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Thursday 24 March 2022
Grand Jury - March 2022Read the Press Release
United States Attorney Jan W. Sharp announced the federal Grand Jury for the District of Nebraska has returned 14 unsealed Indictments charging 17 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Matthew Carlson, age 38, of Omaha, is charged in a two-count Indictment. Count I charges Carlson with receipt of child pornography with priors between on or about March 1, 2021 and continuing to on or about November 23, 2021. The penalty if convicted is not less than 10 years and up to 40 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $35,000 additional special assessment. Count II charges Carlson with possession of child pornography with priors between on or about November 23, 2021. The penalty if convicted is not less than 10 years and up to 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $17,000 additional special assessment.
* Tyler Denby, age 36, of Alliance, Nebraska, is charged in a two-count Indictment. Count I charges Denby with transport of child pornography on or about July 30, 2021. The penalty if convicted is not less than 5 years and up to 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $40,000 additional special assessment. Count II charges Denby with possession of child pornography on or about July 30, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $22,000 additional special assessment.
* Cynthia Diane Steele Gilchrist, age 47, of Lincoln, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about April 14, 2021. The penalty if convicted is not less than 10 years and up to life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 14, 2021.
* Darrian Grant, age 24, is charged with failure to register as a sex offender on or about December 19, 2021 and continuing to on or about February 11, 2022. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment.
* Jean Ferrer Leyva-Pazos, age 19, is charged with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about February 23, 2022. The penalty if convicted is not less than 5 years’ and not more than 40 years’ imprisonment, a $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment.
* Juan Lorenzo-Felipe, age 25, is charged with illegal reentry after deportation on or about March 1, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Denis Perez Koh, age 35, is charged with illegal reentry after deportation on or about March 9, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Quincy Louis, a/k/a Quincy LaRue Louis, age 25, D’Juan Beverly, Jr., age 23, Adrionna La’Sha Leeper, age 22, and Faye-Lynne Hardesty, age 19, are charged in a thirty-count Indictment. Count I charges Louis, Beverly, Leeper, and Hardesty with conspiracy to interfere with commerce by robbery beginning on or about February 24, 2022 and continuing to on or about March 1, 2022. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Counts II, III, V, VII, IX, XI, XIII, XV, XVII, XVIX XXIII, XXV, XXVII, XXIX charge the defendants with specific robberies beginning on or about February 24, 2022 and continuing to on or about March 1, 2022. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Counts IV, VI, VIII, X, XII, XIV, XVI, XVIII, XX, XXII, XXIV, XXVIII charge the defendants with brandishing a firearm during specific robberies on or about February 25, 2022 and continuing to on or about March 1, 2022. The penalty if convicted is not less than 7 years’ and up to life imprisonment, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Counts XXVI and XXX charge the defendants with discharging a firearm during and in relation to a crime of violence on or about March 1, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Each firearms count must run consecutive to other counts.
* Wesly Preister, age 52, of Omaha, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about January 11, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $8,000,000 fine, an eight-year term of supervised release, and a $100 special assessment.
* Rudy Ortega Raymundo, age 34, of Lexington, Nebraska, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) and 50 grams or more of methamphetamine (actual) on or about October 3, 2021. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Darell C. Richards, age 32, is charged with escape from custody on or about February 19, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Russell L. Rucks, Jr., age 29, of Lincoln, Nebraska is charged in a two-count Indictment. Count I charges Rucks with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine on or about April 1, 2021 and continuing to on or about August 12, 2021. The penalty if convicted is not less than 5 years’ and not more than 40 years’ imprisonment, a $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment. Count II charges Rucks with possession with intent to distribute 500 grams or more of cocaine on or about August 12, 2021. The penalty if convicted is not less than 5 years’ and not more than 40 years’ imprisonment, a $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about August 12, 2021.
* Jose Ramiro Segovia-Garcia, age 30, is charged with illegal reentry of a removed alien after a felony on or about March 9, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Joshua Sund, age 41, is charged in a five-count Indictment. Counts I - V charge Sund with production of child pornography between on or about September 17, 2018 and continuing to on or about January 9, 2020. The penalty if convicted is not less than 15 years’ and not more than 30 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $55,000 additional special assessment.
Georgia Man with Past Fraud Conviction Sentenced in CARES Act Fraud CaseRead the Press Release
VALDOSTA, Ga. – A Georgia man with a prior federal conviction for fraud was sentenced to federal prison for a scheme he orchestrated to claim government pandemic funds using identity theft and fraud.
Darrius Hollis, 28, of Quitman, Georgia, was sentenced to serve a total of 42 months in prison to be followed by three years of supervised release by U.S. District Judge Hugh Lawson on March 23, after pleading guilty to wire fraud. The sentence included 30 months on the wire fraud conviction and 12 additional months to serve consecutively on a revocation of the supervised release Hollis was still serving for the earlier bank and wire fraud conspiracy conviction. In addition, Judge Lawson ordered Hollis to pay $42,667 in restitution to the Georgia Department of Labor. There is no parole in the federal system.
According to court documents, a United States Secret Service Special Agent was contacted by an individual in Aug. 2020, who believed Hollis was involved with filing fraudulent unemployment insurance claims. Hollis was familiar to the agent because of his prior federal fraud conviction. The U.S. Department of Labor ran a query of its claims database and discovered that an unemployment insurance claim seeking federal and state pandemic assistance was electronically filed in Hollis’ name stating that he had been working at a Quitman business and lost his job due to the COVID-19 pandemic. In fact, Hollis was in federal prison during most of that claimed time period serving a sentence for a previous conviction, having been released from federal custody in late April 2020. Further investigation discovered that Hollis used the identities of two victims to fraudulently apply for and receive unemployment insurance and Coronavirus Aid, Relief, and Economic Security (CARES) Act money. Hollis admitted to the scheme and is responsible for a total of $42,337 in losses to the State of Georgia and the United States.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the United States Secret Service, the U.S. Department of Labor and the Georgia Department of Labor.
Assistant U.S. Attorney Robert McCullers prosecuted the case.
Genesis Petroleum Resolves Federal Environmental Claims Involving 13 Gas Stations Located in Long Island and Westchester, New York and New JerseyRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York and Lisa Garcia, Regional Administrator of the U.S. Environmental Protection Agency (EPA) Region 2, announced that the United States has entered into a Consent Judgment settling a civil lawsuit against Genesis Petroleum, Inc. and 20 associated companies (Defendants), for violating the Resource Conservation and Recovery Act (RCRA) in connection with their ownership or operation of underground storage tanks (USTs) at 13 gas stations in New York and New Jersey. The Consent Judgment requires the Defendants to adequately detect leaks of petroleum product from USTs, and to implement other safety measures, across their facilities in New York and New Jersey. The settlement also requires Defendants to pay a civil penalty of $250,000.
“Genesis Petroleum flagrantly disregarded measures required by law that are designed to protect the health and safety of the communities in which it operates its gas stations. Leaks from underground storage tanks can contaminate drinking water supplies, pollute surrounding soil and surface waters as well as groundwater, and impact indoor airspaces,” stated United States Attorney Peace. “This settlement reaffirms this Office's commitment to safeguarding public health, preserving the environment, and promoting environmental justice in partnership with the EPA.”
“This settlement protects communities across New York and New Jersey by significantly improving how these businesses manage underground storage tanks,” stated EPA Regional Administrator Garcia. “If underground storage tanks leak, they can pose a serious problem because they can contaminate groundwater, and the risk can be heightened when owners and operators of USTs fail to comply with EPA’s regulatory requirements. Underground storage tanks are important business infrastructure and are essential for fueling vehicles but when these tanks are not properly maintained or repaired, communities and the environment can be at risk from leaks of hazardous substances.”
Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. Service stations typically store gasoline in USTs. When operated conscientiously and monitored closely, USTs are a safe and effective means to store gasoline. But when those tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking the contents of their tanks into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions.
EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks, monitor for leaks so they can promptly be addressed, and maintain adequate insurance to conduct corrective action and compensate injured third parties should a leak occur.
The Consent Judgment, which is subject to public comment and approval by the district court, resolves a lawsuit filed by the United States in June 2019, which alleges that the Defendants repeatedly violated RCRA and related regulations at various times between 2012 and 2016 with respect to their ownership and/or operation of underground storage tanks at 13 gas stations. Twelve of the Defendants’ facilities covered by the Consent Judgment are located in low-income areas and communities of color that are exposed to disproportionate environmental burdens.
The United States alleges that the Defendants failed to perform required actions including:
- failure to install and use spill prevention equipment at three facilities;
- failure to use overfill prevention equipment at three facilities;
- failure to provide release detection for underground storage tanks at three facilities;
- failure to provide release detection for pressurized piping at six facilities;
- failure to test automatic line leak detectors at nine facilities;
- failure to report suspected releases at three facilities;
- failure to perform release detection for underground storage tanks that were temporarily closed but still contained more than three feet of petroleum products at one facility;
- failure to timely provide records of release detection monitoring at ten facilities;
- failure to timely respond to requests for information issued by EPA at 13 facilities; and
- failure to maintain financial responsibility and evidence of financial responsibility at seven facilities.
Pursuant to the Consent Judgment, Defendants are required to comply with the regulations applicable to USTs for all tanks at 29 facilities at which they currently own or operate underground storage tanks in New York and New Jersey. The Consent Judgment requires Defendants to implement significant measures to ensure such compliance, including undertaking inspections, maintaining and operating a federally approved release detection method at all underground storage tanks at the facilities, maintaining a properly functioning and operational overfill prevention system for new tanks and providing semi-annual reports to EPA.
The Consent Judgment will be lodged with the District Court for a period of at least 30 days and notice of the Consent Judgment will be published in the Federal Register before the Consent Judgement is submitted for the Court’s approval. This will afford members of the public the opportunity to submit comments on the Consent Judgement to the Department of Justice.
In June 2021, the United States Attorney’s Office for the Eastern District of New York created an Environmental Justice Team within the Office’s Civil Division. The focus of the Environmental Justice Team is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards.
This matter is being handled by Assistant U.S. Attorneys Jolie Apicella and Paulina Stamatelos with assistance from Paralegal Specialist Mary Ellen Buntin of the United States Attorney’s Office for the Eastern District of New York, working with Lee Spielmann, Assistant Regional Counsel, EPA Region 2, and Hiep Tran, Enforcement Officer, EPA Region 2.
E.D.N.Y. Docket No. 19-CV-3340 (JS)
The Defendants:Genesis Petroleum, Inc.
Technic Management, Inc.
Gulden Inc.
2664 RT 112 Realty Corp.
607 Station Road Realty Inc.
1000 Motor Parkway Central Islip LLC
616 Broadway LLC
Freeport Realty LLC
199 E. Sunrise Highway Realty Corp.
465 Nassau Road Realty Corp.
Camlica, Inc.
Kucukbey Corp.
North Country Road Realty LLC
Elizabeth NJPO LLC
Elizabeth NJPG LLC
Perth Amboy NJPO LLC
Perth Amboy NJPG LLC
Newark NJPO LLC
Newark NJPG LLC
North Bergen NJPO LLC
North Bergen NJPG
Gas Stations in the Complaint:2664 Route 112, Medford, New York
607 Station Road, Bellport, New York
87 North Country Road, Miller Place, New York
616 Route 110, Amityville, New York
6077 Jericho Turnpike, Commack, New York
199 E. Sunrise Highway, Freeport, New York
131 West Merrick, Freeport, New York
465 Nassau Road, Roosevelt, New York
261 East Merrick Road, Freeport, New York
507 Bayway Avenue, Elizabeth, New Jersey
163 Fayette Street, Perth Amboy, New Jersey
66-80 Bloomfield Avenue, Newark, New Jersey
8012 Tonnelle Avenue, North Bergen, New Jersey
Gas Stations Subject to the Consent Judgment:2664 Route 112, Medford, NY
607 Station Road, Bellport, NY
87 North Country Road, Miller Place, NY
616 Route 110 (Broadway Road), Amityville, NY
199 East Sunrise Highway, Freeport, NY
131 West Merrick Road, Freeport, NY
465 Nassau Road, Roosevelt, NY
11 Station Road, Bellport, NY
315 Route 112, Port Jefferson, NY
1575 Route 112, Port Jefferson, NY
4290 Austin Blvd., Island Park, NY
303 Maple Avenue in Smithtown, NY
2394 Boston Post Road, Larchmont, NY
2149 Boston Post Road, Larchmont, NY
747 Main Street, New Rochelle, NY
8012 Tonnelle Avenue, North Bergen, NJ
2 Marlton Pike W, Cherry Hill, NJ
4915 Route 130 & Browning Road, Pennsauken, NJ
1422 W. Landis Avenue, Vineland, NJ
520 E. Commerce Street, Bridgeton, NJ
3731 Bay Shore Road, Lower Township, NJ
515 S. Pennsville-Auburn Road, Carneys Point, NJ
632 2nd Avenue, Long Branch, NJ
379 Quaker Church Road, Randolph, NJ
1839 Admiral Wilson Blvd., Camden, NJ
509 Route 47S, Cape May, NJ
1651 Route 38 & 464 Pine Street, Mount Holly, NJ
615 Pearl Street N., Bridgeton, NJ
3422 S. Delsea Drive, Vineland, NJ
Four Russian Government Employees Charged in Two Historical Hacking Campaigns Targeting Critical Infrastructure WorldwideRead the Press Release
The Department of Justice unsealed two indictments today charging four defendants, all Russian nationals who worked for the Russian government, with attempting, supporting and conducting computer intrusions that together, in two separate conspiracies, targeted the global energy sector between 2012 and 2018. In total, these hacking campaigns targeted thousands of computers, at hundreds of companies and organizations, in approximately 135 countries.
A June 2021 indictment returned in the District of Columbia, United States v. Evgeny Viktorovich Gladkikh, concerns the alleged efforts of an employee of a Russian Ministry of Defense research institute and his co-conspirators to damage critical infrastructure outside the United States, thereby causing two separate emergency shutdowns at a foreign targeted facility. The conspiracy subsequently attempted to hack the computers of a U.S. company that managed similar critical infrastructure entities in the United States.
An August 2021 indictment returned in the District of Kansas, United States v. Pavel Aleksandrovich Akulov, et al., details allegations about a separate, two-phased campaign undertaken by three officers of Russia’s Federal Security Service (FSB) and their co-conspirators to target and compromise the computers of hundreds of entities related to the energy sector worldwide. Access to such systems would have provided the Russian government the ability to, among other things, disrupt and damage such computer systems at a future time of its choosing.
“Russian state-sponsored hackers pose a serious and persistent threat to critical infrastructure both in the United States and around the world,” said Deputy Attorney General Lisa O. Monaco. “Although the criminal charges unsealed today reflect past activity, they make crystal clear the urgent ongoing need for American businesses to harden their defenses and remain vigilant. Alongside our partners here at home and abroad, the Department of Justice is committed to exposing and holding accountable state-sponsored hackers who threaten our critical infrastructure with cyber-attacks.”
“The FBI, along with our federal and international partners, is laser-focused on countering the significant cyber threat Russia poses to our critical infrastructure,” said FBI Deputy Director Paul Abbate. “We will continue to identify and quickly direct response assets to victims of Russian cyber activity; to arm our partners with the information that they need to deploy their own tools against the adversary; and to attribute the misconduct and impose consequences both seen and unseen.”
“We face no greater cyber threat than actors seeking to compromise critical infrastructure, offenses which could harm those working at affected plants as well as the citizens who depend on them,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The department and my office will ensure that those attacking operational technology will be identified and prosecuted.”
“The potential of cyberattacks to disrupt, if not paralyze, the delivery of critical energy services to hospitals, homes, businesses and other locations essential to sustaining our communities is a reality in today’s world,” said U.S. Attorney Duston Slinkard for the District of Kansas. “We must acknowledge there are individuals actively seeking to wreak havoc on our nation’s vital infrastructure system, and we must remain vigilant in our effort to thwart such attacks. The Department of Justice is committed to the pursuit and prosecution of accused hackers as part of its mission to protect the safety and security of our nation.”
In addition to unsealing these charges, the U.S. government is taking action to enhance private sector network defense efforts and disrupt similar malicious activity.
The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has already released numerous Technical Alerts, ICS Alerts and Malware Analysis Reports regarding Russia’s malign cyber activities, including the campaigns discussed in the indictments. These are located at: https://www.cisa.gov/shields-up
- United States v. Evgeny Viktorovich Gladkikh – defendant installed backdoors and launched malware designed to compromise the safety of energy facilities
In June 2021, a federal grand jury in the District of Columbia returned an indictment charging Evgeny Viktorovich Gladkikh (Евгений Викторович Гладких), 36, a computer programmer employed by an institute affiliated with the Russian Ministry of Defense, for his role in a campaign to hack industrial control systems (ICS) and operational technology (OT) of global energy facilities using techniques designed to enable future physical damage with potentially catastrophic effects.
According to the indictment, between May and September 2017, the defendant and co-conspirators hacked the systems of a foreign refinery and installed malware, which cyber security researchers have referred to as “Triton” or “Trisis,” on a safety system produced by Schneider Electric, a multinational corporation. The conspirators designed the Triton malware to prevent the refinery’s safety systems from functioning (i.e., by causing the ICS to operate in an unsafe manner while appearing to be operating normally), granting the defendant and his co-conspirators the ability to cause damage to the refinery, injury to anyone nearby, and economic harm. However, when the defendant deployed the Triton malware, it caused a fault that led the refinery’s Schneider Electric safety systems to initiate two automatic emergency shutdowns of the refinery’s operations. Between February and July 2018, the conspirators researched similar refineries in the United States, which were owned by a U.S. company, and unsuccessfully attempted to hack the U.S. company’s computer systems.
The three-count indictment alleges that Gladkikh was an employee of the State Research Center of the Russian Federation FGUP Central Scientific Research Institute of Chemistry and Mechanics’ (Государственный научный центр Российской Федерации федеральное государственное унитарное предприятие Центральный научно-исследовательский институт химии и механики, hereinafter “TsNIIKhM”) Applied Developments Center (“Центр прикладных разработок,” hereinafter “ADC”). On its website, which was modified after the Triton attack became public, TsNIIKhM described itself as the Russian Ministry of Defense’s leading research organization. The ADC, in turn, publicly asserted that it engaged in research concerning information technology-related threats to critical infrastructure (i.e., that its research was defensive in nature).
The defendant is charged with one count of conspiracy to cause damage to an energy facility, which carries a maximum sentence of 20 years in prison, one count of attempt to cause damage to an energy facility, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison.
Assistant U.S. Attorneys Christopher B. Brown and Luke Jones for the District of Columbia, in partnership with the National Security Division’s Counterintelligence and Export Control Section, are prosecuting this case. The FBI’s Washington Field Office conducted the investigation.
The U.S.-based targets of the conspiracy cooperated and provided valuable assistance in the investigation. The Department of Justice and the FBI also expressed appreciation to Schneider Electric for its assistance in the investigation, particularly noting the company’s public outreach and education efforts following the overseas Triton attack.
- United States v. Pavel Aleksandrovich Akulov, Mikhail Mikhailovich Gavrilov, and Marat Valeryevich Tyukov – defendants undertook years-long effort to target and compromise computer systems of energy sector companies
On Aug. 26, 2021, a federal grand jury in Kansas City, Kansas, returned an indictment charging three computer hackers, all of whom were residents and nationals of the Russian Federation (Russia) and officers in Military Unit 71330 or “Center 16” of the FSB, with violating U.S. laws related to computer fraud and abuse, wire fraud, aggravated identity theft and causing damage to the property of an energy facility.
The FSB hackers, Pavel Aleksandrovich Akulov (Павел Александрович Акулов), 36, Mikhail Mikhailovich Gavrilov (Михаил Михайлович Гаврилов), 42, and Marat Valeryevich Tyukov (Марат Валерьевич Тюков), 39, were members of a Center 16 operational unit known among cybersecurity researchers as “Dragonfly,” “Berzerk Bear,” “Energetic Bear,” and “Crouching Yeti.” The indictment alleges that, between 2012 and 2017, Akulov, Gavrilov, Tyukov and their co-conspirators, engaged in computer intrusions, including supply chain attacks, in furtherance of the Russian government’s efforts to maintain surreptitious, unauthorized and persistent access to the computer networks of companies and organizations in the international energy sector, including oil and gas firms, nuclear power plants, and utility and power transmission companies. Specifically, the conspirators targeted the software and hardware that controls equipment in power generation facilities, known as ICS or Supervisory Control and Data Acquisition (SCADA) systems. Access to such systems would have provided the Russian government the ability to, among other things, disrupt and damage such computer systems at a future time of its choosing.
According to the indictment, the energy sector campaign involved two phases. In the first phase, which took place between 2012 and 2014 and is commonly referred to by cyber security researchers as “Dragonfly” or “Havex,” the conspirators engaged in a supply chain attack, compromising the computer networks of ICS/SCADA system manufacturers and software providers and then hiding malware – known publicly as “Havex” – inside legitimate software updates for such systems. After unsuspecting customers downloaded Havex-infected updates, the conspirators would use the malware to, among other things, create backdoors into infected systems and scan victims’ networks for additional ICS/SCADA devices. Through these and other efforts, including spearphishing and “watering hole” attacks, the conspirators installed malware on more than 17,000 unique devices in the United States and abroad, including ICS/SCADA controllers used by power and energy companies.
In the second phase, which took place between 2014 and 2017 and is commonly referred to as “Dragonfly 2.0,” the conspirators transitioned to more targeted compromises that focused on specific energy sector entities and individuals and engineers who worked with ICS/SCADA systems. As alleged in the indictment, the conspirators’ tactics included spearphishing attacks targeting more than 3,300 users at more than 500 U.S. and international companies and entities, in addition to U.S. government agencies such as the Nuclear Regulatory Commission. In some cases, the spearphishing attacks were successful, including in the compromise of the business network (i.e., involving computers not directly connected to ICS/SCADA equipment) of the Wolf Creek Nuclear Operating Corporation (Wolf Creek) in Burlington, Kansas, which operates a nuclear power plant. Moreover, after establishing an illegal foothold in a particular network, the conspirators typically used that foothold to penetrate further into the network by obtaining access to other computers and networks at the victim entity.
During the Dragonfly 2.0 phase, the conspirators also undertook a watering hole attack by compromising servers that hosted websites commonly visited by ICS/SCADA system and other energy sector engineers through publicly known vulnerabilities in content management software. When the engineers browsed to a compromised website, the conspirators’ hidden scripts deployed malware designed to capture login credentials onto their computers.
The conspiracy’s hacking campaign targeted victims in the United States and in more than 135 other countries.
Akulov, Gavrilov and Tyukov are charged with conspiracy to cause damage to the property of an energy facility and commit computer fraud and abuse, which carries a maximum sentence of five years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. Akulov and Gavrilov are also charged with substantive counts of wire fraud and computer fraud related to unlawfully obtaining information from computers and causing damage to computers. These offenses carry maximum sentences ranging from five to 20 years in prison. Finally, Akulov and Gavrilov are also charged with three counts of aggravated identity theft, each of which carry a minimum sentence of two years consecutive to any other sentence imposed.
Assistant U.S. Attorneys Scott Rask, Christopher Oakley and Ryan Huschka forthe District of Kansas, and Counsel for Cyber Investigations Ali Ahmad and Trial Attorney Christine Bonomo of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. The FBI’s Portland and Richmond field offices conducted the investigation, with the assistance of the FBI’s Cyber Division.
Numerous victims, including Wolf Creek and its owners Evergy and the Kansas Electric Power Cooperative, cooperated and provided invaluable assistance in the investigation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Note: View the concurrent announcement by the Department of State of a $10 million reward for information leading to the arrest of a defendant or identification of other conspirators as part of its Rewards for Justice program.
View the concurrent announcement by the FBI, Department of Energy and Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) of a Joint Cybersecurity Advisory containing technical details, indicators of compromise and mitigation measures.
Four Russian Government Employees Charged in Two Historical Hacking Campaigns Targeting Critical Infrastructure WorldwideRead the Press Release
WASHINGTON - The Department of Justice unsealed two indictments today charging four defendants, all Russian nationals who worked for the Russian government, with attempting, supporting and conducting computer intrusions that together, in two separate conspiracies, targeted the global energy sector between 2012 and 2018. In total, these hacking campaigns targeted thousands of computers, at hundreds of companies and organizations, in approximately 135 countries.
A June 2021 indictment returned in the District of Columbia, United States v. Evgeny Viktorovich Gladkikh, concerns the alleged efforts of an employee of a Russian Ministry of Defense research institute and his co-conspirators to damage critical infrastructure outside the United States, thereby causing two separate emergency shutdowns at a foreign targeted facility. The conspiracy subsequently attempted to hack the computers of a U.S. company that managed similar critical infrastructure entities in the United States.
An August 2021 indictment returned in the District of Kansas, United States v. Pavel Aleksandrovich Akulov, et al., details allegations about a separate, two-phased campaign undertaken by three officers of Russia’s Federal Security Service (FSB) and their co-conspirators to target and compromise the computers of hundreds of entities related to the energy sector worldwide. Access to such systems would have provided the Russian government the ability to, among other things, disrupt and damage such computer systems at a future time of its choosing.
“Russian state-sponsored hackers pose a serious and persistent threat to critical infrastructure both in the United States and around the world,” said Deputy Attorney General Lisa O. Monaco. “Although the criminal charges unsealed today reflect past activity, they make crystal clear the urgent ongoing need for American businesses to harden their defenses and remain vigilant. Alongside our partners here at home and abroad, the Department of Justice is committed to exposing and holding accountable state-sponsored hackers who threaten our critical infrastructure with cyber-attacks.”
“The FBI, along with our federal and international partners, is laser-focused on countering the significant cyber threat Russia poses to our critical infrastructure,” said FBI Deputy Director Paul Abbate. “We will continue to identify and quickly direct response assets to victims of Russian cyber activity; to arm our partners with the information that they need to deploy their own tools against the adversary; and to attribute the misconduct and impose consequences both seen and unseen.”
“We face no greater cyber threat than actors seeking to compromise critical infrastructure, offenses which could harm those working at affected plants as well as the citizens who depend on them,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The department and my office will ensure that those attacking operational technology will be identified and prosecuted.”
“The potential of cyberattacks to disrupt, if not paralyze, the delivery of critical energy services to hospitals, homes, businesses and other locations essential to sustaining our communities is a reality in today’s world,” said U.S. Attorney Duston Slinkard for the District of Kansas. “We must acknowledge there are individuals actively seeking to wreak havoc on our nation’s vital infrastructure system, and we must remain vigilant in our effort to thwart such attacks. The Department of Justice is committed to the pursuit and prosecution of accused hackers as part of its mission to protect the safety and security of our nation.”
In addition to unsealing these charges, the U.S. government is taking action to enhance private sector network defense efforts and disrupt similar malicious activity.
The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has already released numerous Technical Alerts, ICS Alerts and Malware Analysis Reports regarding Russia’s malign cyber activities, including the campaigns discussed in the indictments. These are located at: https://www.cisa.gov/shields-up
- United States v. Evgeny Viktorovich Gladkikh – defendant installed backdoors and launched malware designed to compromise the safety of energy facilities
In June 2021, a federal grand jury in the District of Columbia returned an indictment charging Evgeny Viktorovich Gladkikh (Евгений Викторович Гладких), 36, a computer programmer employed by an institute affiliated with the Russian Ministry of Defense, for his role in a campaign to hack industrial control systems (ICS) and operational technology (OT) of global energy facilities using techniques designed to enable future physical damage with potentially catastrophic effects.
According to the indictment, between May and September 2017, the defendant and co-conspirators hacked the systems of a foreign refinery and installed malware, which cyber security researchers have referred to as “Triton” or “Trisis,” on a safety system produced by Schneider Electric, a multinational corporation. The conspirators designed the Triton malware to prevent the refinery’s safety systems from functioning (i.e., by causing the ICS to operate in an unsafe manner while appearing to be operating normally), granting the defendant and his co-conspirators the ability to cause damage to the refinery, injury to anyone nearby, and economic harm. However, when the defendant deployed the Triton malware, it caused a fault that led the refinery’s Schneider Electric safety systems to initiate two automatic emergency shutdowns of the refinery’s operations. Between February and July 2018, the conspirators researched similar refineries in the United States, which were owned by a U.S. company, and unsuccessfully attempted to hack the U.S. company’s computer systems.
The three-count indictment alleges that Gladkikh was an employee of the State Research Center of the Russian Federation FGUP Central Scientific Research Institute of Chemistry and Mechanics’ (Государственный научный центр Российской Федерации федеральное государственное унитарное предприятие Центральный научно-исследовательский институт химии и механики, hereinafter “TsNIIKhM”) Applied Developments Center (“Центр прикладных разработок,” hereinafter “ADC”). On its website, which was modified after the Triton attack became public, TsNIIKhM described itself as the Russian Ministry of Defense’s leading research organization. The ADC, in turn, publicly asserted that it engaged in research concerning information technology-related threats to critical infrastructure (i.e., that its research was defensive in nature).
The defendant is charged with one count of conspiracy to cause damage to an energy facility, which carries a maximum sentence of 20 years in prison, one count of attempt to cause damage to an energy facility, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison.
Assistant U.S. Attorneys Christopher B. Brown and Luke Jones for the District of Columbia, in partnership with the National Security Division’s Counterintelligence and Export Control Section, are prosecuting this case. The FBI’s Washington Field Office conducted the investigation.
The U.S.-based targets of the conspiracy cooperated and provided valuable assistance in the investigation. The Department of Justice and the FBI also expressed appreciation to Schneider Electric for its assistance in the investigation, particularly noting the company’s public outreach and education efforts following the overseas Triton attack.
- United States v. Pavel Aleksandrovich Akulov, Mikhail Mikhailovich Gavrilov, and Marat Valeryevich Tyukov – defendants undertook years-long effort to target and compromise computer systems of energy sector companies
On Aug. 26, 2021, a federal grand jury in Kansas City, Kansas, returned an indictment charging three computer hackers, all of whom were residents and nationals of the Russian Federation (Russia) and officers in Military Unit 71330 or “Center 16” of the FSB, with violating U.S. laws related to computer fraud and abuse, wire fraud, aggravated identity theft and causing damage to the property of an energy facility.
The FSB hackers, Pavel Aleksandrovich Akulov (Павел Александрович Акулов), 36, Mikhail Mikhailovich Gavrilov (Михаил Михайлович Гаврилов), 42, and Marat Valeryevich Tyukov (Марат Валерьевич Тюков), 39, were members of a Center 16 operational unit known among cybersecurity researchers as “Dragonfly,” “Berzerk Bear,” “Energetic Bear,” and “Crouching Yeti.” The indictment alleges that, between 2012 and 2017, Akulov, Gavrilov, Tyukov and their co-conspirators, engaged in computer intrusions, including supply chain attacks, in furtherance of the Russian government’s efforts to maintain surreptitious, unauthorized and persistent access to the computer networks of companies and organizations in the international energy sector, including oil and gas firms, nuclear power plants, and utility and power transmission companies. Specifically, the conspirators targeted the software and hardware that controls equipment in power generation facilities, known as ICS or Supervisory Control and Data Acquisition (SCADA) systems. Access to such systems would have provided the Russian government the ability to, among other things, disrupt and damage such computer systems at a future time of its choosing.
According to the indictment, the energy sector campaign involved two phases. In the first phase, which took place between 2012 and 2014 and is commonly referred to by cyber security researchers as “Dragonfly” or “Havex,” the conspirators engaged in a supply chain attack, compromising the computer networks of ICS/SCADA system manufacturers and software providers and then hiding malware – known publicly as “Havex” – inside legitimate software updates for such systems. After unsuspecting customers downloaded Havex-infected updates, the conspirators would use the malware to, among other things, create backdoors into infected systems and scan victims’ networks for additional ICS/SCADA devices. Through these and other efforts, including spearphishing and “watering hole” attacks, the conspirators installed malware on more than 17,000 unique devices in the United States and abroad, including ICS/SCADA controllers used by power and energy companies.
In the second phase, which took place between 2014 and 2017 and is commonly referred to as “Dragonfly 2.0,” the conspirators transitioned to more targeted compromises that focused on specific energy sector entities and individuals and engineers who worked with ICS/SCADA systems. As alleged in the indictment, the conspirators’ tactics included spearphishing attacks targeting more than 3,300 users at more than 500 U.S. and international companies and entities, in addition to U.S. government agencies such as the Nuclear Regulatory Commission. In some cases, the spearphishing attacks were successful, including in the compromise of the business network (i.e., involving computers not directly connected to ICS/SCADA equipment) of the Wolf Creek Nuclear Operating Corporation (Wolf Creek) in Burlington, Kansas, which operates a nuclear power plant. Moreover, after establishing an illegal foothold in a particular network, the conspirators typically used that foothold to penetrate further into the network by obtaining access to other computers and networks at the victim entity.
During the Dragonfly 2.0 phase, the conspirators also undertook a watering hole attack by compromising servers that hosted websites commonly visited by ICS/SCADA system and other energy sector engineers through publicly known vulnerabilities in content management software. When the engineers browsed to a compromised website, the conspirators’ hidden scripts deployed malware designed to capture login credentials onto their computers.
The conspiracy’s hacking campaign targeted victims in the United States and in more than 135 other countries.
Akulov, Gavrilov and Tyukov are charged with conspiracy to cause damage to the property of an energy facility and commit computer fraud and abuse, which carries a maximum sentence of five years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. Akulov and Gavrilov are also charged with substantive counts of wire fraud and computer fraud related to unlawfully obtaining information from computers and causing damage to computers. These offenses carry maximum sentences ranging from five to 20 years in prison. Finally, Akulov and Gavrilov are also charged with three counts of aggravated identity theft, each of which carry a minimum sentence of two years consecutive to any other sentence imposed.
Assistant U.S. Attorneys Scott Rask, Christopher Oakley and Ryan Huschka for the District of Kansas, and Counsel for Cyber Investigations Ali Ahmad and Trial Attorney Christine Bonomo of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. The FBI’s Portland and Richmond field offices conducted the investigation, with the assistance of the FBI’s Cyber Division.
Numerous victims, including Wolf Creek and its owners Evergy and the Kansas Electric Power Cooperative, cooperated and provided invaluable assistance in the investigation.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Former School Bus Driver Pleads Guilty to Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Frederick J. Haresign, age 62, of Oswego, New York pled guilty yesterday to possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his guilty plea, Haresign, a school bus driver, admitted that, in 2017, he provided a minor child who rode on his bus with nicotine and other gifts in exchange for the child creating sexually explicit images and videos and providing those images and videos to Haresign. Haresign admitted that he possessed those images and videos in 2017 so that he could view them.
Sentencing is set for July 20, 2022, before Chief United States District Court Judge Glenn T. Suddaby. If the Court accepts the parties’ plea agreement, Haresign will be sentenced to 10 years’ imprisonment to be followed by 20 years of supervised release. In addition, the court could impose a fine of up to $250,000 and order restitution to the victim. Haresign will have to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the Department of Homeland Security Investigations (HSI) and the New York State Police: Fulton Bureau of Criminal Investigations, and Troop D Computer Crimes Unit. It is being prosecuted by Assistant United States Attorney Michael D. Gadarian in coordination with the Oswego County District Attorney’s Office as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former San Angelo Police Chief Convicted of BriberyRead the Press Release
San Angelo’s former Chief of Police has been convicted of accepting bribes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
After a three-day trial and about seven hours of deliberation, a federal jury found Timothy Ray Vasquez, 52, guilty of one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud. Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – was first indicted in January 2020.
“Law enforcement officers, particularly those in leadership positions, should be bastions of integrity. By accepting bribes, Mr. Vasquez defiled his badge,” said U.S. Attorney Chad Meacham. “The Justice Department is determined to root out public corruption wherever we find it. Our citizens deserve honest public servants.”
“Mr. Vasquez will now be held accountable for using his official position for financial gain at the expense of the residents of San Angelo. Each act of greed and dishonor affected fundamental aspects of the government processes and procedures that were designed to benefit the people they serve,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Our communities should not have to question the integrity and trust of public officials, and today’s verdict is a step in restoring that confidence.”
According to evidence presented at trial, Mr. Vasquez used his official position to help Dailey & Wells Communications, Inc., a radio system vendor, land a $5.7-million-dollar contract with the City of San Angelo, Texas. In return, Dailey & Wells and its affiliates funneled Mr. Vasquez and his band, “Funky Munky,” more than $175,000. Dailey & Wells and its affiliates also provided him tickets for luxury suites at Dallas Cowboys and San Antonio Spurs games, tickets for a luxury suite at Journey concert, and free use of a luxury condominium at Alteza Condos in San Antonio.
Mr. Vasquez never disclosed to the City of San Angelo or the City Council that he had a business relationship with Dailey & Wells. The Texas Local Government Code, the City of San Angelo Employee Manual, and the San Angelo Purchasing Policy Manual all required Mr. Vasquez to disclose this relationship.
In February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. In April, a committee recommended the city award the $5.6 million contract to Dailey & Wells, which was eventually selected for the contract.
Three months later, in July, Juniper Valley, L.P., an affiliate of Dailey & Wells, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account. For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Dailey & Wells or its affiliates, Buster & Buddy and Trixie & Fini, either made out to Mr. Vasquez or his band. Testimony at trial revealed that Funky Munky’s average fee to play at an event was about $2,000. By June 2, 2015, Mr. Vasquez and Funky Munky had collected more than $84,000.
In 2014 and 2015, Dailey & Wells contacted the City of San Angelo about updating its radio system from a proprietary EDACS system, which was in the process of being phased out, to a P25 Phase II system. When the City’s IT Manager told Mr. Vasquez of the estimated cost of $6 million dollars and that it would have to go through the bidding process, Mr. Vasquez told the IT Manager they were not going through the bidding process and were going to continue to use Dailey & Wells. Mr. Vasquez suggested that the IT Manager use a public safety exception to avoid the bidding process and the IT Manager agreed. Ultimately, a purchasing cooperative was used to purchase the Dailey & Wells system.
Mr. Vasquez contacted a San Angelo City Councilmember and lobbied her to place the Dailey & Wells contract on the City Council’s agenda. Mr. Vasquez advocated for the Dailey & Wells contract before the City Council on December 16, 2014, and June 2, 2015.
Six people who were city council members at the time testified that Mr. Vasquez had significant influence with the City Council and it relied upon his advice in public safety matters. All six stated that they did not know Mr. Vasquez had a business relationship with Dailey & Wells before the vote on June 2, 2015. Five of those former city council members testified that if they had known that fact they would have voted against awarding the contract to Dailey & Wells. Two of the former city council members stated that if they had known of the payments then they would have disqualified Dailey & Wells from being a radio vendor to the city.
Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Dailey & Wells in late 2015.
In November 2016, Mr. Vasquez became aware that he was under investigation for the radio contract with Dailey & Wells. About one month later, Dailey & Wells wrote a $50,000 retainer check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.
In total, Mr. Vasquez, through Funky Munky, received at least $175,000 from Dailey & Wells and its affiliates.
The defendant was remanded to the custody of the U.S. Marshals Service after the verdict. Mr. Vasquez faces up to 70 years in federal person.
The Federal Bureau of Investigation, the Tom Green County Sheriff’s Office, and the Texas Rangers conducted the investigation with the full cooperation of the San Angelo Police Department and the City of San Angelo. Assistant U.S. Attorneys Jeff Haag, Sean Long, and Juanita Fielden are prosecuting the case.
Former Paraguayan Congresswoman Sentenced to 33 Months in Prison for Role in International Money Laundering ConspiracyRead the Press Release
TRENTON, N.J. – A former member of Paraguay’s Congress was sentenced today to 33 months in prison for her role in an international money laundering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Cynthia Elizabeth Tarrago Diaz, 42, pleaded guilty on Sept. 15, 2020, before Chief Judge Freda L. Wolfson to an information charging her with conspiracy to commit money laundering. Judge Wolfson imposed Tarrago’s sentence today by videoconference. Tarrago’s husband, Raimundo Va, 46, pleaded guilty on Sept. 16, 2020, before Judge Wolfson to an information charging him with one count of conspiracy to commit money laundering, and is scheduled to be sentenced on April 14, 2022.
Tarrago and Va were arrested by the FBI on Nov. 21, 2019, after they arrived in Newark as part of their unlawful money laundering activities, and were charged in a criminal complaint along with a third individual, Rodrigo Alvarenga Paredes, who remains in Paraguay.
According to documents filed in this case and statements made in court:
Until January 2019, Tarrago was a member of Paraguay’s Congress and, in late 2019, had publicly announced her intention to run for mayor of the capital district of Asunción. While in office, Tarrago and Va agreed to accept at least $2 million in United States currency from two individuals who represented themselves to be narcotics traffickers, believing the money to be proceeds of unlawful narcotics trafficking and to launder the funds through an international network of accounts in order to disguise the unlawful source of the proceeds. Tarrago and Va traveled to New Jersey and Florida on multiple occasions and accepted approximately $800,000 in United States currency from the purported drug traffickers. They then caused those funds to be laundered through the conspiracy’s network of accounts and ultimately to be transferred back to an account maintained by the purported drug traffickers. To disguise the illicit source of the funds, members of the conspiracy generated fraudulent invoices that stated legitimate business reasons for the transfers of laundered funds to the purported drug traffickers’ account. On multiple occasions during the purported drug dealers’ meetings with Tarrago and Va, Tarrago indicated that she would be able to assist the purported drug dealers with procuring large quantities of cocaine from Paraguay at an inexpensive price.
Unbeknownst to Tarrago and Va, the currency that they accepted from the purported drug traffickers and caused to be laundered was not actually illicit drug proceeds, but was provided to Tarrago and Va by two undercover FBI agents as part of an extensive investigation of the money laundering network. The undercover agents met with Tarrago and Va in the United States on numerous occasions and obtained substantial video and audio recordings of their interactions with Tarrago and Va, during which details of the money laundering network were discussed. The evidence obtained revealed that Alvarenga Paredes, operating through the auspices of a money-exchange company in Paraguay, coordinated the laundering of the funds that the undercover agents provided to Tarrago and Va.
In addition to the prison term, Judge Wolfson ordered Tarrago to forfeit $119,049.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. He also thanked the Department of Justice’s Office of International Affairs for its assistance in the case.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko of the Criminal Division in Trenton and J. Brendan Day, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.
Former Manager at U.S. Auto Manufacturer Allegedly Accepted over $3.4 Million in Bribes from Foreign Parts Supplier Seeking ContractRead the Press Release
LOS ANGELES – A former manager at a U.S.-based automobile manufacturing company was taken into custody this morning after being indicted this week on a federal bribery charge alleging he solicited a $5 million bribe from a South Korean company with promises of delivering a large contract for various car parts.
Hyoung Nam So, 46, of Irvine, who was also known as Brian So, surrendered this morning to federal authorities after a federal grand jury on Wednesday charged him in a bribery conspiracy. So is expected to be arraigned on the one-count indictment this afternoon in United States District Court in downtown Los Angeles.
The indictment alleges that the foreign parts supplier paid So a total of $3.45 million in cash. Homeland Security Investigations seized $3.19 million believed to be proceeds from the bribery scheme from a private vault in Los Altos, California in 2017, and HSI subsequently returned the money to South Korean authorities.
As a manager and team leader at the Michigan-based car manufacturer – referred to as “Company A” in the indictment – So oversaw the supply of parts used to build interiors for Company A automobiles in North America. In October 2015, the indictment alleges, So promised a contract to the owner of the South Korean parts company – “Company B” – in exchange for $5 million, which So demanded in cash.
The following month, the owner of Company B arranged to have $1 million in cash transferred to the United States through money brokers, which an accomplice then drove from Los Angeles to Michigan, according to the indictment. The owner of Company B allegedly flew to the United States in late November 2015 and personally delivered the cash to So in a meeting at a hotel in Troy, Michigan.
By the time the $1 million payment was made, So had learned that Company B was not the lowest bidder on the contract, and he arranged for information to be provided to Company B so it could revise its bid on the contract, according to the indictment. On December 8, 2015, So recommended to Company A executives that the contract be awarded to Company B, and the contract was awarded to Company B on the same day.
“So refrained from notifying Company B of the contract award, and continued to withhold the information until [Company B’s owner] paid the remaining portion of the bribe,” the indictment states. On December 20, 2015, the owner of Company B allegedly paid So another portion of the bribe at a restaurant in Detroit – $2.45 million that also had been driven from Los Angeles to Michigan. The following day, So arranged for Company B to be told it had won the contract.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
The indictment charges So with one count of conspiracy to commit federal funds bribery, a charge related to the fact that Company A received money through federal assistance programs. This offense carries a maximum statutory penalty of five years in federal prison.
The owner of Company B was prosecuted for offenses related to the bribery scheme in South Korea.
The investigation into the bribery scheme was conducted by HSI’s Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators who are focused on financial crimes in Southern California. The Justice Department’s Office of International Affairs provided substantial assistance during the investigation.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.
Former HP Planning Manager Pleads Guilty to $5+ Million Wire Fraud SchemeRead the Press Release
OAKLAND – Shelbee Szeto pleaded guilty today to wire fraud, money laundering, and a relate tax charge in a scheme to defraud her former employer out of more than five million dollars, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service Criminal Investigation Special Agent in Charge Mark H. Pearson. The guilty plea was accepted by the Honorable Haywood S. Gilliam Jr., United States District Judge.
According to the plea agreement, Szeto, 30, of Fremont, was employed by HP, Inc. (HP) as an executive assistant and finance planning manager from approximately August 2017 until June of 2021. In these roles, Szeto was responsible for making payments to HP vendors and was issued multiple HP commercial credits cards to make the payments on HP’s behalf. Rather than make payments in accordance with the company’s policies, Szeto devised a fraudulent scheme whereby she sent approximately $4.8 million in unauthorized payments from her HP commercial credit cards to several Square, PayPal, and Stripe merchant accounts under her control.
The plea agreement provides several details of the scheme. For example, the agreement describes how, as part of her employment with HP, Szeto was issued multiple American Express commercial credit cards that were intended only for business expenses. Szeto then set up bogus merchant accounts with PayPal, Stripe, and Square that she maintained under her control, but represented were for legitimate vendors. Szeto then unlawfully sent payments from the credit cards to the bogus accounts. To further her plan, Szeto uploaded falsified invoices to HP’s internal system and falsely represented to HP that the payments were made to legitimate vendors. She also made false representations to Square that the payments sent from the credit cards were sent to HP’s approved vendors for legitimate business transactions and falsely represented to her bank that the money from HP was for legitimate business transactions.
According to the plea agreement, Szeto caused at least $4.8 million to be fraudulently from HP accounts to accounts she controlled and attempted to steal an additional approximately $330,000 from HP. Szeto acknowledged that the total loss and attempted loss from her scheme was at least $5.2 million.
Furthermore, the plea agreement contains a list of items for which Szeto has forfeited her interest. The list includes items such as the proceeds of a First Republic Bank account; a 2020 Tesla sedan; a 2021 Porsche sport utility vehicle; several bags and purses from Dior, Gucci, Hermes, and Chanel; and a collection of jewelry and timepieces including necklaces, rings, pendants, and watches from Rolex, Bulgari, Audemars Pignet, and Cartier. The list has 161 line items—some lines of which include multiple items such as “7 necklaces with clover-shaped design,” “6 gold necklaces with pendants,” and “26 pairs of earrings.”
On February 11, 2022, the Office of the United States Attorney filed an Information charging Szeto with two counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of money laundering, in violation of 18 U.S.C. § 1957; and one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). According to today’s plea agreement, Szeto pleaded guilty to all five counts.
The maximum statutory sentence for the wire fraud counts is a fine of up to $250,000 and three years of supervised release, per count. The maximum statutory sentence for money laundering counts is ten years in prison, a fine of up to $250,000, and three years of supervised release per count. The maximum statutory sentence for the false tax return charge is three years in prison, a fine of up to $100,000, and one year of supervised release. However, any sentence following a conviction would be imposed by a 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.
Judge Gilliam scheduled Szeto’s sentencing for July 20, 2022.
Assistant U.S. Attorney Molly Priedeman is prosecuting the case with the assistance of Leeya Kekona. The prosecution is the result of an investigation by the IRS-CI.
Former Charter School Board President Found Guilty of Embezzlement and Wire FraudRead the Press Release
Miami, Florida – On March 23, 2022, following a week and half-long trial, a federal jury in Fort Lauderdale, Florida found Jimika I. Williams, a/k/a Jimika Mason, guilty of two counts of theft concerning programs receiving federal funds and 18 counts of wire fraud.
According to court records and evidence presented at trial, Williams was the President of Advancement of Education in Scholars Corporation (AESC), a Florida non-profit corporation that operated Paramount Charter School (PCS), a charter school located in Broward County. PCS received federal funding through Title 1, which is only paid to a school if more than 50% of the students are eligible for free or reduced cost lunches. PCS also received state funding, and all funding was paid through the School Board of Broward County.
The trial evidence also established that Williams was the President of another Florida corporation, Florida Scholars Educational Services Corporation (FSESC). Between 2015 through and including June of 2017, Williams unlawfully enriched herself by making payments totaling approximately $389,857 from AESC’s business account, which was used to operate PCS, for no services to the charter school. The funds were transferred/deposited into an FSESC account and used for Williams’ personal purchases including payments for a vehicle, a private school, rent, and other personal expenses, and not for the benefit of PCS.
On June 7, 2022, the Honorable United States District Court Judge Rodney Smith will impose a sentence. Williams faces a maximum sentence of 10 years’ imprisonment for each of the theft of government programs charge and 20 years’ imprisonment for each of the wire fraud charges, as well as substantial monetary penalties and restitution.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Reginald J. France, Special Agent in Charge, U.S. Department of Education, Office of Inspector General, Southeastern Regional Office made the announcement.
FBI Miami and the U.S. Department of Education, Office of Inspector General, Southeastern Regional Office investigated the case. Assistant U.S. Attorneys Cynthia Wood and Eric Morales prosecuted the case. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-60135.
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Five Members of Violent Criminal Enterprise Indicted in Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – Five members of a violent criminal enterprise were indicted by a federal grand jury today in connection with a drug trafficking conspiracy that distributed large amounts of cocaine and cocaine base (crack cocaine) throughout Western Massachusetts.
Vicente Gonzalez, 41, of Springfield; Brigham Ocasio-Ramos, 44, of Springfield; Miguel Burgos, 45, of Holyoke; and Khristy Guzman, 37, of Holyoke; were indicted on conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. Gonzalez and Ocasio-Ramos were also indicted on possessing a firearm in furtherance of a drug trafficking offense. Willie Watkins, 42, of Springfield, was indicted for being a convicted felon in possession of a firearm. The defendants were arrested and charged on March 10, 2022.
According to court documents, Gonzalez was identified as the leader of a violent criminal enterprise operating in Hampden County. During the investigation, controlled purchases and intercepted communications between Gonzalez and his co-conspirators revealed that, beginning in or about July 2021, the defendants allegedly prepared and trafficked large amounts of cocaine and crack cocaine in the Holyoke and Springfield areas.
In furtherance of the trafficking activity, it is alleged that the enterprise used violence and threats of violence to control Gonzalez’s territory in Holyoke. For example, court documents allege that in July 2021, Gonzalez, Ocasio and other co-conspirators attempted a violent armed kidnapping at the enterprise’s drug sale location in Holyoke. During the incident, Gonzalez and Ocasio allegedly brandished and pointed firearms at the victim and, after the victim fled the building, chased and attempted to detain the victim with the firearms.
The charge of conspiracy to distribute more than 500 grams of cocaine provides for a sentence of at least five years and up to 20 years in prison, up to a lifetime of supervised release and a fine of up to $1 million. The charge of possessing a firearm in furtherance of a drug trafficking offense provides for a sentence of at least five years and up to life in prison, up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a convicted felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Holyoke Police Chief David Pratt; and Cheryl C. Clapprood, Superintendent of the Springfield Police Department made the announcement today. The investigation was led by the Federal Bureau of Investigation’s Western Massachusetts Gang Task Force. Valuable assistance was provided by the Massachusetts State Police and the Hampden District Attorney’s Office. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Office is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Arrested in Firearms Trafficking Conspiracy Involving 500+ Firearms Shipped from Georgia to California, Sold on Black Market in CaliforniaRead the Press Release
A federal grand jury indicted five individuals today charging them with a conspiracy to bring firearms from Georgia to California in order to sell them on the black market, U.S. Attorney Phillip A. Talbert announced.
On March 11, 2022, the five defendants were arrested. They are Jerrell Lawson, 31, of Sacramento; Aisha Hoggatt, 29, of Sacramento; Malek Williams, 28, of Atlanta, Georgia; Terrence Phillips, 39, of Union City; and James Gordley, 32, of Modesto.
All five defendants are charged with conspiracy to unlawfully deal in firearms and unlawful dealing in firearms for their part in this firearms trafficking scheme. Lawson, Hoggatt, Williams and Phillips are also charged with transferring a firearm to an out-of-state resident, and unlawful mailing of a firearm. Lawson is also charged with being a felon in possession of a firearm.
According to the criminal complaint, between November 2019 and October 2021, Lawson and his co-conspirators purchased over 500 firearms for more than $162,000. Lawson would broker firearms transactions in Georgia over the internet, and Williams, a Georgia resident with a license to carry a concealed firearm, would pick up firearms in person and mail the firearms to various locations in California at Lawson’s direction. Some of the firearms went to individuals that are prohibited from possessing firearms due to prior felony convictions. Hoggatt worked with Lawson to coordinate the purchase, mailing, and distribution of the firearms. Phillips and Gordley also distributed the firearms in California.
The investigation began when a firearm used in a shooting in Sacramento was traced to the last known sale by a federally licensed dealer in Georgia. A subsequent sale of the firearm led to Lawson’s organization. Lawson and his co-conspirators used coded language to traffic firearms and moved money using a variety of financial institutions. During the investigation, interdicted packages destined for Lawson and other co-conspirators were found to contain firearms, ammunition, knives, and brass knuckles, among other things.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Sacramento Region/ San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force Initiative. Assistant U.S. Attorneys Ross Pearson, Justin Lee, and Alexis Klein are prosecuting the case.
If convicted, the defendants face the following maximum penalties: five years in prison on each count for conspiracy to unlawfully deal in firearms, unlawful dealing in firearms and transferring a firearm to an out-of-state resident, and two years in prison on each count for unlawful mailing of a firearm. Lawson faces an additional maximum penalty of 10 years in prison for being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fitchburg Man Pleads Guilty in Wide-Ranging Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man pleaded guilty yesterday in federal court in Worcester to his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Kevin Martinez, 42, pleaded guilty to conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 16, 2022.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, electronic communications revealed that the Baez DTO distributed a fentanyl and heroin mixture, cocaine and crack cocaine on a regular basis to individuals in the Fitchburg area, who then redistributed the drugs to others.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 was seized. Martinez was responsible for distributing nearly 500 grams of cocaine.
Martinez was charged along with 17 others in July 2020. He is the 12th defendant to plead guilty in the case.
For the charge of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base and 500 grams or more of cocaine, Martinez faces a sentence of up to life in prison, at least six years of supervised release and a fine of up to $20 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit is prosecuting the case.
The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Buffalo Man of Murder and Causing A Heroin Overdose That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that following a four-week week trial, a federal jury has convicted Donte Walker, a/k/a Slim, 30, of Buffalo, NY, of multiple charges including murder while engaged in a continuing criminal enterprise and narcotics conspiracy, tampering with a witness, discharge of firearms causing death in furtherance of crimes of violence and drug trafficking crimes, conspiracy to distribute heroin resulting in death, and several narcotics offenses. The charges carry a mandatory sentence of life in prison and a fine up to a $20,000,000.
Assistant U.S. Attorneys Meghan E. Leydecker, Nicholas T. Cooper, and Seth T. Molisani, who handled the prosecution of the case, stated that between 2012 and November 2018, Walker was a leader of a heroin and cocaine trafficking organization operating in the Buffalo area. Walker utilized various associates, including drug runners and lower-level drug dealers. At a peak in Walker’s heroin distribution enterprise in 2015 and 2016, he was responsible for the daily distribution of hundreds of grams of heroin, sometimes mixed with butyryl fentanyl or furanyl fentanyl. Over the years, Walker also regularly sold cocaine.
In 2013, as part of the ongoing narcotics conspiracy, Walker was responsible for the distribution of heroin to M.O., which resulted in M.O.’s death. In addition, on October 16, 2018, Walker lured Ryan Thurnherr to an area near the East Ferry Liquor Store in Buffalo under the auspices of engaging in a drug transaction. Shortly after shots were fired, and Thurnherr was found murdered in a vacant lot near the intersection of Winslow Avenue and Brooklyn Street. Walker believed Thurnherr was a witness or a threat to become a witness in the ongoing DEA investigation into the defendant’s drug-trafficking organization.
The verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Tonawanda Police Department, under the direction of Chief James P. Stauffiger; the Cheektowaga Police Department, under the direction of Chief Brian Gould; and the Orchard Park Police Department, under the direction of Chief Patrick M. Fitzgerald.
Sentencing is scheduled for August 5, 2022, before U.S. District Judge John L. Sinatra, Jr. who presided over the trial of the case.
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Federal Grand Jury Indicts Two Louisville Men for Carjackings as a Result of Joint Federal and Local Initiative in LouisvilleRead the Press Release
LOUISVILLE, KY – A federal grand jury in Louisville, Kentucky, returned two separate indictments on March 16, 2022, charging two Louisville men with carjackings and business robberies, including one carjacking resulting in a serious bodily injury.
According to court documents, on October 26, 2021, Eder Mayorga-Sanchez, 19, carjacked a vehicle in Louisville, and during the carjacking, shot and caused serious bodily injury to a minor, C.A. Thereafter, on November 8, 2021, he robbed The Home Depot on Preston Highway and a Valero convenience store on Terry Road, in Louisville, Kentucky, while brandishing a firearm.
Aries Taylor, 18, in a separate indictment, is also charged with carjacking a vehicle in Louisville on September 19, 2021.
Mayorga-Sanchez is currently detained on state charges and will be arraigned once he is transferred to federal custody. Mayorga-Sanchez was indicted on one count of carjacking resulting in serious bodily injury, two counts of interference with commerce by robbery, one count of discharge of a firearm in furtherance of a crime of violence, and two counts of brandishing a firearm in furtherance of a crime of violence.
If convicted of carjacking resulting in serious bodily injury, Mayorga-Sanchez faces a maximum penalty of 25 years in prison. If convicted of interference with commerce by robbery, he faces a maximum penalty of 20 years in prison. If convicted of discharge of a firearm in furtherance of a crime of violence, he faces a mandatory minimum penalty of 10 years in prison to run consecutively with all other penalties. If convicted of brandishing a firearm in furtherance of a crime of violence, he faces a mandatory minimum penalty of 7 years in prison for each count of conviction, to run consecutively with all other penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Taylor was indicted on one count of carjacking. He made his initial appearance in the United States District Court for the Western District of Kentucky on March 23, 2022.
If convicted of carjacking, Taylor faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The charges were announced by Michael A. Bennett, United States Attorney for the Western District of Kentucky.
The charges were the result of a joint federal and local initiative to investigate and prosecute carjackings in Louisville. The initiative includes the United States Attorney’s Office, the Jefferson County Office of the Commonwealth’s Attorney, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Louisville Metropolitan Police Department, and Homeland Security Investigations.
Assistant U.S. Attorney Ann Marie Blaylock is prosecuting the Mayorga-Sanchez case and Assistant U.S. Attorney Alicia Gomez is prosecuting the Taylor case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Ex-Savannah B&B manager sentenced to prison for embezzling more than half a million dollarsRead the Press Release
SAVANNAH, GA: The former manager of a Savannah bed and breakfast has been sentenced to federal prison after admitting she embezzled more than $500,000 from her employer.
Chiquita Blake, 47, of Pooler, Ga., was sentenced to 51 months in prison after pleading guilty to Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge William T. Moore Jr. also ordered her to pay $508,114.37 in restitution and to serve three years of supervised release and perform 40 hours of community service after completion of her prison term.
There is no parole in the federal system.
“Chiquita Blake was a trusted employee of a family owned business, and stole from her employer to fuel a lifestyle far beyond her means,” said U.S. Attorney Estes. “She’s now being held accountable for her unbridled greed.”
As described in court documents and testimony, Blake was employed as a manager of a bed and breakfast in Savannah’s Historic District from 2005 to 2020. From around May 2015 through December 2020, Blake manipulated the inn’s reservation system to fraudulently transfer funds from the inn’s accounts and into bank and credit card accounts that she controlled. She then used those funds for personal use and to make payments to some of her nearly three dozen credit accounts.
After the inn’s owner noticed discrepancies in accounting, an investigation determined that Blake had illegally transferred $508,114.37 from the hotel and into her own accounts.
“The U.S. Secret Service is committed to investigating complex fraud schemes in Savannah,” said Craig Reno, Resident Agent in Charge of the Savannah Resident Office of the U.S. Secret Service. “This was a particularly insidious scheme because the defendant exploited a position of trust within the company. The Secret Service and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.”
The case was investigated by the U.S. Secret Service, and prosecuted for the United States by Assistant U.S. Attorney Joshua S. Bearden.
El Departamento de Justicia entabla un pleito de derechos electorales contra el Condado de Galveston, Texas con el fin de impugnar el plan para una nueva delimitación de distritos en el CondadoRead the Press Release
El Departamento de Justicia anunció hoy que ha entablado pleito en virtud de la Sección 2 de la ley de Derechos Electorales contra el Condado de Galveston, Texas, con el fin de impugnar el plan para una nueva delimitación de distritos para el órgano rector del Condado, el que se conoce como el Tribunal de Comisionados. El plan fue adoptado por el Condado el 12 de noviembre de 2021 después de la publicación de los datos del censo 2020. El caso fue presentado ante el Tribunal Federal de Distrito para el Distrito Sur de Texas.
«Esta acción es la demostración más reciente del compromiso del Departamento de Justicia con la protección de los derechos electorales de todo estadounidense, especialmente durante el ciclo actual de nueva delimitación de distritos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Nuestro caso alega que el Condado de Galveston ha vulnerado la Sección 2 de la ley de Derechos Electorales al desarrollar un plan para una nueva delimitación de distritos que elimina el único distrito en el cual electores negros e hispanos tenían la oportunidad de elegir a un candidato de su elección al órgano rector del Condado. Seguiremos empleando todas las herramientas a nuestra disposición para impugnar instancias de discriminación electoral en nuestro país».
«La Fiscalía Federal para el Distrito Sur de Texas se ha comprometido a proteger los derechos electorales de todos nuestros ciudadanos» declaró Jennifer B. Lowery, la Fiscal Federal para el Distrito Sur de Texas. «Nos complace unirnos a la División de Derechos Civiles para entablar este pleito tan importante al amparo de la ley de Derechos Electorales».
El caso de los Estados Unidos mantiene que el plan del 2021 para la nueva delimitación de distritos para el órgano rector del Condado vulnera la Sección 2 porque tiene el resultado discriminatorio de denegar a ciudadanos negros e hispanos la igualdad de oportunidades de participar en el proceso político y porque el nuevo mapa fue adoptado, en parte, con fines discriminatorios. El caso alega que el Condado, de manera deliberada, reconfiguró el único distrito del Tribunal de Comisionados con la oportunidad para elegir una minoría para eliminar la oportunidad de electores negros e hispanos de elegir un representante de su elección. Más aún, el caso alega que, a lo largo de las últimas tres décadas, el Condado de Galveston ha, en varias otras ocasiones, intentado disminuir o eliminar oportunidades electorales para electores negros e hispanos en el Condado.
El caso de los Estados Unidos pide que el tribunal prohíba que el Condado de Galveston celebre elecciones bajo el plan en cuestión y que instruya al Condado de Galveston que formule e implemente un nuevo plan de delimitación de distritos que cumpla con la Sección 2 de la ley de Derechos Electorales.
Hay más información sobre la ley de Derechos Electorales y otras leyes electorales federales en el sitio web del Departamento de Justicia en https://www.justice.gov/crt/voting-section.
Se puede presentar quejas de prácticas electorales discriminatorias ante la División de Derechos Civiles mediante el portal virtual de denuncias en https://civilrights.justice.gov o por teléfono al 1‑800-253-3931.
Para una lista de las acciones del Departamento para la protección de los derechos electorales.
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Dubuque Armed Career Criminal Convicted at Trial Sentenced to over 20 Years in Federal PrisonRead the Press Release
A man who was found driving in Dubuque with baggies of cocaine was sentenced yesterday to more than twenty years in federal prison. A stolen loaded 9 mm pistol was later located in the ceiling of his shared hotel room.
Terrance Golden, age 45, from Dane County, Wisconsin, received the prison term after an October 13, 2021 jury verdict finding him guilty of possession with intent to distribute cocaine base and possession of a firearm by a prohibited person.
Evidence at trial showed that on the evening of October 1, 2020, Golden was driving in Dubuque, Iowa, when he was pulled over for an expired registration. Golden matched the description of an individual who was reported to be selling narcotics at a nearby gas station. A drug-sniffing K9 alerted on his vehicle and he was found in possession of approximately 23 baggies of cocaine base and $1,867 in cash. Golden lied about his identity as a warrant was out for his arrest from the State of Wisconsin. A search of his shared hotel room revealed items used to package and sell narcotics and a stolen, loaded, 9mm firearm hidden inside the bathroom ceiling tile. In a recorded interview with the Dubuque Police Department, Golden stated, “I’ll save my bullshit for the judges.”
Golden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Golden was sentenced to 262 months’ imprisonment and fined $200. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Golden 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 Attorneys Liz Dupuich and Ashley Corkery and investigated by the Dubuque Police Department, the Dubuque County Sheriff’s Office, 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 21-cr-1005.
Follow us on Twitter @USAO_NDIA.
Cumberland County Man Pleads Guilty to Health Care Fraud, Money Laundering, and Theft of Public MoneyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 22, 2022, Rodney L. Yentzer, age 52, of Cumberland County, Pennsylvania, pleaded guilty to conspiracy to commit health care fraud, conspiracy to commit money laundering, and theft of public money for defrauding Medicare, Medicaid, and the U.S. Department of Health and Human Services between 2016 and 2020. Yentzer also agreed to pay $3,869,571.55 in restitution for these offenses.
According to United States Attorney John C. Gurganus, Yentzer agreed with others to defraud Medicare and Medicaid by submitting medically unnecessary urine drug tests for patients at clinics he controlled, including a group of pain clinics known as Pain Medicine of York or “PMY” (also known as All Better Wellness).
PMY billed Medicare for more than $10 million in urine drug tests from mid-2017 through the end of 2019. As a result, Medicare paid out over $4 million for these urine drug tests. Pennsylvania’s Medicaid program was also billed for urine drug tests during this same time period. The urine drug tests ordered by PMY were sent to an in-house laboratory at PMY whenever possible. As a result, when medically unnecessary tests were billed to Medicare, the proceeds from them went to PMY itself.
Search warrants were executed at PMY’s various locations in November 2019, and PMY ceased operations soon after that.
Thereafter, in a separate offense, Yentzer sought and received over $191,000 in U.S. Department of Health and Human Services stimulus money that was intended for health care providers who had health care related expenses and lost revenues attributable to COVID-19. Yentzer obtained these funds in April 2020, even though he had resigned from PMY the prior month and PMY had been closed since late 2019. Yentzer used these funds on various things unrelated to COVID-19 relief, including personal expenses.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, Federal Bureau of Investigation, Drug Enforcement Administration, and the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Ravi Romel Sharma and Special Assistant U.S. Attorney Robert Smultkis are prosecuting the case.
The maximum penalty under federal law for conspiracy to commit health care fraud is 10 years’ imprisonment. The maximum penalty law for conspiracy to commit money laundering is 20 years’ imprisonment. The maximum penalty law for theft of public money is 10 years’ imprisonment. These charges may also carry a fine and a term of supervised release following 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.
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Couple Indicted and Arrested for Pandemic Unemployment Assistance Fraud and Money LaunderingRead the Press Release
SAN JUAN, P.R. – On March 23, 2022, the Federal Grand Jury in the District of Puerto Rico returned an indictment charging Fernando Gallardo-Álvarez and his consensual partner Olga Rivera-Dávila with a conspiracy to commit mail, wire, and bank fraud, aggravated identity theft, and money laundering violations related to fraudulently obtained funds from the Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PUA) Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The case was investigated by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the United States Department of Labor Office of Inspector General (USDOL-OIG), U.S. Postal Inspector Service, Social Security Administration Office of Inspector General (SSA-OIG), the Puerto Rico Department of Labor (PRDL), and the Puerto Rico Police Bureau (PRPB).
According to the indictment, Fernando Gallardo-Álvarez and Olga Rivera-Dávila devised a conspiracy and scheme to defraud the United States and Puerto Rico’s state-federal Unemployment Insurance programs and financial institutions to obtain money for personal gain by making materially false and fraudulent representations to obtain and deposit UI/PUA funds. The defendants used the social security numbers and names of others to fraudulently obtain UI/PUA funds and then proceeded to alter the fraudulently obtained checks to list the defendant’s own names and personal identifying information. These falsified checks were then deposited into multiple accounts under the defendants’ control. The defendants also concealed the proceeds of the fraud scheme and structured subsequent financial transactions.
In a separate indictment, Fernando Gallardo-Álvarez is charged with fraudulently submitting false immigration documentation, mail fraud, misuse of social security numbers, and aggravated identity theft.
From approximately 2017 through August 2021, defendant Gallardo-Álvarez unlawfully enriched himself and obtained money from individuals, by preparing and filing Violence Against Woman Act (VAWA) petitions with the United States Citizenship and Immigration Services (USCIS) containing false information using Form I-360 and accompanying forms for work authorization and fee waivers. Form I-360 is used by battered spouses, children, and parents to file an immigrant visa petition under the Immigration and Nationality Act (INA), as amended by the VAWA.
According to the indictment, Gallardo-Álvarez made false representations to non-citizens that he was an attorney and collected thousands of dollars for legal services to assist them in resolving their immigration status. After collecting payment, Gallardo-Álvarez would file VAWA petitions containing false and incomplete information without the petitioners’ knowledge and consent. Gallardo-Álvarez knew the petitions he submitted to the USCIS contained false information and that he could not provide the needed documentation for the USCIS to adjudicate the petitions filed.
When USCIS did not receive enough information to fully adjudicate a VAWA petition utilizing Form I-360 submitted by the defendant, USCIS would ask Gallardo-Álvarez, for more information before ultimately denying the VAWA petition. While the VAWA petition was pending, USCIS would make a preliminary determination regarding eligibility for an Employment Authorization Document (EAD card), i.e., work authorization.
The EAD cards obtained by Gallardo-Álvarez for his clients were only valid for one year and many petitioners returned to him before the year was over to refile their petitions. Gallardo-Álvarez would charge these petitioners thousands of U.S. dollars to submit Form I-360s and associated immigration applications.
USCIS records suggest that Gallardo-Álvarez has filed at least 136 fraudulent I-360 VAWA applications for over 100 petitioners within the last four years.
Assistant U.S. Attorneys (AUSA) Victor Acevedo and Manuel Muñiz Lorenzi are in charge of the prosecution of the PUA fraud case. If convicted, the defendants are facing up to 30 years in prison for bank fraud, 20 years for mail and wire fraud, and a mandatory consecutive term of two years in prison for aggravated identity theft.
AUSAs Daynelle Álvarez-Lora and Daniel Olinghouse are in charge of the prosecution of the immigration fraud case. Gallardo-Álvarez is also facing up to 20 years in prison for mail fraud, up to 10 years for misuse of visa, up to five years for misuse of Social Security number, and a mandatory consecutive two-year term of prison for aggravated identity theft.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Connecticut Man Admits Role in a Murder for HireRead the Press Release
NEWARK, N.J. – A Connecticut man today admitted his role in a murder for hire scheme in which a New Jersey-based political consultant paid him and another man to kill a longtime associate, U.S. Attorney Philip R. Sellinger announced.
George Bratsenis, 73, of Monroe, Connecticut, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Bratsenis’ conspirators – Sean Caddle and Bomani Africa – previously pleaded guilty before Judge Vazquez to their roles in the murder scheme.
“Eight years ago, these three individuals – Caddle, Bratsenis, and Africa – conspired to brutally murder the victim,” U.S. Attorney Sellinger said. “At Caddle’s direction, Bratsenis and Africa stabbed the victim to death in the victim’s apartment, and then set it ablaze. These guilty pleas bring a measure of justice to the victim’s memory and for his family. I commend the efforts of the FBI, the Hudson County Prosecutor’s Office, and my Office for their determination over many years to bring this matter to resolution.”
“This defendant conspired in the ultimate crime – murder for money,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “Those who devalue life – whether out of greed or animus – need to know that the FBI is dedicated to keeping our citizens safe, and nothing will stop us from accomplishing that mission. When you break the law, you will be brought to justice no matter how long it takes.”
According to documents filed in this case and statements made in court:
In April of 2014, Caddle solicited Bratsenis to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis recruited Africa, a longtime accomplice from Philadelphia, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.
On May 22, 2014, Bratsenis and Africa traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Bratsenis and Africa stabbed the victim to death and then set fire to the victim’s apartment. After Caddle learned that the victim had been murdered, the following day, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.
Bratsenis faces a maximum potential penalty of life imprisonment and a $250,000 fine. Sentencing is scheduled for Aug. 2, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office for its assistance.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr. and Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit.
Congressman Jeff Fortenberry Found Guilty of Concealing Facts and Lying to Investigators Probing Illegal Campaign ContributionsRead the Press Release
LOS ANGELES – U.S. Representative Jeff Fortenberry, who represents Nebraska’s 1st Congressional District, was found guilty by a federal jury this evening of concealing information and making false statements to federal authorities who were investigating illegal contributions made by a foreign national to the congressman’s 2016 re-election campaign.
Fortenberry, 61, of Lincoln, Nebraska, who has served in Congress since 2005, was found guilty of one count of scheming to falsify and conceal material facts and two counts of making false statements to federal investigators.
United States District Judge Stanley Blumenfeld Jr. scheduled a June 28 sentencing hearing. Each of the three felony charges carry a statutory maximum penalty of five years in federal prison.
“After learning of illegal contributions to his campaign, the congressman repeatedly chose to conceal the violations of federal law to protect his job, his reputation and his close associates,” said United States Attorney Tracy L. Wilkison. “The lies in this case threatened the integrity of the American electoral system and were designed to prevent investigators from learning the true source of campaign funds.”
“Today’s conviction highlights the FBI’s commitment to holding elected officials accountable,” said Kristi Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The verdict emphasizes the importance of being truthful to law enforcement and demonstrates the government’s dedication to keeping the nation’s interests free from foreign influence through illegal campaign contributions.”
“Jeff Fortenberry lied to federal agents in order to cover up illegal contributions to his re-election campaign,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “The guilty verdict today shows that no one is above the law, and IRS-CI and our law enforcement partners will continue to hold our public servants accountable.”
According to evidence presented during a seven-day trial, Fortenberry lied to and misled authorities during two interviews conducted by federal authorities who were looking into illegal contributions to Fortenberry’s re-election campaign made by a foreign billionaire in early 2016. Gilbert Chagoury, a foreign national prohibited by federal law from contributing to any U.S. elections, donated $30,000 of his money through “straw donors” who attended a Fortenberry campaign fundraiser held in Los Angeles.
It is illegal for foreign nationals to make contributions to a federal campaign. It also is illegal for the true source of campaign contributions to be disguised by funneling the money through third-party conduits.
Chagoury entered into a deferred prosecution agreement with the United States Attorney’s Office in 2019 in which he admitted providing approximately $180,000 that was used to make illegal contributions to four different political candidates in U.S. elections. Chagoury paid a $1.8 million fine.
The co-host of the Fortenberry 2016 fundraiser, who is referred to in court papers as “Individual H,” began cooperating with federal authorities in September 2016 and informed special agents with the FBI and IRS Criminal Investigation about the illegal contributions. In response, investigators began looking into whether the Fortenberry campaign received illegal conduit contributions, whether Fortenberry knew about illegal contributions – both foreign contributions and conduit contributions – at the 2016 fundraiser, whether Fortenberry knew about illegal foreign contributions from Chagoury, and whether Fortenberry had any communications with Chagoury in relation to the illegal contributions made at the 2016 fundraiser.
In the spring of 2018, Fortenberry contacted Individual H about hosting another fundraiser. In a June 2018 call, Individual H told the congressman on multiple occasions that a close associate of Chagoury and political ally of Fortenberry – Toufic Joseph Baaklini, who also entered into a deferred prosecution agreement with prosecutors – had provided him with $30,000 cash to route to Fortenberry’s campaign at the 2016 fundraiser. Individual H told Fortenberry that the money – which was distributed to other individuals at the fundraiser so the donations could be made under their names and avoid individual donor limits – “probably did come from Gilbert Chagoury.”
Despite learning of the illegal campaign contributions, Fortenberry did not file an amended report with the Federal Elections Commission.
Instead, after learning this information, Fortenberry made false and misleading statements during a March 23, 2019, interview with investigators who specifically told him it was a crime to lie to the federal government. Fortenberry falsely told investigators that he was not aware of Baaklini ever being involved in illegal campaign contributions, that the individuals who made contributions at the 2016 fundraiser were all publicly disclosed, and that he was not aware of any contributions to his campaign from a foreign national.
At a second interview on July 18, 2019, with federal investigators and prosecutors, Fortenberry made additional false statements, including denying he was aware of any illicit donations made during the 2016 fundraiser, denying that Individual H had told him Baaklini had provided the $30,000 cash at the 2016 fundraiser, and stating that he would have been “horrified” to learn about the illegal conduit contributions.
During this second interview, Fortenberry also misleadingly stated he ended the June 2018 call with Individual H after that person made a “concerning comment,” when in fact Fortenberry continued to ask Individual H to host another fundraiser for his campaign, according to court documents.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Susan S. Har and J. Jamari Buxton, also of the Public Corruption and Civil Rights Section, are prosecuting this case.
Clearbrook Treatment Centers and Andrew Brown’s Drug Store Agree to Pay the United States Civil Penalties for Violations of the Controlled Substances ActRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Clearbrook Treatment Centers, located in Laurel Run, Pennsylvania, and Andrew Brown’s Drug Store, Inc., located in Scranton, Pennsylvania, have agreed to pay the United States civil penalties for their alleged failures to comply with dispensing, distribution, and recordkeeping requirements of the Controlled Substances Act. Clearbrook Treatment Centers will pay $300,000, and Andrew Brown’s Drug Store, Inc. will pay $250,000 in civil penalties.
The Controlled Substances Act, 21 U.S.C. sections 801 et seq. (CSA), was passed to combat illegal distribution and abuse of controlled substances, including prescription medications. The CSA’s registration, dispensing, distribution, and recordkeeping requirements are designed to prevent the diversion of controlled substances for illegal purposes. The CSA is enforced by the Drug Enforcement Administration’s Diversion Control Division, whose mission is to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs.
The CSA regulates how medical facilities can stock and dispense, and how pharmacies can dispense and distribute, controlled substances. The CSA also requires the maintenance of complete and accurate records of each substance manufactured, received, sold, delivered, dispensed, or otherwise disposed of. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances. The CSA provides for civil monetary penalties for violation of these requirements.
According to Unites States Attorney John C. Gurganus, between December 2016 and April 2021, Andrew Brown’s Drug Store, Inc. dispensed prescriptions or made distributions of controlled substances to Clearbrook Treatment Centers in violation of the CSA. During that same time, Clearbrook Treatment Centers received distributions from Andrew Brown’s Drug Store, Inc. and maintained a general stock of controlled substances for dispensing without being properly registered with the DEA. Both Andrew Brown’s Drug Store, Inc. and Clearbrook Treatment Centers also allegedly failed to keep complete timely and accurate records of their respective distribution and dispensing of those controlled substances.
This settlement addresses the independent obligation of Clearbrook Treatment Centers and Andrew Brown’s Drug Store, Inc. to ensure they have adequate systems in place to prevent improper distribution, maintenance of a general stock, or dispensing of controlled substances, as required by 21 U.S.C. §§ 822, 829, 842, and associated regulations.
“Both Clearbrook Treatment Centers and Andrew Brown’s Drug Store, Inc. have fully cooperated with investigators and are working to enhance their internal compliance with the CSA,” said United States Attorney John C. Gurganus. “Fortunately, there are no allegations that any controlled substances were diverted for illegitimate use, and both companies are taking their responsibilities seriously and being proactive to strengthen their systems to protect the proper dispensing of drugs under their control from diversion.”
“Pharmacies and rehabilitation facilities such as Andrew Brown’s Drug Store and Clearbrook are businesses that are integral to the health and overall well-being of our communities. As such, they are also entrusted to properly distribute and keep track of the controlled substances they maintain,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Civil penalties such as these help to insure adherence to the requirements of the Controlled Substances Act.”
This Settlement Agreement is neither an admission of liability by Clearbrook Treatment Centers or Andrew Brown’s Drug Store, Inc., nor is it a concession by the United States that its claims are not well founded.
The investigation was handled by Assistant United States Attorneys Richard D. Euliss, Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office, with the assistance of the DEA Philadelphia Field Division.
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Clarksburg man sentenced for carjacking and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher M. Vickers, of Clarksburg, West Virginia, was sentenced today to 104 months for carjacking and firearms charges, United States Attorney William Ihlenfeld announced.
Vickers, 32, pleaded guilty in June 2021 to one count of “Carjacking” and one count of “Use of Firearm During and in Relation to a Crime of Violence.”
On June 3, 2020, Vickers drove to a residence in Shinnston, West Virginia to take a motorcycle. Vickers admitted to grabbing a woman by her hair and holding a gun to her head, demanding the location of the motorcycle. Vickers admitted to attempting to take the motorcycle from the property.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Shinnston Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Chicopee Businessman Sentenced in Cocaine and Heroin Conspiracy Sourced from MexicoRead the Press Release
BOSTON – A Chicopee businessman and the former owner and operator of TWC Auto Body in Holyoke was sentenced yesterday in federal court in Springfield for his role in a cocaine and heroin conspiracy.
Jamil Roman, 44, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven months in prison and three years of supervised release, including a three-month period of home confinement. The government recommended a sentence of 46 months in prison and five years of supervised release. On Nov. 23, 2021, Roman pleaded guilty to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine.
On several occasions from January 2014 through March 2014, Roman acted as a trusted advisor to co-conspirator Javier Gonzalez – a large-scale drug dealer responsible for distributing vast amounts of drugs in Western Massachusetts. Roman, who owned TWC Auto Body in Holyoke, conspired with Gonzalez to collect a debt owed for four kilograms of cocaine, which was part of a larger load that Gonzalez obtained from a Mexican supply source. Specifically, Roman advised others on how to go about collecting drug debts and, in doing so, recalled his past experiences in selling large amounts of drugs.
In March 2014, Roman and Gonzalez conspired with others to obtain large quantities of heroin and cocaine from Texas, transport the drugs to Holyoke and distribute them in Western Massachusetts. In an attempt to conceal the cash payment and anticipated drugs, Roman helped to prepare a hidden compartment, which was loaded into the carrier of a tractor trailer that Gonzalez drove to Texas for the exchange. On March 25, 2014, Gonzalez was intercepted by law enforcement while enroute to Texas. Approximately $1.17 million in cash was seized from the trailer’s hidden compartment, as well as 14 kilograms of heroin and 42 kilograms of cocaine awaiting pickup by Gonzalez in Texas. In addition, more than $430,000 in drug proceeds was seized from Roman’s residence.
On Oct. 4, 2021, Gonzalez was sentenced by Judge Mastroianni to 30 months in prison and two years of supervised release. Gonzalez was also ordered to pay a fine of $20,000.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Office prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Centralia Man Sentenced to 78 Months for Illegal Possession of a FirearmRead the Press Release
EAST ST. LOUIS, Ill. – Chris Jamison, 19, of Centralia, Illinois, was sentenced today in federal
court to 78 months in prison for Illegal Possession of a Firearm by a Felon. Upon his release,
Jamison will be supervised by United States Probation for a period of three years. Additionally,
Jamison must pay a $1000 fine and a $100 special assessment.
According to court documents, Jamison possessed a Smith and Wesson, 9mm pistol while
on probation for Aggravated Discharge of a Firearm at an Occupied Vehicle through Marion County
Circuit Court.The case was investigated by the FBI - Springfield Division Safe Streets Task Force and assisted
by the Centralia Police Department.Cedar Rapids Man Receives Prison Term for Escape from Custody and Contempt of CourtRead the Press Release
A man who escaped from the Waterloo Residential Correctional Facility and later failed to appear in federal court pursuant to a subpoena was sentenced on March 22, 2022, to more than three years in federal prison.
Eugene Davis, age 43, from Cedar Rapids, Iowa, received the prison term after a September 28, 2021 guilty plea to an April 23, 2021 escape from federal custody at the Residential Correctional Center in Waterloo and for contempt of court by failing to appear in federal court on April 26, 2021, pursuant to a trial subpoena. Davis also admitted he violated terms of his supervised released for a 2009 federal firearm offense, and the terms of his federal probation imposed for illegally having a cellular telephone while in a federal prison in 2019.
In a plea agreement, Davis admitted that he was in the Waterloo Residential Correctional Center in Waterloo, Iowa, on April 23, 2021, as a condition of his term of supervised release in a 2009 federal firearm case. On April 23, 2021, Davis left the facility to go to work and never returned. Davis was later arrested in Las Vegas, Nevada. Prior to Davis’s escape, he was served with a subpoena that required him to appear in federal court in Cedar Rapids on April 26, 2021. Davis never appeared in court as required.
Davis was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. For the new crimes and his violations of supervision, Davis was sentenced to 45 months’ imprisonment, and he must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Davis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the United States Marshal’s Service. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR-21-0041 (contempt of court), CR-21-2042 (escape), CR-09-0052 (possession of a firearm by a felon), and CR-21-0003 (possession of a cellular phone in a federal prison).
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Carrick Meth Dealer Gets 10-Year Prison SentenceRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 120 months of imprisonment to be followed by five years of supervised release on his conviction of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy K. Chung announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Doug Austen, age 41, of the Carrick section of the City of Pittsburgh.
According to information presented to the court, on June 9, 2021, Austen sold another individual 84 grams of pure methamphetamine.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Homeland Security Investigations, Internal Revenue Services, Pittsburgh Bureau of Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department. United States Attorney Chung commended all of the agencies for the investigation leading to the successful prosecution of Austen.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Carlisle Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Craig Alan Hare, age 51, of Carlisle, Pennsylvania, was indicted on March 23, 2022, by a federal grand jury on firearms charges.
According to United States Attorney John C. Gurganus, the indictment alleges that on January 14, 2022, in Carlisle, Pennsylvania, Hare unlawfully possessed a Sig Sauer M400 .223 AR 15 Rifle, and a Smith & Wesson 9mm Model, with ammunition and magazines for both firearms while having a previous conviction for a crime punishable by imprisonment for a term exceeding one year.
The case was investigated by the Bureau of Alcohol Tobacco and Firearms (ATF), and the Pennsylvania State Police. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
This case was 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.
If convicted, the maximum penalty under federal law for this offense is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Career Offender Sentenced to nearly 18 Years in Prison for Drug Trafficking ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a career offender to nearly 18 years in prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Assistant Special Agent in Charge Towanda Thorne-James.
U.S. District Court Judge Liles C. Burke sentenced Christopher Lane, 47, of Talladega, for conspiracy to distribute more than 500 grams of methamphetamine. Lane pleaded guilty in September 2021. Lane is a career offender based on prior felony convictions. The sentence pronounced today reflected his status as a Career Offender.
In August 2019, a federal grand jury charged Lane and others in a multi-count indictment with participating in a drug trafficking organization that transported heroin, cocaine, methamphetamine, and fentanyl from Mexico to Talladega, Alabama for distribution between May 2017 and July 2019.
DEA investigated the case along with the Talladega County Drug Task Force. Assistant U.S. Attorneys Blake Milner and Austin Shutt prosecuted the case.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
Canadian National Found Guilty of Leading Drug Trafficking Organization that Purchased Hundreds of Pounds of NarcoticsRead the Press Release
LOS ANGELES – A Canadian national was found guilty by a jury today of federal criminal charges for leading a drug-trafficking organization that intended to export hundreds of pounds of cocaine and heroin from Southern California into Canada and imported MDMA (Ecstasy) into the United States using big-rig trucks and fully encrypted telephones to achieve their aims.
Vincent Yen Tek Chiu, 43, a.k.a. “El Chino,” “Tiger,” “TigerOfMexico,” “TigerOfSweden,” of Vancouver, Canada, was found guilty of five felonies: one count conspiracy to distribute controlled substances, one count of conspiracy to export controlled substances, one count of distribution of cocaine, one count of distribution of heroin, and one count of distribution of MDMA.
According to evidence presented at his seven-day trial, Chiu and other members of the drug trafficking organization obtained multi-kilogram quantities of cocaine, and less frequently, heroin from Los Angeles and passed the drugs to couriers who intended to transport them to Canada for further distribution. Big-rig trucks were used to try and export some of the cocaine into Canada.
Chiu arranged the purchase of bulk quantities of cocaine in the United States for importation into Canada for resale in exchange for cash or bulk quantities of MDMA. Chiu also arranged for the transportation of MDMA from Canada into the United States in exchange for cocaine. Chiu and his co-conspirators used modified cellular devices with military-grade end-to-end encryption to talk to each other about the drug buys and transportation of narcotics.
At trial, prosecutors presented evidence regarding four drug loads Chiu purchased, totaling approximately 90 kilograms (198.4 pounds) of cocaine and 8 kilograms (17.6 pounds) of heroin – with an estimated wholesale value of $4.5 million – that he intended to export to Canada.
Federal agents intercepted several of the drug deliveries in 2018 and 2019. Law enforcement seized more than $800,000 in Canadian currency during this investigation.
United States District Judge John A. Kronstadt has scheduled an August 4 sentencing hearing, at which time Chiu will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment. Chiu has been in federal custody since his arrest in July 2019.
The FBI, Homeland Security Investigations, and the Royal Canadian Mounted Police investigated this matter. Critical support was provided by the U.S. Drug Enforcement Administration, the California Highway Patrol, and the West Covina Police Department. This investigation is part of the Justice Department's Organized Crime Drug Enforcement Task Force (OCDETF).
Assistant United States Attorneys Brittney M. Harris and MiRi Song of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
California Man Going to Prison for Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Jorge Alvarez, 28, of Los Angeles, CA, who was convicted of receipt of child pornography, was sentenced to serve 10 years in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Aaron J. Mango, Douglas A. C. Penrose, and Caitlin M. Higgins, who handled the case, stated that between June 18 and July 23, 2018, Alvarez engaged in sexually explicit conversations via Instagram and text message with a 14-year-old female (Minor Victim) who told Alvarez that she was 14 years-old. During those conversations, Alvarez sent the Minor Victim naked pictures of himself and discussed having sexual contact with the Minor Victim. The Minor Victim sent Alvarez photographs of herself at his request.
The sentencing is the result of an investigation by the Depew Police Department, under the direction of Chief Jerome Miller; the Cheektowaga Police Department, under the direction of Chief Brian Gould; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Broward County Women Sentenced for Using Patient Information in Real Estate SchemeRead the Press Release
Miami, Florida – Samantha Johnson, 57, of Pompano Beach, and her wife, Sandra Shea, 56, of Cooper City, were sentenced on Tuesday by the Honorable United States District Court Judge Roy K. Altman to 30 and 24 months’ imprisonment, respectively. Both defendants must serve a term of supervised release of 3 years and pay a fine of $10,000. A restitution hearing is set for June 15, 2022.
In January, Johnson and Shea pleaded guilty to one count of conspiring to defraud the United States. Both defendants admitted that they conspired to obtain and utilize patient information from a large local healthcare provider in Hollywood, Florida, where Shea was employed. According to the factual proffer, Shea improperly accessed 22 patient files from the healthcare provider. In court documents, the defendants admitted that they intended to use the personal information of these patients to acquire distressed, abandoned, foreclosed and probated real property.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Joseph W. Cronin, Inspector in Charge, Miami Division, U.S. Postal Inspection Service (USPIS), and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
The case against Johnson and Shea is the result of an investigation by the U.S. Postal Inspection Service and the Broward County Sheriff’s Office, with assistance from the Broward County Property Appraisers Office.
This case was prosecuted by Assistant United States Attorneys Thomas P. Lanigan and Matthew J. Feeley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60184.
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Bronx Man Charged with Shooting at Off-Duty NYPD OfficerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the filing of a criminal complaint today charging JAMAR BAKER with illegally possessing a firearm and ammunition. BAKER, who is on federal supervised release for a prior conviction, was arrested yesterday and was presented today before the Honorable Barbara C. Moses.
U.S. Attorney Damian Williams said: “For no apparent reason, Jamar Baker allegedly decided to pick a fight with an innocent driver heading to work. Little did he know, the victim we allege he harassed and shot at is an NYPD officer who was on his way to the precinct to begin his shift. The random attack and senseless criminal behavior not only put the officer in danger, but we also allege Mr. Baker hid the weapon inside a child’s toy, and put it back in the child’s crib. Mr. Baker will now face federal justice for his reckless actions.”
NYPD Commissioner Keechant L. Sewell said: “Gun violence impacts all New Yorkers – including NYPD police officers, both on and off duty. The NYPD and our law enforcement partners at the U.S. Attorney’s Office for the Southern District of New York vow to use every resource available to ensure that criminals are always held fully accountable for their reckless actions.”
As alleged in the Complaint filed in Manhattan federal court[1]:
Shortly after 6:30 a.m. on March 23, 2022, an off-duty NYPD Officer (“Victim-1”) was driving his personal vehicle to his NYPD precinct in Manhattan to begin his shift. While crossing from the Bronx into Manhattan on the Macombs Dam Bridge, BAKER’s vehicle struck Victim‑1’s vehicle multiple times. BAKER then pulled his vehicle alongside Victim-1’s vehicle, spit towards Victim-1, and shouted a slur at Victim-1. As the vehicles continued driving, BAKER fired a gun at Victim-1, striking the front bumper and tire of Victim‑1’s vehicle. Officers later recovered two .380-caliber shell casings from the road where the vehicles had traveled.
Law enforcement identified BAKER’s vehicle using license plate reader photographs. When officers searched an apartment to which BAKER had gone immediately after the shooting, officers found a .380-caliber pistol concealed inside a teddy bear in a child’s crib. BAKER is currently on federal supervised release in connection with a 2014 robbery conspiracy conviction, for which he served approximately five years in prison.
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BAKER, 26, of Bronx, New York, was charged with one count of possessing a firearm after having been convicted of a felony, and one count of possessing ammunition after having been convicted of a felony. Each count carries a maximum sentence of ten years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD’s 32nd Precinct Detective Unit, the NYPD’s Firearm Suppression Section, and the Special Agents of the United States Attorney’s Office.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Patrick R. Moroney is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Bridgeport Gang Member Involved in Courthouse Shootings Sentenced to 15 Years in Federal PrisonRead the Press Release
DIOMIE BLACKWELL, also known as “Yamo,” 25, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 180 months of imprisonment, followed by three years of supervised release, for participating in gang-related shootings, including a shooting in front of a state courthouse in Bridgeport in January 2020.
Today’s announcement was made by Leonard C Boyle, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Blackwell has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. From approximately 2017 until August 2020, GHB/Hotz members were aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
The investigation revealed that on February 7, 2018, Blackwell and an associate shot and attempted to kill “MJ,” a member or associate of the 150 gang in a residential neighborhood. On January 27, 2020, Blackwell and others attempted to kill members and associates of the East End gang in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Blackwell also appears in YouTube videos and in social media posts, where firearms are present, promoting the gang. In addition, he engaged in gang-related drug trafficking activities.
Blackwell has been detained since August 6, 2020. On October 4, 2021, he pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Stratford and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Stephanie T. Levick, Rahul Kale, Karen L. Peck and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boyd Man Sentenced to 8 Years for Trafficking MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Saige T. Marten, 29, Boyd, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 8 years in federal prison for distributing 50 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release. Marten pleaded guilty to this charge on January 11, 2022.
On June 7, 2021, West Central Drug Task Force officers purchased 55.9 grams of methamphetamine from Marten and co-defendant Samantha Fristoe through a confidential informant in Clark County, Wisconsin.
A week later, on June 14, 2021, Marten engaged in a high-speed chase on a motorcycle after an officer attempted to pull him over for speeding. Marten crashed and fled on foot, leaving behind a bag containing 162 grams of methamphetamine and his driver’s license. When later interviewed by officers, Marten admitted to selling large quantities of methamphetamine for profit.
At the time of these events, Marten was on state supervision for methamphetamine trafficking. His supervision was revoked and he is currently serving a sentence of just over a year. Judge Conley ordered this federal sentence to run concurrently with the remainder of the state prison sentence.
At sentencing, Judge Conley highlighted Marten’s criminal history which included multiple prior drug trafficking convictions.
Co-defendant Samantha Fristoe pleaded guilty on February 4 to distributing 50 grams or more of methamphetamine and is scheduled for a sentencing hearing before Judge Conley on May 3, 2022. Fristoe faces a mandatory minimum term of imprisonment of five years and a maximum term of 40 years.
The charge against Marten was the result of an investigation conducted by the West Central Drug Trask Force; Altoona and Eau Claire Police Departments; Chippewa, Clark, and Rusk County Sheriffs’ Offices; and the Drug Enforcement Administration. The Eau Claire County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Boston Man Pleads Guilty to Trafficking Wholesale Quantities of CocaineRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to trafficking cocaine as part of a larger drug trafficking conspiracy.
Russell Hankerson, 40 of Boston, pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 16, 2022.
Hankerson was charged along with 24 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents. The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
Hankerson was identified as a drug customer and distributor who purchased wholesale quantities of cocaine for subsequent distribution from co-defendant Hassan Monroe. Surveillance and intercepted communications revealed Hankerson coordinated drug deals with Monroe and engaged in drug trafficking activity.
Hankerson is the 10th defendant to plead guilty in the case. Monroe pleaded guilty and is scheduled for sentencing on June 22, 2022. The remaining defendants have pleaded not guilty and are pending trial. One defendant, Derek Hart, remains at large.
The charge of conspiracy to distribute and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Pleads Guilty to Armed Robbery of Brockton Cell Phone StoreRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston in connection with the January 2019 robbery of a T-Mobile store in Brockton and shooting at police officers as he and his co-defendants fled the scene.
Stephan Rosser-Stewart, 31, pleaded guilty to interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being a felon in possession of firearms and ammunition. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 20, 2022. Rosser-Stewart was indicted along with co-defendants Darius Carter and Diovanni Carter in March 2019. The three were subsequently charged in a superseding indictment in September 2019. A fourth man, Dennis Martin was charged separately.
On the evening of Jan. 26, 2019, Rosser-Stewart, Darius Carter and Dennis Martin entered a T-Mobile store in Brockton. The men were carrying semi-automatic firearms, which they pointed at the store manager as they demanded cash and electronics. Darius Carter struck the store manager in the head with a firearm. The men stole approximately $25,000 in cash and electronics and then fled in a vehicle driven by Diovanni Carter.
Police responded, located the getaway vehicle and a high-speed chase ensued, reaching over 70 mph in residential neighborhoods. During the chase, Diovanni Carter ordered the other men in the car to fire at pursuing police cruisers. Rosser-Stewart and Darius Carter fired a total of eight rounds at the pursuing police cruisers. Law enforcement apprehended Rosser-Stewart, Darius Carter and Dennis Martin and recovered the stolen phones, cash and the three firearms used in robbery. Diovanni Carter fled the scene when the car was stopped and was apprehended in March 2019. Rosser-Stewart, Darius Carter, Diovanni Carter, and Dennis Martin, were each prohibited from possessing firearms and ammunition due to prior criminal convictions. Rosser-Stewart was previously convicted of armed robbery in Suffolk Superior Court and had been recently released from prison prior to robbing the T-Mobile store in January 2019.
In March 2021, Darius Carter pleaded guilty and was sentenced to 14 years in prison and three years of supervised release after pleading guilty to his role in the robbery. In March 2020, Diovanni Carter was convicted by a federal jury and sentenced to over 22 years in prison. In August 2019, Martin pleaded guilty and is scheduled to be sentenced in June 2022.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of a firearm during the commission of a crime of violence provides for a sentence of up to life in prison, and a mandatory consecutive term of imprisonment ranging from five years for the possession of a firearm, seven years for the brandishing of a firearm, and up to 10 years for the discharge of a firearm. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal of the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; Brockton Police Acting Chief Steve Williamson made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
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.
Avery Co. Man Is Sentenced to Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
ASHEVILLE, N.C. – Elenilson Ceron, 25, of Newland, N.C., was sentenced today to 26 months in prison for using stolen identification documents to commit bank fraud and aggravated identity theft, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Ceron to serve two years under court supervision after he is released from prison.
U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.
According to filed documents and today’s court proceedings, in November 2019, Ceron and his co-defendant, Jennifer Pardo, engaged in a scheme to defraud financial institutions by securing loans in the names of identity theft victims. Ceron and Pardo obtained the victims’ personal identifying information (PII) through personal checks, credit cards, medical documents, and other sensitive information the defendants stole from the victims’ mailboxes, homes, and vehicles, or the home computers of friends and family members. Using the stolen PII, the pair opened bank accounts and credit accounts and took out personal loans in the victims’ names.
In this manner, court records show that the defendants obtained at least $6,500 in unlawful proceeds.
Ceron and Pardo pleaded guilty to bank fraud and aggravated identity theft. Pardo was previously sentenced to 30 months in prison for her role in the scheme.
In making today’s announcement, U.S. Attorney King thanked the USPIS for their investigation.
The U.S. Attorney’s Office in Asheville prosecuted the case.
Assassin for Mexican Cartel Sentenced to Life in PrisonRead the Press Release
EL PASO – A Mexican national was sentenced today to life in prison and ordered to pay a $100,000 fine for his role in the Sinaloa Cartel’s operations.
According to court documents, Mario Iglesias-Villegas, aka “Dos,” “El 2,” “Delta,” “Parka,” “Grim Reaper,” 37, of Villa Ahumada, became a member of the Sinaloa Cartel under Joaquin “Chapo” Guzman-Loera in early 2008. Iglesias was the head of a group of Sinaloa Cartel sicarios (assassins) until his arrest in 2012. He was a significant participant in the death of thousands of people in Ciudad Juarez from 2008 to 2011. Among those, Iglesias was convicted for his participation in the kidnapping and eventual murder of Horizon City resident, Sergio Saucedo, and in the kidnapping and murders of Rafael Morales-Valencia, Jaime Morales-Valencia, and Guadalupe Morales-Arreola, who were kidnapped outside a church in Ciudad Juarez shortly after the wedding of Rafael Morales-Valencia. Iglesias’ acts of violence allowed the Sinaloa Cartel to control the Juarez drug corridor and successfully import cocaine and marijuana into the United States.
On October 22, 2021, a federal jury in El Paso convicted Iglesias of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization statute (RICO) for his role as a member of the Sinaloa Cartel; one count of conspiracy to possess cocaine and marijuana; one count of conspiracy to import cocaine and marijuana; one count of conspiracy to launder money; one count of conspiracy to possess firearms in furtherance of drug trafficking crimes; five counts of violent crimes in aid of racketeering activity; one count of conspiracy to kill in a foreign country; and one count of kidnapping.
“Today justice was finally served upon Mario Iglesias-Villegas,” said U.S. Attorney Ashley C. Hoff. “For decades, the Sinaloa Cartel has been responsible for unspeakable violence on both sides of the border and for the importation of massive amounts of illegal drugs into our communities in the United States. With the cooperation with our valued law enforcement partners, this Office will continue to be vigilant and aggressive in our prosecution efforts as we work together to dismantle dangerous criminal organizations.”
“With the sentencing of Mario Iglesias-Villegas, another significant member of the Sinaloa Cartel who was responsible for so much violence and misery in neighboring Ciudad Juarez more than a decade ago, has been brought to justice,” said Greg Millard, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “DEA and its law enforcement partners will continue to pursue the arrest, extradition, conviction and sentencing of violent drug traffickers who harm our communities, no matter how long it takes.”
“The sentencing of Mario Iglesias-Villegas is one more step towards ending violence perpetrated by criminal drug trafficking organizations such as the Sinaloa Cartel,” said FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office. “The FBI and our partners will endlessly pursue and prosecute cartel members and associates who attempt to control and intimidate their communities through violence. This sentencing is justice to all of those who have suffered as a result of Iglesias-Villegas' criminal actions as a member of the Sinaloa Cartel.”
“Unfortunately, illegal firearms and narco-traffickers go together like peanut butter and jelly. ATF and all of our partners are committed to breaking the long history of firearms-related violence that surrounds the dark world of the cartels and their impact on American Citizens,” said ATF Dallas Field Division Special Agent in Charge, Jeffrey C. Boshek II.
Iglesias’s co-defendant, Arturo Shows Urquidi, aka “Chous,” 51, of Juarez, was found guilty of one count of conspiracy to violate the RICO statute for his role as a member of the Sinaloa Cartel; one count of conspiracy to possess cocaine and marijuana; one count of conspiracy to import cocaine and marijuana; one count of conspiracy to launder money; and one count of conspiracy to possess firearms in furtherance of drug trafficking crimes. Shows was sentenced to life in prison on March 3, 2022.
The Sinaloa Cartel’s criminal activity in the Ciudad Juarez and El Paso area included the violence that occurred during the war between the Juarez Cartel and the Sinaloa Cartel, which led to the death of thousands of people in Ciudad Juarez and throughout the Mexican states of Chihuahua and Durango. The violence gave rise to Ciudad Juarez being named the “deadliest city in the world.”
This investigation resulted in the seizure of hundreds of kilograms of cocaine and thousands of pounds of marijuana in cities throughout the United States. Law Enforcement took possession of millions of dollars in drug proceeds that were destined to be returned to the Cartel in Mexico. Agents and officers also seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of Juarez and the local drug trafficking corridors.
The DEA, FBI and ATF, together with the Immigration and Customs Enforcement–Homeland Security Investigations, United States Border Patrol, Customs and Border Protection, United States Marshals Service, El Paso Police Department, El Paso Sheriff’s Office and the Texas Department of Public Safety, investigated this case.
Assistant U.S. Attorneys Antonio Franco, Kristal Wade, Kyle Myers and Michael Williams prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Arlington Doctor Sentenced to 12 Years in Pill Mill CaseRead the Press Release
An Arlington physician has been sentenced to 12 years in federal prison for fraud and drug crimes, announced U.S. Attorney for the Northern District of Texas Chad Meacham.
In July 2021, a federal jury convicted physician Clinton Battle, 69, of one count of conspiracy to distribute controlled substances and one count of distribution of a controlled substance. In a separate proceeding later that month, the defendant pleaded guilty to conspiracy to commit mail fraud. He was sentenced Thursday by U.S. District Judge Mark Pittman, who also ordered him to pay $376,368 in restitution.
According to evidence presented at trial, Dr. Battle routinely issued prescriptions for controlled substances – including hydrocodone, alprazolam, acetaminophen with codeine, tramadol, and phentermine – outside the usual course of professional practice and without a legitimate medical purpose. At times, he issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted. He also issued prescriptions for friends or family members with whom he had no physician-patient relationship.
At trial, one of Dr. Battle’s former employees testified that she, her husband, and Dr. Battle agreed that Dr. Battle would provide the employee’s husband with illegal controlled substance prescriptions in exchange for cocaine.
In addition to cocaine, the evidence also showed that Dr. Battle would receive money in the form of fees paid by “patients” of $200 for an initial visit and $80 for return visits in exchange for controlled substance prescriptions.
Dr. Battle also allowed his nurse practitioner, coconspirator Donna Green, to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, despite knowing that Ms. Green was not legally authorized to issue such prescriptions. (On the morning trial was set to begin, Ms. Green pled guilty to one count of acquiring a controlled substance through fraud.)
Throughout the course of the five-year conspiracy, Dr. Battle issued more than 50,000 controlled substance prescriptions, 17,000 of which were for the powerful opioid hydrocodone.
“Dealers of illegal drugs come in many forms. This is a case of the abuse of trust and position,” said DEA Special Agent in Charge Eduardo A. Chávez. “Dr. Battle and his co-conspirators used their authority to push pills into our neighborhoods disregarding the inherent harm they cause. DEA’s teamwork with our federal and local area law enforcement agencies make it possible to pursue any person distributing illegal drugs, no matter the disguise.”
Dr. Battle also defrauded worker’s compensation and health insurers by conspiring to submit claims for functional capacity evaluations (FCEs) that he claimed he himself administered over the course of several hours, according to his plea papers. In reality, his unlicensed assistants administered the evaluations, which took significantly less time than he claimed. In addition, Dr. Battle billed for physical therapy sessions that were conducted by unlicensed assistants or, at times, not conducted at all. He and his coconspirators also “upcoded” by billing for higher reimbursement levels than were authorized for the level of examination they performed.
The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service Office of Inspector General, IRS – Criminal Investigations, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Jay Weimer are prosecuting the case with the help of their appellate liaison, Assistant U.S. Attorney Leigha Simonton.
Allegan County Man Sentenced on $300,000 Elder Fraud SchemeRead the Press Release
James Black used lies and intimidation to scam an elderly victim into paying nearly $300,000 in fraudulent home repairs.
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that James Robert Black (a/k/a “Jim Gribble” and “Victor Valentine”) was sentenced to prison for his part in a scheme to defraud an elderly Holland, Michigan homeowner out of nearly $300,000.
Black, age 58, was charged in a conspiracy to commit wire fraud along with codefendant Tyler Harris. The indictment alleged that Black and Harris defrauded an elderly owner of a home in Holland of $298,000 through a fraudulent roof repair scheme. The homeowner hired Black, who went by the name “Jim Gribble,” to do a roof repair. After that, the defendants pressured the homeowner to pay almost $300,000 for a series of false problems associated with the project, including dangerous working conditions, employee injuries, threatened lawsuits and criminal tax issues. Conspiracy to commit wire fraud is a felony offense punishable by up to 20 years in prison.
Harris pled guilty and was sentenced on December 3, 2020. Black was a fugitive and could not be located until August 11, 2021, when federal investigators tracked him to Florida and arrested him there. Black pled guilty to the conspiracy charge on November 12, 2021.
On March 23, 2022, U.S. District Judge Janet Neff sentenced Black to prison for a term of 60 months and ordered restitution in the amount of $238,000. When she imposed the sentence, Judge Neff said Black deserved a harsh sentence because he had a long history of committing the same kind of frauds in the past.
U.S. Attorney Andrew Birge advised that “Grifters like Black will prey on anyone, but it is particularly galling to see someone victimize the elderly. Mr. Black deserves everything the judge ordered.”
The investigation of this case was done by the Department of Homeland Security. Prosecution was handled by Assistant U.S. Attorney Timothy VerHey.
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Addiction Treatment Facilities’ Medical Director Convicted in $112 Million Addiction Treatment Fraud SchemeRead the Press Release
The Medical Director of two South Florida addiction treatment facilities was convicted today after a 15-day trial of engaging in a scheme that fraudulently billed approximately $112 million for substance abuse services that were never provided or were medically unnecessary.
“Santeiro’s conviction demonstrates the unwavering commitment of the Department of Justice’s Sober Homes Initiative to protecting patients and prosecuting fraudulent substance abuse treatment facilities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Rather than ‘do no harm,’ Santeiro, driven by greed, used his medical license to do unconscionable harm to vulnerable patients struggling with addiction. The department will relentlessly pursue these cases to ensure patients get the care they deserve.”
According to court documents and evidence presented at trial, Jose Santeiro, 72, of Miami Lakes, Florida, a doctor, worked with others to unlawfully bill for approximately $112 million of addiction treatment services that were never rendered and/or were medically unnecessary at two addiction treatment facilities where Santeiro was the Medical Director. The facilities were Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program.
The evidence showed that Santeiro and others admitted patients for medically unnecessary detox services, the most expensive kind of treatment the facilities offered. Patient recruiters offered kickbacks to induce patients to attend the programs and then gave them illegal drugs to ensure admittance for detox at Compass Detox. Evidence at trial also showed that Santeiro submitted false and fraudulent claims for excessive, medically unnecessary urinalysis drug tests that were never used in treatment. Santeiro and others then authorized the readmission of a core group of patients who were shuffled between Compass Detox and WAR to fraudulently bill for as much as possible, even though the patients did not need the expensive treatment for which they were repeatedly admitted. Santeiro also prescribed Compass Detox patients with a so-called “Comfort Drink” to sedate them, ensure they stayed at the facility, and keep them coming back. The evidence further showed that Santeiro’s log-in was used, with his knowledge, by others to sign electronic medical files to make it appear as if Santeiro had provided treatment himself when he did not.
“Fraudulent billing schemes like this deprive vulnerable patients of needed medical care and divert valuable resources from America’s health care system,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “Today’s conviction is a clear warning to anyone engaged in health care fraud that the FBI, together with our partners, will aggressively pursue you and hold you accountable for your actions.”
Santeiro was convicted of conspiracy to commit health care fraud and wire fraud and eight counts of health care fraud. He faces up to 20 years in prison for the conspiracy count and up to 10 years in prison for each health care fraud count. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, Department of Health and Human Services, Office of Inspector General, and the Broward County Sherriff’s Office investigated the case.
Senior Litigation Counsel Jim Hayes of the National Rapid Response Strike Force and Trial Attorneys Jamie de Boer and Andrea Savdie of the Criminal Division’s Fraud Section are prosecuting the case.
The National Rapid Response Strike Force, Los Angeles Strike Force, and Miami Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Wednesday 23 March 2022
Woman Arriving at Henry E. Rohlsen Airport Sentenced for Attempting to Smuggling 6.6 Kilograms of MarijuanaRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Yvette Simeina, aged 41, was sentenced to two years of probation and a $1,000 fine for attempting to smuggle 6.6 kilograms of marijuana through the Henry E. Rohlsen Airport on St. Croix. Simeina pled guilty on November 22, 2021 to Possession with Intent to Distribute Marijuana, a felony offense.
According to court documents, on February 23, 2021, Simeina traveled from Miami, Florida and arrived at the Henry E. Rohlsen Airport. While conducting inspection of checked luggage, the CBP detected certain anomalies in Simeina’s luggage. Upon further inspection, CBP found 6.6 kilograms of marijuana hidden inside wooden boxes.
This case was investigated by Customs and Border Patrol, Department of Homeland Security.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Utica Man Pleads Guilty to Fentanyl Conspiracy and DistributionRead the Press Release
SYRACUSE, NEW YORK – Kymani Minott, aka “Bizz,” aka “K-Bizz,” age 19, of Utica, New York, pled guilty to conspiring to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, and distribution of mixture and substance containing fentanyl, announced United States Attorney Carla B. Freedman, Oneida County District Attorney Scott McNamara, New York State Police Superintendent Kevin P. Bruen, Timothy Foley, Acting Special Agent in Charge. U.S. Drug Enforcement Administration (DEA), New York Division; John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Mark Williams, Utica Police Department.
As part of his guilty plea, Minott admitted that beginning in March 2021, he agreed with others to distribute 40 grams or more of a mixture containing fentanyl to customers in the Utica, New York area. Minott also admitted that on June 17, 2021, he distributed approximately 5 grams of a fentanyl mixture in Utica.
At sentencing on July 14, 2022, Minott, faces a minimum term of 5 years and up to 40 years in prison, a post-incarceration term of at least 4 years and up to life of supervised release, and a maximum fine of $5,000,000.00. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by New York State Police-Special Investigations Unit (NYSP-SIU), investigators from the Oneida County District Attorney’s Office, members of the City of Utica Police Department, DEA, ATF, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
US Attorney’s Office Settles ADA Complaint Involving Area Ophthalmology PracticeRead the Press Release
Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan announced today that it has reached a settlement with Vitreoretinal Specialists, PLC, which is also known as Retina Associates of Michigan – an ophthalmology practice with three locations in eastern Michigan. The settlement resolves an allegation that it refused to allow a service animal to accompany an individual with a disability beyond its patient waiting area.
“Service animals are a critical support for many individuals with disabilities. People who depend on service animals to assist them deserve the same access to our community as individuals who do not, and that is particularly true for access to health care services,” said Dawn Ison, U.S. Attorney for the Eastern District of Michigan.
Under the settlement agreement, Vitreoretinal Specialists, PLC will adopt a non-discrimination policy that permits service animals to accompany individuals with disabilities into examination and treatment rooms, train its employees on the ADA, and post its non-discrimination policy in its facilities and on its website. Additionally, Vitreoretinal Specialists, PLC will pay damages to the affected patient.
The ADA prohibits discrimination against people with disabilities by public accommodations, such as the professional office of health care provider. Public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services, and facilities, which includes making reasonable modifications of their policies, practices, and procedures to permit people with disabilities to be accompanied by service animals.
The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of settlement agreement with Vitreoretinal Specialists, PLC, please visit https://www.justice.gov/usao-edmi/programs/civil-rights. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (313) 226-9151.
More information about the ADA is available at the Justice Department’s toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov.Two Plead Guilty in Nationwide Rideshare and Delivery Account Fraud SchemeRead the Press Release
BOSTON – Two Brazilian nationals pleaded guilty today in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Edvaldo Rocha Cabral, 42, of Lowell, Mass. and Julio Vieira Braga, 25, of Daly City, Calif., pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencings for both defendants on June 15, 2022.
In May 2021, Cabral and Braga were charged along with 17 co-defendants with conspiracy to commit wire fraud by using stolen identities and falsified documents to create fraudulent driver accounts for rent or sale to individuals who might not otherwise qualify to drive for the rideshare or delivery services.
According to the charging documents, the defendants allegedly used victims’ identifying information to apply for driver accounts with the rideshare and delivery companies – enabling them to pass the companies’ required background checks and create driver accounts in victims’ names. At times, it is alleged that the defendants edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts in order to circumvent facial recognition technology that the rideshare and delivery companies used as a security measure. The defendants allegedly obtained victims’ names, dates of birth, driver’s license information and or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. The defendants and co-conspirators also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services or while exchanging information with victims following vehicle accidents, some of which defendants or co-conspirators intentionally caused in order to obtain license information. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income that conspirators earned from the rideshare and delivery companies.
It is further alleged that the defendants used fraudulent driver accounts to exploit referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies.
In connection with the scheme, Cabral obtained driver’s licenses and Social Security numbers that he and his co-conspirators procured from the DarkNet and other sources. Cabral also admitted that he paid co-conspirators to alter driver’s license photos to display pictures of other individuals. He used these stolen identifiers to create numerous fraudulent accounts with the rideshare and delivery companies and supplied these identifiers to other co-conspirators who also created fraudulent accounts. Cabral advertised fraudulent accounts for sale or rent to Brazilian nationals living in the United States via Facebook as well as WhatsApp and Telegraph messaging apps. He managed these accounts and attempted to prevent them from being closed by the companies for fraud. Additionally, he also distributed a “bot” to use in connection with one of the companies’ apps, which enabled users to “cut the line” and claim higher value delivery orders. Between June 2019 and January 2021, Cabral received over $430,000 in rental payments from individuals driving under these accounts and payments from the companies generated with these accounts.
Braga paid co-conspirators and others to rent or purchase fraudulent accounts with the rideshare and delivery companies. He also obtained photographs of other individuals’ driver’s licenses while completing alcohol deliveries for one of the companies and used those photographs to attempt to create fraudulent accounts under the individuals’ names. Additionally, Braga permitted at least one co-conspirator to use his bank account to receive proceeds from renting or selling fraudulent driver accounts. Between June 2019 and December 2020, Braga received approximately $220,000 in payments from the companies generated with fraudulent accounts and rental payments for fraudulent accounts that were directed through his bank account.
Sixteen of the defendants have been arrested in connection with the conspiracy and three remain at large. Cabral and Braga are the third and fourth defendants to plead guilty in the case, respectively. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a sentence of at least two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments; U.S. Customs and Border Protection; U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two California Men Charged with Selling Drugs and Guns over the InternetRead the Press Release
NEWARK, N.J. – Two California men were arrested for conspiring to sell methamphetamine and fentanyl and to unlawfully transport numerous firearms via the internet, U.S. Attorney Philip R. Sellinger announced.
Angelo Chavez, 22, of Stockton, California, and Phillip Luevano, 21, of Manteca, California, were arrested on March 22, 2022, in California and charged by complaint with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, conspiracy to unlawfully transport firearms, and possession and transportation of unregistered firearms. The defendants are scheduled to appear today before U.S. Magistrate Judge Deborah Barnes in the Eastern District of California.
According to documents filed in this case and statements made in court:
From August 2020 and December 2021, undercover law enforcement agents began communicating with Chavez and Luevano via a social media platform, where the defendants advertised for sale various narcotics and firearms. Agents made numerous purchases from Chavez and Luevano, including
- 150 pills of oxycodone purchased from Luevano, which contained fentanyl and another synthetic opioid;
- 50 grams of heroin purchased from Chavez;
- 100 grams of MDMA (ecstasy) purchased from Luevano;
- 100 grams of methamphetamine purchased from Chavez and Luevano;
- a Springfield Armory Model 1911 A1 .45 caliber firearm, an AK-47 firearm, and an AR-15 firearm with “We The People” engraved on the barrel were purchased from Chavez and Luevano;
- Numerous additional firearms were purchased from Chavez including: a Glock 27 .40 caliber firearm, an Ithaca sawed-off 12-guage shotgun, a Springfield XD45 .45 caliber firearm, approximately 5 different AR-15 firearms, and numerous auto sear switches which convert a semi-automatic firearm into a fully automatic firearm; and
- An additional AR-15 firearm was purchased from Luevano.
Chavez and Luevano were paid mostly in cryptocurrency, and mailed the drugs and guns from addresses in California to New Jersey.
The count of conspiracy to distribute and possess with intent to distribute methamphetamine carries a mandatory minimum of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million. The count of conspiracy to distribute and possess with intent to distribute fentanyl carries a statutory maximum of 20 years in prison and a maximum fine of $1 million. The count of conspiracy to unlawfully transport firearms carries a statutory maximum of five years in prison and a fine of $250,000. The count of possession of unregistered firearms carries a statutory maximum of 10 years in prison and a fine of $10,000.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, and special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and accusations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Treynor Man Sentenced for Investment Fraud SchemeRead the Press Release
COUNCIL BLUFFS, IA – Jeffrey M. Carley, age 53, formerly of Treynor, was sentenced Tuesday, March 22, 2022, to five years in prison. Following his prison term, Carley will serve three years of supervised release. He was also ordered to pay $1,364,163.02 in restitution to the victims. Carley pleaded guilty to Wire Fraud on October 22, 2021.
Carley was a financial investment counselor and he owned or had an ownership interest in Carley Financial Group, Prosperity Partners, and Main Street Solutions. From as early as 2013, until December of 2020, Carley encouraged his clients to move money from their traditional IRA accounts to a “self-directed” IRA. Carley then advised his clients to move their money from the “self-directed” IRA to investment opportunities Carley owned or had ownership interest in and advised clients they would receive a financial return. Carley never told his clients that he owned or had an interest in the investments he represented to them as solid investments. Carley also failed to invest the clients’ money and instead used the funds for his personal expenses.
“The defendant…has destroyed the savings of people that trusted him and there is no way to quantify the damage the defendant did to the emotional security of those he stole from. Making this crime even more egregious, it appears, although one cannot be sure, that the defendant flitted away all the money he stole for personal purposes, leaving nothing available to repay the victims,” wrote Assistant United States Attorney Richard E. Rothrock in the government’s sentencing brief. The sentencing judge noted the length of time the scheme lasted and the harm and age of the victims as some of the aggravating factors in this case she considered in determining the five-year sentence.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.