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21 April 2022
Massachusetts Woman Pleads Guilty to Bank FraudRead the Press Release
CONCORD - Niurka Lebron, 45, of Dorchester, Massachusetts, pleaded guilty in federal court to bank fraud on Wednesday, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February 2019, the defendant was involved in a scheme to defraud several financial institutions. The defendants in the scheme applied for and obtained multiple loans to purchase cars purportedly sold by Allied Imports, a Manchester car wholesaler, and Cap’s Auto Sales, a Manchester car retailer. The sales were fraudulent because the defendants never owned or greatly inflated the value of the cars. In total, the defendants defrauded the financial institutions of several hundred thousand dollars.
Lebron participated in the scheme by signing a fraudulent car purchase contract from Allied Imports. She then used the contract to apply for a car loan secured by the vehicle, which Allied Imports did not own or have the title to.
Lebron is scheduled to be sentenced on August 22, 2022.
“Criminals use a wide variety of schemes to commit financial crimes,” said U.S. Attorney Farley. “We work closely with our law enforcement partners to uncover fraud schemes in the Granite State and to hold wrongdoers accountable for their unlawful activities.”
This matter was investigated by the United States Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen and Assistant U.S. Attorney Charles L. Rombeau.
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Marion, Indiana Woman Sentenced to 27 Months in Prison and Ordered to Pay $338,278.17 in RestitutionRead the Press Release
FORT WAYNE – Christina M. Morris, 50 years old, of Marion, Indiana, was sentenced by United States District Court Judge Holly A. Brady on her plea of guilty to mail fraud, announced United States Attorney Clifford D. Johnson.
Morris was sentenced to 27 months in prison followed by 1 year of supervised release and was also ordered to pay $338,278.17 in restitution to the Department of Veterans Affairs.
According to documents in this case, beginning in 2007, Morris worked for the Department of Veterans Affairs (VA) at the VA Medical Center in Marion, Indiana. In February 2008, Morris suffered a fall while working. She then filed a worker’s compensation claim and began receiving benefits, including payment for medical care related to her injury and expenses. As late as 2018 and 2019, Morris was regularly submitting claims through the U.S. Mail for reimbursement alleging that she traveled roughly 200 miles roundtrip to a clinic for treatment six days per week and had incurred out of pocket expenses. Agents spoke with employees at the clinic who revealed that Morris had not received treatment at the clinic for years and that her claims and the receipts submitted to support them were fraudulent. The fraudulent claims began in January 2014 and continued until July 2019, when Morris was confronted by investigators and admitted that she had filed false claims for reimbursement for treatment, mileage and expenses. The investigation revealed that Morris had filed 670 fraudulent claims for a total of $338,278.17.
This case was investigated by the Department of Labor, Office of the Inspector General and the Department of Veterans Affairs, Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
Man Pleads Guilty to Civil Rights Conspiracy Involving Robbery and KidnappingRead the Press Release
Memphis, TN- Kenneth Hicks, 62, has pleaded guilty to civil rights conspiracy violations. Joseph C. Murphy Jr., United States Attorney, announced the guilty plea today.
According to information presented in court, after a four-day jury trial, on April 15, 2022, Kenneth Hicks pled guilty to conspiring to violate the civil rights of others. Proof submitted to the jury and the court showed that between 2014 and 2018 Anthony Davis, Sam Blue, Ronnie Woods, Lester Page, Kenneth Hicks, David Douglas, and Jarvis Howard conspired to rob drug dealers of drugs and drug proceeds acting under color of law. Sam Blue was a sworn Memphis Police Department officer during this time. Hicks joined the conspiracy in the summer of 2018.
Prior to the planned robberies, various co-conspirators would conduct surveillance of the targets. Blue provided his co-conspirators with equipment, including an official MPD badge, and a car dashboard blue light to use during the planned robberies so that they could falsely claim to be or appear to be law enforcement officers. In the summer of 2018, conspirators targeted individuals believed to be in possession of drugs and drug proceeds. The plan was to pose as law enforcement and detain the targets and seize the drugs and/or money. Blue provided law enforcement sensitive information in furtherance of the conspiracy to rob these individuals and violate their constitutional rights. To further the conspiracy, Blue would contact MPD dispatch and request that a license plate be run. Blue would pass that information along to Davis. Blue also provided advice as to tactics to use to appear that the conspirators were law enforcement.
On July 13, 2018, the final victim was leaving his apartment in Memphis around 4:30 a.m. when a black car with flashing blue lights pulled up behind his car. Hicks and Douglas, dressed in law enforcement type clothing with the word "police" on it and wearing masks and armed with handguns, got out of the car, and ordered the victim to get on the ground.
He obeyed and the men handcuffed him, put a hood over his face, and put him in the back of their car. Hicks and Douglas then drove him to a house on Reese Road.
The victim was taken inside the house and restrained while the defendants beat him, burned him on his arm, neck, and head, and demanded that he tell them where he kept his money and/or drugs. The victim was able to eventually escape by diving head-first out of a window while still handcuffed and with a hood still over his head. A construction worker spotted him in the street and flagged down an officer to get him help. The victim suffered second and third-degree burns on his neck, face, and arms. He was hospitalized for a week in the burn unit at the Med and had to undergo surgery for his injuries including a skin graft to his arm.
"For the last 15 years, the FBI Memphis Field Office’s Tarnished Badge Task Force has been the model for investigating law enforcement corruption around the country," said Douglas M. Korneski, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "The Tarnished Badge Task Force is composed of law enforcement officers from the Shelby County Sheriff’s Office, Memphis Police Department, and the FBI. The continued commitment to investigating these crimes by the Shelby County Sheriff’s Office and Memphis Police Department has led to the tremendous success of this task force and helped deter criminal behavior and restore public trust in law enforcement. Since its inception, investigating law enforcement corruption has been a top priority for all three agencies and continued focus resulted in this successful prosecution."
"We are thankful for the dedicated work of the Tarnished Badge Task Force that led to the arrest of Kenneth Hicks and other coconspirators. This case is just another reminder that no one is above the law. Additionally, we should never let the unlawful actions of one group of individuals diminish the extraordinary work being done daily by the committed men and women of law enforcement," said Assistant Chief Don Crowe.
"These critical arrests are examples of what we can accomplish when our local and federal law enforcement agencies work together on joint task force operations in order to remove these criminal elements from our streets of Shelby County," said Shelby County Sheriff Floyd Bonner, Jr. "I am proud of our law enforcement partners, and my deputies assigned to this task force, for their collaborations to investigate and make these arrests."
Sentencing is set for August 25, 2022, before United States District Judge John T. Fowlkes, Jr., where Hicks faces up to life imprisonment. The remaining co-conspirators have pled guilty and are awaiting sentencing. There is no parole in the federal system.
This case was investigated by the FBI Tarnished Badge Task Force, a national model for investigating law enforcement corruption, comprised of the Memphis Police Department, the Shelby County Sheriff’s Office and FBI team members.
Assistant United States Attorney David Pritchard prosecuted this case on behalf of the government.
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Major San Francisco Drug Trafficker Convicted of Possessing with Intent to Distribute 65 Pounds of MethamphetamineRead the Press Release
SAN FRANCISCO – Alejandro Alvarez was convicted of possession with intent to distribute methamphetamine by a federal jury, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon. The guilty verdict followed a four-day jury trial before the Honorable William H. Orrick, U.S. District Court Judge, in San Francisco.
Evidence at trial showed that Alvarez, 46, of San Francisco, was dealing tens of thousands of dollars’ worth of methamphetamine and heroin monthly at the time that San Francisco Police Department officers executed a search warrant at his residence and recovered about 65 pounds of methamphetamine. The methamphetamine was valued at more than $1.5 million when sold in retail quantities. Alvarez’s stash contained more than five million individual doses.
The trial evidence demonstrated that the investigation began when officers with the San Francisco Police Department learned that an individual who went by the name “Chewy” was selling heroin and other drugs. Eventually officers developed enough evidence to execute a search warrant on Alvarez’s apartment. They recovered over $46,000 in bulk cash, ledgers that detailed drug deals and pricing, several pounds of suspected heroin, some 65 pounds of methamphetamine, and other indicia of drug trafficking.
On February 20, 2020, a federal grand jury indicted Alvarez, charging his with one count of possession with intent to distribute 500 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii). Pursuant to the jury’s verdict, Alvarez was found guilty of the sole count in the indictment.
Judge Orrick scheduled Alvarez’s sentencing for July 14, 2022. Alvarez faces a maximum statutory penalty of life imprisonment and a fine of $10,000,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Joseph Tartakovsky and Alexis James are prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by the San Francisco Police Department, United States Drug Enforcement Administration, and the U.S. Attorney’s Office.
Lyndonville Woman Sentenced for Selling Misbranded Pet MedicationsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Lisa Wheeler, 56, of Lyndonville, Vermont was sentenced by United States Chief Judge Geoffrey W. Crawford on April 19, 2022 to time served for selling misbranded pet medications which were not approved for use in the United States. Chief Judge Crawford also sentenced Wheeler to three months of probation during which she must complete 20 hours of community service at a humane society or other animal charity. The maximum penalty for this misdemeanor offense was one year imprisonment and a $100,000 fine.
Wheeler also agreed to forfeit a substantial amount of pet medications, which were seized from her residence pursuant to a search warrant executed in August 2020. As the government noted at sentencing, Wheeler fully accepted responsibility for the offense and cooperated with the investigation.
According to court records, in 2020, Wheeler received voluminous shipments of prescription pet products, including flea medications, from a United Kingdom company associated with Bestflea.com, Petbucket.com, and Pharma Group. These medications were unapproved versions of prescription pet drugs available in the United States. Wheeler received hundreds of bulk packages of these pet medications and repackaged them for shipping to customers within the United States. Wheeler received a commission from the owner of the British companies for each parcel she shipped on their behalf.
Acting Special Agent in Charge Ronne G. Malham, Food and Drug Administration Office of Criminal Investigations New York Field Office stated that “FDA’s responsibility to protect the public health includes ensuring that prescription drugs for animals are safe and effective and dispensed according to valid veterinary prescriptions. We will continue to pursue and bring to justice those who attempt to evade the laws designed to protect our companion animals.”
This case was investigated by the Food and Drug Administration (Office of Criminal Investigations) and the U.S. Postal Inspection Service. United States Attorney Nikolas P. Kerest commended the efforts of the FDA Office of Criminal Investigations and the U.S. Postal Inspection Service in the investigation of Wheeler.
The United States is represented by Assistant U.S. Attorney Joseph Perella. Wheeler is represented by Mary Nerino, Esq. of the Federal Public Defender’s Office in Burlington, Vermont.
Luzerne County Couple Charged with Drug Trafficking ConspiracyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerome Edward Sturdivant, age 39, and Alison Sawchak, age 39, both of Wilkes-Barre, Pennsylvania, were indicted on March 29, 2022, by a federal grand jury for participating in a drug trafficking conspiracy.
According to United States Attorney John C. Gurganus, the indictment alleges that Sturdivant and Sawchak conspired to distribute cocaine and methamphetamine from August to October 2020. The indictment further alleges that Sturdivant, who is a convicted felon, unlawfully possessed firearms and ammunition.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania Office of the Attorney General Bureau of Narcotics Investigation and Drug Control, and the Wilkes-Barre Police Department. Assistant United States Attorney Jeffery St John is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law for these offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lubbock Postal Contractors Sentenced to 7+ Years for Stealing MailRead the Press Release
Two Lubbock postal contractors have been sentenced to a combined seven years and 10 months in federal prison for possession of stolen mail, announced Acting U.S. Attorney Chad E. Meacham.
The investigation – which culminated in the recovery of more than 8,000 pieces of mail with face values in excess of $4 million – marked the largest ever seizure of stolen mail in Northern District of Texas history.
Joe Roy Rivas, III, 22, and Jessica Lynn Solomon, 35, were indicted in October 2021. Mr. Rivas pleaded guilty in December 2021 to conspiracy to possess stolen mail and he was sentenced earlier this month to 57 months in federal prison. Two weeks after Mr. Rivas entered his plea, Ms. Solomon pleaded guilty to the same charges; she was sentenced Thursday to 37 months in federal prison.
“The U.S. Postal Inspection Service takes any report of mail theft seriously and will conduct an aggressive investigation,” said Thomas Noyes, Postal Inspector in Charge of the Fort Worth Division. “An egregious element of this case was the discovery of these few contractors who chose to violate their position of trust. This action brought to bear a swift and comprehensive response by both Postal Inspectors and our law enforcement partners aimed at bringing the criminal activity to an end. We thank the U.S. Attorney’s Office in the Northern District of Texas for their commitment in seeking justice on behalf of those who were affected by the crimes this group committed. Postal Inspectors will not cease in their ongoing effort to safeguard the U.S. Postal Service, its customers and ensure public trust in the mail.”
According to plea papers, Mr. Rivas and Ms. Solomon were former co-workers at Cargo Force, Inc., a company that contracts with the United States Postal Service to load mail into and out of air containers destined for flights to and from the Lubbock International Airport.
The defendants admitted they began stealing mail at the start of their employment with Cargo Force, approximately two years before they were caught. During their shifts, they sifted through mail looking for items containing merchandise, cash, gift cards, checks, and money orders.
The 8,000 pieces of stolen mail law enforcement recovered from the Rivas and Solomon were post-marked within a four-day period. Law enforcement found the staggering heap of stolen mail stuffed into 55-gallon trash bags and stockpiled inside a residence the two shared in Slaton, Texas.
The investigation revealed that the conspiracy involved regular “washing” of checks – removing the name of one payee to replace it with another – and selling cell phones removed from mail handled by Cargo Force.
At their sentencing hearings, prosecutors advised that the mail was destined for 36 states within the contiguous United States, Washington, D.C., and the Virgin Islands.
Prosecutors highlighted some of the mail that had been kept from its proper recipients: a multitude of payments to entities such as mortgage bankers; over 40 pieces of mail related to federal court proceedings; more than 50 letters from local college admissions offices to applicants; and numerous greeting cards intended to brighten someone’s day. The addresses and addressors included churches, charitable organizations, prison ministries, local judicial and law enforcement entities, financial institutions, trust companies, banks, lenders, local school districts, hospitals, hospices, pharmaceutical companies, medical equipment companies, and funeral homes.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Texas Department of Public Safety and the Slaton Police Department. Assistant U.S. Attorneys Ann Howey and Jeff Haag prosecuted the case.
Local Santa Rosa Lima Cartel Cell Head Sentenced for Drug Crimes, Money LaunderingRead the Press Release
A local Dallas cell head who worked with the Santa Rosa Lima Drug Cartel and other Mexico-based drug trafficking organizations was sentenced Wednesday to more than 16 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Carlos Espinoza Juarez, an 33-year-old Mexican national, pleaded guilty in July 2020 to money laundering and conspiracy to possess with intent to distribute heroin. He was sentenced by U.S. District Judge Ed Kinkeade.
According to plea papers, Mr. Juarez admitted he conspired to traffic drugs.
On Feb. 8, 2015, he admitted, he directed codefendant Heriberto Talamantes-Ceballos to deliver approximately one ounce of heroin to a buyer in exchange for $880.00; about a month later, on March 12, he directed codefendant Edwin Contreras-Diaz to deliver approximately three ounces of heroin to a buyer in exchange for $2640.00. Both men did so. The defendant also admitted to sending approximately three kilograms of heroin to Dorchester, Massachusetts.
Mr. Juarez further admitted to orchestrating a series of other drug deliveries, spanning from Texas to South Carolina, over the course of at least four years.
He also admitted to using fake names to wire money to recipients in Guanajuato, Mexico, in an effort to launder the proceeds of his illegal drug dealing.
As part of his plea deal, Mr. Juarez agreed to forfeit more than $35,000, six firearms, and two vehicles, including a Chevy Tahoe and a GMC Sierra. A foreign citizen in the U.S. illegally, he will face deportation proceedings after serving his sentence.
Seven additional defendants have been convicted in this case:
- Edwin Contreras-Diaz, aka “Flaco” – pleaded guilty to possession with intent to distribute heroin
- Heriberto Talamantes-Ceballos – pleaded guilty to possession with intent to distribute heroin
- Marcos Fernando Valle – pleaded guilty to conspiracy to possess with intent to distribute cocaine
- Adrian Lopez Olalde – pleaded guilty to money laundering and was sentenced to 72 months in federal prison
- Omar Suarez-Garcia – pleaded guilty to conspiracy to possess with intent to distribute heroin
- Bianca Jeannette Martinez – pleaded guilty to conspiracy to possess with intent to distribute heroin
- John Paul Sanchez – pleaded guilty to conspiracy to possess with intent to distribute heroin
The Drug Enforcement Administration’s Dallas Field Division and the Texas Department of Public Safety conducted the investigation with the assistance of the Grand Prairie Police Department, Grapevine Police Department, Lancaster Police Department, Dallas Police Department, Haltom City Police Department, the DEA’s Boston Field Division, the 24th Judicial district Drug and Violent Crime Drug Task Force, Decatur County, TN, U.S. Customs and Border Patrol, the Will County Sheriff’s Office, Peotone, IL., the Illinois State Police, Columbia Police Department, Columbia, South Carolina and IRS - Criminal Investigations. The case was prosecuted by Assistant United States Attorney George Leal.
The case stemmed from an Organized Crime Drug Task Force (OCDETF) investigation led by the North Texas OCEDTF Strike Force. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
Local President of "We Build the Wall" Pleads Guilty to Federal ChargesRead the Press Release
PENSACOLA, FLORIDA – Brian G. Kolfage, of Miramar Beach, Florida, pled guilty today for crimes charged in the Northern District of Florida relating to the filing of his 2019 federal income taxes. The plea was announced by Jason R. Coody, United States Attorney for the Northern District of Florida today.
Kolfage entered a guilty plea to three federal charges related to filing false income tax returns for the tax year 2019. With this plea, Kolfage admitted, under oath, that between January 2019 and July 2020, he engaged in a scheme to defraud the United States in relation to his 2019 federal income tax returns. Kolfage admitted receiving hundreds of thousands of dollars from multiple organizations during 2019, including We Build the Wall, Inc., which were deposited into his personal bank account. Kolfage failed to report this income to the Internal Revenue Service. Upon learning of an investigation into his federal income taxes, Kolfage then filed amended tax returns for 2019 that were also false. These amended tax returns continued to falsely fail to report income deriving directly from We Build the Wall and indirectly from We Build the Wall after being routed through other organizations in order to obfuscate where the money came from.
Kolfage’s plea was entered in the District Court for the Southern District of New York along with a guilty plea to conspiracy to commit wire fraud charges filed by the United States Attorney’s Office for the Southern District of New York for fraud related to donors of “We Build the Wall.”
Sentencing in this case is currently set for September 6, 2022, at 1:00 p.m., at the United States Courthouse in the Southern District of New York before the Honorable United States District Judge Analisa Torres.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Office of Agricultural Law Enforcement of the Florida Department of Agriculture and Consumer Services. The case was prosecuted by Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Liverpool Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Dominic Zampini, age 26, of Liverpool, New York, pled guilty today to one count of receipt of child pornography and two counts of possession of child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.
Zampini, who remains detained pending his sentencing scheduled for August 24, 2022, faces at least 5 years’ and up to 60 years’ imprisonment on the charges. Following a sentence of imprisonment, Zampini will also be placed on a term of supervised release of between 5 years and life, and will be required to register as a sex offender upon his release from prison. 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.
As part of his guilty plea, Zampini admitted that between October 2020 and December 2020, he knowingly received child pornography images over the internet from another individual he met through a mobile application, and that in September, 2021 he possessed images depicting child pornography on two cell phones.
This case is being investigated the New York State Police and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Liberian National Sentenced to 10 Years for $23 Million COVID-19 Relief FraudRead the Press Release
A Liberian national who orchestrated a fraudulent scheme to secure more than $23 million in forgivable Paycheck Protection Program (PPP) loans was sentenced Thursday afternoon to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Steven Jalloul, a 43-year-old tax consultant from the Dallas area, was first charged via criminal complaint in September 2020; he pleaded guilty on in October 2021 to a superseding information charging him with one count of engaging in monetary transactions using property derived from unlawful activity. He was sentenced by U.S. District Judge Jane J. Boyle.
“Mr. Jalloul callously exploited the Paycheck Protection Program, which was designed to keep struggling businesses afloat during the pandemic. He took money out of the hands of businesspeople who truly needed it,” said U.S. Attorney Chad E. Meacham. “The Justice Department will not stand for PPP fraud.”
According to plea papers, Mr. Jalloul admitted he defrauded lenders participating in the Paycheck Protection Program — a measure authorized by Congress in the early days of the pandemic to award forgivable loans to small business impacted by COVID-19 — while awaiting sentencing in a separate tax fraud case.
In court documents, he admitted that he submitted roughly 170 falsified PPP loan applications to lenders (including through a fintech company) seeking more than $23 million on behalf of over 160 clients of his tax preparation business, Royalty Tax & Financial Services LLC.
Mr. Jalloul admitted he inflated clients’ employee rosters and monthly payroll expenses in order to increase the amount of PPP funds for which their businesses would be eligible. He generally charged clients a 2 to 20 percent commission on the PPP loans they received and even listed his ex-wife as Royalty Tax’s authorized representative, without her consent, when seeking an inflated PPP loan for his own business.
In total, 97 false PPP loan applications were ultimately approved, and Mr. Jalloul’s clients were awarded more than $12 million in PPP money. Those clients paid him at least $972,114 in fees. Mr. Jalloul also admitted to submitting a fraudulent PPP loan application on behalf of his tax preparer company and received $163,500 in PPP funds.
Mr. Jalloul was already behind bars at FCI-Seagoville, having pleaded guilty to tax fraud in the separate case in January 2020; in that case, he was sentenced to six years in federal prison. Judge Boyle ruled that he will serve his sentence in the PPP case consecutive to his sentence in the tax fraud case.
The Dallas Field Offices of the Federal Deposit Insurance Corporation's Office of Inspector General and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Fabio Leonardi and Marty Basu are prosecuting the case. Assistant U.S. Attorney Dimitri Rocha is handling the asset-forfeiture component of the case.
The Paycheck Protection Program was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP initially provided for up to $349 billion in forgivable loans to small businesses for payroll costs and certain other expenses, including rent; in April 2020, Congress authorized more than $300 billion in additional PPP funding. The PPP allows qualifying small businesses to receive loans with a maturity of two years and an interest rate of 1 percent. In addition, the PPP allows both the interest and principal on the loans to be forgiven if the business spends the money on qualifying expenses within a designated period of time
Las Vegas Man Sentenced to 15 Years in Federal Prison for Meth TraffickingRead the Press Release
United States Attorney Dennis R. Holmes announced that a Las Vegas, Nevada, man convicted of Conspiracy to Distribute a Controlled Substance - Methamphetamine was sentenced on March 18, 2022, by U.S. District Judge Karen E. Schreier.
Jesse Stewart, age 47, was sentenced to 15 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Stewart was indicted for Conspiracy to Distribute a Controlled Substance – Methamphetamine by a federal grand jury in January 2020. He pleaded guilty on December 10, 2021.
In September 2019, law enforcement became aware of a group of people distributing methamphetamine in the Rapid City, South Dakota area, led by Edward Martin. Through the investigation, law enforcement confirmed a methamphetamine source for the conspiracy in Las Vegas, Nevada. Between the summer of 2019 and December 2019, at least five to 15 kilograms of methamphetamine was sent to Rapid City. Stewart sold the methamphetamine in Rapid City and arranged for Martin to come and expand those efforts. Co-conspirators in Rapid City and Las Vegas tracked mailed packages of methamphetamine and also received money wire transfers paying for the shipped methamphetamine. On December 19, 2019, law enforcement searched Martin’s hotel room and located Stewart, eight ounces of methamphetamine, a firearm, $5,066 cash, and other items indicative of drug distribution.
Edward Martin, Sara Skinner, Carmen Dillon, Keeler Stands, Melanie Vance, Tyler Olson, Christopher James, and Kirbesha Bailey have all previously been sentenced for their roles in this same conspiracy.
This case was investigated by the Drug Enforcement Agency, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspector, and the Unified Narcotics Enforcement Team (UNET). UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorneys Kathryn N. Rich and Eric Kelderman prosecuted the case.
Stewart was immediately returned to the custody of the U.S. Marshals Service.
Las Vegas Man Charged with Wire Fraud Related to Telemedicine SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sergey Duman, age 45, of Las Vegas, Nevada, was charged in a criminal information with wire fraud.
According to United States Attorney John C. Gurganus, the information alleges that between January 2020 and June 2020, Duman participated in a scheme to defraud private health insurance companies, the United States, and the Commonwealth of Pennsylvania. After Duman purchased Cedar Care Pharmacy in Allentown, Pennsylvania, in January 2020, a telemedicine company regularly submitted prescriptions to the pharmacy that had been written without the knowledge of the listed patient. Cedar Care Pharmacy then fraudulently submitted private insurance and Medicaid claims for the prescriptions even though the pharmacy never provided the prescribed medications to patients. The total amount of the fraudulent claims exceeds $4.8 million.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General. Assistant U.S. Attorneys Carlo D. Marchioli and Ravi Romel Sharma are prosecuting the case.
The maximum penalty under federal law for this offense is 20 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lantry Man Sentenced on Multiple ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Lantry, South Dakota, man convicted of Sexual Exploitation of a Child, Abusive Sexual Contact of a Child, and Sexual Abuse of a Minor, was sentenced on April 18, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Mato Dyda, age 21, was sentenced to 240 months in federal prison, followed by five years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $893.80.
Dyda was indicted by a federal grand jury on July 14, 2021. He pled guilty on January 13, 2022.
The conviction stems from incidences on June 26, 2020, and November 8, 2020, in Ziebach County, South Dakota, when Dyda engaged in and attempted to engage in sexual acts with two underage victims. Dyda also made videos of this sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation, Cheyenne River Sioux Tribe Law Enforcement Services, and the Ziebach County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
Dyda was immediately turned over to the custody of the U.S. Marshals Service.
Kentwood Man Pleads Guilty to Defrauding Employer and Filing False TaxesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on April 19, 2022 MICHAEL J. GOLL, age 46, of Kentwood, pleaded guilty to wire fraud and filing false federal tax returns. GOLL entered his guilty plea before U.S. District Judge Wendy B. Vitter. Judge Vitter scheduled GOLL’s sentencing for July 26, 2022, at 1:30 p.m.
According to court documents, GOLL was the New Orleans branch manager of Company A, which provides material handling equipment to businesses. From January 2013 through September 2017, GOLL defrauded Company A of approximately $549,667.39. GOLL is alleged to have executed the scheme by sending Company A false invoices from shell companies that he had created, when in fact the work was either done by Company A’s own employees or the work was not done at all. As part of the scheme, GOLL had a contractor who did personal work for GOLL inflate his bills to Company A to cover the work done for GOLL. GOLL justified the overbilling by telling the contractor that he planned on buying Company A in the future, although GOLL never did purchase Company A, and GOLL never told his employer about the overbilling.
Additionally, GOLL pleaded guilty to filing false federal tax returns. According to court documents, GOLL filed false personal income tax returns for tax years 2014 through and including 2017 in which he failed to accurately report his income, including the money that he embezzled from Company A. Moreover, GOLL also counseled three other people, all of whom personally knew GOLL, to file false tax returns. GOLL told each of them, falsely, that he had graduated summa cum laude from the University of New Orleans with a Ph.D. in business administration, a degree that the University of New Orleans does not actually offer. GOLL persuaded them to become business partners in a fake restaurant enterprise, which they believed was a true business opportunity. GOLL then instructed them to file tax returns claiming business losses that were nonexistent. GOLL had them each pay to him a portion of the false tax refund. Through his own false tax returns and those of the three others that he aided, GOLL caused a tax loss to the United States of $188,694.00.
As to the charge of wire fraud, GOLL may receive up to a maximum of 20 years in prison, up to three years of supervised release, and a fine of up to $250,000.00 or twice the gross gain or twice the gross loss to any victims. As to the charge of filing false tax returns, GOLL may receive up to 3 years in prison, up to one year of supervised release, and a fine of up to $100,000.00. Each count also carries a $100 mandatory special assessment fee. As part of his plea, GOLL agreed to make full restitution to Company A and to the IRS.
U.S. Attorney Evans praised the work of the U.S. Secret Service and Internal Revenue Service Criminal Investigation, which investigated this case jointly. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
KC Woman Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, woman pleaded guilty in federal court today to her role in a conspiracy to distribute large quantities of methamphetamine.
Sonia Ornelas, 44, pleaded guilty before U.S. District Judge Howard F. Sachs to participating in a conspiracy to distribute methamphetamine from Oct. 1, 2018, to Aug. 7, 2019.
A confidential source purchased 500.1 grams of methamphetamine from Ornelas for $3,500 during a controlled purchase on June 25, 2019.
On June 28, 2019, law enforcement officers executed a search warrant at Ornelas’s residence. Detectives found approximately 112 grams of methamphetamine, 11 firearms, two cell phones, a video surveillance recorder, drug paraphernalia, and two drug ledgers. Detectives also found $27,248 in cash, which Ornelas must forfeit to the government ($2,460 of this was from the controlled purchase on June 25, 2019).
Ornelas told investigators she paid $25,000 twice a month since October 2018 for methamphetamine (approximately $450,000 over nine months). At a price of $7,000 per kilogram, this represents at least 65 kilograms of methamphetamine. A confidential source identified Ornelas as a source of methamphetamine from March to August 2019. During this time, the confidential source purchased one or two kilograms of methamphetamine from Ornelas twice a week, for a total of 44 kilograms of methamphetamine, and paid $7,000 per kilogram. The confidential source also traded several firearms for methamphetamine.
Ornelas is the second defendant to plead guilty in this case. Co-defendant Adam L. Ragsdale, 45, of Independence, Mo., was sentenced on Oct. 14, 2021, to 10 years and one month in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
Under federal statutes, Ornelas is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Jackson County Drug Task Force, the Blue Springs, Mo., Police Department, the Independence, Mo., Police Department, and the Kansas City, Mo., Police Department.
Justice Department and Baltimore Police Department Provide Progress Report Five Years After Consent DecreeRead the Press Release
The Justice Department today joined the City of Baltimore, the Baltimore Police Department (BPD) and the Court-appointed independent monitoring team to report on the City’s and BPD’s progress toward compliance with the terms of the consent decree designed to ensure effective and constitutional policing in the City.
At today’s public hearing before U.S District Court Chief Judge James K. Bredar, the Justice Department recognized the significant accomplishments that have been achieved including:
- adoption of a problem-oriented approach to policing, prioritizing public safety, crime reduction and lawful patrol and enforcement efforts;
- adoption of a wide range of new policies covering use of force, transport, impartial policing and stops, searches and arrests, that provide clear guidance to officers to ensure effective and constitutional policing;
- revitalization of the training academy, including upgraded facilities, expanded staff and revamped in-service training curricula, including new trainings developed to educate officers on the revised policies;
- revitalization of the internal affairs unit, including expanded staff and new procedures and training to ensure fair and thorough investigations of alleged misconduct and consistent discipline when misconduct takes place;
- creation of auditing procedures to ensure proper supervisory review of use-of-force incidents, scrutiny of arrests that do not result in charges filed against the arrestee, and the use of safe practices in the transportation of individuals in custody; and
- procurement of a new records management system to ensure accurate and consistent incident reporting and case management throughout BPD.
The Justice Department noted that to fully comply with the decree, BPD must show that its officers are consistently and effectively following the new policies and trainings and being held accountable if they do not. In the coming months, the independent monitoring team will conduct detailed assessments of BPD’s compliance with the decree’s requirements regarding the use of force, arrests and sexual assault investigations. These assessments will provide a roadmap for BPD’s continuing efforts to achieve full compliance in these areas.
“The problems at BPD were many years in the making and we are pleased with the progress that has been made since the consent decree was put in place,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While much work remains, we believe that a strong foundation has been laid to achieve effective and constitutional policing in Baltimore. The citizens of Baltimore deserve nothing less.”
The Justice Department initiated an investigation of BPD in May 2015 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section, and findings were announced in August 2016. The consent decree was approved by the Court in April 2017.
The findings report and consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt. Additional information about implementation of the consent decree is also available on the BPD website at www.baltimorepolice.org and the monitoring team’s website at www.bpdmonitor.com. The department welcomes comments or concerns from the community via email at [email protected].
View the consent decree here.
View the consent decree fact sheet here.
View the findings report here.
View the findings summary here.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care-Related COVID-19 FraudRead the Press Release
NOTE: Criminal complaint against Nisim Davydov has been dismissed. Link to dismissal order is at end of press release.
NEWARK, N.J. –The Department of Justice announced criminal charges against 21 defendants in nine federal districts across the United States for their alleged participation in various health care related fraud schemes that exploited the COVID-19 pandemic. These cases allegedly resulted in over $149 million in COVID-19-related false billings to federal programs and theft from federally-funded pandemic assistance programs. In connection with the enforcement action, the department seized over $8 million in cash and other fraud proceeds.
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said.
“Billions of dollars have been spent by the federal government to help individuals and their companies with the economic impact of the COVID-19 epidemic,” U.S. Attorney Philip R. Sellinger, District of New Jersey, said. “Unfortunately, unscrupulous people have stolen millions of dollars through a variety of schemes. We will continue to bring cases to fight this kind of fraud.”
“This COVID-19 health care fraud enforcement action involves extraordinary efforts to prosecute some of the largest and most wide-ranging pandemic frauds detected to date,” Director for COVID-19 Fraud Enforcement Kevin Chambers said.
The April 20, 2022, announcement builds on the success of the May 2021 COVID-19 Enforcement Action and involves the prosecution of various COVID-19 health care fraud schemes.
In the District of New Jersey:
- Abid Syed, Taquir Din, Tamer Mohamed, Abdul Rauf, Tauquir Khan, and Nisim Davydov, all of New Jersey, are charged by criminal complaint with conspiracy to violate the Federal Anti-Kickback Statute for their roles in an alleged scheme to defraud Medicare by paying illegal kickbacks and bribes of over $250,000 for laboratory tests for COVID-19 pathogen tests. Syed and Din owned and controlled Metpath, a clinical laboratory in Parsippany, New Jersey, which performed and billed Medicare for COVID-19 diagnostic testing. Khan, Mohamed, and Davydov were marketers who supplied thousands of COVID-19 diagnostic tests to Metpath and who received kickbacks and bribes from Syed and Din for doing so. The complaint alleges that Metpath tried to conceal its kickback payments to the marketers through shell companies set up and controlled by Rauf. The case is being prosecuted by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey.
- Lisa Hammell, 39, of Turnersville, New Jersey, an employee of the U.S. Postal Service, was charged by indictment with an alleged conspiracy to defraud the United States and fraud in connection with identification documents for her role in creating and distributing to others fraudulent COVID-19 vaccination record cards. Beginning in or around March 2021, Hammell allegedly began selling fraudulent COVID-19 vaccination record cards that she created by designing a COVID-19 vaccination record card and printing dozens of fraudulent cards while working at a post office. Hammell allegedly sold at least 400 fraudulent COVID-19 vaccination cards to unvaccinated people. As alleged in the indictment, the goal of the conspiracy was to undermine the Centers for Disease Control and Prevention (CDC)’s function of administering the COVID-19 vaccination program and ensuring that genuine COVID-19 vaccination cards containing accurate information are distributed to vaccine recipients only by authorized providers. The case is being prosecuted by Trial Attorneys Kelly M. Lyons and Darren C. Halverson of the Newark Strike Force.
The enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant Chief Justin Woodard of the Health Care Fraud Unit’s Gulf Coast Strike Force in the Criminal Division’s Fraud Section. The Fraud Section’s National Rapid Response Strike Force and the Health Care Fraud Unit’s Strike Forces (SF) in Brooklyn, the Gulf Coast, Miami, Los Angeles, and Newark, as well as the U.S. Attorneys’ Offices for the District of Maryland, District of New Jersey, District of Utah, Northern District of California, and Western District of Tennessee are prosecuting these cases. Descriptions of each case involved in this enforcement action are available on the department’s website at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit/case-summaries.
In addition to the FBI, HHS-OIG, and CPI/CMS, the U.S. Postal Inspection Service; Department of Defense Office of Inspector General; Department of the Interior Office of the Inspector General; Department of Labor Office of the Inspector General; Food and Drug Administration Office of the Inspector General; Homeland Security Investigations; U.S. Department of Veterans Affairs Office of the Inspector General; and other federal and local law enforcement agencies participated in the law enforcement action.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the CMS, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
davydovdismissal.pdfJustice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care-Related COVID-19 FraudRead the Press Release
SAN FRANCISCO – The Department of Justice today announced criminal charges against 21 defendants in nine federal districts across the United States for their alleged participation in various health care related fraud schemes that exploited the COVID-19 pandemic. These cases allegedly resulted in over $149 million in COVID-19-related false billings to federal programs and theft from federally-funded pandemic assistance programs. In connection with the enforcement action, the department seized over $8 million in cash and other fraud proceeds.
“Today’s announcement by the Department of Justice demonstrates our continued resolve to protect the integrity of the government efforts to combat the COVID 19 pandemic,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “We will pursue anyone seeking to profit from this health care crisis by committing crimes that endanger the health and well-being of the public at a time when confidence in our public health system is of critical importance. Every day, the multi-agency partnership formed to combat pandemic-related fraud is holding fraudsters to account for their crimes.”
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
“This COVID-19 health care fraud enforcement action involves extraordinary efforts to prosecute some of the largest and most wide-ranging pandemic frauds detected to date,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs.”
This announcement builds on the success of the May 2021 COVID-19 Enforcement Action and involves the prosecution of various COVID-19 health care fraud schemes. For example, several cases announced today involve defendants who allegedly offered COVID-19 testing to induce patients to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then used the information and samples to submit false and fraudulent claims to Medicare for unrelated, medically unnecessary, and far more expensive tests or services. In one such scheme in the Central District of California, two owners of a clinical laboratory were charged with a health care fraud, kickback, and money laundering scheme that involved the fraudulent billing of over $214 million for laboratory tests, over $125 million of which allegedly involved fraudulent claims during the pandemic for COVID-19 and respiratory pathogen tests. In two separate cases in the District of Maryland and the Eastern District of New York, owners of medical clinics allegedly obtained confidential information from patients seeking COVID-19 testing at drive-thru testing sites and then submitted fraudulent claims for lengthy office visits with the patients that did not, in fact, occur. The proceeds of these fraudulent schemes were allegedly laundered through shell corporations in the United States, transferred to foreign countries, and used to purchase real estate and luxury items.
“Throughout the pandemic, we have seen trusted medical professionals orchestrate and carry out egregious crimes against their patients all for financial gain,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These health care fraud abuses erode the integrity and trust patients have with those in the health care industry, particularly during a vulnerable and worrisome time for many individuals. The actions of these criminals are unacceptable, and the FBI, working in coordination with our law enforcement partners, will continue to investigate and pursue those who exploit the integrity of the health care industry for profit.”
In another type of COVID-19 health care fraud scheme announced today, defendants allegedly exploited policies that the Centers for Medicare and Medicaid Services (CMS) put in place to enable increased access to care during the COVID-19 pandemic. For example, in the Southern District of Florida, one medical professional was charged with a health care fraud, wire fraud, and kickback scheme that allegedly involved billing for sham telemedicine encounters that did not occur and agreeing to order unnecessary genetic testing in exchange for access to telehealth patients. Late last year, one defendant previously was sentenced to 82 months in prison in connection with this scheme.
“The attempt to profit from the COVID-19 pandemic by targeting beneficiaries and stealing from federal health care programs is unconscionable,” said Inspector General Christi A. Grimm of the Department of Health and Human Services (HHS). “HHS-OIG is proud to work alongside our law enforcement partners at the federal and state levels to ensure that bad actors who perpetrate egregious and harmful crimes are held accountable.”
Today’s announcement includes charges against two additional defendants for schemes targeting the Provider Relief Fund (PRF). The PRF is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 that provided financial assistance to medical providers to provide needed medical care to Americans suffering from COVID-19. In total, 10 defendants have been charged with crimes related to misappropriating PRF monies intended for frontline medical providers and three have pleaded guilty.
Today’s announcement also includes charges against manufacturers and distributors of fake COVID-19 vaccination record cards who, according to the allegations, intentionally sought to obstruct the HHS and Centers for Disease Control and Prevention in their efforts to administer the nationwide vaccination program and provide Americans with accurate proof of vaccination. For example, in the Northern District of California, three additional defendants were charged in a scheme to sell homeoprophylaxis immunizations for COVID-19 and falsify COVID-19 vaccination record cards to make it appear that customers received government-authorized vaccines. One defendant allegedly misused her position as the Director of Pharmacy at a northern California hospital to obtain real lot numbers for the Moderna vaccine that were then used to falsify COVID-19 vaccination record cards.
“As alleged, the defendants knowingly deceived the public for their own gain while endangering the health of our community members,” said FBI Acting Special Agent in Charge Sean Ragan. “The FBI San Francisco office and our federal partners will continue to aggressively pursue the criminal behavior of those seeking to fraudulently profit from the current health crisis.”
Another defendant in the Northern District of California pleaded guilty to the scheme in April 2022. U.S. Attorney Hinds described additional schemes being prosecuted in the Northern District of California in a video posted here.
In addition, in a separate case in the Western District of Washington, one manufacturer was charged in the multistate distribution of fake COVID-19 vaccination record cards after allegedly telling an undercover federal agent that “until I get caught and go to jail, [expletive] it I’m taking the money, ha! I don’t care.”
Further, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it has taken an additional 28 administrative actions against providers for their alleged involvement in fraud, waste, and abuse schemes related to the delivery of care for COVID-19, as well as schemes that capitalize upon the public health emergency.
“We are committed to working closely with our law enforcement partners to combat fraud, waste and abuse in our federal health care programs,” said CMS Administrator Chiquita Brooks-LaSure. “The administrative actions CMS has taken protect the Medicare Trust Funds while also safeguarding people enrolled in Medicare.”
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant Chief Justin Woodard of the Health Care Fraud Unit’s Gulf Coast Strike Force in the Criminal Division’s Fraud Section. The Fraud Section’s National Rapid Response Strike Force and the Health Care Fraud Unit’s Strike Forces (SF) in Brooklyn, the Gulf Coast, Miami, Los Angeles, and Newark, as well as the U.S. Attorneys’ Offices for the District of Maryland, District of New Jersey, District of Utah, Northern District of California, and Western District of Tennessee are prosecuting these cases. Descriptions of each case involved in today’s enforcement action are available on the department’s website at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit/case-summaries.
In addition to the FBI, HHS-OIG, and CPI/CMS, the U.S. Postal Inspection Service; U.S. Postal Service Office of the Inspector General; Department of Defense Office of Inspector General; Department of the Interior Office of the Inspector General; Department of Labor Office of the Inspector General; Food and Drug Administration Office of Criminal Investigations; Homeland Security Investigations; U.S. Department of Veterans Affairs Office of the Inspector General; and other federal and local law enforcement agencies participated in the law enforcement action.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the CMS, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Juan Orlando Hernández, expresidente de Honduras, acusado por narcotráfico y armas de fuego, extraditado a los Estados Unidos desde HondurasRead the Press Release
Juan Orlando Hernández, alias JOH, de 53 años, expresidente de Honduras, tendrá su comparecencia inicial mañana, 22 de abril, ante el juez de primera instancia Stewart D. Aaron en un tribunal federal en Nueva York luego de ser extraditado hoy desde Honduras. Un tribunal federal reveló hoy los cargos de tráfico de drogas y armas en una acusación enmendada contra Hernández.
La acusación formal alega que desde al menos alrededor de 2004, hasta alrededor de 2022, inclusive, Hernández, que fue presidente de Honduras durante dos mandatos, participó en una conspiración corrupta y violenta de narcotráfico para facilitar la importación de cientos de miles de kilogramos de cocaína a los Estados Unidos. Hernández supuestamente recibió millones de dólares para usar su cargo público, las fuerzas del orden público y el ejército para apoyar a las organizaciones de narcotráfico en Honduras, México y otros lugares.
“El Departamento de Justicia está adoptando un enfoque integral para proteger a nuestras comunidades y nuestro país de los delitos violentos,” señaló el fiscal general Merrick B. Garland. “El Departamento está comprometido a desarticular todo el ecosistema de las redes de tráfico de drogas que dañan al pueblo estadounidense, sin importar cuán lejos o cuán alto debamos llegar.”
“Juan Orlando Hernández, el reciente expresidente de Honduras, supuestamente se asoció con algunos de los narcotraficantes más prolíficos del mundo para construir un imperio corrupto y brutalmente violento basado en el tráfico ilegal de toneladas de cocaína a los Estados Unidos,” expresó el fiscal federal para el Distrito Sur de Nueva York, Damian Williams. “Se alega que Hernández usó sus vastos poderes políticos para proteger y ayudar a los narcotraficantes y líderes de cárteles, alertándolos sobre posibles interdicciones y permitiendo la violencia fuertemente armada para apoyar su tráfico de drogas. Felicito a los fiscales de carrera del Distrito Sur de Nueva York por sus incansables esfuerzos para desarticular todo el ecosistema del tráfico de drogas ilícitas, desde traficantes callejeros hasta un exlíder mundial, y todo lo demás.”
“La extradición de hoy muestra claramente que la DEA no se detendrá ante nada para perseguir a los actores políticos más poderosos que participan en el tráfico de drogas, la violencia y la corrupción,” sentenció la administradora de la DEA, Anne Milgram. “La investigación de varios años de la DEA reveló que Juan Orlando Hernández, el ex presidente de Honduras, fue una figura central en una de las mayores y más violentas conspiraciones de tráfico de cocaína del mundo. Hernández usó las ganancias del narcotráfico para financiar su ascenso político y, una vez elegido Presidente, aprovechó los recursos policiales, militares y financieros del gobierno de Honduras para promover su plan de narcotráfico. Este caso debería enviar un mensaje, a todos los líderes políticos del mundo que comercian con posiciones de influencia para fomentar el crimen organizado transnacional, de que la DEA no se detendrá ante nada para investigar estos casos y desmantelar las organizaciones de narcotraficantes que amenazan la seguridad y la salud del pueblo estadounidense.”
Según la acusación enmendada, Hernández protegió a algunos de los mayores narcotraficantes del mundo, incluido su hermano y ex miembro del Congreso Nacional de Honduras, Juan Antonio Hernández Alvarado (Hernández Alvarado), alias Tony Hernández, contra la investigación, el arresto y la extradición; hizo que se proporcionara información confidencial militar y policial a los traficantes de drogas para ayudarlos a transportar toneladas de cocaína a través de Honduras con destino a los Estados Unidos; ordenó a miembros fuertemente armados de la Policía Nacional de Honduras y del ejército hondureño que protegieran los cargamentos de drogas mientras transitaban por Honduras; y permitió la violencia brutal.
Como congresista, luego Presidente del Congreso Nacional de Honduras y finalmente Presidente de Honduras durante dos mandatos, Hernández supuestamente recibió millones de dólares en ganancias de la cocaína que usó para enriquecerse, financiar sus campañas políticas y cometer fraude electoral mientras el pueblo de Honduras soportaba condiciones de pobreza y violencia desenfrenada.
Desde por lo menos 2004, las organizaciones de tráfico de drogas en Honduras han trabajado para recibir toneladas de cocaína enviadas a Honduras desde, entre otros lugares, Colombia y Venezuela, a través de rutas marítimas y aéreas. Estas organizaciones luego transportaron la cocaína hacia el oeste en Honduras hacia su frontera con Guatemala y, finalmente, al norte hacia los Estados Unidos. Durante este tiempo, los miembros de esta conspiración transportaron más de 500,000 kilogramos de cocaína a través de Honduras y hacia los Estados Unidos. Para garantizar que estos envíos masivos de cocaína pasaran con seguridad por Honduras, las mayores organizaciones de tráfico de drogas de la región obtuvieron el apoyo y la protección directa de ciertos funcionarios públicos hondureños prominentes, incluido Hernández. A cambio, estos traficantes pagaron millones de dólares en sobornos a Hernández y otros funcionarios públicos.
Según se alega, como congresista y luego Presidente de Honduras, Hernández se asoció con el exlíder del Cártel de Sinaloa, Joaquín Guzmán Loera (Guzmán Loera), alias El Chapo, entre otros individuos. Aproximadamente en 2013, mientras Hernández estaba haciendo campaña para convertirse en Presidente, aceptó aproximadamente 1 millón de dólares en ganancias del narcotráfico de Guzmán Loera. Hernández envió a Hernández Alvarado y un asociado, armados con ametralladoras, a cobrar el soborno de 1 millón de dólares de Guzmán Loera. A cambio, Hernández prometió seguir protegiendo las actividades de narcotráfico del Cártel de Sinaloa en Honduras.
Como se alega, aproximadamente en 2013 y 2014, Hernández se asoció con el traficante hondureño de cocaína a gran escala y violento, Geovanny Fuentes Ramírez. Durante múltiples reuniones entre Hernández y Fuentes Ramírez, Fuentes Ramírez sobornó a Hernández para obtener protección y seguridad para sus actividades de narcotráfico. Hernández informó a Fuentes Ramírez, en parte, que Hernández quería que Fuentes Ramírez se asociara con Hernández Alvarado, quien estaba manejando actividades de narcotráfico en Honduras, y que Hernández iba a “meter la droga en las narices de los gringos.”
Además de Guzmán Loera y Fuentes Ramírez, otros narcotraficantes prolíficos en Honduras y Guatemala pagaron a Hernández sobornos provenientes de las ganancias de las drogas para apoyar su carrera política a cambio de la protección y la colaboración de Hernández en su narcotráfico. Hernández usó estos sobornos estimulados por la cocaína para asegurar su continuo ascenso en la política hondureña, incluida su elección como Presidente en 2013 y 2017. En relación con las elecciones de 2013 y 2017, Hernández ordenó a los miembros de esta conspiración que sobornaran a políticos y funcionarios electorales con ganancias de las drogas para garantizar que Hernández ganara la presidencia.
En 2018, Hernández Alvarado fue imputado en el Distrito Sur de Nueva York en relación con su participación en esta conspiración, y posteriormente fue condenado tras el juicio el 18 de octubre de 2019. Mientras el caso de Hernández Alvarado estaba pendiente, Hernández continuó coordinando de cerca con traficantes a gran escala, incluido Fuentes Ramírez, quien continuó pagando sobornos a Hernández por protección. Además, durante el juicio de Hernández Alvarado, se introdujeron como prueba libros de contabilidad de drogas pertenecientes a otro exnarcotraficante hondureño y cómplice, mencionado en la acusación formal como “CC-2”. Estos libros de contabilidad contenían, entre otras cosas, anotaciones con el nombre de Hernández Alvarado y “JOH”, las iniciales de Hernández, junto con los asientos correspondientes que reflejaban grandes pagos a Hernández y Hernández Alvarado.
Aproximadamente una semana después de la condena de Hernández Alvarado, presos armados con machetes y un arma de fuego asesinaron a CC-2 en una prisión de Honduras para evitar la posible cooperación de CC-2 contra, entre otros, Hernández.
El 27 de enero de 2022, Hernández fue imputado en la acusación sdustitutiva y se emitió una orden de arresto en su contra.
El 15 de febrero de 2022, Hernández fue arrestado y detenido por las autoridades hondureñas a petición de los Estados Unidos. Posteriormente, los Estados Unidos presentaron una solicitud formal de extradición, que fue concedida por el juez de primera instancia de Honduras. Hernández apeló la decisión de extradición ante el Tribunal Supremo de Justicia de Honduras. El 28 de marzo, el Tribunal Supremo de Honduras rechazó su apelación. El 6 de abril, el Tribunal Ad Hoc de la Sala Constitucional del Tribunal Supremo de Justicia de Honduras determinó que la apelación final de Hernández era inadmisible. El 13 de abril, el gobierno de Honduras certificó la finalización de los procedimientos de extradición de conformidad con las órdenes judiciales anteriores, lo que resultó en la entrega de Hernández a los Estados Unidos el 21 de abril.
Hernández está imputado de tres cargos: (1) conspiración para importar cocaína a los Estados Unidos, lo que conlleva una sentencia mínima obligatoria de 10 años y una sentencia máxima de cadena perpetua; (2) usar y portar ametralladoras y dispositivos destructivos durante la conspiración para importar cocaína, y poseer ametralladoras y dispositivos destructivos para promover la conspiración de importación de cocaína, que conlleva una sentencia mínima obligatoria de 30 años y una sentencia máxima de cadena perpetua; y (3) conspiración para usar y portar ametralladoras y dispositivos destructivos durante la conspiración de importación de cocaína, y poseer ametralladoras y dispositivos destructivos para promover la conspiración de importación de cocaína, que conlleva una sentencia máxima de cadena perpetua. Un juez de un tribunal de distrito federal determinará la sentencia después de considerar las Pautas de sentencia de los EE. UU. y otros factores legales.
La División de Operaciones Especiales de la DEA, la Fuerza de Ataque de Nueva York y la Oficina Regional de Tegucigalpa investigaron el caso. La Oficina de Asuntos Internacionales del Departamento de Justicia brindó una valiosa asistencia para asegurar el arresto y la extradición de Hernández.
Este enjuiciamiento es parte de una operación de las Fuerzas de Tarea contra la Delincuencia Organizada y los Delitos Asociados al Narcotráfico (OCDETF, por sus siglas en inglés). Se puede encontrar información adicional sobre el Programa OCDETF en https://www.justice.gov/OCDETF.
Los fiscales federales adjuntos Jacob H. Gutwillig, Michael D. Lockard, Jason A. Richman y Elinor L. Tarlow del Distrito Sur de Nueva York procesan el caso.
Los cargos en la acusación enmendada son simplemente acusaciones, y se presume inocente al acusado hasta que se pruebe su culpabilidad más allá de toda duda razonable en un tribunal de justicia.
English
Juan Orlando Hernández, Former President of Honduras, Indicted on Drug-Trafficking and Firearms Charges, Extradited to the United States from HondurasRead the Press Release
Juan Orlando Hernández, aka JOH, 53, the former President of Honduras, will make his initial appearance tomorrow, April 22, before Magistrate Judge Stewart D. Aaron in federal court in New York after being extradited today from Honduras. A federal court unsealed drug-trafficking and weapons charges today in a superseding indictment against Hernández.
The indictment charges that from at least in or about 2004, up to and including in or about 2022, Hernández, the former two-term President of Honduras, participated in a corrupt and violent drug-trafficking conspiracy to facilitate the importation of hundreds of thousands of kilograms of cocaine into the United States. Hernández allegedly received millions of dollars to use his public office, law enforcement, and the military to support drug-trafficking organizations in Honduras, Mexico, and elsewhere.
“The Justice Department is taking a comprehensive approach to protecting our communities and our country from violent crime,” said Attorney General Merrick B. Garland. “The Department is committed to disrupting the entire ecosystem of drug trafficking networks that harm the American people, no matter how far or how high we must go.”
“Juan Orlando Hernández, the recent former President of Honduras, allegedly partnered with some of the world’s most prolific narcotics traffickers to build a corrupt and brutally violent empire based on the illegal trafficking of tons of cocaine to the United States,” said U.S. Attorney Damian Williams for the Southern District of New York. “Hernández is alleged to have used his vast political powers to protect and assist drug traffickers and cartel leaders by alerting them to possible interdictions, and sanctioning heavily armed violence to support their drug trade. I commend the career prosecutors of the Southern District of New York for their tireless efforts to disrupt the entire illicit drug trafficking ecosystem, from street-level dealers to a former world leader, and everything in-between.”
“Today’s extradition clearly shows that the DEA will stop at nothing to pursue the most powerful political actors who engage in drug trafficking, violence, and corruption,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA’s multi-year investigation revealed that Juan Orlando Hernández, the former President of Honduras, was a central figure in one of the largest and most violent cocaine trafficking conspiracies in the world. Hernández used drug trafficking proceeds to finance his political ascent and, once elected President, leveraged the Government of Honduras’ law enforcement, military, and financial resources to further his drug trafficking scheme. This case should send a message – to all political leaders around the world that trade on positions of influence to further transnational organized crime – that the DEA will stop at nothing to investigate these cases and dismantle drug trafficking organizations that threaten the safety and health of the American people.”
According to the superseding indictment, Hernández protected some of the largest drug traffickers in the world, including his brother and former member of the Honduran National Congress, Juan Antonio Hernández Alvarado (Hernández Alvarado), aka Tony Hernández, from investigation, arrest, and extradition; caused sensitive law enforcement and military information to be provided to drug traffickers to aid them in transporting tons of cocaine through Honduras bound for the United States; directed heavily-armed members of the Honduran National Police and Honduran military to protect drug shipments as they transited Honduras; and sanctioned brutal violence.
As a congressman, then President of the Honduran National Congress, and finally the two-term President of Honduras, Hernández was allegedly paid millions of dollars in cocaine proceeds which he used to enrich himself, finance his political campaigns, and commit voter fraud while the people of Honduras endured conditions of poverty and rampant violence.
Since at least 2004, drug-trafficking organizations in Honduras have worked to receive tons of cocaine sent to Honduras from, among other places, Colombia and Venezuela, via maritime and air routes. These organizations then transited the cocaine westward in Honduras toward its border with Guatemala and eventually north to the United States. During this time, members of this conspiracy transported more than 500,000 kilograms of cocaine through Honduras and into the United States. In order to ensure that these massive cocaine shipments safely passed through Honduras, the largest drug-trafficking organizations in the region obtained the support and direct protection of certain prominent Honduran public officials, including Hernández. In return, these traffickers paid millions of dollars in bribes to Hernández and other public officials.
As alleged, as a congressman and then President of Honduras, Hernández partnered with the former leader of the Sinaloa Cartel, Joaquín Guzman Loera (Guzman Loera), aka El Chapo, among other people. In or about 2013, as Hernández was campaigning to become president, he accepted approximately $1 million in drug-trafficking proceeds from Guzman Loera. Hernández sent Hernández Alvarado and an associate, armed with machine guns, to collect the $1 million bribe from Guzman Loera. In exchange, Hernández promised to continue protecting the Sinaloa Cartel’s drug-trafficking activities in Honduras.
As alleged, in or about 2013 and 2014, Hernández partnered with violent and large-scale Honduran cocaine trafficker Geovanny Fuentes Ramirez. During multiple meetings between Hernández and Fuentes Ramirez, Fuentes Ramirez bribed Hernández for protection and security for his drug-trafficking activities. Hernández informed Fuentes Ramirez, in part, that Hernández wanted Fuentes Ramirez to partner with Hernández Alvarado, who was managing drug-trafficking activities in Honduras, and that Hernández was going to “stuff the drugs right up the noses of the gringos.”
In addition to Guzman Loera and Fuentes Ramirez, other prolific traffickers in Honduras and Guatemala provided Hernández with bribes from drug proceeds to support his political career in exchange for Hernández’s protection and partnership in their drug trafficking. Hernández used these cocaine-fueled bribes to ensure his continued ascendancy in Honduran politics, including his election as President in 2013 and 2017. In connection with both the 2013 and 2017 elections, Hernández directed members of this conspiracy to bribe politicians and election officials with drug proceeds to ensure that Hernández won the presidency.
In 2018, Hernández Alvarado was charged in the Southern District of New York in connection with his participation in this conspiracy, and he was subsequently convicted after trial on Oct. 18, 2019. While Hernández Alvarado’s case was pending, Hernández continued to coordinate closely with large-scale traffickers, including Fuentes Ramirez, who continued to pay Hernández bribes for protection. Further, during Hernández Alvarado’s trial, drug ledgers belonging to another former Honduran drug trafficker and co-conspirator, referred to in the superseding indictment as “CC-2,” were introduced into evidence. These ledgers contained, among other things, notations with Hernández Alvarado’s name and “JOH,” Hernández’s initials, along with corresponding entries reflecting large payments to Hernández and Hernández Alvarado. Approximately one week after Hernández Alvarado was convicted, prisoners armed with machetes and a firearm murdered CC-2 in a Honduran prison to prevent CC-2’s potential cooperation against, among others, Hernández.
On Jan. 27, 2022, Hernández was charged in the superseding indictment and a warrant was issued for his arrest.
On Feb. 15, 2022, Hernández was arrested and detained by Honduran authorities at the request of the United States. The United States thereafter submitted a formal extradition request, which the Honduran Magistrate Judge granted. Hernández appealed the extradition decision to the Honduran Supreme Court. On March 28, the Honduran Supreme Court denied his appeal. On April 6, the Ad Hoc Tribunal of the Constitutional Chamber of the Honduran Supreme Court determined Hernández’s final appeal was inadmissible. On April 13, the Government of Honduras certified the completion of the extradition proceedings consistent with the previous court orders, resulting in Hernández’s surrender to the United States on April 21.
Hernández is charged with three counts: (1) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years and a maximum sentence of life in prison; (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine importation conspiracy, which carries a mandatory minimum sentence of 30 years and a maximum sentence of life in prison; and (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine importation conspiracy, which carries a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA’s Special Operations Division, New York Strike Force, and Tegucigalpa Country Office investigated the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Hernández’s arrest and extradition.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorneys Jacob H. Gutwillig, Michael D. Lockard, Jason A. Richman, and Elinor L. Tarlow for the Southern District of New York prosecuting the case.
The charges in the superseding indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Juan Orlando Hernandez, Former President of Honduras, Extradited to the United States on Drug-Trafficking and Firearms ChargesRead the Press Release
Merrick Garland, the Attorney General of the United States, Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of drug-trafficking and weapons charges contained in a Superseding Indictment against JUAN ORLANDO HERNANDEZ, a/k/a “JOH,” the former President of Honduras. The case is pending before U.S. District Judge P. Kevin Castel. HERNANDEZ, 53, a Honduran national, is expected to arrive in the Southern District of New York today and will have his initial appearance tomorrow, April 22, 2022, before Magistrate Judge Stewart D. Aaron.
From at least in or about 2004, up to and including in or about 2022, HERNANDEZ, the former two-term President of Honduras, allegedly participated in a corrupt and violent drug-trafficking conspiracy to facilitate the importation of hundreds of thousands of kilograms of cocaine into the United States. HERNANDEZ allegedly received millions of dollars to use his public office, law enforcement, and the military to support drug-trafficking organizations in Honduras, Mexico, and elsewhere.
Attorney General Merrick B. Garland said: “The Justice Department is taking a comprehensive approach to protecting our communities and our country from violent crime. The Department is committed to disrupting the entire ecosystem of drug trafficking networks that harm the American people, no matter how far, or how high we must go.”
U.S. Attorney Damian Williams said: “Juan Orlando Hernandez, the recent former President of Honduras, allegedly partnered with some of the world’s most prolific narcotics traffickers to build a corrupt and brutally violent empire based on the illegal trafficking of tons of cocaine to the United States. Hernandez is alleged to have used his vast political powers to protect and assist drug traffickers and cartel leaders by alerting them to possible interdictions, and sanctioning heavily-armed violence to support their drug trade. I commend the career prosecutors of the Southern District of New York for their tireless efforts to disrupt the entire illicit drug-trafficking ecosystem, from street-level dealers to a former world leader, and everything in-between.”
DEA Administrator Anne Milgram said: “Today’s extradition clearly shows that the DEA will stop at nothing to pursue the most powerful political actors who engage in drug trafficking, violence, and corruption. DEA’s multi-year investigation revealed that Juan Orlando Hernandez, the former President of Honduras, was a central figure in one of the largest and most violent cocaine-trafficking conspiracies in the world. Hernandez used drug-trafficking proceeds to finance his political ascent and, once elected President, leveraged the Government of Honduras’ law enforcement, military, and financial resources to further his drug-trafficking scheme. This case should send a message—to all political leaders around the world that trade on positions of influence to further transnational organized crime—that the DEA will stop at nothing to investigate these cases and dismantle drug-trafficking organizations that threaten the safety and health of the American people.”
According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings[1]:
HERNANDEZ protected some of the largest drug traffickers in the world, including his brother and former member of the Honduran National Congress, Juan Antonio Hernandez Alvarado (“Hernandez Alvarado”), a/k/a “Tony Hernandez,” from investigation, arrest, and extradition; caused sensitive law enforcement and military information to be provided to drug traffickers to aid them in transporting tons of cocaine through Honduras, bound for the United States; directed heavily-armed members of the Honduran National Police and Honduran military to protect drug shipments as they transited Honduras; and sanctioned brutal violence.
As a Congressman, then the President of the Honduran National Congress, and finally the two-term President of Honduras, HERNANDEZ was allegedly paid millions of dollars in cocaine proceeds, which he used to enrich himself, finance his political campaigns, and commit voter fraud while the people of Honduras endured conditions of poverty and rampant violence.
Since at least in or about 2004, drug-trafficking organizations in Honduras have worked together to receive tons of cocaine sent to Honduras from, among other places, Colombia and Venezuela, via maritime and air routes. These organizations then transited the cocaine westward in Honduras toward its border with Guatemala and eventually north to the United States. During this time, members of this conspiracy transported more than 500,000 kilograms of cocaine through Honduras and into the United States. In order to ensure that these massive cocaine shipments safely passed through Honduras, the largest drug-trafficking organizations in the region obtained the support and direct protection of certain prominent Honduran public officials, including HERNANDEZ. In return, these traffickers paid millions of dollars in bribes to HERNANDEZ and other public officials.
As a Congressman and then President of Honduras, HERNANDEZ partnered with, among others, the former leader of the Sinaloa Cartel, Joaquín Guzman Loera (“Guzman Loera”), a/k/a “El Chapo.” In or about 2013, as HERNANDEZ was campaigning to become President, he accepted approximately $1 million in drug-trafficking proceeds from Guzman Loera. HERNANDEZ sent Hernandez Alvarado and an associate, armed with machine guns, to collect the $1 million bribe from Guzman Loera. In exchange, HERNANDEZ promised to continue protecting the Sinaloa Cartel’s drug-trafficking activities in Honduras.
In or about 2013 and 2014, HERNANDEZ partnered with a violent and large-scale Honduran cocaine trafficker named Geovanny Fuentes Ramirez (“Fuentes Ramirez”). During multiple meetings between HERNANDEZ and Fuentes Ramirez, Fuentes Ramirez bribed HERNANDEZ for protection and security for his drug-trafficking activities. HERNANDEZ informed Fuentes Ramirez, in part, that HERNANDEZ wanted Fuentes Ramirez to partner with Hernandez Alvarado, who was managing drug-trafficking activities in Honduras, and that HERNANDEZ was going to “stuff the drugs right up the noses of the gringos.”
In addition to Guzman Loera and Fuentes Ramirez, some of the most prolific traffickers in Honduras and Guatemala provided HERNANDEZ with bribes from drug proceeds to support his political career in exchange for HERNANDEZ’s protection and partnership in their drug trafficking. HERNANDEZ used these cocaine-fueled bribes to ensure his continued ascendancy in Honduran politics, including his election as President in 2013 and 2017. In connection with both the 2013 and 2017 elections, HERNANDEZ directed members of this conspiracy to bribe politicians and election officials with drug proceeds to ensure that HERNANDEZ won the presidency.
In 2018, Hernandez Alvarado was charged in the Southern District of New York in connection with his participation in this conspiracy, and he was subsequently convicted after trial on October 18, 2019. While Hernandez Alvarado’s case was pending, HERNANDEZ continued to coordinate closely with large-scale traffickers, including Fuentes Ramirez, who continued to pay HERNANDEZ bribes for protection. Further, during Hernandez Alvarado’s trial, drug ledgers belonging to another former Honduran drug trafficker and co-conspirator, referred to in the Superseding Indictment as “CC-2,” were introduced into evidence. These ledgers contained, among other things, notations with Hernandez Alvarado’s name and “JOH,” HERNANDEZ’s initials, along with corresponding entries reflecting large payments to HERNANDEZ and Hernandez Alvarado. Approximately one week after Hernandez Alvarado was convicted, prisoners armed with machetes and a firearm murdered CC-2 in a Honduran prison to prevent CC-2’s potential cooperation against, among others, HERNANDEZ.
On the afternoon of January 27, 2022, HERNANDEZ was charged in the Superseding Indictment and a warrant was issued for his arrest.
On February 15, 2022, HERNANDEZ was arrested and detained by Honduran authorities at the request of the United States. The United States thereafter submitted a formal extradition request, which the Honduran Magistrate Judge granted. HERNANDEZ appealed the extradition decision to the Honduran Supreme Court. On March 28, the Honduran Supreme Court denied his appeal. On April 6, the Ad Hoc Tribunal of the Constitutional Chamber of the Honduran Supreme Court determined HERNANDEZ’s final appeal was inadmissible. On April 13, the Government of Honduras certified the completion of the extradition proceedings consistent with the previous court orders, resulting in HERNANDEZ’s surrender to the United States on April 21.
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HERNANDEZ is charged with three counts: (1) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine importation conspiracy, which carries a maximum sentence of life in prison.
The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the DEA’s Special Operations Division, New York Strike Force, and Tegucigalpa Country Office, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division in the arrest and extradition of HERNANDEZ.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the U.S. Attorney’s Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig, Michael D. Lockard, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
The charges in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Individual Sentenced on Kidnapping and Weapons Charges Connected to Murder in Indian CountryRead the Press Release
A member of the Seminole Nation of Oklahoma was sentenced today to more than 12 years in prison for his conduct in connection with a homicide that took place in 2017 within Indian Country in Oklahoma. The defendant was sentenced to 155 months for kidnapping and 120 months for being a felon in possession of a firearm, to run concurrently, followed by five years’ supervised release.
According to court documents, Nicholas Earl Faulkner, 32, of Holdenville, Oklahoma, pleaded guilty to kidnapping and being a felon in possession of a firearm in May 2019. According to his plea, in April 2017, Faulkner was living with co-defendant Matthew Armstrong, who was involved in smuggling contraband into various prisons and jails for the Indian Brotherhood (IBH), a prison-based Indian gang active in Oklahoma.
According to court documents, on April 16, 2017, at Armstrong’s residence, Armstrong had a dispute over drugs with the victim, who was also staying at the home. Armstrong and Faulkner took the victim into the woods behind the residence where Armstrong tied her to a tree. Faulkner brought Armstrong the binding materials, at Armstrong’s direction. Faulkner and Armstrong left the victim tied to the tree for several hours and then returned with a rifle. Armstrong shot the victim twice killing her. Faulkner then took the gun and left the area at the direction of Armstrong.
Armstrong pleaded guilty in October 2021 to murder in Indian country, kidnapping and possession with intent to distribute methamphetamine. He will be sentenced at a later date and faces a maximum penalty of life 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 Christopher J. Wilson of the Eastern District of Oklahoma, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.
The FBI and the Oklahoma State Bureau of Investigation investigated the case.
Trial Attorneys Rami Badawy and Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Zach Parsons of the Eastern District of Oklahoma prosecuted the case.
Houston Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Fernando Perez-Gomez, 36, was convicted at trial on July 20, 2021, of conspiracy to possess with intent to distribute a kilogram or more of heroin, 50 grams or more of methamphetamine, and five kilograms or more of cocaine. Perez-Gomez was sentenced to 235 months in federal prison by U.S. District Judge Marcia A. Crone on April 20, 2022.
According to information presented at trial, from at least May 2014 through May 2016, Perez-Gomez was involved in a conspiracy to traffic drugs from the Houston-area through the Eastern District of Texas and to various destinations for distribution through the United States. The investigation revealed that at least 16 persons were involved in this polydrug conspiracy, which resulted in the seizure of approximately 80 kilograms of cocaine, over four kilograms of methamphetamine, and a kilogram of heroin. Additionally, $2.5 million in cash was seized as part of the investigation.
“Illegal drugs continue to threaten the country and at home in our communities.,” said U.S. Attorney Brit Featherston. “Often it is the basis for other violent crime, property crime and, unfortunately, overdose deaths. We will continue to track, arrest, and prosecute those individuals like Perez-Gomez, who traffic their poison. We are thankful for the collaboration of law enforcement that worked diligently on this case.”
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration, the Houston Police Department, the Pasadena Police Department, and the Texas Department of Public Safety. This case was prosecuted by Assistant U.S. Jonathan C. Lee.
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Houston County Pair Indicted for Solicitation of MurderRead the Press Release
TYLER, Texas – A federal grand jury has returned an indictment charging a Grapeland man and woman with federal solicitation of murder violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Reynaldo Campos, Jr., 44, and Robin Pittman, also known as Robin Hill, 42, were named in an indictment returned by a federal grand jury in Tyler charging them with murder for hire and conspiracy to commit murder for hire; solicitation to commit murder for hire and conspiracy to solicit murder for hire; possession of a firearm in furtherance of a crime of violence; and felon in possession of a firearm.
According to the indictment, on Feb. 9, 2022, Campos is alleged to have solicited a person he believed to be an associate of a co-conspirator, who was in fact an undercover federal agent, to murder a former associate of Campos. Campos discussed the intended murder with the agent on multiple occasions over the next several weeks. On April 8, 2022, Campos and Pittman traveled together from Houston County to Tyler to discuss the murder, to provide the “hit man” with a handgun to be used for the murder, and to provide the “hit man” with information about the intended target. On April 13, 2022, Campos and Pittman again traveled together from Houston County to Tyler to discuss the murder and to provide the “hit man” with approximately one gallon of Phenylacetone/P2P and a shotgun as partial payment for the murder of the intended target.
If convicted, the defendants face up to 10 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Jim Noble.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Holdenville Resident Sentenced on Kidnapping and Weapons Charges Connected to Murder in Indian CountryRead the Press Release
WASHINGTON – A member of the Seminole Nation of Oklahoma was sentenced today to more than 12 years in prison for his conduct in connection with a homicide that took place in 2017 within Indian Country in Oklahoma. The defendant was sentenced to 155 months for kidnapping and 120 months for being a felon in possession of a firearm, to run concurrently, followed by five years’ supervised release.
According to court documents, Nicholas Earl Faulkner, 32, of Holdenville, Oklahoma, pleaded guilty to kidnapping and being a felon in possession of a firearm in May 2019. According to his plea, in April 2017, Faulkner was living with co-defendant Matthew Armstrong, who was involved in smuggling contraband into various prisons and jails for the Indian Brotherhood (IBH), a prison-based Indian gang active in Oklahoma.
According to court documents, on April 16, 2017, at Armstrong’s residence, Armstrong had a dispute over drugs with the victim, who was also staying at the home. Armstrong and Faulkner took the victim into the woods behind the residence where Armstrong tied her to a tree. Faulkner brought Armstrong the binding materials, at Armstrong’s direction. Faulkner and Armstrong left the victim tied to the tree for several hours and then returned with a rifle. Armstrong shot the victim twice killing her. Faulkner then took the gun and left the area at the direction of Armstrong. Faulkner and Armstrong later purchased concrete mix, returned to the murder scene, untied the victim’s body, dug a shallow grave, placed the body in the grave, and covered it with concrete and soil.
Armstrong pleaded guilty in October 2021 to murder in Indian country, kidnapping and possession with intent to distribute methamphetamine. He will be sentenced at a later date and faces a maximum penalty of life 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 Christopher J. Wilson of the Eastern District of Oklahoma, Assistant Director Luis Quesada of the FBI’s Investigative Division, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.
The FBI and the Oklahoma State Bureau of Investigation investigated the case.
Trial Attorneys Rami Badawy and Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Zack Parsons of the Eastern District of Oklahoma prosecuted the case.
Guatemalan Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that FIDADELFO ANTONIO CAMEY-ESPANA, age 35, a native of Guatemala, 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).
FIDADELFO ANTONIO CAMEY-ESPANA 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.
Georgia Man Sentenced to 60 Days in Jail and Fined for Entering Port of Albany Under False PretensesRead the Press Release
ALBANY, NEW YORK – Andrew Avila, age 45, of Acworth, Georgia, was sentenced yesterday to a 60-day term of imprisonment, to be followed by 1 year of supervised release, and to pay a $5,000 fine, for the misdemeanor offense of entering the Port of Albany under false pretenses. The announcement was made by United States Attorney Carla B. Freedman and U.S. Department of Energy Inspector General Teri L. Donaldson.
Avila was convicted on December 2, 2021 after a four-day jury trial. The trial evidence demonstrated that Avila traveled from Atlanta, Georgia, on May 2, 2018, and entered the Port of Albany by passing himself off as a Department of Energy (“DOE”) employee. The Port of Albany is a secured area that spans parts of Albany, Rensselaer, and the Town of Bethlehem, New York, and is subject to a security plan required and approved by the United States Coast Guard.
This case was investigated by the Department of Energy, Office of the Inspector General, and was prosecuted by Assistant United States Attorneys Emily C. Powers and Rick Belliss.
Georgia Fugitive Is Sentenced to 13 Years for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced James Julius Lumpkin, of Sevierville, Tennessee, to 156 months in prison and five years of supervised release for drug trafficking, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, Jamaal Thompson Commander of the U.S. Marshals Service Carolinas Regional Fugitive Task Force, and Sheriff Chip Hall of the Jackson County Sheriff’s Office.
According to filed court documents and the sentencing hearing, in November 2020, the U.S. Marshals Service Carolinas Regional Fugitive Task Force learned that Lumpkin, a fugitive with outstanding arrest warrants in Georgia for trafficking narcotics, was located in Jackson County. Law enforcement learned that Lumpkin was staying at a local motel in Cullowhee, North Carolina, and proceeded to plan the arrest. On November 6, 2020, a team of federal and local law enforcement arrested Lumpkin while he was sitting in his van at the motel parking lot. At the time of the arrest, law enforcement seized from the van multiple plastic bags containing methamphetamine, digital scales, two loaded firearms, and ammunition. Law enforcement also recovered at the scene marijuana and prescription opioid pills.
On November 1, 2021, Lumpkin pleaded guilty to possession with intent to distribute methamphetamine, marijuana and Hydrocodone. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the U.S. Marshals Service Carolinas Regional Fugitive Task Force, the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for the investigation of this case.
Assistant United States Attorney Thomas Kent, of the United States Attorney’s Office in Asheville, prosecuted the case.
Four defendants await sentencing after pleading guilty to roles in operation of industrial-level pill productionRead the Press Release
AUGUSTA, GA: Four defendants are awaiting sentencing after admitting they participated in an operation that used pill presses to package and distribute illegal drugs.
Albert Bynoe, a/k/a “Chino,” a/k/a “Bossman Chino,” 35, of Decatur, Ga., awaits sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Bynoe to a statutory sentence of up to 20 years in prison, along with substantial financial penalties, followed by a period of supervised release after completion of any prison term.
There is no parole in the federal system.
“Our law enforcement partners did exceptional work in identifying and intercepting foreign shipments of materials used to manufacture pills containing illegal drugs,” said U.S. Attorney Estes. “Our office is committed to prosecuting makers and distributors of illegal substances that threaten the health and safety of our communities.”
Bynoe’s mother, Cynthia Dessaure-Outlaw, 58, of Grovetown, Ga., awaits sentencing after pleading guilty to Unlawful Transport of Drug Paraphernalia. Two other defendants, Darnee Cooper, a/k/a “Lafayette,” a/k/a “Lafayette Bandz,” 34, of Columbia, S.C., and Nicholas Butler, 42, of Augusta, await sentencing after pleading guilty to Possession of Methamphetamine with Intent to Distribute.
As described in court documents and proceedings, the investigation began in 2018 when U.S. Customs and Border Protection agents flagged a shipment addressed to Dessaure-Outlaw that contained, among other items, molds for a commercial pill press. Dessaure-Outlaw voluntarily forfeited the materials. In 2020, investigators from the U.S. Drug Enforcement Administration flagged a shipment of a pill press sent to Dessaure-Outlaw’s Grovetown address, and located three prior shipments that had been sent to a Columbia, S.C. address in Bynoe’s name along with large amounts of powdered binding agents used to manufacture pills.
In 2021, agents searched Bynoe’s residence in Decatur, Georgia and his rented storage unit in Tucker, Ga., seizing methamphetamine, a pill press machine, pill molds in the shape of a joker and seashells, firearms, drug paraphernalia, and cash. A September 2021 federal indictment charged Dessaure-Outlaw and Bynoe in the operation, along with Cooper, Butler and other members of the conspiracy. All four defendants pled guilty.
Sentencing for the four defendants has not yet been scheduled.
“As part of safeguarding our borders from serious health and security threats, Customs and Border Protection Savannah continues its strong collaboration with our Southern District law enforcement partners.” said, Scott Huntly, Assistant Port Director for CBP Savannah.
“Our mission at DEA is to disrupt, dismantle, and destroy drug trafficking organizations – and this illegal pill pressing operation is no different,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the U.S. Drug Enforcement Administration. “Thanks to the collective efforts of our law enforcement partners, these criminals will be held accountable."
“We are committed to working with our partners to get dangerous drugs out of our communities,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “Illegal and unidentified pills on the streets pose a danger to public health. Thank you to the men and women working each day to bring these violators to justice.”
The case was investigated by the U.S. Drug Enforcement Administration, U.S. Customs and Border Protection National Targeting Center, the Georgia Bureau of Investigation, the Chatham-Savannah Counter Narcotics Team, the Dekalb County Sheriff’s Office, and the Cobb County Sheriff’s Office. The case was prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Matthew A. Josephson and Jeremiah L. Johnson.
Four Defendants Sentenced in the Western District of LouisianaRead the Press Release
United States Attorney Brandon B. Brown announced that four defendants were sentenced today in the Western District of Louisiana on various charges. Their sentencing information is as follows:
SHREVEPORT, La. - Chief United States District Judge S. Maurice Hicks, Jr. sentenced Christopher Donta Willis, 46, of Mansfield, Texas, to 264 months (22 years) in prison, followed by 4 years of supervised release, on drug trafficking charges. Willis was charged in February 2019 and pleaded guilty on September 13, 2021 to possession with intent to distribute methamphetamine. During an investigation into drug trafficking activities in the Shreveport/Bossier City area, agents with the U.S. Drug Enforcement Administration (DEA) received information that Willis and another individual were attempting to distribute methamphetamine on January 25, 2019. Later that day, a trooper with the Louisiana State Police (LSP) conducted a traffic stop of a vehicle being driven by Willis. Once stopped, Willis fled the scene but was quickly apprehended by law enforcement officers and was found to have methamphetamine on his person. Additional methamphetamine was recovered pursuant to a residential search warrant. The drugs that were seized were sent to the crime laboratory for analysis and were confirmed to be methamphetamine.
The case was investigated by the DEA, ATF and Louisiana State Police, and was prosecuted by Assistant U.S. Attorneys Brian C. Flanagan and Earl M. Campbell.
LAFAYETTE, La. - United States District Judge James D. Cain, Jr. sentenced the following defendants in Lafayette, Louisiana:
Marquel Devon Robinson, 34, of Lake Arthur, Louisiana, was sentenced to 72 months in prison, followed by 3 years of supervised release, for possession with intent to distribute heroin. On February 15, 2019, law enforcement agents executed a search warrant at the residence of Robinson in Lake Arthur. During the execution of the warrant, officers recovered methamphetamine, heroin, and a heroin-fentanyl mixture along with other drug paraphernalia. The seized narcotics were sent to a laboratory for testing and were determined to contain 168.6 grams of a mixture and substance containing methamphetamine, 17.1 grams of a mixture and substance containing heroin, and 13.23 grams of a mixture and substance containing heroin and fentanyl. Robinson pleaded guilty to the charge on November 30, 2021.
This case was investigated by the Department of Homeland Security Investigation, the Lake Arthur Police Department and Jefferson Davis Parish Sheriff’s Office and the CAT Team, and was prosecuted by Assistant U.S. Attorney Daniel J. McCoy.
Isaac J. Fontenot, 23, of Church Point, Louisiana, was sentenced to 46 months in prison, followed by 10 years of supervised release, for sexual abuse of a minor. Fontenot was also ordered to register as a sex offender. In October 2020, when Fontenot was 22 years old, he engaged in sexual relations with a female victim under the age of 15 years old. Fontenot knew that the victim was a minor but continued having sexual relations with her. He pleaded guilty to the charge on November 30, 2021.
This case was investigated by the Federal Bureau of Investigation and the Coushatta Tribal Police Department and was prosecuted by Assistant U.S. Attorney John W. Nickel.
Clifton Lamar Dodd, 50, a federal inmate, was sentenced to 21 months in prison, followed by 3 years of supervised release, for mailing a number of hoax letters to United States Senate post office boxes. Dodd was found guilty at his trial in July 2021 by a federal jury in Lafayette.
On May 2, 2016, personnel at the United States Senate mail facility received four suspicious mailed envelopes, each containing a white powdery substance. Each envelope bore a return address of FCI Oakdale, and each listed a different inmate as the purported sender. The United States Capitol Police’s Hazardous Response Unit responded and confirmed that the white powder was merely talcum powder. In addition to the talcum powder, each letter contained a note scrawled in all caps on a small scrap of paper that stated, “MY BOSS MADE ME DO THIS.” On the back of each note was the name of four different inmates, all of which were housed at FCI Oakdale.
U.S. Capitol Police and agents from the FBI and Bureau of Prisons began an investigation into the origin of the letters. Agents interviewed the inmates whose names were listed as senders of the letters and learned that Dodd had sent one of the inmates threatening notes and bragged about getting the inmate removed from the prison yard. FBI submitted the hoax letters to its crime lab for forensic evaluation and found one of Dodd’s fingerprints on the outside of one of the envelopes.
The FBI, Bureau of Prisons, and U.S. Capitol Police conducted the investigation and Assistant U.S. Attorney T. Forrest Phillips prosecuted the case.
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Fort Worth Man Sentenced to 35 Years for Sexually Abusing 7-Year-OldRead the Press Release
A Fort Worth man was sentenced today to 35 years in federal prison for sexually abusing a 7-year-old girl, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Sherman Moore, 65, pleaded guilty in November 2021 to sexual exploitation of children. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to plea papers, Mr. Moore admitted that in the fall of 2019, he enticed a 7-year-old child into sexually explicit conduct in order to videotape her.
On Sept. 7, Mr. Moore recorded a video focusing on the victim’s genitals as she walked across her mother’s bed in her home in Fort Worth. He then uploaded the file to his Google Drive.
Fort Worth Police Department and Homeland Security Investigations’ Fort Worth Field Division conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.
Fort Wayne Man Sentenced to 110 Months in PrisonRead the Press Release
FORT WAYNE- James J. Goheen, III, age 39, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady, on his plea of guilty to maintaining a drug-involved premises, announced United States Attorney Clifford D. Johnson.
Goheen was sentenced to 110 months in prison followed by 3 years of supervised release.
According to documents in this case, between September and November 2020, Goheen maintained a residence in Fort Wayne for the purpose of distributing and manufacturing a controlled substance. When Fort Wayne Police attempted to stop Goheen prior to executing a search warrant of his residence, he led police on a high-speed chase. He was apprehended after stop sticks were utilized to disable his vehicle.
The case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
Former Paralegal for Chicago Law Firm Charged with Embezzling Bankruptcy Estate FundsRead the Press Release
CHICAGO — A former paralegal for a Chicago law firm has been indicted for allegedly embezzling more than $600,000 from bankruptcy estate accounts.
BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters at the law firm, according to an indictment returned Wednesday in U.S. District in Chicago. Sutton orchestrated the fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts Sutton controlled, including her personal bank account, credit card account, student loan account, and mortgage account, the indictment states. In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds, the indictment states.
The indictment charges Sutton, 66, of Austin, Texas, and formerly of Park Forest, Ill., with three counts of wire fraud and three counts of embezzlement from the estate of a debtor. The indictment seeks forfeiture from Sutton of $611,263 in alleged criminally derived proceeds. Arraignment in federal court in Chicago has not yet been scheduled.
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. Trustee Program. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each wire fraud count is punishable by up to 20 years in federal prison, while each embezzlement count carries a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Nevada Business Owner and Salesman Sentenced for Conspiring to Defraud the United StatesRead the Press Release
Two Nevada men were sentenced to prison today for conspiring to defraud the IRS.
Saud Alessa was sentenced to 13 months in prison and Jeffrey Bowen was sentenced to 60 days in prison. After a federal jury trial in November 2021, Alessa and Bowen were both convicted on the conspiracy charge, and Alessa also was convicted on tax evasion and false tax return charges.
According to court documents and evidence presented at trial, from 2010 through approximately March 2014, Alessa, Bowen and another co-conspirator, Jackie Hayes, sought to thwart efforts by the IRS to collect more than $500,000 in tax liabilities owed by Alessa for tax years 1998 to 2007. As part of the scheme, Hayes entered into a payment arrangement with Bowen, the owner of a vacuum cleaner distributor, J&L Distributing Inc. (J&L), where commissions actually earned by Alessa for his work at J&L were falsely recorded in the company’s books as commissions earned by Hayes. Hayes and Bowen then submitted tax forms and filings to the IRS falsely reporting that Hayes had earned the income. This scheme allowed Alessa to evade IRS collection efforts and the payment of his outstanding federal tax debt. To further conceal his income and assets, Alessa filed false 2012 and 2013 individual tax returns, and in February 2013, he filed a bankruptcy petition falsely reporting no income.
In addition to imprisonment, Chief U.S. District Judge Miranda M. Du ordered Alessa and Bowen to each serve three years of supervised release and to pay over $500,000 in restitution to the United States.
Hayes previously pleaded guilty and was sentenced in February 2022 to two months in prison for her role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Albert A. Childress of IRS-Criminal Investigation made the announcement. They commended special agents of IRS-Criminal Investigation, which conducted the investigation, and members of the U.S. Trustee Program, which uncovered the charged conduct during the supervision of the administration of a Chapter 7 bankruptcy case filed by Alessa.
Trial Attorneys Michael Landman and Eric Taffet of the Justice Department’s Tax Division prosecuted the case.
Former Nevada Business Owner and Salesman Sentenced for Conspiring to Defraud the United StatesRead the Press Release
LAS VEGAS – Two Nevada men were sentenced to prison today for conspiring to defraud the IRS.
Saud Alessa was sentenced to 13 months in prison and Jeffrey Bowen was sentenced to 60 days in prison. After a federal jury trial in November 2021, Alessa and Bowen were both convicted on the conspiracy charge, and Alessa also was convicted on tax evasion and false tax return charges.
According to court documents and evidence presented at trial, from 2010 through approximately March 2014, Alessa, Bowen and another co-conspirator, Jackie Hayes, sought to thwart efforts by the IRS to collect more than $500,000 in tax liabilities owed by Alessa for tax years 1998 to 2007. As part of the scheme, Hayes entered into a payment arrangement with Bowen, the owner of a vacuum cleaner distributor, J&L Distributing, Inc. (J&L), where commissions actually earned by Alessa for his work at J&L were falsely recorded in the company’s books as commissions earned by Hayes. Hayes and Bowen then submitted tax forms and filings to the IRS falsely reporting that Hayes had earned the income. This scheme allowed Alessa to evade IRS collection efforts and the payment of his outstanding federal tax debt. To further conceal his income and assets, Alessa filed false 2012 and 2013 individual tax returns, and in February 2013, he filed a bankruptcy petition falsely reporting no income.
In addition to imprisonment, Chief U.S. District Judge Miranda M. Du ordered Alessa and Bowen to each serve three years of supervised release and to pay over $500,000 in restitution to the United States.
Hayes previously pleaded guilty and was sentenced in February 2022 to two months in prison for her role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Christopher Chiou for the District of Nevada, and Special Agent in Charge Albert Childress of IRS-Criminal Investigation made the announcement. They commended special agents of IRS-Criminal Investigation, which conducted the investigation, and members of the U.S. Trustee Program, which uncovered the charged conduct during the supervision of the administration of a Chapter 7 bankruptcy case filed by Alessa.
Trial Attorneys Michael Landman and Eric Taffet of the Justice Department’s Tax Division prosecuted the case.
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Former Chiropractor Sentenced to Nearly Six Years in Federal Prison for Fraudulently Submitting $2.2 Million in Billings to Health InsurersRead the Press Release
SANTA ANA, California – A former Orange County chiropractor was sentenced today to 70 months in federal prison for stealing from health insurers by fraudulently causing the submission of $2.2 million in billings for chiropractic services never provided, medical diagnoses never given, office visits that never occurred, and medical devices that were falsely prescribed.
Susan H. Poon, 57, of Dana Point, was sentenced by United States District Judge David O. Carter, who ordered her to pay $1,379,622 in restitution to her victims.
At the conclusion of a five-day trial in June 2021, a federal jury found Poon guilty of five counts of health care fraud, three counts of making false statements relating to health care matters, and one count of aggravated identity theft.
From January 2015 to April 2018, Poon, whose office was in Rancho Santa Margarita, schemed to defraud health insurance companies by submitting false reimbursement claims for services that were never performed.
Poon also submitted fraudulent prescriptions containing medical diagnoses of individuals that she had never met, including toddlers and children, which led a medical device manufacturer to submit false claims for reimbursement to one health insurer.
The patients that Poon claimed to have met with and treated were dependents – such as the spouses and children – of Costco Wholesale Corp. and United Parcel Service Inc. employees. Poon unlawfully took and used the dependent’s personal identifying information (PII) in her reimbursement requests and prescriptions. Poon obtained the PII by attending health fairs at various UPS warehouses and Costco locations and soliciting such information from employees.
“[Poon’s] scheme consisted of interdependent moving parts,” prosecutors wrote in a sentencing memorandum. “She lied about visits with, diagnoses of, and treatments given to actual people and their children. She sent fraudulent Durable Medical Equipment (DME) prescriptions – predicated on visits with these patients that never happened – to a DME manufacturer. And she fabricated medical documentation containing the personal identifying information of these ‘ghost’ patients to mislead an auditor.”
In total, Poon billed and caused to be billed approximately $2.2 million through her scheme.
Poon’s chiropractic license was revoked in July 2019, according to the California Department of Consumer Affairs.
The following agencies investigated this matter: Amtrak – Office of the Inspector General, California Department of Insurance, U.S. Department of Labor – Employee Benefits Security Administration, U.S. Department of Labor Office of the Inspector General, the FBI, and Office of Personnel Management – Office of the Inspector General.
Assistant United States Attorneys Daniel S. Lim and Daniel H. Ahn of the Santa Ana Branch Office prosecuted this case.
Former Brokers Found Guilty of Fraud Offenses Committed in Fraudulent Stock OfferingRead the Press Release
Miami, Florida – This week, following a six-day trial, a federal jury in Fort Lauderdale, Florida returned guilty verdicts against Jeffrey Alan Horn (“Horn”), 47, of Coral Springs, Florida, and Omar Leon Plummer (“Plummer”), 54, of Margate, Florida, for their involvement in a fraudulent private placement offering of restricted common shares of Sunset Capital Assets, Inc., formerly known as Sunset Brands, Inc., a Nevada corporation (“Sunset”). Horn was convicted of conspiracy to commit mail fraud and wire fraud, conspiracy to commit securities fraud, and four counts of securities fraud. Plummer was convicted of conspiracy to commit securities fraud.
According to evidence presented at trial, between October 2014 and April 2016, Horn, Plummer, and their co-conspirators cold-called prospective investors and made materially false statements and omissions about the offering, including failing to disclose that they would receive exorbitant commissions from selling Sunset stock. Plummer, who disguised his identity by using the alias “Al Goldstein” when contacting prospective investors, also failed to disclose his extensive disciplinary history in the securities industry, which included cease and desist orders issued by state regulators that prohibited Plummer from engaging in certain securities activities in Arkansas and Colorado.
The trial evidence further showed that, in connection with the Sunset offering, Horn sent prospective investors Private Placement Memoranda and other written offering materials that included misrepresentations regarding Sunset’s purported assets, and how Sunset would use the investors’ funds, among other misrepresentations. Of the approximately $1.6 million raised from investors during the offering, nearly all of the money was diverted away from Sunset and into the pockets of the defendants and their co-conspirators. Horn and Plummer were formerly licensed by the Financial Industry Regulatory Authority (FINRA) to sell securities, and Plummer was also formerly licensed by FINRA to act an investment advisor, but neither defendant held any active securities licenses during the Sunset offering.
Horn and Plummer are scheduled to appear for sentencing on July 6, before United States District Judge Rodney Smith, at the federal courthouse in Fort Lauderdale, Florida.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the verdicts.
FBI Miami investigated this case. FINRA assisted. Assistant U.S. Attorneys Dwayne Williams and David Snider prosecuted the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
The related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60019-Smith.
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Federal Jury Convicts Sallisaw Resident of Offenses Relating to the Aggravated Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Jerry Dewayne Rogers, age 59, of Sallisaw, Oklahoma was found guilty by a federal jury of one count of Aggravated Sexual Abuse in Indian Country, three counts of Abusive Sexual Contact in Indian County, and one count of Sexual Abuse of a Minor in Indian Country.
The jury trial began with testimony on Monday, April 18, 2022, and concluded on Wednesday, April 20, 2022, with the guilty verdicts. Based on the verdicts, the defendant is facing a mandatory minimum sentence of not less than thirty years imprisonment.
During the trial, the United States presented evidence that the defendant sexually abused a child. The sexual abuse began when the victim was 8 years old and continued until age 13 years.
The guilty verdicts were the result of an investigation by the Sequoyah County Sheriff’s Office and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the victim is a member of a federally recognized Indian tribe and the crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, U.S. District Judge in the United States District Court for the Western District of Oklahoma in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Rogers was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Benjamin D. Traster was the lead prosecutor representing the United States.
Federal Inmate Convicted by Jury of Assault on Fellow Prisoner at FDCRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Robert Smith, 49, of Philadelphia, PA, was convicted today after trial of one count of assault with a dangerous weapon with intent to do bodily harm, and one count of possession of contraband in prison stemming from a violent incident in which he was involved while in federal prison.
In December 2020, while the defendant was incarcerated at the Federal Detention Center in Philadelphia, he was involved in a physical altercation with another incarcerated individual in the same unit. Officers separated them and took them both for medical assessment, where it was discovered that the other individual had a wound consistent with being stabbed. Video footage of the fight showed Smith striking the individual with a stabbing motion, then passing an unknown item under a door to another individual, who discarded the item in a trash can. Officers searched the trash can several minutes later and found a seven-inch-long piece of metal fashioned into a knife.
“One goal of incarceration is to deter future criminal conduct,” said U.S. Attorney Williams. “But instead of learning from previous mistakes, this defendant engaged in a violent assault on a fellow inmate. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”
“It’s concerning when inmates serving time for past offenses continue to break the law, particularly with crimes of violence,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Both the federal inmates and BOP personnel at FDC Philadelphia deserve a safe environment in which to live and work, so violent behavior like Robert Smith’s cannot go unpunished. This conviction ensures he will spend even longer behind bars. We hope the extra time sends a message that it’s in his interests to do better going forward.”
The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Christopher Diviny and Lauren Stram.
Federal Grand Jury B Indictments Announced- April 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the April 2022 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Samuel Goana-Gonzalez. Unlawful Reentry of a Removed Alien. Goana-Gonzalez, 37, is charged with unlawfully reentering the United States after being removed on March 2, 2011, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case. 22-CR-102
Michael Dylan Hedrick. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence (superseding). Hedrick 28, of Tulsa, allegedly struck a victim with a vehicle with the intent to do bodily harm on Nov. 28, 2021. He is further alleged to have shot at the same victim plus two others on Nov. 6, 2021. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Richard M. Cella is prosecuting the case. 22-CR-05
Denim Lee Blount, Hunter Hobbes. Conspiracy to Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence (Counts 1 and 4); Attempted Carjacking (Count 2); Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence (Count 3); Robbery in Indian Country (Count 5); Felony Murder in Indian Country (Count 6); Causing Death by Carrying, Using, and Discharging a Firearm During and in Relation to a Crime of Violence (Count 7); Obstruction of Justice by Killing a Victim (Count 8). On May 8, 2021, at 10:29 pm, two men later identified as Hobbs, 20, of Bixby, and Blount, 19, of Tulsa, approached a man who was attempting to hook up his SUV and trailer in an apartment complex parking lot. Based on surveillance footage, Blount pointed a shotgun at the man, while Hobbs pointed a rifle at him. The two ordered the victim to get out of his vehicle. When the victim refused, both men allegedly shot him multiple times. The two then fled, leaving the victim and his vehicle behind. The victim was transported to St. Francis Hospital for non-life threatening injuries. Hobbs and Blount are also charged with conspiring to carry, use, and brandish firearms during a robbery in the early morning hours of May 13, 2021, at Haikey Creek Park in Broken Arrow. During the robbery, the two allegedly shot and killed Caleb Vaughn Collier and Kelly Ray Olen John Landsaw-Davis before fleeing the scene in Collier’s stolen vehicle. In this 2nd superseding indictment, Blount and Hobbs are also charged with killing the two victims to prevent them from identifying the defendants to authorities. The FBI, Tulsa and Broken Arrow Police Departments, and U.S. Marshals Service are the investigative agencies. Assistant U.S. Attorneys Christopher J. Nassar and Leah Paisner are prosecuting the case. 21-CR-233
Kawaun Thelma Hopkins. First Degree Burglary in Indian Country; Second Degree Burglary in Indian Country. On Dec. 2, 2021, 27-year-old Hopkins, a non-Indian of Tulsa, broke into a Native American victim’s residence while it was occupied and stole a purse containing cash and other valuables. On a separate occasion on Dec. 12, 2021, Hopkins a broke into an unoccupied residence, owned by a second Native American victim, with the intent to steal property or commit any other felony. The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorney George Jiang is prosecuting the case. 22-CR-103
Derius Donovan Ledet. Felon in Possession of a Firearm and Ammunition. On March 22, 2022, Ledet, 32, of Bristow, was charged with being a felon in possession of a Rossi .38 Special revolver and five rounds of ammunition. The Tulsa Police Department and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Justin G. Bish is prosecuting the case. 22-CR-112
Jamal Jawon Lamont McShan. Assault of an Intimate/Dating Partner by Strangling and Attempting to Strangle in Indian Country. On April 4, 2022, McShan, 21, of Tulsa, assaulted an intimate partner by strangling her. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 22-CR-104
Tyler Craig Mitchell. Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country; Kidnapping in Indian Country. Mitchell, 29, of Adair, allegedly kidnapped and strangled an intimate partner on July 7, 2020. The Delaware County Sheriff’s Office is the investigative agency. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case. 22-CR-105
Scott Edward Parker. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. On Jan. 7, 2022, Parker, 54, of Broken Arrow, allegedly pointed a firearm at a female victim and her family while both were driving on Highway 169 in Tulsa. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John A. Brasher is prosecuting the case. 22-CR-106
Garret Wayne Pulliam. Arson in Indian Country; Arson. On March 26, 2022, Pulliam, 36, set fire his room at the Hickory Inn Motel located in Grove, causing lives to be placed in danger and destruction to the property. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Grove Police Department and Cherokee Nation Marshal’s Service are the investigative agencies. Assistant U.S. Attorney Alex M. Scott is prosecuting the case. 22-CR-113
In this press release defendant Mitchell's age has been corrected.
Federal Civil Complaint Seeks the Forfeiture of Funds Stolen from A California-Based Business and Transferred by Money MulesRead the Press Release
Charlotte, N.C. Today, U.S. Attorney Dena J. King announced the filing of a federal civil complaint seeking the forfeiture of $597,891.46, seized as part of an investigation of at least three individuals operating as money mules responsible for transferring over $1.2 million in funds stolen from a business located in San Diego, California.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
A money mule is a person who, at the direction of another individual or criminal organization, transfers illicit funds typically acquired through fraud. Sometimes money mules are innocent victims unaware they are implicated in criminal activity. Other times, money mules maybe aware, or come to realize but ignore, that they are assisting a fraudster with illegal money movement activities.
“Money mules are quickly becoming the preferred method criminal networks use to transfer illicit funds. These networks, operating within the U.S. and overseas, target individuals online via romance scams, business scams, or otherwise, and turn them into money mules doing the criminals’ dirty work,” said U.S. Attorney King. “We are doing our part to cut off the flow of funds to criminal organizations, but we also need the public’s help in this effort. Be wary of anyone who contacts you online and asks you to use your bank account to move money. You could be putting in thieves’ pockets money stolen from victims of fraud.”
As alleged in the filed complaint, the U.S. Secret Service previously seized $597,891.46 from the account of Theresa Harlow, an elderly woman located in California. The complaint alleges that Harlow and at least two other individuals, identified in court documents as Money Mule 1, and Money Mule 2, allegedly moved the fraud proceeds through four different financial institutions and via multiple transactions involving checks and wires. The indictment further alleges that when law enforcement began investigating the movement of the money, the three money mules reported that they became involved when individuals reached out to them online about moving money and believed the purpose of the money transfers was to assist in business transactions and/or movement of an inheritance. In reality, as alleged in the complaint, the money the mules were moving belonged to a California business that had been defrauded.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service for their investigative work in this case.
Assistant United States Attorney Benjamin Bain-Creed of the United States Attorney’s Office in Charlotte is in charge of the civil proceedings.
To learn more about the Department of Justice’s Money Mule Initiative and to receive more information on how to protect yourself and others please visit: https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative
Ecorse Man Sentenced on Charges of Mail FraudRead the Press Release
DETROIT – An Ecorse resident was sentenced to 30 months in federal prison after having pleaded guilty to committing mail fraud by executing a scheme to defraud his employer, Hankyu Hanshin Express, Inc., announced United States Attorney Dawn N. Ison.
Joining in the announcement was Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
Receiving the sentence from U.S. District Judge Linda V. Parker was Phillip E. Garza, 53, of Ecorse, Michigan. Garza pleaded guilty before Judge Parker to one count of mail fraud in June 2020. His sentencing was delayed because of the pandemic.
According to court records, Garza was employed by Hankyu Hanshin Express (USA) Inc. (HHE), a transportation and logistics services company based in suburban Chicago. HHE had several branch offices, including one in Taylor, Michigan. Garza held the position of ocean export specialist and was responsible for arranging the shipment of sea going goods through third-party shippers.
Garza created a shell company, El Centro Express, that was made to appear to be a third-party shipper. From October 2011 through May 2019, Garza submitted 2,300 invoices to HHE on the letterhead of El Centro Express. As a result, HHE issued 389 checks to El Centro Express and mailed them to a post office box Garza opened in Taylor. Those checks totaled over $1.1 million. Garza used those funds to pay personal expenses. For example, he paid his credit card issuers about $80,000, made monthly car payments totaling about $55,000, and paid about $39,000 to phone companies and cable and Internet service providers. He also made payments on personal loans, paid medical expenses, and went out to restaurants.
The investigation of his case was conducted by the FBI. It was prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Drug “Take Back Day” to Take Place Saturday, April 30th in the Eastern District of WashingtonRead the Press Release
Spokane – United States Attorney for the Eastern District of Washington Vanessa Waldref and DEA Special Agent in Charge Frank A. Tarentino announced that Saturday, April 30, 2022, from 10:00 a.m. to 2:00 p.m. is DEA National Prescription Drug Take Back Day. This year marks the 22nd bi-annual event in the eleven-year history of the Drug Take Back initiative. Drug Take Back Day gives the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous, expired, unused, and unwanted prescription drugs.
The United States Attorney’s Office for the Eastern District of Washington will be partnering on Saturday, April 30, with the Drug Enforcement Administration (DEA), Spokane Police Department, and other community partners at Northtown Mall, 4750 North Division, located in the northwest corner of Division Street and Queen Avenue in Spokane.
At its last Take Back Day in October 2021, the DEA collected nationally a record-high amount of expired, unwanted, and unused prescription medications, with the public turning in close to 745,000 pounds of unused drugs. Over the 11-year span, DEA’s National Prescription Drug Take Back Day has brought in more than 15.2 million pounds of prescription drugs. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential. Of those numbers, Washington State collected 9,380 pounds of prescription drugs at approximately 72 collections sites operated by the DEA and its state and local law enforcement partners.
“My office is committed to reducing tragic drug overdose deaths. By participating in events like Prescription Drug Take Back Day, we can remove expired narcotics from our communities, prevent medication misuse, and make Eastern Washington safer and stronger,” U.S. Attorney Waldref stated. “Consistent with Operation Engage Spokane – which is a comprehensive community-level approach for addressing the drug epidemic, through proactive prevention strategies, conversations, and collaboration with local partners – drug take back events are one way members of our community can positively impact the opioid crisis and protect their loved ones. Prescription drug misuse and overdose deaths do not discriminate – they can impact individuals of any age, race, gender or demographic.”
“The DEA Seattle Field Division is committed to making our communities safer and healthier by driving down overdoses and overdose deaths through targeted enforcement and community- based initiatives like our 22nd National Prescription Drug Take Back Day,” said Frank A. Tarentino III, Special Agent in Charge, DEA Seattle Field Division. “Opioid misuse and abuse, which are fueling the drug overdose epidemic, are a clear and present public health, public safety, and national security threat in the United States. With the help from the community, we can remove the unwanted prescription pills found in homes throughout Spokane from causing potential harm. This collaborative effort is an example of the DEA’s commitment and resolve in the fight to decrease the significant surge in overdoses afflicting Eastern Washington.”
“Our officers see the painful and costly effects of drug related crimes every day. Last year almost 300 Americans died each day due to drug overdoses,” Spokane Police Chief Craig Meidl stated. “Everything we can do to stop these deaths is a life saved, and a family not ruined by the scourge of overdose deaths. Drug Take Back Day is a great step community members can take to make a difference.”
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day. The FDA provides information on how to properly dispose of prescription drugs. To find out where year-round disposal sites are located, go to https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.
For more information about Annual Prescription Drug Take Back Day, go to www.DEATakeBack.com
District Court Appoints Robert J. Troester to Continue Serving as United States Attorney for the Western District of OklahomaRead the Press Release
OKLAHOMA CITY – The United States District Court has appointed Robert J. Troester to continue serving as the United States Attorney for the Western District of Oklahoma. Chief United States District Judge Timothy D. DeGiusti administered the oath of office.
"I am humbled and grateful for the confidence the Court has placed in me to lead this great office in the pursuit of justice," said U.S. Attorney Troester. "It is my sincere privilege to serve the people of the Western District with such a dedicated team of professionals who are devoted to public service and upholding the rule of law in a fair, impartial, and ethical manner."
On December 26, 2021, Attorney General Merrick Garland appointed U.S. Attorney Troester to serve as United States Attorney. By statute, Attorney General Garland’s appointment is limited to 120 days and expires on April 24, 2022. The District Court’s appointment will be effective on April 25, 2022. Thereafter, Troester will serve as United States Attorney until a presidential appointee is confirmed.
As United States Attorney, Troester serves as the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States, federal agencies, and federal employees in the Western District of Oklahoma. The Western District is the largest of three judicial districts in Oklahoma. It includes 40 of the 77 counties and 21 federally recognized Indian tribes. The U.S. Attorney’s Office consists of nearly 100 staff members to accomplish its mission.
U.S. Attorney Troester has served in the Department of Justice since 1995. He has held multiple managerial positions in the U.S. Attorney’s Office throughout his career, including Acting U.S. Attorney on four occasions, First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and Chief of the Civil Division. He has also served in other capacities in Washington D.C., including Associate Deputy Attorney General, Sr. Counsel to the Deputy Attorney General, and Deputy Director of the Executive Office for United States Attorneys. Before he joined the U.S. Attorney’s Office, Troester worked in private practice in Oklahoma City, with the State of Oklahoma government, and in local law enforcement at the Buffalo County Sheriff’s Office in Kearney, Nebraska.
For more information about the U.S. Attorney’s Office for the Western District of Oklahoma, please visit https://www.justice.gov/usao-wdok.
Couple Who Murdered Government Witness Sentenced to Life in PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced David Chappell Fey (57, Belleview) and Shari Lynn Gunter (58, Ocklawaha) to life imprisonment for murdering a government witness. Fey and Gunter were found guilty by a federal jury following a joint trial in December 2021. The trial required special accommodations, with a separate jury hearing evidence for each defendant. In the end, each jury returned guilty verdicts on all four counts – distribution of methamphetamine, conspiracy to murder a government witness, murder of a government witness, and conspiracy to distribute methamphetamine and fentanyl causing death. Prior to trial, Fey pleaded guilty to an additional seven counts of distributing methamphetamine.
According to trial evidence, Fey and Gunter lived together in Summerfield, Florida, where they routinely distributed methamphetamine and other drugs. The 31-year-old victim, who was the mother of three children, was one of their customers. The victim had agreed to cooperate with law enforcement and conducted a controlled buy of $40 worth of methamphetamine on January 19, 2016. After discovering that the victim was helping authorities, Fey and Gunter conspired to murder her to prevent her from acting as a witness against them. Specifically, on April 5, 2016, Fey and Gunter made up a “hot shot” – a syringe containing a lethal amount of fentanyl and methamphetamine – and provided it to the victim. When the victim injected herself, she immediately collapsed. Gunter then dragged the victim outside, kicked her in the head, and placed her in the passenger seat of her car. As the victim sat helpless in the vehicle, Fey and Gunter administered a second, fatal dose of fentanyl and methamphetamine, causing her death. They then drove the victim to a cemetery in Oxford, Florida, and staged the scene to make it appear like an accidental overdose.
“The United States is currently in the midst of an unprecedented opioid epidemic. Every single day, DEA investigators, along with our local and state law enforcement partners, are working tirelessly to keep our communities safe and healthy,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentencing highlights our commitment to our Florida communities, our efforts to bring justice to the victims and their families, and our resolution to hold these drug traffickers accountable for their actions.”
This case was investigated by the Drug Enforcement Administration, with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Marion County Sheriff’s Office, the Unified Drug Enforcement Strike Team, the Sumter County Sheriff’s Office, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Tyrie K. Boyer.
Convicted Felon Sentenced for Possession of AmmunitionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Vincent man for being a felon in possession of ammunition, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
U.S. District Court Judge Madeline Haikala sentenced Nigel Earl Hartley, 43, of Vincent, to 39 months in prison followed by 36 months supervised release for being a felon in possession of ammunition. Hartley pleaded guilty to the charge in January. Hartley is prohibited from possessing ammunition because of multiple prior felony convictions
According to the plea agreement, on October 13, 2020, deputies of the Shelby County Sheriff’s Office went to Hartley’s residence in Vincent, AL, to arrest him on two active Shelby County arrest warrants. During a search of Hartley’s person incident to the arrest, deputies located six rounds of ammunition in his pocket.
The ATF investigated the case, along with the Shelby County Sheriff’s Office. Assistant U.S. Attorney Darius Greene prosecuted the case.
Convicted Felon Pleads Guilty to Possessing Firearm That He Displayed on Social MediaRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Elijah Howard (22, Tampa) has pleaded guilty to possession of a firearm by a convicted felon. Howard faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Howard, a multi-convicted felon, brandished a Glock 19 semi-automatic pistol with an extended magazine during an Instagram video on December 21, 2021. Later that same day, Tampa Police Department officers encountered Howard in possession of that same firearm during a traffic stop. Howard was detained and the firearm was recovered. Officers determined that the firearm was loaded with 34 rounds of ammunition, including a round in the chamber.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Daniel J. Marcet.
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.
Convicted Arsonist Is Sentenced to Prison for Mailing Threatening Letters to A WitnessRead the Press Release
ASHEVILLE, N.C. – Clinton Douglas Cole, 55, of Caroleen, N.C., was sentenced to 24 months in prison and three years of supervised release today, for mailing threatening letters to a witness, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger presided over the sentencing hearing.
U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte.
According to filed documents and court proceedings, in October 2015, an individual witnessed the defendant set fire to a residence in Rutherford County. The defendant was convicted of state charges related to the arson and was sentenced to prison. Court documents show that in January 2020, while Cole was still serving time in prison for the state conviction, he mailed two threatening letters to the witness. In one letter, Cole reminded the witness of a previous threat he made to burn down the witness’s house. In a second letter, Cole wrote to the witness, “You are going to wish that you would not have stuck your nose were [sic] it did’nt [sic] belong,” and threatened to physically harm the witness and the witness’s child. On December 22, 2021, Cole pleaded guilty to mailing threatening communications.
The investigation was handled by USPIS. Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Chinese National Sentenced to 52 Months for $20 Million Covid-19 Pandemic Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MUGE MA, a/k/a “Hummer Mars,” was sentenced to 52 months in prison in connection with a fraudulent scheme to obtain over $20 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, MA falsely represented to the U.S. Small Business Administration (“SBA”) and six financial institutions that his companies, New York International Capital LLC (“NYIC”) and Hurley Human Resources LLC (“Hurley”), had hundreds of employees and paid millions of dollars in wages to those employees, when, in fact, MA appears to have been the only employee of his companies. MA previously pled guilty to bank fraud and aggravated identity theft before U.S. District Judge Richard M. Berman, who imposed today’s sentence. MA was arrested on May 21, 2020 and has been detained since his arrest.
U.S. Attorney Damian Williams said: “Within days of Congress authorizing billions of dollars to help small businesses struggling to make ends meet during the COVID-19 pandemic, Muge Ma saw it as an opportunity to enrich himself by applying for millions of dollars in funds to pay wages to hundreds of employees that never existed. Today’s sentence demonstrates that this Office and our law enforcement partners will work tirelessly to prosecute those who sought to commit pandemic relief fraud.”
According to public filings in Manhattan federal court:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provided small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19.
From at least in or about March 2020 through at least on or about May 15, 2020, MA applied to the SBA and at least six banks for a total of over $20 million in Government-guaranteed loans for his companies NYIC and Hurley (together, the “Ma Companies”) through the SBA’s PPP and EIDL Program. In connection with these loan applications, MA represented, among other things, that he was the sole owner and executive director of the Ma Companies, that the Ma Companies were located on the sixth floor of his luxury condominium building in New York, New York, and that NYIC and Hurley together had hundreds of employees and paid millions of dollars in wages to those employees on a monthly basis. In fact, however, MA appears to have been the only employee of NYIC since at least in or about 2019, and Hurley does not appear to have any employees. In order to support the false representations made by MA in the loan applications about the number of employees at, and the wages paid by, the Ma Companies, MA submitted fraudulent and doctored bank records, tax records, insurance records, payroll records, and/or audited financial statements to six different banks, and also provided links to the Ma Companies’ websites, which describe them as purportedly “global” companies. MA also used the name and identity of another person in connection with the submission of a fraudulent loan application and supporting documentation to at least one financial institution.
Before the discovery of the fraudulent conduct by MA, the SBA approved a $500,000 EIDL Program loan for NYIC and a $150,000 EIDL Program loan for Hurley, and $20,000 in loans advances were provided to MA by the SBA. In addition, a bank approved and disbursed over approximately $800,000 in PPP loan funds for Hurley, which were frozen in connection with this investigation. MA thereafter withdrew his loan applications from the banks and returned the funds.
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Mr. Williams praised the investigative work of the FBI’s Financial Cybercrimes Task Force, SBA-OIG, and IRS-CI. Mr. Williams also thanked the Office of the New York State Comptroller, the New York State Department of Labor, and the New York City Police Department for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.