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14 April 2022
Caldwell Police Lieutenant Indicted on Federal Civil Rights Charges for Using Excessive Force During an ArrestRead the Press Release
BOISE – A federal grand jury in Boise returned a superseding indictment on April 13, 2022, charging Joseph Alan Hoadley, 42, a Lieutenant with the Caldwell Police Department, with using excessive force against an arrestee and writing a false report about his use of force against that arrestee.
The superseding indictment alleges that on March 30, 2017, Hoadley, a ranking Lieutenant and Police Officer with the Caldwell Police Department, deprived a person of their right to be free from the use of unreasonable force during arrest when Hoadley struck the person, who is identified in the superseding indictment only as B.H., resulting in bodily injury to B.H. The superseding indictment further alleges that Hoadley falsified records to cover up the misconduct.
Hoadley is scheduled to be arraigned on the charges on April 19, 2022, at 1:00 p.m., before U.S. Magistrate Judge Raymond E. Patricco, at the U.S. Courthouse in Boise, Idaho.
If convicted, Hoadley faces a maximum penalty of ten years in federal prison for the deprivation-of-rights offense and a maximum penalty of twenty years in federal prison for the false-report offense.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the efforts of the Federal Bureau of Investigation, which led to charges. If members of the public have information concerning these crimes or wish to report a similar crime, they should contact the Federal Bureau of Investigation at (208) 344-7843.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Buffalo Man Already Charged with Selling Drugs That Led to A Death Indicted on New Charges of Sex Trafficking MinorsRead 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 a federal grand jury has returned an indictment charging Steven Gonzalez a/k/a Steven Hernandez, a/k/a Steve, a/k/a Stevie, a/k/a Unc, 43, of Buffalo, NY, with conspiracy to commit sex trafficking, sex trafficking of a minor, sex trafficking by coercion, conspiracy to distribute controlled substances, and possession with intent to distribute and distribution of controlled substances. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorneys Joshua A. Violanti, Misha A. Coulson, and Joseph M. Tripi, who are handling the case stated that according to the indictment, between 2012, and March 2015, Gonzalez conspired with others to coerce, with use of force or threats of force, two minors identified as A.N. and B.E., to engage in sex trafficking. In addition, between 2006 and November 2018, Hernandez is accused of conspiring with others to sell controlled substances, including marijuana, heroin, cocaine, and crack cocaine.
Gonzalez was previously indicted in May 2020, on charges of distribution of heroin, fentanyl, and acetyl fentanyl causing death; conspiracy to possess with intent to distribute heroin, fentanyl, and acetyl fentanyl; possessing with intent to distribute heroin; and using and maintaining a drug involved premises. Those charges remain pending.
The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brooklyn Man Arrested for Arson of Rash NightclubRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging John Lhota with the April 3, 2022 arson of Rash, a bar and nightclub in Bushwick frequented by members of the LGBTQ+ community. Lhota was arrested yesterday and will make his initial appearance this afternoon before United States Magistrate Judge Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York; John B. DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Laura Kavanagh, Acting Commissioner, New York City Fire Department (FDNY), announced the arrest and charge.
“As alleged, Lhota deliberately set fire to a bar and nightclub patronized by members of the LGBTQ+ community, seriously injuring two of its employees, and endangering all present including the tenants of the building as well as the first responders who battled the blaze for approximately one hour,” stated United States Attorney Peace. “This Office strongly condemns such acts of violence, and will vigorously prosecute this case. The victims, and all LGBTQ+ New Yorkers, should be able to enjoy their nights out in peace and without fear of such a dangerous attack.”
Mr. Peace praised the Special Agents, Fire Marshals and Detectives of the Arson and Explosives Task Force for their outstanding investigative work on the case.
“Arson is a violent crime that impacts all New Yorkers. The prompt investigation leading to the arrest of Lhota demonstrates the commitment of the Arson and Explosive (A&E) Task Force to rapidly apprehend and bring to justice those who violently attack members of our community. ATF and its partners at FDNY and NYPD hope for the quick and full recovery of the victims,” stated Special Agent-in-Charge DeVito.
“This was a brazen act of arson that seriously injured two people, placed the lives of residents and dozens of Firefighters in grave danger, and struck fear throughout an entire community,” said Acting Fire Commissioner Laura Kavanagh. “I commend our Fire Marshals for their outstanding work alongside members of the NYPD and ATF to apprehend this dangerous individual.”
As set forth in the complaint, on the evening of April 3, 2022, Lhota was captured on security video purchasing a red gas canister at a service station and filling it with gasoline. Lhota then proceeded to Rash, located on the ground floor of a multi-story building at 941 Willoughby Avenue, where he allegedly poured gasoline over the floor of the bar. The video showed Lhota tossing a lit cigarette on the floor, but the gasoline did not ignite. Lhota then used a cigarette lighter to ignite the gasoline, causing an explosion and a fire. The floors above Rash contain residential apartments. Firefighters responded to the location and extinguished the blaze. Two employees of Rash were injured and required hospitalization. The building sustained heavy damage due to the fire. Security video captured Lhota fleeing the burning nightclub.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Lhota faces a mandatory minimum sentence of 7 years’ imprisonment, and a maximum of 40 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney John O. Enright is in charge of the prosecution.
The Defendant:
JOHN LHOTA
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-408
Bronx Man Sentenced to over Nine Years in Prison for Coordinating Armed Home Invasion RobberyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that OSCAR RIOS, a/k/a “Oski,” was sentenced to 115 months in prison for his coordination of an August 29, 2020 armed home invasion robbery in the Bronx, New York. RIOS pled guilty to one count of conspiracy to commit Hobbs Act robbery on October 6, 2021 before U.S. District Judge John P. Cronan, who imposed today’s sentence.
RIOS’s co-defendants, SHAWN GARCIA, a/k/a “Ralph Porter,” and SUTHA TAYLOR, a/k/a “Sutha Colon,” carried out the robbery and also pled guilty to conspiracy to commit Hobbs Act robbery. GARCIA and TAYLOR were previously sentenced to 96 months and 121 months in prison, respectively.
U.S. Attorney Damian Williams said: “Oscar Rios coordinated a violent home invasion robbery that resulted in one victim being shot and another victim being threatened at gunpoint. The sentences imposed in this case send a clear message that those who plan and carry out such violent crimes will pay a heavy price.”
According to public filings and statements made in court:
On or about August 29, 2020, RIOS orchestrated an armed home invasion robbery of an apartment in the Bronx, New York (the “Apartment”), which co-defendants GARCIA and TAYLOR, along with a third co-conspirator (“CC-3”), carried out. Shortly before the robbery took place, RIOS communicated with other uncharged co-conspirators to lure a resident (“Victim-1”) out of the Apartment. Once RIOS learned that Victim-1 was about to leave, he informed GARCIA and TAYLOR via text message to commit the robbery.
When Victim-1 opened the door to the Apartment, GARCIA, TAYLOR, and CC-3 ran into the Apartment and physically assaulted Victim-1, including by striking Victim-1 in the head several times with at least one firearm. During this time, RIOS remained in a nearby building to serve as a lookout. While the assault on Victim-1 was in progress, another resident of the Apartment (“Victim-2”) was thrown into the bathroom and ordered to remain there. Victim-1 was then shot in the buttocks. After the shooting, one of the robbers placed a dark garment over Victim-2’s head and demanded to know where Victim-1 kept his safe, which contained proceeds from Victim-1’s marijuana sales. Shortly thereafter, RIOS texted GARCIA and TAYLOR to inform them that the area was clear for them to flee. GARCIA, TAYLOR, and CC-3 then fled the Apartment, stealing a safe with cash proceeds from Victim-1’s marijuana sales, as well as other items found in the Apartment.
As a result of the assault and shooting, Victim-1 was hospitalized for several days.
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In addition to the prison term, RIOS, 28, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the ATF and NYPD, in particular, the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which is composed of agents and officers of the ATF and the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney David J. Robles is in charge of the prosecution.
Bloomington Man Sentenced to 30 Months in Prison for Illegal Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Bloomington, Illinois, man, Jose Luis Arizmendi-Romero, 33, of the 800 block of East Wood Street, was sentenced today to 30 months’ imprisonment for possessing a firearm as an undocumented immigrant.
According to court documents, Bloomington Police, knowing there was an outstanding arrest warrant against Arizmendi-Romero, attempted a traffic stop on June 23, 2021. Arizmendi-Romero backed his car into a police car and then sped away, eventually crashing his car. He later returned to his residence, and police obtained a search warrant. The search uncovered a 9-millimeter handgun and 52 rounds of 9-millimeter ammunition along with drug paraphernalia.
At the sentencing hearing, U.S. District Court Judge James E. Shadid noted the danger inherent in the possession of firearms combined with drug activity. Judge Shadid also found that Arizmendi-Romero obstructed justice when he fled from officers and that his reckless flight created a substantial risk of serious injury.
Arizmendi-Romero was indicted on the federal charge of possession of a firearm by an alien illegally in the United States in October 2021 and pleaded guilty to the charge in December 2021. He has been in the custody of the U.S. Marshals since his indictment.
The statutory penalties for the offense are up to 10 years’ imprisonment and up to three years of supervised release, along with forfeiture of the handgun.
The Bloomington Police Department and the U.S Immigration and Customs Enforcement Homeland Security Investigations investigated the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Keith Hollingshead-Cook represented the government in the prosecution.
The case against Arizmendi-Romero was brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
Alabama Man Charged with Defrauding Jefferson County Retirement PlanRead the Press Release
BIRMINGHAM, Ala. – An Alabama man has been charged with devising a scheme to defraud Jefferson County’s retirement plan, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
An information filed today in United States District Court charges GARY DEAN GIBBS, JR., 52, with one count of wire fraud. According to the information, Gibbs’ father was a former employee of Jefferson County, Alabama, who was receiving benefits from The General Retirement System for Employees of Jefferson County (“GRS”). GRS is a retirement plan that provides benefits to retired and disabled employees of Jefferson County, Alabama. The information alleges that, beginning in September 2017 and continuing until February 2022, Gibbs concealed his father’s death from GRS and collected money from GRS to which he was not entitled. According to the information Gibbs used his father’s personal identifiers and forged his father’s signature on documents submitted to GRS to further his scheme. Additionally, the information alleges that Gibbs assumed his father’s identity during telephone calls with a GRS employee.
According to a plea agreement, also filed today, Gibbs agreed to plead guilty to the information. The plea agreement states that Gibbs collected approximately $132,646.12 to which he was not entitled.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case along with the Jefferson County Sheriff’s Office. Assistant United States Attorney George Martin is prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Acoma Pueblo man pleads guilty to failure to update sex offender registrationRead the Press Release
ALBUQUERQUE, N.M. – Eric Chino, 39, of Albuquerque, and an enrolled member of the Acoma Pueblo, pleaded guilty today in federal court to failing to update his registration as a sex offender. Chino will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Chino on April 14, 2021. According to the plea agreement and other court records, Chino pleaded guilty on March 12, 2015, to sexually assaulting an Acoma Pueblo woman on June 24, 2012, on the Acoma Pueblo in Cibola County, New Mexico. On June 17, 2015, Chino was sentenced to three years in prison. His sentence also required him to register as a sex offender.
In his plea agreement today, Chino acknowledged that he was aware of the requirement to register as a sex offender. Chino admitted that from Oct. 26, 2019, through Jan. 5, 2021, he failed to update his registration as required by law.
By the terms of the plea agreement, Chino faces 15 months in prison.
The United States Marshals Service investigated this case with assistance from U.S. Probation and Pretrial Services. Special Assistant United States Attorney Chelsea N. Van Deventer is prosecuting the case.
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13 April 2022
Youngstown Man Sentenced to More Than 21 Years in Prison After Pleading Guilty to Sexual Exploitation of a ChildRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Andrew Samuel Davis Strickland, 27, of Youngstown, Ohio, was sentenced on Tuesday, April 12, 2022, by U.S. Judge Patricia A. Gaughan to more than 21 years, or 262 months, in prison and ten years of supervised release after Strickland pleaded guilty to sexual exploitation of a child.
“This defendant engaged in reprehensible behavior and perpetrated unspeakable crimes against the most vulnerable of victims,” said Acting U.S. Attorney Michelle M. Baeppler. “This lengthy sentence reflects our commitment to protecting vulnerable victims and punishing individuals who engage in this type of conduct.”
“Coercing and threatening children through social media and further, the sexual exploitation of a child, is callous and repulsive,” said FBI Special Agent in Charge Eric B. Smith. “The cooperative efforts among federal, state, and local partners made it possible to bring a devious predator to justice. The FBI will continue to work collaboratively to combine our resources and share our expertise to identify those who commit these appalling crimes.”According to court documents, in July of 2019, law enforcement officials began an investigation into Strickland after learning that Strickland coerced two minors into engaging in and filming a sexually explicit encounter.
Court documents state that Strickland met one of the victims through Facebook and coerced the victim into providing sexually explicit images. After receiving the images, Strickland then threatened to send the images to the victim’s family members if the victim did not give in to his demands. Additionally, Strickland coerced the victim into engaging in and recording a sexual encounter, which was perpetrated on a second minor victim. Strickland then sent the recording to other members of the first victim’s family.
According to court records, the victim complied with Strickland’s demands out of fear that Strickland would harm the victim or the victim’s family members.
This case was investigated by the Trumbull County Sheriff’s Office, the Federal Bureau of Investigation, Ohio Bureau of Criminal Investigation-Crimes Against Children and the Mahoning Valley Violent Crimes Task Force. This case was prosecuted by Assistant United States Attorneys Michael A. Sullivan and Yasmine T. Makridis.
Woman Sentenced to More Than 18 Years in Prison for her Role in Dothan Truck Bombing Targeting a Former BoyfriendRead the Press Release
Montgomery, Alabama – On Tuesday, April 12, 2022, Ashley Nicole Haydt, 36, from Taylor, Alabama, was sentenced to 220 months in federal prison for her role in instigating a Dothan truck bombing that targeted a former boyfriend and father to one of her children, announced U.S. Attorney Sandra J. Stewart. Following her prison sentence, Haydt will serve three years of supervised release. There is no parole in the federal system.
According to court records and evidence presented at her trial, in 2017, Haydt worked at Wiregrass Rehabilitation Center in Dothan with Sylvio Joseph King. The two became friends and Haydt told King about the troubled relationship she was having with her long-time boyfriend and father of her unborn child. Haydt was distraught because her boyfriend would not agree to marry her and that he ultimately ended their relationship. In June 2017, their child was born, and the ex-boyfriend filed for custody soon after. The jury saw numerous texts from Haydt to King during this time where she villainized her ex-boyfriend and she repeatedly expressed concern over losing custody of her infant child. Haydt told King that her life would be better if the ex-boyfriend were out of the picture. Those texts continued for several weeks until Haydt suggested they begin using an alternate app called Snapchat to communicate. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before they become inaccessible to their recipients.
With Haydt’s ongoing encouragement to eliminate her ex-boyfriend, King began to purchase materials needed to construct a pipe bomb. Haydt provided King with her ex-boyfriend’s address and, in the early morning hours of October 23, 2017, King placed the explosive device in the ex-boyfriend’s work truck that was parked at his home. King detonated the bomb while the ex-boyfriend was driving to work. Shrapnel from the device was blasted into the ex-boyfriend’s back and hip area, but thanks to the actions of a passing motorist and first responders, he survived. After the explosion, King sent Haydt a message that read, “boom, I felt that from 120 feet away.”
Law enforcement quickly became suspicious of Haydt’s involvement in the crime. Haydt gave numerous conflicting statements during multiple interviews and, when agents checked her cell phone, they discovered she had deleted text messages she exchanged with King the day of the bombing and before. She had also deleted the Snapchat app. However, significant evidence of their prior communications remained on King’s phone. King also testified during the trial confirming Haydt’s involvement. After the four-day trial, the jury found Haydt guilty of conspiracy, malicious use of an explosive, and concealing the commission of a felony. King was sentenced on November 4, 2021, to 108 months in prison for his role in the bombing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Houston County Sheriff’s Office, the Dothan Police Department, and the Alabama Law Enforcement Agency (ALEA), with assistance from the Federal Bureau of Investigation (FBI) and the Alabama Fire Marshal’s Office. Assistant United States Attorneys Brandon W. Bates and B. Chelsea Phillips prosecuted the case.
Woman Pleads Guilty to Pandemic Related FraudRead the Press Release
ABINGDON, Va. – A Southwest Virginia woman, who collaborated with more than 30 others in a scheme to cheat the government out of more than $499,000 in unemployment benefits, pleaded guilty this week to one count of conspiracy to defraud the government, one count of conspiracy to commit mail fraud, and one count of conspiracy to obstruct justice.
According to court documents, over the course of nine months, Veronica Mullins, 48, of Pound, VA, conspired with Leelynn Danielle Chytka, Gregory Tackett, Jeffery Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits on behalf of at least 37 individuals via the Virginia Employment Commission [VEC] website, with a total actual loss to the United States of at least $499,000.
Specifically, in June 2020, Mullins approached Chytka and asked her for help with filing for fraudulent unemployment benefits. In addition to illegally attempting to gain unentitled benefits for herself, Mullins also provided the personally identifiable information for other individuals, including those of her children, each of whom was also ineligible to receive pandemic-related benefits. When questioned by investigators, Mullins lied about her knowledge of the larger scheme and her role in it.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Special Agent-in-Charge Syreeta Scott, Philadelphia Regional Office, U.S. Department of Labor - Office of Inspector General, and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office made the announcement.
Chytka, the mastermind behind the scheme, was sentenced to nine years in prison.
To date, the following co-conspirators have been sentenced as part of the investigation:
- Jimmy Barnette- 24 months
- George Buckles- 30 months
- Joshua Carroll- 24 months
- Darrell Davis- 18 months
- Melinda Davis – 18 months
- Misty Evans – 12 months
- Eugene Grizzle- 12 months
- Ryan Grizzle – 5 months
- Melissa Hayes – 24 months
- Jacob Hicks – 30 months
- Timothy Hileman- 30 months
- Ajay Johnson – 30 months
- John C. Johnson Jr. – 18 months
- Randall Johnson – 24 months
- Jared Mitchell – 24 months
- Curtis E. Mullins – 12 months
- Eric B. Mullins – 30 months
- Steven J. Mullins – 27 months
- Patrick Payne – 24 months
- Jeremy Short – 27 months
- Gregory Tackett – 108 months
- Jeffery Tackett – 102 months
- Larry Whited – 18 months
- Jeffrey Wiseman – 24 months
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Lena L. Busscher are prosecuting 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.
Wilson Man Sentenced to More Than 9 Years in Prison for Armed Robbery and Shooting During One-Day Crime SpreeRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 110 months in prison after stealing a firearm, robbing a man at gunpoint, and shooting at another man all on one day. On September 2, 2021, Gregory Antawn Joyner pled guilty to Possession of a Firearm as a Convicted Felon.
According to court documents and other information presented in court, on the morning of September 25, 2020, the Wilson Police Department received information from an eyewitness who observed Joyner, 32, steal a loaded .40 caliber semi-automatic handgun with an extended magazine from a parked vehicle on Emory Street in Wilson, North Carolina.
That afternoon, as Wilson Police were investigating the firearm theft from Emory Street, they received a call of an armed robbery at the Jubair Mart on Tarboro Street in Wilson. After interviewing witnesses, Wilson Police reviewed the store’s surveillance footage, which showed Joyner robbing a man of $20 at gunpoint and threatening to kill him. Joyner fled the store on foot.
Several hours after the robbery, Wilson Police officers responded to a Shots Fired call on Dewey Street. When officers arrived, they observed Joyner still at the scene. Joyner was armed and again attempted to flee. Ultimately, Wilson Police officers detained Joyner and placed him into custody. On Joyner’s person, officers recovered the stolen .40 caliber handgun. The extended magazine was loaded with 20 rounds of ammunition. Officers also recovered a spent shell casing.
Multiple witnesses on scene informed police they observed Joyner initiate an armed struggle with a male victim. During this struggle, Joyner discharged his firearm at the male victim, but did not strike him. Joyner attempted to fire a second shot, but the gun jammed and failed to eject the round. At that point, another witness joined the struggle to subdue Joyner and assisted in wrestling the gun away from Joyner. The first male victim successfully secured the firearm from Joyner and attempted to leave in his vehicle. Joyner jumped onto the victim’s vehicle and refused to let go as the victim drove off. Eventually, the victim tossed the handgun back out the window to Joyner, who let go of the vehicle and retrieved the firearm. Joyner attempted to flee the area moments before Wilson Police arrived and apprehended him.
U.S. Attorney Easley commented: “Gregory Joyner was a one-man crime wave. The sentence the Court imposed today was just and fair. Every day that Joyner spends in federal prison is a safer day for the people of Wilson. The United States Attorney’s Office for the Eastern District of North Carolina stands ready to assist our local law enforcement partners in protecting the community from violent offenders like Joyner.”
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Wilson Police Department investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-160-BO.
Wildasin to Remain as U.S. AttorneyRead the Press Release
NASHVILLE – Under the provisions of federal statutes governing the filling of vacancies for the position of United States Attorney, Mark H. Wildasin was sworn in today by Chief U.S. District Judge Waverly D. Crenshaw, Jr. as the U.S. Attorney for the Middle District of Tennessee, effective April 25, 2022. 28 U.S.C. § 546, and the Vacancies Reform Act, establish provisions for filling the position of U.S. Attorney, absent a nomination by the President and a Senate-confirmed appointment. Mr. Wildasin will remain the U.S. Attorney until the Senate confirms his successor.
Mr. Wildasin was previously appointed by Attorney General Merrick B. Garland to be the United States Attorney on December 26, 2021, after serving as the Acting United States Attorney since November 7, 2021. The appointment by the Attorney General expires on April 24, 2022.
“I am honored to have the opportunity to continue to serve as the U.S. Attorney for the Middle District of Tennessee,” said U.S. Attorney Wildasin. “For the past 16 years I have had the distinct privilege of working alongside some of the nation’s most dedicated public servants and I look forward to continuing to lead this office in our mission of seeking justice for our citizens.”
Mr. Wildasin previously served as the Chief of the Civil Division in the United States Attorney’s Office since January 2006 and has been responsible for defending and prosecuting cases and managing all civil litigation in which the United States or one of its agencies is a party in the Middle District of Tennessee, including affirmative civil enforcement, defensive litigation, bankruptcy, asset forfeiture, immigration, and collections.
In addition to his work as the Civil Chief, from 2009 to 2011 and 2019 to 2021, Mr. Wildasin was appointed to the Civil Chiefs’ Working Group, which advises and reports to the Attorney General’s Advisory Committee on issues relevant to Civil Assistant United States Attorneys throughout the country.
Mr. Wildasin was a member of the Standby Component of the State Department’s Civilian Response Corps (CRC) from 2009 to 2011. The CRC was created to implement the United States’ whole of government approach to stabilization and reconstruction missions. As a CRC Standby member, Mr. Wildasin obtained training in stabilization and conflict resolution to support security and justice in host nations emerging from conflict.
From October 2011 through September 2012, Mr. Wildasin was detailed through the Office of the Deputy Attorney General as an Attorney Advisor in the Office of the Justice Attaché in the United States Embassy in Baghdad, Iraq, to work on Rule of Law issues, including assisting in the prosecution of terror suspects in U.S. interest cases, training Iraqi judges and police inspectors on the newly enacted anti-Human Trafficking Law, working on land reform issues, and otherwise liaising with the Iraqi Ministry of Justice, Iraqi judiciary, and European Union counterparts.
Mr. Wildasin is a graduate of Duke University and Vanderbilt University School of Law. Immediately after law school, he was a law clerk for United States District Judge Thomas A. Higgins in the Middle District of Tennessee. Prior to joining the United States Attorney’s Office, Mr. Wildasin practiced law in San Francisco with Coudert Brothers and in Nashville with Waller Lansden Dortch & Davis.
He previously served as the Attorney General appointed United States Attorney in 2017.
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Waterbury Heroin Distributor Sentenced to 18 Months in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that KEON COUNCIL, 44, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in May 2020, the DEA New Haven Task Force and Waterbury Police Department began an investigation into a drug trafficking organization that was distributing large amounts of heroin, cocaine and crack in the Waterbury area. The investigation included court-authorized wiretaps on multiple phones used by members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs. In November and December 2020, Council was intercepted multiple times on a wiretap ordering distribution quantities of heroin from James Grant, also known as “Bobo,” “Bo,” and “Jimbo,” Council then sold the drugs to his own customers.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging Council, Grant and 15 others. On December 10, 2021, Council pleaded guilty to one count of conspiracy to distribute heroin.
Council has been detained since his arrest on March 3, 2021. On that date, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine, and nine firearms
Grant pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
Ulster County Dentist Pleads Guilty to Fraudulently Acquiring and Obtaining OxycodoneRead the Press Release
ALBANY, NEW YORK – Vivian Letizia, age 63, of Stone Ridge, New York, pled guilty today to acquiring and obtaining a controlled substance by misrepresentation, fraud, deception, or subterfuge. The announcement was made by United States Attorney Carla B. Freedman and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
In pleading guilty, Letizia admitted that, on December 16, 2019, she fraudulently submitted a prescription for oxycodone for one of her dentistry patients using that patient’s name and date of birth. Letizia then obtained that oxycodone from a pharmacy in Woodstock, New York, for her own consumption. At the time Letizia submitted the prescription to the pharmacy, she knew that she was not treating this patient and that she intended to personally consume the oxycodone.
At sentencing on August 25, 2022, Letizia faces up to 4 years in prison, a supervised release term of up to 1 year, and a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
By pleading guilty, Letizia also agreed to surrender her New York State medical license. She also agreed that she would be prohibited from re-applying for a DEA registration number that would allow her to write prescriptions authorizing the dispensation of controlled substances for legitimate medical purposes.
This case was investigated by the DEA Albany District Office’s Tactical Diversion Squad, and the New York State Department of Health, Bureau of Narcotic Enforcement, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Assistant U.S. Attorney Christopher Moran, of the Civil Division, also assisted in the investigation.
US Attorney Darcie N. McElwee: Updated federal firearms definition will expand our ability to reduce violent crimeRead the Press Release
PORTLAND, Maine: In response to the announcement of the “Frame or Receiver” Final Rule this week, U.S. Attorney Darcie N. McElwee issued the following statement:
“One year ago, the Department of Justice committed to addressing the growing concern of ghost guns and their increasing role in violent crime. These weapons, often assembled from kits, generally do not contain serial numbers and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
This week, following an extensive public comment period, the Department announced the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Including privately made firearms in the definition of what constitutes a federal firearm expands our ability to enforce federal law and assist our state and local law enforcement partners in keeping Maine streets safe.
Those who sell and use these weapons to commit crimes in Maine should know ATF and the U.S. Attorney’s Office are prepared to take action. Prosecuting gun crimes - including those involving ghost guns - in order to reduce violent crime is a top priority of my office.”
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Two arraigned in $3 million COVID Unemployment Insurance Benefits schemeRead the Press Release
ATLANTA - Rowlando Hatter Jr., and Clyde Anthony Parker Jr., have been arraigned on federal charges of conspiracy to commit mail and wire fraud, mail fraud, and aggravated identity theft. They allegedly participated in a scheme to use stolen identities to fraudulently apply for Unemployment Insurance (“UI”) Benefits in multiple states during the COVID-19 pandemic.
“The defendants allegedly regarded these benefits as means to steal money at a time when many legitimately relied on Unemployment Insurance Benefits during the COVID-19 pandemic,” said U.S. Attorney Kurt R. Erskine. “This type of fraud diverts CARES Act funds away from those it is intended for – those who need the money to make ends meet each month.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the unemployment insurance program. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“This case is another example of criminals trying to take advantage of a bad situation for their benefit. Hatter and Parker’s alleged scheme took desperately needed money from people struggling during the COVID pandemic,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This isn’t a victimless crime, every time a fraudster like this steals money, legitimate applicants are unable to get those funds to help themselves and their families.”
“The alleged actions of the defendants to defraud a government program designed to provide financial assistance is criminally reprehensible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors and our law enforcement partners will aggressively go after bad actors who utilized the COVID-19 pandemic as an opportunity to commit fraud for their own financial gain.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: The U.S. Department of Labor, Employment and Training Administration oversees the Federal-State Unemployment Insurance Program, which provides unemployment benefits to eligible workers who are unemployed through no fault of their own as determined under state law and who meet other state eligibility requirements. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways. One of the provisions provided for temporary benefits for individuals who exhausted their entitlement to regular UI payments, as well as coverage for individuals who were not eligible for regular UI payments and were self-employed or had limited recent work history.
Between about July 1, 2020, and continuing through October 5, 2020, Hatter, 31, of Smyrna, Georgia, and Parker, 31, of Oak Park, Michigan, caused fraudulent applications for UI benefits to be submitted electronically to workforce agencies in various states, including California, Georgia, and Michigan. The applications fraudulently listed the names, Social Security numbers, and other personal identifying information of individuals without their knowledge and consent.
After claims were approved, the state workforce agencies paid the benefits by depositing the funds onto debit cards issued through the approving state workforce agency. The debit cards were mailed to residential addresses and P.O. Boxes located at addresses in Smyrna, Georgia and in Michigan that were controlled by Hatter and Parker. After receiving the debit cards, both Hatter and Parker withdrew the UI funds, in part, through ATM cash withdrawals.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Homeland Security Investigations, and U.S. Postal Inspection Service. Special assistance was provided by the Federal Bureau of Investigation – Sacramento, California.
Assistant U.S. Attorneys Tracia M. King and Thomas J. Krepp are prosecuting the case.
This case was sponsored by the Georgia Unemployment Insurance Task Force. The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefits Fraud.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Sentenced for Conspiring with State Contractor in Multi-million Dollar Unemployment Fraud SchemeRead the Press Release
DETROIT - A couple from Detroit was sentenced today for their role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge John Marengo, US Secret Service, Acting Special Agent in Charge Felicia George, US Postal Inspection Service, Special Agent in Charge James A. Tarasca , Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Juila Dale, Director of the Michigan Unemployment Insurance Agency.
Johnny Richardson, 27, was sentenced to 97 months in federal prison and Micahia Taylor, 28, was sentenced to 30 months in federal prison. In sentencing the defendants, United States District Judge Bernard A. Friedman also ordered Richardson and Taylor to pay restitution in the amount of $683,555.
According to court records, Richardson and Taylor conspired with Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency, to fraudulently release government funds that were intended to support individuals who lost their jobs during the COVID-19 pandemic. Richardson and Taylor both pleaded guilty conspiracy to commit wire fraud and conspiracy to commit money laundering in 2021.
Richardson and Taylor, either themselves or through others, filed dozens of fraudulent unemployment claims in Michigan and across at least four other states. Some of the claims filed by Richardson and Taylor used their own personal identifying information. Other claims were filed using stolen identities. Richardson and Taylor then provided Hawkins information on these claims, and Hawkins subsequently used her insider access to fraudulently release payment. The conspiracy resulted in the fraudulent disbursement of at least $683,555.
Hawkins was sentenced in October 2021 to 58 months in federal prison and was ordered to pay restitution in the amount of $3,793, 186 which represented the amount of fraudulently disbursed funds for which Hawkins received as a result of her actions.
“The defendants in this case used the COVID-19 pandemic to line their pockets with government funds earmarked to help those in need,” stated U.S. Attorney Ison. “My office is committed to rooting out and holding responsible those who exploited this crisis for their own personal gain.”
“At a time when thousands of people across Michigan were out of work because of the pandemic, these defendants were stealing benefits that should have gone to those trying to sustain their families,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “We thank our state and federal partners for their efforts to investigate unemployment insurance fraud.”
“Today’s sentencings demonstrate the collaborate efforts of many federal and state agencies,” stated USSS Special Agent in Charge Marengo. “The USSS and our law enforcement partners will continue to protect our nation’s financial infrastructure against criminals who try to enrich themselves from COVID Relief disaster funds.”
“UIA investigators use the many tools at their disposal to identify the web of deceit that bad actors use to steal money that is intended for hard-working residents of Michigan who face difficult times through no fault of their own,” said Julia Dale, Director of the Michigan Unemployment Insurance Agency. “We won’t rest in our pursuit of criminals. We leverage our partnerships with local law enforcement, financial institutions, internet service providers, businesses and others to make sure bad actors face full justice for their breach of the public trust.”
This case was prosecuted by Assistant United States Attorney Timothy Wyse. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Two Plead Guilty in Nationwide Rideshare and Delivery Account Fraud SchemeRead the Press Release
BOSTON – Two Brazilian nationals pleaded guilty on Monday, April 11, 2022, in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Guilherme da Silveira, 29, of Revere, and Priscila Barbosa, 35, of Saugus, pleaded guilty to one count each of conspiracy to commit wire fraud. Barbosa also pleaded guilty to one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencings for both defendants on Aug. 4, 2022.
In May 2021, da Silveira and Barbosa were charged along with 17 co-defendants with conspiracy to commit wire fraud by using stolen identities and falsified documents to create fraudulent driver accounts for rent or sale to individuals who might not otherwise qualify to drive for the rideshare or delivery services.
According to the charging documents, the defendants allegedly used victims’ identifying information to apply for driver accounts with the rideshare and delivery companies – enabling them to pass the companies’ required background checks and create driver accounts in victims’ names. The defendants allegedly obtained victims’ names, dates of birth, driver’s license information and or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. The defendants and co-conspirators also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services or while exchanging information with victims following vehicle accidents, some of which defendants or co-conspirators intentionally caused in order to obtain license information. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income that conspirators earned from the rideshare and delivery companies.
In connection with the scheme, Barbosa and da Silveira obtained driver’s licenses and Social Security numbers that they and their co-conspirators procured from the DarkNet and other sources. They then used these stolen identifiers to create and apply for numerous fraudulent accounts with the rideshare and delivery companies and supplied these identifiers to other co-conspirators who also created fraudulent accounts.
To circumvent facial recognition technology utilized by rideshare and delivery companies as a security measure, Barbosa edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts. In total, Barbosa admitted to creating over 2,000 fraudulent rideshare accounts.
Barbosa and da Silveira also advertised fraudulent driver accounts for rent and purchase to potential drivers, including via WhatsApp chat groups targeted to Brazilian nationals living in the United States. Barbosa and da Silveira managed the fraudulent accounts they rented out, specifically by collecting rental payments and troubleshooting issues that arose. Additionally, Barbosa and da Silveira used fraudulent driver accounts to exploit referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies. Barbosa and da Silveira each received over approximately $791,000 and $570,000, respectively, from the scheme in the form of rental payments from individuals driving under these accounts and payments from the companies generated with these accounts.
Sixteen of the defendants have been arrested in connection with the conspiracy and three remain at large. Barbosa and da Silveira are the fifth and sixth defendants to plead guilty in the case, respectively. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a sentence of at least two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments; U.S. Customs and Border Protection; U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Troy Man Sentenced to 81 Months for Firearm and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK – Sherrod Johnson, aka “Rod,” age 28, of Troy, New York, was sentenced yesterday to 81 months in prison for possessing and intending to distribute heroin on separate occasions in 2019 and 2020, and to possessing a firearm in furtherance of a drug trafficking crime in 2020.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
In pleading guilty, Johnson admitted to possessing and intending to distribute heroin mixed with fentanyl discovered in his apartment on Seventh Avenue in Troy in March 2019. Over a year later, on April 1, 2020, law enforcement observed Johnson flash a handgun on Facebook Live and the following morning attempted to stop Johnson in the Corliss Park area of Troy. Johnson fled, and as he was pursued by police, placed a loaded .40 caliber handgun in a grill. Johnson was ultimately captured and in searching his Corliss Park apartment, law enforcement discovered 18 bundles of heroin and four digital scales. Johnson, who possessed over $5,600 in cash at the time of his arrest, admitted to possessing and intending to distribute the 18 bundles of heroin and to possessing the handgun to protect his heroin and drug proceeds.
Johnson was also sentenced to a 3-year term of post-release supervision.
The case was investigated by the ATF, DEA, and Troy Police Department, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Thomasville, Georgia, Man with Violent Criminal Past Pleads Guilty in Project Safe Neighborhood CaseRead the Press Release
VALDOSTA, Ga. – A Thomasville, Georgia, resident with a violent criminal history who fled from police after being caught illegally with multiple weapons—including a stolen AR-15 semi-automatic rifle—pleaded guilty to a firearms charge in federal court.
Torrieo Monte Johnson aka Corker, 39, pleaded guilty to possession of a firearm by a convicted felon before U.S. District Judge Hugh Lawson on Monday, April 11. Johnson has a criminal history that may subject him to armed career criminal status which carries a minimum sentence of fifteen years in prison to be followed by three years of supervised release. Sentencing is scheduled for July 20. There is no parole in the federal system.
“Felons with violent criminal histories simply cannot possess guns, let alone stolen ones,” said U.S. Attorney Peter D. Leary. “Under the Project Safe Neighborhoods program, our office is working closely with our law enforcement and community partners to focus enforcement efforts where they are needed most and hold violent repeat offenders accountable.”
“Violent repeat offenders possessing stolen firearms is a dangerous combination,” said ATF Assistant Special Agent in Charge Beau Kolodka. “In this case, we have the best possible outcome in that a stolen firearm has been removed from the streets and Mr. Johnson will spend a significant amount of time in federal prison.”
According to court documents and other evidence, Johnson—a convicted felon—and another individual ran from Thomasville Police Department officers after they discovered multiple weapons inside the vehicle Johnson was driving on June 26, 2019. The officers found a 9mm semi-automatic pistol, a .22 semi-automatic rifle, and a Spikes Tactical .223 semi-automatic rifle, along with multiple firearm magazines and boxes of ammunition. The Spikes Tactical weapon was reported stolen during a burglary at a Thomasville residence on June 17, 2019. Arrest warrants were issued for Johnson and he was captured in Tallahassee, Florida, on July 3, 2019. Johnson has a lengthy criminal history to include felony convictions for arson in the 1st degree, distribution of a controlled substance and burglary.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Thomasville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Sonja Profit prosecuted the case for the Government.
Tech Company CEO Charged with Defrauding His Former Employer of over $9 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an indictment charging SUNI MUNSHANI with operating multiple long-running schemes to defraud a Connecticut-based technology company (the “Victim Company”) of millions of dollars. As part of the schemes, MUNSHANI and his co-conspirators created companies and then caused the Victim Company to enter into lucrative contracts with those companies, which MUNSHANI and his co-conspirators then used to siphon money from the Victim Company. SUNI MUNSHANI’s brother, SURESH MUNSHANI, who controlled a bank account used to receive fraud proceeds from the Victim Company and then returned the majority of such proceeds back to SUNI MUNSHANI, was also charged.
SUNI MUNSHANI was arrested earlier today in the District of Connecticut, and SURESH MUNSHANI was arrested earlier today in the Southern District of New York. The defendants were presented this afternoon before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “We allege Mr. Munshani spent the better part of his seven years as CEO of a company setting up contracts with fake companies that he created and with a company in which he held an undisclosed ownership interest, and then pocketed the checks. Much of the money paid to these companies was for services that were never rendered. Not only do we allege Mr. Munshani benefited from this scheme, his brother did as well. The self-described tech entrepreneur’s pervasive fraud has landed him in federal court facing multiple felony charges.”
According to the allegations contained in the Indictment and statements made during court proceedings[1]:
Between 2011 and 2019, SUNI MUNSHANI, a self-described technology entrepreneur, was the CEO of the Victim Company, which provided data security services to its clients. Within six months of his appointment as CEO, MUNSHANI began an approximately seven-year scheme to defraud the Victim Company through fraudulent agreements with a purported third-party contractor (“Individual-1”) and a company purportedly controlled by that third-party (the “Individual-1 Company”). In fact, MUNSHANI and his brother, SURESH MUNSHANI controlled the Individual-1 Company. To facilitate the scheme, SUNI MUNSHANI, among other things, created an email account purportedly controlled by Individual-1 but in fact controlled by him. He then used that email account to correspond with the Victim Company concerning services purportedly rendered to the Victim Company by Individual-1 and by the Individual-1 Company. In fact, Individual-1 and the Individual-1 Company did not provide these services to the Victim Company. Nevertheless, MUNSHANI caused the Victim Company to pay at least approximately $3 million dollars to Individual-1 and the Individual-1 Company, which funds enriched SUNI MUNSHANI and SURESH MUNSHANI. In furtherance of the scheme, SUNI MUNSHANI also caused the Victim Company to issue a check for an additional approximately $3.5 million, which MUNSHANI claimed related to a tax liability of the Victim Company. In fact, no such tax liability existed and MUNSHANI, again with the assistance of SURESH MUNSHANI, also stole this money from the Victim Company.
In addition, between 2013 and 2019, MUNSHANI carried out another scheme to defraud the Victim Company through services agreements between the Victim Company and a software development company (the “Development Company”). As part of the scheme, MUNSHANI obtained an undisclosed ownership interest in the Development Company and used his personal email account to assist the CEO of the Development Company (“Co-Conspirator-1”) in negotiating favorable terms in its contracts with the Victim Company. During the scheme, the Development Company transferred at least approximately $2 million to MUNSHANI.
In yet another scheme, between 2018 and October 2020, MUNSHANI defrauded the Victim Company through licensing and reseller agreements between the Victim Company and two other companies (the “Licensing Company” and the “Reseller Company,” respectively). As part of the scheme, MUNSHANI conspired with others to create the Licensing Company and the Reseller Company and, without disclosing his involvement in the companies to the Victim Company, assisted the companies in their negotiations with the Victim Company. Thereafter, MUNSHANI attempted to steer an approximately $6.7 million contract to the Licensing Company, and received payments amounting to at least $200,000 from the Reseller Company.
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SUNI MUNSHANI, 60, of Easton, Connecticut, is charged with three counts of conspiring to commit wire fraud, and SURESH MUNSHANI, 57, of Manhattan, New York, is charged with one count of conspiring to commit wire fraud. Each count carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Statement of U.S. Attorney Breon Peace on United States v. Frank JamesRead the Press Release
“Yesterday was a dark day for all of us. But the bright spots of the incredible heroism of our fellow New Yorkers helping each other in a time of crisis, the quick response by our first responders, and the hard work by all of our law enforcement partners that has been ongoing truly shines bright.
Today Frank James has been charged by complaint in Brooklyn Federal Court with one count of violating 18 U.S.C. 1992(a)(7), which prohibits terrorist and other violent attacks against mass transportation systems. Once apprehended, and if convicted, he will face a sentence of up to life imprisonment.
My office is prepared to prove beyond a reasonable doubt that: On April 12, 2022, in Sunset Park, Brooklyn, in the Eastern District of New York, the defendant Frank James did knowingly and without lawful authority and permission commit an act, including the use of a dangerous weapon, with the intent to cause death and serious bodily injury to passengers and MTA employees on the New York City subway system. The government will prove, among other things, that James traveled across a state line in order to commit the offense and transported materials across a state line in aid of the commission of the offense.
We are working closely with all of our law enforcement partners at the Kings County District Attorney’s Office, FBI, NYPD, ATF and the U.S. Marshals Service. My office will use every tool at our disposal to bring this individual to justice, and restore safety and peace of mind to all.”
Star Woman Pleads Guilty to False Statement in Case Involving More Than $11 Million in Government ContractsRead the Press Release
BOISE – A Star woman pleaded guilty to making a false statement in connection with government contracts.
According to court records, between October 2012 and May 2018, Vicki Rice, 61, willfully made materially false certifications in the System for Award Management (SAM) that the business CAM Services, Inc. was a Service-Disabled Veteran-Owned Small Business (SDVOSB). Organizing documents for CAM listed F.M. as President, with 51% ownership, and Rice as Vice President, with 49% ownership. F.M. is a service-disabled veteran.
The Government’s investigation revealed Rice, who is not a service-disabled veteran, was the actual controller of CAM. In fact, Rice had control over CAM’s finances, taxes, business records and corporate maintenance, payroll personnel matters, administration, performance under the contracts, and SAM certifications. Rice exercised both day-to-day management and administration over CAM. Rice also exercised long-term decision-making for CAM.
SAM is the primary registrant database for federal contractors that is operated by the General Services Administration. Contractors are required to make multiple certifications in SAM prior to competing for and receiving federal procurement contracts. In addition, contractors are required to submit annual certifications in SAM. In the case of government contracts available to SDVOSBs, contractors must annually certify that their business is, in fact, an SDVOSB.
On behalf of CAM, Rice submitted bids to obtain commissary contracts at two military bases. Both contracts were set aside contracts for SDVOSBs. CAM was awarded both contracts, which had a combined value of over $11 million over five years. According to Rice’s tax returns, Rice earned $480,039 from CAM between 2012 and 2019.
Rice is scheduled to be sentenced on June 28, 2022 and faces a maximum penalty of five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the General Services Administration Office of Inspector General, Department of Defense Office of Inspector General, Small Business Administration Office of Inspector General, and Internal Revenue Service Criminal Investigation, which led to charges.
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Springfield Man Indicted on Cocaine Distribution OffenseRead the Press Release
BOSTON – A Springfield man has been indicted by a federal grand jury in Springfield for allegedly possessing cocaine intended for distribution.
Hector Quinones, 42, was indicted on one count of possession with intent to distribute cocaine. Following an initial appearance today before U.S. Magistrate Judge Katherine A. Robertson, Quinones was detained pending a detention hearing that has not yet been scheduled by the Court.
According to the indictment, on Jan. 20, 2022, Quinones possessed with intent to distribute cocaine.
The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Cheryl Clapprood, Superintendent of the Springfield Police Department, made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Rollins’ Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southern Maryland Drug Dealer Sentenced to 40 Years in Federal Prison for Fentanyl Distribution Conspiracy and Other Charges, Including Distribution of Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Rodney Mondell Coby, a/k/a “Cuz,” age 33, of Waldorf, Maryland, to 40 years in federal prison, followed by five years of supervised release, for distribution of fentanyl resulting in death, conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of firearms and ammunition. A federal jury convicted Coby of those crimes on February 28, 2020, after a seven-day trial.
Judge Hazel ordered Coby to pay restitution in the amount of $935, reflecting the expense of cremation for the victim, whom the jury found died from Coby’s distribution of fentanyl to the victim. Judge Hazel also ordered Coby to forfeit $22,000 in cash, jewelry, including a Rolex watch, and the firearms seized from his residence. Coby has been in custody since his arrest on April 13, 2018.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Charles County Sheriff Troy D. Berry.
“Rodney Coby knew that the fentanyl he was distributing was killing people, but he continued anyway,” said U.S. Attorney Erek L. Barron. “This sentence should put drug dealers on notice that when you deal fentanyl you are dealing death and you could spend decades in federal prison—especially if you use guns to ply your trade. We will continue to work with our law enforcement partners to stop the tragic deaths resulting from opioid overdoses.”
According to the evidence presented at his seven-day trial, Coby distributed kilograms of fentanyl to resale and personal use customers over the course of several years. The jury heard from witnesses who bought fentanyl directly from Coby. Other witnesses presented evidence of Coby’s fentanyl distribution drawn from text messages, phone records, and surveillance video.
On September 6, 2017, Coby and his co-defendant, Steven Jerome, distributed fentanyl to an individual, resulting in the death of the victim less than three hours later. According to Steven Jerome’s plea agreement, after meeting with Coby for the drug transaction, the individual used the fentanyl that Coby distributed. The individual immediately showed signs of overdosing. By the time first responders were called, they were unable to resuscitate the victim.
Further, the evidence introduced at trial also proved that Coby distributed fentanyl on November 29, 2017 to an individual who died on December 1, 2017, as a result of injecting fentanyl.
On April 13, 2018, law enforcement executed a search warrant at Coby’s apartment and recovered five firearms, including a loaded .45-caliber semi-automatic pistol from Coby; a .357-caliber semi-automatic pistol; a 5.7x28mm semi-automatic pistol; a .300-caliber semi-automatic AR type pistol, a 7.62x39 caliber semi-automatic AK type pistol, as well as 159 rounds of various types of ammunition. The .45-caliber semi-automatic pistol was found in a backpack next to 121 individual baggies of fentanyl and a bag of cocaine base. The jury determined that Coby possessed the .45-caliber pistol in furtherance of his drug trafficking. Law enforcement officers also recovered a total of over 200 grams of a heroin/fentanyl mixture, over 40 grams of cocaine base, 12 cell phones, a money counter, four digital scales, over $22,000 in cash, and jewelry including a Rolex, a gold chain, a gold and diamond pendant, and ladies’ gold and diamond grills. Moreover, Coby had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Steven Jerome, age 33, of Leonardtown, Maryland, pleaded guilty before trial to distributing fentanyl. As detailed in his plea agreement, two individuals died as a result of his distributing fentanyl to them. Jerome admitted to one of his associates that he worked with Coby to distribute narcotics. Judge Hazel sentenced Jerome to 150 months in federal prison on November 17, 2020.
United States Attorney Erek L. Barron commended the DEA, the St. Mary’s County Sheriff’s Office, and the Charles County Sheriff’s Office for their work in the investigation, and thanked the Prince George’s County Police Department for its assistance. Mr. Barron thanked Special Assistant U.S. Attorney Amy Schwartz and Assistant U.S. Attorney Elizabeth Wright, 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 https://www.justice.gov/usao-md/community-outreach and click on “Save A Life - Opioid Abuse”.
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South Florida Bookkeeper Sentenced to over 12 Years in Federal Prison for Support of International Enterprise that Operated Sexually Exploitive “Child Modeling” WebsitesRead the Press Release
Tampa, FL – A Florida woman was sentenced today to 151 months in federal prison, followed by three years of supervised release, for her work for and support of subscription-based sexually exploitative “child modeling” websites. The court also ordered the defendant to forfeit more than $2.2 million, as well as real property located in Weston, Florida.
According to court documents, Tatiana Power, aka Tanya Power, 41, of Weston, helped run the financial affairs of the Newstar Enterprise – an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Power served as Vice President and part owner of Power Trading Inc., a Florida corporation used to control, operate, and conceal the true nature of the Newstar Enterprise. From as early as 2009 through November 2019, Power served as Power Trading’s (and thus the Newstar Enterprise’s) bookkeeper. She oversaw Power Trading’s QuickBooks, filed its annual corporate registration documents, managed its bank accounts, paid salaries, helped wire money to foreign co-conspirators, and advised co-conspirators on how to evade law enforcement and conceal the true nature of monetary transactions. She routinely assisted in transferring money and making payments for the Newstar Enterprise. From January 2009 until November 2019, Power and her now deceased husband, Kenneth Power, made more than $2.2 million from the Newstar Websites.
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted, and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited, and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. The Newstar Enterprise used the recruited child-victims, to produce more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as 6 years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims – recruited from Ukraine, Moldova, and other nations in Eastern Europe – were particularly vulnerable due to their age and socio-economic status. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the conspiracy. To process, receive and distribute this money, Newstar Enterprise leaders fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case.
Name
Case Number
Charge(s)
Status
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentenced to 12.5 years in prison
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased: case dismissed
Plamen Velinov
8:21-cr-342-VMC-SPF
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Indicted
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
63 months in prison
Anthony Lee Kendall
8:21-cr-358-SCB-TGW
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Defendant deceased
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentenced to 18 months in prison
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations (HSI) in Tampa and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by the Criminal Division’s Money Laundering and Asset Recovery Section, HSI offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as IRS Criminal Investigation in Tampa.
“Powers was complicit in laundering money gained by the sexualization and exploitation of children,” said HSI Tampa Special Agent in Charge John Condon. “HSI is committed to partnering with international law enforcement agencies to find those who exploit innocent children and bring them to justice.”
Assistant U.S. Attorney Frank Murray of the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; International Legal Assistance Center (IRC), North-Holland Unit; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs provided assistance securing foreign evidence and its Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Florida Bookkeeper Sentenced to over 12 Years in Federal Prison for Support of International Enterprise that Operated Sexually Exploitive “Child Modeling” WebsitesRead the Press Release
A Florida woman was sentenced today to 151 months in federal prison, followed by three years of supervised release, for her work for and support of subscription-based sexually exploitative “child modeling” websites. The court also ordered the defendant to forfeit more than $2.2 million, as well as real property located in Weston, Florida.
According to court documents, Tatiana Power, aka Tanya Power, 41, of Weston, helped run the financial affairs of the Newstar Enterprise – an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Power served as Vice President and part owner of Power Trading Inc., a Florida corporation used to control, operate and conceal the true nature of the Newstar Enterprise. From as early as 2009 through November 2019, Power served as Power Trading’s (and thus the Newstar Enterprise’s) bookkeeper. She oversaw Power Trading’s QuickBooks, filed its annual corporate registration documents, managed its bank accounts, paid salaries, helped wire money to foreign co-conspirators, and advised co-conspirators on how to evade law enforcement and conceal the true nature of monetary transactions. She routinely assisted in transferring money and making payments for the Newstar Enterprise. From January 2009 until November 2019, Power and her now deceased husband, Kenneth Power, made more than $2.2 million from the Newstar Websites.
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited, and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. The Newstar Enterprise used the recruited child-victims, to produce more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as six years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims – recruited from Ukraine, Moldova, and other nations in Eastern Europe – were particularly vulnerable due to their age and socio-economic status. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the conspiracy. To process, receive and distribute this money, Newstar Enterprise leaders fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case.
Name
Case Number
Charge(s)
Status
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentenced to 12.5 years in prison
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased: case dismissed
Plamen Velinov
8:21-cr-342-VMC-SPF
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Indicted
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
63 months in prison
Anthony Lee Kendall
8:21-cr-358-SCB-TGW
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Defendant deceased
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentenced to 18 months in prison
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations (HSI) in Tampa and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by the Criminal Division’s Money Laundering and Asset Recovery Section, HSI offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as IRS Criminal Investigation in Tampa.
Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; International Legal Assistance Center (IRC), North-Holland Unit; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs provided assistance securing foreign evidence and its Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Co-Conspirators Plead Guilty to Hacking and Retail Financing FraudRead the Press Release
RICHMOND, Va. – Six individuals pleaded guilty today to taking part in a conspiracy to defraud several retail financing providers in various ways, including computer hacking.
According to court documents, Mahmoud Aljibawi, 39, of Oak Forest, Illinois; Alaelddin Aljibawi, 36, of Orland Park, Illinois; Mohammad Jibawi, 27, of Tinley Park, Illinois; Wael Jibawi, 27, of Palos Heights, Illinois; Jamel Eljebawe, 48, of Tinley Park, Illinois; and Yanal Khrisat, 27, of Burbank, Illinois, conspired to defraud at least five retail financing providers of at least $1.6 million between April 2017 and January 2022. During that period, the defendants opened and maintained several retail furniture stores in and around the Chicago area, which they used to establish merchant relationships with the targeted financing providers. These relationships enabled defendants to submit financing applications in the names of customers. Instead, the defendants submitted applications in the names of identity theft victims then used the approved accounts to charge the financing providers for purchases that did not actually occur. Additionally, in February 2018, the defendants used social engineering to gain access to merchant accounts belonging to other businesses and change the bank accounts designated to receive payments owed those businesses by one retail financing provider. The defendants then submitted the affected businesses’ customer accounts for funding, causing the financing provider to deposit money that the defendants were not actually owed into accounts that they had opened and controlled. The defendants pleaded guilty today to the following offenses.
Defendant
Offenses
Sentencing Date
Mahmoud Aljibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 18, 2022
Alaelddin Aljibawi
Conspiracy to Commit Wire and Bank Fraud
Wire Fraud
October 18, 2022
Mohammad Jibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 18, 2022
Wael Jibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 19, 2022
Jamel Eljebawe
Conspiracy to Commit Wire and Bank Fraud
Wire Fraud
October 18, 2022
Yanal Khrisat
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 19, 2022
When sentenced, each defendant faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Kaitlin G. Cooke and Carla Jordan-Detamore are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-141.
Shepherd restaurant owner sentenced for COVID relief fraud; forfeited vintage vehicles bought with business loan aidRead the Press Release
BILLINGS — A Shepherd man who owns the Feedlot Steakhouse in Shepherd was sentenced today to three years of probation, ordered to pay restitution and forfeited vintage vehicles he admitted to buying with approximately $75,000 in a COVID-19 relief loan from the Small Business Administration (SBA) instead of using the money to help his business, U.S. Attorney Leif M. Johnson said.
Michael Eugene Bolte, 70, pleaded guilty in November 2021 to theft of government money, property or records, a misdemeanor, as charged in a superseding information.
U.S. District Judge Susan P. Watters presided. Judge Watters ordered $76,989 restitution to the SBA. In addition, the government previously seized and Bolte forfeited four vintage automobiles purchased with the funds: a 1916 Studebaker, a 1929 Franklin, a 1939 Ford Deluxe, and a 1941 Ford Super Deluxe.
The government alleged in court documents that on April 1, 2020, Bolte applied to the SBA for a business loan under the Economic Injury Disaster Loan (EIDL) program, authorized by the Coronavirus Aid, Relief and Economic Security Act. On May 24, 2020, Bolte signed a loan agreement for $74,800 and expressly acknowledged the EIDL loan would be used solely as working capital for his business. Bolte’s intent at the time of signing for the loan was to buy vintage automobiles as an investment, and not as working capital for his business. Eleven days after receiving the loan, Bolte wrote a check for $75,000 for the purchase of four vintage vehicles. The SBA would not have approved or funded Bolte’s loan had it known Bolte’s intended and actual use of the funds.
Assistant U.S. Attorney Michael A. Kakuk prosecuted the case, which was investigated by the IRS Criminal Investigation, with assistance from the SBA Office of Inspector General and the U.S. Attorney’s Office.
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
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Serial Robber Sentenced to 13 Years in Federal Prison for Two Armed RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced George William Dodson, age 31, of Capitol Heights, Maryland, to 13 years in federal prison, followed by three years of supervised release, for conspiracy, two counts of commercial robbery, and for using, carrying, and brandishing a firearm during and in relation to a crime of violence. Judge Grimm also ordered Dodson to pay restitution in the full amount of the victims’ losses, which is at least $24,277.66.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, on November 13, 2020, Dodson approached a private mail service delivery truck driven by his co-defendant. Prior to approaching the delivery truck, the co-defendant and Dodson had communicated regarding Dodson’s location and the two had discussed the co-defendant keeping particular products on her delivery truck. When Dodson approached the delivery truck, Dodson asked Victim 1, a seasonal employee for the mail delivery service, where phones and Xboxes were located in the vehicle. Dodson walked Victim 1 to the back of the vehicle where the co-defendant was located. Dodson removed a rifle-style firearm from his bag and pointed it at Victim 1. Dodson again asked for the location of the phones and gaming systems and threatened to shoot Victim 1. Dodson took a number of packages near where the co-defendant was standing and placed them into a black bag. Dodson then took the cellphones of Victim 1 and the co-defendant and threw them on the ground outside the truck and left the area. The stolen packages included two Apple iPhones and other items, worth approximately $11,700. That same afternoon, Dodson sold the stolen iPhones, and two other iPhones, through a co-conspirator for a total of $3,800. Dodson met the buyer and the co-conspirator at a gas station in Oxon Hill, Maryland to complete the transaction.
As detailed in his plea agreement, the next day, November 14, 2020, another co-conspirator entered a retail phone store and asked the three employees working behind the counter if they had iPhone 12s for sale. When the clerks confirmed that they did, Dodson then entered the business carrying an assault-style rifle. Dodson pointed the gun at the store employees (Victim 2, Victim 3, and Victim 4) and demanded that they give him iPhones and open the safe. Dodson and the co-conspirator forced the store employees into the back room where the safes were located. Victim 2 was told to open the safe and Victim 3 and Victim 4 were told to get on the ground. Dodson struck Victim 2 on the shoulder with the gun and told her to hurry up. Dodson took multiple phones from the safe and put them into an olive-green canvas bag, while the co-conspirator stood lookout at the door to the room. Dodson forced Victim 2 to get on the ground and finished loading the phones into his bag. Dodson and the co-conspirator left the store, got into a getaway car being driven by another co-conspirator, and drove away. The total value of the cellphones and electronic devices stolen from the retail store was approximately $12,527.66
One of the stolen phones contained a tracking device, which was activated. Law enforcement tracked the device to Oxon Hill and then to Virginia. Investigators stopped an individual who was carrying a black trash bag and recovered the cellphones and electronic devices stolen by Dodson. The individual said he had purchase the cellular and electronic devices from Dodson for $6,080 and had met Dodson in Oxon Hill to complete the transaction.
On January 28, 2021, at approximately 3:54 a.m. Dodson was found by law enforcement who were responding to a report of a man slumped over the wheel of a black Jaguar SUV in Hyattsville, Maryland. Dodson provided officers with a fraudulent driver’s license and the vehicle was found to have been reported stolen in Arlington County, Virginia. During a search of the vehicle, law enforcement seized a black Polymer 80 handgun, which is a privately manufactured firearm (PMF), with no serial number, also called a “ghost gun,” which was loaded with 16 rounds of ammunition. Dodson was later identified by a fingerprint scan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Rajeev R. Raghavan and Special Assistant U.S. Attorney Jared Engelking, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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San Diego Attorney Admits to Conspiring to Commit $500,000 of Tax Fraud with Former Chabad of Poway Rabbi GoldsteinRead the Press Release
Assistant U. S. Attorneys Valerie Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – April 13, 2022
SAN DIEGO – Elliot Adler, an attorney and founding partner of a boutique San Diego law firm, pleaded guilty in federal court today to conspiring with former Chabad of Poway Rabbi Yisroel Goldstein to commit tax fraud.
According to his plea agreement, Adler admitted that beginning at least as early as 2010 and continuing through October 2018, he participated in a so-called “90/10” tax scheme with Rabbi Goldstein. Specifically, Adler gave money to Rabbi Goldstein that purported to be a donation to Chabad of Poway. Goldstein then secretly funneled ninety percent of the funds back to Adler, keeping ten percent of the funds as his fee. None of the donated funds was actually given to the Chabad as a charitable donation.
Adler then falsely claimed that the fraudulent donations were tax-deductible on his tax returns, allowing him to reduce his personal income tax liability by approximately $500,000 (cumulatively) for tax years 2011 through 2017.
To accomplish the scheme, Adler and Goldstein communicated using coded language. Goldstein would refer to cash as “challah,” the source of the cash as “the baker,” and would invite co-conspirators to “wrap tefillin” when he proposed meeting to receive checks or deliver cash. For example, on Thursday, January 7, 2016, Goldstein texted Adler, “Good morning I got the challah[.] What time?” That same day, Adler replied via text message, “Monday morning 8am at shul or today before 12pm if you can come to my office.” Goldstein then replied, “Monday @8 is fine.” On Monday, January 11, 2016, Goldstein deposited a check from Adler for $30,000 payable to Chabad of Poway.
On or about December 29, 2017, Goldstein deposited two sequentially numbered checks from Adler, one for $180,000 and the other for $980,000. On Friday, January 5, 2018, Goldstein sent Adler a coded text message proposing that they “get together and wrap teffilin.” A few days later, on January 10, 2018, Goldstein wired approximately $1million to a wholesale and retail jeweler to purchase 246 Suisse Fortuna 1 oz. rectangular gold ingots, 246 Canadian Maple Leaf 1 oz. gold coins, and 246 American Eagle 1 oz. gold coins. On January 17, 2018, Goldstein sent another coded message to Adler asking him, “[w]hen can you come [i]n for a teffilin wrap? I’m ready for you.” Goldstein delivered the gold to Adler the next day. Adler nonetheless claimed on his 2017 tax returns that he had donated over $1 million to charity, fraudulently reducing his 2017 tax liability by approximately $447,000.
Adler and Goldstein took additional steps to conceal their scheme from authorities. On or about October 18, 2018, Goldstein told Adler that he was under investigation by the IRS and that he had been the subject of an undercover operation relating to tax evasion. Goldstein asked for Adler’s help to prove, falsely, that Goldstein, and not Adler, was in possession of the gold coins purchased with Adler’s purported donation. In the early hours of October 19, 2018, Adler arrived at Goldstein’s residence and returned the gold coins.
In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million-dollar tax-evasion scheme and other financial deceptions involving theft of public money. Rabbi Goldstein’s plea agreement outlined the fraud scheme with Adler.
Adler is the eleventh individual to plead guilty to crimes discovered in this investigation. Two additional individuals agreed to deferred prosecution agreements as a result of the investigation.
“Elliot Adler conspired to commit a $500,000 tax fraud through phony religious donations,” said U.S. Attorney Randy S. Grossman. “Tax fraud is a serious crime that directly impacts our communities, and the U.S. Attorney’s Office is committed to working with the IRS, FBI and our other law enforcement partners to bring those responsible to justice.” Grossman thanked the prosecution team and agents for their hard work on this case.
“This defendant was part of an elaborate, years-long financial scheme to fraudulently claim charitable contributions in an effort to avoid paying taxes,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our federal partners will continue to vigorously pursue those who abuse tax laws for their own financial gain - which also diminishes the public’s trust in charitable giving and hurts the organizations who rely on such donations.”
“For years, Mr. Adler shirked his duty to pay his fair share and then he doubled-down in a failed attempt to cover up his million-dollar tax fraud with Rabbi Goldstein,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s Los Angeles Field Office. “Tax revenue funds our critical infrastructure, our national defense and pays for social programs like health care, education and social security. A one percent increase or decrease in tax compliance equates to approximately $35 billion in tax revenue used to serve the American public. IRS Criminal Investigation is committed to rooting out tax schemes and working with our law enforcement partners to bring financial fraudsters to justice.”
Adler is next scheduled to appear at a sentencing hearing on July 11, 2022, before Judge Cynthia Ann Bashant.
SUMMARY OF CHARGES Case Number 22cr0821
Elliott Adler Age: 45 San Diego, CA
Conspiracy to Commit Tax Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Mendel Goldstein, Case Number 20CR2772-BAS Age: 63 Brooklyn, NY
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Stuart Weinstock, Case Number 21CR0042-BAS Age: 64 Escondido, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Jason Ellis, Case Number 21CR2200-BAS Age: 42 Poway, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Yehuda Hadjadj, Case Number 22CR148-BAS Age: 47 La Jolla, CA
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Igor Shtilkind, Case Number 20CR3955-BAS Age: 55 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
San Antonio Man Sentenced for Aggravated Identity Theft and Illegal FirearmRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to 65 months in prison for aggravated identity theft and being a felon in possession of a firearm.
According to court documents, on April 20, 2020, Alexander Kolberg, 35, was arguing with a woman at a motel in New Braunfels. As the argument intensified, a good Samaritan tried to de-escalate the situation when Kolberg pulled a firearm out, cocked it and headed in the direction of the good Samaritan. Law enforcement officers were called, found the firearm, and arrested Kolberg. After a consensual search of Kolberg’s personal items, officers found a debit card in someone else’s name, blank checks, and identifying information for other people, including a notebook containing other people’s names, Social Security numbers, bank accounts and email addresses.
Further investigation revealed Kolberg created multiple bank accounts with stolen identifying information that he used to deposit forged checks. In one instance, he deposited approximately $15,000 into an account using checks from a deceased victim. Kolberg also had previous felony convictions, making it illegal for him to possess a firearm.
On January 21, 2022, Kolberg pleaded guilty to one count of felon in possession of a firearm; one count of financial institution fraud; and one count of aggravated identity theft.
Kolberg has remained in federal custody since his arrest on November 17, 2020.
“This prosecution and the sentence imposed demonstrate our steadfast commitment to protecting our community and victims of crime,” said U.S. Attorney Ashley C. Hoff. “Kolberg not only escalated a verbal argument by reaching for an illegal firearm, but also exploited numerous victims by stealing their identities and forging checks that he deposited in their names.”
“Today’s sentencing sends a strong message to those who would defraud our financial institutions and victimize their customers,” said FBI Acting Special Agent in Charge Jason Hudson. “Financial fraud is a serious crime, and Alexander Kolberg will now have to face the consequences of his deceitful actions.”
“Protecting our community by ensuring that we aggressively work to hold all convicted felons accountable is a top priority of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),” said ATF Special Agent in Charge Fred J. Milanowski. “We stand with our partners in law enforcement to support any investigation that involves the illegal possession of firearms. This sentence is a reminder to other offenders that we are dedicated to this cause.”
The FBI and ATF, with valuable assistance from the New Braunfels Police Department and the Comal County Sheriff’s Office, investigated the case.
Assistant U.S. Attorney Eric Yuen 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.
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Registered Sex Offender from Mandan, ND, Sentenced to 40 Years in Federal Prison for Crimes Related to International Travel with Intent to Engage in Illicit Sexual Acts with a MinorRead the Press Release
BISMARCK – Interim United States Attorney Nicholas W. Chase announced that on April 12, 2022, U.S. District Court Judge Daniel M. Traynor sentenced Maurice Robert Thill, Age 60 from Mandan, ND, to 40 years in federal prison for the charges of Count 1 – Failure of Registered Sex Offender to Report International Travel (18 USC 2250(b)); Count 2 – Failure to Update Sex Offender Registration (18 USC 2250(a)); Count 3 - Possession of Materials Involving the Sexual Exploitation of Children (18 USC 2252(a)(4)(B) and 2252(b)(2)) Count 6 - Travel with Intent to Engage in Illicit Sexual Conduct with a Minor (18 USC 2423(b) and 2423(f)(1)); and Count 7 - Commission of a Felony Offense Involving a Minor by a Registered Sex Offender (18 USC 2260A). Judge Traynor also sentenced Thill to a Lifetime term of supervised release, $500 in special assessments, and $3,000 in restitution. Thill pleaded guilty to the above charges on August 12, 2021.
This matter came to the attention of law enforcement officials when in December 2019, Thill boarded a flight destined to Madagascar, Africa, without having previously notified sex offender registration authorities of his intention to engage in international travel as required by Federal law. Upon his return to the United States in January 2020, Thill was arrested on a related North Dakota State warrant for failing to update his sex offender registration. Thill’s cellular phone was seized and searched. Additional
investigation determined Thill had been communicating with minors in Madagascar about sexual activity using social media accounts he had failed to register as required by law. Authorities located multiple images involving the sexual exploitation of minors on the cell phone, including numerous images of Thill engaging in sexual acts with a minor in Madagascar, as well as communications referencing sexual activity with another minor in that country during a previous trip in 2019.
Thill was a registered sex offender based on his convictions under North Dakota law for Gross Sexual Imposition in 1990, 1991, and 2004. He was also civilly committed as a Sexually Dangerous Individual between 2011 – 2017. He had last updated his sex offender registration on 12-13-2019, three days prior to his flight to Madagascar.
"HSI and our law enforcement partners are watching closely for indicators of child exploitation throughout our community, one of which may be an offender not adhering to mandated reporting requirements," said acting Special Agent in Charge Jamie Holt of Homeland Security Investigations St. Paul "Today's sentencing is a result of those partnerships and the watchful eyes of all the dedicated agents and officers involved in both this case and the defendant’s previous cases. I commend them all for their hard work."
"This investigation is a great example of coordinated efforts by Federal, State and Local law enforcement officials and their determined efforts to protect the public from sexual predators," said Interim United States Attorney Nicholas W. Chase, "and this sentence effectively ends defendant’s ability to victimize children."
This case was investigated by the Homeland Security Investigations; United States Marshal’s Service; North Dakota Bureau of Criminal Investigation; Mandan Police Department; and the Diplomatic Security Service (State Department), and the case was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Rick Volk assigned to the case.
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Raytown Man Pleads Guilty to $10 Million Conspiracy to Distribute 1,000 Kilos of MethRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man pleaded guilty in federal court today to his role in a nearly $10 million conspiracy to distribute almost 1,000 kilograms of methamphetamine.
Michael B. Becher, 40, pleaded guilty before U.S. District Judge Greg Kays to participating in a conspiracy to distribute methamphetamine from Sept. 1, 2018, to Nov. 5, 2019.
By pleading guilty today, Becher admitted he was responsible for the distribution of at least 185 kilograms of methamphetamine. Becher also admitted that he purchased multiple pounds of methamphetamine on a daily basis.
Becher was arrested on Nov. 5, 2019, after he met a co-conspirator who was planning to travel on a private plane the same day to purchase 40 to 50 kilograms of methamphetamine in California. Becher paid his co-conspirator $1,000 to purchase methamphetamine. Law enforcement officers were conducting surveillance of the residence when they heard noises that sounded like firearms and people screaming. Officers entered the residence and arrested Becher and others.
Becher admitted that he had purchased 11 kilograms of methamphetamine from his co-conspirator in the prior two weeks, and had purchased two kilograms from a second source a week before his arrest. Becher paid $5,000 per kilogram for the methamphetamine and sold it for $6,300 per kilogram. Becher also admitted that in the past he had purchased four to five pounds of methamphetamine daily from a third source, and had once stolen 23 to 27 pounds of methamphetamine from that source. On one occasion, Becher said, he had more than 80 pounds of illegal drugs in his car.
Officers searched Becher’s BMW 650i and found approximately a half-pound (205.01 grams) of pure methamphetamine inside a grey backpack between the front seats of the vehicle. Becher told investigators the methamphetamine came from a fourth source, co-defendant Jesus Banuelos, Jr., 23, of Kansas City, Mo. Becher purchased one pound of methamphetamine from Banuelos the night before his arrest. Officers also found two plastic bags that contained a total of 1,547.06 grams of “imitation” methamphetamine, used as a cutting agent. Banuelos also has pleaded guilty and awaits sentencing.
Officers searched a storage unit Becher rented and found two M20 Super Bazooka rockets, an Anderson Manufacturing AM-15 5.56mm semi-automatic rifle with a magazine that contained 21 rounds of ammunition, a zip-lock bag that contained .1 gram of methamphetamine, and various rounds of ammunition.
Becher is among 15 defendants who have pleaded guilty in two separate indictments that resulted from this investigation.
Under the terms of today’s plea agreement, the government and Becher agree to a sentence of 20 years in federal prison without parole. Becher must also pay a money judgment not to exceed $9,961,839, representing all of the proceeds obtained as a result of the drug-trafficking conspiracy. The forfeiture is based on a conservative street price of $2,300 for 226 grams (a half-pound) of methamphetamine and the total conspiracy distribution of nearly 979 kilograms (978,859 grams) of methamphetamine. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bradley K. Kavanaugh and Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Missouri State Highway Patrol, and the Mid-Missouri Drug Task Force.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Principal Supplier and Drug Distributor of Two Boston-Area Cocaine Trafficking Rings Pleads GuiltyRead the Press Release
BOSTON – The main supplier and drug distributor of two Boston-area drug trafficking organizations (DTO) pleaded guilty yesterday to cocaine trafficking conspiracy.
Kenji Drayton, 41, of Boston, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 10, 2022.
Drayton was charged with 23 others in June 2020 as part of Operation Snowfall.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO – for which Drayton was a principal drug supplier – that was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight of the development and reduced the quality of life of the other residents.
The second part of the investigation targeted large-scale drug suppliers and their associates. It is alleged that the DTO continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Intercepted communications in spring 2020 revealed Drayton complained about drug supply shortages resulting from the pandemic. On one call, Drayton discussed a co-conspirator’s travels to California to obtain significant quantities of cocaine for the DTO.
Drayton served as one of the main up-the-chain drug suppliers and distributors within each of the identified DTOs. Drayton purchased, sold and distributed wholesale quantities of cocaine as part of each DTO and is estimated to have distributed a total of over 3.5 kilograms of cocaine.
Drayton is the second defendant to plead guilty in the Fidelis-Way related drug conspiracy, and the 11th defendant to plead guilty in the other charged drug conspiracy case. The remaining defendants have pleaded not guilty and are pending trial. One defendant, Derek Hart, remains at large.
The charge of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 20 years in prison, supervised release for at least three years up to life and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philipsburg woman admits lying to receive federal Social Security and health benefitsRead the Press Release
MISSOULA — A Philipsburg woman accused of lying about her living arrangements and assets in order to receive more Social Security Administration (SSA) benefits and other federal aid than she was entitled to receive admitted to charges today, U.S. Attorney Leif M. Johnson said.
Virginia Kathleen Pearson, 56, pleaded guilty to false statements to a government agency as charged in an indictment. Pearson faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
A plea agreement reached in the case calls for the government to seek dismissal of remaining counts of health care fraud, theft of government money and Social Security fraud at sentencing if the court accepts the agreement. Pearson also agrees to be responsible for full restitution of approximately $142,542.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Sept. 1 before U.S. District Judge Donald W. Molloy. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Pearson was released on conditions pending further proceedings.
The government alleged in court documents that in 2006, Pearson applied for Social Security Income (SSI) from the SSA and was approved for benefits in 2008. For an initial assessment, Pearson reported that her husband lived with her in Philipsburg, and she started receiving SSA payments in a reduced amount because of her husband’s income. In September 2008, Pearson reported that her husband had left her household. SSA recalculated Pearson’s SSI and she began receiving substantially larger payments. From November 2008 until about December 2020, Pearson received Cost of Living Adjustment letters notifying her that her payments would increase and of her obligation to report changes to her household composition and income. Pearson also began receiving Supplemental Nutrition Assistance Program funds and Medicaid based on her representations that her husband did not live with her or provide her with financial assistance.
The government further alleged that in August 2019, Pearson’s husband applied for Social Security retirement benefits, reported he was married to Pearson and lived at the same residence with her since 2000. An investigation found that Pearson said she lived alone, paid a monthly rent and signed a form stating that her husband lived at an address in Anaconda. The investigation found that Pearson and her husband jointly owned the Philipsburg residence, and that rent should not have been deducted from Pearson’s resources. Pearson also did not disclose additional bank accounts and vehicles in her and her husband’s name and possession.
Pearson initially denied her husband lived at her house but later admitted he stayed there about 50 percent of the time. Pearson also admitted she knew she had to report changes in her household to SSA. Pearson’s misrepresentations resulted in an overpayment of SSI in the amount of $101,136, SNAP funds totaling $23,203 and Medicaid reimbursement of $18,203.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the Social Security Administration Office of the Inspector General and Montana Department of Public Health and Human Services.
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Pharmacy Owner Sentenced to Prison for Health Care FraudRead the Press Release
A New York woman was sentenced today to 78 months in prison for defrauding health care programs, including more than $6.5 million from Medicare Part D plans and Medicaid drug plans.
According to court documents, Aleah Mohammed, 37, of Queens, pleaded guilty to one count of mail fraud, one count of health care fraud, and one count of conspiracy to commit health care fraud.
According to court documents, Mohammed was an owner and operator of five pharmacies: Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. Between 2015 and 2020, Mohammed used these pharmacies to defraud health care programs, including Medicare and Medicaid, by submitting claims for prescription drugs that were not dispensed, not prescribed as claimed, not medically necessary, or that were purportedly dispensed during a time when the pharmacy was no longer registered with the State of New York. The fraudulent claims included claims for expensive prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed used proceeds of the scheme to purchase herself luxury items, such as jewelry and a Porsche.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director Luis Quesada of the FBI's Criminal Investigative Division; and Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Trial Attorneys Andrew Estes and Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case.
Paul D. Weir, John R. Morgan, M.D., Care Plus Management, LLC, and Anesthesia entities pay $7.2 million to resolve kickback and False Claims Act allegationsRead the Press Release
ATLANTA – Paul D. Weir, John R. Morgan, M.D. and the company they created, Care Plus Management, LLC (“Care Plus”), along with 18 anesthesia entities that Care Plus owned and operated, agreed to pay $7.2 million to resolve allegations that they entered into kickback arrangements with referring physicians in exchange for the referral of the physicians’ patients for anesthesia services. Specifically, Weir and Morgan, through Care Plus, shared the revenue received for anesthesia services with the referring physicians, and provided subsidies for drugs, supplies and equipment to the referring physicians’ outpatient surgical centers.
“A physician’s selection of an anesthesia provider for the patients he or she treats should be motivated by the quality of the anesthesia provider rather than by the income the physician can generate for him or herself,” said U.S. Attorney Kurt R. Erskine. “By offering remuneration to physicians, an anesthesia provider improperly affects the physician’s decision-making process for selecting an anesthesia provider for his or her patients.”
“Health care providers using kickbacks to boost their profits threaten the impartiality of medical decision-making, the financial integrity of Medicaid, and the public’s trust in the health care system,” said Special Agent in Charge Tamala E. Miles, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to work with our law enforcement partners to uproot such fraud schemes and hold those responsible accountable.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phil Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our law enforcement partners to ensure that all medical providers properly follow health care rules and regulations.”
“Medical professionals who enter into arrangements solely to enhance their own profits undermine the public’s faith in our healthcare system,” said Georgia Attorney General Chris Carr. “By joining forces with our federal partners and those who bring these issues to our attention, our Medicaid Fraud Division is working vigorously to ensure that the integrity of our Medicaid program is not comprised in any way. On behalf of the people of Georgia, we remain vigilant in our efforts to uncover fraud or abuse in our publicly-funded healthcare programs and will continue fighting to protect taxpayer dollars.”
Anesthesia providers typically depend on hospitals and outpatient surgery centers for their income. If an anesthesia provider can secure an exclusive contract for anesthesia services with a center, it is guaranteed a steady stream of patient referrals during the term of the contract. As a result, anesthesia providers compete aggressively for these contracts.
The Government alleges that between 2012 and 2016, Weir and Morgan, through Care Plus, induced the physician owners of outpatient surgery centers to award these exclusive services agreements to them by offering them a partial ownership in the anesthesia entities that Care Plus had created to service their surgery centers. Under this arrangement, the physician owners received compensation in the form of a portion of the revenue from the anesthesia services.
The Government further alleges that during this same period, Weir, Morgan, Care Plus and its anesthesia companies subsidized the cost incurred by surgery centers for drugs, supplies and equipment in order to induce the physician owners of those centers to grant exclusive anesthesia services agreements to Care Plus’s anesthesia companies. HHS-OIG has longstanding concerns about the provision of free or below-fair-market-value goods or services to an existing or potential referral source. Indeed, free or below-fair-market-value goods or services may be used as a vehicle to disguise or confer an unlawful payment for referrals of Federal health care program business.
The Government alleges that these arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and caused the submission of false claims in violation of the False Claims Act, 31 U.S.C. § 3729, et seq.
This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Robert Douglas (the Relator) under the qui tam or whistleblower provisions of the False Claims Act. United States ex rel. Douglas, et al. v. Care Plus Management, LLC, et al., No. 1:16-cv-4439-WMR. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The Relator has received over $1.3 million from the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services Office of Inspector General and the Georgia Attorney General's Office Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorneys Neeli Ben-David and Mellori Lumpkin-Dawson, and Georgia Senior Assistant Attorney General Jim Mooney.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Owner of Queens Pharmacies Sentenced to 78 Months in Prison for Health Care FraudRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Aleah Mohammed was sentenced to 6.5 years in prison for carrying out multiple schemes to defraud health care programs, including obtaining more than $6.5 million from Medicare Part D plans and Medicaid drug plans. Mohammed pleaded guilty to one count of mail fraud, one count of health care fraud, and one count of conspiracy to commit health care fraud in April 2021.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Scott J. Lampert, Special Agent-in-Charge U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG); and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Through the Superdrugs Pharmacies that she owned and operated, the defendant was dispensing phantom prescriptions for fraud, stealing millions of dollars from the Medicare and Medicaid programs by submitting false claims for reimbursement,” stated U.S. Attorney Peace. “Today's sentence demonstrates there are consequences for those who choose to finance lavish lifestyles by diverting government resources from health care programs intended to help those truly in need.”
According to court documents, Mohammed was an owner and operator of five pharmacies: Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. Between 2015 and 2020, Mohammed utilized these pharmacies to engage in schemes that defrauded health care programs, including Medicare and Medicaid, by submitting claims for prescription drugs that were not dispensed, not prescribed as claimed, not medically necessary, or that were purportedly dispensed during a time when the pharmacy was no longer registered with the State of New York. The fraudulent claims included claims for expensive prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed and her family used proceeds of the scheme to purchase luxury items such as a Cadillac Escalade SUV, a Mercedes Benz sedan, a Porsche Turbo coupe, as well as jewelry and property in Queens and Pocono Pines, Pennsylvania.
The FBI and HHS-OIG are investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Andrew Estes and Patrick J. Campbell of the Criminal Division’s Fraud Section are in charge of the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Defendant:
ALEAH MOHAMMED (also known as “Abby”)
Age: 37
Queens, New YorkE.D.N.Y. Docket Nos. 18-CR-509 and 20-CR-581 (ENV)
Operators of Michigan Businesses Charged with Tax Conspiracy and Wire FraudRead the Press Release
A federal grand jury in Flint, Michigan, returned an indictment today charging Michael Angelo (Angelo), Hassan Kamal Fayad, Mirna Kamal Fayad, Cory Justin Mann, Thomas Reed Quartz and Rosina Angelo with conspiring to defraud the IRS and other crimes.
According to the indictment, from approximately 2011 to 2022, Angelo owned and operated a network of corporate entities that provided medical, legal and transportation services to automobile crash victims. To disguise his ownership of the entities, Angelo allegedly designated nominee owners over some of the entities. Hassan Kamal Fayad, Mirna Kamal Fayad, Mann, Quartz, Rosina Angelo and others allegedly helped Angelo operate the entities.
The indictment alleges that certain other individuals had access to Michigan traffic crash reports that were obtained through both lawful and unlawful means. Angelo allegedly directed these individuals to contact crash victims and offer them services provided by Angelo’s network of entities. The network of entities allegedly earned millions of dollars in revenues during the years Angelo owned and operated them, but Angelo did not report all of this income to the IRS. To conceal income earned by the entities, Angelo and his co-conspirators allegedly directed payments the entities received to bank accounts he owned and controlled. The indictment alleges Angelo used some of the funds to pay his personal expenses.
In addition to defrauding the IRS, Angelo, Hassan Kamal Fayad and Mann also allegedly defrauded third-party finance companies that had purchased the right to payments from some crash victims who had received services from entities they owned. According to the indictment, Angelo, Hassan Kamal Fayad and Mann sold to these finance companies the rights to certain payments due for invoices issued to patients and clients that actually had already been paid or settled. The three defendants then allegedly concealed some of this income from the IRS to avoid paying taxes on this income.
All six defendants are charged with one or more counts of conspiring to defraud the IRS. If convicted, each faces a maximum of five years in prison for each such count. In addition, if convicted: Angelo faces a maximum of 20 years in prison for each of five counts of wire fraud and a maximum of five years on each of two counts of tax evasion; Hasan Kamal Fayad faces a maximum of 20 years in prison for each of 13 counts of wire fraud and a mandatory minimum of two years in prison for one count of aggravated identity theft; and Mann faces a maximum of 20 years in prison for each of three counts of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
The FBI and IRS-Criminal Investigation division are investigating the case.
Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Woman Convicted for Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
ALEXANDRIA, Va. – A federal court convicted a Port Clinton, Ohio, woman yesterday on charges of production and distribution of child sexual abuse material.
According to court records and evidence presented at trial, during in 2020, Ashley Kolhoff, 22, produced sexually explicit images of the minor victim and posted them to a website dedicated to facilitating child exploitation. Over the course of multiple days, Kolhoff distributed the images of the victim to nine other members of the website while she engaged in a series of graphic conversations discussing the users’ desire to sexually abuse the victim.
Kolhoff faces a mandatory minimum of 15 years in prison when sentenced on July 12, 2022. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Leonie M. Brinkema announced the verdict.
Special Assistant U.S. Attorney Whitney Kramer and Assistant U.S. Attorney Seth Schlessinger are prosecuting the case.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (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
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-158.
Ohio Man Pleads Guilty to Wire Fraud in Exchange for Purported Hunting LeasesRead the Press Release
An Ohio man pleaded guilty to wire fraud for operating a scheme where he solicited payment in exchange for purported hunting leases he had no rights to sell.
According to court documents, throughout 2019, Nathanal L. Knox, 30, of Ohio, operated a scheme where he placed online advertisements for hunting leases supposedly available on several parcels of land in Ohio. The defendant in fact had no rights to sell leases to the properties in question. He placed the advertisements on at least 38 different Facebook pages, including “Hunt Florida,” “Ohio Hunting Lease,” “Bow Hunting PA,” and “Alabama Deer Hunters.”
In these advertisements, the defendant solicited payment in exchange for purported hunting leases. The prices charged ranged from $400 to $5,000. The defendant requested payment from prospective clients be made through PayPal, Walmart 2 Walmart, Money Gram, Western Union and Venmo. When individuals inquired further about the purported leases, the defendant would provide pictures of mature bucks that he falsely claimed had been harvested by former clients on the parcels in question. After receiving initial payments, the defendant would send contracts and instructions via email.
The defendant was arrested on Sept. 30, 2019, by the Fayette County Sheriff’s Office while attempting to collect the second half of a $5,000 fee owed by two victims from Florida. The victims had travelled to the supposed lease site to scout the area, and been confronted by the landowner, at which point they learned they had been defrauded. They then contacted the Sheriff’s office and set up the meeting with the defendant, at which point he was arrested. During this time, the Ohio Department of Natural Resources, Division of Wildlife had received multiple complaints from landowners as well. Upon receiving the complaints, investigators obtained a copy of the initial sheriff’s report and began searching for the remaining victims through social media posts.
The investigation, carried out by the Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service, involved search warrants on social media accounts, subpoenas on payment facilitators, interviews of victims, and interviews of the target and related subjects. In total, the defendant solicited payment from at least 68 different individuals, all of whom resided outside of Ohio. At least 59 of these individuals sent initial payments to the defendant, totaling over $34,000.
“The Department of Justice prosecutes fraud in many forms,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The defendant’s scheme not only cheated dozens of innocent people, but also put landowners and hunters in harm’s way. The Department is grateful to its law enforcement partners for stopping Knox before anyone was injured.”
“Unfortunately, individuals can find themselves being victimized in so many different ways,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “In this case, it was a fraudulent hunting lease scheme, which we shut down to ensure no other persons were taken advantage of by Knox. The 59 persons who sent an initial payment to this defendant are 59 victims too many.”
“Protecting sustainable hunting of America's wildlife resources is bedrock to our mission in the U.S. Fish and Wildlife Service,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Investigating those who prey on individuals attempting to hunt lawfully by defrauding them is our trusted responsibility to the American people.”
“We value our landowners and work hard to protect their interests as well as the interests of hunters. This case shows the results of that work,” said Kendra Wecker, Chief of the Ohio Department of Natural Resources, Division of Wildlife. “If you witness a wildlife violation in Ohio, we encourage you to call 1-800-WILDLIFE. Reports are kept anonymous, and you will be doing a great service to protect Ohio’s wildlife resources.”
Knox pleaded guilty to wire fraud. He is scheduled to be sentenced in the coming months and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service are investigating the case.
Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section; Special Assistant U.S. Attorney, J. Michael Marous for the Southern District of Ohio; and Assistant Attorney General Sally Smetzer Montell of Ohio are prosecuting the case.
Ocean View Bookkeeper Pleads Guilty to Defrauding Former Employer of More Than $1 MillionRead the Press Release
WILMINGTON, Del. –David C. Weiss, U.S. Attorney for the District of Delaware, announced that Joan Donald, 55, of Ocean View, pled guilty today in federal court to wire fraud and tax evasion arising from her theft of more than $1 million dollars from Dovetail, Inc., her former employer. Chief U.S. District Judge Colm F. Connolly accepted the plea.
According to court documents and statements made in open court, Donald worked as a bookkeeper for Dovetail, a high-end interior design company based in Bethany Beach. For more than 7 years, Donald perpetrated a long con against Dovetail and its owner, an elderly woman with ailing health, by using Dovetail’s funds to pay Donald’s personal credit card bills. When confronted with the fraud, Donald confessed that she had been embezzling money from Dovetail for years. A full forensic accounting conducted by the FBI revealed that Donald had stolen over $1 million.
As a result of her guilty plea, Donald faces up to 20 years in prison when sentenced on August 4, 2022. Sentences for federal crimes are typically less than the maximum penalties. Chief U.S. District Judge Connolly will impose sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss commented, “Dovetail’s story is a remarkable example of the American dream, a small business built from the ground up by a single mother of four. Month after month, year after year, however, Joan Donald breached the trust placed in her and used Dovetail as her own private ATM, effectively bankrupting the business and owner in the process. Thanks to the efforts of our law enforcement partners, Donald is now a convicted felon.”
“Today’s sentence has put an end to Joan Donald’s flagrant actions and complete disrespect of the law. For years Donald was a trusted insider who preyed on her employer by stealing funds to financially enrich herself” said FBI Special Agent in Charge Thomas J. Sobocinski. “Those who abuse their position of trust for their own financial greed will not be tolerated. The FBI and our partners will continue to uncover those committing fraud and causing harm to businesses and individuals for personal gain.”
“No matter what the source of income, all income is taxable,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “Joan Donald embezzled from her employer and then failed to report the misappropriated funds as income on her personal income tax returns. Dovetail directly suffered from Donald’s scheme, and all of the honest taxpayers were also indirectly victimized by Donald’s crimes.”
The FBI Baltimore Division’s Dover Resident Agency and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Christopher R. Howland is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-041-CFC.
Nicholas County Man Sentenced for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Nicholas County man was sentenced today to two years in prison for possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence.
According to court documents, a deputy with the Nicholas County Sheriff’s Department performed a lawful search of a vehicle in which Kevin Barnhouse, 41, of Summersville, was a passenger in November 2020. Barnhouse admitted he possessed a Smith and Wesson M&P Shield .40-caliber handgun and an American Tactical .22-caliber rifle with a high-capacity magazine found during the search.
Barnhouse admitted that he possessed the firearms and that he knew he was prohibited from possessing firearms as a result of a 2016 conviction in Nicholas County Magistrate Court for domestic assault on a family or household member.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Nicholas County Sheriff’s Department.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00201.
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New York Man Sentenced for Role in Fraud and Money Laundering SchemesRead the Press Release
BOSTON – A Nigerian national was sentenced yesterday in connection with his involvement in multiple criminal schemes, including the submission of fraudulent pandemic-related assistance claims using stolen personally identifiable information and money laundering.
Damilola Adepoju, 29, of Queens, N.Y., was sentenced by U.S. District Court Judge Patti B. Saris to four years in prison and ordered to pay $299,500 in restitution. Adepoju will be subject to deportation upon completion of his sentence. On July 21, 2021, Adepoju pleaded guilty to conspiracy to commit wire fraud, money laundering and aggravated identity theft.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA program provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits.
Between May 2020 and May 2021, Adepoju participated in a scheme to submit fraudulent PUA claims in multiple states, including Massachusetts, using the stolen personal information of others. Adepoju used fake identification cards and created financial accounts in the names of the victims in order to receive PUA funds. Adepoju also used a shoe retail business he operated to launder funds, funneling the money to other financial accounts inside and outside the United States. The investigation has identified more than $600,000 in actual or attempted losses associated with the scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the announcement. The Massachusetts Department of Unemployment Assistance provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit 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.
New York Man Pleads Guilty for His Role in a Computer Fraud Scheme that Targeted the ElderlyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced today that Mohammad Alam, age 50, of New York, pled guilty to a Bill of Information charging him with misprision of a felony before U.S. District Court Judge John W. deGravelles.
According to admissions made as part of his guilty plea, in December of 2016, Alam became involved in a computer technical support fraud scheme that targeted elderly victims throughout the United States including the Middle District of Louisiana. The scheme involved international participants, targeted over 30 victims, and took in approximately $340,000 in fraudulent proceeds.
Members of the scheme tricked victims into thinking their computers needed technical support, then offered to fix their computers for a fee. After the victims paid, a member of scheme would contact the victims seeking access to their bank accounts, claiming that the victims were entitled to a discount. With that information, a member of the scheme would manipulate the victims’ account balances to where the victims thought that they owed money to the computer company. The victims would then send money to accounts controlled by Alam and others.
Between December of 2016 and March of 2018, Alam utilized multiple bank accounts to receive the victims’ funds. He operated these accounts at the direction of an overseas associate, who instructed him how to distribute the funds, which he then sent to foreign and domestic accounts as directed.
Individuals like Alam assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some of these so-called money mules know they are assisting fraudsters, but others are unaware of the illegal scheme. Without money mules, many foreign fraudsters find it difficult to profit off U.S. victims. To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana.
The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information, please visit: https://www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
New York City Man Pleads Guilty to Unlawfully Possessing Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK – Stephon Williams, age 38, of Brooklyn, New York, pled guilty today to possessing ammunition as a previously convicted felon. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, and Timothy Walker, Port Director-Alexandria Bay Port of Entry, U.S. Customs and Border Protection (CBP).
Williams was previously convicted of Criminal Sale of a Controlled Substance in the Fourth Degree, a Class C felony in the State of New York. As part of his plea today, Williams admitted that on September 24, 2021, a vehicle he was driving was stopped and searched by Agents of United States Customs and Border Protection (CBP) near Alexandria Bay, New York. During the search, Williams was found in possession of a Glock-style, 9mm semi-automatic pistol, with no serial number, also known as a “ghost gun.” At the time the pistol was located by CBP agents, the pistol contained a 30-round high-capacity magazine with 25 rounds of ammunition. During the search of the vehicle Williams had been driving, agents also recovered over 19 grams of cocaine from a passenger in the vehicle, and approximately 5 grams of cocaine in Williams’s pocket. Approximately 100.2 grams of marijuana was recovered from the rear driver’s side seat of the vehicle.
At sentencing, currently scheduled for August 11, 2022, Williams faces up to 10 years in federal prison, a 3-year term of post-release supervision, and a fine of up to $250,000.00. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by the Buffalo Field Office of Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP), and is being prosecuted by Special Assistant U.S. Attorney Adrian LaRochelle as 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.
New Orleans Man Convicted at Trial on Gun and Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that PALMA JEFFERSON, JR., from the greater New Orleans area, was found guilty as charged of five (5) counts of drug trafficking and gun charges. United States District Court Judge Sarah S. Vance presided over the trial.
According to the evidence presented at trial, on April 30, 2019, Jefferson Parish Sheriff’s Office (“JPSO”) detectives executed a search warrant at JEFFERSON, JR.’s residence in Metairie, Louisiana. The previous day, detectives received an anonymous tip that an individual would be transporting multiple kilograms of cocaine from Baton Rouge to JEFFERSON, JR.’s residence. The detectives corroborated the tipster’s information and approached JEFFERSON, JR. outside his home, where he admitted to possessing a large amount of cocaine and a firearm inside his residence.
Detectives then executed a search warrant for the residence. Inside the residence, JPSO detectives seized more than 100 grams of heroin, 900 grams of cocaine, 1,900 grams of methamphetamine, and 600 grams of marijuana. Detectives also located a Lorcin, model L380, .380 caliber firearm. The firearm contained seven live cartridges, including one in the chamber.
In a post-arrest interview, JEFFERSON, JR. claimed ownership of all the seized contraband, including the firearm, from his apartment.
At the conclusion of a three (3) day trial, the jury found PALMA JEFFERSON, JR. guilty as charged of possession with the intent to distribute 100 grams or more of heroin, 500 grams or more of cocaine hydrochloride, 500 grams or more of methamphetamine, a quantity of marijuana, and being a felon in possession of a firearm, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B)(i), 841(b)(1)(B)(ii)(II), 841(b)(1)(A)(viii), 841(b)(1)(D), and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), respectively.
At sentencing, PALMA JEFFERSON, JR. faces a mandatory minimum term of imprisonment of 10 years up to a maximum term of life imprisonment, a $10,000,000 fine, and at least 5 years supervised release. Sentencing in this matter is scheduled for July 13, 2022.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (“PSN”) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Jefferson Parish Sheriff’s Office, the U.S. Department of Homeland Security, and the Federal Bureau of Investigation New Orleans Gang Task Force. It was prosecuted by Assistant United States Attorneys Andre Jones and Melissa Bücher of the U.S. Attorney’s Office.
New Jersey Man Sentenced to 87 Months for Cocaine OffensesRead the Press Release
ALBANY, NEW YORK – Ibn Spivey, age 31, of Elizabethtown, New Jersey, was sentenced today to 87 months in prison for possession with intent to distribute cocaine and cocaine base.
The announcement was made by United States Attorney Carla B. Freedman and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Spivey admitted that he possessed cocaine base and cocaine at a residence in Westport, New York, in Essex County. On November 3, 2020, DEA agents executing a search warrant found Spivey and his co-defendant, James Kerns, sitting across from a large brick of cocaine and drug packaging materials, along with a large knife and a video surveillance monitor. Near Spivey and Kerns was a lunchbox filled with cocaine base and powder cocaine. Spivey, sitting across from Kerns, had a bag of cocaine base tucked down his pants.
Chief U.S. District Court Judge Glenn T. Suddaby also sentenced Spivey to 4 years of supervised release following his incarceration. Spivey has been in custody since his arrest on November 3, 2019. The co-defendant, James Kerns, was sentenced last month to 110 months of incarceration following a four-day trial in July 2021.
This case was investigated by the DEA and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Troy Anderson and Katherine Kopita.
Monongalia County woman admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shelby Adams, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Adams, 26, pleaded guilty today to one count of “False Statement During Purchase of Firearm.” Adams admitted to making false statements to illegally purchase firearms in April 2021 in Marion County.
Adams faces up to 10 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.