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Monday 28 March 2022
Palmyra, Missouri, Man Sentenced to 120 Months in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. – A Palmyra, Missouri, man, Charles Barger, 47, of the 200 block of East Ross Street, was sentenced on March 25, 2022, to 120 months’ imprisonment for possession of methamphetamine with intent to distribute, to be followed by eight years of supervised release.
At the sentencing hearing, the government presented evidence to U.S. District Judge Sue Myerscough that on or about September 4, 2020, Mr. Barger knowingly and intentionally possessed with intent to distribute five grams or more of methamphetamine (actual), a Schedule II controlled substance in Quincy, Illinois.
Mr. Barger was indicted in October 2020 and pled guilty in August 2021. He has been in the custody of the U.S. Marshals Service since November 2020 and previously was in state custody following his arrest in September 2020.
The statutory penalties for possession of methamphetamine with intent to distribute are up to life imprisonment, up to an $8,000,000 fine, and up to eight years of supervised release.
The West Central Illinois Task Force and Quincy Police Department investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
Orlando Man Pleads Guilty in Conspiracy to Receiving $570,000 Cocaine ShipmentRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Luis Raul Perez Rodriguez (50, Orlando) today pleaded guilty to conspiracy to possess with the intent to distribute controlled substances. Perez Rodriguez faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on January 21, 2022, Perez Rodriguez had arranged to receive a shipment of three parcels containing 19 kilograms of cocaine, valued at an estimated $570,000, through a delivery service from an address in Puerto Rico to an apartment in Orlando. On January 19, 2022, security specialists at the delivery service company had detected the cocaine shipment and reported the parcels to the Drug Enforcement Administration. On January 21, 2022, an undercover officer working with the DEA posed as a delivery driver and delivered a fake package to the address on the shipment. Perez Rodriguez was in the parking lot of his apartment and identified himself with the fake name associated with the parcels and showed the delivery driver that he was tracking the progress of the shipment on his phone. Perez Rodriguez was apprehended as the driver loaded two out of the three packages into Perez Rodriguez’s vehicle. Additional investigation linked Perez Rodriguez to a series of cocaine shipments from Puerto Rico to Orlando in 2018 and 2019.
This case was investigated by the Drug Enforcement Administration with assistance from the Orange County Sheriff’s Office and the U.S. Postal Service. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Operator of Portland Animal Rescue Business Charged for Role in Wire Fraud Conspiracy, Illegally Dispensing Animal DrugsRead the Press Release
PORTLAND, Ore.—The operator of a Portland area animal rescue, rehabilitation, boarding, and adoption company is facing federal charges for her role in a conspiracy to defraud customers and for illegally dispensing animal drugs.
Tori Lynn Head, 26, has been charged by criminal information with conspiracy to commit wire fraud and dispensing animal drugs without proper labeling.
According to the information, in November 2019, Head and others started Woofin Palooza, an animal rescue business with facilities in Multnomah and Columbia County, Oregon. Head and others are alleged to have obtained pets with medical and behavioral issues from out-of-state and made them available for adoption to paying customers. Between December 2019 and January 2021, on more than 280 occasions, Head and others made material misrepresentations about the health and behavior of the animal offered for adoption. Based on these misrepresentations, customers paid Woofin Palooza more than $82,000 in adoption fees. During this same time period, Head sold customers mislabeled animal drugs in violation of the Food, Drug, and Cosmetic Act.
Head made his first appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was released pending further court proceedings.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Food and Drug Administration (FDA) with assistance from the Portland Police Bureau. Assistant U.S. Attorney Ethan Knight is prosecuting the case.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jalen T. McKissick, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
McKissick, 27, pleaded guilty today to one count of “False Statement During Purchase of Firearm.” McKissick admitted to making false statements to illegally purchase firearms in April 2021 in Marion County.
McKissick faces up to 10 years of incarceration and fine of up to $250,000. 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.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Regginald Moody, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Moody, 27, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Moody, a person prohibited from having firearms, admitted to having a firearm in June 2020 in Monongalia County.
Moody faces up to 10 years of incarceration and fine of up to $250,000. 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 Zelda E. Wesley 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.
Money Launderer for $3.5 Million Vehicle Sale Scam Extradited from LithuaniaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that STANISLAV TUNKEVIC, of Lithuania, was extradited to the United States on bank fraud and money laundering offenses arising from a scheme to launder money derived from an online vehicle sale scam that took in at least $3.5 million from defrauded consumers. VLADISLAV NECEAEV, of Brooklyn, New York, recently pled guilty to conspiracy to commit bank fraud in connection with the same scheme.
U.S. Attorney Damian Williams said: “This case is another reminder that while the Internet has often been a force for the public good, it has also been used by criminals to swindle the unwary. But online fraudsters who hide behind the anonymity of the Internet still need co-conspirators like Tunkevic and Neceaev, who are willing to launder the loot. This Office is committed to rooting out both the online scammers and their enablers.”
HSI Acting Special Agent-in-Charge Ricky Patel said: “As alleged, Tunkevic and Neceaev laundered money for a group of fraudsters that preyed on innocent victims who were simply looking to buy a used car online; an act so common that it allowed the group of crooks to pocket millions off this elaborate scheme from unsuspecting customers. With the use of Tunkevic and Neceaev’s money laundering services, their criminal partners used fictitious websites to lure victims to fraudulent dealerships, all to profit off the backs of hard-working people looking to make a legitimate purchase. HSI New York’s El Dorado Task Force coordinated efforts with HSI’s Attaché office in the Hague to assist with this extradition and will work tirelessly to identify and prosecute all co-conspirators that perpetuated this consumer fraud and money laundering scheme.”
As alleged in the Complaint and the Indictments,[1] and based on statements made in court:
From at least March 2019 through approximately March 2021, STANISLAV TUNKEVIC and VLADISLAV NECEAEV were members of a money laundering crew operating from Brooklyn that was coordinated by NECEAEV’s mother and co-defendant, Natalia Korzha. Members of that crew, including TUNKEVIC and NECEAEV, opened numerous bank accounts in the name of shell companies for the purpose of laundering money stolen from consumers who were trying to buy vehicles online, in exchange for a cut of the victims’ money. Other members of the conspiracy, pretending to represent car dealerships, advertised vehicles that they did not own and were not authorized to sell on fake websites with domain names that sounded like legitimate car dealerships, or through online marketplaces like Craigslist and eBay. Victims who responded to those advertisements and negotiated a purchase price were instructed by the purported sellers to wire payment to accounts that TUNKEVIC, NECEAEV, and other co-conspirators opened. Once the payments cleared, the account owners, including TUNKEVIC and NECEAEV, quickly withdrew the funds before the victims realized they had been defrauded. The victims never received the vehicles they thought they had bought or any refunds from the fake sellers. In total, dozens of victims were defrauded of a total of at least $3.5 million.
TUNKEVIC was presented today in Manhattan federal court before United States Magistrate Judge Sarah Cave.
NECEAEV pled guilty to one count of conspiracy to commit bank fraud on March 14, 2022, before Magistrate Judge Robert W. Lehrburger.
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STANISLAV TUNKEVIC, 47, of Lithuania, was extradited to the United States on March 25, 2022. TUNKEVIC is charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
VLADISLAV NECEAEV, 28, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bank fraud on March 14, 2022.
The offense of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000. The crime of conspiracy to commit money laundering carries a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations. He also thanked the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the Prosecutor General’s Office of the Republic of Lithuania, and the Lithuanian Criminal Police Bureau for their assistance in this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictments, and the description of the Complaint and Indictments set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the charged defendants.
Modesto Man Pleads Guilty to Burglarizing Post Office in Calaveras CountyRead the Press Release
FRESNO, Calif. — Thomas Patrick Day, 41, of Modesto, pleaded guilty today to burglarizing a post office, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on the night of July 2, 2020, Day broke into the post office at 8271 Camanche Parkway South in Wallace, a town in Calaveras County. He used a glass breaker tool to shatter the glass on the door to the lobby area of the post office and then stole packages and keys to post office boxes belonging to other people and businesses.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Day is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 21, 2022. If convicted, Day faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Martinsburg man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Cody Sabol, of Martinsburg, West Virginia, was sentenced today to 97 months of incarceration for a child pornography charge, United States Attorney William Ihlenfeld announced.
Sabol, 32, pleaded guilty in October 2021 to one count of “Possession of Child Pornography.” Sabol admitted to having an image of child pornography containing a child under the age of 12 in October 2020 in Berkeley County. Sabol was uploading child pornography to a social media app KIK in May 2020. West Virginia State Police were alerted, executed a search at his home in October 2020, and seized his iPhone. More than 3,300 images and 52 videos of child pornography were found on Sabol’s phone.
Sabol’s sentence will be followed by 40 years of supervised release. He was ordered to pay $55,000 in restitution.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
Lincoln County Man Sentenced to 240 Months for Fentanyl and Heroin Trafficking Resulting in a DeathRead the Press Release
LEXINGTON, Ky.— A Stanford, Ky., man, Donald Means, 55, was sentenced to 240 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after pleading guilty to distribution of a mixture of fentanyl and heroin, which resulted in the death of another person.
According to Means’ guilty plea, he illegally sold a substance containing heroin and fentanyl to an individual, knowing it was a controlled substance and its potency. The victim ingested the drugs, resulting in their death. According to the Kentucky State Medical Examiner’s Office, the victim’s death was caused by the acute, combined toxic effects of the drugs.
Means pleaded guilty to the charge in the indictment in January 2022.
Under federal law, Means must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Greg Speck, Pulaski County Sherriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI and Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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Las Cruces psychiatrist pleads guilty to unlawfully prescribing opioidsRead the Press Release
ALBUQUERQUE, N.M. – Mark Beale, 75, of Las Cruces, New Mexico, pleaded guilty on March 25 in federal court to unlawful dispensing and distributing of a schedule II controlled substance. Beale will remain on conditions of release pending sentencing.
A federal grand jury indicted Beale on June 23, 2021. According to the plea agreement and other court records, Beale issued prescriptions outside the course of professional practice and without a legitimate medical purpose. From July 8, 2016, through April 5, 2019, Beale, a licensed physician, treated patients, including Jane Doe, in psychiatry. Beale admitted that he conducted only cursory exams, rather than complete medical, physical, or psychiatric evaluations, and made no attempt to document Jane Doe’s medical history. Beale failed to document many of the prescriptions he prescribed in Jane Doe’s clinical record, which included insufficient clinical evidence to support the diagnoses he made, and the prescriptions he wrote for her were not supported by the listed diagnoses.
Beale also acknowledged that he failed to conduct adequate clinical monitoring, such as urine drug screening and prescription monitoring inquires. Despite a diagnosis of opioid abuse Beale did not treat the issue or refer Jane Doe for appropriate care. Instead, he continued to prescribe opioids. Beale further acknowledged that he chronically prescribed opioids and benzodiazepines, which put Jane Doe at unacceptable risk of addiction, diversion or overdose.
By the terms of the plea agreement, Beale faces five years in prison, followed by five years of supervised release.
The Drug Enforcement Administration’s Tactical Diversion Squad investigated the case with assistance from the Dona Ana County Metro Narcotics Task Force, the Las Cruces Police Department and the El Paso Police Department. Assistant United States Attorneys Joni Autrey Stahl and Richard C. Williams are prosecuting the case.
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Laplace Man Sentenced to 72 Months in Federal Prison for Conspiring to Distribute Cocaine Hydrochloride, Fentanyl, Cocaine Base, Heroin and MethamphetamineRead the Press Release
NEW ORLEANS, LA – United States District Judge Mary Ann Vial Lemmon sentenced ELLIS BATISTE SR., age 50, of LaPlace, Louisiana, on March 24, 2022, to 72 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, announced U.S. Attorney Duane A. Evans.
According to the court records, in Count One, BATISTE conspired to distribute and possess with the intent to distribute a quantity of a mixture or substance containing a quantity of cocaine hydrochloride, fentanyl, cocaine base, heroin, and methamphetamine.
During the investigation, law enforcement seized over 15 kilograms of cocaine hydrochloride and over 1 kilogram of fentanyl. The majority of this cocaine hydrochloride and fentanyl which were being transported from Houston, Texas into the Eastern District of Louisiana.
District Judge Lemmon sentenced BATISTE to the 72 months imprisonment to be followed by four years of supervised release as to Count One of the sSuperseding Bbill of Iinformation. Judge Lemmon also ordered that BATISTE pay a $100 mandatory special assessment fee.
The case was investigated by the United States Drug Enforcement Administration and the Saint John the Baptist Sheriff’s Office. Assistant United States Attorney Christopher Usher prosecuted the matter.
La Crosse Man Sentenced to 7 Years for Trafficking CocaineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Antjuano Green, 40, La Crosse, Wisconsin was sentenced on Friday, March 25, by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for distributing cocaine base. This prison term will be followed by 5 years of supervised release. Green pleaded guilty to this charge on November 19, 2021.
On March 17, 2021, La Crosse Police Department officers purchased 41.9 grams of crack cocaine from Green through a confidential informant in La Crosse. On March 24, 2021, officers purchased 12.9 grams of crack cocaine from Green, again through a confidential informant.
The next day, officers arrested Green for the prior drug deliveries. Officers searched Green’s car and found baggies containing a total of 16.9 grams of crack cocaine and 3.4 grams of powder cocaine, as well as $4,440 in cash. When interviewed by officers, Green admitted to selling cocaine for profit.
At the time of these events, Green was on state supervision for crack cocaine trafficking. His supervision was revoked and he is currently serving a sentence of 3 ½ years. Judge Peterson ordered this federal sentence to run concurrently with the remainder of the state prison sentence.
At sentencing, Judge Peterson noted that drug trafficking degrades the health and safety of a community. Judge Peterson highlighted Green’s lengthy criminal history involving drug dealing and his persistent recidivism.
The charge against Green was the result of an investigation conducted by the Campbell, La Crosse, and Onalaska Police Departments. The La Crosse County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Kentucky Woman Sentenced to Prison for $4.3 Million Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – An Ashland, Kentucky woman was sentenced today to one year and three months in prison for her role in a $4.3 million fraud scheme against Toyota Motor Corporation.
According to court documents and statements made in court, Tammy Newsome, 55, was ordered to serve 15 months in prison, to be followed by one year of supervised release. She was also ordered to pay $4,335,663 in restitution.
Newsome was employed as an administrative assistant for Kentucky used car dealership Big Blue Motor Sales, which bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, and fraudulently titled the trucks in the name of those residents.
Newsome helped induce Toyota to repurchase hundreds of fraudulently titled trucks at 150% of value between 2013 and 2015, as part of a scheme to misuse its warranty extension program. The scheme relied on Newsome to make false representations to the Department of Motor Vehicles to obtain false vehicle titles in the names of false owners. The titles obtained by Newsome were then used by other scheme participants to induce Toyota to repurchase the vehicles.
Newsome admitted that she made false representations to the DMV, delivered cash bribes to other scheme participants, and forged signatures of false owners so that checks issued by Toyota in the name of a false owner could be deposited into Big Blue Motor Sales’ bank account.
Newsome pleaded guilty to mail fraud in July 2020. Three other individuals were sentenced to prison earlier this year for their roles in the scheme: James Pinson, 46, of Wayne County, the owner of Big Blue Motor Sales, to six years; Frank Russo, 69, of North Carolina, a Toyota dealership service manager, to two years; and Stanley Clark, 68, of Poca, a transfer agent, to one year and three months. All three were also ordered to pay restitution.
U.S. Attorney Will Thompson made the announcement. The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner investigated the case.
United States District Judge Joseph R. Goodwin imposed the sentence. Former Assistant United States Attorney Stefan Hasselblad and Assistant U.S. Attorneys Andrew J. Tessman and Steven I. Loew prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:19-CR-00250, 2:19-cr-00222, and 2:20-cr-00028.
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Jordan Palmer joins U.S. Attorney’s OfficeRead the Press Release
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld announced today that Jordan Palmer has joined the office as an Assistant U.S. Attorney in Wheeling.
Palmer will serve in the office’s civil division, a unit that defends federal agencies when sued in court, prosecutes civil enforcement matters, and collects debts owed to the United States.
“Jordan brings a wealth of litigation experience with him from the private sector,” said Ihlenfeld. “We’re fortunate to be able to add an individual with his talents to our team, someone who can hit the ground running and who will be a mainstay in the office for years to come.”
Palmer has practiced law in state and federal court in West Virginia and Ohio since 2015, with a focus on civil litigation. He graduated from West Virginia University with degrees in political science and philosophy, and from the Case Western Reserve University School of Law. Palmer lives in Wheeling with his family.
Isanti Man Arrested, Charged with Stealing Firearms from ShipmentsRead the Press Release
ST. PAUL, Minn. – A federal criminal complaint has been filed against Jason Thomas Cikotte, 31, of Isanti, charging him with possession of stolen firearms, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, beginning in August 2021, law enforcement began receiving notifications of firearm thefts from shipments to Federal Firearms Licensees (FFLs). The carrier for the firearms shipments was XPO Logistics, a logistics company with facilities in St. Cloud and Fridley. On March 9, 2022, XPO Logistics contacted the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to report an additional 11 firearms were solen from a recent shipment, including one Century Arms model Draco NAK 9 9mm semiautomatic AK pistol, five Canik model Rival 9mm semiautomatic pistols, and five Canik model Rival 9mm semiautomatic pistols. The company’s security manager later notified law enforcement that they identified Cikotte as the person responsible for several thefts of firearms shipments over the course of almost a year. The security manager provided law enforcement with video evidence showing Cikotte removing boxes of firearms from shrink wrapped pallets, removing the firearms from the boxes, and carrying the firearms to his vehicle.
According to court documents, law enforcement executed a search warrant at Cikotte’s Isanti residence. Inside the house, law enforcement found approximately 40 firearms, all of which appear to be firearms stolen from XPO Logistics, as well as tens of thousands of rounds of ammunition, and miscellaneous firearms parts and accessories. Following the search, after being advised of his rights, Cikotte admitted to having stolen the firearms, ammunition, and firearms parts and accessories from XPO Logistics.
Cikotte is charged with one count of possession of stolen firearms. He made his initial appearance on March 25, 2022, in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation conducted by the ATF and the Isanti Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indiana Man Pleads Guilty to Possessing Unregistered Destructive Devices During Portland ProtestsRead the Press Release
PORTLAND, Ore.—An Indiana man pleaded guilty today in federal court after repeatedly and intentionally jeopardizing the lives of police officers, destroying public property, and encouraging others to commit violence during protests in Portland.
Malik Fard Muhammad, 25, pleaded guilty to two counts of possessing unregistered destructive devices.
According to court documents, in late summer 2020, Muhammad traveled to Portland with his girlfriend from their home in Indianapolis to violently engage in area riots. On September 5, 2020, during a large civil disturbance in east Portland, demonstrators threw dangerous objects at police, including commercial grade fireworks, Molotov cocktails, and bottles. At least one demonstrator was seriously burned by a Molotov cocktail thrown in the direction of police. Muhammad was present at this event and provided baseball bats to members of the crowd.
Following Muhammad’s arrest in October 2020, law enforcement seized his cell phone and found messages where he bragged about providing the baseball bats to other rioters. The cell phone also contained a shopping list including common supplies used to make a Molotov cocktail. The day after the demonstration, police located a discarded baseball bat with a Goodwill price tag in the area where the event occurred. Police found the Goodwill store where the bat was purchased and obtained surveillance footage showing Muhammad and his girlfriend buying the bats and several “growler” bottles.
On September 21, 2020, during a large demonstration near the Multnomah County Sheriff’s Office Penumbra Kelly Building, law enforcement observed an individual light on fire and throw an object toward the building. One officer observed the burning object flying through the air toward his vehicle, landing approximately 15 feet from a police sound truck. Officers recovered the unexploded device. It consisted of a yellow glass growler with a Goodwill sticker on the bottom, a cloth wick, and an ignitable liquid. It was later determined that the growler was one of the items purchased at Goodwill by Muhammad and his girlfriend. A DNA analysis also linked the growler to Muhammad.
On September 23, 2020, protesters set fire to and broke windows at the Multnomah County Justice Center. When officers advanced toward the crowd, an individual threw a Molotov cocktail in a large yellow growler that landed in front of the officers, shattered, and exploded into a large fireball. While some officers were able to move out of the way, one officer’s leg caught fire. Several videos obtained by law enforcement show Muhammad throwing the explosive device.
On October 11, 2020, police were monitoring a protest involving approximately 250 people in downtown Portland. Members of the group began heavily vandalizing various buildings and parks including the Oregon Historical Society, Portland State University, a Starbucks coffee shop, and a Bank of America branch, among others. Law enforcement observed Muhammad in the crowed dressed in black. Portland Police officers reported observing Muhammad using a metal baton to smash the windows of several buildings and arrested him after a short chase. Muhammad possessed a loaded handgun magazine in his pocket. A loaded handgun matching the magazine found on Muhammad’s person was found discarded near the location of his arrest.
Muhammad’s trip to Portland does not appear to be an isolated event. Investigators obtained evidence that he traveled to Louisville, Kentucky in August 2020 to meet with anti-government and anti-authority violent extremist groups to conduct firearms and tactical training. Investigators also obtained several public social media posts by Muhammad promoting violence toward law enforcement in other cities including Kenosha, Wisconsin, and Chicago.
On May 28, 2021, Muhammad was charged by criminal complaint with possession of unregistered destructive devices, engaging in civil disorder and obstructing law enforcement, and using explosives to commit a felony. Later, on June 15, 2021, a federal grand jury in Portland indicted Muhammad on the same charges.
Possessing an unregistered destructive device is punishable by up to 10 years in federal prison per count of conviction. With Muhammad’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 10 years in federal prison. He will be sentenced on June 21, 2022 before U.S. District Court Chief Judge Marco A. Hernandez.
Today’s change of plea is part of a global resolution of Muhammad’s federal and state criminal cases. He is scheduled to plead guilty and be sentenced in Multnomah County Circuit Court tomorrow.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The Portland Police Bureau, FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.
Illegal alien faces 50-year prison term after admitting multi-million-dollar conspiracy to harbor other illegals for laborRead the Press Release
SAVANNAH, GA – An illegal alien has admitted to a scheme in which he and his co-conspirators fraudulently employed other illegals to work for a tree service, and then aided in the murder of a man who reported the scheme.
Pablo Rangel-Rubio, 53, a citizen of Mexico illegally present in the United States who resides in Rincon, Ga., pled guilty in U.S. District Court to an Information charging him with Conspiracy to Conceal, Harbor and Shield Illegal Aliens; Conspiracy to Commit Money Laundering; three counts of Money Laundering; and one count of Aiding and Abetting the Retaliation Against a Witness, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Rangel-Rubio to a negotiated sentence of 600 months in prison and forfeiture of a 26.62-acre residential compound in Rincon.
“Pablo Rangel-Rubio was responsible for employing at least 100 illegal aliens to work for a tree service, skimming from their paychecks to further fatten his wallet, and then helping arrange the murder of a man who exposed the scheme,” said U.S. Attorney Estes. “The substantial prison sentence from this plea will hold him accountable for those crimes.”
Rangel-Rubio originally was named in a December 2018 indictment along with his brother, Juan Rangel-Rubio, 45, of Rincon, and Higinio Perez-Bravo, 52, of Savannah, spelling out a conspiracy that employed illegal aliens using assumed identities to work for a tree service, and then retaliated against a legal-citizen employee who reported the scheme.
Juan Rangel-Rubio and Higinio Perez-Bravo are awaiting trial and are considered innocent unless and until proven guilty.
As described in court documents and testimony, Pablo Rangel-Rubio was responsible for hiring employees to work in a subsidiary of a tree service despite his status as an illegal alien. Most of the employees he hired on behalf of the company were illegal aliens, and Rangel-Rubio provided them with the names and social security numbers of others and then concealed their unlawful status and ineligibility to work in the United States. Rangel-Rubio further shielded their unlawful status by obtaining paychecks for the employees from the company, made out to the illegal aliens’ assumed identities, and then cashing those checks and paying the employees in cash. Rangel-Rubio would sometimes withhold money from the employees’ wages for his own gain, and deposit checks in the names of fictitious employees into his own bank account. As part of his plea agreement, Rangel-Rubio agreed that the scheme netted the conspirators more than $3.5 million.
In April 2017, a naturalized citizen employee of the company, Eliud Montoya, contacted the company to report the scheme – and Rangel-Rubio received a copy of Montoya’s written complaint and read it aloud to the other employees in Montoya’s presence. On Aug. 17, 2017, Montoya reported the scheme to the U.S. Equal Employment Opportunity Commission; two days later, Montoya was murdered near his Garden City, Ga., home. Rangel-Rubio admitted aiding and abetting Montoya’s retaliatory murder.
“Rangel-Rubio’s scheme that not only exploited our nation’s labor laws, but also led to the death of a witness, has thankfully been thwarted and he is facing severe consequences,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Protecting the integrity of the nation’s immigration and labor laws from criminals looking to circumvent them is of vital importance, and HSI prioritizes this mission."
“Rangel-Rubio exploited one victim after another, using them for labor and stealing hard-earned money from their paychecks,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “This plea proves that the FBI is committed to protecting those who blow the whistle on illegal activity and bringing to justice those who exploit others for financial gain.”
The investigation was led by Homeland Security Investigations (HSI) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Garden City Police Department, the Effingham County Sheriff’s Office, and the Chatham County Sheriff’s Office, and is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney Tania D. Groover.
Idaho Falls Man Pleads Guilty to Enticement of a ChildRead the Press Release
POCATELLO – An Idaho Falls man pleaded guilty in federal court to attempted coercion and enticement a child.
According to court records, Joel Hawley Phelps, 63, admitted that, on September 24, 2021, he texted with a person he thought was a 14-year-old girl, but was instead, a law enforcement officer acting undercover. During their conversations, the undercover officer made clear that she was only 14 years old. Phelps asked to meet with her for the purposes of sexual intercourse, and they agreed to meet at a convenience store for that purpose.
On October 4, 2021, Phelps drove to the agreed-upon convenience store, where he was arrested. Phelps’ phone was searched and found to contain the messages in which he agreed to meet the fictitious girl for intercourse. Phelps also admitted in an interview with law enforcement that he had traveled to the gas station to have sex with the purported girl.
Phelps is scheduled to be sentenced on June 13, 2022, and faces a maximum penalty of a lifetime in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“In 2022, this office is projected to file more Project Safe Childhood cases than ever before,” stated U.S. Attorney Rafael M. Gonzalez, Jr. “In fact, we expect our case filings to increase 22 percent over the preceding four-year average. What is astounding is that that average was an all-time high. The reason we are able to catch a record number of child predators is that our partner agencies, federal, state, and local, are sending us a record number of investigations,” Mr. Gonzalez added. “Like today’s case, a significant percentage of these child safety investigations are brought to us by ICAC. I commend ICAC and Attorney General Wasden for their work and our partnership. Together, we make Idaho a safer place for children,” he concluded.
“The crimes of child pornography and enticement are particularly vile because of who they target,” Attorney General Lawrence Wasden said. “But these strong local, state and federal partnerships give us the ability to push back and put dangerous criminals in prison. By working these cases whether from cybertip or undercover operation to sentencing, Idaho law enforcement and prosecutors are making a difference in the lives of our children and grandchildren.”
U.S. Attorney Gonzalez commended the cooperative efforts of the Idaho Internet Crimes Against Children (ICAC) Task Force, the Idaho Falls Police Department, and Homeland Security Investigations in Idaho Falls, which led to charges.
ICAC will be hosting a virtual event on April 6, 2022, to provide more information and resources regarding internet safety for children. The program, “Digital Dangers: Helping Idaho Adults Protect Children,” will be streamed live via YouTube on April 6 from 7:00 to 8:15 p.m. MDT, and will include information about online risks to children and teens and mental health effects children can suffer as a result of unhealthy online habits. The program will also include a presentation on the federal prosecution of online sexual predators. Presenters include: Chris McCormick, Idaho ICAC Commander; Mark Dalton, Idaho ICAC Investigator; Dr. Noreen Womack, Pediatrician; and Kassandra McGrady, Assistant U.S. Attorney, U.S. Attorney’s Office for the District of Idaho.
The YouTube channel is titled “Office of the Attorney General, State of Idaho” and is available at https://www.youtube.com/channel/UC3ouMPXe9am2bWa2l9g4M6Q.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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INTERPOL Washington Continues Support to Nigeria under Project TERMINUSRead the Press Release
INTERPOL Washington—the U.S. National Central Bureau (USNCB)—has successfully launched a new phase in its ongoing efforts to assist the Nigerian Immigration Service (NIS) to improve its border security capabilities. On March 3, 2022, under Project TERMINUS, the USNCB completed the configuration and deployment of a National Dedicated Server Database (DSD) in Nigeria as requested by the NIS in December 2021.
The DSD provides the NIS with a serviceable national database of lost and stolen documents compatible with uploading into the INTERPOL Stolen and Lost Travel Document (SLTD) database. This launch marked the continuation of more than 12 months of collaboration between the USNCB, the U.S. Department of State, INTERPOL, and the Government of Nigeria.
The USNCB, operating under Project Terminus, began remotely providing technical assistance to its NIS counterparts in 2020. In 2021 the USNCB configured and deployed the first Nigerian Automated SLTD Uploader, which allows both the NIS and the National Central Bureau (NCB) in Abuja to connect directly to the INTERPOL database.
Established in 2018, Project TERMINUS is a partnership between the USNCB and the State Department’s Bureau of Counterterrorism. The mission of Project TERMINUS is to extend INTERPOL's I-24/7 secure, global police-to-police communications system in high risk areas and select host nations globally.
“The USNCB is pleased to continue our partnership with the U.S. Department of State to provide tools and technologies that assist our international law enforcement partners in improving their border security. Project TERMINUS contributes to the ability of all INTERPOL member countries to more effectively secure their borders against transnational threats,” said USNCB Director Michael A. Hughes.
Project TERMINUS makes expert technical assistance available to countries seeking to integrate access to INTERPOL’s Stolen and Lost Travel Documents Database (SLTD) into their national border security information sharing systems to help screen against the illicit international travel of transnational criminals and terrorists. Project TERMINUS is currently operating within the ASEAN and Africa regions. In addition to Nigeria, Partner Nations receiving assistance include Indonesia, Malaysia, Nigeria, Kyrgyzstan, and Uzbekistan.
A component of the U.S. Department of Justice, INTERPOL Washington, the U.S. National Central Bureau (USNCB), is the designated United States representative to INTERPOL on behalf of the Attorney General. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies.
Honolulu Bookkeeper Pleads Guilty to $1.2 Million Fraud and Money LaunderingRead the Press Release
HONOLULU – Paul Henri Marie Harleman, 35, of Honolulu, appeared today before United States District Judge Derrick K. Watson and pleaded guilty to six counts of wire fraud and eight counts of money laundering contained in a federal indictment. Harleman has been detained since his arrest on April 23, 2021. Harleman is scheduled for sentencing on August 2, 2022.
According to court records, while Harleman was working as a contract bookkeeper, he devised two fraud schemes to obtain money from three of his clients. In the first scheme, from July 2018 to May 2020, Harleman formed a limited liability company with a name nearly identical to the name of a significant vendor to one of his clients, and then charged the client’s credit card for more than $146,000 in fraudulent invoices. In the second scheme, from September 2019 to his arrest, Harleman transferred more than $1,064,000 in a series of payments disguised as payroll from two of his clients to Harleman’s limited liability company. Harleman moved money fraudulently obtained from his three clients from his personal checking account to a personal investment account, resulting in the money laundering charges.
“This indictment arose from the concerted efforts of our federal law enforcement partners to investigate and prosecute financial crimes occurring in our district,” stated United States Attorney Clare E. Connors. “As reflected in the plea colloquy today in court, the defendant intentionally defrauded his clients and devised a scheme to conceal and further his illegal conduct. Our office will continue to identify and hold accountable those who commit such integrity crimes against our community members.”
“Because finances play such an integral part to our wellbeing, we place our utmost trust in accountants, bookkeepers, and other financial professionals to safeguard our financial security,” said IRS Criminal Investigation (“IRS:CI”) Special Agent in Charge Bret Kressin, of the Seattle Field Office. “When these individuals whom we have entrusted with our essential welfare decide to utterly betray this trust, hardworking individuals and whole communities suffer the consequences. IRS:CI understands how devastating financial crimes are, and we are committed to investigating and bringing to justice those like Mr. Harleman who care for nothing but their own greed.”
“Mr. Harleman was motivated by greed as he heartlessly stole thousands of dollars from small businesses and non-profit organizations,” said Special Agent in Charge John F. Tobon of Homeland Security Investigations Honolulu (“HSI”). “This guilty plea should send the message that HSI and our law enforcement partners will relentlessly pursue anyone who intends to hurt the people in our community for profit.”
As a result of his guilty pleas, Harleman faces up to 20 years imprisonment on each of the wire fraud counts and up to 10 years imprisonment on each of the money laundering counts, as well as a fine of up to $250,000 on each count, plus a term of supervised release up to three years. The court must also order restitution to the victims and forfeiture of the fraud proceeds and the property involved in the money laundering.
The case was investigated by Internal Revenue Service Criminal Investigation and Homeland Security Investigations. Assistant United States Attorney Craig S. Nolan is prosecuting the case.
The case originated with the United States Attorney’s Financial Crimes Task Force, which marshals federal resources to combat financial crimes victimizing residents, businesses, and non-profits in the District of Hawaii. Led by the United States Attorney’s Office, the task force includes Internal Revenue Service Criminal Investigation, Homeland Security Investigations, United States Secret Service, United States Postal Inspection Service, Federal Reserve Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, and Federal Bureau of Investigation.
Honduran Man Charged with Illegally Using Social Security Number to Obtain Louisiana Identification CardRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that HENRY EDGARDO ORTIZ, age 42, a native of Honduras, was charged on March 25, 2022 in a one-count bill of information with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
ORTIZ faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) years supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Hardy County man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Curtis Delawder, of Moorefield, West Virginia, was sentenced today to 80 months of incarceration for a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Delawder, 38, pleaded guilty in April 2021 to one count of “Distribution of Methamphetamine.” Delawder admitted to selling methamphetamine in Hardy County in October 2020.
Delawder was also ordered to forfeit three firearms, ammunition, and $4942 in cash believed to be proceeds from the crime.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Former Yale Med School Employee Pleads Guilty, Admits Stealing and Selling $40 Million in ElectronicsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JAMIE PETRONE, 42, of Lithia Springs, Georgia, formerly of Naugatuck, Connecticut, pleaded guilty today in Hartford federal court to fraud and tax offenses related to her theft of $40 million in computer and electronic hardware from the Yale University School of Medicine where she was employed.
According to court documents and statements made in court, beginning in approximately 2008, Petrone was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, and most recently served as the Director of Finance and Administration for the Department of Emergency Medicine. As part of her job responsibilities, Petrone had authority to make and authorize certain purchases for departmental needs as long as the purchase amount was below $10,000. Beginning at least as early as 2013, Petrone engaged in a scheme whereby she ordered, or caused others working for her to order, millions of dollars of electronic hardware from Yale vendors using Yale Med funds and arranged to ship the stolen hardware to an out-of-state business in exchange for money.
As part of the scheme, Petrone falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval. The out-of-state business, which resold the electronic equipment to customers, paid Petrone by wiring funds into an account of a company in which she is a principal, Maziv Entertainment LLC.
In total, Petrone caused a loss of approximately $40,504,200 to Yale. Petrone used the proceeds of the sales of the stolen equipment for various personal expenses, including expensive cars, real estate and travel.
Petrone also failed to pay taxes on the money she received from selling the stolen equipment. She filed false federal tax returns for the 2013 through 2016 tax years, in which she falsely claimed as business expenses the costs of the stolen equipment, and failed to file any federal tax returns for the 2017 through 2020 tax years. This caused a loss of $6,416,618 to the U.S. Treasury.
Petrone pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years. She is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 29, 2022.
Petrone has agreed to forfeit $560,421.14 that was seized from the Maziv Entertainment LLC bank account, a 2014 Mercedes-Benz G550, a 2017 Land Rover/Range Rover Sv Autobiography, a 2015 Cadillac Escalade Premium, a 2020 Mercedes Benz Model E450A, a 2016 Cadillac Escalade (4 Door Sport), and a 2018 Dodge Charger. She also has agreed to liquidate three Connecticut properties that she owns or co-owns to help satisfy her restitution obligation. A property she owns in Georgia is also subject to seizure and liquidation.
Petrone was arrested by criminal complaint on September 3, 2021. She is released on a $1 million bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Yale Police Department. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
Former Worcester Housing Official Sentenced to 40 Months in Prison for $2.3 Million Property Development Fraud SchemeRead the Press Release
BOSTON – A former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development was sentenced today in federal court in Worcester for her role in a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
Jacklyn M. Sutcivni, 48, of Dracut, was sentenced by U.S. District Court Judge Timothy S. Hillman to 40 months in prison and three years of supervised release. Sutcivni was also ordered to pay restitution in an amount that will be determined at a hearing on May 19, 2022. On Aug. 4, 2021, Sutcivni was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.
In August 2016, Sutcivni was indicted along with James E. Levin, a Natick real estate developer and attorney. Levin pleaded guilty in September 2020 and was sentenced on March 30, 2021 to 37 months in prison, three years of supervised release and ordered to pay forfeiture in the amount of $1,955,000.
“This fraud is not a victimless crime – the Worcester community and its families deserve and are entitled to city employees that do their jobs with integrity,” said United States Attorney Rachael S. Rollins. “Jacklyn Sutcivni repeatedly chose to dishonor her public office and the good people of Worcester who placed their trust in her. Today’s sentence reinforces our steady resolve to investigate public officials who abuse their positions and hold them accountable for breaching the public’s trust.”
“Today, Jacklyn Sutcivni was finally held accountable for using her official position for financial gain at the expense of hard-working taxpayers in the city of Worcester, particularly those in need of safe and affordable housing,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “She grossly betrayed the public’s trust, failed to take responsibility for her actions, and eroded confidence in city government. This case is just one example of the FBI’s commitment to rooting out public corruption in order to protect the integrity of the institutions that are supposed to serve the best interests of our citizens.”
The City of Worcester distributes grant funds on behalf of U.S. Department of Housing and Urban Development (HUD) and Massachusetts Department of Housing and Community Development (DHCD). Sutcivni, as part of her job with the City of Worcester’s Housing Development Office, was responsible for reviewing payment requests for HUD grant funds. From July 2010 to September 2011, Sutcivni approved seven fraudulent HUD grant funding requests submitted by Levin for work he falsely claimed to have completed on a building he managed and associated costs. Sutcivni approved the payment requests despite knowing they were fraudulent. As a result, the City of Worcester issued approximately $2,365,050 in federal funds to Levin that he was not entitled to. After the City issued the payment, Sutcivni or other City officials, submitted reimbursement requests to HUD or DHCD for HUD funds.
U.S. Attorney Rollins, FBI Boston Division SAC Bonavolonta and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region, made the announcement today. Assistant U.S. Attorneys Danial Bennett, of Rollins’ Worcester Branch Office and Brendan Mockler, of Rollins’ Asset Recovery Unit, prosecuted the case.
Former Port Angeles, Washington, Naturopath sentenced for scheme to profit on ‘COVID-19 cure’Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was sentenced today in U.S. District Court in Tacoma to 8 months in prison and one year of supervised release for a federal felony related to his misbranding, and sale in interstate commerce, of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown. Richard Marschall, 69, was convicted in October 2021, following a 4-day trial. The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “It is extremely dangerous during the COVID epidemic for people to be engaged in conduct that would lead other people to defer and wait to receive medical care.”
“Mr. Marschall has a history of lying to patients about their health and his proposed treatments. His lies in this case are particularly troubling because he employed them when advising others about a deadly pandemic,” said U.S. Attorney Nick Brown. “As people became fearful and searched for answers, Marschall touted an unproven treatment as a miracle cure for the deadly disease. Such conduct can prevent patients from getting the legitimate treatment they need if they become ill.”
According to records filed in the case, in late March 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products. Investigators reviewed Marschall's Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus. Marschall billed himself as a retired naturopath and “Health Coach.” Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”
On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19. Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.” Marschall represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with instructional and marketing material. The products themselves were not made by Marschall but by other manufacturers. The manufacturers’ labels for the substances do not claim to kill viruses, but the material added by Marschall stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”
The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.
Marschall was convicted previously and sentenced in federal court for distributing misbranded drugs, both in 2011 and again in 2017.
In asking for a year-long prison term prosecutors wrote to the court, “For decades, Marschall lied and broke the law to provide unapproved treatments and healthcare services. Marschall lied to patients. He lied to authorities. He treated patients without examining them. And he prescribed substances in unusually large doses. Marschall repeated that dangerous playbook in this case: lying to the undercover agent about his credentials, treating her and her children over the phone without a physical exam, and recommending an extremely high dose of his drug.”
The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner
Former Port Angeles, Washington, Naturopath sentenced for scheme to profit on ‘COVID-19 cure’Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was sentenced today in U.S. District Court in Tacoma to 8 months in prison and one year of supervised release for a federal felony related to his misbranding, and sale in interstate commerce, of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown. Richard Marschall, 69, was convicted in October 2021, following a 4-day trial. The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “It is extremely dangerous during the COVID epidemic for people to be engaged in conduct that would lead other people to defer and wait to receive medical care.”
“Mr. Marschall has a history of lying to patients about their health and his proposed treatments. His lies in this case are particularly troubling because he employed them when advising others about a deadly pandemic,” said U.S. Attorney Nick Brown. “As people became fearful and searched for answers, Marschall touted an unproven treatment as a miracle cure for the deadly disease. Such conduct can prevent patients from getting the legitimate treatment they need if they become ill.”
According to records filed in the case, in late March 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products. Investigators reviewed Marschall's Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus. Marschall billed himself as a retired naturopath and “Health Coach.” Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”
On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19. Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.” Marschall represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with instructional and marketing material. The products themselves were not made by Marschall but by other manufacturers. The manufacturers’ labels for the substances do not claim to kill viruses, but the material added by Marschall stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”
The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.
Marschall was convicted previously and sentenced in federal court for distributing misbranded drugs, both in 2011 and again in 2017.
In asking for a year-long prison term prosecutors wrote to the court, “For decades, Marschall lied and broke the law to provide unapproved treatments and
healthcare services. Marschall lied to patients. He lied to authorities. He treated patients without examining them. And he prescribed substances in unusually large doses. Marschall repeated that dangerous playbook in this case: lying to the undercover agent about his credentials, treating her and her children over the phone without a physical exam, and recommending an extremely high dose of his drug.”
The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner
Former Monroe County Man Sentenced to Two Years’ Imprisonment for Making Fraudulent Purchases at Boscov’sRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 24, 2022, Kwane Henderson, age 42, formerly of East Stroudsburg, Pennsylvania, was sentenced today by U.S. District Court Judge Jennifer P. Wilson to two years’ imprisonment for aggravated identity theft.
According to United States Attorney John C. Gurganus, Henderson previously admitted to making fraudulent purchases at Boscov’s stores in Cumberland, Dauphin, and York Counties in February 2019. Henderson made the purchases by using credit card numbers that belonged to other individuals. Henderson’s conduct in the Middle District of Pennsylvania was part of a larger scheme in which he made fraudulent purchases at Boscov’s stores in Delaware, New Jersey, and elsewhere in Pennsylvania. The fraudulent purchases totaled over $28,000.
The case was investigated by the United States Secret Service and the Springettsbury Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Former Bath County Deputy Sheriff Sentenced to 25 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Morehead, Ky., man, Joshua Preece, 40, was sentenced to 300 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after pleading guilty to enticing a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography. Preece is a former Bath County Deputy Sheriff.
According to Preece’s plea agreement, on November 5, 2018, he admitted to answering a call about a minor victim who was acting out of control at her residence. After responding, he transported the victim to a remote area in Bath County. There, Preece sexually assaulted the victim, later asking for sexually explicit photos of the victim via Snapchat. When reviewing Preece’s phone, law enforcement found multiple sexually explicit images.
Preece admitted to the conduct and pleaded guilty to the charge in October 2021.
Under federal law, Preece must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
“The conduct in this case is simply disgraceful,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “The offense itself – a brazen act of child exploitation and abuse – is abhorrent, but the fact that he did it while he was a law enforcement officer makes it even more so. He abused a vulnerable victim, while also betraying a public trust and doing enduring disservice to the dedicated efforts of all law enforcement. I am grateful for hard work of our law enforcement partners, whose efforts made this prosecution possible.”
United States Attorney Shier; Robert Holman, Special Agent in Charge, United States Secret Service; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the U.S. Secret Service and KSP. The United States was represented by Assistant U.S. Attorney David Marye.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov..
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Florida Return Preparer Sentenced to 97 Months in PrisonRead the Press Release
Miami, Florida – A Florida tax return preparer was sentenced in March 2022 to 97 months in prison for preparing false tax returns for his clients.
According to court documents and evidence presented at trial, Fred Pickett Jr., of Belle Glade, owned and operated a tax return business he used to prepare false individual income tax returns. From 2013 to 2016, Pickett prepared tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these nonexistent companies, as well as other false deductions and tax credits, on his clients’ returns to generate refunds they were not entitled to receive. In December 2021, Pickett was convicted at trial of 22 counts of aiding and assisting the preparation of false tax returns.
In addition to the term of imprisonment, U.S. District Judge Robin L. Rosenberg ordered Pickett to serve one year of supervised release and pay approximately $169,639 in restitution to the IRS.
U.S. Attorney Juan Antonio Gonzalez and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Parker Tobin and Patrick Elwell of the Tax Division prosecuted the case. Southern District of Florida Assistant U.S. Attorney Marc Osborne indicted Pickett.
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.
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Florida Business Executives Charged in Illegal Kickback SchemeRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Thomas Mollick (79, Odessa) and Martin Krytus (55, Windemere) with conspiracy to solicit and receive, and a substantive count of soliciting and receiving, illegal remunerations (kickbacks and bribes). If convicted on all counts, Mollick and Krytus each face a maximum penalty of 15 years in federal prison. The indictment also notifies Mollick and Krytus that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.
According to the indictment, Mollick co-founded and served as President of RX Development (“RXD”), and as President and Director of Mollick Enterprises, Inc. (“MEI”). Between January 2012 and March 2017, Mollick, who was responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, selected the company’s wholesale drug supplier, Business #1, and solicited and caused the supplier to make kickback payments to MEI. Krytus co-founded and served as Vice President of RXD, and as President, Secretary, Treasurer, and Director of Eastwood & Assoc., Inc. (“EW”). Krytus, who was also responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, received a portion of kickback payments made by Business #1 to MEI.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Labor - Office of Inspector General, the U.S. Postal Service - Office of Inspector General, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Rachelle DesVaux Bedke.
Five-Time Felon Sentenced to Four Years in Prison for Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS – A six-time felon was sentenced on Friday to four years in prison for unlawful possession of a loaded firearm.
Nhut Hong Nguyen (41) pleaded guilty on July 9, 2021 to one count of felon in possession of a firearm. In addition to imprisonment, U.S. District Judge James C. Mahan sentenced Nguyen to three years of supervised release.
According to court documents, on May 7, 2019, law enforcement attempted to arrest Nguyen — on a warrant for attempted burglary — as he was exiting a residence. Rather than stopping, Nguyen tried to drive away, struck a police vehicle, crashed his car into a light pole, and then fled on foot. In Nguyen’s car, officers found a loaded .40 caliber pistol with a partially obliterated serial number.
Prior to this latest conviction, Nguyen had been previously convicted of five felonies in Clark County. As a result, federal law prohibits him from possessing a firearm.
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, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. Assistant U.S. Attorney Jessica Oliva is prosecuting the case.
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Felon Indicted for Federal Firearms OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that DAVID COULTER, age 33, of New Orleans, Louisiana, was charged on March 25, 2022 by a federal grand jury for violations of the Federal Gun Control Act. Specifically, he is charged in a two-count indictment with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, COULTER has a prior conviction for possessing cocaine and multiple convictions for being a felon in possession of a firearm or weapon in Orleans Parish. Due to this criminal history, he is prohibited from having a firearm. He is now charged with possessing a Glock Model 34, nine-millimeter semi-automatic handgun on January 16 and January 18, 2022.
If convicted of possession of a firearm by a convicted felon, COULTER faces a maximum sentence on each count of up to ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
Federal Court Shuts Down South Florida Tax PreparersRead the Press Release
On March 25, a federal court in the Southern District of Florida permanently enjoined two Miami-area tax return preparers and their businesses from preparing federal tax returns or operating any tax return preparation business in the future. The court ordered that they disgorge more than $60,000 in return preparer proceeds to the United States. The court also issued a narrower injunction against a third preparer and his business.
The complaint alleged that defendant Tammi King owned and operated two return preparation businesses, Kingsworld Financial Services Corp. and Brightstar Management Corp. in South Florida, and employed defendant Norman Williams Jr. to prepare tax returns. The complaint also alleged that a third individual, John Gay Jr., owned a return preparation business called the Tax Doctor LLC, with which King was affiliated at one time. According to the complaint, King, Williams and Gay all prepared tax returns for customers that included fraudulent self-employment expenses, false energy credits, and fake charitable contributions. As one example, the complaint alleged that Williams, a Miami-area firefighter, fabricated more than $1,300,000 in fraudulent cash charitable contributions for 96 of his fellow firefighters for the 2019 tax year.
On Friday, King, Williams and King’s businesses consented to permanent injunctions. They must permanently cease all operations at any office location, including offices located at 8876 N.W. 7th Avenue in Miami and 1130 W. Sunrise Boulevard in Fort Lauderdale. The approximately $60,000 in disgorgement ordered by the court is based on fees associated with returns filed by King and Williams, including 238 returns Williams prepared for fellow-firefighters between tax years 2018 and 2020.
The court also issued a narrower injunction against Gay and The Tax Doctor LLC, to which Gay consented. The injunction does not shut down The Tax Doctor LLC, but requires that Gay and this business employ heightened document substantiation and record keeping requirements before preparing and filing returns claiming certain credits and deductions, including the Child Tax Credit, head of household status for a taxpayer, dependent care deductions and certain tuition-related credits.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
East Bay Resident Charged in Insider Trading Securities Fraud SchemeRead the Press Release
OAKLAND–A federal grand jury handed down an indictment charging Dileep Kumar Reddy Kamujula with securities fraud in connection with alleged illegal securities trading based on inside information obtained from an employee of San Francisco-based cloud communications company Twilio, Inc. (Twilio), announced U.S. Attorney Stephanie M. Hinds, and Federal Bureau of Investigation Acting Special Agent in Charge Timothy M. Stone.
“The charges in this indictment relate to a scheme to profit on the confidential information of a San Francisco-based public company to gain an illegal edge in the stock market,” said U.S. Attorney Hinds. “This Office will continue to aggressively pursue this type of securities fraud because it threatens the integrity of the markets and hurts everyone who plays by the rules.”
“Insider trading is not a game - it’s a federal crime,” said Acting Special Agent in Charge Stone. “This investigation should be a forceful disincentive for those tempted to commit any type of securities fraud. The FBI and our partners will take decisive action against those who seek to illegally exploit material nonpublic corporate information for their own gain.”
According to the indictment unsealed today, Kamujula, 35, of Fremont, Calif., illegally traded in Twilio stock options after receiving material nonpublic information from an employee identified in the indictment as “Insider One.” The indictment alleges that as part of Insider One’s employment, the employee had regular access to a financial records system used by Twilio to monitor and account for customer sales. Insider One allegedly accessed confidential information concerning Twilio's financial results before those results were made public and passed on the information to Kamujula. The indictment alleges that Twilio maintained written policies prohibiting the dissemination of such material nonpublic and confidential information. Twilio also had policies that restricted all employees from trading in the company’s securities during time periods around earnings releases. In addition, the indictment alleges that the employee breached a duty to maintain the confidentiality of the information and that Kamujula knew Insider One breached that duty when the employee provided the tipped information.
The indictment describes how Kamujula obtained and used insider information in the Spring of 2020 for his own gain. According to the indictment, beginning April of 2020, Insider One provided Kamujula with confidential nonpublic information regarding Twilio's financial results before those results were publicly disclosed. Around this time, Twilio accounting employees were in the process of determining the financial results of the company during that quarter, including the preparation of the SEC Form 10-Q that would be filed with the SEC and contain the financial reports for the quarter. The indictment alleges that between April 9, 2020, and May 6, 2020, Kamujula purchased approximately 257 call options for a total cost of approximately $133,333. Then, on May 6, 2020, Twilio announced its quarterly earnings, and in that press release Twilio reported earnings of $0.06 per share, a profit that exceeded the Wall Street analyst consensus estimate of earnings. On May 7, 2020, the day after the financial results were reported, Twilio's stock price increased by nearly 40 percent. The indictment alleges that after the announcement, on or about May 7 and May 8, 2020, Kamujula sold all 257 Twilio call options he had acquired in the preceding four weeks for a total profit of approximately $961,662.
Kamujula is charged with two counts, and a forfeiture allegation. The first count charges a violation of 18 U.S.C. §§ 1348 and 2, and the second count charges a violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240, 10b-5, and 240.10b5-1 (also referred to as Section 10(b) of the Securities Exchange Act of 1933 and Rule 10b-5 thereunder). The maximum statutory penalty for a violation of 18 U.S.C. § 1348 is 25 years in prison and a $250,000 fine (or twice the gross gain made from the offense). The maximum statutory penalty for a violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240, 10b-5, and 240.10b5-1 is 20 years in prison and a $5 million fine. The court may order additional terms of supervised release, as well as additional monetary penalties and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Kamujula made his initial federal court appearance this morning before U.S. Magistrate Judge Donna M. Ryu and was released on secured bond. Magistrate Judge Ryu scheduled Kamujula’s next appearance for April 22, 2022, for a status conference before U.S. District Judge Jon S. Tigar.
In a separate civil action, the United States Securities and Exchange Commission filed civil charges against Kamujula, alleging he engaged in insider trading, and against five other individuals, alleging they violated securities laws in connection with trading in Twilio securities.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office appreciates the assistance of the San Francisco Regional Office of the Securities and Exchange Commission and FINRA.
Dubuque Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
A man who illegally possessed a firearm pled guilty on March 28, 2022, in federal court in Cedar Rapids.
Edgar Martinez, Jr., age 35, from Dubuque, Iowa, was convicted of being in possession of a firearm as a person previously convicted of multiple felonies and domestic abuse, and while being an unlawful user of cocaine and marijuana.
At the plea hearing, Martinez admitted to traveling throughout Dubuque in possession of a Black Taurus G2C 9mm caliber pistol, a clear plastic bag containing cocaine, and marijuana. Martinez also admitted being prohibited from possessing a gun because he has multiple felony convictions and a conviction for domestic abuse.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Martinez remains in custody of the United States Marshal pending sentencing. Martinez faces a possible maximum sentence of not more than 10 years’ imprisonment without the possibility of parole, a fine of not more than $250,000, and up to three years of supervised release following any term of imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Jason D. Norwood and was investigated by the City of Dubuque Police Department’s Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1006.
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Drug Dealer Who Attempted to Tamper with a Witness and Make “Hooch” While in Jail Sentenced to Nearly Three Decades in Federal PrisonRead the Press Release
A drug trafficker was sentenced March 25, 2022, to a total of 29 years in federal prison.
Curtis James Johnson, age 36, from Talladega, Alabama, received the prison term after a July 30, 2021 guilty plea to possession with intent to distribute a controlled substance and an August 16, 2021 guilty plea to possessing a firearm in furtherance of a drug trafficking crime.
Johnson sold methamphetamine to another individual in May 2021. Law enforcement’s subsequent searches of two homes led to the discovery of methamphetamine and a loaded firearm at a relative’s residence and a loaded firearm at another residence associated with Johnson. This all occurred in the Cedar Rapids, Iowa, area. Johnson was arrested after the searches.
Following his arrest, Johnson called his mother using another inmate’s phone account in the jail and discussed paying a witness to not attend Johnson’s upcoming trial. Prior to the current conduct, Johnson had amassed a lengthy criminal history, including convictions for battery causing bodily injury and assault causing bodily injury. Johnson was also previously convicted of burglary and felony drug trafficking offenses. Evidence at sentencing showed Johnson was also involved in making “hooch” while in jail.
Johnson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Johnson was sentenced to 288 months’ imprisonment for the drug count and 60 months for the firearm count for a total of 348 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-28.
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Driver Who Led Officers on High-Speed Chase Charged with Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A man who led police officers on a high-speed chase in a stolen car driving the wrong way on Interstate 70 was charged in federal court today with illegally possessing several firearms and more than two kilograms of methamphetamine.
Davon R. Williams, 28, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., with one count of being a felon in possession of firearms, one count of possessing methamphetamine to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime.
According to an affidavit filed in support of today’s federal criminal complaint, Independence, Mo., police officers saw an orange Hyundai that had been reported as stolen parked on the west side of Hometown Studios, 14800 E. 42nd Street in Independence at approximately 10 a.m. Saturday, March 26. An officer placed a portable tire deflation device underneath the front passenger tire of the Hyundai to deflate the tire if someone attempted to leave in the vehicle. Officers kept the vehicle under surveillance until Williams got into the driver’s seat and a woman (who is not charged in this case) got into the front passenger’s seat. Williams was carrying a black zip bag and a white trash bag in one hand while shouldering a black backpack.
Police officers attempted to box in the Hyundai with their patrol cars, but Williams was able to flee from officers and circle around the parking lot, maneuvering through multiple parked vehicles as well as the police vehicles attempting to block him in. Williams made it to 42nd Street, where he began accelerating as police officers pursued him. Williams traveled to Noland Road before going onto the ramp to I-70, traveling westbound in the eastbound lanes of I-70.
Due to the substantial public safety risk by Williams entering into oncoming traffic, officers terminated their pursuit. An officer saw the Hyundai farther down the interstate, in the grass, with Williams and the woman running from the vehicle. Williams was carrying a black backpack. The woman was caught and taken into custody.
Williams was found walking westbound next to U.S. 40 Highway and began running from officers. An Independence police sergeant deployed his Taser, which struck Williams in the left elbow, and Williams continued to run and jumped the guard rail under the I-70 bridge on the south side of U.S. 40 Highway. The police sergeant jumped the guard rail and grabbed Williams, who was trying to jump back on the highway. They struggled and Williams was taken into custody.
Officers searched Williams, who had $7,581 and .9 grams of crack cocaine in his pants pockets. The backpack, which was located nearby, contained an SAR Arms 9mm firearm, 314 grams of marijuana, 92.4 grams of cocaine, 4.6 grams of powder cocaine, a plastic sandwich bag with five 30-milligram Oxycodone pills, and a sandwich bag that contained multiple sandwich bags with various pills believed to be ecstasy. On the ground next to the backpack was a loaded FNS 9mm handgun.
Officers searched the stolen Hyundai, which had severe damage, including airbag deployment. Officers found an AR-15 style rifle with no serial number in the back seat, loaded with 27 rounds of 5.56 ammunition and an additional round chambered. A black duffle bag, also in the back seat, contained a freezer bag with 1.022 kilograms of methamphetamine, a freezer bag with 1.027 kilograms of methamphetamine, a freezer bag with 111 grams of methamphetamine, a freezer bag with 170 grams of methamphetamine, and six sandwich bags that each contained between 26 and 29 grams of marijuana. A large white trash bag that contained three bags with a total of 1.238 kilograms of marijuana was also in the back seat.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has two prior felony convictions for the distribution, delivery, or manufacture of a controlled substance.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Sean Foley. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
District Court Orders New Jersey Company to Stop Distribution of Adulterated Pet Food Contaminated with SalmonellaRead the Press Release
A federal court today ordered a Carneys Point, New Jersey company to stop distributing adulterated pet food in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
In a complaint filed March 15, the United States alleged that Bravo Packing Inc., and its owners and operators, Joseph Merola and Amanda Lloyd, violated the FDCA by distributing adulterated animal food and by causing animal food to become adulterated while held for sale. The complaint alleged that samples collected during U.S. Food and Drug Administration (FDA) inspections of the Bravo facility in July 2019 and April 2021 contained Salmonella, a pathogenic microorganism that can cause the illness known as salmonellosis in both humans and animals. Salmonella can be transferred from animal food to humans through handling of the food, or directly from infected animals to humans. Salmonellosis can cause symptoms such as diarrhea, fever and abdominal cramps that last several days in healthy adults. Absent prompt treatment, salmonellosis can cause severe dehydration and even death in infants, young children, the elderly, transplant recipients, pregnant women and individuals with weakened immune systems.
“Animal food manufacturers must ensure that their products are safe,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with the FDA to ensure that pet food is manufactured in compliance with the law.”
“The food we give our pets should be safe for them to eat and safe for people to handle,” said Director Steven Solomon, DVM, MPH of the FDA’s Center for Veterinary Medicine. “The FDA has taken this action to protect public health because, despite multiple inspections, notifications of violations and recalls, this firm continued to operate under insanitary conditions and produce pet food contaminated with harmful bacteria. We will not tolerate firms that put people or animals at risk and will take enforcement actions when needed.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree requires, among other things, that the defendants stop receiving, processing, manufacturing, preparing, packing, holding and distributing adulterated pet food until they take specific remedial measures and demonstrate to the FDA that they will comply with federal law.
The government was represented by Trial Attorney Noah T. Katzen of the Civil Division’s Consumer Protection Branch, with the assistance of Tara Boland of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the District of New Jersey also provided assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Detainee Pleads Guilty to Injuring Officers in Assault at Detention CenterRead the Press Release
HONOLULU – David Akui-Cabanilla, III, 36, pleaded guilty today in federal court to two counts of assaulting a federal officer resulting in bodily injury. U.S. District Court Judge Leslie E. Kobayashi took Akui-Cabanilla’s guilty plea and scheduled sentencing for August 25, 2022.
Akui-Cabanilla admitted to assaulting multiple correctional officers on March 23, 2020, while he was a detainee at the Federal Detention Center in Honolulu. According to court documents and information presented to the court, in preparation for his attacks, Akui-Cabanilla, who was detained prior to trial on a separate federal charge for possessing a firearm as a convicted felon, fashioned two makeshift weapons. The first weapon was a long tube sock tied to the loop of a locked metal padlock. The second weapon was a “shiv” formed from a razor blade with a piece of bedsheet tied around one end, simulating a handle.
A correctional officer was stationed in the office in Akui-Cabanilla’s housing unit when Akui-Cabanilla entered the office and struck him in the head with the locked metal padlock. Akui-Cabanilla took the officer’s Bureau of Prisons-issued keys and pepper spray. He left the office and ran towards the door leading out of the housing unit.
As Akui-Cabanilla tried to unlock the door, other correctional officers opened it. Akui-Cabanilla sprayed multiple officers in the face with pepper spray. He then punched one of the correctional officers on the side of his head and face, knocking him down to the ground. The correctional officers struggled with Akui-Cabanilla before finally subduing him.
The first correctional officer was discovered unconscious on the floor of the housing unit office. He and the area around him were covered in blood. Taken by emergency medical transport to Queens Medical Center, he sustained a concussion and other serious injuries that resulted in hospitalization for five days. After that, he underwent two weeks of physical therapy before being able to return to work.
The correctional officer whom Akui-Cabanilla punched in the head also received emergency medical treatment at Queens Medical Center on March 23. He subsequently underwent months of periodic physical therapy for his injuries.
Each count of assaulting a federal officer resulting in bodily injury provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000.
“This case illustrates the dangers correctional officers face each time they report for duty,” said United States Attorney Clare E. Connors. “We will investigate these types of unprovoked violent assaults against correctional officers and initiate additional prosecutions against culpable detainees.”
“The FBI will not tolerate the assault of any federal officer especially while performing their official duties,” said FBI Special Agent in Charge Steven Merrill. “The FBI is committed to holding Mr. Akui-Cabanilla accountable for such an egregious act. We thank the U.S. Attorney’s Office for the District of Hawaii for the additional prosecution.”
The investigation in the case was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mohammad Khatib is prosecuting the case.
Department of Justice Fiscal Year 2023 Funding RequestRead the Press Release
Today, the President submitted to Congress his Budget for Fiscal Year 2023 (FY23), which requests a total of $37.65 billion in discretionary resources for the Department of Justice, an increase of $2.63 billion over the Fiscal Year 2022 enacted level.
“The President’s Budget would enable the Justice Department to carry out our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “We will put these resources to work to keep our country safe from threats both foreign and domestic – from terrorism and gun violence to cybercrime and corporate crime. At the same time, we will step up our efforts to protect civil rights by combating hate crimes, safeguarding fair elections, and strengthening trust and accountability in law enforcement. This Budget would also allow us to reinvigorate antitrust enforcement and ensure the just administration of our nation’s immigration courts and correctional systems. We look forward to working with Congress to secure this Budget’s timely passage.”
Key resource requests for the Department of Justice include:
- A total of more than $20 billion to expand the capacity of the Department’s law enforcement components and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats. Key investments to keep our country safe include:
- $10.80 billion for the FBI and $2.77 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including by keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction.
- $2.52 billion for the Drug Enforcement Administration (DEA) to continue the fight against dangerous drug trafficking gangs and cartels and to prevent the flow of deadly drugs into our communities.
- $1.81 billion for the U.S. Marshals Service (USMS) to assist local law enforcement in apprehending violent fugitives from our neighborhoods and to protect our nation’s judges and courts.
- $1.73 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to expand multijurisdictional gun trafficking strike forces with additional personnel, enhance the National Integrated Ballistic Information Network, and modernize the National Tracing Center to further build ATF’s capacity to fulfill trace requests from local, state, federal, and international law enforcement agencies.
- Funding to expand the Justice Department’s efforts to protect children from crime and exploitation; fight elder fraud, abuse, and neglect; combat human trafficking; and promote safety and justice in Indian Country.
- Significant investments in grants for state and local law enforcement partners nationwide dedicated to funding the police, preventing crime, and accelerating criminal justice system reform, including:
- A total of $6.24 billion in discretionary and mandatory resources in FY23 for the Office of Justice Programs to support critical longstanding Justice Department grant programs – including Byrne Justice Assistant Grants, Project Safe Neighborhoods, and programs that serve victims of crime – as well as new programs that will provide state, local, and Tribal governments with additional resources to prevent crime, reduce gun violence, and accelerate criminal justice system reform.
- A total of $2.83 billion in discretionary and mandatory resources in FY23 for the Community Oriented Policing Service (COPS Office) to support the hiring of police and sworn law enforcement personnel nationwide and the implementation of community-based strategies to combat violent crime.
- $1 billion for the Office on Violence Against Women to support longstanding Violence Against Women Act (VAWA) programs, including programs that provide critical resources to all states and territories to fund police, prosecutors, courts and victim services as well as resources to provide legal assistance for victims, transitional housing, and homicide and domestic violence reduction initiatives.
- The President is proposing a total of $30 billion in new mandatory resources to support law enforcement, crime prevention, community violence intervention, and justice system reform. More details will be provided on this mandatory funding in the coming weeks.
- Critical investments to support the Justice Department’s mission of protecting civil rights, including:
- Robust support for the Justice Department’s core civil rights components: $215.2 million for the Civil Rights Division to expand its efforts to deter and prosecute hate crimes; safeguard fair elections; and combat discrimination; $25 million for the Community Relations Service to provide mediation and conciliation services to communities impacted by conflict; an additional $17.8 million for the FBI and an additional $8.2 million for the U.S. Attorneys to bolster their civil rights work; and $10 million for the Office for Access to Justice.
- $106.3 million in new funding to strengthen trust and accountability in law enforcement by expanding, formalizing, and managing Body Worn Camera programs for the FBI, DEA, USMS, and ATF.
- $7.9 million in new funding for the Environment and Natural Resources Division’s efforts to advance environmental justice and combat the climate crisis.
- Critical investments in the Antitrust Division, the Consumer Protection Branch, the FBI, U.S. Attorneys’ Offices, and the Criminal Division to promote economic competition; prevent the theft of intellectual property; deter and prosecute corporate crime; protect the government against fraud; and combat corruption. Among other investments, the President’s budget would provide a total of $273 million for the Antitrust Division to reinvigorate antitrust enforcement and protect consumers.
- Resources to ensure the just administration of our nation’s immigration courts and correctional system, including:
- $1.35 billion for the Executive Office for Immigration Review (EOIR) to reduce the backlog of immigration cases, including by supporting 100 new immigration judges, expanding EOIR’s virtual court initiative, and investing new resources in legal access programming.
- $8.18 billion for the Federal Bureau of Prisons (BOP) to ensure the health, safety, and wellbeing of incarcerated individuals and correctional staff; fully implement the First Step Act and ease carriers to successful reentry; and ensure transparency, accountability, and effective oversight of all federal prisons and detention centers.
- A total of more than $20 billion to expand the capacity of the Department’s law enforcement components and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats. Key investments to keep our country safe include:
DEA Agrees to Assist in Testing of Suspected Narcotics in Cases Being Prosecuted in D.C. Superior CourtRead the Press Release
WASHINGTON – The U.S. Drug Enforcement Administration (DEA) will perform drug testing at its laboratories on evidence submitted by prosecutors in District of Columbia cases under a new agreement with the U.S. Attorney’s Office for the District of Columbia, announced U.S. Attorney Matthew M. Graves.
The DEA will perform the testing under a one-year agreement with the U.S. Attorney’s Office following the loss of accreditation last year of the District of Columbia Department of Forensic Sciences (DFS), which had been doing the analysis since 2018. In addition to handling new cases, the DEA will test suspected narcotics in dozens of cases that are now pending in the Superior Court of the District of Columbia.
“Fentanyl and other dangerous narcotics are leading to hospitalizations and deaths in neighborhoods throughout our community,” said U.S. Attorney Graves. “We are committed to working with our law enforcement partners to act against those who distribute and sell these drugs. We are especially grateful to DEA Administrator Anne Milgram and the DEA for this significant support. The DEA’s agreement to test suspected narcotics will enable us to prosecute cases more effectively and efficiently and to achieve justice for those accused of drug offenses.”
The DEA worked with the U.S. Attorney’s Office and handled drug analysis for Superior Court cases until 2018, when the testing was shifted to DFS. On May 2, 2021, the ANSI National Accreditation Board withdrew its accreditation of DFS for all forensic evidence disciplines, creating a gap in the testing of suspected narcotics that the DEA’s laboratories now will fill.
Convicted Terrorist Sentenced to over 15 Years in Federal Prison for Selling Pounds of Methamphetamine While on Supervised ReleaseRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 188 months in federal prison for selling nearly four pounds of methamphetamine while he was on supervised release following a 2009 terrorism conviction.
Ahmed Binyamin Alasiri, 45, a.k.a. Kevin Lamar James, of Garden Grove, was sentenced by United States District Judge Cormac J. Carney. Judge Carney also sentenced Alasiri to 24 months in federal prison for violating the terms of his supervised release, a sentence that will run concurrently to Alasiri’s 188-month term.
Alasiri pleaded guilty in October 2021 to one count of distribution of methamphetamine.
About one year after being released from prison and while serving a term of federal supervised release, Alasiri sold methamphetamine to a buyer on three occasions.
“[Alasiri] was industrious and obtained legitimate full-time employment, yet he did not hesitate to traffic in drugs to earn income,” prosecutors argued in a sentencing memorandum. “He valued his personal short-term goals over respect for the law, the societal and individual damage caused by narcotics, and the risk of arrest for drug trafficking.”
On July 24, 2020, Alasiri sold the buyer 430 grams of pure methamphetamine in exchange for $3,700. On August 6, 2020, Alasiri exchanged 435 grams of pure methamphetamine to the buyer for $3,700. On August 20, 2020, Alasiri distributed 877 grams of pure methamphetamine to the buyer in exchange for $7,400.
The total weight of the methamphetamine was approximately 1.7 kilograms (3.8 pounds).
Alasiri admitted in his plea agreement that he – not the buyer – first raised the topic of selling drugs, and that he had “family members who were drug traffickers and that he himself sold drugs to customers.”
Alasiri is on supervised release after completing a 16-year federal prison sentence for conspiring to levy war against the United States through terrorism. Alasiri’s co-conspirators committed numerous armed robberies of gas stations to raise money for attacks Alasari planned on U.S. military operations and Israeli and Jewish facilities in Southern California. Alasiri completed his prison sentence in September 2019.
This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF) in Orange County, with assistance from the following JTTF agencies and other partners: the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the United States Probation Office, the Federal Bureau of Prisons, the California Department of Corrections and Rehabilitation, the Garden Grove Police Department, the Drug Enforcement Administration, the Orange County Sheriff’s Department, the California Highway Patrol, the United States Department of Defense, and the Orange County Intelligence Assessment Center.
Assistant United States Attorney Dennise D. Willett of the Terrorism and Export Crimes Section prosecuted this case.
Columbia County Woman Indicted on Tax Evasion, Bank Fraud, and Aggravated Identity Theft ChargesRead the Press Release
WILLIAMSPORT -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 24, 2022, Linda Tarlecki, age 60, of Aristes, Pennsylvania, was indicted by a federal grand jury on charges of tax evasion, bank fraud, and aggravated identity theft.
According to United States Attorney John C. Gurganus, the indictment alleges that from 2013 through 2017 while she was as an employee and Township Supervisor of Conyngham Township, Tarlecki embezzled approximately $160,000 of township funds. The embezzlement was accomplished in part by Tarlecki writing unauthorized checks to herself from the township’s bank account and forging the signatures of other township supervisors on these checks. Tarlecki then failed to report the embezzled funds as income on her income tax returns.
The case was investigated by the Internal Revenue Service and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
If convicted, the maximum penalty under federal law for each tax count is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for bank fraud is 30 years of imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Coachella Valley Drug Dealer Sentenced to Almost 22 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
LOS ANGELES – A Palm Springs man with a long criminal record and who previously claimed to have led a Coachella Valley street gang was sentenced today to 260 months in federal prison after admitting he sold distribution quantities of methamphetamine on five occasions.
Efrain Chavez, 37, whose street moniker is “Chino,” was sentenced by United States District Judge Dale S. Fischer. Chavez pleaded guilty in November to five counts of distributing methamphetamine.
When he pleaded guilty, Chavez admitted selling a total of 2.88 kilograms (about 6.3 pounds) of methamphetamine during five transactions in 2019. The sales took place in parking lots in Cathedral City, Palm Springs, and Colton.
When he was arrested in this case in November 2019, Chavez was in possession of another 2.2 kilograms (nearly 5 pounds) of methamphetamine.
Chavez has a criminal history that goes back 19 years and includes five prior felony convictions, prosecutors said in a sentencing memorandum that noted at one time Chavez was the “self-proclaimed leader of the Barrio San Rafael street gang.”
Chavez conducted the methamphetamine sales while on probation for being a convicted felon in possession of a firearm.
“Earlier sentences have not deterred [Chavez] from becoming a career offender, including multiple two-year sentences and a five-year sentence,” according to the sentencing memo. “Even being on supervision did not stop defendant from committing five felonies here.”
Once he completes the prison sentenced, Chavez will be on supervised release for an additional 10 years.
Homeland Security Investigations led the investigation into Chavez under the umbrella of the Riverside County Gang Impact Team, which also includes representatives of the Palm Springs Police Department.
Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office prosecuted this matter.
Chief Financial Officer of Connecticut Insurance Firm Sentenced in $33 Million Scheme to Steal Client Healthcare Funds and Defraud Multiple LendersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ERIN VERESPY was sentenced to 66 months in prison for her participation in a widespread, $33 million scheme to misappropriate client healthcare funds and defraud multiple lenders through her role as the Chief Financial Officer of Employee Benefit Solutions LLC (“EBS”), an insurance firm located in Wilton, Connecticut. VERESPY previously pled guilty before U.S. District Judge Cathy Seibel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “For nearly two years, Erin Verespy helped manage a sophisticated, widespread scheme to steal millions of dollars of client healthcare funds, including with false and inflated invoices. As part of that scheme, Verespy also defrauded lenders out of millions. In doing so, she abused a position of trust as a fiduciary of client money that was meant to pay for important healthcare expenses. Thanks to the coordinated and tireless efforts of our law enforcement partners to untangle this fraud, Verespy will now serve a significant sentence in federal prison.”
According to the Information, the Complaint, other court filings, and statements made during court proceedings:
From at least July 2017 and continuing through 2019, ERIN VERESPY served as the CFO of EBS, which offered a variety of healthcare insurance-related services to clients. EBS, among other things, provided third party healthcare claims administration (“TPA”) services to clients that elected to “self-fund” (or self-insure) their employee healthcare plans. As a TPA, EBS would purportedly administer, process, and pay healthcare claims for its clients’ employees in exchange for an administrative fee.
Between at least 2015 and continuing through 2019, EBS represented an automobile dealership chain (“Company-1”) headquartered in Westchester County, New York. During this time period, EBS served as a TPA for Company-1’s self-funded employee healthcare program and purported to process and pay claims to medical providers that treated Company-1’s employees. To do this, EBS generated bimonthly “check register” invoices for Company-1 that listed all employee healthcare expenses from healthcare providers during that two-week period. EBS also administered a bank account on Company-1’s behalf for the express purpose of paying Company-1 healthcare claims. Company-1 would fund each check register by paying the invoiced amount, expecting that EBS would promptly pay the claims to the healthcare providers. During this time period, Company-1 transferred approximately $26 million to EBS for the payment of healthcare claims.
In reality, a significant amount of purported checks listed on the EBS “check register” invoices were never actually deposited by the healthcare providers. Instead, approximately $17.87 million in Company-1 healthcare payments were misappropriated, with the overwhelming majority simply transferred by EBS into its own operating account, where they were used for non-healthcare expenses by the managers and owners of EBS. For example, a review of bank records indicates that Company-1 healthcare funds were used by VERESPY’s co-conspirators to pay their home mortgage expenses, as well as a personal credit card account with expenses relating to boating, luxury cars, and golf. VERESPY personally made over one million dollars from her participation in the fraudulent scheme.
EBS, through VERESPY and her co-conspirators, made decisions on what few Company-1 healthcare claims they did pay based on which healthcare providers were likely to complain if they did not receive payment, or if the claims were connected to Company-1 executives. VERESPY, for example, discussed the timing of payments for Company-1 “VIPs” as well as a “Not VIP” claim that was nonetheless the subject of complaining phone calls.
The “check registers” sent to Company-1 also contained millions of dollars in fraudulent or inflated healthcare claims that were eventually paid by Company-1. EBS routinely inflated the Company-1 check registers at the direction of VERESPY and her co-conspirators. Such efforts were typically accomplished through VERESPY and her co-conspirators instructing others to manually create fraudulent entries in the EBS claims processing software, including fake claims under the name of a business controlled by VERESPY’s co-conspirators. VERESPY and her co-conspirators also took steps to conceal their fraud from Company-1 by creating and sending manipulated and fabricated bank statements and checks to create the appearance that healthcare claims were being paid by EBS, when in reality they were not.
By mid-2017, as EBS buckled under mounting outstanding fiduciary obligations, VERESPY and her co-conspirators began an elaborate effort to conceal and perpetuate the ongoing fraud on Company-1 by applying for multiple fraudulent bank loans and merchant cash advances designed in part to pay various fiduciary obligations that EBS owed to Company-1. VERESPY and her co-conspirators fraudulently applied for and received millions of dollars in loans under the auspices of financing the purchase of upgraded billing software for EBS, which included VERESPY and her co-conspirators submitting fabricated invoices from a fake company that supposedly sold the billing software.
In addition to the prison term, ERIN VERESPY, 50, of Trumbull, Connecticut, was sentenced to 5 years of supervised release. The Court also ordered VERESPY to pay $16,053,508.19 in restitution and forfeit $1,066,038.02. On April 14, 2021, VERESPY pled guilty to one count of conspiracy to commit wire fraud and bank fraud, in violation of Title 18, United States Code, Section 1349.
Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the United States Attorney’s Office. Mr. Williams also thanked the U.S. Department of Labor, Employee Benefits Security Administration; the U.S. Department of Labor, Office of Inspector General; and the United States Secret Service, which are assisting in the investigation, as well as the U.S. Attorney’s Office for the District of Connecticut.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
Chicago, Illinois, Man Sentenced to 121 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
ROCK ISLAND, Ill. – A Chicago, Illinois, man, Corey Deandre Jamison, 24, of the 9600 block of South Yates Blvd., was sentenced on March 25, 2022, to 121 months in prison for possession with intent to distribute methamphetamine. Jamison was also sentenced to four years of supervised release.
The government stated at Jamison’s sentencing that authorities began investigating the distribution of methamphetamine in the Galesburg and Macomb, Illinois, areas in fall 2020. Law enforcement agents determined that Jamison was a source of the methamphetamine being distributed.
Also at the sentencing hearing, the district court held Jamison accountable for the distribution of at least one pound of methamphetamine over a four-month period, finding that the evidence showed that Jamison utilized at least two other drug dealers to sell some of the methamphetamine for him.
Jamison pleaded guilty to the possession with intent to distribute methamphetamine charge in December 2021.
The statutory penalty for the offense is between five and 40 years of imprisonment.
The investigation was conducted by the Galesburg Police Department, the Macomb Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney John Mehochko represented the federal government in the prosecution.
Chicago Man Sentenced to Prison for Violent CarjackingRead the Press Release
ST. PAUL, Minn. – A Chicago man has been sentenced to 52 months in prison followed by three years of supervised release for aiding and abetting a carjacking in downtown Minneapolis. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
According to court documents, on June 1, 2020, officers with the Minneapolis Police Department responded to a report of a carjacking in the downtown area. A witness told officers that two men, one later identified as Delaney Nicholas Harris, 21, the second an unidentified accomplice, approached a man who was exiting his vehicle, and threw him to the ground. One of the men displayed a gun, threatened to kill the victim, and demanded his car keys. The witness also told officers that Harris had been holding a red plastic cup just prior to the incident. Officers recovered the cup and later found that the fingerprints and DNA on the cup were a match for Harris.
Harris also entered his guilty plea on March 25, 2022, to a single count of aiding and abetting carjacking.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Career Criminal Sentenced to More Than 21 Years in Prison for Possessing AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Victor Ricardo Grant (40, Brandon) to 21 years and 10 months in federal prison for possessing ammunition as convicted felon. A federal jury had found Grant, who is a career criminal under the Armed Career Criminal Act, guilty on December 15, 2021.
According to court records and testimony presented at trial, the FBI obtained a search warrant for Grant’s residence as part of an investigation into a series of credit union robberies and carjackings that had been committed in Hillsborough and Pinellas Counties in 2019. Investigators found approximately 400 rounds of 7.62 caliber ammunition inside backpacks kept in Grant’s bedroom closet and in the attic of his home. Ammunition drum magazines and loaded magazine clips for an AK-47 rifle were also found in the backpack hidden in the attic. Grant, having previously been convicted of several felony offenses, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorneys Michael Sinacore and Diego Novaes.
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.
Berkeley County woman sentenced for drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kristina Gilmore, of Martinsburg, West Virginia, was sentenced today to four years of probation for drug charges, United States Attorney William Ihlenfeld announced.
Gilmore, also known as “Diamond,” 26, pled guilty in December 2020 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base” and one count of “Aiding and Abetting Distribution of Heroin and Fentanyl Mixture.” Gilmore admitted to working with others to distribute heroin, fentanyl, and cocaine base in February 2020 in Berkeley County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Gina M. Groh presided.
Assault with a bat sends Wolf Point man to prison for 54 monthsRead the Press Release
GREAT FALLS — A Fort Peck Indian Reservation man who admitted to aiding in attacking a man in the head with a bat was sentenced today to 54 months in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Rick John Morales, Jr., 32, who resides in both Wolf Point and Poplar, pleaded guilty in November 2021 to assault resulting in serious bodily injury, aiding and abetting.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $13,505 restitution to be joint and several with the codefendant.
In court documents filed in the case, the government alleged that Morales aided and abetted codefendant Harry B. Azure in assaulting the victim, identified as John Doe, on Nov. 19, 2019, in Wolf Point. John Doe called 911 for medical assistance and told a responding tribal officer that three individuals kicked in the door to his residence, struck him multiple times in the head with a small baseball bat and left. Doe ultimately was flown to a Billings hospital where staff determined the victim had a severe traumatic brain injury. The victim later told law enforcement that the assault occurred days after an incident involving Morales. Azure was sentenced previously to 32 months in prison for conviction in the case.
The U.S. Attorney’s Office, including Assistant U.S. Attorney Wendy Johnson, prosecuted the case, which was investigated by the FBI and Fort Peck Tribal Police.
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