Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 23 March 2022
Former Defense Contractor Executive Pleads Guilty to Tax EvasionRead the Press Release
A former managing director for a defense contractor pleaded guilty today to tax evasion.
According to court documents and statements made in court, from 2010 through 2019, James M. Robar, of Colorado Springs, Colorado, did not timely file tax returns with the IRS. Beginning in approximately February 2012 James Robar was employed by a U.S. Department of Defense contracting company, eventually serving as its managing director starting in 2015. In 2016 and 2017, Robar evaded taxes by having his employer hold his bonus payments in an offshore corporate bank account rather than have those funds transferred to his domestic bank account. In 2019, after receiving a $1 million bonus from his employer, Robar purchased two properties at a total cost of slightly more than $1 million, and he titled both properties solely in his spouse’s name. In total, Robar did not report approximately $5.5 million in compensation he earned from 2012 through 2019, causing a tax loss to the government of more than $1.5 million.
Robar is the second defendant associated with the defense contracting company to plead guilty. Charles Squires pleaded guilty to tax evasion in February 2022.
Robar is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are conducting the investigation.
Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom and the United States.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Brittney Campbell and Sarah Ranney of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former Defense Contractor Executive Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – A former managing director for a defense contractor pleaded guilty today to tax evasion.
According to court documents and statements made in court, from 2010 through 2019, James M. Robar, of Colorado Springs, Colorado, did not timely file tax returns with the IRS. Beginning in approximately February 2012, James Robar was employed by a U.S. Department of Defense contracting company, eventually serving as its managing director starting in 2015. In 2016 and 2017, Robar evaded taxes by having his employer hold his bonus payments in an offshore corporate bank account rather than have those funds transferred to his domestic bank account. In 2019, after receiving a $1 million bonus from his employer, Robar purchased two properties at a total cost of slightly more than $1 million, and he titled both properties solely in his spouse’s name. In total, Robar did not report approximately $5.5 million in compensation he earned from 2012 through 2019, causing a tax loss to the government of more than $1.5 million.
Robar is the second defendant associated with the defense contracting company to plead guilty. Charles Squires pleaded guilty to tax evasion in February 2022.
Robar is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are conducting the investigation.
Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom and the United States.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Brittney Campbell and Sarah Ranney of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Florida Return Preparer Sentenced to 97 Months in PrisonRead the Press Release
A Florida tax return preparer was sentenced yesterday to 97 months in prison for preparing false tax returns for his clients.
According to court documents and evidence presented at trial, Fred Pickett Jr., of Belle Glade, owned and operated a tax return business he used to prepare false individual income tax returns. From 2013 to 2016, Pickett prepared tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these nonexistent companies, as well as other false deductions and tax credits, on his clients’ returns to generate refunds they were not entitled to receive. In December 2021, Pickett was convicted at trial of 22 counts of aiding and assisting the preparation of false tax returns.
In addition to the term of imprisonment, U.S. District Judge Robin L. Rosenberg ordered Pickett to serve one year of supervised release and pay approximately $169,639 in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Parker Tobin and Patrick Elwell of the Tax Division prosecuted the case.
Federal Grand Jury B Indictments Announced- March 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the March 2022 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Cody Dwayne Buzzard, Dakota Chase Buzzard, James William Buzzard. First Degree Murder in Indian Country; Assault with a Dangerous Weapon in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence (second superseding indictment). In this second superseding indictment, James Buzzard, 49, is now charged along with his sons Cody, 28, and Dakota, 20, all of Grove, with the first degree murder of Jerry Tapp. The three allegedly aided and abetted one another when they shot and killed the victim on Aug. 1, 2019. In count 2, the defendants are alleged to have aided and abetted one another to shoot a second victim during the same incident. Finally, the defendants are charged with brandishing and discharging a firearm during and relation to a crime of violence. The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Oklahoma State Bureau of Investigation, and Delaware County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorneys Ben Tonkin and Victor A.S. Régal are prosecuting the case. 21-CR-351
Anthony Taylor Fuller. Assault Resulting in Serious Bodily Injury in Indian Country. On Feb. 27, 2022, Fuller, 30, of Tulsa, caused serious bodily injury when he assaulted an elderly victim. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Melody Noble Nelson is prosecuting the case. 22-CR-82
Raymond Lee Goldesberry. Aggravated Sexual Abuse of a Minor Under 12 in Indian Country; Sexual Abuse of a Minor in Indian Country (superseding). Goldesberry, 42, of Tulsa, allegedly sexually abused a minor from May 2017 to Dec. 31, 2017. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case. 21-CR-450
Caleb Russell Klein. Assault Resulting in Serious Bodily Injury in Indian Country. Klein, 32, of Tulsa, is alleged to have assaulted the victim on Feb. 16, 2022, causing serious bodily injury. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Ryan H. Heatherman is prosecuting the case. 22-CR-79
Jesse Ray Matlock. Aggravated Sexual Abuse by Force and Threat in Indian Country; Assault of a Spouse, Intimate/Dating Partner by Strangling and Attempting to Strangle in Indian Country; Tampering with a Witness by Using and Threatening Physical Force; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Matlock, 31, of Eucha, is alleged to have sexually assaulted the victim and strangled her on Feb. 24, 2022. He also threatened to harm the victim and her family if she reported the crime to authorities. He is further charged with carrying, using and brandishing a firearm during the crime. The FBI and Delaware County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Steven J. Briden is prosecuting the case. 22-CR-83
Jeremy Dustin Papke. Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact with a Minor in Indian Country; Coercion and Enticement of a Minor in Indian Country. From Sept.1, 2021, to Sept 30, 2021, Papke, 43, of Tulsa, allegedly engaged in a sexual act with a child who was between 12 and 16 years old. During that time, he further engaged in sexual contact with the victim. Finally, he is charged with coercing the minor into engaging in sexual activity. The FBI is the investigative agency. Assistant U.S. Attorney Nathan E. Michel is prosecuting the case. 22-CR-84
Miguel Angel Tapia-Teran. Possession of Methamphetamine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute (superseding). Tapia-Teran, of Hermosillo, Sonora, Mexico, is charged with knowingly possessing with intent to distribute 500 grams or more of methamphetamine. He is further charged with knowingly possessing with intent to distribute 400 grams or more of fentanyl. The Drug Enforcement Administration and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorneys Joel-lyn A. McCormick and Leah Paisner are prosecuting the case. 22-CR-50
Fayetteville Woman Sentenced to Nine Years in Prison for Multi-Million Dollar Contract Fraud SchemesRead the Press Release
RALEIGH, N.C. – A Fayetteville woman was sentenced today to 108 months in prison. On September 30, 2021, Stephanie Dianna Elliott pleaded guilty in federal court to charges of wire fraud and money laundering arising out of schemes to defraud the United States Department of Defense (DoD) and businesses in the Eastern District of North Carolina.
According to court documents, from 2011 to 2020, Stephanie Dianna Elliott, aka “Stephanie Wilson,” aka “Stephanie Moore,” aka “Stephanie Russell,” aka “Stephanie Hanchett,” aka “Vicki Marsh,” aka “Monica Allen,” aka “Melissa Standford,” aka “Jennifer Taylor,” aka “Heidi Litchford,” aka “Sandy Morehead,” aka “Randy Morehead” aka “Katie Jones,” aka “Sharon Mitchell,” aka “Sharon Miller,” aka “Sarah James,” and aka “Janet Harrington,” 45, used aliases and more than a dozen business entities to obtain more than 1,000 federal defense contracts valued at more than $2.2 million. According to the allegations in the indictment, Elliott defrauded the Department of Defense by obtaining contract payments after falsely certifying that she had shipped supplies to the U.S. military, when, in fact, the goods were not shipped. It is alleged that Elliott and/or businesses under her control were debarred from federal contracting on four occasions. Elliott circumvented the terms of her debarments by using aliases and various business names to continue bidding on federal contracts.
Elliott also executed fraud schemes in connection with contracts with the State of North Carolina and other state governments. Elliott bid on contracts to supply food products and other goods. After winning the contracts, Elliott defrauded third party vendors by inducing them to deliver the goods to the state in satisfaction of Elliott’s contractual obligations. In so doing, Elliott obtained payment from state governments for these contracts but failed to pay the victim vendors.
“We are committed to protecting our business community and military from unscrupulous contractors. We will vigorously pursue anyone who seeks to victimize the fine men and women of the United States Armed Forces,” said United States Attorney Michael Easley, Jr.
Special Agent in Charge of the General Service Administration Office of Inspector General Floyd Martinez stated, "Individuals are expected to be honest in their dealings with the government. GSA OIG and our investigative partners are committed to holding accountable those who misrepresent themselves in order to obtain federal contracts."
“Stephanie Elliot spent over a decade defrauding the Department of Defense. She evaded safeguards designed to ensure our warfighters receive the high-quality products and services they depend on to effectively meet their global mission,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “This outcome demonstrates the results of strategic coordination between DCIS and our partners to investigate corruption and bring those who commit fraud against the Government to justice.”
Michael Easley, United States Attorney for the Eastern District of North Carolina made the announcement. The Department of Defense Office of Inspector General, Defense Criminal Investigative Service and the General Services Administration, Office of Inspector General are investigated the case and Assistant U.S. Attorney Toby Lathan is prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00142-D.
FBI Foils Delaware Man’s Murder-for-Hire PlotRead the Press Release
WILMINGTON, Del. – A Wilmington man was arrested today on charges of devising a plot to engage in interstate murder-for-hire. According to court documents, Javier A. Rodriguez, age 47, hired a hitman to murder his ex-wife. Over the course of the investigation, Rodriguez made a down payment of $5,000 to another individual to pay for the hitman. Rodriguez also agreed to pay an additional $5,000 once the murder was completed.
Rodriguez is charged by criminal complaint with a violation of the federal murder-for-hire statute and faces a maximum penalty of 10 years in federal prison if convicted. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Rodriguez appeared in federal court this afternoon before the Honorable Mary Pat Thynge, Chief Magistrate Judge for the District of Delaware. Based on the Government’s motion, Rodriguez will be detained pending an additional hearing on the matter currently scheduled for March 31, 2022.
David C. Weiss, U.S. Attorney for the District of Delaware made the announcement. The case was investigated by the FBI Safe Streets Violent Crime Taskforce, which is a partnership of law enforcement officers from the FBI, Wilmington Police Department, Delaware State Police, Delaware Probation and Parole, and New Castle County Police Department. Assistant U.S. Attorneys Alexander P. Ibrahim and Christopher L. de Barrena-Sarobe are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Ex-Port of Savannah worker admits making bomb threat on 9-11 anniversaryRead the Press Release
SAVANNAH, GA: A Toombs County, Ga., man has admitted phoning in a bomb threat to a Port of Savannah facility on the anniversary of the Sept. 11 terror attacks.
Elliott Sherman, a/k/a “Amir Turner,” 23, awaits sentencing after pleading guilty to False Information and Hoaxes, said U.S. Attorney David H. Estes. The plea subjects Sherman of a possible sentence of up to five years in prison, along with restitution and substantial financial penalties, followed by up to three years of supervised release after completion of any prison term.
There is no parole in the federal system.
“Elliott Sherman’s phoned-in bomb hoax shut down two warehouses, sparked a protracted investigation, and caused a large number of fellow workers to be sent home early – just so he could get a quicker ride home,” said U.S. Attorney Estes. “To make matters worse, his stunt took place on the anniversary of the Sept. 11, 2001, terrorist attacks. He will pay the penalty for his ill-timed threat.”
As described in court documents and testimony, Sherman was an employee of a staffing agency and was assigned to the California Cartage CFS 2 building at the Port of Savannah. He had been dismissed early from his assignment on Sept. 11, 2020, and admitted calling in a bomb threat in hopes that the rest of the workers in his carpool also would be dismissed so he wouldn’t have to wait for his ride home to Vidalia.
“Hoax threats waste limited law enforcement resources, cost taxpayers’ money, and cause emotional distress to all involved,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate hoax threats and will continue to work with our law enforcement partners to prosecute anyone who engages in this unlawful behavior.”
The case was investigated by the FBI, Georgia Ports Authority Police, and the Vidalia Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Joshua S. Bearden.
Essex County Man Sentenced to Nine Years in Prison for Role in Armed CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 108 months in prison for his role in a carjacking in which a firearm was brandished, U.S. Attorney Philip R. Sellinger announced.
Jared Walker, 24, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to a three-count indictment charging him with carjacking, possession of a firearm by a convicted felon, and brandishing a firearm during and in relation to a crime of violence.
According to documents filed in this case and statements made in court:
On Jan. 6, 2020, the driver of a 2008 Ford E-350 van was carjacked at gunpoint in Newark. Walker approached the van, which was parked in Newark, and drove it away while the victim was still inside. Walker brandished a firearm during the carjacking. The victim ultimately escaped from the vehicle, and Walker was apprehended a short time later. When law enforcement recovered the gun, officers discovered that it was loaded with 13 rounds of ammunition. In 2015, Walker was convicted of unlawful possession of a handgun in New Jersey Superior Court – a felony offense – and is prohibited under federal law from possessing firearms and ammunition.
In addition to the prison term, Judge Cecchi sentenced Walker to four years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Violent Crimes Unit.
El Paso Woman Indicted for Tax and Bank FraudRead the Press Release
EL PASO – A federal grand jury in El Paso returned an indictment today charging an El Paso woman for her role in preparing false tax returns and committing bank fraud.
According to court documents, Dawn Marie Munoz, 52, allegedly underreported her income to the IRS for tax years 2015, 2016, 2017 and 2018. Also, beginning in March 2016 through April 2018, Munoz allegedly prepared income tax returns for others where she underreported income or over reported deductions causing the returns to be false. In addition, Munoz fraudulently cashed checks and pocketed money she was not entitled to.
Munoz is charged with four counts of Making and Subscribing a False Return; nine counts of Aiding and Abetting in the Preparation and Presentation of a False Return; and three counts of Bank Fraud. The defendant is tentatively scheduled for her initial court appearance next week before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Texas. If convicted, she faces a maximum sentence of three years in prison on each of the Making False Returns and Preparing False Returns counts and a maximum sentenced of 30 years in prison on each of the Bank Fraud counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Internal Revenue Service – Criminal Investigations (IRS-CI) Special Agent in Charge Ramsey E. Covington, Houston Field Office; and FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office made the announcement.
The IRS-CI and FBI are investigating the case.
Assistant U.S. Attorney Mallory J. Rasmussen is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Dubuque Woman Sentenced to Ten Years in Federal Prison for Distributing Fentanyl that Caused Non-Fatal OverdoseRead the Press Release
A woman who distributed fentanyl to a man who overdosed and nearly died was sentenced March 22, 2022, to ten years in federal prison.
Emily Ann Nelson, age 29, from Dubuque, Iowa, received the prison term after an October 14, 2021 guilty plea to one count of distribution of fentanyl.
Evidence at a prior hearing showed that Nelson distributed a substance that was supposedly heroin to another person in July 2020. That person used the substance, which turned out to be fentanyl, and overdosed, nearly dying. First responders were able to revive the other individual using the opioid antidote, Narcan. At the plea hearing, Nelson admitted she distributed the fentanyl to the person who overdosed. The day after the overdose incident, a confidential informant working with the Dubuque Drug Task Force contacted Nelson to purchase heroin. Nelson stole the money she was supposed to use to get the drugs. About two weeks later, the confidential informant again contacted Nelson to obtain heroin. This time, Nelson obtained the drugs as agreed, but used a portion of the drugs before she could be arrested by officers.
Nelson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Nelson was sentenced to 120 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Nelson is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑01009‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Dover Tax Preparer Indicted for Preparation of Fraudulent ReturnsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal grand jury sitting in Wilmington returned an indictment on Tuesday charging Harvey Walker, 54, a Dover tax preparer, with preparing false and fraudulent returns.
According to the indictment, during the 2015 through 2019 tax years, Walker prepared 23 fraudulent returns for eight different individual clients. Those returns are alleged, among other things, to have falsely claimed deductions for charitable contributions and unreimbursed employee expenses and to have falsely claimed business losses. The maximum penalty for each count is three years of incarceration and a $100,000 fine.
“Tax return preparers play an important role in helping citizens understand the complexities of the tax code and their obligations under it. When tax preparers abuse their knowledge and the trust that the system places in them by causing their clients to file false returns, it hurts everyone. My office will not hesitate to prosecute those who counsel fraud and prepare false returns.”
This case was investigated by Internal Revenue Service Criminal Investigation, which serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law. The case is being prosecuted by Assistant U.S. Attorney Dylan J. Steinberg
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Delaware County Attorney Sentenced to 36 Months’ Imprisonment for Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 22, 2022, Dory L. Sater, age 47, formerly of Drexel Hill, Pennsylvania, was sentenced to 36 months of imprisonment by United States District Court Judge Robert D. Mariani. Sater previously was convicted following a jury trial, of bank fraud and aggravated identity theft offenses.
According to United States Attorney John C. Gurganus, the evidence presented at trial showed that in August 2017, Sater forged a mortgage satisfaction piece and filed the instrument with the Luzerne County Recorder of Deeds Office. The forged document erased a mortgage held by Fidelity Deposit & Discount Bank on the Mountaintop, Pennsylvania residence of Sater’s parents. The mortgage had served as collateral for a $50,000 line of credit that Sater had withdrawn in its entirety. Evidence at trial established that Sater’s parents were considering selling their residence while the forged satisfaction piece was recorded. In the process of forging the mortgage satisfaction piece, Sater also forged the signatures of a Fidelity bank officer and of a public notary, whose notary stamp he stole to use on the forged document. Sater was a personal injury attorney in Delaware County, who ran The Sater Law Firm LLC.
In pronouncing the sentence, Judge Mariani highlighted that Sater was arrested and charged by state authorities in Delaware County for running an unrelated fraud scheme while he was on pretrial release for his federal case. He ultimately pleaded guilty and served approximately seven months of imprisonment in his state case.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and James Buchanan prosecuted the case.
# # #
Defendant Sentenced to 17 Years in Prison for Attempting to Murder United States Government InformantRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Luis Taveras was sentenced by United States District Judge Kiyo A. Matsumoto to 17 years’ imprisonment for attempting to commit obstruction-of-justice murder. Taveras pleaded guilty to the charge in January 2020.
Breon Peace, United States Attorney for the Eastern District of New York; Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Tim Foley, Acting Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the sentence.
“The defendant planned the cold-blooded execution of a witness he believed to be cooperating with U.S. law enforcement, and watched as the witness and members of his family, including a 5-year-old, were shot and wounded. By his callous disregard for human life and brazen contempt for the law, Taveras has earned the lengthy prison term imposed today,” stated United States Attorney Peace. “I commend and thank the Organized Crime Drug Enforcement Task Force for their tireless efforts to bring the defendant to justice for this horrific crime.”
“Taveras tried to silence a potential witness to eliminate the chances of their cooperation with U.S. law enforcement. In a daring public attempt, Taveras tried to gun down the individual in a crowded Colombian restaurant, wounding three victims including a 5-year-old boy,” stated HSI Acting Special Agent-in-Charge Patel. “This callous act of extreme violence and blatant disregard for human life resulted in today’s stiff sentence to land Taveras in federal prison for 17 years. HSI New York, working with our law enforcement partners will continue to tirelessly pursue the most dangerous offenders and prosecute those who seek to obstruct justice, both domestically and on foreign soil.”
“Luis Taveras’ actions were nothing less than cold-blooded and this sentence cements the gravity of his crimes. The relentless nature of law enforcement has resulted in bringing Taveras to justice to face the consequences of his actions. I applaud the U.S. Attorney’s Office Eastern District of New York, the New York City Police Department, the New York State Police, and Homeland Security Investigations for their diligent work and continued collaboration with the DEA New York Division,” stated DEA Special Agent-in-Charge Foley.
“A measure of justice was meted out today against Luis Taveras, whose admitted crimes not only victimized a family, including an innocent child, but sought to upend the sanctity of our collective law enforcement system,” stated NYPD Commissioner Sewell. “His sentencing reflects the commitment of our NYPD investigators and partners, including in the United States Attorney’s Office in the Eastern District of New York, to never relent in our work to eradicate drug traffickers and the harm they propel at home and abroad.”
“This is a clear-cut case in which this suspect attempted to take out a witness who had information regarding his criminal activity, while completely disregarding the safety of innocent family members, including a young child. I want to thank our law enforcement partners for their continued partnership, and the US Attorney for ensuring that the defendant is held fully accountable for his actions,” stated NYSP Superintendent Bruen,
As detailed in court filings and the defendant’s statements at his guilty plea proceeding, Taveras arranged for the murder of an individual whom he knew from prior narcotics transactions and believed to be cooperating with U.S. law enforcement. On June 21, 2016, Tavares entered a restaurant in Cali, Colombia, and sat down at a table with the victim. Shortly thereafter, Taveras stood up, walked to the back of the restaurant, and watched as a co-conspirator entered the restaurant and fired eight shots – wounding the victim in the shoulder and arm, and also wounding two family members of the victim, including a five-year-old child. Taveras and his co-conspirator then fled. The three victims survived their wounds.
Taveras was arrested in February 2019 by federal law enforcement agents in Miami. During his guilty plea proceeding, Tavares admitted that he identified the intended target to his co-conspirator, and that he wanted to prevent that individual from providing information to U.S. law enforcement.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Erin Reid is in charge of the prosecution.
The Defendant:
LUIS TAVERAS
Age: 33
Miami, FloridaE.D.N.Y. Docket No. 19-CR-180 (S-2) (KAM)
DEA Investigation Leads New Castle Man to Plead Guilty in International Cocaine ConspiracyRead the Press Release
PITTSBURGH, PA - A resident of New Castle, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Dondi Searcy Jr., age 37, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Searcy Jr. participated in a conspiracy to distribute five kilograms or more of cocaine. If this case would have proceeded to trial, the government would have proven that Searcy Jr. was part of a cocaine-distribution conspiracy focused on New Castle, Pennsylvania. The conspiracy involved cocaine imported from Mexico into California, that the California conspirators mailed the cocaine to the New Castle area, and that Searcy Jr. and others then distributed. The evidence that government would have presented included intercepted communications obtained through court authorization, surveillance, controlled purchases from Searcy, Jr. and other conspirators, search warrants of locations associated with Searcy, Jr., and various other investigative techniques.
Judge Horan scheduled sentencing for July 26, 2022, at 9:00 a.m. The law provides for a total sentence of not less than 10 years in prison and up to life, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway and Maureen Sheehan-Balchon are prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Searcy, along with the United States Postal Inspection Service, the Criminal Investigation Division of the Internal Revenue Service, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the New Castle Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Council Bluffs Nurse Sentenced for Fraudulently Obtaining NarcoticsRead the Press Release
COUNCIL BLUFFS, IA – Jadelyn Marie Maher, age 39, of Council Bluffs, was sentenced yesterday in federal court to six months in prison for Acquiring a Controlled Substance by Misrepresentation, Fraud, Deception and Subterfuge. Her term of imprisonment will be followed by one year of supervised release. Maher was also ordered to pay a $3,000 fine. According to court documents, Maher pleaded guilty to the charge on November 4, 2021.
Maher was employed as a registered nurse at facilities where she falsified health care records and narcotics log sheets when she checked out narcotics/opioids for patients. Maher took the Hydrocodone and Oxycodone pills for her own use. Maher’s nursing license was forfeited by the Court.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Medicaid Fraud Control Unit investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Correctional Officer at FCI Dublin Charged for Abusive Sexual Contact with Female InmateRead the Press Release
Enrique Chavez appeared Tuesday in federal court to face a federal indictment charging him with two counts of abusive sexual contact against a prison inmate at the Federal Correctional Institute Dublin (FCI Dublin).
“Above all else, the Bureau of Prisons is charged with providing safe and humane treatment of all who are in their custody,” said Deputy Attorney General Lisa O. Monaco. “As this case makes clear, the Department of Justice is committed to holding BOP personnel accountable, including through criminal charges, when they fail to uphold their responsibility. Staff misconduct, at any level, will not be tolerated, and our efforts to root it out are far from over.”
“Inmates should never experience sexual abuse at the hands of the Bureau of Prisons employees, yet five BOP employee have recently been charged with such abuse of inmates at FCI Dublin,” said Inspector General Michael E. Horowitz of the Department of Justice Office of the Inspector General. “The safety, security and integrity of federal prisons are of the utmost importance, and the Department of Justice Office of the Inspector General will continue to aggressively pursue allegations of abuse at FCI Dublin and across the BOP.”
“Correctional officers have a trusted responsibility to protect those under their authority,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Sexually abusing inmates is a betrayal of that responsibility and undermines a just penal system. My office is committed to pursuing charges against anyone – including federal employees – who abuse the public’s trust in violation of federal law.”
“Holding a position of power comes with great responsibility. Chavez made a decision to abuse his authority and victimize inmates he was responsible for overseeing,” said Special Agent in Charge Craig D. Fair of the FBI. “Let this send a clear message that the FBI will investigate and hold accountable any and every individual who commits an act like this, regardless of your title or authority.”
According to the indictment unsealed today, Chavez, 49, of Manteca, California, is employed as a correctional officer at FCI Dublin. FCI Dublin is a correctional institution that houses female prisoners and is operated by the Federal Bureau of Prisons (BOP). On the dates of the charged crimes, Chavez was assigned to the position of Cook Supervisor/Foreman. As a correctional officer, he supervised and had disciplinary authority over the female inmates incarcerated at FCI Dublin. Chavez was trained in BOP policies and procedures, which included instructions that sexual, financial and social relationships with inmates are prohibited.
The indictment charges two counts of abusive sexual contact by Chavez against a prison inmate occurring on separate occasions in October 2020. In each count, the indictment alleges that Chavez engaged in intentional sexual contact with “Victim 1.” Victim 1 is identified as a female inmate detained at FCI Dublin and thereby under the custodial, supervisory and disciplinary authority of Chavez.
Chavez was arrested in Arizona on Sunday, March 20. His initial court appearance occurred Tuesday, March 22, in U.S. District Court in Arizona, where he is being held pending transfer to the U.S. District Court in Oakland to face these charges.
Chavez is charged with abusive sexual contact with a prisoner in violation of 18 U.S.C. § 2244(a)(4). Each of the two counts carries a maximum statutory sentence of two years imprisonment, a three-year term of supervised release, and a $250,000 fine. 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.
The charges contained in the indictment are allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Deputy Attorney General Monaco for the U.S. Department of Justice, U.S. Attorney Hinds for the Northern District of California, Department of Justice Inspector General Horowitz and FBI Special Agent in Charge Fair made the announcement.
Assistant U.S. Attorneys Mohit Gourisaria, Molly K. Priedeman and Andrew Paulson are prosecuting the case with the assistance of Kay Konopaske and Leeya Kekona. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the FBI.
Correctional Officer at FCI Dublin Charged for Abusive Sexual Contact with Female InmateRead the Press Release
OAKLAND – Enrique Chavez appeared yesterday in federal court to face an indictment charging him with two counts of abusive sexual contact against a prison inmate at the Federal Correctional Institute Dublin (FCI Dublin).
“Above all else, the Bureau of Prisons is charged with providing safe and humane treatment of all who are in their custody,” said Deputy Attorney General Lisa O. Monaco. “As this case makes clear, the Department of Justice is committed to holding BOP personnel accountable, including through criminal charges, when they fail to uphold their responsibility. Staff misconduct, at any level, will not be tolerated, and our efforts to root it out are far from over.”
“Correctional officers have a trusted responsibility to protect those under their authority,” said United States Attorney Stephanie M. Hinds. “Sexually abusing inmates is a betrayal of that responsibility and undermines a just penal system. My office is committed to pursuing charges against anyone – including federal employees – who abuse the public’s trust in violation of federal law.”
“Inmates should never experience sexual abuse at the hands of the Bureau of Prisons employees, yet five BOP employee have recently been charged with such abuse of inmates at FCI Dublin. The safety, security, and integrity of federal prisons are of the utmost importance, and the Department of Justice Office of the Inspector General will continue to aggressively pursue allegations of abuse at FCI Dublin and across the BOP,” said Inspector General Michael E. Horowitz.
“Holding a position of power comes with great responsibility. Chavez made a decision to abuse his authority and victimize inmates he was responsible for overseeing,” said FBI Special Agent in Charge Craig D. Fair. “Let this send a clear message that the FBI will investigate and hold accountable any and every individual who commits an act like this, regardless of your title or authority.”
According to the indictment unsealed today, Chavez, 49, of Manteca, California, is employed as a correctional officer at FCI Dublin. FCI Dublin is a correctional institution that houses female prisoners and is operated by the Federal Bureau of Prisons (BOP). On the dates of the charged crimes, Chavez was assigned to the position of Cook Supervisor/Foreman. As a correctional officer, he supervised and had disciplinary authority over the female inmates incarcerated at FCI Dublin. Chavez was trained in BOP policies and procedures, which included instructions that sexual, financial, and social relationships with inmates are prohibited.
The indictment charges two counts of abusive sexual contact by Chavez against a prison inmate occurring on separate occasions in October 2020. In each count, the indictment alleges that Chavez engaged in intentional sexual contact with “Victim 1.” Victim 1 is identified as a female inmate detained at FCI Dublin and thereby under the custodial, supervisory, and disciplinary authority of Chavez.
Chavez was arrested in Arizona on Sunday, March 20. His initial court appearance occurred Tuesday, March 22, in United States District Court in Tucson, Arizona, where he is being held pending transfer to the United States District Court in Oakland to face these charges.
Chavez is charged with abusive sexual contact of a prisoner in violation of 18 U.S.C. § 2244(a)(4). Each of the two counts carries a maximum statutory sentence of two years imprisonment, a three-year term of supervised release, and a $250,000 fine. 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.
The charges contained in the indictment are allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Deputy Attorney General Lisa O. Monaco for the U.S. Department of Justice, U.S. Attorney Stephanie M. Hinds for the Northern District of California, Department of Justice Inspector General Michael E. Horowitz, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair made the announcement.
Assistant U.S. Attorneys Mohit Gourisaria, Molly K. Priedeman, and Andrew Paulson are prosecuting the case with the assistance of Kay Konopaske and Leeya Kekona. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
Colorado Pair Sentenced for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, IA – Jeremy Antonio Trujillo, age 43, of Colorado, was sentenced yesterday in federal court to 192 months in prison for Conspiracy to Distribute Methamphetamine and 120 months in prison for Felon in Possession of a Firearm. The sentences will run concurrently. His term of imprisonment will be followed by five years of supervised release. According to court documents, Trujillo pleaded guilty to the charges on November 4, 2021.
Trujillo’s co-defendant, Kristen Leigh Jarrard, age 37, also of Colorado, was sentenced on November 2, 2021, to 156 months in prison for Conspiracy to Distribute Methamphetamine and 120 months in prison for Felon in Possession of a Firearm. The sentences will run concurrently. Her term of imprisonment will be followed by five years of supervised release. Jarrard pleaded guilty to the charges on March 18, 2021.
On October 28, 2020, the couple was stopped for a traffic violation on Interstate 29 and a law enforcement dog was run around the vehicle. Following a canine alert for the odor of narcotics on the car, officers recovered a backpack containing 817 grams of methamphetamine and a loaded Smith and Wesson .45 caliber revolver. Surveillance video from a motel showed Trujillo and Jarrard carrying bags from the motel to the vehicle and Trujillo carrying the backpack from the motel to the car and placing it inside. Both Jarrard and Trujillo are prior convicted felons.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa State Patrol, Council Bluffs Police Department and the Iowa Division of Narcotics Enforcement investigated the case. The United States Marshals Service made the arrests. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Cleveland Man Sentenced to Prison After Robbery and Evidence Tampering ConvictionRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Tandre Buchanan, 24, of Cleveland, was sentenced today by U.S. District Judge Donald C. Nugent to four years in prison after Buchanan was convicted at trial of robbery and tampering with evidence during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.
“Stealing from and deliberately damaging a business is unacceptable no matter the underlying intention or purpose,” said Acting U.S. Attorney Michelle M. Baeppler. “The right to engage in peaceful protest is guaranteed under the Constitution and must always be protected. Using that as an excuse to commit crimes against the innocent is an adulteration of that right.”
“Violent, deliberate attacks against individuals and businesses is appalling,” said FBI Special Agent in Charge Eric B. Smith. “Tampering with evidence further adds to the criminal misconduct. The FBI will continue to investigate cases that aim to cripple commerce, whether small businesses or large corporations.”
According to court documents and evidence presented at trial, on May 30, 2020, Buchanan participated in a demonstration in downtown Cleveland to protest the death of George Floyd in Minneapolis, Minnesota. Later that day, Buchanan, wearing a bright orange jacket, head covering and shoes, came to Colossal Cupcakes located at 528 Euclid Avenue.
Court documents state that Buchanan then threw an object that shattered a large window, entered the business through the broken window, and encountered the store owner and employees, who locked themselves in a bathroom to call for help.
Buchannan then removed a chair from the shop and exited through the same window. Using the chair, Buchanan repeatedly smashed a second window until it finally shattered and fell out. Court documents state that multiple individuals then entered the business through the broken window, destroyed the shop’s interior and stole several items, including store inventory and iPads, all while Buchanan was smashing the second window.
Buchanan was also convicted of evidence tampering after it was revealed that Buchanan disposed of the bright orange clothing he wore the day of the crime in an attempt to conceal his identity and participation in the crime. Buchanan was ultimately identified and arrested based on multiple identifications made from photos released to the public.
This case was investigated by the FBI with the assistance of the Cleveland Police Department. This case is being prosecuted by Assistant United States Attorney Scott C. Zarzycki.
Clarksville Business Owner Pleads Guilty to Tax EvasionRead the Press Release
NASHVILLE – A Clarksville, Tennessee, business owner pleaded guilty today in U.S. District Court to a single count of tax evasion, announced U.S. Attorney Mark Wildasin for the Middle District of Tennessee.
Andrew Huy Nguyen, 54, the owner of Call it Pho restaurant and Venus Nails Spa, both located in Clarksville, Tennessee, admitted responsibility for a tax loss of more than $428,000.
Nguyen was charged on March 3, 2022, in a criminal Information, which alleged that Nyugen, as the owner of Call it Pho, willfully evaded his responsibility to pay his employer’s share of employment taxes to the IRS by underreporting the wages he paid his Call it Pho employees. He hid from the IRS the true amount of wages he paid his Call it Pho employees by failing to issue some employees W2 Forms, by paying some employees solely in cash, and by paying some employees a combination of 50% check and 50% cash. Nyugen took numerous steps to conceal from the IRS the true amount of wages he paid to his employees, including preparing and issuing 1099 Forms instead of W2 Forms to disguise the wages paid to employees as “nonemployee compensation.” He further disguised the wages by issuing 1099 Forms that falsely made it appear as though those employees worked at another business that he owned, Venus Nails Spa.
For tax years 2017, 2018, and 2019, Nyugen evaded more than $34,000 of the employer’s employment taxes related to Call it Pho.
In addition, Nguyen willfully failed to withhold and pay over to the IRS approximately $78,667 in employment taxes and federal income taxes from his employees’ paychecks at Call it Pho.
Nyugen also issued false 1099 Forms to nail technicians employed at Venus Nails Spa that did not report all the wages he paid them. Nguyen paid Venus employees at least $946,716.24 in cash, which he did not report on the 1099 Forms that he issued to them. This caused his employees to file false tax returns that did not report all their income, which resulted in an additional tax loss of approximately $315,856.
Nguyen faces up to five years in prison and a $250,000 fine when he is sentenced on September 23, 2022. Nguyen has agreed to pay immediate restitution in the amount of $428,620.12.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
# # # # #
Chinese Government Employee Convicted of Participating in Conspiracy to Defraud the United States and Fraudulently Obtain U.S. VisasRead the Press Release
A federal jury convicted a New Jersey man for his involvement in a conspiracy to fraudulently obtain U.S. visas for Chinese government employees.
According to court documents and evidence presented at trial, Zhongsan Liu, 59, of Fort Lee, participated in a scheme to fraudulently procure J-1 research scholar visas for employees of the government of the of the People’s Republic of China (PRC) to enable them to unlawfully work for the PRC government in the United States and to conceal that unlawful work from the United States and its agencies.
Liu operated an office of the China Association for the International Exchange of Personnel (CAIEP), an agency of the PRC government, in Fort Lee, New Jersey. Among other activities, CAIEP engages in talent-recruitment for the benefit of the PRC, including recruiting U.S. scientists, academics, engineers and other experts to work in China.
From 2017 up to and including September 2019, Liu worked with others to fraudulently procure J-1 research scholar visas for PRC government employees in order to enable those employees to unlawfully work for CAIEP in the United States and to conceal that unlawful work from the Department of State and the Department of Homeland Security. The J-1 research scholar program permits foreign nationals to come to the United States for the primary purpose of conducting research at a corporate research facility, museum, library, university, or other research institution. Liu worked with others to obtain a J-1 research scholar visa for a prospective CAIEP employee, Sun Li, based on the false representation that Sun Li would conduct research at a U.S. university, and to conceal the unlawful work of another CAIEP employee, Liang Xiao, who was present in the United States on a J-1 visa sponsored by a U.S. university.
In or about April 2018, Liang Xiao applied for and received a J-1 visa to conduct research at that U.S. university. Although Liang represented to the U.S. government that she was entering the United States for the primary purpose of conducting research at the university, Liang’s actual purpose in the United States consisted of working for CAIEP. Liu helped Liang take measures to enhance her false appearance as a research scholar by, among other things, directing Liang to report to the university upon her arrival in the United States; ensuring that Liang obtained a local driver’s license and disguising Liang’s CAIEP salary as a subsidy for a research scholar’s living expenses.
In addition, Liu sought to enable Sun Li to obtain a J-1 research scholar visa under false pretenses. In particular, Liu reached out to contacts at multiple U.S. universities in order to arrange for a university to invite Sun Li to come to the United States as a J-1 research scholar. In truth and in fact, however, Liu intended that Li’s primary purpose in the United States would consist of working for CAIEP.
Liu was convicted of one count of conspiracy to defraud the United States and to commit visa fraud, which carries a maximum sentence of five years. He is scheduled to be sentenced on July 11. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams of the Southern District of New York, Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division and Assistant Director in Charge Michael J. Driscoll of the FBI's New York Field Office made the announcement.
The FBI investigated the case, with valuable assistance provided by the U.S. Department of State, Department of Homeland Security, Homeland Security Investigations, and the National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorneys Gillian Grossman and Elinor Tarlow for the Southern District of New York are prosecuting the case.
Chinese Government Employee Convicted of Participating in Conspiracy to Defraud the United States and Fraudulently Obtain U.S. VisasRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ZHONGSAN LIU was convicted yesterday of participating in a conspiracy to defraud the United States by obstructing the lawful functions of the U.S. Department of State and the Department of Homeland Security and with committing visa fraud. LIU was convicted after a one-week trial before the Honorable Valerie E. Caproni.
U.S. Attorney Damian Williams stated: “Liu Zhongsan sought to exploit the J-1 research scholar program—which is intended to allow foreign nationals to conduct research at approved U.S. institutions—for the improper purpose of enabling his conspirators to work for the Chinese Government in the United States, against the rules of the research scholar program. Liu’s conviction reflects this Office’s commitment to holding to account those who seek to defraud this country’s visa system and the agencies responsible for its administration.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
LIU participated in a scheme to fraudulently procure J-1 research scholar visas for employees of the government of the of the People’s Republic of China (the “PRC Government”) in order to enable them to unlawfully work for the PRC Government in the United States and to conceal that unlawful work from the United States and its agencies.
LIU operated an office of the China Association for the International Exchange of Personnel (“CAIEP”), an agency of the PRC Government, in Fort Lee, New Jersey. Among other activities, CAIEP engages in talent-recruitment for the benefit of the PRC, including recruiting U.S. scientists, academics, engineers, and other experts to work in China.
From 2017 up to and including September 2019, Liu worked with others to fraudulently procure J-1 research scholar visas for PRC Government employees in order to enable those employees to unlawfully work for CAIEP in the United States and to conceal that unlawful work from the Department of State and the Department of Homeland Security. The J-1 research scholar program permits foreign nationals to come to the United States for the primary purpose of conducting research at a corporate research facility, museum, library, university, or other research institution. LIU worked with others to obtain a J-1 research scholar visa for a prospective CAIEP employee, Sun Li, based on the false representation that Sun Li would conduct research at a U.S. university, and to conceal the unlawful work of another CAIEP employee, Liang Xiao, who was present in the United States on a J-1 visa sponsored by a U.S. university.
In or about April 2018, Liang Xiao applied for and received a J-1 visa to conduct research at that U.S. university. Although Liang represented to the U.S. Government that she was entering the United States for the primary purpose of conducting research at the university, Liang’s actual purpose in the United States consisted of working for CAIEP. LIU helped Liang take measures to enhance her false appearance as a research scholar by, among other things, directing Liang to report to the university upon her arrival in the United States; ensuring that Liang obtained a local driver’s license; and disguising Liang’s CAIEP salary as a subsidy for a research scholar’s living expenses.
In addition, LIU sought to enable Sun Li to obtain a J-1 research scholar visa under false pretenses. In particular, LIU reached out to contacts at multiple U.S. universities in order to arrange for a university to invite Sun Li to come to the United States as a J-1 research scholar. In truth and in fact, however, LIU intended that Sun Li’s primary purpose in the United States would consist of working for CAIEP.
* * *
LIU, 59, of Fort Lee, New Jersey, was convicted of one count of conspiracy to defraud the United States and to commit visa fraud, which carries a maximum sentence of five years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing before Judge Caproni is scheduled for July 11, 2022.
Mr. Williams praised the outstanding investigative work of the FBI, and thanked the U.S. Department of State, Department of Homeland Security, Homeland Security Investigations, and the Counterintelligence and Export Control Section of the U.S. Department of Justice’s National Security Division for their assistance.
The prosecution of this case is being handled by the Office’s National Security and International Narcotics Unit. Assistant United States Attorneys Gillian Grossman and Elinor Tarlow are in charge of the prosecution, with assistance from Trial Attorneys Adam Barry and Scott Claffee of the Counterintelligence and Export Control Section.
Cedar Rapids Drug User Sent to Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
A Cedar Rapids man who unlawfully possessed a firearm and ammunition as a drug user was sentenced March 22, 2022, to more than four years in federal prison.
Deanye Bowman-Owens, age 22, from Cedar Rapids, Iowa, received the prison term after an August 24, 2021 guilty plea to one count of possession of ammunition by a drug user.
Evidence disclosed at sentencing showed that, on August 24, 2021, officers with the Cedar Rapids Police Department were dispatched to an apartment complex after receiving a report of individuals holding a handgun in the bed of a pickup truck. After officers arrived, they recovered a loaded .45 caliber handgun with a twenty-seven round extended magazine in the bed of the pickup truck and located Bowman-Owens in the driver’s seat. Later, officers searched Bowman-Owens and recovered marijuana and a magazine that matched the .45 caliber handgun. Bowman-Owens’s fingerprint was located on one of the rounds of ammunition contained in the magazine recovered from his pocket. Bowman-Owens later admitted to using marijuana consistently for the four months prior to the incident. At sentencing, the court found Bowman-Owens possessed the .45 caliber handgun.
Bowman-Owens was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bowman-Owens was sentenced to 51 months’ imprisonment. He must also serve a three-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.
Bowman-Owens is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department 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-00026.
Follow us on Twitter @USAO_NDIA.
California ringleader charged in multi-layered fraud schemeRead the Press Release
HOUSTON – A ringleader and his brother-in-law have been indicted for their participation in a multi-state scheme involving mortgage fraud, credit repair and government loan fraud, announced U.S. Attorney Jennifer B. Lowery.
Steven Tetsuya Morizono, 59, Mission Viejo, California, and Albert Lugene Lim, 53, Laguna Niguel, California, set for an arraignment before U.S. Magistrate Judge Sam S. Sheldon today at 2 p.m.
Two others - Heather Ann Campos, 43, and David Lewis Best Jr., 58, both of Houston - are fugitives with warrants remain outstanding for their arrest. Anyone with information about their whereabouts is asked to contact the U.S. Postal Inspection Service at 281-512-8525.
The indictment remains sealed to others charged but not as yet in custody.
The 33-count indictment, returned March 16, alleges Morizono and Lim led the conspiracy. Using the alias Jeff, Morizono was the leader and namesake for the scheme purporting to do business as Jeff Funding, according to the charges. In reality, Jeff funding allegedly operated a multi-layered scheme to defraud mortgage lending businesses, banks, Small Business Administration (SBA) and Federal Trade Commission (FTC).
The indictment alleges co-conspirators recruited clients for credit repair using company names of KMD Credit, KMD Capital and Jeff Funding, among others. They allegedly “cleaned” their clients’ credit histories by filing false identity theft reports with the FTC. After fraudulently inflating client credit worthiness, the co-conspirators fraudulently obtain credit cards, disaster loans and mortgages for themselves and their clients, according to the charges. They were allegedly able to accomplish this through false statements and fake documents.
Morizono and his crew maintained control of the properties purchased in their clients’ names, according to the charges. The purpose, the indictment alleges, was for the purpose of building a real estate portfolio worth millions of dollars and enriching themselves with rental income.
If convicted, Morizono and Lim face up to 30 years in federal prison and a possible $1 million maximum fine.
The Federal Housing Finance Agency – Office of Inspector General (OIG), U.S. Postal Inspection Service, Housing and Urban Development – OIG and SBA – OIG conducted the investigation with the assistance of the FTC – OIG and IRS – Criminal Investigation. Assistant U.S. Attorneys Kate Suh and Jay Hileman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Brothers Facing Federal Charges for Alleged Bank Fraud in the Purchase and Sale of Two Baltimore PropertiesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Philip Abramowitz, age 50, of Pikesville, Maryland, with bank fraud and conspiracy to commit bank fraud and Calvin Abramowitz, age 48, of Lakewood, New Jersey, with conspiracy to commit bank fraud, bank fraud, and for making false statements on a loan application.
The defendants will have initial appearances on March 24, 2022, beginning at 1:30 p.m., in U.S. District Court in Baltimore before U.S. Magistrate Judge Coulson.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development Office of Inspector General.
According to the four-count indictment, from May 2016 to April 2017, Philip and Calvin Abramowitz conspired to defraud two financial institutions to obtain money and property under fraudulent pretenses. Allegedly, Philip, Calvin Abramowitz, as well as others submitted mortgage applications totaling $535,448 to fund the purchase of two Baltimore Properties. Allegedly, the loan applications contained false information that misrepresented the financing of the purchases and the ownership interests and intentions of the involved parties.
As alleged in the indictment, Philip Abramowitz instructed family members to apply for and receive Federal Housing Administration loans in their names in order to finance the purchase of two of his Baltimore properties. Further, the indictment alleges that Philip and Calvin Abramowitz concealed Philip Abramowitz’s involvement in the real estate transactions and submitted false bank records and company filings during the loan application process to conceal the buyers’ and sellers’ familial relation.
Further, the indictment alleges that Philip Abramowitz falsified LLC records to create the illusion that his property manager was the sole owner of the selling entity in both property transactions and instructed his property manager to sign all closing documents as the “seller” to finalize the sales and the disbursement of loan proceeds. In addition, the indictment alleges that Philip Abramowitz provided funds to Calvin Abramowitz to cover Calvin Abramowitz’s and another family members closing costs for both properties.
If convicted, Philip Abramowitz faces a maximum sentence of 30 years in federal prison for bank fraud and 30 years in federal prison for conspiracy to commit bank fraud. If convicted, Calvin Abramowitz faces a maximum sentence of 30 years for bank fraud, a maximum of 30 years for conspiracy to commit bank fraud, and 30 in federal prison for making false statements on a loan application. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended HUD-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Bronx Man Charged with Conspiracy to Traffic Fentanyl and CocaineRead the Press Release
NEWARK, N.J. – A New York man was arrested today on charges of conspiring to possess with intent to distribute fentanyl and cocaine, U.S. Attorney Philip R. Sellinger announced.
David Patrick Williams, 36, of the Bronx, was charged by complaint, made his initial appearance before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On March 30, 2020, Williams and two other individuals conspired and agreed to possess with intent to distribute approximately one kilogram of fentanyl and approximately one kilogram of cocaine, and attempted to take delivery of a shipment containing those substances.
The charges of conspiracy to possess with intent to distribute fentanyl and cocaine each carry a statutory mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a maximum fine of $10 million.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Brockton Man Pleads Guilty to Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to possessing a firearm and ammunition as a convicted felon.
Nicholas Mendes, 40, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Judge Patti B. Saris, who scheduled sentencing for June 14, 2022. Mendes was charged by criminal complaint in October 2020.
On the evening of May 21, 2020, police responded to a report of possible gunshots. At the scene, officers found a parked vehicle with three occupants inside and the passenger door open. A subsequent search of the vehicle revealed a FN Model 509, 9mm semi-automatic pistol with a partially obliterated serial number tucked under the driver seat where Mendes was sitting. The firearm was loaded with six rounds of 9mm ammunition – including one round in the chamber. At the time, Mendes was on state probation with electronic monitoring.
Mendes is prohibited from possessing a firearm and ammunition due to three prior convictions of intimidation, possession of a firearm and carrying a firearm without a license. Mendes also had previous arrests for firearm and narcotics offenses.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. 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; and Brockton Police Acting Chief Steve Williamson, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crime 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.
Alleged Carroll County Drug Dealer Arrested on Federal Charges, Second Defendant Remains a FugitiveRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging two defendants in connection with a drug distribution conspiracy operating in the Westminster area of Carroll County, Maryland. Approximately 300 law enforcement personnel and agents assisted in the arrest of one defendant and the execution of 14 search warrants. James Samms, age 30, of Westminster, Maryland, was arrested today. Rodney Gaines, a/k/a “Butta,” “Butter,” and “Butters,” age 33, also of Westminster, remains a fugitive. Law enforcement is continuing to search for Gaines. Anyone with information as to Gaines’s whereabouts is asked to call “1-800-CALL-FBI.”
The criminal complaint charges Gaines and Samms for conspiracy and for possession with intent to distribute controlled substances, including crack cocaine and fentanyl. The criminal complaint was filed on March 21, 2022 and unsealed today upon the arrest of Samms. Samms is expected to have an initial appearance later today in U.S. District Court in Baltimore, before U.S. Magistrate Judge J. Mark Coulson.
This case arose from the investigative efforts of the Baltimore OCDETF Strike Force, the Maryland State Police, and the Carroll County Drug & Firearms Trafficking Task Force, comprised of the Carroll County Sheriff’s Office, the Westminster Police Department, and the Carroll County State’s Attorney’s Office.
The charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; Chief Thomas J. Ledwell of the Westminster Police Department; and Carroll County State’s Attorney Allan Culver.
“Keeping our neighborhoods safe from drug trafficking and violence is a top priority for the U.S. Attorney’s Office,” said U.S. Attorney for the District of Maryland Erek L. Barron. “We will continue to work closely with our state and local partners to ensure that criminals who bring drugs and violence to our communities are brought to justice.”
“Our commitment to the reduction of violent crime and fostering safe communities is at the forefront of all we do” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “Working with our law enforcement partners, those who traffic drugs, carry guns, and perpetuate violence will continue to be held responsible for their criminal acts.”
“By leveraging the resources between our local, state, and federal partners, the operation conducted today will severely impede the illegal drug trade in Carroll County” said Carroll County Sheriff James DeWees. “I could not be more pleased with the cumulative effort and partnerships of these law enforcement agencies which resulted in these arrests.”
“We appreciate the results of this cooperative effort by our local Carroll County Drug and Firearms Trafficking Task Force comprised of the Carroll County Sheriff’s Office and Westminster Police Department as well as the Maryland State Police, the Federal Bureau of Investigation and the U.S. Attorney’s Office,” said Carroll County State’s Attorney Allan J. Culver. “I also want to acknowledge the Governor’s Office of Crime Prevention, Youth and Victim Services (GOCPYVS) which assisted in funding this project and investigation. GOCPYVS provides grant funding and strategic support to the Maryland Criminal Intelligence Network Initiative (MCIN) member sites, like our site in Carroll County, to identify, disrupt, and dismantle criminal organizations through inter-agency collaboration and data sharing to make Maryland safer. This is a great example of the positive results that MCIN and its partners can help provide.”
According to the affidavit filed in support of the criminal complaint, Gaines is believed to be the primary source of supply for crack cocaine in the Carroll County area. The affidavit alleges that since April 2021, investigators have conducted a number of controlled purchases of crack cocaine and fentanyl from Gaines and members of his drug trafficking organization, including Samms. During these controlled-buy operations, Gaines has allegedly been seen in the area and is believed to be watching and managing his associates.
As detailed in the affidavit, law enforcement intercepted communications between Gaines and his associates allegedly related to drug trafficking and violence. Law enforcement also observed alleged drug transactions at locations in Westminster associated with Gaines and Samms, including at residences and stash houses. On several occasions in 2021, law enforcement overheard calls from customers allegedly arranging to purchase drugs from Gaines, who then directed the customer to an address in Westminster, where the affidavit alleges that Samms completed the transaction. As detailed in the affidavit, on January 9, 2022, after intercepting a call from a drug customer to Gaines requesting to purchase a large quantity of narcotics, investigators observed the drug customer arrive at an alleged stash house location. The drug customer entered the location and quickly left. The drug customer was subsequently stopped for a traffic violation by a Carroll County Sheriff’s Office Deputy. Based on the customer’s constant movement in the vehicle and nervous behavior, the customer was asked to exit the vehicle and a K-9 was called to perform a scan of the vehicle. According to the affidavit, the K-9 alerted for the presence of narcotics in the vehicle. A search of the vehicle resulted in the seizure of 76.6 grams of suspected cocaine and $756 in cash, which was found in the center console of the vehicle.
As alleged in the affidavit, in January 2022, investigators also intercepted communications between Gaines and another individual, later identified as Raekwon Dorsey, discussing the purchase of firearms. Dorsey allegedly agreed to sell Gaines a .9mm handgun and an MP 40 handgun with a laser. On January 31, 2022, after Dorsey sent Gaines a text message that he was on his way to Westminster to meet Gaines, investigators saw Dorsey leave his home in Pennsylvania in a red pick-up truck. As detailed in the affidavit, a traffic stop was conducted, and the truck was searched, resulting in the recovery of one black Smith and Wesson semi-automatic handgun and two magazines with five rounds of ammunition, and one black and silver Smith and Wesson SD handgun, and one magazine loaded with fourteen rounds of ammunition. The handguns were found in the bed of the truck. Investigators learned that the black semi-automatic handgun had been reported stolen. As a result of previous felony convictions, Dorsey and Gaines are prohibited from possessing firearms or ammunition. Dorsey was arrested.
The investigation is continuing.
If convicted, Gaines and Samms each face a maximum sentence of 20 years in federal prison for the conspiracy and for possession with intent to distribute controlled substances. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces 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 against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the FBI, the Maryland State Police, the Carroll County Sheriff’s Office, the Westminster Police Department, and the Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys LaRai Everett and Brandon Moore, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
# # #
Akron Man Sentenced to Prison for Attempting to Distribute Fentanyl Pills Labeled as OxycodoneRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Thomas Anthony Walker, Jr., 36, of Akron, Ohio, was sentenced on Tuesday, March 22, 2022, by U.S. District Judge Benita Y. Pearson to more than five years, or 62 months, in prison after Walker pleaded guilty to attempting to possess and distribute 655 pills containing fentanyl that were labeled as oxycodone.
According to court documents, in April of 2021, a package was interdicted by a Postal Inspector with the United States Postal Inspector Service. The package was suspected of containing drugs after a K9 unit detected the presence of narcotics. Investigators later obtained a warrant, searched the package and retrieved 655 tablets labeled as oxycodone, which actually contained a total of 71 grams of fentanyl.
Investigators then conducted a controlled delivery and later arrested defendant Thomas Anthony Walker Jr. as he attempted to retrieve the package.
This case was investigated by the United States Postal Inspection Service (USPIS) and the Akron Police Department. This case was prosecuted by Assistant United States Attorney Aaron P. Howell.
Tuesday 22 March 2022
Winner Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Winner, South Dakota, man convicted of Receipt of Child Pornography was sentenced on March 22, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Clayton Spotted Calf, age 27, was sentenced to 121 months in federal prison, followed by 5 years of supervised release. Spotted Calf was ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100 and to pay $54,000 in restitution.
Spotted Calf was indicted by a federal grand jury on March 9, 2021. He pled guilty on November 22, 2021.
Between December 2020 and February 2021, Spotted Calf searched for and downloaded child pornography via the internet. He saved multiple images and videos of child pornography to his Google account and to two cellular phones. Law enforcement began investigating Spotted Calf in January 2021, based on a CyberTip received from the National Center for Missing and Exploited Children, which indicated Spotted Calf was storing child pornography in his Google account. In February 2021, Spotted Calf was contacted by law enforcement agents with the South Dakota Internet Crimes Against Children (ICAC) Task Force. Spotted Calf admitted to intentionally searching for child pornography and storing it in his Google account and on his cellular phones, which were seized. A forensic examination of Spotted Calf’s Google account and his devices revealed thousands of images and videos of child pornography. Spotted Calf will forfeit ownership of the cellular phones to the United States. He will also be required as a sex offender pursuant to the Sex Offender and Registration and Notification Act.
This case was investigated by the South Dakota Division of Criminal Investigation, the U.S. Department of Homeland Security, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Spotted Calf was immediately turned over to the custody of the U.S. Marshals Service.
Wilkinsburg Man Charged with Stealing Mail in Oakland and ShadysideRead the Press Release
PITTSBURGH, PA - A resident of Wilkinsburg, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of theft of mail matter, United States Attorney Cindy K. Chung announced today.
The four-count Indictment, returned on March 17, named Tyrone Mobley, age 54, as the sole defendant.
According to the Indictment, from approximately December 2020 until approximately September 2021, Mobley stole US mail and other packages shipped via the United States Postal Service from authorized depositories for mail matter located at various addresses in the Oakland and Shadyside areas of Pittsburgh.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
West Baltimore Drug Dealer Admits to Selling Fentanyl Gel Capsules as a Member of the Master P Drug Trafficking OrganizationRead the Press Release
Baltimore, Maryland – Albert Shields, age 52, of Baltimore, Maryland pleaded guilty today to conspiracy to distribute and possess with intent to distribute controlled substances, in relation to the Master P drug trafficking organization operating around Pennsylvania and North Avenues in West Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Secretary Robert Green of the Maryland Department of Public Safety and Correctional Services.
According to his guilty plea, in November 2019, Shields participated in a conspiracy to distribute fentanyl and heroin as a member of the Master P drug trafficking organization (DTO).
As a result of a 2019 OCDETF Strike Force investigation led by the Drug Enforcement Administration, Shields was identified as associates of the Master P DTO. Between October 2019 and April 2020, investigators intercepted DTO communications and observed Shields and other conspirators conducting hand-to-hand drug transactions. The observations and calls, including conversations conducted on Shields’ cell phone, established that the DTO sold narcotics on a daily basis.
As stated in his plea agreement, investigators made several controlled narcotics purchases from conspirators, including Shields, who either advertised that their narcotics were from the Master P DTO or were intercepted discussing drug trafficking. For example, in December 2019, Shields sold 20 gel capsules of fentanyl to an undercover police officer.
In several instances throughout the conspiracy, Shields called co-conspirators to obtain narcotics for transactions and often met his co-conspirators at or near two homes in the 2400 block of Francis Street in Baltimore associated with other DTO members, where Shields would retrieve items. In April 2020, investigators executed search warrants on those two Francis Street residences and recovered hundreds of gel capsules containing approximately 200 grams of a heroin and fentanyl mixture, cutting agents, and drug packaging materials.
Shields faces a maximum sentence of 20 years in prison followed by up to a lifetime of supervised release for conspiracy to distribute and possess with intent to distribute controlled substances. U.S. District Judge James K. Bredar has scheduled sentencing for June 14, 2022 at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces 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 against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended DEA, the Baltimore Police Department, the Baltimore County Police Department, and the Maryland Department of Public Safety and Correctional Services for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Barron thanked Assistant U.S. Attorney Charles D. Austin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/priorities
and https://www.justice.gov/usao-md/community-outreach.
# # #
Virginia Man Pleads Guilty to Attempted Production and Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty last week to attempted production of child pornography and possession of child pornography.
According to court documents, Brian Scott McGalem, 24, repeatedly engaged in sexually explicit discussions with at least six minors where he attempted to persuade several of the victims to produce sexually explicit pictures of themselves and send them to him. At least three of the minor victims were under the age of 12 at the time of the offense. During these discussions, which took place on several social media platforms under the monikers “Random Hipster#2429” and “Sircoolbeans,” McGalem attempted to groom and entice the minors to record themselves engaging in sexually explicit activity and he sent some of the minors sexually explicit images of himself. Moreover, McGalem’s electronic devices contained several images and videos of child sexual abuse material.
McGalem is scheduled to be sentenced on August 17. He faces a mandatory minimum of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney Jonathan S. Keim and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
The Department of Homeland Security, Homeland Security Investigations, continues to attempt to identify additional victims. Anyone with information regarding these crimes is encouraged to e-mail the HSI Tip Line: www.ice.gov/tips or by calling: 1-866-DHS-2-ICE.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-48.
VIPD Crime Prevention Bureau, Project Safe Neighborhoods, and Community Leaders Invite Everyone to Support the Oswald Harris Court Community on St. Thomas with a Walk Through the Neighborhood on Thursday, March 24th a 4:00 p.m.Read the Press Release
St. Thomas, USVI - United States Attorney, Gretchen C.F. Shappert announced today that members of the Virgin Islands Police Department Crime Prevention Bureau, the U.S. Virgin Islands Project Safe Neighborhood initiative, and Community leaders, together with representatives from the neighborhood, will be meeting at Oswald Harris Court on Thursday, March 24th at 4:00 p.m. to walk the neighborhood and hear concerns from community residents.
U.S. Attorney Shappert noted that the Oswald Harris Court community has experienced tragic violence and death in the past several years. “On September 13th of 2020, residents of the Oswald Harris Court community heard gunshots in the vicinity of the basketball court. Moments later, 31-year-old Secori Akeel Elmes was found dead. His tragic death was one of several homicides for that year within the U.S. Virgin Islands,” Shappert said. “Recently, on February 16th, law enforcement officers responded on a report of a large fight and of shots being fired. During which, a 26-year-old man was stabbed in the neck. These senseless acts of violence profoundly impact our community,” said Shappert.
For more information about the Oswald Harris Court walk, please contact 340-244-6539.
Project Safe Neighborhoods (PSN) is a nationwide Department of Justice initiative to reduce gun crime in America through strategic partnerships between federal, local, and community stakeholders. PSN targets gun crime and gun-related violence, while supporting violence reduction strategies and the coordination of community-based partnerships. The goal is to create safer neighborhoods by reducing gun violence and fostering public safety.
United States and Canada Welcome Negotiations of a CLOUD Act AgreementRead the Press Release
The United States and Canada have entered into formal negotiations for a bilateral agreement under the Clarifying Lawful Overseas Use of Data (CLOUD) Act, to enhance the existing robust law enforcement cooperation between the two allies.
Attorney General Merrick Garland welcomed the opening of negotiations.
“The United States looks forward to working with the Government of Canada on negotiating this agreement,” said Attorney General Garland. “Such an agreement, if finalized and approved, would pave the way for more efficient cross-border disclosures of data between the United States and Canada so that our governments can more effectively fight serious crime, including terrorism, while safeguarding the privacy and civil liberties values that we both share. By increasing the effectiveness of investigations and prosecutions of serious crime, including terrorism, in both countries, we seek to enhance the safety and security of citizens on both sides of the U.S.-Canada border.”
The United States enacted the CLOUD Act in 2018 to streamline access to electronic information held by providers that is critical to investigations of serious crime, including terrorism, while maintaining strong protections for the rule of law, privacy, and civil liberties. The act creates a new paradigm: an efficient, privacy and civil liberties-protective approach to ensure effective access to electronic information through executive agreements between the United States and trusted foreign partners. Pursuant to such agreements, legal barriers prohibiting service providers subject to U.S. laws from responding to lawful orders to disclose electronic evidence that are issued by the other party will be lifted, and reciprocal access will be permitted under the laws of the trusted foreign partner.
While such electronic information can currently be sought through the mutual legal assistance (MLA) process, the CLOUD Act provides an alternative expedited framework for obtaining it while protecting privacy and civil liberties. The number of MLA requests for electronic information held by service providers in the United States has increased dramatically in recent years, straining resources and slowing response times under the current MLA process. The CLOUD Act addresses delays in that process by providing an additional path for trusted partner countries to obtain electronic information.
For more information on the CLOUD Act, visit: https://www.justice.gov/dag/cloudact and https://www.justice.gov/dag/page/file/1153466/download.
United States Attorney’s Office Announces Partnership with Special Inspector General for Pandemic Recovery to Address FraudRead the Press Release
OKLAHOMA CITY – United States Attorney Robert J. Troester and Special Inspector General Brian D. Miller of the Office of the Special Inspector General for Pandemic Recovery (SIGPR) jointly announced today that their offices have entered into a Memorandum of Understanding (MOU) to further strengthen and enhance the already existing cooperative efforts to investigate and prosecute fraud involving loans, loan guarantees and other relief made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals.
"It is regrettable that the government relief programs provided by Congress to aid those in need, as a result of the pandemic, have been exploited by fraud," said U.S. Attorney Troester. "We have already been working closely with SIGPR to address these fraudulent schemes. This partnership with SIGPR strengthens and enhances that on-going effort."
"Our partnership with the U.S. Attorney’s Office for the Western District of Oklahoma has already produced results," said Special Inspector General Miller. "We continue to work together to hold accountable those who would misuse pandemic funds meant to support vulnerable businesses and individuals in their time of need."
The MOU outlines four key objectives: (1) Provide a coordinated response to CARES Act-funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; (2) facilitate legal process, case intake, and swift prosecution of CARES Act-related fraud; (3) link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and (4) deter future CARES Act funding fraud through an enhanced awareness of criminal and civil penalties and successful prosecution of individuals and companies involved in CARES Act related financial fraud. The partnership will help ensure regular communication and coordination with regulators and law enforcement so that just results can be achieved through the strategic use of criminal and civil remedies to address fraudulent schemes.
Oklahomans who believe they are victims or witnesses of fraudulent activity related to the pandemic should report it to the following:
- SIGPR Hotline Complaint
- SIGPR Whistleblower Complaint
- FBI’s Internet Crime Complaint Center
- For more information from the Department of Justice about reporting frauds related to the pandemic, see https://www.justice.gov/coronavirus
Two admit to trafficking $29M in methRead the Press Release
McALLEN, Texas – Two Houston-area residents have pleaded guilty to possessing with intent to distribute 777 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Eduardo Figueroa Jr, 26, Cleveland, and Cynara Lucia Sarmiento, 23, Conroe, pleaded guilty to both counts of possession with intent to distribute meth.
Figueroa hired Sarmiento as his personal assistant and tasked her with leasing the warehouse space and forming Hive Logistics, a business warehouse located in Houston.
On May 12, 2021, authorities executed a search at the location and discovered 777 kilograms of meth, 10 kilograms of cocaine, ledgers, two pistols and five magazines. The meth was located inside metal barrels marked as mango puree.
As part of the plea, Figueroa admitted the meth was part of a larger shipment he had received, of which approximately 800 kilograms had already been delivered to several individuals. Sarmiento admitted to creating a ledger for the drugs and delivering them on at least one occasion with Figueroa.
The estimated street value of the meth is $29 million.
Sentencing has been set for June 1 before U.S. District Judge Ricardo H. Hinojosa. At that time, Figueroa and Sarmiento each face up to life in prison and a possible $10 million maximum fine.
Figueroa has been and will remain in custody pending that hearing, while Sarmiento was permitted to remain on bond.
This case is part of an exportation and straw purchasing of firearms investigation from March 2021 in which where Figueroa was identified as a recruiter. He also pleaded guilty to conspiracy to straw purchase five shotguns on Nov. 22, 2021.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia is prosecuting the case.
The U.S. and Canada Reestablish the Cross-Border Crime ForumRead the Press Release
Guided by our shared commitment outlined in President Biden and Prime Minister Trudeau’s February 2021 Roadmap for a Renewed U.S.-Canada Partnership to re-establish the Cross-Border Crime Forum (CBCF), the Attorney General of the United States, Merrick Garland, and the U.S. Secretary of Homeland Security, Alejandro N. Mayorkas, along with Canada’s Minister of Justice and Attorney General, David Lametti, and Minister of Public Safety, Marco Mendicino, met today in Washington, D.C. to discuss how to enhance collaboration between our two countries to counter cross-border crime and make our communities safer.
Cybercrime
Given the interconnectedness of U.S. and Canadian industry and economies, we affirm our shared commitment to work bilaterally to combat common cyber threats, such as ransomware attacks, and to strengthen critical infrastructure cyber security and resilience. We will work together to improve coordination around reporting of ransomware attacks that can affect cross-border critical infrastructure. Further, we will identify and implement options to strengthen sectors of our economies that are increasingly targeted by criminals and to implement effective responses. We have agreed to promote the adoption of best practices on cyber hygiene to help defend against these threats as well as provide stakeholders with the tools needed to effectively and rapidly report cyber incidents. We are working vigilantly to protect the cybersecurity of our critical infrastructure sectors given Russia’s further invasion of Ukraine. We also reiterated our commitment to work together through the G7+ REPO Task Force to locate and freeze virtual and physical assets of sanctioned Russian individuals and entities, and to forfeit the proceeds of kleptocracy or other crimes.
We welcomed negotiations for a potential bilateral agreement in relation to the U.S. Clarifying Lawful Overseas Use of Data Act (CLOUD Act). Such an agreement, if finalized and approved, would allow Canadian and U.S. investigative authorities to, more efficiently and effectively, access communications and associated data in the other country when this information is needed for the prevention, detection, investigation, and prosecution of serious crime, such as terrorism, child sexual exploitation and abuse, and cybercrime, while respecting privacy and civil liberties.
Violent Extremism
Violent extremism poses a real and ongoing threat to our communities, and we remain committed to addressing it in all its forms. We applaud the ongoing efforts of the bilateral working group established under the Roadmap to enhance cooperation to counter exploitation of social media, strengthen threat-related information sharing, and improve our respective prevention strategies to address violent extremism in both countries. We will continue to advance these efforts and to counter the rise of violent extremism while staying vigilant against the threat of international terrorism. In doing so, we recognize that due process, respect for the rule of law, and the protection of human rights are critical to the success of these efforts.
Enhancing Public Safety
Our two countries have longstanding and effective bilateral cooperation on law enforcement issues. These partnerships strengthen our ability to maximize law enforcement resources and make our communities safer. As partners, we must adapt law enforcement efforts and information sharing as priority areas evolve and new challenges arise, including, but not limited to facilitating investigations, and to improving prosecutorial processes. We are committed to combatting transnational crime such as human smuggling across our shared border. We are equally committed to minimizing ongoing threats posed by serious offenders, including convicted child sex offenders, by exploring actions we can take to improve reciprocal information sharing processes.
Reducing Firearms Violence
To keep our communities safe and secure, it is essential to reduce firearms violence on both sides of the border. We reiterate our commitment to advance our shared understanding of the threat posed by firearms violence and to work collaboratively, including sharing data, to reduce cross-border firearms smuggling and trafficking. Our law enforcement agencies will leverage their collective resources, including intelligence, to identify the source and movement of unlawful firearms into our countries, including those moving across our shared border.
Access to Justice
The United States and Canada are committed to strengthening and expanding access to justice by changing policies and practices that lead to inequality and injustice for marginalized and underserved communities in our countries. Our respective Access to Justice offices will work together and with key stakeholders toward meeting the goal of the United Nations 2030 Agenda “to leave no one behind.” We have agreed to discuss our respective criminal justice system data collection and strategies to overcome systemic racial inequality, discrimination, and overrepresentation within the criminal justice system. We will also share research, innovative data collection techniques, and the use of data science to inform our legislation and policies. These discussions will support our collective efforts to realize the United Nations Sustainable Development Goals (UNSDGs), in particular SDG16, which seeks to advance peaceful, just, and inclusive societies and equal access to justice for all.
------
The United States and Canada reiterated our commitment to advance law enforcement cooperation between our two countries and look forward to Canada hosting the next CBCF in 2023.
Ten Texas Doctors and a Healthcare Executive Agree to Pay over $1.68 Million to Settle Kickback AllegationsRead the Press Release
SHERMAN, Texas – Ten additional Texas doctors and a healthcare executive have agreed to pay a total of $1,680,430 to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department’s investigations of and litigation against other parties, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
“There is nothing more paramount to justice than holding all individuals accountable for committing and profiting from healthcare fraud, no matter their station in life,” said U.S. Attorney Brit Featherston. “These additional settlements with these physicians and another healthcare executive exude our office’s continued dedication to pursuing all individuals who have tried to disguise their illegal kickback schemes under a fig-leaf of legitimacy through purported investment opportunities in order to enrich themselves at the expense of taxpayer-funded healthcare programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that ten Texas doctors violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from eight management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital d/b/a Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and/or Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the remuneration to certain doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.
- Tamar Brionez, M.D., of Spring, Texas, agreed to pay $85,006 to settle allegations that from March 14, 2016 to March 16, 2017 she received kickbacks from an MSO, Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
- Gary Goff, M.D., of Dallas, Texas, and two affiliated entities, Gary Goff, MD, PA and DFW Primary Medical Alliance, LLC, agreed to pay $454,088 to settle allegations that from August 5, 2015 to September 7, 2018 he and his entities received kickbacks from two MSOs, Alpha Rise Health, LLC and HALOS Clinical Management, LLC, in exchange for ordering laboratory tests from True Health and Little River.
- John Hierholzer, M.D., of San Antonio, Texas, agreed to pay $24,850 to settle allegations that from May 18, 2015 to February 12, 2016, he received kickbacks from an MSO, Alpha Rise Health, LLC, in exchange for ordering laboratory tests from Boston Heart and Little River.
- Bruce Maniet, D.O., of Bells, Texas, agreed to pay $175,436 to settle allegations that from January 18, 2016 to October 23, 2017 he received kickbacks from two MSOs, Ascend MSO of TX, LLC and Herculis MG LLC, in exchange for ordering laboratory tests from Boston Heart and Little River.
- Huy Chi Nguyen, M.D., of Arlington, Texas, agreed to pay $211,821 to settle allegations that from October 30, 2015 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering laboratory tests from True Health and Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Dung Chi Nguyen, M.D., of Arlington, Texas, agreed to pay $211,721 to settle allegations that from November 4, 2015 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering laboratory tests from True Health and Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Rakesh Patel, D.O., of Houston, Texas, agreed to pay $174,539 to settle allegations that from August 25, 2015 to April 19, 2017 he received kickbacks from an MSO, SYNRG Partners LLC, in exchange for ordering laboratory tests from True Health and Little River.
- Cuong Trinh, M.D., of Houston, Texas, agreed to pay $45,056 to settle allegations that from July 28, 2015 to August 30, 2016 she received kickbacks from an MSO, SYNRG Partners LLC, in exchange for ordering Boston Heart laboratory tests from Little River.
- Randall Walker, M.D., of Magnolia, Texas, agreed to pay $60,898 to settle allegations that from November 7, 2014 to August 28, 2015 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
- Michael Whiteley, D.O., of Tomball, Texas, agreed to pay $52,015 to settle allegations that from January 5, 2015 to July 10, 2015 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
As part of their settlements, the ten physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.
In addition, the United States announced a settlement with Brett Markowitz, the founder and CEO of Florida Rejuvenation Holdings, LLC, which operates medical practices in Tampa, Florida (collectively, the Tampa Practices). From October 18, 2016 through February 19, 2018, True Health representatives allegedly arranged for True Health to pay for each patient that physicians at the Tampa Practices referred to True Health for clinical laboratory services. True Health allegedly initially paid $25 per referral to The Blood Spot, Inc. (TBS), a company associated with and controlled in part by a True Health representative, and True Health allegedly subsequently paid $35 per referral to Express Mobile Labs, LLC (EML), a company associated with and controlled in part by Markowitz. True Health, TBS, EML, and Markowitz allegedly disguised the payments as purported processing and handling (P&H) fees. As alleged, True Health and Markowitz knew and intended that TBS and EML would pay some or all of True Health’s P&H fee payments to Markowitz, directly or indirectly, in cash or in kind. Pursuant to the alleged arrangement, True Health billed the resulting claims to Medicare and other federal healthcare programs. Under the terms of the settlement agreement, Markowitz agreed to pay $185,000 and to cooperate with the Department’s investigations of and litigation against other parties.
“Health care providers engaging in kickback schemes undermine both the public’s trust in medical institutions and the financial integrity of federal health care programs. Medical decision-making should be based on the well-being of patients, rather than the desire for ill-gotten profits,” said HHS-OIG Special Agent in Charge Miranda L. Bennett. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”
“As the investigative arm of the DoD Office of Inspector General, the Defense Criminal Investigative Service (DCIS) and our colleagues work hard to hold accountable those who undermine Federal health care programs such as TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s announcement is another example of those efforts in making the Government, and ultimately taxpayer, as whole as possible.”
“These additional settlements send a clear message that all who would seek to defraud federal healthcare programs will be held accountable,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to enforce the Stark Law and the Anti-Kickback Statute and act as a safeguard for taxpayer-funded veteran healthcare programs.”
The civil settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. As a result of its efforts, the United States has recovered over $29.6 million relating to conduct involving Boston Heart, True Health, and Little River, including False Claims Act settlements with seventeen physicians, two healthcare executives, and one laboratory. This matter and the related matters were handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
####
Sioux City Man Off to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced March 15, 2022, in federal court in Sioux City, to more than 7 and ½ years.
Daniel Dickey, 34, from Sioux City, Iowa, pled guilty on October 18, 2021, to conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that between December 2020 and April 2021, Dickey and others conspired to distribute over 30 pounds of methamphetamine in the Sioux City and surrounding area. Dickey was recruited to assist in the receipt of multiple shipments of liquid methamphetamine for a Texas-based methamphetamine distribution conspiracy. The Texas distribution conspiracy involved importation of liquid methamphetamine (for lab-based meth conversion) plus traditional vehicle transport of methamphetamine from Mexico to Texas to Iowa to South Dakota. In March and April of 2021, law enforcement conducted multiple controlled drug/money transactions with Dickey in Sioux City, Iowa. These transactions resulted in the seizure of more than one pound of methamphetamine, a sizable amount of liquid ready for chemical conversion into methamphetamine, and about $40,000 in drug proceeds from Dickey. Dickey also admitted to wiring money from drug sales to sources in Texas and Mexico at the request of another.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Dickey was sentenced to 93 months’ imprisonment and must serve a three year term of supervised release following imprisonment. There is no parole in the federal system. Dickey remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4042. Follow us on Twitter @USAO_NDIA.
Russian National Indicted in East Texas for Cyber Hacking EnterpriseRead the Press Release
TYLER, Texas –A 23-year-old Russian man has been indicted in the Eastern District of Texas for offenses related to operating a cyber-criminal marketplace that sold thousands of stolen login credentials, personal identifiable information, and authentication tools, announced Eastern District of Texas U.S. Attorney Brit Featherston.
Igor Dekhtyarchuk, a resident and national of the Russian Federation (Russia), was named in an indictment returned by a federal grand jury on March 16, 2022, charging him with offenses related to operating a cyber-criminal marketplace that sold thousands of stolen login credentials, personal identifiable information, and authentication tools.
According to the indictment, Dekhtyarchuk operated Marketplace A, which claimed to have sold access to more than 48,000 compromised email accounts, more than 39,000 compromised online accounts, and averaged approximately 5,000 daily visitors. Marketplace A specialized in the sale of unlawfully obtained access devices for compromised online payment platforms, retailers, and credit card accounts, including providing the data associated with those accounts such as names, home addresses, login credentials, and payment card data for the victims, who are the actual owners of those accounts. Marketplace A’s business is known as a “carding shop” in the cyber-criminal world.
Dekhtyarchuk was the administrator of Marketplace A and was a Russian hacker who first appeared in hacker forums in November 2013 under the alias “floraby.” Dekhtyarchuk began advertising the sale of compromised account data in Russian-language hacker forums in April 2018 and opened Marketplace A in May 2018. Dekhtyarchuk immediately began advertising Marketplace A and the products it sold in May 2018.
A potential customer who visited Marketplace A to purchase access devices for compromised accounts could select different products just as in a legitimate web store. The options included various combinations of online and credit card accounts for the same victim. For example, one option allowed Dekhtyarchuk’s customers to purchase the information to unlawfully access two online retail accounts plus receive credit card information for the same victim. Some options were broken down by known account balances, which were sold at different price points.
Dekhtyarchuk also sold the usage, in seven-day rental increments, of a program called “[Company A] Auth 1.0,” which was a downloadable software program that the customer could use to input the stolen access devices, and using the provided cookie, to access the compromised Company A accounts.
Beginning in March 2021 and ending in July 2021, the FBI through an online covert employee (OCE) made thirteen purchases of access devices from Dekhtyarchuk while accessing Marketplace A from the Eastern District of Texas. Each purchase varied in number of accounts, ranging from three to twenty accounts, resulting in access devices purchased for a total of 131 accounts. The OCE received the purchased access devices via link or Telegram messenger service shortly after completing each purchase.
Dekhtyarchuk has been placed on the FBI's Cyber Most Wanted List.
“This case exemplifies the need for all of us, right now, to take steps to protect our online identity, our personal data, and our monetary accounts,” said U.S. Attorney Brit Featherston. “Cyber-criminals are lurking behind the glow of computer screens and are harming Americans. These investigations require dedicated professionals who work tirelessly to stop thieves that steal from unknowing innocent people. To those who dedicate their lives to stopping cyber-criminals, we thank you.”
“The cyber-criminal marketplace operated by Dekhtyarchuk promoted and facilitated the sale of compromised credentials, personally identifiable information (PII), and other sensitive financial information,” said FBI Houston Special Agent in Charge Jim Smith. “Cyber-criminal actors behind these marketplaces go to great length to obfuscate their true identities and often utilize other sophisticated methods to further anonymize their activities. Success in these complex investigations is dependent on teamwork and collaboration between the FBI, our international partners, and our private sector partners. It is only through our commitment, coordinated efforts and strategic partnerships that we will be able to defeat the cyber threat.”
If convicted, Dekhtyarckuk faces up to 20 years in federal prison. A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation Houston Cyber Task Force with the assistance of the FBI Dallas Field Office, the FBI Cyber Division, the National Cyber-Forensics & Training Alliance, the FBI Legal Attaché Riga office, and the State Police of Latvia. This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.
###
Rochester Man Sentenced to 204 Months in Prison for Producing Child Pornography via SnapchatRead the Press Release
MINNEAPOLIS – A Rochester man was sentenced today to 204 months in prison, followed by 25 years of supervised release, and ordered to pay $5,000 to the Domestic Trafficking Victims Fund, for producing sexually explicit images and videos of a minor. Acting U.S. Attorney Charles J. Kovats made the announcement after Chief U.S. District John R. Tunheim sentenced the defendant.
According to court documents, between November 8, 2020, and January 8, 2021, Arkady Pavlovich Pichurin, 26, sexually exploited a minor who was between the ages of nine and 10 years old at the time. Pichurin, who contacted the minor using a variety of instant messaging and texting services, including Snapchat, lied about his age and identity to carry out his sexual exploitation of the minor. Pichurin admitted to using similar tactics to sexually exploit and produce pornographic images and videos of more than 20 minors. Pichurin also had thousands of images depicting sexual abuse of infants and toddlers and bestiality.
On September 7, 2021, Pichurin pleaded guilty to one count of producing sexually explicit images and videos of a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the FBI and the Rochester Police Department, with substantial assistance from the Olmsted County Attorney’s Office.
Assistant U.S. Attorney Alexander D. Chiquoine prosecuted the case.
###
Readout of U.S. Attorney General Merrick B. Garland’s Participation in Reestablishing the United States-Canada Cross-Border Crime ForumRead the Press Release
This afternoon U.S. Attorney General Merrick B. Garland, along with U.S. Secretary of Homeland Security (DHS) Alejandro Mayorkas, met in Washington, D.C. with Canada’s Minister of Justice and Attorney General, David Lametti and Canada’s Minister of Public Safety, Marco Mendicino, to reestablish the Cross-Border Crime Forum (CBCF).
Today’s meeting marked the first principal-level meeting of the CBCF in more than a decade and focused upon the key law enforcement issues highlighted in the Roadmap for a Renewed U.S.-Canada Partnership, a blueprint announced in February 2021 by President Biden and Prime Minister Trudeau to guide a renewed U.S.-Canada partnership.
The CBCF was first launched in April 1997 just as Attorney General Garland’s last tour at the Justice Department was coming to a close. For nearly 25 years, the CBCF served as the principal forum for bilateral law enforcement cooperation between the United States and Canada. Under the leadership of the Attorney General, the Secretary of DHS, the Canadian Minister of Public Safety, and the Canadian Minister and Attorney General of the Department of Justice, the reestablished CBCF brings together senior law enforcement officials and prosecutors to address a number of cross-border issues.
“The Justice Department has no higher priority than keeping the American people safe,” said Attorney General Merrick B. Garland. “Our ability to fulfill that obligation depends upon our cooperation with trusted law enforcement agencies both here at home and around the world. Canada is our indispensable friend and partner in that effort. By reestablishing the United States-Canada Cross-Border Crime Forum, we are deepening cooperation on a number of law enforcement challenges — from combatting cybercrime to violent crime and from disrupting terrorist plots and human trafficking. I look forward to continuing to work with our Canadian law enforcement partners in advancing our shared interests and upholding our shared values.”
During today’s constructive dialogue, the leaders discussed enhancing collaboration to counter cybercrime, including by stepping up joint efforts to counter ransomware attacks, and to accelerate our joint efforts to freeze and seize key assets belonging to sanctioned Russian oligarchs worldwide. The leaders also discussed their shared commitment to strengthening information sharing in order to counter domestic and foreign terrorism; combat human trafficking and smuggling threats across North America; and disrupt gun trafficking and smuggling.
In addition, the leaders discussed their shared commitment to increasing access to justice for all, including by tackling racial inequality and discrimination in criminal justice systems.
“As the only agency in our federal government that bears the name of a value, the Justice Department has a unique mission both here at home and around the world,” said Associate Attorney General Vanita Gupta, who joined Attorney General Garland for the bilateral talks on access to justice. “Justice exists only if it is accessible to all. I am grateful for the close and deepening cooperation between the Department’s Office for Access to Justice and Canada’s Access to Justice Secretariat to advance innovative effective strategies to expand equal access to justice for all.”
Alongside Secretary Mayorkas and Associate Attorney General Gupta, the Attorney General was joined by several senior Justice Department officials, including Assistant Attorney General Matt Olsen of the National Security Division.
Prior Felon Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Joseph Weathers, III, 29, of Rochester, NY, pleaded guilty to possession with intent to distribute fentanyl and being a felon in possession of a firearm and ammunition before U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that in February 2013 and June 2014, Weathers was convicted in Monroe County Court of weapons and robbery charges and as a result is legally prohibited from possessing a firearm and ammunition. In the early morning hours of July 17, 2021, while responding to a call of shots fired in the area of 9 Lime Street, Rochester Police Officers observed drugs and drug paraphernalia and encountered Weathers at the top of the stairs of the residence. After securing the location, officers executed a search warrant and recovered a 9mm pistol, a loaded magazine, and loose ammunition. The firearm was reported stolen in September 2020 from Gates, NY. In addition, officers also recovered approximately 10.6 grams of fentanyl, 4.2 grams of cocaine, 55.6 grams of crack cocaine, and approximately $537 in United States currency.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David Smith and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
Sentencing is scheduled for July 15, 2022, at 3:00 p.m. before Judge Geraci.
# # # #
Pottsville Man Charged with Obstructing the MailRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johnathan Sherer, age 29, of Pottsville, Pennsylvania, was charged on March 21, 2022, by criminal information with obstruction of the mail.
According to United States Attorney John C. Gurganus, the information alleges that in 2019 through October 2020, Sherer, at the time a postal employee, delayed the delivery of over 3,000 pieces of mail by failing to deliver it and keeping it in his possession.
The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
The maximum penalty under federal law for this offense is 6 months of 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Possession of Methamphetamine Sends Shreveport Man to PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Chico Terrell Bell, 41, of Shreveport, Louisiana, has been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 112 months (9 years, 4 months) in prison, followed by 4 years of supervised release, for possession with intent to distribute 5 grams or more of methamphetamine.
Bell pleaded guilty to the charge on October 14, 2021. According to information presented in court, law enforcement agents with the U.S. Drug Enforcement Administration (DEA) Narcotics Task Force executed a search warrant on September 2, 2020 at Bell’s home in Shreveport. Bell was found inside the home and had one bag of methamphetamine, methamphetamine tablets, and a large sum of cash on his person. A search of the residence resulted in the recovery of two digital scales, nine bags of methamphetamine tablets containing approximately 914 tablets, two additional bags containing approximately 58 grams of methamphetamine, and a bag containing 9mm ammunition.
This case was investigated by the DEA and Caddo Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
# # #
Pittsburgh Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Walter Brunson, Jr., 52, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute a quantity of cocaine from June of 2020 through August of 2020, before United States District Judge J. Nicholas Ranjan. Brunson is one of 20 defendants charged in the Superseding Indictment returned in this case.
In connection with the guilty plea, the court was advised that in 2020, the Federal Bureau of Investigation began investigating a drug trafficking organization, of which Brunson was a member, that operated throughout Washington County, Pennsylvania; Pittsburgh, Pennsylvania; and New Jersey. Beginning in April of 2020 and continuing through October of 2020, the FBI received authorization to conduct a Title III wiretap investigation into the organization. Brunson was intercepted agreeing to sell distribution quantities of cocaine to his coconspirator and codefendant. In addition to the intercepted communications, agents seized cocaine, cocaine base, heroin, fentanyl, firearms, and bulk United States Currency from members of the organization, including Brunson. Specifically, on November 19, 2020, investigators executed a search warrant at Brunson’s residence and recovered distribution quantities of cocaine.
Judge Ranjan scheduled sentencing for July 18, 2022. The law provides for a total sentence of not more than 20 years’ imprisonment, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Mark V. Gurzo and Jerome A. Moschetta are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Brunson. 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.Phoenix Man Sentenced to 8 Years for Possessing Methamphetamine with Intent to DistributeRead the Press Release
PHOENIX, Ariz. – Angel Joe Valenzuela, 50, of Phoenix, Arizona, was sentenced yesterday by U.S. District Judge Diane J. Humetewa to eight years in prison, followed by four years of supervised release.
On February 4, 2021, Valenzuela was found in possession of more than five grams of actual methamphetamine, several small baggies, multiple scales, cell phones, and a Ruger pistol. This was the first of three occasions in 2021 where Valenzuela was caught on the Gila River Indian Community with illegal drugs in quantities consistent with distribution. On December 21, 2021, Valenzuela pleaded guilty to possession of five grams or more of actual methamphetamine with the intent to distribute.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00682-PHX-DJH
RELEASE NUMBER: 2022-029_Valenzuela# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Notorious Gang Leader and Members of His Enterprise Convicted on Racketeering Charges in the U.S. Virgin IslandsRead the Press Release
WASHINGTON – Three members of a violent criminal gang were convicted today in the U.S. Virgin Islands (USVI) by a federal jury for RICO conspiracy, murder, attempted murder, robbery, and drug dealing.
According to court documents and the evidence presented at trial, the Paul Girard criminal enterprise committed murders and was involved in other acts of violence, targeted jewelry stores and banks for robberies, and distributed illegal drugs.
“These defendants terrorized the U.S. Virgin Islands through violence and theft,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s verdicts, and the guilty pleas of seven additional co-defendants in this case, demonstrate that the Department of Justice, and our law enforcement partners, are committed to combating the threat of gang violence.”
“Today’s verdict makes clear that the people of the Virgin Islands will not tolerate violent criminal activity directed against their fellow islanders,” said U.S. Attorney Gretchen Shappert for the U.S. Virgin Islands. “These convictions mark the dismantlement of the Paul Girard Criminal Enterprise. This was a team effort. We are hugely grateful for the dedication of the prosecution team.”
"The use of violence and intimidation by these gang members to try and assert power over the people of the Virgin Islands failed,” said Assistant Director Luis Quesada of the FBI's Criminal Investigative Division. “These criminals thought they were untouchable, but today's verdict demonstrates the ongoing commitment of the FBI to investigate and disrupt criminal enterprises like this and demand justice for their victims."
“There is no greater threat to our nation than that of violence and fear in our communities,” said Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office. “With this verdict, the people of the U.S. Virgin Islands can rest assured in the FBI’s commitment to work aggressively to curtail violence in our streets. I’d like to thank our local partners for their work on this case and their continued support to the FBI mission.”
Evidence presented at trial showed that Paul Girard, aka Bogus, 34, of St. Croix, USVI, was the leader of the group. Girard ordered shootings against rival gang members, as well as individuals he believed had stolen from or otherwise disrespected the gang. Girard planned, and his crew executed, several armed robberies including of the Divi Carina Bay Casino in St. Croix, as well as Gems and Gold Corner jewelry store, Signatures Jewelry, and 3Gs Jewelry and Repair located in St. Thomas. Most of the criminal activity was orchestrated by Girard from prison, where he is currently serving sentences for multiple prior criminal convictions.
According to evidence presented at trial, Tyler Eugene, aka Lucc, 24, of St. Croix, committed acts of violence on behalf of the gang, including murdering a rival gang member outside a convenience store at Girard’s direction. Kareem Harry, aka Crumbull, 34, of St. Croix, committed acts of violence on behalf of the gang including participating in the murder of a victim who was believed to have stolen money from the Girard gang. Harry also set up the shooting death of a rival gang member outside of the victim’s child’s daycare.
Girard was convicted of racketeering conspiracy, drug conspiracy, three counts of murder in aid of racketeering, three counts of the use of a firearm resulting in death, three counts of attempted murder in aid of racketeering, three counts of Hobbs Act Robbery, one count of kidnapping in aid of racketeering, and four counts of using of a firearm during a crime of violence. Eugene was convicted of racketeering conspiracy, one count of murder in aid of racketeering, one count of the use of a firearm resulting in death, two counts of attempted murder in aid of racketeering, and two counts of using a firearm during a crime of violence. Harry was convicted of racketeering conspiracy, two counts of murder in aid of racketeering, two counts of use of a firearm resulting in death, and one count of kidnapping in aid of racketeering. Because each defendant was convicted of murder in aid of racketeering, each faces a mandatory sentence of life in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven additional defendants indicted in the same case have already pleaded guilty to various racketeering charges.
The case was investigated by the FBI and the Virgin Islands Police Department.
Trial Attorney Christopher Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Meredith Edwards for the U.S. Virgin Islands prosecuted the case.
Notorious Gang Leader and Members of His Enterprise Convicted on Racketeering Charges in the U.S. Virgin IslandsRead the Press Release
Three members of a violent criminal gang were convicted today in the U.S. Virgin Islands (USVI) by a federal jury for RICO conspiracy, murder, attempted murder, robbery, and drug dealing.
According to court documents and the evidence presented at trial, the Paul Girard criminal enterprise committed murders and was involved in other acts of violence, targeted jewelry stores and banks for robberies, and distributed illegal drugs.
“These defendants terrorized the U.S. Virgin Islands through violence and theft,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s verdicts, and the guilty pleas of seven additional co-defendants in this case, demonstrate that the Department of Justice, and our law enforcement partners, are committed to combating the threat of gang violence.”
“Today’s verdict makes clear that the people of the Virgin Islands will not tolerate violent criminal activity directed against their fellow islanders,” said U.S. Attorney Gretchen Shappert for the U.S. Virgin Islands. “These convictions mark the dismantlement of the Paul Girard criminal enterprise. This was a team effort. We are hugely grateful for the dedication of the prosecution team.”
“The use of violence and intimidation by these gang members to try and assert power over the people of the Virgin Islands failed,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These criminals thought they were untouchable, but today's verdict demonstrates the ongoing commitment of the FBI to investigate and disrupt criminal enterprises like this and demand justice for their victims."
“There is no greater threat to our nation than that of violence and fear in our communities,” said Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office. “With this verdict, the people of the U.S. Virgin Islands can rest assured in the FBI’s commitment to work aggressively to curtail violence in our streets. I’d like to thank our local partners for their work on this case and their continued support to the FBI mission.”
Evidence presented at trial showed that Paul Girard, aka Bogus, 34, of St. Croix, USVI, was the leader of the group. Girard ordered shootings against rival gang members, as well as individuals he believed had stolen from or otherwise disrespected the gang. Girard planned, and his crew executed, several armed robberies including of the Divi Racino Casino in St. Croix, as well as Gems and Gold Corner jewelry store, Signatures Jewelry, and 3Gs Jewelry and Repair located in St. Thomas. Most of the criminal activity was orchestrated by Girard from prison, where he is currently serving sentences for multiple prior criminal convictions.
According to evidence presented at trial, Tyler Eugene, aka Lucc, 24, of St. Croix, committed acts of violence on behalf of the gang, including murdering a rival gang member outside a convenience store at Girard’s direction. Kareem Harry, aka Crumbull, 34, of St. Croix, committed acts of violence on behalf of the gang including participating in the murder of a victim who was believed to have stolen money from the Girard gang. Harry also set up the shooting death of a rival gang member outside of the victim’s child’s daycare.
Girard was convicted of racketeering conspiracy, drug conspiracy, three counts of murder in aid of racketeering, three counts of the use of a firearm resulting in death, three counts of attempted murder in aid of racketeering, three counts of Hobbs Act Robbery, one count of kidnapping in aid of racketeering, and four counts of using of a firearm during a crime of violence. Eugene was convicted of racketeering conspiracy, one count of murder in aid of racketeering, one count of the use of a firearm resulting in death, two counts of attempted murder in aid of racketeering, and two counts of using a firearm during a crime of violence. Harry was convicted of racketeering conspiracy, two counts of murder in aid of racketeering, two counts of use of a firearm resulting in death, and one count of kidnapping in aid of racketeering. Because each defendant was convicted of murder in aid of racketeering, each faces a mandatory sentence of life in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven additional defendants indicted in the same case have already pleaded guilty to various racketeering charges.
The case was investigated by the FBI and the Virgin Islands Police Department.
Trial Attorney Christopher Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Meredith Edwards for the U.S. Virgin Islands prosecuted the case.