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9 March 2022
South Charleston Man Sentenced to Five Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man was sentenced today to five years in prison for a federal drug crime.
According to statements previously made in court, Marquise Culbreath-Claytor, 26, possessed 134 grams of methamphetamine when a vehicle in which he was a passenger was stopped by a West Virginia State Police Trooper in Boone County on April 1, 2021. Culbreath-Claytor previously pleaded guilty to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine and admitted that he intended to sell the drug.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant U.S. Attorney Nowles Heinrich prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00190.
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Sodinokibi/REvil Ransomware Defendant Extradited to United States and Arraigned in TexasRead the Press Release
A man charged with conducting ransomware attacks against multiple victims, including the July 2021 attack against Kaseya, made his initial appearance and was arraigned today in the Northern District of Texas.
According to an August 2021 indictment, Yaroslav Vasinskyi, 22, accessed the internal computer networks of several victim companies and deployed Sodinokibi/REvil ransomware to encrypt the data on the computers of victim companies.
“When last year I announced charges against members of the Sodinokibi/REvil ransomware group, I made clear that the Justice Department will spare no resource in identifying and bringing to justice transnational cybercriminals who target the American people,” said Attorney General Merrick B. Garland. “That is exactly what we have done. The United States, alongside our international partners, will continue to swiftly identify, locate, and apprehend alleged cybercriminals, capture their illicit profits, and bring them to justice.”
“Just eight months after committing his alleged ransomware attack on Kaseya from overseas, this defendant has arrived in a Dallas courtroom to face justice,” said Deputy Attorney General Lisa O. Monaco. “When we are attacked, we will work with our partners here and abroad to go after cybercriminals, wherever they may be.”
According to the indictment, Vasinskyi was allegedly responsible for the July 2, 2021, ransomware attack against Kaseya. In the alleged attack against Kaseya, Vasinskyi caused the deployment of malicious Sodinokibi/REvil code throughout a Kaseya product that caused the Kaseya production functionality to deploy REvil ransomware to “endpoints” on Kaseya customer networks. After the remote access to Kaseya endpoints was established, the ransomware was executed on those computers, which resulted in the encryption of data on computers of organizations around the world that used Kaseya software.
Through the deployment of Sodinokibi/REvil ransomware, the defendant allegedly left electronic notes in the form of a text file on the victims’ computers. The notes included a web address leading to an open-source privacy network known as Tor, as well as the link to a publicly accessible website address the victims could visit to recover their files. Upon visiting either website, victims were given a ransom demand and provided a virtual currency address to use to pay the ransom. If a victim paid the ransom, the defendant provided the decryption key and the victim then was able to access their files. If a victim did not pay the ransom, the defendant typically posted the victim’s stolen data or claimed they sold the stolen data to third parties, and victims remained unable to access their files.
Vasinskyi is charged with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. If convicted of all counts, he faces a total penalty of 115 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Vasinskyi, a Ukrainian national with ties to a ransomware group linked to Russia-based actors, was taken into custody in Poland where he remained held by authorities pending proceedings in connection with his requested extradition to the United States, pursuant to the extradition treaty between the United States and the Republic of Poland. Vasinskyi was transported to Dallas by U.S. law enforcement authorities where he arrived on March 3. He made his initial court appearance and was arraigned today in the Northern District of Texas.
The FBI’s Dallas and Jackson Field Offices are leading the investigation. Substantial assistance was provided by the Justice Department’s Office of International Affairs and the National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas and Senior Counsel Byron M. Jones of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Texas, the FBI’s Dallas and Jackson Field Offices and the Criminal Division’s Computer Crime and Intellectual Property Section conducted the operation in close cooperation with Europol and Eurojust, which were an integral part of coordination. Investigators and prosecutors from several jurisdictions, including Romania's National Police and the Directorate for Investigating Organised Crime and Terrorism; Canada’s Royal Canadian Mounted Police; France’s Court of Paris and BL2C (anti-cybercrime unit police); the Dutch National Police; Poland’s National Prosecutor’s Office, Border Guard, Internal Security Agency, and Ministry of Justice; and the governments of Norway and Australia provided valuable assistance.
The U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN), the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA); Germany’s Public Prosecutor’s Office Stuttgart and State Office of Criminal Investigation of Baden-Wuerttemberg; Switzerland’s Public Prosecutor’s Office II of the Canton of Zürich and Cantonal Police Zürich; the National Police of Ukraine and the Prosecutor General’s Office of Ukraine; the United Kingdom’s National Crime Agency; the U.S. Secret Service; the Texas Department of Information Resources; BitDefender; McAfee; and Microsoft also provided significant assistance.
For more resources on ransomware prevention and response, visit www.StopRansomware.gov.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Siblings sentenced for selling drugs near elementary schoolRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi residents have been ordered to prison for their involvement in a drug conspiracy, announced U.S. Attorney Jennifer B. Lowery.
Jesus Sustaita III, 26, pleaded guilty Nov. 23, 2021, while his sister - Anna Sustaita, 24, entered her plea Oct. 20, 2021.
Today, U.S. District Judge David S. Morales sentenced each to serve 135 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony about multiple shootings in which the siblings had previously been involved. The court also heard about other investigations in which they were believed to be selling narcotics over the past several years.
The investigation began back in July 2021 when authorities learned that Alec Garcia, a known felon, was in possession of firearms based on multiple social media posts. Further investigation revealed he and the Sustaitas were selling narcotics out of their residence.
Authorities executed a search warrant at a residence in Corpus Christi in August 2021. The home was located across the street from a local elementary school. At that time, law enforcement found over 50 grams of meth; nearly two kilograms of pills that had the appearance of candy and contained fentanyl, alprazolam and meth; LSD; approximately two kilograms of marijuana as well as numerous THC products, nine firearms, hundreds of rounds of ammunition, body armor and U.S. currency. All of the firearms were unsecured, eight of which were loaded.
At the time of the search, an 8-year-old was living in the home.
Garcia, 30, Corpus Christi, pleaded guilty to his involvement in the conspiracy last month and is set to be sentenced later this year.
Jesus and Anna Sustaita will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Serial Robbers Plead Guilty to Federal Charges Related to a Series of at Least Nine Armed Commercial Robberies in the Baltimore AreaRead the Press Release
Baltimore, Maryland – Co-defendants Marquis Moore, age 35, and Milek Rankin, age 29, both of Baltimore, each pleaded guilty to committing a series of armed commercial robberies and to brandishing a firearm during and in relation to a crime of violence. Moore entered his guilty plea on March 7, 2022 and Rankin pleaded guilty today.
The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Chief Amal E. Awad of the Anne Arundel County Police Department.
According to the statements of fact filed as part of Moore’s and Rankin’s guilty pleas, from at least November 2018 through March 1, 2019, Moore and Rankin, along with co-defendant Dontrell Glover, conspired to commit robberies of commercial businesses, including fast-food restaurants, video game stores, cell phone stores, and discount stores in Baltimore City, Baltimore County, and Anne Arundel County. During each robbery, Moore brandished a firearm, to use fear to obtain money and/or other items from the businesses.
For example, on January 4, 2019, Moore and Rankin robbed a cell phone store in Essex, Maryland. Moore carried a loaded handgun. When the store employee resisted giving the robbers money from the business, Moore took the magazine out of the handgun, showed it to the employee, and said, “You can see it’s loaded. We’re not playing games. Give us the d**n money.” The handgun was loaded with hollow point bullets. During the robbery, Moore struck the employee with the handgun. Moore and Rankin fled using a get-away vehicle driven by Glover. The robbers stole $739 from the store.
Moore and Rankin admitted that they committed at least eight additional robberies, with Moore brandishing a gun during each robbery, often pointing the gun at employees. Moore and Rankin fled each robbery using the same get-away vehicle driven by Glover. The conspirators stole a total of at least $15,500 in cash, as well as merchandise, including game systems and food.
Moore, Rankin, and the government have agreed that, if the Court accepts the plea agreements, Moore and Rankin will each be sentenced to 12 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled Moore’s sentencing for June 7, 2022 and Rankin’s sentencing for June 23, 2022, each at 11:00 a.m. Dontrell Glover, age 30, of Baltimore, previously pleaded guilty to his role in the robberies and is scheduled to be sentenced on June 28, 2022.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI, the Baltimore Police Department, the Baltimore County Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Lindsey N. McCulley and John W. Sippel, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Serial Fraudster Extradited to the United States from Mexico to Face Investment Fraud Scheme Charges in North Carolina and TexasRead the Press Release
A California man made his initial appearance in federal court in Charlotte, North Carolina, today after being extradited from Mexico to face charges related to his involvement in two high-yield investment fraud schemes.
According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, 64, of Malibu, is charged in an indictment returned in the Western District of North Carolina for a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. Broyles allegedly conspired with Niyato’s CEO, Robert Leslie Stencil, 65, of Charlotte, North Carolina, and others to fraudulently sell stock in Niyato. Together, Broyles, Stencil and others falsely portrayed Niyato as a leader in its field, manufacturing electric vehicles and converting gasoline vehicles to run on compressed natural gas. Broyles, Stencil and their co-conspirators allegedly told victims that Niyato was run by a team of high-profile executives, and that Niyato had patented technology, state-of-the-art facilities and valuable contracts. Further, they allegedly told victims that Niyato would use 97% of the money it raised selling stock to grow its business, expand its operations and prepare for an imminent initial public offering (IPO). In reality, as alleged in the indictment, Niyato had no patents, facilities, products or plans to commence an IPO, and Niyato’s true business was the sale of worthless stock. Broyles, Stencil and their co-conspirators allegedly used nearly all of the money raised by selling Niyato stock for their own personal benefit, with Stencil paying salespeople – like Broyles – half or nearly half of the money they solicited from each investor on behalf of Niyato.
Broyles is charged with one count of conspiracy to commit mail fraud and wire fraud, 14 counts of mail fraud, 14 counts of wire fraud, and five counts of money laundering. The defendant made his initial court appearance today before U.S. Magistrate Judge David S. Cayer of the U.S. District Court for the Western District of North Carolina. If convicted, Broyles faces up to 30 years in prison on the conspiracy charge, up to 20 years in prison on each count of mail fraud, up to 20 years in prison on each count of wire fraud, and up to 10 years in prison on each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Stencil was convicted following a jury trial and sentenced to 135 months in prison.
Broyles is also charged in an indictment returned in the Northern District of Texas for his role in a second high-yield investment fraud scheme involving a company named EarthWater. According to the indictment, Broyles allegedly conspired with EarthWater’s CEO, Cengiz Jan Comu, 61, of Dallas, Texas, and others to sell EarthWater stock by making numerous false and misleading representations, including that victim investors only had a brief opportunity to purchase EarthWater stock in an unregistered offering before EarthWater’s stock price increased by 10- to 50-fold following an IPO or acquisition by a large well-known company. In reality, as alleged in the indictment, EarthWater never initiated an IPO nor a merger or acquisition. Moreover, Broyles, Comu and others falsely represented to victim investors that EarthWater would use 90% of invested funds to grow its business and expand operations, and that any fees paid to broker-dealers with respect to the sale of EarthWater stock would not exceed 10% of the purchase price of the shares. In reality, as alleged in the indictment, Comu agreed to split victim investors’ funds 50-50 with Broyles and others who sold EarthWater stock. As a result, nearly half of all of the money victims invested in EarthWater went directly into the pockets of the individuals who sold them the stock.
Under the Northern District of Texas indictment, Broyles is charged with one count of conspiracy to commit mail fraud and wire fraud. If convicted, Broyles faces up to 30 years in prison. Comu pleaded guilty in 2020 and is awaiting sentencing.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; U.S. Attorney Chad E. Meacham for the Northern District of Texas; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s Atlanta Division; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
The Government of Mexico, including the Fiscalía General de la República (FGR), provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.
The U.S. Postal Inspection Service is investigating this case. The U.S. Marshals Service transported Broyles from Mexico to the United States.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting both cases. Assistant U.S. Attorney Mary Walters of the U.S. Attorney’s Office for the Northern District of Texas is also prosecuting the case involving EarthWater.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Scranton Tax Preparer Pleads Guilty to Defrauding Taxpayers of More Than $250,000Read the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 7, 2022, Donald Royce, age 45, of Orlando, Florida, pleaded guilty before U.S. District Court Judge Robert D. Mariani, to a mail fraud charge and a tax fraud offense.
According to United States Attorney John C. Gurganus, Royce, a tax preparer working in Scranton, defrauded a number of local taxpayers in 2014. After providing the victim taxpayers with a “client copy” of their tax return that showed the correct refund amount, Royce submitted fraudulent tax returns to the IRS that inflated the refund due. After the IRS sent the refund to Royce, the defendant kept the difference between the legitimate refund amount and the higher fraudulent amount for his own personal use. In one case, Royce instructed the victim clients to provide him with their tax payment and instead forwarding the payment to the IRS, Royce kept the payment for himself. Due to Royce’s actions, his victims suffered more than $250,000 in losses.
The case was investigated by the Internal Revenue Service, Criminal Investigations. Assistant United States Attorney Jenny P. Roberts is prosecuting the case.
The maximum penalty under federal law for this offense is 23 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $500,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Sapulpa Man Sentenced to 30 Years in Prison for Sexually Abusing Two ChildrenRead the Press Release
A Sapulpa man, who was arrested after a young child ran away from him and reported his sex abuse crimes to a federal agent in a restaurant parking lot, was sentenced Wednesday for sexually abusing two young victims, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Andrew Lee Gibbs, 64, to 30 years in federal prison followed by five years of supervised release.
“A young victim ran from her abuser Andrew Gibbs unknowingly into the hands of a Homeland Security Investigations agent with 10 years of experience working crimes against children,” said U.S. Attorney Clint Johnson. “Every day, I am reminded of the strength exhibited by victims of crime and of the dedication exhibited by agents and officers sworn to protect communities across Oklahoma. Both are critical to the successful prosecution of dangerous criminals.”
In October 2021, a federal jury found Gibbs guilty of abusive sexual contact of a minor in Indian Country and aggravated sexual abuse of a minor in Indian Country.
The jury found that on March 7, 2021, Gibbs knowingly touched the first victim in a sexual manner. They further found that on the same day, the defendant sexually abused a second child, who was also under the age of 12. After the sexual assaults, one of the children broke away from Gibbs, and eventually ran up to a man in a restaurant parking lot, told him that the defendant did an “unsafe touch,” and begged the man for help. The man, who happened to be a Homeland Security Investigations special agent, then called 911. Gibbs soon arrived, but the child accused him of abuse. He left then returned a few minutes later with the child’s mother. When she heard of the abuse, she removed her remaining children from his vehicle.
A Child Abuse Forensic Interviewer later spoke with both victims who stated that Gibbs, an adult they had trusted, sexually abused them in his vehicle during an outing to a park. Following the visit to the park, Gibbs took the children to a nearby store where one ran away and sought help.
"These young victims should have been enjoying time with friends and going to school, not worrying about being abused for Mr. Gibbs' own sexual gratification" said Edward Gray, Special Agent in Charge of the FBI Oklahoma City Division. "The potential damage done to the children by his depravity will likely outlast his punishment. Help us protect our community's children by reporting other violent predators to your local law enforcement agency or the FBI."
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Valeria Luster and Chantelle D. Dial prosecuted the case.
Rogersville Man Sentenced to 30 Years for Child Sexual Exploitation, Illegal Firearms, Nearly $1 Million Investment Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A Rogersville, Missouri, man was sentenced in federal court today for three separate cases in which he was convicted of child sexual exploitation, a nearly $1 million investment fraud scheme, and illegally possessing 19 firearms.
Roy G. Harris, Jr., 57, was sentenced by U.S. Chief District Judge Beth Phillips to 30 years in federal prison without parole. Harris was sentenced to 20 years on the child exploitation offenses, five years on the wire fraud offense, and five years on the firearms offenses, for a total of 30 years.
The court also ordered Harris to pay $809,260 in restitution to the victims of his wire fraud scheme and $5,000 to the victim of his child sexual exploitation and child pornography crimes.
On Feb. 27, 2019, Harris pleaded guilty to a one-count information charging him with wire fraud. He was indicted in a second case on Aug. 23, 2019, and on a third case on March 23, 2021. On Aug. 3, 2021, Harris pleaded guilty to all three counts of the second case – one count of being a felon in possession of a firearm, one count of possessing an illegal firearm, and one count of unlawfully possessing an unregistered firearm. On Aug. 19, 2021, Harris pleaded guilty to both counts of the third case – one count of the sexual exploitation of a minor and one count of receiving and distributing child pornography.
Regarding his wire fraud conviction, Harris admitted that he engaged in an investment fraud scheme from June 2014 to May 2017. The total loss to victims of his fraud was at least $921,250. Harris has paid back some of the money to various investors.
Harris was the owner of two limited liability companies, Orthogistic, LLC, and Amniogistic, LLC. He was also the owner of a corporation, Orthogistic Labs, Inc. He solicited investments from individuals, including a victim identified in court documents as “P.K.,” a resident of New Jersey who invested $60,000 in Orthogistic Labs, Inc. Harris made representations to these individuals that he knew were false, and used some of the money obtained from his victims for other purposes and for his personal benefit. Harris failed to tell investors that he had been convicted in 2002 of the felony crimes of fraud in the sale of a security, deceptive business practice, and stealing. In some cases, he told potential investors, including P.K., that he did not have any prior criminal charges or convictions for theft or related offenses.
After pleading guilty to wire fraud, Harris was in possession of 19 firearms, including 12 rifles and seven pistols, which were at his residence. One of the rifles, which was not registered, had a short barrel length and did not have a stock designed to be fired from the shoulder. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
While investigating the firearms offenses, law enforcement officers searched two iPhones that belonged to Harris. The phones contained images and videos of child pornography. Among them was an image of a victim under the age of 15 whom Harris met online and solicited to engage in sexual activity.
While awaiting trial on his firearms and sexual exploitation charges, Harris solicited at least one individual to murder several witnesses related to the firearms charges. Harris made video calls from the Greene County Jail to another person, whom he asked for assistance with murdering several people so that he would not have to serve a lengthy prison sentence. Harris offered to pay him with property, including a motorcycle.
These cases were prosecuted by Assistant U.S. Attorney Casey Clark. They were investigated by the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Southwest Missouri Cyber Crimes Task Force, and the Missouri Securities Division.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rochester Drug Dealer Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Dkeidron Dublin, 40, of Rochester, NY, who was convicted of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 72 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Matthew McGrath, who handled the case, stated that Dublin was arrested on May 19, 2021, as part of a long-term investigation into a Rochester drug trafficking organization led by co-defendant Jason Siplin. On that date, investigators intercepted a phone call between Dublin, and another co-defendant Timothy Granison, during which they discussed, in coded language, Granison resupplying Dublin with drugs. Later that day, Granison’s vehicle arrived at Dublin’s Birch Crescent residence. Dublin got into Granison’s vehicle at which time both were taken into custody. During a search of the vehicle and Dublin’s residence, investigators recovered 31 grams of cocaine, $1,241.00 in United States currency, drug packaging materials, and a semiautomatic pistol, which was found in Dublin’s residence.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, the Rochester Police Department, under the direction of Interim Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team, and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
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Property Manager Pleads Guilty for His Role in the Failure to Properly Notify Tenants About Lead HazardsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Paul Richard Heil, 52, of Buffalo, NY, pleaded guilty to a misdemeanor charge of aiding and abetting the failure to provide lead paint hazard warning notice before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Heil was a property manager acting on behalf of Williamsville Property Holdings LLC, a.k.a. Williamsville Properties. Between December 2015, and May 2018, Heil and the company were aware of lead-based paint and lead-based paint hazards at a Wick Street residence in Buffalo, a two-family house that was built in 1905. In April 2018, and again in June 2020, Heil and Williamsville Properties rented the residence to lessees. Heil provided a lead disclosure statement to those tenants, which falsely affirmed that the landlord “has no knowledge of lead-based paint and/or lead-based paint hazards in the housing,” and “has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.”
The plea is the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-in-Charge Tyler Amon and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-In-Charge Christina D. Scaringi. Additional assistance was provided by the New York State Attorney General’s Office.
Sentencing is scheduled for June 8, 2022, before Magistrate Judge McCarthy.
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Presque Isle Woman Sentenced for Passing Counterfeit MoneyRead the Press Release
BANGOR, Maine: A Presque Isle woman was sentenced today in federal court for passing counterfeit money, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Jessica Jones, 31, to two months in prison and two years of supervised release. Jones pleaded guilty on August 25, 2021.
According to court records, on July 23, 2018, Jones used counterfeit $20 bills at a Domino’s Pizza and a McDonald’s in Presque Isle. Jones later stated that she had received the counterfeit money from an individual who was trading counterfeit bills for drugs.
The Presque Isle Police Department and the U.S. Secret Service investigated the case.
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Presque Isle Woman Sentenced for Passing Counterfeit MoneyRead the Press Release
BANGOR, Maine: A Presque Isle woman was sentenced today in federal court for passing counterfeit money, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Jessica Jones, 31, to two months in prison and two years of supervised release. Jones pleaded guilty on August 25, 2021.
According to court records, on July 23, 2018, Jones used counterfeit $20 bills at a Domino’s Pizza and a McDonald’s in Presque Isle. Jones later stated that she had received the counterfeit money from an individual who was trading counterfeit bills for drugs.
The Presque Isle Police Department and the U.S. Secret Service investigated the case.
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Postal Employee on Disability Pleads Guilty for False StatementsRead the Press Release
EAST ST. LOUIS, Ill. – Randy Goodwin, 56, of Belleville, Illinois, pled guilty today to a two- count information charging him with making false statements to obtain federal disability compensation under the Federal Employees’ Compensation Act.
According to court documents, Goodwin began receiving federal disability payments after he was injured working for the United States Postal Service in 2013. After his injury, Goodwin began working at his family’s restaurant, Good Heavens BBQ, in East St. Louis, Illinois.
Annual disability forms require recipients to disclose additional earned income and employment. However, to avoid a reduction of his benefits, Goodwin falsely reported that he had not worked for any employers or had any involvement in any businesses for several years. This caused the United States Postal Service to pay him more in disability than he truly deserved.As a result of his plea, Goodwin will lose all disability benefits going forward. He also paid over
$20,000 in restitution on the day of his plea hearing.Special Agent-in-Charge Andre Martin, Central Area Field Office, U.S. Postal Service Office of
Inspector General said, “The U.S. Postal Service paid $1.3 billion in workers’ compensation costs in fiscal year 2021. The majority of postal employees who collect compensation benefits have legitimate claims due to on-the-job injuries and are truly unable to perform any postal jobs. However, a small percent abuse the system and cost the Postal Service millions of dollars in fraudulent claims and enforcement costs. This guilty plea sends a clear message that workers’ compensation fraud is a federal crime, which carries serious consequences.
The USPS OIG and the U.S. Attorney’s Office remain committed to safeguarding the integrity of the workers’ compensation program and ensuring the accountability and integrity of
U.S. Postal Service employees.”Sentencing will be held at the federal courthouse in East St. Louis, Illinois, on June 13, 2022. In addition to losing his disability benefits and paying restitution, Goodwin could also receive up to a year in prison and a fine of up to $100,000.
The investigation of this case was conducted by the United States Postal Service –
Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Luke J. Weissler.Port Saint Lucie Man Charged with Forging a U.S. Coast Guard LicenseRead the Press Release
Miami, Florida – A 69-year-old Florida man made his first appearance in federal court in Fort Pierce today to face charges that he forged a United States Coast Guard Merchant Mariner’s License and provided it to a yacht insurance company.
A criminal complaint charges Ralph Casler with one count of misuse of a federal certificate, license, or document, in violation of Title 18, United States Code, Section 2197. Casler, who has never held a Coast Guard merchant mariner license or credential, faces up to five years in federal prison and a $250,000 fine.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Special Agent in Charge Zinnia James, United States Coast Guard Investigative Service (USCGIS), Southeast Region made the announcement.
USCGIS Southeast Region investigated the case, with assistance from United States Coast Guard Sector, Miami Investigations. Assistant United States Attorney Diana Acosta is prosecuting the matter.
A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 22-mj-00016-SMM.
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Poplar Bluff man sentenced to 228 months in federal prison for carjackingRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that CARLOS WALLACE, age 33, of Poplar Bluff, Missouri, was sentenced to 228 months in federal prison for the offenses of carjacking, possession of a firearm by a convicted felon, and discharging a firearm in furtherance of a crime of violence. Wallace appeared for his plea and sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, on December 11, 2019, Carlos Wallace committed a carjacking in Poplar Bluff, Missouri. The victim was stopped at an intersection when Wallace opened the rear door of the vehicle and climbed into the back seat. Wallace ordered the victim to drive and directed him down several city streets and onto a gravel road where Wallace told the victim to exit the vehicle. The victim initially refused to do so. Wallace then pointed a firearm at the victim and shot him in the leg. After the victim exited the vehicle, Wallace entered the driver seat and drove off in the vehicle.
On December 23, 2019, an officer with the Poplar Bluff Police Department attempted a traffic stop of a vehicle being operated by Carlos Wallace. Wallace refused to stop and accelerated at a high rate of speed. A police pursuit ensued, until ultimately the vehicle became stuck in an alleyway. Wallace was ordered from the car and was taken into custody. As Wallace was being arrested, he volunteered to law enforcement officers that there were two firearms in the vehicle. A search warrant was obtained and Wallace’s vehicle was searched. Two fully loaded firearms were located.
Wallace has a prior conviction for felony domestic assault and is therefore prohibited from possessing firearms.
This case was investigated by the Poplar Bluff Police Department, Butler County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Julie Hunter handled the prosecution for the government.
Palm Beach County Armed Career Criminal and Fentanyl Peddler Sentenced to 15 Years in Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in West Palm Beach, Florida has sentenced 33-year-old Eric Leon Nelms to 180 months in federal prison for possessing a firearm and distributing fentanyl as an armed career criminal.
Nelms was prosecuted under the Federal Armed Career Criminal Act (ACCA), which provides for an enhanced sentence for persons with at least three prior felony convictions for violent felonies or serious drug trafficking crimes.
On February 21, 2020, Nelms sold a stolen firearm, identified as a Smith & Wesson, Model Bodyguard, .380 Caliber pistol, and a second firearm, a Kel-Tec, Model P3AT, .380 Caliber pistol. On May 26, 2020, Nelms sold a third firearm, a Taurus, Model G2C 9 mm pistol. He also trafficked twenty-five (25) capsules of fentanyl. Prior to his commission of the offenses, Nelms had two prior separate felony convictions for robbery, and one prior felony conviction for possession of cocaine with intent to sell. Nelms was therefore subject to the enhanced sentencing provisions of the ACCA.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Christopher Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Chief Frank Adderley, West Palm Beach Police Department, announced the sentence imposed by U.S. District Judge Donald M. Middlebrooks. Assistant U.S. Attorney Shannon O’Shea Darsch prosecuted the case. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80118.
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Organized Crime Drug Enforcement Task Force Operation Results in Sentences Totaling 100+ Years in Federal PrisonRead the Press Release
MONROE, La. - United States Attorney Brandon B. Brown announced that an Organized Crime Drug Enforcement Task Force (OCDETF) Operation dubbed “Operation Kutt Off” has resulted in the conviction of nine individuals, either by a plea of guilty or conviction at trial, for their involvement in drug trafficking in the Western District of Louisiana. Eight of the defendants have been sentenced by United States District Judge Terry A. Doughty. Those defendants and their sentences are as follows:
DeLewis Johnson, IV, 46, of West Covina, California, was convicted at trial of conspiracy to distribute and possession with intent to distribute methamphetamine and distribution of methamphetamine and was sentenced to 405 months (33 years, 9 months) in prison, followed by 5 years of supervised release.
Roy Lee Jones, Jr., 46, of Grambling, Louisiana, was convicted at trial of conspiracy to distribute and possession with intent to distribute methamphetamine and was sentenced to 210 months (16 years, 6 months) in prison, followed by 5 years of supervised release.
Willie Todd Harris, Jr., 47, of Ruston, Louisiana, pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine and was sentenced to 228 months (19 years) in prison, followed by 10 years of supervised release.
Justin Randall Goss, 31, of Quitman, Louisiana, pleaded guilty to distribution of methamphetamine and was sentenced to 216 months (18 years) in prison, followed by 5 years of supervised release.
Curavious Omarion Deshun Harrell, 30, of Jonesboro, Louisiana, pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine and was sentenced to 104 months (8 years, 8 months) in prison, followed by 5 years of supervised release.
Rodney Ceasar, 53, of Jonesboro, Louisiana, pleaded guilty to maintaining a drug premises and was sentenced to 60 months (5 years) in prison, followed by 3 years of supervised release.
Adriene Denise Ceasar, 57, of Jonesboro, Louisiana, pleaded guilty to maintaining a drug premises and was sentenced to 46 months in prison, followed by 1 year of supervised release.
Meshach Demontez Conley, 31, of Jonesboro, Louisiana, pleaded guilty to distribution of methamphetamine and was sentenced to 38 months in prison, followed by 5 years of supervised release.
These defendants conspired together to distribute and possess with intent to distribute methamphetamine in Winn Parish and Jackson Parish, Louisiana. In April 2019, agents with the Federal Bureau of Investigation (FBI) began investigating the illegal drug trafficking activities in this area and were able to obtain approval to wiretap the phones of Harris and Jones. Through their investigation, agents learned that Johnson, who lived in California, would obtain bulk quantities of methamphetamine from Mexican suppliers and would then send those drugs to Jones and Harris. Harris would then distribute the methamphetamine to other individuals to sell and distribute, including Goss and Harrell. Law enforcement officers conducted undercover purchases of methamphetamine from Johnson, Harris, Goss, and Harrell. The purchased narcotics were sent to the crime lab and analyzed and determined to in fact be methamphetamine. Agents were also able to intercept phone calls between Johnson, Jones and other co-conspirators wherein they communicated about the selling and purchasing of methamphetamine.
Rodney Ceasar and his wife, Adriene, stored distribution quantities of the methamphetamine for Harris at their home in Jonesboro. Agents were able to intercept phone calls wherein Harris and both Ceasars discussed distributing or selling the narcotics.
In addition, on December 17, 2019, agents intercepted phone calls wherein Johnson discussed shipping a package containing one pound of methamphetamine via overnight mail. Johnson instructed the individual to wire money to him in exchange for the drugs but in another person’s name. Undercover agents sent the money via Western Union as instructed. After receiving payment, Johnson sent a text message containing the shipping information. On December 19, 2019, agents with the U.S. Postal Inspection Service located the package at a facility in Shreveport and executed a search warrant on the package. Inside was approximately one pound of methamphetamine.
Chadreck Carter, 34, of Jonesboro, Louisiana, pleaded guilty to distribution of methamphetamine and will be sentenced by United States District Judge Dee D. Drell at a later date.
This case was investigated by the FBI, ATF, U.S. Postal Inspection Service, Louisiana State Police, Jackson Parish Sheriff's Office, Winn Parish Sheriff’s Office, Rapides Parish Sheriff’s Office, Alexandria Police Department, and LPNet. Assistant U.S. Attorneys Cytheria D. Jernigan and Jessica D. Cassidy prosecuted the case.
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.
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One Individual Charged as Law Enforcement Targets Fentanyl Shipped from Las Vegas to UtahRead the Press Release
SALT LAKE CITY – Colin Andrew Shapard, 21, of Las Vegas, Nevada, has been charged in federal court by the United States Attorney’s Office in Utah with six counts related to the distribution of fentanyl in Utah. The complaint charges Shapard with one count of distribution of fentanyl resulting in serious bodily injury and five counts of distribution of fentanyl.
United States Attorney Andrea T. Martinez, Utah Attorney General Sean D. Reyes, DEA Assistant Special Agent in Charge Jay Tinkler, United States Postal Inspection Service Team Leader Jared Bingham, Park City Police Chief Wade Carpenter, and Summit County Sheriff Justin Martinez announced the charges today.
The complaint filed against Shapard alleges that, in November of 2021, DEA task force officers employed by the Park City Police Department and the Summit County Sheriff’s Office learned that illegal narcotic shipments containing opioids were being shipped from Las Vegas to Park City. The DEA officers learned that the alleged source of supply for the narcotics was Colin Shapard, and that he utilized delivery services, including the U.S. Mail, to ship opioids from Las Vegas to Utah. Officers also learned that each blue pill, stamped as fake 30 mg. oxycodone “M30,” costs between $30.00 and $45.00 per pill, and that Shapard had promised kickbacks to an individual in Park City for distributing the narcotics on his behalf.
By November of 2021, it is alleged that Shapard had shipped between 10 and 30 of the blue M30 pills every two weeks over the previous two to three months to an individual in Park City. The DEA officers learned that Shapard was allegedly using encrypted cellular applications to arrange the shipment of the fake oxycodone pills to Park City.
On December 8, 2021, U.S. Postal Inspectors took possession of a parcel which was shipped from Las Vegas to Park City. Postal Inspectors were able to obtain photographs of an individual who had allegedly shipped the parcel from the University Post Office in Las Vegas. Using these photographs, officers identified Shapard as the person who had allegedly sent the parcel. A search warrant was executed on this parcel and 35 blue M30 fake oxycodone pills were discovered with "M" imprinted on one side and "30" on the other side. The pills tested positive for fentanyl.
On December 20, 2021, Postal Inspectors took possession of a priority mail package shipped from Las Vegas to Tooele. The envelope allegedly listed the sender as Colin Shapard and the recipient was an associate of Shapard’s. Using information obtained from the package, Postal Inspectors learned that the package was sent on December 17, 2021, from the University Post Office in Las Vegas. Postal Inspectors were able to obtain photographs which allegedly showed Shapard shipping the parcel from Las Vegas. A search warrant was executed on this parcel, and DEA officers discovered a single blister pack labeled as Tapentadol 100 MG which contained ten orange pills, and a pill bottle containing a variety of pills. The pill bottle contained 25 blue pills with "M" imprinted on one side and "30" imprinted on the other side. The blue pills tested positive for fentanyl. The bottle also held 100 unknown green pills with markings similar to Xanax pills and two unknown orange and white pills which were booked into evidence.
In December of 2021, a DEA undercover agent contacted Shapard and attempted to purchase blue oxycodone 30mg tablets from him. Shapard allegedly indicated that he charged a premium for these pills but that they were legitimate pharmaceutical pills from Canada and did not contain fentanyl. Shapard also allegedly warned the undercover agent to be “careful” because “30 mg of oxycodone is still the very strong/the strongest they make….”
On January 31, 2022, post office cameras in Las Vegas allegedly showed Shapard mailing the DEA undercover agent a parcel containing the requested pills. On February 4, 2022, a package addressed to the DEA undercover agent was intercepted by a Postal Inspector in Utah. Inside the package, DEA officers discovered 15 blue M30 pills with "M" imprinted on one side and "30" imprinted on the other side. The pills tested positive for fentanyl. An additional nine yellow pills were discovered in the package which were booked into evidence.
On February 10, 2022, Park City paramedics and Summit County Sheriff’s Deputies responded to a call regarding an 18-year-old male who was found unresponsive. Emergency workers resuscitated the victim using CPR and Narcan and the victim was transported to the hospital. The following day, DEA officers discovered that the victim had overdosed on blue M30 pills which were allegedly purchased from Shapard. The victim’s urinalysis report showed the presence of fentanyl and a fentanyl metabolite. The victim’s phone was searched, and it contained text messages allegedly facilitating illegal narcotics transactions between the victim and Shapard. Using shipping information Shapard had allegedly sent to the victim via text message, Postal Inspectors were able to obtain photos of Shapard allegedly shipping the parcel from the University Post Office on February 1, 2022.
The DEA undercover agent placed another order for blue 30 mg oxycodone pills from Shapard after this incident. On February 14, 2022, Shapard allegedly shipped the pills ordered by the undercover agent. Photos from the University Post Office in Las Vegas allegedly show Shapard shipping the parcel to Utah. This parcel was intercepted by postal inspectors in Utah, on February 22, 2022. DEA officers discovered 15 blue M30 pills inside of the package along with fifteen white gel capsules. The blue M30 pills tested positive for fentanyl. Shapard allegedly sent a message to the undercover agent to confirm if the undercover agent had received the package. The undercover agent’s response to the message was delayed by a weekend. After this delay, and after hearing the undercover agent received the package, Shapard allegedly wrote, “Sorry about being so worried…Just wanted to check in and make sure you weren’t dead, as [it’s] never a good sign when someone goes MIA after getting a [expletive] ton of opiates.”
In February of 2022, Shapard allegedly shipped another package containing fake blue M30 oxycodone pills to an associate in Tooele which was intercepted by postal inspectors. On February 18, 2022, a search warrant was executed on the package and 20 blue M30 pills were discovered inside which tested positive for fentanyl. Postal Inspectors again obtained photographs of Shapard allegedly shipping the parcel from the University Post Office in Las Vegas.
Assistant United States Attorneys, and Special Assistant United States Attorneys from the Utah Attorney General’s Office, are prosecuting the case against Shapard. Special Agents and Task Force Officers from the DEA, the Summit County Sheriff’s Office, the Park City Police Department, and the United States Postal Inspection Service conducted the investigation.Allegations in charging documents are not findings of guilt. Defendants charged in complaints or indictments are presumed innocent unless or until proven guilty in court.
Oklahoma Resident Pleads Guilty to Murder in Indian CountryRead the Press Release
WASHINGTON – An enrolled member of the Seminole Nation of Oklahoma pleaded guilty today to second degree murder in Indian Country in connection with a homicide that took place in 2015 in Oklahoma.
According to court documents, in May 2015, John Douglas Knight, 41, and Matthew Armstrong, 32. both of Seminole, Oklahoma, received orders from the Indian Brotherhood, a prison-based gang active in Oklahoma, to go to victim Scotty Candler’s residence and question him. Knight and Armstrong, both carrying firearms, went to Candler’s residence in Seminole County. Knight and Armstrong planned to question, point their firearms at Candler, and beat him up. Instead, Knight and Armstrong shot Candler in the head, killing him. Knight and Armstrong then ran from the residence and disposed of the firearms.
Armstrong pleaded guilty on Oct. 20, 2021 and is awaiting sentencing. According to court documents in that case, Knight and Armstrong went to question the victim Candler about an unrelated homicide that took place behind a WalMart store in Seminole.
Knight pleaded guilty to murder in the second degree. He will be sentenced at a later date and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.
The FBI and the Oklahoma State Bureau of Investigation are investigating the cases.
Trial Attorneys Brian Morgan and Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case in coordination with the U.S. Attorney’s Office for the Eastern District of Oklahoma.
Oklahoma Man Pleads Guilty to Murder in Indian CountryRead the Press Release
An enrolled member of the Seminole Nation of Oklahoma pleaded guilty today to second degree murder in Indian Country in connection with a homicide that took place in 2015 in Oklahoma.
According to court documents, in May 2015, John Douglas Knight, 41, and Matthew Armstrong, 32. both of Seminole, Oklahoma, received orders from the Indian Brotherhood, a prison-based gang active in Oklahoma, to go to victim Scotty Candler’s residence and question him. Knight and Armstrong, both carrying firearms, went to Candler’s residence in Seminole County. Knight and Armstrong planned to question, point their firearms at Candler, and beat him up. Instead, Knight and Armstrong shot Candler in the head, killing him. Knight and Armstrong then ran from the residence and disposed of the firearms.
Armstrong pleaded guilty on Oct. 20, 2021 and is awaiting sentencing. According to court documents in that case, Knight and Armstrong went to question the victim Candler about an unrelated homicide that took place behind a Walmart store in Seminole. Another individual, Kadetrix Grayson, was charged with the homicide in question and is awaiting trial in the Eastern District of Oklahoma.
Knight pleaded guilty to murder in the second degree. He will be sentenced at a later date and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.
The FBI and the Oklahoma State Bureau of Investigation are investigating the cases.
Trial Attorneys Brian Morgan and Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case in coordination with the U.S. Attorney’s Office for the Eastern District of Oklahoma.
Multi-Felon Wendell Man Sentenced to 5 Years in Prison after Bringing a Firearm to Elizabeth City Police StationRead the Press Release
RALEIGH, N.C. – Herman Felton, 52, of Wendell, was sentenced today to 60 months in prison for possessing a stolen firearm. Felton pled guilty to a single-count criminal information on December 1, 2021.
According to court records and statements made during hearings, on January 14, 2019, an Elizabeth City Police Department detective interviewed Felton at the police department regarding an ongoing homicide investigation. Felton denied being involved. He admitted to having a gun but said it was not the one from the shooting and offered to bring it in to be checked. Felton, who as a felon could not lawfully possess a firearm, returned the same afternoon with a Smith & Wesson .38 caliber revolver.
Felton’s criminal record spans four decades and includes over three dozen misdemeanor and felony convictions. His 12 felony convictions include habitual assault, possession with intent to sell or deliver cocaine, and a prior federal conviction for conspiring to distribute 50 grams or more of crack cocaine.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Elizabeth City Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-cr-0006-D.
Monroe Man Sentenced to Federal Prison for Trafficking MethamphetamineRead the Press Release
MONROE, La. - Darryl Andrea Williams, 59, of Monroe, Louisiana was sentenced yesterday by United States District Judge Terry A. Doughty to 144 months (12 years) in prison, followed by 5 years of supervised release, announced United States Attorney Brandon B. Brown.
An investigation by agents with the U.S. Drug Enforcement Administration (DEA) determined that between October 2018 and March 2020, Williams conspired with others to possess with intent to distribute at least 150 grams but not less than 500 grams of methamphetamine. The organization that Williams was a part of would arrange for methamphetamine to be sent to Monroe area via couriers, sending approximately 1-1.5 kilos of methamphetamine at a time. Once in Monroe, Williams would then pick up the narcotics from the couriers and take it to one of his co-conspirators who would break it up and then give it to Williams with instructions on where to deliver it. Law enforcement agents were able to get approval for a wiretap on Williams’ phone and intercepted numerous phone calls wherein they discussed the sale and purchase of the narcotics.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorneys Brian C. Flanagan and J. Aaron Crawford.
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Mexican Man Sentenced to 24 Months’ Imprisonment for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 8, 2022, Joel Luis-Aguilar, age 56, was sentenced to 24 months’ imprisonment to be served consecutive to a recently imposed state sentence of 2-10 years for his tenth DUI, by United States District Judge Jennifer P. Wilson for illegal re-entry of a previously deported alien. Luis-Aguilar was also sentenced to one year of supervised release to be served upon release from his federal sentence.
According to United States Attorney John C. Gurganus, Luis-Aguilar pleaded guilty to having illegally reentered the United States sometime after his last removal in April 2014 after eluding examination or inspection by immigration officers. He was encountered in the United States pursuant to an arrest for DUI while also subject to an arrest warrant for a previous DUI. It is expected he will be removed to Mexico at the completion of his sentence.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson prosecuted the case.
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Meridian Man Sentenced to over 7 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man was sentenced to 92 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Lakennth J’Darrious Smith, 30, was found in possession of a firearm by officers of the Meridian Police Department on August 28, 2019, during the execution of a search warrant. Smith had a 7.62x39mm caliber pistol in his bedroom. Smith has two prior felony convictions. As a convicted felon, it is contrary to federal law for Smith to possess any firearm.
The Meridian Police Department and the FBI investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Massachusetts State Police Agrees to Settle Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts has reached an agreement with the Massachusetts State Police to resolve allegations that the agency failed to comply with its communications obligations for individuals who are deaf or hard of hearing, in violation of the Americans with Disabilities Act (ADA).
“Every Massachusetts resident should be able to communicate clearly with law enforcement, whether they are crime victims, witnesses or perpetrators, or seeking assistance for potential civil remedies,” said United States Attorney Rachael S. Rollins. “Our residents include people who are deaf or hard of hearing. This agreement now ensures that the Massachusetts State Police comply with federal law, protect civil rights, and more effectively advance public safety for everyone in our District.”
Following an investigation, the U.S. Attorney’s Office found that the Massachusetts State Police did not have an ADA-compliant policy or procedures for effective communication with individuals who are deaf or hard of hearing. The Massachusetts State Police was cooperative throughout the investigation and, under the terms of the agreement, will implement a policy on communicating with people who are deaf or hard of hearing, ensure appropriate auxiliary aids and services are available and display conspicuous notices of their availability. Additionally, all sworn members who interact with the public will participate in training on the ADA’s effective communication requirements and appropriate ways of serving people with disabilities.
U.S. Attorney Rollins made the announcement today. Assistant U.S. Attorney Torey B. Cummings of Rollins’ Civil Rights Unit handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Maryland Man Admits to Coordinating Covid-19, Unemployment, Insurance, and Aggravated Identity Theft SchemesRead the Press Release
Baltimore, Maryland – Idowu Raji, age 40, of Baltimore County, Maryland, pleaded guilty today to conspiracy to commit access device fraud, access device fraud, and aggravated identity theft in relation to multiple financial schemes.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Mark Lewis of the U.S. Department of State, Diplomatic Security Service (DSS), Washington Field Office; Acting Special Agent in Charge Troy W. Springer, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and, Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division.
“Raji participated in the theft of American personal identifying information from more than 50 unsuspecting Americans and caused at least one million dollars in COVID-19 fraud for his financial benefit” said U.S. Attorney Barron. “Our Office remains dedicated to bringing justice to anyone who fraudulently obtains disaster relief funds to line their pockets and deprive American citizens in a time of need.”
“The Diplomatic Security Service is pleased with this guilty plea. These hard-fought convictions send a clear message that criminals who commit passport and visa fraud for illegal profit will be punished,” said Acting Special Agent in Charge Mark Lewis of the DSS Washington Field Office. “DSS, alongside the U.S. Attorney’s Office and our other federal partners, is committed to rooting-out and prosecuting criminal enterprises involving U.S. travel documents.”
“Idowu Raji and co-conspirators engaged in a scheme to defraud the Pandemic Unemployment Assistance program by submitting fraudulent claims using the personal identifying information of identity theft victims to obtain over $900,000 in unemployment insurance and other COVID-19 related benefit payments,” said Troy W. Springer, Acting Special Agent in Charge, Washington Region, U.S. Department of Labor - Office of Inspector General. “ Today’s conviction demonstrates the commitment of the U.S. Department of Labor - Office of Inspector General to protecting the integrity of the unemployment insurance program. We will continue to work with the U.S. Attorney’s Office and our other law enforcement partners to safeguard unemployment benefits from those who seek to exploit the program to unjustly enrich themselves.”
According to his guilty plea, in 2020, Raji conspired with other individuals to defraud, use, and traffic in unauthorized access devices and obtain more than $900,000 in unemployment insurance and other COVID-19 related benefits. Moreover, from October 2018 to November 2020, Raji conspired with multiple individuals charged in the District of Maryland to defraud multiple businesses, individuals, and financial institutions to illegally obtain more than $750,000.
In furtherance of the access device conspiracy, Raji admitted arranging for the delivery of fraudulent unemployment insurance cards to his co-conspirators, providing instructions on the use of the cards, and obtaining a portion of the fraudulently obtained proceeds. In total, Raji admitted that he was involved in fraudulent unemployment claims that used the identities of more than 50 real people and caused more than $900,000 in losses to state and the federal governments.
Raji admitted using an encrypted text messaging application to carry out his crimes, including to coordinate the use of unemployment insurance and COVID-19 related benefits, obtain and transfer the personal identifying information of real individuals, and receive unemployment debit cards that were mailed to addresses in Maryland and loaded with fraudulently obtained benefits. Raji also directed the use of the fraudulently obtained debit cards to engage in point of sale and ATM transactions. He also used the state and federal government funds intended for disaster relief for his own benefit.
As part of his wire fraud conspiracy, Raji’s co-conspirators used fake identification documents to open bank accounts, which Raji then coordinated the use of the accounts to receive fraud proceeds. For example, in November 2019, a co-conspirator opened a bank account at a financial institution using a fake passport with the alias “Chris Hobert.” In December 2019, the email account of a supervisor at a victim business was hacked, and an email was sent to the victim business that fraudulently claimed that another business had changed its payment instructions. As a result, the victim business sent a $33,200 wire to a fraudulent account opened by one of Raji’s co-conspirators. Raji worked with his co-conspirators to move the funds to another account registered under the alias “Michael Stone,” and to eventually gain access to the fraud proceeds.
Further, in July 2020, Raji fraudulently applied for a $31,200 Paycheck Protection Program loan on behalf of a business, Yours Truly LLC. Raji claimed that his business had more than $132,000 of gross revenue in the prior year when, in fact, it did not. Moreover, Raji did not spend the proceeds of the loan on employee salaries and other appropriate expenses required by the PPP loan.
As stated in his plea agreement, when Raji was arrested by federal agents in November 2020, he made multiple false statements to agents, including that he had never been involved in business email compromise schemes, wire fraud, or unemployment insurance fraud. Raji also falsely claimed that he never used Yours Truly LLC when he had received federal loans through the entity less than six months before the interview.
As part of his plea agreement, Raji will be ordered to pay at least $1.5 million in restitution.
Raji faces a maximum sentence of five years in prison for conspiracy to commit access device fraud, a maximum of ten years in prison for access device fraud, and a mandatory minimum of two years consecutive to any other sentence imposed for the aggravated identity theft conviction. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for May 20, 2022 at 10 a.m.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
United States Attorney Erek L. Barron commended the HSI, DSS, the U.S. Department of Labor-OIG, and the U.S. Postal Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md.
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Maple Grove Man Sentenced to Five Years in Prison for $9.6 Million Scheme to Defraud the COVID-19 Paycheck Protection ProgramRead the Press Release
MINNEAPOLIS – A Maple Grove man has been sentenced to 60 months in prison followed by two years of supervised release for fraudulently applying for $9,619,046.46 from the U.S. Small Business Administration’s Paycheck Protection Program, out of which he fraudulently obtained and misappropriated more than $1.7 million. Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge David S. Doty sentenced the defendant.
According to court documents, Aditya Raj Sharma, 47, was the founder, CEO, and president of Crosscode Inc., a cloud-based software development company originally headquartered in Maple Grove, Minnesota. In November 2019, Sharma was removed as an officer and terminated from the company by Crosscode’s board of directors. Between May 2020 and July 2020, Sharma created three separate technology companies, Kloudgaze Inc., Neoforma LLC, and Mokume LLC.
From April 2020 through August 2020, Sharma applied for 16 loans from ten different lenders for a total of $9,619,046.46 through the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”) by submitting false and fraudulent applications under the names of his various technology companies. As part of his fraud scheme, Sharma submitted fabricated supporting records, made false statements about the number of employees he had and the amount of payroll expenses he incurred, and made false statements about the relevant corporate entities and intended use of the loan proceeds. Sharma also applied for one of his fraudulent loans in the name of his wife without her knowledge or approval.
In addition, on April 26, 2020, Sharma submitted an application in the name of “Crosscode dba Kloudgaze” seeking a $562,500 PPP loan. On the application Sharma falsely stated that “Crosscode dba Kloudgaze” was in operation on February 15, 2020, even though Sharma did not create Kloudgaze until May 2020. In addition, Sharma falsely stated that he was the 100% owner and CEO of Crosscode, that Crosscode did business under the name of Kloudgaze, and that “Crosscode dba Kloudgaze” had approximately 29 employees on its payroll even though records from the State of Minnesota show Sharma paid no wages to a single Kloudgaze employee. In support of the application, Sharma included fraudulent supporting documentation, including fabricated bank account statements.
As a result of Sharma’s fraud scheme, lenders approved three of his PPP applications and deposited $1,773,600 in PPP funds into bank accounts controlled by Sharma. Rather than using the funds for permissible business expenses, Sharma used the money to pay off unrelated legal debts, fund new business ventures, transfer approximately $14,000 to a financial account in India, and pay for home improvements, including landscaping and the installation of a $64,300 backyard pool at his residence.
On July 8, 2021, Sharma pleaded guilty to one count of wire fraud.
During the investigation, law enforcement seized approximately $674,980.76 in fraudulent proceeds held in multiple bank accounts controlled by Sharma. The seized funds will be forfeited to the United States and Sharma has been ordered to pay $1,773,600 in restitution.
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Jordan L. Sing, Quinn Hochhalter, and Craig R. Baune prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Who Had Sex with Minor Convicted of Sexual AbuseRead the Press Release
A man who had sex with a minor was convicted by a jury today after a three-day trial in federal court in Cedar Rapids.
Stephen Albert, age 50, from Tama, Iowa, was convicted of one count of sexual abuse by threat and force and one count of sexual abuse of a minor. The verdict was returned this afternoon following less than two hours of jury deliberations.
The evidence at trial showed that, beginning in the summer of 2012 and continuing through October 2016, Albert sexually assaulted a child on the Meskwaki Settlement. The sexual assaults took place in various homes on the Settlement as well as at Albert’s place of employment.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Albert remains in custody of the United States Marshal pending sentencing. Albert faces a possible maximum sentence of life imprisonment, a $500,000 fine, and a lifetime of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Emily K. Nydle and was investigated by Federal Bureau of Investigation, the Meskwaki Nation Police Department, the Tama City Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-62.
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Mallinckrodt Agrees to Pay $260M to Settle False Claims Act Lawsuit Alleging Payment of Illegal Kickbacks and Medicare Drug Rebate UnderpaymentsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that pharmaceutical company Mallinckrodt ARD LLC (previously Questcor Pharmaceuticals, Inc., “Questcor,” and collectively “Mallinckrodt”), has agreed to pay $260 million as part of a global settlement to resolve separate allegations that Mallinckrodt violated the False Claims Act by knowingly: 1) using a foundation as a conduit to pay illegal copay subsidies in violation of the Anti-Kickback Statute; and 2) underpaying Medicaid rebates due to the large price increases of its drug H.P. Acthar Gel (“Acthar”). The government filed separate complaints detailing these allegations in 2019 and 2020, respectively. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the U.S. Bankruptcy Court for the District of Delaware, which approved the settlement on March 2, 2022.
Kickback Claims
The U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a complaint alleging kickbacks involving Medicare Part D copays in August 2019. When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
In its complaint, the government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt established through a foundation in order to induce Medicare-reimbursed purchases of Acthar at its ever-increasing price. Mallinckrodt used the subsidies to counteract doctor and patient concerns about the drug’s high cost and to market the drug as “free.”
“When pharmaceutical companies manipulate Medicare Part D by covering patient copays, the whole structure of the Part D program is undermined,” said United States Attorney Jennifer Arbittier Williams. “Our Office is committed to maintain the financial integrity of taxpayer-funded programs like Medicare, and therefore we will continue to pursue fraud actions like this so that Medicare Part D and other federal healthcare programs remain viable for those who rely on the benefits.”
“The Medicare Part D Program provides vital prescription drug services to Medicare beneficiaries,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “HHS-OIG will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare Trust Fund.”
Medicaid Claims
The District of Massachusetts filed a complaint alleging fraud against the Medicaid Rebate Program in early 2020. Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The government alleges that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. According to the Complaint, Mallinckrodt and its predecessor Questcor began paying rebates for Acthar in 2013 as if Acthar was a “new drug” first marketed in 2013, rather than a drug that had been approved since 1952. Allegedly, this practice meant the companies ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar from 2013 until 2020. In particular, the government alleged that Acthar’s price had already risen to over $28,000 per vial by 2013, and therefore ignoring all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. Under the settlement agreement, Mallinckrodt admits and agrees that there is only one Acthar, that FDA approved Acthar in 1952, and that Acthar was first produced, distributed, and marketed prior to 1990.
The global settlement provides for Mallinckrodt’s payment of approximately $234.7 million to resolve the Medicaid Claims and approximately $26.3 million to resolve the Kickback claims. In October 2020, Mallinckrodt filed for bankruptcy protections and this settlement with the government has been approved for payment by the United States Bankruptcy Court for the District of Delaware.
The government’s allegations were originally alleged in cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did in these case, which are captioned: United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.); United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The whistleblowers in the E.D. Pa. qui tam will receive approximately $4.9 million from the recovery. “We sincerely thank the relators in this case. Together with their lawyers, these citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said U.S. Attorney Williams.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The settlement agreement in the Eastern District of Pennsylvania is being handled by Assistant U.S. Attorneys Colin Cherico, Paul Koob and Matthew Howatt and auditor George Niedzwicki with assistance from the U.S. Department of Health and Human Services Office of Inspector General. In 2019, under a separate agreement stemming from the same qui tam filing in the Eastern District of Pennsylvania, Mallinckrodt agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce prescriptions of Acthar from 2009 through 2013.
The claims asserted by the United States are allegations only and there has been no determination of liability.
Lucedale Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Lucedale man pled guilty to being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans.
According to court documents, Scott Randall Harris, 49, received through the mail firearms suppressors at his residence in Lucedale. The deliveries dated back to June of 2019. Agents obtained a search warrant and served it in January of 2020 at the Lucedale residence of Harris. Agents recovered multiple firearms and miscellaneous ammunition. Harris was a previously convicted felon as a result of a narcotics conviction in George County.
A federal grand jury indicted Harris on April 14, 2021. Harris is scheduled to be sentenced on June 16, 2022, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security - Homeland Security Investigations is investigating the case, with assistance from U. S. Customs and Border Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Las Vegas Man Sentenced to Prison for Attempted RobberyRead the Press Release
LAS VEGAS – A Las Vegas man who attempted to rob an armored car employee during a delivery to a bank was sentenced today to five years in prison.
Keyawn Lloyd Cook Jr. (27) pleaded guilty in May 2021 to one count of attempted interference with commerce by robbery. In addition to the prison term, U.S. District Judge Gloria M. Navarro sentenced Cook to three years of supervised release.
According to court documents, on July 16, 2019, Cook waited alongside the bank for the armored car to arrive. As an armored car employee entered the bank, Cook ran towards the employee, pointed a loaded 9mm handgun, and threatened “don’t move.” A second armored car employee pushed an audible alarm, and then Cook fled from the scene without any money.
In a separate case, Cook pleaded guilty today to participating in a scheme to defraud the Small Business Administration and a Paycheck Protection Program lender by filing fraudulent loan applications. Those fraudulent applications sought over $100,000 in loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act. He is scheduled to be sentenced for the COVID-related fraud charge on June 8, 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
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Justice Department Files Complaint to Stop Seafood Processor from Distributing Adulterated Seafood ProductsRead the Press Release
WASHINGTON — The United States filed a complaint to stop a seafood processor in Monroe, Washington, from processing and selling adulterated seafood products, the Justice Department announced today.
In a civil complaint for permanent injunction filed March 9 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Diane Zollinger, through her business, Felix Custom Smoking, violated the Federal Food, Drug and Cosmetic Act (FDCA) by distributing adulterated ready-to-eat seafood products, including fish jerky and cold- and hot-smoked salmon. According to the complaint, Zollinger sells products directly to consumers from her business and at farmers’ markets. She also provides custom processing for fisherman and other wholesalers.
The complaint, which was filed in the U.S. District Court for the Western District of Washington, alleges that FDA inspectors visited Zollinger’s facility in 2021 and found a significant infestation of flies and other filthy conditions that can create an ideal environment for the growth of harmful bacteria, such as Listeria monocytogenes (L. mono). Food contaminated with L. mono can cause symptoms such as diarrhea and vomiting in healthy adults. For vulnerable consumers — including pregnant women, the elderly and the immune-compromised — L. mono can cause more serious effects, such as stillbirths, miscarriages and death.
The complaint further alleges that FDA inspectors took multiple samples at Zollinger’s facility and confirmed the presence of L. mono in and around food preparation areas. According to the complaint, genetic testing showed the same strain of L. mono had been present in the facility since at least 2018, and a sample of seafood from one of Zollinger’s customers also showed the same strain of L. mono. FDA issued a public health alert warning against purchasing or eating Felix Custom Smoking seafood. The United States now seeks an injunction that would require Zollinger to eliminate L. mono at her facility, make sanitation improvements and comply with federal food safety regulations before processing or distributing any more seafood.
“Food processors must ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with FDA to stop the distribution of contaminated food.”
“The Western District of Washington has seen all too vividly what happens when adulterated food makes it into our food supply,” said U.S. Attorney Nick Brown for the Western District of Washington. “Whether it is E.coli in ground beef or orange juice or, as alleged in this case, dangerous bacteria in smoked salmon, we count on the FDA’s inspectors to keep us and our families safe.”
Trial Attorney Sarah Williams of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorneys Kerry Keefe and Kayla Stahman in the Western District of Washington and Assistant Chief Counsel Lauren Fash of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Justice Department Files Complaint to Stop Seafood Processor from Distributing Adulterated Seafood ProductsRead the Press Release
The United States filed a complaint to stop a seafood processor in Monroe, Washington, from processing and selling adulterated seafood products, the Justice Department announced today.
In a civil complaint for permanent injunction filed March 9 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Diane Zollinger, through her business, Felix Custom Smoking, violated the Federal Food, Drug and Cosmetic Act (FDCA) by distributing adulterated ready-to-eat seafood products, including fish jerky and cold- and hot-smoked salmon. According to the complaint, Zollinger sells products directly to consumers from her business and at farmers’ markets. She also provides custom processing for fisherman and other wholesalers.
The complaint, which was filed in the U.S. District Court for the Western District of Washington, alleges that FDA inspectors visited Zollinger’s facility in 2021 and found a significant infestation of flies and other filthy conditions that can create an ideal environment for the growth of harmful bacteria, such as Listeria monocytogenes (L. mono). Food contaminated with L. mono can cause symptoms such as diarrhea and vomiting in healthy adults. For vulnerable consumers — including pregnant women, the elderly and the immune-compromised — L. mono can cause more serious effects, such as stillbirths, miscarriages and death.
The complaint further alleges that FDA inspectors took multiple samples at Zollinger’s facility and confirmed the presence of L. mono in and around food preparation areas. According to the complaint, genetic testing showed the same strain of L. mono had been present in the facility since at least 2018, and a sample of seafood from one of Zollinger’s customers also showed the same strain of L. mono. FDA issued a public health alert warning against purchasing or eating Felix Custom Smoking seafood. The United States now seeks an injunction that would require Zollinger to eliminate L. mono at her facility, make sanitation improvements and comply with federal food safety regulations before processing or distributing any more seafood.
“Food processors must ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with FDA to stop the distribution of contaminated food.”
“The Western District of Washington has seen all too vividly what happens when adulterated food makes it into our food supply,” said U.S. Attorney Nick Brown for the Western District of Washington. “Whether it is E.coli in ground beef or orange juice or, as alleged in this case, dangerous bacteria in smoked salmon, we count on the FDA’s inspectors to keep us and our families safe.”
Trial Attorney Sarah Williams of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorneys Kerry Keefe and Kayla Stahman in the Western District of Washington and Assistant Chief Counsel Lauren Fash of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Jury Convicts White Swan Man of Four Counts of First Degree Murder, along with Carjacking, Kidnapping a Minor, and Assault with a Dangerous WeaponRead the Press Release
Spokane, Washington – On March 9, 2022, a federal jury convicted James Cloud, 37, of White Swan, Washington, on four counts of First Degree Murder. The jury also returned guilty verdicts against James Cloud for Carjacking, two counts of Brandishing a Firearm in Furtherance of a Crime of Violence, Kidnapping a Minor, Assault With a Dangerous Weapon, and three counts of Discharging a Firearm in Furtherance of a Crime of Violence. Sentencing is set for July 26, 2022, in Yakima, Washington, before United States District Judge Salvador Mendoza, Jr. James Cloud, who is an enrolled member of the Yakama Nation, faces a potential life sentence.
The jury heard and considered more than a week of testimony and evidence in Spokane before returning guilty verdicts on the day after closing arguments. The evidence showed that on June 8, 2019, James Cloud was involved in multiple murders, and that after committing the murders, he approached a residence, held a person at gunpoint, carjacked a vehicle, and fled from the crime scenes.
Another enrolled member of the Yakama Nation, Donovan Cloud, 35, of Lyle, Washington, was also charged in some of the underlying conduct. Donovan Cloud pleaded guilty on the same day the jury rendered its verdicts in James Cloud’s case. Donovan Cloud pleaded guilty to Carjacking and Brandishing a Firearm in Furtherance of a Crime of Violence. He faces a range of approximately 22-27 years in custody under the advisory federal Sentencing Guidelines, and his sentencing hearing is also set for July 26, 2022.
U.S. Attorney Vanessa R. Waldref commended the efforts of the investigators and prosecutors who worked for years to bring justice to the victims of Cloud’s crimes. “In a safe and strong Eastern Washington, there is accountability for even the worst acts of inhumanity. After years of tireless investigation, hard-fought litigation, and detailed preparation, justice has finally been served for the victims of James Cloud and Donovan Cloud. The people of the Yakama Nation can rest easier tonight knowing that James Cloud and Donovan Cloud will no longer roam their streets and endanger them. I am grateful for the dedication and perseverance of the FBI, the ATF, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol, who collaborated with Assistant United States Attorneys Tom Hanlon and Rick Burson to see these cases through to just results.”
“No community should have to live in fear of the type of heinous acts perpetrated by James Cloud and Donovan Cloud,” said Donald Voiret, Special Agent in Charge of the FBI’s Seattle field office. “I want to express my gratitude to our investigators and the prosecutors on today’s guilty verdicts. Their work on behalf of victims and survivors shows that the FBI and our partners will not stand idly by while violence plagues our streets.”
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case was prosecuted by Tom Hanlon and Rick Burson, Assistant United States Attorneys for the Eastern District of Washington.
Jury Convicts Sacramento Man for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Robert Pierre Duncan, 26, of Sacramento, guilty on Tuesday of conspiracy to engage in sex trafficking of a child, sex trafficking of a child, and escape from custody, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, between September and October 2018, Duncan recruited a 17-year-old girl to engage in prostitution in Oakland and San Francisco. He frequently drove the victim to areas known for prostitution activity where he caused her to have sex with strangers for money, which he kept. Duncan also posted online prostitution ads depicting the victim and harbored the victim at an Oakland motel so she could have sex with sex buyers. In late September 2018, Sacramento County Sheriff’s Deputies recovered the victim. However, a few weeks later, Duncan, working with his co-conspirator, Eva Christian, 25, extracted the victim from a children’s group home in the middle of the night. The next day, Duncan put the victim back to work engaging in prostitution on the streets of Oakland. After obtaining the victim from the group home, Duncan managed his pimping operation from his Sacramento apartment, using his cellphone and a location tracking application on his phone to monitor and direct the victim’s prostitution activity in Oakland.
On May 31, 2019, Duncan was arrested by FBI agents in Sacramento. Shortly after his arrest, Duncan broke out of custody and fled through Midtown Sacramento until he was finally apprehended several blocks away from the scene of his initial arrest.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, the Sacramento County Sheriff’s Office, the Woodland Police Department, and the Oakland Police Department with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Brian A. Fogerty and Sam Stefanki are prosecuting the case.
Duncan is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 6, 2022. Duncan faces a maximum statutory penalty of life in prison and a $250,000 fine. His conviction on the sex trafficking of a child count carries a mandatory minimum sentence of 10 years in prison. 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 case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Jefferson Davis County Man Pleads Guilty to Illegal Possession of Firearms While Under Domestic Violence Protection OrderRead the Press Release
Hattiesburg, Miss. – A Jefferson Davis County man pled guilty to illegally possessing firearms while under a domestic violence protection order, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Victor Joseph Schexnayder, 49, pled guilty in U.S. District Court in Hattiesburg.
According to court records, on September 8, 2021, a firework was placed inside of an AT&T Digital Transmission Site, blowing up a hub of Digital Subscriber Lines internet and phone connectivity in Jefferson Davis County. A subsequent investigation led agents to a search of Victor Joseph Schexnayder’s residence where they discovered multiple firearms. At the time, Schexnayder was the subject of a domestic violence protection order, issued in the Chancery Court of Harrison County, which prohibited him from possessing firearms. Overall, seventeen firearms were collected during the course of the investigation.
Schexnayder will be sentenced on June 23, 2022, and faces a maximum penalty of 10 years in prison. A federal district judge will determine the sentence after considering the U.S. sentencing guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrew Eichner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jamaican Citizen Pleads Guilty to Passport FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Caswell Richards, 55, of Jamaica, pleaded guilty to the use of a U.S. passport secured by a false statement before U.S. District Judge John L. Sinatra, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated in December 2020, Richards used another individual’s name and birth certificate to apply for and secure a United States passport. On that application, Richards also indicated that there were no other names he had used in the past and affirmed to a Passport Acceptance Agent that all the information provided was true and correct. On November 25, 2021, Richards sought entry to the United States at the Peace Bridge Port of Entry using the fraudulent passport.
The plea is the result of an investigation by the Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, and U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for July 5, 2022, at 2:00 p.m. before Judge Sinatra.
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Jackson Man Sentenced to 10 Years in Prison for Discharging a Firearm During a Crime of ViolenceRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to ten years in federal prison for discharging a firearm during a crime of violence, announced U.S. Attorney Darren J. LaMarca and Inspector in Charge Scott Fix of the U.S. Postal Inspection Service.
According to court documents, Marco Darby, 26, was indicted for discharging a firearm during the assault and robbery of a United States Postal Service mail carrier in Jackson on June 2, 2021.
Darby pled guilty on December 9, 2021.
The United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Jackson Man Pleads Guilty to Escape from Federal CustodyRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to escape from federal custody, announced U.S. Attorney Darren J. LaMarca.
According to court documents, Henry Steverson, 51, was indicted for failing to report to a halfway house in Jackson as a condition of his pending release from federal custody with the Bureau of Prisons. His failure to report resulted in his classification as an escapee from federal custody.
Steverson is scheduled to be sentenced on June 8, 2022, and faces a sentence of not less than five years in prison. A federal district judge will determine the sentence after considering the U.S. sentencing Guidelines and other statutory factors.
The United States Marshal’s Service investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Inmate Sentenced for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 7, 2022, Dahveed Dean, age 45, an inmate at United States Penitentiary Canaan (USP Canaan), was sentenced to 18 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion for assaulting a federal employee.
According to United States Attorney John C. Gurganus, Dean punched a corrections officer in the face during an altercation at the prison in July of 2016. The 18-month sentence will run consecutive to Dean’s current federal sentence of 25 years for robbery and firearms charges.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan, and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
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Inmate Charged with Possessing WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 7, 2022, Nelson Ferry, age 32, an inmate at FCI Schuylkill, Pennsylvania, was charged in a criminal information with possession of a weapon.
According to United States Attorney John C. Gurganus, the information alleges that on December 1, 2021, Ferry possessed a sharpened metal object intended to be used as a weapon, commonly known as a “shank.”
The case was investigated by the Federal Bureau of investigation and the Bureau of Prisons. Assistant U.S. Attorney Sean Camoni is prosecuting the case.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Indictment Unsealed Charging Los Angeles Man with Assaulting and Interfering with a Flight Attendant and Federal Air Marshal Onboard Delta FlightRead the Press Release
OKLAHOMA CITY – A federal grand jury indictment was unsealed yesterday charging JAMES ARIEL PENNINGTON, 45, of Los Angeles, California, on charges of interference with a flight attendant and assault on a federal officer with physical contact, announced United States Attorney Robert J. Troester.
On January 18, 2022, a federal grand jury sitting in Oklahoma City returned the Indictment. It alleges that on December 9, 2021, Pennington was onboard Delta Airlines flight 342, traveling from Arlington, Virginia, to Los Angeles, California. During that flight, Pennington knowingly assaulted and intimidated a flight attendant of the aircraft, thereby interfering with the flight attendant and lessening the ability of the flight attendant to perform his duties. The Indictment further alleges that Pennington assaulted a Federal Air Marshal while the Federal Air Marshal was engaged in his official duties, causing physical contact with the Federal Air Marshal. The flight was diverted to Will Rogers World Airport in Oklahoma City, where Oklahoma City Police Department Officers escorted Pennington from the aircraft.
The indictment was sealed until Pennington was located, taken into custody, and appeared in federal court in California.
If found guilty, Pennington faces a maximum potential penalty on each count of twenty years in prison, three years of supervised release, and a fine of $250,000.
This case is the result of an investigation by the FBI’s Oklahoma City Field Office and the Oklahoma City Police Department. Assistant U.S. Attorneys Ashley L. Altshuler and Lori Hines are prosecuting the case.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to the attached indictment and public records for more information.
Indictment Charges Two Individuals, Including One Who Posed as a Lawyer, with Wire and Mail Fraud Conspiracy in Connection with Alleged Fraudulent Debt Elimination SchemeRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Willie Lamont Hicks, age 50, of Rockville, Maryland, and Mary Ann Mendoza, age 49, of Kensington, Maryland, on federal charges of conspiracy to commit wire and wire fraud. The indictment was returned on December 22, 2021 and unsealed upon the defendants’ arrests.
Hicks is scheduled to have an initial appearance in U.S. District Court in Greenbelt today at 12:00 p.m. before U.S. Magistrate Judge Charles B. Day. Mendoza was arrested in Rockville, Maryland and had her initial appearance in U.S. District Court in Maryland on January 12, 2022. U.S. Magistrate Judge Timothy J. Sullivan ordered that Mendoza be released under the supervision of U.S. Pretrial Services pending trial. Law enforcement arrested Hicks on January 14, 2022, in Plano, Texas. He was subsequently transported to Maryland for today’s initial appearance.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Mark Higgins of the Mid-Atlantic Region- Federal Housing Finance Agency- Office of Inspector General; Sally Luttrell, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; Montgomery County State’s Attorney John McCarthy; and Chief Marcus Jones of the Montgomery County Police Department.
According to the four-count indictment, from October 2010 to September 2018, Hicks and Mendoza, who claimed to be husband and wife, held in-person trainings purporting to educate victim-debtors on how to discharge consumer debt, including mortgage debt, credit card debt, and automobile financing debt. In connection with the debt elimination classes, Hicks allegedly stated that he was a lawyer and received education and training that he had not received.
During the debt elimination classes, Hicks and Mendoza allegedly told victims that on the back of their social security cards and birth certificates, there was a special bank account number with funds owed to the victims by the U.S. government. The defendants also allegedly informed the victim-debtors that they could create “trusts” into which they could transfer their assets without transferring any attendant consumer debt.
Specifically, the indictment alleges that through several interstate wire transfers in 2018, Mendoza and Hicks caused one victim to transfer more than $100,000 from the victim’s bank account to a fraudulent corporate entity controlled by the defendants.
As stated in the indictment, the defendants and their co-conspirators offered to effectuate the discharge of the debt held by the victims for a fee equal to a percentage of the victim-debtors’ outstanding debt or asset purchase price through fraudulent corporate entities. Allegedly, the defendants accepted payment in the form of cash, wire transfers, personal and cashier’s checks, and the use of the victim-debtors’ credit.
The indictment further alleges that Hicks, Mendoza, and their co-conspirators used the victims’ personal identifying information without the knowledge or permission of the victims and provided participating victims with paperwork including trust documents, non-disclosure agreements, Internal Revenue Service form documents, and other materials that the defendants claimed were necessary for discharging debt.
The indictment continues to allege that Hicks, Mendoza, and their co-conspirators mailed paperwork to the victim-debtors’ creditors, lenders, and the Internal Revenue Service paperwork purporting to effectuate the discharge of the victim’s debts.
The defendants face a sentence of 20 years in prison for conspiracy to commit wire fraud and 20 years in federal prison for wire fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the Mid-Atlantic and Central Regions of the Federal Housing Finance Agency- Office of Inspector General; U.S. Department of the Treasury - Office of Inspector General; the United States Marshal Service of Texas, the Hinesville Police Department of Hinesville, Georgia, Queen Anne’s County Office of the Sheriff- Centreville, Maryland, and the United States Attorney’s Offices of Western District of North Carolina, Northern District of Georgia, Eastern District of Texas, and the Eastern District of Pennsylvania for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Dana J. Brusca, who is prosecuting the case.
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Howell Township Man Admits Subscribing to False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man who ran an illegal gambling business today admitted filing a false tax return, U.S. Attorney Philip R. Sellinger announced.
Steven Bryce, 52, of Howell Township, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count Five of an indictment charging him with subscribing to a false tax return.
According to documents filed in this case and statements made in court:
In 2013, Bryce operated an illegal gambling business. On July 14, 2014, Bryce filed with the IRS U.S. Individual Income Tax Return, Form 1040, for the calendar year 2013 on behalf of himself and his spouse, which falsely stated that they had total income of $112,899. The 2013 Tax Return was not true and correct: Bryce received significant income from his gambling business, and, as a result, had income substantially in excess of the amount he reported. As part of his plea agreement, Bryce agreed to pay full restitution of $338,885 to the IRS for tax losses resulting from false tax returns filed by Bryce for calendar years 2011 to 2016.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. Sentencing is scheduled for July 11, 2022.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and J Fortier Imbert of the Special Prosecutions Division in Newark.
Houstonians sent to prison for illegal firearms purchasesRead the Press Release
HOUSTON – Four individuals have been sentenced for illegally purchasing weapons for others aka straw purchasing, announced U.S. Attorney Jennifer B. Lowery.
Maribel Santana-Cerano, 45, Ariceli Santana, 47, Carlos Joel Hernandez, 26, and Johnny Talavera, 28, all of Houston, pleaded guilty in 2021.
Today, U.S. District Judge Lynn N. Hughes imposed the statutory maximum 120-month term of imprisonment for Santana-Cerano. Santana and Talavera received sentences of 12 months and a day, while Hernandez was ordered to serve six months. In imposing the sentence for Santana-Cerano, the court noted her role in the scheme, the number of firearms attributed to her and her knowledge of the trafficking scheme among other factors that warranted her maximum sentence. In handing down the prison terms, Judge Hughes noted the impact these firearms would have on American and Mexican lives.
The investigation began July 31, 2018. At that time, Santana-Cerano was a passenger on a bus headed to Mexico. Authorities conducted an X-ray inspection which revealed 34 pistols and 31 magazines inside black luggage. Santana-Cerano denied the luggage was hers but displayed suspicious behavior.
Upon further investigation, law enforcement was able to trace firearms purchases from various federally-licensed firearms dealers to Santana-Cerano, Santana, Hernandez and Talavera. Authorities also retrieved falsely represented ATF 4473 forms that each had completed. The documents claimed they were the purchasers of the firearms when, in fact, they were not.
Upon her to return to the United States and arrest, Santana-Cerano admitted to straw purchasing firearms for an individual residing in Mexico. She would then store and accumulate the firearms at her residence before their transport into Mexico. She also reported that her sister, Santana, purchased more firearms for her. Santana stated each individual was given money and directed to purchase specific firearms.
The group was ultimately held responsible for the illegal purchase of 82 firearms that were destined for Mexico.
Straw purchasing occurs when someone professes to be purchasing a firearm for themselves, when in actuality, they provide it to someone else, usually not legally able to do it themselves.
Santana-Cerano was taken into custody at the conclusion of her sentencing hearing, while the others were permitted to remain on bond pending dates to surrender in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Houston Men Indicted for Stealing Beaumont MailRead the Press Release
BEAUMONT, Texas – Two Houston men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Dontae Dewey McGee, 22, and Tyrin Terelle Robinson, 21, were named in an indictment returned by a federal grand jury on March 2, 2022, charging them with theft of mail, possession of stolen mail, and aiding and abetting. McGee and Robinson made initial appearances today before U.S. Magistrate Judge Zack Hawthorn.
If convicted, McGee and Robinson face up to five years in federal prison.
This case is being investigated by the U.S. Postal Inspection Service and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Jonathan Lee.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Heroin Dealer Pleads Guilty and is Sentenced to Four Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Panagoltis Skordalos, age 43, of Baltimore, Maryland to four years in federal prison, followed by four years of supervised release, after Skordalos pleaded guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
According to his guilty plea, from September 2020 to November 2020, Skordalos participated in a Baltimore, Maryland drug trafficking organization (DTO) that distributed large quantities of controlled substances, including heroin. Skordalos joined the DTO less than three weeks after his release from state prison.
In September 2020, federal agents assigned to the Organized Crime and Drug Enforcement Task Force (OCDETF) Strike Force began intercepting electronic and wire communications between Skordalos and the DTO’s leader. The intercepted communications revealed that Skordalos was a mid-level heroin distributor and that the DTO leader was Skordalos’s heroin supplier.
For example, on October 16, 2020, investigators intercepted a series of communications between Skordalos and the DTO leader in which Skordalos arranged to purchase 20 grams of heroin for $1,400. On the same day, agents observed Skordalos conduct a heroin transaction with the DTO leader at a Baltimore transitional home where Skordalos was living after his release from incarceration.
As stated in Skordalos’s plea agreement, on November 16, 2020, law enforcement executed a search warrant at the DTO leader’s Baltimore, Maryland stash apartment. As a result of the executed search warrant, law enforcement recovered, among other things, digital scales, blenders, hydraulic presses, packaging materials, and approximately 218 grams of a mixture containing multiple controlled substances, including heroin.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the FBI, DEA, and the USPIS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Hartford Man Sentenced to 33 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that JOSE PEREZ, 40, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release. On September 24, 2021, a jury found Perez guilty of unlawful possession of a firearm by a felon.
According to the evidence and testimony at trial, on November 13, 2016, Hartford Police detectives responding to a ShotSpotter activation recovered a loaded revolver in a car last registered to Perez and containing documents addressed to Perez in the glove box. DNA analysis of the seized firearm indicated Perez had handled the firearm.
Prior to November 2016, Perez had sustained state felony convictions for narcotics and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Perez was apprehended on January 19, 2021.
Perez, who was released on bond, was remanded to custody at the conclusion of today’s court proceeding.
This matter was investigated by the Hartford Police Department and the FBI’s Connecticut Violent Crime Task Force, with the assistance of the Connecticut Forensic Science Laboratory. This case was prosecuted by Assistant U.S. Attorneys Tara E. Levens and Maria del Pilar Gonzalez.
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.
Greece Man Going to Prison for 22 Years for Enticing A Minor to Engage in Sexual ActivityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Joseph McGrain, 50, of Greece, NY, who was convicted of enticement of a minor to engage in sexual activity, attempted obstruction of justice, and obstruction of justice, was sentenced to serve 264 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that on March 27, 2020, the Greece Police Department learned that McGrain had been having a sexual relationship with a 16-year-old girl (Minor Victim) for one and a half years. On April 1, 2020, investigators observed Facebook chat conversations between McGrain and the Minor Victim on her cell phone. Among the messages, McGrain stated, “I miss our nights.” Another message stated, “your right it’s wrong and it will end...thank you for that magic for the past year.” On April 5, 2020, McGrain threatened the Minor Victim by stating “If you really want it to end then tell them (law enforcement) you set it all up and lied.”
McGrain and the Minor Victim had sexual relations almost daily between October 2018, when she was 14 years old, until March 26, 2020.
The sentencing is the result of an investigation by the Greece Police Department, under the direction of Chief Michael Wood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Grand jury indicts Wilmington man allegedly involved in shoot-out with illegally possessing ammunitionRead the Press Release
CINCINNATI – A federal grand jury has charged a previously convicted felon with possessing ammunition during a shoot-out with another man.
Charles Stacey Brooks, 40, of Wilmington, Ohio, was allegedly in an active shoot-out in a residential neighborhood in January 2022. It is alleged that Brooks illegally possessed ammunition at the time of the incident.
According to pending local charges, on Jan. 12, 2022, Brooks and Christian Burton, 21, also of Wilmington, shot at each other while in a residential neighborhood of Wilmington. A 911 caller allegedly reported hearing at least three shots on South Walnut St. The caller said that one of the shots struck the outside of a car occupied by a man driving with his child.
Brooks has previously been convicted of felony crimes including robbery and aggravated drug trafficking. He was on parole at the time of the shooting.
Possessing a firearm or ammunition as a previously convicted felon is a federal crime punishable by up to 10 years in prison.
Burton has also been indicted by a federal grand jury. He was charged federally on Feb. 23 with seven counts of narcotics crimes, including distributing fentanyl and methamphetamine and possessing with the intent to distribute methamphetamine. If convicted, Burton faces a potential minimum of five years up to 40 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Wilmington Police Chief Ron Cravens; Warrren County Sheriff Larry L. Sims and other members of the Warren County Drug Task Force; and Clinton County Prosecutor Andrew T. McCoy announced the charges. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
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