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20 April 2022
Maryland Doctor Facing Federal Indictment for COVID-19 Healthcare Fraud Scheme is Part of a Nationwide Coordinated Law Enforcement Action to Combat Health Care Related COVID-19 Fraud Announced by the Justice Department TodayRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland has indicted Ron Elfenbein, M.D., age 47, of Arnold, Maryland, for three counts of healthcare fraud for submitting false and fraudulent claims to Medicare and other insurers for patients who received COVID-19 tests at sites operated by the defendant. The indictment was returned yesterday.
The Department of Justice today announced the criminal charges against Elfenbein and 17 other defendants in nine federal districts across the United States for their alleged participation in various fraud schemes involving health care services that exploited the COVID-19 pandemic and resulted in over $149 million in COVID-19 related false billings to federal programs and theft from pandemic assistance programs. In connection with the enforcement action, the department seized over $8 million in cash and other fraud proceeds.
The Maryland indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Special Agent in Charge Maureen Dixon for the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas Sobocinski for the FBI Baltimore Field Office, and Special Agent in Charge Amy K. Parker for the Office of Personnel Management, Office of Inspector General (OPM-OIG).
“The indictment alleges that Ron Elfenbein took advantage of a national health crisis to line his own pockets,” said United States Attorney for the District of Maryland Erek L. Barron. “Our office has and will continue to investigate and prosecute fraud by anyone who used the COVID-19 pandemic to defraud individuals or the government.”
“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.”
Today’s announcement by the Department of Justice builds on the success of the May 2021 COVID-19 Enforcement Action and involves the prosecution of various COVID-19 health care fraud schemes. Multiple defendants 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 misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive tests or services.
For example, according to the Maryland indictment, Elfenbein owned and operated Drs ERgent Care, LLC, d/b/a First Call Medical Center and Chesapeake ERgent Care. Drs ERgent care operated drive-through COVID-19 testing sites in Anne Arundel and Prince George’s Counties. The indictment alleges that Elfenbein instructed the employees of Drs ERgent Care that, in addition to billing for the COVID-19 test, the employees were to bill for moderately complex office visits, lasting between 30 and 39 minutes for existing patients and between 45 and 59 minutes for new patients, even though Elfenbein knew that the visits lasted five minutes or less. Further, the indictment alleges that Elfenbein, through Drs ERgent Care, submitted or caused the submission of claims totaling more than $1.5 million to Medicare and other insurers for office visits that were not provided as represented and were ineligible for reimbursement.
“It is unconscionable that this defendant sought to line his own pockets during a global pandemic by grossly overbilling Medicare and other insurers for these vital healthcare services during a time of national crisis,” said FBI Special Agent in Charge Thomas J. Sobocinski. “If the allegations against Dr. Elfenbein, and the 17 others that were charged today are proven, they should be ashamed of their conduct and will be held accountable for their criminal actions.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by Centers for Medicare & Medicaid Services (CMS) to enable increased access to care during the COVID-19 pandemic.
“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 level to ensure that bad actors who perpetrate egregious and harmful crimes are held accountable.”
“The OPM OIG has no tolerance for providers that profit off of the COVID-19 pandemic by defrauding the federal health care programs,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “We are grateful to work with our law enforcement partners to hold the wrongdoers accountable for their flagrant fraud schemes.”
Today’s announcement also includes charges brought 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 monies intended for frontline medical providers and three have pleaded guilty.
The law enforcement action also includes charges against manufacturers and distributors of fake COVID-19 vaccination record cards, who 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. While not part of today’s announcement, in Maryland a federal criminal complaint was previously filed charging Amar Salim Shabazz, age 23, of Owings Mills, Maryland, for mail fraud and obstruction of justice in connection with his alleged distribution of fraudulent COVID-19 vaccination cards.
Additionally, 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, prosecuted 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.
The SF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI, and HHS-OIG. In addition, 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 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 law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
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 HHS Centers for Medicare and Medicaid Services, 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.
If convicted, Elfenbein faces a maximum sentence of 10 years in federal prison for each of the three counts of healthcare fraud and Shabazz faces a maximum sentence of 20 years’ incarceration each for mail fraud and for obstruction of justice. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the HHS-OIG, DCIS, the FBI, and OPM-OIG for their work in the Elfenbein investigation and thanked Assistant U.S. Attorney Matthew P. Phelps and Trial Attorney D. Keith Clouser of the Justice Department’s Fraud Section, who are prosecuting the case. United States Attorney Barron also commended HSI, USPIS, HHS-OIG, and the Baltimore County Police Department for their work in the Shabazz investigation and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are prosecuting that case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
TULSA, Okla. – A Tulsa man’s trial was set to begin when he pleaded guilty Tuesday for assaulting and strangling a woman, announced U.S. Attorney Clint Johnson.
Vernon Jenedia Neel, 42, pleaded guilty to assault resulting in serious bodily injury in Indian Country. If the plea agreement is accepted by U.S. District Judge Gregory K. Frizzell, Neel will serve between eight and 10 years in federal prison. Neel will be sentenced at a later date.
“The U.S. Attorney’s Office will not tolerate acts of criminal violence,” said U.S. Attorney Clint Johnson. “Vernon Neel has been held responsible for the harm he caused to this victim thanks to the work of Assistant U.S. Attorneys Stacey Todd, Vani Singhal and Gina Gilmore and our partners at the Tulsa Police Department and FBI.”
During the early morning hours of July 3, 2021, the Defendant assaulted the victim by striking her repeatedly with his fists and strangling her. The victim sustained serious injuries including a broken nose, a severed lip requiring stitches, a concussion and multiple bruises and abrasions. Neel ran off with her phone so she could not call for help.
Neel also has multiple felony convictions including for domestic violence and violating a protective order.
The Tulsa Police Department and the FBI conducted the investigation. Assistant U.S. Attorneys Stacey P. Todd, Vani Singhal and Gina S. Gilmore are prosecuting the case.
Man Charged with Defrauding Customers Who Sought to Buy Cryptocurrency-Mining Computers and Miner-Hosting ServicesRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, New York Division of the Federal Bureau of Investigation (“FBI”), announced the arrest today of CHET STOJANOVICH, a/k/a “Chester J. Stojanovich,” on charges of defrauding more than a dozen victims of more than $1.8 million, through fraudulent misrepresentations that he would provide the victims with specialized cryptocurrency-mining computers (“Miners”), and that he would provide Miner-hosting services that would provide the victims with a lucrative stream of “hash power” convertible into cryptocurrency. Instead, as alleged, STOJANOVICH deceived his victims, misappropriated his victims’ money, and provided them with almost no Miners, Miner-hosting services, or hash power. The defendant was arrested early this morning after crossing from Canada into the United States at Champlain, New York. He is expected to appear tomorrow before U.S. Magistrate Judge Stewart D. Aaron in the Southern District of New York.
U.S. Attorney Damian Williams said: “A great deal of excitement and ‘buzz’ has been generated in recent years about the ‘new world’ of cryptocurrency mining. But new financial frontiers can also generate fresh opportunities for old-fashioned fraud. Here, Chet Stojanovich is charged with using those time-worn fraud techniques on a new frontier.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, Mr. Stojanovich induced his victims to invest in his fraudulent cryptocurrency mining schemes, and caused them to incur losses approaching $2 million. Today's action should serve as an example of the FBI's commitment to rooting out financial fraud, as well as our focus on identifying and investigating emerging threats as they evolve.”
According to the allegations contained in the Complaint, and publicly available information:[1]
Since at least 2019, STOJANOVICH has controlled various companies, including Chet Mining Co. LLC (“Chet Mining”). Starting in or about March 2019, STOJANOVICH engaged in a scheme to defraud people who were seeking to purchase Miners and Miner-hosting services through which they expected to obtain “hash power” convertible into cryptocurrency and money. STOJANOVICH defrauded these victims by falsely telling them that: (1) he would purchase, and had purchased, Miners on their behalf; and (2) he would provide them with Miner-hosting services and had already obtained such Miner-hosting services for them. In fact, STOJANOVICH failed to deliver the promised Miners and Miner-hosting services.
In all, STOJANOVICH induced more than a dozen customer-victims to pay a total of more than $1.84 million to STOJANOVICH and his companies, ostensibly in return for Miners and Miner-hosting services. Despite fraudulent representations to the contrary, STOJANOVICH: (1) failed to provide many of the Miners that he told customers he had acquired; (2) failed to provide the hosting services and cryptocurrency hash power that he represented that he would provide; (3) employed deceptive practices to create the illusion that such Miners had been acquired and were being used to provide hash power to those customers; and (4) misappropriated his customers’ funds and spent the funds on unrelated and personal expenditures, including by spending a substantial portion those funds on personal expenses, including chartered air flights, hotel rooms, limousines, and private parties.
Defrauding at Least 10 Victims in 2019
In the spring and early summer of 2019, STOJANOVICH fraudulently induced at least 10 customers to pay a total of more than $1.66 million to STOJANOVICH and Chet Mining, in return for Miners and Miner-hosting services. Between March and July 2019, based on these and other misrepresentations, STOJANOVICH issued at least 15 invoices to these 10 victims, with instructions to make payment to STOJANOVICH or one of his companies. As directed by STOJANOVICH, these 10 customers paid STOJANOVICH a total of approximately $1,618,000 in bank wires and cryptocurrency transfers. However, STOJANOVICH failed to provide the Miners and Miner-hosting services that he had agreed to provide and for which he had been paid.
Defrauding 3 More Victims in 2021
In or about August and September 2021, STOJANOVICH induced at least three additional customer-victims to pay him a total of approximately $179,880, as payment for a total of 127 Miners. Ultimately, STOJANOVICH provided those customers with only 3 of the 127 Miners they had paid for and repaid those customers only approximately $61,000 of the $179,880 they had paid.
The March 2022 Deposition
Several of the victims of the scheme described in the Complaint brought lawsuits against STOJANOVICH in federal court in Manhattan. In one such lawsuit, Holmes et al. v. Chet Mining, Chet Stojanovich, et ano., Case No. 1:20-CV-04448-LJL (S.D.N.Y.), STOJANOVICH was ordered by the court to appear for a deposition on March 4, 2022. During that deposition, STOJANOVICH testified falsely on a number of subjects. For example, in response to several questions, STOJANOVICH testified that he did not know the answers without looking in his personal cellphone, and falsely testified that his phone was downstairs in his rental car or in storage. The deposition was thereupon adjourned for a half-hour, and STOJANOVICH was instructed to retrieve his cellphone and return to the deposition. Instead, STOJANOVICH left the deposition and loitered in the vicinity of his car until after everyone else participating in the deposition had left. Shortly thereafter, he returned to Canada, where he has been residing in recent weeks.
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STOJANOVICH, 37, previously of Manhattan but in recent months apparently residing in Canada, is charged with one count of wire fraud, which carries a maximum penalty of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI for its assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Macy Man Sentenced for RobberyRead the Press Release
United States Attorney Jan Sharp announced that Andres Runningshield, 20, of Macy, Nebraska, was sentenced today in federal court for two counts of robbery. The Honorable Brian C. Buescher, sentenced Runningshield to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Runningshield will serve 3 years of supervised release. Co-Defendant Tariq Thomas is scheduled to be sentenced on June 30, 2022.
In March 2021, officers with the Omaha National Law Enforcement Services responded to a residence in Macy, Nebraska, on a report of a fight. Officers contacted the victims who advised that they had given two men a ride from Sioux City, Iowa, back to Macy, Nebraska, and when they arrived at the residence, the men assaulted them and robbed them at knifepoint, taking a cell phone and the keys to the vehicle. Witnesses identified the robbers as Runningshield and Thomas.
This case was investigated by the Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
MS-13 Gang Member Sentenced to 50 Years in Federal Prison for a Racketeering Conspiracy Involving Multiple MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar yesterday sentenced Jose Joya Parada, a/k/a “Calmado,” age 20, to 50 years in federal prison, followed by three years of supervised release, for a racketeering conspiracy, racketeering, and related violent crimes in aid of racketeering, connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13. On January 24, 2022, a federal jury convicted Joya Parada, along with Milton Portillo-Rodriguez, a/k/a “Little Gangster,” age 26; Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro,” age 22; and Oscar Armando Sorto Romero, a/k/a “Lobo,” age 22; on those charges after a three-month trial. Portillo-Rodriguez, Sandoval-Rodriguez, and Sorto Romero were each also convicted of multiple counts of murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations, Baltimore Office; Chief Jason Lando of the Frederick City Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal E. Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Malik Aziz of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. The defendants were members of the Fulton Locos Salvatruchas (“FLS”) and Parque Vista (“PVLS”) cliques.
The evidence at the three-month trial established that between 2015 and 2017, the defendants engaged in drug trafficking, extortion, and brutal acts of violence against suspected rivals of the gang in an effort to increase MS-13’s power in the Frederick County, Montgomery County, and Anne Arundel County areas of Maryland.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
As detailed during the trial, from 2015 through 2017, the Fulton clique of MS-13 sought to increase its presence in Frederick, Wheaton, and Annapolis, Maryland through numerous acts of violence, extortion, and drug sales. Joya Parada was a member of the Fulton clique of MS-13. Trial evidence related to Joya Parada focused on his participation in two grisly murders of individuals suspected of association with rival gang members carried out in 2017. First, on March 31, 2017, the gang lured a 17-year old from Annapolis to Wheaton Regional Park, where they stabbed him over 100 times, dismembered him, removed his heart, and buried him in a clandestine grave. Specifically, Joya Parada arrived at Wheaton Regional Park with other MS-13 members to dig the grave before the victim arrived there and participated in the murder by stabbing, cutting, and dismembering the victim.
Two days later, the gang kidnapped another individual from Silver Spring, Maryland and brought him to a wooded area in Frederick, where he was killed with knives and machetes before being buried in a shallow grave. Before being taken to Frederick, the victim, who was extremely intoxicated, was held in a basement laundry room in Wheaton, Maryland by members and associates of MS-13, including by Joya Parada. Inside the laundry room, the victim was forced to remove his shirt so that gang members could examine his tattoos to satisfy themselves that the victim was associated with a rival gang and should therefore be killed.
Co-defendant Sorto Romero and others went to the laundry room where the victim was being held, and they placed him in the backseat of a car in which Sorto Romero was a passenger. In the meantime, Joya Parada and other members of MS-13 went to the woods in Frederick with weapons and a shovel to dig a grave and to wait for the victim’s arrival. Sorto Romero eventually arrived with the victim, delivering the victim to other members of MS-13 who were waiting, including Joya Parada. A member of MS-13 incapacitated the victim by hitting him in the head with a tree branch. Joya Parada and others then dragged the victim through the woods to the hole they had dug for the victim’s grave. They placed the victim face down on the ground next to the hole and stabbed and slashed his body repeatedly with a machete. Joya Parada personally participated in this murder not only by slashing the victim with the long edge of the machete blade, but also by plunging the point of the machete into the victim’s back numerous times. The victim died as a result of the blunt force trauma, stabbing, cutting, and chopping inflicted by Joya Parada and his co-conspirators.
Based on his participation in this murder, Joya Parada earned the new nickname “Little Jason,” a reference to a character from a horror movie franchise who used a machete to kill his victims.
According to trial evidence, these murders were all intended to maintain and increase the status of MS-13, as well as allow individual MS-13 members to maintain or increase their status within the gang.
More than 30 MS-13 members and associates have been convicted in this and a related case.
Portillo-Rodriguez, Sandoval-Rodriguez, and Sorto Romero each face a mandatory sentence of life in prison for each of the murder in aid of racketeering charges. Chief Judge Bredar has scheduled sentencing for Sorto Romero for May 6, 2022, at 10 a.m.; for Portillo Rodriguez for May 13, 2022, at 10 a.m.; and for Sandoval Rodriguez for May 23, 2022, at 3:30 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron commended the FBI; HSI; the Frederick Police Department; the Frederick County Sheriff’s Office; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and the Baltimore County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark, Zachary Stendig, and Anatoly Smolkin, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Louisiana Man Sentenced to 46 Months in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Natchez, Miss. – Jordan Rashard Thomas, 24, of Vidalia, Louisiana, was sentenced to 46 months in prison for possessing a firearm after having been previously convicted of felony crimes, announced U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Jackson Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on April 12, 2020, Adams County Sheriff’s deputies stopped a car for a traffic violation. Due to the odor of marijuana coming from the car, deputies asked the occupants to step out of the car. The passenger was identified as Jordan Rashard Thomas who possessed a firearm concealed in his waistband under his sweatshirt. Thomas had previously been twice convicted of burglary and convicted of possession with intent to distribute controlled substances in Concordia Parish, Louisiana.
Thomas pled guilty on January 11, 2022, to being a felon in possession of a firearm.
The Adams County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted 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.
Longtime Employee of a Harford County, Maryland Manufacturer Pleads Guilty to Participating in a $20 Million Kickback SchemeRead the Press Release
Baltimore, Maryland – Elliott Dennis Kleinman, age 68, of Bel Air, Maryland, pleaded guilty today to conspiracy to commit wire fraud and tax evasion, in connection with a kickback scheme that defrauded his employer of more than $20 million.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his guilty plea, Kleinman was a longtime employee of Company 1, a family-owned global business headquartered in New York, but with manufacturing facilities in Belcamp and Abingdon, Maryland, both in Harford County. Beginning in 2012, Kleinman and another employee (Employee 1) began to use their management positions at Company 1 to execute a fraudulent billing scheme whereby they would get illegal kickbacks from various drum vendors doing business with Company 1, which used drums to store and transport its products. As the facility managers, Kleinman and Employee 1 oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities. They also had authority to review drum invoices and authorize payments to the drum vendors.
Anthony P. Urcioli, Sr., is the owner and President of Tunnel, Barrel & Drum Co, Inc. (TBD), located in Carlstadt, New Jersey, and of another drum supply company called Hartford Fibre Drum, Inc. ( Hartford), both of which did business with Company 1. After TBD became a drum supplier to Company 1, Kleinman and Employee 1 entered into arrangement with Urcioli whereby TBD could continue selling drums to Company 1 if Urcioli agreed to fraudulently invoice Company 1 for more drums than TBD actually sold and delivered to the company. If Urcioli agreed to falsify its invoices in this way, Employee 1 and Kleinman said that they and TBD could split the extra money Company 1 paid TBD for the made-up drum deliveries 50/50. Employee 1 told Urcioli that he would split his share of the kickbacks with Elliot Kleinman 75/25. Urcioli agreed to participate in the false billing scheme.
From approximately January 2012 to January 31, 2020, Employee 1 contacted Urcioli at least once a week to discuss the number and type of drums that Employee 1 actually wanted delivered to Company 1’s Maryland facilities. During the same conversation, Employee 1 told Urcioli how many additional drums to charge, but not deliver, to Company 1. After Urcioli created the invoices that fraudulently billed Company 1 for both delivered and undelivered drums, Employee 1 approved the invoices and sent them to Company 1’s headquarters to be paid.
In addition, Urcioli would create a handwritten purchase order ticket that summarized the breakdown of actual and bogus drum orders and how the kickback amounts were calculated. Urcioli would put a copy of the purchase order ticket in an envelope along with Employee 1’s and Kleinman’s share of the kickback amount payable via checks from TBD and Hartford, and then send the envelope to their personal residences in Harford County, Maryland. In December 2013, Urcioli told Employee 1 about Hartford, the other drum supply company Urcioli owned. After receiving records that proved that Hartford was a legitimate company, Employee 1 and Urcioli agreed to expand the kickback scheme to include Hartford.
Urcioli wanted to pay the kickbacks to Kleinman and Employee 1 by check so the payments would look like payments to drum wholesalers and be deductible as a cost of goods sold on TBD’s tax returns. Kleinman advised that he wanted his kickback checks payable to a company he formed called “EDK Management, LTD.” Urcioli agreed, and in addition to making the kickback checks drawn on TBD and Hartford accounts payable to that company, Urcioli wrote the word “drums” on the checks to further the pretense of legitimate purchases.
Between January 2012 and January 31, 2020, Urcioli falsely invoiced Company 1 a total of $20,300,757. TBD and Hartford kept half that amount while the remaining funds were sent to Employee 1 and Kleinman. Kleinman’s share of the kickbacks was approximately $2,307,121. Kleinman opened and maintained two commercial bank accounts for EDK, one in the name of “EDK Management Ltd,” and the other in the name of “EDK Management Ltd t/a Main Street Cigars,” a retail store he owns, located in Bel Air, Maryland. Kleinman deposited the drum vendor’s checks into EDK’s business account, where it was withdrawn as cash, spent on personal expenses, or transferred to the bank account for Main Street Cigars.
For the period of 2017 through 2019, TBD paid Kleinman a total of approximately $1,034,911 in kickbacks for his role in the fraudulent billing scheme. Kleinman’s 2017 through 2019 income tax returns filed with the IRS did not report those kickback payments as personal or business income, resulting in a loss to the U.S. government of approximately $291,143.
Kleinman faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a maximum of five years in federal prison for tax evasion. U.S. District Judge Lydia Kay Griggsby has not yet scheduled sentencing.
Anthony P. Urcioli, Sr., age 78, of Park Ridge, New Jersey, previously pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for his role in the scheme and is awaiting sentencing.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Long Island Medical Doctor Charged as Part of COVID-19 Health Care Fraud Enforcement ActionRead the Press Release
An indictment was returned yesterday in Central Islip charging Dr. Perry Frankel with three counts of health care fraud for an alleged scheme to defraud Medicare and Medicaid of over $1.3 million in claims that were billed during the COVID-19 health emergency in connection with COVID-19 testing. Frankel, a cardiologist and the owner and operator of Advanced Cardiovascular Diagnostics PLLC, allegedly caused the submission of claims to Medicare and Medicaid for office visits that were not performed for patients who received COVID-19 tests at Advanced Cardiovascular Diagnostics PLLC’s mobile testing sites across Long Island, including on dates when Frankel was not present in the state of New York. Frankel was arrested this morning and will be arraigned this afternoon before United States District Judge Joanna Seybert.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr. Assistant Attorney General of the Justice Department’s Criminal Division; and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG), announced the charges.
“As alleged, exploiting a public health crisis by using patients who received COVID-19 tests at mobile testing sites to fraudulently bill Medicare and Medicaid for fictitious office visits is reprehensible,” stated United States Attorney Peace. “This Office and our law enforcement partners will vigorously prosecute those who take advantage of the pandemic to steal from taxpayer-funded programs."
“As alleged, Frankel took advantage of the COVID-19 health crisis to engage in a fraud scheme that undermined our health care system and the people it serves,” said HHS-OIG Special Agent in Charge Lampert. “Such scams waste taxpayer funds and drive up healthcare costs for all of us. HHS-OIG and our law enforcement partners will remain vigilant in our efforts to root out all related fraud schemes during the ongoing public health emergency.”
“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 Polite. “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.”
The charges filed in Central Islip are part of a coordinated health care fraud enforcement action across nine federal districts, led by the Medicare Fraud Strike Force, that resulted in criminal charges against 21 defendants for their alleged participation in health care fraud schemes related to COVID-19 involving more than $149 million in false and fraudulent claims.
HHS-OIG is investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Kelly M. Lyons and Patrick J. Campbell of the Fraud Section are in charge of the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The Defendant: PERRY FRANKEL
Age: 64
Roslyn, New YorkE.D.N.Y. Docket No. 22-CR-180
Local man sentenced for possessing pornography featuring young childrenRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Corpus Christi resident has been ordered to federal prison for possessing nearly 1300 images of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Camden Chase Plumb pleaded guilty Oct. 5, 2021.
Today, U.S. District Court Judge Drew B. Tipton ordered Plumb serve a total of 190 months in federal prison. The court considered victim impact statements and took into account Plumb’s previous state conviction for indecency with a minor in determining his sentence. Plumb will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and pay $15,000 in restitution to victims.
In June 2017, authorities learned Plumb had sexually abused a minor. The investigation led to the seizure of his cell phone and a computer he had used. Forensic analysis of the devices resulted in the discovery of 1,058 images of child pornography on his cell phone, and 113 videos and 230 images of child pornography on the computer. Both devices included images depicting prepubescent children being sexually exploited.
Homeland Security Investigations conducted the investigation with the assistance of the FBI and Corpus Christi Police Department.
Assistant U.S. Attorneys Dennis E. Robinson and Molly K. Smith prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Lawrence Man Sentenced to over Five Years in Prison for Fentanyl and Firearm OffensesRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for drug trafficking activities involving fentanyl and illegal possession of a firearm and ammunition.
Jose Martinez, 26, was sentenced by U.S. District Court Judge Richard G. Sterns to 66 months in prison and four years of supervised release. On Aug. 31, 2021, Martinez pleaded guilty to one count of possession with intent to distribute fentanyl and two counts of being a felon in possession of a firearm and ammunition.
Martinez was charged as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
In the spring of 2019, federal agents began an investigation into a drug trafficking organization (DTO) in the Lawrence area. Between April and June 2019, federal agents made five controlled purchases of fentanyl from the DTO. Each purchase took place near Martinez’s residence and the fentanyl was delivered by Martinez’s co-defendant, Ronyel Pena. Immediately following the transactions, Pena was observed going directly to Martinez’s home.
Following a controlled purchase in June 2019, agents arrested Pena and approached Martinez’s residence. After knocking and hearing movement inside, agents forced entry out of concern for potential destruction of evidence. As agents entered, Martinez attempted to flee out of a window but was detained at the perimeter of the property. A search of the home revealed a loaded Kel Tec .566 semi-automatic rifle caliber pistol, a Glock 26 handgun, as well as additional ammunition, a bullet proof vest, an attachment for a firearm and gun oil. Law enforcement also found two large plastic bags containing empty capsules, a tray to fill pill capsules, several wet plastic bags in the trash can that contained a white residue, a bottle of lactose and several plastic bags, a digital scale, a money counter, a large quantity of cash and multiple cellphones. In the bathroom, agents found hundreds of empty green pill capsules and a smashed cell phone in the sink and observed that the toilet water was green, similar in color to the pill capsule – indicating that Martinez had destroyed evidence by flushing fentanyl down the toilet and smashing cell phones.
In May 2021, Pena was sentenced to one year and one day in prison and four years of supervised release.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. The Massachusetts State Police and the Lawrence Police Department assisted in this investigation. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Laurel Man Sentenced to over 15 Years in Federal Prison for Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Kyle Elio Ripper, age 25, of Laurel, Maryland, yesterday to 188 months in federal prison, followed by 25 years of supervised release, for enticement of a minor to engage in illegal sexual activity, specifically, production of child pornography. Judge Gallagher also ordered Ripper to pay $36,000 in restitution to his victims.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Sheriff Joseph Gamble of the Talbot County Sheriff’s Office.
According to Ripper’s guilty plea, on January 17, 2020, the Talbot County Sheriff’s Office initiated an investigation after discovering evidence that an adult male had sexual contact with a 14-year-old male (Minor Victim 1).
As detailed in his plea agreement, on March 10, 2020, law enforcement executed search warrants at Ripper’s residence and on his vehicle and seized several electronic devices, including a laptop containing a 500 GB internal hard disk drive, a 2 TB external hard drive, and a cell phone. Upon further investigation and review of Ripper’s phone, investigators discovered that Ripper had communicated with minors via the internet and engaged in sexual relations with at least two minor victims.
Specifically, a forensic review of Ripper’s cell phone revealed that on December 28, 2019, Ripper engaged in a sexually explicit conversation with Minor Victim 1 in which Ripper requested Minor Victim 1 to send Ripper an image of Minor Victim 1’s genitals. Ripper also asked to film a sexual encounter with the victim. Ripper traveled to the victim’s residence, engaged in sexual relations with the minor victim, and made videos documenting the sexual encounter on his cell phone. Additional evidence from Ripper’s cell phone revealed that in January 2020, Ripper also communicated with a 16-year-old male victim (Minor Victim 2). During their communications, Ripper requested, and received, at least one sexually explicit image of Minor Victim 2. According to communications on Ripper’s phone, Ripper traveled to Minor Victim 2’s residence in Baltimore to pick up the victim, and then took the victim to Ripper’s residence in Anne Arundel County, Maryland. Ripper then engaged in sexual acts with Minor Victim 2 and produced a video documenting his sexually explicit conduct with Minor Victim 2 using his cell phone.
Additionally, a forensic review of Ripper’s hard drives and laptop revealed thousands of images and videos depicting the sexual abuse of children. For example, Ripper’s computer contained over 4,000 images and videos of child pornography, including a nine-minute video depicting the sexual abuse of a female toddler and multiple videos depicting the sexual abuse of an infant.
Ripper admitted that he knew Minor Victim 1 was 14-years-old before he engaged in sexual acts with the victim and Ripper admitted that he drove to the minor’s residence to engage in sexual relations with Minor Victim 1 on two occasions. Ripper also admitted to having sex with Minor Victim 2.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI and the Talbot Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine L. Duey and Abigail Ticse, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Kingpin and All Members of Birmingham-Based Continuing Criminal Enterprise Convicted of Conspiracy to Distribute Methamphetamine, Heroin, Fentanyl, and Cocaine ConspiracyRead the Press Release
BIRMINGHAM – A federal jury on Monday convicted a Bessemer man charged under the “Kingpin” statute, and three other defendants, on charges of operating a continuing criminal enterprise involved in the large-scale distribution of illegal drugs, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and Internal Revenue Service Criminal Investigation (IRS-CI) Atlanta Field Office Special Agent in Charge James E. Dorsey.
After a week-long trial before United States District Court Judge Annmarie C. Axon a jury convicted Rolando Antuain Williamson, also known as “Baldhead” and “Ball Head,” 37, of Bessemer, Alabama, of leading a multi-million dollar continuing criminal enterprise. Williamson, Adrien Hiram Taylor, also known as “Slim,” 34, of Bessemer, Alabama, Ishmywel Calid Gregory, also known as “C,” 38, of Mulga, Alabama, and Hendarius Lamar Archie, also known as “Hen,” 33, of Bessemer, Alabama, were convicted of conspiring to distribute and possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Williamson, Taylor, Gregory, and Archie were all convicted of distributing or possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Williamson and Archie were convicted of using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime. Williamson and Taylor were convicted of several counts of using a communication facility to commit a drug trafficking crime.
With today’s verdict, all 18 people charged in the indictment returned on October 29, 2019, have now been convicted. The convictions were the result of a three-year investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of this West Jefferson County-based drug-trafficking enterprise. The investigation identified acts committed in furtherance of the conspiracy over a period of six years. Prior to the trial, 14 of the charged defendants pleaded guilty. Seven members of the criminal enterprise have been sentenced and the remaining defendants await sentencing.
The OCDETF agencies involved in this investigation are the FBI, IRS, member agencies of the FBI North Alabama Safe Streets Task Force, Bessemer Police Department, and the Jefferson County Sheriff’s Department.
The North Alabama Safe Streets Task Force arrested Williamson the morning of August 22, 2019, in the parking lot of a grocery store located in Homewood, Alabama. Williamson was driving a 2016 Dodge Hellcat worth $80,000. At the time of arrest, Williamson was found to be in possession of two loaded pistols (with additional loaded magazines) and almost $14,000 in cash. All other members of the conspiracy were arrested on or about November 13, 2019.
At the time of Williamson’s arrest law enforcement officers also seized from Williamson and three of his stash houses, 366 grams of heroin/fentanyl, 109 grams of suspected cocaine, 573 grams of pure methamphetamine, 52 kilos of marijuana, over $97,000 in cash, multiple firearms, and over 1700 rounds of ammunition.
“This verdict should send a message to those engaged in violent crime and distribution of deadly drugs in our communities,” U.S. Attorney Escalona said. “The investigation and prosecution of violent crime continues to be our highest priority. I commend our law enforcement partners for their tireless efforts to ensure these defendants were brought to justice.”
“Removing this “kingpin” and the dangerous drugs he and his criminal enterprise peddled will no doubt save lives and families from the pain of addiction,” SAC Sharp said. “This sentence reflects the severity of Williamsons actions, and he will have decades in prison to consider the impact of his decisions. This case highlights the joint commitment, dedication, and partnership between our law enforcement partners in combatting drug trafficking in our community.”
“Jefferson County Sheriff’s Deputies assigned to the FBI Safe Streets Task Force, worked in conjunction with the FBI and other participating agencies during this 3-year investigation,” Sheriff Pettway said. “The illegal drug trade ruins hundreds of lives in Jefferson County every year. We are proud to have been a part of disrupting the trade and distribution of these illegal narcotics in western Jefferson County. Working in unison with our fellow local and federal agencies, we are able to share and act on critical intelligence that is imperative to shutting down these type operations. This case is an example of how these agencies working together successfully disrupted a large-scale drug operation. We look forward to continuing these invaluable partnerships against crime.”
As, a convicted “Kingpin,” Williamson faces a mandatory sentence of life in prison. Taylor faces a mandatory minimum sentence of twenty-five years to life in prison. Gregory faces a maximum of thirty years in prison. Archie faces a mandatory minimum sentence of five years to forty years in prison.
Forfeiture was obtained for two high-end vehicles of Williamson: a $46,000 Ford F-250 “King’s Ranch” and a $37,000 Cadillac Escalade; over $100,000 dollars in cash; $45, 000 in jewelry; and all firearms and ammunition used to facilitate the drug trafficking enterprise.
The Federal Bureau of Investigation, and Internal Revenue Service, investigated the case along with the Jefferson County Sheriff’s Office and Bessemer Police Department. Assistant U.S. Attorneys Jonathan S. Cross and Gregory R. Dimler are prosecuting the case.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
Kentucky Man Pleads Guilty to Defrauding Homeowners in Three StatesRead the Press Release
CHARLESTON, W.Va. – A Kentucky man pleaded guilty today to wire fraud after accepting payments for building projects he never intended to do.
According to court documents, William T. Hurst, 44, of Morehead, Kentucky, admitted he agreed to build pole barns for a pair of residents in Putnam and Jackson counties in March 2021, receiving checks totaling $10,186 as down payments. Hurst admitted he never intended to build either barn, and instead cashed or deposited the checks at area banks for his personal use.
Hurst further admitted to similarly scamming six other property owners in Ona and Lesage, Cabell County; Charleston, Kanawha County; Coolville and Willow Wood, Ohio; and South Shore, Kentucky, all between February 22, 2021, and March 23, 2021. In each instance, Hurst agreed to build a pole barn or other structure but never began any work or bought any needed supplies. These residents together had paid Hurst $25,032, which he kept for himself. Hurst eventually stopped communicating with the victims.
Hurst admitted to receiving a total of $35,218 as a result of his fraudulent representations, and pleaded guilty to two counts of wire fraud. He is scheduled to be sentenced on July 28, 2022, and faces up to 40 years in prison.
United States Attorney Will Thompson made the announcement. The Kanawha County Sheriff’s Office and the Federal Bureau of Investigation (FBI) conducted the investigation. The Cabell County Sheriff’s Department and the West Virginia Department of Revenue also provided assistance with the investigation.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-41.
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Justice Department Finds Conditions at Mississippi State Penitentiary Violate the ConstitutionRead the Press Release
The Justice Department concluded today, based upon a thorough investigation, that there is reasonable cause to believe that conditions and practices at the Mississippi State Penitentiary (also known as Parchman) violate the Eighth and Fourteenth Amendments to the U.S. Constitution. Assistant Attorney General Kristen Clarke of the Civil Rights Division, U.S. Attorney Clay Joyner for the Northern District of Mississippi and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.
Specifically, the department concluded that there is reasonable cause to believe Mississippi routinely violates the constitutional rights of people incarcerated at Parchman by:
- failing to provide adequate mental health treatment to people with serious mental health needs;
- failing to take sufficient suicide prevention measures to protect people at risk of self-harm;
- subjecting people to prolonged isolation in solitary confinement in egregious conditions that place their physical and mental health at substantial risk of serious harm; and
- failing to protect incarcerated people from violence at the hands of other incarcerated people.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department provided the state of Mississippi with written notice of the supporting facts for these findings and the minimum remedial measures necessary to address them in a comprehensive 59-page findings letter.
“The Constitution guarantees that all people incarcerated in jails and prisons are treated humanely, that reasonable measures are taken to keep them safe, and that they receive necessary mental health care, treatment, and services to address their needs,” said Assistant Attorney General Clarke. “Our investigation uncovered evidence of systemic violations that have generated a violent and unsafe environment for people incarcerated at Parchman. We are committed to taking action that will ensure the safety of all people held at Parchman and other state prison facilities. We look forward to working with state officials to institute comprehensive reforms.”
“Prisons have a constitutional obligation to keep safe the incarcerated persons who depend on them for their basic needs,” said U.S. Attorney Joyner. “Mississippi violated the rights of persons incarcerated at Parchman by failing to keep them safe from physical violence and for failing to provide constitutionally adequate mental health care and that people confined to Parchman experience serious physical and psychological harm as a result. Our office is dedicated to defending the civil rights of all our district’s residents, including those who are incarcerated. We look forward to continuing to work with the Mississippi Department of Corrections to protect the civil rights of those incarcerated at Parchman.”
“The action taken today by the Department of Justice will ensure that the Mississippi State Penitentiary at Parchman fulfills its constitutional obligations,” said U.S. Attorney LaMarca. “Those obligations extend to reasonable efforts to provide basic mental health care, prevent violence between incarcerated persons and prevent suicides. Those who owe a debt to society should have these basic needs while paying that debt. We are committed to working with state officials to ensure that the State of Mississippi abides by its constitutional obligations.”
The department’s investigation began in February 2020. Our investigation of conditions at Southern Mississippi Correctional Institution, Central Mississippi Correctional Facility, and Wilkinson County Correctional Facility is ongoing. Individuals with relevant information are encouraged to contact the department by phone at (833) 591-0288, or by email at [email protected].
For more information about the Civil Rights Division and the Special Litigation Section, please visit https://www.justice.gov/crt/special-litigation-section.
Additional information about the Northern and Southern U.S. Attorneys’ Offices is available at: https://www.justice.gov/usao-ndms and https://www.justice.gov/usao-sdms. You can contact the Northern District’s Civil Division at (662) 234-3318, and the Southern District at (601) 965-4480. You can also report civil rights violations to the Section by completing the complaint form available at https://civilrights.justice.gov/.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care-Related COVID-19 FraudRead the Press Release
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.
“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. The proceeds of this fraudulent scheme were allegedly laundered through shell corporations in the United States, transferred to foreign countries, and used to purchase real estate and luxury items. 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.
“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. Another defendant pleaded guilty in April 2022. 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.”
Additionally, 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.
Justice Department Announces Nationwide Coordinated Law Enforcement Action to Combat Health Care Related COVID-19 FraudRead the Press Release
Memphis, TN - 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.
“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 the Western District of Tennessee, Raymond Earl Vallier, 52, of Collierville, Tennessee was indicted with theft of government property and aggravated identity theft in connection with a scheme to unlawfully convert CARES Act Provider Relief Fund monies. Vallier was the former owner and operator of North Delta Hospice and Palliative Services LLC, a hospice care center, which, on April 10, 2020, received $107,568.03 from the Provider Relief Fund. North Delta Hospice had ceased seeing patients and billing Medicare and Medicaid by the end of September 2019. According to the indictment, rather than returning the funds deposited, as North Delta Hospice did not qualify for the Provider Relief Fund Payment, the defendant used the name of the deceased owner of North Delta Hospice to falsely attest to the terms and conditions of the Provider Relief Fund — claiming that the funds would be used for expenses related to the treatment of COVID-19 patients — and wrote a check to himself and made a payment on one of his other company’s credit card accounts with the funds. This case is being prosecuted by Trial Attorney Sara E. Porter of the Gulf Coast Strike Force and Assistant U.S. Attorney Tony Arvin of the U.S. Attorney’s Office for the Western District of Tennessee.
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. Another defendant pleaded guilty in April 2022. 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.”
Additionally, 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; 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.
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Jury Convicts Arizona Man for Fraudulent Citizenship Scheme Targeting Immigrant PopulationRead the Press Release
LAS VEGAS – Yesterday, a federal jury convicted an Arizona man of orchestrating an adult adoption business scheme to fraudulently obtain more than one million dollars from his clients — who consisted mostly of Chinese and Spanish speaking individuals — by promising them U.S. citizenship through adult adoption.
“U.S. citizenship cannot be bought,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our law enforcement partners, our office will hold accountable those who manipulate and defraud immigrants for their own personal financial gain, such as by deceiving victims on the false promise of U.S. citizenship.”
"It is an honor and a privilege to become an American citizen, and this individual egregiously exploited trusting victims for his own financial gain," said Special Agent in Charge Spencer L. Evans for the FBI. "The sentence should serve as a warning to others that the FBI and our law enforcement partners will remain steadfast in our efforts to dismantle criminal enterprises that strive to circumvent our laws by deceptive and deceitful means.”
Following a six-day trial, Douglas Lee Thayer (68, of Mohave Valley, Arizona) was found guilty of two counts of mail fraud. U.S. District Judge Gloria M. Navarro presided over the trial and scheduled a sentencing hearing for July 26, 2022. For each count of mail fraud, Thayer faces a statutory maximum penalty of 20 years in prison, a term of supervised release, and a fine.
According to court documents and evidence presented at trial, in 2015 and 2016, Thayer operated U.S. Adult Adoption Services Inc. (USAAS), a business that promised its clients U.S. citizenship in exchange for money. Thayer fraudulently represented to his adult clients that they would be adopted by U.S. citizens. This would supposedly allow the clients to obtain new birth certificates and, subsequently, obtain U.S. citizenship for themselves. Thayer charged each client an upfront payment between $7,000 and $20,000 for USAAS’s services. In total, Thayer received more than $1,018,337.83 in payments from his clients.
This case was investigated by the FBI. Assistant U.S. Attorneys Simon F. Kung and Jessica Oliva are prosecuting the case.
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Israeli Corporate Lawyer Charged in Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal indictment charging MOSHE STRUGANO, an Israeli lawyer specializing in the creation of offshore companies, with securities fraud and conspiracy to commit securities fraud in connection with a scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that Ormat Technologies Inc. (“Ormat”), a renewable energy company, would be acquiring U.S. Geothermal, Inc. (“U.S. Geothermal”). The United States intends to seek the extradition of STRUGANO.
U.S. Attorney Damian Williams said: “As alleged, Moshe Strugano, a corporate lawyer, traded on nonpublic information for personal gain. His charged actions show a brazen disregard for laws intended to keep a level playing field for investors.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Time and again, we see greedy, unscrupulous actors trade securities based upon their access to material non-public information. As alleged, Mr. Strugano is another in a long series of similar illegal actors. Today's action is an example of our commitment to insuring our financial markets are fair for all investors.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
Ormat is a publicly traded renewable energy company headquartered in Nevada with offices and facilities in Yavne, Israel.
U.S. Geothermal was a publicly traded renewable energy company that operated geothermal power projects in Oregon, Nevada, and Idaho. U.S. Geothermal’s common stock traded under the symbol “HTM” on the NYSE American.
Between in or about September 2017 and January 2018, Ormat engaged in merger negotiations with U.S. Geothermal. A co-conspirator not named in the Indictment (“CC-1”) served as Ormat’s Head of Mergers and Acquisitions and was one of Ormat’s principal negotiators for the deal. In that role, CC-1 had access to material, nonpublic information about the deal. CC-1 and STRUGANO, who both lived in the vicinity of Tel Aviv, Israel, maintained a personal relationship and friendship.
On or about December 19, 2017, the Ormat board approved acquiring U.S. Geothermal at a price of up to $5.50 per share, which was U.S. Geothermal’s asking price prior to the Ormat board meeting. Almost immediately after the Ormat board meeting ended, CC-1 tipped off STRUGANO that the Ormat-U.S. Geothermal deal was going to close through a coded WhatsApp message. Within minutes of receiving that message, STRUGANO placed a failed WhatsApp call to his broker (the “Broker”) for a bank account he controlled at a Swiss bank (“Bank-1”). STRUGANO then tried to call the Broker another four times over the next four minutes. Minutes later, STRUGANO placed a telephonic order with Bank-1 to purchase over $20,000 in U.S. Geothermal shares. This was the first time STRUGANO had ever asked Bank-1 to purchase U.S. Geothermal stock for his accounts.
Over the next several weeks, STRUGANO directed the Broker to purchase large blocks of U.S. Geothermal shares. By January 18, 2018, STRUGANO had purchased over $2.7 million in U.S. Geothermal shares, for an approximately 3.8% equity stake in the company. For the time period from December 19, 2017 through January 18, 2018, STRUGANO was responsible for approximately one third of the total trading volume in U.S. Geothermal stock.
On January 18, 2018, STRUGANO was informed that his account at Bank-1 was in shortfall. STRUGANO asked the Broker to buy him time to cover the shortfall, asking for a few days, and then on January 24, 2018, for a few more hours. Less than an hour later, Ormat and U.S. Geothermal announced their merger. When the market opened that day, the U.S. Geothermal stock price jumped. After the deal was announced, STRUGANO sold all of his shares and realized profits of approximately $1.2 million.
* * *
STRUGANO, 52, of Caesarea, Israel, is charged with one count of conspiracy to commit securities fraud, which has a maximum sentence of five years in prison, and two counts of securities fraud, which have maximum sentences of 20 and 25 years in prison, respectively.
The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against the defendant, for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Matthew R. Shahabian and Jordan Estes are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Illinois Man Sentenced to 11 Years for Armed Robbery of Lake Delton StoreRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Deon Brown, 28, Waukegan, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to 11 years in federal prison for robbery of a retail store in Lake Delton, Wisconsin. Brown pleaded guilty to this charge on January 26, 2022.
On July 28, 2020, Brown and co-defendant Cortez Thurmond robbed the Alpha Red Studio in Lake Delton. A few minutes later, and less than a mile away, the defendant and Thurmond robbed Gifts of the World retail store. Video surveillance from inside of Gifts of the World showed Thurmond and Brown taking money from the store and customers. During the robbery, Brown carried a firearm with an extended magazine and struck a customer in the back of the head with it. Another customer in the store reported that Brown punched her in the mouth before stealing her purse.
At the time of the robberies, Brown was on active state supervision in Illinois for a felony armed robbery conviction. At the sentencing hearing, Judge Peterson noted that Brown’s violent use of the firearm during the robberies had a terrorizing effect on the victims. Judge Peterson stated that the robbery of Gifts of the World was a “very calculated crime” as video surveillance showed Brown and Thurmond casing the store two hours before they robbed it. Judge Peterson also noted that Brown’s previous armed robbery conviction and the accompanying four-year prison sentence had not deterred him from engaging in the same criminal conduct.
Judge Peterson sentenced Thurmond on March 1, 2022 to 8 ½ years in prison for his role in the offense. In addition, on January 11, 2022, a grand jury in the Eastern District of Wisconsin returned an indictment against Thurmond and Brown charging them with a conspiracy to rob various commercial establishments in Racine and Kenosha. With regard to these charges, you are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
The charges against Brown and Thurmond were a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lake Delton Police Department, and the Racine Police Department. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Gulfport Man Sentenced to 10 Years in Prison for Firearms OffenseRead the Press Release
Gulfport, Miss. – A Gulfport man was sentenced to 120 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration.
According to court documents and evidence presented at trial, on August 8, 2021, Decorie Deshun Bates, 33, was arrested after the Gulfport Police Department responded to a domestic disturbance 911 call. Prior to officers’ arrival at the scene, Bates left the residence on foot. However, the caller took photos of Bates while he was leaving the residence. The photos depicted Bates carrying a firearm.
Bates was apprehended nearby unarmed. However, a firearm, matching the firearm depicted in the photographs, was found along his suspected route of travel. After being taken into custody, Bates admitted to purchasing the firearm approximately two weeks before the incident. Bates had prior felony convictions for Aggravated Assault, Credit Card Fraud, and Burglary of a Dwelling.
Bates was found guilty of being a felon in possession of a firearm by a federal jury on January 20, 2022.
At sentencing, the court enhanced Bates’s sentence for his attempts to obstruct justice by asking the 911 caller to lie about his possession of the firearm. The court also varied upwards based upon Bates’s criminal history, and because he was released from parole the day before he committed the offense. The 120 months sentence was the statutory maximum sentence that the court could have imposed.
The Drug Enforcement Administration and the Gulfport Police Department investigated the case with assistance from the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Jonathan Buckner and John Meynardie prosecuted 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.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Fitchburg Man Charged with Gun Crimes
Ka’toine Richardson, also known as “Kado,” 19, Fitchburg, Wisconsin, is charged with receiving a firearm knowing that he was charged with a felony, receiving and possessing a stolen firearm, and with possessing a loaded firearm in furtherance of a drug trafficking crime. The indictment alleges that on March 18, 2022, Richardson possessed a stolen semiautomatic handgun. The indictment further alleges that from March 22 to March 23, 2022, Richardson possessed a loaded semiautomatic handgun in furtherance of the drug trafficking crime of possessing marijuana with intent to distribute.
Richardson previously was charged with these offenses in a complaint filed in U.S. District Court on April 8. The complaint and affidavit allege that Richardson was the subject of an armed robbery investigation that occurred in Fitchburg on March 18 and following his arrest on March 23, a semiautomatic handgun was found in the vehicle he had been driving. Richardson has been held in the Dane County Jail since his arrest.
If convicted, Richardson faces a maximum penalty of 5 years in federal prison on the charge possessing a firearm while under indictment for a felony offense, a maximum penalty of 10 years on the charge of possessing a stolen firearm, and a mandatory minimum penalty of 5 years on the charge of possessing a firearm in furtherance of a drug trafficking crime. Federal law requires that any penalty imposed on the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed.
The charges against Richardson are the result of an investigation by the Fitchburg Police Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Madison Police Department. U.S. Attorney Timothy M. O’Shea is handling the prosecution.
Madison Man Charged with Two Gun Crimes
Kishaun J. Brooks, 20, Madison, Wisconsin, is charged with being a felon in possession of a loaded firearm and with possessing a loaded firearm in furtherance of a drug trafficking crime. The indictment alleges that from March 18 to April 1, 2022, Brooks possessed a loaded semiautomatic 9mm handgun, and that on April 1, he did so in furtherance of the drug trafficking crime of possessing marijuana with intent to distribute.
If convicted, Brooks faces a maximum penalty of 10 years in prison on the charge of being a felon in possession of a firearm, and a mandatory minimum penalty of 5 years on the charge of possessing a firearm in furtherance of a drug trafficking crime. Federal law requires that any penalty imposed on the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed.
The charges against Brooks are the result of an investigation by the Fitchburg Police Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Madison Police Department. U.S. Attorney Timothy M. O’Shea is handling the prosecution.
The indictments of Richardson and Brooks have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Muscoda Woman Charged with Drug Crimes
Pa Kou Yang, 32, Muscoda, Wisconsin, is charged with two counts of possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that she possessed 50 grams or more of methamphetamine for distribution on December 17, 2020 and February 18, 2021.
If convicted, Pa Kou Yang faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on each count. The charges against her are the result of an investigation by the Crawford County Sheriff’s Office, Onalaska Police Department, West Central Metropolitan Enforcement Group, Wisconsin Department of Justice Division of Criminal Investigation, and Richland-Iowa-Grant Drug Task Force. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Stevens Point Man Charged with Distributing Child Pornography
Alexander Kucharski, 21, Stevens Point, Wisconsin, is charged with four counts of distributing visual depictions involving the use of a minor engaging in sexually explicit conduct. The indictment alleges that he posted a file containing such depictions onto Kik on October 20, twice on November 6, and on November 10, 2021.
If convicted, Kucharski faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Stevens Point Police Department, Portage County Sheriff’s Office, and Plover Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the investigation.
Grand Jury Indicts Former Municipal Prosecuting Attorney for Jefferson County, Missouri on Civil Rights Charge and Lying to the Federal Bureau of InvestigationRead the Press Release
ST. LOUIS – A federal grand jury indicted James Isaac “Ike” Crabtree, former Municipal Prosecuting Attorney for Jefferson County, Missouri, on April 20, 2022, for one count of Deprivation of Rights under Color of Law, and one count of False Statements to the Federal Bureau of Investigation (“FBI”) related to a March 8, 2021, incident.
Crabtree was the Municipal Prosecuting Attorney for Jefferson County, Missouri until he resigned his position during March 2022 as a result of the federal criminal investigation. The Indictment alleges that, on March 8, 2021, Crabtree met with a female in his courthouse office after regular business hours. At that time, the female, identified in the Indictment as “Victim One,” was a defendant in several pending cases being prosecuted by Crabtree in Jefferson County Municipal Court. The Indictment alleges that, during that meeting, Crabtree subjected Victim One to sexual contact while acting under color of law in his position as Municipal Prosecuting Attorney, thereby depriving Victim One of her Constitutional Right not to be deprived of liberty without due process of law, which includes the right to bodily integrity. The Indictment further alleges that, on March 3, 2022, when interviewed by Special Agents of the FBI concerning the March 8, 2021, incident, Crabtree lied and falsely denied that he kissed Victim One, that he had touched Victim One’s body, and that he had Victim One take a portion of her clothing off during the meeting in his courthouse office. The Indictment alleges that Crabtree knew his statements to the FBI were false because Crabtree had taken those actions and engaged in that conduct.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Hal Goldsmith.
Gladstone Man Sentenced for Marijuana Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Gladstone, Mo., man who was injured in a shoot-out when his drug-trafficking customers tried to rob him has been sentenced in federal court for his role in a conspiracy to distribute marijuana, including selling marijuana near a public school, and illegally possessing firearms.
Carreon L. Brown, 20, was sentenced by U.S. District Judge Greg Kays on Tuesday, April 19, to 11 years and six months in federal prison without parole.
On Aug. 4, 2021, Brown pleaded guilty to one count of conspiracy to distribute marijuana, one count of distributing marijuana within 1,000 feet of a school, and two counts of possessing a firearm in furtherance of a drug-trafficking crime.
Brown admitted that he participated in a conspiracy to distribute marijuana in Clay County, Mo., from Jan. 9, 2020, to Feb. 10, 2021. During that time, he was in possession of two firearms – a Glock .45-caliber handgun and a Glock 10mm handgun.
Undercover ATF agents purchased marijuana from Brown on several occasions. Three of those undercover purchases occurred in January 2020 at a residence near Golden Oaks Education Center, a public school for special education students. The investigation paused due to the COVID-19 public health crisis, and the agents did not conduct any additional undercover purchases in 2020.
When Brown met two individuals on Oct. 30, 2020, to sell marijuana, they attempted to rob him. Brown exchanged gunfire with one of the men as Brown fled. Both Brown and one of the customers sustained gunshot wounds during the exchange. During the investigation into that incident, Kansas City police officers found the Glock .45-caliber handgun in Brown’s apartment. According to court documents, the weapon was test-fired and entered into the National Integrated Ballistic Information Network (NIBIN), which revealed presumptive matches to multiple firearm incidents, including an aggravated assault on April 26, 2020; an aggravated assault on May 1, 2020; a homicide on June 26, 2020; an aggravated assault on Sept. 8, 2020; and recovered shell casings on Oct. 29, 2020.
Given renewed concern that Brown was involved in firearm violence in the Kansas City metropolitan area, an undercover ATF agent purchased marijuana from Brown on three more occasions in February 2021. On Feb. 10, 2021, law enforcement officers executed a search warrant at Brown’s apartment. Officers found the loaded Glock 10mm handgun with an extended magazine and ammunition. Officers also found 20.64 grams of marijuana, drug paraphernalia and $1,592 in cash.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Former U.S. Army Sergeant Sentenced for Bank FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JOSHUA HOCKLESS, age 29, a resident of Belle Chasse, was sentenced to 27 months imprisonment and 3 years of supervised release by the Honorable Sarah S. Vance, announced U.S. Attorney Duane A. Evans. Also, the Court ordered HOCKLESS to pay a $100 mandatory special assessment fee and $138,859.21 in restitution to the United Services Automobile Association Federal Savings Bank (USAA).
According to court records, HOCKLESS was an Army Sergeant in the Headquarters Company, 377th Theater Sustainment Command, Naval Air Station Joint Reserve Base in Belle Chasse. HOCKLESS had a bank account at USAA and learned that USAA allowed service members to withdraw deposits before the funds formally cleared the issuing bank. Knowing this, HOCKLESS opened bank accounts at third-party banks with minimal funding, made online wire transfers from those banks to USAA, and withdrew the deposits from USAA before it detected that there were insufficient funds in the issuing bank account. HOCKLESS obtained approximately $36,119.47 as a result of these fraudulent transfers between his accounts. HOCKLESS then asked other enlisted personnel to open USAA and third-party bank accounts. The other enlisted personnel then shared with HOCKLESS, their online banking passwords. HOCKLESS used these passwords to make similar fraudulent transfers to their USAA accounts and instructed them when to withdraw the cash to split with HOCKLESS. These transfers resulted in approximately $102,739.74 being fraudulently withdrawn from USAA – approximately half of which ($51,369.57) was received by HOCKLESS.
U.S. Attorney Evans praised the work of the Army Criminal Investigations Command. The prosecution of this case is being handled by Assistant U.S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
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Former Postal Employee Sentenced for Delay of U.S. MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced the April 19, 2022 sentencing of MILES J. DUPERON, age 29, of Slidell, to one count of delay of U.S. Mail matter by postal employee, in violation of 18 U.S.C. ' 1703(a).
According to the bill of information, on or about July 2019 through January 21, 2020, MILES J. DUPERON unlawfully delayed U.S. mail, which was intended to be conveyed by mail.
U.S. District Judge Greg G. Guidry sentenced MILES J. DUPERON to one year probation and a mandatory $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of Inspector General in investigating this matter. Assistant United States Attorney M. Irene González is in charge of the prosecution.
Former NYPD Police Officer Sentenced to 97 Months' Imprisonment for Bribery and Drug Trafficking OffensesRead the Press Release
Earlier today, in federal court in Brooklyn, Robert Smith, a former New York City Police Department (“NYPD”) police officer, was sentenced by United States District Judge Rachel P. Kovner to 97 months of imprisonment for using interstate facilities to commit bribery and attempting to transport heroin. During the relevant period, Smith was a NYPD police officer assigned to the 105th Precinct in Queens, retiring in March 2020. Smith pleaded guilty to the charges in October 2021. Smith’s co-defendant, Heather Busch, also a former NYPD police officer, was sentenced in February 2022 to six months’ imprisonment, after pleading guilty in August 2021 to using interstate facilities to commit bribery. Another co-defendant, Robert Hassett, also a former NYPD police officer, pleaded guilty in October 2021 to conspiracy to violate the Travel Act and is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant L. Sewell, Commissioner, NYPD, announced the sentence.
“Corruption not only endangers the communities that police officers are sworn to serve, but it also corrodes the public’s trust in law enforcement and the criminal justice system. Robert Smith and his co-defendants were corrupt officers who sold out their badges for personal gain without regard for the betrayal and the harm they caused the NYPD and their fellow officers,” stated United States Attorney Peace. “For his crimes, Smith, self-described as ‘one of the most corrupt cops in the 105’, deservedly will spend years in prison. Today’s sentence should send a message that this Office, together with our law enforcement partners, will work diligently to investigate and prosecute corrupt public servants who exploit their positions of power for profit.”
“We have zero tolerance for corruption of any kind within the NYPD,” stated NYPD Commissioner Sewell. “We and our law-enforcement partners will continue to vigorously pursue corrupt public servants who exploit their positions for personal gain. In addition to eroding public trust in law enforcement, their disgraceful actions tarnish the reputation of the many thousands of police officers who honorably serve our communities each day.”
Smith engaged in several corrupt schemes to solicit and receive bribes while employed by the NYPD. Upon his retirement from the NYPD, Smith agreed to transport illegal drugs while armed with a gun in exchange for cash payments. In recordings obtained by the government during the investigation, Smith repeatedly referred to himself in criminal terms as, for example, “one of the most corrupt cops in the 105,” a “perp[] that got away,” and someone who, had he not been an NYPD officer, would have been “locked up so many times.”
The Tow Truck Scheme
Beginning in September 2016, NYPD Officers Smith and Hassett responded to automobile accidents by directing the damaged vehicles to a licensed tow trucking and automobile repair business (the “Business”) operated by an individual (the “Individual”), instead of using the NYPD’s Directed Accident Response Program (“DARP”), which requires NYPD officers to identify an appropriate licensed tow trucking business to respond to the scene of the automobile accident and remove the damaged vehicles from the scene. Smith and Hassett bypassed DARP and directed damaged vehicles directly to the Business in exchange for thousands of dollars in cash bribe payments. Smith and Hassett continued to participate in the scheme until at least June 2017.
In November 2019, Smith resumed his participation in the scheme and continued to steer vehicles damaged in automobile accidents to the Business in exchange for cash. Beginning in January 2020, Smith discussed his plan to recruit Busch to participate in the scheme in advance of his retirement from the NYPD. In March 2020, Busch, at Smith’s invitation, met with Smith and the Individual and agreed to participate in the scheme. Thereafter, Busch began steering vehicles damaged in automobile accidents to the Business in exchange for cash bribe payments, instead of utilizing DARP as required.
The Victim Database Scheme
Beginning in January 2020, Smith and Hassett obtained the names and identifying information of recent automobile accident victims from NYPD databases and provided that information to the Individual in exchange for cash. Smith and Hassett understood that the Individual would sell that information to physical therapy businesses and personal injury attorneys so that they could seek to solicit the automobile accident victims as customers.
Hassett accessed NYPD databases on numerous occasions in violation of NYPD regulations for the purpose of obtaining the names and identifying information of victims of automobile accidents. Hassett then arranged for that information to be delivered to the Individual, sometimes through Smith. In total, between January 2020 and March 2020, Smith and Hassett sold the names and identifying information of more than 100 victims to the Individual, in exchange for more than $7,000 in cash.
The Armed Drug Trafficking Scheme
Beginning in January 2020, Smith sought opportunities from the Individual to transport illegal narcotics, in exchange for payment, upon Smith’s retirement from the NYPD. In June 2020, Smith met with two undercover law enforcement officers posing as narcotics traffickers to discuss his interest in participating in a scheme to traffic drugs and told them he could carry a firearm and his retired NYPD identification while he was transporting the drugs. In July 2020, Smith met with a third undercover law enforcement officer and accepted a bag containing what Smith believed to be a kilogram of heroin. Smith transported the bag to a location in Queens where he delivered it to another undercover law enforcement officer in exchange for a payment of approximately $1,200 in cash.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan C. Harris and Nicholas J. Moscow are in charge of the prosecution.
The Defendants: HEATHER BUSCH
Age: 35
Massapequa, New YorkROBERT HASSETT
Age: 37
Farmingville, New YorkROBERT SMITH
Age: 45
Plainview, New YorkE.D.N.Y. Docket No. 21-CR-254 (RPK)
Former Lynn District Court Assistant Chief Probation Officer Convicted of Sexually Exploiting a ChildRead the Press Release
BOSTON – A former Assistant Chief Probation Officer for Lynn District Court was convicted by a federal jury today of child exploitation offenses.
Brian Orlandella, 49, of Beverly, was convicted following a six-day jury trial of one count of sexual exploitation of a child and one count of transfer of obscene material to a minor. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 5, 2022. Orlandella was arrested and charged in December 2018 and subsequently indicted by a federal grand jury in January 2019.
In May 2018, a mother in Texas contacted local police about messages she found on her 13-year-old daughter’s cell phone between her daughter and an adult man, later identified as Orlandella. In the messages, sent via the Kik mobile application, Orlandella sent the victim images of himself masturbating and directed her to send him sexually explicit pictures and videos of herself. The victim told him she was 14-years-old and he acknowledged that he was much older than she was.
The Kik account’s IP address was traced to Orlandella’s residence. During a search of his residence, two of Orlandella’s phones were seized, one of which contained evidence tying Orlandella to the Kik account that was used to procure sexually explicit imagery from the victim. During an on-site interview at his home, Orlandella admitted that he had used Kik and was the person depicted in the obscene videos recovered from the victim’s phone.
The charge of sexual exploitation of children provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, at least five years and up a lifetime of supervised release and a fine of $250,000. The charge of transfer of obscene material to a minor provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $150,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Port Neches (Texas) Police Department. Assistant U.S. Attorneys Anne Paruti, Chief of Rollins’ Major Crimes Unit and Adam W. Deitch, also of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to 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 http://www.projectsafechildhood.gov.
Former Jacksonville Resident Sentenced to 3 Years in Federal Prison for Travel ScamRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Harvey E. Schlesinger today sentenced Juan Carlos Arteaga (58, Conroe, TX) to 3 years in federal prison for wire fraud. Arteaga had been released on bond but was remanded into custody shortly after today’s sentencing hearing. The Court also ordered Arteaga to pay $784,364 in restitution to his victims and entered a forfeiture order in the amount of $843,187, the proceeds of the charged criminal conduct. Arteaga had pleaded guilty on November 10, 2021.
According to court documents, from at least March 2018 through January 2019, Arteaga, a former resident of Jacksonville, held himself out as someone who could provide customers with heavily discounted travel arrangements for domestic and international travel. He acted as a travel agent for clients in Florida and throughout the United States. Despite operating as a de facto travel agent, Arteaga was not a licensed travel agent.
Arteaga solicited friends, business contacts, acquaintances, and referrals from those individuals to purchase sham travel arrangements from him, including but not limited to domestic and international airfare, hotel rooms, and tickets to amusement parks. Arteaga used some of the funds he obtained from victims to purchase travel arrangements for others, which delayed discovery of the scheme since it appeared that the money victims had paid was being used to purchase the travel they had requested. Arteaga also used some of the proceeds from the scheme for his personal enrichment, including paying his mortgage, short term loans, credit card and cable bills, grocery purchases, nursing home expenses, and withdrawing large amounts of cash.
Two of the victims of Arteaga’s scheme were his longtime friends P.C. and A.C. In 2018, P.C. and A.C. began talking to Arteaga about a trip around the world through Road Scholar, Explore the World by Private Jet. P.C. and A.C. had successfully booked other travel arrangements in the past with Arteaga and had vacationed with Arteaga and his wife numerous times. Arteaga said that the Road Scholar trip would cost approximately $100,000, but if P.C. and A.C. paid him by the next day, Arteaga could get them the trip for $60,000. Arteaga instructed A.C. and P.C. to pay him $20,000 broken into five check payments, and to wire the $40,000 balance to him. A.C. and P.C. wired $40,000 to Arteaga.
In August 2018, P.C. heard from some friends that their trips with Arteaga had not been booked. A.C. then called Road Scholar and learned that their trip had not been booked. Road Scholar also advised they did not provide any discounts, including to travel agents. After discovering the trip was a sham, A.C. and P.C. confronted Arteaga, who said he had not yet booked their trip yet because he was concerned about P.C.’s health. However, neither P.C. nor A.C. had raised P.C.’s health as a reason for delaying the Road Scholar trip and they were not interested in postponing the trip.
As with other victims of his scheme, Arteaga did not use any of the funds he had received from A.C. and P.C. toward any trip with Road Scholar. Instead, he used the money to make travel arrangements for other victims and for himself, as well as to repay other travel victims.
This case was investigated by the Florida Department of Agriculture and Consumer Services and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington. The forfeiture was handled by Assistant United States Attorney Mai Tran.
Former Chairwoman of City of Austin Advisory Commission Indicted for Falsifying RecordsRead the Press Release
AUSTIN – Yesterday a federal grand jury in Austin returned an indictment charging a former chairwoman of a City of Austin advisory commission with conspiracy to misapply funds and falsify records, document falsification, and false statement offenses.
According to court documents, Jill Ramirez, 68, worked for an Austin-area nonprofit and served as the chair of a City advisory commission. In September 2015, Ramirez agreed to pay 10% of the value of federal grant proceeds from the nonprofit to Frank Rodriguez, the former executive director of the nonprofit and then a senior policy advisor to a city official. Afterwards Ramirez and Rodriguez entered into a “consulting agreement” in December 2015 so, as Rodriguez wrote, to address “any issue that someone might have that the payments are for navigator grant work” and to thereby disguise the 10% payment. Ramirez then paid Rodriguez $21,375 from the nonprofit between December 2015 and December 2016.
Rodriguez continued to work on the nonprofit’s behalf while a City employee by providing confidential City information to the nonprofit, recommending that the nonprofit receive continued City funding and undermining the nonprofit’s competitors for City funding.
In 2017, the Auditor’s Office for the City of Austin commenced an investigation into Rodriguez’s conduct. During an interview with investigators, Ramirez made false statements about the basis of the “consulting fees” paid to Rodriguez.
Ramirez is charged with one count of conspiracy to commit an offense against the United States; one count of falsification of records with intent to obstruct an investigation within the jurisdiction of the United States; and one count of false statements in a matter within the jurisdiction of the executive branch of the United States. She will have an initial court appearance at a date to be determined before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Texas. If convicted, she faces up to five years in prison on both the conspiracy and false statement charges. She faces up to 20 years in prison on the falsification of records charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Frank Rodriguez, 71, of Dripping Springs was charged separately by a criminal information. On January 7, 2022, Rodriguez pleaded guilty to one count of conspiring to misapply federal funds and falsify records in an investigation within the jurisdiction of an agency of the United States. He is scheduled for sentencing on June 17, 2022 and faces a maximum penalty of five years in prison.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Oliver E. Rich Jr. made the announcement.
The FBI is investigating the case, with assistance from the Office of Inspector General for the United States Department of Health and Human Services.
Assistant U.S. Attorneys Gabriel Cohen and Alan Buie are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Brooklyn Supreme Court Justice Sentenced to 15 Months in Prison for Obstructing Federal Investigation of Misconduct at Municipal Credit UnionRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that SYLVIA ASH, a former justice of the New York State Supreme Court and chair of the Board of Directors of Municipal Credit Union (“MCU”), was sentenced today in Manhattan federal court to 15 months in prison for conspiracy to obstruct justice, obstruction of justice, and making a false statement to a federal agent. These charges arose from a scheme to impede the federal criminal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution, including misconduct committed by Kam Wong, the former chief executive officer (“CEO”), and Joseph Guagliardo, a former New York City Police Department Officer and member of MCU’s Supervisory Committee. Wong and Guagliardo were charged separately and previously pled guilty to embezzlement from MCU. ASH was convicted in December 2021 after a two-week jury trial before U.S. District Judge Lewis A. Kaplan, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “While serving as a sitting state judge, Sylvia Ash took repeated steps, over multiple months, to seek to obstruct the federal criminal investigation into misconduct at MCU that took place during Ash’s tenure as chair of its Board of Directors. Ash agreed to do so with the now imprisoned former CEO of the credit union, who provided her with a steady stream of benefits from MCU, including after she was directed to resign from MCU’s board. Today’s sentence sends a clear message that those who attempt to thwart a federal investigation face serious consequences for that corrosive conduct.”
In pronouncing the sentence, Judge Kaplan said ASH’s “crimes struck at the heart of the criminal justice system.”
According to the Complaint, Indictment, Superseding Indictment, publicly available information, court filings, and evidence presented during the trial in Manhattan federal court:
Municipal Credit Union
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 590,000 members, and with more than $4.2 billion in member accounts, each of which is insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
At all relevant times, MCU was overseen by a Board of Directors (the “Board”) and a Supervisory Committee, each of which was composed of members of MCU, who were not supposed to be compensated. As a result of severe deficiencies in the Board’s and the Supervisory Committee’s oversight of the credit union, which came to light in connection with the federal investigation, the New York Department of Financial Services (“DFS”) removed the members of the Supervisory Committee in May 2018 and the Board in June 2018. Subsequently, DFS appointed NCUA as the conservator for the credit union. In or about February 2022, MCU successfully emerged from conservatorship under new leadership.
ASH
ASH served as a judge in the New York State court system from approximately 2006 through March 2022, first as a Kings County Civil Court Judge, and then, starting in 2011, as a Kings County Supreme Court Justice. In or about January 2016, ASH was appointed as the presiding judge in the Kings County Supreme Court’s Commercial Division. After the charges in this case were unsealed, ASH was suspended from her position. In or about March 2022, after ASH was convicted, she vacated her judicial office.
ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned. From in or about May 2015 until her resignation, ASH served as the chair of the Board. ASH resigned after a complaint was filed against her by the New York State Commission on Judicial Conduct arising from a conflict of interest between her position as a state judge and her membership on MCU’s Board. More than a year before her resignation, ASH had been instructed to resign from MCU’s Board by the Advisory Committee on Judicial Ethics, which instruction she disregarded.
From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, many of which were personal in nature, and not business-related, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences both domestically and abroad, annual birthday parties at a minor league baseball stadium, payment for phone and cable bills, and electronic devices. Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices and sports tickets. As a sitting state judge, ASH was required to report both her board service and gifts and benefits she received from any outside sources on an annual state disclosure form. But between at least 2012 and 2018, ASH never reported her board service nor any gifts or benefits from MCU.
ASH’s Obstruction of Justice
In January 2018, after Wong, MCU’s then-CEO, had been approached by federal law enforcement agents investigating apparent financial misconduct by Wong, in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars Wong had received from MCU. Wong subsequently provided that false and misleading memorandum to federal agents in an attempt to demonstrate that the millions of dollars had purportedly been orally approved for him to receive by ASH in June 2015, when she was chair of the Board. However, in truth, neither ASH nor the Board had approved the payment of those funds.
On March 1, 2018, shortly after Wong was placed on administrative leave by MCU, ASH was interviewed about the memorandum she signed for Wong. During that interview, ASH admitted that the memorandum was not accurate, but attempted to justify the money that Wong received by stating that MCU’s then-current general counsel had told her that Wong’s employment contract gave him the option of receiving such money. That statement was false.
On March 13, 2018, ASH was served with a federal grand jury subpoena (the “First Subpoena”), which required the production of documents related to various matters, including Wong’s compensation, and any communications with Wong through the date of the First Subpoena. On April 6, 2018, during a telephonic interview with a federal agent, ASH falsely stated that she did not have any materials responsive to the First Subpoena.
On June 8, 2018—after Wong was charged with embezzlement from MCU and the Government executed a judicially-authorized search of the residence of Guagliardo—ASH was interviewed by telephone for a second time about the First Subpoena. During that interview, ASH again falsely stated that she did not have any materials responsive to the First Subpoena.
On June 18, 2018, ASH was served with a second federal grand jury subpoena (the “Second Subpoena”), which required the production of, among other things, all correspondence with Wong and Guagliardo; all documents regarding any criminal investigation, internal investigation, or audit related to Wong; and all documents regarding items of value ASH received from MCU, Wong, or Guagliardo. Shortly afterward, ASH went to an Apple store and wiped an iPhone X that Wong had provided her in January 2018. In addition, ASH deleted emails from her Gmail account, including all of her emails with Guagliardo, none of which she produced in response to either of the two federal grand jury subpoenas directed to her. ASH also later wiped two MCU-issued iPads she had received.
On July 6, 2018, on ASH’s behalf, her then-counsel produced materials to the Government in response to the Second Subpoena. This production was materially incomplete, and did not contain text messages, emails, and other documents ASH possessed or had under her custody or control that were responsive to the Second Subpoena.
On July 9, 2018, ASH attended a voluntary interview with the U.S. Attorney’s Office. During this interview, while accompanied by her then-counsel, ASH made multiple false statements, including repeating false statements regarding her purported conversations with MCU’s former general counsel about Wong’s receipt of cash payments and falsely claiming that she and her aunt took a trip to Las Vegas paid for by MCU, including airfare, lodging, and entertainment expenses, after she resigned because all of her travel arrangements were paid for by MCU before she resigned, when in truth all of the expenses were paid for after she resigned.
On or about October 11, 2019, ASH was arrested, and her cellphone was seized. After obtaining a judicially authorized search warrant, ASH’s phone was searched, which revealed, among other things, numerous text messages, including with Wong and Guagliardo, that were concealed in response to the First and Second Subpoenas.
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In addition to her prison term, ASH, 64, of Brooklyn, New York, was sentenced to a $80,000 fine, and two years of supervised release, including a special condition of twenty hours of community service per week while on supervised release. The court reserved the decision on restitution to MCU.
On June 4, 2019, Wong was sentenced to 66 months’ imprisonment for embezzlement from MCU and was ordered to forfeit $9,890,375 and to pay restitution in the same amount to MCU.
On July 23, 2020, Guagliardo was sentenced to 27 months’ imprisonment for embezzlement from MCU and was ordered to forfeit $425,514 and to pay $468,189 in restitution to MCU.
U.S. Attorney Williams praised the outstanding work of the Special Agents of the United States Attorney’s Office. Mr. Williams also thanked the New York County District Attorney’s Office and DFS for their assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Daniel C. Richenthal, and Jonathan Rebold are in charge of the prosecution, with the assistance of Special Assistant U.S. Attorney Alona S. Katz from the New York County District Attorney’s Office.
Former Associate and Trap House Landlord of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering and Drug ConspiracyRead the Press Release
BOSTON – A former associate of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings), and owner of multiple apartment buildings utilized by the Latin Kings, commonly referred to as “trap houses,” pleaded guilty yesterday to racketeering and drug charges.
Robert Avitabile, a/k/a “Bobby,” 41, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to manufacture and distribute cocaine and cocaine base (crack cocaine). U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Aug. 10, 2022.
The Latin Kings in New Bedford ran a vast cocaine base distribution network that used multi-unit apartment buildings known as “trap houses” to distribute narcotics. Members of the Latin Kings dealt drugs in the trap houses, obtaining their supply of crack cocaine from the Chapter leader, Jorge Rodriguez, a/k/a “King G.” As detailed in court filings in the case, evidence developed during the investigation included multiple recordings of Rodriguez cooking crack cocaine at the trap houses, directing violence against rival gang members, meting out discipline and handling firearms used to protect the Latin Kings’ drug distribution network.
Avitabile owned multiple apartment buildings in New Bedford referred to as a “trap houses” and rented them to the Latin Kings, knowing that they would be used by the gang as locations where drugs would be dealt, and otherwise serve as centers of power for the gang. Despite the fact that police searched the rental units controlled by the Latin Kings dozens of times, Avitabile continued to rent the units to the gang. Court documents also described recordings and interceptions made of Avitabile coordinating with Jorge Rodriguez on arrangements including payment of rent by Latin Kings members, placement of Latin Kings members in certain apartment units and investment of Rodriguez’s drug proceeds into real estate.
Avitabile rented the apartment units to Latin Kings members, knowing that they would be used to sell, store and manufacture drugs. Through Avitabile’s association with the Latin Kings and Rodriguez, the Latin Kings used the apartment buildings to facilitate their campaign of street violence, drug dealing and otherwise control the neighborhood.
Pursuant to the terms of the plea agreement, Avitabile has agreed to forfeit proceeds from the sale of three apartment buildings in New Bedford, which were historically used by the Latin Kings.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Avitabile is the 57th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide for a sentence of up to 20 years, 40 years or life in prison; a minimum of three, four or five years of supervised release; and fines of $1 million, $5 million and $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Finds Ohio Man Guilty in Connection with Destructive Devices Found on Tug BoatsRead the Press Release
CHARLESTON, W.Va. – After a two-day trial, a federal jury convicted an Ohio man of all four counts in a federal indictment charging him in connection with pipe bombs found on tugboats on the Ohio River.
Law enforcement officers recovered the destructive devices from two different tugboats moving barges on the Ohio River on October 21 and October 25, 2021. Evidence at trial revealed Nathaniel Blayn Becker, 42, of Marietta, Ohio, appeared on security video purchasing pipes and other relevant components of the devices from a Lowe’s store in Marietta on four separate occasions and close in time to when the devices were found. Around the time of the first incident, exterior security video from Lowe’s and the Walmart in Marietta showed Becker carrying pipe bomb components toward an Ohio River bridge. Investigators believe the destructive devices were dropped from the bridge.
Becker was found guilty of two counts of possession of an unregistered destructive device and two counts of placement of a destructive device on a vessel. He is scheduled to be sentenced on August 18, 2022, and faces up to 60 years in prison.
The jury also heard that similar devices were discovered on a third tugboat moving barges on the Ohio River on October 26, 2021. However, those devices were found to contain non-explosive septic tank cleaner and therefore Becker was not charged.
Becker was on probation at the time of the offense, following his August 2020 conviction in the Washington County, Ohio, Court of Common Pleas for failure to comply with an order or signal of a police officer. Becker had brandished a knife at an officer during a traffic stop and then led police on a car chase before barricading himself in his residence. Becker was arrested after a stand-off that ended when police forced entry into the home.
“We are fortunate that no one was injured. Such senseless potential for harm and destruction clearly required decisive action,” said United States Attorney Will Thompson in making the announcement. “The swift and successful investigation by the law enforcement agencies involved absolutely prevented this situation from becoming worse, and I commend them. I applaud Assistant United States Attorneys Joshua C. Hanks and Nick Miller, along with their trial team, for securing the guilty verdict.”
Thompson also thanked Lowe’s, Walmart and the tugboat owners – Crounse Corporation, Campbell Transportation Company and Marathon Petroleum Corp. – for their extensive cooperation in the case as well.
United States District Judge Irene C. Berger presided over the jury trial. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation with assistance from the Federal Bureau of Investigation (FBI), the West Virginia State Police, the U.S. Coast Guard, the Parkersburg Police Department, the Wood County Sheriff’s Department and the Washington County, Ohio, Sheriff’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00234.
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Federal Jury Convicts Big Island Pain Doctor Rudolph B. Puana of Conspiracy and Distribution of Oxycodone and FentanylRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Chopra (619) 546-8817, Colin McDonald (619) 546-9144, and Andrew Chiang (619) 546-8756
NEWS RELEASE SUMMARY – April 20, 2022
HONOLULU, Hawaii – A federal jury has found former Big Island pain doctor Rudolph B. Puana guilty of all 38 counts of an indictment charging him with conspiracy to distribute oxycodone and fentanyl and distribution of oxycodone and fentanyl outside the course of professional practice and without a legitimate medical purpose. Immediately following the jury’s verdict, Chief District Judge J. Michael Seabright ordered Puana to be remanded into custody.
Following a three-week trial, the jury deliberated for less than one day and convicted Puana of distributing substantial quantities of oxycodone, a Schedule II controlled substance, to his close friends to sell to pay for tuition at one of the most expensive private schools in the State of Hawaii and to purchase cocaine. The jury also found that Puana provided another friend with oxycodone and fentanyl to pay for cocaine they used to party together on Oahu. Prior to the jury trial, Puana pleaded guilty to being an addict in possession of approximately seven firearms. At the guilty plea hearing on March 28, 2022, Puana admitted that between 2014 and 2018 he was addicted to hydrocodone, a Schedule II controlled substance, while possessing the seven firearms, which included handguns, rifles, and a shotgun.
During the trial, the United States proved that Puana used cocaine with his friends and introduced his best friend to Puana’s “trinity”—cocaine, opioids, and alcohol—which combined to prolong and even out the “high.” Puana also popped hydrocodone pills—which he referred to as his “skittles”—in front of one of his friends. Puana said he obtained his “skittles” from the “doctor’s candy store.” Puana also left his script pad with his best friend and falsified medical records to legitimize a medical purpose for the substantial amount of oxycodone he provided to his friends. While addicted and abusing drugs, Puana distributed more than 7,810 oxycodone 30mg pills to his friends so that they could sell them to pay for tuition and cocaine. The street value of the oxycodone he supplied to his friends exceeded $117,000.
To conceal his crimes, Puana fabricated handwritten medical records for his closest friends, which included false drug tests. During their testimony, Puana’s friends admitted that Puana was not their pain doctor and that they had never gone to his clinic (previously the Puana Pain Clinic) for any medical visits, even though Puana falsely documented that they were examined there. In addition to falsifying the clinic’s files, Puana also kept a secret notebook hidden in the clinic’s drug closet. The notebook was handwritten by Puana to cover up his multi-year addiction to hydrocodone.
“The unlawful diversion of prescription drugs is one of the most serious problems plaguing our communities, and it is fueling the opioid epidemic that is ravaging families across the country,” said U.S. Attorney Randy S. Grossman. “The conviction of a pain doctor abusing his power and position to distribute highly addictive and dangerous oxycodone and fentanyl sends a strong message to any medical professional acting outside the regular course of practice and prescribing opioids without a legitimate medical need.”
“Today’s guilty verdict is a testament that no doctor should use his license to unlawfully distribute controlled substances and falsify medical records to conceal his crimes,” said FBI Special Agent in Charge Steven Merrill. “The FBI will continue to work with our partners to hold those who abuse their positions of trust accountable, and to protect the public.”
During trial, the prosecution relied on a multitude of documentary evidence, including Puana’s false clinic files, Puana’s handwritten notebook, pharmacy records, text messages, and other business records, as well as the testimony of Puana’s closest friends, federal agents, a forensic accountant, a medical expert, and police officers, among others, to prove Puana intentionally distributed oxycodone and fentanyl outside the usual course of professional practice and without a legitimate medical purpose.
Chief District Judge Seabright of the District of Hawaii, who presided over the trial, set sentencing for Rudolph B. Puana on September 12, 2022, at 1:30 p.m.
U.S. Attorney Grossman praised prosecutors Michael Wheat, Joseph Orabona, Colin McDonald, Janaki Chopra, and Andrew Chiang, and FBI agents in Honolulu for their excellent work on this case.
DEFENDANTS Case Number: CR 19-00015 JMS-WRP
Rudolph B. Puana Age: 50 Waimea, Hawaii
SUMMARY OF CONVICTIONS
Count 1 – Conspiracy to Distribute or Dispense Oxycodone and Fentanyl – Title 21, U.S.C., Sections 841(a)(1) and 846
Maximum Penalty: Twenty years in prison, $250,000 fine.
Counts 3-38 – Distributing or Dispensing Oxycodone – Title 21, U.S.C., Section 841(a)(1)
Maximum Penalty: Twenty years in prison per count, $250,000 fine per count.
Count 39 – Distributing or Dispensing Fentanyl – Title 21 U.S.C., Section 841(a)(1)
Maximum Penalty: Twenty years in prison, $250,000 fine
Count 54 – Unlawful Possession of Firearm While Addicted to Controlled Substance – Title 18, U.S.C. Section 922(g)(3)
Maximum Penalty: Ten years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation
Honolulu Division
Federal Indictment Returned Against Former State Correctional Officers for Drug-Related OffensesRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence has returned an indictment in connection with drug-related charges against two former correctional officers with the South Carolina Department of Corrections (SCDC).
Specifically, Joseph Corey Bailey, Jr., 29, and Xavier Kaseem Capers, 28, both of Ridgeland, were charged with conspiring to distribute at least 50 grams of methamphetamine and possession with intent to distribute at least 50 grams of methamphetamine. Bailey and Capers were correctional officers at SCDC’s Ridgeland Correctional Institution when SCDC staff located approximately 400 grams of methamphetamine inside the prison located in a bag previously handled by the two men.
“We work routinely with our partners at SCDC and DEA to ensure that there is no safe harbor for those violating federal laws in South Carolina,” said U.S. Attorney Corey F. Ellis. “This office will investigate and prosecute federal crimes regardless of who commits those crimes.”
“Correctional officers who break the public trust need to be held accountable,” said Bryan Stirling, Director of SCDC. “We are grateful to our partners for their hard work in this case.”
“Correctional officers are held to a higher standard and are entrusted to ensure a safe environment by supervising inmate behavior and enforcing regulations such as keeping contraband - in this case “meth” - out of prisons,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “It is alleged that these officers chose to violate their oath by allowing illicit drugs to enter a prison. If so, they will be held accountable for their actions. DEA would like to thank its law enforcement partners who made this case a success.”
Bailey and Capers each face a mandatory minimum penalty of 10 years in federal prison if convicted.
The case was investigated by the DEA and SCDC. Assistant U.S. Attorney Justin Holloway is prosecuting the case.
The United States Attorney stated that all charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Fort Washakie Man Charged with Assault by StrangulationRead the Press Release
United States Attorney Bob Murray announced today that DARWIN JAMES BROWN, 56, of Fort Washakie, Wyoming, was charged with assault by strangulation. Brown appeared for an arraignment hearing on April 5, 2022, before Federal District Court Magistrate Judge Kelly H. Rankin and pleaded not guilty to the charges. A trial has been set for June 6, 2022.
Brown faces up to 10‑years’ imprisonment, three years of supervised release, up to a $250,000 fine, and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jonathan C. Coppom is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-CR-00036
Erie Felon Charged with Illegally Possessing A Firearm while Subject to a PFARead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Dustin Robert Patterson, 29, as the sole defendant.
According to the Indictment presented to the court, in and around February 2022, Patterson possessed a firearm while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. In addition, the firearm was possessed while Patterson was subject to a Protection From Abuse order.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevent and reentry programs for lasting reductions in crime.
The law provides for a maximum total of 20 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
El Salvadoran National Sentenced to Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced the April 19, 2022 sentencing of HECTOR RODRIGUEZ-RODRIGUEZ, age 55, for the charge of reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. § 1326(a) and (b)(2).
According to the bill of information, HECTOR RODRIGUEZ-RODRIGUEZ, unlawfully reentered the United States after having been deported on October 27, 1992.
U.S. District Judge Jay C. Zainey sentenced HECTOR RODRIGUEZ-RODRIGUEZ to a term of imprisonment of eighty-seven months, a term of supervised release of three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney M. Irene González is in charge of the prosecution.
District of Columbia Man Sentenced to Four Years in Prison for Possessing Child PornographyRead the Press Release
WASHINGTON –Thomas Keelen, 53, of Washington, D.C., has been sentenced to four years in prison after earlier pleading guilty to a federal charge of possessing child pornography.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Robert J Contee III, Chief of the Metropolitan Police Department.
Keelen pleaded guilty in August 2021, in the U.S. District Court for the District of Columbia. He was sentenced yesterday by the Honorable Paul L. Friedman. Upon completion of his prison term, Keelen will be placed on 10 years of supervised release. He will also be required to register as a sex offender following his release from prison.
According to the government’s evidence, law enforcement received a series of eight Cybertips from the National Center for Missing and Exploited Children that indicated that Keelen was using email accounts to transfer and transport child pornography. The eight Cybertips contained over 2,000 files, a portion of which depicted young boys being sexually abused by adult men. In December of 2020, law enforcement executed a search warrant at Keelen’s home in Southeast Washington. Digital devices recovered during the search of Keelen’s home contained videos and images depicting the sexual exploitation of children as young as eight years old.
Keelen was arrested on Dec. 2, 2020, and he has remained in custody.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Contee commended the work of those who investigated the case from the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They also commended the work of Assistant U.S. Attorney Amy E. Larson, who prosecuted the case.
Detroit Man Convicted of Fraud and Gun OffensesRead the Press Release
DETROIT – A Detroit man pleaded guilty to charges of being a felon in possession of a firearm, wire fraud, and aggravated identity theft, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca of the FBI’s Detroit Division.
Pleading guilty was Damon Long, 25. Long is scheduled to be sentenced on August 16, 2022 before United States District Judge Victoria Roberts.
According to court records, Long was a member of a violent street gang, the Glock Boyz. The Glock Boyz have perpetrated acts of violence against rival gangs and have been victims of such violence. In May 2021, the FBI executed a search warrant at Long’s residence in Detroit and seized two of Long’s loaded pistols. Agents also seized evidence that Long engaged in wire fraud by submitting false applications for federal Unemployment Insurance (UI) benefits. Long, who is a convicted felon, admitted illegally possessing the pistols during his plea hearing. Long also admitted that he fraudulently submitted UI claims in the names of more than 10 people and received more than $300,000 in proceeds from this fraud.
“This case is an example of how we will use every tool available to target violent offenders and remove them from our communities,” stated U.S. Attorney Ison.
“Damon Long defrauded the State of California of more than $300,000 by filing for unemployment insurance benefits in the names of dozens of identity theft victims. We will continue to work with our law enforcement partners and state workforce agencies to safeguard the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Special agents from the FBI’s Violent Gang Taskforce and the Department of Labor investigated this case. The case is being prosecuted by Assistant United States Attorneys assigned to the United States Attorney’s Office’s Violent & Organized Crime Unit.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Delaware County Man Pleads Guilty to Sexual Exploitation of a Child, Distribution of Child Pornography and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Jeremie Hoyt, age 42, of Davenport, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to two counts of sexual exploitation of a child, two counts of distribution of child pornography, and one count of possession of child pornography announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI) and New York State Police Superintendent Kevin P. Bruen.
Hoyt, who remains detained pending his sentencing scheduled for August 24, 2022, faces at least 15 years and up to 110 years imprisonment on the charges, and a fine of up to $250,000. The Court must also impose a term of supervised release of between 5 years and life, and Hoyt will be required to register as a sex offender as a result of this conviction. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Hoyt admitted that he used a child to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct, and that in August of 2019 he produced a sexually explicit photograph of the child, and in November 2020 he produced a sexually explicit video of the same child. Hoyt further admitted that he later distributed the sexually explicit image and video over the Internet to other users on a messaging application and that he still possessed the sexually explicit image and video on his iPad when law enforcement searched his home in April 2021.
Hoyt’s case was investigated by U.S. Homeland Security Investigations (HSI), Investigators of the New York State Police, Computer Crimes Unit (CCU), and the Delaware County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as 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.
Defendants Receive Sentences Totaling 30+ Years in Federal Prison on Drug Trafficking and Firearms ChargesRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that three defendants were sentenced in U.S. District Court yesterday for drug trafficking and firearms violations.
Christopher Antrell Bernard, 43, of Shreveport, was sentenced by United States District Judge Elizabeth E. Foote to 262 months in prison, followed by 5 years of supervised release for possession of a firearm in furtherance of drug trafficking. In addition, Bernard was found guilty of violating his probation and was sentenced to an additional 37 months in prison. Bernard’s total sentence today was 299 months (24 years, 11 months) in prison.
On May 6, 2020, officers with the Shreveport Police Department initiated a traffic stop of a vehicle being driven by Bernard and he was the sole occupant of the vehicle. As he exited the vehicle, officers observed a handgun in plain view between the console and driver’s seat. Officers searched Bernard’s vehicle and found individual baggies containing approximately 76 grams of marijuana and a scale. The firearm which was in plain view was found to be a loaded 9mm pistol. At the time of Bernard’s arrest, he was on supervised release after receiving an Executive Grant of Clemency signed by President Barack Obama on January 19, 2017 commuting his sentence. Bernard was previously sentenced in federal court on March 31, 2009 to 240 months in prison for distribution of cocaine.
The case was investigated by the ATF and Shreveport Police Department and was prosecuted by Assistant U.S. Attorney Robert F. Moody.
In a separate case, Chief United States District Judge S. Maurice Hicks, Jr. sentenced Bennie Sylvester Epps, 32, of Zwolle, Louisiana, to 66 months (5 years, 6 months) in prison, followed by 5 years of supervised release. Epps pleaded guilty on December 14, 2021 to one count of possession of marijuana with intent to distribute and one count of possession of a firearm in furtherance of drug trafficking.
On July 21, 2020, agents with the Sabine Parish Tactical Narcotics Team made a traffic stop on a vehicle for having a shattered windshield. Upon stopping, the driver exited the vehicle and fled the scene and agents were unable to locate him. Moments later, an individual later determined to be Epps, exited from the rear of the same vehicle carrying a black duffel bag and fled. During the pursuit, Epps tossed the bag as he ran but he was soon apprehended. The duffel bag was recovered and found to contain marijuana and other drug paraphernalia. Agents also recovered a loaded handgun near the bag.
The case was investigated by the ATF and Sabine Parish Tactical Narcotics Team and prosecuted by U.S. Attorney Brandon B. Brown.
In another case, United States District Judge Donald E. Walter sentenced Nicholas J. Bryant, 21, of Shreveport, to 46 months (3 years, 10 months) in prison, followed by 2 years of supervised release. Bryant pleaded guilty on January 19, 2022 to being a prohibited person in possession of a firearm.
Following a July 4, 2021 shooting, agents with the Bureau of Alcohol, Tobacco, Explosives and Firearms (ATF) Task Force located Bryant and read him his Miranda warnings. In questioning him following the arrest, Bryant admitted to agents that he had a gun his car. Agents searched the vehicle and found a 9mm pistol with an extended magazine containing 25 rounds of ammunition. Bryant was previously convicted of domestic abuse battery in the First Judicial District Court in Caddo Parish, Louisiana in 2021. This conviction prohibited Bryant from possessing any firearm or ammunition.
The case was investigated by the ATF and Shreveport Police Department and was prosecuted by Assistant U.S. Attorney Robert F. Moody.
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Defendant Who Ordered Fentanyl Through SnapChat Sentenced to PrisonRead the Press Release
ABINGDON, Va. – A Marion, Virginia man, who ordered hundreds of fentanyl-laced pills through Snapchat from a supplier in California, was sentenced yesterday to 42 months in federal prison.
Kobe Malik Woods, 19, pleaded guilty in January to one count of possession with the intent to distribute more than 40 grams of fentanyl.
“Throughout the Commonwealth of Virginia and across the nation, individuals are struggling with substance abuse disorder, a disease fueled by those who profit from addiction,” United States Attorney Christopher R. Kavanaugh said today. “Fentanyl-laced pills pose a significant risk of death to anyone who ingests them, and my Office will continue to bring individuals to account for trafficking these deadly drugs in our communities.”
“Our mission is to protect the American people. This includes doing our part working with our local and federal law enforcement partners to identify and arrest those responsible for introducing these pills, or any illicit drug, into our communities,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division.
According to court documents, in early 2021, law enforcement began investigating a flood of illegal pill distribution in Smyth County, Virginia, and soon identified multiple people who were involved. As part of the investigation, law enforcement intercepted a parcel shipped from California and addressed to Woods’s residence that contained approximately 800 fentanyl pills.
Although they resembled pharmaceutical-grade oxycodone-hydrochloride pills, the intercepted pills were inconsistent in size, shape, and color, indicating that they were counterfeit pills. Pills of this type are sometimes referred to as “Roxicodone,” “pressed,” or “M30” pills. The pills often have an imprint of an “M” on one side and a “30” on the other side.
In June of 2021, law enforcement executed a controlled delivery of the parcel to Woods’s home in Marion, Virginia. While conducting surveillance on the residence, investigators observed a woman retrieve the package and take it inside the home. When investigators executed a search warrant at the home, Woods attempted to escape with the opened parcel in his hands but was captured a short distance away.
The Smyth County Sheriff’s Office, the U.S. Postal Inspection Service, the U.S. Postal Service—Office of the Inspector General, and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Whit D. Pierce prosecuted the case.
Cumberland County Man Charged with Threatening President Biden and Former President TrumpRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mohamed Farah, age 32, of Cumberland County, Pennsylvania, was indicted by a federal grand jury for threatening the President and a former President.
According to United States Attorney John C. Gurganus, the indictment alleges that in January 2022, Farah, who is a citizen of Somalia, threatened to assassinate President Biden. The indictment further alleges that Farah threatened to assassinate former President Trump if he runs for reelection.
The case was investigated by the U.S. Secret Service, the Federal Bureau of Investigation, and the Lower Allen Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
The maximum penalty under federal law for each of the charged offenses is five 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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Council Bluffs Man Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
COUNCIL BLUFFS, IA – Luke Alric Forman, age 31, of Council Bluffs, was sentenced Thursday April 14, 2022, in federal court to 210 months in prison for Receipt of Child Pornography. His term of imprisonment will be followed by five years of supervised release. According to court documents, Forman pleaded guilty to the offense on December 16, 2021.
The Council Bluffs Police Department initiated an investigation after they received a CyberTip from the National Center for Missing and Exploited Children in which ten videos of child pornography were uploaded using KIK messenger. The CyberTip was linked to Forman’s residence in Council Bluffs. A search warrant was executed at Forman’s home and a cellular phone was seized. A forensic examination was completed on the cellular phone and revealed Forman had distributed, received, and possessed images and videos of child pornography and engaged in numerous conversations about this activity using KIK messenger.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Council Bluffs Police Department, with assistance from the United State Secret Service National Computer Forensics Institute, which provided training and equipment.
Convicted Felon Sentenced to Almost Four Years for Firearms Offenses Following Dangerous Car Chase in Fairmount Section of PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Demetrius Wilson, 30, of Philadelphia, PA, was sentenced to 3 years and 10 months in prison, and three years of supervised release by United States District Court Judge Paul S. Diamond for a firearms offense which stemmed from a dramatic and perilous flight from Philadelphia Police.
In September 2021, the defendant pleaded guilty to possession of a firearm by a convicted felon. In January 2020, Philadelphia police attempted to conduct a traffic stop of a vehicle which was being operated by Wilson for a routine traffic violation in a residential neighborhood in the Fairmont-Brewerytown section of Philadelphia. Instead of complying with the traffic stop, Wilson sped away in his vehicle and the officers pursued him. The car chase ended when Wilson crashed into a telephone pole, but even after that accident he continued to flee undeterred; the defendant exited the vehicle and continued to flee on foot. Wilson’s reckless attempt to escape ended when he collided with a Philadelphia police officer and the gun in his possession, a loaded 9mm handgun, flew from his hand.
“The defendant’s actions, both the illegal possession of a firearm and his potentially deadly exploits on the road, presented a serious threat to the safety of our community,” said U.S. Attorney Williams. “This sentence of years in prison should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms that we will use every law enforcement tool at our disposal to find and stop you. If you choose to illegally carry a firearm, you are going to face serious federal charges.”
“Convicted felons, who illegally possess firearms, will face federal prosecution and the possibility of a lengthy federal prison sentence,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “I want to thank our partners at the Philadelphia Police Department and the United States Attorney’s Office for their combined efforts investigating this case.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Ashley N. Martin.
Contracted Accountant Sentenced to Prison for Second Embezzlement ConvictionRead the Press Release
PITTSBURGH, PA - A resident of Pleasant Hills, PA, has been sentenced in federal court to 21 months in prison followed by three years of supervised release on his conviction of wire fraud, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Walter Tymoczko, age 48.
According to information presented to the court, Tymoczko was an independent contractor performing accounting work for a local company. From October 2018, until October 2019, Tymoczko embezzled funds from the company by utilizing an Inuit QuickBooks payroll program. Tymoczko used the program multiple times to transfer funds from the victim’s bank account to his own bank account and a family member’s bank account for a total of $73,206.77. The Court was further advised that Tymoczko has a previous federal felony conviction for embezzling from various clients. In the previous case, Tymoczko was sentenced to 24 months in prison and ordered to pay a total of $254,974.60 in restitution to various victims.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Tymoczko.
Cogan Station Man Charged with Tax EvasionRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Devon Buck, age 33, of Cogan Station, Pennsylvania, has been charged in a one-count criminal Information with attempting to evade income taxes.
According to United States Attorney John C. Gurganus, the Information alleges that Buck operated a landscaping business called DCL Landscaping and for the calendar years 2015 through 2019, Buck attempted to evade $203,324 in federal income taxes. The Information alleges that Buck prepared and delivered business invoices to DCL customers requesting that they make checks for landscaping services payable to Buck personally, instead of DCL, Buck asked customers to not place the DCL name on their checks, and he provided DCL invoices to customers which included an instruction to make their payments payable to Buck individually. The Information also alleges that from 2015 through 2019, Buck diverted approximately $677,877 of DCL receipts by cashing customer checks rather than depositing them into a business bank account, and he deposited only $240,749 of customer payments into the DCL business bank account during that period. He allegedly provided fraudulent business summaries to his tax return preparer for use in preparing IRS Form 1040 income tax returns and Schedule C statements of business receipts and expenses, which falsely underreported DCL gross receipts and evaded the payment of federal income taxes.
The case was investigated by the Internal Revenue Service, Criminal Investigations. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
The maximum penalty under federal law for this offense is five (5) 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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Citrus County Convicted Felon Sentenced to More Than 4 Years for Possession of Firearms and AmmunitionRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II today sentenced Christopher Lawrence Leslie (25, Homosassa) to four years and four months in federal prison for possessing firearms and ammunition as a convicted felon and for possessing a National Firearms Act (NFA) firearm (short-barreled rifle). The Court also ordered Leslie to forfeit the firearms and ammunition associated with the offenses. Leslie had been indicted on November 9, 2021, and had pleaded guilty on December 15, 2021.
According to court documents, on October 19, 2021, deputies from the Citrus County Sheriff’s Office responded to a burglary call at a property where Leslie was residing. During the investigation, the deputies discovered Leslie, a convicted felon, in possession of three firearms—a revolver, a rifle with a scope, and a sawed-off, bolt-action rifle—as well as assorted ammunition. The bolt-action rifle had an overall length of approximately 20 inches and a barrel length of approximately 10 inches, making it an NFA firearm (short-barreled rifle). This firearm was not registered to Leslie in the National Firearms Registration and Transfer Record, as required by federal law. After his arrest, Leslie admitted that all of the recovered firearms and ammunition belonged to him. As a convicted felon, Leslie is prohibited from possessing firearms or ammunition.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Central Illinois Man Sentenced to 16 Years in Federal Prison for Attempting to Traffic Cocaine in ChicagoRead the Press Release
CHICAGO — A central Illinois man has been sentenced to 16 years in federal prison for attempting to traffic cocaine in Chicago.
A jury last year convicted TEKOA Q. TINCH, 34, of Bloomington, Ill., of attempting to possess cocaine with the intent to distribute. Tinch in May 2018 attempted to buy a kilogram of cocaine from an individual in a grocery store parking lot in the Little Village neighborhood of Chicago. Unbeknownst to Tinch, the cocaine was fake and the seller was an undercover law enforcement officer.
U.S. District Judge Andrea R. Wood imposed the sentence Tuesday after a hearing in federal court in Chicago. Judge Wood also found that Tinch directed an individual to purchase two firearms for Tinch in April 2018, and that those firearms were in the vehicle when Tinch drove to the meeting with the undercover officer.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“For many years the City of Chicago and other areas in the Northern District of Illinois have been plagued by drug trafficking, along with the violent crime that often accompanies drug trafficking,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum. “While drug trafficking is always a serious crime, the circumstances of defendant’s offense of conviction are particularly serious.”
Capitol Heights, Maryland Man Sentenced to Seven Years in Federal Prison for Possession with Intent to Distribute Controlled Substances and Federal Firearm ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Billy Lorenzo Bush, age 38, of Capitol Heights, Maryland to seven years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Toni M. Cosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, on June 8, 2020, officers discovered Bush passed out and unresponsive in the driver’s seat of a vehicle that was involved in a single-vehicle accident. Bush was the sole occupant in the vehicle. Upon further inspection, officers saw baggies of marijuana spilling out of a backpack and a handgun on the front passenger seat.
After additional PGPD officers arrived on the scene, officers broke the driver’s side window to unlock the doors and remove Bush from the vehicle. As a result of the search of Bush’s vehicle, officers recovered a .40 caliber handgun loaded with 15 rounds of ammunition, 1,100.80 grams of marijuana, digital scales, empty baggies, and 47.55 grams of a substance containing PCP. Bush became responsive upon his removal from the vehicle and was subsequently taken into custody when they searched Bush incident to his arrest, officers found on his person 102.29 grams of a substance containing eutylone.
Bush agrees that he possessed the marijuana and eutylone and intended to distribute them to others. Bush also agrees that he possessed the .40 caliber firearm in furtherance of his drug trafficking activities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jessica C. Collins, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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