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11 March 2022
Federal Jury Finds Grafton Dentist Guilty of Healthcare Fraud and False StatementsRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on March 10, 2022, Scott Charmoli (age: 61) of Grafton Wisconsin, a licensed dentist, was convicted of five counts of healthcare fraud and two counts of making false statements related to healthcare matters.
The evidence presented at trial established that Scott Charmoli engaged in a years-long scheme to defraud dental insurance companies into paying for unnecessary crown procedures. The evidence showed that, beginning in 2015, Charmoli started to aggressively sell patients on the need for crown procedures. After convincing patients they needed crowns, Charmoli intentionally broke his patients’ teeth with his drill and took pictures and x-rays of the damage he caused. Then, Charmoli sent images of the damage he caused to insurance companies as support for his requests for payment for the crown procedures. Insurance companies assumed that those images of damage represented the pre-operative condition of the teeth, and as a result, paid the claims. Many of Charmoli’s patients also paid significant co-pays for these crown procedures.
The evidence showed that Charmoli performed far more crowns than most dentists in Wisconsin, ranking in, or above, the 95th percentile of crowns performed in each year from 2016 to 2019, according to data from just one insurance company. The evidence also showed that Charmoli billed over $4.2 million for crown procedures between 2016 and 2019, and that he performed more than 700 crowns each year from 2015 to 2019. In each of 2015 and 2016, Charmoli performed over 1000 crown procedures. Evidence also showed that in addition to submitting x-rays to insurance companies of damage he caused, Charmoli made false statements to dental insurers when they denied initial claims for crown coverage.
Charmoli is scheduled to be sentenced on June 17, 2022, by United States District Court Judge Lynn Adelman. Charmoli faces a maximum term of ten years of imprisonment for each healthcare fraud conviction and a maximum term of five years of imprisonment for each false statement conviction.
The Federal Bureau of Investigation investigated the case, which Assistant United States Attorneys Julie F. Stewart and Michael A. Carter prosecuted.
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Federal Jury Convicts Vancouver Man for Sex Trafficking of MinorsRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a local man guilty today for transporting two young teen girls across state lines, drugging and sexually abusing them, and selling them to other grown men for sex.
Johnl Jackson, 34, of Vancouver, Washington, was found guilty of one count of conspiracy to engage in sex trafficking; three counts of sex trafficking of a child; two counts of sex trafficking by force, fraud, and coercion; and three counts of transportation of a minor with intent to engage in sexual activity.
“Trafficking in human lives is a despicable crime, here made worse by Johnl Jackson’s exploitation of young women for profit” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon. “Sex trafficking minors has a profoundly negative impact on survivors and their loved ones. I want to thank the brave women who agreed to step out of the shadows to testify against their abuser and hope that this experience offers them closure and a path to a new and better life. Our office will continue to prioritize all trafficking cases and do everything in our power to prevent further victimization.”
“Johnl Jackson preyed upon vulnerable youth. He used violence, drugs and manipulation to control these young teenage girls,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “The agents and officers on the FBI’s Child Exploitation Task Force are committed to finding and helping victims of human trafficking, to protect them from further abuse, and to keep their traffickers from hurting anyone else.”
According to court documents and trial testimony, in 2016, Jackson met and befriended Keonte Desmond Scott, 23, also of Vancouver, after Scott’s release from prison. Jackson sold Scott cocaine and eventually began coaching him in commercial sex trafficking. In late 2016, Scott met and began a relationship with Jackson’s future co-defendant and fellow Vancouver resident Diana Petrovic, 23. Jackson helped Scott traffic Petrovic, showing him how to post online prostitution ads and, at times, posting the ads himself on Scott’s behalf. Scott paid Jackson for the ads and purchased drugs from him using a portion of Petrovic’s prostitution earnings. Soon, Jackson and Scott began using Petrovic to recruit and traffic other minor females.
By early 2019, several minors reported to law enforcement that they had been trafficked by Scott and Petrovic. During the ensuing investigation, authorities learned of two teen girls, then 14- and 15-years-old, respectively, who together had run away from their homes in Lane County, Oregon and were introduced to Scott and Petrovic at a mall in Vancouver, Washington. Petrovic took the girls to a home the girls believed was Jackson’s and gave them drugs and alcohol. Scott and Petrovic told the girls they would take them to an upscale party, but, instead, took them to a location in Portland where they were sold for sex. Eventually, the girls separated themselves from Scott and Petrovic, spent the night elsewhere, and were driven back home by one of the girl’s mothers the next day.
By the summer of 2018, Scott returned to prison and Petrovic began working directly with Jackson. Petrovic maintained contact with one of the girls from Lane County over social media and repeatedly asked her to return to Portland. Petrovic eventually convinced the girl to meet and, in late August 2018, Jackson, Petrovic, and another adult woman drove to Eugene to pick her up. When the group arrived, the girl was accompanied by a 15-year-old friend. On the drive back to Portland, Jackson gave both girls drugs. At some point during the drive, Jackson gave Petrovic money to buy the girls new clothing and underwear.
The group took the girls to Vancouver where they were given more drugs and, at some point, stopped at a house to resupply on cocaine. Inside the house, they sent one of the girls back to a room to engage in sexual acts with the drug supplier in exchange for the drugs and money. Later, a person believed to be Jackson’s uncle notified the group of potential prostitution customers gathering at an auto shop in Battle Ground, Washington. Petrovic and Jackson took the girls to the auto shop and offered them for sex, but the men gathering appeared uninterested and so the group returned to the Vancouver house. Back at the Vancouver house, Jackson and Petrovic engaged in sex acts with the girls, who were now heavily intoxicated.
The group eventually returned to the Battle Ground gathering where one of the girls was forced to have sex with an adult man. Jackson and Petrovic warned the girls to say they were 19 years old to avoid getting them in trouble for trafficking children. Throughout the evening, the girls were not allowed to sit without being harassed by Petrovic and Jackson about needing to make more money. When one of the girls protested, Petrovic slapped her. Later in the evening, one of the girls escaped with a man who she convinced to intervene on her behalf. Petrovic convinced the other girl that her friend had betrayed her by leaving.
Jackson and Petrovic took the remaining girl to a hotel near Portland International Airport where they spent the night. The next day, they took her to a residence in Northeast Portland where she was forced to have sex with one man for $300 and forcibly raped by another. One day while Jackson and Petrovic were sleeping in their hotel room, the girl managed to escape and was rescued several hours later by her grandfather.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and an accomplice with sex trafficking of children and transporting minors with intent to engage in sexual activity.
On October 9, 2019, in a separate criminal case, a federal grand jury in Portland returned a three-count indictment charging Jackson and Petrovic with sex trafficking of a child by force, fraud, and coercion; sex trafficking of a child; and transportation of a minor with intent to engage in sexual activity. Later, on December 4, 2019, Jackson and Petrovic were charged by superseding indictment with conspiring to engage in sex trafficking of children; sex trafficking of a child; sex trafficking of a child by force, fraud, and coercion; and transporting a minor with intent to engage in sexual activity. Jackson was additionally charged with illegally possessing a firearm as a convicted felon, but the charge was dismissed before trial.
On July 22, 2020, Petrovic was charged by criminal information with distributing a controlled to a person under 21 and pleaded guilty, resolving both of her criminal cases. She will be sentenced on April 3, 2023.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking. He will be sentenced on April 13, 2022.
Jackson faces a maximum sentence of life in prison. He will be sentenced on June 6, 2022 before U.S. District Court Judge Michael W. Mosman.
U.S. Attorney Asphaug and Special Agent in Charge Ramsey made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Tigard Police Department and Portland Police Bureau. It was prosecuted by Assistant U.S. Attorneys Ashley Cadotte and Pamela Paaso with assistance from Assistant U.S. Attorneys Kelly Zusman, Suzanne Miles, and Thomas Ratcliffe, and Multnomah County Deputy District Attorney Glen Ujifusa.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In January 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
Federal Jury Convicts Leader of A Prison Gang on Three Counts of Drug and Money Laundering OffensesRead the Press Release
GREENEVILLE, Tenn. - Following a six-day trial in United States District Court at Greeneville, a jury convicted Charles Elsea, Jr., 44, a longtime inmate of the Tennessee Department of Corrections, of conspiracy to distribute methamphetamine, marijuana, and money laundering.
Sentencing is set for August 8, 2022, at 10:30 a.m., before the Honorable J. Ronnie Greer, in United States District Court for the Eastern District of Tennessee at Greeneville. Elsea faces a maximum life sentence in prison, a ten-year minimum mandatory for Count one, and a term of supervised release of five years.
The trial was the result of a five-year investigation that began in the spring of 2017. The investigation spanned the country, multiple local and federal agencies worked together to bring this case to trial. Elsea was determined to not only be involved in the drug conspiracy but was the leader of the conspiracy. The evidence presented at trial demonstrated that Elsea was a leader of a prison gang and ran an entire drug organization behind prison walls, using smuggled cellphones to conduct his business outside the presence of the prison guards. Elsea conspired with gang members and others to distribute hundreds of pounds of methamphetamine across Tennessee. Elsea arranged multiple purchases of pounds of methamphetamine from his prison cell and directed coconspirators to transport the methamphetamine from California and Arizona to Tennessee. Elsea and his coconspirators also used the drug proceeds from the methamphetamine to create marijuana grow houses in and out of Tennessee. Elsea even started two marijuana grow operations during the pendency of this case, utilizing the jail’s video system to speak to coconspirators about the cultivation of marijuana.
The criminal indictment was the result of an investigation by the DHS-HSI, DEA, USPS and with the assistance of Tennessee Department of Correction Office of Investigations and Conduct; Elizabethton, and Carter County Joint Drug Task Force; Huron Undercover Narcotic Team with the Michigan State Police; the Arkansas Highway Patrol; Missouri Western Interdiction Task Force with the Kansas City, Missouri Police Department; California Visalia Police Department. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorneys Meghan L. Gomez and J. Christian Lampe represented the United States at trial.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles 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.
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Federal Jury Convicts Duluth Felon for Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a Duluth man for possessing a firearm as a felon, announced Acting U.S. Attorney Charles J. Kovats.
Following a five-day trial before Senior U.S. District Judge Donovan W. Frank, Edell Jackson, 41, was found guilty of a single count of possessing a firearm as an armed career criminal. A sentencing date will be scheduled at a later time.
According to the evidence presented at trial, on January 14, 2021, officers with the Brooklyn Center Police Department were dispatched to a call of shots fired. Officers spoke to a woman who said Jackson shot at her during an argument and was still armed. The woman assisted officers in locating Jackson, who was sitting in a parking lot in the driver’s seat of a Chevrolet Avalanche. When law enforcement tried to apprehend Jackson, he reversed his vehicle and attempted to drive away but was blocked by police squad cars. Jackson exited his vehicle and fled on foot. As he ran, Jackson took his jacket off and discarded it in a snowbank near his vehicle. Officers pursued him on foot and eventually apprehended Jackson. Officers searched Jackson’s discarded jacket and found inside a zipped pocket a Bersa model Thunder 9mm semi-automatic pistol.
Because Jackson has multiple prior felony convictions in St. Louis County, Cook County (Illinois), and Will County (Illinois), he is prohibited under federal law from possessing firearms or ammunition at any time.
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 the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brooklyn Center Police Department, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.
The case was tried by Assistant U.S. Attorneys Thomas Calhoun-Lopez and Angela M. Munoz.
Federal Inmate Pleads Guilty to Assaulting Correctional Officer and Possessing ContrabandRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that Edward Boney (40, Washington, DC), a federal prisoner at the Coleman Federal Correctional Complex, has entered pleaded guilty to assaulting a correctional officer and possessing contraband. Boney faces a maximum penalty of 30 years in federal prison. Boney had been indicted on October 12, 2021.
According to court records, Boney is currently serving a 13-year federal sentence at FCC-Coleman for armed robbery and assault on a law enforcement officer. On November 20, 2020, Boney refused to comply with correctional officers’ directions and told the officers, “Today is a good day to die.” Boney then raised his arm and struck a correctional officer multiple times with a sharp metal object. The correctional officer suffered three stab wounds on his arms. Three additional correctional officers were also injured during the incident as they attempted to control and detain Boney.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Farmington man sentenced to 16 years in prison for receipt of child pornography and enticement of a minorRead the Press Release
ST. LOUIS – James L. Rodgers, age 42, of Farmington, Missouri appeared before United States District Court Judge Audrey G. Fleissig on today’s date and was sentenced to 16 years in prison to be followed by a lifetime of supervised release for the receipt of child pornography and the coercion and enticement of a minor.
According to the plea agreement, on or between May 1, 2019, and October 9, 2019, in St. Francois County, Missouri, Rodgers utilized the internet and social media websites to communicate with multiple victims under the age of ten. Rodgers used the social media sites to request the victims to engage in sexual acts and that they produce and send to him images and videos of such sexual acts over the internet.
An examination of the Rodger’s cell phone by law enforcement also revealed he was distributing child pornography with others over the internet. On September 22, 2019, Rodgers shared eleven videos and nine images of child pornography and again on September 27, 2019, Rodgers exchanged five videos and sixteen images of child pornography over a social media platform.
The case was investigated by the Missouri State Highway Patrol.
Erie Man Pleads Guilty to Firearms Offenses in Project Safe Neighborhoods CaseRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
Charles L. McIntosh, 28, pleaded guilty to one count each in two separate cases before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that in and around April 2019, McIntosh possessed two firearms while being a convicted felon. In addition, on or about April 22, 2021, McIntosh possessed three firearms while being a convicted felon and while on federal pretrial release in the 2019 case. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
Judge Baxter scheduled sentencing for June 30, 2022, at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Erie Police Department conducted the investigation that led to the prosecution of McIntosh.
England Associates, L.P. d/b/a New London Health Center pays $400,000.00 to resolve False Claims Act allegationsRead the Press Release
ATLANTA – England Associates, L.P. d/b/a New London Health Center (“New London”) agreed to pay $400,000.00 to resolve allegations that it knowingly submitted false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled. The settlement amount was based on New London’s ability to pay.
“Nursing home facilities provide important services to our elderly; however, those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services,” said U.S. Attorney Kurt R. Erskine. “This settlement demonstrates our continuing efforts to protect patients and taxpayers by ensuring the that the care provided to beneficiaries of government-funded health care programs is dictated by clinical needs, not a provider’s fiscal interests.
“When funds from programs like Medicare are not used as intended, taxpayers and people who are entitled to those funds suffer,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “This settlement is the result of the FBI’s commitment to work with our federal and state partners to ensure that federally funded healthcare programs are not abused by providers.”
“The provision of medical services should be based on a patient’s medical needs rather than the financial interests of providers,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, we will continue to hold accountable individuals who endanger the integrity of federal healthcare programs and the beneficiaries they serve.”
The government alleged that between January 1, 2011 and November 30, 2014, New London engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: (1) presumptively placing patients in the Ultra High therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; (3) ramping up therapy minutes only during the period in which billing levels were set; and (4) pressuring therapists and patients to complete the planned minutes of therapy regardless of patient need, and in some cases, for patients for whom such therapy would have been dangerous.
The Government alleges that these arrangements violated the False Claims Act, 31 U.S.C. § 3729, et seq.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The civil settlement was reached by Assistant U.S. Attorney David A. O’Neal.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Delaware County Man Charged with Being a Prohibited Person in Possession of a FirearmRead the Press Release
Matthew Welcher, age 43, of Dundee, Iowa, has been charged with being a prohibited person in possession of a firearm. The charge is contained in an Indictment unsealed on March 7, 2022, in United States District Court in Cedar Rapids.
The Indictment alleges that, in May 2021, Welcher possessed a rifle after having been convicted of two felonies and a misdemeanor crime of domestic violence and while he was subject to a no contact order.
If convicted, Welcher faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years on supervised release following any imprisonment.
Welcher appeared for a detention hearing today in federal court in Cedar Rapids and was held without bond. Welcher’s next appearance for trial is set for May 9, 2022.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Delaware County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 22-2011.
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Cuban citizen sentenced to prison after ramming FBI security gateRead the Press Release
HOUSTON – A 39-year-old man has been ordered to prison for illegally breaching federal security and gaining entry to the FBI building in Houston, announced U.S. Attorney Jennifer B. Lowery.
Nestor Mariano Vidal Batista pleaded guilty Feb 24. 2022.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, ordered Vidal to serve 14 months in federal prison. Not a U.S. citizen, Vidal is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Batista had previously been convicted of alien smuggling. In handing down the sentence, the court noted how his actions posed a risk to others.
On June 23, 2021, Batista stole a Dodge Ram 2500 pick-up truck shortly before attempting to lodge an in-person complaint at the FBI office in Houston. Upon his arrival, security referred him to local authorities. Batista then re-entered the truck, circled the area and tried to force entry. He sped forward and crashed the truck into the front security gates of the FBI building. Shortly thereafter, he was able to exit the truck and enter the visiting area in the lobby. Authorities then subdued him and took him into custody.
As a result of his actions, he caused $7,929.90 in damages.
Vidal has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of Houston Police Department. Assistant U.S. Attorney Joe Porto prosecuted the case.
Crownpoint man charged with sexual abuse of a minor in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Wade Dixon, 33, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court today on a charge of sexual abuse of a minor in Indian Country. Dixon will be released to a halfway house pending trial, which has not been scheduled.
A federal grand jury indicted Dixon on Feb. 24. According to the indictment, on July 10, 2021, Dixon allegedly engaged in a sexual act with a victim, identified as Jan Doe, who was younger than 16 years. The alleged abuse occurred in McKinley County, New Mexico, on the Navajo Nation.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Dixon faces up to 15 years in prison.
The Navajo Nation Police Department investigated this case with assistance from the FBI. Special Assistant United States Attorney Chelsea N. Van Deventer is prosecuting the case.
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Counselor Sentenced to Federal Prison for Wide-Ranging Medicaid Fraud SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that CORTNEY DUNLAP, 37, of Burlington, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 57 months of imprisonment, followed by three years of supervised release, for operating a wide-ranging scheme that defrauded the Connecticut Medicaid Program of more than $1.3 million.
According to court documents and statements in court, from 2014 to 2020, Dunlap was a Licensed Professional Counselor with offices located on Brainard Road in Hartford. Dunlap also owned two entities, Inspirational Care and KEYS Program Inc., through which he managed group homes in Hartford, Bristol, Cromwell and Waterbury, including residences for women and children who were victims of domestic abuse.
From August 2018 through October 2020, Dunlap engaged in a scheme to defraud the Connecticut Medicaid Program by submitting claims for psychotherapy services that were purportedly provided to Medicaid clients. The vast majority of the claims were for occasions and dates of service when no psychotherapy services of any kind had been provided to the Medicaid clients identified in the claims. On a limited number of occasions, some of the services were rendered by unlicensed individuals who were not qualified or licensed to provide psychotherapy.
The Connecticut Medicaid program suspended Dunlap as a Medicaid provider on approximately April 28, 2020, and, on May 7, 2020, federal law enforcement agents executed a court-authorized search of Dunlap’s Hartford offices. Dunlap subsequently billed Medicaid for psychotherapy services through Inspirational Care for services that which were not provided, using the provider number of a licensed clinical social worker who did not provide the services and was not aware that her provider number was being used to bill for the nonexistent services.
Dunlap required tenants of the group homes operated or managed by Inspirational Care and KEYS program to provide copies of the Medicaid member cards for the tenants and their children as a condition of the tenants residing at the group homes. Dunlap then used these Medicaid member numbers to bill Medicaid for psychotherapy services that were not provided to the tenants or their children. Dunlap used the Medicaid member numbers of approximately 65 tenants or their children to bill Medicaid for fraudulent services, and Medicaid paid Dunlap approximately $543,117 for psychotherapy services that were not provided to these individuals.
In February 2019, the New Haven Public Schools hired Dunlap as a guidance counselor at the New Haven Adult and Continuing Education Center. In February 2020, Dunlap accessed a database containing personal identifying information of students and former students enrolled at New Haven Adult and Continuing Education, many of whom Dunlap did not have any professional relationship with and had never met. Dunlap used the information he acquired to determine whether the students were insured by Medicaid and, if so, identified the students’ Medicaid member identification numbers. He then billed Medicaid for fraudulent psychotherapy services that were never provided to the students. Dunlap used the personal identifying information and Medicaid member numbers of approximately 135 New Haven Adult and Continuing Education students to bill Medicaid for fraudulent services, and was paid a total of approximately $593,383 by Medicaid for these claims.
Dunlap also fraudulently billed Medicaid for psychotherapy services purportedly provided to employees of Inspirational Care when no such services were provided, and submitted fraudulent claims to Medicaid for psychotherapy services purportedly provided to members of his family when no such services were provided.
Judge Dooley ordered to Dunlap to pay restitution to Medicaid in the amount of $1,313,322.
U.S. Attorney Boyle noted that Connecticut Department of Social Services, working in close cooperation with law enforcement, suspended Medicaid payments to Dunlap and recovered $337,777.63 that Dunlap was slated to receive from Medicaid. The U.S. Attorney’s Office’s Civil Division also seized and forfeited $412,415.20 from Dunlap’s bank accounts. Dunlap has made an additional restitution payment of $20,000, leaving a restitution obligation of $543,129.17.
Dunlap was arrested on a criminal complaint on October 14, 2020. On June 4, 2021, he pleaded guilty to one count of health care fraud.
Dunlap, who is released on bond, is required to report to prison on April 25.
This investigation has been conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation, with the assistance of the Office of the Inspector General for the U.S. Department of Housing and Urban Development, the Office of the Inspector General for the U.S. Department of Education, the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services.
This case is being prosecuted by Assistant U.S. Attorney David J. Sheldon with the assistance of Auditor Susan N. Spiegel.
Columbus man pleads guilty to robbing 2 mail carriers at gunpointRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in U.S. District Court today to two separate armed robberies of United States Postal Carriers.
Brandon J. Campbell, 20, admitted to using violence and a weapon to endanger the mail carriers’ lives and steal property from them.
According to Campbell’s plea documents, he assaulted two postal carriers in September 2021.
On Sept. 8, 2021, Campbell stole an “arrow” key – which is used to access USPS mailboxes and receptacles – and vehicle keys from a postal carrier who was delivering mail at Vistas at Rocky Fork Apartment Complex in Gahanna. Campbell wore a balaclava mask and used a Glock-style handgun.
On Sept. 21, 2021, Campbell committed armed robbery against a second postal carrier who was delivering mail near 4500 Hemingway Court in Columbus. He again used a handgun and mask and stole the carrier’s arrow key.
Investigators followed Campbell’s champaign-colored Saturn Aura and subsequently executed search warrants on an apartment Campbell fled into, as well as his vehicle. Law enforcement officers discovered four firearms in that apartment, as well as the balaclava mask. Forensic examination of Campbell’s iPhone showed the phone was in the location of both robberies during the timeframe of the robberies. Campbell’s phone also showed pictures of himself holding a Glock-style firearm.
Aggravated robbery of property of the United States is a federal crime punishable by up to 25 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future sentencing hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Gary R. Barksdale, Chief Postal Inspector, U.S. Postal Inspection Service, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
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Charlotte Man Is Sentenced to 11 ½ Years for Robbing A Metro T-Mobile Store at GunpointRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Joseph Antwan Faulk, 37, of Charlotte, to 138 months in prison and three years of supervised release for robbing a Metro T-Mobile at gunpoint, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, on December 7, 2020, Faulk entered the Metro T-Mobile store located at 2504 Little Rock Road in Charlotte. Upon entering, Faulk approached the counter, pointed a firearm at two store employees, and ordered them to hand over the cash from the registers. Faulk also threatened to shoot the employees if they did not do as he said. The employees complied and Faulk fled the scene with the store’s cash and the employees’ personal cell phones. CMPD officers were able to identify Faulk, and days later Faulk was located and arrested at a residence in Charlotte. Inside the residence, CMPD officers found the firearm Faulk used during the robbery. Faulk has four prior state convictions in North Carolina for Robbery With a Dangerous Weapon.
On July 7, 2021, Faulk pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and brandishing a firearm in furtherance of a crime of violence.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Career Offender living in Proximity to Springdale Elementary School Sentenced to 12 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 144 months in prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, in August of 2020, detectives with the 4th Judicial District Drug Task Force (DTF), with the assistance of other law enforcement agencies, identified Miles L. Neil, age 57, as a distributor of methamphetamine operating in Northwest Arkansas.
Between August and October of 2020, Detectives conducted multiple controlled purchases of methamphetamine from Neil.
On or about October 9, 2020, DTF detectives executed a search warrant on Neil's Springdale residence, which is located adjacent to Westwood Elementary School. The search resulted in the confiscation of approximately 162 gross grams of methamphetamine and drug paraphernalia.
At sentencing, the United States presented evidence to the Court that Neil had prior felony convictions, which resulted in him being sentenced as a Career Offender.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Dustin Roberts prosecuted the case.
Boston Man Pleads Guilty to Third Federal Bank Robbery ChargeRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to the April 2020 robbery of a Santander Bank branch in Boston.
Dennis C. Taylor, 49, pleaded guilty one count of bank robbery. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 15, 2022. Taylor was arrested and charged by criminal complaint on Nov. 4, 2020, and subsequently indicted by a federal grand jury on Nov. 12, 2020.
On April 29, 2020, an individual – later determined to be Taylor – dressed in a dark hooded jacket, blue latex gloves and a facemask entered a Santander Bank branch on Massachusetts Avenue in Boston where he approached a teller and demanded money. The teller handed Taylor cash from her drawer, which he placed in a white plastic bag before exiting the bank. Included within the cash was a red dye pack. Surveillance cameras on Massachusetts Avenue captured video of Taylor exiting the area and running towards a local parking garage as the red dye pack exploded into a plume of red smoke. During a subsequent search of the parking garage, law enforcement recovered a white plastic bag containing red dye-stained money and a pair of blue latex gloves. The gloves were found to match Taylor’s DNA profile.
Taylor has been previously convicted of federal bank robbery in 2004 and again in 2010. In 2010, Taylor was sentenced to 10 years in prison and three years of supervised release for the December 2009 robberies of a Rockland Trust bank and a TD Bank in Yarmouth.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.
Bakersfield Fentanyl Dealer Sentenced to 3 Years in PrisonRead the Press Release
FRESNO, Calif. — Uriel Ivan Portillo, 35, of Sinaloa, Mexico, was sentenced today to three years and four months in prison for conspiring to possess with intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 21, 2019, Portillo distributed 5,000 counterfeit oxycodone pills containing fentanyl in exchange for $40,000 during a controlled purchase in Bakersfield.
This case is the product of an investigation by the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area Task Force, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Portillo’s co-defendant, Wilfredo Medina Perez, also pleaded guilty to the same and additional drug transactions. He is scheduled for sentencing on March 18, 2022, before U.S. District Judge Jennifer L. Thurston. Medina faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Armed Career Criminal Found Guilty of Firearm and Drug OffensesRead the Press Release
Fort Myers, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Alex Winters (43, Leesburg) guilty of possessing a firearm and ammunition as a convicted felon, possessing controlled substances with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. Winters, who qualifies as an Armed Career Criminal based upon his criminal history, faces a mandatory minimum sentence of 20 years, and up to life, in federal prison. His sentencing hearing has not yet been scheduled. Winters was indicted on February 24, 2021.
According to testimony presented at trial, on May 7, 2020, deputies with the Collier County Sheriff’s Office stopped a car for a traffic violation. After a deputy noted the smell of marijuana, the car was searched. Beneath Winters’s seat, deputies found a loaded 9mm pistol and fanny pack containing distribution amounts of crack cocaine, powder cocaine, and eutylone. Also in the fanny pack, deputies found a digital scale, baggies, a drug ledger, and 9mm ammunition. Winters’s DNA was later analyzed and compared to DNA swabs taken from the firearm and he was determined to be a possible contributor.
This case was investigated by the Collier County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Mark Morgan.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
10 March 2022
Worcester Man Sentenced for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Worcester man was sentenced today for illegally possessing a firearm and ammunition.
Ronney Fullard, 32, was sentenced by U.S. District Court Indira Talwani to time served (approximately 14 months in prison) and three years of supervised release. On Oct. 6, 2021, Fullard pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
Fullard was indicted in October 2020 with co-defendant Jerrod Lee. On Aug. 7, 2020, during a search of Lee’s Taunton residence, Fullard was found in possession of a loaded Taurus PT 709 9mm pistol with six rounds of ammunition. Fullard is prohibited from possessing firearms and ammunition due to prior convictions punishable by more than one year in prison, including state convictions of assault and battery and unlawful firearm possession.
On Dec. 9, 2021, Lee pleaded guilty to the same charge and is scheduled to be sentenced on April 7, 2022.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Acting Commissioner Gregory Long; and Taunton Police Chief Edward James Walsh made the announcement today. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Washington Man Indicted for Marijuana TraffickingRead the Press Release
United States Attorney Dennis Holmes announced that an Olympia, Washington, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Lawrence Allan Swan, age 63, was indicted on January 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 8, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $1,000,000 fine, lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 2020 and December 2021, in South Dakota and elsewhere, Swan knowingly and intentionally conspired with others to distribute and possess with intent to distribute 50 kilograms or more of marijuana.
The charge is merely an accusation and Swan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Corson County Sherriff’s Office, the South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Swan was released on bond pending trial. A trial date has not been set.
Virginia Man Sentenced to Prison for Defrauding Apple Inc.Read the Press Release
WASHINGTON – Teang Liu, 38, of Alexandria, Virginia, a citizen of the People’s Republic of China, was sentenced today to 12 months and a day in prison for participating in a conspiracy to defraud Apple Inc. out of more than $1 million.
The announcement was made by U.S. Attorney Matthew M. Graves, Raymond Villanueva, Special Agent in Charge, Washington, D.C. Field Office, Department of Homeland Security, Homeland Security Investigations, and Greg Torbenson, U.S. Postal Inspector in Charge for the Washington Division, U.S. Postal Inspection Service.
Liu pleaded guilty in February 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit mail fraud. In addition to the prison term, the Honorable Emmet G. Sullivan ordered Liu to pay $577,780 in restitution and $57,780 in a forfeiture money judgment. Followning his prison term, Liu will be placed on a year of supervised release.
Liu moved to the United States in 2011. In 2014, he obtained his master’s degree in finance from George Washington University. From at least June 2016 to at least June 2018, he actively participated in a conspiracy to defraud Apple. Liu was recruited to join the conspiracy by Haiteng Wu. Wu also recruited Jiahong Cai, Wu’s wife, to participate in the scheme. Like Liu, Wu and Cai are citizens of the People’s Republic of China.
As part of the scheme, conspirators received shipments of inauthentic iPhones from Hong Kong. Those phones contained spoofed IMEI numbers and serial numbers that corresponded with authentic in-warranty iPhones. The conspirators then returned the inauthentic phones to Apple, claiming that the phones were legitimate, in-warranty phones, all in an effort to receive authentic replacement iPhones from Apple. The fraudulently obtained authentic iPhones were then shipped back to conspirators overseas, including in Hong Kong.
Liu’s particular role in the conspiracy included opening dozens of commercial mail agency mailboxes -- mostly at UPS Stores -- using fake identification cards that Wu provided to him, returning fraudulent phones to Apple retail stores, and traveling to the Rocky Mountains and Florida to facilitate the fraud.
The conspirators acknowledged successfully defrauding Apple out of nearly $1 million and intending to defraud the company out of even more money.
Wu, Cai, and Liu were arrested in December 2019. Wu and Cai were detained from the time of their arrests to their sentencings. Each pleaded guilty to conspiracy to commit mail fraud in May 2020. Cai ultimately ended up spending five months at a D.C. jail as part of her sentence. She also was ordered removed from the United States. Wu was sentenced on Feb. 1, 2021, to time served, approximately 26 months that he spent in custody.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and the U.S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Kondi Kleinman of the U.S. Attorney’s Office for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section, and Senior Counsel Ryan K.J. Dickey of the Justice Department’s Computer Crime and Intellectual Property Section. They were assisted by Paralegal Specialists Michon Tart, Mariela Andrade, Amanda Rohde, and Brian Rickers, former Paralegal Specialists Jessica Mundi, Brittany Phillips, and Angeline Thekkumthala, and Records Examiner Angela De Falco.
U.S. Attorney Announces Anti-Hate Crime InitiativesRead the Press Release
Spokane, Washington – U.S. Attorney Vanessa R. Waldref announced today her office’s increased resource dedication to civil rights, including its participation in a first of its kind, anti-hate crime outreach program entitled United Against Hate, which seeks to directly connect federal, state, and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents.
“I am honored that our office has been chosen to take the lead nationally in the fight against hate crimes with the United Against Hate outreach initiative,” said U.S. Attorney Waldref. “Combatting hate and hate-driven offenses is vital to our mission of building stronger and safer communities for everyone,” added U.S. Attorney Waldref.
In November, the U.S. Attorney’s Office for the Eastern District of Washington was chosen as one of three districts, out of 94 districts in the nation, to advance the United Against Hate outreach initiative. United Against Hate is a panel presentation involving subject matter experts from the U.S. Attorney’s Office, the FBI, and local law enforcement partners, who engage in direct discussions with members of marginalized communities and those most vulnerable to hate crimes and hate incidents. Hate crimes are commonly defined as crimes committed because of the perpetrator’s perception of the victim’s race, color, religion, national origin, physical or mental disability, family status, sex, gender, sexual orientation, or gender identity. Hate crimes can be prosecuted under Washington state law and can often also be prosecuted under federal laws such as the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. By making direct contact with the communities most vulnerable to hate crimes and hate incidents, law enforcement can provide visibility into reporting systems and highlight the importance of reporting hate crimes and hate incidents. Additionally, the United Against Hate outreach initiative provides an opportunity for communities to share their concerns with law enforcement, in order to decrease barriers that prevent hate crimes and hate incidents from being reported. The outreach also provides opportunities to increase communication and collaboration between the communities that are most frequently targeted for hate crimes and incidents and the law enforcement professionals responsible for investigating and preventing them.
The data collected on hate crimes and hate incidents underscores the importance of this outreach initiative. Based on the Department of Justice’s National Crime Victimization Survey, between 2010 and 2019 over 55% of hate crimes nationwide were not reported to law enforcement. Applying that non-reporting rate to available FBI Crime Data indicates that in Spokane County alone there is reason to believe that as many as 25 hate crimes went unreported to law enforcement in 2019 and 2020.
“While hate cannot be defeated by law enforcement alone, law enforcement has a vital role to play in protecting the public and marginalized groups from hate-motivated offenses and in communicating our shared values and fostering hope that our communities can be safer, stronger, and more inclusive,” said U.S. Attorney Waldref. “Hate crimes and hate incidents, including hate speech, do not reflect the values of Eastern Washington and have no place in our communities, our law enforcement, or our criminal justice system. In the coming weeks and months, through United Against Hate and our other outreach efforts, we hope to engage in direct dialogue with marginalized community members and invite them to meet personally with some of the law enforcement professionals, at all levels, who are dedicated to combatting hate in Eastern Washington.”
The United States Attorney’s Office also announced increased civil rights enforcement resources and efforts. “Of course it is not enough to engage in outreach alone,” stated U.S. Attorney Waldref. “We are increasing our focus on civil rights, including hate crimes, hate incidents, and illegal discrimination, by committing additional Assistant U.S. Attorney and staff resources. We are deploying these increased resources in the area of civil rights - such as vigorously enforcing the Americans with Disabilities Act (ADA), the Fair Housing Act, as well as veterans and active service members rights, to name just a few,” said U.S. Attorney Waldref.
Finally, the United States Attorney’s Office also announced its new civil rights web page found at https://www.justice.gov/usao-edwa/edwa-civil-rights-webpage , which contains many links to important resources and information for people who may have experienced or witnessed a civil rights violation, whether criminal or civil. The web page also provides the public with direct links to online civil rights complaint forms that can be submitted directly to the U.S. Attorney’s Office or the Department of Justice Civil Rights Division.
“We cannot bring the full force of the people’s power against hate crimes, hate incidents, and other civil rights violations without individuals being given opportunities to come forward. Our office now has a dedicated civil rights email account ([email protected] ) and phone number (509) 835-6306), for the public’s use. I want to thank the Gonzaga University Department of Modern Languages and Literature who donated their expertise to this effort and provided Spanish translation services to allow us to reach a wider audience and facilitate access to these accounts for Spanish speakers. These accounts are monitored frequently and will allow members of my civil rights team to quickly review and promptly respond to submissions and inquiries. We will utilize the information provided by the public regarding suspected civil rights violations in our overall efforts to track and analyze any larger trends that need to be addressed and to determine on a case-by-case basis whether we can investigate the matter, refer it to other appropriate entities, or otherwise assist,” said U.S. Attorney Waldref.
Two-Time Bank Robber Sentenced to PrisonRead the Press Release
MACON, Ga. – A Middle Georgia resident with a lengthy criminal history, convicted by a federal jury for his second bank robbery offense, was sentenced to serve more than 17 years in prison.
Wesley Sorrow, 50, was sentenced to serve 210 months imprisonment to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on March 9, after being convicted of bank robbery following a three-day trial that began on Nov. 15, 2021. There is no parole in the federal system.
“Wesley Sorrow has a long criminal history. Coupled with his decision to hold up a bank within days of arriving at a Macon halfway house for a previous bank robbery, he now has to pay a steep penalty for the criminal choice he made,” said U.S. Attorney Peter D. Leary. “Repeat offenders who continually disrupt the peace and the safety of the communities we serve will face the possibility of federal prosecution.”
“Previous federal prison time was apparently not a teaching moment for Sorrow because within a week of being released, he went right back to his bank robbing ways,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “To anyone thinking about robbing a bank, the message from this sentence is clear. You will get caught, and when you do, you will serve a significant amount of time in prison.”
According to court documents and evidence presented at trial, Sorrow was seven days into his residency at a halfway house after being released from federal prison for a bank robbery conviction in the Middle District of Georgia. On May 21, 2019, Sorrow walked into the American Pride Bank on Forsyth Road in Macon and presented a note to the bank teller demanding money. Sorrow took the cash and left the bank, returning to the halfway house. Sorrow was captured later that day and cash stolen from the bank was recovered from his locker. Sorrow has a lengthy criminal history, which was considered at his sentencing, including a previous bank robbery, robbing a person at gunpoint twice, forgery and multiple drug charges.
The case was investigated by FBI and the Bibb County Sheriff’s Office.
Assistant U.S. Attorneys Joy Odom and Robert McCullers prosecuted the case.
Two Indicted in East Texas Cryptocurrency Money Laundering SchemeRead the Press Release
TYLER, Texas –A 75-year-old woman and a 33-year-old man have been indicted for their roles in a cryptocurrency money laundering scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Lois Boyd, of Amelia Court House, VA, and Manik Mehtani, of McLean, VA, were named in an indictment returned by a federal grand jury, charging them with a violation of the Travel Act, money laundering, and money laundering conspiracy.
According to the indictment, Boyd and Mehtani are alleged to have conspired with others to receive victim money derived from a variety of fraud schemes and launder the proceeds through cryptocurrency. The defendants are alleged to have routinely structured deposits in order to avoid transaction reporting requirements and to conceal the nature and source of the criminal proceeds. The defendants allegedly exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, the defendants traveled to Longview, Texas, where they attempted to exchange more than $450,000 for Bitcoin. They were temporarily detained and the money was seized. In the course of their operation, Boyd, Mehtani, and their co-conspirators allegedly laundered more than $750,000.00.
If convicted, Boyd and Mehtani face up to 20 years in federal prison. A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
This case is being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
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Two Gastonia Drug Traffickers Are Sentenced to 15+ Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. handed down lengthy prison sentences to two individuals convicted of drug trafficking in Gaston County, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Corey Dusean Edwards, 45, of Gastonia, N.C., was sentenced to 188 months in prison and five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine; possession with intent to distribute cocaine base; and possession of a firearm by felon. According to court documents and proceedings in this case, from 2018 to 2020, Edwards was responsible for trafficking more than a kilogram of crack cocaine in Gaston County. Over the course of the investigation, law enforcement seized cocaine and other drugs from Edwards’ residence, as well as a stolen firearm and $1,723 in cash. As a result of Edwards’s multiple prior drug convictions, the Court sentenced him as a career offender.
In a separate case, Caleb O’Brian Kendrick, 31, of Gastonia, was also ordered to serve 188 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine; two counts of possession with intent to distribute cocaine base; and possession of firearm by a felon. Court documents filed in this case show that, from 2016 to 2019, Kendrick was engaged in drug trafficking activities in Gaston County. Over the course of the investigation, law enforcement recovered from Kendrick’s residence narcotics and firearms, and evidence of his membership in the Bloods gang. At today’s hearing, the Court enhanced Kendrick’s term of imprisonment due to his prior convictions for, among other things, drug trafficking, armed robbery, burglary, kidnapping, and assault with a deadly weapon with intent to kill inflicting serious injury.
U.S. Attorney King credited today’s outcomes to investigations led by one of the Western District of North Carolina’s Organized Crime Drug Enforcement Task Forces (OCDETF), which have resulted in the conviction of more than 70 individuals, and the seizure of over 1,625 kilograms of crack cocaine, 561 kilograms of cocaine, more than 1,430 kilograms of methamphetamine, more than 210 kilograms of heroin, over 28 kilograms of fentanyl, 89 firearms, and more $290,000 in cash and other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King thanked the Federal Bureau of Investigation and the Gastonia Police Department for their investigative efforts.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the cases.
Twelfth Defendant Convicted in Dog-Fighting, Drug Distribution RingRead the Press Release
A Georgia resident pleaded guilty to federal charges resulting from a lengthy investigation into a significant multi-state dog fighting and cocaine trafficking network.
Shelley Johnson, aka Gold Mouth, 40, of Macon, pleaded guilty to conspiracy to participate in an animal fighting venture before U.S. District Judge Tilman E. “Tripp” Self III. Johnson faces a maximum five years of imprisonment to be followed by three years of supervised release and a $250,000 fine. Sentencing has been scheduled for June 7.
According to court documents, law enforcement investigated a criminal organization involved in both cocaine distribution and organized dog fighting based out of Roberta, Georgia, which extended into North Georgia, Florida and Alabama from May 2019 until February 2020. In February 2020, law enforcement executed 15 residential search warrants and seized more than 150 dogs that were being used for organized dog-fighting. A 136-count indictment was unsealed on Jan. 29, 2021, charging 11 individuals with various criminal activities. Three other individuals, including Johnson, were charged by criminal information.
During this time period, Johnson communicated with co-conspirator Jarvis Lockett about fighting and breeding dogs, dogs mauled and killed as a result of fighting, sharpening a dog’s teeth for fighting purposes, cash prizes for fights, and various topics detailing the business and the brutality of dog-fighting. Johnson attended a dog fight and participated as a handler inside the ring during the dog fight. Law enforcement executed a search warrant at Johnson’s Macon residence on Feb. 26, 2020, recovering 13 pit bull terrier type dogs with scarring consistent with dog-fighting. In addition, agents found evidence of dog fighting activities including a digital scale, weighted collars, heavy chains, ground stakes and a variety of medical supplies to treat animals for injuries sustained from dog fighting activities.
The following co-conspirators have been convicted and sentenced in this case:
Lekey Davis, aka Kee Boo, 46, of Talbotton, Georgia, was sentenced to serve 210 months of imprisonment after pleading guilty to conspiracy to possess with intent to distribute cocaine and cocaine base;
Christopher Raines, aka Binky, 51, of Talbotton, Georgia, was sentenced to serve 135 months of imprisonment to be followed by five years of supervised release and to pay a $10,000 fine after pleading guilty to conspiracy to participate in an animal fighting venture and conspiracy to possess with intent to distribute cocaine and cocaine base;
Jarvis Lockett, aka J-Rock, 41, of Warner Robins, Georgia, was sentenced to serve ten years of imprisonment to be followed by three years of supervised release after pleading guilty to conspiracy to participate in an animal fighting venture and cocaine distribution;
Derrick Owens, aka Doomie, 38, of Woodland, Georgia, was sentenced to serve ten years of imprisonment after pleading guilty to conspiracy to participate in an animal fighting venture and conspiracy to possess with intent to distribute cocaine;
Jason Carter, 39, of Phoenix City, Alabama, was sentenced to serve 97 months of imprisonment after pleading guilty to conspiracy to possess with intent to distribute cocaine;
Vernon Vegas, 50, of Suwanee, Georgia, was sentenced to serve the maximum five years in prison to be followed by three years of supervised release and pay a $10,000 fine after pleading guilty to conspiracy to participate in an animal fighting venture;
Shaquille Bentley, 27, of Roberta, Georgia, was sentenced to serve four years of imprisonment after pleading guilty to use of a communication facility;
Rodrick Walton, aka Rodrie Walton, 42, of Shiloh, Georgia, was sentenced to serve two years of imprisonment after pleading guilty to conspiracy to participate in an animal fighting venture;
Reginald Crimes, 39, of Preston, Georgia, was sentenced to serve two years of imprisonment to be followed by three years of supervised release after pleading guilty to conspiracy to participate in an animal fighting venture;
Lee Benney, 55, of Reynolds, Georgia, was sentenced to serve 21 months of imprisonment to be followed by three years of supervised release after pleading guilty to conspiracy to participate in an animal fighting venture; and,
Bryanna Holmes, 25, of Fort Valley, Georgia, was sentenced to serve three years of probation after pleading guilty to use of a communication facility.
The case was investigated by the Justice Department’s Environment and Natural Resources Division (ENRD), the Drug Enforcement Administration (DEA), the Department of Agriculture, Office of the Inspector General (USDA-OIG), the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Bibb County Sheriff’s Office, the Crawford County Sheriff’s Office, the Houston County Sheriff’s Office, the Merriweather County Sheriff’s Office, the Peach County Sheriff’s Office, the Taylor County Sheriff’s Office, the Webster County Sheriff’s Office, the Byron Police Department and the Fort Valley Police Department.
Assistant U.S. Attorney Will Keyes with the U.S. Attorney’s Office for the Middle District of Georgia and Trial Attorney Banu Rangarajan of ENRD’s Environmental Crimes Section are prosecuting the case.
Three Men Will Serve Time in Prison for Smuggling Drugs into PrisonRead the Press Release
Greenville, MS – Three Puerto Rican men have been sentenced to prison for conspiring to distribute illegal narcotics.
According to court documents, Christian Jose Collazo Torres, 28, of Ponce, Puerto Rico, Neftali Santiago, 28, of Ponce, Puerto Rico, and Jean Carlos Flores Santiago, 32, of Caguas, Puerto Rico, conspired with each other to possess with the intent to distribute illegal narcotics, including Fentanyl, a schedule II controlled substance, for the purpose of smuggling the illegal narcotics and other contraband into CoreCivic Prison in Tutwiler, Mississippi. On April 24, 2021, the three individuals were found in close proximity to CoreCivic Prison in possession of two drones, narcotics, cigarettes and cell phones, packaged in a manner consistent with smuggling items into a prison. Each of the three individuals involved plead guilty to conspiring to possess with intent to distribute controlled substances.
On February 2, 2022, Torres was sentenced by Chief U.S District Judge Debra M. Brown of the Northern District of Mississippi to 18 months incarceration followed by 3 years of supervised release. On February 23, Judge Brown sentenced Neftali Santiago to 34 months incarceration followed by 3 years of supervised release. On March 9, Jean Carlos Santiago was sentenced by Judge Brown to24 months incarceration followed by 3 years of supervised release.
U.S. Attorney Clay Joyner of the Northern District of Mississippi and Don Douglas, Resident Agent in Charge of DEA, made the announcement.
“The prosecution of illegal drug trafficking is a priority in the Northern District of Mississippi, and we work closely with DEA, the Mississippi Bureau of Narcotics, and local law enforcement to ensure that those individuals and organizations who traffic and distribute drugs in our District are held accountable,” remarked Joyner. The actions of these individuals and their attempts to smuggle illegal narcotics into a prison facility make them extremely deserving of the prison sentences they received in this case.”
The DEA, Tutwiler Police Department, and Tallahatchie County Sheriff’s Office investigated the case. Assistant U.S. Attorney Robert Mims prosecuted the case.
Sun Prairie Man Sentenced to 51 Months for Illegally Possessing AmmunitionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Marvin Coates, 34, Sun Prairie, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 51 months in federal prison for illegally possessing ammunition. Coates pleaded guilty to this charge on November 30, 2021.
On June 23, 2019, shortly after 1:00 a.m., deputies from the Dane County Sheriff’s Office responded to reports of a fight and shots fired outside of the American Legion in Westport, Wisconsin. When deputies arrived, they secured the area and found seven Winchester .40 caliber shell casings in the parking lot. Surveillance video from an adjacent business confirmed that a fight broke out near the American Legion. The video also showed that Coates retrieved a pistol from his car, walked towards the people who were fighting, and fired seven shots into the air.
During an interview with law enforcement, Coates identified himself in the surveillance video and admitted to being a convicted felon.
At sentencing, Judge Peterson highlighted Coates’s criminal history and the serious nature of his conduct. Judge Peterson also noted that, by firing the gun, Coates brought the threat of violence to an already volatile situation.
The charge against Coates was the result of an investigation conducted by the Dane County Sheriff’s Office. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Suffolk Man Sentenced for Straw-Purchasing Firearms ConspiracyRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 156 months in prison in connection with aiding and abetting the making of a materially false statement during the purchase of a firearm and being a felon in possession of a firearm.
According to court documents, from approximately August 2018 to July 2020, Darren Walker, 34, and co-conspirators were members of a straw-purchasing conspiracy in which the co-conspirators straw-purchased multiple firearms for Walker, who would then transport the firearms from Hampton Roads to Baltimore, Maryland, among other locations, and resell them for a profit. Walker was attributed with being involved in the trafficking of at least 28 firearms. Four of the straw-purchased firearms were recovered in Baltimore from individuals who were involved in either drug-related arrests, were persons prohibited from possessing firearms, or both, including the recovery of a firearm loaded with an extended magazine containing 27 rounds of ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Al Chandler, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney William Jackson and Amanda Turner prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-89.
Suburban Chicago Man Admits Producing Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man has pleaded guilty to a federal child pornography charge for taking dozens of sexually explicit photographs of a three-year-old child.
MARCOS GERMAN MENDEZ, 34, of Rosemont, Ill., pleaded guilty Wednesday to one count of production of child pornography. The conviction is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years. U.S. District Judge Mary M. Rowland set sentencing for June 21, 2022.
Mendez admitted in a plea agreement that on two occasions in 2015 he took a total of more than 60 sexually explicit photographs of the child while she was sleeping. Mendez saved the images on his iPhone and iCloud account, and in 2016 he fled to Mexico. He was later arrested and extradited to the United States.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Valuable assistance was provided by HSI’s Mexico City office; FBI Chicago Field Office; U.S. Customs and Border Protection; U.S. Postal Service; Cook County, Ill., Sheriff’s Office; and U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Misty N. Wright and Ashley A. Chung.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Six men indicted on federal charges for illegal firearms possession, drugsRead the Press Release
SAVANNAH, GA: Six defendants face federal charges including drug trafficking and illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences related to illegal gun possession.
The indicted cases, along with six additional cases in the Augusta area, are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI and the Drug Enforcement Administration, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“Our office aggressively prosecutes previously convicted felons who illegally carry firearms,” said David H. Estes, U.S. Attorney for the Southern District of Georgia. “The safety of our communities is of paramount importance, and we won’t tolerate violent criminal behavior.”
In the past four years, more than 745 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony.
Defendants named in federal indictments from the March 2022 term of the U.S. District Court grand jury include:
- Justin Curtis Duke, 29, currently an inmate at Johnson State Prison, charged with Possession with Intent to Distribute 5 Grams or More of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Bobby Lewis Sturkey; 51, of Harlem, Ga., charged with Possession with Intent to Distribute 5 Grams or More of Methamphetamine, and Possession of a Firearm by a Convicted Felon;
- Carlos Middleton, 21, of Savannah, charged with Interference with Commerce by Robbery, and Possession of a Firearm in Furtherance of a Crime of Violence;
- Robert Alexander DuBose, 40, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Michael Jordan Sharp, 30, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- DeShawn Tisdale, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- David Bryson Murphy, 21, of Thomson, was sentenced to 54 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. McDuffie County Sheriff’s deputies arrested Murphy April 25, 2021, after finding him with a pistol during a traffic stop.
- Jamel Albert, 30, of Savannah, was sentenced to 57 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found Albert in possession of a pistol during an April 2021 traffic stop.
- Ashley Nichole Pitts, 30, of Hinesville, Ga., was sentenced to 36 months of home confinement after pleading guilty to Possession of a Firearm by a Convicted Felon. Pitts was arrested in January 2019 when Liberty County Sheriff’s deputies responded to her home to investigate a complaint about a man brandishing a firearm. Accompanied by an officer from the Georgia Department of Community Supervision, deputies found two pistols in Pitts’ home.
- Tommy Greene, 34, of Savannah, awaits sentencing after pleading guilty to Possession with Intent to Distribute Eutylone (Bath Salts) and Methamphetamine, and Possession of a Firearm by a Convicted Felon. The Savannah Police Department Violent Crimes Task Force arrested Greene in October 2020 after he ran from officers and was found with a pistol and a large bag of drugs in his pockets.
- Larry Bennett Jr., 25, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Bennett in January 2020 when they found him in possession of two pistols during a traffic stop.
- Timothy Mario Mitchell, 24, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Mitchell in August 2020 after a brief chase when a pistol fell from the waistband of Mitchell’s shorts.
- James Kenneth Merritt, 35, of Waynesboro, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Burke County Sheriff’s deputies arrested Merritt in December 2020 after Merritt drove away and then ran from an attempted traffic stop, dropping a pistol as he fled.
- Barry McCormick, 26, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. McCormick was charged after a pistol fell down his pants leg during a November 2020 traffic stop by Savannah Police officers.
- Kenya Leon Parker, 33, of Savannah, awaits sentencing after pleading guilty to Possession of a Stolen Firearm. Savannah Police officers arrested Parker in February 2021 after finding a pistol in his possession during a traffic stop.
- Hunter Cole Reavis, 25, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Reavis was on probation in March 2021 when agents from the Georgia Department of Community Supervision found a pistol during a search of his Savannah hotel room.
Agencies investigating these cases include the ATF, the FBI, the DEA, the Savannah Police Department, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, and the McDuffie County Sheriff’s Office.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Jeremiah L. Johnson, Steven H. Lee, Marcela C. Mateo, Patricia G. Rhodes, and Henry W. Syms Jr., with firearms forfeitures coordinated through the Southern District of Georgia U.S. Attorney’s Office Asset Forfeiture Unit.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Reagor Dykes Owner Sentenced to 14 Years in Federal PrisonRead the Press Release
Reagor Dykes Auto Group owner Bart Reagor was sentenced today to 14 years in federal prison for lying to a bank about his company's prospects, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
In October 2021, a federal jury found Bart Wade Reagor, 55, guilty of making false statements to a bank insured by the FDIC. Mr. Reagor was sentenced today by U.S. District Judge Matthew J. Kacsmaryk, who ordered him to pay $9,378,817.28 in restitution.
At his sentencing hearing, prosecutors introduced into evidence videos of Mr. Reagor berating his employees for not hitting their sales targets.
“You gotta want to win more than you want to live. I do. I [expletive] die to win. I want to win every [expletive] day. Every [expletive] day, every [expletive] deal,” he says in one meeting. (Clip here.)
“Some of you weren’t there because you didn’t sell 20 units… Boo [expletive] hoo. Cry your way to the weak zone. Cry your way to the loser zone. How many times have ya’ll head me crying? I can’t be crying because I got to take care of a lot of [expletive] crybabies... Somebody’s got to be strong, somebody’s got to be consistent, and somebody’s got to be a [expletive] leader. I chose me,” he said in another “Come on up to the front, come on up to the beast feast, come on up to the millionaire zone, come on up to the jet-flying, private jet-owning, gator-wearing, Rolex-wearing club. Come on up! It’s a choice you gotta make! Or you can cry your way to sleep with all the other [expletive] losers.” (Clip here.)
According to evidence presented at trial, in 2017, Mr. Reagor told International Bank of Commerce (IBC) that the auto group was experiencing tremendous growth and expected to go public. He claimed the company needed a cash infusion to sustain its upward trajectory and maintain a cash cushion for each of the dealerships to operate.
Relying on that information, IBC granted Reagor Dykes a $10 million working capital loan, which was distributed in two tranches: $5,000,000 in July 2017 and another $5,000,000 in February 2018, to be disbursed to the various RDAG entities.
Instead of investing all of the money into the business as he’d said he would, Mr. Reagor diverted more than $1.7 million to his personal account at Prosperity Bank – $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money. At trial, Reagor Dykes’ CFO, Shane Smith, testified that Mr. Reagor and his partner, Rick Dykes, routinely drew money out of the business. Over a 10-year-period, Mr. Smith estimated, the pair withdrew more than $25 million.
In videos introduced at sentencing, Mr. Reagor told employees that anyone bringing home a five-digit salary is “broke as [expletive]” and living “a chump life.”
“Don’t have any skeletons. See, I don’t have any -- and if I had any, I already forgot ‘em. I got a selective memory. I remember what I [expletive] want to remember,” he told his employees. “And everything else doesn’t [expletive] matter.” (Clip here.)
Fifteen of Mr. Reagor’s employees previously pleaded guilty to various crimes involving dummy flooring and check kitting at Reagor Dykes, including:
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, who pleaded guilty in September 2019 to conspiracy to commit bank fraud
- Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud
- Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud
- Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony
- Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud
- Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony
“To Bart Reagor, anyone who isn’t a millionaire is a chump. And Mr. Reagor couldn’t face being a chump. So, instead of doing his best to grow his business honestly, he padded his personal bank account by lying to a federally-insured bank. I imagine he will spend the next 14 years behind bars regretting that decision,” said U.S. Attorney Chad E. Meacham. “The Justice Department will not tolerate abuse of our nation’s financial institutions.”
“Financial crimes can destroy businesses which in turn causes irreparable damage to our economy. Mr. Reagor’s sentence sends a clear message to any criminal who uses corporate fraud for their own personal gain,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI and our law enforcement partners will not tolerate this behavior. We will vigorously pursue anyone that uses their executive position to defraud a lending institution, investors, or the public.”
The Federal Bureau of Investigation’s Dallas Field Office and Internal Revenue Services - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch prosecuted the case.
Rapid City Man Sentenced to Federal Prison for Firearm ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of two counts of Possession of a Firearm by a Prohibited Person and one count of Possession of an Unregistered Firearm was sentenced on March 7, 2022, by U.S. District Judge Jeffrey L. Viken.
Eric Ladeaux, age 35, was sentenced to three seven-year terms in federal prison, to run concurrently. Ladeaux was also sentenced to three three-year terms of supervised release, to run concurrently, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Ladeaux, a person who is prohibited from possessing firearms, was arrested and federally indicted after he came into contact with Pennington County Sheriff’s Office deputies in December 2019, and Rapid City Police Department officers in September 2020, and was found to be in possession of firearms. Ladeaux was also found to be in possession of an unregistered firearm during the September 2020 stop.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Ladeaux was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Billy Ray Shamblin, II, of Elkins, West Virginia, was sentenced today to 37 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Shamblin, 37, pleaded guilty in September 2021 to one count of “Distribution of Methamphetamine.” Shamblin admitted to selling methamphetamine, also known as “crystal meth” and “ice,” in February 2020 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Raleigh County Man Pleads Guilty to Damaging a Coal MineRead the Press Release
CHARLESTON, W.Va. – A Raleigh County man pleaded guilty to damaging a coal mine.
According to court documents, Ricky Sprouse, 46, of Naoma, admitted damaging a coal mine and stealing specialized equipment from the coal mine.
Sprouse pleaded guilty to aiding and abetting the destruction of an energy facility and faces a maximum penalty of 5 years in prison when he is sentenced on June 8, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Federal Bureau of Investigation.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant U.S. Attorney Kathleen Robeson 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. 2:22-cr-00045.
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Project Concern International, a Global Health Non-Profit Organization, Agrees to Pay $537,500 to Resolve False Claims Act ActionRead the Press Release
WASHINGTON – Project Concern International (PCI) has agreed to pay the United States $537,500 to resolve allegations that it knowingly submitted false claims to the United States Agency for International Development (USAID), in PCI’s performance of grants to provide agricultural and other aid to developing countries.
The announcement was made today by U.S. Attorney Matthew M. Graves and Special Agent in Charge Mark Day for the USAID Office of Inspector General (OIG).
“This agreement demonstrates our resolve to hold accountable any organization that mishandles federal funds,” said U.S. Attorney Graves. “Organizations such as PCI are entrusted to provide vital humanitarian assistance to those in need, and the United States will ensure that a violation of that trust will be investigated and prosecuted.”
“This settlement reflects the consequences for submitting false invoices to USAID for work not actually performed,” said USAID OIG Special Agent in Charge Day. “Organizations receiving USAID funds must establish checks and controls in their accounting systems to ensure that fraud schemes like this are detected and disrupted early on. USAID OIG, through its global investigative activities, will continue to work with our partners at the Department of Justice to hold accountable those who, through corruption and fraud, compromise the operations of critical U.S. foreign assistance programs.”
PCI is a global health non-profit organization headquartered in San Diego, California, and operates a second office in Washington, D.C. Based on information from a whistleblower, a review of PCI internal communications and financial records by the U.S. Attorney’s Office and the USAID OIG for the period 2014 to 2016 determined that PCI was improperly shifting costs between projects, and sometimes using USAID grant funds to cover for privately-funded projects.
Specifically, once grant funding for one assistance project was depleted, PCI supervisors would instruct its employees to bill their time or other costs to separate and unrelated USAID grant projects that had money remaining in their accounts, even though those employees did not work on that project. PCI then certified to USAID that it used the grant funds only as allowed under each project.
PCI through its legal counsel, cooperated with the investigation and agreed to settle the matter prior to a determination of liability in the civil case. Under the settlement agreement, PCI agreed to reimburse USAID $215,000, the estimated amount of mis-charged costs, and an additional multiplier penalty under the False Claims Act of $322,500, for a total of $537,500. PCI also agreed to pay the reasonable attorney’s fees incurred by the whistleblower.
The investigation in this matter was conducted by USAID OIG and Assistant U.S. Attorney Darrell Valdez of the U.S. Attorney’s Office for the District of Columbia.
The case is captioned United States. ex rel. Seims v. Project Concern International, Inc., No. 1-20-cv-0389 (D.D.C.)
Previously Convicted Felon from Philadelphia Sentenced to over 14 Years After Second Federal Drug Trafficking ConvictionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jose Manuel Figueroa, 52, of Philadelphia, PA, was sentenced to 14 years and seven months in prison, and six years of supervised release by United States District Court Judge Petrese B. Tucker for numerous narcotics and firearms offenses.
In September 2021, the defendant pleaded guilty to eight counts of distribution of heroin and one count each of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The charges stemmed from an investigation in which the defendant sold heroin packaged for street-level distribution on numerous occasions between May 2018 and July 2018. In September 2018, investigators executed a search warrant at the defendant’s residence and seized more heroin and two firearms stashed near the drugs. The defendant committed these offenses after having been previously convicted of voluntary manslaughter in the Philadelphia Court of Common Pleas and federal drug trafficking charges in the United States District Court for the Middle District of Florida.
“Drugs and firearms are a very dangerous combination, especially in Philadelphia where the violent crime rate has reached record levels,” said U.S. Attorney Williams. “Today’s sentence should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms or committing other illegal acts: our ‘All Hands on Deck’ initiative uses every law enforcement tool at our disposal to find and stop you. We will continue our coordination with the Philadelphia Police Department and federal agencies to make the community safer by removing these criminals from the streets.”
“Figueroa’s continued criminal behavior is emblematic of the potential for violence associated with the illegal drug trade,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “His illegal possession of multiple guns, packaged heroin for distribution, and prior felony convictions on federal drug charges and voluntary manslaughter are indicative of the threat he posed to our community.”
The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Pennsylvania State Police; and Phoenixville Police Department, and is being prosecuted by Assistant United States Attorneys Francis A. Weber and Derek E. Hines.
Port Clinton Physician Sentenced to Prison for Prescribing Controlled Substances Without Medical Necessity and Health Care FraudRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that William Bauer, 85, of Port Clinton, Ohio, was sentenced today by U.S. District Judge Jack Zouhary to 5 years in prison and was ordered to pay $464,099.14 in restitution, of which $253,300.55 will be paid to Medicare and $210,798.59 to Medicaid. In addition, Judge Zouhary ordered Bauer to pay $100,000 in community restitution. The community restitution will be distributed 65% to the Ohio Attorney General, Crime Victim Services Section, and 35% to the Ohio Department of Mental Health & Addiction Services. The Court strongly recommended that the community restitution amount go to the Mental Health and Recovery Services Board of Seneca, Ottawa, Sandusky and Wyandot Counties.
Judge Zouhary pronounced the sentence after Bauer was convicted at trial of 76 counts of distribution of controlled substances and 25 counts of health care fraud.
“This defendant unnecessarily distributed dangerous and highly addictive controlled substances and repeatedly ignored warning signs that his actions were causing detrimental harm to his patients and the community,” said Acting U.S. Attorney Michelle M. Baeppler. “No matter your title, those who flood the streets with dangerous drugs and prey upon vulnerable individuals will answer for their actions.”
“Criminal misconduct within the healthcare system is harmful and destructive,” said FBI Special Agent in Charge Eric B. Smith. “Not only does healthcare fraud impact insurers through monetary loss, but also to physicians, hospitals, and taxpayers who were unwitting participants to the deceitful actions. We will continue to work diligently to uncover fraudulent schemes that risk public health.”
“The sentencing of William Bauer demonstrates our commitment to stopping those who fuel the opioid epidemic,” said Kent R. Kleinschmidt, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division. “Medical professionals who disregard their oath and instead seek to profit at the expense of their patients and community will be brought to justice.”
According to court documents and evidence presented at trial, between 2007 and 2019, Bauer, at his practice in Bellevue, Ohio, repeatedly prescribed medically unnecessary controlled substances, including Oxycodone, Fentanyl, Morphine and Tramadol, outside the usual course of professional practice and not for a legitimate medical purpose.
During the trial, prosecutors showed that Bauer prescribed high doses of opioids and other controlled substances to patients without regard to any improvement in pain level, function, or quality of life; prescribed dangerous drug combinations; failed to consider a patient’s state of addiction and ignored warning signs of abuse and diversion such as patients’ stealing medications, frequently requesting early refills, losing medications and other actions.
The case focused on Bauer’s treatment of 14 patients. Throughout the trial, prosecutors showed that these patients suffered a loss of employment, fractured families and experienced deteriorating mental health conditions as a result of their drug dependency. In one instance, court documents state that in 2015 a patient of Dr. Bauer died from an accidental overdose.
In addition to his conviction for distributing controlled substances, Bauer was also convicted of health care fraud. As part of the health care fraud scheme, Bauer billed insurers after prescribing medically unnecessary controlled substances and administered needless epidural and trigger point injections that failed to meet certain procedural requirements. Because these injections failed to meet the procedural requirements, they were rendered ineffective and fraudulently billed to insurers.
“This doctor contributed to the tidal wave of opioid overdoses that flooded our communities,” Ohio Attorney General Dave Yost said. “I am proud of the state and federal partnerships that continue to work to stem the tide of addiction.”
“Providers sow distrust in our nation’s health care system when they participate in health care fraud and activities that endanger their patients,” said Mario M. Pinto, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General. “Along with our law enforcement partners, HHS-OIG will continue to hold accountable those who threaten the safety of beneficiaries through overprescribing and engaging in health care fraud.”
Court documents state that the total loss amount to Medicare and Medicaid due to the fraudulent billing practices was $464,099.14.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Department of Health and Human Services – Office of Inspector General and the Ohio Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorneys Ava R. Dustin, Michael A. Sullivan, Robert N. Melching and Payum Doroodian.
Porcupine Man Pleads Not Guilty to Involuntary ManslaughterRead the Press Release
United States Attorney Dennis R. Holmes announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter and False Statements.
Cassian Richards, age 19, was indicted on March 1, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on March 7, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is eight years in federal prison, and/or a $250,000 fine, up to life of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Richards killing another person in February 2022. The charges are merely accusations and Richards is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Richards was released from custody pending trial. A trial date has been set for May 10, 2022.
Pittsburgh Man Sentenced to Prison for Role in Heroin Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 70 months’ imprisonment followed by four years of supervised release on his conviction for conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Donald Lyles, Jr., 28.
According to information presented to the court, in 2018, the Federal Bureau of Investigation began investigating a heroin trafficking organization of which Lyles was a member. Beginning in February of 2019 and continuing through September of 2019, the FBI received authorization to conduct a Title III wiretap investigation into the organization. Lyles was intercepted orchestrating and directing the movement of heroin from Philadelphia to Pittsburgh for distribution throughout Pittsburgh by various members of the organization. In addition to the intercepted communications, agents seized heroin, firearms, and bulk United States Currency from members of the organization, including Lyles. Judge Stickman referenced the seriousness of the offense as well as Lyles’ criminal history.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Lyles.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philipsburg Man Sentenced to 21 Months in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Philipsburg, PA, has been sentenced in federal court to a total of 21 months in prison followed by 3 years supervised release on his conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Timothy Ferguson, 34.
According to information presented to the court, on or about July 2019 through in and around June 2020, Ferguson did conspire to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Ferguson. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Peoria Man Pleads Guilty to Firearms Burglary from Bloomington Firearms DealerRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, DaJuan Edwards-Melton, 20, of the 2100 block of W. Antoinette Street, pleaded guilty today to burglary of a federally licensed firearms dealer and possession of stolen firearms. Sentencing for Edwards-Melton has been scheduled for June 16, 2022, at the federal courthouse in Peoria.
In court today, before U.S. Magistrate Judge Jonathan Hawley, Edwards-Melton admitted to burglarizing Smiley’s Sports Shop in Bloomington, Illinois, early in the morning on December 12, 2021. According to court documents, Edwards-Melton was assisted by two juvenile males who entered the store with him to commit the burglary, as well a juvenile female who acted as a getaway driver.
During the change-of-plea hearing, the government stated that Bureau of Alcohol, Tobacco, Firearms & Explosives agents’ investigation led them to a yard just off an alley in the 2200 block of N. University Street. Agents were able to locate two Smiley’s Sport Shop gun tags. Further investigation led agents to Edwards-Melton, who was found to in possession of a 9mm pistol during a traffic stop in Peoria. The gun possessed by Edwards-Melton was identified as one of the twenty-five firearms stolen from Smiley’s Sports Shop.
Edwards-Melton remains in the custody of the U.S. Marshal Service, pending sentencing.
Edwards-Melton faces statutory penalties of up to 10 years imprisonment, a $250,000 fine and maximum three-year terms of supervised release for each count.
The case investigation was conducted by the Bloomington and Peoria Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ronald L. Hanna is representing the government in the prosecution.
Pennsylvania Man Sentenced for Traveling to the New York Intending to Engage in Sexual Conduct with Two ChildrenRead the Press Release
SYRACUSE, NEW YORK - James Obelkevich, age 52, of Carbondale, Pennsylvania, was sentenced today to 121 months (10 years and 1 month) for traveling to New York from Pennsylvania for the purpose of engaging in illicit sexual conduct with two children. The announcement was made by United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Kevin P. Bruen.
As part of his previously entered guilty plea, Obelkevich admitted that from the summer of 2019 until the spring of 2020 he exchanged multiple sexually explicit messages via an online social networking application with an undercover officer posing as the mother of 9-year-old and 13-year-old girls. In these messages, Obelkevich expressed a desire to engage in sexually explicit conduct with both children. Obelkevich further admitted that on March 11, 2020, he traveled from Pennsylvania to New York in order to meet with the children and engage in sexual conduct with them at a location in the Binghamton area.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Obelkevich is released from prison. Obelkevich will also be required to register as a sex offender.
This case was investigated by the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case was prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
New Orleans Man Sentenced to 81 Months Imprisonment for Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that REYNAUD KENDRELL VARISTE (“VARISTE”), age 32, a resident of New Orleans, Louisiana, was sentenced to 81 months imprisonment and a $200.00 mandatory special assessment fee after pleading guilty in federal court to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A) and possession with intent to distribute heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Upon release from imprisonment, VARISTE will be placed on supervised release for 3 years.
On July 12, 2018, VARISTE was charged in a three-count indictment by a federal grand jury with possessing heroin with the intent to distribute, using a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation on investigating this matter. Assistant United States Attorney Kathryn M. McHugh prosecuted the case.
New Bedford Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A New Bedford man pleaded guilty today in federal court in Boston to the July 2021 robbery of a Bristol County Savings Bank branch in Dartmouth. At the time of the robbery, the defendant was on supervised release for a 2014 federal bank robbery conviction.
David A. Frates, 43, pleaded guilty one count of bank robbery. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 13, 2022. Frates was charged on Oct. 7, 2021.
On July 19, 2021, an individual – later determined to be Frates – entered a Bristol County Savings Bank branch in Dartmouth. Once inside the bank, Frates approached a teller, demanded $20,000 and threatened to stab a second teller if his demands were not met. Frates then produced a long-handled knife and repeatedly struck the knife on the teller’s counter, while repeating he was going to stab the teller. The teller handed Frates $20,000 from the bank’s vault and Frates exited the bank. An investigation by local law enforcement identified Frates as the robber and arrested him on July 21, 2021. At the time of his arrest, Frates was in possession of over $9,000 in cash.
Frates was subsequently charged by the Bristol County District Attorney’s Office with the robbery and later transferred into federal custody.
Frates was previously convicted in 2014 on federal bank robbery charges for the armed robbery of a St. Anne’s Credit Union branch in New Bedford and was sentenced to 11 years in prison. In May 2020, that sentence was reduced to 81 months in prison based in part on changes in the United States Sentencing Guidelines.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Dartmouth Police Chief Brian P. Levesque made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.
Monongalia County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Woody, of Morgantown, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Woody, 42, pleaded guilty today to one count of Possession with Intent to Distribute Methamphetamine.” Woody admitted to distributing methamphetamine in April 2020 in Monongalia County.
Woody faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles 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.
U.S. Magistrate Judge Michael John Aloi presided.
Moline Man Pleads Guilty to Attempting to Meet a Minor for Sex and Soliciting Obscene Photos of a MinorRead the Press Release
ROCK ISLAND, Ill. – A Moline, Illinois, man, Mark Eugene Downing, 44, of the 1200 Block of 15th Street, pleaded guilty on March 9, 2022, to attempted enticement of a minor and soliciting an obscene visual depiction of a minor. Sentencing for Downing has been scheduled for July 19, 2022, at the U.S. Courthouse in Davenport, Iowa.
In court before Chief U.S. District Judge Darrow, Downing admitted that he planned to engage in sexual activity with an eleven-year-old child and had solicited nude photos of the child. During the hearing, the government stated that Downing was arrested after he attempted to meet the child for sexual activity while in possession of methamphetamine and alcohol. Downing had previously solicited nude photos and videos of the minor through the internet.
Downing remains in the custody of the U.S. Marshals Service pending sentencing.
Downing faces a mandatory minimum term of 10 years and up to life imprisonment, at least five years and up to a life term of supervised release, and up to a $500,000 fine.
The case was investigated by the Moline Police Department and the Federal Bureau of Investigation and arose via a tip from the Crime Stoppers of the Quad Cities. Assistant U.S. Attorney Jennifer Mathew is representing the government in the prosecution.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Missouri Woman Convicted for International Advance-Fee SchemeRead the Press Release
A Missouri woman was convicted by a federal jury for her role in a multimillion-dollar international advance-fee scheme orchestrated from Nigeria.
According to the evidence presented at trial, Osa Martin, 76, of Carthage, traveled internationally on nine occasions between August 2015 and August 2016 while claiming to represent BB&T Corporation. On these trips, she met with victims of the scheme, who had been led to believe by co-conspirators based in Nigeria that they had multimillion-dollar investment agreements with BB&T. Martin signed the investment agreements, purportedly on behalf of BB&T, and then made sham visits to U.S. embassies to make the victims believe that the U.S. Department of State was notarizing and sponsoring the investment agreements. On each trip, Martin collected $7,500 or more in cash from the victims under the false pretense that the cash payment was a fee charged by the U.S. embassy. After her sham visits, Martin coordinated with co-conspirators to ensure victims received fake receipts and documents bearing State Department seals. The victims were then induced by Nigerian co-conspirators to make large wire payments to bank accounts in the United States on the false belief they were necessary fees before BB&T would release their investment funding.
Martin was convicted on Tuesday of one count of conspiracy to commit wire fraud and one count of conspiracy to wrongfully use government seals. She is scheduled to be sentenced on May 19, and faces up to 20 years in prison for the first count and up to five years in prison for the second 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 Jennifer Lowery for the Southern District of Texas; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent-in-Charge James Smith of the FBI’s Houston Field Office; and Special Agent-in-Charge Michael Speckhardt of the U.S. Department of State’s Office of Inspector General (DOS-OIG) made the announcement.
The FBI and DOS-OIG investigated the case.
Assistant Chief William Johnston and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas prosecuted the case.
Minnesota Concrete Company and its CEO Indicted for Rigging Bids for Public ContractsRead the Press Release
Note: The defendants in this case, Steven Dornsbach and Kamida Inc., were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury returned an indictment charging Kamida Inc., a Minnesota-based concrete repair and construction corporation, and its CEO, Steven Dornsbach, with participating in a conspiracy to rig bids for public concrete repair and construction contracts in the state of Minnesota.
According to court documents filed in the U.S. District Court in Minneapolis, Dornsbach and Kamida conspired to rig bids on concrete repair and construction contracts submitted to at least four municipalities in the state of Minnesota, including local governments and school districts in the Minneapolis-St. Paul area, from at least as early as September 2012 and continuing through at least July 2017. Last year, Minnesota concrete contractor Clarence Olson pleaded guilty for his involvement in the conspiracy.
“Bid-rigging schemes that target local government contracts cheat taxpayers out of the benefits of competition,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This indictment affirms the division’s commitment to safeguarding the integrity of the government procurement process at all levels of government.”
“For years, the defendants allegedly cheated their own communities by conspiring to rig bids on concrete repair and construction contracts for local governments and school districts,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Bid rigging is not a victimless crime; it reduces competition and charges taxpayers the difference. This indictment shows that the FBI and our partners are committed to investigating those who try to cheat the system for their own gain.”
The defendants are each charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals, and a $100 million fine for corporations. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount 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 Antitrust Division’s Chicago Office is prosecuting the case, which was investigated with the assistance of the FBI’s Minneapolis Field Office.
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. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/report-violations.
Mexican National Sentenced to over 8 Years in Prison for Conspiracy to Distribute Methamphetamine in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — Maria Cervantes-Echevarria, 35, a Mexican national living in Los Molinos, was sentenced today by U.S. District Judge Troy L. Nunley, to eight years and nine months in prison for conspiracy to distribute methamphetamine, United States Attorney Phillip A. Talbert announced.
Cervantes-Echevarria pleaded guilty in May 2019. According to court records, federal agents began investigating Cervantes-Echevarria and co-defendant Miguel Cervantes in 2017 for suspected methamphetamine trafficking in Shasta and Tehama Counties. In August and September 2018, an undercover agent purchased over 3 pounds of methamphetamine from Cervantes during three controlled buys. In addition, when law enforcement executed a search warrant at Cervantes-Echevarria’s and co-defendant Marta Jiminez Lopez’s home in September 2018, they seized approximately 34 pounds of methamphetamine, 3 pounds of heroin, three firearms, and over $44,000 in cash.
Cervantes and Lopez, both Mexican nationals living in Los Molinos, previously pleaded guilty to conspiracy to distribute methamphetamine. Cervantes was sentenced to nine years in prison in February 2020. Lopez is scheduled to be sentenced in May 2022.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Land Management, the Tehama Interagency Drug Enforcement (TIDE) task force, and the Siskiyou Unified Major Investigations Team (SUMIT), with special assistance from the Federal Bureau of Investigation and the California Highway Patrol. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.