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Thursday 24 February 2022
Three Former Minneapolis Police Officers Convicted of Federal Civil Rights Violations for Death of George FloydRead the Press Release
St. Paul, Minn. — Following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota found three former Minneapolis Police Department (MPD) officers guilty of federal civil rights offenses arising out of the death of George Perry Floyd, Jr. on May 25, 2020.
Former MPD Officers Tou Thao and J. Alexander Kueng were found to have deprived Mr. Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former MPD Officer Derek Chauvin’s use of unreasonable force, resulting in bodily injury to and the death of Mr. Floyd. Thao, Kueng, and former MPD Officer Thomas Lane also were found to have deprived Mr. Floyd of his constitutional right to be free from a police officer’s deliberate indifference to his serious medical needs when they saw him restrained in police custody in clear need of medical care and willfully failed to aid him, resulting in bodily injury to and the death of Mr. Floyd. Both offenses are violations of Title 18, United States Code, Section 242.
The convictions announced today are separate from and in addition to any and all charges the State of Minnesota has brought against these former officers related to the death of Mr. Floyd. The federal charges addressed civil rights offenses that criminalize violations of the U.S. Constitution.
“Those who have sworn to enforce our nation’s laws must abide by them. Today’s verdict recognizes that two police officers violated the Constitution by failing to intervene to stop another officer from killing Mr. Floyd, and three officers violated the Constitution by failing to provide aid to Mr. Floyd in time to prevent his death,” said Attorney General Merrick B. Garland. “The Justice Department will continue to seek accountability for law enforcement officers whose actions, or failure to act, violate their constitutional duty to protect the civil rights of our citizens.”
Acting United States Attorney Charles J. Kovats stated, “Today, former officers Tou Thao, J. Alexander Kueng, and Thomas Lane stand convicted by a jury of their peers of willfully violating Mr. Floyd’s civil rights. The same rights guaranteed to each and every one of us by the United States Constitution. They had a moral responsibility, constitutional requirement, legal requirement, and a duty to intervene… and by failing to do so, they committed a crime. This is a reminder that all sworn law enforcement, regardless of rank or seniority, individually and independently have a duty to intervene and to provide medical aid to a person in need.”
Co-defendant Derek Chauvin previously entered a guilty plea in connection with the federal case. Chauvin pleaded guilty to willfully depriving Mr. Floyd of his constitutional rights while Chauvin was serving as an MPD officer. Chauvin also acknowledged that his conduct resulted in death and that he acted in callous and wanton disregard of the consequences to Mr. Floyd’s life. In addition, Chauvin was tried in state court and convicted of second-degree murder. In 2021, Chauvin was sentenced in state court to 22.5 years in prison.
Evidence presented at the federal trial for defendants Thao, Kueng, and Lane established that on May 25, 2020, then-MPD Officer Chauvin held his knees on Mr. Floyd’s neck and back as Mr. Floyd lay on the ground, handcuffed and unresisting. As soon as Mr. Floyd was on the ground, Chauvin placed his knee on the back of Mr. Floyd’s neck, while Kueng placed his knee on Floyd’s lower body. Chauvin would not remove his knee for the next nine minutes and twenty-nine seconds, and Kueng maintained his position for the next eight minutes and eleven seconds. Throughout this period, Mr. Floyd pleaded with officers 25 times to let him breathe.
As Mr. Floyd lost consciousness and a pulse, Chauvin and Kueng maintained their positions on his body. Even as Mr. Floyd ceased movement and stopped speaking, and even as Lane noted that Mr. Floyd was “passing out” and Kueng said he could not find a pulse, none of the CPR-certified defendants did anything to stop Chauvin from keeping his knee on Mr. Floyd’s neck or to render the medical aid that they were trained and required to provide. Even as EMTs arrived and checked Mr. Floyd’s pupils and pulse, Chauvin did not move his knee and the other officers on scene did not render aid to Mr. Floyd.
Firefighters and EMTs unsuccessfully attempted to revive Mr. Floyd on the way to the hospital, where he was pronounced dead. The county medical examiner ruled Mr. Floyd’s death was a homicide due to cardiopulmonary arrest complicating law enforcement subdual, restraint, and neck compression.
After the incident, an MPD supervisor and, later, an MPD lieutenant, spoke with Lane and Kueng. On both occasions, Lane and Kueng both omitted that Chauvin had knelt on Mr. Floyd’s neck, that Mr. Floyd had been restrained on his stomach for nine and a half minutes, that Mr. Floyd had lost consciousness, and that officers had not been able to find a pulse. Additionally, Kueng told the supervisor that Mr. Floyd did not stop moving until after an ambulance arrived on scene, which he admitted at trial was false. At trial, the MPD lieutenant testified that, after watching video taken by a bystander, he realized that what he was told and what was on the video was “totally different.” He further testified that if an MPD officer observed another officer using too much force or doing something illegal, the officer has a duty to intervene to stop it, regardless of rank or seniority. Testimony offered at trial established that this duty to intervene is enshrined in MPD policy and is a component of the police department’s training program.
Evidence presented at trial also showed that MPD officers were required to complete emergency medical responder (EMR) training prior to entering the police academy, which includes CPR training. Further, MPD policy requires officers to determine if a subject is injured after a use of force and to render medical aid as soon as reasonably practical and requires officers assisting a person experiencing a medical crisis to provide first aid while awaiting EMS.
The jury found that the defendants disregarded this training and willfully violated Mr. Floyd’s constitutional rights. Kueng and Thao failed to intervene to stop Chauvin’s use of unlawful force and all three defendants failed to provide aid to Mr. Floyd as he suffered a medical emergency at the hands of a fellow police officer.
No sentencing date has been set. The statutory maximum sentence for the death-resulting violation of section 242 is life in prison.
Attorney General Merrick B. Garland, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Charles J. Kovats, and Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Division announced today’s verdict.
The investigation was conducted by the Federal Bureau of Investigation with the cooperation of the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich, and Allen Slaughter of the District of Minnesota.
Terrebonne Parish Man Sentenced for Possessing MachinegunRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KENDALL PARKER, Jr., age 28, a resident of Houma, Louisiana, was sentenced on February 16, 2022 to thirty (30) months of imprisonment for possessing a machinegun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
Court documents show the machinegun PARKER possessed was found during a search of his residence by state law enforcement officers investigating the distribution of controlled substances on April 16, 2020. The firearm PARKER possessed is a modified Glock model 17, nine-millimeter handgun. The manufacturer’s back-slide plate had been removed and replaced with an “A.F.S.” brand aftermarket back slide plate, also known as a “Glock switch.” This modification converted the firearm from a semi-automatic pistol to a fully automatic machinegun.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Homeland Security Investigations and the Terrebonne Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Charles D. Strauss prosecuted the case.
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State Prison Inmates Plead Guilty to Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Two New York State prison inmates pled guilty today to conspiring with others to defraud pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL).
Reginald Thornton, age 29, pled guilty to conspiracy to commit mail fraud and aggravated identity theft. He admitted to conspiring with others to file unemployment insurance claims in his own name and in the names of other inmates, even though they were incarcerated by New York State at the Bare Hill Correctional Facility in Malone, New York. Inmates were not eligible to receive unemployment insurance benefits.
Lord Paulin, age 41, pled guilty to conspiracy to commit mail fraud and admitted to conspiring with Thornton and another person to file a false unemployment insurance claim in his own name while he was also incarcerated at Bare Hill.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of NYSDOL.
Thornton agreed to pay restitution in the amount of $31,276 to the State of New York. Paulin agreed to restitution in the amount of $10,004.
The mail fraud convictions carry maximum terms of 20 years in prison, fines of up to $250,000, and terms of supervised release of up to 3 years. Thornton’s identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Thornton and Paulin are scheduled to be sentenced on June 30, 2022 by Chief United States District Judge Glenn T. Suddaby. 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.
These cases were investigated by USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL. The cases are being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.
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.
St. Croix Man Previously Convicted of a Felony Sentenced to 56 months in Federal Prison on Firearm ChargeRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that Lionel Woodley, 36, of St. Croix, appeared before Judge Wilma A. Lewis, in U.S. District Court and was sentenced on the charge of Felon in Possession of Firearm.
Judge Lewis sentenced Woodley to a 56-month prison term, to be followed by 3 years of supervised release, a fine of $1,000, and a $100 special assessment.
According to court documents, on March 17, 2019, Virgin Islands Police Department (VIPD) officers stopped the vehicle driven by Woodley at around 11:30 p.m. for failing to observe a stop sign and passing on a double yellow line. During the traffic stop, VIPD officers noticed the odor of marijuana emanating from Woodley’s vehicle. The officers searched the vehicle and located a revolver in the center console, a bag on the front seat containing approximately 20 grams of marijuana, approximately 7 grams of cocaine, along with $105.00, and a scale. Police also found and seized $701 on Woodley’s person. Woodley did not have a license to possess the firearm and had previously been convicted of the felony offense of Attempted Robbery Second Degree by the Superior Court of the Virgin Islands.
The Virgin Islands Police Department and the Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
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South Texas man admits to smuggling cocaine on passenger busRead the Press Release
CORPUS CHRISTI, Texas - A 21-year-old Hidalgo County man has pleaded guilty to possessing with the intent to distribute 4.5 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Today, Matthew Ethan Joseph Castillo admitted he knowingly attempted to smuggle the narcotics past a U.S. Border Patrol (BP) checkpoint.
On Sept. 29, 2021, Castillo was traveling on a Tornado commercial passenger bus that entered the primary inspection area of the checkpoint near Falfurrias. There, a service canine alerted to a specific piece of luggage in the lower compartment of the bus. Authorities identified Castillo as the owner.
They searched the item and found two wooden tortilla presses, each containing two bundles of cocaine. They had been individually wrapped in carbon paper and coffee and sealed in plastic.
The drugs had an estimated street value of more than $300,000.
Sentencing has been set for May 31 before U.S. District Judge Nelva Gonzales Ramos. At that time, Castillo faces a minimum of five and up to 40 years in prison as well as a maximum $5 million possible fine.
He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck is prosecuting the case.
South Florida Man Gets over 10 Years in Federal Prison for Trafficking Fentanyl Disguised as Oxycodone PillsRead the Press Release
Miami, Florida – A U.S. District Court Judge in South Florida has sentenced a 26-year-old Fort Pierce man to 121 months in federal prison for trafficking nearly 400 grams of fentanyl.
On November 16, 2020, St. Lucie County Sheriff’s Office Deputies observed Dakaree Deval Brown conducting a drug deal. Brown entered the back passenger seat of a parked vehicle while carrying a blue backpack. When one of the officers activated his vehicle’s emergency lights, Brown ran from the car he was in, taking the backpack with him. Deputies caught Brown after a short foot chase. They searched his backpack and found over 700 pills that, based on the pills’ markings, appeared to be Oxycodone. Later testing revealed, however, that the pills were actually pressed tablets of fentanyl, made to look like Oxycodone. Inside the backpack, the officers also discovered multiple baggies containing white powder, a digital scale, a loaded gun magazine, and over $7,000 cash.
Brown pled guilty to possession with intent to distribute a controlled substance on September 24, 2021.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration; and Ken J. Mascara, Sheriff, Saint Lucie County Sheriff’s Office, announced the sentence imposed by U.S. District Judge K. Michael Moore.
DEA Miami and St. Lucie County Sheriff’s Office investigated the case. Assistant U.S. Attorney Luisa Honora Berti prosecuted it. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
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-14013.
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Six Arrested in Multi-Jurisdictional Fentanyl TakedownRead the Press Release
BOSTON – Six individuals from Maine and Massachusetts were arrested yesterday in connection with their roles in an alleged fentanyl trafficking organization with activity that spanned across Massachusetts, New Hampshire and Maine.
Randell Starlin Medina Rodriguez, 26, of Andover; Williams Colon Sanchez, 26, of Lawrence; Douglas Morris, 31, of Bangor, Maine; Robert Rodriguez Jr., 48, of Portland, Maine; and Cortney Moulton, 37, of West Bath, Maine, were charged by criminal complaint with conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl. Germania Amparo, 29, of Andover, was charged separately with distribution and possession with intent to distribute 40 grams or more of fentanyl.
According to the charging documents, in early 2021, an investigation began into a drug trafficking organization that distributed fentanyl and counterfeit oxycodone pills in and around the Andover and Lawrence areas. The investigation revealed that the defendants allegedly conspired to deliver hundreds of grams of fentanyl throughout Massachusetts, New Hampshire and Maine. Specifically, it is alleged that Massachusetts-based dealers Medina Rodriguez, Colon Sanchez, Amparo and others delivered large quantities of fentanyl to wholesale customers including Morris, Rodriguez Jr. and Moulton, who in turn would distribute those substances in Maine and New Hampshire. Over the course of the investigation, over 4.3 kilograms of suspected fentanyl was seized.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistant U.S. Attorneys Stephen Hassink and Lauren Graber of Rollins’ Narcotics and Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Salisbury Man Sentenced to Five Years in Federal Prison for Large-Scale Heroin Distribution Operation on the Dark WebRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jason Lawrence Green, age 40, of Salisbury, Maryland, today to five years in federal prison, followed by three years of supervised release, for possession with intent to distribute heroin, which he sold on the dark web, which is part of the internet that is only accessible by using specific software that disguises the true location and identity of computers using the software to communicate.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Acting Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division; Colonel Adrian Baker, Superintendent Maryland Department of Natural Resources Police; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Dorchester County Sheriff James W. Phillips, Jr.
According to Green’s guilty plea, from at least 2018 through October 2019, Green used an apartment and a storage unit in Salisbury, Maryland to sell and distribute heroin on the dark web and using encrypted email services.
As detailed in the plea agreement, Green initially operated as “CaliClaire” on the Dream Market, a dark web marketplace for controlled substances and other illegal goods. After Dream Market closed in April 2019, Green sold heroin through encrypted email services under the usernames “CaliClaire” and “clairebear2.” Green sent the heroin to buyers throughout the country using the U.S. mail (USPS).
For example, on June 20 and August 28, 2018, an undercover investigator purchased one gram of heroin from CaliClaire’s vendor site on Dream Market for approximately $200 in bitcoin, a cryptocurrency. The next day, law enforcement surveilled Green as he drove a white BMW from his home to the post offices in Ocean City, Maryland and Salisbury, respectively, and deposited parcels in a mailbox. After the BMW drove away, investigators searched the mailbox and recovered the parcel addressed to the address provided to CaliClaire by the undercover investigator. Each parcel contained one gram of a substance that field-tested positive for heroin. Investigators also recovered two additional parcels that Green had placed in the mailbox in Salisbury. After obtaining search warrants, investigators found that the parcels contained 3.5 and 4.5 grams, respectively, of a tan powdery substance that appeared to be heroin.
CaliClaire was inactive on Dream Market from September 7, 2018 until December 4, 2018—the same time that Green was in custody after being arrested by Ocean City police on unrelated state charges. Green was released on electronic monitoring on December 4, 2018. Six days later, CaliClaire posted an update on Dream Market claiming that the vendor had taken a “break” due to the loss in value of bitcoin, followed by another update on December 21, 2018 stating that heroin would be available for purchase again starting on December 25, 2018. Dream Market was shut down sometime between January and April 2019.
In June and September 2019, law enforcement seized two USPS parcels (later found to contain heroin) being shipped to addresses in Fairfax County, Virginia and Washington County, Oregon. Investigators contacted the intended recipients and learned that they were former CaliClaire customers on Dream Market. The Virginia recipient told investigators that CaliClaire had resumed selling heroin directly to customers under the CaliClaire username on Encrypted Email Service A. Investigators learned from the Oregon customer that CaliClaire was also selling heroin directly to customers under the username “clairebear2” on Encrypted Email Service B.
As detailed in the plea agreement, in September and October 2019, investigators conducted two undercover purchases from clairebear2 on Encrypted Mail Service B, each time obtaining 2 grams of heroin for $300 in bitcoin. Investigators surveilled Green following each undercover purchase. After the first purchase, investigators observed Green delivering parcels to a drive-up mailbox in Delaware. The mailbox where Green deposited the parcel was searched and the parcel addressed to the undercover officer was found. It contained three grams of a substance that field-tested positive for heroin. After the second purchase, Green was seen accessing a storage unit he was renting and later that day depositing multiple parcels in a mailbox in Berlin, Maryland. The parcel addressed to the undercover officer was delivered to investigators a few days later and contained a clear zip-top bag holding approximately 2.5 grams of a substance that field-tested positive for heroin.
Search warrants were executed at Green’s residence and storage unit on October 16, 2019. Law enforcement recovered a total of 77 grams of heroin; approximately 41 grams of cocaine; approximately five grams of MDA, a controlled substance often sold as “ecstasy”; approximately 33 grams of amphetamine; more than 1.4 kilograms of marijuana, with all but 48 grams packaged in heat sealed bags; 334 grams of cutting agent; and drug paraphernalia, including numerous digital scales, a money counter, and packaging materials. In addition, investigators seized six firearms, including a .40 caliber pistol which had been reported stolen from an officer with the Federal Air Marshal Service; a Level 3A body armor vest; ammunition; $13,796 in cash; mailing materials; a laptop computer and several cellular phones, including an iPhone.
A subsequent forensic analysis of Green’s iPhone found data of Green’s use of Encrypted Mail Service B and a mobile cryptocurrency storage application which showed that before the phone was seized, the wallet held approximately 15.97 bitcoin, which at that time was worth approximately $130,000. A forensic analysis of the laptop revealed, among other things, internet searches related to the addresses of customers; the names and addresses of approximately 56 individuals who appeared in either return or recipient addresses on parcels seized during the investigation and found to contain heroin, including undercover purchases; email addresses for Encrypted Email Services A and B; a password to Encrypted Email Service B; USPS tracking numbers, including for the undercover parcels; and approximately 44 PDF files containing USPS shipping labels from nearly every heroin parcel seized during the investigation.
This case was prosecuted utilizing resources from the Dark Market and Digital Currency Crimes (DMDCC) Task Force. The DMDCC Task Force is a joint effort between the U.S. Attorney’s Office, HSI – Baltimore, the U.S. Secret Service, the U.S. Postal Inspection Service; the Food and Drug Administration, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Defense Criminal Investigative Service, the Baltimore Police Department, and the Baltimore County Police Department, targeting the use of dark net marketplaces and digital currencies to facilitate criminal activities. The past several years have witnessed a significant increase in the use of the internet (both the clear net and dark net) and digital currencies to facilitate, for example, the illegal sale and distribution of narcotics and firearms, computer technologies (including hacking tools), and Personal Identifiable Information (PII). In response to this rising threat, the U.S. Attorney’s Office, HSI, and their partners formed the DMDCC Task Force to facilitate stronger collaboration among law enforcement partners combatting these crimes.
United States Attorney Erek L. Barron commended HSI, the U.S. Postal Inspection Service, the Maryland State Police, and the Dorchester County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher M. Rigali, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Romanian National Sentenced to Five Years in Federal Prison for Bank Fraud and Wire Fraud Conspiracy Related to a Scheme to Steal Checks Intended for Religious Institutions from the MailRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Romanian national Mateus Vaduva, age 29, of Baltimore, Maryland, and Florida yesterday to five years in federal prison, followed by five years of supervised release, for conspiracy to commit bank fraud and wire fraud, in connection with a scheme to steal donation checks intended for religious institutions from the mail. Judge Chuang also ordered Mateus Vaduva to pay restitution in the full amount of the victims’ losses, which is $1,320,885.84 and entered a forfeiture money judgment in the amount of $79,551.07, equal to the proceeds Vaduva obtained as a result of the conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Quenton Sallows, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to his guilty plea, beginning in June 2018 to January 2021, Vaduva and his co-conspirators conspired to steal checks from the U.S. mail intended for religious institutions and deposit the illegally obtained funds into multiple fraudulent bank accounts at various victim financial institutions. Conspirators, including Vaduva, conducted the thefts by driving to roadside mailboxes of churches and other religious institutions and removing the mail, specifically targeting donation checks.
As part of the scheme to defraud, Vaduva and other co-conspirators fraudulently opened bank accounts at victim financial institutions under false identities. Conspiracy members often opened fictitious bank accounts with the aid of a conspiracy member that was an employee at one of the victim financial institutions. In addition, Vaduva and his co-conspirators used at least two extended family members who were minors to assist in the account openings.
Vaduva and co-conspirators then withdrew cash from the fraudulent bank accounts through ATMs and spent the illegally obtained proceeds using debit cards associated with the bank accounts.
Throughout the scheme to defraud, Vaduva personally deposited at least approximately 126 stolen checks totaling at least approximately $79,551.07. In total, co-conspirators deposited at least 3,067 stolen checks from Maryland, North Carolina, Virginia, and elsewhere, totaling at least approximately $1,307,484.23. Vaduva admitted that based on the length, scope, and type of involvement in the scheme and his relationship with other conspirators, more than $550,000, but less than $1.5 million in actual and intended loss was foreseeable to Vaduva.
Co-conspirators Daniel Velcu, age 44; Marian Unguru, age 37; Marius Vaduva, age 27; and Vali Unguru, age 19, all of Baltimore, Maryland, previously pled guilty to conspiracy to commit bank fraud and wire fraud and are awaiting sentencing. Nicolae Gindac, age 53, of Dania Beach, Florida pled guilty to the same charge and was sentenced to 54 months in federal prison.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Rochester Man Going to Prison for His Role in Burning of RPD Car Duing May 2020 Violent Protests in RochesterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Miguel Ramos, 21, of Rochester, NY, who was convicted of rioting for his role in violent protests held in the City of Rochester in May 2020, was sentenced to serve 16 months in prison by U.S. District Judge Charles J. Siragusa. Ramos was also ordered to pay restitution totaling $4,287 to the City of Rochester.
Assistant U.S. Attorney Cassie M. Kocher, who handled the case stated that on May 30, 2020, Rochester Police Department (RPD) officers were assigned to assist with crowd control during protests scheduled at the Public Safety Building (PSB) on Exchange Boulevard. During the late afternoon/early evening, those protests, being held in response to the death of George Floyd in Minneapolis, Minnesota, turned violent and resulted in vandalism, damaged property, looting, and fires.
During the course of the protests, Ramos and others set fire to a marked Rochester Police Department patrol vehicle parked in front of the Public Safety Building. The burning of the RPD car, which was completely destroyed, was broadcast, and recorded on Facebook Live, which streamed the burning online in real time. Ramos also took photographs of himself at the riot and sent those photographs to others via text message to encourage them to participate in the riot.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Interim Chief David Smith; the Gates Police Department, under the direction of Chief Robert Long; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Barry Chase; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Robert Hill; and the Rochester Fire Department, under the direction of Fire Chief Felipe Hernandez Jr.
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Reptile Dealer Sentenced to Prison on Lacey Act and Firearms ChargesRead the Press Release
A federal judge in Valdosta, Georgia, yesterday sentenced Ashtyn Michael Rance, 35, to 33 months in prison on each count to run concurrently, a $4,300 fine and three years of post-release supervision. The judge also prohibited Rance from possessing or selling wildlife during the supervisory period. Rance pleaded guilty on Nov. 18, 2021, to violating the Lacey Act and unlawfully possessing firearms.
In pleading guilty, Rance admitted that on Feb. 22, 2018, he shipped three eastern box turtles and 16 spotted turtles from Valdosta to a customer in Florida, in a package falsely labeled as containing tropical fish and common lizards. He was paid $3,300 for the turtles and knew they were being subsequently trafficked to China.
Rance further admitted that on May 10, 2018, he shipped 15 Gaboon vipers from Valdosta to Florida. The snakes were worth approximately $900 and also headed to a buyer in China. He falsely labeled the package as containing harmless reptiles and ball pythons. Rance had legally imported 100 Gaboon vipers and other venomous snakes from Africa to Atlanta. He received a special permit to transport the snakes out of Georgia, but he later returned to Valdosta with 16 vipers.
Rance possessed and sold the reptiles in violation of Georgia laws. The federal Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, transporting wildlife in interstate commerce if the wildlife is illegal under state laws. It is also a Lacey Act violation to falsely label a package containing wildlife.
The spotted turtle (Clemmys guttata) is a semi-aquatic turtle native to the eastern United States and Great Lakes region. The eastern box turtle (Terrapene carolina carolina) is endemic to forested regions of the East Coast and Midwest. Collectors prize both species in the domestic and foreign pet trade market, where they are resold for thousands of dollars. The Gaboon viper (Bitis gabonica) is native to central Sub-Saharan Africa. Its venom can cause shock, loss of consciousness or death in humans. Authorities intercepted the package containing the vipers to minimize the risk of a bite or escape.
Additionally, Rance acknowledged that he possessed a Bushmaster Carbine .223 caliber rifle and Mossberg 12-gauge shotgun in his Valdosta residence that he was prohibited from owning as a convicted felon.
The U.S. Fish and Wildlife Service Office of Law Enforcement in Vero Beach, Florida, ATF and the Georgia Department of Natural Resources conducted the investigation as part of Southern Surge Task Force’s Operation Middleman. The operation focused on the trafficking of reptiles from the United States to China. The government is represented by Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Sonja Profit for the Middle District of Georgia.
Reptile Dealer Sentenced to Prison for Illegally Trafficking Animals, Gun ChargesRead the Press Release
VALDOSTA, Ga. – A Florida reptile dealer caught shipping venomous snakes and turtles from his residence in Valdosta as part of “Operation Middleman,” a multi-agency investigation focusing on the trafficking of reptiles from the United States to China, has been sentenced to prison for violating the Lacey Act and unlawfully possessing firearms.
Ashtyn Michael Rance, 35, of Miami, Florida, was sentenced to serve 33 months in prison on each count concurrently to be followed by three years of supervised release and a $4,300 fine by U.S. District Judge Hugh Lawson on Feb. 23, after previously pleading guilty on Nov. 18, 2021, to one count Lacey Act trafficking and one count possession of a firearm by a convicted felon. In addition, Judge Lawson prohibited Rance from possessing or selling wildlife while under supervised release. There is no parole in the federal system.
According to court documents, Rance admitted that on Feb. 22, 2018, he shipped three eastern box turtles and 16 spotted turtles from Valdosta to a customer in Florida, in a package falsely labeled as containing tropical fish and common lizards. He was paid $3,300 for the turtles and knew they were being subsequently trafficked to China.
Rance further admitted that on May 10, 2018, he shipped 15 Gaboon vipers from Valdosta to Florida. The snakes were worth approximately $900 and also headed to a buyer in China. He falsely labeled the package as containing harmless reptiles and ball pythons. Rance had legally imported 100 Gaboon vipers and other venomous snakes from Africa to Atlanta. He received a special permit to transport the snakes out of Georgia, but he later returned to Valdosta with 16 vipers.
Rance possessed and sold the reptiles in violation of Georgia laws. The federal Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, transporting wildlife in interstate commerce if the wildlife was illegal under state laws. It is also a Lacey Act violation to falsely label a package containing wildlife.
The spotted turtle (Clemmys guttata) is a semi-aquatic turtle native to the eastern United States and Great Lakes region. The eastern box turtle (Terrapene carolina carolina) is endemic to forested regions of the East Coast and Midwest. Collectors prize both species in the domestic and foreign pet trade market, where they are resold for thousands of dollars. The Gaboon viper (Bitis gabonica) is native to central Sub-Saharan Africa. Its venom can cause shock, loss of consciousness, or death in humans. Authorities intercepted the package containing the vipers to minimize the risk of a bite or escape.
Additionally, Rance acknowledged that he possessed a Bushmaster Carbine .223 caliber rifle and Mossberg 12-gauge shotgun in his Valdosta residence that he was prohibited from owning as a convicted felon.
The U.S. Fish and Wildlife Service Office of Law Enforcement in Vero Beach, Florida, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Georgia Department of Natural Resources conducted the investigation as part of Operation Middleman. The operation focused on the trafficking of reptiles from the United States to China.
Trial Attorney Ryan Connors of the Justice Department’s Environment and Natural Resources, Environmental Crimes Section and Assistant U.S. Attorney Sonja Profit for the Middle District of Georgia prosecuted the case.
Repeat fraudster sent to prison againRead the Press Release
HOUSTON - A 63-year-old Sugar Land resident has been ordered to federal prison following his convictions related to a mail and wire fraud conspiracy, announced U.S. Attorney Jennifer B. Lowery.
U.S. District Judge Charles Eskridge convicted Maxwell Chibueze Ezenwa on all 15 counts as charged Nov. 9, 2021, following a six-day bench trial. He was convicted of conspiracy to commit and eight counts of wire fraud affecting financial institutions as well as conspiracy to commit mail fraud and five counts of mail fraud.
Today, Judge Eskridge imposed a 78-month term of imprisonment for the two conspiracies and underlying fraud convictions to be served concurrently. He must also serve three years of supervised release following the sentences. At the hearing, the court heard Ezenwa had been convicted of bank fraud in 2000 and how the his actions have affected the victims in this case. In handing down the prison term, Judge Eskridge noted Ezenwa’s recidivist conduct and complete lack of remorse for his bad acts.
During the trial, Judge Eskridge heard testimony from seven civilian witnesses whom Ezenwa and co-conspirators had victimized. Four financial institution representatives testified to show how their the fraud affected their businesses. They described how Ezenwa’s various bank accounts were constantly flagged for suspicious transactions and how all his accounts were ultimately closed for fraud.
Law enforcement provided further details, describing their investigation and other evidence collected and analyzed, such as a voluminous number of records and data from multiple cellular phone extractions. They also detailed the interviews of dozens of witnesses.
Two co-conspirators and a federal detention center inmate also told the court about their roles in the conspiracy and knowledge of the fraud scheme.
Ezenwa attempted to convince the court he did not know he was engaged in criminal or fraudulent activity. However, Judge Eskridge heard Ezenwa was actually on bond in state court for the wire fraud activity when he engaged in the subsequent mail fraud.
The court found Ezenwa was involved in two fraud schemes that occurred from 2013 to 2014 and from 2018 to 2019.
Ezenwa will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Harris County Sheriff’s Office and Clark County Sheriff’s Office in Washington. Assistant U.S. Attorneys Christine Lu and Sherin Daniel prosecuted the case.
Repeat Felon Arraigned on Federal Drug and Firearm ChargesRead the Press Release
DETROIT – Kenneth Moss, Jr., 40, of Detroit, was arraigned on an indictment today charging him with three counts of being a felon in possession of a firearm and one count of possession with intent to distribute cocaine United States Attorney Dawn N. Ison announced.
According to court records, Moss allegedly committed the offenses in Wayne County and within the Eastern District of Michigan on March 16, 2020, August 22, 2021, and August 25, 2021. Specifically on March 16, 2020, police officers responded to an alleged assault and contacted Moss, who ran from police. After being detained, police recovered a firearm and a quantity of crack cocaine that was packaged in a way consistent with an intent to distribute. Moss is prohibited from possessing firearms based on multiple prior felony convictions. More recently, on August 22, 2021, Moss is alleged to have fired a handgun outside of a residence. Shortly thereafter, on August 25, 2021, police executed a search warrant at Moss’s residence and recovered the firearm allegedly used to commit the shooting a few days before.
Moss has been in custody since his arrest on February 10, 2022, on a criminal complaint. Moss faces up to ten years in prison if convicted of being a felon in possession of a firearm and up to twenty years in prison if convicted of the drug charge.
An indictment is only a charge and is not evidence of guilt. The government has the burden of proving guilt beyond a reasonable doubt.
The Detroit office of the ATF investigated this case with the assistance of the Detroit Police Department. The case is being prosecuted by Assistant United States Attorneys assigned to the United States Attorney’s Office’s Violent & Organized Crime Unit.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Registered Sex Offender Arrested for Child PornographyRead the Press Release
BOSTON – A lifetime Level 1 sex offender was arrested and charged by criminal complaint yesterday for possession of child pornography.
Eric Robert Johnson, 49, of Billerica, was charged with one count of possession of child pornography. Johnson will appear in federal court in Boston at 1 p.m. this afternoon.
According to the charging document, a search of Johnson’s residence resulted in the recovery of a laptop computer and other electronic devices, including multiple hard drives that were found hidden in Johnson’s ceiling. A preliminary review revealed that at least one of Johnson’s electronic devices contained images and videos depicting child pornography, including videos of children as young as approximately six to ten-years-old. Forensic review of the devices remains ongoing.
Additionally, according to the criminal complaint, during the search of Johnson’s residence, diapers were found and at least three mutilated dolls with the vaginal region sliced to make a hole in each doll’s body. Two children’s backpacks containing various children’s clothing including bathing suits and a nightgown were found under his bed and a bag of children’s costumes along with a sex toy were recovered in the basement.
Johnson was previously convicted in 1992 on state charges in New Hampshire of two counts of rape of a child with force.
The charge of possession of child pornography after a prior conviction for a sex offense provides for a sentence of up to 20 years in prison, a mandatory minimum of 10 years, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Billerica Police Chief Roy Frost made the announcement today. Assistant U.S. Attorney J. Mackenzie Duane of Rollins’ Major Crimes Unit is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Raleigh Police Officer Arrested for Cocaine Distribution While on DutyRead the Press Release
RALEIGH, N.C. – A Raleigh Police Officer had his initial appearance today on charges of distributing cocaine and possession of a firearm in furtherance of a drug trafficking crime. He was arrested yesterday on these charges.
According to court documents, Keven Rodriguez, 33, a Field Operations Division Officer with the Raleigh Police Department, distributed cocaine while on duty in his patrol car.
The complaint alleges that the investigation began when members of the Raleigh Police Department and the Drug Enforcement Administration received information that Rodriguez was distributing controlled substances in the Raleigh area, and that Rodriguez was a police officer.
The complaint also alleges that a confidential source arranged to meet with Rodriguez on January 24, 2022. Rodriguez drove to the meeting location in his marked Raleigh Police Department patrol car and was carrying his duty firearm. The confidential source met with Rodriguez and gave Rodriguez $2,600 in cash. Rodriguez then gave suspected cocaine to the confidential source. The drugs were later tested by a lab and confirmed to be approximately 56 grams of cocaine.
The complaint charges Rodriguez with two counts: (1) distribution of a quantity of cocaine; and (2) possession of a firearm in furtherance of, and using and carrying a firearm during, a drug trafficking crime.
He faces a mandatory minimum penalty of 5 years in prison if convicted, and a maximum of life in prison.
Michael Easley, the U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Drug Enforcement Administration and Raleigh Police Department are investigating the case and Assistant U.S. Attorney Kelly Sandling is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Portland Gang Member Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—A known member of Portland’s Hoover Criminal Gang was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Cocoa Dalonta Taplin, 27, of Fairview, Oregon, was sentenced to 30 months in federal prison and three years’ supervised release.
According to court documents and testimony, as part of a federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos of Taplin, a convicted felon, holding and posing with two firearms. On April 6, 2021, a federal grand jury in Portland returned an indictment charging Taplin with illegally possessing a firearm. On April 16, 2021, federal agents arrested Taplin and executed a search warrant on his Fairview residence. On November 30, 2021, Taplin pleaded guilty.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Plaquemines Parish Man Sentenced for Possessing Firearm with Fifty Round Extended MagazineRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that MIKAL BLACK, age 24, a resident of Ironton, Louisiana, was sentenced on February 22, 2022 to fifty-seven (57) months of imprisonment for being a convicted felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Upon release from imprisonment, BLACK will serve three (3) years of supervised release and pay a $100 mandatory special assessment fee.
Court documents show that BLACK had brandished a firearm on multiple occasions throughout July and August of 2020. The firearm was seized on August 11, 2020 and found to be a Glock .40 caliber handgun, loaded with a fifty (50) round drum magazine containing forty-nine (49) rounds of ammunition. BLACK was prohibited from possessing firearms due to a conviction for manufacturing a Schedule I Controlled Dangerous Substance in the 25th Judicial District Court of Louisiana.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Plaquemines Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Charles D. Strauss prosecuted the case.
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Pittsburgh Man Pleads to Making Threats by PhoneRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of making a threat by telephone to destroy a building, United States Attorney Cindy K. Chung announced today.
Albert Morris, 60, of the City’s Homewood neighborhood, pleaded guilty to one count before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that on Feb. 1, 2021, Albert Morris called in two bomb threats: one related to the William S. Moorhead federal building in downtown Pittsburgh, the other related to the J. Edgar Hoover building in Washington, D.C.
Judge Stickman scheduled sentencing for July 7, 2022, at 11:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Morris on bond.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Morris.
Physician pays over half million to settle allegations concerning ultrasound billingRead the Press Release
McALLEN, Texas - A 41-year-old primary care doctor has paid $504,588.40 to resolve allegations that he billed for excessive ultrasounds, announced U.S. Attorney Jennifer B. Lowery.
Dr. Jose Escandon operates in Mission. From Aug. 1, 2014, to Oct. 31, 2018, Escandon violated the False Claims Act by causing the submission of claims to Medicare for ultrasounds that were medically unnecessary or unreasonable.
This investigation arose out of a proactive review of claims data showing Escandon was a significant statistical outlier for ultrasound claims.
As part of the settlement, Escandon and Dr. Jose A. Escandon dba Escandon Diagnostic Clinic agreed to a three-year integrity agreement with Department of Health and Human Services – Office of Inspector General (DHHS-OIG).
The agreement promotes compliance with the Medicare statutes, program requirements and written directives and all other federal health care programs. Among other obligations, Escandon and the clinic must establish and maintain a compliance program and engage an independent organization to perform quarterly claims reviews. The agreement also requires Escandon and the clinic to routinely report on these obligations to DHHS-OIG.
The USAO jointly conducted the investigation with DHHS-OIG. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pennsylvania Man Arrested on Several Counts of Immigration Document Fraud and Aggravated Identity TheftRead the Press Release
CAMDEN, N.J. – A Pennsylvania man has been arrested for committing immigration documents fraud and aggravated identity theft in New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Luc Fikiri Matthews, 47, of Philadelphia, Pennsylvania was indicted on Feb. 9, 2022, on six counts of submitting false and fraudulent immigration documents and six counts of committing aggravated identity theft. Matthews is scheduled to make his initial appearance later today before U.S. Magistrate Judge Matthew J. Skahill.
According to documents filed in this case and statements made in court:
In 2017 and 2018, Matthews falsely represented himself as an immigration attorney in order to attract business from noncitizens who did not have legal permanent resident status in the United States. Under the Victims of Trafficking and Violence Prevention Act of 2000, the victims of certain qualifying crimes that occur in the United States, including noncitizen victims who might otherwise be subject to immigration removal proceedings, may be eligible to obtain a U Visa and remain in the United States. After agreeing to represent new clients and charging them fees, Matthews prepared and submitted false and fraudulent U Visa application documents to the U.S. Citizenship and Immigration Service.
The documents prepared by Matthews included multiple fraudulent statements, such as falsely representing that his clients had been the victims of certain qualifying crimes, or containing false names, signatures, and other false means of identification, from various visa applicants and government officials located in New Jersey and New York. None of Matthews’ clients ever actually received a U Visa.
Each count of immigration documents fraud is punishable by up to 10 years in prison and a maximum fine of $250,000. Each count of aggravated identity theft is punishable by up to two years in prison, which must be served consecutively to any other term imposed, as well as a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special-Agent-in-Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sara Aliabadi of the U.S. Attorney’s Office’s Camden office.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oregon Man Faces Federal Charges After Twice Breaking Windows, Destroying Property at a Planned Parenthood ClinicRead the Press Release
EUGENE, Ore.—An Oregon man faces federal charges after twice breaking windows and destroying property at a Planned Parenthood clinic in Grants Pass, Oregon because the clinic provides reproductive health services.
Devin Friedrick Kruse, 26, a Grants Pass resident, has been charged by misdemeanor criminal information with two counts of violating the Freedom of Access to Clinic Entrances (FACE) Act.
According to court documents, on November 23, 2021, Kruse is alleged to have intentionally broken security cameras and a window at a Planned Parenthood clinic in Grants Pass. He returned three days later, on November 26, 2021, and threw a concrete block through a window at the clinic and tore down the clinic’s intercom system. The clinic has remained closed since these incidents occurred.
Kruse will make his first appearance in federal court on March 14, 2022.
Misdemeanor violations of the FACE Act are punishable by up to one year in federal prison.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Grants Pass Police Department. It is being prosecuted by Gavin W. Bruce and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon, and Cameron A. Bell, Trial Attorney for the U.S. Department of Justice’s Civil Rights Division.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
In 1994, Congress passed the FACE Act in response to an increase in violence toward patients and providers of reproductive health services. The FACE Act prohibits violent, threatening, damaging and obstructive conduct intended to injure, intimidate, or interfere with an individual’s right to seek, obtain, or provide reproductive health services.
If you or someone you know is in danger, please call 911.
Suspected violations of the FACE Act can be reported to the FBI by calling (503) 224-4181 or by visiting tips.fbi.gov.
Omaha Man Sentenced to 180 Months for Drug Trafficking and Gun OffensesRead the Press Release
United States Attorney Jan Sharp announced that Bobby Joe Baer, 37, of Omaha, Nebraska, was sentenced today by United States District Judge Brain C. Buescher for possessing with intent to distribute 5 grams or more of pure methamphetamine and for possessing a firearm during the drug trafficking offense. Baer was sentenced to consecutive sentences of 115 months for the drug trafficking offense and 65 months for the firearm offense, with a five-year term of supervised release to follow. There is no parole in the federal system.
On January 13, 2021, officers with the Omaha Police Department were called to check on Baer, who appeared to be unresponsive in a vehicle. When officers made contact with Baer, they saw a firearm in his waistband. Baer was a convicted felon and had outstanding warrants. Baer was arrested and his vehicle searched. During the search, officers found 20 grams of pure methamphetamine.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced to 106 Months for Firearm OffensesRead the Press Release
United States Attorney Jan Sharp announced that Terrance Traynham, age 27, of Omaha, Nebraska, was sentenced in federal court on February 23, 2022, in Omaha for being a felon in possession of a firearm, possessing a stolen firearm, and carrying a firearm during a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Traynham to 106 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Traynham will begin a 5-year term of supervised release.
On July 18, 2020, officers arrested Traynham in an Omaha hotel. On his hip, Traynham was carrying a stolen Glock 19, 9 mm pistol. He was carrying 86 fentanyl pills in his pocket which he intended to distribute. Traynham was prohibited from possessing firearms because of prior felony convictions for delivery, distribution, dispensing, manufacturing, or possession with intent to distribute a controlled substance (2016) and operating a motor vehicle to avoid arrest, willful reckless driving (2019).
This case was investigated by the Federal Bureau of Investigation, and the Omaha Police Department and was part of an operation by the Greater Omaha Safe Streets Task Force.
Omaha Man Sentenced for Role in Transporting Child PornographyRead the Press Release
United States Attorney Jan Sharp announced the Jurrell Parker, 34, of Omaha, Nebraska, was sentenced on February 24, 2022, for Aiding and Abetting the Transportation of Visual Depictions of Minors Engaging in Sexually Explicit Conduct. Senior United States District Judge Joseph F. Bataillon sentenced Parker to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, Parker will begin a 10-year term of supervised release and will also be required to register as a sex offender.
On April 19, 2019, Parker used Kik, an online application with servers located outside the State of Nebraska, to communicate with an undercover law enforcement officer that had assumed the identity of another user of the application. Law enforcement had previously located several Kik chat conversations in which it appeared child pornography material was being traded by the members of the chat. During the online conversation, Parker sent the undercover officer a “Mega” hyperlink, which directed the officer to a folder of 113 video files of child pornography. Mega is a cloud storage and file hosting service offered by Mega Limited, an Auckland, New Zealand-based company.
Agents with the Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force obtained subscriber information and IP login history associated with Kik user that had shared the Mega hyperlink, which ultimately led to Parker’s residence in Omaha, Nebraska. On April 22, 2019, the FBI executed a federal search warrant of Parker’s Omaha residence and seized Parker’s phone. A search of that phone located 9 images and 5 videos of minors, between the age of 8 and 15 years old, engaged in sexually explicit conduct.
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 United States Attorney’s 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.
This case was investigated by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force.
Ohio Man Sentenced to 136 Months in PrisonRead the Press Release
SOUTH BEND – Joshua Pennington, 29 years old, of Reading, Ohio, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to online enticement of a minor to engage in sexual activity, announced United States Attorney Clifford D. Johnson.
Pennington was sentenced to 136 months in prison followed by 10 years of supervised release. When released from prison, he will be required to register as a sex offender.
According to documents in the case, beginning in September of 2018, Pennington began contacting a minor through social media. The minor eventually agreed to meet Pennington, who traveled from Ohio to Indiana in January of 2019. Pennington picked up the minor and drove to a church parking lot, where they engaged in sexual activity. When a police officer approached his car, Pennington directed the minor to tell the officer he/she was over the age of 18.
This case was investigated by the Federal Bureau of Investigation and the Lafayette Police Department. The case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
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Oakland Woman Sentenced to Three Years in Million Dollar Pandemic Relief FraudRead the Press Release
OAKLAND – A federal court sentenced Christina Burden today to 36 months in prison following her guilty pleas to two counts of bank fraud and two counts of money laundering, announced U.S. Attorney Stephanie M. Hinds; U.S. Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge Rod Ammari; Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson; and Federal Bureau of Investigation (FBI) Special Agent in Charge Craig D. Fair. The sentence was handed down by United States District Judge Yvonne Gonzalez Rogers.
Christina Burden, 32, of Oakland, was originally charged on February 3, 2021, in a federal complaint alleging bank fraud in obtaining pandemic relief funds from the federal government’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) for her shell entity “Blessing Box Co LLC.” This entity was among multiple shell entities, including the “Burden Consulting Group LLC,” that Burden used in her fraud scheme. As outlined in the complaint, the PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was enacted by the U.S. Congress in March of 2020 to provide emergency financial assistance to millions of Americans suffering from dire economic effects caused by the COVID-19 pandemic. PPP loan proceeds were distributed to faltering businesses for limited, identified business expenses such as payroll costs, mortgage interest, rents, and utilities. The PPP allowed the interest and principal on a PPP loan to be entirely forgiven if the business spent the loan proceeds on permissible business expenses and used at least 60% of the PPP loan proceeds on payroll expenses. Similarly, the EIDL Program provided low-interest loans to small businesses in regions affected by disasters, and EIDL funds became available to all states and territories due to the magnitude and severity of the COVID-19 pandemic.
In her plea agreement, Burden admitted she registered multiple fictitious businesses with the California Secretary of State, then modified documents by inserting incorrect dates relating to the purported business operations in order to qualify the fictitious businesses for loans from the PPP or EIDL programs. Along with her fraudulent applications to the relief programs, Burden submitted fake IRS tax documents, such as fake IRS Form 940 and IRS W-3 forms. The IRS tax documents contained false statements about the number of business employees, payroll costs, and wages paid, among other false statements. Burden admitted in her plea agreement she was aware that the availability and amount of PPP and EIDL loans was tied to the creation and operational dates of the businesses, the employee numbers, and the payroll costs, and that she intentionally misrepresented all of that information. In total, Burden fraudulently claimed she had 89 employees and a monthly payroll of more than $700,000 in her fictitious businesses, according to government documentation.
In total, Burden attempted to obtain more than $4.5 million in pandemic relief loans. She admitted that she actually received $992,291 in fraudulent-obtained PPP loans and $150,900 in fraudulently obtained EIDL loans and advances.
After receiving the fraudulently obtained loan proceeds, Burden used the money for a buying spree of high-end luxury items and services. In a brief filed for the sentencing hearing, the government outlined that Burden spent $184,000 on private jet travel, other airfare, and hotel expenses; $124,000 on luxury purchases from Louis Vuitton, Neiman Marcus, and Nordstrom; $16,000 on boat and car rentals; and $14,000 on restaurants and entertainment. Another $150,000 was spent on Mercedes, Land Rover, and Nissan automobiles.
In addition to the 36 month prison sentence imposed for bank fraud and money laundering, United States District Judge Yvonne Gonzalez Rogers ordered that Burden pay restitution in the amount of $1,143,191. The sentence also included a three year period of supervision following Burden’s release from prison. Burden was ordered to surrender into custody to begin her sentence on April 7.
Abraham Fine is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske and Laurie Worthen. The prosecution is the result of an investigation by TIGTA, IRS-CI, the FBI, and the U.S. Small Business Administration, Office of the Inspector General (SBA-OIG).
Owner and Two Top Executives of South Florida Health Insurance Telemarketing Business Indicted for FraudRead the Press Release
EAST ST. LOUIS, Ill. – Yesterday afternoon, a federal grand jury in East St. Louis
returned an indictment charging a former owner and two top tier executives of a south
Florida telemarketing business known as Simple Health with federal fraud offense. Former owner
Steven Dorfman, 37, of Fort Lauderdale, FL, former Chief Compliance Officer, Candida L. Girouard,
45, of Valrico, FL, and former Vice President of Sales John A. Sand, 47, of Fort Lauderdale, FL,
were all charged with one count of conspiracy to commit mail and wire fraud, four counts of mail
fraud, and eight counts of wire fraud.
Simple Health, also known as Health Benefits One, sold health insurance policies over the phone.
The vast majority of the policies sold by Simple Health were limited indemnity plans.
Limited indemnity plans have a relatively low cap on the amount of medical expenses they will
cover. After those caps are reached, the patients are responsible for paying 100% of their
medical expenses out of their own pockets.The indictment alleges that Simple Health employed a deceptive sales script to trick
people into purchasing the limited indemnity plans. Among other things, the script required the
Simple Health salespersons to tell the customers that: “The whole idea of this plan is to make
your out of pocket expenses as low as possible . . . .” and “When all is said and done, you end up
with pennies on the dollar!!” Relying on these and other false and misleading representations, thousands of people across the country purchased limited indemnity plans from Simple Health. According to the
indictment, after customers purchased these policies, they frequently called Simple Health’s
Customer Service Department and complained that (1) they had incurred significant medical expenses
that they had been led to believe would be covered, but were not; (2) their doctors and hospitals
did not accept the limited indemnity plans; and (3) their prescription drug costs were not covered,
contrary to what they were told when the purchased the policies.In October 2018, the Federal Trade Commission’s Midwest Regional Office in Chicago took action to
prevent Simple Health from defrauding any additional consumers. The complaint filed by the FTC
requested that the federal court in south Florida enter an injunction prohibiting Simple Health
from violating federal consumer protection laws. In addition, at the request of the FTC, the
court appointed a receiver take over operations of the business. The litigation in that case is ongoing.“We credit the Federal Trade Commission for their continued vigilance to protect the community from
predatory and unscrupulous businesses operating online,” said United States Attorney
Steven D. Weinhoeft. “Crimes like those alleged in the indictment rob people of their hard-earned
money, but worse, they have catastrophic consequences when expected insurance benefits aren’t there
in a time of need. These offenses ruin lives and must be dealt with harshly.”
The indictment charges that from May 4, 2012, through November 1, 2018, Simple Health
sold policies to over 400,000 people nationwide, generating revenues to Simple Health of
more than $190,000,000. Simple Health sold 1,175 policies to individuals residing in all 38
counties that comprise the Southern District of Illinois.Dorfman, Girouard, and Sand are scheduled to appear in federal court in East St. Louis on Monday,
March 7, 2022, for their arraignments. Because the alleged scheme was conducted via telemarketing
and victimized ten or more persons over the age of 55, the maximum penalty for the conspiracy count
is 30 years, pursuant to the SCAMS Act. Each of the mail and wire fraud counts carries a maximum
sentence of up to 20 years in prison. In addition, the defendants can be ordered to pay full
restitution to the victims.U.S. Attorney Steven D. Weinhoeft of the Southern District of Illinois made the announcement. The
St. Louis Office of the U.S. Postal Inspection Service is investigating the case.
Assistant U.S. Attorneys Scott Verseman and Peter Reed are prosecuting the case.Montgomery Woman Found Guilty of Lying to a Federal AgentRead the Press Release
Montgomery, Alabama – On Tuesday, February 8, 2022, Tressa Nile Jones-Arnold, 30, from Montgomery, Alabama, was convicted of making a false statement to a federal agent, announced U.S. Attorney Sandra J. Stewart.
According to court records and evidence presented at trial, in March of 2020, Jones-Arnold bought a Glock, model 45, 9mm semi-automatic pistol at a pawn shop in Montgomery. As part of that transaction, Jones-Arnold completed an ATF form that required her to verify she was buying the gun for herself. Later, on September 16, 2020, law enforcement executed a search warrant on the residence of Lonnie Dontae Mitchell, who was in a relationship with Jones-Arnold and had a child with her. Agents were searching for evidence of suspected drug and human trafficking activity. During the search, law enforcement found a Glock 9mm along with a number of items related to the sale of illegal drugs. The 9mm handgun found was the same firearm previously purchased by Jones-Arnold. Mitchell has multiple felony convictions on his record and is prohibited from possessing firearms.
On October 13, 2020, federal agents interviewed Jones-Arnold. She told them she unintentionally left the gun at Mitchell’s house under the bed the weekend before the search was conducted and the gun was found. However, as early as May 2020, Jones-Arnold had sent text messages to Mitchell referring to the gun. In August, she texted him, “Well you need to get a gun registered to yourself cause I don’t feel comfortable with u having a gun registered to my name,” and “I’ll buy it back from u!”
Mitchell was convicted of being a felon in possession of a firearm in July of 2021 and is facing a maximum sentence of ten years in prison. Following yesterday’s conviction, Jones-Arnold is facing up to five years in prison. A sentencing date has not yet been set for Jones-Arnold. Mitchell’s sentencing is still pending as well.
“Lying to federal investigators is a serious crime, and so is providing a firearm to a felon,” stated U.S. Attorney Stewart. “Violent crime is on the rise around the country and far too many criminals are using firearms to terrorize their communities. Ms. Jones-Arnold’s actions placed a gun in the hands of an individual who could not purchase one for himself because of his criminal history, then she lied to federal agents to cover for them both. I hope this conviction serves as an important reminder that those who lie to federal investigators or provide guns to felons will face criminal consequences.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Alabama Law Enforcement Agency (ALEA), the U.S. Department of Homeland Security’s Homeland Security Investigations (HSI), the Montgomery Police Department, and the Montgomery County Sheriff’s Office. Assistant United States Attorneys James P. Lamb and Megan A. Kirkpatrick prosecuted the case.
Mexican National Sentenced to 30 Years in Prison for Drug Smuggling OperationRead the Press Release
EL PASO – Yesterday, a Mexican national was sentenced to 30 years in prison for his role in a large marijuana conspiracy.
According to court documents, Victor Gerardo Villegas, aka Victor Gerardo Villegas-Villalva, Gera, 34, of Ciudad Juarez, Chihuahua, Mexico, was a member of the Gente Nueva de Durango Drug Trafficking Organization (DTO) from 2013 until his arrest in early June 2019. The DTO controls human and drug smuggling through the Valle de Juarez, which is located south of the Lower Valley of El Paso County, Texas.
The DTO was responsible for smuggling large quantities of marijuana using undocumented non-citizens carrying makeshift backpacks with about 50 pounds of marijuana per pack. The DTO transported the marijuana from El Paso to destination cities, such as Oklahoma City. As smuggling coordinator for the DTO, Villegas managed operations through the Valle de Juarez, including distributing marijuana and transporting drug proceeds back to Ciudad Juarez. As part of the conspiracy, Villegas directed DTO members in the El Paso area to rent at least two residences to temporarily store marijuana for further distribution.
On September 10, 2021, a jury found Villegas guilty of one count of conspiracy to possess over 1,000 kilograms of marijuana with intent to distribute.
Other members of the DTO include Ernesto Daniel Rubio-Cervantes, 29, of Fabens; Jesus Dominguez, 33, of Tornillo; Marcos Andrade-Luna, 54, of Sonora, Mexico; Rudy Cruz Fierro, 29, of Fabens; Santiago De Leon-Zavala, 25, of Tornillo; and Isac Gamez-Ruiz, 47, of Sonora, Mexico.
“I am grateful for the tireless efforts of our law enforcement partners as we work together to pursue not only individual drug traffickers, but also large drug trafficking organizations and their leadership,” said U.S. Attorney Ashley C. Hoff.
“Drug trafficking organizations don’t just traffic in drugs, as this case highlights,” said Greg Millard, Special Agent in Charge of the Drug Enforcement Administration (DEA), El Paso Division. “The DEA, joining forces with our federal partners, will continue to investigate and pursue those who threaten our communities with illegal activity, especially when they prey on others to commit their illegal acts.”
“The FBI would like to thank the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and Homeland Security Investigations for their partnership and dedication,” said FBI Special Agent in Charge Jeffrey R. Downey. “As a result of our collective efforts, members of this criminal organization will no longer plague our communities in West Texas and across the nation with their brazen acts of violence, drug trafficking, and human smuggling.”
“This individual played a key role in a transnational criminal organization that posed a public safety threat to our border community by using our neighborhoods as locations for criminal activity,” said Homeland Security Investigations (HSI) Special Agent in Charge, El Paso Division, Frank Burrola. “This sentence is the culmination of HSI’s dedication and commitment to work jointly with our law enforcement partners to rid our streets of criminals who would trash our communities for their own greed.”
Rubio-Cervantes pleaded guilty to two counts of conspiracy to possess marijuana with intent to distribute. On October 18, 2017, Rubio-Cervantes was sentenced to 72 months in prison.
Dominguez pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of conspiracy to launder monetary instruments. On November 30, 2017, Dominguez was sentenced to 63 months in prison.
Andrade-Luna pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute. On January 5, 2018, Andrade-Luna was sentenced to 88 months in prison.
Fierro pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute. On February 22, 2018, Fierro was sentenced to 102 months in prison.
De Leon-Zavala pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute. On June 25, 2019, De Leon-Zavala was sentenced to 72 months in prison.
Gamez-Ruiz pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute. On November 22, 2019, Gamez-Ruiz was sentenced to 51 months in prison.
This case was investigated by the El Paso Divisions of DEA, FBI and HSI as a joint investigation.
Assistant U.S. Attorneys Andres Ortega and John Johnston prosecuted the case.
This effort is part of Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Member of Zuni Pueblo sentenced to five years in prison for sexually abusing a minor in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Byron Calavaza, 33, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, was sentenced on Feb. 23 in federal court to five years in prison for sexually abusing a minor in Indian Country. Calavaza pleaded guilty on March 23, 2021.
According to the plea agreement, Calavaza sexually abused the minor victim on four occasions between Dec. 25, 2017, and Jan. 21, 2018, at a residence on the Zuni Pueblo. Calavaza admitted to committing intentional and unlawful sexual abuse of a minor who was between the age of twelve and fifteen.
Upon his release from prison, Calavaza will be subject to five years of supervised release and must register as a sex offender.
The Zuni Police Department investigated this case. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Member of Large-Scale Fentanyl Trafficking Ring Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DANIEL ESTREMERA, 42, last residing in East Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 138 months of imprisonment, followed by five years of supervised release, for his role in a fentanyl trafficking ring, and for violating the conditions of his supervised release that followed a prior federal conviction.
According to court documents and statements made in court, in July 2019, the DEA’s Hartford Task Force began investigating a Mexican-based drug trafficking organization that was distributing fentanyl and heroin in Connecticut. The investigation revealed that members of the organization were receiving kilogram-quantities of narcotics, primarily fentanyl, from a source of supply, and then distributing the drug to various narcotics traffickers, including Estremera. Estremera and others then sold the drug to street-level distributors.
Members of the organization delivered cash generated from the sale of narcotics to a money broker in Brooklyn, New York, who assisted in laundering the narcotics proceeds before they were transferred to leaders of the drug trafficking organization. On August 14, 2019, investigators stopped Estremera’s car, after Estremera met with a drug associate, and seized $14,960 in cash. On August 28, 2019, after observing Estremera transferring a shopping bag to another individual, investigators stopped the other individual’s vehicle and seized $72,570 in cash that was contained in the bag. Between August and October 2019, law enforcement seized more than $100,000 in cash from other members of the drug trafficking organization.
Members of the organization used several locations to store, process and package fentanyl for street stale, including office space on Pratt Street in Hartford, an apartment in the Asylum Hill neighborhood in Hartford, and an apartment in New Britain. Estremera used an apartment on South Street in West Hartford to process, package and store narcotics. On March 13, 2020, investigators searched the apartment and seized approximately 1.5 kilograms of fentanyl and approximately 500 wax folds of the drug.
Estremera and several co-defendants were arrested on April 28, 2020. On that date, investigators seized approximately $100,000 in cash, a firearm, several thousand wax folds of suspected fentanyl, and numerous items used in the processing and packaging of narcotics.
Estremera has been detained since his arrest.
On June 3, 2020, a grand jury returned an indictment charging Estremera and nine others with narcotics distribution and money laundering offenses. On July 20, 2021, Estremera pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
Estremera’s criminal history includes a state drug conviction for which he served a 42-month prison sentence, and a federal conviction stemming from his role in a Hartford-area heroin trafficking ring. In February 2009, was sentenced in federal court 120 months of imprisonment, followed by eight years of supervised release. He was released from prison in March 2018 and was on supervised release at the time of his arrest for his conduct in this case.
Judge Hall sentenced Estremera to 120 months of imprisonment for trafficking fentanyl, and a consecutive 18 months of imprisonment for violating the conditions of his supervised release.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the DEA New York Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force and the New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Maryland man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Darren Anthony Burnett, of Hagerstown, Maryland, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Burnett, 38, pleaded guilty today on one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” Burnett admitted to having a 9mm pistol while trafficking cocaine and marijuana in October 2020 in Berkeley County.
Burnett faces at least five years and up to life incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marlette Man Sentenced to 240 Months for Possession of Child PornographyRead the Press Release
DETROIT – United States District Court Judge Terrence G. Berg sentenced Robert Howard Gratton, 35, of Marlette, to 240 months in prison on charges of possession of child pornography, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation, Detroit Division and Brenda Sanford, Sanilac County Prosecutor.
According to court records, Gratton – a registered sex offender who had two prior convictions for offenses related to the possession of child pornography – possessed images of child pornography recovered on his cellular phone during the course of an investigation of a sexual assault he committed.
US Attorney Dawn N. Ison stated, “This significant sentence resulting from cooperation between local, state, and federal law enforcement, demonstrates our commitment to keeping some of our most vulnerable citizens safe from sex offenders who prey on children.”
Prosecutor Sanford stated, "The Sanilac County Prosecutor's Office greatly appreciates the efforts of all of the law enforcement officers who were involved in the investigation in bringing the defendant to justice."
Gratton also was sentenced in the 24th Judicial Circuit Court to 90 to 180 months in prison for a second-degree criminal sexual conduct charge, concurrent to the federal sentence, the assault of a minor that led to the discovery of this offense.
The case was the result of a joint investigation by the Sanilac County Sheriff’s Department, the Michigan State Police, and the Northeast Michigan Trafficking and Exploitation Crimes Task Force (“NEMTEC”) of the Federal Bureau of Investigation, as well as a cooperative effort between the Sanilac County Prosecutor’s Office and the United States Attorney’s Office.
Man Who Trafficked Deadly Fentanyl Sentenced to 14 Years in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that MICHAEL NIEVES, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 168 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, the FBI’s Safe Streets Task Force and the Norwich Police Department launched an investigation after several fatal and non-fatal overdoses occurred in a short period of time in eastern Connecticut. Investigators determined that, beginning at least as early as January 2017 and continuing to July 2018, Nieves worked with Juan Reyes to supply heroin and fentanyl to other distributors, including individuals who regularly traveled from eastern Connecticut to Hartford to purchase the drugs. Those individuals then sold the drug to customers in the Norwich and New London areas.
On July 5, 2017, Norwich Police officers responded to a residence on the report of an overdose. The victim, a 34-year-old male, was transported to the hospital where he died. The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be “acute fentanyl intoxication.” The investigation revealed that Christopher Dubicki, of Norwich, sold the fentanyl to the victim after previously purchasing it from Nieves and Reyes.
Investigators have connected six other overdoses, three fatal and three non-fatal, to drugs that were supplied by Nieves and Reyes.
Nieves has been detained since his arrest on June 5, 2018. On June 29, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
Reyes, last residing in West Hartford, pleaded guilty to the same charge on June 9, 2021. On October 26, he was sentenced to 151 months of imprisonment and followed by five years of supervised release.
Dubicki pleaded guilty to fentanyl, heroin and cocaine distribution charges and is detained while awaiting sentencing.
This investigation has been conducted by the FBI’s Safe Streets Task Force and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Letcher County Teacher Sentenced to 370 Months for Production of Child Pornography and CyberstalkingRead the Press Release
LONDON, Ky. – A Letcher County Middle School teacher, Charles Evans Hall Jr., was sentenced on Tuesday, February 22, 2022, to 370 months in federal prison, by U.S. District Judge Claria Horn Boom, for production of child pornography and cyberstalking a student.
According to the evidence presented at Hall’s trial, Hall persuaded a child to setup a secret Snapchat account. Hall then manipulated the child into creating and transmitting sexually explicit pictures and videos. The Kentucky State Police (KSP) seized Hall’s cell phone on November 20, 2018. Thereafter, Hall used an Instagram account to engage in Cyberstalking. Additionally, Hall repeatedly requested the minor victim help him destroy evidence and threatened the child when she did not comply.
Following his arrest, Hall then bartered with his cellmate to get a co-conspirator, who was not in custody, to continue the Cyberstalking campaign against the child. Hall told the minor victim to make another statement to law enforcement to clear him of the charges.
The Court applied numerous sentencing enhancements, based on evidence of his engaging in sex acts with a minor, obstructing justice, abusing a position of trust, and being a repeat and dangerous sex offender against minors.
Hall was convicted, after a three-day jury trial, on October 20, 2021. Under federal law, Hall must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for Life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Commissioner Col. Phillip Burnette, Jr., Kentucky State Police, jointly announced the sentence.
This case was prosecuted 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.
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Lebanon Man Charged with Child Pornography OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Rankin, age 34, of Lebanon, Pennsylvania, was indicted on February 23, 2022, by a federal grand jury for sexually exploiting children, distributing child pornography, and possessing child pornography.
According to United States Attorney John C. Gurganus, the indictment alleges that between June 2021 and August 2021, Rankin induced a minor to engage in sexually explicit conduct for the purpose of producing images of that conduct. The indictment also alleges that Rankin distributed child pornography in August 2021 and possessed child pornography in October 2021.
The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli 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."
If convicted, the maximum penalty under federal law for these offenses is 60 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lackawanna County Man Sentenced to 30 Years’ Imprisonment for Production of Child Pornography and Attempted Witness TamperingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Lewis Kramer, age 37, of Scranton, Pennsylvania, was sentenced on February 23, 2022, to 360 months’ imprisonment by United States District Court Judge Malachy E. Mannion for production of child pornography and attempted witness tampering.
According to United States Attorney John C. Gurganus, on July 7, 2021, following a two-day bench trial, Judge Mannion found Kramer guilty of producing pornographic images of a child between March 1, 2019, and March 27, 2020, in Lackawanna County. The 14-year-old victim’s mother called the police to report that she found videos and pictures on Kramer’s phone having sex with the minor victim. On January 22, 2021, Kramer sent a letter to the victim’s mother threatening to have her arrested—conduct that resulted in the guilty verdict for attempted witness tampering.
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.
The case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
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Knoxville Woman Sentenced to 57 Months in Prison for Defrauding COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On February 24, 2022, Porsha Tims Bush, 42, formerly of Knoxville, Tennessee, was sentenced to 57 months in prison by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Bush pleaded guilty to engaging in more than $540,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, in violation of Title 18 U.S.C. § 1343. Judge Crytzer ordered her to pay restitution in the amount of $471,621, a fine of $25,000, and to complete a term of supervised release of three years following her release from prison.
The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans who are suffering from the economic effects caused by the COVID-19 pandemic. Two primary sources of relief provided by the CARES Act were the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program. PPP loans consisted of more than $640 billion in forgivable loans to small businesses for payroll, mortgage interest, rent, and utilities. The EIDL program provided low-interest loans to business owners to pay for items like accounts payable and other bills that could not be paid as a result of COVID-19.
As set forth in the written plea agreement filed with the court, from March 30, 2020, to around the end of June 2020, Bush fraudulently applied for 10 loans totaling $547,286 through the PPP and EDIL programs. Bush submitted fraudulent applications under the names of six businesses that did not qualify for the COVID-19 relief funds that Bush sought. Bush submitted nine fraudulent applications to financial institutions seeking PPP funds and one fraudulent application to the Small Business Administration seeking EIDL funds. As part of her fraud scheme, Bush submitted false supporting records, including Internal Revenue Service documents, and made false statements about the number of individuals the companies employed, the revenue generated, and the wages paid. Bush also made false statements about the business entities and the intended use of the loan proceeds.
Bush then used the fraudulently obtained loan proceeds for unauthorized purposes, including to purchase clothes and electronics; to pay off personal debt; to pay for personal travel; and to fund her daily lifestyle.
For example, according to the plea agreement, on March 30, 2020, Bush submitted an online application to the Small Business Administration in the name of Enlightenment Family Care, Inc., seeking $150,000 in EIDL funds. On the application and in the supporting documents Bush submitted to the SBA—which were all false—Bush claimed that Enlightenment Family Care employed four individuals, generated $335,651 in gross revenue, incurred $34,500 in cost of goods sold, and paid wages of $45,651 in the twelve months preceding the COVID-19 pandemic. Bush fabricated a Profit and Loss Statement to substantiate her false claims.
According to court documents, after entering her guilty plea in August 2021, and while she was subject to presentence release conditions, Bush submitted false Internal Revenue Service forms requesting COVID-19 relief funds for three companies, none of which was entitled to the requested funds. Bush admitted to that conduct before sentencing in this case in a joint stipulation that was filed with the court.
This case is the result of an investigation conducted by the FBI.
Assistant United States Attorney William A. Roach, Jr., who also serves as the Office’s Coronavirus Fraud Coordinator, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Knoxville Man Sentenced to 87 Months in Prison for Attempting to Hire A "Hitman"Read the Press Release
KNOXVILLE, Tenn. – On February 24, 2022, Nelson Paul Replogle, 60, of Knoxville, was sentenced to 87 months in prison, followed by a three-year period of supervised release, by the Honorable Leon Jordan, Senior United States District Judge of the U.S. District Court for the Eastern District of Tennessee.
As part of a written plea agreement, Replogle pleaded guilty to one count of Murder-For-Hire in violation of Title 18, United States Code, Section 1958. In the filed plea agreement, Replogle admitted to using the Internet in April 2021 to contact a dark web entity that purported to arrange murders-for-hire. He provided the would-be killer with his wife’s name and address, a description of her vehicle, and a specific date, time, and place where she could be found and murdered. In addition, Replogle asked that the killing appear as “road rage or [a] carjacking gone wrong.” In exchange, Replogle used the Internet to transmit a payment of 0.2924549 Bitcoin, which on the day of payment had the approximate value of $17,853.49.
The Federal Bureau of Investigation (FBI) learned of Replogle’s efforts to arrange to have the victim killed and arrested Replogle. The intended victim was unharmed.
This prosecution is the result of an investigation by the FBI.
Assistant United States Attorney Frank M. Dale Jr. represented the United States.
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Justice Department Sues to Shut Down Multistate Tax 'Elimination' Scheme Involving Charitable Remainder Annuity TrustsRead the Press Release
On Feb. 23, the United States filed a complaint seeking an order prohibiting John Hugo Eickhoff Jr., Rhonda Kaye Eickhoff, Hoffmann Associates LLC, Aric Elliot Schreiner, Columbia CPA Group LLC, John Williams Gray II and Damon Thomas Eisma from organizing, promoting or selling an allegedly unlawful tax scheme involving the use of charitable remainder annuity trusts (CRATs). The government allegations detail the defendants’ involvement with at least 70 CRATs, in a scheme that has resulted in an estimated $40 million of taxable income going unreported and at least $8 million in tax revenue losses.
According to the complaint filed in the U.S. District Court for the Western District of Missouri, defendants falsely claim that customers following their CRAT scheme can sell property in a way that eliminates the federal tax on the income generated. Specifically, the government alleges that each defendant participates in one or more of the following steps involved in the scheme: (1) convincing customers to contribute property to a CRAT (usually real property that has gained value over time); (2) unlawfully inflating (stepping-up) the cost basis in the property; (3) selling the property to purchase an annuity; and (4) falsely reporting the annuity payments received by the customers as tax-free distributions of income made by the CRAT. The complaint further alleges that the defendants know or have reason to know that their statements to customers about the supposed tax benefits of the transaction they promote are false or fraudulent.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
The IRS warns taxpayers to be wary of scams that involve claiming inflated charitable contribution deductions and recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.
In the past decade, the Tax Division has obtained injunctions against hundreds of tax return preparer and tax fraud promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues to Block UnitedHealth Group’s Acquisition of Change HealthcareRead the Press Release
The Department of Justice, together with Attorneys General in Minnesota and New York, filed a civil lawsuit today to stop UnitedHealth Group Incorporated (United) from acquiring Change Healthcare Inc. (Change). The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the proposed $13 billion transaction would harm competition in commercial health insurance markets, as well as in the market for a vital technology used by health insurers to process health insurance claims and reduce health care costs.
“Quality health insurance should be accessible to all Americans,” said Attorney General Merrick B. Garland. “If America’s largest health insurer is permitted to acquire a major rival for critical health care claims technologies, it will undermine competition for health insurance and stifle innovation in the employer health insurance markets. The Justice Department is committed to challenging anticompetitive mergers, particularly those at the intersection of health care and data.”
“The proposed transaction threatens an inflection point in the health care industry by giving United control of a critical data highway through which about half of all Americans’ health insurance claims pass each year,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Unless the deal is blocked, United stands to see and potentially use its health insurance rivals’ competitively sensitive information for its own business purposes and control these competitors’ access to innovations in vital health care technology. The department’s lawsuit makes clear that we will not hesitate to challenge transactions that harm competition by placing so much control of data and innovation in the hands of a single firm.”
As alleged in the complaint, the proposed transaction would give United, a massive company that owns the largest health insurer in the United States, access to a vast amount of its rival health insurers’ competitively sensitive information. Post-acquisition, United would be able to use its rivals’ information to gain an unfair advantage and harm competition in health insurance markets. The proposed transaction also would eliminate United’s only major rival for first-pass claims editing technology — a critical product used to efficiently process health insurance claims and save health insurers billions of dollars each year — and give United a monopoly share in the market.
The proposed acquisition would eliminate an independent and innovative firm, Change, that today provides a variety of participants in the health care ecosystem, including United’s major health insurance competitors, with vital software and services. This includes electronic data interchange (EDI) clearinghouse services, which transmit claims and payment information between insurers and providers, and first-pass claims editing solutions, which review claims under the health insurer’s policies and relevant treatment protocols. Indeed, Change markets itself as a valuable partner for insurers, working closely with them to innovate and problem-solve. United’s acquisition of this neutral player would allow United to tilt the playing field in its favor, harming current competition and allowing United to control and distort the course of innovation in this industry for the foreseeable future.
UnitedHealth Group Incorporated is headquartered in Minnetonka, Minnesota. United is an integrated health care enterprise that includes, among other subsidiaries, UnitedHealthcare, the largest health insurer in the United States; Optum Health, a large network of health care providers located throughout the country; OptumRx, a large pharmacy benefit manager; and OptumInsight, a health care technology business. United’s revenues were $288 billion in 2021.
Change Healthcare Inc. is headquartered in Nashville, Tennessee. Change is a leading independent health care technology company providing health care analytics, software, services and data to health care providers, health insurers and other software and services firms in the health care industry. Change’s revenues were $3.4 billion in 2021.
Justice Department Files Suit Against Pennsylvania Court System for Discriminating Against People with Opioid Use DisorderRead the Press Release
Today, the Justice Department filed suit against the Unified Judicial System of Pennsylvania (UJS) for violating the Americans with Disabilities Act (ADA). The department previously notified the UJS that its courts had engaged in discrimination by prohibiting or limiting the use of lawfully prescribed medication to treat Opioid Use Disorder (OUD) by individuals under court supervision. That letter of findings demanded that the UJS address the civil rights violations identified by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Eastern, Middle and Western Districts of Pennsylvania.
The Justice Department identified three individuals with OUD who were discriminated against by UJS Courts — specifically, the Northumberland and Jefferson County Courts of Common Pleas. Two individuals alleged that the Jefferson County Court ordered all probationers to stop using their prescribed medication for OUD. A third individual alleged that the Northumberland County Court required her to stop using her prescribed OUD medication to graduate from drug court. The department’s investigation corroborated these allegations and additionally found evidence that other UJS Courts have policies that discriminate against individuals with OUD.
“This lawsuit aims to safeguard the rights of people with Opioid Use Disorder who are too often subject to discrimination rooted in stereotypes and myths rather than in science,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Court-involved individuals with Opioid Use Disorder deserve access to medications needed to support their recovery and to break the cycles of addiction. We hope that this lawsuit against the Unified Judicial System of Pennsylvania sends a strong message about the need for courts to protect the rights of individuals with Opioid Use Disorder.”
If you believe that a Pennsylvania court prohibited or limited your use of lawfully prescribed medication to treat OUD, please email [email protected]. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. The letter can be viewed here. The complaint can be viewed here.
Jury Convicts Arizona and California Men for $20 Million Dollar Investment FraudRead the Press Release
NORFOLK, Va. – A federal jury convicted an Arizona man and a California man yesterday on charges of conspiracy to commit mail and wire fraud, wire fraud, and money laundering, in connection with a nationwide investment scheme involving fraudulent wireless spectrum and dental franchise investments.
According to court records and evidence presented at trial, from approximately 2011 through 2017, David Alcorn, 78, of Scottsdale, Arizona, and Aghee William Smith II, 70, of Roseville, California, were part of an investment fraud conspiracy that operated out of California, Arizona, Florida, Idaho, and Hampton Roads, among other locations across the country. Alcorn, Smith, and their co-conspirators—including Kent Maerki, 78, and his wife Norma Jean Coffin, 60, of Arizona, Daryl Bank, 51, of Florida, insurance salesman Tony Sellers, 62, of Idaho, insurance salesman Tom Barnett, 69, of California, attorney Billy Seabolt, 56,, of Williamsburg, Raeann Gibson, 49, of Florida, and Roger Hudspeth, 51, of Suffolk – deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by convincing them to invest in or send money to companies owned and controlled by Alcorn, Bank, and Maerki. Alcorn and others then misappropriated significant portions of the investment funds to pay for their criminal enterprise and lavish lifestyles, as well as to pay exorbitant commissions to Smith and other salesmen.
Smith began selling these fraudulent investments in 2011 for Alcorn, Maerki, and Bank. The conspirators used material misrepresentations to sell illiquid, highly speculative investment vehicles that were then used as vehicles for fraud. Based on these fraudulent misrepresentations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest without knowing that Alcorn, Bank, and Maerki were immediately transferring 20%–70% of the funds to other companies that they controlled in the form of purported “fees.” As a result of this investment fraud scheme, the victims suffered losses in excess of $20 million.
Alcorn was convicted of conspiracy, wire fraud, and money laundering. He faces a maximum penalty of over 200 years in prison when sentenced on June 23. Smith was convicted of conspiracy and wire fraud, and he faces a maximum penalty of over 90 years in prison when sentenced on June 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Bank was convicted after trial of conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering, and was sentenced in September 2021 to 35 years in prison. Maerki pleaded guilty to conspiracy and was sentenced in March 2021 to 16 years in prison. Seabolt was convicted after trial of conspiracy and mail fraud and sentenced in September 2021 to 10 years in prison. Gibson pleaded guilty to conspiracy and was sentenced in February 2020 to 10 years in prison. Hudspeth pleaded guilty to investment advisor fraud and money laundering and was sentenced in May 2018 to over 12 years in prison. Sellers pleaded guilty to conspiracy and was sentenced in January 2022 to 5 years in prison. Coffin and Barnett each pleaded guilty to conspiracy and will be sentenced in March and May 2022, respectively.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Darrell J. Waldon, Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service; and Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after Senior U.S. District Judge Raymond A. Jackson accepted the verdict.
The Virginia State Corporation Commission provided significant assistance with this investigation.
Assistant U.S. Attorneys Melissa O’Boyle, Elizabeth Yusi and Andrew Bosse are prosecuting the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No 2:19-cr-47.
Jefferson County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Brent Collum, of Harpers Ferry, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Collum, 36, pleaded guilty today on one count of “Unlawful Possession of a Firearm.” Collum, a person prohibited from having a firearm because of a prior conviction, admitted to having a .45 caliber handgun in August 2021 in Jefferson County.
Collum faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Indiana Native Sentenced for 2019 Attempted Armed Robbery of Uptown CVS Pharmacy That Resulted in Shooting of NOPD OfficerRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Tuesday, February 22, 2022, that RICHARD SANSBURY, age 28, a resident of Indianapolis, Indiana, was sentenced for his participation in the June 17, 2019, robbery of the CVS pharmacy located at 4901 Prytania Street in New Orleans.
United States District Court Judge Greg G. Guidry imposed a sentence for each count of the three-count indictment to which SANSBURY plead guilty. As to count one, SANSBURY was charged with conspiracy to commit a robbery involving a controlled substance, in violation of Title 18, United States Code, Section 2118. For count one, the court sentenced SANSBURY to a term of imprisonment of 121 months in the federal Bureau of Prisons. As to count two, SANSBURY was charged with armed robbery involving controlled substances in violation of Title 18, United States Code, Sections 2118(a) and (c)(1). For count two, the court sentenced SANSBURY to a term of imprisonment of 121 months in the federal Bureau of Prisons. Counts 1 and 2 were ordered to run concurrent to each other. In count three, SANSBURY was charged with discharge of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). The court sentenced SANSBURY to a term of imprisonment of 120 months for this count. The sentence imposed in count three will run consecutive to the sentences imposed in counts 1 and 2. Following his term of imprisonment, SANSBURY will be placed on supervised release for a period of 4 years. The court imposed a mandatory special assessment fee of $300.00.
According to documents filed in court, at approximately 6:06 a.m., Richard SANSBURY and his co-defendant, Alan Parson entered the 24-hour pharmacy, armed with weapons. Both wore hooded sweatshirts and blue medical gloves. Upon entering the store, SANSBURY removed a firearm from his waistband, went behind the front counter, and zip-tied a cashier. SANSBURY led the cashier to a restroom inside of the store. Parson went to the rear of the store, in the pharmacy area, and forced another employee to the ground before securing a second employee’s feet with zip-ties. Parson then filled a large trash bag with several pill bottles that he retrieved from the pharmacy’s safe. SANSBURY entered the pharmacy area as well and zip-tied the second employee’s hands.
SANSBURY and Parson attempted to escape through the store’s entrance but upon exiting the store, encountered responding New Orleans Police Officers. SANSBURY and Parson engaged in a shootout with the officers that resulted in one officer being shot in the shoulder. Video surveillance captured the robbery as it occurred inside of the CVS pharmacy, as well as the subsequent shootout with police.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys David Haller and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Hull Man Sentenced for Fraudulently Submitting CARES Act Small Business LoansRead the Press Release
BOSTON – A Hull man was sentenced today in federal court in Boston in connection with submitting fraudulent documentation in order to receive CARES Act small business loans.
Shane Spierdowis, 31, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and two years of supervised release. On Oct. 21, 2021, Spierdowis pleaded guilty to one count of wire fraud.
Spierdowis used multiple shell companies and forged bank records to fraudulently apply for and obtain a federally funded Small Business Administration (SBA) Paycheck Protection Program (PPP) loan and an SBA Economic Injury Disaster Loan (EIDL). Spierdowis used Social Security numbers different from his own and fraudulent documentation to open bank accounts for his shell companies. He also provided a fraudulent corporate bank statement reflecting a balance exceeding $220,000 but dated before the pertinent bank account was ever opened.
As a result, Spierdowis obtained an SBA Paycheck Protection Program loan of $101,517 for one of his shell companies, the funds for which were wired to a bank in Massachusetts. Spierdowis also obtained an SBA EIDL in the amount of $89,900 using a separate shell company.
Additionally, with respect to both loans, Spierdowis submitted fraudulent federal tax forms for both shell companies that included his signature, as the purported president of each company, and the purported payment of hundreds of thousands of dollars in wages to purported employees during each quarter in 2019. In reality, however, for part of Q1 2019 and all of Q2 – Q4 2019, Spierdowis was in federal custody after violating his probation arising from a federal conviction for conspiracy to commit securities fraud.
United States Attorney Rachael S. Rollins and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. The Hull Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Rollins’ Criminal Division, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Houston area residents charged with unlawfully possessing full auto switchesRead the Press Release
HOUSTON – A federal grand jury has returned an indictment against the man accused of shooting three Houston police officers as well as several unrelated cases involving unlawful possession of firearms with “Glock switches” or other violations, announced U.S. Attorney Jennifer B. Lowery along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Troy Finner of the Houston Police Department (HPD), Sheriff Ed Gonzalez of the Harris County Sheriff’s Office (HCSO) and U.S. Marshal Michael O’Conner of the U.S. Marshals Service (USMS).
Full auto switches, or machine guns, are most commonly referred to as “Glock switches.
Five of those charged are set to make their initial appearances today before U.S. Magistrate Judge Christina A. Bryan at 2 pm.
Roland Caballero, 31, Houston, is currently in state custody on related charges and will make an appearance in Houston federal court at a later date. He is charged federally with carjacking, discharge of firearm during a crime of violence, possession of a machine gun and being a felon in possession of a firearm.
“The charges announced today are a sobering reminder of the dangers faced everyday by law enforcement officers around this country,” said Deputy Attorney General Lisa O. Monaco. “The defendant allegedly shot and wounded three HPD officers with a pistol that was converted into a machine gun. The Department of Justice is focused on taking violent criminals off the street and doing so by working side by side with our state and local law enforcement partners.”
The charges against Caballero allege he was in an altercation with his girlfriend which resulted in a 911 call Jan. 27. Authorities responded, but he fled, according to the criminal complaint originally filed in the case. They pursued. According to the charges, Caballero eventually crashed his vehicle, at which time he shot at and wounded three HPD officers using a pistol modified with a full auto switch.
Caballero then fled the scene on foot and carjacked a nearby vehicle, according to the complaint. However, the charges allege law enforcement located him and a stand-off ensued. He, again, allegedly discharged a firearm at authorities, after which he ultimately surrendered.
The indictment further alleges search warrants conducted at his residence resulted in the discovery of several firearms, ammunition, machine gun components and 3-D printers.
In addition to the charges against Caballero, federal grand jury returned indictments Feb. 16 against 19 individuals for unlawful possession of an unregistered machine gun, possession of a machine gun or being a felon in possession of a firearm. [Detailed listing attached.]
Those charges resulted from various traffic stops or responding to scenes, during which authorities discovered the unlawful firearms; through undercover investigations; or as a result of other proactive enforcement efforts.
If convicted of unlawful possession of an unregistered machine gun, possession of a machine gun, or felon in possession face up to 10 years in federal prison. Caballero faces a minimum of 30 years up to life in prison if convicted of carjacking with the use of a machine gun. All charges also carry a possible $250,000 maximum fine, upon conviction.
ATF, HPD, HCSO and USMS conducted the Caballero investigation as well as all or some of the other matters with assistance of Galveston Police Department, Harris County Precinct 2 Constables Office, Texas Department of Public Safety and Brazos County Sheriff’s Office. Assistant U.S. Attorneys in the violent crimes section are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawHouston Area Residents Charged with Unlawfully Possessing Full Auto SwitchesRead the Press Release
A federal grand jury has returned an indictment against the man accused of shooting three Houston police officers as well as several unrelated cases involving unlawful possession of firearms with “Glock switches” or other violations, announced U.S. Attorney Jennifer B. Lowery along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Troy Finner of the Houston Police Department (HPD), Sheriff Ed Gonzalez of the Harris County Sheriff’s Office (HCSO) and U.S. Marshal Michael O’Conner of the U.S. Marshals Service (USMS).
“The charges announced today are a sobering reminder of the dangers faced everyday by law enforcement officers around this country,” said Deputy Attorney General Lisa O. Monaco. “The defendant allegedly shot and wounded three HPD officers with a pistol that was converted into a machine gun. The Department of Justice is focused on taking violent criminals off the street and doing so by working side by side with our state and local law enforcement partners.”
Full auto switches, or machine guns, are most commonly referred to as “Glock switches.”
Roland Caballero, 31, of Houston, is currently in state custody on related charges and will make an appearance in Houston federal court at a later date. He is charged federally with carjacking, discharge of firearm during a crime of violence, possession of a machine gun and being a felon in possession of a firearm.
The charges against Caballero allege he was in an altercation with his girlfriend which resulted in a 911 call on Jan. 27. Authorities responded, but he fled, according to the criminal complaint originally filed in the case, and officers pursued. According to the charges, Caballero eventually crashed his vehicle, at which time he shot at and wounded three HPD officers using a pistol modified with a full auto switch.
Caballero then fled the scene on foot and carjacked a nearby vehicle, according to the complaint. However, the charges allege law enforcement located him and a stand-off ensued. He, again, allegedly discharged a firearm at authorities, after which he ultimately surrendered.
The indictment further alleges search warrants conducted at his residence resulted in the discovery of several firearms, ammunition, machine gun components and 3D printers.
In addition to the charges against Caballero, federal grand jury returned indictments on Feb. 16 against 19 individuals for unlawful possession of an unregistered machine gun, possession of a machine gun or being a felon in possession of a firearm. Five of those charged were set to make their initial appearances today before U.S. Magistrate Judge Christina A. Bryan at 2:00 p.m. EST.
Those charges resulted from various traffic stops or responding to scenes, during which authorities discovered the unlawful firearms; through undercover investigations; or as a result of other proactive enforcement efforts.
If convicted of unlawful possession of an unregistered machine gun, possession of a machine gun, or felon in possession Caballero faces up to 10 years in federal prison. Caballero faces a minimum of 30 years up to life in prison if convicted of carjacking with the use of a machine gun. All charges also carry a possible $250,000 maximum fine, upon conviction.
ATF, HPD, HCSO and USMS conducted the Caballero investigation as well as all or some of the other matters with assistance of Galveston Police Department, Harris County Precinct 2 Constables Office, Texas Department of Public Safety and Brazos County Sheriff’s Office. Assistant U.S. Attorneys for the Southern District of Texas in the violent crimes section are prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Great Falls man sentenced to 14 years in prison for distributing meth, fentanyl that led to deathRead the Press Release
GREAT FALLS — A Great Falls man who admitted to distributing methamphetamine and fentanyl to a person who died of an overdose was sentenced today to 14 years in prison to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kent Fox, 48, pleaded guilty in October 2021 to distribution of controlled substances resulting in death.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $815 restitution.
The government alleged in court documents that on Aug. 23, 2020, Great Falls police were dispatched to a camper trailer and found a male, identified as John Doe, deceased. Fox was on the scene, was friends with John Doe, had last seen him two days earlier and had gone to check on him. Fox found John Doe deceased. The government further alleged that two days earlier, Fox helped arranged a drug deal between his co-defendant, Brandie Rae Fulbright, and John Doe. As part of the deal, Fox received a semiautomatic rifle and John Doe received meth and two blue pills, identified as fentanyl. An autopsy determined that Doe died from an overdose of a combination of meth and fentanyl, which were the same substances recovered from John Doe’s trailer. Fulbright has pleaded guilty to charges in the case and is awaiting sentencing.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the FBI and Great Falls Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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