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Tuesday 5 April 2022
A Violent Convicted Felon who Led Officers on a Chase Through Macon Residential Areas is Sentenced to Prison for Illegally Possessing Firearms, AmmoRead the Press Release
MACON, Ga. – A Middle Georgia resident with a violent criminal history was sentenced to prison for illegally possessing a firearm after he was captured following a high-speed and foot chase through residential areas involving multiple law enforcement agencies, helicopter support and a K-9 unit.
Angel D. Feliciano, 36, of Warner Robins, was sentenced to serve 120 months in prison to be followed by three years of supervised release today by U.S. District Judge Tilman E. “Tripp” Self, III. A federal jury found Feliciano was guilty of possession of a firearm by a convicted felon on Dec. 14, 2021. There is no parole in the federal system.
“Due to his long and violent criminal history, Angel Feliciano is now facing a lengthy prison sentence for illegally possessing a dangerous weapon after he attempted to out-run officers through residential areas in the Macon community,” said U.S. Attorney Peter D. Leary. “Our office will seek federal prosecution for violent reoffenders caught with guns. I want to especially acknowledge the good work by all of the law enforcement teams involved in safely capturing Feliciano.”
According to court documents and evidence presented at trial, law enforcement were alerted to be on the lookout for a stolen vehicle on June 15, 2020. A GSP trooper monitoring traffic on I-75 spotted the stolen vehicle in the southbound lane at mile marker 190, driven by Feliciano, and attempted to pull him over. Instead of stopping, Feliciano accelerated, and a high-speed chase ensued.
Multiple officers from the Bibb County Sheriff’s Office and GSP joined the effort to pull Feliciano over as he became increasingly reckless, exiting the highway and racing through residential areas, striking several vehicles, all of which was captured on dash cam. A successful PIT maneuver was executed, stopping Feliciano’s vehicle. Feliciano then fled on foot. A GSP helicopter provided air support during the search. Feliciano was eventually found by a Georgia Department of Corrections (DOC) K-9 and was taken into custody.
A 9mm semiautomatic pistol loaded with 17 rounds of ammunition and a stolen .32 caliber semiautomatic pistol were found in Feliciano’s car. Feliciano has a lengthy criminal history, including convictions for aggravated assault, fleeing law enforcement, reckless driving and possession of a firearm by a convicted felon.
The case was investigated by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Georgia State Patrol (GSP) and the Bibb County Sheriff’s Department, with assistance from the Georgia Department of Corrections (DOC).
Assistant U.S. Attorneys Joy Odom and Shanelle Booker prosecuted the case.
20 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Cabo Rojo, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 31, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 20 violent gang members from the municipality of Cabo Rojo with conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances, as well as firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI), and the Puerto Rico Police Bureau (PRPB), Mayagüez Strike Force, led the investigation, with assistance from the United States Marshals Service, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Also assisting in today’s arrets were: the Drug Enforcement Administration (DEA), United States Customs and Border Protection (CBP), and United States Border Patrol.
“These arrests spotlight the hard work and dedicated partnership between the men and women of our federal, state and local law enforcement agencies,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We share the mission of taking violent criminals off the streets and enhancing community-wide efforts to make Puerto Rico a safer place for all.”
“Today’s operation is an example of the dedication and hard work of the men and women of the FBI. Our commitment to Puerto Rico is to all 100x35 miles and it’s municipal islands as well,” said Joseph González, FBI Special Agent in Charge. “Organized crime will not be tolerated, and we will continue to dismantle groups like this to give back the communities they’ve taken from the people.”
The indictment alleges that from 2015, continuing up to and including 2019, the drug trafficking organization distributed cocaine base (commonly known as “crack”), cocaine, marihuana, and Oxycodone (Percocet), within 1,000 feet of the Santa Rita de Casia Public Housing Project, and other areas nearby the municipality of Cabo Rojo. The object of the conspiracy was the large-scale distribution of controlled substances in Cabo Rojo for significant financial gain and profit.
The 20 defendants acted in different roles to further the goals of their organization, including as leaders, enforcers, runners, sellers, and facilitators. Nine of the defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, members of the drug trafficking organization named themselves “Los Lobos” (the wolves) and would display hand signs to identify themselves as such. Some of them have tattoo wolf designs on their bodies such as the paw print of a wolf, to identify themselves as members of the organization. The defendants and their co-conspirators established a drug distribution point that would move within different areas inside the public housing project to avoid police detection. Members of the conspiracy, upon request, delivered drugs to different locations within the municipality of Cabo Rojo.
The members of the gang used force, violence, and intimidation against rival drug traffickers, as well as members of their own drug trafficking organization, to intimidate and maintain control of the drug trafficking operation. Another means of intimidation used by the co-conspirators was setting vehicles on fire.
The defendants charged are:
Juan Gabriel Rivera-Surita, a.k.a. “Gaby”
Nelson Enrique Aragonés-Nazario
Rafael Irizarry-Santiago, a.k.a. “Rafy”
Antonio Ferrer-Pabón, a.k.a. “Pingui”
Santos Delgado-Colón, a.k.a. “Santitos/El Cojo”
Eric Joel Ortiz-Ribot, a.k.a. “Joito”
Bryan Lee Rodríguez-Mercado, a.k.a. “Brallitan”
Alexander Olivo-Franqui, a.k.a. “El Menor”
Jean Paul Lamboy-Palermo, a.k.a. “Jampi”
José Enrique Rivera-Negrón, a.k.a. “Joito”
Kyfran Janiell Casiano-Jorge
Jayson Ramos-Jorge, a.k.a. “Bibi”
Jennifer Villanueva-Pérez, a.k.a. “La Flaca”
Oscar Andrés Vélez-Matos
Rafael Manuel Irizarry-Vélez, a.k.a. “Pucho”
Edian Palermo-Barea
Brenda L. Rodríguez-Rosado
Roberto L. Lamberty, a.k.a. “Sierra Linda”
Kifran Adrián Casiano-Alayon
Alex Aragonés, a.k.a. “Nono”
Assistant U.S. Attorney and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Tereza Zapata-Valladares, AUSAs Pedro Casablanca, and Joseph L. Russell are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a mandatory minimum sentence of 15 years, and up to life in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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18-Year-Old Indicted for First Degree MurderRead the Press Release
An 18-year-old Tulsa man who allegedly initiated a shooting that caused the death of one man and the serious injury of another was indicted this week in federal court, announced U.S. Attorney Clint Johnson.
Sir Michael Morgan Jr. was charged with first degree murder in Indian Country; assault with intent to commit murder in Indian Country; assault with a dangerous weapon with intent to do bodily harm in Indian Country; assault resulting in serious bodily injury in Indian Country; and discharging a firearm during and in relation to a crime of violence.
On Jan. 29, 2022, Morgan Jr. allegedly murdered Isaiah Jones during a shooting that occurred on N. Johnstown Avenue in Tulsa. He is further alleged to have shot a 17-year-old minor with intent to commit murder during the same incident. During the exchange of gunfire, Morgan Jr. was also shot.
An individual who knew the two victims said he heard the gunshots from inside his home and transported the victims to the hospital. Once there, Jones was pronounced dead from multiple gunshot wounds. The second victim survived.
Morgan Jr. was transported by ambulance to the hospital where he was treated for two gunshot wounds.
The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law
125 Convicted During Five-Year Investigation That Functionally Dismantled the Irish Mob Gang’s Drug Trafficking and Criminal ActivitiesRead the Press Release
OKLAHOMA CITY – A five-year, state-wide investigation into the drug trafficking and other criminal activity of the Irish Mob Gang (IMG), an Oklahoma-based prison gang, has resulted in 125 defendants being convicted across multiple federal cases, including more than a dozen high-ranking, incarcerated members of the Irish Mob.
The wrap-up of this investigation and prosecution effort is jointly announced by United States Attorney Robert J. Troester, Federal Bureau of Investigation Special Agent in Charge Ed Gray, Oklahoma City Police Chief Wade Gourley, and IRS Criminal Investigations Special Agent in Charge of Dallas Field Office Christopher Altemus.
Over the course of this multi-phased investigation, federal, state, and local law enforcement used various investigative tools and techniques, including a dozen court-approved wire taps on phones used by the IMG’s network. More than half of the wire taps were on contraband cell phones smuggled into state prisons that defendants used to direct trafficking operation outside prison walls. In addition to convicting 125 IMG members and associates, law enforcement seized more than 525 pounds of methamphetamine and heroin, 212 firearms, and almost $600,000 in drug proceeds and real property associated with the IMG’s criminal activity.
Crimes for which the 125 IMG members and associates were convicted include drug trafficking, drug conspiracy, money laundering, witness retaliation, witness tampering, maintaining drug premises, illegal firearms possession, and possession of drugs and drug paraphernalia, among others.
Of the 125 defendants, one defendant received a life sentence in federal prison, 113 have been collectively sentenced to 1,350 years in federal prison, seven lower-level defendants collectively received 33 years of probation in federal court, and two defendants received 15 years of deferred sentences in state court. Two defendants are still pending sentencing.
Among the defendants are the following:
- David Postelle, 39, the head of the IMG, ran the drug trafficking operation from his maximum-security state prison cell by connecting fellow IMG members to sources of supply for drugs through contraband cellphones. A federal judge held him responsible for either distributing or assisting in the distribution of over 270 kilograms of methamphetamine. Postelle was sentenced to life in federal prison for his part in orchestrating this large-scale drug trafficking ring from behind prison walls.
- Chad Hudson, 41, the leader of the IMG before Postelle took over, was held responsible for dealing more than 45 kilograms of methamphetamine from inside his maximum security prison cell. Hudson was sentenced to serve 348 months in federal prison.
- Zachary Clark, 31, an IMG member and state inmate, was found responsible for distributing approximately 100 kilograms of methamphetamine from state custody. While in federal custody, Clark also engaged in repeated attempts to intimidate witnesses. Clark was sentenced to serve 480 months in federal prison.
- Aaron Keith, 40, an IMG member and state inmate, was convicted for conspiracy to distribute methamphetamine from his state prison cell. He was involved with multiple acts of violence, including participating in the stabbing of another IMG member believed to be cooperating with authorities against the gang. Keith was sentenced to serve 480 months in federal prison.
- Rogelio Velasquez, 44, one of the sources of drug supply for the IMG, was convicted of conspiracy to traffic drugs and lauder drug proceeds. When he was arrested in Kansas, he had over 100 firearms stashed in several locations, and wiretap interceptions during the investigation revealed that Velasquez was trafficking firearms to Mexico. The investigation also implicated Velasquez in an attempted murder in Kansas. Velasquez was sentenced to serve 310 months in federal prison.
- Niko Davis, 30, an IMG associate, was arrested when intercepted communications indicated that he had been dispatched by Richard Coker, 39, an IMG member and state inmate, to "pistol whip” a third party in exchange for some heroin. Coker had likewise told Davis regarding a witness, “I need her head blown off.” For their respective parts in the overall IMG drug conspiracy, Davis was sentenced to 84 months in federal prison, while Coker was sentenced to 360 months in federal prison.
- Jade Nichols, 26, was initially convicted in March 2020 of being a felon unlawfully in possession of a firearm and ammunition. Nichols was convicted again in June 2021 of two counts of witness tampering—one of the assaults coming at the direction of another incarcerated leader of the IMG. Finally, Nichols was convicted for a third time in December 2021 along with Chad Clark, 36, of witness retaliation after assaulting a cooperating defendant. Nichols and Clark are awaiting sentencing.
Other defendants include high-ranking members of the IMG, a Mexican-based source of drug supply to the IMG, drug couriers, money launderers, and even two state prison guards.
Early in this investigation, death threats were made against two prosecutors by IMG associates. Additional security measures were required to ensure that the prosecutions were undeterred, and the safety of the prosecutors was maintained throughout this investigation. Likewise, during the investigation, and thanks to law enforcement’s use of wiretaps, dozens of acts of potential violence were prevented, ranging from potential shootings to kidnappings and assaults.
"This wide-spread drug trafficking operation was primarily directed and controlled by incarcerated gang members using contraband cell phones from their state prison cells," said United States Attorney Robert J. Troester. "Now, 125 gang members and associates have been held accountable, more than 525 pounds of deadly drugs have been taken off the streets, and 212 firearms have been taken out of the hands of criminals. I commend the outstanding effort and long-term coordinated teamwork of law enforcement partners led by the FBI, Oklahoma City Police Department, and IRS-Criminal Investigation, who worked closely with the dedicated and outstanding prosecutors in my office."
"This was an outstanding example of federal, state, and local agencies working together to positively impact the state of Oklahoma by disrupting and dismantling this large-scale violent gang involved in drug trafficking," said Ed Gray, Special Agent in Charge of the FBI Oklahoma City Division. "Make no mistake, the sentences handed down should serve as a warning to those thinking of filling the void created by the successful prosecution and convictions in this case – we aren’t finished. Our agents are dedicated and persistent. We will continue our efforts to free the community of deadly drugs, drug dealers and the violent crime it perpetuates across our cities while fulfilling our mission to Protect the American People."
"The Oklahoma City Police Department appreciates the partnerships we have with our state and federal agencies," said OCPD Chief of Police Wade Gourley. "Public safety in Oklahoma City takes a considerable team effort. This investigation is a perfect example of how we work together to combat major crimes, which have a huge impact on the safety of our residents. Methamphetamine use and its associated criminal activity have a detrimental effect on our city and this operation will certainly make our community safer. Thank you to everyone involved for your continued support and dedication to the safety of Oklahoma City residents."
"These prosecutions are an important victory for the American public. The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs," said Christopher Altemus, IRS Criminal Investigation, Special Agent in Charge, Dallas Field Office. "Without these ill-gotten gains, the traffickers cannot finance their organizations. The role of IRS-CI in narcotics investigations is to follow the money to financially disrupt and dismantle drug trafficking and money laundering organizations. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice."
The investigation was spearheaded by the Federal Bureau of Investigation – Oklahoma City Field Office, the Oklahoma City Police Department, the Internal Revenue Service–Criminal Investigation, and the United States Attorney’s Office for the Western District of Oklahoma. Valuable assistance was provided from numerous other law enforcement partners including the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Oklahoma Bureau of Narcotics, the Oklahoma Department of Corrections, the United States Marshals Service, and the Oklahoma County District Attorney’s Office.
These prosecutions were part of multiple related Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys David McCrary, Nick Coffey, Steven Creager, Chelsie Pratt, Travis Leverett, David Petermann, and Kerry Blackburn prosecuted these cases, with assistance from Supervisory Paralegal Jenifer Rowe.
Reference is made to public filings for more information.
Monday 4 April 2022
Waterbury Man Sentenced to 5 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that on April 1, 2022, MALEKE SOCKWELL, 27, of Waterbury, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by three years of supervised release, for drug trafficking and firearm possession offenses.
According to court documents and statement made in court, on March 12, 2021, Waterbury Police observed Sockwell selling drugs from his vehicle in a supermarket parking lot in Waterbury. After Sockwell drove to a location on Wolcott Street, parked on a sidewalk and exited his vehicle, officers approached. Sockwell attempted to flee but was apprehended a short distance away. A search of his vehicle revealed a loaded 9mm semi-automatic pistol, fentanyl and crack cocaine packaged for distribution, a digital scale, and $8,759 in cash.
Sockwell’s criminal history includes felony convictions for robbery and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Sockwell has been detained since his arrest. On December 6, 2021, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”) and fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of unlawful possession of a firearm by a felon.
This matter was investigated by the Federal Bureau of Investigation and the Waterbury Police Department. The case was prosecuted by Assistant United States Attorney John T. Pierpont, Jr.
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.
Virginia Beach Man Pleads Guilty to Possessing a Machine Gun Used in a ShootoutRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty last week to illegal possession of a machine gun.
According to court documents, Shy’Quan Dodson, 25, possessed a machine gun on July 18, 2021. That day, Norfolk Police (NPD) officers were in the vicinity of the 900 block of Tunstall Avenue in Norfolk, where they observed multiple individuals shooting at each other. The individuals fled in three separate vehicles, and during the ensuing pursuit a firearm was tossed from the rear of the vehicle. After a 15-minute pursuit that ended in a crash in Portsmouth, Dodson was detained while attempting to flee on foot from the vehicle. The firearm tossed from the vehicle was a Glock with an attached component that converted the handgun into a fully automatic machine gun.
A search of Dodson’s cell phone showed photos of him holding the weapon, and a primer residue test revealed that Dodson had primer particles on his hands from the discharge of a firearm. Dodson’s phone also contained communications with another individual related to the buying and selling of machine gun conversion kits.
Dodson is scheduled to be sentenced on August 12. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after U.S. District Judge John A. Gibney accepted the plea.
Special Assistant U.S. Attorney Graham M. Stolle and Assistant U.S. Attorneys Joseph DePadilla and William B. Jackson are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 2:22-cr-1.
United States Secure Forfeiture of Millions in Cryptocurrency Used to Launder Illicit Dark Web ProceedsRead the Press Release
Miami, Florida – In one of the largest cryptocurrency forfeiture actions ever filed by the United States, federal prosecutors in the Southern District of Florida successfully forfeited approximately $34 million worth of cryptocurrency tied to illegal Dark Web activity.
According to the U.S. Government’s civil forfeiture complaint, law enforcement agents identified a South Florida resident raking in millions by using an on-line alias to make over 100,000 sales of illicit items and hacked online account information on several of the world’s largest Dark Web marketplaces. For example, the South Florida resident sold hacked online account information for popular services such as HBO, Netflix, and Uber, among others, and accessed the Dark Web by utilizing the TOR (The Onion Router) Network. The Onion Router Network is a special network of computers distributed around the world designed to anonymize a user’s internet traffic by concealing computers’ IP (Internet Protocol) addresses.
As detailed in the complaint, records analyses revealed that the South Florida resident utilized so-called “tumblers” and illegal Dark Web money transmitter services to launder one cryptocurrency for another—a technique called “chain hopping”—in violation of federal money laundering statutes. A tumbler is a Dark Web mixing service that pools together multiple cryptocurrency transactions. Then, the tumbler distributes the cryptocurrency to a designated cryptocurrency wallet at random times, and in random increments. The goal is to obscure the original source of funds. Law enforcement agents seized various cryptocurrency wallets associated with the illegal Dark Web conduct.
This forfeiture action is the result of Operation TORnado, a joint investigation that stems from the ongoing efforts by OCDETF, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Matthew D. Line, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office; George L. Piro, Special Agent in Charge, FBI Miami; Deanne L. Reuter, Special Agent in Charge, DEA Miami; Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, and Joseph W. Cronin, Inspector in Charge, Miami Division, U.S. Postal Inspection Service (USPIS), made the announcement.
IRS-CI, FBI, DEA, Homeland Security Investigations (HSI), and U.S. Postal Inspection Service (USPIS) investigated the case.
Asset Forfeiture Division Assistant U.S. Attorney Mitch Hyman and Deputy Chiefs Nicole Grosnoff and Nalina Sombuntham prosecuted this asset forfeiture action. Monique Botero, Chief of the Southern District of Florida’s International Money Laundering and Narcotics Section, is the lead prosecutor on Operation TORnado.
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 21-cv-62182.
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Un yate del oligarca ruso sancionado Viktor Vekselberg valorado en 90 millones de dólares es incautado por España a petición de Estados UnidosRead the Press Release
Nota: Las imágenes de la incautación están disponibles aquí. Vea la declaración del Fiscal General sobre la incautación aquí.
Lunes 4 de abril de 2022 - Las fuerzas y cuerpos de seguridad españoles ejecutaron hoy una orden judicial española que congela el Motor Yacht (M/Y) Tango (el Tango), yate de lujo de 77 metros de eslora propiedad del oligarca ruso sancionado Viktor Vekselberg. Las autoridades españolas actuaron de conformidad con una solicitud de asistencia del Departamento de Justicia de EE.UU. tras la emisión de una orden de incautación, presentada en el Tribunal de Distrito de EE.UU. para el Distrito de Columbia, que alegaba que el Tango estaba sujeto a decomiso por los delitos de fraude, blanqueo de capitales y estatutos sancionadores. Por separado, las órdenes de incautación obtenidas en el Tribunal de Distrito de EE.UU. para el Distrito de Columbia apuntan a aproximadamente 625.000 dólares asociados a partes sancionadas en nueve instituciones financieras de EE.UU. Esas incautaciones se basan en violaciones de sanciones por parte de varios ciudadanos rusos especialmente designados.
Según los documentos presentados en este caso, la investigación estadounidense alega que Vekselberg compró el Tango en 2011 y lo ha poseído continuamente desde entonces. Además, alega que Vekselberg usó compañías ficticias para ocultar su propiedad del Tango con el fin de evitar la supervisión bancaria de las transacciones en dólares estadounidenses relacionadas con el mismo. Además, después de que Vekselberg fuera sancionado por el Departamento del Tesoro de EE.UU. el 6 de abril de 2018, la orden alega que Vekselberg y quienes trabajaban en su nombre continuaron realizando pagos en dólares estadounidenses a través de bancos estadounidenses para el apoyo y mantenimiento del Tango y sus propietarios, incluidos un pago por una estancia en un lujoso resort de villas acuáticas en las Maldivas en diciembre de 2020 y tarifas de amarre para el yate. Vekselberg tenía interés en estos pagos y, por lo tanto, se requirió una licencia del Departamento del Tesoro, que no se obtuvo.
“Esta es la primera incautación por parte de nuestro grupo de trabajo de un activo perteneciente a un individuo sancionado con estrechos vínculos con el régimen ruso. No será la última”, ha dicho el Fiscal General, Merrick B. Garland. “Juntos, con nuestros socios internacionales, haremos todo lo posible para responsabilizar a cualquier persona cuyos actos criminales permitan al gobierno ruso continuar su guerra injusta”.
“La acción de hoy deja claro que los oligarcas rusos corruptos no pueden evadir las sanciones para vivir una vida de lujos mientras los ucranianos inocentes sufren”, ha dicho la Fiscal General Adjunta, Lisa O. Monaco. “Hoy, el Departamento de Justicia cumple con su compromiso de responsabilizar a aquellos cuya actividad criminal fortalece al gobierno ruso mientras continúa librando su injusta guerra en Ucrania. Ese compromiso no hemos terminado de cumplirlo”.
“Hoy también anunciamos otro ejemplo de cómo el FBI hace uso de su presencia y sus alianzas internacionales, así como de su pericia y su experiencia, para rastrear e incautarse de dinero y activos ilícitos para contrarrestar las amenazas a nuestra seguridad nacional”, ha dicho el director del FBI, Christopher Wray. "Seguiremos utilizando todas las herramientas legales para perseguir los activos de los oligarcas rusos designados, como sea y donde sea que los oculten".
La incautación fue coordinada a través del Grupo de trabajo KleptoCapture del Departamento de Justicia, grupo de trabajo interinstitucional encargado de hacer cumplir la ley y dedicado a hacer cumplir las sanciones amplias, las restricciones a la exportación y las contramedidas económicas que EE.UU. ha impuesto, junto con sus aliados y socios, en respuesta a la invasión militar no provocada de Ucrania por parte de Rusia. Anunciado por el Fiscal General el 2 de marzo y ejecutado por la Oficina del Fiscal General Adjunto, el Grupo de trabajo hará uso de todas las herramientas y la autoridad del Departamento para contrarrestar los esfuerzos para evadir o socavar las acciones económicas emprendidas por el gobierno de EE.UU. en respuesta a la agresión militar rusa.
“La incautación de este yate de lujo demuestra nuestra determinación para responsabilizar a quienes apoyan la invasión injustificada de otro país soberano por parte de Vladimir Putin”, ha declarado el fiscal federal para el Distrito de Columbia Matthew M. Graves. “Seguiremos utilizando todas las herramientas para hacer cumplir las sanciones dirigidas al régimen de Putin y los oligarcas que lo apoyan. Trabajando con nuestros socios federales e internacionales, seremos incansables en nuestros esfuerzos para llevar ante la justicia a quienes violen estas sanciones y confiscar activos cuando sea apropiado y legal”.
“La incautación hoy del yate de Viktor Vekselberg, el Tango, en España es el resultado de un esfuerzo multinacional sin precedentes para hacer cumplir las sanciones de Estados Unidos dirigidas a aquellas elites que han permitido la invasión ilegal y no provocada de Ucrania por parte de Rusia”, dijo Andrew Adams, director del Grupo de trabajo KleptoCapture. “Para aquellos que han vinculado su fortuna a un régimen brutal y anárquico, la acción de hoy es un mensaje de que los países comprometidos con el estado de derecho están igualmente comprometidos con separar a los oligarcas de sus lujos corruptos. Esta incautación es solo el comienzo del trabajo de este Grupo de trabajo en este esfuerzo global para castigar a aquellos que han apoyado y continúan apoyando la tiranía para obtener ganancias financieras”.
“El FBI continuará trabajando con sus socios para proteger la integridad del sistema bancario y respaldar la aplicación de los programas de sanciones”, ha dicho el agente especial a cargo Michael F. Paul, de la oficina local del FBI en Minneapolis. “Los agentes y analistas del FBI, independientemente de dónde estén asignados en todo el mundo, trabajarán incansablemente para garantizar que quienes intentan evadir las sanciones rinden cuentas”.
“La invasión rusa de Ucrania fue un acto de agresión no provocada que tiene como objetivo la vida y el bienestar de millones de personas y amenaza la seguridad internacional”, ha declarado el agente especial interino a cargo Ricky J. Patel, de Investigaciones de Seguridad Nacional (HSI, por sus siglas en inglés) de Nueva York. “Durante décadas, el régimen de Putin ha sido apoyado por un grupo de oligarcas rusos que abusaron de su poder en beneficio propio para acumular una riqueza incalculable. Como brazo de investigación del Departamento de Seguridad Internacional (DHS) el grupo de HSI se encuentra al frente de la lucha contra las redes globales que buscan violar las leyes de EE.UU. y explotar los sistemas financieros de nuestro país. Trabajando con nuestros socios en el Departamento de Justicia de EE.UU. y el FBI, responsabilizaremos a los oligarcas de Putin y les negaremos el lujoso estilo de vida que aprecian”.
Al recibir una solicitud de EE. UU. en virtud del tratado bilateral de asistencia judicial recíproca en asuntos penales, la autoridad central española de asistencia judicial recíproca remitió la solicitud a un fiscal español, quien obtuvo una orden de incautación de un tribunal español. La orden fue ejecutada por la Guardia Civil española el 4 de abril.
Se cree que el Tango, número 1010703 de la Organización Marítima Internacional, tiene un valor aproximado de 90 millones de dólares o más. El yate se encuentra ahora en Mallorca.
La carga de probar la confiscación en un procedimiento de confiscación recae sobre el gobierno.
Este asunto está siendo investigado por la oficina de campo del FBI de Minneapolis con la asistencia de la oficina de campo de HSI en Nueva York.
La fiscal federal adjunta para el Distrito de Columbia Karen P. Seifert y los asistentes legales para el Distrito de Columbia Brian Rickers y Jessica McCormick están gestionando la incautación. La Oficina de Asuntos Internacionales del Departamento de Justicia ha brindado una asistencia significativa en el trabajo con las autoridades españolas, así como la Sección de Blanqueo de Dinero y Recuperación de Activos (MLARS por sus siglas en inglés) de la División Criminal.
In English
U.S. Attorney Damian Williams Announces the Appointment of Chief CounselRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, today announced the appointment of Andrea Griswold as Chief Counsel to the United States Attorney.
Since March 2013, Ms. Griswold has served as an Assistant U.S. Attorney in the Southern District of New York. Since June 2020, she has served as the Deputy Chief and then Co-Chief of the Securities and Commodities Fraud Task Force. Prior to assuming a supervisory position in that unit, Ms. Griswold investigated and prosecuted a wide variety of significant securities fraud and public corruption cases, and also served as an Acting Chief of the Narcotics Unit. Prior to her public service, she worked for more than five years as an associate at Simpson Thacher & Bartlett. Ms. Griswold received her B.A. from Georgetown University and her J.D. from New York University School of Law.
In making the appointment, U.S. Attorney Damian Williams said: “I am thrilled to have Andrea Griswold join my senior leadership team as Chief Counsel to the United States Attorney. Andrea is a star. She is a brilliant lawyer, a natural leader, and a wise counselor. I am confident that she will bring her trademark excellence to this new role.”
Ms. Griswold will continue to serve as Co-Chief of the Securities and Commodities Fraud Task Force for the next several months as she transitions into her new position.
Two Men Sentenced to Combined 8 Years in $1.5 Million Apple Gift Card SchemeRead the Press Release
The perpetrators of a $1.5 million Apple gift card scheme have been sentenced to a combined eight years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Syed Ali, 29, and his co-conspirator, Jason Tout-Puissant, 27, both pleaded guilty to wire fraud in 2019. Mr. Ali was sentenced in October 2021 by U.S. District Judge David Godbey to 37 months in federal prison; Mr. Tout-Puissant was sentenced today by the same judge to 60 months in federal prison and ordered to pay $1.26 million in restitution to Apple.
According to plea papers, Mr. Tout-Puissant admitted that he stole multiple Apple point-of-sale devices – nicknamed “Isaacs” – from an Apple store in Southlake, Texas, then sat outside the store, logged onto the store’s wifi network, and loaded thousands of dollars of fraudulent store credits onto gift cards.
He then loaded the giftcards onto Apple Passbook, an application that generates QR codes for the value of gift cards, and sent screenshots of those codes to Mr. Ali.
In his plea papers, Mr. Ali admitted that he and an unindicted coconspirator used those QR codes to purchase thousands of dollars’ worth of Apple products from brick-and-mortar retail stores in New York.
According to the indictment, the conspiracy involved more than $1.5 million in fraudulently obtained Apple gift cards.
“If these defendants thought their million-dollar fraud would go unnoticed simply because they targeted a trillion-dollar company, they were sorely mistaken,” said U.S. Attorney Chad Meacham. “The Justice Department will not tolerate fraud against any company, be it a multinational corporation or a mom-and-pop operation. We are grateful to our FBI partners for their work on this case.”
“The FBI is committed to tackling fraud schemes from every angle, and today the defendants will now be held accountable,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “This carefully orchestrated scheme resulted in financial loss for a large corporation, and that fraud also victimizes American consumers.”
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The New York Field Office assisted with Mr. Ali’s arrest. Assistant U.S. Attorney Sid Mody prosecuted the case.
Two Individuals Sentenced for Child Pornography OffensesRead the Press Release
BLUEFIELD, W.Va. – A McDowell County woman and a Virginia man were each sentenced to federal prison today for child pornography offenses.
Lacosta Steele, 25, of Iaeger, was sentenced to 15 years while Nicholas Aaron Icenhour, 25, of Tazewell, Va., was sentenced to 22 and one-half years during separate hearings. The prison sentences are to be followed by supervised release terms of 30 years for Icenhour and 20 years for Steele. Both are required to register as sex offenders upon their release from prison.
According to court documents and statements made in court, in October and November 2020 Icenhour directed Steele, his then-girlfriend, to persuade a 12-year-old girl to engage in sexually explicit conduct, including masturbation and the lascivious exhibition of her genitals, for the purpose of creating videos of this conduct. Steele then sent those videos to Icenhour. Steele also transported the same 12-year-old girl, at Icenhour’s direction, to R.D. Bailey Lake where he engaged in sexual intercourse with the minor.
Icenhour pleaded guilty to production of child pornography in January 2022. Steele pleaded guilty to distribution of child pornography in December 2021.
U.S. Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and Homeland Security Investigations (HSI).
“It is vital that we do all we can to stop such predators,” Thompson said. “The harm they cause our children, and our communities, is as far-reaching as it is tragic.”
Senior United States District Judge David A. Faber imposed the sentences. The court called Icenhour’s conduct “outrageous and inexcusable” during the sentencing hearing. Assistant U.S. Attorney Jennifer Rada Herrald prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-00187.
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TracFone Wireless to Pay $13.4 Million to Settle False Claims Relating to FCC’s Lifeline ProgramRead the Press Release
WASHINGTON – TracFone Wireless Inc. (TracFone) has agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline).
Lifeline, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. In many cases, this consists of a free cell phone (provided by the carrier) and free monthly cell phone service (provided by the government). In order to qualify for Lifeline, a consumer’s income must be at or below 135% of the Federal Poverty Guidelines or the consumer must receive benefits from certain specified federal assistance programs.
The United States alleged that between 2012 and 2015, TracFone, a telecommunications carrier based in Miami, impermissibly signed up more than 175,000 subscribers who were ineligible for the program. TracFone hired independent third-party sales agents, including agents hired by Elite Promotional Marketing Inc. (Elite), to enroll these customers. These agents learned that TracFone’s computer software contained a glitch that allowed ineligible persons to enroll in Lifeline. Some agents in Florida then exploited the glitch to increase their consumer enrollments and commission payments. The government alleged that TracFone failed to adequately review the applications and did not properly investigate reports of clearly ineligible subscribers enrolled in the program that would have revealed the glitch. After TracFone eventually discovered the software glitch in August 2015, it repaid more than $10.9 million to Lifeline, an amount that was credited as part of the $13.4 million settlement.
“Lifeline providers have a duty to ensure that only eligible subscribers are enrolled in the Lifeline Program,” said Deputy Assistant Attorney General Michael D. Granston of the Civil Division’s Commercial Litigation Branch. “Today’s settlement demonstrates our commitment to ensure that those participating in government funded programs exercise appropriate vigilance to prevent the misuse of taxpayer dollars.”
“The U.S. Attorney’s Office is committed to protecting taxpayer funds and safeguarding federal programs from false claims,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to identify and eliminate practices that defraud Lifeline and other federal programs.”
“Today’s settlement reflects the FCC’s ongoing commitment to root out waste, fraud and abuse in its universal service programs,” said Chairwoman Jessica Rosenworcel of the FCC. “Especially during these unprecedented times, the Universal Service Fund provides a key lifeline for many families, and our careful stewardship of the program ensures that low-income households can access the telecommunications services they so critically need. Let today’s action serve as a warning to others that we will do everything we can to ensure strict compliance with the rules of the road.”
“The FCC Office of Inspector General (OIG) is committed to eliminating fraud, waste and abuse in the Lifeline and other FCC programs, and appreciates its strong partnership with the U.S. Department of Justice,” said Inspector General David Hunt of the FCC OIG. “We will continue to work with our law enforcement partners to ensure these funds are safeguarded from false claims by fund recipients.”
Contemporaneous with the civil settlement, TracFone has agreed to enter into a corporate compliance plan with the FCC. Based upon TracFone’s disclosure, assistance with the government’s investigation, and early repayment in connection with the allegations, TracFone also received a credit for cooperation in connection with the settlement announced today.
The settlement with TracFone resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in September 2015 by Farrell Gordon, formerly a Lifeline sales representative at Elite. Elite previously settled with the United States for $95,000 based on ability to pay. As part of the resolution, Mr. Gordon will receive $462,500.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section, the FCC OIG and FCC Office of General Counsel.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Gordon v. TracFone Wireless, Inc., et al., No. 6:15-cv-1457 (M.D. Fla.).
TracFone Wireless to Pay $13.4 Million to Settle False Claims Relating to FCC’s Lifeline ProgramRead the Press Release
TracFone Wireless Inc. (TracFone) has agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline).
Lifeline, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. In many cases, this consists of a free cell phone (provided by the carrier) and free monthly cell phone service (provided by the government). In order to qualify for Lifeline, a consumer’s income must be at or below 135% of the Federal Poverty Guidelines or the consumer must receive benefits from certain specified federal assistance programs.
The United States alleged that between 2012 and 2015, TracFone, a telecommunications carrier based in Miami, impermissibly signed up more than 175,000 subscribers who were ineligible for the program. TracFone hired independent third-party sales agents, including agents hired by Elite Promotional Marketing Inc. (Elite), to enroll these customers. These agents learned that TracFone’s computer software contained a glitch that allowed ineligible persons to enroll in Lifeline. Some agents in Florida then exploited the glitch to increase their consumer enrollments and commission payments. The government alleged that TracFone failed to adequately review the applications and did not properly investigate reports of clearly ineligible subscribers enrolled in the program that would have revealed the glitch. After TracFone eventually discovered the software glitch in August 2015, it repaid more than $10.9 million to Lifeline, an amount that was credited as part of the $13.4 million settlement.
“Lifeline providers have a duty to ensure that only eligible subscribers are enrolled in the Lifeline Program,” said Deputy Assistant Attorney General Michael D. Granston of the Civil Division’s Commercial Litigation Branch. “Today’s settlement demonstrates our commitment to ensure that those participating in government funded programs exercise appropriate vigilance to prevent the misuse of taxpayer dollars.”
“The U.S. Attorney’s Office is committed to protecting taxpayer funds and safeguarding federal programs from false claims,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to identify and eliminate practices that defraud Lifeline and other federal programs.”
“Today’s settlement reflects the FCC’s ongoing commitment to root out waste, fraud and abuse in its universal service programs,” said Chairwoman Jessica Rosenworcel of the FCC. “Especially during these unprecedented times, the Universal Service Fund provides a key lifeline for many families, and our careful stewardship of the program ensures that low-income households can access the telecommunications services they so critically need. Let today’s action serve as a warning to others that we will do everything we can to ensure strict compliance with the rules of the road.”
“The FCC Office of Inspector General (OIG) is committed to eliminating fraud, waste and abuse in the Lifeline and other FCC programs, and appreciates its strong partnership with the U.S. Department of Justice,” said Inspector General David Hunt of the FCC OIG. “We will continue to work with our law enforcement partners to ensure these funds are safeguarded from false claims by fund recipients.”
Contemporaneous with the civil settlement, TracFone has agreed to enter into a corporate compliance plan with the FCC. Based upon TracFone’s disclosure, assistance with the government’s investigation, and early repayment in connection with the allegations, TracFone also received a credit for cooperation in connection with the settlement announced today.
The settlement with TracFone resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in September 2015 by Farrell Gordon, formerly a Lifeline sales representative at Elite. Elite previously settled with the United States for $95,000 based on ability to pay. As part of the resolution, Mr. Gordon will receive $462,500.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section, the FCC OIG and FCC Office of General Counsel.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Gordon v. TracFone Wireless, Inc., et al., No. 6:15-cv-1457 (M.D. Fla.).
Three Morgan Management Employees Plead Guilty to Bank LarcenyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Todd Morgan, Frank Giacobbe, and Michael Tremiti pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to bank larceny. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorneys Evan Glaberson and Paul Parisi, who are handling the case, stated that defendants Tremiti and Morgan worked for Morgan Management, LLC., a real estate management company that managed over 100 multi-family properties. Tremiti was the Vice President of Finance and Morgan was a Project Manager. Tremiti and Morgan admitted submitting false documents to the ESL Federal Credit Union to obtain a construction loan. The loan was used to construct Ellison Heights Apartments, a multi-family residential complex in Penfield, NY.
Defendant Giacobbe owned and operated Aurora Capital Advisors, LLC, which brokered loans for borrowers seeking financing for multi-family properties such as apartment complexes. Through Aurora, Giacobbe worked as a mortgage broker on behalf of Morgan Management. Morgan Ellicott Apartments, LLC, was a limited liability company created to purchase a multi-family residential apartment complex located at 221 and 291 William Street in Buffalo, NY, known as Morgan Ellicott Apartments. Morgan Ellicott sought to obtain a loan from Evans Bank. Giacobbe, working with others, submitted documents and information to Evans Bank that overstated the contract purchase price of Morgan Ellicott, falsely represented the obligations associated with Morgan Ellicott, and misrepresented the actual purchase price of the property. Giacobbe also made misrepresentations designed to conceal from Evans Bank that he and others were not using the loan proceeds to purchase or maintain the property as required by the loan agreement.
The pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
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South Florida Defendant Who Assaulted and Threatened to Kill Federal Prosecutor Lands Himself Additional Time in PrisonRead the Press Release
Miami, Florida – A 34-year-old Palm Beach Gardens man who hurled a chair at, and threatened to kill, an Assistant United States Attorney (AUSA) after receiving an unfavorable jury verdict has been sentenced to 80 months in federal prison.
On November 7, 2019, a South Florida federal jury found Christopher Tavorris Wilkins guilty of committing various firearms and witness tampering crimes. As members of the jury left the courtroom after delivering their verdict, Wilkins picked up a chair close to him and flung it at the AUSA prosecuting his case, barely missing the prosecutor. While Deputy United States Marshals worked to restrain the defendant, Wilkins yelled at the AUSA that Wilkins would kill him.
Wilkins was charged in a separate case with assaulting and threatening to kill a federal prosecutor. A jury found Wilkins guilty, and U.S. District Judge Aileen M. Cannon sentenced him to 80 months in prison. This sentence will run consecutive to the 210-month sentence that Wilkins received on the underlying gun and witness tampering convictions. In short, Wilkins can expect to spend the next 24 years in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida; and Christopher A. Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
The U.S. Marshal’s Service for the Southern District of Florida and Miami ATF investigated this matter. Assistant United States Attorneys Ajay J. Alexander and Brooke E. Latta prosecuted the case.
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 on http://pacer.flsd.uscourts.gov, under case number 21-cr-60037.
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Sioux City Man to Federal Prison for Illegal Possession of a FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced April 1, 2022, to more than 2 years in federal prison.
Jamaal Ferguson, 22, from Sioux City, Iowa, received the prison term after a December 1, 2021, guilty plea to being a prohibited person in possession of a firearm.
The evidence in the case revealed that on August 7, 2021, Ferguson criminally possessed a loaded handgun and 28 grams of marijuana. This most recent offense was the last in a number of incidents involving Ferguson.
After participating in a violent home invasion on January 29, 2016, where a victim was forced to his knees, threatened, hit in the eye, and robbed at gunpoint, Ferguson attempted to do another home invasion robbery on February 5, 2016. Because of these incidents, Ferguson was adjudicated delinquent and sent to the Iowa State Training School for Boys. Within a year of discharge, on May 5, 2018, Ferguson assembled a group and committed another home invasion. This time Ferguson was not there to commit a robbery, this time he was there specifically to commit an assault (even hitting the victim in the face with brass knuckles). Following the incident, Ferguson was convicted but sentenced to probation. While on probation, on February 19, 2019, Ferguson committed another home invasion. He hit and kicked the victim in the head and threatened multiple people with a handgun. On February 19, 2019, law enforcement recovered a handgun possibly used in the February 2019 home invasion, and a semi-automatic rifle. Ferguson was again convicted. Despite multiple criminal convictions, and despite being a prohibited possessor of guns, sometime before August 7, 2021, Ferguson criminally rearmed again.
Ferguson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ferguson was sentenced to 33 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Ferguson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and the USDOJ’s Bureau of Alcohol, Tobacco, Firearms, and Explosives, and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4084. Follow us on Twitter @USAO_NDIA.
Shiprock woman arraigned for assaultRead the Press Release
ALBUQUERQUE, N.M. – Faith Nicholle Sullivan, 27, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court on April 1 on a charge of assault with a dangerous weapon. Sullivan will remain in custody pending trial.
A federal grand jury indicted Sullivan on Oct. 14, 2021. According to the indictment and other court records, on June 8, 2021, Sullivan allegedly assaulted a Navajo Police Officer with a knife. The alleged assault occurred at Sullivan’s residence in Shiprock on the Navajo Nation.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Sullivan faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigation and the Navajo Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
Sex Offender Sentenced to Thirty-Five Years in Federal Prison for Child Exploitation OffensesRead the Press Release
PANAMA CITY, FLORIDA – Gregory Ralph Whitman, 58, of Panama City, Florida, was sentenced to thirty-five years in federal prison after pleading guilty on December 9, 2021, to attempted enticement of a minor, receipt of child pornography, and for committing a felony while a registered sex offender. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This sentence acknowledges the deviant acts of a child predator,” said U.S. Attorney Coody. “Ensuring the safety of our communities is a top priority. With the assistance of our law enforcement partners, we remain vigilant to investigate and prosecute those who seek to harm our most vulnerable.”
In September 2020, a Federal Bureau of Investigation (FBI) undercover operation revealed that Gregory Whitman, who resided in Panama City, Florida, used social media to solicit pornographic photographs from a person he believed to be a 14-year-old boy. The FBI identified Whitman as a previously convicted sex offender in Florida. Through collaborative efforts, the Bay County Sheriff’s Office (BCSO) obtained and executed a search warrant for Whitman’s residence. The search revealed Whitman was in possession of multiple images and videos containing child pornography.
Whitman's federal prison sentence will be followed by 10 years of supervised release. He will also be required to pay $15,000.00 in restitution. Whitman will continue to be required to register a sex offender and will be subject to all registration conditions.
“The exploitation of children is a heinous crime that requires swift and intense law enforcement action,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “This case is a direct result of the commitment by the FBI and the Bay County Sheriff’s Office to protect innocent children and to identify, investigate and arrest online predators.”
“This case proves again that those that prey on children adapt and use the latest technology and law enforcement must keep up to stop them,” said Bay County Sheriff Ford. “We will continue to actively combat this terrible crime with our local and federal partners, but parents and guardians are the first line of defense against child predators. Sheriff Ford asks parents and guardians to monitor children’s activities on the internet closely, including what sites they visit and with whom they communicate.”
This conviction was the result of an investigation conducted by the Federal Bureau of Investigation and the Bay County Sheriff’s Office. First Assistant United States Attorney Michelle Spaven prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Schenectady Felon Pleads Guilty to Firearm, Marijuana ChargesRead the Press Release
ALBANY, NEW YORK – Muhammad Coleman, age 42, of Schenectady, New York, pled guilty today to unlawfully possessing a firearm as a felon, and to possessing and conspiring to distribute marijuana.
The announcement was made by United States Attorney Carla B. Freedman and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
Coleman admitted that he conspired with others to sell marijuana, including by selling marijuana from his residence from at least May to October 2021. He also admitted to possessing about 20 pounds of marijuana, and to possessing a 10 mm Caspian Arms handgun, when the DEA searched his house on October 21, 2021. Coleman was not permitted to possess this firearm as a result of a prior drug felony conviction.
Coleman faces up to 20 years in prison, as well as a minimum term of post-imprisonment supervised release of 3 years, when United States District Judge Mae A. D’Agostino sentences him on August 4, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Coleman agreed to forfeit, as proceeds of the marijuana conspiracy, $319,387 in U.S. currency, and nine items of jewelry collectively worth more than $100,000, which the DEA seized on October 21, 2021.
This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local law enforcement agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, and the Washington County Sheriff’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted in this investigation. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
San Felipe woman arraigned for assault on a childRead the Press Release
ALBUQUERQUE, N.M. – Salina Nicole Sandoval, 29, of San Felipe, New Mexico, and an enrolled member of the San Felipe Pueblo, was arraigned in federal court on April 1 on a charge of assault resulting in serious bodily injury of a child under the age of 18. Sandoval is out of custody on conditions of release.
A federal grand jury indicted Sandoval on March 23. As alleged in the indictment, on Jan. 21, Sandoval assaulted a child, identified as Jane Doe, who is also an enrolled member of the San Felipe Pueblo. The alleged assault occurred at Sandoval’s home in Sandoval County, New Mexico, on the San Felipe Pueblo.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Sandoval faces a minimum of 10 years and up to life in prison.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
San Bernardino County Lawyer Sentenced to 10 Years in Federal Prison for Receiving Sexually Explicit Images from MinorRead the Press Release
LOS ANGELES – A lawyer who formerly had a legal practice in Ontario was sentenced today to 120 months in federal prison for receiving sexually explicit images and videos from a minor over Snapchat.
Sagi Schwartzberg, 39, of Fontana, who used the aliases “Jason D,” “drunkesq_064” and “xocdrunkx” on social media platforms, was sentenced by United States District Judge André Birotte Jr., who also ordered him to pay a $10,000 fine and ordered him to serve a 20-year period of supervised release upon the completion of his prison term.
Schwartzberg, whose California law license was suspended on January 24, pleaded guilty in August 2021 to one count of receipt of child pornography.
From 2019 to January 2021, Schwartzberg used Snapchat to communicate with a minor victim. Between May 2020 and December 2020, Schwartzberg received several sexually explicit images and videos of the victim over Snapchat.
In November 2020, law enforcement received a tip from Kik, another instant messaging application, that one of its users had shared suspected child pornography with another Kik user or group of users from October 2020 to November 2020.
The tip indicated that a person later identified as Schwartzberg had uploaded suspected child pornography to Kik from two locations – later determined to be his residence and his law office.
Law enforcement also discovered that in February 2020 Kik had also submitted a tip that one of its users had shared suspected child pornography with another user or group of users in February 2020. One of the IP addresses associated with the child pornography was assigned to Schwartzberg’s Fontana residence and another IP address was assigned to his previous work address in Rancho Cucamonga.
During a search on February 17, Fontana Police officers seized Schwartzberg’s mobile phone, which had a hidden vault containing file folders, labeled with girls’ names, one of which contained sexually explicit images and videos of a girl who was at the time 14 and 15 years old when the images were created.
During a subsequent interview with police officers that is outlined in the affidavit, the girl said she had been solicited by Schwartzberg to send sexually explicit images via Snapchat starting 2019 and that she had received electronic gift cards in exchange.
In addition to this victim, law enforcement located four additional individuals in California, Minnesota and Iowa, who provided information that Schwartzberg paid for sexually explicit photos and videos of them via Snapchat and Kik. These victims were minors at the time Schwartzberg contacted them.
“Trading child pornography and soliciting sexually explicit photos . . . [and] videos from minors, is shameful and shocking behavior from an adult man, much less an adult man from [Schwartzberg’s] background: an attorney, a father, a husband, an educated man of profession who appears to enjoy professional and financial success as well as a wide circle of personal friends and colleagues,” prosecutors wrote in a sentencing memorandum.
The FBI investigated this matter in conjunction with Fontana Police Department, as part of Inland Regional Child Exploitation and Human Trafficking Task Force. The Task Force also includes the Upland Police Department, the Rialto Police Department, the San Bernardino County Sheriff's Department, the Riverside County District Attorney’s Office, the Riverside County Sheriff’s Department and the Riverside Police Department.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office prosecuted this case.
St. Louis Man Pleads Guilty for His Role in Drug Trafficking and MurderRead the Press Release
St. Louis, MO – Jerell Henderson, 31, of Saint Louis, MO, pleaded guilty to one count of conspiracy to possess with the intent to distribute a controlled substance; one count of conspiracy to possess one or more firearms in furtherance of drug trafficking; and one count of possession, brandishing, and discharge of a firearm in furtherance of drug trafficking resulting in the death of 26-year-old Ladareace Pool on October 3, 2017. Henderson entered his guilty plea in front of U.S. District Court Judge Henry E. Autrey prior to the start of jury selection in Henderson’s federal jury trial slated to begin this morning.
According to the plea agreement, Henderson and his associates were involved in drug trafficking at 4739 Goodfellow Boulevard on October 3, 2017. While there, Henderson and his associates came into contact with victim Ladareace Pool. Henderson and four of his associates agreed to, and did, rob the victim at gun point of drugs and money. Henderson and two others specifically committed the robbery. During the robbery, the victim attempted to run away. As the victim ran, the victim was shot twice in the back and died as a result of his gunshot injuries.
The drug and firearm conspiracy charges carry maximum terms of 20 years imprisonment. Henderson faces a mandatory minimum term of imprisonment of 10 years to life for the firearm charge resulting in death. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The sentencing date has been set for July 13, 2022. The United States intends to present evidence at sentencing regarding Henderson’s firearm possession and discharge of that firearm at the victim on October 3, 2017.
Three of Henderson’s co-defendants, Stephan Jones, Larenta Jones, and Floyd Barber, have previously been convicted in this matter.
“This investigation exemplifies the hard work and close coordination between our local and federal partners to ensure that each person involved in crime, particularly the most violent crime, is held accountable for their actions,” said U.S. Attorney Sayler A. Fleming after today’s proceedings. “Whether a case is five days or five years old, we continue to work with the dedicated members of law enforcement to pursue justice for crime victims and their families.”
This case is being prosecuted by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force. The Saint Louis Metropolitan Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case.
Russellville Man Sentenced to 20 Years for Methamphetamine and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – On April 4, 2022, Lynn Richard Norton, 62, currently of Russellville, Tennessee, was sentenced to 240 months in prison followed by five years of supervised release by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
A federal jury convicted Norton of conspiracy to distribute more than 50 grams of methamphetamine, distribution of methamphetamine, and possession of a firearm by a convicted felon in March 2021. In determining the sentence, Judge Greer found Norton to be an Armed Career Criminal pursuant to the Armed Career Criminal Act, based on his criminal history.
According to evidence presented at trial, in 2019, Norton conspired to distribute more than 50 grams of methamphetamine with James Ward. Ward testified for the United States that he supplied Norton with two to four ounces of methamphetamine per week, and on two occasions, Norton sold Ward methamphetamine. On April 8, 2019, Norton sold methamphetamine and a Bryco Arms 9 mm pistol to a confidential informant who was working with the Hamblen County Sheriff’s Office.
The conviction and sentence resulted from an investigation by the Hamblen County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Emily Swecker and Mac Heavener represented the United States.
The Appalachia HIDTA mission is to enhance and coordinate drug enforcement efforts of local, state, and federal law enforcement agencies within areas designated as High Intensity Drug Trafficking Areas by pursuing the disruption/dismantlement of Drug Trafficking Organizations, particularly as it relates to the specific drug threat of the Appalachian region.
This case is also 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 working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Red Lake Man Sentenced to 12 Years in Prison for MurderRead the Press Release
BEMIDJI, Minn. – A Ponemah man was sentenced today to 144 months in prison followed by five years of supervised release for the murder of a woman on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.
According to court documents, in 2019, William Jones, IV, 24, and the victim were involved in a romantic relationship and lived together at the victim’s house in Ponemah. During the evening of November 6, 2019, Jones repeatedly assaulted the victim in their residence, hitting her on the shoulders, arms, and torso, and throwing her against a wall. During the assault, the victim’s head was struck, and she suffered a brain injury. Jones did not contact emergency personnel or attempt to render aid to the victim despite her obvious injuries. The victim remained in the house unconscious for almost two days. During that time, Jones was in the house and chose not to contact emergency personnel or otherwise render any aid to the victim.
According to court documents, on November 8, 2019, Jones’s mother contacted emergency personnel after arriving at the house and observing the victim’s condition. The victim was transported to Sanford Hospital in Fargo, North Dakota, where medical personnel determined that the victim suffered a traumatic brain injury, which caused the victim to remain in a persistent vegetative state with no hope for recovery. The victim died on November 22, 2019, as a result of her injuries and the defendant’s failure to seek immediate and life-saving medical assistance on the victim’s behalf.
Jones pleaded guilty to one count of second-degree murder on October 21, 2021. He was sentenced today by U.S. District Judge Nancy E. Brasel.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorneys Evan B. Gilead and Deidre Y. Aanstad prosecuted the case.
Providence Man Sentenced to More Than Four Years on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – A Providence man previously convicted and incarcerated on drug trafficking charges today was sentenced to more than four years in federal prison on additional and unrelated drug trafficking and firearm charges brought as the result of a Project Safe Neighborhoods investigation, announced United States Attorney Zachary A. Cunha.
Joaquin Fabian, 24, was sentenced by U.S. District Court Judge Mary S. McElroy to 50 months of incarceration to be followed by three years of federal supervised release. He pleaded guilty in December to possession of a firearm by a prohibited person, possession of cocaine with intent to distribute, and possession of marijuana with intent to distribute.
According to charging documents and information presented to the court, in January 2021, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Task Force agents and Providence Police Detectives determined that Fabian regularly drove to Southeastern Massachusetts to conduct drug trafficking business, routinely changing vehicles and employing counter-surveillance techniques in an effort to avoid detection. During one such trip on April 14, 2021, he posted a photograph on social media of a handgun positioned between his legs while he was seated in a motor vehicle.
As Fabian returned to the area of his Providence residence, members of the ATF Task Force conducted a traffic stop of his vehicle. As he exited the vehicle, Fabian grabbed towards his waistline consistent with efforts to draw a firearm, and fled on foot. Task Force officers quickly located Fabian; a Glock semi-automatic pistol, consistent with the firearm in the photograph, was located on the ground nearby.
Following Fabian’s arrest, a total of 64.8 grams of cocaine, 1,030.9 grams of marijuana, three loaded magazines of ammunition, nearly 300 rounds of assorted ammunition, and $18,802 in cash were seized from Fabian’s vehicle and residence.
Fabian had recently completed a term of incarceration at the Adult Correctional Institutions for a drug trafficking conviction prior to his arrest in April 2021. Additionally, he was free on bail awaiting trial in state court on unrelated assault and firearm charges.
The case in federal court was prosecuted by Assistant U.S. Attorney William J. Ferland. United States Attorney Cunha thanks the Providence Police Department for their support and assistance in this investigation.
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.
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Prior sex offender sentenced to 18 years in prison for possessing child pornographyRead the Press Release
DAYTON, Ohio – A local photographer with a history of sex offenses was sentenced in federal court to 18 years in prison for possessing child pornography, including images of young children he photoshopped to be sexually explicit.
Henry Douglas Hitchcock, 61, of Covington, Ohio, was also sentenced to 15 years of supervised release following his imprisonment.
According to court documents, Hitchcock possessed at least 220,000 images and videos depicting child pornography, which he had collected over a span of 20 years.
The defendant morphed images of pre-pubescent children to make the children appear nude.
Hitchcock was convicted of local child exploitation crimes in 1998 and 2002.
“Hitchcock has repeatedly demonstrated that nothing short of this significant term of incarceration will stop him from continuing to sexually exploit children,” said U.S. Attorney Kenneth L. Parker. “This office is dedicated to protecting children – the most vulnerable victims in our communities.”
Hitchcock was indicted by a federal grand jury in November 2021 and pleaded guilty in January 2022 to possessing child pornography.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Christina E. Mahy is representing the United States in this case.
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Preston County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joseph Lee Shrout, of Independence, West Virginia, was sentenced today to 37 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Shrout, 30, pleaded guilty in October 2021 to one count of “Unlawful Possession of Firearm.” Stout, a person prohibited from having a firearm because of a prior conviction, admitted to having a 9mm pistol in February 2021 in Preston County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Philadelphia Man Stopped by State Police on the PA Turnpike Pleads to Heroin Possession ChargeRead the Press Release
PITTSBURGH - A Philadelphia resident pleaded guilty in federal court to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Cristobal Rosa-Robles, 51, pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin, before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that, on March 27, 2019, a Trooper with the Pennsylvania State Police stopped Mr. Rosa-Robles’ vehicle for traffic violations as he drove eastbound on the Pennsylvania Turnpike. After speaking with Mr. Rosa-Robles, the Trooper believed that he may be involved in drug trafficking, so the Trooper asked for his consent to search his vehicle. Mr. Rosa-Robles voluntarily consented to a search of his vehicle. The Trooper searched Mr. Rosa-Robles’ vehicle and discovered an aftermarket hidden compartment that contained approximately 400 bricks, or 20,000 dosage units, of a mixture of heroin; fentanyl; valeryl fentanyl, a fentanyl analogue; and methamphetamine.
Judge Ranjan scheduled sentencing for August 8, 2022. The law provides for a total sentence of not less than five years and up to 40 years of imprisonment, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Mr. Rosa-Robles remains detained pending sentencing.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Mr. Rosa-Robles.
Pair arrested for $4M in CARES Act fraud schemeRead the Press Release
HOUSTON – Two individuals have been arrested following the return of an indictment alleging conspiracy to commit and committing wire fraud, announced U.S. Attorney Jennifer B. Lowery.
Law enforcement took Felicia Garza, 36, into custody at her home in Houston. She is expected to make her initial appearance before U.S. Magistrate Judge Cynthia Y. Ho tomorrow at 2 p.m.
Dylan Kinlock, 29, Orlando, Florida was arrested at his home March 30.
The seven-count indictment alleges Garza and Kinlock devised a scheme to solicit others to fraudulently apply for Paycheck Protection Program (PPP) loans the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided. The two allegedly utilized victims’ personal information to create falsified documents and apply for a PPP loan on their behalf.
The false documents allegedly included fictitious Schedule C tax forms reporting profit or loss from a business, 1099-MISC forms and invoices reporting incorrect income to qualify for the loans, according to the charges. Kinlock allegedly solicited each of his victims to execute a contract with him in which they agreed to share a portion of their PPP loans.
The indictment alleges Kinlock participated in at least 241 fraudulent PPP loan applications resulting in the distribution of approximately $4,844,274 of CARES Act money. The indictment alleges Kinlock pocketed nearly $939,379 from the victims for whom he assisted in securing the defrauded PPP loans, according to the charges.
If convicted, Kinlock and Garza face up to 20 years in federal prison and a $250,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Kate Suh and Jay Hileman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Operator of Westport Tree Service Company Sentenced to Prison for Tax EvasionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ROBERT PORZIO, 48, of Westport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by one year of supervised release, for tax evasion. Judge Underhill also ordered Porzio to pay a $25,000 fine.
According to court documents and statements made in court, Porzio, who operates Bert’s Tree Service, Inc., deposited numerous customers’ checks into personal bank accounts, transferred a significant portion of the funds into a personal investment account, and kept from the corporation’s bookkeeper his receipt of the additional payments. These diverted payments were not reported either on his individual federal tax returns as additional salary or on the corporation’s tax returns as additional receipts.
For the 2012 through 2016 tax years, Porzio failed to report a total of more than $900,000 in additional income. The underreporting of Porzio’s income tax liability and the company’s payroll tax obligations resulted in a loss of $331,388 to the IRS.
Porzio has paid his back taxes, but he still owes interest and penalties.
Porzio pleaded guilty on December 16, 2021.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Anastasia King.
Onawa Man Pleads Guilty to Meth and Gun ChargesRead the Press Release
A man involved in methamphetamine and illegal possession of a firearm pled guilty on March 24, 2022, in federal court in Sioux City.
Dustin Haynes, 38, from Onawa, Iowa, was convicted of possession with intent to distribute methamphetamine, manufacture and attempt to manufacture methamphetamine, and illegal possession of a firearm.
At the plea hearing, evidence showed that Haynes was previously convicted of Burglary, Assault while Participating in a Felony, and Possession of a Controlled Substance. As a result, Haynes was not able to legally possess guns. Evidence further showed that on September 1, 2021, law enforcement conducted a traffic stop of the vehicle Haynes was operating. Officers seized components of a methamphetamine lab in Haynes’ vehicle, and a shotgun (broken down) in the trunk of the vehicle. Law enforcement also seized two boxes of pseudoephedrine (used to make methamphetamine) and receipts showing the purchase of the pseudoephedrine within the previous 30 days. Haynes intended to manufacture and distribute the methamphetamine. Haynes attempted to flee law enforcement agents by vehicle, then on foot, and during the pursuit threw out several baggies of meth.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Haynes remains in the custody of the United States Marshal pending sentencing. On the two drug convictions, Haynes faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least four years of supervised release following any imprisonment. On the firearm conviction, Haynes faces no mandatory minimum sentence and a possible maximum sentence of ten years’ imprisonment and up to three years of supervised release following any term of imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Iowa DCI Laboratory, Monona County Sheriff’s Department, and Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4090. Follow us on Twitter @USAO_NDIA.
Omaha Man Sentenced for Travel with Intent to Engage in Illicit Sexual Conduct OffenseRead the Press Release
COUNCIL BLUFFS, IA – Erasmus Luis Gonzales, age 38, of Omaha, was sentenced Wednesday March 30, 2022, to 46 months in federal prison for Travel with Intent to Engage in Illicit Sexual Conduct. His term of imprisonment will be followed by five years of supervised release. According to court documents, Gonzales pleaded guilty to the charge on October 22, 2021.
The Federal Bureau of Investigation engaged in an undercover investigation and Gonzales communicated with an agent who purported to be a thirteen-year-old girl in the seventh grade. Gonzales arranged to meet with the underage girl in June 2021 after he agreed to bring alcohol in exchange for a sex act.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement and this case was investigated by the Federal Bureau of Investigation and Council Bluffs Police Department.
Northumberland County Man Sentenced for Violating Toxic Substance Control ActRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 31, 2022, Dennis Morgan, age 75, of Northumberland County, Pennsylvania, was sentenced to one year of probation by Magistrate Judge William I. Arbuckle for a violation of the Toxic Substances Control Act.
According to United States Attorney John C. Gurganus, Morgan failed to provide a lead hazard pamphlet as required by the Code of Federal Regulations in violation of the Toxic Substances Control Act to lessees of a property that he owned in Sunbury, Pennsylvania, who resided there from August 2018 to October 2019. The residence was found to contain excessive lead hazards. A child living at the residence during that time was found to have elevated blood levels of lead in his body.
At the sentencing hearing, Dr. Kristen Keteles, a toxicologist employed by the Environmental Protection Agency (“EPA”), testified to why children are vulnerable to lead poisoning and the dangers that elevated lead levels pose to their healthy development.
“The defendant’s lack of responsibility to properly inform his tenants of the hazards of lead resulted in a child with elevated blood lead levels,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Pennsylvania. “Elevated blood levels can cause developmental problems in children. EPA is committed to protecting the health of our communities and our children, and to holding responsible parties accountable.”
The investigation was conducted by agents of the Environmental Protection Agency. Assistant United States Attorney Alisan V. Martin and EPA Special Assistant United States Attorney Patricia C. Miller prosecuted the case.
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New York man admits to firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shane I. Thomason, of Brooklyn, New York, has admitted to his role in a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Thomason, 21, pleaded guilty today to one count of “Conspiracy to Violate Federal Firearms Laws” and one count of “False Statement During Purchase of Firearm.” Thomason admitted to working with others to illegally purchase firearms and making false statements to illegally purchase firearms in April 2021 in Marion County.
Thomason faces up to five years of incarceration and a fine of up to $250,000 for the conspiracy charge and faces up to 10 years of incarceration and fine of up to $250,000 for the false statement charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Man Pleads Guilty to Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Walik Skeete, age 45, of Binghamton, New York, pleaded guilty before U.S. District Court Judge Robert D. Mariani, on March 31, 2022, to being a convicted felon in possession of a firearm and ammunition.
According to United States Attorney John Gurganus, the charge stems from an incident in which members of the Pennsylvania State Police stopped Skeete’s vehicle in Susquehanna County for vehicle code violations and subsequently located a loaded Beretta 9mm pistol in Skeete’s vehicle. Skeete has prior felony convictions and is therefore prohibited from possessing a firearm or ammunition.
Judge Mariani ordered that a presentence investigation take place. Sentencing will be scheduled at a later date.
The investigation was conducted by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Morgantown woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sarah Kuhn, of Morgantown, West Virginia, was sentenced today to three years of probation for a firearms charge, United States Attorney William Ihlenfeld announced.
Kuhn, 31, pleaded guilty in September 2021 to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Kuhn admitted to working with another to purchase a firearm, making a false statement claiming the firearm was for her, when, in, fact, the firearm was meant for someone else. The crime occurred in July 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Missouri Man Sentenced to 100 Months for Distribution of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Charles Ryan Croney, age 26, of Missouri, was sentenced in federal court on April 1, 2022, in Omaha, Nebraska, for distribution of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Croney to 100 months of imprisonment and ordered him to pay $36,000 in restitution. There is no parole in the federal system. After completing his term of imprisonment, Croney will begin a 7-year term of supervised release.
On January 1, 2020, Croney uploaded two images of child pornography to an online chat group. On January 30, 2020, a federal search warrant was executed where Croney was temporarily residing in Nebraska City, Nebraska. Agents obtained Croney’s cellular phone and located about 400 images of child pornography. Agents later searched Croney’s online Discord account and located additional child pornography.
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 United States 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.
The case was investigated by the Sarpy County Sheriff’s Office and the Federal Bureau of Investigation.
Minnesota Farmer Sentenced to Prison for USDA Farm Loan FraudRead the Press Release
MINNEAPOLIS – A Slayton, Minnesota, man was sentenced to 12 months in prison, three years of supervised release, and $435,517.78 in restitution for converting collateral that secured loans from the U.S. Department of Agriculture, announced U.S. Attorney Andrew M. Luger.
According to court documents, in October 2015, Mark Alan Engelkes, 54, pledged 15,641 bushels of soybeans as collateral to the U.S Department of Agriculture (“USDA”) Commodity Credit Corporation (“CCC”) in order to obtain loan proceeds of nearly $80,000. During the application process for the CCC loan, Engelkes agreed to not move or dispose of the collateral until the loan was paid in full. However, in April 2016, officials from the USDA learned that Engelkes had removed the pledged grain without prior approval and sold it. In addition to the USDA CCC loan, the defendant also defaulted on other farm financing from USDA, resulting in a total loss amount to the government of $435,517.78.
On October 21, 2021, Engelkes pleaded guilty to one count of conversion of USDA CCC crops. He was sentenced on April 1, 2022, by Chief U.S. District Judge John R. Tunheim.
This case was the result of an investigation conducted by the U.S. Department of Agriculture-Office of Inspector General.
Assistant U.S. Attorney Lindsey Middlecamp and Special Assistant U.S. Attorney Hillary Taylor prosecuted the case.
Mililani Felon Sentenced to 52 Months in Prison for Firearm and Witness Tampering OffensesRead the Press Release
HONOLULU – Chad Gabris, age 41, of Mililani, Hawaii, was sentenced today to serve 52 months in federal prison for firearm offenses and witness tampering. Senior United States District Judge Susan O. Mollway ordered that Gabris’s federal sentence run consecutive to a State of Hawaii term of imprisonment for violating his state parole, and also imposed a three-year term of supervised release, to begin once Gabris is released from prison.
According to information presented to the court, Gabris, a tattoo-validated member of the "La Familia" prison gang and registered sex offender, was on parole with the State of Hawaii on October 8, 2019, when law enforcement found a Glock .40 S&W firearm and 70 rounds of ammunition hidden in his car in Mililani. Gabris’ DNA was on the firearm and his palmprint on a box containing some of the ammunition. Four prior felony convictions, two for sexual assault and two for breaking into a motor vehicle, prevented Gabris from legally possessing the firearm and ammunition. As part of his previously entered guilty plea, Gabris admitted that he possessed the firearm and ammunition, knowing he was a convicted felon.
As part of his guilty plea, Gabris also admitted that, after his arrest, he corruptly persuaded both his mother and the mother of his children to lie to federal investigators to shield him from criminal prosecution. Gabris persuaded both women to tell federal investigators, falsely, that the firearm and ammunition did not belong to Gabris and that his mother purchased them from a homeless man in a parking lot. Gabris assured his mother that if she was arrested for possessing the firearm and ammunition, she would not spend more than a year in jail and that he would make arrangements to bail her out.
"Our office is firmly committed to prosecuting convicted criminals who illegally keep guns," said U.S. Attorney Clare E. Connors. "A core objective of the Project Safe Neighborhoods effort is to protect the community from an armed defendant who has a prior association with a prison gang and is a registered sex offender with sexual assault convictions.
"The sentencing today sends a strong message that convicted felons should never be in possession of any firearms as they are a menace to our society," said FBI Special Agent in Charge Steven Merrill. "The FBI is grateful to work with the Hawaii Department of Public Safety – Sheriff Division, Honolulu Police Department, and the Hawaii Paroling Authority as we continue to combat violent crimes across our state to protect the public and hold those accountable for such acts."
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 works together to identify the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Federal Bureau of Investigation and the Hawaii Department of Public Safety, Sheriff Division, with the assistance of the Honolulu Police Department and the Hawaii Paroling Authority. The prosecution is handled by Assistant U.S. Attorney Wayne A. Myers.
Mercer County Man Sentenced for Retaliating Against Federal OfficerRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man was sentenced to five years in federal prison today for retaliating against a federal law enforcement officer by filing a fraudulent lien and attempting to interfere with the administration of Internal Revenue laws.
Senior United States District Judge David A. Faber sentenced Jeffrey Reed, 62, of Flat Top to five years for the retaliation offense and to a concurrent three years for the attempted interference offense. The sentence will be followed by three years of supervised release.
A federal jury previously convicted Reed of both offenses following a two-day trial in August 2021. According to court records and evidence at trial, Mr. Reed owed a significant tax debt to the Department of Treasury and was employed by a hotel in the Oak Hill area. In 2015, after letters sent to Reed from the IRS were either sent back or ignored, an IRS revenue officer took steps to garnish a portion of Reed’s wages. When Reed learned of these efforts, he met with managers of the hotel and requested that they not comply with the IRS’ attempts to garnish his wages. In retaliation for a single wage garnishment of $598, Reed filed a $4.95 million lien with the Mercer County Clerk directed against the revenue officer and the owner of the hotel. Reed’s lien claimed 165 constitutional violations, including illegal search and seizure, war, treason and slavery. Reed also sought to attach any real and personal property owned by the revenue officer and the owner of the hotel.
Reed further claimed that the revenue officer owed him an additional $9 million because his name had been copyrighted.
Department of Treasury Special Agents testified at trial that they spoke to Reed in February 2020 at which time Reed admitted to filing the lien against the revenue officer. Reed further indicated that he filed the lien to obstruct the collection of his wages.
The court called Reed a “paper terrorist,” concluding his misconduct was “despicable” and “inexcusable” while citing deterrence as a factor in his sentencing
United States Attorney William Thompson commended the excellent work of the revenue officer and the Department of Treasury agents that worked on the case. The United States Department of Treasury, Treasury Inspector General for Tax Administrations (TIGTA) Office of Investigations conducted the investigation with assistance from the Internal Revenue Service (IRS). The prosecution was specifically authorized by the United States Department of Justice, Tax Division. Assistant United States Attorneys Erik S. Goes and Ryan Blackwell prosecuted the case.
“The defendant tried to illegally and illogically manipulate the legal process for his own personal gain, which will not be tolerated by this office,” Thompson said. “Criminals cannot be allowed to target others, in this case a federal employee and a business owner, for following the law.”
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:20-cr-66.
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Maryland Man Pleads Guilty to Fatally Stabbing AcquaintanceRead the Press Release
WASHINGTON – Herbert Smallwood, 41, of Suitland, Maryland, pleaded guilty today to a charge of second-degree murder while armed for stabbing an acquaintance last year in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Smallwood pleaded guilty in the Superior Court of the District of Columbia. He is to be sentenced on July 22, 2022, by the Honorable Milton C. Lee, Jr.
According to the government’s evidence, on June 30, 2021, at approximately 7 p.m., Smallwood was traveling in an SUV that was following another vehicle being driven by an acquaintance. The other vehicle, a Ford Focus, crashed and flipped over in the rear of the 1600 block of 17th Place SE. Smallwood got out of the SUV with a knife and stabbed the victim, Joseph Ogundoju, multiple times. Mr. Ogundoju, 46, died a short time later.
Surveillance video shows Smallwood’s vehicle following Mr. Ogundoju’s vehicle immediately before it crashed. The victim’s blood also was found on Smallwood’s clothing. Smallwood was arrested on June 30, 2021. He has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of the Metropolitan Police Department, which investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Latrice Washington-Williams and Paralegal Specialist Grazy Rivera. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Brian Ganjei, who investigated and prosecuted the case.
Manvel man sent to prison for draining co-workers in investment schemeRead the Press Release
HOUSTON – A 42-year-old Manvel resident has been ordered to prison following his conviction of wire fraud, announced U.S. Attorney Jennifer B. Lowery.
Toan Tran pleaded guilty Jan. 4, 2021.
Today, U.S. District Judge Lynn Hughes ordered Tran to serve 120 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the blatant, fraudulent scheme and the fact that Tran preyed on his friends and co-workers. Several of the victims testified about the hardships his theft had caused for them and their families. After hearing from several of the victims, Judge Hughes noted the Tran’s “treachery” by stealing from friends and co-workers.
At the time of his plea, Tran admitted that in 2017 he used a fake investment account to convince a local businessman to sell him a media outlet. Tran showed the businessman funds in the account, but they had been altered. They fraudulently displayed $7 million when, in fact, he never had over $100,000 at any one time. Tran subsequently bankrupted the business and defaulted on the payments.
Tran also admitted to using the same scheme to persuade several co-workers to invest in his company from 2015 through 2017. Some victims invested their life savings and never saw any return.
In total, investors lost over $705,000 as a result of Tran’s scheme.
Tran was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI - Texas City conducted the investigation. Assistant U.S. Attorney Thomas H. Carter prosecuted the case.
Las Vegas Police Officer Indicted for Three Casino RobberiesRead the Press Release
LAS VEGAS – A Las Vegas Metropolitan Police Department (LVMPD) officer made his initial appearance in federal court on Friday for allegedly robbing three casinos, stealing approximately $164,000 in total.
Caleb Mitchell Rogers (33) was arrested on February 27, 2022. A federal grand jury returned an indictment on March 22, 2022, charging Rogers with three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. U.S. Magistrate Judge Brenda Weksler scheduled a jury trial for May 23, 2022.
According to allegations in the indictment, on November 12, 2021, Rogers robbed a casino in the western part of Las Vegas of approximately $73,810. On January 6, 2022, he robbed a casino in North Las Vegas of approximately $11,500. In both robberies, Rogers walked directly to the casino’s cashier cage and demanded money from the cashiers.
The third robbery occurred on February 27, 2022. As alleged, Rogers ran toward two casino employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing approximately $78,898 and placing it into a bag. Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a .357 caliber revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD.
The statutory maximum penalty is 20 years in prison for each count of interference with commerce by robbery, and life imprisonment for brandishing a firearm during and in relation to a crime of violence.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI and the LVMPD. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department Files False Claims Act Complaint Against Two Laboratory CEOs, One Hospital CEO and Others Across Texas, New York, and PennsylvaniaRead the Press Release
The Justice Department has filed a complaint against two laboratory CEOs, one hospital CEO and other individuals and entities, alleging False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing.
According to the United States’ complaint, laboratory executives and employees at True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) allegedly conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay doctors to induce referrals to the hospitals for laboratory testing, which was then performed by BHD or THD. The complaint alleges that the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring doctors. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring doctors that were disguised as investment returns but were actually based on, and offered in exchange for, the doctors’ referrals. As alleged in the complaint, BHD and THD executives and sales force employees leveraged the MSO kickbacks to doctors to increase referrals and, in turn, their bonuses and commissions. 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. In addition, the complaint alleges that, to increase reimbursement, LRH falsely billed the laboratory tests as hospital outpatient services.
“The Department of Justice is committed to holding accountable individuals and entities who commit and profit from healthcare fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who enter into unlawful financial arrangements that waste taxpayer dollars, improperly influence healthcare providers’ medical judgments 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’ complaint also alleges that various THD employees, including THD’s CEO, participated in schemes to pay other forms of kickbacks, including: (a) processing and handling fees to draw site companies; (b) monthly fees to a top-referring doctor, disguising the payments as consulting fees for participating in THD’s advisory board, even though no such board actually existed at THD; and (c) waiving patient copayments and deductibles meant to ensure that patients share in, and have an interest in controlling, the amounts billed to federal healthcare programs. These kickbacks allegedly were paid to induce referrals to Medicare, Medicaid and TRICARE for laboratory testing, including laboratory tests that were not reasonable and necessary.
The United States’ complaint names the following defendants:
- Christopher Grottenthaler, of Frisco, Texas, THD’s founder and former CEO
- Susan Hertzberg, of New York, BHD’s former CEO
- Jeffrey “Boomer” Cornwell, of McKinney, Texas, THD’s former Vice President of Sales for the Southwestern Region
- Stephen Kash, of Beaumont, Texas, THD’s former Director of Strategic Accounts and MSO recruiter
- Courtney Love, of Dallas, Texas, former THD Account executive
- Matthew Theiler, of Mars, Pennsylvania, BHD’s former Vice President of Sales
- William Todd Hickman, of Lumberton, Texas, owner and operator of defendants Ascend Professional Management Inc., Ascend Professional Consulting Inc., and BenefitPro Consulting LLC
- Laura Howard, of McKinney, Texas, former BHD Area Sales Manager and MSO recruiter
- Christopher Gonzales, of McKinney, Texas, MSO recruiter
- Jeffrey Madison, of Georgetown, Texas, LRH’s former CEO
- Peggy Borgfeld, of Lexington, Texas, LRH’s former Chief Financial Officer and Chief Operations Officer
- Stanley Jones, of San Antonio, Texas, MSO recruiter and co-owner and operator of defendant LGRB Management Services LLC (LGRB)
- Jeffrey Parnell, of Dallas, Texas, MSO recruiter and co-owner and operator of LGRB
- Thomas Gray Hardaway, of San Antonio, Texas, MSO recruiter and co-owner and operator of LGRB
- Ruben Marioni, of Spring, Texas, MSO recruiter and co-owner and operator of defendant Next Level Healthcare Consultants LLC (Next Level)
- Jordan Perkins, of Conroe, Texas, MSO recruiter and co-owner and operator of Next Level
- Ginny Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of defendants S&G Staffing LLC (S&G) and Jacobs Marketing Inc. (Jacobs Marketing)
- Scott Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of S&G and Jacobs Marketing
“Paying kickbacks to physicians distorts the medical decision-making process, corrupts our healthcare system and increases the cost of healthcare funded by the taxpayer,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “Laboratories, marketers and physicians cannot immunize their conduct by attempting to disguise the kickbacks as some sort of investment arrangement. Our office is committed to looking through the disguise and putting an end to any arrangement where the purpose is to improperly influence medical decision making through the payment of kickbacks.”
“When health care providers boost their profits through kickback schemes, they risk compromising the integrity of federal health care programs while increasing health care costs for everyone,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”
“Today’s outcome is a testament to the dedication and determination of the Department of Defense Office of Inspector General (DoD IG), Defense Criminal Investigative Service (DCIS) and our law enforcement partners to safeguard our military’s healthcare system, known as TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to coordinate closely with the Department of Justice to hold accountable those that attempt to take advantage of the TRICARE program, defrauding the taxpayer and undermining mission readiness.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Dr. Felice Gersh M.D. and Chris Riedel. Under the 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 ex rel. STF, LLC v. Christopher Grottenthaler, et al. 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.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare 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).
This case is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by the Department of Health and Human Services’ Office of Inspector General and the Defense Criminal Investigative Service. As a result of its efforts, the United States has already recovered more than $30 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 25 physicians, two healthcare executives and a laboratory company.
This case is being handled by Civil Division Senior Trial Counsel Christopher Terranova, Trial Attorney Gavin Thole and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas.
The claims in the complaint are allegations only, and there has been no determination of liability.
Justice Department Alleges Disability Discrimination in Amended Lawsuit Concerning Design and Construction of Multifamily Housing in HawaiiRead the Press Release
The Justice Department filed an amended complaint today in the U.S. District Court for the District of Hawaii, alleging that 14 entities designed and constructed five condominium and apartment complexes in Hawaii without accessible features required by the Fair Housing Act. Two of the properties — Kahului Town Terrace, in Kahului, Maui; and Palehua Terrace, in Kapolei, Oahu — were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program. The other three properties are Napilihau Villages and Napili Villas, in Lahaina, Maui; and Wailea Fairway Villas, in Kihei, Maui.
The government’s original complaint named the general contractor for all five properties and the architects of four of the properties. The amended complaint adds the following defendants, alleging that each contributed to the Fair Housing Act violations: Stanford Carr Development LLC; SCD Wailea Fairways LLC; Sato & Associates Inc.; Ronald M. Fukumoto Engineering Inc.; Rojac Construction Inc.; Delta Construction Corp.; Warren S. Unemori Engineering Inc.; and GYA Architects Inc.
“Companies behind the mass development of condominiums, apartment complexes and other forms of multifamily housing must ensure that these properties are designed and built to be accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Federal accessibility rules have been in place for more than three decades, and we will hold accountable developers, architects, contractors and other entities that fail to comply with these legal obligations.”
The amended complaint alleges the same accessibility violations as the original complaint. For example, many covered units are inaccessible to persons using wheelchairs because the routes to the entrances include stairs or steep slopes; many routes to public and common areas are inaccessible because of missing sidewalks, missing curb ramps or steep slopes; and many units have inaccessible hardware at entry doors, interior doors that are too narrow and insufficient space in kitchens and bathrooms to maneuver in a wheelchair. The requested relief includes a court order requiring the defendants to retrofit the five properties to bring them into compliance with the Fair Housing Act, as well as monetary damages to compensate victims.
Individuals who may have been affected by the lack of accessibility at these properties should call the Civil Rights Division’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 6 for this case, and leave a message, or send an email to [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of disability, race, color, religion, sex, familial status and national origin. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination should contact the Department of Justice toll-free at 1-833-591-0291, by email at [email protected], or submit 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 online at https://www.hud.gov/program_offices/fair_housing_equal_opp.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared during the week of March 28 through April 1 before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 31 was:
Jayson Gayo, 27, of Harlowton, on charges of possession of child pornography. If convicted of the most serious crime, Gayo faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release. Gayo was released pending further proceedings. Homeland Security Investigations and the Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-24.
Bruce Eugene Bittick, 44, a transient, on charges of bank fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Bittick faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release on bank fraud and a mandatory minimum two years in prison consecutive to any other crime on aggravated identity theft. Bittick was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 22-14.
Appearing on March 28 was:
Dominique Kendall Brown, 28, of Billings, on charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Brown faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Brown was detained pending further proceedings. The FBI, Montana Highway Patrol, Fort Peck Police and Roosevelt County Sheriff’s Office investigated the case. PACER case reference. 22-19.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on March 30 was:
Krista Jean Vela, 38, of Bend, Oregon, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Vela faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Vela was detained pending further proceedings. Homeland Security Investigations, the Montana Highway Patrol and the Northwest Drug Task Force investigated the case. PACER case reference. 21-53.
Charles Warren Campbell, 51, of Butte, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, prohibited person in possession of a firearm, possession of a firearm with an obliterated serial number and possession of an unregistered firearm. If convicted of the most serious crime, Campbell faces a mandatory minimum 10 years in prison consecutive to any other crime, a $250,000 fine and five years of supervised release on the crime of firearm in furtherance of drug trafficking. Campbell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Montana Probation and Parole, and Butte Silver-Bow Law Enforcement Department investigated the case. PACER case reference. 22-09.
Ira Kyrk Westbrook, 46, of Billings, on charges of health care fraud, Social Security fraud and theft of government property. If convicted of the most serious crime, Westbrook faces a maximum of 10 years in prison, $250,000 fine and three years of supervised release. Westbrook was detained pending further proceedings. The Social Security Administration, U.S. Department of Veterans Affairs, Montana Adult Protective Services and Bozeman Police Department investigated the case. PACER case reference. 22-14.
James Ryan Elverud, 33, of Butte, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Elverud faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Elverud was detained pending further proceedings. Homeland Security Investigations, the Lake County Sheriff’s Office, Flathead Tribal Police, Confederated Salish and Kootenai Tribes Tribal law enforcement and Montana Highway Patrol investigated the case. PACER case reference. 22-04.
Appearing on March 29 was:
Donaldo Perez Garcia, 28, of Mexico, on charges of illegal reentry. If convicted of the most serious crime, Garcia faces a maximum of two years in prison, a $250,000 fine and three years of supervised release. Garcia was detained pending further proceedings. Department of Homeland Security’s Enforcement and Removal Operations, Belgrade Police Department, Montana Highway Patrol and Gallatin County Sheriff’s Office investigated the case. PACER case reference. 21-41.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to being a felon in possession of firearms.
According to court documents and statements made in court, Marshall Lee Graves II, 37, admitted he illegally possessed three loaded firearms recovered by law enforcement officers while executing a search warrant of his residence in November 2019. Graves had previously been convicted in the United States District Court for the Southern District of West Virginia of possession with intent to distribute cocaine in 2014.
Graves is scheduled to be sentenced on July 18, 2022, and faces a maximum penalty of up to 10 years in prison.
U.S. Attorney Will Thompson made the announcement. The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans is prosecuting the case. Former Assistant United States Attorney Patrick J. Jeffrey also handled the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00181.
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Huffman resident pleads guilty to unlawfully dealing firearmsRead the Press Release
HOUSTON – A 54-year-old man has admitted to engaging in the sale of firearms without a license, announced U.S. Attorney Jennifer B. Lowery.
Craig Lindsey Cornelison admitted he unlawfully sold at least 200 guns from September 2019 to December 2020.
The investigation began after Cornelison purchased over 90 lower receivers within a four-month period in approximately March 2020. He sold firearms primarily as private sales at gun shows throughout the Houston area. Law enforcement discovered numerous firearms were being trafficked overseas to foreign countries, including Iraq.
The United States seeks to forfeit over 100 firearms that were involved in the unlawful business and approximately $147,747 in proceeds gained from the sales.
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for Aug. 8. At that time, Cornelison faces up to five years in prison and a possible $250,000 maximum fine.
The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Steven Schammel and Heather Winter are prosecuting the case.
Hampton, Iowa Woman Pleads Guilty to COVID-19 Related Unemployment FraudRead the Press Release
A Hampton, Iowa woman who received unemployment benefits in other people’s names pled guilty on March 24, 2022, in federal court in Sioux City.
Stephanie Mendenhall, age 53, from Hampton, Iowa was convicted of four counts of theft of government funds and one count of money laundering conspiracy. At a plea hearing, Mendenhall admitted making false claims in the names of others, and depositing the resulting proceeds into her bank account. Mendenhall received fraudulent unemployment benefits paid through the states of Maine, Michigan, Washington, and Illinois, including benefits related to COVID-19 relief funds, to which she was not entitled. Mendenhall received at least $35,985 in false unemployment benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Mendenhall remains free on bond previously set pending sentencing. Mendenhall faces a possible maximum sentence of 60 years’ imprisonment, a $1,500,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Ron Timmons and Tim Vavricek, and was investigated by the Federal Bureau of Investigation and the Department of Labor’s Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3028.
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Fort Myers Man Sentenced to 10 Years in Prison for Drug and Firearms OffensesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Joshua Wade McGinnis (27, Fort Myers) to 10 years in federal prison for multiple counts of distributing cocaine and possessing a firearm during a drug trafficking offense. McGinnis had pleaded guilty on December 27, 2021.
According to court documents, between February and August 2021, McGinnis distributed cocaine to an undercover DEA agent and confidential source on multiple occasions in Fort Myers. During the last transaction before his arrest, McGinnis agreed to sell the source more than a pound of cocaine for $20,000. Fearing that he might be robbed during the transaction, McGinnis enlisted the assistance of his co-defendant, John Olvera-Salinas (20, Fort Myers). McGinnis asked Olvera-Salinas to accompany him to the transaction location and provided Olvera-Salinas with a loaded AK-47. When the two arrived at the location, they were promptly arrested by the DEA. At the time of the arrests, McGinnis possessed the cocaine and Olvera-Salinas possessed the loaded gun.
A subsequent search of McGinnis’s residence revealed a heavily fortified apartment, with security bars covering the windows and an extensive video surveillance system. The DEA agents recovered more than 14 firearms, nearly a pound of additional cocaine, 8 pounds of marijuana, approximately 3 ounces of oxycodone, and approximately one ounce of MDMA from the apartment.
Olvera-Salinas previously pleaded guilty to possessing a firearm in furtherance of a drug trafficking offense. His sentencing hearing is scheduled for May 9, 2022.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.