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31 March 2022
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 28, 2022, by U.S. District Judge Karen E. Schreier.
Cephas Joseph Wood, age 38, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Wood was indicted by a federal grand jury on December 7, 2021. He pled guilty on December 9, 2021.
The conviction stems from Wood failing to register as a sex offender as required by federal law between September 17, 2021, and November 13, 2021. Wood had previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Wood was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Production of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography.
Jayden Kusiek Wolf, age 22, was indicted on March 17, 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on March 25, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about May 25, 2021, and July 7, 2021, Kusiek Wolf knowingly employed, used, persuaded, induced, enticed, and coerced two minor females in Sioux Falls to engage in sexually explicit conduct for the purpose of producing visual depictions, and knowing that such visual depictions would be transported in interstate and foreign commerce or mailed, and such visual depictions would be produced by any means, including by computer.
The charges are merely accusations and Kusiek Wolf is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, and the Minnehaha County Sheriff’s Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Kusiek Wolf was remanded to the custody of the U.S. Marshals Service pending trial, which has not been set.
Serial Bank Robbery Suspect Federally ChargedRead the Press Release
An Albuquerque man suspected of committing a string of bank robberies across Texas, Arizona, New Mexico, Mississippi, and California has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Fernando Enriquez, 35, was charged via criminal complaint on Wednesday with one count of bank robbery. He made his initial appearance Thursday afternoon before U.S. Magistrate Judge John R. Parker.
According to the complaint, on Tuesday, Mr. Enriquez allegedly entered a Chase Bank in Abilene, Texas, brandished a firearm, demanded cash from the teller, and then fled the scene.
The teller, who activated her silent alarm during the robbery, later described the suspect as a heavy-set Hispanic man wearing a face mask, grey hoodie, jeans, and a baseball cap.
A witness who was inside the bank during the incident used his phone to record video footage of the suspect exiting the bank and entering a white Chevrolet suburban bearing Mississippi license plates. He immediately turned the video over to law enforcement.
Forty-five minutes later, Texas DPS and Abilene Police Department officers pulled over the suburban in Merkel, Texas and detained Mr. Enriquez and his girlfriend, Crystal Quispe. Inside the vehicle, officers found a firearm, a gray hoodie, baseball cap, and a significant sum of U.S. currency.
Law enforcement transported Mr. Enriquez and Ms. Quispe to the Abilene Police Department, where Ms. Quispe told FBI agents that over the past 14 months, she and Mr. Enriquez have lived in Arizona, Mississippi, New Mexico, and California. She stated that though Mr. Enriquez was not employed most of that time, he always seemed to have cash on hand.
She told officers that prior to the robbery, Mr. Enriquez left her and his children at a motel, stating he had to fill the car with gas. When he returned, she said, he rushed to get the vehicle loaded and leave. She described Mr. Enriquez’s driving during their departure from Abilene as faster and more erratic than usual.
Based on physical description and the modus operandi, investigators believed that the suspect who committed the Abilene robbery may have committed similar robberies in Arizona, Mississippi, New Mexico, and California. They showed Ms. Quispe two photographs from the other bank robberies, both provided by FBI Phoenix. Ms. Quispe identified the man in the photographs as Mr. Enriquez.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Enriquez is presumed innocent until proven guilty in a court of law. (Ms. Quispe has not been charged with any crimes.)
If convicted, Mr. Enriquez faces up to 25 years in federal prison.
The Federal Bureau of Investigations’ Phoenix and Dallas Field Offices conducted the investigation with the assistance of the Texas Department of Public Safety, the Abilene Police Department, and the Taylor County Sheriff’s Office. Assistant U.S. Attorney Matthew Tusing of the Northern District of Texas is prosecuting the case with significant support from the U.S. Attorney’s Office in the District of Arizona.
Sacramento Drug Trafficker Sentenced to 17.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Gabriel Arauza, 33, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 and a half years in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Arauza was arrested on Aug. 29, 2018, after law enforcement officers found 30.5 pounds of methamphetamine at his residence in Sacramento. Arauza has previously been convicted on four separate occasions for felony drug offenses, including California state drug trafficking convictions in 2013 and 2015.
This case was the product of an investigation by the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Justin Lee and Aaron Pennekamp prosecuted the case.
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.
Registered Sex Offender Charged for Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JACOB WIEBELT (“WIEBELT”), age 39, of Ponchatoula, Louisiana, was charged on March 28, 2022 in a one-count bill of information for Possession of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (B)(2). If convicted, WIEBELT faces a mandatory minimum sentence of ten (10) years and a maximum sentence of up to twenty (20) years imprisonment, and/or a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, WIEBELT faces a term of supervised release of no less than five (5) years and up to life after his release from prison. According to documents filed in federal court, WIEBELT was previously convicted in 2011 for Receipt of Child Pornography and sentenced to five (5) years in federal prison. WIEBELT was on supervised release when he committed this new offense.
Additionally, according to documents filed in federal court, the case against WIEBELT developed as a result of a lead to the Louisiana Bureau of Investigation (“LBI”) that a user uploaded child sexual abuse material (“CSAM”) to the Discord messenger service. Specifically, the lead reflected that the user uploaded sexually explicit videos of children who were prepubescent in age.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Radeas LLC Agrees to Pay $11.6 Million to Resolve Allegations of Fraudulent BillingRead the Press Release
BOSTON – A North Carolina-based clinical laboratory, Radeas LLC, has agreed to pay $11.6 million to resolve allegations that it submitted false claims for payment to Medicare for medically unnecessary urine drug testing (UDT).
According to the settlement agreement, Radeas admits that between January 2016 and September 2021, it regularly billed Medicare for medically unnecessary UDT. Specifically, Radeas performed and then billed Medicare for two types of UDT: presumptive testing, a relatively inexpensive test that quickly provides qualitative results, and confirmatory testing, an expensive test that is designed to confirm quantitatively the results of presumptive UDT. Radeas performed both types of tests at approximately the same time and then simultaneously submitted the results to health care providers. Absent any physician review of a presumptive UDT result there was often nothing to support the medical necessity of a separate, simultaneous confirmatory test. The settlement makes clear that Radeas’ confirmatory UDT was therefore frequently baseless. Yet, Radeas billed Medicare for these medically unnecessary lab tests. The government alleges this conduct violated the False Claims Act.
According to the settlement agreement, Radeas also admits that, between May 2013 and April 2021, it paid third-party sales organizations based on the volume of UDT referrals those sales representatives made to Radeas. The government alleges this conduct violated the Anti-Kickback Statute and the False Claims Act.
In connection with the settlement, Radeas has agreed to enter into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General, which will include an annual arrangements review for compliance with the Anti-Kickback Statute and an annual claims review of Radeas’ claims to Federal health care programs by an Independent Review Organization.
“Radeas billed Medicare for unnecessary urine drug testing that served no legitimate clinical purpose,” said United States Attorney Rachael S. Rollins. “This is serious conduct that improperly diverts funds needed to care for the most vulnerable, especially during this devastating pandemic. After the government began its investigation and confronted Radeas, we were able to resolve this matter for $11.6 million and return substantial funds to the Medicare program. Radeas did fully cooperate and acknowledge its improper practices. We commend Radeas’ responsible approach to this matter.”
“Clinical labs are expected to closely follow Medicare rules and bill properly,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. We are committed to protecting the integrity of our federal healthcare system.”
U.S. Attorney Rollins and HHS OIG SAC Coyne made the announcement. Assistant U.S. Attorney Abraham R. George, Chief of Rollins’ Affirmative Civil Enforcement Unit and Assistant U.S. Attorney Charles B. Weinograd, also of the Affirmative Civil Enforcement Unit, handled the matter.
Racine Man Sentenced to 37 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Montanez Miller, 25, Racine, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 37 months in prison for being a felon in possession of a firearm. This prison term will be followed by a 2-year period of supervised release. Miller pleaded guilty to this charge on January 21, 2022.
On May 16, 2021, Miller was in a bar in La Crosse with another individual who flashed a gun. Police were called, saw Miller nearby, and apprehended him after a foot chase. Miller had a pack slung across his body that contained a Glock 19 9mm pistol loaded with 19 rounds of ammunition, a Glock 27 .40 caliber pistol loaded with 12 rounds, a Glock magazine with 30 rounds, and two plastic baggies of marijuana that weighed a total of 44.8 grams.
In 2013, Miller was convicted of the felony crimes of theft from person and possession with the intent to deliver marijuana in Racine County. He was sentenced to prison, which was stayed for a term of probation.
At sentencing, Judge Conley was concerned with Miller’s poor performance on supervision, and the fact that he was carrying drugs and guns. Judge Conley noted Miller’s prior offenses and probation warrant, saying that the long-term consequences of this type of conduct was likely to lead to Miller getting himself or others killed.
The charge against Miller was the result of an investigation conducted by the La Crosse Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Previously Convicted Sex Offender Sentenced to over 11 Years in Federal Prison for Possession of over 500 Depictions of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jason Wade Harley, age 48, of Frederick, Maryland to 135 months in federal prison, followed by 25 years of supervised release, for possession of child pornography. Harley was also ordered to pay $24,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County State’s Attorney J. Charles Smith; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to Harley’s plea agreement, on February 24, 2020, four suspected child pornographic images were uploaded to the internet. The internet platform to which the images were uploaded reported the upload to the National Center for Missing and Exploited Children (NCMEC). Investigators determined that several of the images distributed on the internet platform depicted the sexual abuse of infants and prepubescent minors, and that the upload was linked to Harley’s account.
On August 28, 2020, investigators executed a search warrant at Harley’s residence. As a result of the executed search warrants, investigators located a SIM card within a cell phone that contained two videos of children engaged in sexually explicit activity as well as 499 images of child pornography, including images that depicted the sexual abuse of infants and prepubescent minors. That same day, Harley admitted to investigators that he sent images of child pornography to online accounts and that he has sexual fantasies involving children.
As stated in his plea agreement, investigators also executed a search warrant for Harley’s online accounts. Following the review of Harley’s internet activity, investigators discovered evidence that Harley searched multiple phrases indicative of child pornography. On another internet account connected to Harley, investigators discovered 11 additional images of child pornography and conversations between Harley and another internet user. Within the online communications, Harley stated that he possessed 260 pictures and 130 videos of child pornography in a hidden vault and expressed his interest in sexual abuse of children.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI, the Frederick County State’s Attorney’s Office, and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christine L. Duey and Special Assistant U.S. Attorney Joyce R. King, Chief Counsel of the Frederick County State’s Attorney’s Office cross-designated to handle this case, who prosecuted the federal 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/project-safe-childhood.
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Poughkeepsie Narcotics Dealer Arrested in Connection with Multiple Overdose Deaths from Fentanyl-Laced HeroinRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Tim Foley, the Acting Special Agent-in-Charge of the New York Division of the Drug Enforcement Administration (“DEA”), and Kirk Imperati, the Acting Sheriff of the Dutchess County Sheriff’s Office, announced today the unsealing of a criminal complaint in White Plains federal court charging ALLEN PELOQUIN, a/k/a “Ace,” with distributing fentanyl-laced heroin that resulted in the death of a woman in Carmel, New York (“Victim-2”) on or about February 12, 2020 and a man in Poughkeepsie, New York (“Victim-4”) on or about May 10, 2020. The complaint also charges PELOQUIN with participating in a narcotics conspiracy that distributed fentanyl-laced heroin that resulted in the deaths of Victims-2 and -4 as well as in the death of a man in Poughquag, New York (“Victim-1”) on or about January 2, 2020 and the death of a woman in Poughkeepsie, New York (“Victim-3”) on or about May 4, 2020. PELOQUIN was arrested this morning in Poughkeepsie, New York, and was presented this afternoon before United States Magistrate Judge Judith C. McCarthy.
U.S. Attorney Damian Williams said: “As alleged, the defendant and others distributed heroin laced with the deadly synthetic opioid fentanyl and caused the death of four victims. The defendant is now in custody and facing serious federal charges. Working with our state, county, and local law enforcement partners, we will continue to hold accountable the dealers who push this lethal poison, exploit addiction, and further the devastating impact of the opioid crisis in our communities.”
DEA Acting Special Agent-in-Charge Tim Foley said: “With a daily rate of nearly 300 drug overdose deaths, it has never been more important to warn the public of the dangers of today’s illegal drugs. Synthetic drugs like fentanyl are mixed intentionally with other street drugs causing two thirds of overdose deaths. I applaud the diligent work by all of our law enforcement partners throughout this investigation which has led to Peloquin’s arrest.”
Acting Dutchess County Sheriff Kirk Imperati said: “The prosecution of Mr. Peloquin in connection with these tragic deaths comes as the result of the partnership between various law enforcement agencies and their strong commitment to holding those who sell drugs in our communities responsible. Distributing illegal narcotics that take lives, and ruin others, will not be tolerated and the prosecution of Mr. Peloquin sends a strong message that law enforcement will stop at nothing to hold those who engage in this activity accountable.”
As alleged in the Complaint:[1]
From at least in or about January 2020 up to and including at least in or about May 2020, PELOQUIN and others distributed and sold fentanyl-laced heroin throughout Dutchess County in glassine bags stamped with distinctive red images and wording and were responsible for the overdose deaths of at least four individuals: Victims-1, -2, -3 and -4. After the deaths of Victims-1 and -2, the wording and image of the red stamp changed in an apparent effort to evade law enforcement while continuing to distribute the same lethal narcotics. Upon further investigation by law enforcement—including several undercover purchases of fentanyl-laced heroin from PELOQUIN and certain of his co-conspirators in which the stamps on the bags purchased matched those on the bags found with Victims-1 and -2—PELOQUIN was identified as the particular dealer who sold fold fentanyl-laced heroin to Victims-2 and -4, which resulted in their deaths.
* * *
ALLEN PELOQUIN, a/k/a “Ace,” 34, of Poughkeepsie, New York is charged with two counts of narcotics distribution resulting in the deaths of Victim-2 and Victim-4. PELOQUIN is also charged with one count of conspiring to distribute and possess with intent to distribute fentanyl and heroin resulting in the deaths of Victims-1, -2, -3, and -4. Each the foregoing counts carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the DEA, the Dutchess County Drug Task Force (“DCDTF”), the Dutchess County District Attorney’s Office, the New York State Police, the Town of Kent Police Department, the City of Poughkeepsie Police Department, the Dutchess County Probation Department, and the Putnam County Sheriff’s Office. DCDTF includes agents and officers of the Dutchess County Sheriff’s Office, the City of Beacon Police Department, the Town of Hyde Park Police Department, and the Town of East Fishkill Police Department. Mr. Williams also thanked the Ulster County Sheriff’s Office, the Town of Lloyd Police, and the Ulster County Regional Gang Enforcement Narcotics Team (“URGENT”) for their invaluable assistance in this case. URGENT includes agents and officers of the Ulster County Sheriff’s Office, Town of Lloyd Police, Town of Plattekill Police, Town of Woodstock Police, Town of Shandaken Police, Town of New Paltz Police, Village of Ellenville Police, Town of Marlborough Police, the Ulster County District Attorney, and Ulster County Probation. Mr. Williams noted that the investigation is ongoing.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Michael D. Maimin and Kevin Sullivan are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Postal worker admits fraud in applying for and receiving veteran benefitsRead the Press Release
AUGUSTA, GA: A Taliaferro County, Ga., man has admitted withholding information about his employment with the U.S. Postal Service when applying for and receiving pension benefits from the Veterans Benefits Administration, an agency within the U.S. Department of Veterans Affairs (VA).
Sanford Lamar Edwards, 50, of Crawfordville, Ga., awaits sentencing after pleading guilty to an Information charging him with False Statements in an application for veterans pension benefits, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Edwards to a statutory penalty of up to five years in prison, followed by up to three years of supervised release, along with substantial financial penalties and restitution.
“The VA administers pension funding for former military service members in accordance with guidelines that ensure fiscal responsibility in the recipients’ applications,” said U.S. Attorney Estes. “Sanford Edwards knew he didn’t qualify for those benefits and applied for them anyway, and he is being held accountable for his deceit.”
As described in court documents and testimony, Edwards served in the U.S. Army until 1995, and in 1997 became employed by the U.S. Postal Service, earning in excess of $65,000 per year. In May 2011, Edwards signed and certified a Veteran’s Application for Compensation and Pension, falsely reporting that he had no income, falsely reporting his home as his only asset, and falsely reporting that he had a medical condition that prevented him from working. Relying on those false representations, the VA approved Edwards’ application and paid him monthly pension benefits totaling $230,000 from May 2011 through January 2022.
Annually during this 10-year period, the VA reminded Edwards of his duty to report any changes to his income or net worth, and Edwards failed to do so.
“This defendant selfishly defrauded a program that is intended to provide much-needed benefits to deserving veterans who are legitimately unable to work,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG will continue to work with its law enforcement partners to ensure those who would steal from veterans and taxpayers are held accountable.”
The case was investigation by the U.S. Department of Veterans Affairs Office of Inspector General, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Portland Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—On March 30, 2022, a Portland man was sentenced to federal prison for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Eric Wade Lysne, 35, was sentenced to 30 months in prison and three years’ supervised release.
According to court documents, in April 2020, Lysne devised and perpetrated a scheme to defraud the Small Business Administration (SBA) and various financial institutions by fraudulently applying for and obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans using false borrower information. Lysne created fictitious entities, including Paradigm Consulting Groups (Paradigm), on whose behalf he applied for and received the loans.
In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and grossed nearly $1 million for the twelve-month period ending in January 2020. Lysne also falsely claimed that he, as the applicant, had not been convicted of any felonies in the last five years when, in fact, he had been in prison for nearly a year following a May 2019 felony conviction in Washington County, Oregon, and was then on post-prison supervision.
In early June 2020, SBA disbursed a $147,400 EIDL to Paradigm through Lysne’s personal bank account. The deposit was followed by an additional $10,000 advance paid several weeks later. After receiving the funds, Lysne spent them on various personal expenses, including travel bookings and numerous cash withdrawals.
In April 2021, Lysne applied for an increase in his EIDL balance, seeking to borrow an additional $302,600. The application was pending when Lysne was indicted in May 2021. Around the same time, Lysne also applied for a $50,000 PPP loan on Paradigm’s behalf from a bank in Logan, Utah. In the application, Lysne again falsely claimed he had not been convicted of any recent felonies. He further falsely represented that Paradigm employed two individuals and had an average monthly payroll of $20,000. Based on Lysne’s fraudulent misrepresentations, the bank approved the loan application in part and disbursed a $27,700 loan to Lysne.
Lysne made similar misrepresentations in five other successful PPP loan applications to various lenders. All told, Lysne fraudulently procured $360,467 in COVID-relief loans. He was ordered to pay that amount in restitution to the SBA and victim PPP lenders, and the court also ordered Lysne to forfeit an additional $185,100 to the United States Treasury.
On May 19, 2021, a federal grand jury in Portland returned a two-count indictment charging Lysne with bank fraud and wire fraud. On November 4, 2021, he pleaded guilty to both charges.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Pittsfield Man Sentenced to 10 Years for Attempting to Entice a Minor in Rensselaer CountyRead the Press Release
ALBANY, NEW YORK – Bryan P. Krynicki, age 58, of Pittsfield, Massachusetts, was sentenced today to 120 months in prison for attempting to coerce and entice a minor to engage in sexual conduct with him. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Krynicki admitted that between February and April, 2020, he exchanged over 1,000 sexually explicit messages with an undercover officer posing as a 14-year-old child, in an attempt to coerce and entice the child into engaging in sexual acts with him. Krynicki further admitted that on April 29, 2020, he traveled to meet with the child in Rensselaer County. Krynicki was arrested after arriving at the location, and he has been in custody since that date.
United States District Judge Mae A. D’Agostino also imposed a lifetime term of supervised release, which will start after Krynicki is released from prison. As a result of his conviction, Krynicki will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies. This case was prosecuted by Assistant U.S. Attorney Rachel Williams as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Pittsburgh Man Indicted on Bank Robbery ChargesRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, PA, has been indicted by a federal grand jury on bank robbery charges, United States Attorney Cindy K. Chung announced today.
The three-count Indictment, returned on March 29, named Calvin Leavy, 67, formerly of the city’s East Liberty neighborhood, as the sole defendant.
According to the Indictment, on January 31, 2022, Leavy attempted to rob the First National Bank, located at 3721 Forbes Avenue, Pittsburgh, PA 15213, and did rob the PNC Bank, located at 4600 Fifth Ave, Pittsburgh, PA 15213, of $1,338.00. Then, on February 8, 2022, Leavy robbed the First National Bank, located at 307 4th Avenue, Pittsburgh, PA 15222, of $1,238.00
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perryton Police Officer Sentenced to 17 Years for Sharing Child Pornography on KikRead the Press Release
A former Perryton police officer was sentenced Thursday to 17 years in federal prison for child pornography offenses, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Aaron Bennett Daugherty, 36, pleaded guilty in July to transportation of child pornography. He was sentenced by U.S. District Judge Matthew J. Kacsmaryk, who also ordered a lifetime of supervised release following completion of the sentence.
According to plea papers, Mr. Daugherty was nabbed in an undercover FBI investigation into individuals using Kik, a social media app popular among teenagers, to share explicit images of children.
On June 9 2020, a Kik user with an obscene screenname – later identified as Mr. Daugherty – shared a video file depicting an adult male engaged in sexual acts with a blindfolded prepubescent child.
“I’m here to look at CP, everybody,” the user posted two weeks later. “Go on with the CP content!”
Law enforcement later contacted Mr. Daugherty at the Perryton Police Department. He admitted that he used Kik to view and share child pornography, adding that child porn did not “bother” him.
The Federal Bureau of Investigation’s Dallas Field Office – Amarillo Resident Agency, the Texas Rangers, and the Winnebago County Sheriff’s Office conducted the investigation with the full cooperation of the Perryton Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Parkersburg Man Pleads Guilty to Role in Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to conspiracy to distribute methamphetamine and marijuana.
According to court documents and statements made in court, John Michael Wells II, 33, admitted to paying and arranging for methamphetamine and marijuana to be shipped through the mail from outside West Virginia to the Parkersburg area. The methamphetamine and marijuana would then be sold by another individual who would return to Wells to provide him with the cash proceeds from those sales. Wells would then use this cash to order more methamphetamine and marijuana from his suppliers.
Wells admitted to conspiring to distribute more than 500 grams of methamphetamine in the Southern District of West Virginia during a conspiracy that lasted from at least October 2021 to November 2021.
Wells is scheduled to be sentenced on June 29, 2022, and faces a mandatory minimum sentence of 10 years and up to life in prison.
U.S. Attorney Will Thompson made the announcement, and commended the investigative work of the Federal Bureau of Investigation (FBI), the Parkersburg Police Department, and the Parkersburg Violent Crimes and Narcotics Task Force.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant U.S. Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00266.
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Orange County House Flipper Found Guilty of Filing False Federal Tax Returns That Omitted More Than $2 Million of IncomeRead the Press Release
SANTA ANA, California – A federal jury has found an Orange County real estate investor who successfully flipped foreclosed homes guilty of three federal criminal tax charges, the Justice Department announced today.
John W. Rampello, 71, of Santa Ana, was found guilty on Wednesday afternoon of two counts of subscribing to a false individual income tax return and one count of aiding and assisting in the preparation of a false individual income tax return.
United States District Judge David O. Carter has scheduled a June 27 sentencing hearing, at which time Rampello will face a statutory maximum sentence of nine years in federal prison.
According to evidence presented at his seven-day trial, Rampello, along with his business partners, was an established and successful property flipper of foreclosed homes in Orange County since the mid-1990s. During the tax years 2014 through 2016, Rampello and his partners flipped approximately 170 homes and defendant’s portion of the profits was approximately $2.1 million.
Rampello and his business partners kept detailed records of their property flip activities, including the profits Rampello made on each property. But Rampello concealed this information from his income tax return preparers and did not tell them that he was involved in the property flipping business.
As a result of his omission of his property flipping income from his 2014, 2015, and 2016 individual income tax returns, Rampello underreported his federal income taxes by hundreds of thousands of dollars.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney James C. Hughes of the Major Frauds Section and Assistant United States Attorney Brett A. Sagel of the Santa Ana Branch Office are prosecuting this case.
This case was the result of a whistleblower. If you have information on tax law violations, please provide it to IRS at https://www.irs.gov/compliance/whistleblower-office.
OGCC Behavioral Services and Dionne Huffman pay $750,000.00 to settle False Claims Act allegationsRead the Press Release
ATLANTA – OGCC Behavioral Health Services, Inc. (“OGCC”) and its owner and Executive Director, Dionne Huffman, have agreed to pay $750,000 to resolve allegations that they violated the False Claims Act by, among other things, billing the government for services that they did not provide or were not provided in the way that OGCC said that they were.
“Medicaid beneficiaries have the right to receive quality care,” said U.S. Attorney Kurt Erskine. “We will continue to prioritize cases where the provider’s actions shortchange some of the most vulnerable members of our community.”
“This settlement will serve to hold OGCC and Huffman accountable for stealing from Medicaid and the taxpayers of Georgia,” said Acting Special Agent in Charge Philip Wislar. “These funds were intended to support citizens with mental health needs but were instead diverted to greedy fraudsters. The FBI encourages brave whistleblowers like Ms. Hawkins to continue to come forward to report such crimes to law enforcement.”
“It's disturbing when health care providers accept Medicare and Medicaid money meant to pay for the care of vulnerable patients, when in reality the providers either provided no services at all or otherwise misrepresented their services in order to steal from federal health care programs,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to hold dishonest health care providers accountable in order to ensure patients receive quality care and that taxpayer-funded programs are billed appropriately.”
“Georgians deserve to receive behavioral health services from qualified individuals, just as our programs were designed to provide. Through our Medicaid Fraud Division, we remain vigilant in our efforts to protect taxpayer dollars and to ensure they are used to serve the best interests of our vulnerable populations. Providers who choose to abuse or exploit our programs will be held accountable for their actions,” said Georgia Attorney General Chris Carr.
OGCC is a CORE Services Provider for the Georgia Department of Behavioral Health and Developmental Disabilities. CORE providers are supposed to offer services to individuals who are experiencing emotional and behavioral difficulties, mental health problems, or addiction. The government alleges that, between 2014 and 2016, OGCC falsified the identity and qualifications of the health care providers to receive reimbursement at a higher rate, inflated the amount of time spent with patients, submitted claims for patient visits that never occurred, misrepresented dates of service, and fabricated documents in response to government scrutiny.
The settlement resolves allegations in a lawsuit filed by Latashia Hawkins, a former OGCC employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Hawkins v. OGCC Behavioral Health Services, Inc., No. 1:15-cv-4380.
The U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.
The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorney General Sara Vann.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New Woodstock Man Sentenced to 15 Years for Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Ernest Shaw, Sr. of New Woodstock, New York, was sentenced yesterday to serve 15 years in federal prison in connection with his trial conviction for conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine, and 28 grams of cocaine base (crack), announced United States Attorney Carla Freedman and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
During the September 2021 jury trial, evidence was presented that proved Ernest Shaw, Sr. conspired with others from September 2017 to September 25, 2019, to distribute and possess with intent to distribute cocaine and cocaine base in the Syracuse area. As part of the verdict, jurors unanimously found that the defendant’s part in the conspiracy involved more than 5 kilograms of cocaine and 28 grams of cocaine base (crack). The trial evidence included the seizure of over 171 grams of powder cocaine and over 80 grams of crack cocaine from a stash house in Nedrow, New York used by Shaw to store drugs prior to distributing them to drug dealers and drug users in the Syracuse area.
Ernest Shaw was also sentenced yesterday to a 10-year term of supervised release following his release from federal prison and ordered to forfeit $36,335.00 in cash seized as drug proceeds by DEA during the execution of a search warrant at his home in New Woodstock, New York on September 25, 2019. Shaw also was ordered to pay a forfeiture money judgment in the amount of $105,000.00 for unrecovered proceeds he acquired during the conspiracy through the sale of cocaine and cocaine base (crack).
Ernest Shaw, Sr. was previously convicted in federal court in Syracuse in March 2007 of conspiracy to distribute and possess with intent to distribute cocaine. He pled guilty and was sentenced to serve 41 months in federal prison in that previous case.
This case was investigated by the United States Drug Enforcement Administration (DEA)-Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other Agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, Investigators from the Onondaga County District Attorney’s Office, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe and Assistant U.S. Attorney Richard Southwick.
National Security Agency Employee Indicted for Willful Transmission and Retention of National Defense InformationRead the Press Release
A Maryland man is charged with willful transmission and retention of National Defense Information (NDI) in an indictment unsealed today in the District of Maryland.
According to court documents, as an employee of the National Security Agency (NSA), Mark Robert Unkenholz, 60, of Hanover, held a Top Secret/SCI clearance and had lawful access to classified information relating to national defense that was closely held by the government (National Defense Information or NDI).
As detailed in the indictment, national security information is classified as Top Secret, Secret or Confidential. Only individuals with the appropriate security clearance could have authorized access to such classified national security information. All classified information can only be stored in an approved facility and container.
According to the 26-count indictment, on 13 occasions between Feb. 14, 2018 and June 1, 2020, Unkenholz, lawfully having possession of, access to, and control over NDI, which he had reason to believe could be used to the injury of the United States or to the advantage of any foreign nation, willfully transmitted that information to another person who was not entitled to receive it. The indictment alleges that the information Unkenholz transmitted was classified at the Secret and Top Secret/SCI levels and that Unkenholz transmitted the classified information using his personal email address to the other person’s private company email addresses. The person receiving the information held a Top Secret/SCI clearance from April 2016 until approximately June 2019, while employed at a company referred to in the indictment as Company 1. From July 2019 until approximately January 2021, the person worked for a company referred to in the indictment as Company 2, and was not authorized to access, or receive, classified information.
The indictment alleges that Unkenholz’s personal email address, and the company email addresses of the person receiving the information were not authorized storage locations for classified NDI. Unkenholz allegedly retained the classified NDI within his personal email address.
Unkenholz was arrested this morning and will make his initial court appearance this afternoon in Baltimore. If convicted, Unkenholz faces a maximum sentence of 10 years’ imprisonment for each of the 13 counts of willful transmission of NDI and a maximum of 10 years’ imprisonment for each of the 13 counts of willful retention of NDI. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI’s Baltimore Field Office made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Kathleen O. Gavin and P. Michael Cunningham for the District of Maryland and Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Controls Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Security Agency Employee Facing Federal Indictment for Willful Transmission and Retention of National Defense InformationRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Mark Robert Unkenholz, age 60, of Hanover, Maryland, for willful transmission and retention of National Defense Information (NDI). The indictment was returned on March 29, 2022 and unsealed today upon the arrest of the defendant.
Unkenholz is expected to have initial appearance at 3:00 p.m. today in U.S. District Court in Baltimore, before Chief U.S. Magistrate Judge Beth P. Gesner.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Matthew G. Olsen of the Justice Department’s Nationals Security Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
As an employee of the National Security Agency (NSA), Unkenholz held a TOP SECRET/SCI clearance and had lawful access to classified information relating to the national defense that was closely held by the government (“National Defense Information” or “NDI”).
As detailed in the indictment, national security information is classified as “TOP SECRET,” “SECRET,” or “CONFIDENTIAL.” Only individuals with the appropriate security clearance could have authorized access to such classified national security information. All classified information can only be stored in an approved facility and container.
According to the 26-count indictment, on thirteen occasions between February 14, 2018 and June 1, 2020, Unkenholz, lawfully having possession of, access to, and control over NDI, which he had reason to believe could be used to the injury of the United States or to the advantage of any foreign nation, willfully transmitted that information to another person who was not entitled to receive it. The indictment alleges that the information Unkenholz transmitted was classified at the SECRET and TOP SECRET/SCI levels and that Unkenholz transmitted the classified information using his personal email address to the other person’s private company email addresses. The person receiving the information held a TOP SECRET/SCI clearance from April 2016 until approximately June 2019, while employed at a company referred to in the indictment as “Company 1.” From July 2019 until approximately January 2021, the person worked for a company referred to in the indictment as “Company 2” and was not authorized to access or receive classified information
The indictment alleges that Unkenholz’s personal email address, and the company email addresses of the person receiving the information were not authorized storage locations for classified NDI. Unkenholz allegedly retained the classified NDI within his personal email address.
If convicted, Unkenholz faces a maximum sentence of 10 years in federal prison for each of the 13 counts of willful transmission of NDI and for each of the 13 counts of willful retention of NDI. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron and Assistant Attorney General Matthew G. Olsen commended the FBI for its work in the investigation. Mr. Barron and Mr. Olsen thanked Assistant U.S. Attorneys Kathleen O. Gavin and P. Michael Cunningham and Trial Attorney S. Derek Shugert of the of the National Security Division’s Counterintelligence and Export Controls Section, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Naples Felon Arrested and Charged with COVID Relief FraudRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the arrest and unsealing of a criminal complaint charging Daniel Joseph Tisone (34, Naples) with wire fraud, bank fraud, and illegal monetary transactions. If convicted, he faces a maximum penalty of 30 years in prison on each of the fraud charges and up to 10 years in federal prison for the illegal monetary transaction offense.
According to the complaint, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent Economic Injury Disaster Loan (EIDL), Main Street Lending Program (MSLP), and Paycheck Protection Program (PPP) loan applications to the Small Business Administration, as well as PPP and MSLP approved lenders. The loan applications contained numerous false representations, including the criminal history, average monthly payroll, number of employees, and gross revenues of the applicant, Tisone. In support of the fraudulent EIDL, PPP, and MSLP applications, Tisone submitted false and fictitious payroll and tax documents, as well as a fake commercial lease.
Tisone’s false and fraudulent representations caused the SBA, PPP and MSLP lenders to approve and fund one MSLP, three EIDL, and five PPP loans, totaling approximately $2,523,954.17. Tisone then unlawfully used the funds to purchase more than $1 million in stocks and investment securities, as well as the purchase of a residence in the Naples, Florida area.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The MSLP was designed to provide support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. The program was intended to help companies that were in sound financial condition prior to the onset of the pandemic maintain their operations and payroll until conditions normalized.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation, Special Inspector General for Pandemic Recovery (SIGPR), and IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.
NHA Director of Information Technology Admits Embezzling Funds to Purchase Thousands of Electronic DevicesRead the Press Release
NEWARK, N.J. – Newark Housing Authority (NHA)’s former director of information technology admitted using his position to embezzle NHA funds to purchase cellular telephones and other electronic devices, U.S. Attorney Philip R. Sellinger announced.
Venancio Diaz, 56, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court on March 30, 2022, to an information charging him with committing theft from an agency receiving federal funds.
According to documents filed in this case and statements made in court:
From December 2013 to Aug. 10, 2021, Diaz bought, on behalf of NHA and using NHA funds, 1,509 electronic devices, primarily cellular telephones and tablets, from a telecommunications company. Diaz then caused those devices to be activated on NHA’s account on the company’s network for a short period of time – often only days or weeks. After the brief period of activation ended, Diaz posed as the owner of the devices and sold them to two different online electronics resale marketplaces. Diaz directed all the proceeds of the sales – a total of $594,425 – to his own bank accounts and kept the money for his own personal use.
The count of theft from an agency receiving federal funds carries a maximum sentence of 10 years in prison and a maximum potential fine of $250,000 or twice the gross amount of pecuniary gain that any person derived from the offense, whichever is greater. Sentencing is scheduled for August 4, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the IRS-Criminal Investigations for its assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Defense counsel: Joel Silberman Esq., Jersey City
Monongalia County man admits to a firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shuron Howard, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Howard, 24, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Howard, a person prohibited from having a firearm, admitted to having a pistol in May 2020 in Monongalia County.
Howard 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Minnesota Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Marshall, Minnesota, man convicted of Failure to Register as a Sex Offender was sentenced on March 29, 2022, by U.S. District Judge Charles B. Kornmann.
Brody Lee Chase Hancock, age 29, was sentenced to 10 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hancock was indicted by a federal grand jury on July 7, 2021. He pled guilty on January 4, 2022.
The conviction stems from Hancock failing to register as a sex offender as required by federal law between December 1, 2020, and July 7, 2021. Hancock had previously been convicted of a sex offense in the state of Minnesota, which requires him to register for 15 years upon his release from prison.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Hancock was immediately turned over to the custody of the U.S. Marshals Service.
Maryland Internal Medicine Physician Agrees to Pay More Than $500,000 Dollars to Settle Federal False Claims Act Allegations of Billing for Services Not RenderedRead the Press Release
Baltimore, Maryland – Anuja Kurichh, M.D., an internal medicine physician who operates a medical practice known as PHC Healthcare, LLC in College Park, Maryland, has agreed to pay the United States $555,000 to resolve allegations that she violated the federal False Claims Act by submitting false claims to the United States for medical services that were not performed by her.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron, Special Agent in Charge Maureen Dixon of the Department of Health and Human Services – Office of Inspector General (HHS-OIG); and Special Agent in Charge Amy K. Parker of the Office of Personnel Management – Office of the Inspector General (OPM-OIG).
“It is imperative that Medicare and other federal health care programs are protected from fraud because those programs are funded through tax-payer dollars,” said United States Attorney Erek L. Barron. “The United States Attorney’s Office will hold accountable those providers who defraud federal health care programs by billing for services not rendered by them.”
“Medical providers participating in federal health care programs are obligated to appropriately and lawfully bill for services,” stated Maureen Dixon, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “False claims charged to the Medicare program divert funds necessary to support essential health services for patients most in need. HHS-OIG works diligently with our law enforcement partners to detect and deter illegal actions that pose threats to the integrity of Medicare.”
“Today’s settlement should serve as a warning to those who would attempt to defraud the Government,” said Special Agent in Charge Amy K. Parker, OPM OIG. “The OPM OIG is committed to protecting the integrity of the Federal Employees Health Benefits Program, and we will continue to investigate and prosecute false claims that waste taxpayer dollars and increase the cost of medical care.”
Dr. Kurichh is board certified in internal medicine, specializing in the internal organs and systems of the body. By virtue of her specialty, she may and does diagnose and treat a spectrum of health conditions. According to the settlement agreement, between August 1, 2013 and January 31, 2019, Dr. Kurichh billed both Medicare and the Federal Employees Health Benefits Program (“FEHBP”) for ultrasound studies of the: (1) area behind the abdominal cavity; (2) heart, including blood flow and valve function; (3) blood flow on both sides of the head and neck; (4) arteries and arterial grafts in both legs; and (5) for such things as the removal of ear wax, blood sample collection, and corresponding evaluation and medical management codes indicative of face-to-face patient encounters supposedly lasting for time intervals of ten to fifteen minutes, despite being outside of the United States on the billed dates of service as reflected by travel records. During the billed dates of service, Dr. Kurichh was the sole provider for PHC Healthcare, LLC and was responsible for identifying the Current Procedural Terminology Codes to be used for billing the services rendered. During that same time frame, Dr. Kurichh also billed Medicare and the FEHBP for ultrasound services, specifically the interpretation of ultrasounds purportedly performed by another physician who did not, in fact, perform those services.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Kurichh or PHC Healthcare, LLC, nor a concession by the United States that its claims are not well founded.
The case arose from an initiative launched by the United States Attorney’s Office for the District of Maryland which involves the use of specialized resources and personnel to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the affected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter is appropriate for enforcement under the False Claims Act.
United States Attorney Erek L. Barron commended the HHS-OIG and OPM OIG for their work in this investigation. Mr. Barron thanked Assistant U.S. Attorneys Tarra DeShields and Vince Vaccarella who handled this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Montana Sex Offender Charged with Interstate Child Sex CrimesRead the Press Release
United States Attorney Bob Murray announced today that TAYLON JEFFREY BAIN, 36, of Richey, Montana was charged with transporting a minor to engage in prohibited sexual conduct and commission of a felony offense by a registered sex offender. Bain appeared for an arraignment hearing on March 16, 2022, before United States Magistrate Judge Kelly H. Rankin and pleaded not guilty to the charges. A trial has been set for May 31, 2022, before United States District Court Judge Alan B. Johnson.
If convicted, Bain faces ten years to life imprisonment; five years to life of supervised release; up to a $250,000 fine, a $5,000 assessment according to the Justice of Victims of Trafficking Act and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation, Dawson County Sheriff’s Office in Montana and the Fremont County Sheriff’s Office in Wyoming. Assistant United States Attorney Kerry J. Jacobson is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-00009-ABJ
Louisville Woman Sentenced to over 21 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
LOUISVILLE, KY – A Louisville woman was sentenced on Tuesday, March 29, 2022, to 262 months in prison followed by a life term of supervised release for production and possession of child pornography. There is no parole in the federal system.
According to court documents, Monica Bradley, 62, produced and possessed child pornography images of five minor victims over the course of multiple years. Monica Bradley further transported one of the minor victims, beginning when she was only 11 years old, to the residence of her husband, Curtis Bradley, for the purpose of him engaging in sexual contact with the victim. In return, Curtis Bradley provided Monica Bradley with drugs and cash. Curtis Bradley was previously sentenced on March 4, 2022, to 50 years in prison followed by a life term of supervised release, for his commission of multiple offenses, including the production and possession of child pornography.
“We will continue to combat the sexual exploitation of children through aggressive federal prosecution,” stated United States Attorney Michael A. Bennett. “The lengthy sentence imposed, as well as the 50-year sentence previously ordered in the Curtis Bradley case, resulted from our strong working relationship with the Jefferson County Commonwealth’s Attorney’s Office and the excellent investigative work of HSI Nashville and LMPD.”
"The lengthy sentence is a gratifying outcome for our special agents and a testament to the severity and horrific nature of the crimes," said Special Agent in Charge Jerry C. Templet, Jr., Homeland Security Investigations Nashville. "We can only hope that this sentence serves as a part of the lengthy healing process for the victims, and we thank our law enforcement partners for a successful outcome."
The United States Department of Homeland Security, Homeland Security Investigations (HSI) and Louisville Metro Police Department (LMPD) investigated the case.
Assistant U.S. Attorneys Stephanie Zimdahl and Christopher Tieke prosecuted the case.
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.”
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Lodge Grass man sentenced to 14 years in prison for sexually abusing children on the Northern Cheyenne and Crow Indian reservationsRead the Press Release
BILLINGS — A Lodge Grass man who was convicted by a jury of sexually abusing two children in the 1990s on the Northern Cheyenne and the Crow Indian reservations was sentenced today to 14 years in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
A federal jury in October 2021 found Donald Ray Gardner, 58, guilty on two counts of aggravated sexual abuse of a child and two counts of abusive sexual contact.
U.S. District Judge Susan P. Watters presided.
In court documents and in evidence presented at trial, the government alleged that Gardner sexually abused two young girls over multiple occasions. Gardner engaged in a sexual act and in sexual contact with a victim, identified as Jane Doe 1, in 1994 in Lame Deer, on the Northern Cheyenne Reservation. The government further alleged Gardner engaged in a sexual act and in sexual contact with another victim, identified as Jane Doe 2, in the Crow Agency area on the Crow Reservation in 1996 and in 1998. Both victims were under the age of 12 at the time.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case, which was investigated by the FBI.
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Local man gets 40 years for sexually exploiting minors through SkypeRead the Press Release
HOUSTON – A 42-year-old Houston man has been ordered to prison for committing sexual exploitation and coercion and enticement of minors, announced U.S. Attorney Jennifer B. Lowery.
Thomas Douglas Butler pleaded guilty April 14, 2021.
Today, U.S. District Judge Alfred Bennet sentenced Butler to 480 months in federal prison. At the hearing, the court also heard additional information including a statement detailing the severe emotional distress that now exists among the victim and her relatives from the trauma Butler inflicted. “The defendant in this case took advantage of my daughter’s weaknesses and caused her lifelong damage,” it read. The mother further noted her daughter returned home a “very different child.”
In handing down the prison terms, the court noted Butler had been “on a path to this moment based on his criminal history.” Butler will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Butler met the 14-year-old female victim through a social media website known as FaceFlow. During those communications, posed as a 23-year-old male, befriended her and convinced her to run away with him. Butler subsequently traveled to pick her up and broght her to a Houston hotel where he had been residing for approximately one year.
The victim said Butler provided alcohol to her immediately and on numerous occasions while she was with him and gave her very little food. Law enforcement was quickly able to rescue her.
A search warrant executed at the hotel room revealed several documents and electronic devices which led to the discovery of a second out-of-state victim. Butler had also groomed that minor female to engage in sexually-charged conversations and sexually-illicit behavior online such as exposing her genitals in a lewd and lascivious manner during Skype video calls. Butler recorded the Skype calls with the victim. If she did not comply, Butler threatened to notify the victim’s parents or others of their relationship and distribute the videos he created from the Skype calls.
Butler has been in custody since being determined a danger to the community and a flight risk, where he will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Lebanon Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Lebanon, Missouri, man was sentenced in federal court today after a law enforcement officer noticed child pornography on his cell phone during a traffic stop.
Justin Barton, 34, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Barton to spend the rest of his life on supervised release following incarceration and ordered Barton to pay $3,000 in restitution to each of his victims.
On Nov. 30, 2021, Barton pleaded guilty to receiving and distributing child pornography from Jan. 1, 2018, to Jan. 15, 2020. Barton is a registered sex offender after his 2017 court-martial for possessing and distributing child pornography while serving in the U.S. Army in the Republic of Korea.
A Missouri State Highway Patrol sergeant stopped Barton on Jan. 15, 2020, for having an inoperable license plate lamp. Barton provided the sergeant with proof of insurance by accessing his insurance card through his cell phone. As the sergeant handed the phone back to Barton, an image of a naked child appeared on the screen. Barton agreed to allow the sergeant to take the phone to patrol headquarters for further examination. Investigators then obtained a search warrant and found images and videos of child pornography on the phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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."
Lander Man Pleads Guilty to Seven Counts of Wire Fraud Relating to Cares Act Stimulus FundingRead the Press Release
United States Attorney Bob Murray announced today that PAUL MCCOWN, 33, of Lander, Wyoming pleaded guilty on March 29, 2022, before Chief United States District Court Judge Scott W. Skavdahl, to four counts of wire fraud in relation to pandemic relief programs administered by the Wyoming Business Council and Coronavirus Aid, Relief, and Economic Security (CARES) Act funds and three counts of wire fraud relating to money fraudulently obtained from Ria R Squared, Inc., the proceeds of which were used in part to repay the Wyoming Business Council. Sentencing has been set for June 17, 2022.
McCown faces up to 20 years’ imprisonment, up to a $250,000 fine, 3 years of supervised release and a $100 special assessment for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Christyne M. Martens is prosecuting the case.
Case No. 0:22-cr-00023-SWS
Kenyan national arraigned on wire fraud chargesRead the Press Release
ALBUQUERQUE, N.M. – Oscar Kipikirui Ngeno, 41, was arraigned in federal court on March 30 on an indictment charging him with ten counts of wire fraud and one count of conspiracy. Ngeno will remain on conditions of release pending trial.
A federal grand jury indicted Ngeno on Feb. 24. According to the indictment and other court records, from October through December of 2019 Ngeno, a citizen of Kenya who was present in New York on an immigrant visa, allegedly engaged in a scheme to deceive and defraud the government of Bernalillo County, New Mexico.
As alleged in the indictment, Bernalillo County received an email intended to appear to come from a legitimate vendor, CDW Government Inc., which had provided products and services to the county for which payment was due. The spoofed email included a completed automated clearinghouse (ACH) form used by Bernalillo County to establish or change automated payments electronically to vendor bank accounts. The email also included an image of a voided check showing the same routing and account numbers listed on the ACH form. The email provided a telephone number that was represented as a contact number for CDW, but actually belonged to Ngeno.
The routing and account number provided caused the county to send payments to an account owned and controlled by Ngeno. Between October and December of 2019, the county sent payments totaling $447,372.89 to Ngeno’s account. Ngeno then allegedly distributed a portion of the funds to his co-conspirators, including by issuing checks totaling $98,930.
“As our technologies and banking systems evolve, so do the strategies of thieves and fraudsters,” said Fred J. Federici, United States Attorney for the District of New Mexico. “For this reason, we continue to encourage heightened vigilance with respect to unsolicited email requests. The responsibility for these crimes rests entirely with the perpetrators. However, we can each do our part by taking every precaution, such as scrutinizing email addresses and verifying contact information. We will do our part by prosecuting those who attempt to deceive our citizens and institutions.”
“When governments are victimized by fraud, especially one as large as what Bernalillo County experienced, taxpayers and residents are the ones who can get cheated,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “The FBI will use all its resources to go after those who would steal funds that could provide critical services like public safety and health care. We also want to reiterate the importance of government agencies and businesses learning as much as they can about internet fraud and how to protect themselves.”
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Ngeno faces up to 20 years in prison for each count.
The Albuquerque Field Office of the FBI investigated this case with assistance from the Buffalo Field Office and the Rochester Resident Agency. Assistant United States Attorney Taylor Hartstein is prosecuting the case.
Justice Department Reinforces Federal Nondiscrimination Obligations in Letter to State Officials Regarding Transgender YouthRead the Press Release
The Justice Department announced today that it issued a letter to all state attorneys general reminding them of federal constitutional and statutory provisions that protect transgender youth against discrimination, including when those youth seek gender-affirming care.
“The Department of Justice is committed to ensuring that all children are able to live free from discrimination, abuse and harassment,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Today’s letter reaffirms state and local officials’ obligation to ensure that their laws and policies do not undermine or harm the health and safety of children, regardless of a child’s gender identity.”
The letter advises states that laws and policies that prevent individuals from receiving gender-affirming medical care may infringe on federal constitutional protections under the Equal Protection Clause and Due Process Clause of the Fourteenth Amendment. The letter also discusses federal statutes that impose nondiscrimination obligations, including Section 1557 of the Affordable Care Act, Title IX of the Education Amendments of 1972, the Omnibus Crime Control and Safe Streets Act of 1968, Section 504 of the Rehabilitation Act of 1973, and Title II of the Americans with Disabilities Act.
The letter was issued on the International Transgender Day of Visibility in recognition of the contributions and accomplishments of transgender and gender non-conforming people, as well as their continued struggle to live free from violence and discrimination.
A copy of today’s letter can be found here. Additional information about the Civil Rights Division’s work to uphold and protect the civil and constitutional rights of LGBTQI+ individuals is available online at https://www.justice.gov/crt/lgbtqi-working-group. Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at https://civilrights.justice.gov.
Jury Finds Maryland Man Guilty of First-Degree Murder in 2014 Killing of Woman in Southeast WashingtonRead the Press Release
WASHINGTON – Mark Bowser, 42, of Capitol Heights, Maryland, has been found guilty by a jury of first-degree murder while armed and other charges in a stabbing that resulted in 47 sharp force injuries and that took place inside the victim’s home in Southeast Washington. announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Bowser also was found guilty of assault with a dangerous weapon of a second victim, a related weapons offense for the knife, and two counts of obstructing justice. The verdict was returned on March 30, 2022, following a trial in the Superior Court of the District of Columbia. The Honorable Milton C. Lee, Jr. scheduled sentencing for June 10, 2022. Bowser faces a minimum sentence of 30 years on the murder conviction alone.
According to the government’s evidence, on Sept. 20, 2014, at approximately 1:30 a.m. Bowser entered the home and bedroom of the homicide victim, Tracy Womack, as she was laying in her bed to sleep at her apartment in the 4600 block of Benning Road NE. Bowser and Ms. Womack had known each other for months and gathered together as people often did in this residential apartment area. After enjoying a normal weekend evening with neighbors and friends, Ms. Womack went into her bedroom, fully clothed, to go to sleep.
While two friends lingered in the apartment living room, Bowser walked into the unlocked apartment, into Ms. Womack’s bedroom, and shut the bedroom door. One of the friends, who could not get the bedroom door open, ran outside to look for help. When Bowser emerged from Ms. Womack’s apartment, Ms. Womack had suffered 47 stabbing and cutting wounds to her face, neck, torso, arms, and hands. Ms. Womack was also found with her pants and underwear pulled down to her thighs. Before fleeing the scene, Bowser lunged with the knife in hand towards a second victim who had come back to Ms. Womack’s home. Though rushed to a hospital, Ms. Womack, 39, was soon pronounced dead.
Bowser was arrested the next day and has been in custody since.
While the case was pending trial, Bowser attempted to mail a letter, instructing someone to locate two witnesses he claimed was lying in his case. Bowser listed them by name: the witness who ran to get help and the second victim Bowser threatened with the knife. In the letter, Bowser included a diagram of exactly where one of these witnesses lived and instructions on how to use the first witness to find the second witness. The mailroom at the District of Columbia Department of Corrections intercepted this letter after noting a discrepancy on the envelope, and this message to tamper with these witnesses was never delivered.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra Forte, Intelligence Analyst Zachary McMenamin, Victim/Witness Advocate Christina Bloodworth, former Victim/Witness Advocate Marcia Rinker, Supervisory Victim/Witness Services Coordinator Katina Adams-Washington, and Victim/Witness Services Coordinator La June Thames.
Finally, they commended the work of former Assistant U.S. Attorney Michelle Bradford, who indicted the case, and Assistant U.S. Attorneys Jin Park and Dennis Clark, who prosecuted the case.
Jury Finds Illinois Man Guilty of Operating $20 Million Retail Crime SchemeRead the Press Release
An Illinois man was convicted at trial of running a multi-million dollar retail crime ring, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
After four days of trial, a federal jury found Artur Gilowski, 48, of Barrington, IL, guilty of conspiracy to commit interstate transportation of stolen property and conspiracy to commit mail fraud. The defendant was ordered detained immediately after the verdict was read on Thursday.
According to evidence presented at trial, Mr. Gilowski’s coconspirators stole tens of thousands of products – valued at over $20 million – from brick-and-mortar retail stores across the United States, then shipped them to Mr. Gilowski, who sold the stolen goods on various e-commerce websites, generating more than $11 million in profits.
The thieves traveled across the country in vehicles registered under false names and used “booster skirts” (garments with concealment pouches for stolen goods) and electronic transmitters designed to disrupt retailers’ anti-theft and loss-prevention measures. Using aliases, they rented storage lockers where they kept the stolen items until they could be shipped to interstate and foreign customers via the U.S. Postal Service, UPS, and FedEx.
Mr. Gilowski created a network of numerous online seller profiles, multiple bank accounts, and various companies registered in other people’s names to conduct the unlawful online sale scheme and funnel the proceeds of his illicit operation to himself.
The evidence also showed that Mr. Gilowski received over a million dollars in cash from his crime ring – including $97,000 that was found in the center console of Mr. Gilowski’s truck – which led one of Mr. Gilowski’s coconspirators to testify at trial that Mr. Gilowski “treated money like trash.”
“Mr. Gilowski and his coconspirators swiped thousands of products from retail shelves, then resold stolen goods online,” said U.S. Attorney Chad Meacham. “We are proud to hold these defendants accountable for their crimes, and are grateful to the jury for their careful consideration of our case.”
“Organized retail crime leads to consumers having to pay higher prices for goods, fewer job openings, and a decrease in consumer spending on legitimate goods that small-business owners and other retailers depend on for survival,” said acting Special Agent in Charge Christopher Miller, HSI Dallas. “Working alongside the U. S. Attorney’s Office, U.S. Postal Inspection Service and Arlington Heights (Illinois) Police Department, we were able to secure today’s conviction, and take another step in our ongoing fight against organized retail crime so consumers and retailers don’t have to bear the brunt of those impacts.”
Five of Mr. Gilowski’s coconspirators pleaded guilty prior to trial.
Mr. Gilowski now faces up to 25 years in federal prison. He is set for sentencing on August 2.
The Arlington Heights Police Department in Illinois conducted the investigation with assistance from Homeland Security Investigations’ Dallas Field Office and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Fabio Leonardi and Camille Sparks prosecuted the case. Chief U.S. District Judge Barbara M.G. Lynn presided over the trial.
Jefferson County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Shaquan Osullivan Kelly, of Ranson, West Virginia, was sentenced today to 21 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Kelly, 25, pleaded guilty in October 2021 to one count of “Distribution of Cocaine Base.” Kelly admitted to selling cocaine base, also known as “crack,” in August 2018 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. District Judge Gina M. Groh presided.
Jackson Man Pleads Guilty to Brandishing a Firearm During a Crime of ViolenceRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to brandishing a firearm during a crime of violence, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Waddah Farah, 42, of Jackson, was arrested and indicted for brandishing a firearm during the robbery of a Dollar General store in Jackson on October 1, 2018.
Farah is scheduled to be sentenced on July 7, 2022, and faces a penalty of not less than seven years to life in prison. A federal district judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation and Jackson Police Department investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Hurricane Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
HUNTINGTON, W.Va. – A Hurricane man was sentenced today to more than three years in federal prison for possessing child pornography.
According to court documents and statements made in court, Shea Owen Marsh, 33, was sentenced to three years and five months in federal prison, to be followed by 15 years of supervised release. Marsh will also ordered to pay restitution to victims at a later date.
Marsh pleaded guilty in April 2021 to downloading videos and images of child pornography onto his cell phone several times while at his residence in Hurricane.
U.S. Attorney Will Thompson made today’s announcement. The Putnam County Sheriff’s Department and the U.S. Department of Homeland Security - Homeland Security Investigations (HSI) conducted the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant U.S. Attorney Kristin F. Scott prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:20-cr-00126 and 3:21-cr-00043.
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Henryetta Resident Sentenced to Life Imprisonment for Murdering FatherRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Diamond Levi Britt, age 27, of Henryetta, Oklahoma was sentenced to life imprisonment for being found guilty by jury trial of First-Degree Murder in Indian Country. Britt’s federal jury trial began with testimony on Tuesday, July 13, 2021, and concluded on Thursday, July 15, 2021, with the guilty verdict.
During Britt’s jury trial, the United States presented evidence that on September 16, 2019, the defendant attacked his father, Gary Britt, with a samurai sword. The victim suffered significant injuries including a partially severed arm, multiple head wounds, and a transected quadriceps tendon. The victim died nine days after the attack due to complications from his injuries.
The evidence at trial further demonstrated that Britt knowingly and deliberately killed his father, with premeditation. On at least two occasions prior to the attack the defendant informed family members he intended to kill his father. After the vicious attack, Britt left the crime scene and was observed by Henryetta police officers walking along a roadway carrying the sword. Britt was taken into custody and made numerous statements that night indicating that he wanted to kill his father and that he regularly thought about stabbing his father. After hearing argument from the parties during the sentencing hearing, United States District Court Judge John F. Heil, III sentenced Britt to life in prison.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation, and within the Eastern District of Oklahoma.
The case was the result of an investigation by the Okmulgee County Sheriff’s Office, the Henryetta Police Department, and the Federal Bureau of Investigation.
“A life sentence is fit punishment,” said Christopher J. Wilson, United States Attorney. “The defendant viciously murdered his father with a samurai sword. His acts were almost unthinkable, and my heart goes out to the victim’s family. Prosecuting violent crime in Indian Country like this continues to be of paramount importance to the United States Attorney’s Office for the Eastern District of Oklahoma.”
No excuse can justify the premeditated act of savagery committed by this man, who will now spend the rest of his life behind bars” said Ed Gray, Special Agent in Charge of the FBI Oklahoma City Division. “The FBI stands strongly with our tribal partners in our joint commitment to bring to justice those who engage in such brutality. Violent crimes, such as this horrendous act, will never go unchallenged.”
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing. Special Assistant United States Attorneys Kyle J. Essley and Robert Reeves represented the United States. Britt was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Hardy County man guilty of firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gregory Stump, of Moorefield, West Virginia, was found guilty today of a firearms charge, United States Attorney William Ihlenfeld announced.
After a two-day trial, Stump, 52, was found guilty of one count of “Possession of Firearm with Obliterated Serial Number.” Stump had a .45 caliber pistol with an obliterated serial number in April 2020 in Monongalia County.
Stumps faces up to 10 years of incarceration and a fine of up to $10,000 fine. 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 Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Morgantown Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Fresno Man Convicted of Being a Felon in Possession of a Firearm Faces Additional Escape ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment today against Joel Jose Rueda, 29, of Fresno, charging him with escaping from federal custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rueda was convicted in federal court on April 2, 2021 of being a felon in possession of a firearm. In December 2021, he was transferred from the federal penitentiary in Mendota to the Turning Point Residential Reentry Center, a halfway house in Fresno, to complete the remainder of his prison sentence. On Jan. 18, 2022, he escaped from the halfway house. He was later arrested by law enforcement officers during a traffic stop on March 11, 2022, when he attempted to flee. He later admitted to resisting arrest charges in Fresno County Superior Court and was sentenced to 7 days, with credit for time served. He has been ordered detained on the escape charge and is next scheduled to appear in federal court for arraignment on the indictment on April 4, 2022.
This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorneys Justin Gilio and Karen Escobar are prosecuting the case.
If convicted, Rueda faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Drum Contractors Plead Guilty to Wire Fraud Conspiracy, Pay More Than $750,000 to Resolve False Claims Act LiabilityRead the Press Release
SYRACUSE, NEW YORK – Sean O’Sullivan, age 59, of Sackets Harbor, New York, and David Rose, age 58, of Newport News, Virginia, have pled guilty to conspiracy to commit wire fraud for their roles in a fraudulent scheme to obtain government construction contracts that were set aside for businesses owned and operated by disabled veterans. O’Sullivan, Rose, and their businesses also agreed to pay a total of $758,526.68 to the United States to resolve their civil liability for the submission of false claims for payment to the federal government.
The announcement was made by United States Attorney Carla B. Freedman; Patrick J. Hegarty, Special Agent in Charge, Department of Defense Office of Inspector General Defense Criminal Investigative Service; Larry S. Moreland, Special Agent in Charge, U.S. Army Criminal Investigation Division, Mid-Atlantic Fraud Field Office; Joseph Dattoria, Special Agent in Charge of the General Services Administration, Office of the Inspector General (GSA-OIG); Amaleka McCall-Brathwaite, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General, Eastern Region (SBA-OIG); and Joseph Harris, Special Agent in Charge, Department of Transportation Office of Inspector General, Northeastern Region (DOT-OIG).
Federal government agencies offer “set aside” construction contracts to Service-Disabled Veteran-Owned Small Businesses (“SDVOSBs”), which must meet certain criteria, including that a military veteran with a disability rating incurred as a result of military service must own the majority of the business and personally manage and controls its daily business operations.
Rose and O’Sullivan incorporated, and co-owned, Sierra Delta Contracting, LLC, a construction company. Although Rose is a service-disabled military veteran, O’Sullivan is not. O’Sullivan certified to federal agencies that Sierra Delta was a SDVOSB, falsely representing that Rose personally managed and controlled Sierra Delta’s day-to-day business operations. That certification was false because O’Sullivan, not Rose, fulfilled those roles. Rose lived in Virginia, where he had a full-time job, unrelated to Sierra Delta, and O’Sullivan ran the business by himself in Jefferson County, New York, with little input from Rose.
Sierra Delta bid on and received multiple construction contracts from the Army at Fort Drum, New York, and one construction contract from the U.S. Department of Transportation. All of the contracts were 100% set aside for SDVOSBs. These contracts were fraudulently obtained because Sierra Delta was not a SDVOSB.
O’Sullivan arranged for Sierra Delta to hire SOS Inc. – O’Sullivan’s own construction company – as the primary subcontractor on the set-aside contracts, enabling O’Sullivan to retain the majority of the profits generated by the contracts. O’Sullivan admitted that he received $345,271.34 in profits from the scheme. Rose admitted that he received $33,992 from his participation in the scheme.
Government agencies challenged Sierra Delta’s SDVOSB status and questioned whether Rose managed the company on a day-to-day basis. In response, Rose falsely claimed that he “control[led] the long term and day to day operations of Sierra Delta Contracting LLC,” that he maintained Sierra Delta’s “main office” in Virginia, that he worked on Sierra Delta business 25 hours a week and that O’Sullivan dedicated substantially less time to Sierra Delta. Rose knew these statements were false.
O’Sullivan, Sierra Delta Contracting LLC, and SOS Inc. will pay $690,542.68, and Rose will pay $67,984, to the federal government as part of the resolution of the criminal and civil allegations.
O’Sullivan is scheduled to be sentenced on May 11, 2022, and Rose is scheduled to be sentenced on July 20, 2022. The charges filed against O’Sullivan and Rose carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
In a related matter, O’Sullivan also pled guilty to conspiring to commit an offense against the United States by offering and giving gratuities to Fort Drum Contracting Officer Cindy McAleese. In pleading guilty, O’Sullivan agreed that he promised and provided things of value to McAleese, including sports tickets, meals, sexual encounters, and time and attention, for and because of official action taken by McAleese on O’Sullivan’s behalf, such as providing O’Sullivan’s company with government contracts and approving payment on those contracts. O’Sullivan also admitted that he and McAleese took steps to keep their relationship a secret from other officials at Fort Drum. McAleese has been indicted for her alleged role in the conspiracy, and her trial is scheduled to take place on July 11, 2022. The charges in the indictment against McAleese are merely accusations, and she is presumed innocent unless and until proven guilty.
The investigation and resolution were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Department of Defense Office of Inspector General Defense Criminal Investigative Service; U.S. Army Criminal Investigation Division; General Services Administration, Office of the Inspector General; U.S. Small Business Administration, Office of Inspector General; and Department of Transportation Office of Inspector General, Northeast Region. The criminal cases are being prosecuted by Assistant United States Attorney Michael Perry. The civil case was handled by Assistant United States Attorney Christopher R. Moran.
Former VA Pharmacist Sentenced for Stealing Painkillers Meant for VeteransRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 2 years probation on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Matthew Camera, 51.
According to information presented to the court, January 2017 to June 2020, while Camera was employed as the Pharmacy Chief at the Veterans Affairs Medical Center in Erie, he unlawfully obtained multiple dosage units of Hydrocodone and Oxycodone from pill bottles awaiting delivery to Veterans Affairs patients.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Department of Veterans Affairs, Office of Inspector General for the investigation leading to the successful prosecution of Camera.
Former Puerto Rico Legislator and Two Capitol Employees Plead Guilty to Bribery and Kickback SchemeRead the Press Release
SAN JUAN, Puerto Rico – A former Puerto Rico legislator and two employees who worked in his office pleaded guilty this week to engaging in a bribery and kickback scheme.
Nelson Del Valle Colón, 56, of Dorado, Puerto Rico, pleaded guilty today before U.S. District Judge Silvia Carreño-Coll to one count of federal program bribery. Mildred Estrada-Rojas, 55, of Bayamón, Puerto Rico, and her daughter, Nickolle Santos-Estrada, 32, also of Bayamón, Puerto Rico, pleaded guilty yesterday before Judge Carreño-Coll, each to one count of federal program bribery.
“We will continue to prosecute public officials whose conduct undermines the public’s trust in the government,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive. Now the defendants will be held accountable for violating one of the basic tenets of public trust, that is, serving their constituents with integrity and honesty.”
“Public corruption investigations require hard work and dedication. They take time to complete, because they are sensitive and complex in nature,” said Joseph González, Special Agent in Charge of The FBI San Juan Field Office. “Today’s result is another example of how our steadfast commitment to doing the right thing, the right way pays dividends in justice to the people of Puerto Rico. Special thanks to the US Attorney’s Office for the District of Puerto Rico, for their continued support to the FBI mission.”
According to court documents, Del Valle Colón was elected to be a member of the Puerto Rico House of Representatives in 2016. He thereafter hired Estrada and Santos to work in his legislative office. In exchange for their employment and their salaries, however, Estrada and Santos paid biweekly kickbacks to Del Valle Colón of between approximately $500 and $1,300 from early 2017 until July 2020.
According to admissions made in connection with their pleas, Del Valle Colón, Estrada, and Santos admitted that they paid and he received the biweekly kickbacks in a variety of ways. Estrada and Santos generally paid their biweekly cash kickbacks in an envelope that they provided to Del Valle Colón in an office in the Capitol Building in Old San Juan. Estrada sometimes paid her kickback to Del Valle Colón over ATH Móvil, a mobile phone cash transfer application. Another individual who worked for Del Valle Colón in his legislative office also agreed to pay Del Valle Colón biweekly cash kickbacks during this individual’s employment with Del Valle Colón.
Del Valle Colón is scheduled to be sentenced on June 30, and Estrada, and Santos on June 29, and each faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case.
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Former Los Lunas High School coach arraigned on child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. – Johnathon Bindues, 30, of Los Lunas, New Mexico, was arraigned in federal court on March 30 on a nine-count indictment charging him with one count of coercion and enticement of a minor and eight counts of production of child pornography.
A federal grand jury indicted Bindues on March 23. According to court records, at the time of the alleged offenses, Bindues was the coach for the girls’ basketball and track teams at Los Lunas High School. The victim, identified as Jane Doe, was a freshman and a member of the teams Bindues coached.
Between September 2020 and June 2021, the defendant allegedly exchanged over 17,000 text messages with the victim. Bindues allegedly requested nude images of Jane Doe and encouraged her to delete the text messages immediately. After discovering sexually explicit messages on her daughter’s phone, Jane Doe’s mother reported the relationship to the New Mexico State Police.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Bindues faces a minimum of 10 years and up to life in prison for coercion and enticement and a minimum of 15 years and up to 30 years in prison for production of child pornography, and Bindues would be subject to registration as a sex offender.
The FBI and New Mexico State Police investigated this case. Assistant United States Attorneys Jaymie L. Roybal and Alexander M. Uballez are prosecuting the case.
Former Coal Company Vice President Arrested and Charged with Foreign Bribery, Money Laundering, and Wire FraudRead the Press Release
WASHINGTON – A former coal company executive was arrested today on charges of violating the Foreign Corrupt Practices Act (FCPA), laundering funds, and receiving kickbacks as part of an alleged scheme to pay bribes to government officials in Egypt in connection with contracts with an Egyptian state-owned and state-controlled company, Al Nasr Company for Coke and Chemicals (Al Nasr).
The seven-count indictment alleges that Charles Hunter Hobson, 46, of Knoxville, Tennessee, engaged in the bribery and money laundering scheme between late 2016 and early 2020.
During part of that time, Hobson was the Vice President of a coal company in Pennsylvania (referenced as Company 1 in the indictment) and responsible for the company’s business relationship with Al Nasr. Hobson and others, including Company 1’s sales intermediary, allegedly paid bribes to Al Nasr officials in Egypt to obtain approximately $143 million in coal contracts for Company 1. To effectuate the bribery scheme, the indictment alleges, Hobson and others caused Company 1 to: (1) pay commissions to the sales intermediary, who passed on bribes to Al Nasr officials in exchange for the coal contracts, and (2) transfer the corrupt commission payments from a bank account in the United States to a bank account in the United Arab Emirates. The indictment also alleges that Hobson conspired to secretly receive a portion of the commissions paid to the sales intermediary as kickbacks.
Hobson is charged with one count of conspiracy to violate the FCPA, two counts of violating the FCPA, one count of conspiracy to launder money, two counts of money laundering, and one count of conspiracy to commit wire fraud. He faces up to five years in prison for each of the bribery conspiracy and bribery charges, and up to 20 years in prison for each of the money laundering conspiracy, money laundering, and wire fraud charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendant will make his initial court appearance this afternoon in the Eastern District of Tennessee.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement. The Justice Department’s Office of International Affairs provided assistance.
The FBI’s International Corruption Unit in Washington, D.C., and the Washington Field Office are investigating the case.
Assistant U.S. Attorney Eric G. Olshan of the Western District of Pennylvania and Trial Attorneys Leila E. Babaeva and Natalie R. Kanerva of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Coal Company Vice President Arrested and Charged with Foreign Bribery, Money Laundering, and Wire FraudRead the Press Release
A former coal company executive was arrested today on charges of violating the Foreign Corrupt Practices Act (FCPA), laundering funds, and receiving kickbacks as part of an alleged scheme to pay bribes to government officials in Egypt in connection with contracts with an Egyptian state-owned and state-controlled company, Al Nasr Company for Coke and Chemicals (Al Nasr).
The seven-count indictment alleges that Charles Hunter Hobson, 46, of Knoxville, Tennessee, engaged in the bribery and money laundering scheme between late 2016 and early 2020. During part of that time, Hobson was the Vice President of a coal company in Pennsylvania (referenced as Company 1 in the indictment) and responsible for the company’s business relationship with Al Nasr. Hobson and others, including Company 1’s sales intermediary, allegedly paid bribes to Al Nasr officials in Egypt to obtain approximately $143 million in coal contracts for Company 1. To effectuate the bribery scheme, the indictment alleges, Hobson and others caused Company 1 to: (1) pay commissions to the sales intermediary, who passed on bribes to Al Nasr officials in exchange for the coal contracts, and (2) transfer the corrupt commission payments from a bank account in the United States to a bank account in the United Arab Emirates. The indictment also alleges that Hobson conspired to secretly receive a portion of the commissions paid to the sales intermediary as kickbacks.
Hobson is charged with one count of conspiracy to violate the FCPA, two counts of violating the FCPA, one count of conspiracy to launder money, two counts of money laundering, and one count of conspiracy to commit wire fraud. He faces up to five years in prison for each of the bribery conspiracy and bribery charges, and up to 20 years in prison for each of the money laundering conspiracy, money laundering, and wire fraud charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendant will make his initial court appearance this afternoon in the Eastern District of Tennessee.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement. The Justice Department’s Office of International Affairs provided assistance.
The FBI’s International Corruption Unit in Washington, D.C., and the Washington Field Office are investigating the case.
Trial Attorneys Leila E. Babaeva and Natalie R. Kanerva of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric G. Olshan of the Western District of Pennsylvania are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Catholic Priest Sentenced for Making False Statements in Connection with Church Sex Abuse InvestigationRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Robert Brennan, 83, of Perryville, MD, was sentenced by United States District Court Judge Anita B. Brody to five years of probation, the first two years of which will be served on home confinement with location monitoring, for lying to investigators about not knowing a former parishioner and victim of sexual abuse.
In November 2021, the defendant pleaded guilty to making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. The charges stem from an interview conducted in April 2019, during which Brennan was questioned by the FBI and made a number of false statements.
Brennan had served in the Archdiocese of Philadelphia from 1993 to 2004 as a priest at Resurrection of Our Lord parish in the Rhawnhurst section of Northeast Philadelphia. In September 2013, the Philadelphia District Attorney’s Office filed criminal charges against him, alleging that he had sexually abused a minor, Sean McIlmail, during Brennan’s time at Resurrection. Soon thereafter, in October 2013, Sean McIlmail died of a drug overdose and the criminal charges against Brennan were dismissed.
In November 2013, the McIlmail family filed a civil lawsuit against the Archdiocese of Philadelphia and Brennan. The lawsuit was settled for an undisclosed amount in May 2018. During the April 2019 interview with the FBI, Brennan made several false statements, including that prior to the filing of the 2013 criminal case and civil lawsuit against him, he did not know Sean McIlmail, his father, mother or brother.
“Holding people accountable for their actions, within the confines of the criminal justice process, is a priority for the U.S. Attorney’s Office,” said U.S. Attorney Williams. “With this sentence handed down today, we hope it brings a sense of justice and closure to this case.”
“Lying to the FBI is more than a mistake and beyond a bad choice,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Doing so poses a direct threat to investigations, prosecutions — our entire system of justice. Such ramifications make it a crime for which there have to be some consequences, with violators held appropriately accountable.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania Attorney General’s Office, the Philadelphia District Attorney’s Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Former Boston Philharmonic Orchestra Artistic Advisor Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A former employee of the Boston Philharmonic Orchestra and the Boston Philharmonic Youth Orchestra pleaded guilty yesterday in federal court in Boston to possession of child pornography.
David St. George, 75, of Arlington, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 16, 2022. St. George was arrested and charged in September 2018.
In May 2018, investigators received information regarding a shared secure online storage account containing child pornography. The IP address for this account ultimately was linked to St. George’s internet. The storage account contained over 5,000 files, including sexually explicit images and videos of children, many of which depicted child sexual abuse – including the depiction of an adult raping an infant of approximately one year of age.
In September 2018, a search of St. George’s residence revealed thousands of files of child pornography, including the depiction of sexual assaults of children between six-and-eight years old. Emails revealed that St. George continued to re-post child sexual abuse materials despite being repeatedly banned by an online service provider. During the search, St. George admitted that he had been receiving and downloading child pornography from the Dark Web while taking steps to conceal his identity, as well as receiving and downloading child pornography via email for upload to his shared secure storage account.
St. George faces a sentence of up to 20 years in prison, 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 upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Valuable assistance was provided by the Arlington Police Department.
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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Bank Employee Sentenced on Charges related to Stealing Social Security Administration Benefits from Account of Deceased CustomerRead the Press Release
BAY CITY - A former JPMorgan Chase Bank branch manager was sentenced today to 34 months in federal prison on charges of theft of government funds and identity theft, stemming from his theft of Social Security Administration (SSA) benefits from the account of a deceased bank customer, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Gail S. Ennis, Special Agent in Charge, Chicago Region, Social Security Administration, Office of the Inspector General.
Jeffrey Piecka, 46, of Midland was sentenced this afternoon by United Stated District Judge Thomas L. Ludington in the United States District Court in Bay City.
According to court records, Piecka devised a scheme to steal $169,967.63 in government benefits from the bank account of a deceased individual. Piecka, a former branch manager with JPMorgan Chase Bank, identified the individual’s account in the course of his employment, noting that it had little activity. Suspecting that the account owner had passed away, Piecka manipulated the bank account to create online account access for himself, and he proceeded to withdraw significant sums of money from the account by various means, including by making online payments to credit card companies, a utility company, his apartment complex, and his car lender.
“The defendant was in a position to safeguard bank customers’ accounts, and he abused that trust. It is also important to remember that stealing from the government is stealing from the taxpayers that fund that government. The sentence today reflects the seriousness of this offense,” stated U.S. Attorney Dawn N. Ison.
“Mr. Piecka was in a position of trust; he abused it for his personal gain and stole over $169,000 in Social Security benefits. This sentence holds him accountable for his criminal actions,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to work with SSA to identify improper payments to deceased persons. I thank the U.S. Attorney’s Office for prosecuting this individual and protecting the integrity of SSA programs.”
Piecka was also ordered to repay $169,967.63 in restitution to the Social Security Administration.
This case was investigated by special agents of the Social Security Administration Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Corinne M. Lambert, and Assistant United States Attorney Ryan A. Particka.