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Monday 28 February 2022
Charlottesville Woman Pleads Guilty to Bank Fraud, Aggravated Identity TheftRead the Press Release
CHARLOTTESVILLE, Va. – A Charlottesville woman pleaded guilty today to altering and forging checks she obtained without the consent of the check owners.
Samantha Leigh Thomas, 38, pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Thomas stole checks that were not made out to her and she either altered the check to change the name of the payee to her own name or forged the signature of the original payee. For example, in one instance, Thomas changed the check’s original amount of $25 into $1,200. Thomas deposited all of her ill-gotten gains into one of five personal checking accounts maintained at five different financial institutions. The eventual loss suffered by all victims exceeded $25,000.
Thomas is scheduled to be sentenced on May 26, 2022, and faces a sentence of up to 32 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The United States Postal Inspection Service and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Ronald M. Huber is prosecuting the case.
Buffalo Man Going to Prison for 10 Years for Selling Fentanyl Linked to the Death of A Hamburg Man, Also Ordered to Pay Restitution for Funeral ExpensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Tyrone Green, III, 27, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, cocaine, and 10 grams or more of butyryl fentanyl, was sentenced to serve 120 months in prison by U.S. District Judge John L. Sinatra, Jr. Green was also ordered to pay restitution for the funeral expenses of the overdose victim in this case.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that on March 23, 2018, Green and co-defendant Brennan Bryant sold fentanyl to an individual who was later found deceased in the Town of Hamburg. Through text messages on the decedent’s cellular telephone, detectives with the Hamburg Police Department and Special Agents with the Drug Enforcement Administration identified Bryant and Green as the decedent’s suppliers. Subsequent investigation revealed that between October 2017 and January 2018, the New York State Police made numerous controlled purchases of butyryl fentanyl, fentanyl, cocaine, and heroin from both Bryant and Green.
Brennan Bryant was previously convicted and also sentenced to serve 120 months in prison.
The sentencing is the result of an investigation by the Hamburg Police Department, under the direction of Chief Kevin Trask, the Drug Enforcement Administration, under the direction of Acting Special-Agent-in-Charge Timothy Foley, the New York State Police, under the direction Major James Hall, and the Orchard Park Police Department, under the direction of Chief Joseph Wehrfritz.
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Brooklyn Man and Yonkers Woman Charged with Production, Receipt and Distribution of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Miriam E. Rocah, Westchester County District Attorney, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and John Mueller, the Commissioner of the Yonkers Police Department (“YPD”), announced today that JONATHAN RIVERA and DILICIA AGUIRRE-ORELLANA were charged with production and receipt and distribution of child pornography. AGUIRRE-ORELLANA was also charged with possession of child pornography.
RIVERA was arrested on or about February 26 in Manhattan, and will be presented today in federal court in White Plains. AGUIRRE-ORELLANA was arrested on or about February 22 in Yonkers, presented on local charges on or about February 23, and detained; she will be presented on the federal charges at a later date.
U.S. Attorney Damian Williams said: “Allegedly at the behest of Jonathan Rivera, Dilicia Aguirre-Orellana is accused of one of the most heinous acts imaginable – the sexual assault of prepubescent children – including the sexual abuse and video recording of her four-year-old son. The harm that child sex abuse can inflict on the most innocent of victims is something no child should bear. We believe there may be more victims of these alleged crimes, and implore anyone who may have information helpful to law enforcement to please call 1-800-CALL-FBI.”
FBI Assistant Director Michael J. Driscoll said: “The level of depravity alleged in the charges filed today against Mr. Rivera are nearly unfathomable. The FBI and our partners remain committed to bringing to justice all those who would seek to harm our society’s most vulnerable members. We are asking anyone with information about Mr. Rivera or his alleged activity to contact us at 1-800-CALL-FBI (225-5324) or online at tips.fbi.gov.”
Westchester County District Attorney Miriam E. Rocah said: “Crimes committed against children, especially ones perpetrated by a parent or caretaker, are deeply disturbing and those who prey upon and sexually exploit children will be aggressively prosecuted. As alleged in this case, Dilicia Aguirre-Orellana sexually violated and exploited her own child in unspeakable ways. This case shows how law enforcement at the federal, state and local levels can work together to protect the most vulnerable victims. My office is proud to have partnered with the Yonkers Police Department, Federal Bureau of Investigation and United States Attorney’s Office for the Southern District of New York on this remarkable collaborative effort which put an end to the alleged abuse of a young victim, and will help any other potential victims come forward.”
YPD Commissioner John Mueller said: “It is at the core of every law enforcement officer to protect the vulnerable and innocent, most of all children. We must hold these alleged criminals accountable to the maximum extent of the law for the abuse they inflicted on the smallest members of our society; the Yonkers Police will always continue to put victims first. I am grateful for the sustained multi-agency collaboration on the County, State, and Federal levels that ensures safe communities in Westchester and the City of Yonkers, and applaud the efforts of the investigators and attorneys who worked this case.”
According to the Complaint[1] filed on February 28, 2022, in White Plains federal court:
In or about December 2021, RIVERA communicated online with AGUIRRE-ORELLANA and persuaded AGUIRRE-ORELLANA to make videos of herself performing sex acts on her four-year-old child (“Victim-1”). At RIVERA’s direction, AGUIRRE-ORELLANA made videos of herself touching Victim’s genitals and herself performing oral sex on Victim-1, and sent them to RIVERA over a social media messaging application. In conversations with law enforcement, RIVERA stated that he engaged in similar conversations with other women online. RIVERA may have used various social media platforms to communicate with victims, including WhatsApp, Badoo, Telegram, and Facebook. The usernames of some of RIVERA’s various accounts include:
Jriv3ra718
Jriv3ra11
Jaid3nrivera718
Thebrimbrothers
Jano59fifty
Nathan
On or about February 23, 2022, AGUIRRE-ORELLANA was charged in Westchester County with sexual abuse in the first degree and criminal sexual act in the first degree. The Westchester County District Attorney’s Office will be prosecuting these charges.
Anyone who may have encountered JONATHAN RIVERA (or someone who may have been using the social media usernames identified above), is asked to contact the FBI at 1-800-CALL-FBI (1-800-225-5324).
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RIVERA, 33, of Brooklyn, New York, is charged with one count of production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison, and one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
AGUIRRE-ORELLANA, 22, of Yonkers, New York, is charged with one count of production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison, one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, and one count of possession of child pornography involving images of a minor who had not yet attained the age of 12, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the efforts of the FBI Westchester Safe Streets Task Force which includes Special Agents and Task Force Officers from the FBI, US Probation, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County PD, Westchester County DA's Office, Putnam County Sheriff's Office, Rockland County DA's Office, the NYPD and the Yonkers, Mount Vernon, Peekskill, Greenburgh, New Rochelle, White Plains, Clarkstown and Ramapo Police Departments. This investigation is ongoing.
This case began as an investigation in the YPD Special Victim’s Unit, working jointly with the Special Prosecutions Division Child Abuse Bureau of the Westchester County District Attorney’s Office, including Bureau Chief Christine Hatfield and Acting Deputy Bureau Chief Owein Levin. The federal prosecution is being handled by the White Plains Division of the U.S. Attorney’s Office. Assistant United States Attorney Stephanie Simon is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bristol Woman Arraigned on Federal Fraud, ID Theft, Theft of Federal Funds ChargesRead the Press Release
PROVIDENCE, R.I. – A Bristol woman was arraigned in federal court today, having been charged by indictment with allegedly perpetrating a scheme to fraudulently collected more than $40,000 in Social Security Supplemental Security Income (SSI) benefits for a child who was not in her care or custody, announced United Sates Attorney Zachary A. Cunha.
Sonia Pimentel, 43, was arraigned on a federal indictment charging her with bank fraud, theft of public funds, and aggravated identity theft.
It is alleged in charging documents that Pimentel fraudulently collected SSI monthly payments from December 2011through October 2016 by falsely representing herself as custodial parent for a child that did not live with her, and falsely representing to the Social Security Administration (SSA) that she had spent the SSI payments for that child’s care and support. It is alleged that Pimentel opened a bank account in the child’s name, directed the SSA to deposit the SSI benefits to that bank account, and then withdrew approximately $42,346.73 for her own personal use.
It is further alleged that Pimentel fraudulently used the name, date of birth, Social Security number, and bank account number of the child to file applications for continued SSI benefits for the child and to open the bank account into which the SSI benefits were deposited.
Pimentel pled not guilty before U.S. District Court Magistrate Judge Lincoln D. Almond and was released on $10,000 unsecured bond.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the Social Security Administration Office of Inspector General.
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Boston Man Sentenced for Fraud ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today on fraud conspiracy charges in connection with the processing of fraudulent applications for store credit accounts using stolen identities.
Ricardo Voltaire, 35, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one month in prison and 18 months of supervised release. Voltaire was also ordered to pay restitution in the amount of $81,550 and forfeiture of $8,000. On Oct. 26, 2021, Voltaire pleaded guilty to one count of conspiracy to commit wire fraud.
Voltaire was a sales manager at Staples locations in Dedham and Braintree. In this role, Voltaire was responsible for processing store credit card applications, among other things. On at least 60 occasions, Voltaire processed fraudulent Staples’ store credit account applications that were submitted by co-conspirator Wagner Sozi and his accomplice – each of which contained stolen personal identifying information of another individual. Voltaire knew that his co-conspirators were not in fact the individuals named on the applications and opened store credit accounts under the stolen identities, which were then used to purchase more than $81,000 in Visa gift cards. Voltaire accepted approximately $8,000 in kickbacks from Sozi and his co-conspirator.
In May 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. On Dec. 8, 2021, Sozi was sentenced to 39 months in prison and two years of supervised release. Sozi was also ordered to pay forfeiture and restitution in the approximate amount of $110,000.
United States Attorney Rachael S. Rollins and Mark Comorosky, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. The Braintree Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William F. Abely II, Chief of Rollins’ Criminal Division prosecuted the case.
Aroostook County Man Sentenced for Methamphetamine TraffickingRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced in federal court today for conspiring to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Jeff Curtis, 40, to five years in prison and three years of supervised release.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Curtis and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations, and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Friday 25 February 2022
Winchester Man Convicted of COVID-Relief FraudRead the Press Release
BOSTON – A Winchester man was convicted by a federal jury yesterday in connection with filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Elijah Majak Buoi, 40, was convicted following a three-day trial of four counts of wire fraud and one count of making a false statement to a financial institution. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 16, 2022. Buoi was arrested and charged by criminal complaint in June 2020 and subsequently indicted by a federal grand jury in July 2020.
Buoi submitted six fraudulent PPP loan applications on behalf of his company Sosuda Tech, LLC (Sosuda) to four different SBA-approved lenders. In each loan application, Buoi misrepresented the number of employees and payroll expenses. Buoi also submitted fraudulent IRS tax forms in support of his applications. The evidence at trial showed that Sosuda was a startup company with no U.S.-based payroll and no U.S.-based employees. As a result of his scheme, Buoi obtained a $2 million PPP loan. The government recovered approximately $1.97 million of the loan funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making a false statement to a financial institution provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Stephen Donnelly, Acting Special Agent-in-Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Association, Office of Inspector General, Eastern Regional Office; and Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Region, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial, and Cyber Fraud Unit, and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Announces a Turtle Mountain, ND, Man Sentenced to Federal Prison for Sexual Abuse of a ChildRead the Press Release
FARGO – Interim United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Jimmie Dean Moore, age 58, Turtle Mountain Indian Reservation, ND, to 293 months in federal prison after he pleaded guilty to the offense of Abusive Sexual Contact of a Minor. Chief Judge Welte also sentenced Moore to lifetime supervised release.
Investigation by the Federal Bureau of Investigation revealed that in September 2020, Moore inappropriately touched a 10-year-old female while she was sleeping on a couch at a family member’s residence. The minor female reported that she woke up when she felt Moore touch her legs and inner thighs, and felt her pants and underwear being pulled down exposing her genitalia. The minor female reported her legs had been propped up and she believed Moore was taking photos of her genital region. Moore was interviewed and admitted to attempting to photograph the minor female’s vagina with the intent to masturbate to the photographs.
Moore began residing on the Turtle Mountain Indian Reservation shortly after being released from prison in 2005. Moore had previously been convicted of Sexual Abuse in the 19th Judicial Circuit Court, Wetumpka, AL, where he was sentenced to 10 years’ incarceration for conduct including the sexual abuse of minor children. At the time in which Moore committed the 2020 offense, he was a convicted sexual offender.
"The bravery and resiliency of this minor victim is remarkable and should serve as empowerment to other victims and because of the courageous decision by this child to come forward and share her story, the defendant will no longer be able to sexually molest and exploit another child," said Interim U.S. Attorney Nick Chase.
"One of the FBI's highest priorities is the protection of our children, today's sentence ensured that a repeat sexual offender will not be in any position to harm any child again," said FBI Special Agent in Charge Michael Paul. "I want to thank the agents, analysts, victims specialists and members of the prosecution team who worked collaboratively with our partners in Indian Country to help build this case to help bring the victim the justice she so richly deserves."
This case was investigated by the Federal Bureau of Investigations, and was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Dawn M. Deitz assigned to the case.
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Union Springs Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On February 23, 2022, Christopher Lee Smith, a 24-year-old man from Union Springs, Alabama, was sentenced to 21 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Sandra J. Stewart. In addition to his prison sentence, Smith was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on February 3, 2020, a Union Springs Police Officer initiated a traffic stop on a vehicle being driven by Smith. During the stop, the officer discovered that Smith had two loaded handguns in a bag belonging to him despite being prohibited from possessing firearms due to a 2018 state felony conviction for shooting into a vehicle. During the hearing, the court learned that it had been a mere four months after Smith’s state probation period was complete that he was found with the two guns in this case.
Smith was indicted by a federal grand jury for being a felon in possession of a firearm on April 7, 2021. He pleaded guilty to that charge on October 8, 2021.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce violent crime.
The Union Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Russell Duraski prosecuted the case.
Two Men Sentenced for Conspiring to Distribute Fentanyl in Lycoming CountyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Braheem Lewis, 24, of Philadelphia and Ethan Bailey, 23, of Williamsport were sentenced on February 23, 2022, by Chief Judge Matthew W. Brann for their roles in a drug trafficking conspiracy.
Lewis was sentenced to 48 months’ imprisonment and Bailey was sentenced to 24 months’ imprisonment. Both will be required to serve a three-year term of supervised release after serving their imprisonment sentences.
According to U.S. Attorney John C. Gurganus, Lewis and Bailey conspired to distribute fentanyl in Lycoming County from August 2019 to August 2020. At the hearing, Chief Judge Brann highlighted the way that the distribution of fentanyl has ravaged this community and the country.
Three other co-defendants were previously sentenced and received the following:
- Basil Arties, 27, was sentenced to 18 months’ imprisonment;
- Damion Bethea, 26, was sentenced to 15 months’ imprisonment; and
- Kenyon Bonaparte, 21, was sentenced to 24 months’ imprisonment.
Co-defendants Kevin Bryant and Ira Sims have pleaded guilty and are awaiting sentencing. Co-defendants Angellitto Lawton and Jordan Watkins are awaiting trial.
The charges stem from an investigation by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County Narcotics Enforcement Unit, the Federal Bureau of Investigation, and the Drug Enforcement Administration. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Turner Falls Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Turners Falls man pleaded guilty yesterday in federal court in Springfield to child pornography charges.
Brian Cooper, 64, pleaded guilty to four counts of distribution of child pornography, six counts of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 22, 2022. Cooper was indicted by a federal grand jury in April 2021.
Between April 2018 and October 2019, Cooper distributed, received and possessed child pornography files depicting children engaged in sexually explicit conduct. He distributed and received the child pornography files from online associates via Instagram. A search of Cooper’s residence in October 2019 revealed thousands of child pornography files stored on a tablet and multiple thumb drives. At the time of the search, Cooper was arrested on state court charges and has been detained since.
The charges of distribution and receipt of child pornography provide for a mandatory minimum sentence of 15 years and up to 40 years in prison. The charge of possession of child pornography provides for a mandatory minimum sentence of 10 years and up to 20 years in prison. Each charge also provides for a mandatory minimum of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; David E. Sullivan, Northwestern District Attorney; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Rollins’ Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Trinidad and Tobago National Apprehended at the Cyril E. King Airport Sentenced to 17 Months in Prison After Illegally Re-Entering the United StatesRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a Trinidad and Tobago national was sentenced today to 17 months in prison for illegally reentering the United States after he was removed.
According to court documents, Allan Browne, 49, presented himself for inspection in April 2021 at the Cyril E. King Airport in St. Thomas, USVI, as a ticketed passenger on a flight to Miami, Florida. Customs and Border Protection officers determined that he was not a citizen of the United States and had not been granted any documentation to enter or remain in the United States. The officers also determined that he had been previously removed from the United States on or about October 2020 and September 2014.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Juan Albino prosecuted the case.
Ten Florida Residents Indicted for $67 Million Health Care Fraud, Wire Fraud, Kickback, and Money Laundering SchemeRead the Press Release
WASHINGTON – Ten Florida residents were charged in an indictment unsealed today in the Southern District of Florida for their alleged roles in a $67 million health care fraud, wire fraud, kickback, and money laundering scheme involving the submission of false and fraudulent claims to Medicare for medically unnecessary genetic tests and durable medical equipment.
Daniel M. Carver, 35, of Coral Springs; Thomas Dougherty, 39, of Royal Palm Beach; and John Paul Gosney Jr., 39, of Parkland, the owners and managers of independent clinical laboratories and marketing companies, were each charged with conspiracy to commit health care fraud, health care fraud, conspiracy to pay and receive health care kickbacks and bribes, paying and receiving kickbacks and bribes, conspiracy to commit money laundering, and money laundering offenses.
Galina Rozenberg, 39, and Michael Rozenberg, 58, both of Hollywood, were arrested on Feb. 6, attempting to board a flight to Moscow. Each were charged with one count of conspiracy to commit health care fraud, health care fraud, and conspiracy to commit money laundering. Galina Rozenberg was also charged with additional money laundering offenses.
Louis Carver, 30, of Delray Beach; Timothy Richardson, 29, of Lantana; Ethan Macier, 22, of Coral Springs; and Jose Goyos, 35, of West Palm Beach were each charged with conspiracy to commit health care fraud, health care fraud, conspiracy to commit money laundering, and money laundering offenses. Ashley Cigarroa, 29, of North Lauderdale was charged with one count of conspiracy to commit health care fraud and committing health care fraud.
The indictment alleges that, between January 2020 and July 2021, the defendants referred Medicare beneficiaries for medically unnecessary genetic tests and durable medical equipment. In exchange for doctors’ orders for such tests and equipment, the defendants allegedly paid kickbacks and bribes to telemedicine companies. The indictment further alleges that the defendants falsified Medicare enrollment forms to conceal the true owners and managers of certain laboratories, and submitted false and fraudulent claims to Medicare.
The defendants are anticipated to make their initial appearances in federal court beginning the week of Feb. 28. Federal charges for conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, and money laundering are each punishable by a maximum penalty of 20 years in prison. Health care fraud and anti-kickback violations are each punishable by a maximum penalty of 10 years in prison. Conspiracy to pay and receive kickbacks is punishable by a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The HHS-OIG Miami Region and FBI’s Miami Field Office investigated the case.
Trial Attorneys Patrick J. Queenan and Reginal Cuyler Jr. of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Sara Michele Klco of the Southern District of Florida is handling asset forfeiture matters.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine or genetic testing marketing schemes should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
An indictment and an information are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tekamah Woman Sentenced to 100 Months for Kidnapping GrandchildrenRead the Press Release
United States Attorney Jan Sharp announced that Nora Gilda Guevara-Tirana, age 43, of Tekamah, Nebraska, was sentenced in federal court on February 23, 2022, in Omaha for kidnapping. United States District Judge Brian C. Buescher sentenced Guevara-Tirana to 100 months of imprisonment. There is no parole in the federal system. After completing her term of imprisonment, Guevara-Tirana will begin a 3-year term of supervised release. Guevara-Tirana, originally from Mexico, faces deportation proceedings after her release from prison.
Guevara-Tirana was convicted on August 31, 2021, of kidnapping after a five-day jury trial.
On April 20, 2020, Guevara-Tirana requested her co-defendant, Tanner Leichleiter, take her two grandchildren, ages 4 and 7, without car seats or shoes to Kansas to teach their mother a lesson. Witnesses testified that Leichleiter took the children to a drug house in Harvard, Nebraska, and received a phone call while there that Guevara-Tirana had been arrested for kidnapping. Leichleiter immediately took the children to Kansas. An Amber Alert was issued and Leichleiter was located with the children after a report from a farmer in the area. When law enforcement located Leichleiter and the children, they found 10 guns, multiple ammunition and drugs within reach of the children in the vehicle.
This case was investigated by the Federal Bureau of Investigation, and the Tekamah Police Department, Sedgwick County Sheriff, and Wichita Police Department.
Tampa Man Who Tried to Move Overdose Victim’s Body from Garage at Hard Rock Casino Pleads Guilty to Distributing Fentanyl and HeroinRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Nicholas Primo (35, Tampa) has pleaded guilty to distributing a substance that contained a mixture of heroin and fentanyl. Primo faces a maximum sentence of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, on November 13, 2019, Primo distributed narcotics to two individuals in the parking lot of the Seminole Hard Rock Hotel and Casino. One of the individuals injected himself with the substance and died. Primo was later captured on video surveillance returning to the vehicle, and after realizing the victim had died, fleeing the garage. Primo was later interviewed and admitted to purchasing $1,600 worth of heroin prior to distributing it. Primo later contacted a friend and attempted to move the victim’s car out of the Hard Rock Casino.
This case was investigated by the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes. This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse.
Syracuse Entrepreneur Pleads Guilty to Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Dean Whittles, 61, formerly of Syracuse, New York, waived indictment and pled guilty yesterday in federal court in Utica to one felony count of willful failure to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.
From 2016 through 2019, Whittles was the sole owner of multiple businesses in and around Syracuse, New York: DJ’s on the Hill and DJ’s on the Boulevard; the 317 Corporation (restaurant); and Dejon’s Hair Design, with salons in Cicero, Westvale and Skaneateles. Whittles no longer owns or operates any of the businesses at issue and recently moved to Tucson, Arizona.
In pleading guilty yesterday, Whittles admitted that he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes, even though he withheld such taxes from his employees’ paychecks. Instead, he used the money withheld from employees to pay for business and personal expenses. In total, Whittles failed to pay approximately $617,843 in payroll taxes to the Internal Revenue Service between 2016 and 2019. As part of his plea agreement, Whittles agreed to repay $617,843 to the IRS.
The charge to which Whittles pled guilty yesterday carries a maximum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Whittles will be sentenced on June 22, 2022 by United States District Judge David N. Hurd.
This case is being investigated by Internal Revenue Service-Criminal Investigation Division (IRS-CI), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Supplier of Drug Ring Operating in Asheville Is Sentenced to 25+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Rodney Dejuan Allison, 46, of Asheville, was sentenced in federal court late yesterday to 310 months in prison and eight years of supervised release on drug conspiracy charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
On April 2, 2019, a federal grand jury indicted Allison and seven other defendants on drug conspiracy charges following a two-year joint federal, state and local investigation into drug distribution and drug related criminal activity in Buncombe County. Court records show that Allison supplied the drug ring, which was operating in the Asheville area, with multiple controlled substances, including cocaine, crack cocaine, methamphetamine, heroin and other narcotics. Over the course of the investigation, law enforcement seized drugs, 12 firearms and ammunition, and $153,674 in cash.
In addition to Allison, seven other defendants have been sentenced after pleading guilty to drug conspiracy charges. They are:
- Prophet Karim Hadialim Allah – sentenced to 108 months in prison and five years of supervised release.
- William Luther Downs, Jr. – sentenced to 108 months in prison and five years of supervised release.
- Jeffrey Allen Wright – sentenced to 100 months in prison and five years of supervised release.
- Harry James Odum – sentenced to 72 months in prison and three years of supervised release.
- Elliot Norris Smith – sentenced to 60 months in prison and three years of supervised release.
- Derrick Maurice Perry – sentenced to 60 months in prison and four years of supervised release.
- Teresa Day Shuping – sentenced to 37 months in prison and three years of supervised release.
In making today’s announcement, U.S. Attorney King thanked the Drug Enforcement Administration, Homeland Security Investigations, the Asheville Police Department, the Buncombe County Anti-Crime Task Force, the Buncombe County Sheriff’s Office, the Black Mountain Police Department, and the Wilkes County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Carolina State Bureau of Investigation for their assistance in this case.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
St. Louis man sentenced to more than 14 years in prison for carjacking pizza driverRead the Press Release
ST. LOUIS – Ryan McDaniel, 25, of St. Louis, Missouri appeared before United States District Court Judge Stephen R. Clark late yesterday afternoon and was sentenced to 179 months in prison for carjacking a Domino’s Pizza driver in February 2021. McDaniel previously pleaded guilty in November.
According to the plea agreement, on or about February 5, 2021, McDaniel approached the victim who was making a Domino's pizza delivery at The Residences at Forest Park, a location within the Eastern District of Missouri. Brandishing a handgun, McDaniel demanded the keys to the victim's motor vehicle, a 2020 Mazda CX-30. McDaniel reached in the victim's pocket and grabbed the keys before fleeing the scene in the carjacked vehicle.
Minutes after the robbery, officers located the stolen Mazda CX-30 and a lengthy pursuit ensued. McDaniel was eventually taken into custody after the vehicle was disabled. Officers searched the vehicle and found two Springfield XD semiautomatic firearms. One of the firearms, which was located on the driver's seat, was stolen; the other firearm, located in the glovebox, belonged to the victim. McDaniel was also searched, resulting in the recovery of a Smith & Wesson .32 caliber revolver.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation.
Spokane Mental Health Counselor Agrees to Pay More Than $135,000 for Fraudulent Medicaid BillingRead the Press Release
Spokane, Washington – Dr. Ray Smith, a mental health counselor practicing in Spokane, and his company, “A Brief Counseling Center,” also known as “Healthy Counseling Center” (“ABCC”) have agreed to pay $138,984 to resolve allegations that he and his company fraudulently billed Washington State Medicaid. Dr. Smith is a licensed mental health counselor in the State of Washington and is the sole owner of ABCC. During the relevant time period, ABCC employed a number of mental health treatment providers, and billed Washington State Medicaid for their services. Washington State Medicaid – also known as Apple Health – is funded by federal and state taxpayers and provides health insurance for needy and low-income residents of Washington. Medicaid provides reimbursement for mental health treatment services provided by qualified and licensed providers who are enrolled and contracted with the state Health Care Authority, which administers the Medicaid program in Washington.
According to court documents, this settlement resolves allegations under the False Claims Act that Dr. Smith and ABCC improperly billed Medicaid for unlicensed and unqualified therapists who did not meet qualification requirements, were not contracted with the state, and were not eligible for reimbursement through Medicaid. The settlement also resolves allegations that Dr. Smith and ABCC fraudulently billed Medicaid for the services by falsely misrepresenting that the services had been provided by licensed and qualified therapists.
“Mental health services are a vital component of a safe and strong community, and our public funding for those services is a precious and limited resource,” said United States Attorney Vanessa R. Waldref. “Fraudulently billing the public for unqualified and unlicensed therapy services provided to some of the most vulnerable members of our community is simply unconscionable, and will not be tolerated.”
The case began in November 2019 when two whistleblowers who had previously provided billing services for ABCC filed a qui tam complaint under seal. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, the United States intervened in February 2022 and obtained the settlement. Pursuant to the settlement agreement, the relator will receive $25,712 of the settlement amount, which includes both state and federal components.
Washington Attorney General Bob Ferguson said “the COVID-19 pandemic has underscored the need for high-quality mental health services. To pose as qualified mental health professionals in order to claim Medicaid dollars is unethical, dangerous, and unlawful. I am proud of our collaboration with our federal partners, and the hard work it took to bring this company to justice. I look forward to continuing our work together to protect Medicaid dollars for those who need them.”
“Beneficiaries of federal health care programs deserve legitimate services furnished by certified practitioners,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Medicaid patients should receive nothing but quality care at all times. HHS-OIG and partnering agencies resolutely pursue providers who deviate from this commitment.”
United States Attorney Waldref commended the whistleblowers for exposing this fraud: “It takes real courage to come forward, and I thank the whistleblowers for performing their civic duties. I am extremely proud of the top-notch investigative work performed by HHS-OIG, and of our close partnership with Washington’s Office of the Attorney General, Medicaid Fraud Control Division. Today’s result demonstrates that we will work hand-in-glove with our law enforcement partners to protect precious public funds from greed, and that we will continue to aggressively investigate and prosecute health care fraud in Eastern Washington.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HHS-OIG’s Seattle Field Office, and the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division. The Executive Office for U.S. Attorney’s Forensic Investigations Group provided invaluable financial analytic support. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.
ABCC Final Settlement AgreementSouth Florida Man Sentenced to 25 Years in Federal Prison for Exploiting Poor Children in the PhilippinesRead the Press Release
Miami, Florida – A 67-year-old Pahokee, Florida man was sentenced yesterday in West Palm Beach federal court to 25 years in prison for enticing poor children in the Philippines to send him pornographic images of themselves in exchange for money and other child exploitation crimes, some of which involved toddlers.
Dennis Pollard used a social media messenger application in 2020 to find young girls in the Philippines whom he could groom for the purpose of producing child sexual abuse material (CSAM). Pollard offered, and sometimes provided, money through wire services in exchange for pornographic images of the girls. Over nearly six-weeks, Pollard convinced a 13-year-old girl, living in poverty, to record herself performing sexual acts in exchange for money. Pollard also directed a woman in the Philippines to record herself sexually abusing her two toddler-aged children. Pollard distributed CSAM of his victims to groom others and obtain more CSAM. In 2015, Pollard attempted to produce CSAM through a different account on the same social media messenger application. The Palm Beach County Sheriff’s (PBSO) Internet Crimes Against Children Task Force executed a search warrant at Pollard’s Pahokee residence. Pollard was found to have dozens of child sexual abuse images and videos on his phone, as well as on CDs that he had possessed for nearly a decade.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigation (HSI), Miami Field Office, announced the sentence imposed by U.S. District Judge Robin L. Rosenberg.
HSI Miami’s West Palm Beach Office investigated the case, with assistance from the PBSO and the Palm Beach County State Attorney’s Office.
Assistant U.S. Attorney Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80107.
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Rochester Man Pleads Guilty to Arson of Multiple Buildings in St. Paul, Including Goodwill store and Gordon Parks High SchoolRead the Press Release
MINNEAPOLIS – A Rochester man who fled to Mexico to evade apprehension, and was later located and returned by Mexican authorities, has pleaded guilty to arson of two retail stores and a school during the summer of 2020, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on May 28, 2020, Jose Angel Felan, Jr., 35, set fire to the Goodwill retail store, the Gordon Parks High School, and the 7 Mile Sportswear store, all of which were located on University Avenue in St. Paul. Following the arsons, Felan and his wife and co-defendant Mena Dhaya Yousif, 23, fled the state. Felan and Yousif traveled by car from Rochester, Minnesota, to Texas, where Felan had family. Ultimately, Felan and Yousif fled the United States and escaped to Mexico. On February 15, 2021, following an anonymous tip, Felan and Yousif were located and detained by Mexican immigration authorities and returned to the United States.
Felan pleaded guilty yesterday before Senior Judge David S. Doty to one count of arson. A sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division. The fugitive apprehension efforts were led by the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys Melinda A. Williams and Emily A. Polachek.
Raleigh Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
NEW BERN, N.C. – A Raleigh man was sentenced today to 48 months in prison followed by 10 years of supervised release for possessing a large amount of child pornography. On December 14, 2020, Joshua Dominique Grisson pled guilty to the charges.
According to court documents and other information presented in court, Grisson, 24, possessed 3,804 images and 432 videos of child pornography. The Federal Bureau of Investigation first discovered Grisson’s crime in North Carolina while investigating another person linked to distribution of child pornography in Wisconsin in 2018. Through that investigation, FBI agents were able to monitor the online activities of several people engaged in the sharing of images and videos of child pornography. The evidence collected by the agents led them to Grisson’s home in North Carolina.
On June 18, 2019, FBI agents executed a search warrant at Grisson’s home in Raleigh. The agents found child pornography on several computer devices owned by Grisson. A forensic analysis of those devices uncovered 3,804 images and 432 videos of child pornography.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation and the Raleigh Police Department investigated the case, with assistance from the National Center for Missing and Exploited Children (NCMEC), and Assistant U.S. Attorney John Parris prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00051-FL.
Raleigh County Woman Pleads Guilty to Federal Fraud ChargeRead the Press Release
CHARLESTON, W.Va. – A Raleigh County woman pleaded guilty today to a federal fraud charge.
According to court documents and statements made during the plea hearing, Wanda Jane Goode, 42, of Shady Spring, was a cashier at a supermarket located in Beaver that sold Visa prepaid debit cards. As a cashier, part of Goode’s job was to activate these prepaid cards. From April 2019 to September 2019, Goode fraudulently activated numerous prepaid cards for her own personal use. During the scheme, Goode made more than $87,000 in fraudulent purchases or payments with the prepaid cards. Pursuant to her plea agreement, Goode will pay $87,265.50 in restitution.
Goode pleaded guilty to wire fraud and faces up to 20 years in prison when she is sentenced on June 16, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Secret Service.
United States District Judge Frank W. Volk presided over the hearing. Assistant U.S. Attorney Negar Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-00008.
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Previously convicted felon sentenced to 14 years in prison for gun, drug crimesRead the Press Release
CINCINNATI – Da’Quan Payne, 30, of Cincinnati, was sentenced in U.S. District Court to 170 months in prison for committing five federal crimes related to firearms and narcotics.
According to court documents, Payne possessed nine firearms, approximately $194,000 in cash, and distributable amounts of fentanyl, heroin, methamphetamine, cocaine and marijuana. He had nearly $158,000 in cash in his home.
In June 2019, agents from the Norwood Drug Task Force, Ohio Bureau of Criminal Investigation (BCI) and Cincinnati Police Department launched an investigation into Payne’s suspected drug-trafficking activity.
They conducted five law-enforcement controlled purchases of fentanyl from Payne. During those purchases, law enforcement observed Payne carrying a firearm. As a previously convicted felon, Payne is prohibited from possessing a firearm or ammunition.
Investigators learned that Payne kept some of his supplies in storage lockers. During a search of Payne’s storage units, law enforcement discovered eight of Payne’s nine firearms, along with fentanyl, methamphetamine and cocaine. Payne was also storing more than $24,000 in cash in the lockers.
A search of Payne’s vehicle revealed the ninth firearm, more than $12,000 in cash and various narcotics.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kent Kleinschmidt, Acting Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio Attorney General Dave Yost; Norwood Police Chief William Kramer and Interim Cincinnati Police Chief Teresa Theetge announced the sentence imposed by Senior U.S. District Court Judge Michael R. Barrett. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
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Portage Man Pleads Guilty to Mail Fraud and Aggravated Identity Theft Related to Amazon’s Textbook Rental ProgramRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Geoffrey Mark Hays Talsma, 36, of Portage, Michigan, pled guilty in the United States District Court in Lansing, Michigan, to charges of mail fraud and aggravated identity theft. Talsma is the fourth and last individual to plead guilty to charges of defrauding Amazon’s Textbook Rental Program.
According to the plea agreement, from January 2016 to March 2021, Talsma defrauded Amazon by using the internet to create numerous Amazon accounts and email accounts to rent textbooks and sell the textbooks for a profit when he should have returned the textbooks or paid the agreed upon buy-out price. Talsma caused Amazon to ship the textbooks through the United States Postal Service or across state lines using private commercial carriers. He concealed his fraudulent activities in part by recruiting and paying unwitting individuals to accept shipments of stolen textbooks at their homes so that Amazon would not detect a pattern of large volumes of books going to locations associated with him. Over time, Talsma taught some of these same individuals his scheme to defraud and actively supervised their participation in the fraud. Defendant shared the profits of the fraud scheme with these individuals after he sold the textbooks over the internet and at various bookstores, including a bookstore in Kalamazoo, Michigan. Additionally, according to the plea agreement, Talsma also ordered rental textbooks in the names of unwitting individuals and then pretended to be those individuals when calling Amazon and falsely claiming that he did not receive the textbooks. Talsma then received a credit from Amazon that he used to order further textbooks.
Talsma’s sentencing is scheduled for June 28, 2022, in the United States District Court in Lansing, Michigan. Talsma faces a maximum term of imprisonment of 20 years for the mail fraud conviction and a maximum term of imprisonment of two years for the aggravated identity theft conviction, to be served consecutively to any sentence imposed for the mail fraud. The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Restitution and forfeiture of certain assets obtained with the proceeds of the scheme may also be ordered as a result of his convictions.
The offices of the Federal Bureau of Investigation, Kalamazoo, and the United States Postal Inspection Service, Grand Rapids, are handling the investigation. Amazon referred the matter to law enforcement and has supported the investigation.
Assistant U.S. Attorney Ronald M. Stella is prosecuting the case.
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Ohio-Based Stock Trader Pleads Guilty to Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that STEVEN GALLAGHER pled guilty to one count of securities fraud. GALLAGHER, using the alias “Alex DeLarge,” created a stock promotion account on Twitter that gained over 70,000 followers, and used that account to tout certain over-the-counter penny stocks. GALLAGHER disseminated false and misleading information about at least one of those stocks in order to induce his followers to purchase that stock and drive up its price, while he secretly sold his holdings. GALLAGHER pled guilty in front of United States District Judge Valerie E. Caproni.
According to the Information, the Complaint, and other statements made in court:
STEVEN GALLAGHER is an active day trader in over-the-counter securities, or “OTC securities.” Those securities typically do not trade on centralized exchanges such as the New York Stock Exchange or the NASDAQ Stock Exchange. OTC securities often trade for less than one dollar per share, and thus are often referred to as “penny stocks.” Many OTC securities are thinly traded, and therefore are particularly susceptible to stock manipulation schemes.
In September 2019, GALLAGHER created a Twitter account using the alias “Alex DeLarge,” a character from the Anthony Burgess novel A Clockwork Orange and the Stanley Kubrick film of the same name (the “DeLarge Twitter Account”). As of October 19, 2021, the DeLarge Twitter Account had over 70,000 followers. GALLAGHER regularly used the DeLarge Twitter Account to tout various penny stocks in which he personally held substantial positions. GALLAGHER also regularly posted images of his brokerage account balances and trading gains on the DeLarge Twitter Account in order to bolster his reputation and induce his followers to trade in accordance with his suggestions.
From approximately December 2020 through February 2021, GALLAGHER used the DeLarge Twitter Account to operate a fraudulent pump-and-dump scheme with respect to penny stock issued by a public company known as SpectraScience, Inc. (“SCIE”). As part of his fraudulent scheme, GALLAGHER began acquiring a substantial volume of SCIE shares in December 2020. As he acquired shares, GALLAGHER and a few close associates discussed their plans to push the stock price up after they obtained substantial holdings at relatively cheap prices. GALLAGHER then used the DeLarge Twitter Account to artificially “pump” SCIE stock. This included both re-tweeting posts that purported to announce potentially positive news for SCIE, such as FDA approvals for their products, and making materially false and misleading statements about GALLAGHER’s own position in SCIE stock. For example, in or about January 2021, GALLAGHER repeatedly tweeted that he planned on holding and had not sold any of his shares of SCIE. These statements, however, were false and GALLAGHER had in fact sold millions of shares of SCIE at heightened prices.
While GALLAGHER was engaged in this scheme, he knew or purposely avoided learning that SCIE was a shell company with no actual operations or prospects for success. For example, in direct messages with some of his followers, GALLAGHER received information suggesting that SCIE was really just a “shell with not guts.” Nevertheless, GALLAGHER engaged in his Twitter-based pump and dump scheme, thereby earning tens of thousands of dollars in illicit profit.
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GALLAGHER, 51, of Maumee, Ohio, plead guilty to one count of securities fraud, which carries a maximum sentence of twenty years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GALLAGHER is scheduled be sentenced on June 27, 2022, by Judge Caproni.
U.S. Attorney Williams praised the work of the HSI. Mr. Williams further thanked the Securities and Exchange Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper, Daniel Tracer, and Allison Nichols are in charge of the prosecution.
Northumberland County Man Indicted for Production of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 24, 2022, Scott Eric Snyder, age 50, of Northumberland County, Pennsylvania, was indicted on charges of production of child pornography.
According to United States Attorney John C. Gurganus, the indictment alleges that on July 7, 2012 and July 13, 2013, in Northumberland County, Snyder produced child pornography.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
The maximum penalty under federal law for these offenses is 30 years’ imprisonment, with a mandatory minimum sentence of 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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New York Man Pleads Guilty to Smuggling 10 Kilos of Meth Aboard BusRead the Press Release
KANSAS CITY, Mo. – A New York, N.Y., man pleaded guilty in federal court today to smuggling more than 10 kilograms of methamphetamine aboard a bus traveling through Kansas City, Missouri, from Los Angeles, California, to New York.
Douglas D. McDowell, 63, pleaded guilty before U.S. District Judge Greg Kays to one count of possessing methamphetamine with intent to distribute.
Officers with the Missouri Western Interdiction and Narcotics Task Force (MoWIN) were conducting interdiction activities at a local bus terminal on May 10, 2021, when a drug detecting police dog indicated the presence of drugs in the checked luggage of the bus undercarriage.
Officers searched two suitcases that belonged to McDowell. One suitcase contained nine bundles of methamphetamine and the other contained 12 bundles of methamphetamine that weighed a total of 10.16 kilograms.
Under federal statutes, McDowell is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
New York Man Detained in Rhode Island on Drug Trafficking and Conspiracy ChargesRead the Press Release
PROVIDENCE, R.I. – A New York man who allegedly fled federal and state law enforcement by running onto an Interstate Rte. 95 offramp as officers and agents attempted to arrest him on drug trafficking charges has been ordered detained in federal custody following an initial appearance in U.S. District Court, announced United States Attorney Zachary A. Cunha.
A federal criminal complaint charges Miguel Evangelista Carrasco, 31, of Bronx, NY, with possession with intent to distribute controlled substances and conspiracy to distribute and possess with intent to distribute controlled substances.
It is alleged in charging documents that earlier this month U.S. Postal Service Inspection agents, with the assistance of a Rhode Island State Police narcotic trained K-9, determined that a package shipped from Puerto Rico to a Warwick, RI, address likely contained narcotics. A court-authorized search of the package on February 14, 2021, revealed a gift-wrapped package sprayed with foam; inside was a brick like object, wrapped in saran wrap, carbon paper, and rubber, containing two kilograms of cocaine.
Charging documents allege that on February 17 and again on Wednesday of this week, Carrasco appeared at the U.S. Postal Service’s Providence Processing and Distribution Center to claim the package. He presented a redelivery slip left by the Postal Service at the Warwick address and displayed an image which appeared to be a Rhode Island driver’s license which contained a photograph of Carrasco and the name of the individual to whom the package was addressed. As Carrasco left the post office with the package, he was confronted by U.S. Postal Inspection Service agents and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force. Carrasco fled on foot, running onto an Interstate Rte. 95 offramp, where he was apprehended after falling on the roadway, injuring his hands, feet, and left leg.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Stacey P. Veroni.
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New York City Man Convicted of Threatening to Kill U.S. Senator Joe Manchin and Fox News Hosts Laura Ingraham and Greg GutfeldRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RICKEY JOHNSON was convicted yesterday of threatening a federal official and making interstate threats, following a one-week jury trial before the Honorable Lewis A. Kaplan. JOHNSON threatened to kill United States Senator Joe Manchin and Fox News television hosts Greg Gutfeld and Laura Ingraham in direct messages and publicly posted videos on Instagram.
U.S. Attorney Damian Williams said: “Rather than express his political differences constructively, Rickey Johnson escalated his discord by instilling fear. Johnson's attempts to scare and stifle a U.S. Senator and two Fox News hosts were federal crimes for which he has now been convicted by a New York jury.”
According to court documents and the evidence at trial:
On January 30, 2021, JOHNSON sent direct private messages to Mr. Gutfeld that threatened, “you will be killed.” On February 3, 2021, JOHNSON posted public videos in which he threatened to kill Senator Manchin, Mr. Gutfeld, and Ms. Ingraham. Among other things, JOHNSON declared that Senator Manchin was “dead” and would be “executed”; told Mr. Gutfeld that he was “going to take [his] life”; and said that he would “kill” Ms. Ingraham with his “bare hands.”
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JOHNSON, 48, of New York, New York, was convicted of two counts of transmitting threatening interstate communications, which each carry a maximum sentence of five years in prison, and one count of threatening a federal official, which carries a maximum sentence of ten years in prison. JOHNSON was also acquitted of one count of threatening a federal official. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
JOHNSON is scheduled to be sentenced by Judge Kaplan on May 25, 2022.
Mr. Williams praised the outstanding investigative work of the New York City Police Department (“NYPD”), the NYPD’s Intelligence Bureau, Leads Investigation Unit, and the NYPD’s 23rd Precinct Field Intelligence Team.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant United States Attorneys Patrick R. Moroney, Kyle A. Wirshba, and Andrew J. DeFilippis are in charge of the prosecution.
New Orleans Woman Pleads Guilty to Social Security Fraud Spanning More Than Three DecadesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BETTY ARRINGTON a/k/a “Betty Callie Arrington,” a/k/a “Betty Francis C Miller,” a/k/a “Betty Miller” (“ARRINGTON”), age 72, a resident of New Orleans, Louisiana, pled guilty on February 23, 2022 in federal court before U.S. District Judge Lance M. Africk to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court records, ARRINGTON engaged in a 35-year multifaceted scheme to defraud the Social Security Administration (“SSA”). From 1984 through 2019, ARRINGTON intentionally used a Social Security number (“SSN”) not assigned to her by the Commissioner of the SSA to conceal her earnings from employment in the New Orleans area. ARRINGTON’s fraudulent use of a SSN, in addition to the concealment of program eligibility factors and the intentional submission of false statements to SSA, aided ARRINGTON in fraudulently gaining and maintaining Supplemental Security Income Disability benefits totaling approximately $164,270.90.
The Court set sentencing in this matter for June 1, 2022. ARRINGTON faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Duane A. Evans praised the work of the Social Security Administration Office of Inspector General for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Brandon Long.
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New Orleans Men Plead Guilty to Conspiracy to Distribute FentanylRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DENZEL SHINE, age 24, of New Orleans, and RAHKEEN ROBERTS, age 24, of New Orleans, pled guilty on February 23, 2022 to one count of conspiracy to distribute and possess with the intent to distribute 40 grams or more of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B) and 846.
According to court documents, SHINE and ROBERTS conspired with each other and others to distribute fentanyl from sometime prior to January 9, 2021 until August 19, 2021. SHINE and ROBERTS face a mandatory minimum sentence of 5 years, up to 40 years of imprisonment, up to $5,000,000 in fines, at least 4 years of supervised release, and a $100 mandatory special assessment fee.
This case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Nashville Man Convicted of Federal Firearm & Drug Offenses After Killing Another During Drug DealRead the Press Release
NASHVILLE – A federal jury in Nashville yesterday found a local man guilty of federal firearm offenses following the shooting death of another man during a drug deal in 2019, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Tru Booker, 30, of Nashville, Tenn., was convicted of all counts after a three-day trial before U.S. District Judge William L. Campbell, Jr. Booker was previously indicted on charges of possessing, using, brandishing, and discharging a weapon in furtherance of a drug trafficking crime; possession with the intent to distribute marijuana and methamphetamine; being an unlawful user of a narcotic in possession of a firearm and ammunition; and possessing a weapon during the furtherance of a drug trafficking crime.
“I commend the trial team and our partner law enforcement agencies for the excellent investigative work and preparation in seeking justice in this matter,” said U.S. Attorney Wildasin. “This is another example of the cooperative effort underway to systematically remove dangerous criminals and drug dealers from our communities for long periods of time.”
According to testimony at trial, on July 8, 2019, Booker agreed to meet Markus Cantrell in the driveway of his grandmother’s house on Ewingwood Drive, in Nashville, for the purpose of selling Cantrell marijuana. Booker was sitting in the vehicle with his firearm by his side, preparing a quarter pound of marijuana to sell. Cantrell entered the vehicle, and shortly thereafter a struggle ensued, with several shots being fired inside the vehicle, resulting in Cantrell being struck in the leg and Booker being struck in the arm.
The struggle continued on the ground outside of the car, and Booker’s girlfriend and mother came to his aid and began striking Cantrell. Booker eventually gained control of the firearms, and despite his mother’s pleas to let Cantrell go, Booker shot Cantrell in the forehead at close range, killing him.
Less than three weeks after this incident, Booker was involved in a minor traffic crash in Madison, Tennessee. The subsequent investigation by Metro Police officers found digital scales; approximately 211 grams of marijuana; 195 methamphetamine pills; Hydrocodone and Xanax pills; $1,238 in cash; plastic baggies; a loaded Taurus, 9mm pistol; and two extended magazines for the pistol.
Booker faces a mandatory minimum sentence of 10 years in prison, along with a mandatory consecutive sentence of five years in prison, when he is sentenced later this year. Additional charges relating to the murder of Markus Cantrell are pending in state court.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Josh Kurtzman and Dwight Artis prosecuted the case.
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More than 200 Firearms Seized in ATF, Burrillville Police Department Project Safe Neighborhoods InvestigationRead the Press Release
PROVIDENCE, RI – A Burrillville, RI, man was arrested on Thursday following a Project Safe Neighborhoods investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF) and the Burrillville Police Department that resulted in the overnight seizure of 211 firearms and pounds of ammunition during a court-authorized search of his home, announced United States Attorney Zachary A. Cunha.
The firearms and ammunition were allegedly discovered in the residence of Ronald Andruchuk, 37, after officers responded to his home for the ninth time in recent months to investigate reports of shots fired. Shots were still being fired as officers arrived, several of which traveled over the heads of law enforcement, passing within four feet of the officers. Andruchuk was allegedly found to be wearing a bulletproof vest and to be carrying four firearms and methamphetamine.
A court-authorized search of the defendant’s home found 211 firearms and the thousands of rounds of ammunition strewn throughout the residence and the property he shares with his wife and three young children.
According to charging documents, in the fall of 2021, ATF became aware that between July 2021 and November 2021, Andruchuk purchased 169 firearms from federally licensed firearms dealers. It is alleged that, when making the purchases, Andruchuk made false statements on ATF applications.
A subsequent investigation determined that in April 2018, Cranston Police encountered Andruchuk who allegedly exhibited a strong odor of marijuana. He claimed to be a RI medical marijuana patient and presented a medical marijuana card; in August 2019, a Cranston Detective observed an alleged drug transaction between Andruchuk and another individual. Andruchuk was detained and allegedly found to be in possession of numerous oxycodone pills, morphine, and naloxone. He allegedly admitted to purchasing the drugs and having a substance abuse problem; and in December 2021, it is alleged that two firearms, drugs, and other items were located in the drop ceiling of a bathroom inside a Millbury, MA, retail store shortly after Andruchuk vacated the restroom. One of the firearms was listed as belonging to Andruchuk, who did not have a license to possess a firearm in Massachusetts.
Andruchuk is charged by way of a federal criminal complaint with possession of a firearm by a prohibited person, false statements in an application to purchase firearms, and causing false records to be kept by a federally licensed firearms dealer.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant U.S. Attorneys Ronald R. Gendron and Sandra R. Hebert.
Moorhead Man Sentenced to 10 Years in Prison for Distribution of Child PornographyRead the Press Release
MINNEAPOLIS – A Moorhead man has been sentenced to 120 months in prison followed by 15 years of supervised release for distributing material depicting the sexual abuse of children. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
According to court documents, between February 2016 and August 2020, Joey David Gonzales, 36, used email and other online media to advertise, solicit, and trade images and videos depicting the sexual exploitation of children.
On August 24, 2021, Gonzales pleaded guilty to one count of distribution of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was the result of an investigation conducted by the FBI, the Minnesota Bureau of Criminal Apprehension, and the Becker County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
Michigan City Woman Sentenced to 21 Months in PrisonRead the Press Release
SOUTH BEND – Latavia Fleming, 43 years old, of Michigan City, Indiana, was sentenced on February 24, 2022, by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to making a false statement during the purchase of a firearm, announced United States Attorney Clifford D. Johnson.
Fleming was sentenced to 21 months in prison followed by 2 years of supervised release.
According to documents in the case, over the course of several months in 2020, Fleming bought multiple firearms at gun stores. During the purchases, Fleming falsely represented she was the actual buyer of the firearms when she was not. In fact, she bought one firearm for an individual who could not legally purchase firearms. She provided one firearm to a convicted felon who then sold it to someone else. She also sold or traded firearms to several other individuals.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department. The case was prosecuted by Assistant United States Attorney Molly E. Donnelly.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Miami-Dade Police Department Employee Pleads Guilty to COVID Relief FraudRead the Press Release
Miami, Florida – Miami-Dade resident Elisa Rivera, 50, pled guilty yesterday before Senior U.S. District Judge Donald L. Graham to a felony Information charging her with conspiracy to commit wire fraud in connection with a scheme to file fraudulent applications to the U.S. Small Business Administration to COVID-19 relief advance grants and low-interest COVID-19 relief loans.
According to the facts admitted at the change of plea, Elisa Rivera, during 2019 and 2020, was employed on a full-time basis by the Miami-Dade Police Department (“MDPD”) as an Administrative Officer. As an MDPD employee, Rivera suffered no loss of salary due to the COVID-19 pandemic. Despite this, on July 3, 2020, Rivera authorized a co-conspirator (identified as “Individual 1” in the Information) to electronically submit an EIDL application on her behalf stating that Rivera was the 100% owner of a for-profit business operating under the name “Elisa Rivera.” That application falsely and fraudulently certified that the business named “Elisa Rivera” was established on or about March 1, 2017, and that during the twelve (12) month period prior to January 31, 2020, that business had gross revenues of $325,446 and twelve (12) employees. In reality, the defendant did not own any business, was not an independent contractor, and had no business gross revenues or employees.
After having Individual 1 submit the fraudulent EIDL application on her behalf, Rivera offered to, and did, submit fraudulent EIDL applications to the SBA on behalf of a limited group of other individuals (referred to as “the Applicants” in the Information) who also did not own small businesses and did not qualify for EIDL relief. These applications contained false representations as to the existence of their small businesses, their gross revenues, and the number of employees each business had. It was the intent of Rivera and the Applicants to obtain for the Applicants the $10,000 EIDL advances from the SBA, but not to obtain any additional loan amount. As a result of these fraudulent applications, certain Applicants received the $10,000 advances from SBA. In exchange for submitting these fraudulent EIDL applications to the SBA, Rivera charged Applicants a fee of up to $1,000 each.
Rivera is scheduled for sentencing on May 3, 2022, at 2:00 p.m. before Judge Graham, where she faces a possible maximum sentence of five years in prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration, Investigations Division (SBA-OIG), made the announcement.
U.S. Attorney Gonzalez commended the investigative efforts of the FBI’s Miami Area Corruption Task Force, which includes task force officers from the Miami-Dade Police Department’s Professional Compliance Bureau - Criminal Conspiracy Unit, and SBA-OIG in this matter, and thanked the Miami-Dade County Office of Inspector General for their invaluable assistance with this case. This case is being prosecuted by Assistant U.S. Attorney Edward N. Stamm and the forfeiture matters are being handled by AUSA Gabrielle Charest-Turken.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 22-cr-20028.
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Metro East Man Sentenced to Prison for Bank Fraud ScamRead the Press Release
EAST ST. LOUIS, Ill. – Lagardo Wright, 21, of Fairview Heights, Illinois, was sentenced to 27
months in federal prison today for orchestrating a large-scale bank fraud scheme.From at least February 2019 until February 2020, Wright led a team of coconspirators that printed
counterfeit checks, deposited them into other people’s bank accounts, and withdrew the available
proceeds before the banks could determine the checks were counterfeit. Their scheme targeted at
least ten different financial institutions and caused losses over $95,000.During the conspiracy, Wright’s main objective was finding valid bank accounts to
exploit. Because the banks closed each account for fraud after his counterfeit checks inevitably
bounced, Wright needed a constant supply of new account holders with valid bank accounts to
perpetuate his scheme. He solved this problem by developing and directing a network of
“recruiters.” These middlemen convinced naive account holders to turn over their online
banking information, including usernames, passwords, and pin numbers, in exchange for the promise
of money.Whenever a recruiter found an account holder willing to participate, Wright accessed the account
holder’s bank account online, adjusted deposit and withdrawal limits, printed counterfeit checks,
and arranged for as many fraudulent transactions as possible before the banks caught on and closed
the account. Then he waited for his recruiters to bring him a new account or tried to solicit some
on his own.Wright and his recruiters found new account holders mostly through social media and cellphone apps,
where they flaunted their “success” to attract followers. Wright posted pictures and videos of
cash, expensive clothing, guns, drugs, and screenshots of bank accounts showing large account
balances. He and his recruiters implored their online followers to contact them if they had a valid
bank account and wanted to make thousands of dollars. Of course, Wright never mentioned that he got
the money by committing bank fraud in the account holders’ names, or that the account holders would
lose their ability to bank and have red flags on credit reports for years to come. In fact, if
young account holders seemed hesitant, Wright and his recruiters assured them that
everything was legitimate and they couldn’t get in any trouble.During sentencing, United States District Court Judge David Dugan noted that Wright committed
serious crimes by leading a long-term enterprise that was sophisticated for his age. In addition to
the prison sentence, Judge Dugan ordered Wright to spend 4 years on supervised release and pay over $30,000 in restitution.
Two of Wright’s coconspirators, Aijeigh McShan and Cedric Sheard, have pled guilty and will be
sentenced next month. McShan’s sentencing hearing is scheduled for March 9, 2022.
Cedric Sheard will be sentenced on March 16, 2022.The investigation was conducted by the United States Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.Metairie Man Sentenced for Conspiracy to Distribute DrugsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that EMILE JONES, age 44, of Metairie, Louisiana, was sentenced on February 23, 2022 by the Honorable Jane Triche Milazzo after previously pleading guilty to violations of the Federal Controlled Substances Act.
Specifically, JONES previously pled guilty to one count of conspiracy to distribute heroin, cocaine hydrochloride, fentanyl and methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846; one count of possession with the intent to distribute 500 grams or more of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B) and one count of distribution of heroin, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C).
According to court records, JONES conspired with others to distribute cocaine hydrochloride, heroin and fentanyl, and JONES possessed over 500 grams of cocaine hydrochloride on September 23, 2018 in Detroit, Michigan.
Judge Milazzo sentenced JONES to a term of imprisonment of 60 months, 4 years of supervised release, and a $300 special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the federal Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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McLaughlin Man Indicted for Abusive Sexual Contact with a ChildRead the Press Release
United States Attorney Dennis Holmes announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact with a Child.
Theophile Donald Soft, Jr., age 60, was indicted on December 14, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 23, 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, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 2013 and April 2015, in Corson County, South Dakota, Soft knowingly engaged in, and caused to engage in, a sexual contact with a minor female.
The charge is merely an accusation and Soft 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.
Soft was released on bond pending trial. A trial date has not been set.
Massachusetts Man Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury convicted a Massachusetts man for submitting fraudulent loan applications seeking more than $13 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security Act.
According to evidence presented at trial, Elijah Majak Buoi, 40, of Winchester, submitted six fraudulent PPP loan applications on behalf of his company Sosuda Tech LLC (Sosuda) to four different SBA-approved lenders. In each loan application, Buoi misrepresented the number of employees and payroll expenses. Buoi also submitted fraudulent IRS tax forms in support of his applications. The evidence at trial showed that Sosuda was a startup company with no U.S.-based payroll and no U.S.-based employees. As a result of his scheme, Buoi obtained a $2 million PPP loan. The government recovered approximately $1.97 million of the loan funds.
Buoi was convicted of four counts of wire fraud and one count of making a false statement to a financial institution. He is scheduled to be sentenced on June 16, and faces a maximum penalty of 20 years in prison for each wire fraud conviction and 30 years in prison for making false statements to a financial institution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Rachael S. Rollins for the District of Massachusetts; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Division; Special Agent in Charge Joleen D. Simpson of IRS Criminal Investigation (IRS-CI) in Boston; Acting Special Agent in Charge Stephen Donnelly of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (FRB-OIG), Eastern Region; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General (SBA-OIG), Eastern Regional Office; and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), New York Region, made the announcement today.
The FBI, IRS-CI, FRB-OIG, SBA-OIG and FDIC-OIG investigated the case.
Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mackenzie A. Queenin of the District of Massachusetts prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Sentenced to 14 Years in Prison for Child ExploitationRead the Press Release
SAN JUAN, PUERTO RICO – Today, U.S. District Judge Aida Delgado-Colón sentenced Mario Torres-Rodríguez to a term of 168 months (14 years) in prison and 10 years of supervised release for transportation of a minor to engage in illegal sexual activity, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The defendant plead guilty on August 30, 2021.
From on or about July 2017 through January 2018, the defendant paid a 15-year-old minor female to engage in illegal sexual activity with him. The illegal activity included sex acts as well as production of child pornography. During this same period of time, from approximately June 2017 through December 2017, the defendant would pick the minor up from school or from her parents’ business and then transport her in his car to secluded locations and engage in sexual activity. Defendant Torres-Rodríguez bought the minor an iPhone so they could communicate via internet instant messaging apps. Torres- Rodríguez was approximately 63 years old at the time, and knew the minor’s family well.
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) was in charge of the investigation. Special Assistant U.S. Attorney Cristina Caraballo, Assistant U.S. Attorney Nicholas Cannon, and Assistant U.S. Attorney Ginette Milanes prosecuted the case.
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Lycoming County Man Sentenced for Tax EvasionRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Rinker, 51, of Lycoming County, was sentenced to two years of probation by Chief U.S. District Court Judge Matthew W. Brann for tax evasion.
According to United States Attorney John C. Gurganus, Rinker pleaded guilty to a criminal information that charged him with using his position as the manager of the Harvest Moon Restaurant in Williamsport, Pennsylvania, to embezzle over $300,000, that he subsequently failed to report as income to the Internal Revenue Service (“IRS”) from 2014 to 2017. Rinker was ordered to pay $64,250 in restitution to the IRS prior to the sentencing hearing held on February 18, 2022.
The case was investigated by the IRS’s Criminal Investigations Division. Assistant U.S. Attorney Alisan V. Martin prosecuted the case.
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Leader of Youngstown Area Drug Trafficking Conspiracy Sentenced to 12 Years in PrisonRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Korey K. Moody, 36, of Youngstown, Ohio, was sentenced today by U.S. District Judge Donald C. Nugent to 12 years in prison after Moody pleaded guilty to leading a drug trafficking conspiracy that sought to distribute cocaine, crack cocaine, heroin, fentanyl, fentanyl analogues and methamphetamine. Moody was one of nine individuals charged in a fifty-nine-count indictment with drug trafficking in the Youngstown area.
According to court documents, from July 2019 to December 2019, Moody supplied heroin, fentanyl, fentanyl analogues, cocaine, and methamphetamine to other members of the conspiracy for distribution in the areas around Youngstown. Court documents state that Moody received his drug supply from individuals in Michigan and, in turn, provided the drugs to other members of the conspiracy for redistribution.
Court documents go on to state that members of the conspiracy used cell phones and code words such as “man,” “girl,” “boy,” “hardware,” “onion” and others to facilitate their drug trafficking activities.
Prior to this conviction, Moody was previously convicted of possession with intent to distribute crack cocaine in the United States District Court for the Northern District of Ohio.
As part of the plea agreement for this case, Moody has agreed to forfeit a 2014 Jaguar F Type Convertible, a 2016 Dodge Durango, a diamond bracelet, a Rolex watch and a yellow gold chain purchased with drug trafficking proceeds.
Acting United States Attorney Michelle M. Baeppler, FBI Special Agent in Charge Eric B. Smith and Bryant Jackson and Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division, made the announcement.
This case was investigated by the FBI, ATF and Mahoning Valley Law Enforcement Task Force. This case was prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Justice Department Settles Case Against Village of Walthill, Nebraska, for Restricting Christian Church from Building New Place of WorshipRead the Press Release
The Justice Department today announced that it has reached a settlement resolving allegations that the Village of Walthill, Nebraska, violated a church’s rights under the Religious Land Use and Institutionalized Persons Act (RLUIPA). The department alleged that the Village unlawfully refused to grant the necessary permits required for Light of the World Gospel Ministries Inc. (LOTW), a nondenominational Christian Church, to construct a new church building on land it owns in a commercial district of the Village. Under the Village’s zoning code, churches and other religious institutions are required to obtain a special use permit to operate anywhere in the Village.
The settlement, which was approved today by the U.S. District Court for the District of Nebraska, resolves a lawsuit the United States filed in February 2020. The United States alleged that the Village’s refusal to allow LOTW to construct a new church on its property substantially burdened its religious exercise. The lawsuit also alleged that the Village treated LOTW less favorably than nonreligious assemblies and institutions that were allowed to construct buildings for noncommercial uses in the same district during the same period.
“The ability to establish a place for collective worship and other religious services is a fundamental right protected by our civil rights laws,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will remain vigilant in protecting the rights of religious communities to build houses of worship and use their property for religious purposes.”
“RLUIPA protects the right of every religious community to worship free from unlawful burdens,” said U.S. Attorney Jan W. Sharp for the District of Nebraska. “We will not tolerate the unlawful use of zoning or land use restrictions to infringe on that right.”
The settlement provides for the approval of the necessary permits so that LOTW can construct a new, multi-use church facility in downtown Walthill; prohibits the Village from engaging in future violations of RLUIPA; mandates RLUIPA training for Village Board members and staff; and requires that the Village provide notice to the public regarding rights protected by RLUIPA and comply with recordkeeping and reporting requirements.
The court also recently approved another settlement to resolve a related lawsuit that LOTW filed against the Village.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division’s Housing and Civil Enforcement Section at 1-833-591-0291 or the U.S. Attorney’s Office for the District of Nebraska at (402) 661-3700, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Jury convicts Albuquerque man of federal robbery and firearms crimesRead the Press Release
ALBUQUERQUE, N.M. – A federal jury today returned a guilty verdict on Jacquan Abe, 24, of Albuquerque, for one count each of robbery, using, carrying and brandishing a firearm during and in relation to a crime of violence, and possession of a stolen firearm. Abe will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Abe on April 14, 2021.
The evidence at trial showed Abe lived in a house directly behind an automobile repair shop on Eubank Boulevard. On Aug. 6, 2019, Abe confronted an employee of the auto business while wearing a Highland High School sweatshirt. Abe accused the auto business of spying on his home with its security cameras, which was not true. The shop employee became frightened by Abe’s aggressiveness and retrieved a pistol from inside the auto shop. The employee then returned to the front of the business where Abe was standing. Abe attacked the shop employee and they wrestled on the ground. The gun became loose and Abe picked it up. He made several attempts to shoot the weapon at the shop employee’s head, but no bullets discharged because the gun’s safety mechanism was engaged.
Abe then ran to an insurance business a short distance away while still armed with the gun. He went inside, pointed the gun at a sales agent and demanded she show him where the business kept its cash. The sales agent took Abe to the back of the business where he grabbed about $63 from a petty cash box. Abe tried to flee the scene, but a worker from a neighboring smoke shop confronted Abe with a gun of his own. Abe eventually tripped and dropped his gun. The smoke shop worker picked it up as Abe ran away.
The Albuquerque Police Department released video footage to the news media showing the fight at the auto shop. APD received an anonymous tip identifying Abe as the perpetrator. Police arrested Abe after the auto shop, insurance business and smoke shop employees all positively identified Abe in photo arrays. The trial evidence showed Abe previously attended Highland High School. The evidence further showed the robbery of the insurance business affected interstate commerce and the firearm that Abe used in the crimes was manufactured in Massachusetts and traveled in interstate commerce to New Mexico prior to the robbery.
Abe faces up to 10 years in prison for possession of a stolen firearm, up to 20 years in prison for robbery, and a minimum of seven years consecutive and up to life in prison for brandishing a firearm during and in relation to a crime of violence.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorneys Timothy Trembley and Sean J. Sullivan are prosecuting the case.
Irvine Man Arrested on Charge Alleging He Fraudulently Obtained More Than $5 Million in COVID-Relief Loans for Sham CompaniesRead the Press Release
LOS ANGELES – An Orange County man who fled after authorities searched his residence on Wednesday is in federal custody today after he was arrested at the U.S.-Mexico border and charged with fraudulently obtaining more than $5 million in COVID-relief loans for three sham companies.
Reddy Raghav Budamala, 35, of Irvine, was arrested at the border early Thursday morning by federal law enforcement and made his initial court appearance Thursday afternoon in the United States District Court in Los Angeles. At that hearing, a United States Magistrate Judge ordered Budamala held without bond because he posed a flight risk.
A criminal complaint filed Thursday charges Budamala with one count of wire fraud.
According to an affidavit filed with the complaint, Budamala in 2019 formed or acquired three shell companies with no operations – Hayventure LLC, Pioneer LLC, and XC International LLC. Following the outbreak of the COVID-19 pandemic, and the enactment of federal programs designed to address the economic fallout from the pandemic, Budamala allegedly submitted to the Small Business Administration (SBA) seven applications for pandemic-relief loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
As part of the applications filed from April 2020 through March 2021, Budamala falsely represented to the banks administering the COVID-relief business loan programs that his companies employed dozens of individuals and earned millions of dollars in revenue, and that he needed the money for payroll and business expenses, the affidavit alleges.
The listed addresses for the companies were bogus, nonexistent or residential. The states where Budamala’s companies purportedly operated have no records of those companies paying wages to any employees, and bank records for the companies reflect no significant business income or operating expenses. During a February 2021 interview with a State Department official in an unsuccessful attempt to obtain a United States passport, Budamala said he wanted the passport so he could get a job, according to the affidavit.
The SBA and the banks funded six of the loans and disbursed $5,151,497, the affidavit states. Budamala allegedly applied to have several of the loans forgiven and falsely represented that he had used the SBA money entirely for payroll.
Once the loans were funded, Budamala used the money to pay for personal expenses, including the purchase of a $1.2 million investment property in Los Angeles, the purchase of a $597,585 property in Malibu, a $970,000 investment in an EB-5 Immigrant Investor Visa Program and a nearly $3 million deposit into Budamala’s personal TD Ameritrade account, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charge, Budamala would face a statutory maximum sentence of 20 years in federal prison.
IRS Criminal Investigation, the FBI, and the Small Business Administration’s Office of Inspector General investigated this matter.
Assistant United States Attorney Gregory D. Bernstein of the Major Frauds Section is prosecuting this case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 24 was:
Aimee Jeanette Bartlette, 40, of Livingston, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Bartlette faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bartlette was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-13.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 25 was:
Michael Kullberg, 40, of Kalispell, on charges of theft of mail, conspiracy to commit wire fraud, and aggravated identity theft. If convicted of the most serious crime, Kullberg faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the fraud counts and a mandatory minimum two years in prison consecutive to any other sentence, a $250,000 fine and one year of supervised release on the identity theft count. Kullberg was detained pending further proceedings. The Kalispell Police Department, Eureka Police Department, Lincoln County Sheriff’s Office and U.S. Postal Service Office of Inspector General investigated the case. PACER case reference. 22-09.
Appearing on Feb. 23 was:
Aric Collin Normile, 41, of Belgrade, on charges of attempted coercion and enticement of a minor. If convicted of the most serious crime, Normile faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years to life of supervised release. Normile was detained pending further proceedings. The FBI, Montana Division of Criminal Investigation, Montana Internet Crimes Against Children Task Force and FBI’s Child Exploitation and Human Trafficking Task Force. PACER case reference. 22-08.
Appearing on Feb. 22 was:
Michael Russell Torres, 29, of Billings, on charges of prohibited person in possession of firearm. If convicted of the most serious crime, Torres faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Torres was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula Police Department investigated the case. PACER case reference. 22-07.
Jennifer Don Smith, 37, of Kalispell, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Smith faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the conspiracy and fraud counts and a mandatory two years in prison consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft count. Smith was released pending further proceedings. The Eureka Police Department, Lincoln County Sheriff’s Office, Kalispell Police Department and U.S. Postal Service Office of Inspector General investigated the case. PACER case reference. 22-9.
Nicole Lynn Zinda, 37, of Butte, on charges of unlawfully obtaining a controlled substance. If convicted of the most serious crime, Zinda faces a maximum of four years in prison, a $250,000 fine and three years of supervised release. Zinda was released pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation and St. James Hospital investigated the case. PACER case reference. 22-4.
Virginia Kathleen Pearson, 55, of Phillipsburg, on charges of health care fraud, theft of government money, false statements to government agency and Social Security fraud. If convicted of the most serious crime, Pearson faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Pearson was released pending further proceedings. The Social Security Administration and Montana Department of Public Health and Human Services investigated the case. PACER case reference. 22-8.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 22 was:
James Earl Derbyshire, 41, of Stockett, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Derbyshire faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Derbyshire was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Great Falls Police Department investigated the case. PACER case reference. 22-2.
Eric Guy Boucher, 42, a transient, on charges of possession with intent to distribute meth and drug user in possession of a firearm. If convicted of the most serious crime, Boucher faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Boucher was detained pending further proceedings. The FBI, Russell Country Drug Task Force and Great Falls Police Department investigated the case. PACER case reference. 22-8.
Jamie Marie Lonefight, 65, of Plentywood, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Lonefight faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Lonefight was released pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 21-68.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Ice Methamphetamine Dealer Sentenced to 25 Years in Federal PrisonRead the Press Release
PEORIA, Ill. – A Pekin, Illinois, man, Thomas A. Wright, 44, of the 1400 block of Hazel Street, was sentenced on February 22, 2022, to 300 months’ imprisonment, to be followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute at least 50 grams of ice methamphetamine.
At the sentencing hearing, U.S. District Judge James E. Shadid found that Wright was a career offender due to his criminal history and that he had trafficked a substantial amount of ice methamphetamine during the conspiracy. Judge Shadid noted that Wright had a poor upbringing but that his actions dealing drugs contributed to a cycle of drug use in the community. Judge Shadid recommended that Wright be housed in a facility with drug treatment capabilities while in the Bureau of Prisons.
Also at the hearing, the government presented evidence that Wright worked with associates to pool money to buy larger quantities of methamphetamine and would redistribute the methamphetamine to a network of customers throughout Peoria and Tazewell Counties. Evidence established that Wright was responsible for trafficking approximately 193 ounces of ice methamphetamine throughout the course of the conspiracy. The government detailed Wright’s criminal history, which included three methamphetamine manufacturing-related convictions in Tazewell County in 2003, 2006, and 2015, each of which involved prison sentences.
Wright was indicted in September 2020, and pleaded guilty in July 2021. Wright has been in the custody of the U.S. Marshals since his arrest in September 2020.
The statutory penalties for conspiracy to distribute and possess with intent to distribute at least 50 grams of ice methamphetamine are a minimum term of 10 years’ imprisonment and a maximum term of life imprisonment, a minimum five-year term of supervised release and a maximum life term of supervised release, and up to a $10,000,000 fine. If committed after a prior qualifying conviction, the minimum statutory sentence is 15 years’ imprisonment, the minimum term of supervised release is 10 years, and a fine up to $20,000,000 may be imposed. If committed after two prior qualifying convictions, the minimum statutory sentence is 25 years’ imprisonment.
“The message is clear: if you choose to make a career of dealing highly addictive, community-wrecking drugs, you will be held accountable,” said Assistant United States Attorney Katherine G. Legge. “Our steady pursuit of these cases will continue so that we can keep our communities safe from the top drug dealers who peddle this potent substance.”
“Wright was a significant player in the Pekin area as it relates to meth distribution,” said Pekin Police Department Chief John Dossey. “This conviction exemplifies the consolidated efforts of the Pekin Police Department and the DEA where another dealer is removed from our streets. We all know that meth destroys our families and is the root cause of much of the crime we see. We commend these officers and agents for their hard work in making a positive difference within our communities.”
“The sentencing of Mr. Wright reflects the shared commitment toward combating the proliferation of deadly drugs throughout Peoria and surrounding communities,” said Todd C. Smith, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration-Chicago Division. “The DEA, alongside our local, state and federal law enforcement and prosecution partners, will continue holding accountable those who seek to inflict harm upon Peoria families through the trafficking of illegal and deadly drugs.”
The Pekin Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Legge represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hotel General Manager Sentenced to 15 Years’ Imprisonment for Sex and Drug Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 23, 2022, Faizal Bhimani, age 45, of Bartonsville, Pennsylvania, was sentenced to 180 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion for sex trafficking and drug trafficking offenses.
Bhimani’s sentencing follows a two-week jury trial in Scranton in October 2020, which concluded with the jury returning guilty verdicts against Bhimani and co-defendant Nazim Hassam, along with two hotel companies, Om Sri Sai, Inc., a Pennsylvania corporation, and the Pocono Plaza Inn hotel, formerly known as the Quality Inn, located in Stroudsburg, Pennsylvania.
According to United States Attorney John C. Gurganus, Om Sri Sai, Inc., a company that owned and operated a Howard Johnson hotel located in Bartonsville, and Faizal Bhimani, the general manager of that hotel, were both convicted of sex trafficking by force, fraud, and coercion and aiding and abetting the same, and sex trafficking conspiracy, as well as drug trafficking conspiracy and managing a drug-related premises. The jury also found the Pocono Plaza Inn guilty of managing a drug-related premises, and Nazim Hassam, part-owner and Vice President of Om Sri Sai and managing shareholder of both hotels, guilty of drug trafficking conspiracy and two counts of managing a drug-related premises.
These convictions marked the culmination of a six-year, joint investigation into sex trafficking, drug trafficking, and violent crime in Monroe County by the Organized Crime Drug Enforcement Task Force (OCDETF). This case began in 2014 with an FBI investigation into the Black P Stone gang, a set of the Bloods that was responsible for gun violence and drug trafficking in Monroe County at the time. Local agencies, including the Stroud Area Regional Police Department and the Monroe County District Attorney’s Office, joined the effort early on, and eventually expanded beyond the P Stones to uncover more widespread sex and drug trafficking in Monroe County.
The evidence at trial, presented through more than 35 witnesses and over 150 exhibits, established that the Howard Johnson Hotel in Bartonsville was a safe haven for criminal activity between 2011 and 2019. Bhimani, as manager, made rooms available for sex traffickers and drug dealers, and at times took payment for the hotel directly from the proceeds of criminal activity. Bhimani also traded discounted and free rooms for sex, which traffickers would direct their victims to provide. Dozens of women were compelled by multiple traffickers, sometimes called pimps, to conduct prostitution in the hotel either by physical force, threats, false promises, or coercion, including through blackmail and drug addiction. Women who were addicted to heroin, crack, or other controlled substances were provided with just enough drugs to keep them working, and pimps used their addictions and the threat of withdrawal to control them. Several admitted sex traffickers testified at the trial, explaining how they used these various methods to compel women to sell sex and turn over all of the proceeds. Multiple survivors also testified that they were required to follow the traffickers’ rules, were forced to rely entirely on the traffickers for food, clothing, even hygiene products, and they were often punished for violations with violence, including sexual assault.
Bhimani was closely associated with several of these traffickers and knew of the methods used to compel the victims to have sex for money. Other employees at the hotel knew as well, and the evidence showed that at least two other employees engaged in sex with victims, including co-defendant Nazim Hassam. Bhimani also warned sex traffickers and drug dealers when law enforcement were present at the hotel, including during the manhunt for Eric Frein in 2014. Several admitted sex traffickers and drug dealers testified to successfully evading detection by police thanks to warnings from Bhimani. The hotel allowed known criminals to check in under assumed names or even street names, and Bhimani and Hassam both took steps to obstruct police efforts to locate suspects.
In all, forty defendants have been convicted in federal court as a result of this investigation, many of whom trafficked women and drugs in the Bartonsville Howard Johnson and the Pocono Plaza Inn. Other defendants have been charged and convicted in state courts. The investigation successfully dismantled the P Stones as well as a second gang, the Brick City Brims, and disrupted the activities of two more, the Blood Stone Villains and the Bloodhound Brims. Investigators seized multiple kilograms of heroin and cocaine, as well as quantities of fentanyl, cocaine base (“crack”), methamphetamine, marijuana, and MDMA (“molly”), and took at least 10 illegal firearms off the streets.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid related offenses.
The case was investigated by the U.S. Federal Bureau of Investigation (FBI), the Stroud Area Regional Police Department, the Monroe County District Attorney’s Office, and the Pennsylvania State Police. Assistant U.S. Attorneys Sean A. Camoni, Jenny Roberts and Francis Sempa prosecuted the case.
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