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29 March 2022
Second Doctor Pleads Guilty to Workers’ Comp Fraud ConspiracyRead the Press Release
FAYETTEVILLE - An Alexandria, La., physician pleaded guilty today to having conspired to violate three different federal statutes in connection with a scheme to defraud both federal and private workers’ compensation insurers.
U.S. District Judge Timothy L. Brooks presided over the plea hearing, in which Robert Clay Smith, 60, waived indictment by a grand jury and pleaded guilty to a criminal information charging him with conspiracy to commit health care fraud, wire fraud, and illegal remunerations (taking kickbacks).
Court documents allege that the basic premise of the scheme, which ran from 2013 until 2017, was that individuals associated with a Rogers-based medical supply and billing company recruited Smith to dispense pain creams and patches to his workers’ compensation patients by offering him a split of the profits. The Rogers company acted as the billing agent for Smith, handling all the paperwork and submitting the allegedly fraudulent claims to both the U.S. Department of Labor, Office of Workers’ Compensation Programs, which covers all federal employees, and to private insurers as well. In exchange, Smith admitted, the company paid him 50 to 55 percent of the profits collected from successfully billing insurers, at markups of 15 to 20 times what the medications actually cost.
According to court documents, Smith, a Louisiana physician, made more than $650,000 from the scheme. Smith admitted that in addition to receiving illegal kickbacks, he knew he did not have a license to dispense medications from his clinic, required under Louisiana law, and nonetheless bought topical medications from the Rogers company and dispensed them to his workers’ compensation patients from his clinic.
Smith is the second physician to plead guilty in connection with the federal investigation. In July 2021, Dr. Robert Dale Bernauer Sr., another Louisiana doctor, pleaded guilty to conspiring with the same individuals, in a scheme similar to the one for which Smith has accepted responsibility. Additionally, in October 2021, the company’s former billing director, Amanda Dawn Rains, pleaded guilty to participating in criminal conspiracies with the two doctors, and others.
As a result of his guilty plea, Smith may be sentenced to up to five years in prison. The court will determine his sentence at a later date, after reviewing a pre-sentence investigation report prepared by the U.S. Probation Office and considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case is being investigated by the Department of Defense, Defense Criminal Investigative Service, the Department of Labor Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, and the U.S. Postal Service Office of Inspector General, with the assistance of the Louisiana Department of Justice, the Louisiana State Board of Medical Examiners, and the Louisiana Board of Pharmacy.
Assistant U.S. Attorneys Hunter Bridges and Steven Mohlhenrich are prosecuting the case for the United States.
Seattle Man Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
BOISE – A Seattle man pleaded guilty to wire fraud and aggravated identity theft.
According to court records, from at least May 2018 through November 2020, Ryan M. Tichy, 42, executed a scheme to defraud wherein he obtained the means of identification of many individuals and used that information to create false identification documents, open credit accounts, obtain loans, takeover existing credit accounts, and make purchases. The fraudulently obtained means of identification included names, social security numbers, dates of birth, and account numbers. After he gathered that information, Tichy would often create a fake driver’s license using his picture but the victim’s name. Tichy travelled around Washington, Idaho, Oregon, Nevada, and elsewhere to make fraudulent purchases.
When law enforcement executed a search warrant on December 2, 2020, they discovered a mobile identity theft lab inside a trailer Tichy purchased using another person’s identity. The trailer contained materials, machines, computers, and printers for use in producing counterfeit identity cards and debit/credit cards. The trailer also contained foils, blank stock for driver’s licenses, an embosser, a card punch, printers, counterfeit driver’s licenses in various stages of completion, and counterfeit credit cards.
Tichy is scheduled to be sentenced on June 21, 2022, and faces a maximum penalty of up to 20 years in federal prison for wire fraud and a mandatory minimum of two years for aggravated identity theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“This guilty plea reflects hard work by the U.S. Attorney’s Office and investigators to hold Mr. Tichy accountable for this widespread fraud that affected so many victims, who had their identities brazenly stolen,” said U.S. Attorney Rafael M. Gonzalez, Jr. “This office will continue to work tirelessly to uphold the integrity of the Social Security programs and protect the identities of our citizens. I applaud the work of our investigating partners in shutting down this stolen identity mill,” he concluded.
“This case results from collaborative law enforcement efforts to bring Mr. Tichy to account for his criminal offenses. He misused Social Security numbers and the identifiers of others for his personal gain, causing financial losses to individuals and businesses,” said Christian Assaad, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Seattle Field Division. “I thank our law enforcement partners for their work in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
U.S. Attorney Gonzalez commended the cooperative efforts of the Social Security Administration Office of Inspector General, the Boise Police Department, the United States Marshals Service, the Meridian Police Department, the Nampa Police Department, the Edmonds Police Department, the Island County Sheriff’s Office, the Kirkland Police Department, the Lynden Police Department, the Marysville Police Department, the Port of Portland Police Department, the Redmond Police Department, the Reno Police Department, the Seattle Police Department, the Snohomish County Sheriff’s Office, the Spokane Police Department, the Union Gap Police Department and United States Probation and Pretrial Services in the Western District of Washington, which led to charges.
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San Antonio Man Sentenced to 30 Years for Sexual Exploitation of a ChildRead the Press Release
SAN ANTONIO – Yesterday, a San Antonio man was sentenced to 30 years in prison for sexual exploitation of a minor.
According to court documents, Daniel Vesa, 39, coerced a minor into self-producing videos showing the child engaging in sexually explicit conduct using an online social media platform. Vesa also forced the child to engage in sex acts with him over a two-year period.
On November 19, 2021, Vesa pleaded guilty to one count of Production of Child Pornography. In addition to the prison sentence, Vesa was ordered to pay $50,000 in restitution to the victim and serve a lifetime of supervised release.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Acting Special Agent in Charge Jason Hudson made the announcement.
The FBI, along with invaluable assistance from the Bexar County Sheriff’s Office, investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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San Antonio Man Found Guilty of Drug and Firearm OffensesRead the Press Release
SAN ANTONIO – On Friday, a federal jury convicted Kenton Maurice Haynes, 27, of San Antonio for his role in drug trafficking.
According to court documents and evidence presented at trial, on March 26, 2020, law enforcement officers observed Haynes and Kevin Johnson, Jr., 29, of San Antonio, driving a car in circles in an empty parking lot, parking, and then repositioning several times. Another car pulled up, and the driver exited his vehicle and got into the backseat of Johnson’s car. Officers then executed an arrest of all three of the individuals for a drug transaction that was in progress. At the time of the arrest, Johnson had a loaded handgun and nearly $10,000 in cash. Haynes had a loaded handgun equipped with a high-capacity magazine and approximately $2,700 in cash. Officers also recovered approximately two and a half pounds of marijuana, ecstasy and cocaine during the arrest.
At the time of the arrest, Haynes, who was a documented member of the Bloods and Neighborhood Piru street gangs, was under felony indictment for state offenses. Haynes was also wanted for multiple felony warrants for narcotics and firearms offenses.
At the conclusion of a four-day jury trial, Haynes was found guilty on all three charges alleged: one count of Receipt of Firearm While Under Indictment; one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and one count of Possession with Intent to Distribute Marijuana. Haynes is scheduled for sentencing before United States Senior District Judge David A. Ezra on August 8, 2022. He faces a maximum of five years in prison for both his receipt of a firearm while under indictment and his possession with intent to distribute a controlled substance. Haynes also faces a mandatory minimum sentence of five years in prison for possession of a firearm in furtherance of a drug trafficking crime to be served consecutively with any other sentence imposed.
On March 16, 2022, Haynes’ co-defendant, Kevin Johnson, Jr., pleaded guilty before United States Magistrate Judge Henry J. Bemporad to one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime and one count of Possession with Intent to Distribute Marijuana. Johnson is scheduled for sentencing before Judge Ezra on July 25, 2022. He faces a maximum of five years in prison for possession with intent to distribute a controlled substance with a mandatory minimum sentence of five years in prison for possession of a firearm in furtherance of a drug trafficking crime to be served consecutively with any other sentence imposed.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski made the announcement.
The ATF, along with members of San Antonio Texas Anti-Gang Center (TAG), is investigating the case.
The public is encouraged to report San Antonio area gang-related crime to TAG’s intervention and prevention website at stopsanantoniogangs.org.
Assistant U.S. Attorneys Matthew W. Kinskey and William F. Calve are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Salinas Man Charged with Enticing Minor Boy into Sex and ProstitutionRead the Press Release
SAN JOSE – Daniel Philip Aguirre appeared in federal court yesterday to face charges for enticement and sexual exploitation of a minor boy, announced United States Attorney Stephanie M. Hinds and Homeland Security Investigations Special Agent in Charge Tatum King.
According to the allegations in the criminal complaint, Aguirre, 30, of Salinas, used phones and internet applications (including Grindr, Snapchat, and Craigslist) to entice a 14-year-old boy to engage in sex acts with him and ultimately to engage in multiple acts of prostitution, all over the period from April 2017 to September of 2017. The criminal complaint alleges that Aguirre knew of the victim’s age but nevertheless pursued a sexual relationship with him. After establishing his own sexual relationship with the victim, Aguirre is alleged to have prostituted the victim to Aguirre’s associates and others and received payment for the victim’s sex acts. The complaint further alleges Aguirre created and distributed videos of the victim engaged in sex acts with Aguirre and others, including a man who responded to a Craigslist posting created by Aguirre that advertised sex with the victim. The victim later reported Aguirre to law enforcement.
Aguirre was arrested in Salinas and made his initial appearance in federal court in San Jose on March 28, 2022. Aguirre remains in custody and is scheduled for a detention hearing on March 31, 2022.
The complaint charges Aguirre with the sexual enticement and coercion of a minor in violation of 18 U.S.C. § 2422(b). If convicted, Aguirre faces a maximum sentence of life and a minimum sentence of ten years imprisonment, a maximum fine of $250,000, a term of supervised release following imprisonment of up to life, and mandatory restitution to the victim. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Marissa Harris is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of a 16-month investigation by HSI and Carmel-by-the-Sea Police Department. Salinas Police Department also assisted with the execution of a search warrant at Aguirre’s home.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Saint Tammany Parish Man Pleads Guilty to Conspiracy to Commit Bank Fraud and Aggravated Identity Theft in Connection with Postal “Blue Box” TheftsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RONALD S. RILEY, JR., (“RILEY’), age 26, of Slidell, Louisiana plead guilty on March 28 to conspiracy to commit bank fraud and aggravated identity theft charged in a bill of information filed February 7, 2022 in the Eastern District of Louisiana.
According to documents filed in federal court and signed by RILEY, RILEY was involved in stealing mail from postal receptacles located in the Greater New Orleans area. Items stolen from the mail included monetary instruments and banking information that RILEY used to create fraudulent checks. These fraudulent checks were then used to defraud a number of federally insured financial institutions. RILEY also stole and used the identity of other persons to execute the scheme to defraud.
The crime of conspiracy carries a maximum penalty of up to five years imprisonment, followed by up to three years of supervised release, a fine of up to $250,000, and a $100 mandatory special assessment fee. RILEY also faces the potential for the payment of restitution to his victims. The penalty for aggravated identity theft is a mandatory two-year term of imprisonment that runs consecutive to any term of imprisonment imposed on the underlying offense, followed by up to one year of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. RILEY is scheduled to be sentenced on June 28, 2022.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the United States Secret Service, the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Carter K.D. Guice, Jr. and Richard R. Pickens, II are in charge of the prosecution.
Phoenix Man Sentenced to 15 Years for Bludgeoning DeathRead the Press Release
PHOENIX, Ariz. – Jesse Don Moquino, 39, of Phoenix, Arizona, an enrolled member of the Salt River Pima-Maricopa Indian Community, was sentenced last week by U.S. District Judge Susan M. Brnovich to 15 years in prison, followed by three years of supervised release.
On September 11, 2019, Moquino stabbed the victim with a sharp object and then hit her on the back of the head with a blunt object multiple times, killing her. Moquino pleaded guilty on February 26, 2020 to Voluntary Manslaughter.
The Salt River Police Department and the Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-01199-PHX-SMB
RELEASE NUMBER: 2022-034_Moquino# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Pennsylvania Man Admits Role in $35 Million Pharmacy Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – A Langhorne, Pennsylvania, man today admitted participating in a massive compounded-medication kickback scheme that he and others ran out of a pharmacy in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Robert Schneiderman, 79, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to two counts of an indictment charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
From 2014 through 2016, Schneiderman and his conspirators used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, to run a fraud and kickback scheme involving compounded drugs like scar creams, pain creams, migraine mediation, and vitamins. Schneiderman was the President of Main Avenue Pharmacy and was a founder and CEO of its corporate parent.
The scheme revolved around identifying compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers. Once Main Avenue identified lucrative formulas for compounds, it would create large prescription pads with precisely those formulas on it. The prescription pad was extremely easy to use – it included check boxes for doctors to select a particular compounded formula. This increased the likelihood that the doctor would not alter the high-paying formula. There was also a place to select up to a dozen refills and a box authorizing the pharmacy to alter the ingredients itself in case an insurer wasn’t covering a particular compounded medication.
Once the prescription pad was set, Main Avenue would disseminate it to its stable of marketers across the country, with whom it had contractual relationships. The marketing companies would in turn distribute the prescription pad to telemedicine companies and doctors with whom they had a financial arrangement.
Physicians who signed prescriptions for compounded medications that were filled at Main Avenue often had never even spoken to the patient, let alone examined him or her. Once the prescriptions were signed by a doctor, they would be returned to Main Avenue Pharmacy. Main Avenue would then fill the prescription regardless of its medical necessity and then submit claims to health care benefit programs for reimbursement. They did so with federal payers like Medicare and Tricare and with commercial payers in New Jersey and elsewhere.
After Main Avenue obtained reimbursement from the health insurers, they would pay kickbacks to the marketers who had generated the prescriptions based on the overall adjudication amount. Main Avenue signed contracts with many of the marketers, and the contracts themselves spelled out the kickback arrangement, which called for Main Avenue to pay each marketer money based on the volume of referrals of compounded prescriptions and the reimbursement amount that Main Avenue received.
As part of the scheme, Main Avenue would routinely waive co-payments of the patients to whom they were sending multiple prescriptions. It did this to ensure that the patients would keep the medications that Main Avenue had sent regardless of whether the patient wanted them. On some occasions, Main Avenue Pharmacy paid the co-payments on behalf of the patients, and falsified money orders from the patients to Main Avenue to make it appear as if the patients had paid their co-payments when they had not.
On compounded medications alone, Main Avenue received over $34 million in reimbursements from health care benefit programs. Approximately $8 million of that total was paid by federal payers. Schneiderman himself earned over $400,000 through the course of the scheme.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute carries a maximum penalty of five years in prison. Both counts also are punishable by a maximum fine of $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Sept. 16, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; special agents of the Department of Health and Human Services – Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Christopher Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Health Care Fraud Unit Chief Jason S. Gould of the U.S. Attorney’s Office in Newark.
Peabody Man Pleads Guilty to Distributing Drugs Laced with FentanylRead the Press Release
BOSTON – A Peabody man pleaded guilty today in federal court in Boston to participating in a conspiracy that distributed fentanyl and drugs laced with fentanyl.
Francisco Tavarez, a/k/a “Jose,” 25, pleaded guilty to one count of distribution of fentanyl and one count of conspiracy to possess with intent to distribute and distribute 100 grams or more of heroin and 40 grams or more of fentanyl. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug. 9, 2022. Tavarez was charged in November 2017 along with co-defendant Yeffry Reynoso.
In January 2017, a fatal opioid overdose in Melrose prompted an investigation into drug activity on the North Shore of Boston. Reynoso was identified as a heroin and fentanyl supplier who ran an active drug business and employed various individuals as runners who delivered the drugs on his behalf. The investigation determined that Reynoso supplied the opioids that led to the fatal overdose in January and that he had previously supplied the victim with heroin and a heroin/fentanyl mixture on a regular basis in 2016.
During the subsequent investigation into Reynoso’s drug trafficking activities in the Spring of 2017, a cooperating witness made several controlled purchases of heroin and a heroin/fentanyl mixture from Reynoso. In March 2017, Tavarez was identified as a runner for Reynoso when he delivered fentanyl to an undercover agent on Reynoso’s behalf. Tavarez was also observed engaging in multiple suspected drug transactions with individuals believed to be Reynoso’s drug customers. Following a suspected hand-to-hand drug deal in Salem, local law enforcement stopped Tavarez and seized fentanyl and a cocaine/fentanyl mixture from his car.
Reynoso pleaded guilty in January 2019 and, in June 2019, was sentenced to 150 months in prison and four years of supervised release. Reynoso was also ordered to pay restitution in the amount of $4,765 and a $700 special assessment.
The charge of distribution of fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of $1 million. The charge of conspiracy to possess with intent to distribute and distribute 100 grams or more of heroin and 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, at least three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Melrose Police Chief Michael Lyle; and Salem Police Chief Lucas J. Miller made the announcement today. Assistant U.S. Attorney James E. Arnold of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
New York Man Sentenced to 15 Years in Prison for Role in KidnappingRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 180 months in prison for his role in a kidnapping in Paterson, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Maurice Cottman, 42, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of kidnapping. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Oct. 8, 2020, Cottman and his conspirator, Reginald Law, entered a retail store in Paterson and assaulted the victim, who was working in the store. Cottman and Law dragged the victim from the store, threw him into the back of a U-Haul truck and drove to New York. Cottman and Law pistol whipped the victim in the head and face. Later that morning, Cottman called the victim’s family, told them that he had the victim and demanded amounts as high as $200,000 for his return.
That afternoon, law enforcement officers went to Harlem, New York, where they saw the U-Haul parked on the street. When the officers approached, Cottman and Law fled in the U-Haul and were pursued. After some distance, the U-Haul crashed, and a foot pursuit ensued. Ultimately, the officers apprehended Cottman. The officers found the victim in the rear of the U-Haul. Law was arrested on May 26, 2021.
In addition to the prison term, Judge Chesler sentenced Cottman to five years of supervised release.
U.S. Attorney Sellinger credited 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 sentencing. He also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the OCDETF/Narcotics Unit.
The charges against Law remain pending, and he is presumed innocent unless and until proven guilty.
New York Man Charged with Making Bomb Threats Directed at a Business on St. JohnRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that a New York man was arrested Tuesday, March 29, 2022, on St. Thomas on criminal charges related to making bomb threats that were allegedly made involving a business on St. John.
According to court documents, agents with the Federal Bureau of Investigation (FBI) arrested Gilbert Brady, 54, after telephone calls were made to the Virgin Islands Territory Emergency Management Agent (VITEMA) 911 call center and the Beach Bar, in Wharfside Village, St. John stating that explosives were left at the Beach Bar.
On March 20, 2022, an unidentified male called 911 to report that he had left a "package with a timer on it" at the Beach Bar in St. John. The Virgin Islands Police Department (VIPD) responded and evacuated the premises. No device was discovered. On March 23, 2022, an unidentified male called the Beach Bar and stated that he had placed an explosive under the stage and that it would detonate in 45 minutes. Employees recognized the caller as Brady who had recently been banned from the Beach Bar. Shortly thereafter, an unidentified caller called 911 and stated that, "whatever is under the stage at the Beach Bar in St. John is going to detonate and injure an awful lot of people." Again, the Beach Bar was evacuated, and no explosive was found. The 911 caller was later identified as Brady.
Brady is charged with willfully making a threat involving an explosive pursuant to 18 U.S.C § 844(e). If convicted, Brady faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
The U.S. Attorney’s office is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Jersey man sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kyle Flack, of Camden, New Jersey, was sentenced today to five years of probation for his role in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.
Flack, 38, pled guilty in November 2020 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin and Fentanyl.” Flack admitted to working with others to distribute heroin, fentanyl from June to November 2019 in Berkeley and Jefferson Counties and elsewhere.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Original case press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Navajo man charged with assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Monty Montoya, 42, of Cuba, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court today for an initial appearance, facing charges of assault with a dangerous weapon, assault resulting in serious bodily injury and discharging a firearm during a crime of violence. Montoya will remain in custody pending a preliminary and detention hearing scheduled for March 31.
According to a criminal complaint, on March 15, Montoya allegedly assaulted a victim, identified in court records as Jane Doe, at his residence on the Navajo Nation. Montoya allegedly repeatedly struck the victim about the head and face with his fists and with a .45 caliber pistol. When the victim broke free of Montoya, he allegedly pointed the pistol at her and shot her through the arm, breaking a bone. The victim later was taken to the University of New Mexico Hospital for medical treatment.
When law enforcement arrived, they found Montoya at his mother’s residence nearby. They later recovered a pistol from the property.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted of all charges, Montoya faces a minimum of 10 years and up to life in prison.
The FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Mark Pfizenmayer is prosecuting the case.
Missoula meth trafficker sentenced to six years in prisonRead the Press Release
MISSOULA — A Missoula man convicted of trafficking methamphetamine in the community was sentenced today to six years in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Leonard George Carleton, 58, pleaded guilty in December 2021 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the government alleged that in May 2021, the Missoula County Sheriff’s Office supervised a controlled buy of approximately 53.6 grams of meth from Carleton. Later, on June 2, 2021, members of law enforcement searched Carleton’s shop and vehicle and recovered numerous guns, and over 2,800 grams, or approximately six pounds, of pure meth. Six pounds of meth is the equivalent of about 22,106 doses.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Michigan Man Pleads Guilty to Unemployment Fraud and Identity Theft Related to COVID-19 PandemicRead the Press Release
BOSTON – A Michigan man pleaded guilty today in federal court in Boston in connection with his involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance.
Devin Smith, 30, pleaded guilty to one count of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 9, 2022. Smith was arrested on Jan. 12, 2021.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act provided funding to existing state unemployment insurance programs and created a new temporary federal program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
Between March and May 2020, Smith participated in a scheme to obtain proceeds from fraudulent unemployment and PUA claims submitted in nine different states, including Massachusetts. Smith used stolen identities, including the identities of Massachusetts residents, to submit fraudulent unemployment and PUA claims resulting in over $150,000 in payments. Additionally, Smith filed multiple fraudulent unemployment and PUA claims in his own name in six different states, including in Massachusetts.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. Valuable assistance in the investigation was provided by the U.S. Postal Service and the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mexican national admits firearm and immigration crimes after arrest in Glacier CountyRead the Press Release
GREAT FALLS — A Mexican national today admitted to firearm and immigration crimes after an arrest in Glacier County in which law enforcement found a stolen firearm, ammunition, methamphetamine, fentanyl pills and counterfeit identification cards, U.S. Attorney Leif M. Johnson said.
Jesus Zamora-Cuevas, 23, from Mexico, pleaded guilty to prohibited person in possession of a firearm and ammunition and to illegal reentry. Zamora-Cuevas faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the firearm count.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 15. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Zamora-Cuevas was detained pending further proceedings.
In court documents, the government alleged that at 4:30 a.m. on Jan. 14, Blackfeet Law Enforcement Services officers responded to a report of a strange vehicle parked near a local resident’s driveway. The caller reported hearing what sounded like a gun being cocked when he approached the vehicle. Officers located the vehicle near the caller’s driveway. Zamora-Cuevas was the driver and there was one passenger. Officers removed both individuals from the vehicle and patted them down. Officers found approximately 32 grams of meth on Zamora-Cuevas.
Officers saw the butt of a pistol under the driver’s seat and removed it. The pistol, which had a round in the chamber and a partially loaded magazine, had been reported stolen in Washington. A search warrant was executed on the vehicle, and officers found a second firearm, a .410-gauge shotgun, in the trunk, a second loaded magazine for the pistol and numerous rounds of 9mm ammunition in a bag. In addition, officers found in the vehicle a locked box that contained thousands of fentanyl pills.
Officers also found on Zamora-Cuevas documents bearing his name and purporting to be a permanent resident card and a Social Security card. The identification number on the permanent resident card was associated with a female, from Pakistan, who had become a U.S. citizen, while the number on the Social Security card was issued to an individual born in 1863. The investigation determined that Zamora-Cuevas was not a U.S. citizen and had unlawfully re-entered the United States after having been removed in 2017.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Homeland Security Investigations and Blackfeet Law Enforcement Services.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Methamphetamine Trafficker Is Sentenced to More Than Nine YearsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Alberto Manuel Lara-Zuniga, 46, of Mexico, to 108 months in prison and five years of supervised release for conspiracy to distribute and to possess with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, from December 2020 to February 2021, Lara-Zuniga conspired to distribute narcotics in the greater Charlotte area, as well as trafficked in illegal firearms. Over the course of the investigation, law enforcement determined that Lara-Zuniga obtained methamphetamine and cocaine from Mexico for distribution into North Carolina through his ties to Sinaloa and Nayarit Cartels in Mexico. Court documents also show that the narcotics were transported into North Carolina through Georgia and California.
Lara-Zuniga is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making this announcement, U.S. Attorney King thanked ATF, HSI and CMPD for their investigation.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Mercer County Felon Charged with Illegal Possession on a Gun and AmmunitionRead the Press Release
PITTSBURGH – Devon Smith was indicted by a federal grand jury in Pittsburgh for possessing a firearm and ammunition after a prior felony conviction, United States Attorney Cindy K. Chung announced today.
The Indictment charges Smith, age 24 of Greenville, Pennsylvania, with possessing a firearm and ammunition on December 22, 2021, after a prior felony conviction.
The law provides for a maximum total sentence of up to ten years in prison and a fine of up to $250,000. Under the Under States Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller and Special Assistant United States Attorney/Mercer County Assistant District Attorney Shane T. Crevar are prosecuting this case on behalf of the United States.
The Pennsylvania Office of Attorney General, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the return of the Indictment in this case. This case is being prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Member of the Laguna Pueblo sentenced to three years in federal prison for assault in Indian CountryRead the Press Release
ALBUQERQUE, N.M. – Joshua Mendez, 40, of New Laguna, New Mexico, and enrolled member of the Laguna Pueblo, was sentenced in federal court on March 24 to three years and eight months for assault resulting in serious bodily harm and domestic assault by a habitual offender in Indian Country.
Mendez pleaded guilty to these offenses on July 22, 2021. According to the plea agreement, on March 20, 2020, Mendez assaulted Jane Doe and John Doe in Cibola County, New Mexico, on the Laguna Pueblo. During the assault at Jane Doe’s residence, Mendez pushed Jane Doe, his girlfriend at time, and stabbed John Doe several times with a knife. Due to the injuries from Mendez’s assault, John Doe was taken to a hospital for medical treatment.
Upon his release from prison, Mendez will be subject to three years of supervised release.
Mendez was previously convicted for assault of an intimate partner and battery on Feb. 6, 2017, and again on Oct. 17, 2017.
The Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department. Assistant U.S. Attorney Elisa C. Dimas prosecuted the case.
Maryland man sentenced for role in drug trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Karim Irvin Brooks, of Hagerstown, Maryland, was sentenced today to four years of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Brooks, 26, pleaded guilty in November 2021 to one count of “Aiding and Abetting Distribution of Heroin.” Brooks admitted to working with others to sell heroin in February 2020 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for role in drug trafficking and firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sean Amos Robinson, of Martinsburg, West Virginia, was sentenced today to 21 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Robinson, also known as “Zoo,” 36, pleaded guilty in October 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone.” Robinson admitted to working with others to distribute Eutylone from June 2019 to December 2020 in Berkeley and Jefferson Counties and elsewhere.
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 Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department, and the Metropolitan Police Department of Washington, D.C. 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.
Man Who Had Cocaine, Methamphetamine Mailed from California to Charlottesville Pleads Guilty in Federal CourtRead the Press Release
CHARLOTTESVILLE, Va.- The Charlottesville man who had more than three pounds of methamphetamine and two pounds of cocaine mailed to him from California in March 2021 pleaded guilty yesterday to federal drug charges.
Damion Demetrius Reeves, 41, pleaded guilty to one count of possessing with the intent to distribute 50 grams or more of methamphetamine and one count of possessing with intent to distribute 500 grams or more of cocaine.
According to court documents, on March 18, 2021, the Jefferson Area Drug Task Force (JADE) received a tip that a package containing large quantities of narcotics would be sent from California to an address in Charlottesville intended for Damion Reeves.
Within a week, FedEx alerted JADE officials that the suspect package had arrived at their facility. The suspect package was addressed to “Charlottesville Police Sub09 Law Enforcement” located at Orangedale Avenue, an address in South Charlottesville. The sender was noted as the fictitious “Johnson Law Firm” in San Diego, California. Upon execution of a search warrant on the package, it was discovered to contain 3.12 pounds of methamphetamine and 2.3 pounds of cocaine.
Investigators orchestrated a controlled delivery of the package to the Orangedale Avenue address, where they observed Damion Reeves exiting a short time later.
Reeves’s mother was the lone occupant of the residence when investigators executed a search warrant on the residence. During the entire time investigators were inside the home, the defendant’s mother stood in front of a small door leading to a storage space under the stairwell. When investigators eventually searched there, they found the suspect package that had been sent from San Diego. In a subsequent court hearing, Reeves admitted that the package belonged to him and that he intended to sell the drugs in the Charlottesville community.
Reeves is scheduled to be sentenced on June 21, 2022.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Jared Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division made the announcement.
The Drug Enforcement Administration, the U.S. Postal Service – Office of Inspector General, and the Jefferson Area Drug Task Force investigated the case.
Assistant U.S. Attorneys Ronald M. Huber and Katie B. Medearis are prosecuting the case.
Man Convicted for $27 Million PPP Fraud SchemeRead the Press Release
A federal jury convicted a California man yesterday for submitting fraudulent applications seeking money from the Paycheck Protection Program (PPP), submitting false statements to a financial institution, and money laundering.
According to court documents and evidence presented at trial, Robert Benlevi, 53, of Encino, submitted 27 PPP loan applications to four banks between April and June 2020 on behalf of eight companies solely owned by Benlevi. In the applications, Benlevi sought a total of $27 million in forgivable PPP loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In his fraudulent applications, Benlevi represented that each of his companies had 100 employees and average monthly payroll of $400,000, even though he knew that the companies did not have any employees or payroll expenses. The evidence further showed that Benlevi also submitted fabricated IRS documents falsely stating that each of the companies had an annual payroll of $4.8 million.
Based on Benlevi’s fraudulent loan applications, three of Benlevi’s companies — 1Stellar Health LLC, Bestways2 Health LLC, and Joyous-Health4U LLC — obtained $3 million in PPP funds. Although Benlevi falsely represented that the funds sought through the PPP loan applications would be used to pay payroll and certain other business expenses, the evidence showed that he instead used them for personal expenses, including cash withdrawals, payments on his personal credit cards, transfers to other personal and business accounts he controlled, and renting an oceanfront apartment in Santa Monica. In a single day, Benlevi withdrew from the Bestways2 Health account $248,000 of PPP funds in cashier’s checks, which were deposited into other accounts that Benlevi controlled.
Benlevi was convicted of bank fraud, false statements to a financial institution, and money laundering. He is scheduled to be sentenced on June 27 and faces up to 30 years in prison for each of the bank fraud and false statement charges, and up to 10 years in prison for each count of money laundering. 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 Tracy L. Wilkison of the Central District of California; Assistant Director Luis Quesada of the FBI's Criminal Investigative Division; Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); and Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA-OIG) Western Region made the announcement.
The FBI, SBA-OIG, and FDIC-OIG investigated the case.
Trial Attorneys Emily Culbertson and Justin Givens of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Local Man on Supervised Release for Drug Trafficking Pleads Guilty in New Drug Conspiracy CaseRead the Press Release
PITTSBURGH – Eugene Hall pleaded guilty to conspiring to distribute Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Cindy K. Chung announced today.
Hall, age 28, formerly of Pittsburgh, Pennsylvania, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on August 2, 2022, at 2:00 p.m. Hall was on federal supervised release following a prior federal prison sentence for drug trafficking when he committed the additional drug trafficking crime to which he pled guilty.
The law provides for a sentence of up to 30 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Lawton Man to Serve More Than Fifteen Years in Federal Prison for Shooting at Federal OfficersRead the Press Release
OKLAHOMA CITY – Yesterday, MICHAEL HANS OLOA, 35, of Lawton, was sentenced to serve more than fifteen years in federal prison for assaulting federal law enforcement officers by shooting at the officers in a Lawton casino parking lot, and for being a convicted felon in possession of a firearm, announced United States Attorney Robert J. Troester.
On June 15, 2021, a federal grand jury returned a two-count Indictment against Oloa. Count 1 charged Oloa with assaulting two federal officers, and Count 2 charged him with being a convicted felon in possession of a firearm. According to an affidavit filed on May 27, 2021, in support of a criminal complaint, two officers with the Comanche Nation Police Department were called to the Comanche Nation Casino in Lawton, Oklahoma, on May 25, 2021. There, officers encountered Oloa, who then fled and discharged a firearm in the direction of the officers. The Comanche Nation Police Department officers at whom Oloa fired his gun had been deputized by the Bureau of Indian Affairs Special Law Enforcement Commission to investigate federal crimes and are therefore considered federal law enforcement officers. Oloa is prohibited under federal law from possessing a firearm because he has been previously convicted of felony crimes and has been in custody since the day of the shooting.
On August 4, 2021, Oloa pleaded guilty to both counts.
Yesterday, U.S. District Court Judge Scott Palk sentenced Oloa to serve a total of 188 months in federal prison. In support of his sentence, Judge Palk cited the nature and circumstances of the offense, as well as Oloa’s criminal history. Judge Palk also ordered that upon release from prison, Oloa must serve three years of supervised release.
This case arises from an investigation by the Comanche Nation Police Department, the Lawton Police Department, the United States Marshals Service, the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mark Stoneman prosecuted this case.
Kennewick Man Pleads Guilty to Conspiracy to Obstruct an Official ProceedingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Mohammed Naji Al-Jibory, age 54, of Kennewick, Washington pleaded guilty to conspiracy to obstruct an official proceeding, which carries a maximum sentence of 20 years in prison, a fine of $250,000, and a three-year term of court supervision. United States District Judge Mary K. Dimke will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Al-Jibory is scheduled to be sentenced on July 21, 2022, at 3:00 p.m. in Richland, Washington.
According to court documents, in February 2019, the Federal Bureau of Investigation (“FBI”) opened an official investigation into allegations that several individuals were involved in a scheme to defraud insurance companies and obtain money and property by staging automobile accidents, and filing false and fraudulent claims with insurance companies, in violation of federal criminal laws. The FBI investigation expanded to an investigation by a federal grand jury empaneled in the Eastern District of Washington. In May 2020, the FBI executed warrants to search several residences in Washington and California for evidence of federal crimes. In September 2020, when interviewed by the FBI, Al-Jibory falsely accused an FBI agent, and another individual he suspected of being an FBI informant, of soliciting approximately a $20,000 bribe from a third person to make the case go away. In doing so, Al-Jibory engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication to these officers and a judge of the United States, of information relating to the commission and possible commission of federal offenses. He also attempted to corruptly obstruct, influence, and impede, and attempt to obstruct, influence, and impede an official proceeding, that is, a federal grand jury proceeding and a criminal proceeding before a judge and court of the United States.
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, noted that efforts to hinder federal criminal proceedings will not be tolerated: “To ensure a safe and strong community in Eastern Washington, we will continue to vigorously prosecute those who attempt to obstruct official proceedings before a judge and court of the United States. I greatly appreciate the hard work and collaboration of talented agents and agencies that are contributing to our collective efforts to protect our communities from fraud and pursue justice.”
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III and Dominique Juliet Park, Assistant United States Attorneys for the Eastern District of Washington.
Jicarilla woman appears in court for voluntary manslaughter chargeRead the Press Release
ALBUQUERQUE, N.M. – Laurice Montoya, 37, appeared in federal court on March 28 for a preliminary and detention hearing facing a charge of voluntary manslaughter in Indian Country. Montoya will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Jan. 19, at Montoya’s home on the Jicarilla Apache Reservation, Montoya allegedly began arguing with a man, identified in court records as John Doe, who had been staying with her since December 2021. Montoya was walking behind John Doe when she allegedly pushed him over a couch. Montoya helped John Doe to his feet, but then allegedly hit him twice across the back of his head with a snow shovel.
About four hours later, a friend showed up at the residence and called 911. Emergency Medical Services of the Jicarilla Apache Tribe transported John Doe to the San Juan Regional Medical Center where he later died. Doctors found that John Doe had sustained traumatic brain injury, a rib fracture, severe bruising on his upper body and two cuts on his scalp.
Montoya and John Doe are both enrolled members of the Jicarilla Apache Tribe.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Montoya faces up to 15 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police and the San Juan County Sheriff’s Office. Assistant United States Attorney Thomas Aliberti is prosecuting the case.
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Jefferson County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Gordon Farmer, of Harpers Ferry, West Virginia, was sentenced today to five years of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Farmer, 53, pleaded guilty in November 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Farmer admitted to working with others to distribute drugs from July 2018 to June 2021 in Jefferson County and elsewhere.
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.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Gina M. Groh presided.
Independence Man Pleads Guilty to Meth Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man who was arrested after he drove two victims of an accidental shooting to the hospital emergency room has pleaded guilty to his role in a conspiracy to distribute methamphetamine and to illegally possessing firearms.
Jason Ruben Breedlove, 40, pleaded guilty before U.S. District Judge Greg Kays on Monday, March 28, to one count of conspiracy to distribute 500 grams or more of methamphetamine and one count of possessing firearms in furtherance of a drug-trafficking crime.
After two people were shot at a residence in Butler, Mo., on Feb. 5, 2018, Breedlove drove the gunshot victims to the Bates County Memorial Hospital in Butler and dropped them off at the emergency room. Deputies of the Bates County Sheriff’s Department apprehended Breedlove and took him into custody the same day.
When deputies searched the residence where the shooting occurred, they found 25 grams of methamphetamine, which Breedlove admitted belonged to him, and a loaded Smith & Wesson .40-caliber pistol. An additional round of ammunition was found in Breedlove’s pants. Breedlove told investigators this was the pistol that had discharged and wounded the two shooting victims.
When deputies searched Breedlove’s vehicle, they found a Savage 6.5 Creedmoor caliber rifle and ammunition. The firearm had been reported as stolen.
Breedlove admitted that he purchased methamphetamine for others to distribute.
Under federal statutes, Breedlove is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bates County, Mo., Sheriff’s Department, and the Butler, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hammond Tax Preparer Charged with Filing False IRS Returns and Making False Statements to IRS and to Department of EducationRead the Press Release
NEW ORLEANS – KENISHA R. CALLAHAN, age 44, and a resident of Ponchatoula, Louisiana, was charged by bill of information on March 25, 2022, by the U.S. Attorney for filing a false tax return, aiding and assisting in the preparation of a false tax return and making a false statement to the Department of Education, announced U.S. Attorney Duane A. Evans .
As charged in the bill of information, count one alleges that CALLAHAN, the owner of Callahan Tax Service, prepared and filed a false 2015 U.S. Individual Tax Return Form 1040, wherein she underreported her earned income for the alleged time period. Count two alleges that in 2015, CALLAHAN aided in the preparation and filing of a client’s tax return that falsely stated to the IRS that the client owned a business and that the client had a business loss for the 2014 tax year. Count three alleges that CALLAHAN committed financial aid fraud by falsely reporting the amount of income that she earned in 2015 to the Department of Education while applying for student loan forgiveness.
A bill of information merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, CALLAHAN faces a maximum sentence of up to three years, up to one year of supervised release, and up to a $100,000 fine per tax count. The Department of Education count calls for a maximum sentence of up to five years, up to three years of supervised release, and up to a $250,000 fine. If convicted, CALLAHAN will be required to pay a $100 mandatory special assessment fee for each count of conviction.
U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation and the Department of Education for their handling of the matter. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
Georgia Woman Pleads Guilty to More Than $1.5 Million in FraudRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Theresea Walker (30, Fairburn) has pleaded guilty to wire fraud. Walker faces up to 20 years in federal prison. The sentencing hearing is scheduled for June 15, 2022.
According to court documents, from at least October 2019 and continuing through May 21, 2021, Walker was employed as an accounts payable processor with a technology company, defense contractor, and information technology services provider headquartered in Melbourne, Florida. In this role, Walker's responsibilities included accessing her employer's payment software systems for the purpose of entering vendor and supplier invoices and scheduling those invoices for payment. Walker’s employer conducted an audit of accounts serviced by Walker. The audit revealed that Walker had made false entries into the employer's accounts payable system to conduct nine wire transactions through which Walker caused the transfer of funds from the employer's bank account to accounts controlled by Walker. As part of her scheme, Walker also edited the payment terms and accounts of actual existing vendors with the employer, so that new invoices entered under that vendor name would be paid directly to the accounts designated by Walker. During the course of the scheme, in an attempt to hide her fraudulent activity, Walker created multiple fictitious invoices and fraudulent credit memos. In total, as a result of her scheme, Walker caused a total loss of $1,757,082.73 to the employer, which also represents the proceeds received by her from her scheme.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.
Former Sacramento Resident Charged in Unemployment Insurance Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Terence Aubrey Larker, 35, of Las Vegas, previously of Sacramento, was arrested today after a federal grand jury returned an eight-count indictment last Thursday, charging him with mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
The indictment was unsealed today after Larker’s arrest in Las Vegas.
According to court documents, beginning in April 2020, and continuing through at least October 2020, Larker perpetrated a mail fraud and identity theft scheme that targeted the Unemployment Insurance benefit program that California administers through its Employment Development Department (EDD). Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance program, EDD is responsible for administering unemployment insurance benefits for qualifying residents who can no longer find employment due to the COVID-19 pandemic. Larker obtained the personally identifiable information (PII) of more than 80 individuals and filed fraudulent unemployment insurance benefit claims under their identities. EDD approved many of these applications and mailed benefits in the form of prepaid debit cards to addresses under Larker’s control, including at least 24 to his home address in Sacramento. Once received in the mail, he activated the cards and spent the benefits on himself, often appearing in ATM surveillance footage taking out large amounts of cash from these cards. In total, Larker’s conduct resulted in EDD and the United States paying out over $1.1 million in fraudulent claims.
“We greatly appreciate the strong work of our federal law enforcement partners who investigate these complex cases and bring perpetrators to justice,” said EDD Director Nancy Farias.
This case is the product of an investigation by the Department of Labor-Office of Inspector General (DOL-OIG), California Employment Development Department, Department of Homeland Security-Office of Inspector General (DHS-OIG), and the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
If convicted, Larker faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 for mail fraud and a mandatory additional sentence of two years in prison for aggravated identity theft. 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.
Former Lawrence County Attorney Pleads Guilty to Wire Fraud and Federal Program TheftRead the Press Release
FRANKFORT, Ky. – The former County Attorney for Lawrence County, Michael T. Hogan, and his wife and legal secretary, Joy M. Hogan, 41, pleaded guilty on Tuesday, before U.S. District Judge Gregory Van Tatenhove, to wire fraud. Michael Hogan pleaded guilty also to federal program theft.
According to the Hogans’ plea agreements, the Hogans conspired with each other to commit wire fraud by issuing checks from a second delinquent tax account for the Lawrence County Attorney’s Office, the statements for which went to their personal residence. Michael Hogan and Joy Hogan would routinely prepare “bonus” checks issued to Joy, and signed by Michael, paid with delinquent tax funds that should have been used on operating expenses for the Lawrence County Attorney’s Office. The Hogans deposited these checks in Joy’s personal account and the couple’s joint accounts and spent the funds on personal expenses. Michael Hogan admitted he personally benefitted from these payments and knew some of these payments were not reasonable in amount, nor beneficial to the public. According to the indictment, between March 8, 2013, and April 30, 2020, Michael Hogan paid Joy Hogan more than $365,000 from the Lawrence County Delinquent Tax Account.
Additionally, Michael Hogan also admitted to defrauding the Lawrence County Child Support Enforcement Office, part of the Kentucky Cabinet for Health and Family Services. According to the plea agreement, Hogan billed the program for more hours than he actually worked.
As part of the plea agreement, Michael Hogan agreed to resign as the Lawrence County Attorney.
The Hogans were indicted on the charges in June 2021.
“Whenever public officials turn to self-interests and use taxpayer money for their personal benefit, it causes real damage,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Mr. Hogan was an elected County Attorney – responsible for upholding the law – yet, he has now admitted to betraying that public trust and to taking a significant amount of public money for the benefit of he and his wife. Not only was this conduct a theft of public funds, but it also dangerously erodes the public’s faith in government officials and law enforcement. We appreciate the efforts of our dedicated law enforcement partners, without whom this prosecution would not have been possible.”
"The Hogans' blatant disregard for properly handling tax payers' hard-earned money eroded the public's trust in government," said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. "The FBI will continue to work alongside our law enforcement partners to regain that trust by identifying and investigating those in power who choose to put their own financial gain above those they serve."
United States Attorney Shier; Special Agent in Charge Cohen; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the FBI and KSP. The case is being handled by Assistant U.S. Attorneys Kate Smith and James Chapman.
Michael Hogan and Joy Hogan are scheduled to be sentenced on July 6. On the wire fraud charges, they face up to 20 years in prison and a fine of no more than $250,000 or twice the amount of gain or loss. On the federal program theft charges, Michael Hogan faces up to 10 years in prison and a fine of no more than $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Former Law Enforcement Officer Sentenced to Three Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Anthony Michael Mileo, age 56, of Huntingtown, Maryland, to three years in federal prison, followed by five years of supervised release, for possession of child pornography. At the time of his indictment in January 2020, Mileo was a Corporal with the Maryland National Capital Park Police Department and was a K-9 handler.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Calvert County State’s Attorney Robert Harvey.
According to his plea agreement, on August 7, 2019, the Maryland State Police (MSP) Computer Crimes Unit received a referral from the National Center for Missing and Exploited Children (NCMEC) regarding the possession of child sexual abuse material. The cybertip indicated that video files documenting child sexual abuse were uploaded to a document storage application account. The document storage application provided the contents of the account to investigators. The content included over a dozen video files depicting child sexual abuse and provided the IP address associated with the transfer of videos depicting child sexual abuse to the account on July 1, 2019.
As detailed in the plea agreement, investigators learned that the e-mail address was associated with Mileo and the IP addresses were associated with an Internet Service Provider account located at Mileo’s address in Calvert County, Maryland. On September 5, 2019, MSP obtained a search warrant for the contents of the e-mail account which revealed approximately 71 video files depicting child sexual abuse, including prepubescent minors and images depicting children in bondage being sexually abused. The video files included a series of known victims of child abuse identified through NCMEC. The e-mail account also contained non-contraband material, including employment information associated with Mileo.
On November 7, 2019, members of the MSP and HSI executed a search warrant at Mileo’s residence and recovered three cellular telephones: an Apple iPhone 7 Plus, which was seized from Mileo’s person; a black Kyocera phone seized from the rear of Mileo’s Park Police-issued vehicle; and a police-issued black iPhone in a black case with “K9” on the back. Mileo was arrested.
A forensic analysis was undertaken on the Apple iPhone 7. A third-party vendor was contracted to unlock the phone so that its contents could be searched. The document storage application originally identified in the cybertip was identified on the phone, along with two additional document storage accounts. None of the 168 files collectively contained within the second and third document storage accounts identified on the phone were able to be accessed, but many of the file names were indicative of child sex abuse material. Investigators also identified a chat application on the phone. One of the recovered chats contained an image depicting the sexual abuse of a toddler. The files Mileo uploaded depicting the sexual abuse of children could be accessed from any device with an Internet connection, including the cellular telephones recovered by investigators. For example, Mileo uploaded the document storage application onto his personal iPhone, which allowed him to access the images of child sexual abuse he had previously uploaded to the application.
Mileo previously faced related charges in Calvert County, but those charges were dismissed in favor of federal prosecution.
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 HSI Baltimore and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation and thanked the Office of the State’s Attorney for Calvert County for its assistance. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Former GSA Official Pleads Guilty to Receiving Illegal GratuityRead the Press Release
BOSTON – A former employee of the U.S. General Services Administration (GSA) pleaded guilty today in federal court in Boston to receiving illegal gratuity.
Kevin Richards, 51, of Hanover, pleaded guilty to one count of receiving an illegal gratuity as a public official and two counts of making false statements to a federal agency. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for July 12, 2022. Richards was charged on Feb. 9, 2022.
Richards was employed as the Leasing Director for the New England Region of the Public Buildings Service, a division of GSA. Starting in 2017, Richards also worked as a licensed real estate agent for a Duxbury real estate company owned by Individual A, from whom he received real estate commissions in 2017 and 2018. Richards was permitted to have a job outside GSA provided that he disclosed it, and whether or not he received any compensation, in an annual financial disclosure report required by GSA’s ethics office.
In April 2020, Richards notified Individual A about a job opening in Richards’ office, substantively edited Individual A’s resume and gave Individual A confidential GSA interview questions, all without telling GSA. Individual A applied for the position and was hired by Richards. Richards also recommended and obtained approval from other GSA officials for Individual A to receive an above-normal salary – $102,517 instead of $85,428 – and an above-normal accrual rate for annual leave. Richards did not disclose his financial relationship with Individual A.
Richards received no commissions from the Duxbury real estate company for almost two years. Then, shortly after Individual A began working for GSA, Individual A chose Richards to be a listing agent for a property in Duxbury in August 2020, and a listing agent for a different property in October 2020. Individual A paid Richards a $10,250 commission when the second property sold.
In his GSA financial disclosure report for 2020, Richards falsely stated that he had not held any positions outside GSA that year. On Feb. 22, 2021, a GSA ethics official emailed Richards, asking whether he still had the position with the Duxbury real estate company that he had reported having in 2019. Richards falsely replied, “I did not work for them last year. I did not do any outside business last year.”
The charge of receiving an illegal gratuity as a public official provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. The charge of making false statements to a federal agency provides for a sentence of up to five years in prison, three years 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.
United States Attorney Rachael S. Rollins and Joseph Dattoria, Special Agent in Charge of the U.S. General Services Administration, Office of Inspector General, Boston Field Investigations Office made the announcement today. Assistant U.S. Attorneys Dustin Chao and Christine Wichers of Rollins’ Public Corruption Unit are prosecuting the case.
Former Comptroller General of Ecuador Indicted for Alleged Bribery and Money Laundering SchemeRead the Press Release
The former Comptroller General of Ecuador made his initial appearance today in Miami, Florida, for allegedly engaging in a scheme to use the U.S. financial system to launder money to promote and conceal an illegal bribery scheme in Ecuador.
According to the March 24 indictment unsealed today, between approximately 2010 and 2016, Carlos Ramon Polit Faggioni (Polit), allegedly solicited and received over $10 million in bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate, in exchange for using his official position as Comptroller General of Ecuador to influence official actions by the comptroller’s office in order to benefit Odebrecht and its business in Ecuador. Additionally, Polit is alleged to have received a bribe from an Ecuadorian businessman in or around 2015 in exchange for assisting the businessman and his company in connection with certain contracts from the state-owned insurance company of Ecuador.
The indictment alleges that, from in or around 2010 and continuing until at least 2017, at the direction of Polit, another member of the conspiracy caused proceeds of Polit’s bribery scheme to “disappear” by using Florida companies registered in the names of certain associates, often without the associates’ knowledge. The conspirators also used funds from Polit’s bribery scheme to purchase and renovate real estate in South Florida and elsewhere and to purchase restaurants, a dry cleaner and other businesses.
Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.
Polit is charged with one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property. If convicted, he faces up to 20 years in prison for each count of money laundering and conspiracy to commit money laundering and up to 10 years in prison for each count of engaging in transactions in criminally derived property. 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 Juan Antonio Gonzalez for the Southern District of Florida, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami office made the announcement.
HSI’s Miami Field Office is investigating the case.
Trial Attorneys Jill Simon and Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael N. Berger of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.
The Justice Department’s Office of International Affairs also provided substantial assistance. The Justice Department also wishes to thank law enforcement authorities in Ecuador, Brazil, Panama, and Curacao for their assistance with the investigation.
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 Comptroller and Compliance Specialist at Investment Adviser Firm Pleads Guilty to Conspiring to Defraud ClientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VANIA MAY BELL, the former comptroller and chief compliance officer of Executive Compensation Planners, Inc. (“ECP”), a registered investment adviser and financial planning firm located in New City, New York, pled guilty to participating in a conspiracy with her father, Hector May, the former president of ECP, to defraud certain investment advisory clients (the “Victims”) out of more than $11 million. BELL pled guilty before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Damian Williams said: “As Vania May Bell admitted, for years, she and her father, Hector May, violated the trust of ECP’s clients by taking their money intended for investments and instead spending it for personal and business expenses as part of an illegal Ponzi scheme. In total, Bell and May stole more than $11 million from over 15 victims that included a pension plan, and vulnerable and elderly individuals. Now, she has confessed to her crime and faces significant time in prison.”
According to Count One of the Indictment, to which BELL pled guilty, and other statements and submissions in made in Court:
Beginning in 1982, May was the president of ECP and provided financial advisory services to numerous clients. In 1993, BELL joined ECP, where she held various titles including comptroller and chief compliance officer. ECP worked with a broker dealer (“Broker Dealer-1”), of which May became a registered representative in 1994. In its role as a broker dealer, Broker Dealer-1 facilitated the buying and selling of securities for clients of Broker Dealer-1’s registered representatives, including clients of May. Broker Dealer-1 and associated clearing firms maintained securities accounts for ECP’s clients and, through those accounts, held ECP’s clients’ money, executed their securities trades, produced account statements reflecting activity in the clients’ accounts, and forwarded these account statements to ECP’s clients.
In order to obtain money from the Victims’ securities accounts with Broker Dealer-1, May advised the Victims, among other things, that they should use money from those accounts to have ECP, rather than Broker Dealer-1, purchase bonds on their behalf. He further represented that by purchasing bonds through ECP directly, the Victims could avoid transaction fees. Because May lacked the authority to withdraw money directly from the Victims’ accounts with Broker Dealer-1, he persuaded the Victims to withdraw the money themselves and to forward that money to an ECP “custodial” account (the “ECP Custodial Account”), so that he could use the money to purchase bonds on their behalf.
With BELL’s assistance, May guided the Victims, first, to withdraw their money from their Broker Dealer-1 accounts, and second, to send that money to the ECP Custodial Account by wire transfer or check. At times, May falsely represented that the funds being withdrawn from Victims’ Broker Dealer-1 accounts were the proceeds of prior bond purchases May had made. After the Victims sent their money to the ECP Custodial Account, May and BELL did not use the money to purchase bonds. Instead, BELL and May transferred the money to ECP’s “operating” account and spent it on business expenses, personal expenses, and to make payments to certain Victims in order to perpetuate the scheme and conceal the fraud.
Specifically, in some cases, BELL and May used Victims’ funds to make purported bond interest payments to other Victims. In other cases, May used Victims’ funds to make payments to other Victims who wished to withdraw funds from their accounts. BELL and May also created phony “consolidated” account statements that they issued through ECP and sent to the Victims. These “consolidated” account statements purported to reflect the Victims’ total portfolio balances and included the names of bonds May falsely represented that he purchased for the Victims and the amounts of interest the Victims were supposedly earning on the bonds. In order to create the phony consolidated account statements, May provided BELL with bond names and false interest earnings, and BELL created ECP computerized account statements and had them distributed to the Victims.
To keep track of the money that the co-conspirators were taking from the Victims, BELL processed the Victims’ payments for the purported bonds, entered them in a computerized accounting program, and, through that program, kept track of how BELL and May received and spent the Victims’ stolen money. In this way, from the late 1990’s through March 9, 2018, BELL and May induced Victims to forward them more than $11,400,000.
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BELL, 57, of Montvale, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing before Judge Nelson S. Román has been scheduled for July 7, 2022.
May, who pled guilty in a separate case in December 2018, to charges of conspiracy to commit wire fraud and investment advisor fraud, was sentenced on July 31, 2019, to thirteen years in prison. He was also ordered to serve three years of supervised release, pay $8,041,233 in restitution and forfeit $11,452,185.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service, Special Agents of the United States Attorney’s Office, and the Federal Bureau of Investigation.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, Margery Feinzig, and Derek Wikstrom are in charge of the prosecution.
Former Airline Executive Pleads Guilty to $2.6 Million Employment Tax CrimeRead the Press Release
LAS VEGAS – A former airline executive pleaded guilty today to failing to pay over $2.6 million in employment taxes to the IRS.
William Acor (62) pleaded guilty to one count of willful failure to collect and pay over employment taxes. U.S. District Judge Gloria M. Navarro scheduled a sentencing hearing for July 27, 2022.
According to court documents, Acor had been the President and Chief Executive Officer of Vision Airlines Inc., an airline headquartered in North Las Vegas. On behalf of Vision Airlines, Acor was responsible for collecting, accounting for, and paying over to the IRS taxes withheld from employee wages, including federal income tax, Social Security tax, and Medicare tax. In addition, Vision Airlines was responsible for paying the employer matching share of Social Security taxes.
Acor admitted that, from 2014 to 2016, he failed to pay over on behalf of Vision Airlines a total of $2,657,254.75 in combined employee tax withholdings and employer matching share of taxes.
At sentencing, Acor faces a statutory maximum penalty of five years in prison, a term of supervised release, and a fine of $250,000. Acor has also agreed to pay restitution in the amount of $1,667,290.46 to the IRS.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Albert Childress for the IRS-Criminal Investigation (IRS-CI) made the announcement.
This case was investigated by the IRS-CI. Assistant U.S. Attorney Eric Schmale is prosecuting the case.
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Flathead Valley man sentenced to prison for trafficking heroin, illegal possession of firearmRead the Press Release
MISSOULA — A Kalispell man who admitted to trafficking heroin and to illegal possession a firearm and ammunition was sentenced today to five years in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Joseph Daniel Fox, 29, pleaded guilty in December 2021, to possession with intent to distribute heroin and to prohibited person in possession of firearms and ammunition.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that the Flathead County Sheriff’s Office had several cases involving Fox in which information indicated he was distributing drugs in the Flathead Valley and possessed firearms. Law enforcement learned from several sources that they had purchased heroin from Fox in 2019 and 2020. A search warrant executed on Fox’s Facebook account provided numerous messages where Fox offered heroin for sale and discussed prices. In February 2019, a search warrant was executed on Fox’s residence as part of a burglary investigation. Officers located marijuana, a digital scale, two firearms, methamphetamine and jewel baggies. Fox admitted to using marijuana and to possessing the guns and meth in his residence.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Flathead County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI’s Montana Regional Violent Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Five Men Plead Guilty to Firearm Charges Stemming from Murder and Arson SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that five men have pleaded guilty in Bridgeport federal court to firearm charges stemming from a plan to murder an individual and set fire to the Bridgeport business where he worked.
The following five individuals pleaded guilty to possession of a firearm by a convicted felon:
DOMINICK GONZALEZ, also known as “Dom,” 31, of Bridgeport
LUIS MERCADO, also known as “Pops,” 55, of Bridgeport
GEORGE RIVERA, also known as “Pito,” 33, of Danbury
JASON SCOTT, also known as “Hood,” 39, of Bridgeport
LUIS MEJIAS, also known as “Kermit,” 35, of WaterburyMercado, Rivera and Mejias pleaded guilty on March 25, and Scott pleaded guilty yesterday. Gonzalez pleaded guilty to the offense, and also to a charge of conspiracy to commit arson, on May 4, 2021.
According to court documents and statements made in court, in early morning hours of April 2, 2018, Bridgeport Police patrolling the west side of Bridgeport attempted to stop a car that was operating with unlit taillights. The car fled from police and, during the police pursuit, officers observed several items being thrown from its windows. After the car stopped several blocks away, officers arrested both Mercado, who was driving the car, and Gonzalez, and recovered two loaded handguns and a quantity of marijuana that had been thrown from the car. A search of the car also revealed a black ski mask, a pair of binoculars, and a container of gasoline. The investigation revealed that Mercado, Gonzalez, Rivera, Scott and Mejias were involved in a plan to murder an individual and set fire to the Wood Avenue Body Shop in Bridgeport where the individual worked.
Rivera, Scott and Mejias were arrested later that morning at a hotel in Milford. A search of a hotel room revealed a loaded Smith and Wesson model M&P 15-22 caliber rifle, a loaded Taurus “Judge” revolver, a loaded Anderson Manufacturing AR 15 multi-caliber rifle, a loaded 12-gauge shotgun, additional ammunition, brass knuckles, binoculars, gloves and a knit mask. Investigators also located a seized packaged heroin, ecstasy pills, marijuana, a digital scale and other items in the room, and ammunition and shotgun shells in the trunk of their car.
Each defendant has a criminal history that includes multiple felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The charge of unlawful possession of a firearm by a felon carries a maximum term of imprisonment of 10 years. The five defendants are detained while awaiting sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport and Milford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Karen L. Peck.
Fentanyl Pill Dealer Sentenced to 5 Years in PrisonRead the Press Release
FRESNO, Calif. — Jonathon Cortez, 24, of Fresno, was sentenced today to five years in prison for conspiring to distribute hundreds of fentanyl pills, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2020, federal and local law enforcement officers with the Fentanyl Overdose Resolution Team were investigating Cortez’s associate for dealing fentanyl pills. On Aug. 24, 2020, officers searched that associate’s car, person, and residence and found hundreds of fentanyl pills made to look like oxycodone pills with an “M” stamped on one side and a “30” on the other. Further investigation revealed that Cortez had been supplying those fentanyl pills. On Dec. 14, 2021, Cortez pleaded guilty to conspiracy to distribute over 40 grams of fentanyl.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Felon Sentenced to 8 Years in Prison for Illegally Possessing Firearms and AmmunitionRead the Press Release
A felon and known gang member was sentenced Tuesday in federal court for illegally possessing firearms and ammunition, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Ricky Laron Shannon, 35, of Tulsa, to eight years in federal prison followed by three years of supervised release.
“The Tulsa Police Department apprehended Ricky Shannon for illegally possessing two firearms following multiple felony drug and larceny convictions,” said U.S. Attorney Clint Johnson. “Guns in the hands of felons is a recipe for violence. The U.S. Attorney’s Office, Tulsa Police Department and the ATF will continue to use every law enforcement resource available to hold violent criminals accountable and reduce gun crime in neighborhoods across Tulsa.”
At a Sept. 29, 2021, hearing, Shannon pleaded guilty to two counts of being a felon in possession of a firearm and ammunition.
Shannon admitted that on June 11, 2021, he possessed a Glock 30 .45 caliber pistol and 28 rounds of ammunition. He further admitted that on Aug.13, 2021, he possessed a different Glock 30 and 27 rounds of ammunition.
The first count stems from a traffic stop on June 11, 2021. According to an initial criminal complaint and affidavit filed in the case, Tulsa Police officers observed Shannon commit several traffic violations. Officers then pulled behind his vehicle and activated lights and sirens. The defendant continued forward slowly but did not initially yield to law enforcement. An officer observed Shannon make distinct reaching movements with his right hand toward the passenger’s side of the vehicle. He also noted that an object appeared to be in the defendant’s hand as he continued to drive forward slowly but erratically. Based on training and experience, the officer suspected the defendant might be trying to hide something before coming to a stop. Officers also noted Shannon was a felon and certified 107 Hoover gang member. During the stop, officers recovered a Glock 30 .45 caliber semi-automatic pistol loaded with a high capacity magazine.
Later on Aug. 13, 2021, Shannon was contacted by authorities and arrested based on a federal warrant stemming from his June 11, 2021 traffic stop. Officers found a different Glock 30 underneath the driver’s seat of the car along with a high capacity magazine and 27 rounds of ammunition. The firearm was both magazine and chamber loaded.
The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorneys John E. Brasher and Mark R. Morgan prosecuted the case.
This case is being prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as those responsible as the “source” of the firearms to prohibited persons. The initiative was named in memory of Tulsa Police Sergeant Craig Johnson. Sgt. Johnson’s badge number, 2150, was selected for the initiative as a way to honor his life and his commitment to the Tulsa community.
Felon Sentenced to 4.5 Years in Prison for Illegally Possessing Firearms and Probation ViolationRead the Press Release
FRESNO, Calif. — Raymond Matthew Vance, 30, of Turlock and Fresno, was sentenced Monday by U.S. District Judge Dale A. Drozd to four years and six months in prison for being a felon in possession of a firearm and for violating the terms of his federal probation, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 4, 2020, Vance sold two firearms to an individual and two days later sold an additional firearm. Vance was previously convicted of being a felon in possession of a firearm in the Eastern District of California in 2019, and was serving a probationary sentence for that offense at the time that he possessed the firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Turlock Police Department, the Modesto Police Department, the Tracy Police Department, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Grand Jury Indicts Rapids Theatre Owner and Associate for Defrauding the Economic Injury Disaster Loan and Paycheck Protection Programs Out of More Than $750,000Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging John L. Hutchins, 68, of Lewiston, NY, and Roberto Soliman, 39, of Niagara Falls, NY, with conspiracy to commit wire fraud and bank fraud. In addition, defendant Hutchins is charged with making a false statement and defendant Soliman is charged with money laundering. The charges carry a maximum penalty of 30 years in prison.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that the indictment charges Hutchins and Soliman with filing fraudulent loan applications under both the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). The loans available for these programs were designed to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES Act). The defendants applied for loans under the following companies owned by defendant Hutchins:
• Rapids Theatre Niagara Falls, USA, Inc.
• 1711 Main, LLC
• Bear Creek Entertainment, LLC
• Hutch Enterprises, LLC
• The Hutchins Agency, LLC
• CWE Entertainment, Corp. (owned by defendant Soliman)Between March and August 2020, Hutchins and Soliman received four Economic Injury Disaster Loans totaling $749,500.00. In support of each of the loans, Hutchins and Soliman submitted false revenue and expense figures for the businesses on the loan applications. Hutchins and Soliman used the loan funding for their own personal expenses, such as payments for residential properties in North Tonawanda, NY, and Lewiston, NY, a 2020 BMW, a 2020 Cadillac, homeowner association fees on a Florida condominium, and payments to relatives.
In addition, Hutchins and Soliman applied for and received a Paycheck Protection Program loan totaling $74,838.
In November 2020, Hutchins is accused of making a false statement to a Special Agent of the Federal Bureau of Investigation and to an Investigator of the United States Attorney's Office, falsely denying applying for, or authorizing anyone to apply for, any Economic Injury Disaster Loans or Paycheck Protection Program loans, with the possible exception of one PPP loan for Rapids Theater.
Soliman is also accused of money laundering for using the fraudulent loan proceeds to pay personal expenses.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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District Heights Drug Dealer Pleads Guilty to Federal Charges for Illegal Possession of a .357 Caliber Machinegun and for Cocaine DistributionRead the Press Release
Greenbelt, Maryland – Larry Clinton Proctor, age 33, of District Heights, Maryland, pleaded guilty today to federal charges of possession with intent to distribute crack cocaine and cocaine, and to illegal possession of a machinegun.
The guilty plea 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; Chief Marcus Jones of the Montgomery County Police Department; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Proctor’s guilty plea, between May 13, 2021 and June 24, 2021, law enforcement arranged four controlled purchases of a total of approximately 194 grams of crack cocaine from Proctor. On each occasion, Proctor confirmed the amount of the purchase and the meeting time and location. At the direction of law enforcement, the person conducting the buys would meet with Proctor, obtain the narcotics, pay Proctor, then leave the area.
As detailed in his plea agreement, after the controlled buy on June 24, 2021, law enforcement stopped Proctor’s vehicle and Proctor was arrested. The serial numbers of the cash recovered from Proctor’s vehicle matched the serial numbers of the pre-recorded funds used by law enforcement in the drug transaction with Proctor.
A search warrant was also executed at Proctor’s residence on June 24, 2021. Law enforcement recovered 27 firearms from Proctor’s home, including a .357 caliber machinegun with an obliterated serial number and a 3D printed switch, which made the firearm fully automatic. The other guns recovered included: two 12-gauge semi-automatic shotguns; a .357 caliber semi-automatic pistol; three .44 caliber revolvers; a 9mm semi-automatic pistol; five .45 caliber semi-automatic pistols—two with obliterated serial numbers; two 7.62x25 caliber semi-automatic pistols; a .45 caliber/.410 gauge caliber revolver; two .500 caliber revolver; three 7.62x39mm caliber semi-automatic pistols—one with an obliterated serial number; a.22LR caliber semi-automatic pistol; two .50 caliber semi-automatic pistols; a .308 caliber semi-automatic pistol with an obliterated serial number; and two firearms silencers. In addition, law enforcement recovered approximately 1,358 rounds of ammunition; multiple high-capacity magazines; a tactical scope; speed loaders; two body armor vests; other firearms parts and accessories; and a digital scale with cocaine residue.
A gold Mercedes sedan was parked in front of Proctor’s home during the search. A canine unit performed a scan of the Mercedes and provided a positive alert on the vehicle. Law enforcement subsequently obtained and on June 30, 2021, executed, a search warrant on the Mercedes. Approximately 351 grams of cocaine and approximately 75 grams of crack cocaine was found in the car.
Proctor admitted that he possessed the crack cocaine and cocaine with intent to distribute it and that he possessed the machinegun and other firearms to facilitate his drug distribution.
Proctor faces a mandatory minimum sentence of five years in prison and a maximum of 40 years in federal prison for possession with intent to distribute controlled substances and a maximum of 10 years in federal prison for unlawful possession of a machinegun. U.S. District Judge Paul W. Grimm has scheduled sentencing for September 16, 2022 at 9:30 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI, the Montgomery County Police Department, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Jared Engelking, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Daytona Beach Man Sentenced to 16 Years in PrisonRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Kenneth Douglas (24, Daytona Beach), a/k/a “One Way,” to 16 years in federal prison followed for conspiracy to distribute 50 grams or more of methamphetamine. Douglas had pleaded guilty on October 7, 2021.
According to court documents, beginning on March 1, 2021, and continuing through March 24, 2021, Douglas and a co-defendant conspired with each other to distribute 50 grams or more of methamphetamine. During the investigation, an undercover law enforcement officer purchased controlled substances from Douglas and his co-defendant, who Douglas had been supplying. Douglas was held responsible for more than 1.4 kilograms of methamphetamine that he had conspired to distribute in the Brevard and Volusia County areas.
On May 17, 2021, agents with the Drug Enforcement Administration executed a search warrant at Douglas’s residence and located fentanyl, four digital scales, ammunition, and a stolen Glock 9mm pistol. Douglas fled from the residence on foot but was quickly apprehended by pursuing agents.
Douglas’s co-defendant, Tom Thompson, a/k/a “China,” previously pleaded guilty for his role in this case. On December 27, 2021, Thompson was sentenced to 11 years and 4 months in federal prison.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Cocoa Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez.
Criminal Chief for the Eastern District of Washington Selected as YWCA Spokane Woman of Achievement Award HonoreeRead the Press Release
Spokane, Washington – United States Attorney Vanessa R. Waldref recognized and congratulated Criminal Chief and Assistant United States Attorney (AUSA) Alison L. Gregoire, who was honored at YWCA’s Annual Women of Achievement Awards Ceremony Luncheon on March 24, 2022.
In honoring AUSA Gregoire, YWCA Spokane emphasized, “Alison Gregoire is the first woman to serve as criminal chief for the Eastern District of Washington United States Attorney’s Office. Alison was selected for this role because of her exemplary track record of serving at-risk populations, especially victims of crime in Indian Country. Alison has handled extremely difficult cases and worked closely with victims of crime – including Native American women and women from diverse backgrounds – to empower women to tell their stories and seek justice against the individuals who perpetrated violence against them.”
YWCA Spokane added that AUSA Gregoire’s record for government service began years prior to joining the United States Attorney’s Office. “Alison is also a Major in the United States Army Reserves, where she has served since leaving active duty in 2011. In her role as a leader in the U.S. Army, Alison has served as a senior defense counsel and supervised trial defense for soldiers pending separation from the armed forces. She has also served as a professor of criminal law where she has trained judge advocates in trial advocacy techniques. Alison’s superb trial skills and close connections with victims makes her an incredible advocate within the U.S. Army and within the U.S. Attorney’s Office where she works for justice and equal treatment of all individuals under the law.”
U.S. Attorney Waldref echoed YWCA’s remarks. “For many years, AUSA Gregoire worked tirelessly as the Indian Country Coordinator and Project Safe Childhood Coordinator for the Eastern District of Washington. She is a true leader and plays a critical role in our mission of building stronger and safer communities for everyone.” U.S. Attorney Waldref continued, “AUSA Gregoire is a woman of incredible integrity and honor, driven by a mission-first attitude to serve her country and support her colleagues to do their best work and pursue justice.”
U.S. Attorney Waldref also recognized AUSA Gregoire for her induction into the prestigious American College of Trial Lawyers earlier this year. “AUSA Gregoire is one of a handful of attorneys from the Spokane area to receive this honor. I am grateful that AUSA Gregoire’s tremendous efforts on behalf of victims of violent crime are being recognized both by the American College of Trial Lawyers and the YWCA. I am honored to have Alison Gregoire serve as the Criminal Chief for the Eastern District of Washington.”
Each year, YWCA recognizes women in the Spokane Community who “embody YWCA Spokane’s mission of eliminating racism, empowering women, and promoting peace, justice, freedom, and dignity for all.” Eight women were honored at YWCA’s award luncheon on March 24, 2022. YWCA Spokane emphasized that the selected honorees, including AUSA Gregoire, “give generously of themselves to make Spokane a better place for all.”
Additional information regarding the 2022 YWCA Women of Achievement Award Honorees is available at https://ywcaspokane.org/woa2022honorees/.
Convicted Felon Sentenced to Federal Prison for Illegal Possession of AmmunitionRead the Press Release
Memphis, TN- Terry Pegues, 27, has been sentenced to 96 months in federal prison for being a convicted felon in possession of ammunition. Joseph C. Murphy Jr., United States Attorney, announced the sentence today.
According to information presented in court, on May 28, 2019, officers with the Memphis Police Department responded to a “shots fired” call on Lenow Park Drive. As officers arrived on the scene, they were informed by several individuals that they had been robbed by "Lil Terry" aka Terry Pegues. The victims advised Pegues pointed an AK assault-style rifle and demanded money. As the victims disbursed their money, one of them pulled a gun and fired at the defendant. Pegues returned fire and fled. Investigators recovered five spent 5.56 shell casings at the scene which were attributed to the gun fired by Pegues. No injuries were reported.
On July 6, 2021, Pegues pled guilty.
In 2014, Pegues was previously sentenced to three years’ incarceration for two robberies in state court. In 2017, he was sentenced in federal court to 37 months followed by three years supervised released for being a felon in possession of a firearm. On November 1, 2019, United States District Judge Samuel H. Mays sentenced Pegues to 24 months in prison for violating the terms of his supervised release to be served consecutive to any sentence he received in the new case. As a result of his felony convictions, Pegues is prohibited by federal law from possessing firearms and ammunition.
On March 10, 2022, United States District Judge John T. Fowlkes, Jr., sentenced Pegues to 96 months in federal prison to be followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods Task Force. The PSN initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Special Assistant United States Attorney Sam Winnig and Assistant United States Attorney Raney Irwin prosecuted this case. SAUSA Winnig was assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
###Cincinnati man sentenced to three years in prison for creating fake ID documents claiming he was federal employee & agentRead the Press Release
A Cincinnati man was sentenced in U.S. District Court today to 36 months in prison for crimes related to creating fake credentials to pretend to be a member of law enforcement and a federal employee.
David Lomache, 62, pleaded guilty in August 2021 to making fake IDs claiming he was a Special Agent with Homeland Security and an employee of the Defense Logistics Agency, which is the Department of Defense’s combat logistics support agency.
“As today’s sentence reflects, Lomache’s offense is much more serious than merely creating fake identification documents for self-enrichment,” said United States Attorney Kenneth L. Parker. “The defendant was not just collecting badges and making ID cards for his personal amusement. He was amassing the tools he needed to impersonate law enforcement and federal government employees. Given that many of his chosen identities focused on search, rescue, recovery, and seizure, Lomache’s apparent designs include the threat of trespass or worse under the guise of government authority.”
Lomache pleaded guilty in August 2021 to fraud in connection with identification documents.
According to the court documents, the defendant used fake credentials to acquire badges intended only for legitimate federal officers.
Lomache fraudulently obtained a United States Federal Contractor badge in order to impersonate a civilian contractor technician for the Defense Logistics Agency.
In January 2021, Lomache produced fake identification documents for both the Defense Logistics Agency and for Homeland Security Investigations (“HSI”). He listed his titles on the fraudulent documents as “Civilian Contractor Technician” and “Homeland Security Special Agent.”
In February 2021, the defendant posted a picture of himself on social media in which he’s wearing a cap with “K-9” printed on it with a gold badge on the side. In the comments, Lomache claimed to be a “CERT member…K9 search & rescue urban/mountain.”
When investigators executed a search warrant as part of this investigation, they discovered Lomache in possession of numerous law enforcement badges, patches and clothing items, as well as fake identification cards, handcuffs and various knives.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; James C. Harris III, Acting Special Agent in Charge, Homeland Security Investigations; and Hamilton County Sheriff Charmaine McGuffey announced the sentence imposed today by U.S. District Judge Matthew McFarland. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case.
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Chula Vista Man Sentenced for Distributing Fentanyl-Laced Pills that Caused Overdose Death of 20-Year-OldRead the Press Release
Assistant U. S. Attorney Jennifer E. McCollough (619) 546-8773
NEWS RELEASE SUMMARY – March 29, 2022
SAN DIEGO –Jonathan Mefford was sentenced in federal court today to 190 months in prison for selling fentanyl-laced pills that caused the death of a 20-year-old Chula Vista man, identified in court records as J.P., in October of 2018, and for distributing multi-pound level quantities of methamphetamine in Kansas.
Mefford previously admitted that he sold the pills to J.P. on October 29, 2018, and that he knew these pills contained fentanyl. Mefford additionally admitted that J.P.’s overdose and death was caused by the fentanyl-laced pills that J.P. purchased from Mefford. Finally, Mefford admitted that he transported multi-pound level quantities of methamphetamine from San Diego to Kansas. Once in Kansas, Mefford distributed the methamphetamine to various individuals.
Detectives from the Chula Vista Narcotics Enforcement Team in concert with Special Agents from the Drug Enforcement Administration and Homeland Security led the investigation into J.P.’s death and quickly identified Mefford as the source of the fatal pills. According to the sentencing memorandum, Mefford offered counterfeit prescription pills for sale through social media platforms and sold up to 500 pills. The sale of those pills not only led to the death of J.P., but another overdose where the victim fortunately survived. Notably, Mefford continued selling counterfeit pills for months following both overdoses.
“The epidemic of counterfeit fentanyl-laced pills continues to claim lives in our community,” said U.S. Attorney Randy Grossman. “To be clear: If you are a drug dealer selling pills, and those pills result in death, you will be held accountable for that death.” Grossman praised the prosecution team as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from the Chula Vista Narcotics Enforcement Team for their excellent work on this case.
“Today’s sentencing of Jonathan Mefford serves as a warning to anyone selling fentanyl-laced pills that there will be severe consequences if the pills you sell cause a death,” said DEA Special Agent in Charge Shelly S. Howe. “One pill can kill. One pill can devastate a family. And one pill that causes a death can send you to prison for 15 years. DEA has resources available about the One Pill Can Kill campaign at www.dea.gov/onepill.”
“This 15-year sentence highlights the success of HSI’s collaborative efforts with our federal and local law enforcement partners in combating the opioid epidemic here and across the country,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to holding those accountable who recklessly push this poison into our communities.”
“This case serves as a great example of why the Chula Vista Police Department works with our partners at the Drug Enforcement Administration and the U.S. Attorney’s Office, by bringing law enforcement agencies together, to hold drug dealers accountable and help keep dangerous drugs like fentanyl out of our community,” said Chula Vista Police Department Chief Roxana Kennedy. “This investigation sends a strong message to drug dealers operating in Chula Vista and provides some measure of justice for the victim and his family.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into J.P.’s death
DEFENDANTS Case Number 20cr253-CAB
Michael Mefford Age: 24 Chula Vista, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)
Conspiracy to Distribute Methamphetamine – Title 21, U.S.C., Sections 841(a) and 846
Maximum penalty: Life in prison; $10 million fine
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Chula Vista Police Department