victim was 15 years old and was a ward of the state of Illinois. The motion alleges that Burow met the victim via a dating app, where he used the name “buffaloanchovie.” Burow then picked her up and brought her to his home in Hannibal, where he committed the offenses of statutory rape and statutory sodomy while secretly videotaping her, the motion alleges.
Investigators traced information on the dating app to Burow, and searched his home on August 20, 2020, the motion says. They found “numerous explicit photos and videos of women” that appeared to have been recorded by Burow, the motion alleges.
The Federal Bureau of Investigation is seeking assistance from the community to identify other potential victims. Anyone with information about Burow is asked to call the FBI’s Kirksville Resident Agency at 660-665-6020.
The case was investigated by the Palmyra police Department, the Hannibal Police Department and the FBI. Assistant United States Attorney Jillian Anderson is prosecuting the case.
The charges contained in the indictment are merely accusations, and Burow is presumed innocent unless and until proven guilty.
Leader of Hillsboro Methamphetamine Distribution Cell Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—On May 25, 2022, a Hillsboro, Oregon man was sentenced to federal prison for leading a Hillsboro area methamphetamine distribution cell that was part of a conspiracy to traffic large quantities of methamphetamine, heroin, and fentanyl from Mexico for resale in Oregon and Washington State.
John Armas, 44, was sentenced to 90 months in federal prison and five years’ supervised release.
According to court documents, Armas’ Hillsboro methamphetamine distribution cell was part of a larger drug trafficking network led by Victor Alvarez Farfan, 50, of Oregon City, Oregon. Armas would receive pounds of methamphetamine at his residence from Farfan or associates of Farfan and, in turn, transfer it to various co-conspirators for storage or further distribution. From May 2018 through October 2018, Armas planned and coordinated the transfer and distribution of more than 5 kilograms of methamphetamine.
On October 17, 2018, a federal grand jury in Portland returned a nine-count indictment charging Armas, Farfan, and 20 co-defendants with conspiracy to possess with the intent to distribute and distribute controlled substances; use of a communication facility, including cellular telephones, in the commission of a controlled substances felony; maintaining drug-involved premises to manufacture and distribute controlled substances; interstate distribution of drug proceeds and money laundering.
On October 24, 2018, a coordinated law enforcement operation led by the FBI with assistance from Homeland Security Investigations (HSI), the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) resulted in the arrest of Armas, Farfan and many of their co-defendants. As part of the operation, investigators searched Armas’ Hillsboro residence and seized a handgun and drug packaging material.
On January 13, 2020, Armas pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine. On November 23, 2021, Farfan became the last of 23 co-defendants charged in the conspiracy to plead guilty. On March 4, 2022, Farfan was sentenced to 180 months in federal prison and five years’ supervised release.
This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon and is the result of a joint investigation by FBI, HSI, WIN, and CCITF. Forfeiture was litigated by the U.S. Attorney’s Office Asset Recovery and Money Laundering Division.
WIN includes representatives from the Washington County Sheriff's Office, Beaverton Police Department, Hillsboro Police Department, Tigard Police Department, Oregon National Guard Counterdrug Program, and FBI. CCITF includes representatives from Clackamas County Sheriff’s Office, Canby Police Department, Oregon State Police, HSI, and FBI.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Lake City Man Pleads Guilty to Illegally Possessing Firearms and Distributing Crack CocaineRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Edrick D. Jackson (28, Lake City) has pleaded guilty to possessing a firearm as a convicted felon and three counts of distribution of cocaine base (also known as “crack” cocaine). Jackson faces a maximum penalty of 10 years in federal prison for the firearm offense and up to 20 years’ imprisonment for each drug offense. A sentencing date has not yet been set.
According to court documents, on three separate occasions, Jackson sold crack cocaine to a confidential informant who was working with law enforcement. The sales took place at Jackson’s home in Lake City. After obtaining a federal search warrant, investigators searched Jackson’s home and located crack cocaine, two digital scales, a loaded Smith and Wesson 9mm pistol that had previously been reported stolen, and a Glock 9mm pistol with an extended magazine loaded with 20 rounds of ammunition. Jackson had previously been convicted of multiple felony offenses and therefore is prohibited law from possessing firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Columbia County Sheriff’s Office, and the Lake City Police Department. It is being prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Michael J. Coolican.
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.
La Crosse Man Sentenced to 92 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua K. Breidel, 34, La Crosse, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 92 months in federal prison for being a felon in possession of a firearm. This prison term will be followed by 36 months of supervised release. Breidel pleaded guilty to this charge on March 1, 2022.
On the early morning of August 4, 2021, Breidel was involved in a domestic disturbance with his girlfriend in La Crosse. She later told La Crosse Police Department (LCPD) officers that during the argument, Breidel pointed a Glock handgun at her, which he had previously stolen from her. The girlfriend fled the house and reported hearing a pop, which she assumed was the defendant firing a round at her. Breidel later admitted to discharging the firearm. Breidel’s girlfriend described her relationship with Breidel as abusive and said he regularly threatened to kill her, her children, and her family.
The next day, LCPD officers arrested Breidel in his mother’s van in La Crosse. Breidel was wearing body armor and had a bullet in his pocket. Officers searched the van and found a Glock 48 handgun with a loaded extended magazine on the floor near where Breidel had been seated as well as two additional loaded magazines in his backpack. Breidel’s DNA was later found on the Glock handgun.
Breidel was prohibited from legally possessing a firearm based on multiple prior felony convictions. At the time of this offense, Breidel was out of custody on state bond for three separate open criminal cases. He was also on state probation for two prior cases, including a prior conviction for possessing a firearm as a previously convicted felon. His state supervision was revoked and he is currently serving a total sentence of 42 months in state prison followed by 42 months of extended supervision. Judge Peterson ordered this federal sentence to run concurrently with the remainder of Breidel’s state prison sentence which has approximately 32 months remaining.
At sentencing, Judge Peterson said that the protection of the public was an important factor in this case and that Breidel was a dangerous character in the community. Judge Peterson highlighted that Breidel was a repeat firearm offender and the case involved the discharge of a firearm, both of which were considered aggravating factors.
The charge against Breidel was the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office also provided assistance. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Kansas Bookkeeper Pleads Guilty to Bank FraudRead the Press Release
WICHITA, KAN. – A Kansas woman pleaded guilty in connection to a scheme to defraud her former employers of millions of dollars.
According to court documents, Nancy Martin, 77, of Wichita pleaded guilty to one count of bank fraud and one count of aid or assist filing a false tax document. Martin admits to defrauding her employers Mid-Kansas Wound Specialists and Emergency Services P.A. She worked for the businesses as a bookkeeper, business manager, and chief operating officer. An audit revealed that from 2012 to 2017, Martin embezzled approximately $3.1 million by fraudulent obtaining money from her employers’ banks. She used funds to pay for personal expenses, travel, and investments then made false accounting entries to disguise the embezzlement as payments or transferred funds between entities.
From 2013 to 2016, Martin either filed tax turns or caused tax returns to be filed to the Internal Revenue Service that omitted income, therefore, causing a tax loss to the IRS of approximately $670,000.
“IRS Criminal Investigation is committed to unravelling the most complicated embezzlement and tax schemes,” said William Steenson, Assistant Special Agent in Charge, IRS Criminal Investigation. “Ms. Martin’s guilty plea shows IRS-CI’s commitment to protecting the healthcare system and all those who work tirelessly to promote the welfare for all.”
Martin is scheduled to be sentenced on August 17 and faces a maximum penalty of 30 years in prison for bank fraud and a maximum of three years in prison for aid or assist filing a false tax document. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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KC Man Involved in Shooting Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who shot his girlfriend was sentenced in federal court today for illegally possessing firearms.
Kevin D. Hogan, also known as “Diablo,’ 34, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Oct. 25, 2021, Hogan pleaded guilty to two counts of being a felon in possession of a firearm.
Hogan admitted that he was in possession of a Smith & Wesson 9mm semi-automatic handgun on March 16, 2020. Hogan’s girlfriend, who was hospitalized early that morning, told Independence, Mo., police officers that he had punched her with a closed fist eight to 10 times, attempted to stab her with a knife, struck her several times with a handgun, then shot her in the left shoulder. Hogan was arrested on Sept. 29, 2020, when he was a passenger in a vehicle that was stopped by Independence police officers. When officers searched the vehicle, they found a loaded Glock .40-caliber handgun in the rear passenger area directly beneath Hogan’s seat. They also found a loaded Glock .40-caliber handgun, which had been reported as stolen, under the rear of the front passenger’s seat, where it was accessible to Hogan.
Hogan also admitted that he was in possession of a Glock 9mm semi-automatic handgun on June 6, 2021, when law enforcement officers stopped a vehicle in which Hogan was a passenger. Hogan fled from officers on foot but was eventually found at a nearby residence and detained. Officers searched the area and found the Glock handgun behind the residence where Hogan had hidden it.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hogan as a prior federal felony conviction for being a felon in possession of a firearm as well as state felony convictions for unlawful use of a weapon, possession of a controlled substance, forgery, and assault.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department Secures Forfeiture of Maryland Property Purchased with $3.5 Million in Alleged Corruption Proceeds Linked to Ex-President of the GambiaRead the Press Release
The Department of Justice, pursuant to a court-ordered default judgment and final order of forfeiture entered on May 24, has secured the forfeiture of a Potomac, Maryland, property acquired with approximately $3.5 million in alleged corruption proceeds by the former President Yahya Jammeh of The Gambia, through a trust set up by his wife, Zineb Jammeh.
The judgment is the result of a civil forfeiture complaint filed by the United States in July 2020 seeking the forfeiture of the Maryland property. As alleged in the complaint, Yahya Jammeh corruptly obtained millions of dollars through the misappropriation of stolen public funds and the solicitation of bribes from businesses seeking to obtain monopoly rights over various sectors of the Gambian economy. Jammeh conspired with his family members and close associates to utilize a host of shell companies and overseas trusts to launder his alleged corrupt proceeds throughout the world, including through the purchase of a multimillion-dollar mansion in Potomac, Maryland. With this entry of final judgment, ownership of that Maryland property has now been forfeited to the United States along with all rental income generated by the property since the filing of the amended complaint in August 2020. The United States intends to sell the property, and recommend to the Attorney General that the net proceeds from the sale of the forfeited property be used to benefit the people of The Gambia harmed by former President Jammeh’s acts of corruption and abuse of office.
“The Department of Justice is committed to using the rule of law to forfeit assets traceable to alleged foreign corruption,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This case demonstrates our ability to work with foreign partners to secure the forfeiture of assets allegedly derived from illicit bribes and stolen funds despite complex attempts to disguise the proceeds and their intended recipients.”
“Corrupt foreign officials will not be allowed to hide illegal proceeds in Maryland or anywhere else in the United States,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We will use all the tools at our disposal to track down and seek to repatriate those funds.”
“Maryland real estate is not a shelter for funds for corrupt rulers who have stolen from their countrymen,” said Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore. “Working with our domestic and foreign partners, HSI Baltimore has been able to recover property purchased with ill-gotten gain. From here, we will focus our efforts into returning those funds to the people of The Gambia, from whom they were stolen.”
The investigation was conducted by HSI’s Illicit Proceeds and Foreign Corruption Investigations Group in Miami, with the assistance of the HSI Office of the Special Agent in Charge for Baltimore, HSI Attaché Office in Dakar, Senegal and the U.S. Department of State’s Diplomatic Security Service. The Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
The case is being handled by Trial Attorneys Steven Parker and Kaycee Sullivan of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Jennifer Wine for the District of Maryland. Substantial assistance was provided by the Justice Department’s Office of International Affairs. The department also thanks the government of The Gambia for its assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Justice Department Secures Agreement in Race Discrimination Lawsuit Involving Two Rental Properties in GeorgiaRead the Press Release
The Department of Justice announced today that the U.S. District Court for the Northern District of Georgia has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination in housing by the owners and manager of two rental properties in Cedartown, Georgia. The defendants are Crimson Management LLC; Benefield Housing Partnership (dba Cedartown Commons); and Cedartown Housing Associates (dba Cedarwood Village).
The lawsuit, filed in May 2020, alleged that the defendants steered Black housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a housing complex that is inferior in appearance, location and amenities to Cedarwood Village. Most residents of Cedartown Commons are Black. The lawsuit further alleged that the defendants subjected Black residents who are elderly or have a disability to less favorable rental terms, conditions and privileges as compared to similarly situated white tenants. The defendants’ policies allegedly perpetuated segregation at the two properties.
“It is unacceptable that race discrimination in housing persists in our nation more than a half-century after President Johnson signed the Fair Housing Act into law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This Justice Department is committed to vigorously enforcing our civil rights laws by holding housing providers responsible when they perpetuate racial segregation or otherwise engage in prohibited discrimination.”
“Access to housing opportunities remains unequal for Black housing applicants all too often,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “My office will continue to devote resources to eradicate this injustice and we will continue to hold housing providers accountable for racial discrimination in violation of the Fair Housing Act.”
This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia.
Under the court-approved decree, the defendants are required to pay $83,000 in damages to three former tenants who were allegedly harmed as a result of the defendants’ racial steering; pay a civil penalty to the United States; implement nondiscriminatory policies and procedures; complete fair-housing training; and submit periodic reports to the Justice Department.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online at https://civilrights.justice.gov/. Individuals may also contact the Department of Housing and Urban Development at 1-800-669-9777 or by file a complaint online at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint?utm_medium=email&utm_source=govdelivery.
Justice Department Files False Claims Act Complaint Against Six Physicians in Texas Relating to Alleged Kickbacks and Improper Laboratory Testing ClaimsRead the Press Release
The Justice Department amended its complaint in a laboratory testing fraud case to add six physicians in Texas. The case alleges False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law. The amended complaint further alleges that the six physicians caused claims to be improperly billed to federal health care programs for medically unnecessary laboratory testing.
According to the United States’ complaint, the six physician defendants received thousands of dollars in kickbacks in return for their referrals of laboratory testing. The complaint alleges that laboratories True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay physicians to induce referrals to the hospitals for laboratory testing, which was then performed by THD or BHD. As alleged in the complaint, the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring physicians. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary.
“The Department of Justice is committed to holding accountable health care providers, including physicians, who commit fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Improper financial arrangements involving physicians and laboratories can distort physicians’ medical judgments, waste taxpayer dollars and subject patients to unnecessary testing or other services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally-funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The United States’ amended complaint alleges that, in addition to the previously named defendants, the following six physicians received kickbacks from MSOs in return for their laboratory testing referrals:
- Doyce Cartrett, Jr., M.D., of Silsbee, Texas, allegedly received over $320,000 from LRH and two MSOs, Ascend MSO of TX LLC (Ascend) and Eridanus MG LLC (Eridanus), in return for his referrals.
- Elizabeth Seymour, M.D., of Corinth, Texas, allegedly received over $280,000 from two MSOs, Ascend and Eridanus, in return for her referrals.
- Emanuel Paul “E.P.” Descant, II, M.D., of Spring, Texas, allegedly received over $125,000 from two MSOs, North Houston MSO and Tomball Medical Management Inc., in return for his referrals.
- Frederick Brown, M.D., of Missouri City, Texas, allegedly received over $190,000 from two MSOs, Ascend and Indus MG LLC (Indus), in return for his referrals.
- Heriberto Salinas, M.D., of Cleburne, Texas, allegedly received over $75,000 from two MSOs, Ascend and Herculis MG LLC (Herculis), in return for his referrals.
- Hong Davis, M.D., of Lewisville, Texas, allegedly received over $70,000 from two MSOs, Ascend and Herculis, in return for her referrals.
“Schemes that funnel health care referrals do not work without the participation of physicians,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “They are not merely passive players in these elaborate schemes, but an integral part, without which the scheme could not exist. Our office is committed to rooting out health care fraud by pursuing all players involved the scheme, from the laboratories and their leaders to the marketers and the physicians who make it all possible. Naming these physicians in the complaint is evidence of that commitment.”
“Patients deserve reasonable and necessary care from providers without improper motivations,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Collaborating with our law enforcement partners, we will continue to investigate and hold accountable physicians accepting payments for referrals.”
“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste taxpayer resources and impact mission readiness,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will continue to work with our partners to hold those accountable who undermine the integrity of the health care system that supports our nation’s service members, retirees and their families.”
The United States’ amended complaint was filed in connection with a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Felice Gersh, M.D. and Chris Riedel. The United States intervened in the qui tam action in December 2021 and filed a complaint under the False Claims Act in January 2022 against former THD CEO Christopher Grottenthaler, former BHD CEO Susan Hertzberg, former LRH CEO Jeffrey Madison, and others. Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States, et al. ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.
This case is being handled by attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by HHS-OIG and DCIS. As a result of its efforts, the United States has already recovered more than $31 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 29 physicians, two health care executives and a laboratory company.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The claims in the complaint are allegations only, and there has been no determination of liability.
Ithaca Convenience Store Owner Sentenced for Committing Food Stamp FraudRead the Press Release
SYRACUSE, NEW YORK – Abdul Jalil, age 55, of Ithaca, New York, was sentenced yesterday to five years’ probation for federal food stamp fraud, announced United States Attorney Carla B. Freedman, Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture (USDA), and John Joly, Acting Chief of the Ithaca Police Department.
As part of his guilty plea, the defendant admitted that he exchanged food stamp benefits for cash with customers at his store, the Ithaca Halal Meat and Grocery, which is prohibited by the USDA, resulting in a loss to the government of $120,061. Following today’s sentencing, the defendant paid full restitution to the government.
This case was investigated by the United States Department of Agriculture – Office of Inspector General, the Ithaca Police Department, and the Ithaca Department of Social Services, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Individual Indicted for Market Manipulation ConspiracyRead the Press Release
BOSTON – A Chinese national and part-time Weymouth resident has been indicted by a federal grand jury in Boston for his alleged participation in a sophisticated, multi-year market manipulation conspiracy involving securities traded on the United States’ national securities exchanges.
Jiali Wang, 43, was indicted on one count of conspiracy to commit securities fraud and one count of conspiracy to commit market manipulation. Wang was previously charged by criminal complaint.
According to the charging documents, from approximately 2013 through at least 2018, Wang participated in and oversaw the manipulative trading activity of a group of securities traders located in China and, at times, in Massachusetts. Specifically, it is alleged that Wang and his co-conspirators used multiple brokerage accounts in their names, and in the names of others with whom Wang had a relationship, to artificially depress and inflate the prices of thinly traded securities. They allegedly did so by repeatedly placing relatively small sell (or buy) orders designed to send a false signal about a security’s supply (or demand) and to depress (or inflate) the security’s price. It is alleged that Wang and his co-conspirators then immediately placed relatively large buy (or sell) orders on the other side of the market to take advantage of their manipulations. Once the large orders executed, Wang and his co-conspirators allegedly cancelled their outstanding manipulative orders.
The charge of conspiracy to commit securities fraud provides for a sentence of up to 25 years in prison, five years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of conspiracy to commit market manipulation provides for a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Illinois Man Pleads Guilty to Mail Fraud and Aggravated Identity Theft in IRS Tax Refund SchemeRead the Press Release
A Chicago-area man pleaded guilty yesterday to mail fraud and aggravated identity theft associated with his filing of false tax returns.
According to court documents, Wilmer Alexander Garcia Meza used the personal identifying information of others — including their names, dates of birth and identification documents such as foreign passports — to fraudulently obtain Individual Taxpayer Identification Numbers (ITINs) in their names from the IRS. An ITIN is a tax processing number issued by the IRS to individuals who do not have, and are not eligible to obtain, a Social Security number. From 2013 through 2017, Garcia used the ITINs to file tax returns in the names of these stolen identities, claiming thousands of dollars in fraudulent refunds. Garcia then used identification documents in those same names to cash these refund checks issued by the IRS. In total, Garcia caused a tax loss of approximately $222,000.
Garcia is scheduled to be sentenced on Aug. 17 and faces a mandatory minimum sentence of two years in prison for aggravated identity theft and a maximum sentence of 20 years in prison for mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Thomas Flynn and Jacob Green of the Tax Division are prosecuting the case. Former Trial Attorney Michael Landman also provided valuable assistance on the case.
Houston Resident Sentenced for Conspiracy to Commit Mail Fraud OffenseRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that JIMMIE JAMES (“JAMES”), age 33, a resident of Houston, was sentenced on May 25, 2022 for conspiracy to commit mail fraud in violation of 18 U.S.C. § 371. The Honorable Ivan Lemelle sentenced JAMES to thirty (30) months in prison, three (3) years of supervised release, a $100 mandatory special assessment fee, and payment of $178,409.00 in restitution.
According to court documents, JAMES conspired with TYREE JOHNSON (“JOHNSON”), an employee with United Parcel Service (UPS), to steal shipments of Apple iPhones from the UPS Customer Service Center where JOHNSON worked. JOHNSON would over-label boxes of iPhones destined for AT&T Mobility stores with a shipping label provided to him by JAMES. These shipping labels would cause the boxes of iPhones to be redirected to JAMES’s home or an unidentified co-conspirator living in Chalmette. As a reward for over-labeling the packages, JAMES paid JOHNSON at least $3,500 through the Zelle payment application.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hobbs man pleads guilty to child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. – Matthew Lee Dale Taylor, 31, of Hobbs, New Mexico, pleaded guilty on May 25 in federal court to transportation of child pornography, possession of obscene visual representations of the sexual abuse of children, and a registered sex offender committing a felony offense involving a minor. Taylor will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on July 14, 2021, the National Center for Missing and Exploited Children (NCMEC) received a report from Dropbox identifying videos depicting suspected child pornography. On that date, Taylor uploaded 51 videos containing child pornography to a Dropbox account he created using the email address [email protected]. In his plea, Taylor acknowledged that he knew the videos included children engaged in sexually explicit conduct.
On March 7, 2017, Taylor was convicted in Lovington District Court of possession of a visual medium of sexual exploitation of children and was required to register as a sex offender.
By the terms of the plea agreement, Taylor faces 25 to 30 years in prison followed by a lifetime of supervised release.
The Roswell Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the NCMEC and the Hobbs Police Department. Assistant United States Attorney Matilda McCarthy Villalobos is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Guilty Verdict in Macon State Prison Contraband TrialRead the Press Release
MACON, Ga. – A Metro Atlanta resident was found guilty of trafficking methamphetamine intended for Macon State Prison.
Raquan Emahl Gray, 26, of Conley, Georgia, was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine by a federal jury on May 24, following a two-day trial that began on May 23, before U.S. District Judge C. Ashley Royal. Gray faces a maximum of 20 years of imprisonment to be followed by three years of supervised release and a maximum $1,000,000 fine. A sentencing date has not been scheduled.
“The flow of illegal and dangerous contraband into our prisons must end for the safety of everyone inside the prison and the general public,” said U.S. Attorney Peter D. Leary. “To that end, our office—working alongside our local, state and federal partners—will hold those who supply inmates with drugs, cell phones and other illegal items accountable for their crime.”
“This defendant attempted to get drugs into a state prison, but instead landed there himself,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success because of the spirited efforts of all law enforcement agencies involved.”
“Illegal drugs have no place in Georgia, not even in our prison system. They are dangerous and threaten the safety of all populations. We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations no matter where they are,” said GBI Director Vic Reynolds.
According to court documents and evidence presented at trial, Gray was the passenger of a vehicle that was pulled over by a Crawford County Sherriff’s Office deputy in Roberta, Georgia, for traveling 25 mph over the posted speed limit on Sept. 2, 2019. A strong odor of marijuana was emanating from the car and the driver, Demarea Demond Carey, 28, of Fairburn, Georgia, admitted he had smoked marijuana. A probable cause search of the vehicle found various packages wrapped in different colored duct tape and some were numbered. Some packages were softball shaped and wrapped in electrical tape. The packages contained 494 grams of methamphetamine, 150 suspected ecstasy pills which tested as methamphetamine, 50 cell phones, two large bags of cell phone chargers, approximately three pounds of marijuana, 19 bags of tobacco, a large bag of cigars and 19 lighters. Co-defendant Carey’s cell phone’s GPS destination was set for Macon State Prison.
Gray has an extensive criminal history including felony convictions for robbery, burglary and theft by taking. Two co-conspirators who were traveling with Gray—Daquann Marquez Epps, 25, of Columbus, Georgia, and Carey—both previously pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance and conspiracy to possess with intent to distribute methamphetamine, respectively. Sentencing for Epps and Carey is scheduled for July 6.
The Crawford County Sheriff’s Office, the Peach County Sheriff’s Office, GBI, the Georgia Department of Corrections and DEA investigated the case.
Assistant U.S. Attorneys Will Keyes and Leah McEwen are prosecuting the case.
Fourth Defendant in ‘Grandparent Scam’ Network Pleads Guilty to RICO ConspiracyRead the Press Release
A fourth member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.
According to court documents, Joaquin Lopez, 46, of Hollywood, Florida, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay up to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means, including in-person pickup, mail and wire transfer, and then laundered the proceeds, including through the use of cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will continue to investigate and prosecute criminals who target elderly Americans and take advantage of their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI in advancing the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”
“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman for the Southern District of California. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”
“These guilty pleas are a prime example of the collaboration and coordination among our local, state and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI’s San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Lopez pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. He is scheduled to be sentenced on Aug. 19. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Two co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson for the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Four Southern California Residents Arrested on Charges Alleging Elderly Timeshare Owners Were Defrauded Out of More Than $5 MillionRead the Press Release
SANTA ANA, California – Federal authorities today arrested four defendants charged in a 29-count grand jury indictment alleging they scammed dozens of timeshare owners out of more than $5 million by using boiler room tactics and lying that they could provide them financial relief.
The following defendants were arrested today and are expected to be arraigned this afternoon in United States District Court in Santa Ana:
- Michael McDonagh, 41, of Long Beach, the lead defendant and alleged ringleader of the scheme;
- Antonio Duarte, 42, of Corona;
- Christopher James Vannoy, 32, of Norwalk; and
- Ruben Ortiz, 40, of Long Beach.
Authorities are continuing to search for a fifth defendant named in the indictment, Frank Anthony Molina, 43, of San Pedro.
The indictment charges the defendants with one count of conspiracy. McDonagh, Duarte, Vannoy and Molina are charged with 28 counts of wire fraud and telemarketing fraud against the elderly. Ortiz, who allegedly joined the conspiracy in 2018, is charged with 12 counts of wire fraud and telemarketing fraud against the elderly.
According to the indictment returned on April 28 and unsealed today, from 2015 to May 2019, “openers” who worked for McDonagh-controlled telemarketing companies contacted timeshare owners and offered to help them terminate their timeshare interest for a fixed fee. If the timeshare owner expressed interest in the telemarketing companies’ services, the call was transferred to a “closer” – usually Duarte, Vannoy, Molina or another co-conspirator – who convinced victims to sign contracts with the telemarketing companies to get them out of their timeshare for a “one-time fee.”
Within weeks of the victim paying the fee, Duarte, Vannoy and Molina again contacted victims and told a series of lies to induce the victims to pay more money. For example, according to the indictment, some victims were falsely told that they would obtain – for an additional fee – a large settlement payment based on purported litigation against the victim’s timeshare company, including a class-action lawsuit.
The defendants allegedly also made false promises of securing – for an additional fee – a large “restitution” payment from the victim’s timeshare company because the timeshare company had purportedly rented out the victim’s timeshare property without the victim’s permission.
The victims were falsely told their additional fees would be refunded once the “restitution” and “settlement” had been paid, the indictment alleges. To conceal the scheme, the defendants frequently convinced victims to sign fraudulent non-disclosure agreements to prevent the victims from contacting the timeshare companies to inquire about the purported settlement or restitution payments by claiming that the timeshare companies required the agreements to release the promised funds. In fact, no litigation was pending, and no restitution payments were made.
McDonagh founded and or controlled several companies – Irvine-based Global Transfer Inc., Costa Mesa-based Global Transfer SoCal Inc., Santa Ana-based Nationwide Transfer Inc., and Signal Hill-based Nationwide Exit Specialist Inc. – that purported to offer timeshare relief. Once one telemarketing company became inundated with consumer complaints, McDonagh allegedly would form a new telemarketing company to perpetuate the fraud.
According to the indictment, McDonagh instructed employees of the telemarketing companies to “take no prisoners,” have “no remorse” when interacting with victims, and to “take every penny you can from” the victims “so they cannot sue” the telemarketing companies. The indictment further alleges that in response to complaints from Ortiz about the risks he was taking in participating in the conspiracy, McDonagh told him that “it’s def a risk but I mean I shut down global over a year ago and nothing! ‘Knock on wood’ but I mean it’s a decision you personally have to make ive made piece [sic] with it ive been a criminal my whole life and now it’s actually benefiting me[.]”
Through this conspiracy, the defendants fraudulently obtained more than $5 million from the victims. The indictment alleges that the scheme targeted dozens of victims, including many victims who were 55 years of age or older.
If convicted of all charges, each defendant would face a statutory maximum sentence of 20 years in federal prison on the conspiracy count and a statutory maximum sentence of 30 years in federal prison for each fraud count.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The United States Secret Service and the Huntington Beach Police Department investigated this matter.
Any member of the public who has information related to this case or similar fraud schemes is encouraged to contact the Secret Service’s Santa Ana Resident Office at (714) 246-8257.
Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section and Ian V. Yanniello of the General Crimes Section are prosecuting this case.
Former Mississippi Deputy Warden Pleads Guilty to Assaulting Inmate at Parchman PrisonRead the Press Release
Melvin Hilson, 49, a former deputy warden at the Mississippi State Penitentiary, which is also known as Parchman, pleaded guilty today to violating an inmate’s civil rights in 2016. In June 2021, Hilson was charged with violating the inmate’s civil rights by repeatedly striking him and knocking him to the ground, which resulted in the inmate suffering a ruptured eardrum, abrasions to his ear and neck and prolonged headaches. Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Clay Joyner of the Northern District of Mississippi made the announcement.
“This defendant is being held accountable for violating his duty as a corrections officer by unlawfully assaulting an inmate under his custody,” said Assistant Attorney General Clarke. “This former Parchman deputy warden caused severe injury to the victim, and his actions violated the trust that we place in corrections officials to lawfully carry out their duties. The Civil Rights Division will continue to hold law enforcement officials accountable when they use force without basis and violate people’s civil rights inside our jails and prisons.”
“When corrections officials use unlawful, unnecessary and unwarranted force against inmates, it casts a stain on the profession and all the upstanding officers who do their jobs each and every day within the confines of the law,” said U.S. Attorney Joyner. “Today’s guilty plea is an important step to ensuring that those who choose to violate the public’s trust are held accountable for their illegal actions.”
According to court documents and statements made during today’s hearing, Hilson was working as a member of Parchman’s K-9 Unit at the time of the assault. On or around Aug. 3, 2016, J.T. was in a caged area inside of the medical unit, where he waited to be seen by a medical provider. Hilson approached J.T. and struck him with a closed fist several times, knowing that there was no reason to use force and that J.T. did not pose any threat to himself or others. During the assault, Hilson knocked J.T. to the ground, picked him up, and then struck him and knocked him to the ground again. According to prosecutors, J.T. did not attempt to fight back or defend himself from Hilson’s assault.
A federal grand jury indicted Hilson in June 2021 on three separate counts, including writing a false report to conceal the assault and lying to Mississippi Department of Corrections investigators about the assault. The obstruction charges will be dismissed at the conclusion of sentencing. The civil rights violation carries a maximum sentence of 10 years’ imprisonment and a $250,000 fine. Hilson is scheduled to be sentenced on Sept. 1, 2022.
This case was investigated by the Jackson Division of the FBI. Special Litigation Counsel Samantha Trepel and Trial Attorney Cameron A. Bell of the Civil Rights Division, and Assistant U.S. Attorneys Kimberly Hampton and Robert Mims of the Northern District of Mississippi are prosecuting the case.
Former Kauai County Council Member Sentenced to 20 Years in Federal PrisonRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Arthur Brun, age 50, a former member of the Kauai County Council, yesterday to serve 20 years in federal prison for drug trafficking, assault of a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses. Brun, who was indicted with 11 other defendants on drug trafficking offenses, an assault on a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses, pled guilty to ten of those charges on November 10, 2021. All 11 other defendants have pled guilty to various charges and are awaiting sentencing.
According to information presented to the court, while serving as a member of the Kauai County Council, Brun worked with others to distribute substantial amounts of methamphetamine on Kauai. Among the individuals who supplied him the methamphetamine was co-defendant Maluelue Umu, a leader of the United Samoan Organization, which is a gang that operates both inside and outside of the prison system in the State of Hawaii.
As part of his guilty plea, Brun admitted that on October 29, 2019, after he had received a pound of methamphetamine from Umu, personnel with the Kauai Police Department (“KPD”) conducted a traffic stop of Brun’s vehicle. During the stop, a narcotic detection canine alerted to the odor of narcotics in the vehicle. A lieutenant with KPD, who was acting under the direction of federal investigators, asked Brun to get out of his vehicle. Brun refused. The KPD lieutenant then reached into the vehicle to remove the keys from the ignition. While his arm and shoulder were still partially inside of the vehicle, Brun placed the vehicle in drive and sped off, causing injury to the KPD lieutenant. Brun thereafter led investigators on a high-speed chase before he was finally apprehended. Although he threw the pound of methamphetamine out of his vehicle window during the chase, federal investigators were conducting Title III wiretap interceptions on Brun’s cellular telephones at the time and intercepted him instructing his accomplices to return to the scene of the chase to retrieve the drugs.
In sentencing Brun to 20 years in federal prison, Judge Watson emphasized that police officers put their lives on the line to protect the community and that when someone injures an officer while they are doing their job, the court’s obligation is to impose a sentence that adequately reflects the seriousness of that crime. Brun’s assault on a law enforcement officer, Judge Watson explained, elevates the seriousness of Brun’s drug trafficking conduct in this case.
“As methamphetamine trafficking continues to plague Hawaii as one of the worst crime problems in our state, the fact a publicly-elected official led a criminal organization engaged in such activity magnifies the seriousness of this matter,” said U.S. Attorney Clare E. Connors. “The additional fact that this public official personally assaulted a law enforcement officer in the course of his criminal conduct adds to the corrupt nature of his offense. We will continue to hold elected officials accountable for criminal misconduct.”
“It is deeply disturbing that an elected public official, particularly one who was the vice chair of the Kauai County Council’s Public Safety and Human Services Committee, would engage in such a pattern of lawlessness and disregard for the welfare of community,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Seattle Special Agent in Charge Jonathan T. McPherson. “This significant sentence should send a clear message to anyone who engages in this type of criminal behavior that it will not be tolerated.”
“As an elected official, Mr. Brun violated the trust of the community by participating in an elaborate crime ring,” said Homeland Security Investigations (HSI) Special Agent in Charge John F. Tobon. “This sentence shows that no one is above the law. Investigating organized crime is a top priority for HSI and we will continue to work with our law enforcement partners to disrupt this type of criminal activity.”
"Illicit drugs, especially methamphetamine, are responsible for destroying too many lives,” said Kauai Police Department Chief Todd Raybuck. “This case is evidence of the dedication and collaboration between the Kauai Police
Department and our federal partners. I am proud of, and grateful for, the women and men that placed themselves in harm’s way, sacrificing much time away from their families, to bring this case to conclusion. The Kauai Police Department and our federal partners will continue to identify, investigate, and bring to justice those persons responsible for distributing the illicit drugs that are causing addiction and suffering in too many homes across our community."ATF, the Kauai Police Department, and HSI conducted the investigation that resulted in the indictment, with the assistance of the United States Marshals Service Fugitive Task Force, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Coast Guard Investigative Service. Assistant U.S. Attorneys Micah Smith, Chris Thomas, and Michael Nammar handled the prosecution.
Former Illinois State Representative Sentenced to Nearly Five Years in Federal Prison for Participating in Bribery SchemeRead the Press Release
CHICAGO — Former Illinois State Rep. LUIS ARROYO has been sentenced to nearly five years in federal prison for participating in a bribery scheme involving a fellow state lawmaker and Arroyo’s private lobbying client, a sweepstakes gaming company.
Arroyo, 67, of Chicago, pleaded guilty last year to a federal wire fraud charge. U.S. District Judge Steven C. Seeger imposed a 57-month prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorney James P. Durkin.
Arroyo represented the 3rd District in the Illinois House of Representatives from 2006 to 2019. He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.
In 2018 and 2019, Arroyo accepted thousands of dollars in bribes from the gaming company, Collage LLC, in the form of checks made payable to Spartacus. In exchange for those bribes, Arroyo promoted legislation in the Illinois House of Representatives related to the sweepstakes industry and advised other state lawmakers to support the legislation.
In August 2019 Arroyo offered to have payments made to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie, Ill., and provided him with a $2,500 check from Collage as an initial bribe payment, with the expectation that the senator would receive similar payments for 12 months. Arroyo told the senator, “This is the jackpot,” and then wrote the name of the senator’s nominee on the company’s check. The nominee’s name was used for the purpose of concealing the illicit payment.
Former Financial Advisor from Berks County Convicted of Fraud, Money Laundering for Scheme to Steal from ClientsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jason Weigand, 51, of Sinking Springs, PA, was convicted at trial on thirty counts involving multiple charges of fraud, money laundering and identity theft arising from his elaborate scheme to steal money from his own financial advisory clients.
In October 2017, the defendant was charged by Indictment, which was then superseded several times. Further, while the defendant was out on bail awaiting trial, he committed additional fraud crimes, which resulted in a second indictment. Weigand was ultimately charged with thirty counts involving multiple counts each of wire fraud, mail fraud, bank fraud, interstate transportation of stolen property, unauthorized access to a computer, aggravated identity theft, money laundering, and committing offenses while on bail.
During the nearly 15 years that he served as an investment advisor and proclaimed himself a knowledgeable and reputable source of investment advice, the defendant repeatedly stole money from his clients and went to great lengths to cover up his thefts. Weigand laundered the stolen funds by passing them through a variety of bank accounts, and he even hacked into one client’s email account and accessed emails between the client and another investment advisor.
“Weigand has proven himself to be serial fraudster with no respect for the law or the fiduciary obligations of a financial advisor, and today a jury agreed,” said U.S. Attorney Williams. “Rather than serving his clients, he served himself. Prosecuting financial fraud, and thereby safeguarding innocent investors who stand to lose everything, will always be a priority for this Office.”
“With today’s guilty verdict, Jason Weigand’s victims may finally find some closure on their abuse at the hands of this serial fraudster,” said Postal Inspector in Charge of the Philadelphia Division Damon Wood. “Mr. Wiegand was dishonest in his dealing with them, and not surprisingly, that dishonesty extended through trial. Fortunately, a jury saw through his dishonesty and found him guilty of fraud. Postal Inspectors, picking up the work of investigators from the Pennsylvania State Department of Banking and Securities, along with prosecutors from the United States Attorney’s Office, saw this investigation through seven years of delays, a pandemic, continued criminal conduct by the defendant, and a nearly three-week trial. I applaud the tireless efforts of the investigators and prosecutors on this case.”
The case was investigated by the United States Postal Inspection Service and the Pennsylvania State Department of Banking and Securities, and is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Christopher J. Mannion.
Former Employee of Veterans Affairs Medical Center Sentenced to 57 Months in Prison for Stealing HIV MedicationRead the Press Release
NEWARK, N.J. – A former pharmacy procurement technician was sentenced today to 57 months in prison for stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Lisa M. Hoffman, 50, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 35, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. The loss amount was more than $8.2 million.
In addition to the prison term, Judge Salas sentenced Hoffman to three years of supervised release, ordered restitution of $8.29 million and forfeiture of $450,000.
Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and was sentenced in February 2022 to 42 months in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri; and the VA Police Service of New Jersey, under the direction of Chief Minelli Torres Sukola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.
Former Doctor Sentenced to 46 Months in Prison for Illegally Prescribing Controlled SubstancesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID CIANCIMINO, 63, of Trumbull, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally distributing prescription medication. Judge Williams also ordered Ciancimino to pay a $25,000 fine.
According to court documents and statements made in court, Ciancimino was a sole practitioner practicing psychiatry and neurology/psychiatry from an office located at 4 Corporate Drive in Shelton. In October 2020, law enforcement began investigating Ciancimino’s prescribing practices of various benzodiazepines, such as Xanax, and stimulants, such as Adderall. During the investigation, federal task force officers acting in an undercover capacity paid Ciancimino $200 during visits to receive prescriptions for Xanax or Adderall, or their generic equivalents, with little to no medical examination.
Ciancimino was arrested on September 23, 2021. On January 24, 2022, he pleaded guilty to one count of distribution of a controlled substance without a legitimate medical purpose and outside the scope of professional practice.
In addition to his fine, Ciancimino has forfeited $175,773.45 seized at the time of his arrest.
Ciancimino, who is released on a $500,000 bond, is required to report to prison on July 25.
Ciancimino surrendered his medical license in January.
This investigation was conducted by the DEA New Haven Tactical Diversion Squad and HHS-OIG’s Office of Investigations, with the assistance of the Connecticut Department of Consumer Protection – Drug Control Division and the Middlebury Police Department. The DEA’s Tactical Diversion Squad includes personnel from the DEA and the Bristol, East Windsor, Glastonbury, Hamden, Manchester, New Britain, Newington, Watertown and West Haven Police Departments.
This case was prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Former CPA Sentenced for Submitting False Documents to the IRSRead the Press Release
LONDON, Ky.- A former Certified Public Accountant (CPA), Charles Marshall Stivers, 59, of Manchester, Kentucky, was sentenced to 10 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, for submitting false documents to the IRS.
According to Strivers’ plea agreement, in 2015, he had previously been convicted in the Eastern District of Tennessee for participating in a cigarette tax stamp conspiracy; and as a result, he had his CPA license revoked by the Kentucky Board of Accountancy. Despite that, on multiple occasions from 2016 to 2019, Stivers held himself out as a CPA and falsely completed IRS Form 2848s (Power of Attorney and Declaration of Representative) indicating he was a licensed CPA.
Stivers pleaded guilty in December 2021.
Under federal law, Stivers must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for two years.
In addition to his prison sentence, he was also ordered to pay a $30,000 fine.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), Great Lakes Field Division, jointly announced the sentence.
The investigation was conducted by TIGTA. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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Former Aequitas Senior Executive and Chief Financial Officer Pleads Guilty to Making False Statements to a CreditorRead the Press Release
PORTLAND, Ore.—A former senior executive and chief financial officer of Aequitas Management, LLC, and several other entities formerly owned by Aequitas, pleaded guilty today to submitting a false statement to an Aequitas creditor to obtain a $4.2 million loan for the now-defunct company.
Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank.
According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitas’s behalf
By early January 2016, Aequitas’s general counsel advised Gillis and other executives that the company would soon default on payments due to Private Note investors, causing an “event of default” on Aequitas’s loan agreement with Wells Fargo. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an “advance notice,” requesting that Wells Fargo advance $4.2 million to Aequitas with a false certification that Aequitas was not confronting a potential event of default.
On August 11, 2020, the U.S. Attorney’s Office announced that Gillis had been charged in a 34-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Gillis was charged alongside former Aequitas CEO Robert J. Jesenik, 62, of West Linn, Oregon, and former Aequitas executives Brian K. Rice, 55, of Portland, and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023.
Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years’ supervised release. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court.
This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Attorneys for the District of Oregon.
Firearms Charge Brought Against Fresno Man Arrested in Operation No Fly ZoneRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Andre Marcele Grigsby, 50, of Fresno, charging him with being a felon in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced.
The case arose from Operation No Fly Zone, a multi-agency, months-long investigation that resulted in the arrests of over 40 individuals, including seven federal defendants. According to court documents, on April 14, 2022, Grigsby was found to be in possession of a firearm and ammunition. Grigsby has been convicted of felony child cruelty in 2015 in Fresno County.
This case is the product of an investigation by the Federal Bureau of Investigation; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Fresno Police Department; the Fresno-area Multi-Agency Gang Enforcement Consortium (MAGEC); the California Department of Justice Special Operations Unit, the California Department of Justice Human Trafficking / Sexual Predator Apprehension Team; the California Highway Patrol; the Fresno County Sheriff’s Office; the Kings County Sheriff’s Office; the California Department of Corrections and Rehabilitation; and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case.
If convicted, Grigsby faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH - A resident of Munhall, Pa., pleaded guilty in federal court to charges of cocaine trafficking and illegal firearm possession, United States Attorney Cindy K. Chung announced today.
Shaun Seidling, age 40, pleaded guilty to both counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Seidling arranged to have a kilogram of cocaine mailed to his residence, but postal inspectors seized the package and then executed a search of his residence. There, investigators located items which included the package, additional amounts of cocaine, a 9mm caliber handgun, ammunition for 9mm and .22 caliber firearms, scales and other drug packaging items. Court documents indicate that Seidling has previously been convicted of multiple felony offenses which preclude his lawful possession of a firearm or ammunition. One of those convictions was a prior federal conviction for illegally possessing a firearm.
Judge Schwab scheduled sentencing for October 12, 2022, at 9:30 am. The law provides for a total sentence of at least 5 years and up to 50 years in prison, a fine of up to $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
United States Postal Inspection Service conducted the investigation that led to the successful prosecution of Seidling, with valuable assistance from the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Federal Officials Adhere to Prior Decision Related to Nassar InvestigationRead the Press Release
The Justice Department announced today that after careful re-review of evidence gathered in the investigation of two former FBI special agents in connection with their involvement in the FBI’s investigation of Lawrence G. Nassar, it is adhering to its prior decision not to bring federal criminal charges.
This decision comes after multiple reviews and analyses of evidence gathered in the investigation of the former agents, and reflects the recommendation of experienced prosecutors. This does not in any way reflect a view that the investigation of Nassar was handled as it should have been, nor in any way reflect approval or disregard of the conduct of the former agents.
While the Justice Department’s Office of Inspector General has outlined serious concerns about the former agents’ conduct during the Nassar investigation, and also described how evidence shows that during interviews in the years after the events in question both former agents appear to have provided inaccurate or incomplete information to investigators, the Principles of Federal Prosecution require more to bring a federal criminal case.
We will continue to learn from what occurred in this matter, and undertake efforts to keep victims at the center of our work and to ensure that they are heard, respected, and treated fairly throughout the process, as they deserve. To that end, the department has continued to assess gaps in the law to protect the most vulnerable among us from exploitation. Addressing those gaps could help prevent events like this from taking place in the future and hold perpetrators accountable. We stand ready to collaborate with Congress to do so.
Federal Jury Finds Two Men Guilty for Roles in Major Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – After two days of trial, a federal jury today convicted Leo Antoine Smith, 38, of Cross Lanes, of conspiracy to distribute a quantity of methamphetamine and Douglas Johnathan Wesley, 33, of Charleston, of being a felon in possession of a firearm.
With today’s verdicts, all 17 individuals charged with various drug and firearms offenses in three separate indictments have either pleaded guilty or been otherwise convicted. The cases resulted from a long-term investigation of a large-volume methamphetamine conspiracy operating in and around St. Albans and South Charleston.
“This case represents an outstanding example of inter-agency teamwork and diligence that not only dismantled a significant drug operation, but also prevented a violent crime from occurring on Charleston’s West Side,” said United States Attorney Will Thompson. “I commend the excellent investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, the Kanawha County Sheriff’s Department, and the Metropolitan Drug Enforcement Network Team (MDENT). I also thank Assistant United States Attorneys Joshua Hanks and Alex Hamner and the trial team for their commitment to this case and I congratulate them on its successful prosecution.”
Evidence at trial revealed Smith distributed methamphetamine around Charleston between the fall of 2020 and September 21, 2021, and connected Wesley to a foiled Fourth of July 2021 murder scheme.
On at least one occasion in early 2021, Smith traveled with Brian Dangelo Terry to Atlanta to purchase methamphetamine from Ramon David Alston. Trial testimony, wiretap evidence, and text messages obtained from Smith’s cellphones revealed that he distributed more than 60 ounces of methamphetamine.
Wesley was one of four men who armed themselves at a Rand residence on July 4, 2021, and drove to Charleston’s West Side where they intended to shoot another man. Alerted to the plot, police in marked cruisers converged on the area. The four men abandoned their vehicle in a Lee Street parking lot due to the increased police presence. Law enforcement officers executed a search warrant on the vehicle and recovered four loaded firearms. The jury found Wesley possessed one of those firearms, a Sig Sauer, Model SP2022, .40-caliber pistol.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Wesley knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery in Kanawha County Circuit Court on August 4, 2005, and for being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on June 10, 2013.
Ramon David Alston, James Edward Bennett III, Treydan Leon Burks, Jonathan Gregory Bush, Kaitlyn Brooke Combs, Kelly Cordle, Denise Marie Cottrill, Shane Kelly Fulkerson, Brittany Frances Gilbert, Angie Lane Harbour, Scott Edward Hudson, Jason Robert Oxley, Michael Antonio Smith and Brian Dangelo Terry all pleaded guilty. Timothy Wayne Dodd was convicted on March 24, 2022, following a two-day jury trial.
United States District Judge Joseph R. Goodwin presided over the jury trial. Smith is scheduled to be sentenced on August 15, 2022, and Wesley on August 17, 2022. Smith faces up to 20 years in prison. Wesley faces up to 10 years in prison.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-171, 2:21-cr-172, 2:21-cr-211, and 2:22-cr-90.
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Federal Grand Jury Indicts Fresno Felon on Federal Firearm ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Salvador Tyrone Peraza, 22, of Fresno, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 6, 2022, law enforcement officers conducted a traffic-enforcement stop on a car driven by Peraza. Inside the car, officers found a loaded, privately manufactured firearm, also referred to as a “ghost gun” because of its lack of a serial number. Peraza has previously been convicted of several felony convictions and is therefore prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Fresno Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Peraza faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Drug and Gun Charges Brought Against Fresno ManRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Sorondo Jr., 49, of Fresno, charging him with conspiring to traffic fentanyl, methamphetamine, and cocaine, illegally possessing firearms, and possessing fentanyl with intent to distribute it, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in January and February 2022, Sorondo conspired with others to possess and distribute fentanyl, methamphetamine, and cocaine. On Feb. 1, 2022, when law enforcement officers tried to contact Sorondo, he fled and tossed a firearm over a chain-link fence. The officers apprehended Sorondo and then recovered the abandoned, loaded firearm. Two weeks later, a police officer arrested Sorondo in possession of another two firearms and about 100 counterfeit oxycodone pills laced with fentanyl. Sorondo is prohibited from possessing firearms because of his prior felony convictions. Sorondo is currently in custody awaiting trial on these charges.
This case is the product of an investigation by FORT, a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
If convicted of the drug offenses, Sorondo faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of being a felon in possession of a firearm or ammunition, he faces up to 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Federal Charges Result from Weekend Undercover Operation in Downtown Entertainment DistrictRead the Press Release
NASHVILLE – A Nashville, Tennessee man is facing federal drug distribution and firearms charges, as a result of an undercover operation last weekend in the downtown entertainment district, announced U.S. Attorney Mark H. Wildasin.
Khalil D. Smith, 26, was charged today, in a criminal complaint, with possession with intent to distribute fentanyl; possession of a firearm in furtherance of a drug trafficking crime; and being a convicted felon in possession of a firearm.
According to the complaint, on Friday night, members of the Metropolitan Nashville Police Department (MNPD) Specialized Investigation Division were conducting an undercover operation in the downtown entertainment district with the aim of identifying persons buying and selling illegal narcotics in the Broadway area. This operation was conducted in response to an increase in the number of people overdosing in that area after ingesting fentanyl.
After seeing an individual snorting cocaine, detectives arranged to purchase a “ball” of cocaine from the individual’s source. A short time later, the individual returned with Smith and another person. Smith approached the detectives and directed them to a business on 4th Avenue South, where Smith exchanged a bag of white powder for $200. Officers then attempted to arrest Smith, at which point he fled on foot. After a foot pursuit, MNPD officers took Smith into custody. The powder tested positive for fentanyl.
At the time of Smith’s arrest, he was in possession of multiple plastic bags containing a total of approximately 11 grams of fentanyl; a bag containing approximately 6 grams of cocaine; a bag containing approximately 21 grams of marijuana; a bag containing 23 full Xanax bars and multiple partial pieces of Xanax bars; as well as a 9mm Beretta semiautomatic handgun, which was loaded with 17 rounds of ammunition.
Smith was found to have been previously convicted of multiple felonies in Davidson County and Rutherford County, Tennessee.
If convicted, Smith faces a mandatory minimum sentence of five years, and up to life in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Robert McGuire is prosecuting the case.
The charges are merely accusations. Smith is presumed innocent until proven guilty in a court of law.
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Father and Son Prosecuted for Bank Fraud SchemeRead the Press Release
BIRMINGHAM, Ala. – On Tuesday, a father and son appeared in court on charges stemming from a bank fraud scheme in which they provided fraudulent information to financial institutions for the purpose of obtaining loans, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie C. Axon sentenced Christopher A. Montalbano, 39, of Vestavia, to 180 months in prison and ordered him to pay restitution in the amount of $11,924,471.00. Montalbano pleaded guilty to conspiracy to commit bank fraud, bank fraud, and money laundering in November 2021.
“Today’s sentence demonstrates that schemes to defraud federally-insured financial institutions are serious crimes that carry significant penalties,” U.S. Attorney Escalona said. “This defendant caused a multi-million-dollar loss to the victims. We will continue to work tirelessly with our law enforcement partners to hold perpetrators of these fraud schemes accountable and use all tools at our disposal to recover their ill-gotten gains.”
“Montalbano deserves every day of this sentence, as he went to great lengths to cover up his massive fraud scheme,” SAC Sharp said. “Hopefully, Montalbano enjoyed the short time he had with the luxury items he purchased with money he swindled from federally insured banks, as he will now pay for his crimes with years behind bars. American citizens can be assured that the FBI will continue to pursue predators who drag down our economy by deception for their own personal gain.”
According to the sentencing memo, between 2016 and 2020, Montalbano engaged in a bank fraud scheme targeting financial institutions insured by the Federal Deposit Insurance Company (FDIC) and the National Credit Union Administration (NCUA) in multiple states including Alabama. Montalbano, through his shell companies, and/or known associates, fraudulently obtained millions of dollars in loans from at least twenty different financial institutions by submitting fraudulent information and supporting documentation on more than 140 loans. Montalbano obtained these loan proceeds in his personal name, through a shell company, or in the name of a co-conspirator. Montalbano specifically used the loan proceeds to pay for an extravagant lifestyle which included traveling on a private jet aircraft, employing private pilots, employing a personal assistant, purchasing multiple high-end vehicles including Lamborghinis and Ferraris, and purchasing multiple real properties, including a residential home in a gated community, a lake house, and farmland.
To further facilitate the bank fraud scheme, Montalbano created internet websites for some of his shell companies including Land Work Tractor & Equipment (LWT&E), previously located in Florida and then Vincent, Alabama. On the LWT&E website, Christopher Montalbano posted photographs of agricultural and construction equipment, UTVs and boats which were purportedly in LWT&E’s possession and for sale. However, the majority of these photographs were copied and taken from the internet websites of legitimate equipment dealers. As a further part of the scheme, Christopher Montalbano purchased adjoining properties totaling approximately 150 acres in Vincent, Alabama, where LWT&E was purportedly located. Christopher Montalbano then gated the private access road(s) which both prevented unscheduled access, and severely limited the lenders’ ability to verify LWT&E’s possession of the equipment being sold and/or the validity of the equipment pictures on LWT&E’s internet website.
Gus Montalbano, 77, of Vestavia, pleaded guilty before U.S. District Court Judge Annemarie C. Axon to conspiring with Christopher Montalbano to commit bank fraud.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Robin B. Mark and Kristen Osborne are prosecuting the cases.
Fairfield Man Indicted for Possession of Methamphetamine and Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against William Josiah Scrivner, 36, of Fairfield, charging him with possession with intent to distribute methamphetamine and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 23, 2022, law enforcement officers observed Scrivner as the driver and sole occupant of a vehicle in the parking lot of the NorthBay Medical Center in Fairfield. The officers arrested Scrivner on an outstanding Solano County arrest warrant. A post-arrest search of his person and vehicle resulted in approximately 40 grams of methamphetamine, $551 on his person, and a digital scale in his car. A probation search of Scrivner’s residence resulted in the discovery of two firearms, one of which was stolen, firearm parts and ammunition, additional methamphetamine, and two more scales. Scrivner is prohibited from possessing firearms or ammunition because he has been convicted of several felonies, including two prior convictions for possession of methamphetamine for sale and a prior conviction for being a felon in possession of ammunition.
This case is the product of an investigation by the Fairfield Police Department, the Solano County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of the narcotics offense, Scrivner faces a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the firearms offense, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Duluth Felon Sentenced to Nearly Eight Years in Prison for Illegal Possession of a FirearmRead the Press Release
DULUTH, Minn. – A Duluth man was sentenced to 95 months in prison, followed by three years of supervised release for illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, Jesse William Peterson, 40, possessed a .38-caliber Smith and Wesson revolver with an obliterated serial number. On October 25, 2020, officers with the Duluth Police Department attempted to arrest Peterson at a residence on an outstanding warrant. Peterson refused to exit the residence and comply with officers’ attempts to arrest him. Peterson shot the firearm at the direction of officers. After a two-hour stand-off, Peterson was taken into custody. Officers found the loaded .38-caliber Smith and Wesson revolver in the bathroom where Peterson was located during the stand-off. A subsequent analysis revealed Peterson’s DNA on the firearm. Directly adjacent to the firearm, officers found 13.76 grams of methamphetamine, 11.13 grams of cocaine, 38 doses of LSD, $5,826 in cash, and 11 live rounds of .38-caliber ammunition. Because Peterson has prior felony convictions in St. Louis County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Peterson was sentenced yesterday by U.S. District Judge Nancy E. Brasel. Peterson pleaded guilty to one count of illegal possession of a firearm on August 24, 2021.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the Drug Enforcement Administration (DEA), the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.
Assistant U.S. Attorney Joseph S. Teirab prosecuted the case.
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