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17 March 2022
Former Owner of New Jersey Marketing Company Admits Role in $6 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former owner of a New Jersey marketing company admitted his role in a scheme to defraud public and private health benefits programs of over $6 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced today.
Michael Drobish, 43, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez on March 16, 2022, to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.
Between April 2014 and January 2017, Drobish conspired with others to submit fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Drobish hired sales representatives through his marketing company to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid to issue the prescriptions. The prescribing physicians at the telemedicine companies would then write the prescriptions without performing any examination or after deliberately conducting cursory examinations that were insufficient to legitimately deem a compounded drug medically necessary.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which Drobish conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay Drobish’s marketing company a percentage of the reimbursement amount. Drobish would retain a portion of the payment and provide a “commission” payment to the relevant sales representative.
The conspiracy to commit health care fraud charge carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Drobish must forfeit $532,650 in criminal proceeds and pay restitution of at least $6.1 million. Sentencing is scheduled for July 19, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Former National Guard Member Sentenced to 20 Years in Prison for Using the Internet to Commit Child Sexual Exploitation OffensesRead the Press Release
SACRAMENTO, Calif. — Jaziz Jesahias Cea, 24, of Galt, was sentenced today to 20 years in prison for transportation, receipt, and possession of visual depictions of children engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cea used internet communications platforms and social media to commit the offenses. In particular, on May 13, 2018, Cea uploaded videos showing prepubescent girls being abused by adult males to his YouTube channel. Cea also separately used his Skype account to receive videos depicting prepubescent minor females being sexually exploited and abused, to share links to such material, and to communicate with others about his interest in sexually exploiting children. On Feb. 20, 2019, Cea also possessed additional videos showing prepubescent girls being sexually abused. In addition to committing the charged offenses, Cea also admitted to using the Welcome to Video website and cryptocurrency to buy more than 20 hours of videos depicting child sexual abuse on the darknet in early 2018.
Between September 2017 and July 2018, Cea was a member of the California National Guard serving on active duty with the United States Army in Qatar. He was discharged from the California National Guard on July 23, 2020, under other than honorable conditions.
This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, the Sacramento Valley Hi-Tech Crimes Task Force, the Houston, Texas, Internet Crimes Against Children Task Force (ICAC), and the Galt Police Department. Assistant U.S. Attorneys Rosanne Rust and Christina McCall prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former City of Chicago Alderman Sentenced to More Than a Year in Federal Prison for Using Political Funds to Pay Personal ExpensesRead the Press Release
CHICAGO — Former City of Chicago Alderman RICARDO MUNOZ was sentenced today to 13 months in federal prison for using money from a political fund to pay personal expenses.
While serving as Alderman of the 22nd Ward in Chicago, Munoz used money from a political action committee formed by the Chicago Progressive Reform Caucus (CPRC) to pay a relative’s college tuition and other personal expenses, including jewelry, clothing, cell phones, vacations, sports tickets, and airline travel. Public officials were prohibited by law from misappropriating funds from the CPRC for personal expenditures. Munoz attempted to conceal the fraud scheme by making materially false representations to the Illinois State Board of Elections and staff members and contractors of the CPRC.
Munoz, 57, of Chicago, pleaded guilty last year to federal wire fraud and money laundering charges. U.S. District Judge John F. Kness imposed the prison sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Morris Pasqual and Jared Hasten.
Former CEO of Santa Clarita Valley Financial Services Company Sentenced to Nearly 3 Years in Prison for $2.3 Million Ponzi SchemeRead the Press Release
LOS ANGELES – The former CEO of a Valencia-based financial services company was sentenced today to 33 months in federal prison for helping to run a Ponzi scheme that defrauded dozens of investors – including his own clients – out of over $2.3 million with false promises of earning up to 20% monthly returns on their money.
Scott Allensworth, 68, of Santa Clarita, was sentenced by United States District Judge John A. Kronstadt, who also ordered him to pay $2,321,429 in restitution.
In July 2021, Allensworth pleaded guilty to one count of wire fraud.
Allensworth was the owner and CEO of Capital Growth Group Associates (CGGA), a company that provided financial services to clients, including tax advice and return preparation services, accounting services, retirement planning and investment advisory services.
From November 2015 to March 2017, Allensworth schemed to defraud investors along with David Hunt Weddle, 66, who managed a private investment fund through JustInfo LLC, a company Weddle controlled and operated out of his Somerset, Kentucky home.
Allensworth and Weddle solicited money – to be invested with CGGA and Weddle – from victim-investors, who included Allensworth’s clients. These clients trusted him based on their prior relationship with him, and recommended Allensworth to their friends and family members, who also became victims of the scheme.
To lure victim-investors, Allensworth and Weddle promised them that their money would go into a brokerage account, and they would soon realize profits because Weddle employed a special trading strategy that would limit their losses and generate investment monthly returns of between 5% and 20%.
Instead of investing the money as promised, Allensworth and Weddle used part of the funds to pay for their personal expenses, including – for Allensworth – credit card bills. In Ponzi style, they also used victim-investor money to repay and fund withdrawals requested by other victim-investors, falsely representing that the money comprising these withdrawals arose from their investment gains.
Allensworth and Weddle failed to inform victim-investors that neither of them was registered or licensed as a commodity trading advisor and that the United States Securities and Exchange Commission had subpoenaed both of them in December 2016.
Weddle also fabricated multiple false account statements which they sent to victim-investors that purported to show the investments were steadily increasing in value based on Weddle’s trading activity, when Allensworth and Weddle had misappropriated the funds.
As a result of the fraudulent scheme, Allensworth and Weddle caused more than 50 victims to suffer total losses of approximately $2,320,000.
Weddle pleaded guilty in March 2021 to one count of wire fraud. He is serving a 41-month prison sentence for that crime.
The SEC brought civil charges against Allensworth, Weddle and JustInfo LLC in October 2017. That case settled the following year with the defendants agreeing to pay more than $300,000 in civil penalties.
The FBI investigated this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section prosecuted this case.
Former Billings nursing home worker admits stealing from elderly residentRead the Press Release
BILLINGS — A Billings woman accused of stealing money from an elderly resident while employed at a Billings nursing home today admitted to fraud and identity theft charges, U.S. Attorney Leif M. Johnson said.
Elizabeth Marie Stephenson, 36, pleaded guilty to wire fraud, bank fraud and aggravated identity theft. Stephenson faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release on the bank fraud crime and a mandatory minimum two years in prison, consecutive to any other punishment, a $250,000 fine and one year of supervised release on the aggravated identity theft crime.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 27. Stephenson was released pending further proceedings.
The government alleged in court documents that in August 2020, the Billings Police Department responded to a report of ongoing theft involving an older resident at Eagle Cliff Manor, a nursing home in Billings. The nephew of and power of attorney for the victim, identified as John Doe, 96, noticed more than $11,000 was missing from Doe’s checking account, with multiple $700 withdrawals made between July and August at Wells Fargo ATMs. Additionally, a debit card was used to purchase credit on a Telmate Inmate Service account at a detention facility. Doe did not realize he was missing money from his account until someone told him. An investigation identified Stephenson, an employee, as the suspect. Stephenson had a boyfriend who was in custody and had an active Telemate account in Idaho.
The government further alleged that Eagle Cliff Manor terminated Stephenson’s employment after discovering her name on a credit card application on Doe’s Wells Fargo account. A statement for the card reflected a $3,500 payment to a criminal defense law firm in California and a $106 charge to Telemate. A receipt from the law firm indicated that Stephenson represented that she was owner of the card and provided a Billings address. Investigators also noted the first unauthorized transaction on Doe’s checking account was at Walmart on July 24, 2020 and that, in total over the next month, more than $17,000 was taken from the account, including withdrawals of $700 nearly every day.
Stephenson admitted to an investigator that she worked with Doe and was dating the individual incarcerated in Idaho but denied the thefts. Stephenson, after being confronted with the evidence, told investigators that Doe gave her his debit card and PIN and asked her to get him a six pack of beer. Stephenson went to Walmart, bought the beer and took out money for herself. Stephenson then continued to withdraw cash for her own expenses. She also admitted to transferring Doe’s funds to the Telemate account. Stephenson claimed Doe provided consent but acknowledged he did not have the capacity to authorize her taking his money.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the Billings Police Department and the United States Secret Service.
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Five Previously Deported Men Charged with Illegal Re-EntryRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that five previously deported aliens were indicted separately yesterday by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the district including Dauphin, York, Huntingdon, and Northumberland Counties.
According to United States Attorney John C. Gurganus, Casano De Jesus Espinoza-Vargas, age 59, was previously deported from the United States to Mexico in September 2010. He is alleged to have illegally reentered the United States again sometime after September 2010. On February 8, 2022, he was found in the United States in Huntingdon County, Pennsylvania, after being involved in a vehicle accident and charged with driving under the influence.
Melesio Medina-Torres, age 44, was previously deported from the United States to Mexico in October 2008. He is alleged to have illegally reentered the United States again sometime after October 2008. He was found in the United States in York County, Pennsylvania, after an arrest for simple assault and harassment.
Deyby Mizael Aguilar-Avila, age 30, was previously deported from the United States to Honduras in October 2018. He is alleged to have illegally reentered the United States again sometime after October 2018. He was found in the United States in Dauphin County, Pennsylvania, when arrested for another offense that is currently pending in the Dauphin County Court of Common Pleas.
Jose Navarrete-Bonilla a/k/a George Torres, age 35, was previously deported from the United States to Honduras in April 2012. He is alleged to have illegally reentered the United States again sometime after April 2012. He was found in the United States in Northumberland County, Pennsylvania, after an arrest by a Sunbury police officer, on charges which eventually led to a conviction for simple assault.
Espinoza-Vargas, Medina-Torres, Aguilar-Avila, and Navarrete-Bonilla face a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Fernando Contreras, age 19, a citizen of Mexico, was illegally in the country and was in possession of a firearm when encountered in Dauphin County on September 3, 2021, after a vehicle stop performed by local law enforcement.
Contreras faces a maximum penalty of 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Fitchburg Man Sentenced in Wide-Ranging Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced today in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, cocaine and cocaine base (crack cocaine) trafficking conspiracy.
Ricky Figueroa, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 31 months in prison and three years of supervised release. On Nov. 30, 2021, Figueroa pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base and 500 grams or more of cocaine, as well as to one count of conspiracy to distribute and to possess with intent to distribute 280 grams of cocaine base and 500 grams or more of cocaine.
According to court documents, following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Intercepted phone communications by the DTO and its suppliers revealed that Figueroa routinely supplied distributor quantities of cocaine and crack cocaine to the Baez DTO as well as street-level amounts of cocaine, crack cocaine and fentanyl to multiple customers. In total, Figueroa was responsible for distributing at least 1.2 kilograms of cocaine, 590 grams of crack cocaine, and 45 grams of a fentanyl and heroin mixture.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 was seized.
Figueroa was charged along with 17 others in July 2020. Figueroa is the sixth defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison and five years of supervised release. Pedro Baez pleaded guilty on Feb. 2, 2021 and is scheduled to be sentenced on May 17, 2022. Four of the remaining defendants, Amanda Ford, Branny Taveras, Hector Matos, and Rafael Hidalgo Rodriguez have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon Who Ditched a Gun in a Woman’s Purse and Then Ran from Police Sentenced to Federal PrisonRead the Press Release
A felon who possessed a firearm and then ran from the police was sentenced March 16, 2022, to more than five years in federal prison.
Christopher Cungtion, Jr., age 29, from Cedar Rapids, Iowa, received the prison term after an August 19, 2021 guilty plea to one count of possession of a firearm by a felon.
Information presented at sentencing showed that on September 7, 2020, Cungtion was a passenger in a van that was stopped by the Cedar Rapids Police Department. As the van was stopping, Cungtion placed a loaded 9mm pistol into his girlfriend’s purse. After the van stopped, he immediately ran from the van. A CRPD officer ran after and caught Cungtion and arrested him on an outstanding warrant. Officers later searched the girlfriend’s purse and found the firearm. Cungtion had previously been convicted of 20 crimes as an adult, including felonies for third degree burglary, intimidation with a dangerous weapon, willful injury resulting in bodily injury, and assault with a dangerous weapon.
Cungtion was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cungtion was sentenced to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Cungtion is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department and prosecuted by Assistant United States Attorney Dan Chatham.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20‑CR‑00100‑CJW‑MAR.
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Federal Grand Jury Indicts Former Suburban Chicago Police Officer for Allegedly Extorting Cash Payments from Local Towing BusinessesRead the Press Release
CHICAGO — A police officer in Harvey, Ill., threatened to interfere with local towing companies’ ability to compete for city work unless they paid him cash and other benefits, according to a federal indictment.
From 2011 to 2019, DERRICK MUHAMMAD served as a Harvey Police Officer and oversaw the Harvey Police Department’s Traffic Division. The role provided Muhammad with the authority to assign City of Harvey towing work to private towing companies. An indictment returned Wednesday in U.S. District Court in Chicago alleges that Muhammad conspired with a relative to obtain cash, cars, and other benefits from the towing companies on the understanding that, absent such payment, Muhammad would interfere with the ability of the companies to compete for City of Harvey towing work.
The indictment charges Muhammad, also known as “Rick,” 73, of South Holland, Ill., with conspiracy, extortion, and bribery. The indictment seeks forfeiture from Muhammad of approximately $100,000. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Brandon Gardner, Acting Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy and extortion charges are each punishable by a maximum sentence of 20 years in federal prison, while the bribery charge is punishable by up to ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Fayette County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, Joshua Lee Parsons, 42, admitted to ordering controlled substances on the dark web and having the controlled substances shipped to him at his residence in Powellton. On February 24, 2021, the United States Customs and Border Protection at the John F. Kennedy International Mail Center in New York seized approximately 49 grams of heroin from an inbound international parcel addressed to Parsons and his residence. On March 8, 2021, several law enforcement agencies conducted a controlled delivery of the parcel and executed a search warrant at the Parsons’ residence. During the search, officers recovered a loaded Hi-Point .380 handgun and multiple controlled substances, including approximately 66 grams of methamphetamine packaged in 103 separate bags. Parsons admitted that he intended to sell the methamphetamine. Parsons told officers that he had another parcel that contained methamphetamine that he ordered and had shipped to him at his residence. On March 15, 2021, law enforcement intercepted that parcel, which contained approximately 223 grams of methamphetamine.
Parsons pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine. He is scheduled to be sentenced on June 30, 2022, and faces a mandatory minimum of 10 years and up to life in prison.
United States Attorney Will Thompson made the announcement and commended the work of the Department of Homeland Security, the United States Customs and Border Protection, the United States Postal Inspection Service, the West Virginia State Police, the Central West Virginia Drug Task Force, the Metro Drug Enforcement Network Team (MDENT), and the West Virginia National Guard Reconnaissance and Aerial Interdiction Detachment.
United States District Judge Irene C. Berger presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00093.
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Father and Son Convicted of $1.7 Million COVID-19 Relief FraudRead the Press Release
A federal jury in the Western District of North Carolina convicted two men today for the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to evidence presented during a six-day trial, Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, aka Tareq Freitekh, 33, whose last known residence was in Glendale, California, obtained $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the defendants engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 payments to family members.
Izzat Freitekh was convicted of one count of conspiracy to commit money laundering, three counts of money laundering, and one count of making false statements. He faces up to 10 years in prison for conspiracy to commit money laundering, 10 years in prison for each of the money laundering counts, and five years in prison for the false statements count.
Tarik Freitekh was convicted of one count of conspiracy to commit wire fraud, one count of bank fraud, one count of conspiracy to commit money laundering, one count of money laundering, and one count of falsifying and concealing material facts. He faces up to 30 years in prison for the bank fraud count, 20 years in prison for the wire fraud and money laundering conspiracies, 10 years in prison for the money laundering count, and five years in prison for the falsifying material facts count.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service, Atlanta Division; Special Agent in Charge Donald E. Eakins of IRS Criminal Investigation (IRS-CI), Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, made the announcement.
The US Postal Inspection Service, IRS-CI, and TIGTA investigated the case.
Trial Attorneys Joshua N. DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio of the Western District of North Carolina prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Father and Son Convicted of $1.7 Million COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte convicted two men today for the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service, Atlanta Division; Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation (IRS CI), Charlotte Field Office; and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA).
According to evidence presented during a six-day trial, Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, aka Tareq Freitekh, 33, whose last known residence was in Glendale, California, obtained $1.7 million in fraudulent proceeds obtained by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, defendants engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 payments to family members.
“The wicked borrow and do not repay, but in the Freitekhs’ case they also lie to cover up the fraud,” said U.S. Attorney King. “This father and son duo exploited a national emergency for their own benefit, then tried to obstruct justice to avoid punishment. A federal jury saw through their criminal shenanigans and now the Freitekhs will be held accountable for their actions. Protecting important taxpayer-funded programs remains a priority for my office, and together with our law enforcement counterparts we will continue to identify and prosecute those who exploit these programs for their own profit.”
“The CARES Act was intended to help people and businesses harmed by the pandemic, not to line the pockets of greedy individuals. The U.S. Postal Inspection Service will continue to work with our partners to hold accountable those who lie and cheat the government out of money to enrich themselves,” said Inspector in Charge Coke.
“While businesses were suffering and doing their best to make it through the pandemic, others chose greed,” said Special Agent in Charge Eakins. “IRS CI will continue to utilize its financial expertise to follow the money and recommend the prosecution of criminals taking advantage of a crisis.”
“Today’s results demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who attempt to corruptly interfere with federal tax administration,” said Inspector General George. “We appreciate the work of the U.S. Attorney’s Office and our law enforcement partners to ensure this criminal activity is held to account.”
Izzat Freitekh was convicted of one count of conspiracy to commit money laundering, three counts of money laundering, and one count of making false statements. He faces up to 10 years in prison for conspiracy to commit money laundering, 10 years in prison for each of the money laundering counts, and five years in prison for the false statements count.
Tarik Freitekh was convicted of one count of conspiracy to commit wire fraud, one count of bank fraud, one count of conspiracy to commit money laundering, one count of money laundering, and one count of falsifying and concealing material facts. He faces up to 30 years in prison for the bank fraud count, 20 years in prison for the wire fraud and money laundering conspiracies, 10 years in prison for the money laundering count, and five years in prison for the falsifying material facts count.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Law enforcement previously obtained and executed seizure warrants for over $1.3 million in proceeds of the fraud, held in various accounts. The seized money was administratively forfeited by the federal government prior to the trial.
The US Postal Inspection Service, IRS-CI, and TIGTA investigated the case.
Trial Attorneys Joshua N. DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio of the Western District of North Carolina prosecuted the case. Assistant U.S. Attorney Benjamin Bain-Creed of the U.S. Attorney’s Office Civil Division is in charge of the forfeiture proceedings.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Essex County Man Admits Obstructing Justice while on Pre-Trial ReleaseRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted obstructing justice while on pre-trial release, U.S. Attorney Philip R. Sellinger announced.
Robert Alexander, 45, of Newark, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to a superseding indictment charging him with obstructing justice while on pre-trial release.
According to documents filed in this case and statements made in court:
On Jan.14, 2019, Alexander pleaded guilty to an information charging him with one count of making a false statement on a loan application in a criminal case that was pending before Chief U.S. District Judge Freda L. Wolfson. On Sept. 4, 2019, Judge Wolfson sentenced Alexander to 46 months in prison.
On Oct. 8, 2019 – the day before Alexander was scheduled to voluntarily surrender to the Bureau of Prisons to begin serving his sentence – he caused a forged medical note to be submitted to Judge Wolfson in support of a request to delay the date of his voluntary surrender. The forged medical note contained falsified information and was submitted with the specific intent to influence and impede Judge Wolfson in the discharge of her duties as the judge presiding over his case. At the time of the offense, Alexander was on pre-trial release.
The obstruction of justice count carries a maximum penalty of 10 years in prison and a $250,000 fine. The commission of the offense while on pre-trial release carries a maximum penalty of 10 years in prison; any term of imprisonment imposed for committing the offense while on pre-trial release must be consecutive to the term imposed on the obstruction of justice charge. Sentencing is scheduled for July 27, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by U.S. Attorneys Catherine R. Murphy, Chief of the Economic Crimes Unit, and Ryan L. O’Neill of the U.S. Attorney’s Office Health Care Fraud Unit.
Elk Point Man Charged with Production of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that an Elk Point, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography.
Hector Paulin-Torres, age 33, was indicted on March 1, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 16, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 18, 2021, Paulin-Torres knowingly employed, used, persuaded, induced, enticed, and coerced a minor female to engaged in sexually explicit conduct for the purpose of producing visual depictions, knowing such depictions would be transported in interstate or foreign commerce or mailed, and such visual depictions would be produced by any means, including by computer
The charge is merely an accusation and Paulin-Torres is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigation, the Elk Point Police Department, and the Vermillion Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Paulin-Torres was remanded to the custody of the U.S. Marshals Service pending trial which has not been set yet.
Ecuadorian and Colombian Nationals Found Guilty of Smuggling over 400 Kilograms of Cocaine in the Eastern Pacific OceanRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has convicted Luis Elias Angulo Leones (Ecuador, 29), Jhonis Alexis Landazuri Arboleda (Colombia, 33), and Dilson Daniel Arboleda Quinones (Colombia, 25) of possessing and conspiring to possess with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. Each defendant faces a mandatory minimum sentence of 10 years, and up to life, in federal prison. Their sentencing hearings have been scheduled for June 15, 2022. All three individuals were indicted on March 19, 2020.
According to testimony presented at trial, a U.S. Coast Guard (USCG) helicopter spotted a 35-foot open-hull motorboat in the Eastern Pacific Ocean, about 100 miles from the nearest point of land. The vessel was suspected of drug smuggling because it had multiple engines, multiple fuel containers on deck, was operating without navigational lights at dusk, and was operating in a location where maritime drug smuggling by similar vessels is common. The USCG Cutter Mohawk launched a small boat to investigate, found the three defendants on board, and determined the vessel to be without nationality, and therefore subject to U.S. jurisdiction. A search of the motorboat revealed 430 kilograms of cocaine, worth $12.9 million, hidden underneath the vessel’s deck.
This case was investigated by the United States Coast Guard and the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. 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.
The case was prosecuted by Special Assistant United States Attorney Tereza Ohley and Assistant United States Attorney Lauren Stoia.
Detroit Lakes Man Sentenced to Seven Years in Prison for Armed Robbery of White Earth Convenience StoreRead the Press Release
MINNEAPOLIS – A Detroit Lakes man has been sentenced to 84 months in prison followed by three years of supervised release for an armed robbery of a convenience store on the White Earth Indian Reservation. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
According to court documents, on November 11, 2020, Levi Brandin Jerome, 34, entered a convenience store located on the White Earth Indian Reservation carrying an American Tactical Imports, Omni Hybrid, multi-caliber rifle. Jerome pointed the rifle at the store clerk and demanded she open the cash register. Jerome stole approximately $2,250 in cash from the register and from a drawer next to the register before fleeing the store.
On November 2, 2021, Jerome pleaded guilty to one count of robbery.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI Headwaters Safe Trails Task Force, the Minnesota Bureau of Criminal Apprehension, the White Earth Police Department, the Becker County Sheriff’s Office, the West Central Drug Task Force, the Paul Bunyan Drug Task Force, and the Devils Lake (North Dakota) Police Department.
Assistant U.S. Attorney Alexander D. Chiquoine prosecuted the case.
Delaware County Ticket Broker Sentenced to Six Months for Conspiring to Sell Stolen U.S.G.A. Open Tickets Worth over $1.2 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that James Bell, 70, of Glen Mills, PA, who owns and operates Sherry’s Theater Ticket Agency, Inc. (“Sherry’s Tickets”), was sentenced today by United States District Judge Michael M. Baylson to six months in prison and three years of supervised release, ordered to pay $1,282,247 in restitution to the USGA, and ordered to forfeit over $598,000 in fraudulent profits for participating in a conspiracy to steal and sell more than $1.2 million worth of U.S. Open Golf tournament tickets.
In November 2021, the defendant pleaded guilty to multiple counts of fraud in connection with this ticket selling scheme. As part of his guilty plea, Bell admitted that he conspired with former United States Golf Association employee Robert Fryer (who was charged and convicted separately), to purchase from Fryer tickets to the 2017 through 2019 U.S. Open Golf Tournaments with a face value of over $1.2 million, which Fryer had stolen from the USGA. Bell admitted that he paid Fryer over $324,000 for the stolen tickets. Bell further admitted that he sold the tickets through Sherry’s Tickets for nearly $923,000, thus yielding a profit to Sherry’s of over $598,000.
“Bell stole revenue from the USGA, a legitimate business that pays taxes, employs many, supports a non-profit organization, and brings excitement and income to our district with U.S. Open events at golf courses around the region,” said U.S. Attorney Williams. “Criminals that conduct ticket schemes like this prey on the excitement surrounding big events; fans should remember that any item with a low price that seems ‘too good to be true’ should be cause for caution and concern.”
“This defendant’s actions are akin to a thief selling someone else’s property to make a quick buck,” said Special Agent in Charge Jacqueline Maguire. “The fraud at the center of this conspiracy took money from a legitimate business and earned this defendant a ticket to prison and a felony conviction to his name.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Contractors Indicted for Rigging Bids on Subcontract Work and Defrauding U.S. Military Bases in South KoreaRead the Press Release
A federal grand jury in the Western District of Texas returned an indictment charging two South Korean nationals for their roles in a conspiracy to restrain trade and a scheme to defraud the United States in connection with operation and maintenance work for U.S. military installations in South Korea.
According to the indictment, Hyun Ki Shin and Hyuk Jin Kwon were officers of a South Korean construction company that performed subcontract work on U.S. military installations in South Korea. Kwon was also a part owner of the company. Beginning at least as early as November 2018, Kwon and Shin, along with others, conspired to rig bids and fix prices for subcontract work, and defrauded the U.S. Department of Defense in order to obtain millions of dollars in repair and maintenance subcontract work at U.S military installations in South Korea.
“Bid rigging, price fixing and fraud are crimes,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We will not stand by as criminals engage in illegal conduct to harm our military installations overseas.”
“By allegedly rigging bids with their competitors, the defendants cheated to obtain U.S. Army-funded repair and construction subcontracts,” said Special Agent-in-Charge Ray Park of the U.S. Army Criminal Investigation Division’s (Army CID) Major Procurement Fraud Field Office-Pacific. “U.S Army CID Special Agents remain on guard to investigate and hold individuals accountable who corrupt the integrity of the Army's procurement process.”
“The defendants allegedly conspired to fix prices and rig bids for repair and maintenance work at U.S. military bases,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These actions are not only illegal, but they fundamentally violate the tenets of fair trade. This indictment shows that the FBI and our law enforcement partners are committed to investigating schemes intended to defraud others, even those devised on foreign soil.”
The seven-count indictment filed in the U.S. District Court for the Western District of Texas charges Kwon and Shin with one count of conspiracy to restrain trade and six counts of wire fraud. This indictment is the first in an ongoing investigation into bid rigging and price fixing for operation and maintenance work for U.S. military installations in South Korea.
The maximum penalty for conspiracy to restrain trade under the Sherman Antitrust Act is 10 years of imprisonment and a fine of $1 million. For the wire fraud counts, Kwon and Shin face a maximum penalty of 20 years in prison and a $250,000 fine. The maximum fine may be increased to twice the gain derived from the crime, or twice the loss suffered by victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The charges are a result of a federal investigation conducted by the Antitrust Division’s Washington Criminal II Section, Army CID and the FBI, with assistance from the U.S. Attorney’s Office for the Western District of Texas.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Contractor Who Lied to OSHA Investigators is SentencedRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, Jonathan Mellone, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, and Galen Blanton, Regional Administrator of the Occupational Safety and Health Administration (OSHA) Criminal Investigations Team, Region 1, announced that LUIS F. ESTRADA, 48, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which Estrada must serve in home confinement, for making false statements to OSHA while the agency conducted an investigation into a job site he controlled. Judge Bolden also ordered Estrada to perform 250 hours of community service.
According to court documents and statements made in court, Estrada is the owner of L.L.E. Construction, LLC. In February 2018, Estrada and L.L.E. Construction entered into a written contract to perform roof repairs and other construction services at a property located on Main Street in Bridgeport. In February and March 2018, Estrada was provided with three checks totaling $11,000 for performing the work. On March 1, 2018, a compliance officer with OSHA visited the property and observed what he believed to be various safety infractions by construction workers who were making the roof repairs. The officer then initiated an on-site inspection into the suspected infractions. Estrada was not present at the Main Street property at the time, but spoke to the compliance officer by mobile phone.
On May 22, 2018, OSHA compliance officers served Estrada with a subpoena that demanded documents and records related to L.L.E. Construction’s work at the Main Street property in February and March 2018. On July 30, 2018, Estrada hand-delivered a written response stating that he “did not do any work for the ‘LLE Roofing Project,’” that “[t]here is no payroll because [he] did not work on the ‘LLE Roofing Project,’” and that he “do[es] not have any contract or any documents regarding the ‘LLE Roofing Project.’”
On March 3, 2021, Estrada pleaded guilty to one count of making false statements to the U.S. Department of Labor, admitting that he lied in his written statements on July 30, 2018, and that he later lied in a deposition convened as part of the OSHA investigation into the suspected safety violations at the site.
This matter was investigated by the U.S. Department of Labor, Office of Inspector General, and the OSHA Criminal Investigations Team, Region 1. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Community College Coach and Elementary School Assistant Charged with Sexually Exploiting a Minor, Receipt of Child PornographyRead the Press Release
EUGENE, Ore.—A Portland man who serves as the head men’s basketball coach at Mt. Hood Community College and as an educational assistant at Hall Elementary School, both in Gresham, Oregon, is facing federal charges for soliciting and receiving sexually explicit images from a minor he met at a high school basketball camp.
Nathan Ezell Bowie, 35, has been charged by federal criminal complaint with sexually exploiting a child, coercion and enticement, and receipt of child pornography.
According to in-court statements, after holding a high school basketball camp in Douglas County, Oregon, Bowie is alleged to have communicated on social media with a minor female. Bowie solicited and received sexually explicit images from the child and threatened to disclose them to others if she did not send more. Bowie also discussed meeting the minor in person.
On March 16, 2022, he was transferred from state to federal custody to make his first appearance in federal court. A detention hearing will be held on March 18, 2022.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was first investigated by the Douglas County Sheriff’s Office and FBI Portland’s Eugene Resident Agency Office will assume the ongoing investigation. This case is being prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clintwood Man Pleads Guilty to Bankruptcy FraudRead the Press Release
ABINGDON, Va. – A Clintwood, Virginia man, who concealed his ownership interest in a waste management company and failed to report his employment and income from that business on his Chapter 7 bankruptcy filing, pleaded guilty yesterday to one count of bankruptcy fraud in federal court.
According to court documents, in June of 2020, David Bryan “Pokey” Stanley, 48, filed for Chapter 7 bankruptcy with the United States Bankruptcy Court for the Western District of Virginia. At the time of his filing, Stanley testified falsely under oath that he was unemployed and had no income whatsoever.
However, at the time of his bankruptcy filing, Stanley knew he had an ownership interest in and received income from a roll-off waste container business he established in 2016 called Interstate Waste Management, LLC.
Stanley is scheduled to be sentenced on June 7, 2022 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Office of the United States Trustee and the Federal Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
Charlotte Woman on Federal Supervised Release Indicted for COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury has returned a criminal indictment charging Nkhenge Shropshire, 48, of Charlotte, with wire fraud conspiracy, for allegedly submitting fraudulent loan applications to the U.S. Small Business Administration (SBA) to obtain COVID-19 relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte.
According to allegations contained in the indictment, Shropshire conspired with others to defraud the SBA by submitting fraudulent applications for Economic Disaster Relief Loans (EIDL), available under the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act, to business owners adversely impacted by the COVID-19 pandemic. To obtain a loan under the EIDL program, business owners are required to submit certain information in support of the application, including information about the business’s gross revenues in the 12 months prior to COVID-19’s impact and the number of workers employed by the company, among other things.
The indictment alleges that, between July 2, and September 2, 2020, Shropshire and her co-conspirators submitted at least 10 fraudulent EIDL applications to the SBA. The applications and supporting documents were allegedly for fictitious businesses and contained false information regarding the total number of employees employed by each business and total gross revenues. The indictment alleges that Shropshire and her co-conspirators attempted to obtain at least $331,072 in relief funds. The SBA accepted and paid out at least $45,000 to Shropshire and her co-conspirators as a result of the scheme. According to the indictment, Shropshire spent the fraudulent proceeds on personal expenses, including hotel stays, shopping sprees, and cars.
Court records show that, in 2014, Shropshire was convicted of filing false tax returns and lying on a loan application and was sentenced to 33 months in prison and five years of supervised release. Shropshire was on federal supervised release when she allegedly participated in the EIDL fraud scheme. She is currently in federal custody and will have her initial appearance in federal court in Charlotte.
The charges contained in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended USPIS for their investigation that led to today’s charges.
Assistant United States Attorney Matthew Warren, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina need the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint. Complaints filed will be reviewed by the NCDF and referred to federal, state, local or international law enforcement or regulatory agencies for investigation. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Charlotte Business Owner Is Indicted for Selling Stolen iPhones OverseasRead the Press Release
CHARLOTTE, N.C. – A Charlotte business owner is facing federal charges for allegedly selling stolen Apple iPhones (iPhones) and other electronic devices overseas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment charges Rami Mahmod Mhana, 45, of Charlotte, with four counts of transportation of stolen goods.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service (USSS), Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, Mhana was the owner of Wireless City Fashions, Inc. (Wireless City) and Protocol Business Group Inc. (Protocol), located at 441 Bradford Drive in Charlotte. The indictment alleges that, from at least May 2017 through October 2019, Mhana purchased hundreds of fraudulently obtained iPhones and other electronic devices which he sold and shipped overseas to the United Arab Emirates (the U.A.E.) and the Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong). The indictment also alleges that Mhana knew these devices were stolen or was willfully blind to the fact.
As alleged in the indictment, Mhana obtained the stolen devices from multiple “boosters.” A booster is a person who steals goods and products and sells them for profit. The indictment further alleges that Wireless City and Protocol were known to boosters as places they could sell stolen devices for cash with no questions asked. Mhana allegedly provided his employees with a price list of how much they should pay for certain iPhones and other electronic devices, but generally Mhana paid more for new or unlocked devices. Over the course of the scheme, Mhana allegedly sold thousands of dollars in stolen iPhones and devices to overseas buyers.
Mhana will be ordered to appear on a summons for his initial appearance, which will be scheduled in federal court in Charlotte. If convicted, Mhana faces a maximum of 10 years in prison and a $250,000 fine for each count of transportation of stolen goods.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys Michael E. Savage and William Bozin of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Chain Saw Chain and Blade Importer to Pay over $500,000 to Resolve False Claims Act AllegationsRead the Press Release
TriLink Saw Chain, LLC, and TriLink Global, LLC (TriLink), nationwide importers of chain saw chains and blades manufactured in China and intended for sale in the United States, have agreed to pay $525,000 to resolve allegations that they violated the False Claims Act by misclassifying their imported chain saw chains and blades to U.S. Customs and Border Protection (USCBP).
The government specifically alleged that from September 24, 2018, though June 10, 2019, TriLink classified imported chain saw chains and blades under inappropriate subheadings of the Harmonized Tariff Schedule of the United States. The government further alleged that TriLink’s false classification of the imported chain saw chains and blades during that time period resulted in nonpayment of applicable tariffs due and owing to the United States pursuant to Section 301 of the Trade Act of 1974.
“False classification of imported goods deprives the United States of tariffs that are due and owing under the law and results in unfair competition against law-abiding companies,” said Timothy Duax, Acting United States Attorney for the Northern District of Iowa. “We will continue to work with our federal partners to hold importers accountable to ensure that they do not avoid payment to the United States.”
LaFonda D. Sutton-Burke, the Chicago Director of Field Operations for U.S. Customs and Border Protection stated, “This is a prime example of the vigilance of our CBP employees, and our use of a whole of government approach. Entities that attempt to defraud the U.S. Government, the American people, and our economy will not succeed.”
This civil matter arose from an action brought under the whistleblower provisions of the False Claims Act. Pursuant to that Act and the settlement agreement, the whistleblower will share in the United States’ financial recovery.
The claims asserted against TriLink are allegations only; there was no determination or admission of liability.
The case was handled by Assistant United States Attorneys Matthew K. Gillespie and Jacob A. Schunk and was investigated in coordination with USCBP.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CV-58-LTS-KEM.
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California Man with Ghost Gun Sentenced for Federal Firearms ViolationRead the Press Release
PLANO, Texas – A Pasadena, CA man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Uri Reto Seiser, 37, pleaded guilty on Sep. 3, 2021 to being a felon in possession of ammunition and was sentenced to 46 months in federal prison today by U.S. District Judge Sean D. Jordan. Seiser was ordered not to have any contact with any victim, witness or any other individual associated with this case. Seiser was also prohibited from entering the State of Texas without prior authorization from the U.S. Probation Office.
“Today’s sentencing demonstrates excellent coordination between local and federal law enforcement,” said U.S. Attorney Brit Featherston. “Patrol officers’ actions on the street likely prevented the use of violence against an innocent person. These are the types of actions our law enforcement partners take every day to keep their communities safe, and most of the time these acts go unnoticed.”
According to information presented in court, on Nov. 14, 2020, an officer with the Corinth Police Department stopped a vehicle driven by Seiser. Seiser stated he had just arrived from California to "reconcile" with his girlfriend, who had filed harassment charges on him. Seiser was subsequently arrested for that outstanding harassment warrant. During a search of his vehicle, the officer located a loaded untraceable homemade firearm, commonly known as a “ghost gun” and 49 rounds of 9mm caliber ammunition.
Evidence presented in court showed that Seiser had been threatening his ex-girlfriend for several months after she moved from California to Texas. Seiser admitted that he assembled the weapon fully aware that he was prohibited from possessing a firearm or ammunition because he was a convicted felon. Seiser had previously been convicted of violating a protective order, a felony offense, in Pasadena, CA, on June 20, 2019.
Seiser was indicted by a federal grand jury on Dec. 9, 2020, and charged with a federal firearms violation.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Corinth Police Department and prosecuted by Assistant U.S. Attorney Tracey Batson.
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California Man Sentenced to over 14 Years in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
EL DORADO – A California man was sentenced today to 170 months in prison followed by four years of supervised release on one count of Possession with the Intent to Distribute Methamphetamine and one count of Possessing a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
On August 2, 2019, a deputy with the Columbia County Sheriff’s Office began following a vehicle after it committed a traffic violation, which resulted in continued pursuit after the driver refused to pull over. The deputy continued pursuit of the vehicle as multiple other deputies and officers were called to assist. A male passenger jumped out of the vehicle while the driver continued fleeing. The vehicle rammed a Magnolia Police unit as it continued driving recklessly. The vehicle was eventually stopped after the two rear tires were shot out by law enforcement. The driver then bailed out of the vehicle and fled into the woods.
A search of the vehicle resulted in law enforcement locating and seizing five firearms, a jar of marijuana, baggies, and a bag of suspected methamphetamine. The suspected methamphetamine was sent to the Arkansas Crime Laboratory where it was determined to be 255.4 grams of methamphetamine.
During the investigation it was determined that the driver was Damien Andrew Wolfson, 28, and that he had an active warrant out of California. Later in the investigation law enforcement received information that Wolfson was on his way to Texarkana in an SUV. The SUV was located, and a traffic stop resulted in law enforcement finding and arresting Wolfson while hiding in the rear cargo area of the SUV.
U.S. Attorney David Clay Fowlkes made the announcement.
The Columbia County Sheriff’s Department, the Magnolia Police Department and the ATF investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
California Man Charged with Fentanyl TraffickingRead the Press Release
KANSAS CITY, Mo. – A California man was charged in federal court today with smuggling more than four kilograms of counterfeit pills that contain fentanyl aboard a bus traveling through Kansas City, Missouri, from Los Angeles, Calif.
Matthew John Gomez, 27, was charged with one count of possessing fentanyl with the intent to distribute in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s federal criminal complaint, members of the Missouri Western Interdiction Task Force (MoWIN) watched Gomez at a local bus terminal on Wednesday, March 16, as he got off a bus traveling through Kansas City from Los Angeles. Gomez was wearing a backpack and carrying a large duffel bag. He walked out the front doors of the bus terminal and paced back and forth on the sidewalk while making a call on his cell phone. A police detective contacted Gomez, who said he was traveling to Minneapolis, Minnesota.
The detective asked Gomez if he would consent to a search of his luggage. Gomez placed his duffel bag on the ground and was in the process of removing his backpack when he quickly stepped away from the detective in an attempt to flee. A struggle ensued, and Gomez was eventually placed under arrest and escorted into the terminal.
A police dog alerted to the presence of drugs in Gomez’s duffel bag and backpack. Officers searched Gomez’s backpack and found three large, heat-sealed packages that contained numerous blue M30 pills. Although blue M30 pills typically contain 30 milligrams of oxycodone hydrochloride, law enforcement officers are aware that such pills are commonly counterfeit pills that are made with fentanyl. The gross weight of the pills was 4,127 grams, which is approximately 9.1 pounds. A forensic specialist with the Kansas City Police Crime Laboratory confirmed that the recovered pills contain fentanyl.
Gomez told investigators he was paid $500 before leaving Los Angeles and was to be paid an additional $2,000 when he returned.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Sarah J. Rasalam. It was investigated by the Kansas City Mo., Police Department and the Drug Enforcement Administration.
CEO of Local Financial Firm Sentenced in Multi-Million Dollar Securities and Tax Fraud Scheme; Forfeits MillionsRead the Press Release
Assistant U.S. Attorney Carl F. Brooker, IV (619) 546-7994
NEWS RELEASE SUMMARY – March 17, 2022
SAN DIEGO – David John Nava of La Jolla was sentenced in federal court today to 12 months for his role in multiple felonies related to the operation of his financial firm, Surf Financial Group, LLC, including conspiring to defraud shareholders of publicly traded companies, transmitting millions of dollars through an unlicensed money transmitting business, and falsifying multiple years of federal tax returns. He was also ordered to pay $3,716,888.27 in restitution.
Nava pleaded guilty on October 7, 2020, to one count of conspiracy to commit securities fraud, one count of operating an unlicensed money transmitting business, and one count of tax fraud. Pursuant to his plea agreement, Nava agreed to forfeit more than $3.1 million for his crimes.
According to the plea agreement and sentencing papers, Nava managed Surf Financial Group, LLC despite federal securities regulators permanently banning and censuring him in 1994 from participating in the industry. Nava admitted that he and other co-conspirators, including a licensed attorney, converted the debt of various publicly traded companies under materially false and fraudulent pretenses into unrestricted stock and then sold the stock for profit. Nava further admitted that he and his co-conspirators carried out their fraudulent scheme by entering into agreements where Nava sold shares of various entities’ stock on public exchanges after fraudulently claiming an exemption from the U.S. Securities and Exchange Commission’s (SEC) registration requirements for selling securities in the public marketplace.
To conceal his involvement in the securities fraud scheme, Nava admitted using various nominees to ensure that, as Nava described it, he was a “ghost” in the transactions. Brokerage firms relied on the purported truth and accuracy of the attorney opinion letters in evaluating whether to clear the sale of shares of the restricted stocks on public markets. After the stocks were cleared for sale as a result of the false attorney opinion letters, Nava and his co-conspirators sold millions of shares of these stocks to the investing public.
Nava further admitted that, from approximately 2017 to 2018, he operated an unlicensed money transmitting business as a means to transmit financial proceeds from foreign locations, including Hong Kong and the Bahamas, as a way to disguise the source, origin and control of the proceeds.
As stated in his plea agreement, in 2017 Nava entered into a business partnership with at least one person who resided in Mexico and delivered dairy products for a living. To conceal Nava’s control over the money transmitting business, Nava directed the Mexican resident to open a bank account at a financial institution in San Diego, and to transmit millions of dollars in funds as directed by Nava. Nava failed to register his money transmitting business with the U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, as required under federal law.
“This defendant stepped outside the boundaries of legal business practices and used his business acumen and connections for a criminal purpose,” said U.S. Attorney Randy Grossman. “He concocted a complex, international scheme to deceive shareholders, launder proceeds of the fraud through Mexico, and hide profits from the IRS. The sentence imposed by the court sends a message that serious crimes result in serious consequences.” Grossman thanked the prosecution team and HSI and IRS agents for their excellent work on this case.
“CEOs are not above the law,” said Chad Plantz, Special Agent in Charge of HSI, San Diego. “Today’s sentencing sends a message to white collar criminals that they will be held accountable. HSI San Diego and Costa Pacifica Money Laundering Task Force will continue to aggressively investigate and work to prosecute securities fraud and other financial crimes.”
“Today’s sentencing holds David Nava accountable for his crimes against the American tax system he cheated and the innocent Americans he victimized,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “Schemes like this cannot and will not go unnoticed. IRS Criminal Investigation is committed to working with our partners to investigate fraudulent schemes and trace the proceeds. We will hold fraudsters accountable and they will face the consequences, including serving time in federal prison.”
DEFENDANTS Case Number: 20-cr-03085-DMS
David John Nava La Jolla, CA Age: 63
SUMMARY OF CHARGES
Conspiracy to Commit Securities Fraud – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, restitution, and $250,000 fine
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison, forfeiture, and $250,000 fine
Tax Fraud – Title 26 U.S.C. Section 7206(1)
Maximum Penalty: Three years in prison, and $100,000 fine
AGENCIES
Homeland Security Investigations - Costa Pacifico Money Laundering Task Force
IRS Criminal Investigation – Financial Investigations and Border Crimes Task Force
Business Owner Sentenced to Prison, Ordered to Pay Restitution, for CARES Act PPP FraudRead the Press Release
VALDOSTA, Ga. – A Georgia man convicted for money laundering after he fraudulently filed for $2.6 million in Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was sentenced to prison and ordered to pay restitution exceeding $800,000.
Anthony J. Boncimino, 47, of Sycamore, Georgia, was sentenced to serve 36 months in prison to be followed by three years of supervised release and ordered to pay $802,321.28 in restitution to the Small Business Administration by U.S. District Judge Louis Sands on March 16. The ordered restitution is in addition to $507,556.23 in loan funds seized from Boncimino’s bank accounts by the government during the investigation. Boncimino also repaid more than $1.3 million on two of the illegally obtained loans prior to sentencing. Boncimino previously pleaded guilty to one count of money laundering. There is no parole in the federal system.
“The U.S. Attorney’s Office is pursuing federal prosecution against those who deliberately cheated programs available for small businesses and citizens struggling to stay afoot during the global pandemic,” said U.S. Attorney Peter D. Leary. “Protecting honorable and hard-working people from fraudsters is a priority for our office and our law enforcement partners.”
According to court documents, Boncimino admitted that he knowingly created two fictitious companies in order to obtain PPP loans fraudulently and obtained PPP loans for his moving business by falsifying payroll information. In all, Boncimino collected $2,671,871.74 in four PPP loans from three lender banks using fraud. Boncimino created fake IRS forms for his fictious companies and submitted these and other fraudulent records to the lender banks and the SBA. Boncimino used the money to pay for state and federal taxes; he told investigators he wanted a safety net for his family and his moving business.
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.
Small Business Administration-OIG Eastern Region, the Treasury Inspector General for Tax Administration and IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Robert McCullers is prosecuting the case. Retired Assistant U.S. Attorney Jim Crane initiated the prosecution of this case.
Bogalusa Rapper Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAVORIOUS SCOTT, aka JAYDAYOUNGAN, age 23, a Bogalusa resident and rapper pled guilty on March 16, 2022 before United States District Judge Sarah S. Vance to a one-count indictment charging him with possession of a firearm while under indictment or felony, in violation of Title 18, United States Code, Sections 922(n)(1) and 924(a)(1)(D), announced U.S. Attorney Duane A. Evans.
According to court documents, on October 29, 2021, Officers with the Bogalusa Police Department executed a traffic stop on a silver-colored Audi bearing a Virginia license plate traveling south on South Columbia Street in Bogalusa, Louisiana because the vehicle possessed a switched license plate. SCOTT, the driver of the vehicle, failed to provide his license or vehicle registration. While speaking to SCOTT and the passenger, officers smelled a strong odor of marijuana in the vehicle. The officers also observed a black handgun on the driver’s side floorboard directly beneath SCOTT’S legs. Officers removed SCOTT from the vehicle and observed a small amount of suspected marijuana in the driver’s seat. Officers then recovered a loaded Ruger Model Security-9, nine-millimeter, pistol, bearing serial Number 384-77996 from the driver’s side floorboard.
At the time that the officers located and seized the firearm from the floorboard, SCOTT was under indictment for felony crimes. On March 31st, 2020, a grand jury in Harris County, Texas returned two indictments for possession of a controlled substance weighing more than 4 grams and less than 200 grams. Also, the grand jury charged SCOTT with assault of a pregnant person.
SCOTT faces a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00, up to (3) years of supervised release following any term of imprisonment, and a mandatory $100.00 special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bogalusa Police Department. The prosecution is being handled by Assistant United States Attorney André Jones.
Bessemer Man Sentenced to 211 Months in Prison for Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A Bessemer man was sentenced this week on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Homeland Security Investigations (HSI) Special Agent in Charge Katrina Berger.
United States District Court Judge Anna M. Manasco sentenced Corey Leman Hines, 37, to 151 months in prison for trafficking methamphetamine, heroin, and fentanyl, and 60 months for carrying a firearm during and in relation to a drug trafficking crime. Hines pleaded guilty to the charges in December.
According to the plea agreement, on August 23, 2019, Hines sold methamphetamine and heroin to a confidential source at a residence in Bessemer. Later that day, agents arrived to arrest Hines on narcotics charges, and discovered a semi-automatic pistol in his waistband, along with 248 grams of 97% pure methamphetamine, digital scales, and additional controlled substances containing a mixture of heroin and fentanyl.
“As today’s sentence makes plain, trafficking dangerous drugs while carrying a gun can result in a long prison sentence,” said U.S. Attorney Escalona. “I am grateful for the work of HSI in removing this drug dealer from our neighborhoods.”
“Finding and arresting criminals trafficking illegal drugs greatly improves the safety of the community by preventing this poison from finding its way onto our streets,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Disrupting and dismantling drug trafficking organizations is one of HSI’s highest priorities and we are proud of the work that we and our partners are doing.”
Homeland Security Investigations along with the Alabama Law Enforcement Agency investigated the case. Assistant U.S. Attorney Allison Garnett prosecuted the case.
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Bank Teller Sentenced for Embezzling Customer FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DEMETRIA MYERS SILVIO, age 32, of New Orleans, Louisiana, was sentenced on March 15, 2022 for Wire Fraud, in violation of Title 18, United States Code, Section 1343. SILVIO pled guilty to this offense on October 12, 2021.
According to court documents, between December 3, 2018 and December 6, 2019, SILVIO forged approximately 66 checks that were drawn on IberiaBank accounts belonging to five customers. SILVIO deposited the fraudulent checks into her own bank accounts with Chase Bank and Capital One. Through this scheme, SILVIO embezzled over $63,000.00.
U.S. District Judge Wendy B. Vitter sentenced SILVIO to three (3) years probation. In addition, SILVIO was ordered to pay restitution in the amount of $63,486.18 to IberiaBank and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni.
Aneth Man Sentenced to 108 Months in Prison for Crimes Related to Shooting at Law Enforcement AgentsRead the Press Release
SALT LAKE CITY – Cecil T. Vijil Jr., 39, of Aneth, was sentenced to 96 months in federal prison after being convicted of assaulting an FBI Special Agent and assaulting a San Juan County Sheriff’s Deputy with a dangerous weapon within Indian Country. Vijil was sentenced to an additional 12 months in prison for escaping from federal custody during his pre-trial detention in Cache County, Utah. After his release from federal prison, Vijil has been ordered to serve five years of supervised release.
According to allegations contained in a federal complaint, Vijil opened fire on an FBI Special Agent and a San Juan County Sheriff’s Deputy with an AR-15 style semi-automatic rifle on April 30, 2020. The FBI agent and the Sheriff’s Deputy had gone to Vijil ’s home to question him about his involvement in an incident where he allegedly shot at a store in Mexican Hat earlier the same day. Upon their arrival to his home, Vijil exited his home and shot several rounds from the rifle that were directed at the vehicle being driven by the Sheriff’s Deputy and the FBI agent.
In the plea agreement, Vijil admitted that he forcibly assaulted an FBI Special Agent while the agent was engaged in the performance of her official duties by shooting at the agent with a rifle. Vijil also admitted that he shot at another victim known as “C.W.” within the geographical boundaries of Indian Country and that he intended to do harm to C.W. Vijil also admitted that he escaped from the Cache County Jail while being held in federal pre-trial custody on charges related to shooting at the FBI Special Agent and “C.W.”
The case was prosecuted by Assistant United States Attorneys from the U.S. Attorney’s Office for the District of Utah. The case was investigated by Special Agents from the FBI and the San Juan County Sheriff’s Office.
16 March 2022
Ypsilanti man sentenced for possessing a machinegun and helping a convicted felon possess a second machinegunRead the Press Release
An Ypsilanti man was sentenced yesterday to one year in federal prison after pleading guilty to possessing an illegal machinegun and aiding and abetting a convicted felon’s possession of a second illegal machinegun, announced United States Attorney Dawn Ison.
Joining Ison in the announcement was Josh Hauxhurst, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Detroit Field Office.
United States District Judge Judith Levy sentenced Danny Jo Thompson, 30, after he pleaded guilty to building and possessing an illegal machinegun and to helping a convicted felon—Eric Allport—build and possess his own machinegun. Evidence showed that Thompson and Allport shared violent, anti-law enforcement beliefs, culminating in Allport shooting an FBI agent in October 2020: law enforcement found Allport’s fully automatic machinegun and hundreds of rounds of ammunition in his truck at the scene of the shootout.
Evidence showed that Thompson and Allport were self-identified Boogaloo adherents, a decentralized, primarily anti-government, anti-authority, anti-law enforcement movement. Thompson and Allport regularly and openly espoused violent, anti-law enforcement rhetoric. Allport specifically sent Thompson messages about his willingness and desire to shoot law-enforcement officers. At the same time that they shared these communications, Thompson built himself an illegal machinegun. And knowing that Allport was a felon—knowing that Allport wanted to shoot a law-enforcement officer—Thompson also bought the parts and helped Allport build his own machinegun.
On October 2, 2020, FBI agents attempted to arrest Allport on weapons charges. Allport pulled out a gun and started shooting at the agents, hitting one, and dying in the return fire. Allport’s machinegun and hundreds of rounds of ammunition—some in magazines taped together to allow for faster changing of magazines—were in his truck in the same parking lot as the shootout. Thompson’s violent, anti-law enforcement statements to Allport encouraged this outcome.
“This defendant armed Eric Allport, a felon, who repeatedly expressed his desire to commit violence against law enforcement—those who swore an oath to protect us,” said US Attorney Ison. “Allport later shot an FBI agent in a busy commercial parking lot. Anyone thinking about committing a violent act against law enforcement or arming someone else who commits such an act needs to know that we will prosecute you aggressively. Violence against our community or law enforcement will not be tolerated.”
“It is difficult to calculate the injury and loss of life that could have resulted from the use of these illegal machineguns in a confrontation with law enforcement. Fortunately, the FBI's Joint Terrorism Task Force was able to disrupt the threat posed by Thompson and Allport ,” said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Office. “Preventing gun violence is a top priority for the FBI and this investigation is an example of the kind of work we do every day to keep our communities safe.”
This investigation was led by FBI agents assigned to the Joint Terrorism Task Force, and the case was prosecuted by Assistant U.S. Attorney Hank Moon.
York County Man Sentenced to 41 Months’ Imprisonment for Cocaine TraffickingRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Denzell Swan, age 38, of York, Pennsylvania, was sentenced on March 14, 2022, to 41 months’ imprisonment to be followed by three years of supervised release, by U.S. District Court Judge Christopher C. Conner for distribution of cocaine.
According to United States Attorney John C. Gurganus, following a year-long investigation by the Bureau of Alcohol, Firearms, Tobacco and Explosives focusing on drug activity at a bar in York City, it was determined that Swan was part of a drug trafficking organization. Using an undercover federal agent, federal law enforcement purchased more than 500 grams of crack cocaine from Swan and his co-conspirators in 2019.
As part of the overall investigation, the United States Attorney’s Office charged others affiliated with the distribution of cocaine in York. The status of the other cases is as follows:
- Anthony Rankins is awaiting trial;
- Dorral Basknight is awaiting trial;
- William Barton was sentenced to 180 months’ imprisonment;
- Michael Adams pleaded guilty and is awaiting sentencing; and
- Furman Dennis pleaded guilty and is awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant U.S. Attorney Johnny Baer is prosecuting the case.
This case was 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Watertown Man Sentenced for Receipt, Distribution, and Transportation of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Watertown, South Dakota, man convicted at a jury trial of one count of Receipt and Distribution of Child Pornography and one count of Transportation of Child Pornography was sentenced on March 15, 2022, by U.S. District Judge Charles B. Kornmann.
Vincent Michael Perez, age 37, was sentenced to 262 months in federal prison for each count to be served concurrently, 10 years of supervised release on each count to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Perez was indicted by a federal grand jury on August 17, 2020.
The conviction stemmed from incidents between August 7 and August 17, 2019, when Perez knowingly received and distributed child pornography using a MeWe social media account. Perez also uploaded pornographic images of children to the same social media account. Law enforcement investigated the case after receiving a cybertip generated by MeWe. A detective with the Watertown Police Department tracked the history of internet use to Perez. The MeWe account contained numerous files of child pornography that Perez shared with other MeWe users.
This case was investigated by the Watertown Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Perez was immediately turned over to the custody of the U.S. Marshals Service.
Waterloo Woman Sentenced to Federal Prison for Buying Gun for FriendRead the Press Release
A Waterloo woman who purchased a gun for her friend was sentenced March 15, 2022, to six months in prison.
Destiny Nacole Harrington, age 21, from Waterloo, Iowa, received the prison sentence after a November 8, 2021 guilty plea to making a false statement during the purchase of a firearm.
Information disclosed at sentencing and at her plea hearing showed that, in August 2021, Harrington purchased a 9mm firearm from a business in Cedar Falls, Iowa. During the purchase, Harrington represented to the business that she was purchasing the gun for herself. Harrington was actually buying the firearm for her friend, who was prohibited from possessing guns because he was a felon. Less than 48 hours later, the firearm that Harrington purchased was used by someone else to shoot and kill someone. There is no evidence that Harrington knew the gun was going to be used in the homicide. Harrington has no criminal history.
Harrington was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harrington was sentenced to six months’ imprisonment, followed by four months of home detention. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Cedar Falls Police Department, the Waterloo Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02066.
U.S. Departments of Justice and Treasury Launch Multilateral Russian Oligarch Task ForceRead the Press Release
Attorney General Merrick B. Garland and Secretary of the Treasury Janet L. Yellen today met virtually with representatives from Australia, Canada, Germany, France, Italy, Japan, the United Kingdom, and the European Commission, to launch the Russian Elites, Proxies, and Oligarchs (REPO) multilateral task force. The task force was first announced by leaders on Feb. 26.
The task force, consisting of Finance Ministry and Justice or Home Ministry in each member jurisdiction, each committed to using their respective authorities in concert with other appropriate ministries to collect and share information to take concrete actions, including sanctions, asset freezing, civil and criminal asset seizure, and criminal prosecution.
Cooperation between the U.S. government and foreign partners has already yielded notable successes. In the last three weeks alone, information provided by U.S. law enforcement to foreign partners has contributed to the restraint of multiple vessels controlled by sanctioned individuals and entities. Collectively, these vessels are estimated to be worth hundreds of millions of dollars.
“We are already working with our international partners to freeze and seize properties belonging to sanctioned Russian oligarchs worldwide,” said Attorney General Garland. “We will continue to work together to take all appropriate actions against those whose criminal acts enable the Russian government to continue its unjust war against Ukraine.”
“Our sanctions, trade restrictions, and other measures have already imposed significant costs on Russia, its leadership, and those who enabled Putin’s unprovoked invasion into Ukraine,” said Secretary Yellen. “This multilateral task force will raise those costs even more, by galvanizing coordinated efforts to freeze and seize assets of these individuals in jurisdictions around the world and deny safe haven for their ill-gotten gains.”
The REPO task force members discussed ways to ensure the effective, coordinated implementation of the group’s collective financial sanctions relating to Russia, as well as assistance to other nations to locate and freeze assets located within their jurisdictions. Participants also discussed the need to preserve evidence and determine whether these frozen assets, or other assets linked to these sanctioned individuals or entities, are subject to forfeiture. Finally, the task force discussed ways to bring to justice enablers and gatekeepers who have facilitated the movement of sanctioned assets or other illicit funds.
The Department of Justice’s newly launched Task Force KleptoCapture, which the Attorney General established on March 2, will help support this international effort. Task Force KleptoCapture is designed to help deploy U.S. prosecutorial and law enforcement resources to identify sanctions evasion and related criminal conduct.
In addition to the launch of the REPO task force, Treasury took steps to boost cooperation and intelligence sharing. Treasury’s Financial Crimes Enforcement Network (FinCEN) today will join in a statement with counterparts in task force member countries and others to increase information sharing. FinCEN will also release an alert for financial institutions about the importance of identifying and reporting suspicious transactions by sanctioned Russian elites, oligarchs, and their proxies that involve real estate, luxury goods, and high-value assets. FinCEN continues robust engagement with financial institutions through its public-private partnership authorities to enhance collaboration and information sharing and analysis.
Treasury will also launch the Kleptocracy Asset Recovery Rewards Program today, which offers rewards payments for information leading to seizure, restraint, or forfeiture of assets linked to foreign government corruption, including the Government of the Russian Federation. The Department of the Treasury’s Office of Terrorism and Financial Intelligence administers the Program in coordination with the Departments of Justice and State and U.S. federal law enforcement agencies. More information on eligibility for rewards payments and on submission of relevant information to the U.S. government can be found here. Those individuals with information are encouraged to contact [email protected] or call +1 202-622-2050.
In connection with the meeting, Treasury is providing attendees with a list of 50 individuals who are priorities for the United States. Treasury has publicly released 28 names of individuals from the list who have been sanctioned by multiple jurisdictions, including the United States. The names are available here.
Two Twin Cities Men Sentenced to Prison for Their Roles in an Armed Bank RobberyRead the Press Release
ST. PAUL, Minn. – Two Twin Cities men have been sentenced to prison for their roles in the armed robbery of a Deerwood Bank, announced Acting U.S. Attorney Charles J. Kovats.
On March 15, 2022, U.S. District Judge Eric C. Tostrud sentenced John Thomas Paciorek II, 52, of Minneapolis, to 90 months in prison. Co-defendant James Richard Ardito, Jr, 52, of Fridley, was sentenced on August 3, 2021, to 58 months in prison.
According to court records, Paciorek and Ardito together devised a plan to rob the Deerwood Bank in Garrison, Minnesota. On July 24, 2020, Paciorek and Ardito drove to the bank; Paciorek waited in the car while Ardito hid in the bushes outside of the bank until an employee arrived to open the business. Ardito emerged from the bushes, pointed a replica firearm at the employee, and demanded that they open the bank and disable the security system. Ardito then demanded money from the bank teller drawers. The employee complied, giving Ardito $402 in cash. Ardito took the money and fled the scene in the getaway car, driven by Paciorek.
The robbery was caught on the bank’s surveillance camera and law enforcement was able to easily identify Ardito. After his apprehension, Ardito confessed to his and Paciorek’s involvement in the bank robbery. Additionally, law enforcement learned Paciorek was the owner of the getaway vehicle and location data from Paciorek’s cellphone placed him at the scene of the bank robbery.
On October 21, 2021, Paciorek pleaded guilty to one count of armed bank robbery, and on January 20, 2021, Ardito pleaded guilty to one count of bank robbery.
This case was the result of an investigation conducted by the FBI and the Crow Wing County Sheriff’s Department.
Assistant U.S. Attorney Evan B. Gilead prosecuted the case.
Two L.A. County Men Charged in Federal Indictment Alleging Six-Week Armed Robbery Spree Using Semi-Automatic FirearmRead the Press Release
LOS ANGELES – A federal grand jury today charged two Los Angeles County men in an eight-count indictment alleging they committed multiple armed robberies of 7-Eleven stores and another business in Los Angeles County during a six-week crime spree.
Kyle Richard Williams, 25, of Inglewood and Colin Powell Lacey, 28, of the Hyde Park neighborhood of Los Angeles, are charged with one count of conspiracy to commit interference with commerce by robbery (Hobbs Act). Lacey is also charged with four counts of robbery while Williams is charged with two counts of robbery and one count of attempted robbery.
The defendants, who are in federal custody, are expected to be arraigned on March 24 in United States District Court.
According to the indictment, from mid-November to December 30, 2021, Williams and Lacey traveled together by car to businesses – usually 7-Eleven convenience stores – to commit armed robberies. Williams allegedly entered the stores, brandished a semi-automatic handgun at employees, and demanded money. Meanwhile, Lacey waited in the vehicle parked outside the stores. Williams and Lacey allegedly would then flee the area following the armed robbery.
The businesses robbed during the spree included six 7-Eleven stores located in the Hollywood, East Hollywood and Mid-City neighborhoods of Los Angeles as well as in West Hollywood. One smoke shop in the Mid-City area also was robbed, according to the indictment. Williams allegedly attempted to rob a 7-Eleven store in El Segundo on December 30, 2021.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
Each charge of Hobbs Act robbery carries a statutory maximum penalty of 20 years in federal prison.
The FBI, the Los Angeles Police Department’s Robbery-Homicide Division, and the Los Angeles County Sheriff's Department’s Major Crimes Bureau Metro Detail investigated this matter.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Jeremiah M. Levine of the Violent and Organized Crime Section are prosecuting this case.
Thomson Penitentiary Inmate Found Guilty of Assaulting Federal Correctional OfficerRead the Press Release
ROCKFORD — A federal inmate at Thomson Penitentiary in Thompson, Ill., was convicted Tuesday for the assault of a federal correctional officer.
JOSEPH VAN SACH, 49, was found guilty following a seven-day jury trial in federal court in Rockford. According to evidence at trial, Van Sach on April 2, 2019, forcibly assaulted the officer while he was engaged in the performance of his official duties. Van Sach made physical contact and inflicted bodily injury to the officer.
Van Sach faces a maximum sentence of 20 years in federal prison, a maximum fine of up to $250,000, and restitution to the victim. U.S. District Judge John Robert Blakey did not immediately set a sentencing date.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Jessica S. Maveus and Vincenza L. Tomlinson.
Third Wave of Operation "Money Don't Sleep" Leads to Multiple Arrests in West MemphisRead the Press Release
WEST MEMPHIS—A major arrest operation took place this morning in West Memphis when 22 people were arrested as part of an ongoing federal drug investigation. The 22 arrested suspects from the West Memphis area are part of a 32-defendant indictment that was unsealed today.
Operation “Money Don’t Sleep” is an ongoing investigation focused on lowering violent crime that stems from the distribution of illegal drugs. The goal of the operation is to identify and dismantle multiple drug trafficking organizations that distribute cocaine and methamphetamine.
Today’s arrests conclude the third phase of the investigation that was initiated in 2015 by the DEA Little Rock District Office and the West Memphis Police Department. The first phase of “Money Don’t Sleep” previously resulted in the arrests of 50 defendants in July 2017. With those drug traffickers removed, new distributors emerged to fill the void left in the drug market, leading to 22 arrests in the second phase in June 2019.
Law enforcement began early this morning by searching for 28 suspects, all of whom were indicted for federal gun and drug trafficking crimes. Thirty-two defendants were indicted in the case, and 4 of those were already in custody when this morning’s roundup began. In addition to the 22 arrests, during the operation authorities seized 14 firearms and over $500,000 cash that is believed to be drug proceeds. Prior to today’s arrests, investigators seized approximately 1.2 kilograms of methamphetamine, 12 firearms, and over $8000 cash. In addition, a search warrant executed prior to today’s arrests resulted in law enforcement seizure of half a pound of methamphetamine, $7500 cash, and a firearm.
“We appreciate the work of our federal, state, and local law enforcement partners in conducting today’s arrest operation,” said United States Attorney Jonathan D. Ross. “Protecting the citizens of our local communities is our top priority, and we want the people of West Memphis to know that we will continue our efforts to make their neighborhoods safer.”
Six fugitives remain after this morning’s arrests. Law enforcement are still searching for Antonio Calloway, Tristan Harris, Early Bird Johnson, Reoscua Rogers, Robert Brown, and Jeremy McCleary. Most of the defendants who were arrested this morning will appear this afternoon for arraignment before United States Magistrate Judge J. Thomas Ray.
The DEA Little Rock District Office and West Memphis Police Department were assisted by several participating agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Marshals Service; United States Federal Probation; 2nd Judicial Drug Task Force; Arkansas State Police; Arkansas Highway Police; Crittenden County Sheriff’s Office; Arkansas Department of Community Corrections; and the Counter Drug Program of the Arkansas National Guard. The case is being prosecuted by Assistant United States Attorney Kristin Bryant and Special Assistant United States Attorney Lauren Eldridge.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Texas Man Sentenced to Federal Prison for Meth Trafficking in IowaRead the Press Release
A man who possessed with intent to distribute methamphetamine was sentenced on March 14, 2022, in federal court in Sioux City.
Arturo Flores, 23, from Eagle Pass, Texas, pled guilty on November 3, 2021 to possession with intent to distribute methamphetamine.
Evidence presented in court showed that on June 16, 2021, in Sioux City, Iowa, law enforcement stopped Flores for several traffic violations, including speeding. A female passenger, her baby and an 11-year old were also in the vehicle. After a K-9 (drug dog) alerted on the vehicle, law enforcement located and seized over 4 pounds of methamphetamine hidden inside a drink cooler in front of the front passenger’s seat. Police also found over $2,000 cash in the passenger’s purse, and a small rock of methamphetamine found in the driver’s side door pocket. Flores admitted that he had acquired the methamphetamine in South Texas and was bringing it to Iowa for further distribution.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Flores was sentenced to 10 years’ imprisonment and must serve a term of five years of supervised release following imprisonment. There is no parole in the federal system. Flores remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4061. Follow us on Twitter @USAO_NDIA.
St. Paul Man Pleads Guilty to Illegally Straw Purchasing Dozens of FirearmsRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to making false statements in connection with the illegal purchase of multiple firearms, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, between approximately May 2020 and May 2021, Geryiell Lamont Walker, 22, and his co-defendants Sarah Jean Elwood, 34, and Jeffrey Paul Jackson, 31, conspired together to illegally purchase dozens of firearms from various Federal Firearms Licensees (FFL) in the State of Minnesota and to provide these firearms to individuals whom they knew could not lawfully possess them. As part of the straw-purchasing scheme, Elwood, who at the time had a permit-to-carry firearms, would go to various FFLs and purchase multiple firearms on behalf of Walker and others, who requested the firearms through Jackson and often provided the funds in advance of, or immediately after, the purchases. In making the purchases, Elwood knowingly misrepresented to the licensed dealers that she was the actual purchaser of the firearms, when in fact she and her co-defendants knew she was not. Walker, Jackson, and others helped arrange the deals, which included a $100 premium for each straw-purchased gun. In total, the defendants illegally straw purchased approximately 97 firearms, including approximately 62 firearms in May 2021 alone. To date, 18 of these 97 firearms have been recovered by local and federal law enforcement at various crime scenes or in the possession of persons legally prohibited from possessing firearms. The other 79 have not yet been recovered.
Walker pleaded guilty today before Senior U.S. District Judge Ann D. Montgomery to one count of aiding and abetting the making of false statements during purchase of firearms. A sentencing hearing has been scheduled for July 27, 2022.
Straw purchasing typically involves a buyer who is permitted to purchase firearms from an FFL but who then unlawfully provides the purchased firearm to another person who is prohibited from purchasing or possessing firearms. When making a straw purchase, the buyer allows a prohibited person – typically a convicted felon – to illegally obtain a firearm by avoiding the national background check system.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is the result of an investigation conducted by the ATF and the Blaine Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
South Florida Crystal Meth and Fentanyl Trafficker Sentenced to over 10 Years in Federal PrisonRead the Press Release
Miami, Florida – A 24-year-old Daytona Beach, Florida man has been sentenced to 125 months in federal prison for distributing crystal methamphetamine and fentanyl in Martin County, Florida.
On July 2, 2021, Maxwell A. Vega traveled from Daytona Beach to a hotel in Martin County, where he had prearranged a meeting to sell methamphetamine. While arranging that drug deal, Vega offered to sell the buyer an additional drug: fentanyl. The buyer initially declined the fentanyl offer, saying it was too dangerous a drug. Vega encouraged the sale, and offered to bring a sample of fentanyl to the meeting. At the meeting, Vega sold the buyer over 54 grams of 98% pure methamphetamine. As for the fentanyl that Vega brought with him, Vega told the buyer that it was the “real deal” and warned the buyer not to touch it.
On July 7, 2021, Vega again traveled from Daytona Beach to the same hotel in Martin County, where he had prearranged a second meeting to sell illegal narcotics. During that meeting, Vega sold one ounce of fentanyl and 1.170 grams of 99% pure methamphetamine to the buyer. Vega was arrested shortly after this transaction.
On December 3, 2021, Vega pled guilty to one count of distribution of over 50 grams of methamphetamine, one count of distribution of methamphetamine and one count of distribution of fentanyl.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office announced the sentence imposed by U.S. District Court Judge Jose E. Martinez.
HSI Miami and Martin County Sheriff’s Office, investigated this case. Assistant U.S. Attorney Luisa Honora Berti is prosecuting this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14030.
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Sioux Falls Man Charged with Possession of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Possession of Child Pornography.
Nathan Bushee, age 21, was indicted on March 1, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 15, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about April 13, 2021, and December 20, 2021, Bushee knowingly possessed and attempted to possess materials which contain an images of child pornography.
The charge is merely an accusation and Bushee is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Bushee was released on bond pending trial which has not been set yet.
Sioux City Man Sentenced for Selling Misbranded Erectile Dysfunction Drugs as Dietary Supplements “All Natural Male” and “Supermale”Read the Press Release
A man who unlawfully sold unapproved versions of drugs used to treat erectile dysfunction for the second time was sentenced on March 15, 2022, to more than one year in federal prison. David Kempema, age 61, from Sioux City, Iowa, received the prison term after an October 26, 2021 guilty plea to introducing misbranded drugs into interstate commerce with intent to defraud.
Information from a plea agreement and sentencing hearing shows that between February 2014 and December 2018, Kempema advertised and offered for sale pills that he had ordered from India or Germany. The pills contained the same active ingredients as Viagra and Cialis, which were prescription drugs approved by the Food and Drug Administration (“FDA”) to treat erectile dysfunction. To advertise his pills, Kempema placed advertisements in men’s restrooms in businesses along the Interstate 29 corridor. The advertisements referred to the pills as male enhancement “dietary supplements” called “Supermale” and “All Natural Male.” Kempema obtained or attempted to obtain at least 4,059 pills for resale. When interviewed by an FDA agent, Kempema admitted that he knew the drugs were not the FDA-approved versions and that they contained the same active ingredients as the FDA-approved versions.
Kempema was previously convicted of introducing misbranded drugs into interstate commerce in 2011 in United States v. David Kempema, case number 11-CR-4140 in the Northern District of Iowa. In a plea agreement in that case, Kempema admitted that, between October 2009 and July 2011, he ordered pills from India that contained the same active ingredients as Viagra and Cialis. Kempema then sold the non-FDA-approved pills under the names of Viagra and Cialis. On February 8, 2012, defendant was sentenced to 60 days’ imprisonment and one year of supervised release.
Kempema was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Kempema was sentenced to 18 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
“Individuals who sell misbranded drugs obtained from overseas are taking advantage of American consumers while putting those same consumers at risk of side effects from these drugs,” said Acting United States Attorney Timothy Duax. “For the second time, David Kempema put the lives of others on the line because of his own personal greed. This sentence holds him accountable for his actions and demonstrates that this type of crime will not be tolerated.”
“Prescription drugs that are smuggled from overseas and are outside the secure supply chain can present a serious health risk to those who use them. The drugs may contain unknown or dangerous ingredients and are manufactured under unknown or unregulated conditions,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who traffic in illegal prescription drugs.”
David Kempema was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the FDA Office of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4081.
Follow us on Twitter @USAO_NDIA.
Sexual Predator Used Snapchat, Grindr to Solicit Teenagers at Boarding School in Southwest VirginiaRead the Press Release
ABINGDON, Va. – A North Carolina man, who used the social media platforms Snapchat and Grindr to target teenage boys from Southwest Virginia, pleaded guilty today to federal charges.
Jonathan Avery Shumate, 53, of Warrensville, North Carolina, pleaded guilty today to coercion and enticement of minors.
According to court documents, Shumate used both Snapchat and Grindr to contact teenage males attending Oak Hill Academy in Grayson County, Virginia, and offered to provide vapes and vaping materials in exchange for the sixteen- and seventeen-year-old boys sending him sexually explicit photographs and nude videos of themselves. In addition to communicating online, Shumate traveled to Oak Hill Academy to deliver the vaping supplies, and also offered to provide oral sex for the juveniles while requesting that they perform oral sex for him.
Shumate is scheduled to be sentenced on June 21, 2022 and faces a mandatory minimum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The Federal Bureau of Investigation, the Grayson County Sheriff’s Office, and the Ashe County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
Queens Man Pleads Guilty in Multi-Million Dollar Prize Notice Fraud SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, at the federal courthouse in Central Islip, New York, Scott Gammon pleaded guilty to conspiracy to commit mail fraud. The over $4 million fraud involved a mass mailing scheme that tricked consumers into paying fees for falsely promised cash prizes. The plea took place before Magistrate Judge Steven I. Locke.
Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Principal Deputy Attorney General of the Justice Department’s Civil Division, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS) announced the guilty plea.
“The defendant admitted he deceived elderly and vulnerable victims into believing they had won cash prizes by inducing them to pay bogus ‘fees’ to him and his co-conspirators,” stated United States Attorney Peace. “This Office will continue to protect our seniors and other consumers from harm caused by predatory solicitation schemes.”
“Fraudulent prize notices often trick elderly victims into sending away their money based on false promises of large cash prizes,” said Principal Deputy Assistant Attorney General Boynton. “This guilty plea is the latest example of the Department of Justice continuing to pursue and prosecute the perpetrators of these schemes.”
“Postal Inspectors remind consumers, if you have to pay to win a prize, you’ll lose your money. These are all scams designed to lure consumers into sending their hard-earned money—not for a prize, but to fatten the pockets of a fraudster. Mr. Gammon may have thought he got away with this scheme, but he was sadly mistaken when he was confronted by the full investigative power of law enforcement,” said USPIS Inspector-in-Charge Brubaker.
According to court documents, from August 2014 through August 2019, Gammon engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who paid the fee ever received such a prize. Gammon is the third defendant to plead guilty to conspiracy to commit mail fraud in connection with this scheme.
Two other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Christopher King pleaded guilty on September 15, 2021 and Natasha Khan, pleaded guilty on December 15, 2021.
Each of the three defendants faces a maximum penalty of 20 years in prison.
Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor of the Eastern District of New York, Long Island Criminal Division are prosecuting the case with Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch.
The Defendant:
SCOTT GAMMON
Age: 47
Broad Channel, New YorkE.D.N.Y. Docket No. 22-085 (DRH)
Defendants Previously Pleaded Guilty:
CHRISTOPHER KING
Age: 36
Oceanside, New YorkE.D.N.Y. Docket No. 21-CR-418 (DRH)
NATASHA KHAN
Age: 38
Elmont, New YorkE.D.N.Y. Docket No. 21-CR-609 (DRH)
Quebec Man Sentenced to 63-Month Prison Sentence for Role in International Cocaine ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Chief United States District Judge Geoffrey Crawford today sentenced Georges Yaghmour, 40, of Quebec, to a 63-month period of incarceration upon Yaghmour’s conviction by guilty plea of conspiring to distribute and to possess with intent to distribute more than 500 grams of cocaine.
According to court records, in late 2019 Yaghmour travelled from Canada to a Burlington, Vermont, hotel where he and others met with an undercover DEA agent posing as a drug courier offering to bring cocaine from South America to Canada, through Vermont. Court records state that during this meeting Yaghmour stated that he and his partners were prepared to pay one million dollars in exchange for the delivery of 500 kilograms of cocaine. Eventually, other members of the conspiracy delivered more than $570,000 in partial payment for the DEA’s undercover delivery services, and DEA seized more than 300 kilograms of cocaine after it was delivered in South America for transport to Vermont.
An April 6, 2021 court filing contains the following photo of some of the cocaine that had been seized as part of this investigation:
On two occasions DEA arrested persons dispatched to pick up some of the cocaine on behalf of the Canadian purchasers, once in Vermont and once in Massachusetts. Court records show that after one courier failed to deliver the cocaine he was expected to retrieve, other members of the conspiracy kidnapped the courier’s grandparents and held them for ransom that included the quantity of cocaine they were expecting.
United States Attorney Nikolas P. Kerest commended the outstanding work of the agents and analysts supporting this investigation from the United States Border Patrol, and the Vermont and South American offices of the Drug Enforcement Administration, as well as the office of Homeland Security Investigations in Rouses Point, New York.
This investigation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF seeks to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Yaghmour is represented by Michael Cohen, Esq., of Miami. The prosecutor is Assistant United States Attorney Michael P. Drescher.