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Wednesday 9 March 2022
Oklahoma Resident Pleads Guilty to Murder in Indian CountryRead the Press Release
WASHINGTON – An enrolled member of the Seminole Nation of Oklahoma pleaded guilty today to second degree murder in Indian Country in connection with a homicide that took place in 2015 in Oklahoma.
According to court documents, in May 2015, John Douglas Knight, 41, and Matthew Armstrong, 32. both of Seminole, Oklahoma, received orders from the Indian Brotherhood, a prison-based gang active in Oklahoma, to go to victim Scotty Candler’s residence and question him. Knight and Armstrong, both carrying firearms, went to Candler’s residence in Seminole County. Knight and Armstrong planned to question, point their firearms at Candler, and beat him up. Instead, Knight and Armstrong shot Candler in the head, killing him. Knight and Armstrong then ran from the residence and disposed of the firearms.
Armstrong pleaded guilty on Oct. 20, 2021 and is awaiting sentencing. According to court documents in that case, Knight and Armstrong went to question the victim Candler about an unrelated homicide that took place behind a WalMart store in Seminole.
Knight pleaded guilty to murder in the second degree. He will be sentenced at a later date and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.
The FBI and the Oklahoma State Bureau of Investigation are investigating the cases.
Trial Attorneys Brian Morgan and Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case in coordination with the U.S. Attorney’s Office for the Eastern District of Oklahoma.
Oklahoma Man Pleads Guilty to Murder in Indian CountryRead the Press Release
An enrolled member of the Seminole Nation of Oklahoma pleaded guilty today to second degree murder in Indian Country in connection with a homicide that took place in 2015 in Oklahoma.
According to court documents, in May 2015, John Douglas Knight, 41, and Matthew Armstrong, 32. both of Seminole, Oklahoma, received orders from the Indian Brotherhood, a prison-based gang active in Oklahoma, to go to victim Scotty Candler’s residence and question him. Knight and Armstrong, both carrying firearms, went to Candler’s residence in Seminole County. Knight and Armstrong planned to question, point their firearms at Candler, and beat him up. Instead, Knight and Armstrong shot Candler in the head, killing him. Knight and Armstrong then ran from the residence and disposed of the firearms.
Armstrong pleaded guilty on Oct. 20, 2021 and is awaiting sentencing. According to court documents in that case, Knight and Armstrong went to question the victim Candler about an unrelated homicide that took place behind a Walmart store in Seminole. Another individual, Kadetrix Grayson, was charged with the homicide in question and is awaiting trial in the Eastern District of Oklahoma.
Knight pleaded guilty to murder in the second degree. He will be sentenced at a later date and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.
The FBI and the Oklahoma State Bureau of Investigation are investigating the cases.
Trial Attorneys Brian Morgan and Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case in coordination with the U.S. Attorney’s Office for the Eastern District of Oklahoma.
Multi-Felon Wendell Man Sentenced to 5 Years in Prison after Bringing a Firearm to Elizabeth City Police StationRead the Press Release
RALEIGH, N.C. – Herman Felton, 52, of Wendell, was sentenced today to 60 months in prison for possessing a stolen firearm. Felton pled guilty to a single-count criminal information on December 1, 2021.
According to court records and statements made during hearings, on January 14, 2019, an Elizabeth City Police Department detective interviewed Felton at the police department regarding an ongoing homicide investigation. Felton denied being involved. He admitted to having a gun but said it was not the one from the shooting and offered to bring it in to be checked. Felton, who as a felon could not lawfully possess a firearm, returned the same afternoon with a Smith & Wesson .38 caliber revolver.
Felton’s criminal record spans four decades and includes over three dozen misdemeanor and felony convictions. His 12 felony convictions include habitual assault, possession with intent to sell or deliver cocaine, and a prior federal conviction for conspiring to distribute 50 grams or more of crack cocaine.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Elizabeth City Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-cr-0006-D.
Monroe Man Sentenced to Federal Prison for Trafficking MethamphetamineRead the Press Release
MONROE, La. - Darryl Andrea Williams, 59, of Monroe, Louisiana was sentenced yesterday by United States District Judge Terry A. Doughty to 144 months (12 years) in prison, followed by 5 years of supervised release, announced United States Attorney Brandon B. Brown.
An investigation by agents with the U.S. Drug Enforcement Administration (DEA) determined that between October 2018 and March 2020, Williams conspired with others to possess with intent to distribute at least 150 grams but not less than 500 grams of methamphetamine. The organization that Williams was a part of would arrange for methamphetamine to be sent to Monroe area via couriers, sending approximately 1-1.5 kilos of methamphetamine at a time. Once in Monroe, Williams would then pick up the narcotics from the couriers and take it to one of his co-conspirators who would break it up and then give it to Williams with instructions on where to deliver it. Law enforcement agents were able to get approval for a wiretap on Williams’ phone and intercepted numerous phone calls wherein they discussed the sale and purchase of the narcotics.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorneys Brian C. Flanagan and J. Aaron Crawford.
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Mexican Man Sentenced to 24 Months’ Imprisonment for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 8, 2022, Joel Luis-Aguilar, age 56, was sentenced to 24 months’ imprisonment to be served consecutive to a recently imposed state sentence of 2-10 years for his tenth DUI, by United States District Judge Jennifer P. Wilson for illegal re-entry of a previously deported alien. Luis-Aguilar was also sentenced to one year of supervised release to be served upon release from his federal sentence.
According to United States Attorney John C. Gurganus, Luis-Aguilar pleaded guilty to having illegally reentered the United States sometime after his last removal in April 2014 after eluding examination or inspection by immigration officers. He was encountered in the United States pursuant to an arrest for DUI while also subject to an arrest warrant for a previous DUI. It is expected he will be removed to Mexico at the completion of his sentence.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson prosecuted the case.
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Meridian Man Sentenced to over 7 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man was sentenced to 92 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Lakennth J’Darrious Smith, 30, was found in possession of a firearm by officers of the Meridian Police Department on August 28, 2019, during the execution of a search warrant. Smith had a 7.62x39mm caliber pistol in his bedroom. Smith has two prior felony convictions. As a convicted felon, it is contrary to federal law for Smith to possess any firearm.
The Meridian Police Department and the FBI investigated the case.
Assistant U.S. Attorney Charles W. Kirkham 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.
Massachusetts State Police Agrees to Settle Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts has reached an agreement with the Massachusetts State Police to resolve allegations that the agency failed to comply with its communications obligations for individuals who are deaf or hard of hearing, in violation of the Americans with Disabilities Act (ADA).
“Every Massachusetts resident should be able to communicate clearly with law enforcement, whether they are crime victims, witnesses or perpetrators, or seeking assistance for potential civil remedies,” said United States Attorney Rachael S. Rollins. “Our residents include people who are deaf or hard of hearing. This agreement now ensures that the Massachusetts State Police comply with federal law, protect civil rights, and more effectively advance public safety for everyone in our District.”
Following an investigation, the U.S. Attorney’s Office found that the Massachusetts State Police did not have an ADA-compliant policy or procedures for effective communication with individuals who are deaf or hard of hearing. The Massachusetts State Police was cooperative throughout the investigation and, under the terms of the agreement, will implement a policy on communicating with people who are deaf or hard of hearing, ensure appropriate auxiliary aids and services are available and display conspicuous notices of their availability. Additionally, all sworn members who interact with the public will participate in training on the ADA’s effective communication requirements and appropriate ways of serving people with disabilities.
U.S. Attorney Rollins made the announcement today. Assistant U.S. Attorney Torey B. Cummings of Rollins’ Civil Rights Unit handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Maryland Man Admits to Coordinating Covid-19, Unemployment, Insurance, and Aggravated Identity Theft SchemesRead the Press Release
Baltimore, Maryland – Idowu Raji, age 40, of Baltimore County, Maryland, pleaded guilty today to conspiracy to commit access device fraud, access device fraud, and aggravated identity theft in relation to multiple financial schemes.
The guilty plea 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; Acting Special Agent in Charge Mark Lewis of the U.S. Department of State, Diplomatic Security Service (DSS), Washington Field Office; Acting Special Agent in Charge Troy W. Springer, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and, Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division.
“Raji participated in the theft of American personal identifying information from more than 50 unsuspecting Americans and caused at least one million dollars in COVID-19 fraud for his financial benefit” said U.S. Attorney Barron. “Our Office remains dedicated to bringing justice to anyone who fraudulently obtains disaster relief funds to line their pockets and deprive American citizens in a time of need.”
“The Diplomatic Security Service is pleased with this guilty plea. These hard-fought convictions send a clear message that criminals who commit passport and visa fraud for illegal profit will be punished,” said Acting Special Agent in Charge Mark Lewis of the DSS Washington Field Office. “DSS, alongside the U.S. Attorney’s Office and our other federal partners, is committed to rooting-out and prosecuting criminal enterprises involving U.S. travel documents.”
“Idowu Raji and co-conspirators engaged in a scheme to defraud the Pandemic Unemployment Assistance program by submitting fraudulent claims using the personal identifying information of identity theft victims to obtain over $900,000 in unemployment insurance and other COVID-19 related benefit payments,” said Troy W. Springer, Acting Special Agent in Charge, Washington Region, U.S. Department of Labor - Office of Inspector General. “ Today’s conviction demonstrates the commitment of the U.S. Department of Labor - Office of Inspector General to protecting the integrity of the unemployment insurance program. We will continue to work with the U.S. Attorney’s Office and our other law enforcement partners to safeguard unemployment benefits from those who seek to exploit the program to unjustly enrich themselves.”
According to his guilty plea, in 2020, Raji conspired with other individuals to defraud, use, and traffic in unauthorized access devices and obtain more than $900,000 in unemployment insurance and other COVID-19 related benefits. Moreover, from October 2018 to November 2020, Raji conspired with multiple individuals charged in the District of Maryland to defraud multiple businesses, individuals, and financial institutions to illegally obtain more than $750,000.
In furtherance of the access device conspiracy, Raji admitted arranging for the delivery of fraudulent unemployment insurance cards to his co-conspirators, providing instructions on the use of the cards, and obtaining a portion of the fraudulently obtained proceeds. In total, Raji admitted that he was involved in fraudulent unemployment claims that used the identities of more than 50 real people and caused more than $900,000 in losses to state and the federal governments.
Raji admitted using an encrypted text messaging application to carry out his crimes, including to coordinate the use of unemployment insurance and COVID-19 related benefits, obtain and transfer the personal identifying information of real individuals, and receive unemployment debit cards that were mailed to addresses in Maryland and loaded with fraudulently obtained benefits. Raji also directed the use of the fraudulently obtained debit cards to engage in point of sale and ATM transactions. He also used the state and federal government funds intended for disaster relief for his own benefit.
As part of his wire fraud conspiracy, Raji’s co-conspirators used fake identification documents to open bank accounts, which Raji then coordinated the use of the accounts to receive fraud proceeds. For example, in November 2019, a co-conspirator opened a bank account at a financial institution using a fake passport with the alias “Chris Hobert.” In December 2019, the email account of a supervisor at a victim business was hacked, and an email was sent to the victim business that fraudulently claimed that another business had changed its payment instructions. As a result, the victim business sent a $33,200 wire to a fraudulent account opened by one of Raji’s co-conspirators. Raji worked with his co-conspirators to move the funds to another account registered under the alias “Michael Stone,” and to eventually gain access to the fraud proceeds.
Further, in July 2020, Raji fraudulently applied for a $31,200 Paycheck Protection Program loan on behalf of a business, Yours Truly LLC. Raji claimed that his business had more than $132,000 of gross revenue in the prior year when, in fact, it did not. Moreover, Raji did not spend the proceeds of the loan on employee salaries and other appropriate expenses required by the PPP loan.
As stated in his plea agreement, when Raji was arrested by federal agents in November 2020, he made multiple false statements to agents, including that he had never been involved in business email compromise schemes, wire fraud, or unemployment insurance fraud. Raji also falsely claimed that he never used Yours Truly LLC when he had received federal loans through the entity less than six months before the interview.
As part of his plea agreement, Raji will be ordered to pay at least $1.5 million in restitution.
Raji faces a maximum sentence of five years in prison for conspiracy to commit access device fraud, a maximum of ten years in prison for access device fraud, and a mandatory minimum of two years consecutive to any other sentence imposed for the aggravated identity theft conviction. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for May 20, 2022 at 10 a.m.
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 www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
United States Attorney Erek L. Barron commended the HSI, DSS, the U.S. Department of Labor-OIG, and the U.S. Postal Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, 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 www.justice.gov/usao-md.
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Maple Grove Man Sentenced to Five Years in Prison for $9.6 Million Scheme to Defraud the COVID-19 Paycheck Protection ProgramRead the Press Release
MINNEAPOLIS – A Maple Grove man has been sentenced to 60 months in prison followed by two years of supervised release for fraudulently applying for $9,619,046.46 from the U.S. Small Business Administration’s Paycheck Protection Program, out of which he fraudulently obtained and misappropriated more than $1.7 million. Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge David S. Doty sentenced the defendant.
According to court documents, Aditya Raj Sharma, 47, was the founder, CEO, and president of Crosscode Inc., a cloud-based software development company originally headquartered in Maple Grove, Minnesota. In November 2019, Sharma was removed as an officer and terminated from the company by Crosscode’s board of directors. Between May 2020 and July 2020, Sharma created three separate technology companies, Kloudgaze Inc., Neoforma LLC, and Mokume LLC.
From April 2020 through August 2020, Sharma applied for 16 loans from ten different lenders for a total of $9,619,046.46 through the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”) by submitting false and fraudulent applications under the names of his various technology companies. As part of his fraud scheme, Sharma submitted fabricated supporting records, made false statements about the number of employees he had and the amount of payroll expenses he incurred, and made false statements about the relevant corporate entities and intended use of the loan proceeds. Sharma also applied for one of his fraudulent loans in the name of his wife without her knowledge or approval.
In addition, on April 26, 2020, Sharma submitted an application in the name of “Crosscode dba Kloudgaze” seeking a $562,500 PPP loan. On the application Sharma falsely stated that “Crosscode dba Kloudgaze” was in operation on February 15, 2020, even though Sharma did not create Kloudgaze until May 2020. In addition, Sharma falsely stated that he was the 100% owner and CEO of Crosscode, that Crosscode did business under the name of Kloudgaze, and that “Crosscode dba Kloudgaze” had approximately 29 employees on its payroll even though records from the State of Minnesota show Sharma paid no wages to a single Kloudgaze employee. In support of the application, Sharma included fraudulent supporting documentation, including fabricated bank account statements.
As a result of Sharma’s fraud scheme, lenders approved three of his PPP applications and deposited $1,773,600 in PPP funds into bank accounts controlled by Sharma. Rather than using the funds for permissible business expenses, Sharma used the money to pay off unrelated legal debts, fund new business ventures, transfer approximately $14,000 to a financial account in India, and pay for home improvements, including landscaping and the installation of a $64,300 backyard pool at his residence.
On July 8, 2021, Sharma pleaded guilty to one count of wire fraud.
During the investigation, law enforcement seized approximately $674,980.76 in fraudulent proceeds held in multiple bank accounts controlled by Sharma. The seized funds will be forfeited to the United States and Sharma has been ordered to pay $1,773,600 in restitution.
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Jordan L. Sing, Quinn Hochhalter, and Craig R. Baune prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Who Had Sex with Minor Convicted of Sexual AbuseRead the Press Release
A man who had sex with a minor was convicted by a jury today after a three-day trial in federal court in Cedar Rapids.
Stephen Albert, age 50, from Tama, Iowa, was convicted of one count of sexual abuse by threat and force and one count of sexual abuse of a minor. The verdict was returned this afternoon following less than two hours of jury deliberations.
The evidence at trial showed that, beginning in the summer of 2012 and continuing through October 2016, Albert sexually assaulted a child on the Meskwaki Settlement. The sexual assaults took place in various homes on the Settlement as well as at Albert’s place of employment.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Albert remains in custody of the United States Marshal pending sentencing. Albert faces a possible maximum sentence of life imprisonment, a $500,000 fine, and a lifetime of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Emily K. Nydle and was investigated by Federal Bureau of Investigation, the Meskwaki Nation Police Department, the Tama City Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-62.
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Mallinckrodt Agrees to Pay $260M to Settle False Claims Act Lawsuit Alleging Payment of Illegal Kickbacks and Medicare Drug Rebate UnderpaymentsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that pharmaceutical company Mallinckrodt ARD LLC (previously Questcor Pharmaceuticals, Inc., “Questcor,” and collectively “Mallinckrodt”), has agreed to pay $260 million as part of a global settlement to resolve separate allegations that Mallinckrodt violated the False Claims Act by knowingly: 1) using a foundation as a conduit to pay illegal copay subsidies in violation of the Anti-Kickback Statute; and 2) underpaying Medicaid rebates due to the large price increases of its drug H.P. Acthar Gel (“Acthar”). The government filed separate complaints detailing these allegations in 2019 and 2020, respectively. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the U.S. Bankruptcy Court for the District of Delaware, which approved the settlement on March 2, 2022.
Kickback Claims
The U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a complaint alleging kickbacks involving Medicare Part D copays in August 2019. When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
In its complaint, the government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt established through a foundation in order to induce Medicare-reimbursed purchases of Acthar at its ever-increasing price. Mallinckrodt used the subsidies to counteract doctor and patient concerns about the drug’s high cost and to market the drug as “free.”
“When pharmaceutical companies manipulate Medicare Part D by covering patient copays, the whole structure of the Part D program is undermined,” said United States Attorney Jennifer Arbittier Williams. “Our Office is committed to maintain the financial integrity of taxpayer-funded programs like Medicare, and therefore we will continue to pursue fraud actions like this so that Medicare Part D and other federal healthcare programs remain viable for those who rely on the benefits.”
“The Medicare Part D Program provides vital prescription drug services to Medicare beneficiaries,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “HHS-OIG will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare Trust Fund.”
Medicaid Claims
The District of Massachusetts filed a complaint alleging fraud against the Medicaid Rebate Program in early 2020. Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The government alleges that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. According to the Complaint, Mallinckrodt and its predecessor Questcor began paying rebates for Acthar in 2013 as if Acthar was a “new drug” first marketed in 2013, rather than a drug that had been approved since 1952. Allegedly, this practice meant the companies ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar from 2013 until 2020. In particular, the government alleged that Acthar’s price had already risen to over $28,000 per vial by 2013, and therefore ignoring all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. Under the settlement agreement, Mallinckrodt admits and agrees that there is only one Acthar, that FDA approved Acthar in 1952, and that Acthar was first produced, distributed, and marketed prior to 1990.
The global settlement provides for Mallinckrodt’s payment of approximately $234.7 million to resolve the Medicaid Claims and approximately $26.3 million to resolve the Kickback claims. In October 2020, Mallinckrodt filed for bankruptcy protections and this settlement with the government has been approved for payment by the United States Bankruptcy Court for the District of Delaware.
The government’s allegations were originally alleged in cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did in these case, which are captioned: United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.); United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The whistleblowers in the E.D. Pa. qui tam will receive approximately $4.9 million from the recovery. “We sincerely thank the relators in this case. Together with their lawyers, these citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said U.S. Attorney Williams.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The settlement agreement in the Eastern District of Pennsylvania is being handled by Assistant U.S. Attorneys Colin Cherico, Paul Koob and Matthew Howatt and auditor George Niedzwicki with assistance from the U.S. Department of Health and Human Services Office of Inspector General. In 2019, under a separate agreement stemming from the same qui tam filing in the Eastern District of Pennsylvania, Mallinckrodt agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce prescriptions of Acthar from 2009 through 2013.
The claims asserted by the United States are allegations only and there has been no determination of liability.
Lucedale Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Lucedale man pled guilty to being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans.
According to court documents, Scott Randall Harris, 49, received through the mail firearms suppressors at his residence in Lucedale. The deliveries dated back to June of 2019. Agents obtained a search warrant and served it in January of 2020 at the Lucedale residence of Harris. Agents recovered multiple firearms and miscellaneous ammunition. Harris was a previously convicted felon as a result of a narcotics conviction in George County.
A federal grand jury indicted Harris on April 14, 2021. Harris is scheduled to be sentenced on June 16, 2022, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security - Homeland Security Investigations is investigating the case, with assistance from U. S. Customs and Border Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Las Vegas Man Sentenced to Prison for Attempted RobberyRead the Press Release
LAS VEGAS – A Las Vegas man who attempted to rob an armored car employee during a delivery to a bank was sentenced today to five years in prison.
Keyawn Lloyd Cook Jr. (27) pleaded guilty in May 2021 to one count of attempted interference with commerce by robbery. In addition to the prison term, U.S. District Judge Gloria M. Navarro sentenced Cook to three years of supervised release.
According to court documents, on July 16, 2019, Cook waited alongside the bank for the armored car to arrive. As an armored car employee entered the bank, Cook ran towards the employee, pointed a loaded 9mm handgun, and threatened “don’t move.” A second armored car employee pushed an audible alarm, and then Cook fled from the scene without any money.
In a separate case, Cook pleaded guilty today to participating in a scheme to defraud the Small Business Administration and a Paycheck Protection Program lender by filing fraudulent loan applications. Those fraudulent applications sought over $100,000 in loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act. He is scheduled to be sentenced for the COVID-related fraud charge on June 8, 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
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Justice Department Files Complaint to Stop Seafood Processor from Distributing Adulterated Seafood ProductsRead the Press Release
WASHINGTON — The United States filed a complaint to stop a seafood processor in Monroe, Washington, from processing and selling adulterated seafood products, the Justice Department announced today.
In a civil complaint for permanent injunction filed March 9 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Diane Zollinger, through her business, Felix Custom Smoking, violated the Federal Food, Drug and Cosmetic Act (FDCA) by distributing adulterated ready-to-eat seafood products, including fish jerky and cold- and hot-smoked salmon. According to the complaint, Zollinger sells products directly to consumers from her business and at farmers’ markets. She also provides custom processing for fisherman and other wholesalers.
The complaint, which was filed in the U.S. District Court for the Western District of Washington, alleges that FDA inspectors visited Zollinger’s facility in 2021 and found a significant infestation of flies and other filthy conditions that can create an ideal environment for the growth of harmful bacteria, such as Listeria monocytogenes (L. mono). Food contaminated with L. mono can cause symptoms such as diarrhea and vomiting in healthy adults. For vulnerable consumers — including pregnant women, the elderly and the immune-compromised — L. mono can cause more serious effects, such as stillbirths, miscarriages and death.
The complaint further alleges that FDA inspectors took multiple samples at Zollinger’s facility and confirmed the presence of L. mono in and around food preparation areas. According to the complaint, genetic testing showed the same strain of L. mono had been present in the facility since at least 2018, and a sample of seafood from one of Zollinger’s customers also showed the same strain of L. mono. FDA issued a public health alert warning against purchasing or eating Felix Custom Smoking seafood. The United States now seeks an injunction that would require Zollinger to eliminate L. mono at her facility, make sanitation improvements and comply with federal food safety regulations before processing or distributing any more seafood.
“Food processors must ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with FDA to stop the distribution of contaminated food.”
“The Western District of Washington has seen all too vividly what happens when adulterated food makes it into our food supply,” said U.S. Attorney Nick Brown for the Western District of Washington. “Whether it is E.coli in ground beef or orange juice or, as alleged in this case, dangerous bacteria in smoked salmon, we count on the FDA’s inspectors to keep us and our families safe.”
Trial Attorney Sarah Williams of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorneys Kerry Keefe and Kayla Stahman in the Western District of Washington and Assistant Chief Counsel Lauren Fash of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Justice Department Files Complaint to Stop Seafood Processor from Distributing Adulterated Seafood ProductsRead the Press Release
The United States filed a complaint to stop a seafood processor in Monroe, Washington, from processing and selling adulterated seafood products, the Justice Department announced today.
In a civil complaint for permanent injunction filed March 9 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Diane Zollinger, through her business, Felix Custom Smoking, violated the Federal Food, Drug and Cosmetic Act (FDCA) by distributing adulterated ready-to-eat seafood products, including fish jerky and cold- and hot-smoked salmon. According to the complaint, Zollinger sells products directly to consumers from her business and at farmers’ markets. She also provides custom processing for fisherman and other wholesalers.
The complaint, which was filed in the U.S. District Court for the Western District of Washington, alleges that FDA inspectors visited Zollinger’s facility in 2021 and found a significant infestation of flies and other filthy conditions that can create an ideal environment for the growth of harmful bacteria, such as Listeria monocytogenes (L. mono). Food contaminated with L. mono can cause symptoms such as diarrhea and vomiting in healthy adults. For vulnerable consumers — including pregnant women, the elderly and the immune-compromised — L. mono can cause more serious effects, such as stillbirths, miscarriages and death.
The complaint further alleges that FDA inspectors took multiple samples at Zollinger’s facility and confirmed the presence of L. mono in and around food preparation areas. According to the complaint, genetic testing showed the same strain of L. mono had been present in the facility since at least 2018, and a sample of seafood from one of Zollinger’s customers also showed the same strain of L. mono. FDA issued a public health alert warning against purchasing or eating Felix Custom Smoking seafood. The United States now seeks an injunction that would require Zollinger to eliminate L. mono at her facility, make sanitation improvements and comply with federal food safety regulations before processing or distributing any more seafood.
“Food processors must ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with FDA to stop the distribution of contaminated food.”
“The Western District of Washington has seen all too vividly what happens when adulterated food makes it into our food supply,” said U.S. Attorney Nick Brown for the Western District of Washington. “Whether it is E.coli in ground beef or orange juice or, as alleged in this case, dangerous bacteria in smoked salmon, we count on the FDA’s inspectors to keep us and our families safe.”
Trial Attorney Sarah Williams of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorneys Kerry Keefe and Kayla Stahman in the Western District of Washington and Assistant Chief Counsel Lauren Fash of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Jury Convicts White Swan Man of Four Counts of First Degree Murder, along with Carjacking, Kidnapping a Minor, and Assault with a Dangerous WeaponRead the Press Release
Spokane, Washington – On March 9, 2022, a federal jury convicted James Cloud, 37, of White Swan, Washington, on four counts of First Degree Murder. The jury also returned guilty verdicts against James Cloud for Carjacking, two counts of Brandishing a Firearm in Furtherance of a Crime of Violence, Kidnapping a Minor, Assault With a Dangerous Weapon, and three counts of Discharging a Firearm in Furtherance of a Crime of Violence. Sentencing is set for July 26, 2022, in Yakima, Washington, before United States District Judge Salvador Mendoza, Jr. James Cloud, who is an enrolled member of the Yakama Nation, faces a potential life sentence.
The jury heard and considered more than a week of testimony and evidence in Spokane before returning guilty verdicts on the day after closing arguments. The evidence showed that on June 8, 2019, James Cloud was involved in multiple murders, and that after committing the murders, he approached a residence, held a person at gunpoint, carjacked a vehicle, and fled from the crime scenes.
Another enrolled member of the Yakama Nation, Donovan Cloud, 35, of Lyle, Washington, was also charged in some of the underlying conduct. Donovan Cloud pleaded guilty on the same day the jury rendered its verdicts in James Cloud’s case. Donovan Cloud pleaded guilty to Carjacking and Brandishing a Firearm in Furtherance of a Crime of Violence. He faces a range of approximately 22-27 years in custody under the advisory federal Sentencing Guidelines, and his sentencing hearing is also set for July 26, 2022.
U.S. Attorney Vanessa R. Waldref commended the efforts of the investigators and prosecutors who worked for years to bring justice to the victims of Cloud’s crimes. “In a safe and strong Eastern Washington, there is accountability for even the worst acts of inhumanity. After years of tireless investigation, hard-fought litigation, and detailed preparation, justice has finally been served for the victims of James Cloud and Donovan Cloud. The people of the Yakama Nation can rest easier tonight knowing that James Cloud and Donovan Cloud will no longer roam their streets and endanger them. I am grateful for the dedication and perseverance of the FBI, the ATF, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol, who collaborated with Assistant United States Attorneys Tom Hanlon and Rick Burson to see these cases through to just results.”
“No community should have to live in fear of the type of heinous acts perpetrated by James Cloud and Donovan Cloud,” said Donald Voiret, Special Agent in Charge of the FBI’s Seattle field office. “I want to express my gratitude to our investigators and the prosecutors on today’s guilty verdicts. Their work on behalf of victims and survivors shows that the FBI and our partners will not stand idly by while violence plagues our streets.”
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case was prosecuted by Tom Hanlon and Rick Burson, Assistant United States Attorneys for the Eastern District of Washington.
Jury Convicts Sacramento Man for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Robert Pierre Duncan, 26, of Sacramento, guilty on Tuesday of conspiracy to engage in sex trafficking of a child, sex trafficking of a child, and escape from custody, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, between September and October 2018, Duncan recruited a 17-year-old girl to engage in prostitution in Oakland and San Francisco. He frequently drove the victim to areas known for prostitution activity where he caused her to have sex with strangers for money, which he kept. Duncan also posted online prostitution ads depicting the victim and harbored the victim at an Oakland motel so she could have sex with sex buyers. In late September 2018, Sacramento County Sheriff’s Deputies recovered the victim. However, a few weeks later, Duncan, working with his co-conspirator, Eva Christian, 25, extracted the victim from a children’s group home in the middle of the night. The next day, Duncan put the victim back to work engaging in prostitution on the streets of Oakland. After obtaining the victim from the group home, Duncan managed his pimping operation from his Sacramento apartment, using his cellphone and a location tracking application on his phone to monitor and direct the victim’s prostitution activity in Oakland.
On May 31, 2019, Duncan was arrested by FBI agents in Sacramento. Shortly after his arrest, Duncan broke out of custody and fled through Midtown Sacramento until he was finally apprehended several blocks away from the scene of his initial arrest.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, the Sacramento County Sheriff’s Office, the Woodland Police Department, and the Oakland Police Department with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Brian A. Fogerty and Sam Stefanki are prosecuting the case.
Duncan is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 6, 2022. Duncan faces a maximum statutory penalty of life in prison and a $250,000 fine. His conviction on the sex trafficking of a child count carries a mandatory minimum sentence of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 Attorneys’ 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Jefferson Davis County Man Pleads Guilty to Illegal Possession of Firearms While Under Domestic Violence Protection OrderRead the Press Release
Hattiesburg, Miss. – A Jefferson Davis County man pled guilty to illegally possessing firearms while under a domestic violence protection order, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Victor Joseph Schexnayder, 49, pled guilty in U.S. District Court in Hattiesburg.
According to court records, on September 8, 2021, a firework was placed inside of an AT&T Digital Transmission Site, blowing up a hub of Digital Subscriber Lines internet and phone connectivity in Jefferson Davis County. A subsequent investigation led agents to a search of Victor Joseph Schexnayder’s residence where they discovered multiple firearms. At the time, Schexnayder was the subject of a domestic violence protection order, issued in the Chancery Court of Harrison County, which prohibited him from possessing firearms. Overall, seventeen firearms were collected during the course of the investigation.
Schexnayder will be sentenced on June 23, 2022, and faces a maximum penalty of 10 years in prison. A federal district judge will determine the sentence after considering the U.S. sentencing guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrew Eichner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jamaican Citizen Pleads Guilty to Passport FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Caswell Richards, 55, of Jamaica, pleaded guilty to the use of a U.S. passport secured by a false statement before U.S. District Judge John L. Sinatra, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated in December 2020, Richards used another individual’s name and birth certificate to apply for and secure a United States passport. On that application, Richards also indicated that there were no other names he had used in the past and affirmed to a Passport Acceptance Agent that all the information provided was true and correct. On November 25, 2021, Richards sought entry to the United States at the Peace Bridge Port of Entry using the fraudulent passport.
The plea is the result of an investigation by the Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, and U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for July 5, 2022, at 2:00 p.m. before Judge Sinatra.
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Jackson Man Sentenced to 10 Years in Prison for Discharging a Firearm During a Crime of ViolenceRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to ten years in federal prison for discharging a firearm during a crime of violence, announced U.S. Attorney Darren J. LaMarca and Inspector in Charge Scott Fix of the U.S. Postal Inspection Service.
According to court documents, Marco Darby, 26, was indicted for discharging a firearm during the assault and robbery of a United States Postal Service mail carrier in Jackson on June 2, 2021.
Darby pled guilty on December 9, 2021.
The United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Jackson Man Pleads Guilty to Escape from Federal CustodyRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to escape from federal custody, announced U.S. Attorney Darren J. LaMarca.
According to court documents, Henry Steverson, 51, was indicted for failing to report to a halfway house in Jackson as a condition of his pending release from federal custody with the Bureau of Prisons. His failure to report resulted in his classification as an escapee from federal custody.
Steverson is scheduled to be sentenced on June 8, 2022, and faces a sentence of not less than five years in prison. A federal district judge will determine the sentence after considering the U.S. sentencing Guidelines and other statutory factors.
The United States Marshal’s Service investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Inmate Sentenced for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 7, 2022, Dahveed Dean, age 45, an inmate at United States Penitentiary Canaan (USP Canaan), was sentenced to 18 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion for assaulting a federal employee.
According to United States Attorney John C. Gurganus, Dean punched a corrections officer in the face during an altercation at the prison in July of 2016. The 18-month sentence will run consecutive to Dean’s current federal sentence of 25 years for robbery and firearms charges.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan, and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
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Inmate Charged with Possessing WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 7, 2022, Nelson Ferry, age 32, an inmate at FCI Schuylkill, Pennsylvania, was charged in a criminal information with possession of a weapon.
According to United States Attorney John C. Gurganus, the information alleges that on December 1, 2021, Ferry possessed a sharpened metal object intended to be used as a weapon, commonly known as a “shank.”
The case was investigated by the Federal Bureau of investigation and the Bureau of Prisons. Assistant U.S. Attorney Sean Camoni is prosecuting the case.
The maximum penalty under federal law for this offense 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Indictment Unsealed Charging Los Angeles Man with Assaulting and Interfering with a Flight Attendant and Federal Air Marshal Onboard Delta FlightRead the Press Release
OKLAHOMA CITY – A federal grand jury indictment was unsealed yesterday charging JAMES ARIEL PENNINGTON, 45, of Los Angeles, California, on charges of interference with a flight attendant and assault on a federal officer with physical contact, announced United States Attorney Robert J. Troester.
On January 18, 2022, a federal grand jury sitting in Oklahoma City returned the Indictment. It alleges that on December 9, 2021, Pennington was onboard Delta Airlines flight 342, traveling from Arlington, Virginia, to Los Angeles, California. During that flight, Pennington knowingly assaulted and intimidated a flight attendant of the aircraft, thereby interfering with the flight attendant and lessening the ability of the flight attendant to perform his duties. The Indictment further alleges that Pennington assaulted a Federal Air Marshal while the Federal Air Marshal was engaged in his official duties, causing physical contact with the Federal Air Marshal. The flight was diverted to Will Rogers World Airport in Oklahoma City, where Oklahoma City Police Department Officers escorted Pennington from the aircraft.
The indictment was sealed until Pennington was located, taken into custody, and appeared in federal court in California.
If found guilty, Pennington faces a maximum potential penalty on each count of twenty years in prison, three years of supervised release, and a fine of $250,000.
This case is the result of an investigation by the FBI’s Oklahoma City Field Office and the Oklahoma City Police Department. Assistant U.S. Attorneys Ashley L. Altshuler and Lori Hines are prosecuting the case.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to the attached indictment and public records for more information.
Indictment Charges Two Individuals, Including One Who Posed as a Lawyer, with Wire and Mail Fraud Conspiracy in Connection with Alleged Fraudulent Debt Elimination SchemeRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Willie Lamont Hicks, age 50, of Rockville, Maryland, and Mary Ann Mendoza, age 49, of Kensington, Maryland, on federal charges of conspiracy to commit wire and wire fraud. The indictment was returned on December 22, 2021 and unsealed upon the defendants’ arrests.
Hicks is scheduled to have an initial appearance in U.S. District Court in Greenbelt today at 12:00 p.m. before U.S. Magistrate Judge Charles B. Day. Mendoza was arrested in Rockville, Maryland and had her initial appearance in U.S. District Court in Maryland on January 12, 2022. U.S. Magistrate Judge Timothy J. Sullivan ordered that Mendoza be released under the supervision of U.S. Pretrial Services pending trial. Law enforcement arrested Hicks on January 14, 2022, in Plano, Texas. He was subsequently transported to Maryland for today’s initial appearance.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Mark Higgins of the Mid-Atlantic Region- Federal Housing Finance Agency- Office of Inspector General; Sally Luttrell, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; Montgomery County State’s Attorney John McCarthy; and Chief Marcus Jones of the Montgomery County Police Department.
According to the four-count indictment, from October 2010 to September 2018, Hicks and Mendoza, who claimed to be husband and wife, held in-person trainings purporting to educate victim-debtors on how to discharge consumer debt, including mortgage debt, credit card debt, and automobile financing debt. In connection with the debt elimination classes, Hicks allegedly stated that he was a lawyer and received education and training that he had not received.
During the debt elimination classes, Hicks and Mendoza allegedly told victims that on the back of their social security cards and birth certificates, there was a special bank account number with funds owed to the victims by the U.S. government. The defendants also allegedly informed the victim-debtors that they could create “trusts” into which they could transfer their assets without transferring any attendant consumer debt.
Specifically, the indictment alleges that through several interstate wire transfers in 2018, Mendoza and Hicks caused one victim to transfer more than $100,000 from the victim’s bank account to a fraudulent corporate entity controlled by the defendants.
As stated in the indictment, the defendants and their co-conspirators offered to effectuate the discharge of the debt held by the victims for a fee equal to a percentage of the victim-debtors’ outstanding debt or asset purchase price through fraudulent corporate entities. Allegedly, the defendants accepted payment in the form of cash, wire transfers, personal and cashier’s checks, and the use of the victim-debtors’ credit.
The indictment further alleges that Hicks, Mendoza, and their co-conspirators used the victims’ personal identifying information without the knowledge or permission of the victims and provided participating victims with paperwork including trust documents, non-disclosure agreements, Internal Revenue Service form documents, and other materials that the defendants claimed were necessary for discharging debt.
The indictment continues to allege that Hicks, Mendoza, and their co-conspirators mailed paperwork to the victim-debtors’ creditors, lenders, and the Internal Revenue Service paperwork purporting to effectuate the discharge of the victim’s debts.
The defendants face a sentence of 20 years in prison for conspiracy to commit wire fraud and 20 years in federal prison for wire fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the Mid-Atlantic and Central Regions of the Federal Housing Finance Agency- Office of Inspector General; U.S. Department of the Treasury - Office of Inspector General; the United States Marshal Service of Texas, the Hinesville Police Department of Hinesville, Georgia, Queen Anne’s County Office of the Sheriff- Centreville, Maryland, and the United States Attorney’s Offices of Western District of North Carolina, Northern District of Georgia, Eastern District of Texas, and the Eastern District of Pennsylvania for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Dana J. Brusca, who is prosecuting the case.
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Howell Township Man Admits Subscribing to False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man who ran an illegal gambling business today admitted filing a false tax return, U.S. Attorney Philip R. Sellinger announced.
Steven Bryce, 52, of Howell Township, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count Five of an indictment charging him with subscribing to a false tax return.
According to documents filed in this case and statements made in court:
In 2013, Bryce operated an illegal gambling business. On July 14, 2014, Bryce filed with the IRS U.S. Individual Income Tax Return, Form 1040, for the calendar year 2013 on behalf of himself and his spouse, which falsely stated that they had total income of $112,899. The 2013 Tax Return was not true and correct: Bryce received significant income from his gambling business, and, as a result, had income substantially in excess of the amount he reported. As part of his plea agreement, Bryce agreed to pay full restitution of $338,885 to the IRS for tax losses resulting from false tax returns filed by Bryce for calendar years 2011 to 2016.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. Sentencing is scheduled for July 11, 2022.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and J Fortier Imbert of the Special Prosecutions Division in Newark.
Houstonians sent to prison for illegal firearms purchasesRead the Press Release
HOUSTON – Four individuals have been sentenced for illegally purchasing weapons for others aka straw purchasing, announced U.S. Attorney Jennifer B. Lowery.
Maribel Santana-Cerano, 45, Ariceli Santana, 47, Carlos Joel Hernandez, 26, and Johnny Talavera, 28, all of Houston, pleaded guilty in 2021.
Today, U.S. District Judge Lynn N. Hughes imposed the statutory maximum 120-month term of imprisonment for Santana-Cerano. Santana and Talavera received sentences of 12 months and a day, while Hernandez was ordered to serve six months. In imposing the sentence for Santana-Cerano, the court noted her role in the scheme, the number of firearms attributed to her and her knowledge of the trafficking scheme among other factors that warranted her maximum sentence. In handing down the prison terms, Judge Hughes noted the impact these firearms would have on American and Mexican lives.
The investigation began July 31, 2018. At that time, Santana-Cerano was a passenger on a bus headed to Mexico. Authorities conducted an X-ray inspection which revealed 34 pistols and 31 magazines inside black luggage. Santana-Cerano denied the luggage was hers but displayed suspicious behavior.
Upon further investigation, law enforcement was able to trace firearms purchases from various federally-licensed firearms dealers to Santana-Cerano, Santana, Hernandez and Talavera. Authorities also retrieved falsely represented ATF 4473 forms that each had completed. The documents claimed they were the purchasers of the firearms when, in fact, they were not.
Upon her to return to the United States and arrest, Santana-Cerano admitted to straw purchasing firearms for an individual residing in Mexico. She would then store and accumulate the firearms at her residence before their transport into Mexico. She also reported that her sister, Santana, purchased more firearms for her. Santana stated each individual was given money and directed to purchase specific firearms.
The group was ultimately held responsible for the illegal purchase of 82 firearms that were destined for Mexico.
Straw purchasing occurs when someone professes to be purchasing a firearm for themselves, when in actuality, they provide it to someone else, usually not legally able to do it themselves.
Santana-Cerano was taken into custody at the conclusion of her sentencing hearing, while the others were permitted to remain on bond pending dates to surrender in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Houston Men Indicted for Stealing Beaumont MailRead the Press Release
BEAUMONT, Texas – Two Houston men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Dontae Dewey McGee, 22, and Tyrin Terelle Robinson, 21, were named in an indictment returned by a federal grand jury on March 2, 2022, charging them with theft of mail, possession of stolen mail, and aiding and abetting. McGee and Robinson made initial appearances today before U.S. Magistrate Judge Zack Hawthorn.
If convicted, McGee and Robinson face up to five years in federal prison.
This case is being investigated by the U.S. Postal Inspection Service and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Jonathan Lee.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Heroin Dealer Pleads Guilty and is Sentenced to Four Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Panagoltis Skordalos, age 43, of Baltimore, Maryland to four years in federal prison, followed by four years of supervised release, after Skordalos pleaded guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
According to his guilty plea, from September 2020 to November 2020, Skordalos participated in a Baltimore, Maryland drug trafficking organization (DTO) that distributed large quantities of controlled substances, including heroin. Skordalos joined the DTO less than three weeks after his release from state prison.
In September 2020, federal agents assigned to the Organized Crime and Drug Enforcement Task Force (OCDETF) Strike Force began intercepting electronic and wire communications between Skordalos and the DTO’s leader. The intercepted communications revealed that Skordalos was a mid-level heroin distributor and that the DTO leader was Skordalos’s heroin supplier.
For example, on October 16, 2020, investigators intercepted a series of communications between Skordalos and the DTO leader in which Skordalos arranged to purchase 20 grams of heroin for $1,400. On the same day, agents observed Skordalos conduct a heroin transaction with the DTO leader at a Baltimore transitional home where Skordalos was living after his release from incarceration.
As stated in Skordalos’s plea agreement, on November 16, 2020, law enforcement executed a search warrant at the DTO leader’s Baltimore, Maryland stash apartment. As a result of the executed search warrant, law enforcement recovered, among other things, digital scales, blenders, hydraulic presses, packaging materials, and approximately 218 grams of a mixture containing multiple controlled substances, including heroin.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the FBI, DEA, and the USPIS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Hartford Man Sentenced to 33 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that JOSE PEREZ, 40, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release. On September 24, 2021, a jury found Perez guilty of unlawful possession of a firearm by a felon.
According to the evidence and testimony at trial, on November 13, 2016, Hartford Police detectives responding to a ShotSpotter activation recovered a loaded revolver in a car last registered to Perez and containing documents addressed to Perez in the glove box. DNA analysis of the seized firearm indicated Perez had handled the firearm.
Prior to November 2016, Perez had sustained state felony convictions for narcotics and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Perez was apprehended on January 19, 2021.
Perez, who was released on bond, was remanded to custody at the conclusion of today’s court proceeding.
This matter was investigated by the Hartford Police Department and the FBI’s Connecticut Violent Crime Task Force, with the assistance of the Connecticut Forensic Science Laboratory. This case was prosecuted by Assistant U.S. Attorneys Tara E. Levens and Maria del Pilar Gonzalez.
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.
Greece Man Going to Prison for 22 Years for Enticing A Minor to Engage in Sexual ActivityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Joseph McGrain, 50, of Greece, NY, who was convicted of enticement of a minor to engage in sexual activity, attempted obstruction of justice, and obstruction of justice, was sentenced to serve 264 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that on March 27, 2020, the Greece Police Department learned that McGrain had been having a sexual relationship with a 16-year-old girl (Minor Victim) for one and a half years. On April 1, 2020, investigators observed Facebook chat conversations between McGrain and the Minor Victim on her cell phone. Among the messages, McGrain stated, “I miss our nights.” Another message stated, “your right it’s wrong and it will end...thank you for that magic for the past year.” On April 5, 2020, McGrain threatened the Minor Victim by stating “If you really want it to end then tell them (law enforcement) you set it all up and lied.”
McGrain and the Minor Victim had sexual relations almost daily between October 2018, when she was 14 years old, until March 26, 2020.
The sentencing is the result of an investigation by the Greece Police Department, under the direction of Chief Michael Wood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Grand jury indicts Wilmington man allegedly involved in shoot-out with illegally possessing ammunitionRead the Press Release
CINCINNATI – A federal grand jury has charged a previously convicted felon with possessing ammunition during a shoot-out with another man.
Charles Stacey Brooks, 40, of Wilmington, Ohio, was allegedly in an active shoot-out in a residential neighborhood in January 2022. It is alleged that Brooks illegally possessed ammunition at the time of the incident.
According to pending local charges, on Jan. 12, 2022, Brooks and Christian Burton, 21, also of Wilmington, shot at each other while in a residential neighborhood of Wilmington. A 911 caller allegedly reported hearing at least three shots on South Walnut St. The caller said that one of the shots struck the outside of a car occupied by a man driving with his child.
Brooks has previously been convicted of felony crimes including robbery and aggravated drug trafficking. He was on parole at the time of the shooting.
Possessing a firearm or ammunition as a previously convicted felon is a federal crime punishable by up to 10 years in prison.
Burton has also been indicted by a federal grand jury. He was charged federally on Feb. 23 with seven counts of narcotics crimes, including distributing fentanyl and methamphetamine and possessing with the intent to distribute methamphetamine. If convicted, Burton faces a potential minimum of five years up to 40 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Wilmington Police Chief Ron Cravens; Warrren County Sheriff Larry L. Sims and other members of the Warren County Drug Task Force; and Clinton County Prosecutor Andrew T. McCoy announced the charges. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
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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.
Polk County Woman Charged with Fraud Scheme
Sarah Anne Tischer, 42, Amery, Wisconsin, is charged with 5 counts of wire fraud in connection with her alleged misuse of an individual’s special needs trust for which she had been designated the trustee. The indictment alleges that the wire fraud was committed from October 2017 to September 2019. The indictment alleges that Tischer fraudulently obtained funds from the trust by claiming the funds were needed for home repairs that had been previously reimbursed by an insurance company, and that Tischer spent these funds on personal expenses and at a casino. The indictment also alleges that Tischer used funds from the trust to purchase property that she claimed was for recreational purposes, but records from Tischer’s insurance company show that Tischer planned to use the house for rental purposes. In addition, the indictment alleges that Tischer withdrew cash from the trust’s checking account and spent the funds at a casino.
If convicted, Tischer faces a maximum penalty of 20 years in federal prison on each count. The charges against her are the result of an investigation by the Federal Bureau of Investigation, with the assistance of the Polk County Sheriff’s Office and the Polk County Human Services Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Sylvester Ray Gavins, Jr., 31, Madison, Wisconsin, is charged with possessing with the intent to distribute cocaine and heroin, with possessing a loaded firearm in furtherance of a drug trafficking crime, and with being a felon in possession of a firearm and ammunition. The indictment alleges that on March 26, 2021, he possessed cocaine and heroin for distribution and a loaded .40 caliber firearm and .40 caliber ammunition.
If convicted, Gavins faces a maximum penalty of 20 years in federal prison on each of the possession with intent to distribute charges, and 10 years on the charge of being a felon in possession of a firearm. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years in federal prison, which federal law requires to be served consecutive to any other prison term imposed.
The charges against Gavins are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Three Marathon County Residents Charged with Drug Crimes
In related matters but in two separate indictments, three Marathon County residents have been charged with methamphetamine trafficking. Victor Pennington, 26, and Lucas Ellwart, 28, both of Wausau, Wisconsin, are charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of methamphetamine. The indictment alleges that the conspiracy operated from June through September 2021.
The indictment also charges them with distributing 50 grams or more of methamphetamine on June 24, 2021 and July 14, 2021, and with possessing 500 grams or more of methamphetamine for distribution on September 14, 2021. In addition, Pennington is charged with distributing 50 grams or more of methamphetamine on August 2, 2021.
Sarah Waggoner, 41, Norrie, Wisconsin, is charged with 3 counts of distributing methamphetamine and 1 count of possessing with intent to distribute 500 grams or more of methamphetamine. The indictment alleges that Waggoner distributed methamphetamine on April 9, May 10, and August 12, 2021, and that the May 10 distribution involved 50 grams or more of the drug. The indictment alleges that she possessed 500 grams or more of methamphetamine for distribution on September 2, 2021.
If convicted, Pennington, Ellwart and Waggoner face a mandatory minimum penalty of 10 years and a maximum of life in federal prison on the counts alleging 500 grams or more of methamphetamine, and a mandatory minimum of 5 years and a maximum of 40 years on the counts alleging 50 grams or more of methamphetamine. Waggoner faces a maximum of 20 years on the other two distribution counts. The charges against them are the result of an investigation by the Central Wisconsin Narcotics Task Force, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
Kansas Man Charged with Possessing Methamphetamine for Distribution
Jimmy Castillo, 22, Topeka, Kansas, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. The indictment alleges that he possessed the methamphetamine on February 19, 2022.
If convicted, Castillo faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Two Dane County Men Charged with Being Felons in Possession of Firearms
Alexander Jefferson-Cooper, 28, and Zendel Rolack, 26, both of Oregon, Wisconsin, are charged with being felons in possession of firearms. The indictment alleges that on September 7, 2021 through October 5, 2021, Jefferson-Cooper possessed a Walther handgun. It further alleges that on October 5, 2021, Rolack possessed a Smith and Wesson revolver, a Cobra handgun, and a Walther handgun.
If convicted, Jefferson-Cooper and Rolack each face a maximum penalty of 10 years in federal prison. The charges against them are the result of an investigation by the Fitchburg Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
DeForest Man Charged with Gun Crime
Raymond Poore, 29, DeForest, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that he possessed a loaded 9mm handgun and 9mm ammunition on November 18, 2021.
If convicted, Poore faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison and Monona Police Departments, Dane County Sheriff’s Office, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Milwaukee Man Charged with Gun Crime
Brian D. Mitchell, 32, Milwaukee, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a Glock 48 handgun and 9mm ammunition on December 22, 2021.
If convicted, Mitchell faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Wisconsin State Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Grand Junction Man Sentenced for Distributing Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Christopher Huggett, age 30, of Grand Junction, was sentenced to 14 years in federal prison for the distribution of fentanyl resulting in death. After his term of incarceration, Huggett will serve 3 years of supervised release.
According to the plea agreement, in 2017, Huggett began selling counterfeit pills that appeared to be Oxycodone but actually contained fentanyl. Huggett obtained the pills from and sold them in conjunction with his source, Bruce Holder. Despite learning from Holder that several people had overdosed and that some had died after using these pills, Huggett continued distributing the pills throughout Western Colorado.
On December 26, 2017, Huggett sold several pills to Zacharia Green. Green then sold some of those pills to the victim, identified as J.E. in the plea agreement. On or around December 28, 2017, J.E. used a portion of one of the pills distributed by Huggett and Holder, lost consciousness, and died. That same day, Green also used a portion of one of the pills, lost consciousness, and stopped breathing. A co-worker, however, discovered Green and called emergency medical personnel. Responders administered naloxone, saving his life.
Less than two months after his friend had overdosed and another person had died, Huggett accompanied Holder to Mexico to obtain and import additional fentanyl pills. While in Mexico, Huggett saw Holder give the person supplying the pills a large wad of cash. Later, they returned to Grand Junction with several thousand fentanyl pills concealed in the dash of Holder’s vehicle.
After Huggett was arrested and detained in this matter, he solicited the murder of a witness. In what Huggett has claimed was false bravado, he offered two inmates $5,000 and a vehicle to arrange for Green’s death. Huggett also provided one of these inmates with information on where Green could be located. After investigating this matter, agents confronted Huggett about his actions. Huggett acknowledged that he had asked inmates to have Green murdered but claimed that he did not actually intend for that to occur. Huggett stated that he was presenting a front to keep up appearances in the jail and spoke only with inmates that he believed had no possibility of release.
“Fentanyl is deadly and it’s pervasive. Dealers distributing fentanyl have our full attention,” said United States Attorney Cole Finegan. “I urge Coloradans to be on guard. Fentanyl is being disguised in many different drugs – and it can kill you. Please do not take a drug unless you get it from a pharmacist.”
“DEA applauds the Court’s sentence in this case because it lets criminals know that if they play recklessly with people’s lives by peddling deadly poison within our communities, they will be held accountable to the full-measure of the law,” said DEA Denver Special Agent in Charge Brian Besser. “I especially want to thank our agents in the Grand Junction Resident Office who, alongside their counterparts in FBI, the Western Colorado Drug Task Force and the Two Rivers Drug Enforcement Team, performed an outstanding investigation that ultimately ensured justice was served for the victims and their families in this case.”
“Today’s sentence is a direct result of the dedicated work of the FBI and our federal, state, and local partners to combat criminal organizations that distribute fentanyl and other dangerous substances with no regard for the devastation it has on our communities,” said FBI Denver Special Agent in Charge Michael H. Schneider. “The FBI will continue to investigate individuals and groups who attempt to further the scourge of drugs and violence in the areas we serve. The FBI thanks our partners, including DEA, Western Colorado Drug Task Force, the Two Rivers Drug Enforcement Team, and the U.S. Attorney's Office for their diligence and collaboration.”
United States District Court Judge Christine M. Arguello sentenced Huggett on March 9, 2022.
On April 19, 2021, Bruce Holder was convicted of distributing fentanyl resulting in death, among other crimes, after an 11-day jury trial in criminal case number 18-cr-00381. Holder is scheduled for sentencing on May 4, 2022. For his role in J.E.’s death, Zacharia Green was sentenced to two years in federal prison in criminal case number 19-cr-00459.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Western Colorado Drug Task Force, and the Two Rivers Drug Enforcement Team conducted the investigation in this matter. Assistant United States Attorney Jeremy Chaffin and Special Assistant United States Attorney Jaime Pena handled the prosecution.
Case number 18-cr-334
Fort Smith Woman Sentenced to over 15 Years in Federal Prison for Drug TraffickingRead the Press Release
FORT SMITH – A Fort Smith woman was sentenced today to 188 months in prison followed by four years of supervised release on one count of Possession with the Intent to Distribute Methamphetamine. The Honorable Judge P.K. Holmes, III, presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court documents, On September 1, 2021, members of the United States Marshals Service (USMS) Fugitive Task Force had information that Cynia Lea Morgan, age 48, was harboring a state fugitive, and that Morgan was at a motel in Fort Smith, Arkansas.
The USMS Fugitive Task Force had information that Morgan had an outstanding warrant, had reason to believe that Morgan may be in possession of controlled substances, and requested the assistance of the Fort Smith Police Department (FSPD) and the Drug Enforcement Administration (DEA).
The USMS Fugitive Task Force made contact with Morgan who was sitting in the driver’s seat of her vehicle in the parking lot of the motel, had her exit the vehicle, and detained her. A male passenger sitting in the front passenger seat was also removed from the vehicle and detained.
A FSPD K-9 officer arrived at the location and assisted with a K-9 search on the vehicle. After receiving a positive alert, a search of the vehicle was conducted. The search resulted in officers locating a purse belonging to Morgan. Inside the purse officers located, a golf ball sized bag of an off-white powder substance suspected to be fentanyl, a baggie of pills suspected to be fentanyl, a golf ball sized bag of suspected black tar heroin, suspected marijuana, a clutch containing $7,251 in United States currency and Morgan’s driver’s license, three cellular phones, and a safe key. Officers also located a safe in the vehicle. Inside the safe officers located multiple baggies containing suspected methamphetamine, two small baggies of unmarked pills suspected to be fentanyl, a prescription bottle containing assorted pills, a pill press, syringes, and other drug paraphernalia.
While conducting their search, the K-9 officer became unconscious and was experiencing symptoms of fentanyl overdose due to exposure to the fentanyl found in Morgan’s vehicle. The K-9 officer was administered naloxone by fellow officers on scene and received treatment from a Deputy U.S. Marshal who was a member of the fugitive task force and an Operational Medical Support Unit Medic. Their efforts stabilized the K-9 officer until an ambulance and EMTs arrived and transported them to the hospital, where they made a full recovery.
The suspected methamphetamine field-tested positive for methamphetamine and had a gross weight of 129.8 grams. The suspected fentanyl and heroin were not weighed, or field tested. Instead, they were packaged safely to be tested by the DEA Laboratory in a controlled environment along with the methamphetamine
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The United States Marshals Services Fugitive Task Force, Fort Smith Police Department and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Aaron Jennen prosecuted the case.
Fort Hall Man Sentenced to Nearly 4 Years for Assault with a MacheteRead the Press Release
POCATELLO – A Fort Hall man was sentenced to 40 months in federal prison for assault with a dangerous weapon.
According to court records, on October 18, 2019, Fort Hall police officers received a call about a disturbance at a residence on the Fort Hall Indian Reservation. Officers responded to the residence and found a witness who said a person had been struck on the head with a machete. The witness saw Malik Ish, 20, of Fort Hall, strike the victim on the head with the machete. The victim was later located at the hospital where he was treated for a skull fracture. Police obtained a search warrant for the residence and located the machete in a bathtub, along with other evidence. Ish was interviewed and admitted that he was angry at the victim and went to the residence to find the victim, intending to hurt him. He stated that he struck the victim over the head with the blunt side of the machete blade.
The 40-month sentence imposed by Chief U.S. District Judge David C. Nye was in addition to the six months that Ish had already served in the tribal jail based upon the same conduct, resulting in a total of 46 months incarceration. Judge Nye also ordered Ish to serve three years of supervised release following his prison sentence. Ish pleaded guilty to the charge on December 7, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Federal Bureau of Investigation and the Fort Hall Police Department, which led to charges.
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Former Westlake Investment Advisor Convicted of Stealing More Than $9.3 Million from Clients in Ponzi SchemeRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts today against Defendant Raymond A. Erker, 50, of Avon, Ohio, following a seven-day trial before U.S. District Judge Dan Polster in Cleveland. Erker, a former investment advisor, was convicted of stealing more than $9.3 million from clients in a Ponzi scheme.
Also charged in this matter were co-defendants Kevin Krantz, 56, and Tara M. Brunst, 47, both of Olmsted Falls. Both Krantz and Brunst previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
According to court documents and evidence presented at trial, from January 2013 through July 2018, Erker, Krantz and Brunst conspired together to devise a scheme that stole $9,366,976.37 from at least 54 investors. As part of the scheme, Erker sold investments to clients that he misrepresented as annuities and senior secured notes with no risk of loss and with a guaranteed rate of return.
Court documents also state that Erker and the co-conspirators, without the approval or consent of investors, diverted funds to other entities that they controlled and their personal bank accounts. Additionally, Erker failed to disclose to clients that he maintained substantial or limited ownership interests in companies receiving investments from the scheme. To keep up with promised rates of return, Erker falsely represented that payments to previous investors were rates of return and interest when the payments were actually new investor funds, the defining characteristic of a Ponzi scheme.
To avoid detection, Erker and his co-defendants set up office fronts in Delaware and Nevada, contracted with call centers and created false websites and account statements that purported to show investor account balances.
Erker was also convicted of making a false statement under oath. On October 9, 2019, while under oath in the United States Bankruptcy Court for the Northern District of Ohio, Erker stated that he disclosed to investors that he owned the companies the investors gave him money to invest in, when in fact, Erker knew that statement to be false.
Erker is scheduled to be sentenced on July 7, 2022.
This investigation was conducted by the Ohio Department of Commerce Division of Securities, the United States Postal Inspection Service and the Westlake Police Department. This case is being prosecuted by Assistant U.S. Attorney Brian McDonough and Kathryn Andrachik.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Former Tallahassee Federal Correctional Officer Sentenced to Forty-Eight Months in Federal Prison for Sexual Abuse of InmateRead the Press Release
TALLAHASSEE, FLORIDA –Jimmy Lee Highsmith, 42, of Marianna, was sentenced to forty-eight months in federal prison following his conviction on one count of sexual abuse of a ward while on duty at the Federal Correctional Institution in Tallahassee. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentenced.
Highsmith was convicted by a federal jury in December 2021. Evidence introduced at trial revealed that Highsmith abused his authority as a correctional officer to engage in sexual acts with an inmate on various occasions. The jury received testimony and exhibits showing that between March and April 2014, Highsmith ordered a female inmate at Federal Correctional Institution Tallahassee to meet him in his office and the officers’ bathroom to engage in illicit sexual acts. Surveillance video footage confirmed that, on April 30, 2014, Highsmith and his victim were caught by other inmates engaging in sexual acts between 11:30 p.m. and midnight in his office. The victim disclosed the illicit sex acts the next day and was taken to Tallahassee Memorial Hospital where a sexual assault examination confirmed injuries resulting from sexual activity.
“The sexual abuse of inmates by federal correctional officers is intolerable,” said U.S. Attorney Coody. “Those sentenced to prison are to atone for their crimes and gain skills that will enable them to return as productive members of society. They should not be preyed upon by officers who violate their oath of office. This office will vigorously investigate and prosecute any officer who engages in such acts of abuse to the fullest extent of the law.”
“Abuse of inmates of any kind is unacceptable, and Highsmith will rightly serve time for sexually abusing an inmate under his supervision. The Department of Justice Office of the Inspector General will continue to bring to justice anyone who engages in this type of conduct,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
Highsmith’s prison sentence will be followed by 5 years of supervised release. He will also be required to register as a sex offender and will be subject to sex offender conditions.
This conviction was the result of an investigation by the Department of Justice Office of Inspector General. Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Post Office Manager and Two Illinois Men Federally Charged for Conspiracy Involving Theft of $1.7 Million in Checks from the MailRead the Press Release
INDIANAPOLIS – James Lancaster, 40, of Indianapolis, the former manager of customer service at Indianapolis’ New Augusta Post Office, has been charged in federal court with conspiracy to commit bank fraud and theft of mail. The charges against Lancaster were unsealed late yesterday. On March 1, 2022, a federal grand jury in the Southern District of Indiana returned an indictment charging Lavaris Yarbrough, 26, of Calumet City, Illinois, and Jordan McPhearson, 30, of Blue Island, Illinois, with bank fraud and conspiring with Lancaster to commit bank fraud.
According to court documents, between May 11, 2020, and June 23, 2021, Lancaster used his position at the Post Office to steal checks from the mail. Lancaster gave the stolen checks to McPhearson, sometimes receiving cash in exchange. McPhearson fraudulently negotiate the stolen checks, depositing them into an account belonging to someone other than the intended payee. Occasionally, McPhearson provide stolen checks to Yarbrough who fraudulently negotiate them.
Throughout the course of the conspiracy, Lancaster stole more than 270 pieces of U.S. mail from the New August Post Office. This mail contained checks from more than 50 different local businesses. In total, the value of the stolen checks was around $1.7 million.
If convicted, Lancaster, Yarbrough and McPhearson each face up to 30 years in federal prison for conspiracy to commit bank fraud. Lancaster also faces up to 5 years in prison for theft of mail. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Public service is a public trust, and Government officials who violate that trust to defraud and steal from the public—and those who conspire with them—must be held accountable.” said U.S. Attorney Zachary A. Myers. “Our office will continue to work closely with the Postal Service and Postal Inspection Service to investigate and prosecute mail theft schemes.”
Special Agent-in-Charge Andre Martin, Central Area Field Office, U.S. Postal Service Office of Inspector General said, “Today’s charges represent our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. Mail. The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with the U.S. Attorney's Office, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
The U.S. Postal Service – Office of Inspector General is investigating the case. The U.S. Postal Inspection Service also provided valuable assistance.
An indictment or information are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Hattiesburg Resident Sentenced to 13 Months in Prison for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
Hattiesburg, Miss. – A former Hattiesburg resident was sentenced to 13 months in prison for possession with intent to distribute a controlled substance, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court records, in 2017, ATF agents learned that Donston Lamar Noel, 41, was selling narcotics and firearms in the Hattiesburg area. Agents conducted a sting operation netting several grams of cocaine and methamphetamine from Noel on July 27, 2017. Again, on September 7, 2017, agents obtained sold several dosage units of oxycodone and hydrocodone as well as a Palmetto State Armory PA-15, 5.56 mm caliber pistol from Noel.
Noel pleaded guilty on December 2, 2021, to possession with intent to distribute a controlled substance.
The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case.
Assistant U.S. Attorney Stan Harris prosecuted the case.
The case was prosecuted as part of the federal, state, and local Project Safe Neighborhoods (PSN) Program. The centerpiece of the Department of Justice’s crime reduction efforts, PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Jury Convicts Claiborne County Man of Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On March 7, 2022, following a two-day trial, a jury convicted Alexander Dewayne Noah, 25, of Tazewell, Tennessee, of possession of child pornography in violation of Title 18, United States Code, Section 2252A(a)(5)(B).
Sentencing is scheduled for July 14, 2022, before the Honorable Thomas A. Varlan, United States District Judge. Noah faces a term of imprisonment of up to 20 years, a term of supervised release of up to life, and he will also be required to register as a sex offender anywhere that he resides, works, or attends school.
According to the evidence presented at trial, the investigation began when the Department of Homeland Security, Homeland Security Investigations (HSI) received a tip from the National Center for Missing and Exploited Children that child pornography was being stored in a on online storage account. The ensuing investigation, including the execution of a federal search warrant at Noah’s residence, led to the federal indictment.
HSI and the Knoxville Police Department’s Internet Crimes Against Children Unit conducted the investigation.
Assistant U.S. Attorney Jennifer Kolman represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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El Paso School Teacher Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
EL PASO – Ricardo Ortiz, 30, a former teacher at Horizon High School in El Paso pleaded guilty today to three counts of Coercion and Enticement of a Minor and one count of Possession of a Visual Depiction Involving the Sexual Exploitation of a Minor.
According to court documents, the El Paso man began chatting with a 14-year-old on social media when the conversation quickly turned sexual in nature. Ortiz arranged to meet with the minor for a sexual encounter but when he arrived at the meeting place, Ortiz was arrested by law enforcement. Ortiz was actually speaking with an undercover FBI employee instead of a minor.
Upon further investigation it was discovered that Ortiz also engaged in sexual activities with at least three minors in the El Paso area. Agents also found child pornography on Ortiz’s electronic devices.
A sentencing date has not been set. Ortiz faces a maximum penalty of up to life in prison on each of the coercion and enticement counts and up to 20 years in prison on the possession count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office, made the announcement.
The FBI is investigating the case. To report information related to this investigation call the El Paso FBI office at 915-832-5000.
Assistant U.S. Attorney Mallory J. Rasmussen is prosecuting 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Double Homicide Suspect Charged with Drug CrimeRead the Press Release
An Austin man with alleged ties to a double homicide has been charged with a drug crime, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Fernando Molina, 38, was charged via criminal complaint on Feb. 16 and indicted on March 9, charged with conspiracy to possess with intent to distribute a controlled substance.
According to the complaint, the charges stemmed from an investigation into a drug-related double homicide perpetrated in Parker County, Texas on April 11, 2021. Two weeks after the killings, investigators raided the residence of Mr. Molina’s associate, Jerome Thomas Watkins, and seized more than 3,000 fentanyl-laced counterfeit pills, multiple firearms, and roughly 20 cell phones that allegedly contained evidence of fentanyl, cocaine, methamphetamine, and heroin trafficking.
According to the complaint, a search of those phones revealed text message conversations with a drug supplier saved in the phone under the name “Austin.” Investigators eventually traced “Austin’s” multiple phone numbers to Mr. Molina. One of Mr. Molina’s phones was the last device in contact with a homicide victims before his death; another pinged cell towers in close proximity to the crime scene at the time of the homicide, according to the complaint.
Parker County has charged Mr. Molina with conspiracy to commit murder in connection with the double homicide.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Mr. Molina is presumed innocent until proven guilty in a court of law. If convicted, he faces life in federal prison.
Mr. Molina’s associate, Mr. Watkins, was convicted at trial in November 2021 of conspiracy to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl, possession with intent to distribute fentanyl, and being a felon in possession of a firearm. He is set to be sentenced later this month.
The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office – Fort Worth Resident Agency, the Parker County Sheriff’s Office, and the Pflugerville Police Department’s Street Crimes Unit conducted the investigation, which was classified a HIDTA (High Intensity Drug Trafficking Area) operation. Assistant U.S. Attorney Shawn Smith is prosecuting the case.
Dallas Restaurant Owners Sentenced for Failing to Pay Required Corporate Payroll Taxes & Personal Income TaxesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Giuseppe Tomasino, age 45, and Andrea Tomasino, age 71, co-owners of Tomasino’s Restaurante Italiano, located in Dallas, PA, were sentenced on March 8, 2022, by United States District Judge Robert D. Mariani for both failing to collect and pay over several years’ worth of required federal payroll taxes and for underreporting personal income for several years. Judge Mariani sentenced Giuseppe Tomasino to serve a 6-month period of home detention with electronic monitoring, to be followed by two years of supervised release. Additionally, Giuseppe Tomasino was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $205,799.00. Citing the elder Tomasino’s serious health issues, Judge Mariani sentenced Andrea Tomasino to two years of probation. Andrea Tomasino was also ordered to pay restitution to the IRS in the amount of $214,347.00.
According to United States Attorney John C. Gurganus, for a 5-year period from the first quarter of 2014 through the first quarter of 2019, the Tomasinos willfully failed to collect and pay over to the IRS required federal payroll taxes, including Federal Insurance Contribution Act (FICA) taxes. Additionally, for years 2014 through 2017, both men intentionally underreported their personal income, resulting in further tax loss to the IRS. More specifically, Giuseppe Tomasino underreported income for the relevant years in the total amount of $489,390.00, while Andrea Tomasino underreported income for the same period in the total amount of $491,820.00.
The case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney Jeffery St John prosecuted the case.
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Customs and Border Protection Officer Convicted by Federal Jury of Using Unreasonable Force at Calexico Port of Entry and Obstructing JusticeRead the Press Release
Assistant U. S. Attorney Seth Askins (619) 546-6692 and Alicia Williams (619) 546-8917
NEWS RELEASE SUMMARY – March 9, 2022
SAN DIEGO – U.S. Customs and Border Protection Officer Marcos Valenzuela was convicted by a federal jury today of using unreasonable force on an individual who had applied for admission to the United States from Mexico.
The jury trial began Monday. The jury deliberated for an hour and a half before finding Valenzuela guilty of two charges, Deprivation of Rights under Color of Law and Falsification of Records in a Federal Investigation.
According to evidence presented at trial, which included surveillance video and witness testimony, Valenzuela was assigned to primary vehicle inspection in lane 5 at the Calexico West Port of Entry on August 16, 2019. There was an incident in the pre-primary area of his line between the victim, identified only as “J.L.” in court documents, and the driver of a motorcycle, after the motorcycle cut in front of J.L.’s vehicle while waiting in line.
Valenzuela responded to the pre-primary area where J.L. had gotten out of his vehicle. Valenzuela instructed J.L. to get back into his vehicle, and when J.L. did not immediately comply, Valenzuela told him to get back into his vehicle or Valenzuela would “throw him to the ground.” After J.L. complied, Valenzuela returned to the primary booth. Eventually, the motorcyclist applied for entry into the United States at the primary booth, and Valenzuela told him that he was “going to f**k [J.L.] up right now.”
Immediately thereafter, J.L. drove up to the primary inspection booth with his identification card extended in his hand from the window of the vehicle in an effort to expedite the admissibility inspection. Rather than conducting that inspection, Valenzuela immediately began to rehash the incident in pre-primary, telling J.L., “All right, bro. Check it out. I already called it upstairs…” J.L. attempted to explain that the motorcyclist had cut line in front of him, but Valenzuela told him to be quiet, that Valenzuela was talking, and that J.L. would be removed from the vehicle if he said another word.
When J.L. asked to speak with Valenzuela’s supervisor, Valenzuela told J.L. to turn off and exit the vehicle. While J.L. was turning off the vehicle and removing his seat belt, Valenzuela reached through the driver’s window, unlocked and opened the door, and grabbed J.L.’s left wrist. He pulled J.L. out of the vehicle, and then in one motion that took about five seconds, he shoved J.L. into the wedge of the door, wrapped his right arm around J.L.’s neck and upper chest, threw J.L. to the ground with a backwards motion, and landed on top of J.L. who was now face down on the ground and sustained minor injuries to his forehead and forearm.
Once J.L. had been placed in handcuffs, Valenzuela escorted him to the vehicle secondary office. While in the security office, Valenzuela made multiple misrepresentations to other Customs and Border Protection officers about his interaction with J.L. in an effort to portray J.L. as the aggressor and justify his use of force against J.L. Valenzuela also wrote an incident report later that day that included numerous false statements alleging aggressive verbal and physical conduct by J.L. and claiming that J.L. resisted arrest.
At trial, Valenzuela testified in his own defense, maintaining that J.L. resisted arrest by “pushing off” against him once he had been removed from the vehicle and attempting to explain away the false statements in his reports by claiming that the statements had actually been made by J.L. during their interaction in the pre-primary area.
The jury rejected that testimony and found that Valenzuela deprived J.L. of his Fourth Amendment Constitutional right to be free from unreasonable search and seizure, which includes the right to be free from the use of excessive force. The jury also found that Valenzuela falsified the incident report with the intent to impede, obstruct, or influence a federal investigation, specifically the investigation of his excessive use of force against J.L.
“The jury has found that Marcos Valenzuela used excessive force and deprived a United States citizen of his right under the Fourth Amendment to be free from unreasonable search and seizure,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office takes every allegation of excessive force by law enforcement officers very seriously, and where those allegations are supported by the evidence, we will take the appropriate action to ensure that the transgressors are held accountable. Along with our law enforcement agency partners, we are dedicated to protecting the constitutional rights of all members of our community.”
Grossman thanked Assistant U.S. Attorneys Seth Askins and Alicia Williams and Paralegal Specialist Lina Douglas who prosecuted the case, along with former Assistant U.S. Attorney Christopher Tenorio and Special Agents with both the Federal Bureau of Investigation and Customs and Border Protection’s Office of Professional Responsibility for their excellent work on this case.
“Today's guilty verdict demonstrates the FBI’s commitment to holding everyone accountable for their criminal actions, regardless of the position they hold,” said FBI Special Agent in Charge Suzanne Turner. “I want to specifically thank Customs and Border Protection's Office of Professional Responsibility for their partnership and commitment in seeing this case to the end.”
“CBP employees and officers take an Oath of Office, a solemn pledge that conveys great responsibility and one that should be carried out at all times with the utmost professionalism,” said Elizabeth Cervantes, Special Agent in Charge of the CBP Office of Professional Responsibility in San Diego. “CBP employees who disregard that oath and instead choose to violate the trust of the citizens they swore to protect will be held accountable. CBP will continue to work with our partners at other agencies to seek out and investigate any instance of abuse. This layered approach and collaboration among federal agencies is critical to the mission of professional integrity. Although the percentage of prosecutions for abuse is very small, no incident is tolerated.”
“CBP stresses honor and integrity in every aspect of our mission, and the overwhelming majority of CBP employees and officers perform their duties with honor and distinction, working tirelessly every day to keep our country safe,” said Ryan Koseor, Port Director for the Calexico area ports of entry for U.S. Customs and Border Protection. “We do not tolerate abuse within our ranks, and condemn actions that would tarnish the reputation of our agency. I appreciate the work of our partners to investigate this officer for using excessive force and to bring this case to trial. As public servants, we are rightly held to a higher standard of conduct and are subject to the same laws and rules that apply to private citizens.”
Valenzuela is scheduled to be sentenced on July 8 before U.S. District Chief Judge Dana M. Sabraw.
DEFENDANT Case Number 21cr1056-JLS
Marcos Valenzuela Age: 30 El Centro, CA
SUMMARY OF CHARGES
Deprivation of Rights under Color of Law – Title 18, U.S.C., Section 242
Maximum penalty: Ten years in prison and $250,000 fine
Falsification of Records in a Federal Investigation – Title 18, U.S.C., Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
U.S. Customs and Border Protection, Office of Professional Responsibility
Federal Bureau of Investigation
Cuban National Sentenced to over 38 Years in Prison for Drug Trafficking and Other Crimes after Using His Border Ranch as a Criminal CorridorRead the Press Release
EL PASO – A Cuban national living in Fort Hancock was sentenced today to 460 months in prison for drugs, firearms and immigration crimes.
On July 23, 2021, Gilberto Morales, 57, was found guilty by a federal jury of one count of conspiracy to possess 1,000 kilograms or more of marijuana; one count of possession of 100 kilograms or more of marijuana; one count of being a felon in possession of a firearm; one count of conspiracy to transport aliens; one count of conspiracy to harbor aliens; and one count of harboring aliens.
According to evidence presented at trial, Morales used his Fort Hancock ranch to further his drug trafficking and human smuggling activities. He coordinated with a Mexican drug cartel operating out of Porvenir, Chihuahua, Mexico. Porvenir is across the Rio Grande River from the defendant’s ranch. During sentencing, the judge found that between June 2019 and August 2020, Morales smuggled at least 22,000 kilograms of marijuana into the United States, trafficking between a ton and half a ton of marijuana a week.
On August 14, 2020, a search warrant was executed at Morales’ ranch. Four undocumented non-citizens were located at the ranch. Testimony at trial indicated Morales had smuggled undocumented non-citizens from as early as November 2019. Later that same day federal agents executed a second search warrant at the stash house belonging to co-defendant Sergio Ivan Gonzalez where Morales delivered bulk marijuana. Agents found over 480 kilograms of marijuana in dozens of large bundles. According to trial testimony, this was typical for the amount of marijuana Morales regularly smuggled through his property.
During execution of the search warrant on Morales’ property, federal agents found 11 firearms and at trial, a jury found Morales guilty of being a felon in possession of approximately 1,833 rounds of assorted ammunition in addition to 11 firearms. Morales’ prior conviction consisted of a charge of conspiracy with intent to distribute more than five kilograms of cocaine in the Southern District of New York in 2009. He was sentenced to 50 months in prison.
In addition to the prison sentence, Morales was ordered to forfeit his 160-acre ranch, nearly $157,000 in cash found stashed in his house on his ranch, two trucks, a horse trailer and numerous firearms and ammunition. He was also assessed a $520,000 money judgment.
“For more than a year, Gilberto Morales operated his very own smuggling corridor through his ranch right on the Rio Grande, working with a Mexican drug trafficking organization in smuggling bulk marijuana and undocumented immigrants,” said U.S. Attorney Ashley C. Hoff. “Today's sentence represents just punishment for a defendant who was giving safe harbor to a dangerous Mexican cartel in the United States.”
“This case includes various factors that pose a threat to public safety and border security – drug and weapons possession to transporting and harboring non-citizens,” said Frank Burrola, Special Agent in Charge for HSI El Paso. “HSI special agents utilize their ample authority to investigate a multitude of serious crimes that result from crimes such as these, and we will continue to work with our law enforcement partners to prevent these crimes by removing dangerous individuals from our community.”
“Doing hard time in New York wasn’t enough for Mr. Morales. He decided to move to Texas and continue a life of crime and villainy. He should have known that Texas law enforcement is relentless. Mr. Morales will now have more time to think about his career choices. Thanks to all the law enforcement agencies involved in this investigation for helping to keep the citizens of Texas safe” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
“The range of crimes in this case shows why it is important for law enforcement agencies to work together, leveraging their respective resources and expertise to bring criminals to justice,” said Greg Millard, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “As always, DEA is glad to lend support to its partners.”
Morales’ co-defendant, Sergio Ivan Gonzalez, aka Sergio Ivan Gonzalez-Rangel, 36, from Clint, Texas, pleaded guilty on July 2, 2021, to one count of Conspiracy to Possess with Intent to Distribute 1,000 Kilograms or More of Marijuana. Gonzalez’s sentencing is set for March 28, 2022.
Morales has remained in federal custody since being taken into custody after his guilty verdict on August 14, 2020.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with invaluable assistance from the Drug Enforcement Administration’s El Paso Division; the U.S. Border Patrol; and the Texas Department of Public Safety. AUSAs Adrian Gallegos and Spencer Kiggins prosecuted this case on behalf of the government. AUSA Kristal Wade represented the government on the forfeiture procedures.
AUSA Adrian Gallegos and the U.S. Attorney’s Office for the Western District of Texas participate in Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement and Customs and Border Protection. The FBI and the Drug Enforcement Administration are also part of the Task Force.
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Crop Insurance Agency and CEO to Pay $500,000 to Settle Claims in Federal Fraud InvestigationRead the Press Release
Silveus Ins. Group, Inc. also agreed to a year-long monitoring period and CEO James Cameron Silveus agreed to a year-long exclusion from federal programs.
GRAND RAPIDS – Silveus Insurance Group, Inc., and its Chief Executive Officer, James Cameron Silveus, located in Warsaw, Indiana, have agreed to pay $500,000 to resolve allegations that they violated the False Claims Act by causing the submission of fraudulent claims for federal crop insurance. The insurance agency also agreed to enter into a one-year monitoring period with the U.S. Department of Agriculture’s Risk Management Agency (“RMA”), while Mr. Silveus agreed to a voluntary exclusion from federal programs through March 1, 2023.
The United States contends that Mr. Silveus, through Silveus Insurance Group, served as the crop insurance agent for a Michigan crop farmer, Gaylord Lincoln, who farmed crops in Calhoun, Eaton, Ingham, and Jackson counties in Michigan. In December 2021, the United States filed a complaint in the U.S. District Court for the Western District of Michigan, alleging that Mr. Lincoln violated the False Claims Act by maintaining a scheme to fraudulently obtain more federal farm benefit program payments than he was entitled to receive. In the complaint, the United States alleges that Mr. Lincoln carried out this scheme by placing some of his farmlands and crops under the names of farmhands who served as “straw” farming operators, even though the farmland and crops really belonged to Mr. Lincoln. The United States also alleged that Mr. Lincoln arranged for the straw farming operators to fraudulently obtain federal crop insurance policies to which they were not entitled because they had no insurable interest in those crops.
Separate from the filed complaint, the United States contends that Mr. Silveus and Silveus Insurance Group, acting at the direction of Mr. Lincoln, obtained federal crop insurance policies for these straw farming operators, and that Mr. Silveus and Silveus Insurance Group caused the submission of false claims for the straw farming operators who had no insurable interest in the insured crops under their names. As a result of these false claims, the federal government, through the Federal Crop Insurance Corporation, paid subsidy premiums and indemnities on these false policies, as well as administrative costs that were paid to Mr. Silveus and Silveus Insurance Group.
“The federal crop insurance program is designed to promote the national welfare by creating economic stability for farmers,” said United States Attorney Andrew B. Birge. “This system relies on producers and their insurance agents to submit truthful and complete information, and my office is committed to investigating any allegations of fraud on the federal crop insurance program.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and the U.S. Department of Agriculture’s Risk Management Agency and Office of the Inspector General. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The claims against Silveus Insurance Group and Mr. Silveus resolved by this settlement are allegations only, and there has been no determination of liability.
Additionally, the case against Gaylord Lincoln is pending in federal court, see United States v. Lincoln, No. 1:21-cv-1089 (W.D. Mich.), and the claims made in the complaint are allegations that the United States must prove if the case proceeds to trial. There has been no determination of liability in that case.
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Convicted Felon Sentenced for Illegal Firearm PossessionRead the Press Release
TUSCALOOSA, Ala. – A federal judge this week sentenced a convicted felon for illegally possessing a semi-automatic assault rifle, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Court Judge L. Scott Coogler sentenced Julian Devaughn Lewis, 46, of Tuscaloosa County, to 46 months in prison followed by three years of supervised release for being a felon in possession of a firearm. Lewis pleaded guilty to the charge in December 2021.
According to the plea agreement, Lewis acquired the rifle in July 2021 and directed that it be stored in a Northport storage facility. After Lewis was arrested on an unrelated charge, an ATF special agent seized the rifle and ammunition at the storage facility. Lewis has prior felony convictions for Unlawful Distribution of a Controlled Substance, Receiving Stolen Property, Second Degree, and Unlawful Possession of Marijuana, First Degree.
“The possession of a high-capacity assault rifle by a convicted felon is a potentially deadly situation, and I am grateful to our ATF partners for their work in bringing this defendant to justice,” said U.S. Attorney Escalona.
“The ATF will continue to investigate, apprehend, and charge prohibited persons who illegally possess firearms. The ATF’s primary mission is to combat violent crime in our communities, and we will work tirelessly to keep the communities that we serve safe.” ATF Special Agent in Charge Mickey French stated.
ATF investigated the case. Assistant U.S. Attorney Alan Baty prosecuted the case.
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Coffee County Man Sentenced to 40 Years in Federal Prison for Murder While Trafficking Drugs Along with Other Gun and Drug ChargesRead the Press Release
Montgomery, Alabama – On March 8, 2022, Jareece Edward Blackmon, 28, from Enterprise, Alabama, was sentenced to 40 years in prison on federal gun and drug charges, including a charge of committing murder in relation to a drug trafficking crime, announced United States Attorney Sandra J. Stewart. There is no parole in the federal system.
According to court records and evidence presented at his December 2021 trial, in June of 2017, the Montgomery Police Department responded to reports of a shooting at a Montgomery business. When officers arrived, they found Blackmon suffering from a gunshot wound to one of his legs. Officers also found a stolen Ruger .380 in Blackmon’s car along with ammunition in a mesh bag that had Blackmon’s blood on it. Blackmon is a convicted felon and is prohibited by federal law from possessing a firearm or ammunition.
Later, in August of 2017, Blackmon went to a house in Enterprise with multiple individuals to purchase a large quantity of marijuana. One of them went inside with Blackmon, was shot multiple times, and died. The next day, while officers were executing an arrest warrant for Blackmon, they found another gun. Further analysis determined that it was the same gun used in the murder and that it contained traces of Blackmon’s DNA. More than eighteen pounds of marijuana and other firearms were discovered as well.
Blackmon was found guilty of using and discharging a firearm to commit murder during and in relation to a drug trafficking crime, conspiracy to traffic marijuana, possession of a firearm in connection with a drug trafficking crime, possession with intent to distribute marijuana, and three counts of being a felon in possession of a firearm.
This case was prosecuted pursuant to the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a program in which U.S. Attorneys’ offices work in partnership with federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN as part of its renewed focus on targeting armed violent criminals.
This case was investigated by the Enterprise Police Department, the Montgomery Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Alabama Department of Forensic Sciences, the Dothan Police Department, the Level Plains Police Department, and the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Kevin Davidson, Justin Jones, and Greg Griffin Jr. prosecuted the case.
Chevron Phillips Chemical Company Agrees to Reduce Harmful Air Pollution at Three U.S. Chemical PlantsRead the Press Release
Chevron Phillips Chemical Company LP has agreed to make upgrades and perform compliance measures estimated to cost $118 million to resolve allegations that it violated the Clean Air Act and state air pollution control laws at three petrochemical manufacturing facilities located in Cedar Bayou, Port Arthur, and Sweeney, Texas. Chevron Phillips will also pay a $3.4 million civil penalty. The settlement will eliminate thousands of tons of air pollution from flares.
According to the complaint filed with a consent decree, the company failed to properly operate and monitor its industrial flares, which resulted in excess emissions of harmful air pollution at the three Texas facilities. The company regularly “oversteamed” the flares and failed to comply with other key operating constraints to ensure the volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) contained in the gases routed to the flares are efficiently combusted.
“The Justice Department and EPA will enforce the law against petrochemical plants that violate the Clean Air Act,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “We are committed to reducing harmful air pollution from unnecessary and improper flaring, especially near overburdened communities with environmental justice concerns.”
“This settlement will require Chevron Phillips to install pollution control and emissions monitoring equipment at three facilities in Texas, reducing emissions of greenhouse gases and other harmful gases by thousands of tons per year,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “Those controls, plus a requirement for fence line monitoring of benzene emissions and corrective actions when benzene readings are high, will result in significant benefits for the local communities in Texas.”
Once fully implemented, the pollution controls are estimated to reduce emissions of climate-change-causing greenhouse gases, including carbon dioxide, methane and ethane, by over 75,000 tons per year. The settlement is also expected to reduce emissions of ozone-forming VOCs by 1,528 tons per year and of toxic air pollutants, including benzene, by 158 tons per year.
The pollutants addressed by the settlement can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Flares are also often large sources of greenhouse gas emissions. Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustion efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and HAPs, and turn them into water and carbon dioxide. The agreement is designed to improve Chevron Phillips’s flaring practices. First, it requires the company to minimize the amount of waste gas that is sent to the flares, which reduces the amount of flaring. Second, the company must improve the combustion efficiency of its flares when flaring is necessary.
Chevron Phillips will take several steps to minimize the waste gas sent to its flares at each facility. At the Cedar Bayou facility, Chevron Phillips will operate a flare gas recovery system that recovers and “recycles” the gases instead of sending them to be combusted in a flare. The flare gas recovery system will allow Chevron Phillips to reuse these gases as a fuel at its facilities or a product for sale. At the Port Arthur and Sweeny facilities, Chevron Phillips will be required to amend its air quality permits to limit the flow of gas at selected flares. Chevron Phillips will also create waste minimization plans for each facility to further reduce flaring. For flaring that must occur, the agreement requires that Chevron Phillips install and operate instruments and monitoring systems to ensure that the gases sent to its flares are efficiently combusted.
Chevron Phillips will also perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of the three covered plants. Monitoring results must be publicly posted, providing the neighboring communities with more information about their air quality. The monitoring requirements also include triggers for root cause analysis and corrective actions if fence line emissions exceed certain thresholds. Flare compliance is an ongoing priority for EPA under its Creating Clean Air for Communities National Compliance Initiative.
The consent decree, lodged in the Southern District Court of Texas, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.