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Monday 7 March 2022
Pennsylvania Man Sentenced to Federal Prison for Bank Robbery in Eastern North CarolinaRead the Press Release
WILMINGTON, N.C. – A Harrisburg, Pennsylvania man was sentenced today to 40 months in prison and three years of supervised release for robbing a bank in Ayden, North Carolina. On December 7, 2021, Alexis Baez Morales, 40, pled guilty to the charges.
According to court documents and other information presented in court, Circe Nena Baez, Morales’s co-conspirator, entered the Southern Bank in Ayden on July 24, 2019, and handed a note to the bank teller demanding money. The note also threatened that that Baez’s children were being held hostage. The bank teller gave $2,494 to Baez who then left the bank. After leaving the bank, Baez met with Morales who was the get-away driver for the robbery. Law enforcement agents later verified that no children were held hostage as part of the robbery.
Baez and Morales also robbed three other banks in the same manner during July 2019. Those robberies occurred in Pennsylvania, Delaware, and Hamlet, North Carolina. The Federal Bureau of Investigation and local police departments were able to track Baez and Morales to Charlotte, North Carolina and arrested them.
Baez previously pled guilty to the bank robbery and was sentenced to 42 months in prison, followed by three years on supervised release.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation, the Ayden Police Department, the Hamlet Police Department, the Delaware State Police, the Carlisle Borough Police and the Charlotte Mecklenburg Police Department investigated the case and Assistant U.S. Attorneys Bryan Stephany and John Parris 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. 4:20-cr-00072-M.
North Carolina Man Charged with Wire Fraud, Securities Fraud, and Money Laundering in Connection with Ponzi SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was charged today for defrauding at least 25 people by operating a Ponzi scheme, U.S. Attorney Philip R. Sellinger announced.
David Schamens, 64, of Greensboro, North Carolina, is charged by complaint with one count each of wire fraud, securities fraud and money laundering. He is scheduled to have his initial court appearance in Newark federal court on March 8, 2022.
According to the criminal complaint and statements made in court:
Starting in 2014, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading LLC, TradeStream Analytics LTD, Tradedesk Financial Group Inc. and others, under the promise of annual rates of return of 12 percent to 30 percent. In 2019, Schamens began to solicit investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. In each instance, Schamens directed investors to wire funds directly or to transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Once invested, Schamens often moved victim funds through several different bank accounts before he ultimately used the funds for some non-investment related purpose. Schamens took several steps to keep his customers’ trust, including: sending false account statements; posting false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sending false tax documents reporting earnings that did not exist.
Schamens allegedly misappropriated at least $6.8 million from at least 25 different individuals, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including the purchase of a house, payments for a luxury car, and other personal expenses.
The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 25 years in prison and a fine of $1 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges. He also thanked the U.S. Securities Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter and Anthony Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.
The charges and allegations in the complaint are merely accusations, and he is presumed innocent unless and until proven guilty.
Nigerian National Sentenced to Prison for Role in Romance Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. – Augustine Amechi, 24, a Nigerian national, was sentenced today to one year and a day in federal prison for receipt of stolen money. Amechi pleaded guilty to the charge in November 2021 and as part of his plea agreement agreed to pay at least $192,762.19 in restitution.
According to court documents and statements, Amechi was involved from at least 2018 to March 11, 2021 with others in a fraud scheme that took place in Huntington and elsewhere. Amechi lived in Huntington and attended Marshall University during his involvement in the fraud scheme. Amechi admitted that romance fraud victims were convinced to send money for a variety of false and fraudulent reasons to bank accounts controlled by him in Cabell County. The money received by Amechi was sent through bank wire transfers, Western Union, MoneyGram, money orders and cashier’s checks. Amechi admitted to receiving approximately $108,601.92 directly deposited into his bank accounts from victims, over $150,000 in cash mailed in packages to his Huntington residence and over $140,000 in deposits from Zelle. Amechi further admitted that he obtained stolen money from at least 37 different fraud victims, and after he received the money, he would keep some of it for himself and forward some of the stolen money to others. Amechi transferred more than $15,000 to bank accounts in Nigeria.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police, and the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys R. Gregory McVey and Kathleen Robeson handled the prosecution.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
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. 3:21-cr-0069
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New York Man Sentenced to Three Years of Probation for Passing Altered Postal Money Orders and TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ANTOINE MERCHANT, age 33, of New York, New York, was sentenced on March 3, 2022 by U.S. District Court Judge Carl J. Barbier of the Eastern District of Louisiana to three (3) years of probation for conspiracy to pass altered U.S. Postal money orders, passing altered U.S. Postal money orders and possessing stolen U.S. government property.
According to court records, MERCHANT and a co-defendant, Anthony Smalls, travelled from New York to Louisiana in October of 2019 to cash stolen U.S. Postal money orders that had been altered to show amounts worth hundreds of dollars. MERCHANT and Smalls cashed two such postal money orders in Kenner and Metairie, LA. When arrested, the defendants also possessed 58 U.S. Postal money orders that they had stolen from an Ascension Parish U.S. Post Office the day before.
In addition to probation, MERCHANT was ordered to pay restitution to the U.S. Postal Service in the amount of $5,675.00, and a mandatory special assessment fee of $400.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, along with assistance from the Louisiana State Police - Criminal Investigations Department, Jefferson Parish Sheriff’s Office and Ascension Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
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New York Man Sentenced to Four Years in Prison for Role in Bank FraudRead the Press Release
CAMDEN, N.J. – A Bronx, New York, man was sentenced today to 48 months in prison for his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, U.S. Attorney Philip R. Sellinger announced.
Lamar Melhado, 32, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to Count 1 of an indictment charging him with conspiracy to commit bank fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the banks’s call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center.
The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts. Hill-Birdsong was indicted in March 2021 on conspiracy to commit bank fraud, bank fraud and aggravated identity theft; those charges remain pending. The charges and allegations contained in the indictment against Hill-Birdson are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Melhado to five years of supervised release and ordered restitution of $604,096 and forfeiture of $151,024.
U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
New Jersey Man Convicted of Threatening Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A New Jersey man was convicted by a federal jury today of threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced.
Frank Monte, 51, of New Jersey, was convicted following a one-week trial before U.S. District Judge John Michael Vazquez in Newark federal court of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce.
According to documents filed in the case and the evidence at trial:
On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer.
On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him.
On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.
The count of threatening to murder a federal law enforcement officer based on the July 2019 threat carries a maximum penalty of 10 years in prison. The two counts of threatening to assault a federal law enforcement officer based on the October 2019 threats each carry a maximum penalty of six years in prison. The two counts of transmitting a threat in interstate commerce based on the October 2019 threats each carry a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s conviction. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore and Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
National Laboratory Pays Nearly $4.8 Million to Settle Allegations it Overcharged Connecticut MedicaidRead the Press Release
U.S. Attorney Leonard C Boyle, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, and Connecticut Attorney General William Tong today announced that REDWOOD TOXICOLOGY LABORATORY, INC. has entered into a civil settlement agreement with the federal and state governments and has paid nearly $4.8 million to resolve allegations it overcharged the Connecticut Medicaid program for certain laboratory services.
Redwood Toxicology Laboratory (“RTL”), with a headquarters located in Santa Rosa, California, provides laboratory-testing services, specifically urine drug testing services, for substance abuse patients enrolled in the Connecticut Medicaid program. The government alleges that RTL violated Connecticut’s so-called “Most Favored Nation” regulation (Conn. Agencies Regs. § 17b-262-649), which provides, in essence, that clinical laboratories should not seek payment from Connecticut Medicaid for services at a price that is higher than the lowest price the laboratory charges for the same or similar services from other third parties. Specifically, the government alleges that RTL regularly accepted payments from Connecticut Medicaid for certain urine drug tests at the rate of $38 per test, while at the same time charging other third parties from $2 to $10.50 for the same or substantially similar urine drug tests.
To resolve the governments’ allegations, RTL agreed to pay $4,797,578, which covers claims submitted to the Connecticut Medicaid program from January 1, 2015, through and including February 24, 2018.
“We are committed to ensuring that public funds used for substance abuse treatment are properly spent, and clinical laboratories that charge government health care programs a higher price than they charge to other providers for the same or similar services will be held accountable,” said U.S. Attorney Boyle.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Monaca Man Distributed Cocaine to Lower Level Dealers and Drug UsersRead the Press Release
PITTSBURGH, PA - A resident of Monaca, Pennsylvania, pleaded guilty in federal court to charge of conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine, United States Attorney Cindy K. Chung announced today.
Cadee Akins, Sr., age 49, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Akins distributed cocaine from November 2017 to September 2020 to multiple individuals, who in turn distributed cocaine to lower level dealers and drug users. During the investigation, law enforcement recovered an “owe sheet” from a residence used by Akins, which identified his conspirators and money they owed him. Additionally, law enforcement also recovered from Akins 2 kilograms of cocaine and approximately $50,600.00 during two separate traffic stops.
Judge Cathy Bissoon scheduled sentencing for July 13, 2022, at 10:00 am. The law provides for a maximum of life in prison, a fine of $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Akins to the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania Office of Attorney General, Beaver County Anti-Drug Task Force, and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Akins, Sr.
Methamphetamine Trafficker Sentenced to 27 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Victor Manuel Hernandez (22, Wimauma) to 27 years in federal prison for a narcotics conspiracy involving methamphetamine, heroin, and cocaine, as well as for being a felon in possession of multiple firearms. Hernandez had pleaded guilty on July 27, 2021.
According to court documents, between on or about July 18, 2019, through February 12, 2021, Hernandez conspired with others to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 100 grams or more of a mixture and substance containing a detectable amount of heroin, and a mixture and substance containing a detectable amount of cocaine. On July 18, 2019, a confidential source (CS) spoke with Hernandez on the phone and ordered a kilogram of methamphetamine. The two agreed to meet that day and the CS traveled to an apartment complex and parked. Soon thereafter, a Dodge Charger pulled in next to the CS’s vehicle. As agents approached the car, Hernandez got out of the car and attempted to flee but was ultimately apprehended. Upon searching the car, agents found approximately 978 grams of methamphetamine. Hernandez then took agents to his residence, where he led them to additional drugs: approximately 800 grams of heroin and approximately 4 kilograms of additional methamphetamine. Hernandez also had 13 guns and assorted ammunition inside the house.
While Hernandez was released on bond, law enforcement learned that he was again trafficking in narcotics. Subsequently, a search warrant was executed at Hernandez’s house, and inside, agents found approximately 31 kilograms of methamphetamine, 756 grams of cocaine, and approximately 523 grams of heroin. Investigators also found two rifles, both of which belonged to Hernandez.
Hernandez had been previously convicted of a felony, including aggravated battery with a deadly weapon. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Sarasota County Sheriff’s Office, the Sarasota Police Department, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
Methamphetamine Dealer Is Sentenced to 10 YearsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. today sentenced a methamphetamine dealer to 120 months in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Christian Allen Garcia, 30, of West Covina, California, was also ordered to serve five years of supervised release following his prison term.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and statements made in court, in 2018, law enforcement identified Garcia as a member of a drug trafficking organization responsible for distributing bulk quantity of narcotics in Western North Carolina, including the greater Charlotte area. On March 27, 2018, law enforcement conducted a traffic stop of the vehicle where Garcia was a passenger and Garcia’s co-defendant, Henry Danny Collao, was the driver. Over the course of the traffic stop, law enforcement recovered nearly a kilogram of methamphetamine from the rear passenger seat. Law enforcement also found a loaded firearm in Garcia’s pants pocket and a second loaded gun in Collao’s right waistband. Officers also located within the vehicle different bank transaction receipts from various U.S. banks totaling over $75,000 in drug proceeds.
On July 8, 2021, Garcia pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Collao was previously sentenced to 151 months in prison for his role in the drug trafficking scheme.
The investigation was handled by DEA and CMPD. Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Mercer County Man Sentenced to Nine Years in Prison for Illegal Possession of WeaponRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man with prior felony convictions was sentenced to 108 months in prison for unlawfully possessing a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced today.
Omar Kennedy, 40, of Trenton, previously pleaded guilty by before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Thompson imposed the sentence on March 4, 2022.
According to documents filed in this case and statements made in court:
On May 23, 2019, the Trenton Police Department was called to a residence in Trenton, New Jersey on the report of a domestic disturbance. When officers arrived, the female resident reported that Kennedy pointed a firearm at her and threatened to shoot and kill her. While law enforcement officers were at the location, Kennedy phoned the female victim and repeated his threat to shoot her. Officers located Kennedy in the immediate area of the home, and he was found in possession of a firearm loaded with eight rounds of ammunition.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division; officers with the Trenton Police Department, under the direction of Director Steve E. Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Criminal Division in Trenton.
Member of the Karon Foster Carjacking Crew Pleads Guilty to Conspiracy to Participate in RacketeeringRead the Press Release
Baltimore, Maryland – Malik Evans, age 25, of Baltimore City, Maryland, pleaded guilty today to conspiracy to participate in racketeering activity.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from April 2019 to August 2019, Evans and co-defendant Karon Foster age 27, of Baltimore, Maryland were members of an enterprise that engaged in a pattern of deadly racketeering activity, including a series of armed carjackings, armed robberies, attempted armed robberies, and the pawning of stolen goods.
Specifically, between April 19, 2019, and August 8, 2019, Evans participated in four of thirteen carjackings committed by the enterprise. In all four of the carjackings in which Evans participated, members of the enterprise brandished firearms. Other co-conspirators, not including Evans, participated in an armed carjackings in which one victim was shot and killed. Two other victims were killed during street robberies; another victim was paralyzed as a result of an armed street robbery.
Members of the conspiracy not only promoted their activities on social media, but they also shared the proceeds of their exploits. Members also concealed enterprise activities by hiding, destroying, or disposing of evidence.
On December 20, 2021, co-defendant Karon Foster was sentenced to 40 years in federal prison for conspiracy to participate in racketeering activity, a carjacking conspiracy, and for aiding and abetting a carjacking resulting in death.
Evans and the government have agreed that, if the Court accepts the plea agreement, Evan will be sentenced to 17 years in federal prison. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for May 31, 2022 at 10 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon Moore 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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McLaughlin Man Indicted for Sexual Abuse of Children and Witness TamperingRead the Press Release
United States Attorney Dennis Holmes announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Witness Tampering.
Jerome Moses Goodhouse, Jr., age 30, was indicted on January 12, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, a lifetime of supervised release, $100 to the Federal Crime Victims Fund, and $5,000 to the Domestic Trafficking Fund. Restitution may also be ordered.
The Indictment alleges that in 2017 at McLaughlin, Goodhouse sexually abused two minor victims. He also knowingly intimidated and threatened one of his victims to not report what he had done to law enforcement.
The charges are merely accusations and Goodhouse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Goodhouse was released on bond pending trial. A trial date was set for April 19, 2022.
Martinsburg man sentenced to more than 12 years for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Ian Andre Carr, of Martinsburg, West Virginia, was sentenced today to 151 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Carr, 50, pleaded guilty in September 2021 to one count of “Distribution of Fentanyl and Heroin.” Carr admitted to distributing the substances in February 2018 in Berkeley County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kasem Damone Humphrey, of Martinsburg, West Virginia, was sentenced today to four years of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Humphrey, 37, pleaded guilty in September 2021 to one count of “Distribution of Heroin.” Humphrey admitted to distributing heroin in October 2017 in Jefferson County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Marshall County woman admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Brooke Janine Hayes, of Moundsville, West Virginia, has admitted to methamphetamine charges, United States Attorney William Ihlenfeld announced.
Hayes, 39, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine” and to one count of “Distribution of Methamphetamine within 1,000 feet of a Protected Location.” Hayes admitted to working with others to distribute methamphetamine in Marshall County from February to April 2021, as well as selling methamphetamine near Golden Towers in Marshall County in March 2021.
Hayes faces up to 20 years of incarceration and a fine of up to $1,000,000 for the conspiracy count and faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for the distribution near a protected location count. 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 Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Man Sentenced to Five Years in Federal Prison for Throwing Explosive Device into Suburban Chicago RestaurantRead the Press Release
CHICAGO — A man has been sentenced to five years in federal prison for using an explosive device to damage a suburban Chicago restaurant.
On June 1, 2020, DIEGO VARGAS, 27, of Aurora, Ill., threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions. The restaurant was closed, and no injuries were reported.
In addition to the restaurant incident, Vargas on the previous night tried to steal cash from an ATM in Aurora. Vargas struck the ATM with a baseball bat and a metal pole from a street sign in an unsuccessful attempt to pry it open.
U.S. District Judge Elaine E. Bucklo imposed the five-year prison sentence Thursday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Naperville Police Department and Aurora Police Department provided valuable assistance. The government was represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.
Mallinckrodt Agrees to Pay Nearly $234 Million to Resolve Allegations Related to Price IncreasesRead the Press Release
BOSTON – Pharmaceutical company Mallinckrodt ARD, LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc.), has agreed to pay $233,707,865 as part of a settlement to resolve allegations that from 2013 until 2020, it knowingly underpaid Medicaid rebates that resulted from its price increases for the drug H.P. Acthar Gel (Acthar), in violation of the False Claims Act. In March 2020, the government filed a complaint detailing these allegations and how Mallinckrodt unlawfully required Medicaid programs to foot the bill for an increase in price from $50 per vial to $28,000 per vial, as though a new version of Acthar came on the market in 2013, when in fact, it did not.
Mallinckrodt’s payment of approximately $233.7 million includes approximately $123.6 million to the United States and approximately $110.1 million to several states, pursuant to the terms of separate settlement agreements Mallinckrodt has or will enter into with those states. In October 2020, Mallinckrodt filed for bankruptcy protection and the United States Bankruptcy Court for the District of Delaware has approved Mallinckrodt’s settlement with the government.
In connection with the settlement, Mallinckrodt also entered a five-year corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (OIG). The CIA contains unique drug price transparency provisions and monitoring provisions focused on Medicaid rebate and patient assistance program activities. The CIA also requires Mallinckrodt to establish a risk assessment program, implement executive recoupment provisions and obtain compliance related certifications from company executives and board members.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid coverage of the manufacturers’ drugs. The statute requires pharmaceutical companies to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases outpacing inflation. These rebates are calculated as the difference between the drug’s current price and the price the drug would have had if its price had increased at the rate of inflation since 1990, or the date when the drug was first marketed, whichever date is later.
The government alleges that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. Acthar is a specialty drug that has been approved for various indications, including multiple sclerosis and infantile spasms. Specifically, the government alleges that Mallinckrodt and its predecessor, Questcor, began paying rebates for Acthar in 2013, as if Acthar was a new drug first marketed in 2013. In doing so, Mallinckrodt and Questcor ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar.
The government also alleges Mallinckrodt received an unlawful and improper windfall as a result of these practices, because the company raised the price of Acthar significantly – from approximately $50 per vial in 2001 to $40,000 per vial today. In particular, the government alleges that Acthar’s price had already risen to over $28,000 per vial by 2013. Mallinckrodt’s decision to disregard all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. The government further alleges that the Centers for Medicare and Medicaid Services repeatedly warned Mallinckrodt against this practice in 2016, 2017, 2018 and 2019. Mallinckrodt, however, refused to take corrective action. Under the settlement agreement, Mallinckrodt admits and agrees that there is only one Acthar, that FDA approved Acthar in 1952 and that Acthar was first produced, distributed and marketed prior to 1990.
“Mallinckrodt illegally reduced the amounts it paid to state Medicaid programs by improperly calculating the rebates it owed,” said United States Attorney Rachael S. Rollins. “Today’s settlement vindicates the interests of the American taxpayer by ensuring that no pharmaceutical manufacturer can illegally boost its profits at the expense of state Medicaid programs, and the people and families those programs serve. This company unlawfully siphoned money out of the Medicaid program which poor people depend on for their medical care.”
“The Department is committed to protecting tax-payer funded health care programs and their ability to supply reasonably priced pharmaceutical products to elderly and vulnerable populations” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will pursue those who seek to undermine these protections.”
“The Medicaid Drug Rebate Program relies on drug manufacturers to report accurate pricing information in order to calculate appropriate Medicaid rebates,” said Phillip Coyne, Special Agent in Charge with the Office of Inspector General of the U.S. Department of Health and Human Services. “Taxpayers rightly expect that pharmaceutical companies will play by the rules rather than falsely report prices to boost profits. Any drug company shirking that responsibility can expect to be held accountable for its deception.”
“Drug company schemes to undermine Medicaid and Medicare payment rules harm these critical taxpayer-funded health programs,” said Chief Counsel Gregory E. Demske of the Office of Inspector General. “Under this CIA, OIG will scrutinize Mallinckrodt’s Medicaid rebate practices and Mallinckrodt will be required to provide advance public notice of price increases for Acthar and other drugs.”
“This settlement resolves allegations that Mallinckrodt cheated the Medicaid program, and ultimately taxpayers, out of hundreds of millions of dollars, by exploiting a system that was set up to keep a check on rising drug prices to ensure that our most vulnerable citizens are able to receive medical treatment,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It also illustrates how the FBI and our partners will not allow pharmaceutical companies to dodge their obligations in order take advantage of federal health insurance programs at the expense of those who need them the most.”
The government’s allegations were originally alleged in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in this case.
U.S. Attorney Rollins; Principal Deputy AAG Boynton; HHS-OIG Chief General Counsel Demske; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Evan Panich of Rollins’ Affirmative Civil Enforcement Unit; Raquelle Kaye of Rollins’s Asset Recovery Unit; and Trial Attorneys Augustine Ripa and Michael Hoffman of the Justice Department’s Civil Division handled the matter.
Mallinckrodt Agrees to Pay $260 Million to Settle Lawsuits Alleging Underpayments of Medicaid Drug Rebates and Payment of Illegal KickbacksRead the Press Release
Pharmaceutical company Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc. (Questcor)) (collectively Mallinckrodt), has agreed to pay $260 million to resolve allegations that Mallinckrodt violated the False Claims Act by knowingly: 1. underpaying Medicaid rebates due for its drug H.P. Acthar Gel (Acthar); and 2. using a foundation as a conduit to pay illegal co-pay subsidies in violation of the Anti-Kickback Statute for Acthar. In 2019 and 2020, respectively, the government filed separate complaints detailing these allegations. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the U.S. Bankruptcy Court for the District of Delaware, which approved the settlement on March 2.
“The department is committed to protecting tax-payer funded health care programs and their ability to supply reasonably priced pharmaceutical products to elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will pursue those who seek to undermine these protections.”
In connection with the settlement, Mallinckrodt also entered a five-year corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA contains unique drug price transparency provisions and monitoring provisions focused on Medicaid rebate and patient assistance program activities. The CIA also requires Mallinckrodt to establish a risk assessment program, implement executive recoupment provisions, and obtain compliance related certifications from company executives and board members.
“Mallinckrodt illegally reduced the amounts it paid to state Medicaid programs by improperly calculating the rebates it owed,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Today’s settlement vindicates the interests of the American taxpayer by ensuring that no pharmaceutical manufacturer can illegally boost its profits at the expense of state Medicaid programs, and the people and families those programs serve. This company unlawfully siphoned money out of the Medicaid program which poor people depend on for their medical care.”
“When pharmaceutical companies manipulate Medicare Part D by covering patient copays, the whole structure of the Part D program is undermined,” said U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “Our office is committed to maintain the financial integrity of taxpayer-funded programs like Medicare, and therefore we will continue to pursue fraud actions like this so that Medicare Part D and other federal healthcare programs remain viable for those who rely on the benefits.”
“Drug company schemes to undermine Medicaid and Medicare payment rules harm these critical taxpayer-funded health programs,” said Chief Counsel Gregory E. Demske of HHS-OIG. “Under this CIA, OIG will scrutinize Mallinckrodt’s Medicaid rebate practices and Mallinckrodt will be required to provide advance public notice of price increases for Acthar and other drugs.”
“This settlement resolves allegations that Mallinckrodt cheated the Medicaid program, and ultimately taxpayers, out of hundreds of millions of dollars, by exploiting a system that was set up to keep a check on rising drug prices to ensure that our most vulnerable citizens are able to receive medical treatment,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI, Boston Division. “It also illustrates how the FBI and our partners will not allow pharmaceutical companies to dodge their obligations in order take advantage of federal health insurance programs at the expense of those who need them the most.”
Medicaid Drug Rebate Claims
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases outpacing inflation. These rebates are calculated by comparing the drug’s Base Date Average Manufacturer Price (AMP), which is the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later, to its current price.
In its complaint filed on March 3, 2020, the government alleged that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. According to the complaint, Mallinckrodt and its predecessor Questcor began paying rebates for Acthar in 2013 as if Acthar was a “new drug” first marketed in 2013, rather than a drug that had been approved since 1952. Allegedly, this practice meant the companies ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar from 2013 until 2020. In particular, the government alleged that Acthar’s price had already risen to over $28,000 per vial by 2013, and therefore ignoring all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. Under the settlement agreement, Mallinckrodt admitted that Acthar was not a new drug as of 2013 but rather was approved by the U.S. Food and Drug Administration and marketed prior to 1990, and agreed to correct Acthar’s base date AMP and that it will not change the date in the future.
Kickback Claims
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment. Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
In its complaint filed on June 5, 2019, the government alleged that Mallinckrodt knowingly used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt had a foundation set up to induce Medicare-reimbursed purchases of Acthar, and used the subsidies to counteract doctor and patient concerns about the drug’s high cost.
The settlement provides for Mallinckrodt’s payment of approximately $234.7 million to resolve the Medicaid rebate allegations and approximately $26.3 million to resolve the kickback allegations. Of the amount allocated to the Medicaid rebate claims, Mallinckrodt will pay approximately $123.6 million to the United States and approximately $110.1 million to the participating Medicaid States, pursuant to the terms of separate settlement agreements Mallinckrodt has or will enter into with those states. In October 2020, Mallinckrodt filed for bankruptcy protections and this settlement with the government has been approved for payment by the U.S. Bankruptcy Court for the District of Delaware.
The allegations resolved by the settlement agreement were originally brought in cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in these cases, which are captioned: United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc.; United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc.; and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc. The Strunck whistleblowers will receive approximately $4.9 million from the recovery for the kickback allegations and the Landolt whistleblower will receive approximately $24.7 million from the federal recovery for the Medicaid rebate allegations.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
These matters are being handled by Trial Attorneys Augustine Ripa, Michael Hoffman and Dan Schiffer of the Civil Division’s Commercial Litigation Branch, Fraud Section; Assistant U.S. Attorney Evan Panich of the District of Massachusetts; and Assistant U.S. Attorneys Colin Cherico, Paul Koob and Matthew Howatt of the Eastern District of Pennsylvania. HHS-OIG assisted with the matters.
The claims asserted by the United States are allegations only and there has been no determination of liability.
MOX Services Agrees to Pay $10 Million to Resolve Allegations of Knowingly Presenting False Claims to Department of Energy for Non-Existent Construction MaterialsRead the Press Release
MOX Services LLC, formerly known as CB&I AREVA MOX Services LLC (MOX), located in South Carolina, has agreed to pay $10 million to resolve allegations that it violated the False Claims Act by knowingly submitting to the U.S. Department of Energy (DOE) false and fraudulent invoices for non-existent materials and receiving improper kickbacks.
MOX was the prime contractor for the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE Savannah River Site in Aiken, South Carolina. The United States alleged that MOX was obligated to confirm receipt and acceptance from subcontractors of any materials before MOX approved and submitted claims to DOE for those materials. One of those subcontractors — Wise Services Inc. (Wise) — submitted to MOX hundreds of invoices charging millions of dollars for materials that did not exist. MOX presented those false invoices to DOE. The United States alleged that by knowingly failing to follow its own policies and procedures, MOX violated its obligation to uncover that the Wise invoices were for non-existent materials. The United States also alleged that MOX employees received kickbacks from Wise employees involved in the scheme.
“It is vital that contractors on federally funded projects provide sufficient oversight of the companies they hire to ensure that the government is billed only for legitimate goods and services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will pursue those who knowingly fail to prevent the submission of false claims.”
“Federal contractors cannot charge for non-existent materials and accept kickbacks in connection with federal contracts,” said U.S. Attorney Corey F. Ellis for the District of South Carolina. “To do so is to defraud the American taxpayer. The District of South Carolina will use all available remedies to hold those contractors accountable.”
“Contractors to the Department of Energy cannot turn a blind eye to the fraudulent behavior of their subcontractors,” said Inspector General Teri L. Donaldson Department of Energy. “These behaviors undermine the Department of Energy’s programs and operations. The Inspector General’s office will continue to work with our partners at the Justice Department and the U.S. Attorney’s Offices to hold those who defraud the government accountable.”
The civil settlement includes the resolution of claims against MOX brought under the False Claims Act by the United States in the case captioned United States v. CB&I AREVA MOX Services LLC and Wise Services Inc., No. 19-cv-444 (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the DOE Office of Inspector General and the National Nuclear Security Administration.
The matter was handled by Fraud Section Attorneys Don Williamson and Rory Skaggs and Civil Division Chief James Leventis and Assistant U.S. Attorneys Johanna Valenzuela and Sheria Clarke with the U.S. Attorney’s Office for the District of South Carolina.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Lowrider Gang Leader Sentenced to over 20 Years in Federal Prison for His Conduct within a Racketeering and Drug ConspiracyRead the Press Release
DAVENPORT, Iowa – Mario Herrera, age 31, of Davenport, was sentenced on March 4,2022, to 20 years and 10 months in federal prison for his role in a drug and racketeering conspiracy that encompassed four attempted murders and a stabbing at a local bar.
According to court documents, Herrera was sentenced after pleading guilty to Racketeering Conspiracy and Conspiracy to Distribute Cocaine. In April 2021, charges were announced for 15 members and associates of the Lowriders, a Davenport-based street gang. The charges reflect criminal conduct underlying various crimes, including attempted murder in aid of racketeering, drug trafficking, tampering with witnesses, knowing transfer of a handgun to a juvenile, lying to the grand jury, use of persons under 18 years of age in drug operations, and a multitude of firearms charges.
In addition to Mario Herrera, United States District Court Judge John A. Jarvey previously sentenced the following members or associates of the Lowrider Street Gang:
• Jacob Trujillo pleaded guilty to two counts of Attempted Murder in Aid of Racketeering, Racketeering Conspiracy, and Use and Carry a Firearm During and in Relation to a Crime of Violence and was sentenced to 20 years in federal prison.
• Carmelo Reyes pleaded guilty to Attempted Murder in Aid of Racketeering, Racketeering Conspiracy, and Use and Carry a Firearm During and in Relation to a Crime of Violence and was sentenced to 17 years and 6 months in federal prison.
• Adan Herrera pleaded guilty to Racketeering Conspiracy, Assault with a Dangerous Weapon in Aid of Racketeering, and Possession of a Firearm in Furtherance of Drug Trafficking and was sentenced to 16 years and 8 months in federal prison.
• Austin Nichols pleaded guilty to Racketeering Conspiracy and Assault with a Dangerous Weapon in Aid of Racketeering and was sentenced to 10 years in federal prison.
• Antonio Herrera pleaded guilty to Racketeering Conspiracy and Assault with a Dangerous Weapon in Aid of Racketeering and was sentenced to 8 years and 9 months in federal prison.
• Angel Mora pleaded guilty to Racketeering Conspiracy, Possession of a Firearm in Furtherance of Drug Trafficking, and Use of Persons Under 18 years of Age in Drug Operations and was sentenced to 8 years and 4 months in federal prison.
• Cody Herrera pleaded guilty to Racketeering Conspiracy and Prohibited Person in Possession of a Firearm and was sentenced to five years in federal prison.
• Tevin Lira pleaded guilty to Racketeering Conspiracy and Felon in Possession of a Firearm and was sentenced to 3 years and 6 months in federal prison.
• Kerri Joanne Reitz pleaded guilty to Accessory After the Fact and was sentenced to three years in federal prison.
• Eduardo Herrera pleaded guilty to Felon in Possession of Ammunition and was sentenced to 14 months in federal prison.
• Arnoldo Herrera pleaded guilty to Prohibited Person in Possession of a Firearm and Ammunition and was sentenced to 1 year and 1 day in federal prison.
• Andres Arriaga, pleaded guilty to Tampering with a Witness and False Declaration Before a Grand Jury and was sentenced to time served.
Jose Miguel Pena also pleaded guilty to Racketeering Conspiracy, Assault with a Dangerous Weapon in Aid of Racketeering, and Felon in Possession of a Firearm. Pena is scheduled to be sentenced May 17, 2022. Five other Lowrider members were charged in the Scott County District Court with violations of Iowa law, including intimidation with a dangerous weapon, willful injury, criminal gang participation, and drug-related offenses. Previously, two other Lowrider members or associates were charged and sentenced for federal firearms violations.
• Zacharia Allen Clark was sentenced to 16 years and 8 months of imprisonment after pleading guilty to being a prohibited person in possession of ammunition related to an incident in which he shot at another person in the parking lot of a Davenport nightclub.
• Alejandro Francisco Herrera, Jr. was sentenced to one year and 4 months in federal prison after pleading guilty to being a prohibited person in possession of a firearm and possession of a controlled substance.
As a result of this investigation, twenty-two Lowrider Street Gang members or associates have been charged with crimes.
According to court documents, the Lowrider Street Gang was a local gang that operated mostly out of Davenport. The purpose of the gang was to distribute drugs, obtain money, and maintain respect in the neighborhood. Lowriders were expected to retaliate against their perceived rivals, such as the Latin King and West Side Mafia street gangs. The Lowrider Street Gang was organized by tiers of memberships; the highest rank was referred to as the “Shot-Callers,” then the middle-level ranking was “Older Homies.” The lowest level were the “Shortys,” who typically consisted of younger members, including juveniles, who had not yet put in “work” to gain a higher ranking. Lowrider members define work as dealing drugs, conducting robberies and shootings, or otherwise assaulting rivals. The Lowriders conducted their affairs through a series of rules and policies and enforced discipline through a system of violations in which members physically beat those members of the gang who violated the rules. The Lowriders also initiated new members through the practice of causing them to endure physical assaults conducted by members of the gang at various gang-related gatherings.“I am thankful and proud of the courageous work our officers do in the City of Davenport every day,” stated Davenport Police Chief Paul Sikorski. “The amount of work by our investigators that went in to putting together this very complex case has been noticeably impactful in Davenport and in the Quad Cities. The unique and critical partnership we have with our prosecutors from the United States Attorney’s Office and our Quad Cities area law enforcement agencies, combined with the pure determination and commitment by everyone involved with this case, has made Davenport a safer place.”
“Whether by individual defendants, or by criminal street gang, violent crime has no place in communities like Davenport,” stated United States Attorney Richard D. Westphal. “The crimes committed in furtherance of this criminal enterprise, that included attempted murder, drug trafficking, transferred firearms to juveniles, possession and use of firearms, were extremely dangerous. We are grateful to the Davenport Police Department, and our state and federal partners, for the hard work to successfully prosecute these members of the Lowriders street gang.”
United States Attorney Richard D. Westphal, of the Southern District of Iowa made the announcement. The case was investigated by the Davenport Police Department with assistance from the Federal Bureau of Investigation, Drug Enforcement Administration, Iowa Division of Criminal Investigations, Bettendorf Police Department, Moline Police Department, and the Scott County Sheriff’s Office.
Lower Brule Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis Holmes announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Robert Stricker, age 48, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Stricker was convicted of Abusive Sexual Contact with a Minor in 2013. As a result of this conviction, he is required to register as a sex offender. It is alleged that between September 2021 and February 2022, Stricker, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Stricker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Stricker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lowell Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Worcester for drug and firearm offenses.
Pablo L. Rivera, 55, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison, followed by three years of supervised release. On May 14, 2021, Rivera pleaded guilty to one count of being a felon in possession of a firearm and one count of possession with intent to distribute heroin.
Rivera was arrested on state charges on Feb. 8, 2019, after a motor vehicle stop in which law enforcement recovered a loaded P-38 Walther 9mm firearm, six rounds of ammunition, drug paraphernalia, and a plastic baggie containing approximately 10 grams of heroin from the vehicle Rivera was driving. Rivera is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison, including a prior conviction for being a felon in possession of a firearm.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorneys Lucy Sun and Greg Friedholm of Rollins’ Worcester Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Louisville Man Sentenced to over 18 Years for Trafficking Methamphetamine in Knox CountyRead the Press Release
LONDON, Ky. – Courtney Leo Pierce, 32, of Louisville, was sentenced late Friday to 220 months in federal prison, by U.S. District Judge Robert E. Wier, for methamphetamine trafficking.
A federal jury found Pierce guilty of possessing with the intent to distribute 50 grams or more of actual methamphetamine, in October 2021. Trial testimony revealed that Pierce had been supplying Knox County drug dealers with methamphetamine that he brought in from Louisville. On April 2, 2020, the Knox County Sheriff’s Department stopped Pierce’s vehicle and recovered over 300 grams of methamphetamine. Because Pierce engaged in this conduct after having already been convicted of a serious violent felony, his sentence was enhanced.
Under federal law, Pierce must serve 85 percent of his 220-month prison sentence and will be under the supervision of the U.S. Probation Office for ten years following his release.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; Mike Smith, Knox County Sheriff; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DEA and the Knox County Sheriff’s Office, with the assistance of the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
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Louisville Man Sentenced to 50 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
LOUISVILLE, KY – A Louisville man was sentenced last week to 50 years in prison followed by a life term of supervised release for production and possession of child pornography. There is no parole in the federal system.
According to court documents, Curtis Bradley, 63, sexually assaulted a minor female victim on more than 100 occasions over the course of several years beginning when the victim was only 11 years old. Bradley recorded the abuse with cameras positioned in his bedroom and via his cell phone. Bradley’s wife would transport the minor victim to his residence for the purpose of his engaging in sexual contact with the victim in return for Bradley providing his wife with cash and drugs.
“We will continue to aggressively prosecute predators who sexually exploit the most vulnerable individuals in our communities – the children,” stated United States Attorney Michael A. Bennett. I commend the outstanding work of AUSAs Zimdahl and Tieke, HSI Nashville, LMPD, and our partnership with the Jefferson County Commonwealth’s Attorney’s Office. As a result of a combined effort, the defendant faces a very significant prison sentence without the chance of parole.”
“Because of the outstanding efforts of our HSI agents, working with their law enforcement partners, an individual guilty of exploiting vulnerable children will serve a lengthy federal prison sentence for his unspeakable actions,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI will continue to prioritize these types of investigations to protect children and remove these offenders from our communities where they can no longer victimize others.”
The United States Department of Homeland Security, Homeland Security Investigations (HSI) and Louisville Metro Police Department (LMPD) investigated the case.
Assistant U.S. Attorneys Stephanie Zimdahl and Christopher Tieke prosecuted the case.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.
Long Island Medical Doctor Pleads Guilty to Medicare Billing Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Morris Barnard, a medical doctor practicing in Great Neck, New York, pleaded guilty to health care fraud in connection with billing Medicare for millions of dollars for medical procedures that were never actually performed. The proceeding was held before United States Magistrate Judge Anne Y. Shields.
Breon Peace, United States Attorney for the Eastern District of New York, Scott Lampert, Special Agent-in-Charge, Health & Human Services and Michael Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.
“With today’s guilty plea, Dr. Barnard admits to committing a multi-million dollar fraud on the Medicare program by billing for procedures he did not perform,” stated United States Attorney Peace. “By claiming to render services to disabled and other vulnerable patients, Dr. Barnard not only pocketed taxpayer funds that were intended to help beneficiaries in need, he also betrayed his oath for profit. We will continue to work closely with our law enforcement partners to protect the integrity of taxpayer-funded health care programs.”
“Money that’s allocated for Medicare-approved services, and fraudulently paid out to providers who don’t actually perform these services, is a crime that’s ultimately paid for by taxpayers themselves. Our office is committed to rooting out this type of fraudulent activity and maintaining the integrity of our government-sponsored health care programs,” stated FBI Assistant Director-in Charge Driscoll.
“The defendant’s actions diverted scarce taxpayer funds from the Medicare program for personal enrichment, while taking advantage of vulnerable individuals,” stated HHS-OIG Special Agent-in-Charge Lampert. “Working with our law enforcement partners, HHS-OIG will continue to ensure that providers that bill federally funded health care programs do so in an honest manner, and criminals will be held accountable.”
From October 2015 through February 2020, Dr. Barnard submitted over $3 million in billings to Medicare for colonoscopy and gastroenterological procedures that were not done. Most of these billings indicated that the services were rendered to disabled beneficiaries, who were living in residential group homes. Medicare reimbursed approximately $1.4 million of these false claims, none of which Dr. Barnard was entitled to receive.
The government’s case is being prosecuted by Assistant United States Attorneys Erin Argo, Charles P. Kelly and Madeline O’Connor of the Long Island Criminal Division.
The Defendant:
MORRIS BARNARD
Age: 58
Great Neck, New YorkE.D.N.Y. Docket No. 21-018 (GRB)
Las Vegas Felon Sentenced to over Eight Years in Prison for Drug Trafficking and Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS – A Las Vegas man who distributed methamphetamine and unlawfully possessed a firearm was sentenced today to eight years and two months in prison, to be followed by four years of supervised release.
In August 2021, a federal jury found Donnell Henry (36) guilty of one count of distribution of methamphetamine and one count of felon in possession of a firearm. U.S. District Judge Jennifer A. Dorsey presided over the four-day trial and sentencing hearing.
According to court documents and evidence presented at trial, on October 29, 2019, Henry distributed 50 grams or more of methamphetamine, a Schedule II controlled substance. Three weeks later, on November 19, 2019, he possessed a multi-caliber pistol (and unlawfully sold that pistol). Henry is prohibited by law from possessing a firearm due to prior felony convictions in California state court for first degree burglary and maintaining a place to sell narcotics.
Co-defendant Ozzie Morrison pleaded guilty in May 2021. He was sentenced to two years in prison on August 11, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF, DEA, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Melanee Smith and Kimberly Sokolich prosecuted the case.
This case was part of Operation Nora, a joint investigation by the ATF, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department’s Central Intelligence Unit, focusing on the Sherwood Forest and Naked City areas in Las Vegas. Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Inmate at Maryland Correctional Institution Jessup Sentenced to over Four Years in Federal Prison for Participating in a Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced inmate Jerrard Bazemore, a/k/a Tic, age 36, to 51 months in federal prison, followed by three years of supervised release, for a racketeering conspiracy charge related to his participation in a scheme to smuggle contraband into the Maryland Correctional Institution Jessup (MCIJ), including heroin, fentanyl, Suboxone, and K2 (a synthethic cannabinoid) in exchange for bribe payments. The sentence was imposed on March 4, 2022.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
As detailed in his plea agreement, Bazemore conspired with other inmates, individuals outside the facility who obtained and packaged contraband, and with Correctional Dietary Office (CDO) Patricia McDaniel, to smuggle narcotics and other contraband into MCIJ in exchange for bribe payments.
In recorded phone calls over a contraband cell phone, Bazemore was heard discussing with outside facilitators receiving payments and obtaining drugs to be provided to CDO McDaniel. On August 30, 2017, after phone calls with outside facilitators to obtain contraband and arrange to get it to McDaniel, Bazemore sent a message to McDaniel stating, “I love you. Don’t forget it.” Bazemore told McDaniel to put the contraband in her shoes. The following day, Bazemore confirmed to his outside facilitator that the contraband had successfully entered MCIJ.
On September 4, 2017, McDaniel informed Bazemore that another correctional officer had discovered their relationship and discussed how to make sure that Bazemore would keep his prison job in the kitchen, where McDaniel worked. On September 16, 2017, in a recorded phone call over a contraband cell phone, Bazemore informed McDaniel that he had a $300 bribe payment for her. McDaniel told Bazemore that she met with one of Bazemore’s facilitators the night before to obtain contraband.
On September 17, 2017, McDaniel was stopped in the MCIJ park lot in possession of a purple balloon containing heroin, fentanyl, Suboxone, and K2, that she intended to smuggle into MCIJ for Bazemore.
Patricia McDaniel, Correctional Dietary Officer, age 29, of Baltimore, pleaded guilty to the racketeering conspiracy and is awaiting sentencing.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 78 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Erek L. Barron commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Barron thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Huntsville Man Sentenced to 10 Years in Prison for CarjackingRead the Press Release
HUNTSVILLE, Ala. – A federal judge on Friday sentenced a Huntsville man for carjacking, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Abdul K. Kallon sentenced Deondre Cleveland Day, 22, to 120 months in prison. Day pleaded guilty in August 2021 to one count of carjacking, and one count of conspiracy to discharge a firearm during a crime of violence.
According to the plea agreement, on September 24, 2019, Day and a juvenile co-defendant robbed the victim, stealing his car keys, guns, and cell phone. During the robbery, the victim was struck in the head with a handgun. Day and the juvenile then fled in the victim’s car. Later, when Huntsville Police spotted the car, Day led officers on a high-speed chase and shots were fired from the vehicle, striking the windshield of a Huntsville Police vehicle several times. Day and the juvenile then fled on foot.
“Combating violent gun crimes is a priority for my office and this district,” U.S. Attorney Escalona said. “Today’s sentence shows the seriousness of this offense, and I am grateful for the tireless efforts of our partner agencies on this case.”
“I want to thank the members of the North Alabama Violent Crime Task Force, and particularly our partners with the Huntsville Police Department, U.S. Marshals Gulf Coast Regional Fugitive Task Force, and the Madison County Sheriff’s Office for their work in bringing Day to justice,” SAC Sharp said. “The FBI will continue to work closely with our partners to address violent crime in north Alabama.”
FBI investigated the case along with the Huntsville Police Department, North Alabama Violent Crime Task Force, U.S. Marshals Gulf Coast Regional Fugitive Task Force, and the Madison County Sheriff’s Office. Assistant U.S. Attorney Russell Penfield prosecuted the case.
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Huntington Man Pleads Guilty to Federal Fentanyl ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal fentanyl charge.
According to court documents and statements made during the hearing, Ian Wyatt Justice, 20, admitted that on March 16, 2021, Huntington Police officers were conducting a drug investigation and observed him enter a residence located on Charleston Avenue in Huntington. The officers executed a search warrant at the residence on that date and Justice, who was present just prior to the search, was arrested. During the search, officers seized a number of items including fentanyl, three firearms, and items used to prepare fentanyl for distribution. Justice admitted that he intended to distribute the fentanyl and that he had been selling fentanyl in Huntington in the months leading up to the search.
Justice pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and faces five to 40 years in federal prison when he is sentenced on June 13, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
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. 3:22-cr-00009.
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Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Scott Allen Greenwalt, of Moorefield, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Greenwalt, 49, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Greenwalt admitted to having more than five grams or more of methamphetamine in April 2021 in Hardy County.
Greenwalt faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Georgia man who used COVID relief funds to buy Pokemon card sentenced to prisonRead the Press Release
DUBLIN, GA: A Laurens County, Georgia man has been sentenced to federal prison after admitting he lied to obtain a COVID-19 disaster relief loan, then used a large portion of the money to buy a collectible trading card.
Vinath Oudomsine, 31, of Dublin, Ga., was sentenced to 36 months in prison after pleading guilty to one count of Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also fined Oudomsine $10,000, ordered him to pay restitution of $85,000, and to serve three years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Congress appropriated funding to assist small businesses struggling through the challenges of a global pandemic,” said U.S. Attorney Estes. “Like moths to the flame, fraudsters like Oudomsine took advantage of these programs to line their own pockets – and with our law enforcement partners, we are holding him and others accountable for their greed.”
As described in court documents and testimony, starting on or around July 2020, Oudomsine applied to the Small Business Administration (SBA) for an Economic Injury Disaster Loan (EIDL) ostensibly for an “entertainment services” business in Dublin that Oudomsine claimed had 10 employees and gross revenues of $235,000 in the 12 months preceding the COVID-19 pandemic. As a result of fraudulent representations on Oudomsine’s application, the SBA deposited $85,000 into Oudomsine’s bank account on Aug. 4, 2020. Oudomsine later used $57,789 of the funds to purchase a Pokémon trading card. Oudomsine agreed to forfeit the Pokémon card – “Charizard” – as part of the prosecution.
“The SBA Office of Inspector General continues to safeguard taxpayer dollars by protecting SBA programs from fraudsters seeking to gain access to pandemic assistance through deception,” said SBA OIG’s Special Agent in Charge Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“COVID-19 disaster relief loans are issued by the government to help businesses struggling to survive during a pandemic, not to use for trivial collectible items,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “This sentence highlights the FBI’s commitment to aggressively pursue anyone who would abuse taxpayer dollars and divert them from citizens who desperately need them.”
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.
The Federal Bureau of Investigation, the Small Business Administration Office of Inspector General, and an investigator from the U.S. Attorney’s Office investigated the case. Oudomsine was prosecuted for the United States by Assistant U.S. Attorneys Jonathan A. Porter and Patrick J. Schwedler, and Asset Recovery Unit Chief Xavier A. Cunningham handled forfeiture in the case.
Former Public Utility Executives Indicted for Conspiring to Steal Millions of Dollars from the City of Jacksonville Upon the Sale of the Jacksonville Electric AuthorityRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging former Jacksonville Electric Authority (JEA) Chief Executive Officer (CEO) Aaron Zahn (42, Jacksonville Beach) and former JEA Chief Financial Officer (CFO) Ryan Wannemacher 40, Santa Rosa Beach) with conspiring to steal and obtain by fraud funds from the City of Jacksonville, which would have been generated from the sale of the JEA, Jacksonville’s municipal electric and water utility company. If convicted on all counts, Zahn and Wannemacher each face up to 25 years in federal prison.
According to the
indictment , Zahn and Wannemacher worked together to devise a lucrative bonus plan known as the Performance Unit Plan (PUP) that would have paid millions of dollars to Zahn, Wannemacher, and others had JEA been sold during the Invitation To Negotiate (ITN) in 2019. Ultimately, once information began to develop about the true nature of the PUP and the certainty of significant bonuses paid from the net proceeds to the City of Jacksonville from the sale of JEA, the JEA Board stopped the ITN process on December 24, 2019. During the ITN, Zahn and Wannemacher worked together to craft the PUP formula using JEA’s financial statements and net position to ensure that they would receive millions of dollars when JEA was sold. The indictment alleges that Zahn and Wannemacher made material misrepresentations about and otherwise hid the true nature of the PUP from the JEA Board, members of the Jacksonville City Council, other JEA executives, and members of the public. During the ITN, Zahn crafted minimum requirements for the sale of JEA that would appeal to the JEA Board, members of City Council, and the public and, at the same time, ensure that the PUP bonus plan would pay out millions of dollars to holders of PUP units, the overwhelming majority of which would have been available to Zahn, Wannemacher, and certain others, had JEA been sold.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and investigators from the State Attorney’s Office for the Fourth Judicial Circuit. It will be prosecuted by Assistant United States Attorney Tysen Duva.
Former Postal Manager Sentenced for Drug ChargesRead the Press Release
BOSTON – A former U.S. Postal employee was sentenced today in connection with stealing mail believed to contain controlled substances.
Shawn M. Herron, 47, of Whitman, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 18 months in prison and three years of supervised release. Herron was also ordered to pay forfeiture in the amount of $4,000. On Oct. 22, 2021, Herron pleaded guilty to one count of conspiracy to possess cocaine with intent to distribute and one count of theft of mail by a postal employee.
Beginning in September 2005, Herron was employed with the Postal Service where he served as Supervisor of Customer Service at the Canton Post Office and later as Manager of Customer Services at the Fall River Post Office (FPO).
Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents. Specifically, Herron profiled priority parcels from Puerto Rico and West Coast states as well as parcels flagged by law enforcement as potentially containing illegal narcotics and then removed them from the mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the FPO. After their arrival Herron located the parcels and brought them to his personal office space, where he stole the narcotics for distribution and sold them for personal gain. Over a period of about a year and half, Herron stole at least 15 packages from the mail. One of the stolen packages contained 271 grams of suspected cocaine, which Herron sold to an apparent drug dealer for $4,000. Herron intended to use the proceeds from the narcotics he stole for personal expenses, including renovations for his home.
United States Attorney Rachael S. Rollins; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, and Charles Dell-Anno, of Rollins’ Major Crimes Unit, prosecuted the case.
Former Hialeah Police Sergeant Pleads Guilty to Three Civil Rights OffensesRead the Press Release
Miami, Florida – A former Hialeah Police Department Sergeant has pleaded guilty to three counts of depriving women of their civil rights under color of law by sexually abusing them.
As part of his change of plea, Jesus Manuel Menocal Jr., 34, of Miami admitted that he kissed a woman and caused her to touch his exposed penis; had a second woman, who was in psychiatric crisis, perform oral sex on him; and coerced a third woman, who was walking alone at night, into submitting to oral and vaginal sex. While not directly related to the offenses to which he pleaded guilty, Menocal also admitted to bringing a fourth female into a Hialeah Police Department building and ordering her to remove her shorts and underwear, causing her to expose her buttocks to him. Menocal admitted that he was on-duty and in uniform during all of these acts, abusing his official authority.
“Menocal sexually exploited the very people he swore to protect,” said U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida. “He betrayed his oath as a police officer and cast a dark shadow over the outstanding work done by the fine law enforcement professionals who serve our communities. Such egregious civil rights violations will not be tolerated.”
“We will not stand by idly when law enforcement officials abuse their power and position to sexually exploit and harm women,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to vigorously investigate and prosecute government officials who use the power of their office to sexually abuse and harm vulnerable people in their communities. We hope that this conviction sends a strong message to survivors of law enforcement sexual misconduct, that their allegations will be investigated and taken seriously.”
“Jesus Menocal is a predator who disgraced the badge he once wore by using his status as a police officer to sexually abuse women,” said Assistant Special Agent in Charge John J. Bernardo of FBI Miami. “His actions are depraved and serve only to diminish the hard work and professionalism of the vast majority of South Florida law enforcement officers who follow their oath of office and whose conduct is above reproach.”
Menocal is scheduled for sentencing on May 12, at 2:00 p.m. before U.S. District Judge Kathleen M. Williams. He faces a statutory maximum sentence of three years in prison.
The case was investigated by the FBI with assistance from the Hialeah Police Department. The case is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Monica K. Castro of the Southern District of Florida, and Trial Attorney Kyle Boynton and Special Litigation Counsel Samantha Trepel of the Civil Rights Division of the Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20822.
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Former Chief of Staff to Convicted Fall River Mayor Sentenced for False StatementsRead the Press Release
BOSTON – The former Chief of Staff to the now-convicted former Fall River Mayor Jasiel Correia III was sentenced today in federal court in Boston for making false statements in connection with lying to federal authorities about her salary-kickback arrangement with the former Mayor.
Genoveva Andrade, 50, of Somerset, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to time served, one year of supervised release. Andrade was also ordered to pay a $50,000 fine. Earlier in the hearing, Andrade pleaded guilty to making a false statement.
“Ms. Andrade had many choices – rather than serve the people of Fall River with the integrity she swore to provide, she chose to support the corrupt leadership of Jasiel Correia by lying to federal authorities in an effort to protect him. This prosecution is about the citizens of Fall River who have every right to expect that their government will focus on improving the lives of the people who live in this great City. The Mayor and his Chief of Staff put their own self interests above the needs of their constituents,” said United States Attorney Rachael S. Rollins. “My office will continue to hold government officials who abuse their positions of trust accountable. We will continue to work with our federal, state, and local law enforcement partners to root out corruption wherever it lies.”
“Instead of doing right by the citizens of Fall River, Genoveva Andrade repeatedly lied to us about Mayor Jasiel Correia’s criminal conduct in an effort to obstruct our investigation and protect components of City Hall under their leadership,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence brings this sordid chapter in Fall River history to a close, while also making it crystal clear that anyone who lies to the FBI during the course of a public corruption investigation will not get away with it.”
“Ms. Andrade’s admission to making false statements to special agents reveal her efforts to hide facts in this investigation,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, Boston Office. “Today’s sentencing reflects the serious nature of her role in the kickback arrangement for which she will now be held accountable.”
“Today’s events are the result of Ms. Andrade placing her loyalty to Jasiel Correia above her duty to the people of Fall River,” said Massachusetts Inspector General Glenn A. Cunha. “My office and our federal partners are committed to ensuring that public officials in Massachusetts who choose a similar path will face consequences for their criminal acts.”
Soon after Correia hired Andrade as his Chief of Staff in November 2017, she began kicking back half of her salary to Correia on a bi-weekly basis until July 2018. She also kicked back nearly all of the $10,000 city-funded “snow stipend” that Correia approved for Andrade.
Andrade made false statements to federal agents in December 2018 in connection with her salary kickback arrangement with Correia.
On May 14, 2021, Correia was convicted by a federal jury of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. Judge Woodlock dismissed six counts of wire fraud and four counts of filing false tax returns, for which the jury convicted Correia. On Sept. 21, 2021, Correia was sentenced by Judge Woodlock to six years in prison and three years of supervised release. He still has yet to surrender. On March 3, 2022, the Court delayed Correia’s self-surrender date for the sixth time – he was scheduled to surrender the following day. Correia was previously ordered to report to prison on Dec. 3, 2021; Jan. 10, 2022; Jan. 28, 2022; Feb. 13, 2021; Feb. 14, 2022; and March 4, 2022. He is now scheduled to begin his prison sentence on April 5, 2022. The Government will continue to strongly advocate that Correia begin to serve his sentence.
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS SAC Simpson, Massachusetts Inspector General Cunha, and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement. Assistant U.S. Attorneys David Tobin and Dustin Chao, of Rollins’ Criminal Division, prosecuted the case.
Florida Man Sentenced to Federal Prison for Drug Trafficking OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that NELIOBET DeJESUS, 44, of Orlando, Florida, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, in 2018, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force began investigating a Hartford area narcotics trafficking operation that involved the use of the U.S. Mail to ship parcels of drugs and drug proceeds. Investigators determined that Israel Mendoza, also known as “D-Nice,” supplied Michael Copeland, of Bloomfield, with large quantities of cocaine, and that Copeland, at Mendoza’s direction, mailed parcels containing cash to individuals in California. In September and October, U.S. Postal Inspectors in California intercepted and seized two parcels, each containing approximately $13,000 in cash, that Copeland mailed in Connecticut to addresses in the Fresno area. Investigators analyzed postal records and identified dozens of additional parcels connected to this drug trafficking network that are suspected to have contained narcotics or drug proceeds.
In February 2019, investigators seized a parcel containing nearly 500 grams of cocaine that had been mailed from California to a Bloomfield residence that was connected to Copeland.
Mendoza worked with others, including DeJesus and Danny Rhodes, in the Hartford area to distribute heroin and cocaine. During the investigation, after DeJesus had moved to Orlando, Florida, investigators identified a mail parcel that was destined for a residence in Orlando that was linked to DeJesus. A court authorized search of the parcel revealed approximately 500 grams of cocaine and approximately five grams of fentanyl.
DeJesus was arrested on October 22, 2020. On June 3, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and cocaine.
Copeland and Rhodes, also of Bloomfield, have pleaded guilty. On December 8, 2021, Rhodes was sentenced to 87 months of imprisonment, and on December 16, 2021, Copeland was sentenced to 30 months of imprisonment.
Mendoza, last residing in Reading, Pennsylvania, is being sought by law enforcement. U.S. Attorney Boyle stressed that, as to Mendoza, charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, which includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments. The Drug Enforcement Administration’s Hartford Task Force, Homeland Security Investigations (HSI), Connecticut State Police and Hartford Police Department assisted the investigation. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Felon Sentenced for Sex Trafficking, Drug, and Firearm ChargesRead the Press Release
A Norfolk man was sentenced today to 460 months in prison for sex trafficking, fraud, conspiracy to distribute methamphetamine and other drugs, and being a felon in possession of a firearm.
According to court documents, LeAnthony Winston, 34, is a six-time convicted felon. Shortly after he was released from state prison in December 2019 for firearm and drug convictions, Winston obtained another firearm and began to traffic methamphetamine, marijuana, cocaine, and cocaine base.
From March through May 2020, Winston trafficked two homeless women in Norfolk and coerced them into engaging in commercial sex. He used a combination of false promises of love and protection, threats, and violence, including beatings and pointing a firearm at the women to gain compliance. Winston’s co-conspirator, Tonya Hardesty, 37, of Norfolk, trained the women, created advertisements, and set up commercial sex “dates” with clients, while Winston set the prices and kept all of the proceeds from commercial sex. He also distributed drugs to the women, including methamphetamine and crack, to keep them awake so that they could have as many “dates” as possible and so that they would be indebted to him for the cost of the drugs.
On April 15, 2020, Norfolk Police Department patrol officers responded to the Ocean View Inn Motel in Norfolk after Winston beat, choked, and threatened to kill one of the women in a dispute about money. The female victim stated that she was assaulted by her “pimp,” so the patrol officers referred the case to Norfolk vice and narcotics detectives for further investigation.
After an investigation, Winston was arrested in Norfolk on May 27, 2020. At the time of his arrest, Winston had approximately 16.8 grams of crack cocaine in his pocket. Within the hotel room, law enforcement found the second female victim and Winston’s loaded firearm. After Winston was taken into custody, he continued to coerce the second female to engage in commercial sex, claiming that he would be out on a bond soon. He also threatened her over a jail call.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. Field Office; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorneys Amanda Turner and Megan Montoya are prosecuting the case.
This investigation was conducted by the Hampton Roads Human Trafficking Task Force, a collaboration between federal, state, and local law enforcement and prosecutors, as well as non-governmental organizations, working together to combat human trafficking in the Hampton Roads Region. The Virginia Army National Guard Counterdrug Task Force provided significant assistance in this investigation.
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. 2:20-cr-108.
Federal jury convicts two Texas men on federal fraud and false statements chargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque on March 2 returned a verdict finding Nick L. Medeiros, 49, and Bobby D. Greaves, 62, both of San Antonio, Texas, guilty of federal fraud and false statement charges following a seven-day trial.
A federal grand jury indicted Medeiros and Greaves on June 13, 2018, charging the two men with conspiracy, major fraud against the United States, and two counts of false statements. The indictment also included forfeiture provisions. On March 10, 2020, a federal grand jury returned a four-count superseding indictment charging Medeiros and Greaves with unlawfully obtaining more than $3 million in government contracts by falsely and repeatedly representing to the United States that Medeiros, a service-disabled veteran, was operating independently from Greaves, his brother-in-law. The indictment alleged that instead Medeiros relied on Greaves, who is not a veteran, to complete all of Medeiros’ government contract work by providing the labor and equipment. The superseding indictment alleged that two of the government contracts involved in the defendants’ fraudulent scheme involved construction projects at Cannon Air Force Base in Clovis, New Mexico, and included a $1.9 million contract to build a “Drop Zone” cybercafé.
The trial began on February 22 and concluded on March 2, when the jury returned guilty verdicts on all four counts.
During the trial, the evidence established that Greaves and Medeiros agreed to create a pass-through entity to get access to programs set aside for service-disabled veterans, and that both made material false statements on which government agencies and personnel relied in awarding contracts to Medeiros’ company. Evidence also established that Medeiros altered documents, such as bank signature cards and employee resumes. and submitted the altered versions to the Air Force, the Department of Veterans Affairs, and the Small Business Administration.
The jury deliberated for three hours before returning its guilty verdicts.
“The fraudulent acquisition of contracts intended for service-disabled veterans is an abuse of the system,” said Fred J. Federici, United States Attorney for the District of New Mexico. “Such fraud not only profits unscrupulous parties, it necessarily deprives veterans, who have made a permanent sacrifice in service to our nation, of the opportunity to compete for government contracts to once again serve their country. This office will honor its duty in prosecuting these crimes to restore justice to our veterans.”
“Conspiring to gain federal contracts set aside for service-disabled veterans is reprehensible,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “These guilty verdicts send a clear message that anyone who attempts to do so will be held accountable. We thank the U.S. Attorney’s Office and our other law enforcement partners for their efforts in this case.”
“The collaboration between the Department of Veterans Affairs Office of Inspector General, OSI and the Department of Justice, was significant in this investigation” said Special Agent in Charge Blair Holmstrand of the Office of Special Investigations, Procurement Fraud Detachment 3, San Antonio, Texas. “The guilty verdicts reflect the results of the hard work put forth by all agencies involved.”
The investigation began when a concerned citizen brought the close association between Medeiros and Greaves to the attention of the VA OIG, who requested assistance from AFOSI when the initial investigation revealed questionable conduct on Cannon AFB in New Mexico.
Medeiros and Greaves each face up to 25 years in prison, fines of up to twice the amount of money gained by the fraud, and forfeiture of all proceeds involved in the fraud. The defendants remain on conditions of release pending sentencing, which has not been scheduled.
The Department of Veterans Affairs Office of the Inspector General and the Air Force Office of Special Investigations investigated this case. Assistant United States Attorneys Paul J. Mysliwiec and Jonathon M. Gerson are prosecuting the case.
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Federal Prison Sentences for Two SoCal Men Who Targeted Turkish Victims in Hate Crime Attack on Family-Owned RestaurantRead the Press Release
LOS ANGELES – Two Los Angeles County men today were sentenced to federal prison on conspiracy and hate crime charges for attacking five victims inside a family-owned Turkish restaurant in 2020 while shouting ethnic slurs, hurling chairs at the victims, and threatening to kill them.
William Stepanyan, 23, of Glendale was sentenced to five years in federal prison, and Harutyun Harry Chalikyan, 24, of Tujunga was sentenced to 15 months in prison. Both defendants pleaded guilty in October 2021 to one count of conspiracy and one count of committing a hate crime.
In September 2020, long-simmering tensions in Turkish and Armenian communities escalated worldwide – including in the United States – in response to a war breaking out between Armenia and its Turkish-backed neighboring country, Azerbaijan.
According to court documents, the defendants, who identify as members of the Armenian American community, attacked the victims inside the restaurant on November 4, 2020, because of their anger about Turkey’s support of Azerbaijan in its conflict with Armenia. Earlier that day, Stepanyan sent a text message saying that he planned to go “hunting for [T]urks.”
That evening, the defendants drove to the restaurant with a group of approximately nine individuals who planned to demonstrate outside the establishment because they considered it symbolic of Turkey. Upon arriving at the restaurant, Stepanyan and Chalikyan stormed inside, threw hard wooden chairs at the victims, smashed glassware, destroyed a plexiglass barrier, and overturned tables. One of the defendants asked the victims, “Are you Turkish?” and shouted, “We came to kill you! We will kill you!”
During the attack, three victims were injured, including one individual who lost feeling in their legs and collapsed multiple times due to the injury. Also, during the attack, Stepanyan ripped out the restaurant’s computer terminals and stole a victim’s iPhone.
The attack caused at least $20,000 of damage to the restaurant and physically injured multiple victims.
“These defendants were driven by hate, and their actions were deplorable,” said United States Attorney Tracy L. Wilkison. “The physical injuries and emotional trauma to the victims cannot be understated. We hope that the sentences handed down today will help vindicate those harms.”
“The defendants violently attacked people inside a family-owned restaurant because of their perceived nationality,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Such violence based on national origin has no place in our society. The Justice Department will continue to vigorously prosecute bias-motivated crimes in an effort to secure justice for the victims and the communities they are meant to target and intimidate.”
“The victims in this case were brutally attacked by the defendants who trampled their civil rights and likely caused lasting psychological pain for nothing more than the perception of where they were born,” said Kristi Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to investigating civil rights violations and holding accountable individuals who commit violent acts motivated by hate.”
The defendants were ordered to pay $21,200 in restitution.
The FBI conducted the investigation in this matter and received substantial assistance from the Beverly Hills Police Department.
Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section, and Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division prosecuted this case.
Federal Jury Convicts Muskogee Resident of Murder and Robbery Offenses in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Kevin Marvell Jackson, age 20, of Muskogee, Oklahoma was found guilty by a federal jury of murder in Indian country, along with robbery and firearm offenses.
The jury trial began with testimony on Tuesday, March 1, 2022, and concluded on Thursday, March 3, 2022, with the guilty verdicts. Based on the jury’s verdict, the defendant is facing a mandatory sentence of life imprisonment.
During the trial, the United States presented evidence the defendant attempted to rob Bradley Dillon and Dakota Berryhill of what he believed to be a large amount of casino winnings during the early morning hours of October 19, 2020. The defendant hatched the plan to rob Dillon and Berryhill after overhearing telephone conversations about the winnings between friends of Dillon. Unbeknownst to defendant, Dillon and Berryhill were simply joking about the casino winnings and had very little money when defendant attempted to rob them at gunpoint. While Berryhill escaped the robbery, defendant shot Dillon at least five times. Defendant fled the scene and was apprehended in the Oklahoma City area after a manhunt led by the FBI.
The guilty verdicts were the result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the victims in this case are members of a federally-recognized Indian tribe and the crimes occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Jackson was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Michael Cooper represented the United States.
Federal Jury Convicts Kissimmee Man of Sexually Exploiting A Minor Child Using A Cell Phone CameraRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Rafael Antonio Bracero-Navas (50, Kissimmee) guilty of seven counts of sexually exploiting a minor child. Bracero-Navas faces a maximum penalty of 30 years in federal prison on each count and will be required to register as a sex offender. His sentencing hearing is scheduled for June 1, 2022. Bracero-Navas had been indicted on August 4, 2021.
According to testimony and evidence presented at trial, between approximately July 2018 and April 2021, Bracero-Navas used a minor child to produce pornographic pictures that depicted the lascivious exhibition of the child’s pubic area. He did so surreptitiously from outside a bathroom door, taking pictures using a cellphone camera pointed through the crack under the door as the child was stepping out of the shower. Although Bracero-Navas later deleted the full-sized images from his phone, thumbnail images remained and were later discovered by law enforcement.
This case was investigated by the Federal Bureau of Investigation and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang and Amanda S. Daniels.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fayetteville Woman Detained on Bank Fraud and Aggravated Identity Theft ChargesRead the Press Release
RALEIGH, N.C. – A Fayetteville woman was captured and arrested by the U.S. Marshals Fugitive Task Force for bank fraud and aggravated identity theft charges on Monday, February 28, 2022.
According to court documents, Erica Andrea Monique Johnson, Age 27, devised a scheme and artifice to engage in a scheme colloquially known as “card-cracking”, where she made check deposits, often via Automated Teller MachineS (“ATM”), into checking accounts opened using the personal identifying information of unsuspecting victim accountholders. After the deposits were made, Johnson made point of sale (“POS”) purchases and cash withdrawals against the deposit credit to obtain money during the “float” period before the financial institution recognized the fraud. The documents allege that between March 2018 and June 2020, Johnson and her coconspirators withdrew and received over $430,000 from the Pentagon Federal Credit Union.
Johnson is charged with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, bank fraud, in violation of Title 18, United States Code, Section 1344, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. She faces a maximum penalty of 240 months in prison if convicted.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Department of Treasury - Office of Inspector General and the Fayetteville Police Department are investigating the case. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-334-BO-1.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
FBI Impersonator Guilty of Wire Fraud, StalkingRead the Press Release
FRESNO, Calif. — On Friday, March 4, 2022, after a four–day trial, a federal jury found Ivan Isho, 44, of Peoria, Arizona, guilty of two counts of wire fraud, one count of false impersonation of a federal officer, and stalking, United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, in 2016 and 2017, Isho pretended to be an FBI agent and claimed to members of the Assyrian community in Ceres that he could help them obtain visas for their family members living outside the United States. He displayed fake FBI credentials and a gun to aid his misrepresentations to his victims. They paid him thousands of dollars, including by means of interstate wire transmission, and provided him with copies of personal family documents. However, Isho had no ability to obtain and never helped to obtain visas for the victims’ family members. Isho was never employed in any capacity by the FBI.
Additionally, between April 2017 and April 2018, Isho held himself out as an FBI Special Agent to a female victim whom he harassed by means of repeated phone calls and threatening and harassing voicemail messages to both the victim and her husband.
At trial, Isho testified and claimed he only possessed the fake FBI credentials as part of a Halloween costume, despite recordings in evidence of his voicemails claiming to be with the FBI received in the months of April and August 2017. He further admitted to threatening the stalking victim with abusive language and various threats.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Laura D. Withers and Laura Jean Berger are prosecuting the case.
Isho is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 31, 2022. Isho faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Essex County Man Charged with Illegally Possessing Firearm in Connection with June 2021 ShootingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man with a previous felony conviction made his initial appearance today on a criminal complaint charging him with two counts of illegally possessing a firearm and ammunition, the first count related to a June 2021 shooting in Newark, U.S. Attorney Philip R. Sellinger announced.
Kevin Hills, 21, of Newark, was charged by complaint on Feb. 24, 2022, appeared today by videoconference before U.S. Magistrate Judge André M. Espinosa, and was detained.
According to documents filed in this case and statements made in court:
On June 19, 2021, a shooting took place in Newark. Responding officers of the Newark Police Department (NPD) found an abandoned Jimenez Model JA-Nine 9-millimeter semiautomatic pistol in a vacant lot near the scene and multiple spent shell casings on the sidewalk. NPD detectives later recovered video from the vicinity of the shooting recorded during the morning of the shooting. One video showed an individual matching Hills’ appearance firing a handgun in the same area where the shell casings and handgun were found.
On July 20, 2021, an NPD detective who had been assigned to investigate the shooting saw and stopped Hills. The detective then recovered a Ruger 9-millimeter caliber handgun loaded with 11 rounds of ammunition from Hill’s waistband.
Hills had previously been convicted in January 2019 in the New Jersey Superior Court of aggravated assault on a corrections officer, for which he was sentenced to three years in prison.
Each count of illegal possession of a firearm and ammunition by a convicted felon carries a maximum sentence of 10 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and members of the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Theodore N. Stephens II, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Erie Man Sentenced to 5 Years for Receiving Child PornographyRead the Press Release
Erie, Pa, - A resident of Erie, Pennsylvania, has been sentenced in federal court to 5 years in jail and 5 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Jordan Lee Perrin, 25.
According to information presented to the court, Perrin received computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Erie County Detectives Bureau for the investigation leading to the successful prosecution of Perrin.
Enfield Man Admits Defrauding the U.S. Department of Veterans Affairs to Receive BenefitsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut; Christopher Algieri, Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office; and James M. Noble, Special Agent in Charge, Coast Guard Investigative Service, Northeast Region, today announced that, on March 4, DERRICK BREWER, 37, of Enfield, pleaded guilty via videoconference before U.S. District Judge Sarala V. Nagala to an offense related to his theft of nearly $70,000 from the U.S. Department of Veterans Affairs (“VA”).
According to court documents and statements made in court, in March 2018, Brewer submitted paperwork to the VA offices in Hartford as part of an application for service-connected disability benefits. Specifically, Brewer submitted a form known as a “DD-214,” which indicated that his discharge from his former service in the U.S. Coast Guard was characterized as “Honorable.” The DD-214 had been altered prior to its submission, as official Coast Guard records show that Brewer’s discharge was characterized as “Other Than Honorable Conditions” following Brewer’s convictions under the Uniform Code of Military Justice. There is no record of the discharge characterization ever having been upgraded. As a result of this submission, Brewer collected approximately $69,584.16 in VA benefits from March 2018 through September 2020.
Brewer was arrested on a criminal complaint on October 29, 2020.
Brewer pleaded guilty to one count of theft of government funds, which carries a maximum term of imprisonment of 10 years. Judge Nagala scheduled sentencing for May 27, 2022.
Brewer is released on a $10,000 bond pending sentencing.
This matter is being investigated by the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, and the Coast Guard Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Elena L. Coronado and Margaret M. Donovan.
Dayton man sentenced to 11 years in prison for distributing images of child sexual abuseRead the Press Release
DAYTON, Ohio – Jason Pollet, 48, of Dayton, Ohio, was sentenced in U.S. District Court to 132 months in prison for distributing child pornography.
According to court documents, throughout 2020 and 2021, law enforcement agents and task force officers in the Southern District of Ohio conducted an online investigation to identify individuals using social media and messaging apps to commit child exploitation offenses.
Between November and December 2020, Pollet used Kik Messenger and Wickr – two internet-based messaging apps – to distribute more than 30 images and videos of minors engaged in sexually explicit conduct to an undercover law enforcement officer.
Pollet pleaded guilty in November 2021 to distributing child pornography.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Kamran Afzal and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed by U.S. Senior District Court Judge Thomas M. Rose. Assistant United States Attorney Nicholas A. Dingeldein represented the United States in this case.
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Darknet drug trafficker pleads guilty to conspiracy and firearm chargesRead the Press Release
Seattle – 28-year-0ld Nicholas Partlow of Issaquah, Washington, pleaded guilty today in U.S. District Court in Seattle to drug and gun charges, announced U.S. Attorney Nick Brown. Partlow admits selling drugs on the darknet more than 400 times as part of a conspiracy with the operators of darknet marketplaces and other drug traffickers. Partlow also admits selling drugs locally and possessing five firearms during and in furtherance of his drug-trafficking activities. After law enforcement searched Partlow’s residence in November 2020, he continued selling drugs. U.S. District Judge Richard A. Jones will sentence Partlow on July 1, 2022.
According to the plea agreement, over the course of 2020, postal investigators seized multiple parcels mailed by Partlow to his drug customers. Inside the packages, investigators found heroin, fentanyl pills, and other controlled substances. Investigators also covertly ordered heroin, methamphetamine, and other drugs from Partlow through the darknet.
In November 2020, law enforcement obtained a search warrant for Partlow’s Issaquah residence. That search turned up heroin, methamphetamine, fentanyl, ketamine, GHB, and other drugs; electronic equipment that Partlow used as part of his trafficking operation; and drug proceeds in cash and cryptocurrency.
Investigators also seized Partlow’s five firearms—including a sawed-off shotgun and a pistol equipped with a silencer.
After the November 2020 search, Partlow continued trafficking drugs. He also tried to obtain another gun. In March 2021, police in Bellevue, Washington, arrested Partlow and an associate. Partlow carried narcotics and a notebook containing information about his trafficking activities. A few months later, in September 2021, Partlow crashed a car in Renton, Washington, while carrying narcotics and a taser. At the time, Partlow was wanted on a federal arrest warrant. He has been in federal custody since then.
Under the plea agreement, Partlow is forfeiting to the government a range of items, including guns, electronics, cryptocurrency, cash, and seven wristwatches.
Partlow pleaded guilty to two felonies: conspiring to distribute controlled substances and possessing firearms in furtherance of that crime. For the conspiracy charge, Partlow faces up to 20 years in prison; for the firearms charge, he faces a mandatory-minimum five-year prison term, which will run consecutive to any sentence imposed on the conspiracy charge. The ultimate sentence will be determined by Judge Jones after considering U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U.S. Postal Service Office of Inspector General, with assistance from the U.S. Postal Inspection Service, the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Federal Bureau of Investigations (FBI), U.S. Customs and Border Protection, and the Bellevue Police Department.
The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Clifton Park Doctor Sentenced to 37 Months for Unlawful Drug DistributionRead the Press Release
ALBANY, NEW YORK – Adrian Morris, age 65, of Clifton Park, New York, formerly a licensed psychiatrist specializing in addiction recovery, was sentenced today to serve 37 months in prison for distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.
The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Timothy Foley of the U.S. Drug Enforcement Administration (DEA), New York Division; and Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Morris admitted that he dispensed controlled substances, including Adderall and Xanax, for no legitimate medical purpose, to people he never met or treated. Morris also admitted that he engaged in personal relationships with female patients seeking treatment from him for addiction to controlled substances.
United States District Judge Mae A. D’Agostino also imposed a 2-year term of supervised release, which will start after Morris is released from prison.
This case was investigated by the DEA, FBI, Albany County Sheriff’s Office, and the New York State Bureau of Narcotic Enforcement, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Emmet J. O’Hanlon.