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29 March 2022
Brooklyn Man Pleads Guilty to Insider Trading and Tax EvasionRead the Press Release
Jason Peltz pleaded guilty today in federal court in Brooklyn to securities fraud and tax evasion in connection with an insider trading scheme in which Peltz executed securities transactions based on material nonpublic information (MNPI) from a company insider. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, Peltz faces up to 25 years in prison, forfeiture of his ill-gotten gains, and restitution to the Internal Revenue Service (IRS) of over $1 million.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, IRS Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“With today’s plea, Peltz admitted to trading on material nonpublic information about a publicly traded company to line his own pockets and also to lying about his income to avoid paying taxes on a substantial tax liability,” stated United States Attorney Peace. “This Office will vigorously prosecute traders who seek to cheat the system, harm the investing public and undermine the integrity of our financial markets. We will hold accountable those who lie to avoid paying their fair share of taxes.”
Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.
“Plain and simple. It's illegal to use non-public information to buy and sell stocks. Doing so manipulates the markets and can have detrimental effects on the wallets of individuals who play by the rules. But this defendant didn't stop there, he made significant financial gains and then claimed that he had no income in an effort to blatantly evade taxes,” stated IRS-CI Special Agent-in-Charge Fattorusso.
In February 2016, Peltz obtained MNPI from an insider at Ferro Corporation (“Ferro”) about a potential takeover offer (the “Ferro Takeover Bid”). Peltz used that MNPI to:
- Profitably trade in Ferro in the brokerage accounts of two co-conspirators,
- Tip other individuals, each of whom also profitably traded on MNPI about the Ferro Takeover Bid, and
- Tip a reporter, who wrote an article making public the news of the Ferro Takeover Bid, which resulted in an increase in the price of Ferro’s stock.
Peltz and the Ferro insider each received significant financial benefits from other co-conspirators shortly after Peltz traded in those co-conspirators’ brokerage accounts, and Peltz continued to receive large payments from co-conspirators, as well as other benefits, as payment for his trading activity. Peltz directed that these payments be made to corporate and nominee bank and credit card accounts, in order to conceal his income from the IRS. Despite receiving such payments, in 2017 Peltz falsely swore under penalty of perjury to the IRS that he had been unemployed since December 2015 and had no income.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Kaitlin T. Farrell, Sarah M. Evans, and Special Assistant United States Attorney Barry O’Connell are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Asset Recovery Section.
The Defendant:
JASON PELTZ
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-154 (NGG)
Brooklyn Man Convicted of Robbing Chanel Store in SohoRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ERIC SPENCER, was convicted yesterday for his participation in a robbery of a luxury retail store in New York, New York on February 2, 2021. SPENCER was convicted after a one-week jury trial before U.S. District Judge Gregory H. Woods.
As reflected in the Indictment, public filings, and the evidence presented at trial:
On February 2, 2021, SPENCER robbed a Chanel store located in the SoHo neighborhood in Manhattan. SPENCER and three other co-conspirators entered the store and began ripping handbags off the cables that secured them to store displays. When an armed security guard confronted SPENCER, he reached into his waistband and intimated he had a firearm, causing store personnel to back off as the perpetrators made off with over $200,000 in luxury goods.
In the days after the robbery, SPENCER took photos of the stolen bags on his phone, bragged on his social media account about acquiring so many bags he “COULD OPEN A SMALL BOUTIQUE,” and sent text messages confirming he had sold the stolen merchandise.
Spencer fleeing the scene of the SoHo store robbery with stolen merchandise in his hands
A photo taken by Spencer of a bag stolen in the robbery* * *
SPENCER, 30, of Brooklyn, New York, was convicted by a jury of one count of conspiracy to commit Hobbs Act robbery and one count of Hobbs Act robbery. The maximum potential sentence for each count is 20 years in prison and is provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge. Sentencing is scheduled before Judge Woods for June 30, 2022.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and New York City Police Department.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jane Y. Chong, Abigail S. Kurland, and Matthew R. Shahabian are in charge of the prosecution.
Brooklyn Company Admits Price Gouging KN95 Masks During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A New York company admitted its role in price gouging a chain of New Jersey grocery stores in connection with the sale of KN95 masks during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced today.
Milk & Honey Ventures LLC (MHV), a company based in Brooklyn, New York, pleaded guilty by videoconference before U.S. Magistrate Judge Jessica S. Allen on March 28, 2022, to an information charging it with price gouging in violation of the Defense Production Act.
According to documents filed in this case and statements made in court:
In March 2020, MHV and two partners purchased 250,000 KN95 filtering facepiece respirators from a foreign manufacturer. MHV and one of those partners then sold 100,000 of those masks to a chain of New Jersey grocery stores at prices in excess of prevailing market prices. MHV sold the masks at a price of $5.25 per mask, which amounted to a markup of more than 400 percent from its acquisition cost. Prior to the spread of COVID-19, MHV had no history of selling personal protective equipment.
A violation of the Defense Production Act carries a maximum fine of $200,000, or twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing for MHV is scheduled for Aug. 9, 2022.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Peter Fitzhugh in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Government Fraud Unit in Newark and Nicholas P. Grippo, Chief of the Criminal Division in Newark.
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.
Bridgeport Man Charged with Gun Trafficking OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, announced that BRANNON WINSTON, 22, of Bridgeport, was arrested today on firearm trafficking charges.
Following his arrest, Winston appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was released on a $100,000 bond.
As alleged in court documents and statements made in court, Winston purchased firearms in Georgia, where he resided at times, and provided them to customers in Connecticut. Winston personally purchased at least 18 firearms in Georgia, and he had others purchase additional firearms on his behalf. The investigation, which included gun recoveries after shooting incidents in Bridgeport, revealed that some of the firearms were provided to members of the East End and PT Barnum gangs in Bridgeport.
On March 16, 2022, a federal grand jury in Bridgeport returned an indictment charging Winston with one count of engaging in the business of dealing in firearms without a license, which carries a maximum term of imprisonment of five years, and one count crossing state lines with the intent to engage unlicensed dealing of firearms, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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.
Berkeley County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Caleb Sinclair, of Martinsburg, West Virginia, was sentenced today to time served for a drug charge, United States Attorney William Ihlenfeld announced.
Sinclair, 35, pleaded guilty in November 2021 to one count of “Conspiracy to Distribute Fentanyl and Heroin and Cocaine Base.” Sinclair admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Bakersfield Resident Sentenced to over 3 Years in Prison for Transporting over 100 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — Randal Jason Newell, 42, of Bakersfield, was sentenced today to three years and three months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 5, 2020, Newell drove from Bakersfield to Mexico to obtain and smuggle narcotics from Mexico to Bakersfield, which he agreed to do for $7,000. On Dec. 7, 2020, Newell drove to the San Ysidro port of entry crossing from Mexico into the United States. Law enforcement officers inspected Newell’s vehicle at the border crossing and discovered approximately 98 packages containing approximately 111 pounds of methamphetamine concealed in the vehicle’s gas tank, the rear compartment wall, the driver- and passenger-side exterior frame pillars, and underneath the floor.
On April 8, 2021, Newell and eight other defendants were charged in three related indictments for trafficking and purchasing to sell methamphetamine from a conspiracy orchestrated by Omar Alberto Navarro, 38, of Arvin. The other defendants are: Daniel Armendariz Mercado, 42; David Delgado Gonzalez, 38; Miguel Angel Martinez, 27; Amayrani Jared Arreguin, 25; and Yvette Gallegos, 23, all of Bakersfield; Lizette Mendez, 32, of Delano; and James Scott Gordon, 47, of Chico. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, Customs and Border Protection, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Federal Bureau of Investigation, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Sheriff’s Office, the Shafter Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the California Department of Motor Vehicles, and the California Highway Patrol. Assistant U.S. Attorneys Christopher D. Baker and Laura J. Berger are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Ambulance Company Pays over $600K to Settle Allegations it Submitted Improper ClaimsRead the Press Release
U.S. Attorney Leonard C Boyle, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, and Connecticut Attorney General William Tong today announced that AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INC. (“AMR”), has entered into a civil settlement agreement with the federal and state governments and has paid $601,759 to resolve allegations it submitted improper claims to Medicare and Medicaid for ambulance services. AMR is an ambulance company operating in Connecticut.
There are various types of services related to ambulance billing. Advanced Life Support services (“ALS”) include services performed by a paramedic at the scene of an emergency response and in the ambulance. ALS services require a high level of medical monitoring. Basic Life Support services (“BLS”) are lower acuity services that can be performed by an emergency medical technician-basic, or relate to the transport of the patient in the ambulance to a hospital or other medical facility. In several towns in Connecticut, local fire departments provide ALS emergency services when a 911 call is dispatched. AMR is also dispatched to the scene of these calls to provide ambulance transport only (a BLS service). When the fire department and AMR are on the scene together, it is a “joint response.”
The federal and state governments allege that AMR would often bill Medicare and Medicaid for ALS (paramedic) services when it was only providing the BLS (ambulance transport) services.
For claims submitted to Medicare, billing for ALS services in “joint response” situations would have been proper if AMR had a written billing agreement in place with the local fire departments, which it did not during relevant time period. For claims submitted to Connecticut Medicaid, in many cases, both AMR and the local fire departments billed Medicaid for ALS/paramedic services. As a result, Medicaid actually paid twice for the paramedic services, once to the local fire departments and a second time to AMR.
To resolve the governments’ allegations, AMR paid $601,759, which covers claims submitted to the Medicare and Medicaid from January 2014 through December 2019.
AMR also entered into a consent agreement the with the Connecticut Department of Public Health in which they agreed to cease and desist the prohibited conduct and to pay a $25,000 civil penalty to the State of Connecticut.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Connecticut Office of the Attorney General. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and Assistant Attorney General Karla Turekian of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Albuquerque man sentenced to 20 years in federal prison for drug traffickingRead the Press Release
ALBUQERQUE, N.M. – Michael Anthony Hernandez, 46, of Albuquerque, was sentenced in federal court on March 23 to 20 years in prison for possession with intent to distribute methamphetamine and maintaining a drug-involved premises.
Hernandez plead guilty to these offenses on Oct.21, 2021. According to the plea agreement, on Dec. 1, 2020, law enforcement executed search warrants on two of Hernandez’s properties in Bernalillo County, New Mexico and discovered narcotics and other items consistent with packaging narcotics. Specifically, law enforcement discovered more than 12.75 kilograms of methamphetamine, an electric money counter, several scales and bulk currency.
The FBI Violent Crimes Task Force and Bernalillo County Sheriff’s Office Community Action Team investigated this case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program’s operation Atonement. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Assistant U.S. Attorneys Maria Y. Armijo, Randy M. Castellano and Ry Ellison prosecuted this case.
28 March 2022
York Woman Pleads Guilty to Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Melinda Bixler, age 49, of York, Pennsylvania, entered a plea of guilty before Judge Sylvia H. Rambo of the U.S. District Court for the Middle District of Pennsylvania to one count of engaging in monetary transactions in property derived from unlawful activity.
According to United States Attorney John C. Gurganus, Bixler operated two businesses—one a for-profit company called Elder Healthcare Solutions; the other a non-profit company called Adult Care Advocates—providing services to elderly clients who resided in the Middle District of Pennsylvania and elsewhere. Both businesses operated from an office location at 4070 W. Market St. in York, PA.
Bixler purchased a home in York, PA for $685,000 using money that she had obtained through various unlawful means. Bixler obtained a mortgage loan for the purchase of her home by submitting multiple false statements to York Traditions Bank. These false statements included a forged letter from the owners of a business property that Bixler had previously purchased stating that she no longer owed money to the prior owners, when in fact she was still making monthly payments on it. Bixler also obtained a false gift letter from a third party wherein that third party stated that he was gifting Bixler $350,000 from his own personal funds when Bixler actually funneled money to that third party through a series of transactions that disguised the true sources of the funds. One source of these funds was $78,000 that Bixler took from the bank account of M.H., a 94-year-old woman residing at a nursing home in Lancaster County, Pennsylvania. Bixler was then the power of attorney for M.H., and she therefore had access to the elderly client’s bank account.
Bixler agreed to pay a total of $147,882 to three former clients from whom she misappropriated funds; victims M.H, G.E. and E.P. Bixler also agreed to forfeit the property at 4070 W. Market St., along with $129,357.01, the balance in a bank account belonging to Adult Care Advocates. Finally, Bixler agreed to resign her positions with both Elder Healthcare Solutions and Adult Care Advocates.
The case was investigated by Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, York County District Attorney’s Office, York County Area Agency on Aging, and the Pennsylvania Department of Aging, Protective Services Office. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty for this offense under federal law is 10 years’ imprisonment. This charge may also carry a fine and a term of supervised release following imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Woman Sentenced to over 4 Years in Prison for Mail Theft and Bank Fraud Scheme Committed throughout Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Desiree Brianna Bello aka Desiree Sanchez, 28, of Contra Costa County, was sentenced today to four years and nine months in prison for bank fraud and possession of stolen U.S. mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2020, Bello and co-defendant Richard Beldon Waters III, perpetrated a mail theft and bank fraud scheme throughout Northern California. The scheme involved stealing U.S. mail from residential mailboxes and harvesting bankcards, identification documents, financial information, checks, and personally identifiable information (PII) for use in fraudulent activity. Bello used the identification and PII of the mail theft victims to obtain money and property from banks and businesses.
On several occasions, Bello used identification documents and financial instruments of mail theft victims to purchase and lease vehicles from car dealerships. For example, on June 25, 2020, Bello entered a Hyundai dealership in Stockton to lease a new Hyundai Genesis G80 using a stolen identity. She made an initial $7,000 payment with a check in the victim’s name, and also submitted a lease application using the victim’s name, date of birth, California Driver’s License number, and Social Security Number. The dealership ultimately approved the application. Bello was able to drive the new G80, valued at approximately $55,490, off the lot.
Additionally, on two separate occasions in May 2020, Bello knowingly possessed stolen mail. On May 11, 2020, she was arrested in Folsom where she possessed over 300 pieces of stolen mail. Similarly, on May 18, 2020, she was arrested in El Dorado Hills where she possessed five large trash bags of mail that she and her co-schemers had just stolen minutes earlier from a residential complex.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Stockton Police Department, the Folsom Police Department, the Concord Police Department, the Pittsburg Police Department, the El Dorado County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the California Highway Patrol. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Waters pleaded guilty to similar charges in September 2021. He is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on May 23, 2022.
Upshur County man sentenced for carjacking and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Chad C. Newcome, of Rock Cave, West Virginia, was sentenced today to 125 months of incarceration for carjacking and firearms charges, United States Attorney William Ihlenfeld announced.
Newcome, 41, pleaded guilty in October 2021 to one count of “Carjacking” and one count of “Use of Firearm During and in Relation to a Crime of Violence.” Newcome admitted to attempting to steal a 2018 Dodge Ram Truck on March 10, 2021 in Upshur County. Newcome used a 12-gauge shotgun during the carjacking.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the West Virginia State Police, and the Upshur County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
U.S. Attorney Sellinger Announces Creation of Civil Rights DivisionRead the Press Release
NOTE: To see U.S. Attorney Sellinger's announcement, click here.
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today the creation of a Civil Rights Division whose sole focus will be the enforcement of federal civil rights laws in New Jersey. The new division, which will report directly to the U.S. Attorney and the U.S. Attorney’s front office, will enforce both civil and criminal civil rights laws. The division will also engage with local community members, advocacy groups, and other federal and state agencies to protect civil rights. This is the first and largest division in the district’s history to focus entirely on enforcing and protecting civil rights.
“No one should ever be subject to acts of discrimination or hate because of where they are from, what they look like, whom they love, or how they worship,” said U.S. Attorney Sellinger. “Hate crimes and unlawful bias incidents are antithetical to the core principles underlying our democracy, and the U.S. Attorney’s Office will do all it can to combat these threats to constitutional and civil rights. The Department of Justice was founded to protect the civil rights guaranteed by the 13th, 14th, and 15th Amendments. Building on this legacy, I am creating a Civil Rights Division within the U.S. Attorney’s Office, which will focus all its efforts on protecting and upholding the civil rights of those in our community. To that end, I have nearly doubled the number of civil and criminal attorneys who will carry out this important mission – all of whom will work together in this newly created division.”
The U.S. Attorney’s Office’s Civil Rights Division will be led by Division Chief Michael E. Campion. It will combine the Office’s longstanding Civil Rights Unit, which conducted civil enforcement as part of the Office’s Civil Division, with seasoned federal prosecutors from the Office’s Criminal Division, who will focus on federal criminal civil rights prosecutions. By increasing the number of attorneys dedicated to civil rights enforcement and merging civil and criminal civil rights enforcement into one Civil Rights Division, the U.S. Attorney’s Office will be able to prioritize and coordinate protecting and advancing civil rights for all in New Jersey.
The Civil Rights Division will continue the Office’s past efforts – often in partnership with the Justice Department’s Civil Rights Division – in bringing criminal civil rights prosecutions, as well as its efforts in bringing civil enforcement actions involving discrimination, fair housing, fair lending, the rights of institutionalized persons, police misconduct, voting rights, and the rights of veterans and servicemembers. Significant actions taken by the Office to advance civil rights in New Jersey include:
- A consent decree to end unlawful sexual harassment by an Elizabeth landlord who required sex acts in exchange for housing benefits from numerous women and gay or bisexual men; this historic settlement provided for the largest victim compensation fund in the Justice Department’s history of sexual harassment in housing matters;
- A consent decree to end a pattern or practice of Eighth Amendment violations and protects prisoners from sexual abuse by facility staff at the Edna Mahan Correctional Facility for Women.
- A Letter of Findings in the investigation into the Cumberland County Jail for failing to take measures to prevent inmate suicides, including the failure to provide medication to treat opioid use disorder.
- A consent decree to reform the Newark Police Department’s unconstitutional practices.
- Settlement agreements with the Union County and Ocean County Boards of Election under the Americans with Disability Act to ensure that voters with disabilities have access to polling places.
- Guilty pleas by several Paterson Police officers for violating civil rights, using excessive force, and filing false police reports.
- Settlements with several municipalities to end religious discrimination and burdens on the practice of religion resulting from unlawful zoning ordinances and zoning denials regarding mosques, synagogues, and other houses of worship.
- A consent decree with Hudson City Savings Bank to end redlining and pay $27 million to ensure equal lending services to predominantly Black and Hispanic communities.
- A consent decree with New Jersey’s student lending authority to provide damages to servicemembers who were subjected to unlawful default judgments with respect to student loans.
- A settlement with Newark Public Schools to require the district to provide effective English learner services.
Members of the public may report possible civil rights violations through the https://www.justice.gov/usao-nj/civil-rights-enforcement or may call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
Two Armed Robbers Sentenced to over 20 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Jeffrey Davis (24, Tampa) to 24 years in federal prison and Tyee Spike (19, Tampa) to 26 years and 3 months for robbing multiple stores at gunpoint. Spike was sentenced on January 13, 2022, and Davis was sentenced on March 23, 2022. Davis had pleaded guilty on March 4, 2021, and Spike had pleaded guilty on August 12, 2021.
According to court documents, between October 13 and 19, 2020, Davis and Spike committed a series of commercial armed robberies in Tampa, Fishhawk, and Riverview. Firearms were brandished during each robbery. During the first robbery, an individual confronted Spike, and Spike shot him in the stomach. The victim remained hospitalized for 12 days but survived. Prior to the robbery spree, Spike committed a carjacking to obtain the getaway vehicle the men used for the robberies. The robbery spree ended with a high-speed chase, in which the defendants crashed the getaway vehicle before being apprehended. At the time of the defendants’ arrests, their getaway vehicle contained a “list of criminal achievements and/or ambitions,” which itemized various houses and personal possessions, and under the heading “Licks,” included the names and locations of several commercial establishments.
In the year prior to the robbery spree, Spike had been convicted of battery on a law enforcement officer with a deadly weapon, resisting an officer with violence, grand theft motor vehicle, two counts of robbery, and burglary of an unoccupied conveyance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton and former Assistant United States Attorney Natalie Adams.
St. Louis Man Sentenced to 45 Years for Providing Information that Led to Murders and ViolenceRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey sentenced Charles “Man Man” Thompson to 45 years in prison today. The 35-year-old St. Louis resident pleaded guilty in January 2020 to one count of conspiracy to distribute cocaine; three counts of discharging a firearm in furtherance of a drug trafficking crime resulting in death; and one count of discharging a firearm in furtherance of a drug trafficking crime.
According to court documents, Thompson provided information to one or more members of a large-scale cocaine trafficking organization that existed between 2012 and 2016 while Thompson was incarcerated in Missouri state prison. Thompson, who openly associated with and was a member of a group commonly known as the “Blumeyer,” provided information relating to other “Blumeyer” members to this large-scale cocaine trafficking organization, which was a rival to the “Blumeyer.”
Armed with the information provided by Thompson, one or more members of the rival drug trafficking organization committed acts of violence, including murder, against multiple “Blumeyer” members. Thompson provided the information about his fellow “Blumeyer” members in the hope of becoming a significant drug trafficker within the Saint Louis area upon his release from prison. Thompson also expected to be supplied drugs by the rival drug trafficking organization upon release. Through the rival drug trafficking organization’s killing of “Blumeyer” members, Thompson also expected to have a greater ability to spearhead drug trafficking activities within the Saint Louis area.
As a result of information provided by Thompson to one or more members of the rival drug trafficking organization, multiple acts of violence occurred, including, but not limited to: the shootings of Terrell Beasley on July 1, 2013, and August 8, 2013; the shooting of Anthony Anderson on December 23, 2013; the murders of Robert Parker and Clara Walker on December 29, 2013; the murder of Michail Gridiron on January 21, 2014; and the murder of Dion Stovall on March 5, 2014.
After these acts of violence occurred and Thompson was released from prison, Thompson received controlled substances from the rival drug trafficking organization for Thompson to distribute within the Saint Louis area.
“As today’s significant sentence makes clear, you don’t have to be the one who pulls the trigger of a firearm to be a murderer. The acts of Charles Thompson directly contributed to the untimely and unnecessary deaths of many victims,” said United States Attorney Sayler Fleming after today’s sentencing. “I commend the investigative team who worked tirelessly to hold each person involved in these violent acts accountable, including Mr. Thompson. While today’s sentence will not bring back those we have lost or lessen the impact of their injuries, it should send a clear message that anyone’s involvement in violent crime will be pursued to the fullest extent under the law.”
“DEA investigators and our partners are well aware of the connection between drug trafficking and violence,” said Assistant Special Agent in Charge Colin Dickey, head of DEA operations in Eastern Missouri. “But this case shows the absolute depravity of drug traffickers, how little regard they have for human life. We will never stop pursuing these criminals because these lives taken mattered to their families. Stopping drug traffickers in their illegal business really is a matter of life or death.”
This case was investigated by Drug Enforcement Administration; Saint Louis Metropolitan Police Department; Homeland Security Investigations; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation.
Smith County Man Guilty of Child Exploitation ViolationsRead the Press Release
TYLER, Texas – A Tyler man has pleaded guilty to federal child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Daniel Dylan Skipworth, 20, pleaded guilty to transporting a minor to engage in sexual activity today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Skipworth admitted that in April 2021, he transported a 13-year-old he met online from the state of Alabama to his residence in Tyler to commit the offense of sexual abuse of a minor. Skipworth’s conviction is the result of a cooperative effort involving the FBI, Tyler Police Department, and the Smith County District Attorney’s Office, who undertook the investigation after analyzing GPS data associated with the phone of a child who had been reported missing by her foster parents in Alabama.
“Children in our community are safer today than yesterday,” said U.S. Attorney Brit Featherston. “Parents must be aware that dangerous predators lurk behind computer screens in our homes. Like protecting our children who play at the park, we too must take precaution to protect our most vulnerable population in the cyber-world. Law enforcement places protecting children at our highest priority. To those who harm children, we will find you, arrest you, prosecute you and, seek the harshest punishment for you.”
“No child should ever have to go through this, and we will do all that we can to ensure that vulnerable members of our community are protected from those who seek to do them harm,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The defendant will be held accountable for his egregious actions, and we will remain committed to investigating anyone who exploits children.”
“The Smith County District Attorney’s Office is grateful for the cooperation of federal and local law enforcement to protect society and this child victim, while ensuring that the defendant is held accountable as a convicted sex offender,” said Smith County District Attorney Jacob Putman.
Skipworth faces a minimum of 10 years and up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office. In addition, Skipworth will be required to register as a sex offender for the rest of his life.
This case is 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by the Federal Bureau of Investigation Tyler Resident Agency, Tyler Police Department and Smith County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Rockford Man Sentenced to Six Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
ROCKFORD — A Rockford man has been sentenced to six years in federal prison for illegally possessing loaded handguns.
JAMES PETERSON, 41, last year illegally possessed a .380-caliber semi-automatic handgun and a .45-caliber handgun. As a previously convicted felon, Peterson was not lawfully allowed to possess a firearm.
U.S. District Judge Iain D. Johnston imposed the prison sentence Friday after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Substantial assistance was provided by the Illinois State Police’s State Line Area Narcotics Team (SLANT), the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Drug Enforcement Administration.
The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Randolph County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Edwin Mack Taylor, of Elkins, West Virginia, was sentenced today to 86 months of incarceration for selling methamphetamine, United States Attorney William Ihlenfeld announced.
Taylor, 54, pleaded guilty in October 2021 to one count of “Distribution of Methamphetamine.” Taylor sold methamphetamine, also known as “crystal meth” and “ice,” in January 2020 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug Task Force investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Philadelphia Psychiatrist to Pay $3 Million to Resolve Allegations of False Workers’ Compensation ClaimsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Dr. Harry Doyle and his wife, Sonya Doyle, of Philadelphia, PA, have agreed to pay a total of $3 million to resolve alleged violations of the False Claims Act. The alleged violations include submitting false billing to the U.S. Department of Labor Office of Worker’s Compensation Programs (OWCP) for psychiatric services that were not provided, as well as upcoding and double-billing patient claims. As part of the settlement, the Doyles have also agreed to be voluntarily excluded from federal healthcare programs for a period of 25 years. This is the largest recovery against a single psychiatrist in the history of the OWCP.
Dr. Doyle was a psychiatrist to whom an attorney referred patients receiving federal workers’ compensation benefits authorized under the Federal Employees Compensation Act. Many of his patients received OWCP benefits because of a physical injury, and then were later approved for mental health services that were purportedly needed because of the initial physical injury. Dr. Doyle’s wife, Sonya Doyle, was his office assistant, and the sole employee of Dr. Doyle’s mental health practice.
A multi-agency investigation of Dr. Doyle’s practice revealed that from January 2013 through April 2021, the Doyles allegedly billed for services not rendered, some of which occurred when the Doyles were not physically present in the United States. The Doyles allegedly billed for cancelled and no-show appointments as if they had actually occurred, “upcoded” or billed for a higher level of service than what was actually provided including billing for more therapy time than spent with the patient, and also double-billed the patient and OWCP for initial consultations. Dr. Doyle allegedly falsified treatment records to reflect the false billing that was submitted.
“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it, and punish it,” said U.S. Attorney Williams. “The alleged falsified documentation Dr. Doyle created and submitted to OWCP compromised the agency’s ability to monitor claimant care and ensure that injured federal workers received the services they needed.”
“Dr. Harry Doyle and his wife Sonya Doyle entered into a settlement agreement to resolve alleged violations of the False Claims Act. The alleged violations involve the submission of potentially fraudulent billing to the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP) by Dr. Doyle’s practice. Today’s significant monetary settlement of $3 million and agreement to voluntary exclusion from federal healthcare programs for a period of 25 years will serve as a deterrent to those contemplating committing fraudulent billing schemes. The U.S. Department of Labor, Office of Inspector General will continue working with our law enforcement partners and OWCP to protect the integrity of DOL’s benefits programs,” stated Special Agent-In-Charge Syreeta Scott, Philadelphia Region, U. S. Department of Labor Office of Inspector General.”
“Abuse of OWCP will not be tolerated and is a drain on the United States Postal Service’s finances,” said Imari R. Niles, Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General. “USPS OIG is dedicated to investigating and eradicating this type of conduct.”
“Fraudulent healthcare billing practices compromise the federal government’s ability to provide quality benefits to deserving individuals,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG is pleased to have worked together with its law enforcement partners to stop this couple from continuing their fraudulent practices.”
This case was investigated by the Department of Labor Office of Inspector General, the United States Postal Service Office of Inspector General, and Department of Veterans Affairs Office of Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorney Viveca D. Parker and Auditor Dawn Wiggins.
The civil claims resolved by this settlement are allegations only and there has been no determination of liability.
Palmyra, Missouri, Man Sentenced to 120 Months in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. – A Palmyra, Missouri, man, Charles Barger, 47, of the 200 block of East Ross Street, was sentenced on March 25, 2022, to 120 months’ imprisonment for possession of methamphetamine with intent to distribute, to be followed by eight years of supervised release.
At the sentencing hearing, the government presented evidence to U.S. District Judge Sue Myerscough that on or about September 4, 2020, Mr. Barger knowingly and intentionally possessed with intent to distribute five grams or more of methamphetamine (actual), a Schedule II controlled substance in Quincy, Illinois.
Mr. Barger was indicted in October 2020 and pled guilty in August 2021. He has been in the custody of the U.S. Marshals Service since November 2020 and previously was in state custody following his arrest in September 2020.
The statutory penalties for possession of methamphetamine with intent to distribute are up to life imprisonment, up to an $8,000,000 fine, and up to eight years of supervised release.
The West Central Illinois Task Force and Quincy Police Department investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
Orlando Man Pleads Guilty in Conspiracy to Receiving $570,000 Cocaine ShipmentRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Luis Raul Perez Rodriguez (50, Orlando) today pleaded guilty to conspiracy to possess with the intent to distribute controlled substances. Perez Rodriguez faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on January 21, 2022, Perez Rodriguez had arranged to receive a shipment of three parcels containing 19 kilograms of cocaine, valued at an estimated $570,000, through a delivery service from an address in Puerto Rico to an apartment in Orlando. On January 19, 2022, security specialists at the delivery service company had detected the cocaine shipment and reported the parcels to the Drug Enforcement Administration. On January 21, 2022, an undercover officer working with the DEA posed as a delivery driver and delivered a fake package to the address on the shipment. Perez Rodriguez was in the parking lot of his apartment and identified himself with the fake name associated with the parcels and showed the delivery driver that he was tracking the progress of the shipment on his phone. Perez Rodriguez was apprehended as the driver loaded two out of the three packages into Perez Rodriguez’s vehicle. Additional investigation linked Perez Rodriguez to a series of cocaine shipments from Puerto Rico to Orlando in 2018 and 2019.
This case was investigated by the Drug Enforcement Administration with assistance from the Orange County Sheriff’s Office and the U.S. Postal Service. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Operator of Portland Animal Rescue Business Charged for Role in Wire Fraud Conspiracy, Illegally Dispensing Animal DrugsRead the Press Release
PORTLAND, Ore.—The operator of a Portland area animal rescue, rehabilitation, boarding, and adoption company is facing federal charges for her role in a conspiracy to defraud customers and for illegally dispensing animal drugs.
Tori Lynn Head, 26, has been charged by criminal information with conspiracy to commit wire fraud and dispensing animal drugs without proper labeling.
According to the information, in November 2019, Head and others started Woofin Palooza, an animal rescue business with facilities in Multnomah and Columbia County, Oregon. Head and others are alleged to have obtained pets with medical and behavioral issues from out-of-state and made them available for adoption to paying customers. Between December 2019 and January 2021, on more than 280 occasions, Head and others made material misrepresentations about the health and behavior of the animal offered for adoption. Based on these misrepresentations, customers paid Woofin Palooza more than $82,000 in adoption fees. During this same time period, Head sold customers mislabeled animal drugs in violation of the Food, Drug, and Cosmetic Act.
Head made his first appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was released pending further court proceedings.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Food and Drug Administration (FDA) with assistance from the Portland Police Bureau. Assistant U.S. Attorney Ethan Knight is prosecuting the case.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jalen T. McKissick, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
McKissick, 27, pleaded guilty today to one count of “False Statement During Purchase of Firearm.” McKissick admitted to making false statements to illegally purchase firearms in April 2021 in Marion County.
McKissick faces up to 10 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Regginald Moody, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Moody, 27, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Moody, a person prohibited from having firearms, admitted to having a firearm in June 2020 in Monongalia County.
Moody faces up to 10 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Money Launderer for $3.5 Million Vehicle Sale Scam Extradited from LithuaniaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that STANISLAV TUNKEVIC, of Lithuania, was extradited to the United States on bank fraud and money laundering offenses arising from a scheme to launder money derived from an online vehicle sale scam that took in at least $3.5 million from defrauded consumers. VLADISLAV NECEAEV, of Brooklyn, New York, recently pled guilty to conspiracy to commit bank fraud in connection with the same scheme.
U.S. Attorney Damian Williams said: “This case is another reminder that while the Internet has often been a force for the public good, it has also been used by criminals to swindle the unwary. But online fraudsters who hide behind the anonymity of the Internet still need co-conspirators like Tunkevic and Neceaev, who are willing to launder the loot. This Office is committed to rooting out both the online scammers and their enablers.”
HSI Acting Special Agent-in-Charge Ricky Patel said: “As alleged, Tunkevic and Neceaev laundered money for a group of fraudsters that preyed on innocent victims who were simply looking to buy a used car online; an act so common that it allowed the group of crooks to pocket millions off this elaborate scheme from unsuspecting customers. With the use of Tunkevic and Neceaev’s money laundering services, their criminal partners used fictitious websites to lure victims to fraudulent dealerships, all to profit off the backs of hard-working people looking to make a legitimate purchase. HSI New York’s El Dorado Task Force coordinated efforts with HSI’s Attaché office in the Hague to assist with this extradition and will work tirelessly to identify and prosecute all co-conspirators that perpetuated this consumer fraud and money laundering scheme.”
As alleged in the Complaint and the Indictments,[1] and based on statements made in court:
From at least March 2019 through approximately March 2021, STANISLAV TUNKEVIC and VLADISLAV NECEAEV were members of a money laundering crew operating from Brooklyn that was coordinated by NECEAEV’s mother and co-defendant, Natalia Korzha. Members of that crew, including TUNKEVIC and NECEAEV, opened numerous bank accounts in the name of shell companies for the purpose of laundering money stolen from consumers who were trying to buy vehicles online, in exchange for a cut of the victims’ money. Other members of the conspiracy, pretending to represent car dealerships, advertised vehicles that they did not own and were not authorized to sell on fake websites with domain names that sounded like legitimate car dealerships, or through online marketplaces like Craigslist and eBay. Victims who responded to those advertisements and negotiated a purchase price were instructed by the purported sellers to wire payment to accounts that TUNKEVIC, NECEAEV, and other co-conspirators opened. Once the payments cleared, the account owners, including TUNKEVIC and NECEAEV, quickly withdrew the funds before the victims realized they had been defrauded. The victims never received the vehicles they thought they had bought or any refunds from the fake sellers. In total, dozens of victims were defrauded of a total of at least $3.5 million.
TUNKEVIC was presented today in Manhattan federal court before United States Magistrate Judge Sarah Cave.
NECEAEV pled guilty to one count of conspiracy to commit bank fraud on March 14, 2022, before Magistrate Judge Robert W. Lehrburger.
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STANISLAV TUNKEVIC, 47, of Lithuania, was extradited to the United States on March 25, 2022. TUNKEVIC is charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
VLADISLAV NECEAEV, 28, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bank fraud on March 14, 2022.
The offense of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000. The crime of conspiracy to commit money laundering carries a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations. He also thanked the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the Prosecutor General’s Office of the Republic of Lithuania, and the Lithuanian Criminal Police Bureau for their assistance in this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictments, and the description of the Complaint and Indictments set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the charged defendants.
Modesto Man Pleads Guilty to Burglarizing Post Office in Calaveras CountyRead the Press Release
FRESNO, Calif. — Thomas Patrick Day, 41, of Modesto, pleaded guilty today to burglarizing a post office, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on the night of July 2, 2020, Day broke into the post office at 8271 Camanche Parkway South in Wallace, a town in Calaveras County. He used a glass breaker tool to shatter the glass on the door to the lobby area of the post office and then stole packages and keys to post office boxes belonging to other people and businesses.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Day is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 21, 2022. If convicted, Day faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Martinsburg man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Cody Sabol, of Martinsburg, West Virginia, was sentenced today to 97 months of incarceration for a child pornography charge, United States Attorney William Ihlenfeld announced.
Sabol, 32, pleaded guilty in October 2021 to one count of “Possession of Child Pornography.” Sabol admitted to having an image of child pornography containing a child under the age of 12 in October 2020 in Berkeley County. Sabol was uploading child pornography to a social media app KIK in May 2020. West Virginia State Police were alerted, executed a search at his home in October 2020, and seized his iPhone. More than 3,300 images and 52 videos of child pornography were found on Sabol’s phone.
Sabol’s sentence will be followed by 40 years of supervised release. He was ordered to pay $55,000 in restitution.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
Lincoln County Man Sentenced to 240 Months for Fentanyl and Heroin Trafficking Resulting in a DeathRead the Press Release
LEXINGTON, Ky.— A Stanford, Ky., man, Donald Means, 55, was sentenced to 240 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after pleading guilty to distribution of a mixture of fentanyl and heroin, which resulted in the death of another person.
According to Means’ guilty plea, he illegally sold a substance containing heroin and fentanyl to an individual, knowing it was a controlled substance and its potency. The victim ingested the drugs, resulting in their death. According to the Kentucky State Medical Examiner’s Office, the victim’s death was caused by the acute, combined toxic effects of the drugs.
Means pleaded guilty to the charge in the indictment in January 2022.
Under federal law, Means must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Greg Speck, Pulaski County Sherriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI and Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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Las Cruces psychiatrist pleads guilty to unlawfully prescribing opioidsRead the Press Release
ALBUQUERQUE, N.M. – Mark Beale, 75, of Las Cruces, New Mexico, pleaded guilty on March 25 in federal court to unlawful dispensing and distributing of a schedule II controlled substance. Beale will remain on conditions of release pending sentencing.
A federal grand jury indicted Beale on June 23, 2021. According to the plea agreement and other court records, Beale issued prescriptions outside the course of professional practice and without a legitimate medical purpose. From July 8, 2016, through April 5, 2019, Beale, a licensed physician, treated patients, including Jane Doe, in psychiatry. Beale admitted that he conducted only cursory exams, rather than complete medical, physical, or psychiatric evaluations, and made no attempt to document Jane Doe’s medical history. Beale failed to document many of the prescriptions he prescribed in Jane Doe’s clinical record, which included insufficient clinical evidence to support the diagnoses he made, and the prescriptions he wrote for her were not supported by the listed diagnoses.
Beale also acknowledged that he failed to conduct adequate clinical monitoring, such as urine drug screening and prescription monitoring inquires. Despite a diagnosis of opioid abuse Beale did not treat the issue or refer Jane Doe for appropriate care. Instead, he continued to prescribe opioids. Beale further acknowledged that he chronically prescribed opioids and benzodiazepines, which put Jane Doe at unacceptable risk of addiction, diversion or overdose.
By the terms of the plea agreement, Beale faces five years in prison, followed by five years of supervised release.
The Drug Enforcement Administration’s Tactical Diversion Squad investigated the case with assistance from the Dona Ana County Metro Narcotics Task Force, the Las Cruces Police Department and the El Paso Police Department. Assistant United States Attorneys Joni Autrey Stahl and Richard C. Williams are prosecuting the case.
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Laplace Man Sentenced to 72 Months in Federal Prison for Conspiring to Distribute Cocaine Hydrochloride, Fentanyl, Cocaine Base, Heroin and MethamphetamineRead the Press Release
NEW ORLEANS, LA – United States District Judge Mary Ann Vial Lemmon sentenced ELLIS BATISTE SR., age 50, of LaPlace, Louisiana, on March 24, 2022, to 72 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, announced U.S. Attorney Duane A. Evans.
According to the court records, in Count One, BATISTE conspired to distribute and possess with the intent to distribute a quantity of a mixture or substance containing a quantity of cocaine hydrochloride, fentanyl, cocaine base, heroin, and methamphetamine.
During the investigation, law enforcement seized over 15 kilograms of cocaine hydrochloride and over 1 kilogram of fentanyl. The majority of this cocaine hydrochloride and fentanyl which were being transported from Houston, Texas into the Eastern District of Louisiana.
District Judge Lemmon sentenced BATISTE to the 72 months imprisonment to be followed by four years of supervised release as to Count One of the sSuperseding Bbill of Iinformation. Judge Lemmon also ordered that BATISTE pay a $100 mandatory special assessment fee.
The case was investigated by the United States Drug Enforcement Administration and the Saint John the Baptist Sheriff’s Office. Assistant United States Attorney Christopher Usher prosecuted the matter.
La Crosse Man Sentenced to 7 Years for Trafficking CocaineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Antjuano Green, 40, La Crosse, Wisconsin was sentenced on Friday, March 25, by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for distributing cocaine base. This prison term will be followed by 5 years of supervised release. Green pleaded guilty to this charge on November 19, 2021.
On March 17, 2021, La Crosse Police Department officers purchased 41.9 grams of crack cocaine from Green through a confidential informant in La Crosse. On March 24, 2021, officers purchased 12.9 grams of crack cocaine from Green, again through a confidential informant.
The next day, officers arrested Green for the prior drug deliveries. Officers searched Green’s car and found baggies containing a total of 16.9 grams of crack cocaine and 3.4 grams of powder cocaine, as well as $4,440 in cash. When interviewed by officers, Green admitted to selling cocaine for profit.
At the time of these events, Green was on state supervision for crack cocaine trafficking. His supervision was revoked and he is currently serving a sentence of 3 ½ years. Judge Peterson ordered this federal sentence to run concurrently with the remainder of the state prison sentence.
At sentencing, Judge Peterson noted that drug trafficking degrades the health and safety of a community. Judge Peterson highlighted Green’s lengthy criminal history involving drug dealing and his persistent recidivism.
The charge against Green was the result of an investigation conducted by the Campbell, La Crosse, and Onalaska Police Departments. The La Crosse County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Kentucky Woman Sentenced to Prison for $4.3 Million Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – An Ashland, Kentucky woman was sentenced today to one year and three months in prison for her role in a $4.3 million fraud scheme against Toyota Motor Corporation.
According to court documents and statements made in court, Tammy Newsome, 55, was ordered to serve 15 months in prison, to be followed by one year of supervised release. She was also ordered to pay $4,335,663 in restitution.
Newsome was employed as an administrative assistant for Kentucky used car dealership Big Blue Motor Sales, which bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, and fraudulently titled the trucks in the name of those residents.
Newsome helped induce Toyota to repurchase hundreds of fraudulently titled trucks at 150% of value between 2013 and 2015, as part of a scheme to misuse its warranty extension program. The scheme relied on Newsome to make false representations to the Department of Motor Vehicles to obtain false vehicle titles in the names of false owners. The titles obtained by Newsome were then used by other scheme participants to induce Toyota to repurchase the vehicles.
Newsome admitted that she made false representations to the DMV, delivered cash bribes to other scheme participants, and forged signatures of false owners so that checks issued by Toyota in the name of a false owner could be deposited into Big Blue Motor Sales’ bank account.
Newsome pleaded guilty to mail fraud in July 2020. Three other individuals were sentenced to prison earlier this year for their roles in the scheme: James Pinson, 46, of Wayne County, the owner of Big Blue Motor Sales, to six years; Frank Russo, 69, of North Carolina, a Toyota dealership service manager, to two years; and Stanley Clark, 68, of Poca, a transfer agent, to one year and three months. All three were also ordered to pay restitution.
U.S. Attorney Will Thompson made the announcement. The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner investigated the case.
United States District Judge Joseph R. Goodwin imposed the sentence. Former Assistant United States Attorney Stefan Hasselblad and Assistant U.S. Attorneys Andrew J. Tessman and Steven I. Loew prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:19-CR-00250, 2:19-cr-00222, and 2:20-cr-00028.
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Jordan Palmer joins U.S. Attorney’s OfficeRead the Press Release
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld announced today that Jordan Palmer has joined the office as an Assistant U.S. Attorney in Wheeling.
Palmer will serve in the office’s civil division, a unit that defends federal agencies when sued in court, prosecutes civil enforcement matters, and collects debts owed to the United States.
“Jordan brings a wealth of litigation experience with him from the private sector,” said Ihlenfeld. “We’re fortunate to be able to add an individual with his talents to our team, someone who can hit the ground running and who will be a mainstay in the office for years to come.”
Palmer has practiced law in state and federal court in West Virginia and Ohio since 2015, with a focus on civil litigation. He graduated from West Virginia University with degrees in political science and philosophy, and from the Case Western Reserve University School of Law. Palmer lives in Wheeling with his family.
Isanti Man Arrested, Charged with Stealing Firearms from ShipmentsRead the Press Release
ST. PAUL, Minn. – A federal criminal complaint has been filed against Jason Thomas Cikotte, 31, of Isanti, charging him with possession of stolen firearms, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, beginning in August 2021, law enforcement began receiving notifications of firearm thefts from shipments to Federal Firearms Licensees (FFLs). The carrier for the firearms shipments was XPO Logistics, a logistics company with facilities in St. Cloud and Fridley. On March 9, 2022, XPO Logistics contacted the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to report an additional 11 firearms were solen from a recent shipment, including one Century Arms model Draco NAK 9 9mm semiautomatic AK pistol, five Canik model Rival 9mm semiautomatic pistols, and five Canik model Rival 9mm semiautomatic pistols. The company’s security manager later notified law enforcement that they identified Cikotte as the person responsible for several thefts of firearms shipments over the course of almost a year. The security manager provided law enforcement with video evidence showing Cikotte removing boxes of firearms from shrink wrapped pallets, removing the firearms from the boxes, and carrying the firearms to his vehicle.
According to court documents, law enforcement executed a search warrant at Cikotte’s Isanti residence. Inside the house, law enforcement found approximately 40 firearms, all of which appear to be firearms stolen from XPO Logistics, as well as tens of thousands of rounds of ammunition, and miscellaneous firearms parts and accessories. Following the search, after being advised of his rights, Cikotte admitted to having stolen the firearms, ammunition, and firearms parts and accessories from XPO Logistics.
Cikotte is charged with one count of possession of stolen firearms. He made his initial appearance on March 25, 2022, in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation conducted by the ATF and the Isanti Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indiana Man Pleads Guilty to Possessing Unregistered Destructive Devices During Portland ProtestsRead the Press Release
PORTLAND, Ore.—An Indiana man pleaded guilty today in federal court after repeatedly and intentionally jeopardizing the lives of police officers, destroying public property, and encouraging others to commit violence during protests in Portland.
Malik Fard Muhammad, 25, pleaded guilty to two counts of possessing unregistered destructive devices.
According to court documents, in late summer 2020, Muhammad traveled to Portland with his girlfriend from their home in Indianapolis to violently engage in area riots. On September 5, 2020, during a large civil disturbance in east Portland, demonstrators threw dangerous objects at police, including commercial grade fireworks, Molotov cocktails, and bottles. At least one demonstrator was seriously burned by a Molotov cocktail thrown in the direction of police. Muhammad was present at this event and provided baseball bats to members of the crowd.
Following Muhammad’s arrest in October 2020, law enforcement seized his cell phone and found messages where he bragged about providing the baseball bats to other rioters. The cell phone also contained a shopping list including common supplies used to make a Molotov cocktail. The day after the demonstration, police located a discarded baseball bat with a Goodwill price tag in the area where the event occurred. Police found the Goodwill store where the bat was purchased and obtained surveillance footage showing Muhammad and his girlfriend buying the bats and several “growler” bottles.
On September 21, 2020, during a large demonstration near the Multnomah County Sheriff’s Office Penumbra Kelly Building, law enforcement observed an individual light on fire and throw an object toward the building. One officer observed the burning object flying through the air toward his vehicle, landing approximately 15 feet from a police sound truck. Officers recovered the unexploded device. It consisted of a yellow glass growler with a Goodwill sticker on the bottom, a cloth wick, and an ignitable liquid. It was later determined that the growler was one of the items purchased at Goodwill by Muhammad and his girlfriend. A DNA analysis also linked the growler to Muhammad.
On September 23, 2020, protesters set fire to and broke windows at the Multnomah County Justice Center. When officers advanced toward the crowd, an individual threw a Molotov cocktail in a large yellow growler that landed in front of the officers, shattered, and exploded into a large fireball. While some officers were able to move out of the way, one officer’s leg caught fire. Several videos obtained by law enforcement show Muhammad throwing the explosive device.
On October 11, 2020, police were monitoring a protest involving approximately 250 people in downtown Portland. Members of the group began heavily vandalizing various buildings and parks including the Oregon Historical Society, Portland State University, a Starbucks coffee shop, and a Bank of America branch, among others. Law enforcement observed Muhammad in the crowed dressed in black. Portland Police officers reported observing Muhammad using a metal baton to smash the windows of several buildings and arrested him after a short chase. Muhammad possessed a loaded handgun magazine in his pocket. A loaded handgun matching the magazine found on Muhammad’s person was found discarded near the location of his arrest.
Muhammad’s trip to Portland does not appear to be an isolated event. Investigators obtained evidence that he traveled to Louisville, Kentucky in August 2020 to meet with anti-government and anti-authority violent extremist groups to conduct firearms and tactical training. Investigators also obtained several public social media posts by Muhammad promoting violence toward law enforcement in other cities including Kenosha, Wisconsin, and Chicago.
On May 28, 2021, Muhammad was charged by criminal complaint with possession of unregistered destructive devices, engaging in civil disorder and obstructing law enforcement, and using explosives to commit a felony. Later, on June 15, 2021, a federal grand jury in Portland indicted Muhammad on the same charges.
Possessing an unregistered destructive device is punishable by up to 10 years in federal prison per count of conviction. With Muhammad’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 10 years in federal prison. He will be sentenced on June 21, 2022 before U.S. District Court Chief Judge Marco A. Hernandez.
Today’s change of plea is part of a global resolution of Muhammad’s federal and state criminal cases. He is scheduled to plead guilty and be sentenced in Multnomah County Circuit Court tomorrow.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The Portland Police Bureau, FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.
Illegal alien faces 50-year prison term after admitting multi-million-dollar conspiracy to harbor other illegals for laborRead the Press Release
SAVANNAH, GA – An illegal alien has admitted to a scheme in which he and his co-conspirators fraudulently employed other illegals to work for a tree service, and then aided in the murder of a man who reported the scheme.
Pablo Rangel-Rubio, 53, a citizen of Mexico illegally present in the United States who resides in Rincon, Ga., pled guilty in U.S. District Court to an Information charging him with Conspiracy to Conceal, Harbor and Shield Illegal Aliens; Conspiracy to Commit Money Laundering; three counts of Money Laundering; and one count of Aiding and Abetting the Retaliation Against a Witness, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Rangel-Rubio to a negotiated sentence of 600 months in prison and forfeiture of a 26.62-acre residential compound in Rincon.
“Pablo Rangel-Rubio was responsible for employing at least 100 illegal aliens to work for a tree service, skimming from their paychecks to further fatten his wallet, and then helping arrange the murder of a man who exposed the scheme,” said U.S. Attorney Estes. “The substantial prison sentence from this plea will hold him accountable for those crimes.”
Rangel-Rubio originally was named in a December 2018 indictment along with his brother, Juan Rangel-Rubio, 45, of Rincon, and Higinio Perez-Bravo, 52, of Savannah, spelling out a conspiracy that employed illegal aliens using assumed identities to work for a tree service, and then retaliated against a legal-citizen employee who reported the scheme.
Juan Rangel-Rubio and Higinio Perez-Bravo are awaiting trial and are considered innocent unless and until proven guilty.
As described in court documents and testimony, Pablo Rangel-Rubio was responsible for hiring employees to work in a subsidiary of a tree service despite his status as an illegal alien. Most of the employees he hired on behalf of the company were illegal aliens, and Rangel-Rubio provided them with the names and social security numbers of others and then concealed their unlawful status and ineligibility to work in the United States. Rangel-Rubio further shielded their unlawful status by obtaining paychecks for the employees from the company, made out to the illegal aliens’ assumed identities, and then cashing those checks and paying the employees in cash. Rangel-Rubio would sometimes withhold money from the employees’ wages for his own gain, and deposit checks in the names of fictitious employees into his own bank account. As part of his plea agreement, Rangel-Rubio agreed that the scheme netted the conspirators more than $3.5 million.
In April 2017, a naturalized citizen employee of the company, Eliud Montoya, contacted the company to report the scheme – and Rangel-Rubio received a copy of Montoya’s written complaint and read it aloud to the other employees in Montoya’s presence. On Aug. 17, 2017, Montoya reported the scheme to the U.S. Equal Employment Opportunity Commission; two days later, Montoya was murdered near his Garden City, Ga., home. Rangel-Rubio admitted aiding and abetting Montoya’s retaliatory murder.
“Rangel-Rubio’s scheme that not only exploited our nation’s labor laws, but also led to the death of a witness, has thankfully been thwarted and he is facing severe consequences,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Protecting the integrity of the nation’s immigration and labor laws from criminals looking to circumvent them is of vital importance, and HSI prioritizes this mission."
“Rangel-Rubio exploited one victim after another, using them for labor and stealing hard-earned money from their paychecks,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “This plea proves that the FBI is committed to protecting those who blow the whistle on illegal activity and bringing to justice those who exploit others for financial gain.”
The investigation was led by Homeland Security Investigations (HSI) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Garden City Police Department, the Effingham County Sheriff’s Office, and the Chatham County Sheriff’s Office, and is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney Tania D. Groover.
Idaho Falls Man Pleads Guilty to Enticement of a ChildRead the Press Release
POCATELLO – An Idaho Falls man pleaded guilty in federal court to attempted coercion and enticement a child.
According to court records, Joel Hawley Phelps, 63, admitted that, on September 24, 2021, he texted with a person he thought was a 14-year-old girl, but was instead, a law enforcement officer acting undercover. During their conversations, the undercover officer made clear that she was only 14 years old. Phelps asked to meet with her for the purposes of sexual intercourse, and they agreed to meet at a convenience store for that purpose.
On October 4, 2021, Phelps drove to the agreed-upon convenience store, where he was arrested. Phelps’ phone was searched and found to contain the messages in which he agreed to meet the fictitious girl for intercourse. Phelps also admitted in an interview with law enforcement that he had traveled to the gas station to have sex with the purported girl.
Phelps is scheduled to be sentenced on June 13, 2022, and faces a maximum penalty of a lifetime in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“In 2022, this office is projected to file more Project Safe Childhood cases than ever before,” stated U.S. Attorney Rafael M. Gonzalez, Jr. “In fact, we expect our case filings to increase 22 percent over the preceding four-year average. What is astounding is that that average was an all-time high. The reason we are able to catch a record number of child predators is that our partner agencies, federal, state, and local, are sending us a record number of investigations,” Mr. Gonzalez added. “Like today’s case, a significant percentage of these child safety investigations are brought to us by ICAC. I commend ICAC and Attorney General Wasden for their work and our partnership. Together, we make Idaho a safer place for children,” he concluded.
“The crimes of child pornography and enticement are particularly vile because of who they target,” Attorney General Lawrence Wasden said. “But these strong local, state and federal partnerships give us the ability to push back and put dangerous criminals in prison. By working these cases whether from cybertip or undercover operation to sentencing, Idaho law enforcement and prosecutors are making a difference in the lives of our children and grandchildren.”
U.S. Attorney Gonzalez commended the cooperative efforts of the Idaho Internet Crimes Against Children (ICAC) Task Force, the Idaho Falls Police Department, and Homeland Security Investigations in Idaho Falls, which led to charges.
ICAC will be hosting a virtual event on April 6, 2022, to provide more information and resources regarding internet safety for children. The program, “Digital Dangers: Helping Idaho Adults Protect Children,” will be streamed live via YouTube on April 6 from 7:00 to 8:15 p.m. MDT, and will include information about online risks to children and teens and mental health effects children can suffer as a result of unhealthy online habits. The program will also include a presentation on the federal prosecution of online sexual predators. Presenters include: Chris McCormick, Idaho ICAC Commander; Mark Dalton, Idaho ICAC Investigator; Dr. Noreen Womack, Pediatrician; and Kassandra McGrady, Assistant U.S. Attorney, U.S. Attorney’s Office for the District of Idaho.
The YouTube channel is titled “Office of the Attorney General, State of Idaho” and is available at https://www.youtube.com/channel/UC3ouMPXe9am2bWa2l9g4M6Q.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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INTERPOL Washington Continues Support to Nigeria under Project TERMINUSRead the Press Release
INTERPOL Washington—the U.S. National Central Bureau (USNCB)—has successfully launched a new phase in its ongoing efforts to assist the Nigerian Immigration Service (NIS) to improve its border security capabilities. On March 3, 2022, under Project TERMINUS, the USNCB completed the configuration and deployment of a National Dedicated Server Database (DSD) in Nigeria as requested by the NIS in December 2021.
The DSD provides the NIS with a serviceable national database of lost and stolen documents compatible with uploading into the INTERPOL Stolen and Lost Travel Document (SLTD) database. This launch marked the continuation of more than 12 months of collaboration between the USNCB, the U.S. Department of State, INTERPOL, and the Government of Nigeria.
The USNCB, operating under Project Terminus, began remotely providing technical assistance to its NIS counterparts in 2020. In 2021 the USNCB configured and deployed the first Nigerian Automated SLTD Uploader, which allows both the NIS and the National Central Bureau (NCB) in Abuja to connect directly to the INTERPOL database.
Established in 2018, Project TERMINUS is a partnership between the USNCB and the State Department’s Bureau of Counterterrorism. The mission of Project TERMINUS is to extend INTERPOL's I-24/7 secure, global police-to-police communications system in high risk areas and select host nations globally.
“The USNCB is pleased to continue our partnership with the U.S. Department of State to provide tools and technologies that assist our international law enforcement partners in improving their border security. Project TERMINUS contributes to the ability of all INTERPOL member countries to more effectively secure their borders against transnational threats,” said USNCB Director Michael A. Hughes.
Project TERMINUS makes expert technical assistance available to countries seeking to integrate access to INTERPOL’s Stolen and Lost Travel Documents Database (SLTD) into their national border security information sharing systems to help screen against the illicit international travel of transnational criminals and terrorists. Project TERMINUS is currently operating within the ASEAN and Africa regions. In addition to Nigeria, Partner Nations receiving assistance include Indonesia, Malaysia, Nigeria, Kyrgyzstan, and Uzbekistan.
A component of the U.S. Department of Justice, INTERPOL Washington, the U.S. National Central Bureau (USNCB), is the designated United States representative to INTERPOL on behalf of the Attorney General. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies.
Honolulu Bookkeeper Pleads Guilty to $1.2 Million Fraud and Money LaunderingRead the Press Release
HONOLULU – Paul Henri Marie Harleman, 35, of Honolulu, appeared today before United States District Judge Derrick K. Watson and pleaded guilty to six counts of wire fraud and eight counts of money laundering contained in a federal indictment. Harleman has been detained since his arrest on April 23, 2021. Harleman is scheduled for sentencing on August 2, 2022.
According to court records, while Harleman was working as a contract bookkeeper, he devised two fraud schemes to obtain money from three of his clients. In the first scheme, from July 2018 to May 2020, Harleman formed a limited liability company with a name nearly identical to the name of a significant vendor to one of his clients, and then charged the client’s credit card for more than $146,000 in fraudulent invoices. In the second scheme, from September 2019 to his arrest, Harleman transferred more than $1,064,000 in a series of payments disguised as payroll from two of his clients to Harleman’s limited liability company. Harleman moved money fraudulently obtained from his three clients from his personal checking account to a personal investment account, resulting in the money laundering charges.
“This indictment arose from the concerted efforts of our federal law enforcement partners to investigate and prosecute financial crimes occurring in our district,” stated United States Attorney Clare E. Connors. “As reflected in the plea colloquy today in court, the defendant intentionally defrauded his clients and devised a scheme to conceal and further his illegal conduct. Our office will continue to identify and hold accountable those who commit such integrity crimes against our community members.”
“Because finances play such an integral part to our wellbeing, we place our utmost trust in accountants, bookkeepers, and other financial professionals to safeguard our financial security,” said IRS Criminal Investigation (“IRS:CI”) Special Agent in Charge Bret Kressin, of the Seattle Field Office. “When these individuals whom we have entrusted with our essential welfare decide to utterly betray this trust, hardworking individuals and whole communities suffer the consequences. IRS:CI understands how devastating financial crimes are, and we are committed to investigating and bringing to justice those like Mr. Harleman who care for nothing but their own greed.”
“Mr. Harleman was motivated by greed as he heartlessly stole thousands of dollars from small businesses and non-profit organizations,” said Special Agent in Charge John F. Tobon of Homeland Security Investigations Honolulu (“HSI”). “This guilty plea should send the message that HSI and our law enforcement partners will relentlessly pursue anyone who intends to hurt the people in our community for profit.”
As a result of his guilty pleas, Harleman faces up to 20 years imprisonment on each of the wire fraud counts and up to 10 years imprisonment on each of the money laundering counts, as well as a fine of up to $250,000 on each count, plus a term of supervised release up to three years. The court must also order restitution to the victims and forfeiture of the fraud proceeds and the property involved in the money laundering.
The case was investigated by Internal Revenue Service Criminal Investigation and Homeland Security Investigations. Assistant United States Attorney Craig S. Nolan is prosecuting the case.
The case originated with the United States Attorney’s Financial Crimes Task Force, which marshals federal resources to combat financial crimes victimizing residents, businesses, and non-profits in the District of Hawaii. Led by the United States Attorney’s Office, the task force includes Internal Revenue Service Criminal Investigation, Homeland Security Investigations, United States Secret Service, United States Postal Inspection Service, Federal Reserve Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, and Federal Bureau of Investigation.
Honduran Man Charged with Illegally Using Social Security Number to Obtain Louisiana Identification CardRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that HENRY EDGARDO ORTIZ, age 42, a native of Honduras, was charged on March 25, 2022 in a one-count bill of information with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
ORTIZ faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) years supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Hardy County man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Curtis Delawder, of Moorefield, West Virginia, was sentenced today to 80 months of incarceration for a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Delawder, 38, pleaded guilty in April 2021 to one count of “Distribution of Methamphetamine.” Delawder admitted to selling methamphetamine in Hardy County in October 2020.
Delawder was also ordered to forfeit three firearms, ammunition, and $4942 in cash believed to be proceeds from the crime.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Former Yale Med School Employee Pleads Guilty, Admits Stealing and Selling $40 Million in ElectronicsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JAMIE PETRONE, 42, of Lithia Springs, Georgia, formerly of Naugatuck, Connecticut, pleaded guilty today in Hartford federal court to fraud and tax offenses related to her theft of $40 million in computer and electronic hardware from the Yale University School of Medicine where she was employed.
According to court documents and statements made in court, beginning in approximately 2008, Petrone was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, and most recently served as the Director of Finance and Administration for the Department of Emergency Medicine. As part of her job responsibilities, Petrone had authority to make and authorize certain purchases for departmental needs as long as the purchase amount was below $10,000. Beginning at least as early as 2013, Petrone engaged in a scheme whereby she ordered, or caused others working for her to order, millions of dollars of electronic hardware from Yale vendors using Yale Med funds and arranged to ship the stolen hardware to an out-of-state business in exchange for money.
As part of the scheme, Petrone falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval. The out-of-state business, which resold the electronic equipment to customers, paid Petrone by wiring funds into an account of a company in which she is a principal, Maziv Entertainment LLC.
In total, Petrone caused a loss of approximately $40,504,200 to Yale. Petrone used the proceeds of the sales of the stolen equipment for various personal expenses, including expensive cars, real estate and travel.
Petrone also failed to pay taxes on the money she received from selling the stolen equipment. She filed false federal tax returns for the 2013 through 2016 tax years, in which she falsely claimed as business expenses the costs of the stolen equipment, and failed to file any federal tax returns for the 2017 through 2020 tax years. This caused a loss of $6,416,618 to the U.S. Treasury.
Petrone pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years. She is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 29, 2022.
Petrone has agreed to forfeit $560,421.14 that was seized from the Maziv Entertainment LLC bank account, a 2014 Mercedes-Benz G550, a 2017 Land Rover/Range Rover Sv Autobiography, a 2015 Cadillac Escalade Premium, a 2020 Mercedes Benz Model E450A, a 2016 Cadillac Escalade (4 Door Sport), and a 2018 Dodge Charger. She also has agreed to liquidate three Connecticut properties that she owns or co-owns to help satisfy her restitution obligation. A property she owns in Georgia is also subject to seizure and liquidation.
Petrone was arrested by criminal complaint on September 3, 2021. She is released on a $1 million bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Yale Police Department. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
Former Worcester Housing Official Sentenced to 40 Months in Prison for $2.3 Million Property Development Fraud SchemeRead the Press Release
BOSTON – A former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development was sentenced today in federal court in Worcester for her role in a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
Jacklyn M. Sutcivni, 48, of Dracut, was sentenced by U.S. District Court Judge Timothy S. Hillman to 40 months in prison and three years of supervised release. Sutcivni was also ordered to pay restitution in an amount that will be determined at a hearing on May 19, 2022. On Aug. 4, 2021, Sutcivni was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.
In August 2016, Sutcivni was indicted along with James E. Levin, a Natick real estate developer and attorney. Levin pleaded guilty in September 2020 and was sentenced on March 30, 2021 to 37 months in prison, three years of supervised release and ordered to pay forfeiture in the amount of $1,955,000.
“This fraud is not a victimless crime – the Worcester community and its families deserve and are entitled to city employees that do their jobs with integrity,” said United States Attorney Rachael S. Rollins. “Jacklyn Sutcivni repeatedly chose to dishonor her public office and the good people of Worcester who placed their trust in her. Today’s sentence reinforces our steady resolve to investigate public officials who abuse their positions and hold them accountable for breaching the public’s trust.”
“Today, Jacklyn Sutcivni was finally held accountable for using her official position for financial gain at the expense of hard-working taxpayers in the city of Worcester, particularly those in need of safe and affordable housing,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “She grossly betrayed the public’s trust, failed to take responsibility for her actions, and eroded confidence in city government. This case is just one example of the FBI’s commitment to rooting out public corruption in order to protect the integrity of the institutions that are supposed to serve the best interests of our citizens.”
The City of Worcester distributes grant funds on behalf of U.S. Department of Housing and Urban Development (HUD) and Massachusetts Department of Housing and Community Development (DHCD). Sutcivni, as part of her job with the City of Worcester’s Housing Development Office, was responsible for reviewing payment requests for HUD grant funds. From July 2010 to September 2011, Sutcivni approved seven fraudulent HUD grant funding requests submitted by Levin for work he falsely claimed to have completed on a building he managed and associated costs. Sutcivni approved the payment requests despite knowing they were fraudulent. As a result, the City of Worcester issued approximately $2,365,050 in federal funds to Levin that he was not entitled to. After the City issued the payment, Sutcivni or other City officials, submitted reimbursement requests to HUD or DHCD for HUD funds.
U.S. Attorney Rollins, FBI Boston Division SAC Bonavolonta and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region, made the announcement today. Assistant U.S. Attorneys Danial Bennett, of Rollins’ Worcester Branch Office and Brendan Mockler, of Rollins’ Asset Recovery Unit, prosecuted the case.
Former Port Angeles, Washington, Naturopath sentenced for scheme to profit on ‘COVID-19 cure’Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was sentenced today in U.S. District Court in Tacoma to 8 months in prison and one year of supervised release for a federal felony related to his misbranding, and sale in interstate commerce, of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown. Richard Marschall, 69, was convicted in October 2021, following a 4-day trial. The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “It is extremely dangerous during the COVID epidemic for people to be engaged in conduct that would lead other people to defer and wait to receive medical care.”
“Mr. Marschall has a history of lying to patients about their health and his proposed treatments. His lies in this case are particularly troubling because he employed them when advising others about a deadly pandemic,” said U.S. Attorney Nick Brown. “As people became fearful and searched for answers, Marschall touted an unproven treatment as a miracle cure for the deadly disease. Such conduct can prevent patients from getting the legitimate treatment they need if they become ill.”
According to records filed in the case, in late March 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products. Investigators reviewed Marschall's Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus. Marschall billed himself as a retired naturopath and “Health Coach.” Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”
On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19. Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.” Marschall represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with instructional and marketing material. The products themselves were not made by Marschall but by other manufacturers. The manufacturers’ labels for the substances do not claim to kill viruses, but the material added by Marschall stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”
The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.
Marschall was convicted previously and sentenced in federal court for distributing misbranded drugs, both in 2011 and again in 2017.
In asking for a year-long prison term prosecutors wrote to the court, “For decades, Marschall lied and broke the law to provide unapproved treatments and healthcare services. Marschall lied to patients. He lied to authorities. He treated patients without examining them. And he prescribed substances in unusually large doses. Marschall repeated that dangerous playbook in this case: lying to the undercover agent about his credentials, treating her and her children over the phone without a physical exam, and recommending an extremely high dose of his drug.”
The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner
Former Port Angeles, Washington, Naturopath sentenced for scheme to profit on ‘COVID-19 cure’Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was sentenced today in U.S. District Court in Tacoma to 8 months in prison and one year of supervised release for a federal felony related to his misbranding, and sale in interstate commerce, of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown. Richard Marschall, 69, was convicted in October 2021, following a 4-day trial. The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “It is extremely dangerous during the COVID epidemic for people to be engaged in conduct that would lead other people to defer and wait to receive medical care.”
“Mr. Marschall has a history of lying to patients about their health and his proposed treatments. His lies in this case are particularly troubling because he employed them when advising others about a deadly pandemic,” said U.S. Attorney Nick Brown. “As people became fearful and searched for answers, Marschall touted an unproven treatment as a miracle cure for the deadly disease. Such conduct can prevent patients from getting the legitimate treatment they need if they become ill.”
According to records filed in the case, in late March 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products. Investigators reviewed Marschall's Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus. Marschall billed himself as a retired naturopath and “Health Coach.” Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”
On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19. Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.” Marschall represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with instructional and marketing material. The products themselves were not made by Marschall but by other manufacturers. The manufacturers’ labels for the substances do not claim to kill viruses, but the material added by Marschall stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”
The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.
Marschall was convicted previously and sentenced in federal court for distributing misbranded drugs, both in 2011 and again in 2017.
In asking for a year-long prison term prosecutors wrote to the court, “For decades, Marschall lied and broke the law to provide unapproved treatments and
healthcare services. Marschall lied to patients. He lied to authorities. He treated patients without examining them. And he prescribed substances in unusually large doses. Marschall repeated that dangerous playbook in this case: lying to the undercover agent about his credentials, treating her and her children over the phone without a physical exam, and recommending an extremely high dose of his drug.”
The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner
Former Monroe County Man Sentenced to Two Years’ Imprisonment for Making Fraudulent Purchases at Boscov’sRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 24, 2022, Kwane Henderson, age 42, formerly of East Stroudsburg, Pennsylvania, was sentenced today by U.S. District Court Judge Jennifer P. Wilson to two years’ imprisonment for aggravated identity theft.
According to United States Attorney John C. Gurganus, Henderson previously admitted to making fraudulent purchases at Boscov’s stores in Cumberland, Dauphin, and York Counties in February 2019. Henderson made the purchases by using credit card numbers that belonged to other individuals. Henderson’s conduct in the Middle District of Pennsylvania was part of a larger scheme in which he made fraudulent purchases at Boscov’s stores in Delaware, New Jersey, and elsewhere in Pennsylvania. The fraudulent purchases totaled over $28,000.
The case was investigated by the United States Secret Service and the Springettsbury Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Former Bath County Deputy Sheriff Sentenced to 25 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Morehead, Ky., man, Joshua Preece, 40, was sentenced to 300 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after pleading guilty to enticing a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography. Preece is a former Bath County Deputy Sheriff.
According to Preece’s plea agreement, on November 5, 2018, he admitted to answering a call about a minor victim who was acting out of control at her residence. After responding, he transported the victim to a remote area in Bath County. There, Preece sexually assaulted the victim, later asking for sexually explicit photos of the victim via Snapchat. When reviewing Preece’s phone, law enforcement found multiple sexually explicit images.
Preece admitted to the conduct and pleaded guilty to the charge in October 2021.
Under federal law, Preece must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
“The conduct in this case is simply disgraceful,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “The offense itself – a brazen act of child exploitation and abuse – is abhorrent, but the fact that he did it while he was a law enforcement officer makes it even more so. He abused a vulnerable victim, while also betraying a public trust and doing enduring disservice to the dedicated efforts of all law enforcement. I am grateful for hard work of our law enforcement partners, whose efforts made this prosecution possible.”
United States Attorney Shier; Robert Holman, Special Agent in Charge, United States Secret Service; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the U.S. Secret Service and KSP. The United States was represented by Assistant U.S. Attorney David Marye.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov..
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Florida Return Preparer Sentenced to 97 Months in PrisonRead the Press Release
Miami, Florida – A Florida tax return preparer was sentenced in March 2022 to 97 months in prison for preparing false tax returns for his clients.
According to court documents and evidence presented at trial, Fred Pickett Jr., of Belle Glade, owned and operated a tax return business he used to prepare false individual income tax returns. From 2013 to 2016, Pickett prepared tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these nonexistent companies, as well as other false deductions and tax credits, on his clients’ returns to generate refunds they were not entitled to receive. In December 2021, Pickett was convicted at trial of 22 counts of aiding and assisting the preparation of false tax returns.
In addition to the term of imprisonment, U.S. District Judge Robin L. Rosenberg ordered Pickett to serve one year of supervised release and pay approximately $169,639 in restitution to the IRS.
U.S. Attorney Juan Antonio Gonzalez and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Parker Tobin and Patrick Elwell of the Tax Division prosecuted the case. Southern District of Florida Assistant U.S. Attorney Marc Osborne indicted Pickett.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Florida Business Executives Charged in Illegal Kickback SchemeRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Thomas Mollick (79, Odessa) and Martin Krytus (55, Windemere) with conspiracy to solicit and receive, and a substantive count of soliciting and receiving, illegal remunerations (kickbacks and bribes). If convicted on all counts, Mollick and Krytus each face a maximum penalty of 15 years in federal prison. The indictment also notifies Mollick and Krytus that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.
According to the indictment, Mollick co-founded and served as President of RX Development (“RXD”), and as President and Director of Mollick Enterprises, Inc. (“MEI”). Between January 2012 and March 2017, Mollick, who was responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, selected the company’s wholesale drug supplier, Business #1, and solicited and caused the supplier to make kickback payments to MEI. Krytus co-founded and served as Vice President of RXD, and as President, Secretary, Treasurer, and Director of Eastwood & Assoc., Inc. (“EW”). Krytus, who was also responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, received a portion of kickback payments made by Business #1 to MEI.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Labor - Office of Inspector General, the U.S. Postal Service - Office of Inspector General, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Rachelle DesVaux Bedke.
Five-Time Felon Sentenced to Four Years in Prison for Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS – A six-time felon was sentenced on Friday to four years in prison for unlawful possession of a loaded firearm.
Nhut Hong Nguyen (41) pleaded guilty on July 9, 2021 to one count of felon in possession of a firearm. In addition to imprisonment, U.S. District Judge James C. Mahan sentenced Nguyen to three years of supervised release.
According to court documents, on May 7, 2019, law enforcement attempted to arrest Nguyen — on a warrant for attempted burglary — as he was exiting a residence. Rather than stopping, Nguyen tried to drive away, struck a police vehicle, crashed his car into a light pole, and then fled on foot. In Nguyen’s car, officers found a loaded .40 caliber pistol with a partially obliterated serial number.
Prior to this latest conviction, Nguyen had been previously convicted of five felonies in Clark County. As a result, federal law prohibits him from possessing a firearm.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. Assistant U.S. Attorney Jessica Oliva is prosecuting the case.
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Felon Indicted for Federal Firearms OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that DAVID COULTER, age 33, of New Orleans, Louisiana, was charged on March 25, 2022 by a federal grand jury for violations of the Federal Gun Control Act. Specifically, he is charged in a two-count indictment with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, COULTER has a prior conviction for possessing cocaine and multiple convictions for being a felon in possession of a firearm or weapon in Orleans Parish. Due to this criminal history, he is prohibited from having a firearm. He is now charged with possessing a Glock Model 34, nine-millimeter semi-automatic handgun on January 16 and January 18, 2022.
If convicted of possession of a firearm by a convicted felon, COULTER faces a maximum sentence on each count of up to ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.