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22 April 2022
Battleboro Man Sentenced to More Than 13 Years for Heroin and Fentanyl TraffickingRead the Press Release
WILMINGTON, N.C. – A Battleboro, North Carolina man was sentenced today to 160 months in prison for Distribution of a Quantity of Heroin and a Quantity of Fentanyl.
According to court documents and information presented at the sentencing hearing, Dwight Harmon, also known as “Jersey,” 54, was named in an Indictment filed on May 4, 2021 charging him with Distribution of a Quantity of Heroin (Counts One and Two), Distribution of a Quantity of Fentanyl (Count Three), and Distribution of a Quantity of Heroin and a Quantity of Fentanyl (Counts Four, Five, and Six). On December 7, 2021, Harmon entered a plea of guilty to Count Four.
In May 2020, the Nash County Sheriff’s Office received information that Harmon was distributing various controlled substances in the area of Rocky Mount, North Carolina.
Over the next several months, agents investigated the Defendant, and from May through February 2021, a confidential source conducted controlled purchases of heroin and fentanyl from the Defendant.
During the course of the investigation, agents also interviewed several witnesses who explained that Harmon was a high-volume distributor of heroin, as well as other drugs.
The witnesses stated that Harmon was frequently armed with a handgun, and that he threatened to harm others who he believed were cooperating with authorities. According to one witness, Harmon once bragged that he had beaten a murder charge, and that he was not afraid to shoot the police. Another witness stated that Harmon once offered to pay $2,000 to have a potential cooperator killed.
Harmon was determined to be a Career Offender based on prior convictions for Common Law Robbery and Distribute, Dispense, and Possess Controlled Dangerous Substances with Intent to Distribute Within 1,000 Feet of a School. Harmon also had prior convictions for drug offenses, as well as convictions for Aggravated Assault and Assault with a Deadly Weapon Inflicting Serious Injury.
Two related defendants have previously been sentenced:
- James Otis Davis, Jr. (5:20-CR-538-M-1): sentenced to 180 months’ imprisonment.
- Tony Pittman (5:21-CR-274-M-1): sentenced to 150 months’ imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Scott A. Lemmon 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 number 5:21-CR-00198-M-1.
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Athens Owner of Hearing Aid Practice Charged with Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – An Athens-based businessman has been charged with health care fraud, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and TVA-OIG Special Agent in Charge Meagan Sands.
An information filed today in U.S. District Court charges Joshua D. Creasy, 44, of Athens, Alabama, with fifteen counts of health care fraud. Creasy operated One Love Hearing Concepts, a practice with multiple storefront locations that provided hearing aids and other hearing solutions. According to the information, Creasy schemed to defraud insurers into paying for medically unnecessary hearing aids. For example, Creasy provided free products to induce beneficiaries to allow One Love to bill their insurance for hearing aids. He also billed insurance for hearing aids that beneficiaries never received. In some cases insurance was billed for hearing aids for individuals who never visited a One Love location, or for individuals who came in but said they did not want or need the hearing aids.
Creasy has agreed to plead guilty to the charges. A change-of-plea hearing has not yet been scheduled. In a plea agreement also filed today, Creasy stipulated that he will pay forfeiture of $1,000,000 and pay restitution to the victims in the amount of $1,500,000.
The maximum penalty for each count of health care fraud is ten years in prison.
The FBI and TVA-OIG investigated the case, and Assistant U.S. Attorney J.B. Ward is prosecuting it.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Associate of Springfield La Cosa Nostra Sentenced for Ammunition OffenseRead the Press Release
BOSTON – A Springfield man with known ties to organized crime was sentenced yesterday for being a felon in possession of ammunition.
David Cecchetelli, 54, was sentenced by U.S. District Court Judge Patti B. Saris to time served (approximately 62 days in prison) and one year of supervised release to be served in home confinement with electronic monitoring. In December 2021, Cecchetelli pleaded guilty to one count of being a felon in possession of ammunition.
During a search of Cecchetelli’s residence on Dec. 5, 2019, law enforcement found a gun and ammunition in Cecchetelli’s bedroom. The ammunition was concealed under his mattress. Cecchetelli is a known associate of the Genovese LCN in Springfield and was previously convicted of bookmaking with the underboss of the Springfield LCN in 2005. Due to his prior conviction, Cecchetelli is prohibited from possessing firearms and ammunition.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Organized Crime & Gang Unit prosecuted the case.
Armed Career Criminal Sentenced to 15 Years in Prison for Possession of A Loaded FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Deveon Demond Jenkins (29, Ocala) to 15 years in federal prison for possessing a firearm as a convicted felon. Jenkins had pleaded guilty on November 29, 2021.
According to court documents, on April 10, 2020, Jenkins was a passenger in the backseat of an automobile that Ocala Police Department officers stopped for a traffic infraction. After a K-9 signaled the presence of contraband in the car, officers searched the vehicle and discovered at Jenkins’s feet a firearm that they later determined was stolen. DNA testing and recorded jail telephone calls subsequently confirmed that Jenkins had been in possession of the firearm. Jenkins, who has 20 prior felony convictions, is prohibited from possessing firearms under federal law. His numerous prior convictions for the sale of drugs qualify him as an Armed Career Criminal for sentencing purposes.
This case was investigated by the Ocala Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Alison J. Ramsdell Selected as the 44th U.S. Attorney for the District of South DakotaRead the Press Release
Alison J. Ramsdell has taken the oath of office to become the 44th United States Attorney for the District of South Dakota. Ms. Ramsdell was sworn in by U.S. District Judge Roberto A. Lange on April 21, 2022, and her appointment took effect on April 22, 2022.
As U.S. Attorney, Ms. Ramsdell leads an office responsible for prosecuting federal crimes and defending the interests of the United States in the District of South Dakota. Ms. Ramsdell was appointed by the U.S. District Court for the District of South Dakota, and she will serve in this capacity until the vacancy is filled by a Presidentially appointed, Senate-confirmed nominee.
Ms. Ramsdell has served the U.S. Attorney’s Office since September 2014, when she joined the District’s Civil Division as an Assistant U.S. Attorney. In 2016, Ms. Ramsdell was selected to lead the District’s Civil Rights Section. Ms. Ramsdell received her B.A. from Valparaiso University and her J.D. from the University of Iowa School of Law. Following law school, she clerked for the Honorable Karen E. Schreier, District Court Judge, U.S. District Court for the District of South Dakota, and served as the U.S. District Court’s pro se law clerk.
“It is a profound honor to serve the District of South Dakota in this capacity, and I am deeply grateful to be doing the work alongside such exceptional colleagues,” said Ramsdell.
Ms. Ramsdell lives in Flandreau with her husband and two sons.
7 Federal Criminal Cases Charge Drug Dealers Who Allegedly Sold Fentanyl that Caused Deadly Overdoses in Orange CountyRead the Press Release
SANTA ANA, California – Federal authorities today announced seven criminal cases against drug dealers who sold fentanyl-laced narcotics that caused fatal overdoses in Orange County, including one case in which three people died in Newport Beach.
The sweep has resulted in the arrest of six defendants pursuant to federal grand jury indictments or criminal complaints. One charged defendant is a fugitive currently being sought by authorities.
All seven defendants are charged with distribution of fentanyl resulting in death. If convicted of this offense, each defendant would face a mandatory minimum sentence of 20 years in federal prison and a potential sentence of life without parole.
“The opioid crisis has resulted in the widespread distribution of fentanyl and a horrific trail of misery resulting from the untimely death of tens of thousands of Americans each year,” said United States Attorney Tracy L. Wilkison. “These cases highlight two important lessons, with the first being that many street drugs are contaminated with an extremely powerful opioid that often leads to death. The second is that narcotics dealers face severe consequences in federal court when the distribution of their products results in a fatal overdose.”
“Often when we discuss the rampant rise of drug-caused deaths there’s a focus on numbers, but today’s announcement is an important reminder that these numbers are more than that – these are our children, loved ones and friends,” said DEA Los Angeles Special Agent in Charge Bill Bodner. “Fentanyl does not discriminate and it’s affecting every community, ethnicity and generation throughout our country. As we tackle the fentanyl crisis locally, we are intent on bringing justice to victims and their families, while putting drug dealers on notice that even selling one pill can have harsh federal penalties.”
The cases announced today are the result of investigations by the DEA’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker. Since the start of the Overdose Justice program in 2018, the DEA has worked with an ever-expanding list of local police agencies to obtain approximately three dozen federal indictments that specifically charge death resulting from narcotics trafficking.
The victims in these cases are of diverse backgrounds, with two of the deceased victims being minors and one a community college student. In most of the cases, the victims did not know they were ingesting fentanyl, which can be deadly in tiny amounts. Some of the alleged drug traffickers knew or had reason to believe their products contained fentanyl, even though they claimed to be selling other narcotics.
All of the case were filed in United States District Court in Santa Ana and will be prosecuted by the United States Attorney’s Office:
- William Edward Dick Jr., 51, of Costa Mesa was arrested Thursday for allegedly selling fentanyl-laced cocaine that killed three individuals in a Balboa Island house on the night of October 24, 2021. A criminal complaint filed on Wednesday alleges that two couples had gathered in Newport Beach, enjoyed a dinner together, and one of them decided to purchase cocaine for the group. They eventually contacted Dick, who agreed to sell them $200 worth of cocaine, which he delivered to the house where the couples were staying. After snorting the purported cocaine, all four suffered overdoses, and three of the individuals were pronounced dead at house the next morning. Dick, who is currently charged with one count of distribution of fentanyl resulting in death, is scheduled to make his first court appearance this afternoon in United States District Court in Santa Ana. The DEA and the Newport Beach Police Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Bradley Marrett.
- Omar Alejandro Reynoso, 30, of Costa Mesa, was arrested on Monday after a grand jury indicted him last week on two counts of distribution of fentanyl resulting in death. Reynoso allegedly provided counterfeit Xanax pills containing fentanyl to a man and a woman who died in his hotel room in incidents three weeks apart in November 2019. At his arraignment on Tuesday, Reynoso pleaded not guilty and was ordered to stand trial on June 14. A United States magistrate judge ordered Reynoso detained without bond while the case is pending. The DEA and the Costa Mesa Police Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Jake Nare.
- Tyler David Wilkinson, 23, of Santa Ana, was named Wednesday in a four-count federal grand jury indictment that alleges he sold counterfeit oxycodone pills to a 17-year-old victim who died in Lake Forest of a fentanyl overdose. The victim purchased the pills in June 2021 after responding to an advertisement Wilkinson posted on Snapchat, the investigation revealed. Six months before the transaction that led to the teen’s death, Wilkinson allegedly possessed distribution quantities of several types of narcotics, including nearly 1,400 counterfeit oxycodone pills laced with fentanyl. Wilkinson allegedly continued to sell fentanyl-laced pills, even after law enforcement executed a search warrant at his residence. Wilkinson is currently being sought by authorities. The DEA and the Orange County Sheriff’s Department are investigating this case, which is being prosecuted by Assistant United States Attorney Jake Nare.
- Anthony Bernard Fender, 31, of Tustin, was arrested Monday pursuant to a grand jury indictment filed last week that alleges he sold fentanyl powder that resulted in the death of a 40-year-old man. The indictment further alleges that Fender committed the federal offense after being convicted of a drug trafficking crime in Orange County Superior Court in 2013, which, if proven, would subject Fender to a mandatory life sentence. The DEA and the Orange County Sheriff’s Department investigated this matter, which is being prosecuted by Assistant United States Attorney Bradley Marrett.
- Carter Joseph Klein, 25, of Newport Beach, was arrested on April 14 after being named in a one-count indictment that accused him of distributing fentanyl that led to the overdose death of an 18-year-old Orange Coast College student. Klein allegedly sold fentanyl-laced counterfeit oxycodone pills to the victim in February 2021. Klein was arraigned on the indictment on April 15, when he entered a not guilty plea and was ordered to stand trial on June 7. The DEA and Costa Mesa Police Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Rosalind Wang.
- Isai Hernandez Higinio, a.k.a. “Joker,” 23, of Santa Ana, was arrested April 1 pursuant to a grand jury indictment filed last month that alleges he distributed fentanyl in counterfeit Percocet pills to an 18-year-old Tustin resident who died after ingesting the drug. Hernandez was arraigned on April 4, at which time he pleaded not guilty and was ordered held without bond. A trial in this case is scheduled for May 31. The DEA and Orange County Sheriff’s Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Melissa Rabbani.
- Matthew Benjamin Hurley, 24, of Virginia, was arrested January 3 on charges alleging that he distributed fentanyl at a motel in Costa Mesa that resulted in a fatal overdose. Hurley, who has been ordered detained without bond, is scheduled to go on trial on September 27. The DEA and the Huntington Beach Police Department are investigating this case, which is being prosecuted by Assistant United States Attorney Gina J. Kong.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
20th Annual Operation Reach Out Opening Ceremony to Help Mark National Crime Victims’ Rights WeekRead the Press Release
CHARLESTON, W.Va. – National Crime Victims’ Rights Week will be commemorated April 24-30, 2022, and the United States Attorney’s Office for the Southern District of West Virginia is sponsoring its 20th Annual Operation Reach Out Opening Ceremony to promote its observance.
The ceremony will be held at the West Virginia State Capitol on Tuesday, April 26, at 10 a.m. This year’s theme is “Rights, access, equity for all victims,” and underscores the importance of helping crime survivors find their justice by enforcing the rights of victims, expanding access to services, and ensuring equity and inclusion for all.
Stephanie Wilson will share her message of hope and strength for fellow survivors as part of Tuesday’s ceremony. Wilson was only 11 years old when a man posing as a store security guard lured her away from her mother at the South Charleston Target and sexually assaulted her at knifepoint. As a result of his July 2003 crime, the defendant was convicted and sentenced to prison on both federal and state charges. Wilson now advocates for crime victims and encourages them to remember that they are not alone.
“Stephanie is a true profile in courage,” said U.S. Attorney Will Thompson, who will emcee the event. “She has triumphed over a horrific ordeal and her continuing dedication to survivors and their loved ones is an inspiration.”
Thompson will present several awards during the ceremony and is also among the scheduled speakers, who include: West Virginia Supreme Court of Appeals Chief Justice John A. Hutchinson; West Virginia House of Delegates Speaker Roger Hanshaw; West Virginia Legislative Claims Commission Clerk Janet Kawash; and West Virginia Department of Homeland Security Secretary Jeff Sandy.
The ceremony is slated for the State Capitol’s South steps, near Kanawha Boulevard. In the event of inclement weather, the ceremony will be held at the Senate side of the Capitol’s Upper Rotunda.
Each year, the Department of Justice and the United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide in April, to honor victims of crime and those who advocate on their behalf. Operation Reach Out is a collaborative effort involving local advocacy programs that raise awareness of National Crime Victims’ Rights Week and of the various organizations that provide services to crime victims.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. In 1981, President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers.
More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ojp.gov/. You may also contact the U.S. Attorney’s Office, SDWV, Victim Witness Program at (304) 345-2200.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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10 Charged for Illegally Trafficking Corals from the PhilippinesRead the Press Release
ANCHORAGE – A federal grand jury in Alaska indicted three men on felony charges and seven additional individuals on misdemeanor charges related to violations of the Lacey Act and smuggling protected marine corals from the Philippines into the United States for retail sale.
According to court documents, Jerome Anthony Stringfield, 43 of Kissimmee, Florida; Albert B. Correira, 35, of Westport, Massachusetts; and Allen William Ockey, 35, of Long Beach, California, are each charged with felony violations of conspiracy, violations of the Lacey Act and smuggling of corals from the Philippines.
In separate filings, the following individuals are each charged with misdemeanor offenses related to violations of the Lacey Act: Derek M. Kelley, 31 of Elkhart, Indiana; Wayne R. King, 42, of Cabot Arizona; James Knight 47, of Newaygo, Michigan; Valeriy V. Gorbounov, 46 of Morrison, Colorado; Nathan C. Meisner, 35, of Rapid City, South Dakota; Ricky A. Sprires, 34, of Gilbert South Carolina; and Michael J. Lecam, 50, of Providence, Rhode Island.
The indictment alleges that between July 2017 and August 2018, the defendants paid a Philippine national to dive for and collect protected marine corals. The Philippine national would illegally ship the collected coral through common carriers and falsely label the packages. All shipments landed and traveled through Anchorage, Alaska. The defendants would then sell the coral online to coral collectors and hobbyists. The indictment further alleges that some corals were illegally sold in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) which is an international treaty implemented to prevent species from becoming endangered or extinct because of international commercial trade. Additionally, Philippine law prohibits any person to gather, possess, commercially transport, sell or export corals commercially regardless of CITES status. The indictment charges the defendants, through their Philippine supplier, for illegally purchasing and transporting for sale more than 3,000 separate pieces of coral in violation of Philippines and United States law.
The charging document in all 10 cases states that the Republic of the Philippines is one of six countries straddling the Coral Triangle, a 5.4 million-square-kilometer stretch of ocean that contains 75% of the world's coral species, one-third of the Earth's coral reefs and more than 3,000 species of fish. Poaching for corals and other factors have left only 5% of coral reefs in the Philippines in “excellent” condition, with only 1% in a "pristine" state.
The penalties for felony violations of conspiracy to violate the Lacey Act and a violation of the Lacey Act are a maximum term of imprisonment of five years, and a fine of $250,000. The maximum term of imprisonment for smuggling is a term of 20 years, and a fine of $250,000. The maximum penalty for misdemeanor conspiracy to violate the Lacey Act and violating the Lacey Act is up to a year in prison and a fine of $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney John E. Kuhn, Jr. of the District of Alaska made the announcement.
The U.S. Fish and Wildlife Service, Office of Law Enforcement is investigating the case.
Assistant U.S. Attorneys Steven Skrocki and Charise Arce are prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
21 April 2022
Yellowstone Contractor Sentenced to 44 Months on Assault ChargesRead the Press Release
United States Attorney Bob Murray announced today that GREGORY MICHAEL SAMUEL TOTH, age 40, was sentenced for assault with intent to commit a felony at a sentencing hearing held before Federal District Court Judge Nancy D. Freudenthal on April 18, 2022. He was sentenced to 44 months of imprisonment and three years of supervised release, to be served concurrently to a state sentence, and ordered to pay a $500 fine and a $100 assessment.
According to the indictment, on or about October 1, 2021, Toth unlawfully committed an assault with the intent to commit a kidnapping in Yellowstone National Park. Toth worked as a construction contractor in Yellowstone and was temporarily residing in a contractor trailer at the Fishing Bridge RV Park, where the assault took place. He was arrested on October 6, 2021, in Park County, Wyoming.
“Assault is a serious crime regardless of the location but when it occurs in a national park, it becomes a federal felony,” said United States Attorney Bob Murray. “This individual is now serving close to four years in federal prison due to an unnecessary assault on an innocent individual. This type of conviction would not have been possible without the collaborative efforts of our prosecuting attorney and the investigative work of the National Park Service.”
This crime was investigated National Park Service special agents and Yellowstone National Park law enforcement officers. The case was prosecuted by Michael J. Elmore.
Case Number 0:21-cr-00131
For questions relating to Yellowstone National Park, please contact the Public Affairs Office at 307-344-2015 or [email protected].
Woonsocket Drug Runner Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – A Woonsocket woman who acted as a runner for two men convicted of brokering drug deals and supplying fentanyl and crack cocaine has been sentenced to one year and one day in federal prison, announced United States Attorney Zachary A. Cunha.
Natalie Cassidy, 28, pleaded guilty on May 5, 2021, to conspiracy to distribute and to possess with intent to distribute cocaine base; distribution of cocaine base and fentanyl; and possession with intent to distribute fentanyl.
At the time of her guilty plea, Cassidy admitted that, working in conjunction with Juan Batista, 36, of Woonsocket, and Angel Aviles, 33, of Cranston, she delivered crack cocaine and fentanyl to individuals with whom Batista and Aviles brokered drug deals.
Batista and Aviles are awaiting sentencing, having pled guilty to conspiracy to distribute and to possess with intent to distribute cocaine base; distribution of cocaine base and fentanyl; and possession with intent to distribute fentanyl.
A defendant’s sentence is determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The cases are being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force, comprised of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Wilkinsburg Teen Sentenced to 15 Months in Prison for Conspiring to Unlawfully Acquire GunsRead the Press Release
PITTSBURGH, PA -- A resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to 15 months’ imprisonment followed by three years of supervised release on his conviction of conspiracy to commit an offense against the United States, United States Attorney Cindy K. Chung announced today.
United States District Judge Robert J. Colville imposed the sentence on Katrae Smith, age 19, formerly of Pittsburgh PA 15221.
According to information presented to the court, in and around April 2021 and June 2021, Smith conspired with others to obtain firearms using his co-defendant, the “straw purchaser.” The conspirators communicated with each other using their cellular phones on multiple occasions in order to unlawfully acquire firearms. Smith’s offense occurred over several months and resulted in the unlawful acquisition of multiple firearms. The Wilkinsburg Police Department recovered one of those firearms while responding to a 911 call. Smith was found with a loaded Glock model 19x, 9mm caliber pistol near him. A trace of the firearm revealed that his co-defendant had purchased that firearm six days prior.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Smith.
Virginia equipment company owner sentenced, fined $50,000 for role in scheme to defraud Roundup coal mineRead the Press Release
BILLINGS — A Virginia equipment company owner who admitted to defrauding Signal Peak Energy, LLC, which operates a coal mine near Roundup, of nearly $250,000 in an equipment purchase scheme was sentenced today to four years of probation, fined $50,000 and ordered to pay restitution, U.S. Attorney Leif M. Johnson said.
Robert Wayne Ramsey, 56, of Bluefield, Virginia, pleaded guilty in November 2021 to wire fraud.
U.S. District Judge Susan P. Watters presided. Judge Watters ordered Ramsey to pay $246,268 restitution.
In court documents filed in the case, the government alleged that in March 2017, Larry J. Price, Signal Peak’s former vice president of surface operations, also owned Three Solutions, LLC. It was generally known that Signal Peak purchased significant materials through Three Solutions. Ramsey’s company, Peters Equipment Company (PEC), was doing work at Signal Peak and bidding on additional jobs. Ramsey understood that Price had the final say in awarding many of the Signal Peak jobs.
The government further alleged that in March 2017, Price asked Ramsey for help with a business transaction for Signal Peak. Price told Ramsey that Signal Peak needed to purchase equipment manufactured by a third-party distributor with whom Signal Peak’s upper management was unwilling to do business because of a dispute. Price asked if Ramsey, through PEC, would buy the equipment and sell it to Signal Peak in return for a $250,000 markup.
Price later told Ramsey that PEC should not buy the equipment and instead pay Price’s company, Three Solutions, for the price of the equipment while billing Signal Peak for the amount, plus the markup. Ramsey knew Price was using PEC as an intermediary to disguise the source of the equipment. Ramsey understood that he was deceiving certain Signal Peak managers about the source of the equipment and that the managers did not know PEC was being paid an additional $246,134 to serve as an intermediary. Ramsey also knew that Signal Peak would pay $246,134 more for the equipment as a result of making the purchase through PEC.
Price was sentenced in October 2020 to five years in prison for conviction on multiple crimes stemming from a broad corruption investigation into mine management and operations.
Assistant U.S. Attorneys Colin M. Rubich, Zeno B. Baucus and Timothy Tatarka prosecuted the case, which was investigated by the FBI, IRS and Environmental Protection Agency.
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United States Attorney and Benton County Prosecuting Attorney Announce Appointment of Deputy Prosecutor Laurel J. Holland as a Special Assistant United States AttorneyRead the Press Release
Richland, WA – United States Attorney Vanessa R. Waldref and Benton County Prosecuting Attorney Andy Miller jointly announced today that Laurel J. Holland, who serves as a Deputy Prosecuting Attorney in Benton County, has been appointed as a Special Assistant United States Attorney (SAUSA) for the Eastern District of Washington. As a SAUSA, Holland will prosecute cases in both state and federal court, focusing primarily on crimes against children.
In making this announcement, U.S. Attorney Waldref reiterated her office’s commitment to prosecuting federal cases in the Tri-Cities area. “The number of cases prosecuted from our Richland office has risen over the past several years and we expect this to continue. The Tri-Cities area is the second largest metropolitan center in the Inland Northwest, and we will continue to prosecute the area’s most dangerous criminals to the fullest extent. Today’s announcement should serve as yet another signal to those who victimize children that such crimes will not be tolerated in our communities.”
U.S. Attorney Waldref continued, “Federal, State, Tribal, and local partnerships are essential to building safer and stronger communities in Eastern Washington. Many of these partnerships exist on the law enforcement level, including through joint task forces and cross deputization agreements.” U.S. Attorney Waldref further emphasized, “By combining federal and state resources, we are able to accomplish more to keep our communities safe than we otherwise could.” The SAUSA program applies this same principle to criminal prosecution – permitting experienced prosecutors to handle criminal cases in both state court and federal court.
Benton County Prosecuting Attorney Andy Miller similarly addressed the importance of utilizing state and federal partnerships to address crime against children in the Tri-Cities area: “As a Deputy Prosecuting Attorney and a SAUSA, Laurel Holland will have the ability to rely on both federal and state laws to prosecute those who commit crimes against our children, allowing us to better protect children and achieve justice on behalf of children who are harmed.”
Both U.S. Attorney Waldref and Prosecuting Attorney Miller also commended SAUSA Holland’s commitment and dedication to public service. Holland served as a Deputy Prosecuting Attorney for Benton County from October 2009 through October 2015. She later rejoined the Benton County Prosecuting Attorney’s Office in January 2019, where she continues to handle a wide variety of criminal cases, focusing primarily on crimes against children, including online exploitation as well as physical and sexual abuse. Holland’s appointment as a SAUSA also reflects a homecoming for Holland, who served as an Assistant United States Attorney in Yakima, Washington from 2015-2018. U.S. Attorney Waldref put it like this: “We know from experience that SAUSA Holland is an exceptional attorney and prosecutor. She handles her cases with earnestness and vigor to ensure a just and fair result in each and every case. We are fortunate to have her back in the USAO fold.”
Newly appointed SAUSA Holland expressed her continued desire to protect the most vulnerable in our communities. “I’m excited to rejoin the U.S. Attorney’s Office, while continuing my work as a state prosecutor in Benton County. I am especially honored to work with the talented state and federal investigators who devote their careers to protecting young children from physical and sexual abuse. Through combined state and federal efforts, we can make Benton County a safer place to live, work, and raise our families.”
Union City Resident Sentenced to over 11 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, TN- Hunter Brett Wherry, 26, of Union City, Tennessee, has been sentenced to 140 months in federal prison for being a convicted felon-in-possession of a firearm. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on February 27, 2021, an officer with the Weakley County Sheriff’s Department responded to a report of a residential burglary in Sharon, Tennessee. Upon arrival, the officer spoke with the homeowner, Billy Finney, who reported that his home had been burglarized and several items were missing. Witnesses observed a maroon Nissan Altima with two subjects at the home between 10:00 and 11:00 a.m. that day with the trunk open. Mr. Finney later provided law enforcement with a list of 11 firearms that were stolen from his home during the burglary.
On March 3, 2021, officers with the Obion County Sheriff’s Department conducted a traffic stop on a male subject and recovered an AR-15 rifle that matched the description of one of the firearms stolen from Mr. Finney’s residence. Photos of the firearm were shown to Mr. Finney, and he confirmed that the firearm was the AR-15 Bump Stock, Red Dot Sight that he reported stolen. Officers then interviewed the male subject, and he said the defendant, Hunter Brett Wherry, gave him the AR-15 "to hold onto." The male subject also said Wherry had given him additional firearms that were now at his residence in Trenton, Tennessee. After receiving permission to search and recover the firearms from the male subject's residence, officers recovered three additional firearms that were reported stolen from Mr. Finney’s residence.
The male subject agreed to work with the officers to recover additional firearms from Wherry. He made a recorded phone call to Wherry and told Wherry that he had a buyer for the remaining guns. Wherry told the male subject to meet him at an address on Vine Street in Union City, Tennessee. An undercover Union City police officer and the male subject then met with Wherry at the designated area. Wherry instructed the undercover officer and the male subject to follow him to a residence in Union City, where the firearms were located. Once there, the pair purchased several firearms from Wherry, including a High Standard Sentinel .22-caliber revolver. During the purchase, one officer left to obtain a search warrant for the residence and vehicles on the property, while the rest continued surveillance of the residence. Before the officer could return with the warrant, Wherry and two other individuals left the residence in a brown Cadillac.
A traffic stop was then conducted on the vehicle. When officers approached the vehicle, they observed Wherry in the right rear passenger seat leaning forward as if he was placing something under the seat. Wherry was ultimately removed from the vehicle, and a search of his person revealed a black fanny pack containing 22 grams of methamphetamine, 21 grams of marijuana, 3 syringes (one was filled with an undisclosed substance), and digital scales. Officers also located a Galesi Brescia .32-caliber ACP pistol (serial no 202520) under the seat where Wherry had been seen reaching.
Officers returned with the search warrant and executed it at the Washington Street residence. A search of the Cadillac and the residence, along with the firearms collected from the male subject that assisted the officers in this investigation resulted in the seizure of the following firearms, many of which were stolen during the burglary of Mr. Finney's home:
• Browning 22 Take-Down, .22 caliber long rifle.
• Stevens 311 Double Barrel shotgun.
• W&C Scott and Sons 12-gauge double barrel shotgun.
• High Standard Sentinel, .22-caliber revolver (serial no. 1468971).
• Galesi Brescia .32-caliber ACP pistol (serial no 202520).
• AR-15 Bump Stock, Red Dot Sight, serial # unknown.
• Remington 12-gauge, 870 Express Wood Sock, serial # unknown.
• Remington 12-gauge Shotgun, serial # unknown.
• Savage Model 308, serial # unknown.
• Savage Model 7 Mag Nightcon Scope, serial # unknown.
• Remington 30-06, Simmons Scope Wood Stock, serial # unknown.
• .22 Auto black synthetic stock, serial # unknown.
Wherry waived his Miranda rights and admitted to breaking into Mr. Finney's residence with his girlfriend and stealing several items. After the couple left the residence, they discovered they had stolen a key to a firearm’s safe. They decided to return to the residence and steal the firearms from the safe. Wherry further admitted that he had asked the male subject who assisted the police to help him sell the four firearms that the officers had recovered from the male subject's home earlier that day.
Wherry pled guilty to two counts of being a convicted felon-in-possession of a firearm on December 17, 2021.
This case was investigated by the Weakley County Sheriff’s Office, Obion County Sheriff’s Office, Union City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On April 15, 2022, United States Chief Judge S. Thomas Anderson sentenced Wherry to 140 months' imprisonment, to be followed by two years of supervised release. There is no parole in the federal system.
Assistant United States Attorney Josh Morrow prosecuted this case on behalf of the government.
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Two Previously Deported Men Charged with Illegal Re-EntryRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 20, 2022, two previously deported aliens were indicted separately by a federal grand jury for illegal reentry into the United States.
According to United States Attorney John C. Gurganus, Tomi Moscat-Lara, a/k/a Randi Torres-Irizarry, age 44, was charged with illegal re-entry into the United States by a previously deported alien. He had been deported in December 2013, and is alleged to have illegally reentered the United States sometime after that date. He was found in the United States in Luzerne County, Pennsylvania, due to an arrest which eventually led to a conviction for Possession with Intent to Distribute Drugs.
Jorge Efren Rivera-Nungaray, a/k/a Gabriel Franko, a/k/a Jorge Efrain Rivera, age 40, was charged with illegal re-entry into the United States by a previously deported alien. He had been deported in November 2013 and is alleged to have illegally reentered the United States sometime after that date. He was found in the United States in Adams County, Pennsylvania, after an April 6, 2021 arrest for terroristic threats and harassment.
Moscat-Lara and Rivera-Nungaray both face a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine.
These matters were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and are being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Two Murfreesboro Men Charged in Conspiracy to Ship Massive Quantities of Methamphetamine to New ZealandRead the Press Release
NASHVILLE – A federal indictment unsealed yesterday, charges two Murfreesboro, Tennessee, men with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, and possession and distribution of more than 50 grams of methamphetamine, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Steven Weaver, 50, and Jamie Woods, 37, were arrested yesterday by federal agents.
According to the indictment and other Court records, in July 2019, the U.S. Customs and Border Protection in Miami, Florida, seized three parcels at the Foreign Mail Center, United States Postal Service. The parcels had been mailed from Murfreesboro, Tenn., and were destined to various addresses in New Zealand. Each parcel contained approximately 1400 grams of methamphetamine. A subsequent investigation by Homeland Security Investigations and the U.S. Postal Inspection Service determined that other similar parcels had also been shipped from Murfreesboro and some were still in transit to their destination in New Zealand.
Further investigation determined that between June 25, 2019, and July 9, 2019, 18 similar parcels had been mailed from Murfreesboro to New Zealand. Although some of the parcels were successfully delivered to their destination, law enforcement was able to intercept nine of the parcels, which contained a total of more than 10 kilograms of methamphetamine.
In most instances, the methamphetamine was packaged in a cake mix box and the parcels were identified as “Birthday Gift.” Two of the parcels were determined to have been mailed from the mail room at Middle Tennessee State University (MTSU) in Murfreesboro, on June 25, 2019. The identification of the origin of these parcels led investigators to video footage from MTSU which captured a vehicle and two individuals and aided in the subsequent identification of the defendants.
As a result of this investigation, New Zealand authorities also arrested several suspects and dismantled a large drug trafficking organization operating out of New Zealand.
If convicted, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison.
This case was investigated by the U.S. Postal Inspection Service and Homeland Security Investigations with support from the Rutherford County Sheriff’s Office; the MTSU Police Department, the Murfreesboro Police Department; and Walmart Global Investigations. Assistant U.S. Attorney Amanda J. Klopf is prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Two Leaders of ‘We Build the Wall’ Online Fundraising Campaign Plead Guilty to Defrauding Hundreds of Thousands of DonorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRIAN KOLFAGE and ANDREW BADOLATO pled guilty today in connection with their roles in defrauding hundreds of thousands of donors to an online crowdfunding campaign known as “We Build the Wall.” Both defendants pled guilty before United States District Judge Analisa Torres.
According to the Indictment filed in the case:
Starting in approximately December 2018, BRIAN KOLFAGE, ANDREW BADOLATO, and others orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as “We Build The Wall” that raised more than $25,000,000 to build a wall along the southern border of the United States. In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would “not take a penny in salary or compensation” and that “100% of the funds raised . . . will be used in the execution of our mission and purpose.”
Those representations were false. In truth, KOLFAGE, BADOLATO, and others received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations. For example, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall. To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BADOLATO, and others devised a scheme to route those payments from We Build the Wall to KOLFAGE indirectly. They did so by using fake invoices and sham “vendor” arrangements, among other ways, to ensure, as KOLFAGE noted in a text message to BADOLATO, that his pay arrangement remained “completely confidential” and kept on a “need to know” basis.
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KOLFAGE, 39, and BADOLATO, 57, both residents of Florida, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. In the same proceeding, KOLFAGE also pled guilty to tax and wire fraud charges filed by the United States Attorney’s Office for the Northern District of Florida.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Both KOLFAGE and BADOLATO are scheduled to be sentenced at 1:00 pm on September 6, 2022, by Judge Torres.
Mr. Williams praised the outstanding investigative work of the United States Postal Inspection Service and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Nicolas Roos, Alison G. Moe, and Robert B. Sobelman are in charge of the prosecution.
Two Georgia Residents Charged with Conspiring to Traffic FirearmsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Police Commissioner John Mueller, Yonkers Police Department, announced charges today against BRYCE MARTIN and XAVIER SIMMS for conspiring to traffic firearms from Georgia to New York. The defendants traveled together with a third co-conspirator who opened fire on a FBI Federal Task Force Officer after law enforcement attempted to interdict in Yonkers, New York on April 20, 2022. The defendants were presented in White Plains federal court this afternoon before United States Magistrate Andrew E. Krause.
U.S. Attorney Damian Williams said: “Gun crime is plaguing our communities, and the actions of the criminals using them are putting lives in danger. Our law enforcement partners are out doing all they can to get illegal weapons and ‘ghost guns’ off the streets before more people get killed. The violence has to stop, and we have to hold accountable those who are breaking the law.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As we allege today, Mr. Martin and Mr. Simms conspired to illegally traffic firearms, and, when law enforcement attempted to intervene, one of their co-conspirators shot and critically wounded one of our task force officers. Subsequent investigation resulted in the recovery of several firearms, including a "ghost gun," an untraceable type of weapon that continues to pose a significant threat in our communities. We are grateful for the survival of our partner, and our thoughts remain with him and his loved ones as he continues to recover from his injuries.”
Commissioner Mueller said: “The Yonkers Police and our fantastic federal, state and local partners will never stop from providing a safe and secure environment for our beloved residents. What took place in this incident is yet another example of the hard work and commitment to mission and heroism. These efforts occur each and every day and will continue for as long as is needed to make our communities safe.”
As alleged in the Complaint[1]:
On April 20, 2022, members of the FBI Westchester Safe Streets Task Force and the Yonkers Police Department were investigating illegal firearms activity in the vicinity of Elm and Linden streets in Yonkers, New York. During the course of their investigation, they attempted to interdict members of the conspiracy, including Bryce MARTIN and Xavier SIMMS. A third co-conspirator (“CC-1”) shot and critically wounded an FBI Task Force Officer, at close range, after law enforcement approached members of the conspiracy, including MARTIN and SIMMS.
Law enforcement recovered at least four firearms from members of the conspiracy, including a “Ghost Gun”—a type of firearm that is designed to evade law enforcement detection. Later investigation revealed that SIMMS and MARTIN traveled together with CC-1 from Georgia with several firearms to sell. Evidence recovered from their cellphones showed that SIMMS and MARTIN both had access to specialized firearms, including machinegun-style weapons.
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MARTIN, 23, of Hampton, Georgia, is charged with one count of conspiring to traffic firearms, which carries a maximum sentence of five years’ imprisonment.
SIMMS, 22, of Covington, Georgia, is charged with one count of conspiring to traffic firearms, which carries a maximum sentence of five years’ imprisonment.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the Yonkers Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Shiva H. Logarajah and Kevin T. Sullivan are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Boone County Men Plead Guilty in Connection with Damage to Energy FacilityRead the Press Release
CHARLESTON, W.Va. – Two Boone County men pleaded guilty in connection with damage to an energy facility, identified as a known mine located across Boone and Lincoln counties.
According to court documents and statements made in court, Danny Griffy, 57, of Sylvester, pleaded guilty today to aiding and abetting the destruction of an energy facility. Bradley Campbell, 27, of Costa, pleaded guilty to conspiring to damage an energy facility. The known mine is a West Virginia non-profit corporation engaged in the reclamation of a significant number of former mining permits and processes coal.
The case involved the theft of more than $5,000 worth of specialized mine equipment from the known mine on multiple occasions in April 2018, resulting in more than $5,000 in damage to the known mine. Campbell admitted to conspiring with others to steal the equipment, while Griffy admitted to aiding in the effort. Campbell and Griffy each admitted they and others sold the stolen equipment to a Whitesville business and converted the proceeds to their own uses.
Griffy is scheduled to be sentenced on July 27, 2022, and Campbell is scheduled to be sentenced on July 21, 2022. Each man faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine. Griffy and Campbell have also agreed to pay restitution.
United States Attorney Will Thompson made the announcement and commended the Federal Bureau of Investigation (FBI) and the West Virginia State Police for conducting the investigation.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearings. Assistant United States Attorney Kathleen Robeson is prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:22-cr-14, 2:22-cr-15, and 2:22-cr-77.
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Tobacco Wholesaler Pleads Guilty to PACT Act ViolationRead the Press Release
BOSTON – A tobacco wholesaler from Connecticut has pleaded guilty to violating the Prevent All Cigarette Trafficking (PACT) Act.
Syed I. Bokhari, 57, pleaded guilty on Tuesday, April 19, 2022 in federal court in Springfield before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for July 28, 2022. Bokhari was indicted in October 2014, and subsequently charged in a superseding indictment in December 2015.
Established in 2010, the PACT Act is designed to prevent the evasion of state tobacco taxes on cigarettes and smokeless tobacco. The PACT Act requires, among other things, businesses to file a statement with the state tobacco tax administrator prior to shipping cigarettes or smokeless tobacco into that state.
Bokhari owned and operated a wholesale supply business in Scranton, Pa., that sold smokeless tobacco to customers in Massachusetts. Between 2010 and June 5, 2012, Bokhari’s business shipped smokeless tobacco to customers in Massachusetts without ever filing the required statement with the Massachusetts tobacco tax administrator.
“By circumventing the law, Mr. Bokhari sold smokeless tobacco directly to consumers thereby cheating on his tax obligations,” said United States Attorney Rachael S. Rollins. “Whether it is through underreporting taxable income or secreting taxable products to customers, tax fraud is a crime that we will continue to investigate – plain and simple.”
“The Department of Revenue’s partnerships with the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Internal Revenue Service Criminal Investigations make it clear that we will pursue those who violate both federal and Massachusetts tax laws,” said Massachusetts Department of Revenue Commissioner Geoffrey E. Snyder. “The Department’s Criminal Investigations Bureau remains committed to working closely with our federal, state, and local partners to combat the illegal tobacco trade and recover lost revenue on behalf of Massachusetts taxpayers.”
“When unscrupulous tobacco wholesalers skirt their tax obligations, it puts competitors at an unfair disadvantage in the marketplace,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, Boston Office. “As the investigative arm of the IRS, IRS-CI special agents are a critical force multiplier with our partners in these investigations which focus on ensuring a level playing field for law-abiding tobacco businesses.”
“This guilty plea should send a clear message that the illegal diversion of tobacco products will not be tolerated,” said Special Agent in Charge James M. Ferguson of the ATF Boston Field Division. “ATF will continue to work alongside our partners to investigate incidents of illegal conduct and tax evasion of tobacco products.”
“As a wholesaler, Bokhari imported large quantities of tobacco to Massachusetts without paying the appropriate taxes, diverting significant revenue that belongs to the state. HSI is proud to support our law enforcement partners in this investigation,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office.
The charge of violating the PACT Act provides for a sentence of up to three years in prison, one year 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.
U.S. Attorney Rollins, ATF SAC Ferguson, IRS-CI SAC Simpson, HSI SAC Millhollin, Massachusetts DOR Commissioner Snyder and Connecticut Department of Revenue Service Commissioner Mark D. Boughton made the announcement. Assistant U.S. Attorneys Alex J. Grant and Christopher Morgan of Rollins’ Springfield Branch Office are prosecuting the case.
Three Sentenced in Connection with the 2013 Murder of Loomis Armored Guard Hector TrochezRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that yesterday JEREMY ESTEVES, age 35, ROBERT BRUMFIELD, III, age 28, and JASMINE THEOPHILE, age 29, all of New Orleans, were sentenced today by U.S. District Judge Lance Africk for their roles in the December 2013 armed robbery of a Loomis Armored vehicle at Chase Bank, 2331 S. Carrollton, Avenue, New Orleans, Louisiana, which resulted in the death of Loomis guard Hector Trochez.
ESTEVES, who was found guilty by a jury at trial in November 2019 of conspiracy to obstruct and obstruction of commerce by robbery, murder, and violations of the Federal Gun Control Act, was sentenced to 600 months imprisonment, a five-year term of supervised release following imprisonment, a $300 mandatory special assessment fee, and ordered to pay restitution in the amount of $277,000.00.
BRUMFIELD, who was also convicted at trial in November 2019 of conspiracy to obstruct commerce by robbery, was sentenced to 240 months imprisonment, a three year term of supervised release following imprisonment, a $100 mandatory special assessment fee, and ordered to pay restitution in the amount of $277,000.00.
THEOPHILE, the former girlfriend of co-defendant Lilbear George, previously pleaded guilty to obstruction of justice and was sentenced to a five year term of probation, which includes six months in the custody of a halfway house. She was further ordered to pay a $100 mandatory special assessment fee.
According to court documents, on December 18, 2013, ESTEVES along with co-defendants, Lilbear George, Chukwudi Ofomata, and Curtis Johnson, Jr., robbed a Loomis armored vehicle as it was making a delivery of approximately $265,000 to the Chase Bank at the intersection of S. Carrollton and S. Claiborne Avenues. As Trochez prepared to make the delivery, George and Ofomata, both armed, exited a Chevy Tahoe driven by ESTEVES and ordered Trochez to give up the money. Trochez pulled his weapon and fired at the robbers. Ofomata and George returned fired in Trochez’s direction. Johnson fired at the Loomis truck to keep the driver inside. Trochez was fatally struck on the left side of his forehead and suffered a graze wound to his elbow. One of the robbers ran towards the rear of the Loomis truck and took possession of the money bag before re-entering the Tahoe. The robbers fled the Chase Bank parking lot.
A witness seated in a vehicle at the corner of S. Claiborne and S. Carrollton Avenues observed the shooting and provided a description of the shooters and the vehicle they occupied. That witness followed the Chevy Tahoe as it fled the location of the shooting/robbery. During the vehicle’s flight, one of the shooters fired at the witness’s vehicle in an attempt to deter the witness from following. The witness observed the Chevy Tahoe arrive in the 1700 block of Adams Street and saw the four robbers exit the Chevy Tahoe and enter the awaiting Honda Accord driven by BRUMFIELD. The Honda Accord fled the Adams Street location, leaving the Chevy Tahoe behind.
The Tahoe was recovered by the New Orleans Police Department and searched pursuant to a federal search warrant. During the search, FBI agents observed that the steering wheel column of the vehicle had been breached. Agents located two screwdrivers on the floorboard and a bandana on the console. The items were collected and submitted for DNA testing at the Louisiana State Police Crime Laboratory. An unknown DNA profile, later confirmed to be that of George, was recovered from one of the screwdrivers. Likewise, the DNA recovered from the bandana was confirmed to be that of Johnson.
Co-defendants George and Ofomata previously pleaded guilty and were sentenced to 480 months imprisonment. Defendant Johnson was convicted at trial in March 2022 and will be sentenced on July 13, 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation along with the New Orleans Police Department and the Louisiana State Police. Assistant United States Attorneys Brittany L. Reed, Gregory M. Kennedy, and Inga Petrovich prosecuted the matter.
Three Men Charged with Scheming to Create and Sell False Works of Art and MemorabiliaRead the Press Release
CHICAGO — Two brothers from Michigan were among three men indicted on federal fraud charges for allegedly scheming to create and sell false works of art and memorabilia.
An indictment unsealed today in U.S. District Court in Chicago accuses DONALD HENKEL of altering and applying false autographs or signatures to paintings and memorabilia, including sports, Hollywood, and music collectibles, to make the items appear genuine or more valuable to potential buyers, including art galleries, auction houses, and individuals. The indictment alleges that Donald Henkel falsely added signatures of artists such as Ralston Crawford and George Ault to paintings that he knew were not created by those artists, and then schemed with his brother, MARK HENKEL, and others to fraudulently present the works as genuine. Donald Henkel and bogus “straw sellers” recruited by Mark Henkel allegedly provided a false provenance, or history, for numerous items, including a painting by Gertrude Abercrombie and baseballs or bats purportedly signed by Lou Gehrig, Babe Ruth, Honus Wagner, and Cy Young, as a means to falsely portray the items as genuine to potential buyers. One of the alleged straw sellers – RAYMOND PAPARELLA – schemed to conceal the Henkels’ involvement with the items in an effort to pass them off as genuine, the indictment states.
The alleged fraud scheme began in 2005 and continued until 2020. Many of the forged items were sold for more than $100,000 based on the false histories provided by the Henkels or the straw sellers, the indictment states.
The indictment charges mail fraud or wire fraud against Donald Henkel, 61, of Cedar, Mich., Mark Henkel, 66, of Ann Arbor, Mich., and Paparella, 59, of Boca Raton, Fla. Mark Henkel faces an additional charge of witness tampering for allegedly corruptly persuading a co-schemer to make a false statement to law enforcement.
The three defendants pleaded not guilty today during arraignments in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Michigan, and FBI Field Offices in Detroit, Mich., and Miami, Fla. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Texas Tax Preparer Charged with False ReturnsRead the Press Release
In an indictment unsealed today, a federal grand jury in Del Rio, Texas, indicted a tax return preparer for willfully helping clients file false tax returns with the IRS.
According to the indictment, in 2016 and 2017, Adela Cruz prepared tax returns for her clients that included false education credits, dependent information, and business profits and losses. Cruz allegedly charged the clients between $200 and $500 for each return. Cruz allegedly also falsified her own individual income tax returns for 2015 and 2016, claiming false education credits she was not entitled to receive.
If convicted, Cruz faces a statutory maximum sentence of three years in prison for each count of filing a false tax return for herself and her clients. She also faces a period of supervised release 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 Ashley C. Hoff for the Western District of Texas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert A. Kemins and Nicholas J. Schilling, Jr. of the Tax Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Sentenced to Federal Prison for Months’ Long Cyberstalking Campaign Sparked by an Unrequited Love InterestRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Desmond Babloo Singh, age 20, of Temple, Texas, late yesterday to 18 months in federal prison, followed by one year of home detention as part of three years of supervised release, for two counts of cyberstalking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, from April 18, 2020, to November 24, 2020, Singh used more than 100 different social media accounts, phone accounts, and various electronic communication tools to send harassing messages to Victim 1. The hundreds of public social media posts, text messages, and private social media messages included threats of death, bodily injury, sexualized violence, and racial slurs. Many of the accounts created and used by Singh incorporated Victim 1’s name, making it appear as if the accounts were owned and operated by her.
In early 2020, Singh sent Victim 1 online communications expressing his romantic interest in her. After Victim 1 rebuffed Singh’s advances and asked him not to contact her, Singh commenced a months’ long cyberstalking campaign against both Victim 1 and Victim 2, the latter of whom Singh viewed as a romantic rival.
Singh frequently used the fraudulent accounts he created to denigrate Victim 1’s character, appearance, and make the assertion that Victim 1 was “obsessed” with him. Singh’s harassing conduct included, among other things, numerous implied threats of bodily injury or death. For instance, Singh used a fraudulent social media account to send Victim 1 an image in which the faces of her and her family members were superimposed on the faces of several individuals hanging from nooses. In another edited picture, Singh superimposed Victim 1’s mother’s face on the body of a grieving woman at a grave site.
On or about July 19, 2020, Victim 1 received a “follow” request on a social media platform from an account that Singh created. On this account, Singh had posted pictures of Victim 1 and her family home. Additionally, Singh posted Victim 1’s parents’ address in Maryland and stated there would be a party there the following day. The following day, July 20, 2020, a Baltimore County Police Department employee received an anonymous email telling law enforcement to investigate a possible bomb at the parents’ home. Law enforcement officers responded to the residence only to learn that the bomb threat was a hoax. The federal investigation into Singh’s conduct revealed that Singh had solicited another individual to make the anonymous claim, in order to provoke an emergency police response to Victim 1’s parents’ home, referred to as “swatting.”
In furtherance of his harassment campaign against Victim 1, Singh also posted Victim 1’s personal information online including her birthdate, name, personal phone number, school, social media identities, and other identifying information. This form of online harassment is commonly referred to as “doxing”.
During the investigation of Singh’s harassment campaign, investigators discovered notes in Singh’s phone that documented his plans to harass Victim 1, including the plans to physically assault Victim 1’s family members, post over 10,000 messages relating to Victim 1’s friends, harass Victim 2, and take pictures of Victim 1 in real life.
Singh not only harassed Victim 1, but he also harassed Victim 2, whom he perceived to be a romantic rival. As he had done with Victim 1, Singh created numerous social media accounts incorporating Victim 2’s real name and publicly posted his personal information. Using an anonymous account, Singh posted a video of an unidentifiable person knocking on the door of Victim 2’s former residence with a caption telling Victim 2 to answer the door. Singh later posted the same video on an online platform which included Victim 2’s name, the former address of Victim 2, and a statement stating that he went to Victim 2’s residence to fight Victim 2.
United States Attorney Erek L. Barron commended the HSI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christopher M. Rigali, who prosecuted the 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.
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Tennessee Man Guilty of East Texas Elder Fraud ViolationsRead the Press Release
TYLER, Texas – A Wartrace, TN, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
John Arthur Fuss, 71, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love.
According to information presented in court, Fuss was involved in a scheme developed and managed by a co-defendant. The scheme involved call center solicitations of various kinds, including home mortgage modifications, personal loans, payback of Social Security benefits, and IRS demands for payment. Victims were instructed to make payments through various money services businesses, or by mailing payments to specified addresses. Fuss was recruited to pick up payments from money services businesses or receive them in the mail, and then deposit them into accounts as instructed by one of the co-defendants. He also created at least one business so that the co-defendant could set up a bank account to use in the scheme. The overall scheme involved approximately $3.2 million in victims' payments and almost 2000 victims. Fuss admitted to being responsible for the deposit of approximately $1,173,233 in victim proceeds.
Fuss faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, HUD-OIG, and Treasury IG – Tax Administration and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.
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Superintendent of Chicopee Schools Indicted on Charges of Making False StatementsRead the Press Release
BOSTON – The Superintendent of the Chicopee Public Schools has been indicted by a federal grand jury on charges of making false statements in connection with sending 99 threatening messages to a candidate for Chicopee Police Chief.
Lynn Clark, 51, of Belchertown, was indicted today on two counts of making false statements. She will appear in federal court in Springfield on April 27, 2022. Clark was arrested and charged by criminal complaint on April 6, 2022.
According to the charging documents, in December 2021, the City of Chicopee was in the process of hiring a new Police Chief. On Dec. 3, 2021, law enforcement received a report that a candidate for the position was receiving threats intended to force the victim to withdraw their application for Chicopee Police Chief. In November 2021, after submitting their application for Police Chief, the victim allegedly received numerous text messages from unknown numbers containing threats to expose information that would cause the victim reputational harm. As a result, the victim withdrew their application and the City delayed the selection process.
The investigation revealed that a total of approximately 99 threatening messages were sent from fictitious phone numbers purchased through a mobile app. Phone and internet records revealed that these numbers were allegedly purchased by Clark and that these accounts allegedly sent each of the threatening messages.
According to the charging documents, on or about Dec. 6, 2021, Clark falsely stated to federal agents that she received threatening text messages from unknown phone numbers, when, in fact she sent the messages to herself. On or about Feb. 7, 2022, it is alleged that Clark again falsely stated that she did not know who sent the messages in addition to denying that she had downloaded a mobile app with which she purchased the fictitious phone numbers to send the messages. It is further alleged that Clark later admitted that she did indeed send the messages and downloaded the app.
The charges of making false statements each provide for a sentence of up to five years in prison, up to one of supervised release and a fine of up to $10,000. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Summary Judgement Issued in Civil Case Involving Hundreds of Fraudulent Medicaid/Tricare BillsRead the Press Release
MACON, Ga. – The District Court for the Middle District of Georgia entered an order partially granting summary judgment in favor of the United States and State of Georgia in U.S. ex rel Walthour v. Middle Georgia Family Rehab. Civ No. 5:18-cv-378-TES.
The order granted summary judgment on 808 false claims submitted by Middle Georgia Family Rehab (MGFR) and Brenda Hicks for services improperly billed to Medicaid and Tricare between Nov. 2, 2015, and June 18, 2020. Those improper services were billed under the names of a physical therapist and a speech therapist who were no longer employed by MGFR and therefore could not possibly have provided the services in question. U.S. District Judge “Tripp” Self, III issued the order on April 20.
In analyzing the question of whether MGFR knowingly submitted the false claims, the Court found that MGFR’s conduct “epitomizes ‘reckless disregard’ of the truth.” (ECF No. 52 at 30.) Specifically, the Court found that MGFR’s submission of 767 claims to Medicaid and Tricare over an eight-month period following the resignation of one physical therapist and the submission of 41 claims following the resignation of a speech therapist could not be characterized as an “honest mistake.” (ECF No. 52 at 30.)
Under the False Claims Act, the government is entitled to three times damages and civil penalties ranging from $5,500 and $11,000 for each identifiable claim submitted between Nov. 2, 2015 – July 31, 2016, and a range of $11,181 - $22,363 for violations committed after Jan. 29, 2018.
“Protecting the integrity of our nation’s health care programs that provide critical services for veterans, elderly and vulnerable people is imperative to ensure the continued good health of these very programs,” said U.S. Attorney Peter D. Leary. “Our office will pursue reports of medical facilities that file false claims, a choice that ultimately robs our citizens.”
The Court has ordered the parties to appear within 30 days for a hearing on the issue of damages. The hearing is scheduled for May 2 at 2:30 p.m. in Macon.
Assistant U.S. Attorneys Bowen Shoemaker and Taylor McNeill are handling this case for the Government.
Savage Man Arrested, Charged with Passport FraudRead the Press Release
MINNEAPOLIS – A federal criminal complaint has been filed against Mohamed Jama Ismail, 49, of Savage, charging him with passport fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, Ismail is one of the targets of a federal investigation into the misappropriation of Federal Child Nutrition Program funds. During the investigation, law enforcement identified several companies, including ThinkTechAct Foundation, Empire Cuisine & Market LLC, and Empire Enterprises LLC, that were receiving a suspiciously high amount of reimbursements under the Federal Child Nutrition Program. Collectively, these companies received more than $30 million in Federal Child Nutrition Program funds from approximately May 2020 to January 2022. As alleged, Ismail and a partner owned and controlled Empire Cuisine & Market LLC, which he and other co-conspirators used to fraudulently obtain, launder, and misappropriate millions of dollars in federal funds. For example, ThinkTechAct received more than $21 million in Federal Child Nutrition Program funds from February 2021 to January 2022, based on the claim that the company was serving meals to thousands of children a day at multiple distribution sites. Bank records show that ThinkTechAct transferred more than $12 million in federal funds to Empire Cuisine & Market LLC. In addition to the $12 million it received from ThinkTechAct, Empire Cuisine & Market also received more than $12 million in Federal Child Nutrition Program funds directly from Partners in Quality Care and Feeding Our Future during this same period.
As alleged, most of the funds were misappropriated and sent through shell companies to an array of individuals involved in the scheme. During the investigation, law enforcement recovered receipts for more than $800,000 in international wire transfers from Empire Cuisine & Market to entities in China. Bank records show that all of the money sent to China was traceable to Federal Child Nutrition Program funds. Bank records also show more than $700,000 in Federal Child Nutrition Program funds were wired from Empire Enterprises LLC (previously transferred from Empire Cuisine & Market) to Nairobi, Kenya in 2021.
According to court documents, on January 20, 2022, law enforcement executed a search warrant at Ismail’s home in Savage. During the search, law enforcement seized Ismail’s U.S. passport. Ismail provided law enforcement agents with the combination to the locked safe where the passport was stored. On March 22, 2022, Ismail applied for a new U.S. passport, falsely representing on the application that he had “lost” his passport “at home.” Ismail also claimed that he had filed a police report related to the loss of his passport. According to the Savage Police Department, Ismail has not filed any police reports related to the loss of his passport. Based on his application, the U.S. Department of State issued Ismail a new U.S. passport on March 22, 2022.
According to court documents, Ismail booked a flight from Rochester, Minnesota, to Nairobi, Kenya, via Minneapolis-St. Paul International Airport and Amsterdam Schiphol Airport, scheduled to depart on April 20, 2022. At 10:30 a.m. on April 20, 2022, at Rochester International Airport, Ismail used his newly obtained U.S. passport to check in for the flight. Ismail arrived at Minneapolis-St. Paul International Airport and was arrested by FBI agents while boarding his flight to Amsterdam.
Ismail is charged with one count of passport fraud. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Hildy Bowbeer.
This case is the result of an investigation conducted by the FBI, IRS, Postal Inspection Service, and U.S. Customs and Border Protection, with assistance from the Minneapolis-St. Paul Airport Police.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sacramento Felon Indicted for Possessing FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Nicholas D. Gray, 38, of Sacramento, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 31, 2022, law enforcement officers responded to a domestic disturbance in Sacramento. Before officers arrived, Gray took a duffle bag of firearms from his residence and drove to a mini-storage facility. Officers contacted Gray at his storage unit and found him in possession of firearms, additional firearms parts and lower receivers, and ammunition. Gray has eight prior felony convictions which prohibit him from possessing a firearm, including 2016 convictions for arson and manufacturing controlled substances.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the Sacramento Police Department, and the Woodland Police Department. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Gray faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rhea County Man Pleas Guilty to CARES Act Wire FraudRead the Press Release
CHATTANOOGA, Tenn. – On April 21, 2022, George Thacker, 59, of Spring City, Tennessee, pleaded guilty to one count of wire fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
The CARES Act is a federal law designed to provide emergency financial assistance to the millions of Americans suffering the economic effects brought about by the COVID-19 pandemic. Among other things, it authorized billions of dollars in forgivable loans to small businesses through programs referred to as the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program. The funds from those programs were intended to ensure that small businesses suffering economic impacts related to the coronavirus pandemic could continue to operate and pay expenses, including their employees’ wages.
According to court filings, Thacker applied for and received over $600,000 in PPP and EIDL loan proceeds. When applying for the loans, Thacker falsely certified that he would use the funds to pay employees and for other operating expenses. Instead of using the money to its intended purpose, Thacker used the funds for his own enrichment, among other things, purchasing cryptocurrency and funding his personal investment accounts.
This investigation was led by the United States Secret Service.
Sentencing has been set for September 22, 2022, before the United States District Judge Charles E. Atchley, Jr. Thacker faces a maximum of 20-year prison sentence; $250,000 in fines; and supervised release for three years.
Assistant United States Attorney Kyle J. Wilson represented the United States.
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Previously convicted felon sentenced to 6 years in prison for possessing firearmsRead the Press Release
DAYTON, Ohio – Davon Andre Winn, 36, of Dayton, was sentenced in U.S. District Court to 72 months in prison for possessing two loaded firearms after being convicted of a felony crime.
According to court documents, in November 2020, while Winn was on parole, Ohio Adult Parole Authority conducted a search of the residence in which Winn spent a majority of his time.
They discovered an assault rifle and a handgun. Both firearms were loaded.
Winn had prior felony convictions, including kidnapping, aggravated burglary with a deadly weapon, burglary and various other violent offenses. These convictions legally prohibited Winn from possessing a firearm or ammunition.
“We take felon-in-possession cases seriously, especially when they involve defendants using military-style weapons as street guns,” said U.S. Attorney Kenneth L. Parker. “These firearms, with their high-capacity magazines and ability to fire repeatedly without reloading, continue to exact a great cost in senseless bloodshed and tragedy in communities across the country.”
The defendant pleaded guilty in his federal case in October 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Kamran Afzal and other members of the Dayton Police Department’s Safe Streets Task Force announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Laura I. Clemmens represented the United States at sentencing.
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Portage Man Sentenced to 27 Months in PrisonRead the Press Release
HAMMOND- Luis Carlos Marin, Jr., 31 years old, of Portage, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to making a false statement in connection with the acquisition of a firearm, announced United States Attorney Clifford D. Johnson.
Marin was sentenced to 27 months in prison followed by 1 year of supervised release.
According to documents in the case, between March 26, 2020, and July 13, 2020, Marin purchased a total of 24 firearms from federally licensed firearm dealers. While purchasing the firearms, Marin made false statements on the ATF Form 4473 in violation of federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Chicago Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Physician Indicted in $10 Million Telemedicine Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Elemer Raffai, an orthopedic surgeon, with health care fraud in connection with a $10 million scheme involving the submission of false and fraudulent claims to Medicare and Medicare Part D plans. Raffai was arrested today and will make his initial court appearance this afternoon in United States District Court for the Northern District of New York.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr. Assistant Attorney General of the Justice Department’s Criminal Division; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG); and Janeen DiGuiseppi, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Field Office (FBI), announced the arrest and indictment.
“In exchange for kickbacks from telemedicine companies, Dr. Raffai allegedly submitted millions of dollars in false and fraudulent claims to Medicare on behalf of beneficiaries without even examining them or based on conversations on the phone that lasted less than three minutes,” stated United States Attorney Peace. “Dishonest doctors who think Medicare is a cash cow and connect with telemedicine companies to brazenly steal from this vital taxpayer-funded program, will find themselves arrested, prosecuted and their scheme disconnected.”
“These allegations describe a physician who is more motivated by personal enrichment than his duty to provide appropriate and necessary care to his patients,” stated HHS-OIG Special Agent in Charge Lampert. “Dr. Raffai is accused not only of disregarding proper patient care, but also of pilfering funds from a program upon which millions of citizens depend for health services. Our agency and law enforcement partners are dedicated to tracking down individuals who commit health care offenses, and their involvement in a fraud network does not insulate them from our pursuit.”
“Healthcare fraud is a serious crime that impacts every American. Dr. Raffai cheated the system for his own personal gain in the amount of $10 million. Like many others who commit healthcare fraud, Dr. Raffai’s crimes contribute to the rising cost of health care for everyone. The FBI, along with our partners, will continue to investigate healthcare fraud to ensure these individuals who willingly defraud the American people are brought to justice,” stated FBI Special Agent-in-Charge DiGuiseppi.
According to the indictment, Dr. Raffai purported to practice telemedicine with the AffordADoc Network and other telemedicine companies that paid the defendant for each consultation with a beneficiary. Between July 2016 and June 2017, Dr. Raffai allegedly participated in a health care fraud scheme in which he signed prescriptions and order forms via purported telemedicine services for durable medical equipment (DME), including orthotic braces, that were not medically necessary. Dr. Raffai caused the submission of these claims based solely on a short telephone conversation for beneficiaries he had not physically examined and evaluated, and that were induced, in part, by the payments of bribes and kickbacks. Dr. Raffai was paid by telemedicine companies approximately $25 or $30 per patient consultation. The indictment further alleges that Dr. Raffai, together with others, submitted or caused the submission of approximately $10 million in false and fraudulent claims to Medicare for DME on behalf of beneficiaries who were residents of the Eastern District of New York, and Medicare paid more than $4 million on those claims.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dr. Raffai faces up to 10 years in prison.
The FBI and HHS-OIG are investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Andrew Estes and Kelly M. Lyons of the Criminal Division’s Fraud Section are in charge of the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Defendant: DR. ELEMER RAFFAI
Age: 56
Malone, New YorkE.D.N.Y. Docket No.: 22-CR-177 (SJ)
Physician Indicted in $10 Million Health Care Fraud SchemeRead the Press Release
A New York physician was charged in an indictment unsealed today in the Eastern District of New York for an alleged $10 million health care fraud scheme involving the submission of false and fraudulent claims to Medicare and Medicare Part D plans.
According to court documents, Elemer Raffai, 56, of Rome, between approximately July 2016 and June 2017, allegedly signed prescriptions and order forms via purported telemedicine services for durable medical equipment (DME) that were not medically necessary. Raffai caused these claims to be submitted based solely on a short telephone conversation for beneficiaries he did not physically examine and evaluate and that were induced, in part, by the payments of bribes and kickbacks to Raffai. The indictment further alleges that Raffai, with others, submitted or caused the submission of approximately $10 million in false and fraudulent claims to Medicare for DME, and Medicare paid more than $4 million on those claims.
Raffai is charged with health care fraud. He was arrested and is making his initial court appearance today in the U.S. District Court for the Northern District of New York. If convicted, Raffai faces a maximum total penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Janeen DiGuiseppi of the FBI’s Albany Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Trial Attorneys Kelly M. Lyons and Andrew Estes of the Criminal Division’s Fraud Section prosecuted the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Felon Found Guilty by Jury of Illegally Possessing a Firearm During June 2020 Civil UnrestRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Steven Pennycooke, 36, of Philadelphia, PA, was convicted after trial of a single count of possession of a firearm by a felon arising from a looting incident during the period of civil unrest and mandatory curfew in the City of Philadelphia in Spring 2020.
In June 2020, Philadelphia Police officers responded to a 911 call reporting that two men were seen pushing a looted ATM down a street in West Philadelphia. When the officers approached the block indicated in the call, they observed two men standing in the street less than a half a block away from a looted ATM loaded onto a cart. When the officers got closer to the suspects, they observed the defendant throw something into a vehicle; and one of the officers looked through the vehicle’s window and observed a firearm in the backseat. As a previously convicted felon in the Commonwealth of Pennsylvania in 2011, Pennycooke was prohibited from owning or possessing a firearm.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has reached record-breaking proportions,” said U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant illegally possessed a loaded firearm that fortunately was secured by experienced Philadelphia Police officers who took the defendant into custody without incident. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to support Philadelphia police and get criminals like this defendant off the streets for a long time.”
“Getting guns away from people not allowed to have them is vital as we battle violent crime in Philadelphia,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our PPD partners will use every tool at our disposal to take criminals off the street, as we work to make Philadelphia safer. The folks who live, work, or visit here deserve nothing less.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Alexandra Lastowski and Derek Hines.
Pacific Northwest Environmental Extremist and Arsonist Pleads GuiltyRead the Press Release
PORTLAND, Ore.—A Pacific Northwest environmental extremist, arsonist, and former fugitive pleaded guilty today in federal court for his role in two arson conspiracies targeting commercial and government-owned animal processing facilities in Oregon and California.
Joseph Mahmoud Dibee, 53, pleaded guilty to conspiracy to commit arson and arson in the District of Oregon and conspiracy to commit arson in the Eastern District of California.
Today’s plea also resolves Dibee’s pending criminal case in the Western District of Washington.
“No matter the agenda, using violence to advance a social or political cause is a serious crime. Over a series of years, Mr. Dibee and his co-conspirators caused millions of dollars in damage to commercial and government-owned properties. Today, after many years on the run, Mr. Dibee admitted to his role in these schemes and will finally face justice,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“It has taken more than 20 years for Joseph Dibee to face justice. The FBI and our law enforcement partners never gave up. From destroying evidence to fleeing the country, none of Mr. Dibee’s tactics stopped us from making sure he was held accountable for his malicious and destructive actions,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, beginning in October 1996 and continuing through December 2005, Dibee and at least 15 other individuals affiliated with the Earth Liberation Front and Animal Liberation Front knowingly conspired with one another to damage or destroy various commercial and government-owned properties.
Dibee and his co-conspirators held meetings to plan arsons of targeted sites, conducted research and surveillance of the sites, and discussed their planned actions using code words and code names. The conspirators designed and constructed destructive devices which functioned as incendiary bombs to ignite fires and destroy targeted sites. During their self-described “direct actions,” the conspirators dressed in dark clothing and wore masks and gloves to disguise their appearances. Some conspirators acted as lookouts while others were responsible for placing, igniting, or attempting to ignite the improvised incendiary devices.
On or about July 21, 1997, Dibee and others used incendiary devices to destroy the Cavel West Meat Packing Plant, a commercial slaughterhouse and meatpacking facility in Redmond, Oregon. Several years later, in October 2001, Dibee and others attempted to destroy the Bureau of Land Management’s Wild Horse Corrals, a government-owned facility used to remove wild horses from public lands located near Litchfield, California. The group’s attack on the facility caused the destruction of a barn and its contents.
Prior to the second incident, Dibee and others recruited co-conspirators and gathered supplies and fuel to make incendiary devices. The group used Dibee’s residence in Seattle, Washington to construct the devices and traveled from Seattle to Northern California in Dibee’s truck.
In 2006, after a long-running domestic terrorism investigation led by the FBI, a federal grand jury in Oregon indicted Dibee and 11 co-conspirators. Dibee and others were later indicted in the Eastern District of California and Western District of Washington. The conspirators, together known as “the Family,” were ultimately linked to more than 40 criminal acts between 1995 and 2001 and caused more than $45 million in damages.
Dibee fled the U.S. in December 2005. In late summer 2018, Cuban authorities arrested Dibee on an Interpol Red Notice. The U.S. Department of State, the U.S. Department of Homeland Security including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement, and the U.S. Embassy in Havana assisted in returning Dibee to the U.S.
With Dibee’s continued acceptance of responsibility, the government will recommend a sentence of 87 months in federal prison. He will be sentenced on July 27, 2022 by U.S. District Court Judge Ann Aiken in the District of Oregon.
As part of his plea agreement, Dibee has agreed to pay restitution to his victims as determined by the government and ordered by the court.
One of Dibee’s co-conspirators remains at large. Josephine Sunshine Overaker, an American citizen who is either 47 or 50 years old, is believed to have fled to Europe in late 2001. Overaker faces 19 felony charges including conspiracy to commit arson, conspiracy to commit arson and destruction of an energy facility, attempted arson, and arson in the District of Oregon, the Western District of Washington, and the District of Colorado. The FBI continues to offer a reward of up to $50,000 for information leading to Overaker’s arrest.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Asphaug, and U.S. Attorneys Phillip A. Talbert of the Eastern District of California and Nicholas W. Brown of the Western District of Washington made the announcement.
This case was investigated by the FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by the U.S. Attorney’s Offices for the District of Oregon, Northern District of California, and Western District of Washington, and the National Security Division’s Counterterrorism Section.
Owners of Behavioral Health Companies Sentenced for Medicaid FraudRead the Press Release
LAS VEGAS – The owners of two behavioral health companies in Las Vegas were sentenced yesterday to three years’ probation for their roles in defrauding the Medicaid health care benefit program of thousands of dollars.
Erica Goodley (37) and Billy Kirby (38), both of Georgia, each pleaded guilty in January 2022 to one count of conspiracy to commit health care fraud and one count of health care fraud. In addition to the three-year term of probation, U.S. District Judge Andrew P. Gordon ordered the forfeiture of $499,440.70 from the defendants.
According to court documents, Goodley and Kirby were the owners of Endeavor Behavioral Health and International Behavioral Health. From June 2016 to February 2018, Goodley and Kirby conspired to provide false representations and omissions on applications to enroll the companies as medical providers with Medicaid. On the applications, they omitted Kirby’s 2005 gross misdemeanor conviction.
It was further part of the conspiracy that the companies fraudulently billed Nevada Medicaid for 24 hours of counseling services by a single counselor in one day and for counselors who did not exist or did not work at the companies at the time of the services. As a result of the false billing, Goodley and Kirby caused a loss of thousands of dollars from Medicaid.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Albert Childress for the IRS-Criminal Investigation (IRS-CI), and Nevada Attorney General Aaron D. Ford made the announcement.
This case was investigated by IRS-CI and the Nevada Attorney General’s Office. Assistant U.S. Attorneys Christopher Burton and Steven Myhre prosecuted the case.
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Orleans Parish Man Pleads Guilty to Drug Trafficking OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DAVID SINGLETON, age 62, of New Orleans, pled guilty to violations of the Federal Controlled Substances Act. Specifically, SINGLETON pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B) and 846.
According to court documents, SINGLETON possessed over 500 grams of cocaine hydrochloride on about October 20, 2017 in New Orleans.
SINGLETON faces a mandatory minimum sentence of 10 years of imprisonment, up to life imprisonment, a fine of up to $8,000,000, at least 8 years of supervised release, and a $100 mandatory special assessment fee. United States District Judge Ivan L.R. Lemelle set sentencing for July 20, 2022.
U.S. Attorney Evans praised the work of the Federal Drug Enforcement Administration and the New Orleans Police Department in investigating this case. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Oregon Man Sentenced to 16 Years on Drug and Assault ChargesRead the Press Release
ANCHORAGE – An Oregon man was sentenced today by U.S. District Judge Ralph R. Beistline to 16 years in prison for drug conspiracy and assault of a corrections officer.
According to court documents, Michael Hindman, 32, mailed multiple packages of heroin and methamphetamine to a local drug dealer in Unalaska, Alaska, during 2019. In return, the local dealer mailed Hindman boxes of cash to pay for the drugs. One specific package Hindman sent on October 9, 2019, contained 93 grams of heroin. This heroin was divided and sold to individuals throughout the Unalaska community. On October 16 an individual who had received a baggie of the heroin was found deceased in a local hotel room. The medical examiner confirmed that the individual had died of a heroin overdose. The investigation led to Hindman, who was living in Oregon, as the distributor of the heroin to Unalaska.
Hindman was arrested in November 2019 on the federal drug charge. While being held at the Anchorage Correctional Complex in June 2020, Hindman assaulted an Alaska Department of Corrections Officer which required emergency room treatment.
Hindman pleaded guilty to both charges in August 2021.
“The US Attorney’s office and our law-enforcement partners will not stand by while drug dealers peddle their poison and kill Alaskans,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “This heavy sentence should be a warning to anyone considering trafficking in opioids, even from outside the state.”
“The sentencing of Michael Hindman removes a dangerous criminal from the streets and provides closure to the family of his victim. The shipment of illegal narcotics has no place in the US Postal Service and the State of Alaska.” said Inspector in Charge Anthony Galetti, “The US Postal Inspection Service is determined to investigate those who use the US Mail in support of their criminal activities. We thank our state, local and federal partners for their support and efforts in this investigation.”
The U.S. Postal Inspection Service, U.S. Coast Guard Investigative Service and the Unalaska Department of Public Safety investigated the drug conspiracy case. The U.S. Marshal Service investigated the assault with assistance from Alaska State Troopers and the Alaska Department of Corrections.
Criminal Chief, Assistant U.S. Attorney Christina Sherman and Assistant U.S. Attorney Karen Vandergaw prosecuted the case.
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Non-Citizen Charged with Hindering Removal to JamaicaRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cleon Ainsworth Samuels, age 32, was indicted on April 20, 2022, by a federal grand jury for hindering removal.
According to United States Attorney John C. Gurganus, Samuels is a removable alien, with a valid order of removal. The indictment alleges that Samuels knowingly took steps to prevent his own removal by failing to allow collection of a COVID-19 test which is necessary for air travel to effectuate his removal from the United States.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
Samuels faces a maximum penalty of four years 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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New York For-Hire Vehicle Driver Sentenced to 235 Months in Prison for Sex CrimesRead the Press Release
CAMDEN, N.J. – A New York man was sentenced today to 235 months in prison for enticing and transporting a minor across state lines to engage in sexual activity, and for receiving images of child sexual abuse from another minor, U.S. Attorney Philip R. Sellinger announced.
Richard Gabriel Piedra Ordonez, 37, of Queens, New York, previously pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to a three-count information charging him with one count of coercion and enticement of a minor; one count of transporting a minor to engage in criminal sexual activity; and one count of receiving child pornography. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In April 2019, Piedra began communicating with a New Jersey resident who was under the age of 16 using Snapchat and other social media and messaging platforms. Piedra was aware of the minor’s age and misrepresented his own age as 19 when he was actually 35 years old. Over the course of the subsequent months, Piedra and the victim met in person and engaged sexual activity. On multiple occasions, Piedra traveled to New Jersey to have sex with the victim and drove the victim to his home in New York City, where they engaged in sexual activity.
Federal law enforcement agents executing a search warrant on Piedra’s residence in December 2019 found sexually explicit images and videos of minors on a hard drive located in Piedra’s bedroom. Further investigation revealed that, in 2017, Piedra had communicated with an Indiana resident who was under the age of 15 using various social media and messaging platforms. Piedra was aware of the minor’s age and misrepresented his own age as 19 years old. Piedra requested and received sexually explicit images and videos from the Indiana victim.
In addition to the prison term, Judge Hillman sentenced Piedra to 10 years of supervised release and ordered him to register as a sex offender.
U.S. Attorney Sellinger credited special agents with FBI’s Atlantic City Child Exploitation & Human Trafficking Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill; and the N.J State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. He also thanked the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
New Jersey Pawn Shop and its Owner Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Daniel Markus Inc., which operated pawn shops in New Jersey, and its owner have agreed to pay $50,000 in civil penalties to settle allegations that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. The company also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $240,000 on the improper loan.
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“This resolution demonstrates that the department will identify those who took advantage of relief packages meant to help the American people and will take steps to recover ill-gotten funds whenever possible,” said Associate Deputy Attorney General Kevin A. Chambers, the department’s Director of COVID-19 Fraud Enforcement.
“OIG continues to identify and bring to justice anyone who wrongfully obtains benefits from SBA programs,” said Special Agent-in-Charge Amaleka McCall-Brathwaite for SBA Office of Inspector General (OIG). “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Daniel Markus Inc. knowingly and improperly received and retained a second, duplicative PPP loan in 2020.
The settlement with Daniel Markus Inc., and its owner, Margarita Risis, resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry, and, as part of the resolution, he will receive approximately $3,500 as a share of the False Claims Act recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney David V. Simunovich of the District of New Jersey.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
New Jersey Man Indicted for Wire Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Juller Perez, age 43, of Garfield, New Jersey, was arraigned today on an indictment charging him with engaging in a kickback scheme to defraud a company with operations in Greene County, from at least 2015 to 2019. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Tammy L. Tomlins, Special Agent in Charge of the Newark Field Office of Internal Revenue Service – Criminal Investigation (IRS-CI).
According to the indictment, from at least 2015 to 2019, Perez co-owned a trucking company in New Jersey that transported products as a third-party contractor for a bedding company with a distribution facility in West Coxsackie, New York. As part of the fraudulent scheme, Perez paid kickbacks to the transportation manager of the bedding company in exchange for the use of the bedding company’s trucks and drivers to transport merchandise from West Coxsackie to Perez’s truck yard in Clifton, New Jersey, which allowed Perez to avoid certain transportation costs. Perez then fraudulently invoiced and received payment from the bedding company as if his trucking company had transported and delivered the merchandise from West Coxsackie when Perez and his trucking company transported the merchandise only from the Clifton, New Jersey location.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Perez carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Perez was arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and was released pending a trial before United States District Judge Mae A. D’Agostino.
This case is being investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
New Haven Man Sentenced to Federal Prison for Selling CrackRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that TASHAUN FAIR, 29, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 21 months of imprisonment, followed by one year of supervised release, for distributing crack.
According to court documents and statements made in court, in 2020, the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department conducted an investigation into narcotics trafficking and related criminal activity in and around New Haven. In November 2020, Fair was intercepted over a court-authorized wiretap ordering distribution quantities of crack from his associate, Devaro Taylor. Fair then sold the drug to his own customers.
Fair has been detained since his arrest on January 26, 2021. On May 25, 2021, he pleaded guilty to one count of use of a telephone to facilitate a drug trafficking felony.
Fair’s criminal history includes several convictions, including two convictions related to his involvement in gunpoint robberies.
Taylor has pleaded guilty and awaits sentencing.
The FBI’s New Haven Safe Streets/Gang Task Force includes members from the New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police and Connecticut Department of Correction. The U.S. Drug Enforcement Administration and West Haven Police Department assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile and Marc H. Silverman through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nevada Man Charged in Kidnapping ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on April 14, 2022, Aron Lee Ethridge, 41, of Henderson, Nevada was indicted on charges of participating in a conspiracy resulting in the kidnapping of Gregory Davis, a resident of Danville, Vermont, on January 6, 2018. Ethridge had his initial appearance on this charge in the District of Vermont on April 20, 2022, and he has a detention hearing scheduled for April 25, 2022.
The indictment identifies Ethridge’s co-conspirator as Jerry Banks, who was indicted on April 14, 2022, in the District of Vermont on kidnapping charges. The indictment charging Ethridge explains how Banks communicated with Ethridge about the kidnapping and murder of Davis.
The charges against Ethridge carry a maximum penalty of life imprisonment. Any actual sentence will be determined with reference to the Federal Sentencing Guidelines. The indictment charging Ethridge contains accusations only, and the defendant is presumed innocent until and unless proven guilty.
The prosecutors are Assistant United States Attorneys Paul Van de Graaf and Jonathan Ophardt. Mark A. Kaplan, Esq. represents Ethridge.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in their collaborative investigation of Ethridge.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Milwaukee Man Sentenced to 15 years in Prison for Home Invasion RobberyRead the Press Release
United States Attorney Richard G. Frohling has announced that April 21, 2022, United States District Judge Lynn Adelman sentenced Michael Robertson to 15 years in federal prison after Mr. Robertson pled guilty to robbery affecting interstate commerce. Mr. Robertson was charged under the Hobbs Act. He also faced a 10-year mandatory minimum for discharging a firearm during a crime of violence.
The evidence showed that on June 23, 2021, Mr. Robertson entered the 59-year-old victim’s home armed with two firearms and demanded her money and property. When the victim resisted, Mr. Robertson fired his gun into her couch twice and pistol-whipped her in the head. Mr. Robertson stole the victim’s bag containing U.S. currency and various controlled substances and fled.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorney Abbey M. Marzick.
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Michigan City Man Sentenced to 84 Months in PrisonRead the Press Release
SOUTH BEND – Colton Crawford, 33 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Crawford was sentenced to 84 months in prison followed by 2 years of supervised release.
According to documents in this case, in August 2020, Crawford was stopped by police. During the stop, police discovered a handgun, magazines, and a holster, which DNA verified he possessed. Crawford has a June 2015 felony conviction in LaPorte County Superior Court which prohibits him from possessing any firearm and/or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police. This case was prosecuted by Assistant U.S. Attorneys Geovanny Martinez and Kimberly Schultz.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mexican Woman Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BLANCA ESTELA AVALOS ALEJANDRO, age 41, a native of Mexico, was charged today in a one-count indictment with illegally using a social security number in order to enroll in a safety class to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
BLANCA ESTELA AVALOS ALEJANDRO faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Mexican National Indicted for Distribution of Fentanyl and Other Drugs in Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramos, 48, of Sinaloa, Mexico, charging him with distributing and possessing with intent to distribute fentanyl, eutylone, hydrocodone, and ketamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 13, 2021, after negotiating for the delivery 10,000 “pills” and “one of China”–a street term for synthetic heroin powder usually containing fentanyl–Ramos delivered pills containing fentanyl that weighed approximately 31 grams and approximately 2 pounds of a white powdery substance containing eutylone, hydrocodone, and ketamine. According to the Drug Enforcement Administration, 2 milligrams of fentanyl is considered a lethal dose. Ketamine is a schedule III pain reliever commonly used in anesthesia. Hydrocodone is a schedule II opiate used for severe pain. Eutylone is a schedule I stimulant, and is also known as “boot.”
This case is the product of an investigation by the Fresno High Impact Investigation Team (HIIT), which is a High Intensity Drug Trafficking Area Initiative (HIDTA) composed of law enforcement personnel from the Federal Bureau of Investigation; the DEA; the California Department of Justice; the California Highway Patrol; the Sheriff’s Offices of Fresno, Tulare, and Kings Counties; and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Ramos faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Citizen Sentenced to 60 Months for Trempealeau County Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Karlett Salazar Zagal, 23, a citizen of Mexico living in Trempealeau County, Wisconsin, pleaded guilty and was sentenced today by U.S. District Judge William M. Conley to 60 months in prison for conspiracy to distribute cocaine.
In August 2020, law enforcement received information that several people sold cocaine at a barbershop and taverns in Arcadia, Wisconsin. As their investigation continued, law enforcement learned that three people in Wisconsin received cocaine from someone in Puerto Rico. The Puerto Rican source-of-supply shipped ½ kilogram quantities of cocaine at a time, via U.S. Mail, and hid the drugs inside radios, printers, or bedsheets. In exchange for the cocaine, the Wisconsin-based cocaine traffickers sent money and guns to Puerto Rico.
As part of the investigation, United States Postal Service Office of Inspector General (USPS-OIG) agents obtained and executed several federal search warrants. On May 5, 2021, agents obtained a federal search warrant for a parcel sent from Puerto Rico and destined for a residence in Winona, Minnesota. The Minnesota residence belonged to a person associated with the Wisconsin-based cocaine traffickers. Inside the parcel, investigators found 557 grams of cocaine hidden inside a large Bluetooth speaker.
On June 29, 2021, a USPS-OIG agent obtained a federal search warrant for a parcel sent from Independence, Wisconsin to a residence in Puerto Rico. Inside the parcel, investigators discovered two Glock semi-automatic handguns.
On July 13, 2021, a USPS-OIG agent obtained a federal search warrant for a parcel sent from Puerto Rico to an address in Independence, Wisconsin. Inside, investigators found 506 grams of cocaine. On July 14, 2021, investigators conducted a controlled delivery of the parcel and executed a search warrant. Law enforcement found Salazar, another member of the conspiracy, and an underage female inside the residence.
During a post-arrest interview, Salazar admitted that she “knew what was going on” because she helped run the cocaine business. She discussed how a Puerto Rican source-of-supply sent cocaine to Wisconsin through the U.S. Mail, as well as how the Wisconsin-based traffickers distributed the drugs in and around Arcadia. Salazar also admitted that she helped send the Glock pistols to Puerto Rico.
In imposing the sentence, Judge Conley highlighted Salazar’s role in a large drug conspiracy, and Salazar’s decision to send firearms on behalf of another member of the conspiracy.
The charge against Salazar was the result of an investigation conducted by the USPS-OIG; U.S. Postal Inspection Service; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wisconsin Department of Justice Division of Criminal Investigation; Trempealeau County Sheriff’s Office; Winona County (Minnesota) Sheriff’s Office; Arcadia Police Department; and Independence Police Department. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.