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Thursday 20 January 2022
Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—On January 19, 2022, a Salem, Oregon man on federal supervised release was sentenced to federal prison after he was found in possession of more than 1.5 kilograms of methamphetamine and 15 firearms, five of which were stolen.
Jorge Mozqueda-Alvarez, 33, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, in September 2019, detectives from the Salem Police Department’s Street Crimes Unit (SCU) began investigating Mozqueda-Alvarez for drug trafficking in the Salem area. Officers conducted two separate controlled purchases of methamphetamine from Mozqueda-Alvarez. On October 15, 2019, SCU executed a search warrant on Mozqueda-Alvarez’s Salem residence and located more than 1.5 kilograms of methamphetamine and 15 firearms, five of which had been reported stolen. Mozqueda-Alvarez was arrested without incident.
On October 17, 2019, Mozqueda-Alvarez was charged by federal criminal complaint with illegally possessing a firearm as a convicted felon and possessing with intent to distribute methamphetamine. One week later, on October 24, 2019, a federal grand jury in Portland returned a four-count indictment charging him with distribution of methamphetamine, possession with intent to distribute methamphetamine and felon in possession of a firearm.
On December 18, 2020, Mozqueda-Alvarez pleaded guilty to possession with intent to distribute methamphetamine and felon in possession of a firearm. To resolve a separate criminal case, Mozqueda-Alvarez also pleaded guilty to illegal reentry.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department with assistance from the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rocky Hill Man Pleads Guilty to Fentanyl Distribution ChargeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that SEAN THOMAS, 32, of Rocky Hill, pleaded guilty today via videoconference to one count of possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, in 2020, Hartford Police were investigating Thomas and others for distributing fentanyl and marijuana. As part of the investigation, an undercover officer purchased marijuana from an employee at Puff Paradise, a smoke shop on New Britain Avenue owned by Thomas. On June 2, 2020, in anticipation of executing multiple search warrants, investigators surveilled Thomas as he drove his car from his Rocky Hill residence to Kenneth Street in Hartford, where he entered a parked Dodge Durango. Believing that Thomas was conducting a narcotics transaction, detectives approached the Durango. Tafarie Green, the driver of the vehicle, accelerated and drove straight at the detectives who leaped out of the way. He then drove at a high rate of speed onto a sidewalk and through two chain link fences before he crashed into a tree. Green fled the scene on foot, but Thomas was immediately apprehended. A subsequent search of Puff Paradise revealed approximately three pounds of marijuana, and a search of Thomas’s residence revealed more than 100 grams of unpackaged fentanyl, approximately 3,500 bags of packaged fentanyl, items used to process and package narcotics for street sale, and $16,511 in cash.
Thomas is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant in Hartford on April 20, 2022, at which time he faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Thomas is released on a $100,000 bond pending sentencing.
Green, who was on federal supervised release, was arrested on July 13, 2020. He pleaded guilty to possession of a firearm by a felon and, on August 31, 2021, was sentenced to 62 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department’s Vice, Intelligence and Narcotics Unit, with the assistance of the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Registered Sex Offender Sentenced to Prison for Possessing Images of Child Sexual AbuseRead the Press Release
A Virginia man was sentenced today to 15 years in prison followed by a lifetime of supervised release for possessing images of the sexual abuse of children.
Ian Andrew Zearley, 40, of Louisa County, pleaded guilty to possession of obscene visual representations of the sexual abuse of children in July 2021. According to court documents, Zearley committed the offense while on supervised release for a previous conviction for possession of child exploitation materials. Following his prior conviction, law enforcement was monitoring Zearley’s computer usage pursuant to the terms of his supervised release. During the monitoring, law enforcement discovered that Zearley searched terms consistent with child sexual abuse, including “real hardcore child porn” and “boys severely whipped and bleeding.” Zearley also authored two stories that described, in graphic detail, the rape and abuse of young boys.
When law enforcement thereafter searched Zearley’s house, they found, in his basement, business cards stating Zearley was the president of the “Pedophile Associates of America,” electric shock equipment, pepper spray, a ski mask and pellet gun. Officers also found a list of children’s names, their ages and how Zearley knew each child. Children’s items, such as diapers, bottles and toys were also found, and Zearley’s computer contained eight computer-generated images depicting child sexual abuse.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia made the announcement.
The FBI investigated the case with support from the U.S. Probation Office and the U.S. Marshals Service.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kate Rumsey of the U.S. Attorney’s Office for the Western District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Registered Sex Offender Sentenced to Prison for Possessing Images of Child Sex AbuseRead the Press Release
CHARLOTTESVILLE, Va. – A Virginia man was sentenced today to 180 months in prison for possessing images of the sexual abuse of children.
Ian Andrew Zearley, 40, of Louisa County, pleaded guilty to the charge in July 2021. According to court documents, Zearley committed the offense while on supervised release for a previous conviction for possession of child exploitation materials. Following his prior conviction, law enforcement was monitoring Zearley’s computer usage pursuant to the terms of his supervised release. During the monitoring, it was discovered that Zearley searched terms consistent with child sexual abuse, including “real hardcore child porn,” and “boys severely whipped and bleeding.” Zearley also authored two stories that described, in graphic detail, the rape and abuse of young boys.
When law enforcement thereafter searched Zearley’s house, they found, in his basement, business cards stating Zearley was the president of the “Pedophile Associates of America,” electric shock equipment, pepper spray, a ski mask, and pellet gun. Officers also found a list of children’s names, their ages, and how Zearley knew each child. Children’s items, such as diapers, bottles, and toys were also found, and Zearley’s computer contained eight computer-generated images of child sex abuse.
“One of the cornerstone missions of this United States Attorney’s Office is providing a safe haven for our children. Part of that mission is the prosecution of those who repeatedly show themselves to be a danger to children in our community,” United States Attorney Christopher R. Kavanaugh said today. “Mr. Zearley was on supervised release when he not only possessed images of the sexual abuse of children, but horrific tools that showed he was on the precipice of effectuating his violent fantasies towards children. I am grateful to the FBI, U.S. Probation Office, and the U.S. Marshals Service for bringing this defendant to justice before he could commit additional harm to our community.”
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia made the announcement.
The FBI investigated the case with support from the U.S. Probation Office and the U.S. Marshals Service.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kate Rumsey of the U.S. Attorney’s Office for the Western District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Red Lake Man Pleads Guilty to AssaultRead the Press Release
MINNEAPOLIS – A Red Lake man has pleaded guilty to two counts of assault resulting in serious bodily injury, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on May 5, 2021, Brennon Allen James Sayers, 21, was arguing loudly with his girlfriend in a vehicle outside a residence in the Ponemah area of the Red Lake Indian Reservation. Victim J.L.Z., who lived across the street, came out of his residence and began telling Sayers to stop arguing and fighting with his girlfriend. Victim C.T.G., who was walking down the road, encountered the interaction between Sayers and J.L.Z. As the confrontation between Sayers and J.L.Z. escalated to yelling and assaultive threats, Sayers pulled a firearm from his waistband and began shooting at both J.L.Z. and C.T.G. as they ran back towards J.L.Z.’s house. Both J.L.Z. and C.T.G. were struck by gunfire. After the shooting, Sayers fled the area and was located several hours later at his mother’s residence on the Red Lake Indian Reservation.
Sayers pleaded guilty today before U.S. District Court Chief Judge John R. Tunheim to two counts of assault resulting in serious bodily injury. A sentencing hearing has been scheduled for June 13, 2022.
This case is the result of an investigation conducted by the Red Lake Police Department and the Federal Bureau of Investigation’s Headwaters Safe Trails Task Force.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
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Reagor Dykes CFO Sentenced to 7 Years in Prison for Wire Fraud ConspiracyRead the Press Release
Reagor Dykes Auto Group’s Chief Financial Officer, Shane Andrew Smith, was sentenced today to seven years in federal prison for his role in a $50 million wire fraud conspiracy, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Mr. Smith, 45, pleaded guilty in June 2019 and was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk, who also ordered him to pay $59,590,198.82 in restitution. The defendant will have to report to prison by 2 p.m. on Monday, March 28.
“By the time Mr. Smith was charged in 2019, Reagor Dykes was a cesspool of criminal schemes, from check kiting to dummy flooring,” said U.S. Attorney Chad Meacham. “We are proud of the work we’ve done to hold this defendant – and more than a dozen of his coworkers – accountable for their egregious behavior.”
"As a corporate executive, Mr. Smith meticulously conspired to defraud a lending institution, and the resulting loss to the industry was significant," said Matthew DeSarno, Special Agent in Charge of the FBI's Dallas Division. "One of the FBI's goals is to investigate fraud and protect public and investor confidence in our economy, and we will continue that endeavor with our partners."
The defendant was given credit for testifying in the trial of his former boss, Reagor Dykes owner Bart Reagor, who was convicted in October of making false statements to an FDIC-insured bank. At that trial, Mr. Smith testified that Mr. Reagor and his partner, Rick Dykes, drew roughly $25 million out of the business for personal use, including roughly $3.3 million from a working capital bank loan intended for business use.
Prior to testifying against his Mr. Reagor, Mr. Smith admitted in plea papers to defrauding the auto group’s main lender, Ford Motor Credit Company (FMCC), and concealing the fraud by cross-depositing checks across several banks, a ploy known as check-kiting.
In order to cover ballooning expenses, Mr. Smith admitted, he instructed Reagor Dykes accountants to engage in a practice they dubbed “dummy flooring.”
At his direction, accounting staff dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to FMCC using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale. Instead of re-buying the car, however, Reagor Dykes used the ensuing loan to cover other expenses.
“Whatever it takes, we need to floor anything and everything we can even think of to cover payoffs each day,” Mr. Smith wrote in an email quoted in his factual resume.
To disguise the shortfall from the dummy flooring scheme, Mr. Smith and his employees engaged in check-kiting, artificially inflating the company’s bank account balances by cross-depositing insufficient checks.
Vendor and payroll checks that should have bounced were instead cleared during banks’ float time, the period between the deposit in the recipient account and the deduction from the payer’s account.
“The deposits we do each do [sic] will most likely cover the checks we write each other,” Mr. Smith wrote in an email.
Reagor Dykes also routinely violated a clause in its loan agreements that required them to repay FMCC within seven days of selling the vehicle for which the loan was issued, Mr. Smith admitted.
Rather than cop to the delay, Reagor Dykes accountants created false paperwork, which they referred to as “dummy shucks,” in order to make it appear that the car had been sold more recently.
Mr. Smith is the fifteenth RDAG employee sentenced to more than 37 years combined in federal prison for the dummy flooring and check kiting scheme. Reagor Dykes employees previously sentenced include:
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Sheila Miller, an RDAG group controller, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, pleaded guilty to conspiracy to commit wire fraud and was to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Lindsay Williams, and RDAG group accounting manager, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 4 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Brad Fansler, an RDAG group administrative director, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 42 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Ashley Dunn, executive assistant to the CEO, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, pleaded guilty to conspiracy to commit wire fraud was sentenced on 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 2 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Wesley Neel, RDAG Safety & Compliance Manager, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Andrea Kate Phillips, an accounting associate and office manager at Reagor Dykes Ford Store in Plainview, pleaded guilty to misprison of a felony and was sentenced to four years’ probation and ordered to pay $40,254,297.72 in restitution, jointly and severally.
- Steven Reinhart, RDAG Legal Compliance Director, pleaded guilty in February 2021 to misprision of a felony and was sentenced to 6 months in federal prison and ordered to pay $40,254,297.72, jointly and severally.
Bart Reagor, 55, is still awaiting sentencing.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Magistrate Judge Lee Ann Reno presided over the plea. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case.
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
Radio Personality Charged with Producing Child PornographyRead the Press Release
A DFW radio DJ has been charged with producing sexually explicit images of a prepubescent child, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Clois Glenn Raborn, an 49-year-old radio personality known for occasional appearances on 97.1’s “The Russ Martin Show,” was charged Wednesday via criminal complaint with production of child pornography. He made his initial appearance before U.S. Magistrate Judge Jeffrey Cureton on Thursday afternoon. A detention hearing has been set for Wednesday morning.
The investigation began in March 2021, when Mr. Raborn’s roommate discovered lewd images of minor children on Mr. Raborn’s laptop.
According to the complaint, law enforcement conducted a forensic analysis of the laptop and found images of an adult male, believed to be Mr. Raborn, allegedly engaging in sexual conduct with young child.
The child’s mother confirmed her daughter’s identity based on images of her face and other items. She also told law enforcement she recognized Mr. Raborn’s hand in some of the images.
She estimated that the child was between four to six years old when the images were taken.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Raborn is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 30 years in federal prison.
The U.S. Secret Service’s Dallas Field Office and the Euless Police Department conducted the investigation. Assistant U.S. Attorney Brandie Wade is prosecuting the case.
Princeton Man Indicted for Arson OffenseRead the Press Release
BOSTON – A Princeton man was indicted today by a federal grand jury in connection with the burning of a Leominster restaurant in in October 2021.
Edmond Charrette, a/k/a Edmond Kuhn, 31, was indicted on one count of damage and destruction of a building by means of fire. Charrette will make an initial appearance in federal court in Worcester on Jan. 27, 2022.
According to the indictment, on Oct. 12, 2021, Charrette maliciously damaged and destroyed China City, a restaurant in Leominster, and its contents by means of fire.
The charge of damage and destruction of a building by means of fire provides for a sentence of at least five years and up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Leominster Interim Police Chief Aaron Kennedy made the announcement today. Assistant U.S. Attorney Kristen M. Noto of Rollins’ Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pocatello Man Sentenced to over 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
POCATELLO – A Pocatello man was sentenced to 130 months in federal prison for attempted possession with intent to distribute methamphetamine.
According to court records, on December 7, 2020, law enforcement intercepted a package in Pocatello. After a law enforcement K9 alerted to the presence of narcotics, officers searched the package and seized 3,751.6 grams of methamphetamine. Law enforcement repackaged the box, replacing the methamphetamine with rock salt to attempt a controlled delivery. On December 9, 2020, Donald Benningfield, 55, of Pocatello, picked up the package and returned to his residence where he was confronted by law enforcement.
After being read his Miranda rights, Benningfield admitted there would be between five and ten pounds of methamphetamine in the package. He also admitted to previously receiving four other packages of methamphetamine from San Diego, California. Benningfield admitted in court that he attempted to possess the methamphetamine seized from the package and he intended to distribute it.
Chief U.S. District Judge David C. Nye also ordered Benningfield to serve five years of supervised release following his prison sentence. Benningfield pleaded guilty to the charge on September 24, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration and the Idaho State Police, which led to charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Pharmacy Owner Sentenced for Role in $9 Million Scheme to Bill Insurance for Medications Not DispensedRead the Press Release
DETROIT - A licensed pharmacist from Dearborn Heights was sentenced to 77 months for his role in a scheme to defraud health care insurers by submitting claims for pharmaceuticals that were not actually purchased, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge Josh Hauxhurst of the FBI’s Detroit Division and Mario M. Pinto, Special Agent in Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.
Sentenced was Mohamad Ali Makki, 46. In sentencing Makki, United States District Judge Linda V. Parker ordered Makki to pay $9.8 million in restitution. Further, the court ordered the forfeiture of approximately $1.1 in funds seized from bank accounts controlled by Makki.
According to court records, from 2013 through 2019, Makki was a licensed pharmacist at Life Care Pharmacy in Farmington Hills. Makki, along with his co-conspirators Wansa Makki and Hossam Tanana, participated in a scheme to defraud Medicare, Medicaid and Blue Cross Blue Shield of Michigan by submitting claims for pharmaceuticals which Life Care Pharmacy did not actually purchase. Makki and his co-conspirators submitted claims for expensive pharmaceuticals such as Abilify, Seroquel, and Epipen 2-pak Injections. As part of the scheme and, in an effort to conceal the fraud from auditors, Makki created false invoices so that he could falsely claim to the auditors that LifeCare had, in fact, purchased the pharmaceuticals. In doing so, Makki and his co-conspirators caused more than $9.8 million in loss by obtaining reimbursements for the pharmaceuticals they never actually purchased.
“Fraud by health care professionals will be aggressively pursued by our office,” said US Attorney Ison. “We hope that prosecutions like this one will deter health care professionals from stealing money from those who genuinely need it to order to line their own pockets.”
“Healthcare fraud impacts the cost and availability of healthcare resources for every American,” said Acting Special Agent in Charge Josh P. Hauxhurst of the FBI’s Detroit Field Office. “We encourage the public to help us identify, investigate, and prosecute this crime. If you suspect healthcare fraud, report it to the FBI at [email protected], 1-800-CALL-FBI, or contact your health insurance provider.”
“When pharmacists and other medical professionals enrich themselves by submitting fraudulent claims to Federal health care programs, they undermine the trust and confidence that beneficiaries and patients place in their hands,” said Special Agent in Charge Mario M. Pinto. “Our agency will continue to hold medical professionals accountable, while protecting the programs intended for those that depend on them for life saving medication and critical services.”
Co-defendant Hossam Tanana, 57, pleading guilty to money laundering proceeds obtained from the scheme in November 2021. He is awaiting sentencing. The remaining co-defendants, Wansa Makki, and Mahmoud Makki, are awaiting trial.
The case was investigated by Special Agents of the HHS and FBI, with cooperation and assistance from the Michigan Department of Health and Human Services - Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Philip A. Ross.
Northeast Philly Tax Preparer Pleads Guilty to 29 Counts of Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Eric Amaefuna, 65, of King of Prussia, PA, pleaded guilty to engaging in a multi-year scheme to assist clients with filing false income tax returns in order to fraudulently increase the amount of the refund they received.
In April 2021, the defendant was charged by Indictment with 29 counts of aiding and assisting in the preparation of false income tax returns. At the time of the charged conduct, Amaefuna was the owner of American Financial Stewardship (AFS), a tax preparation business on Bustleton Avenue in Northeast Philadelphia. According to the Indictment, Amaefuna prepared false and fraudulent IRS Personal Income Tax 1040 Forms for client taxpayers for at least tax years 2014 through 2016. The defendant added attachments to the 1040 Forms that were also false, in that they claimed false or inflated employee business expenses, inflated state and local taxes, false or inflated miscellaneous deductions, and losses that were entirely fictitious or falsely inflated. These falsities resulted in the filing of personal income tax returns claiming refunds due to the client taxpayers which they were not entitled to receive.
“Our system of taxation relies upon taxpayers contributing their fair share to the federal government, and preparers are supposed to help them do that by accurately reporting income and expenses,” said U.S. Attorney Williams. “The defendant manipulated his clients’ tax filings to suit their own needs at the expense of honest taxpayers. This case is an important reminder to take seriously the legal obligation to file complete and accurate federal income tax returns as we start the 2022 tax season.”
“As we approach the start of the tax filing season, it is important that taxpayers are very diligent when it comes to filing an accurate tax return,” said IRS Criminal Investigation Special Agent In Charge Yury Kruty. “For those who choose to use a tax return preparer, filing an accurate tax return starts with staying clear of unscrupulous tax return preparers. Remember, YOU as the taxpayer, are ultimately responsible for filing a timely, complete, and accurate tax return.”
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Nigerian Nationals Sentenced for Role in Money Laundering ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced two Nigerian nationals yesterday for their role in an international money laundering conspiracy, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Anna M. Manasco sentenced Paulinus Ebhodaghe, 40, of Clementon, New Jersey to 46 months in prison. Ebhodaghe pleaded guilty to conspiracy to commit money laundering in September 2021. Ohimai Asikhia, 37, of Glassboro, New Jersey, was sentenced to 18 months in prison. Asikhia pleaded guilty to conspiracy to commit money laundering in March 2021.
“The defendants helped cybercriminals obscure the source of their ill-gotten gains and squirrel away fraud proceeds in overseas accounts,” U.S. Attorney Escalona said. “Citizens are urged to carefully scrutinize any email directing the transfer of money via wire. I would like to thank the FBI for their hard work in tracking down and bringing these defendants to justice.”
“Business email compromise is one of the most financially damaging online crimes,” SAC Sharp said. It exploits the fact that so many of us rely on email to conduct business—both personal and professional. If you or your company fall victim to BEC, it’s important that you act quickly and notify your financial institution. Then, immediately file a report with the FBI’s Internet Crime Complaint Center, at www.ic3.gov.”
According to court documents, from June 2018 through November 2018, Ebhodaghe and Asikhia helped launder hundreds of thousands of dollars in fraud proceeds. During the course of the conspiracy, they would receive wire transfers from business email compromise, romance scam, and other fraud victims; move the fraud proceeds between bank accounts to disguise their origin and conceal their fraudulent nature; and then wire the proceeds to bank accounts in Nigeria or use them to purchase automobiles that were shipped overseas. Ebhodaghe and Asikhia typically received fees of twenty percent or more of the funds that they laundered.
The FBI investigated the case, which was prosecuted by Assistant U.S. Attorney Edward J. Canter.
Newark Physician and West New York Man Charged with $3.4 Million Health Care and Wire Fraud Conspiracy, Money Laundering, and Making False StatementsRead the Press Release
CAMDEN, N.J. – A Newark physician and West New York man are scheduled to make their initial appearances today on charges of defrauding New Jersey state and local health benefits programs and other insurers out of more than $3.4 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Philip R. Sellinger announced.
Kaival Patel, 53, of West New York, New Jersey, and Saurabh Patel, M.D., 51, a Woodbridge, New Jersey, resident, are charged in a 12-count indictment with conspiracy to commit health care fraud, and wire fraud and four counts of health care fraud. Kaival Patel is also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The defendants appeared today by videoconference before U.S. Magistrate Judge Sharon A. King and were released on $250,000 each unsecured bond.
According to the indictment:
Kaival Patel and his wife – referred to in the indictment as “Individual 1” – operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. Saurabh Patel is a medical doctor who owned and operated a clinic – referred to in the indictment as “Medical Practice 1” – in Newark. Saurabh Patel is related to Kaival Patel and Individual 1. Paul Camarda, a pharmaceutical sales representative who is listed as a conspirator, pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice and is awaiting sentencing.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Kaival Patel, Saurabh Patel, Camarda, and others learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compounded medications. The defendants submitted fraudulent insurance claims for prescription compounded medications to a pharmacy benefits administrator, which provided management services for certain insurance plans that covered state and local government employees. The defendants steered individuals recruited to receive medications from the compounding pharmacies to Saurabh Patel’s medical practice, which enabled him to fraudulently receive insurance payments for those patient visits and procedures. The conduct caused the benefits administrator to pay out $3.4 million in fraudulent claims.
The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the false statement count carries a maximum penalty of five years in prison – all of these counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. The money laundering charges carry a maximum term of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.
U.S. Attorney Sellinger credited special agents of the IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Jersey Man Indicted in Fraud Scheme to Steal California Unemployment Insurance BenefitsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 15-count indictment today against Eric Michael Jaklitsch, 40, of Elizabeth, New Jersey, charging him with wire fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
On Dec. 8, 2021, Jaklitsch was arrested on a federal criminal complaint at his home in New Jersey. He made his initial appearance in the District of New Jersey and was ordered detained for transport to the Eastern District of California.
According to court documents, between October 2020 and December 2021, Jaklitsch executed a scheme to defraud the California Employment Development Department (EDD) by filing at least 78 fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance and other benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. During the scheme, Jaklitsch collected personally identifiable information (PII) of numerous individuals — including names, birth dates, and Social Security numbers — and used their identities to file fraudulent unemployment insurance claims. The filings represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These unemployment insurance claims were fraudulent because, for example, the claimants were not unemployed, they were not eligible for California unemployment insurance benefits, or Jaklitsch did not have authority to file claims on their behalf.
Since at least October 2021, EDD has partnered with ID.me — a private company used by the EDD for ID verification of claimants — to implement a system for verifying claimant identities before EDD can process unemployment insurance claims. An internal investigation conducted by ID.me identified Jaklitsch as a person conducting a fraud scheme and referred the case to federal law enforcement.
In executing his fraudulent scheme, Jaklitsch also submitted false information to ID.me that allowed his fake and stolen identities to be verified. This false information included images of fake driver’s licenses that contained photos of Jaklitsch and the names of the purported claimants. He also submitted live photos of himself that were used to verify the photos on the fake driver’s licenses. Once these false identities were verified, Jaklitsch filed the fraudulent unemployment insurance claims with EDD under the same identities.
In the fraudulent unemployment insurance applications, Jaklitsch requested that the unemployment insurance benefits be mailed to various addresses under his control, including his residence in New Jersey. EDD approved dozens of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing unemployment insurance benefits. Jaklitsch then activated the EDD debit cards and used them to withdraw the benefits at ATMs throughout New Jersey. The scheme sought over $2,500,000 in unemployment insurance benefits and caused EDD and the United States to incur actual losses exceeding $900,000.
This case is the product of an investigation by the Federal Bureau of Investigation, the Department of Labor – Office of the Inspector General, the Department of Homeland Security – Office of the Inspector General – Covid Fraud Unit, and the California Employment Development Department (EDD) – Investigation Division. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
If convicted, Jaklitsch faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each of the 14 wire fraud counts. He also faces a two-year mandatory prison sentence if convicted of aggravated identity theft, which must run consecutive to any sentence received on the wire fraud counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Modesto Man Charged with Drug Trafficking, Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Joshua David Harrington, 35, of Modesto, charging him with one count of being a felon in possession of a firearm and two counts of possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 2, 2021, Harrington discarded a backpack with two firearms while fleeing from law enforcement officers. Harrington is a convicted felon prohibited from possessing firearms and ammunition. Officers also located methamphetamine possessed by Harrington for distribution in the garage at his residence. On Aug. 14, 2021, Harrington possessed methamphetamine with the intent to distribute it in Modesto.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Harrington faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on the felon in possession charge, and a mandatory minimum of 10 years in prison up to a maximum statutory penalty of life in prison and a $10 million fine on each drug trafficking count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Minneapolis Man Pleads Guilty to the Armed Robberies of Two Gas Stations and a HotelRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to the armed robbery of two Speedway gas stations and a Super 8 Hotel, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on February 4, 2020, Keanu Dewone Ross, 30, entered a Speedway gas station in Columbia Heights, pulled what appeared to be a firearm, and demanded cash from the register and the safe. Ross stole $140 in cash, various tobacco products, and several lottery tickets, before fleeing the scene in a waiting vehicle parked several blocks away with his co-defendant, Antoinette Deniece Mae Dobyne, 30. On February 12, 2020, Ross entered a Speedway in Fridley, pulled what appeared to be a firearm, and demanded cash from the register. Ross ordered the employee to the ground and kicked the employee in the face. Ross left the store with more than $700 in cash, tobacco products, and lottery tickets. On three separate days in February, surveillance camera footage showed Ross and Dobyne cashing some of the stolen lottery tickets at two different gas stations.
According to court documents, on February 14, 2020, Ross and another man were driven to the area of the Super 8 Hotel in Brooklyn Center by Dobyne in her SUV. The men entered the hotel and ordered a hotel employee to the ground at gunpoint. Ross and the other man took the employee’s cell phone and car keys, and over $550 cash from the business. The men then told the employee to run from the scene. As the employee fled on foot, he heard multiple gunshots. Officers recovered a discharged cartridge casing at the scene of the robbery. Surveillance camera footage showed the two men committing the robbery as described by the employee. The footage also showed the two men running from the hotel toward an SUV and then fleeing on foot after the SUV got stuck in a snowbank. BCPD officers located Dobyne in the SUV. A warrant-authorized search of the SUV revealed Ross’s wallet and identification, and a black duffle bag full of various tobacco products.
According to court documents, later that same day, Ross was detained during a traffic stop by officers with the Minneapolis Police Department. Officers confiscated a Taurus Model PT738 .380-caliber semiautomatic pistol that was found on Ross’s person. Subsequent forensic ballistics analysis using the discharged cartridge casing recovered at the scene of the robbery revealed that the confiscated firearm was the same one that was fired at the Super 8 Hotel.
Ross pleaded guilty yesterday before Senior U.S. District Judge David S. Doty to three counts of aiding and abetting interference with commerce by robbery and one count of using, carrying and discharging a firearm during and in relation to a crime of violence. On October 25, 2021, Dobyne pleaded guilty to one count of aiding and abetting interference with commerce by robbery. Sentencing hearings for the defendants will be scheduled at a later date.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was the result of an investigation conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Minneapolis Police Department, the Bureau of Criminal Apprehension, the Brooklyn Center Police Department, the Columbia Heights Police Department, and the Fridley Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Martinsburg man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dehaven Darnell Craig, of Martinsburg, West Virginia, was sentenced today to 100 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Craig, age 34, pleaded guilty in February 2020 to one count of “Unlawful Possession of Firearm.” Craig, prohibited from having a firearm because of a prior conviction, admitted to having a .380 caliber pistol in April 2018 in Jefferson County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Maribel Sex Offender Indicted for the Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on January 19, 2022, a federal grand jury returned an indictment alleging that Smedley D. Butler (age: 50) of Maribel, Wisconsin, received and possessed child pornography in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and 2252A(a)(5)(B).
According to the indictment, Butler is required to register as a sex offender under Wisconsin law due to a 2009 Manitowoc County conviction for possessing child pornography. Given his status as a sex offender, he faces a mandatory 15 years’ imprisonment and up to 40 years’ imprisonment if convicted of the receipt of child pornography charge. He faces a mandatory ten years’ imprisonment and up to 20 years’ imprisonment if convicted of the possession of child pornography charge. Butler could also be fined up to $250,000 on each count.
This case was investigated by the Manitowoc County Sheriff’s Office, the City of Manitowoc Police Department, and the Wisconsin Department of Justice, Division of Criminal Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Malden Man Sentenced for Crack Cocaine and Firearms OffensesRead the Press Release
BOSTON – A Malden man was sentenced yesterday in connection with possessing 100 grams of crack cocaine for distribution and numerous firearms.
Alberto Junior Lopez, 27, was sentenced by Senior U.S. District Court Judge Mark Wolf to five years in prison and five years of supervised release. On June 10, 2020, Lopez pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (crack cocaine) and one count of possession of a firearm with an obliterated serial number.
This case arose from a search of the Lopez’s Malden residence in November 2018 pertaining to a September 2018 drive-by shooting in Revere in which he was a suspect. The search resulted in the recovery of numerous firearms including a Colt .45 automatic firearm with an obliterated serial number, a Glock .45 automatic firearm, two loaded Glock magazines, numerous rounds of other ammunition and a bag containing about 94 grams of crack cocaine and more than $3,000 in cash, among other items.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division, made the announcement. Valuable assistance was provided by the Malden and Revere Police Departments. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Leader of Complex International Fraud and Money Laundering Ring Sentenced to 14 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James Moody has sentenced Mary Kathryn Marr (42, Miami) to 14 years in federal prison for conspiracy to commit money laundering. The Court also ordered Marr to forfeit various assets, which are traceable to proceeds of the offense and, as part of her sentence, entered a money judgment in the amount of $1.5 million, representing proceeds Marr received as a result of the charged criminal conduct. In addition, the Court ordered Marr to pay restitution to victims in the amount of $14,511,754.05. Marr pleaded guilty in June 2021.
According to court documents, Marr was the leader of a large, international fraud and money laundering ring that operated out of the United States and abroad. Marr contracted with various international “boiler rooms” to launder fraud proceeds that she and other conspirators had obtained from foreign victims, primarily by selling worthless investments. Marr and her conspirators employed a mass-marketing scam in which high-pressure sales techniques originating out of the boiler rooms were used to defraud individuals who believed that they were investing substantial amounts of money in regulated financial products or markets, particularly shares of stocks. In reality, the investments were a sham and the victims received nothing. The majority of the victims that Marr and her conspirators targeted were located in Australia, New Zealand, the United Kingdom, and countries in Asia.
Marr and her co-conspirator, Michel Marc Chateau, who was charged in the same case, operated a network of funnel bank accounts in the United States in the names of shell companies into which the boiler room agents instructed victims to send their money. In some instances, Marr, using fake personas, spoke with the victims herself to convince the victims to send additional funds based on fraudulent representations and high-pressure tactics. The victims’ funds were then laundered through more bank accounts and sent overseas. Marr and Chateau recruited various individuals to open and operate funnel bank accounts in Florida and other states.
Electronic communications obtained during the investigation revealed that Marr had received a set percentage of each victim’s wire transfer that had been sent to the bank accounts in the United States. Once the victims’ funds had been laundered through Marr’s network of bank accounts in the United States, Marr would arrange for most of the funds to be sent back to the boiler rooms and their employees overseas.
In total, Marr and her co-conspirators unlawfully obtained approximately $14.5 million from victims through various boiler room fraud schemes between 2015 and 2018. Including funds that had originated from other funnel accounts, the accounts engaged in money laundering transactions totaling more than $20 million.
On November 1, 2018, Serbian authorities arrested Marr in Belgrade, Serbia pursuant to an INTERPOL Red Notice that had been issued by the U.S. Department of Justice. Marr was extradited to Tampa in April 2019.
“Thanks to a collaborative investigative effort between HSI and the IRS-Criminal Investigation, this sophisticated transnational money laundering organization was dismantled,” said HSI Tampa acting Assistant Special Agent in Charge Timothy Westlove.
“This sentence should stand as a warning to those who engage in nefarious activities,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “As proven by this partnership with HSI, we will continue to work together to bring criminals to justice. Marr's sentencing is the final chapter in this complex international scam, which will hopefully pave the way to the healing process for all of those impacted by these heinous crimes.”
This case was investigated by Homeland Security Investigations and Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Patrick Scruggs. Assistant United States Attorneys James Muench and Suzanne Nebesky handled the forfeiture. The Justice Department’s Office of International Affairs worked with law enforcement partners in Serbia to secure the arrest of Marr in Serbia and her extradition to the United States.
Lafourche Parish Man Pleads Guilty to Violating the Federal Controlled Substance ActRead the Press Release
NEW ORLEANS, LOUISIANA – DONTRELL MATHEWS, age 42, a resident of Thibodaux, Louisiana, pled guilty before U.S. District Judge Carl J. Barbier to a one-count superseding bill of information charging him with distribution of a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, on July 31, 2018, Special Agents with the Drug Enforcement Administration used a confidential source to make a controlled purchase of approximately 27 grams of methamphetamine from MATHEWS. As a result of his plea, MATHEWS faces up to a maximum term of imprisonment of twenty years’ imprisonment, a fine of up to $1,000,000.00 and at least three years of supervised release following any term of imprisonment. MATHEWS must also pay a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the federal Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Kings County Man Charged with Distributing Fentanyl and Methamphetamine Through the U.S. MailRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Martin Cervantes, 26, of Corcoran, charging him with four counts of distributing narcotics and one count of possessing methamphetamine with the intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October to December 2021, Cervantes mailed three packages each containing over 500 grams of fentanyl powder and one package containing over 2,000 grams of methamphetamine from post offices in Fresno. The packages were destined for addresses in the Midwest, but were intercepted. On January 6, 2022, Cervantes also possessed over 500 grams of methamphetamine with the intent to distribute it.
This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Cervantes faces a mandatory minimum of 10 years in prison up to a maximum statutory penalty of life in prison and a $10 million fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
KC Man Sentenced to 21 Years for Meth Trafficking at Camdenton HotelRead the Press Release
JEFFERSON CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for possessing methamphetamine to distribute when officers found large amounts of illegal drugs in his room at a Camdenton, Mo., hotel.
Anthony Martinez Harris, 49, was sentenced by U.S. District Judge Brian C. Wimes to 21 years and 10 months in federal prison without parole.
On Sept. 29, 2021, Harris was found guilty at trial of one count of possessing methamphetamine with the intent to distribute.
On Sept. 26, 2019, employees at the Sleep Inn on Highway 54 called Camdenton police officers to remove Harris, who was under the influence of drugs and stayed past checkout time. When officers arrived and contacted Harris, who was locked out of the room, hotel staff opened the room door. Officers saw a large amount of cash on the room’s bed and a line of cocaine on the coffee table. Officers searched the room and found three-quarters of a kilogram of methamphetamine packaged for sale, a distribution amount of heroin, cocaine, PCP, and marijuana, three loaded pistols, and more than $22,000 in cash.
Harris was questioned by a Camden County, Mo., sheriff’s deputy who arrived to assist the officers. When officers searched the room they found an oblong object wrapped in camouflage fabric, which Harris identified as C-4 explosive. Officers immediately contacted the Missouri State Highway patrol bomb squad and began evacuating the hotel. The substance was later determined not to be an explosive.
After the area was deemed safe, officers searched Harris’s hotel room and found a bag in a dresser drawer that contained approximately 28 grams of methamphetamine, a bag on one of the beds that contained approximately seven grams of cocaine, a Ziploc bag on another bed that contained 18 bags of approximately 37 grams of heroin/opiates, a Dollar General bag on the same bed that contained approximately 224 grams of methamphetamine, a Ziploc bag on the bed that contained small bags of marijuana. a, and a brown leather bag that contained 10 tablets of Oxycodone Hydrochloride, nine Ziploc bags that each contained approximately one gram of heroin/opiates, and a Ziploc bag that contained approximately 28 grams of cocaine. Officers also found a Springfield Armory sub-compact 9mm handgun and a loaded magazine, a Glock 9mm handgun and a loaded magazine, a Glock .40-caliber handgun and a loaded magazine, additional ammunition, and assorted drug paraphernalia.
Officers also searched Harris’s vehicle and found a Black Dawn Armory custom-made AR-15-style .223-caliber rifle loaded with a 30-round magazine in the trunk. Officers also found a plastic bag that contained 581 ecstasy tablets and additional ammunition in the vehicle.
According to court documents, Harris tried to bribe a hotel employee and the police officer who responded to the incident. At trial, Harris committed perjury in his testimony by denying knowledge of the methamphetamine in the hotel room and denying being aware of the presence of firearms.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn and Special Assistant U.S. Attorney Heather Richenberger. It was investigated by the Drug Enforcement Administration, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol and the Lake Area Narcotics Enforcement Group.
Jury convicts Dayton businessman of fraudRead the Press Release
DAYTON, Ohio – A federal jury has convicted a Dayton businessman of crimes related to the fraudulent diversion of funds from an insurance claim.
Brian Higgins, 50, was found guilty of three counts of mail fraud and two counts of witness retaliation.
The verdict was announced today following a trial that began on Jan. 10 before U.S. District Judge Thomas M. Rose.
According to court documents and trial testimony, in 2014 and 2015, Higgins filed an insurance claim in connection with water damage to the Meeker Creek Residence, an 8,000 square-foot house in Dayton. Higgins received more than $100,000 in insurance claims that he used for his personal benefit rather than to repair water damage that occurred from a large fish tank.
Higgins used money disbursed on the claim to pay for personal expenditures, such as funding a new restaurant space, paying telephone bills, spending money at a casino, and other personal expenses, rather than paying for bona fide repairs and restoration of the home.
The defendant submitted invoices and repair cost estimates from a construction vendor to his mortgage company, falsely representing that he intended to buy these products to repair his house.
Higgins then diverted the money to himself and paid for travel, hotels and dining out, among other personal expenses. Higgins used a fraction of the funds from the claim to complete small, cosmetic repairs in an attempt to cover up his scheme.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Dave Yost's Ohio Bureau of Criminal Investigation (BCI) announced today’s verdict. Deputy Criminal Chief Brent G. Tabacchi and Assistant United States Attorney Rob Painter are representing the United States in this case.
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Judge sentences Cape Girardeau, Missouri woman for Medicare and Medicaid fraudRead the Press Release
ST. LOUIS – Brandy McKay, 42, of Cape Girardeau, Missouri appeared before United States District Court Judge Stephen R. Clark on January 18, 2022. McKay previously pleaded guilty and was sentenced to 3 years imprisonment and ordered to pay $7,520,779.00 in restitution.
According to the plea agreement, between 2017 and 2019, McKay owned or managed multiple durable medical equipment (DME) companies, including three located in Cape Girardeau, Missouri. The DME companies paid kickbacks for orders and prescriptions signed by telemedicine doctors and nurse practitioners, who in almost all cases did not examine the patients, had no contact with the patients, and did not otherwise determine that the patients needed durable medical equipment.
The DME companies then submitted reimbursement claims to Medicare and Medicaid. Based on the fraudulent claims submitted by McKay and her co-conspirators, Medicare and Medicaid reimbursed the DME companies for the medically unnecessary equipment. In many cases, patients received DME equipment from several DME companies, none of which they had requested or needed.
“Submitting false claims for medically unnecessary equipment diverts funding from the necessary services required to support beneficiaries of federal health care programs,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General. “OIG will continue to work with our law enforcement partners to identify and hold accountable individuals who choose to waste vital taxpayer dollars by participating in health care fraud schemes.”
This case was investigated by the U. S. Department of Health and Human Services, Office of the Inspector General, the U. S. Department of Defense, Defense Criminal Investigative Services and the Federal Bureau of Investigation.
Jesup Man Sentenced to Federal Prison for Failing to Forward Taxes He Withheld from His Employees' PaychecksRead the Press Release
A former business owner who withheld federal taxes from his employees’ paychecks but did not forward the money withheld to the Internal Revenue Service (“IRS”) was sentenced today to 21 months in federal prison.
Mark Warm, age 57, from Jesup, Iowa, received the prison term after a September 2, 2021 guilty plea to one count of willful failure to pay over employment taxes to the IRS.
In a plea agreement, Warm admitted that he was the owner of Warm Trucking, Incorporated and was responsible for the company’s finances. Warm admitted that, from 2013 through 2019, he was responsible for withholding income taxes and Federal Insurance Contributions Act (“FICA”) taxes from the pay of Warm Trucking employees and was responsible for forwarding those withholdings to the IRS. However, Warm admitted that for those seven tax years, he failed to forward the money he withheld from his employees’ pay to the IRS, even though he knew he was required to do so. In the plea agreement, Warm admitted he also failed to pay to the IRS other taxes owed by Warm Trucking. In total, Warm failed to send the IRS more than $1,400,000 in taxes owed by Warm Trucking.
Warm was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Warm was sentenced to 21 months’ imprisonment. He was ordered to make $1,406,561.66 in restitution to the IRS. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“Mr. Warm’s failure to pay employment taxes for seven years was an attempt to dodge his obligations to his employees and to the United States,” said United States Attorney Sean Berry. “Our system and our citizens depend upon employers like Mr. Warm to pay what they owe in employment taxes. This sentence shows that willfully failing to do so is a crime and there will be consequences.”
“Today’s sentencing sends a message that paying both individual and business taxes is an obligation you will be held to. When Mr. Warm made the decision to evade paying his employment taxes, he made a conscious decision to cheat his employees and all law abiding tax-payers,” said IRS-Criminal Investigation Special Agent in Charge, Tyler Hatcher of the St. Louis Field Office. “As the 2022 tax season gets underway, IRS-CI wants it to be clear that, along with the Department of Justice, we will investigate and hold accountable those who cheat our tax system and cause harm to others.”
Warm was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1023.
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Jacksonville pharmacist, pharmacy owner admit to charges related to illegally filling drug prescriptions issued by south Georgia doctorRead the Press Release
BRUNSWICK, GA: A pharmacist and a pharmacy owner await sentencing after pleading guilty to charges related to a conspiracy to unlawfully dispense controlled substances.
Gilbert Nelson Weise, Jr., 58, of Jacksonville, Fla., faces up to five years in prison after pleading guilty to a charge of conspiracy to dispense controlled substances without a legitimate medical purpose and not in the usual course of professional practice, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Weise also faces substantial financial penalties and up to three years of supervised release after completion of any prison term. There is no parole in the federal system.
“As demonstrated through this investigation, pill-mill clinics cannot thrive without pharmacists willing to fill their unlawful prescriptions,” said U.S. Attorney Estes. “Pharmacists have an obligation to scrutinize suspicious controlled substances and ensure they are issued for legitimate purpose. In this case, not only did the defendant negligently ignore the presence of red flags, but he also knowingly and intentionally agreed to fill prescriptions that he knew to be unlawful and appropriately is being held to account.”
As described in court documents, from on or about Oct. 9, 2014 to June 13, 2017, in Camden County, in the Southern District of Georgia, in the Middle District of Florida, and elsewhere, Weise and others conspired to dispense hydromorphone, oxycodone, and hydrocodone, among other drugs, for no legitimate medical purpose and outside the usual course of professional practice, in violation of federal law. The prescriptions in question were issued at a nominal pain management clinic known as Coastline Physical Medicine and Rehabilitation, Inc. in St. Mary’s, Ga. The physician at Coastline – who was charged in the indictment but subsequently judged incapable of standing trial – routinely dispensed controlled substances not for a legitimate medical purpose and not in the usual course of professional practice and in so doing generated significant amounts of cash. Between Oct. 9, 2014 and June 13, 2017, drug-seeking customers typically paid approximately $300 cash to Coastline in exchange for prescriptions. To enable more patients to fill their prescriptions, a co-conspirator contacted Weise, Jr., who agreed to fill Coastline’s prescriptions at Weise Prescription Shop located in Jacksonville, Fla.
Given the high volume of Coastline’s prescriptions, a second pharmacy known as Coastal RX Pharmacy also began filing Coastline’s prescriptions. The co-owner of Coastal RX Pharmacy, Amy G. Taylor, 42, of Jacksonville, also awaits sentencing after pleading guilty to an information charging Misprision of Felony. Specifically, Taylor agreed that she had knowledge of and concealed the unlawful conspiracy and did not report that knowledge to a lawful authority, in violation of federal law. This charge carries a statutory maximum sentence of three years in prison, along with substantial financial penalties and a one-year term of supervised release.
“Dispensing addictive prescription pain medication under the guise of a doctor’s care puts greed above an individual’s specific health needs and the trust of the community,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Individuals like Weise and his associates who are involved in this ‘pill mill’ activity are nothing more than drug dealers who are licensed to wear white coats and fill prescriptions. Thanks to a concerted effort from our law enforcement partners, south Georgia and its surrounding communities are safer today.”
The case was investigated by the DEA and the Southern District of Georgia U.S. Attorney’s Office Investigator Charles Sikes and prosecuted for the United States by Assistant U.S. Attorneys Greg Gilluly, Mathew Josephson and Karl Knoche.
Insurance Producer Charged with Failing to Remit $29.5 Million in Payroll TaxesRead the Press Release
NEWARK, N.J. – A Suffern, New York, insurance producer was arrested today for failing to pay $29.5 million dollars in payroll and unemployment taxes, and benefit plan fraud, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 62, is charged by indictment with 18 counts of willful failure to pay over employment taxes – totaling $29.1 million – two counts of evasion of unemployment taxes – totaling $367,027 – and two counts of failing to file annual financial reports (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored. He is scheduled to appear by videoconference today before U.S. Magistrate Judge André M. Espinosa.
The indictment charges that Joseph Schwartz, the principal owner of Skyline Management Group LLC (Skyline), with its headquarters in New Jersey, willfully failed to pay over Employment and Unemployment taxes relating to the employees at 95 health care and rehabilitation facilities he operated in eleven different states.
According to the indictment:
In late 2016, Schwartz and at least one other individual controlled the financing and staffing for Skyline’s various health care facilities around the country, and approximately 15,000 employees who worked there. From mid-2017 through June 2018, Schwartz failed to pay over $29.5 million in payroll and unemployment taxes to the IRS.
Schwartz is also alleged to have failed to file annual financial reports (Form 5500) with the Department of Labor relating to Skyline’s 401K Retirement Plan Contributions that are automatically withdrawn from an employee’s gross pay and invested according to the employee’s own choices. Form 5500 annual financial reports are publicly available and provide participants with the details of the plan's financial condition, its operation, and its investments.
Each count of willful failure to collect, account for, and pay over employment taxes and tax evasion is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. The two counts of evasion of unemployment taxes are punishable by a maximum of five years in prison and a maximum fine of $100,000. Each count of 401K benefit plan fraud is punishable by a maximum of 10 years in prison and a $100,000 fine.
U.S. Attorney Sellinger credited Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents and investigators of the U.S. Department of Labor, Employee Benefit Security Administration, under the direction of Thomas Licetti, Regional Director of the New York Office; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Organized Crime/Gang Unit and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Illinois Attorney Sentenced to Two Years in Federal Prison for Bankruptcy FraudRead the Press Release
ROCKFORD — An Illinois attorney has been sentenced to two years in federal prison for committing bankruptcy fraud.
U.S. District Judge Iain D. Johnston imposed the sentence Wednesday on KEVIN O. JOHNSON, also known as “K.O. Johnson,” 55, of Sycamore, Ill.
A jury in August convicted Johnson on bankruptcy fraud and other charges after a two-week trial in federal court in Rockford. The charges related to Johnson’s Chapter 7 bankruptcy proceeding initiated on Dec. 31, 2011.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Trustee’s Madison, Wisc., and Chicago offices provided substantial assistance. The government was represented by Assistant U.S. Attorneys Matthew Schneider, Michael Love, and Michael Beckman.
ID thief who bought personal information with Bitcoin sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Houston man has been ordered to prison after fraudulently purchasing two expensive vehicles using information purchased on the dark web, announced U.S. Attorney Jennifer B. Lowery.
Jay Patrick Morgan pleaded guilty Oct. 21, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 24-month sentence to be immediately followed by one year of supervised release. Morgan was also ordered to pay $31,409.37 restitution to compensate for damages and the diminished value of the recovered property.
“Today’s sentencing is a reminder that the Secret Service is committed to aggressively investigating and pursuing financial crimes,” said Resident Agent in Charge Brian J. Gibson. “Identity theft investigations remain a top priority for us in our mission to protect this nation’s financial intuitions. The success in this case demonstrates the investigative capabilities of the Secret Service and the collaborative efforts with our law enforcement partners.”
On March 8, 2019, Morgan purchased a 2015 Ford F250 Platinum Edition
pickup truck, valued at more than $59,000. The following week, he also purchased a 2019 Rockwood 5th Wheel recreational vehicle (RV), valued at more than $57,000 from a dealer in the Corpus Christi area. In both instances, Morgan financed the total value of each vehicle by falsely providing the Social Security number and other identifying information of another individual with a similar name.
The victim later contacted authorities after discovering numerous credit inquiries and several new credit accounts he had not requested, including those used to purchase the pickup truck and RV. The investigation confirmed the victim had not opened any of the credit accounts and no payments had been made on any of the accounts. Both the pickup truck and the RV were listed as solen vehicles.
In August 2019, local authorities conducted a traffic stop on the stolen pickup. Morgan was driving.
He admitted he acquired the pickup truck using a Social Security number he had purchased with Bitcoin currency from a site on the dark web. Morgan also admitted to fraudulently using the same information to purchase an RV which he had subsequently sold to another individual.
Morgan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation with the assistance of police departments in Corpus Christi and Deer Park. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Huntington Man Pleads Guilty to Selling Pound of MethamphetamineRead the Press Release
HUNTINGTON, W.Va. – A Huntington man, Trevor Davis, 29, pleaded guilty to distribution of methamphetamine.
According to court documents and statements made during the plea hearing, on January 9, 2020, Davis met an informant in the parking lot of the Wendy’s restaurant on 16th Street in Huntington. Davis admitted to selling the informant one pound of methamphetamine for $4,000.
Davis faces at least five years and up to 40 years in prison when he is sentenced on May 2, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the West Virginia State Police Drug and Violent Crime Task Force West.
United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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. 3:21-cr-00177.
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Hudson County Man Charged with Online Enticement of a Minor and Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was charged today with enticing a minor victim online to produce images and videos of sexually explicit conduct, and producing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, is charged by complaint with one count of enticement of a minor to engage in criminal sexual conduct and one count of production of child pornography. He is scheduled to appear by videoconference later today before U.S. Magistrate Judge André M. Espinosa.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage with two underage victims in sexually explicit conversations. Solis ultimately instructed both victims to take sexually explicit photographs and videos of themselves and send them to him. At least on one occasion, one of the victims complied.
The count of online enticement carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $250,000 fine. The count of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to these charges. He also thanked the Weehawken Police Department and Hudson County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Howard Man Charged with Production of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Howard, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography.
Lee James Thames, age 26, was indicted on January 4, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 16, 2021, and April 29, 2021, Thames knowingly employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing that such depictions would be transported in interstate or foreign commerce or mailed, and such visual depictions would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The charge is merely an accusation and Thames is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Thames was remanded to the custody of the U.S. Marshals Service pending trial which has been set for March 22, 2022.
Hollywood Executive Pleads Guilty to Defrauding New York Investment Fund of over $30 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM SADLEIR pled guilty to two counts of wire fraud in connection with his participation in two schemes relating to investments made by a New York-based investment fund (the “Fund”) in Aviron Pictures, LLC and its affiliated entities (collectively, “Aviron”). SADLEIR is scheduled for sentencing on May 10, 2022, at 10:30 a.m., by U.S. District Judge Paul A. Engelmayer, who presided over yesterday’s plea.
U.S. Attorney Damian Williams said: “William Sadleir used his talent for selling stories to con a New York investment fund out of over $30 million using a fake company, fake documents, and even a fake identity. In a brazen plot that could be ripped from one of the films he distributed, Sadleir even made up a character that he named ‘Amanda Stevens,’ and masqueraded as her in an effort to get away with his fraud. We called a wrap on Sadleir’s scheming, and he now faces significant time in federal prison.”
According to the Complaint, Indictment, and other court filings:
The Fund is a publicly traded, closed-end investment fund. Shares in the Fund trade on the New York Stock Exchange. As of in or about December 2019, the Fund had approximately $649.1 million in assets.
WILLIAM SADLEIR was the chairman and chief executive officer of Aviron, and oversaw its operations from in or about 2015 until in or about December 2019. Aviron participated in the distribution of a number of films in the United States, including My All American (2015), Kidnap (2017), The Strangers: Prey at Night (2018), A Private War (2018), Destination Wedding (2018), Serenity (2019), and After (2019).
SADLEIR engaged in two fraudulent schemes relating to an approximately $75 million investment made by the Fund in Aviron.
In one of the schemes (the “Advertising Scheme”), SADLEIR misappropriated millions of dollars in funds from Aviron that had been invested in Aviron by the Fund. SADLEIR represented to the Fund that this money had been invested by Aviron in pre-paid media credits with the advertising placement company MediaCom Worldwide (“MediaCom”), which is a subsidiary of the advertising and media agency GroupM Worldwide. Instead, using the bank account for a sham entity he had created, SADLEIR illicitly transferred out of Aviron over $25 million of those funds. Specifically, SADLEIR created a sham New York-based company called GroupM Media Services, LLC (the “Sham GroupM LLC”) designed to appear to be the legitimate entity, GroupM Worldwide, and a corresponding bank account in the name of that sham entity. SADLEIR then used a significant portion of those illicitly transferred funds for his personal benefit, including to purchase a private residence in Beverly Hills for approximately $14 million. SADLEIR then falsely represented to the Fund that Aviron had purchased an approximately $27 million balance in pre-paid media credits with MediaCom that were available to promote future Aviron films, and pledged a portion of those credits to the Fund as collateral for additional loans, when in fact the claimed credits did not exist. As part of these false representations, SADLEIR also created a fake identity of a purported New York-based female employee of the Sham GroupM LLC named “Amanda Stevens” who corresponded with a representative of the Fund, assuring the Fund that Aviron had an approximately $27 million balance in pre-paid media credits with the Sham GroupM LLC. But SADLEIR himself posed as Amanda Stevens when engaging in email exchanges with a representative from the Fund.
In the other scheme (the “UCC Scheme”), SADLEIR engineered the illicit and fraudulent sale and refinancing of assets worth over $3 million that secured the Fund’s loans to Aviron. The Fund had secured its investment in Aviron by, among other means, obtaining UCC liens in 2017 and 2018 on certain intellectual property and other assets relating to Aviron’s films. In 2019, SADLEIR used the forged signature of one of the Fund’s portfolio managers on releases to remove the Fund’s UCC liens on certain of these secured assets. SADLEIR did so in order to sell or refinance the assets without the Fund’s consent, thus depriving the Fund of its collateral on outstanding loans. Aviron ultimately defaulted on those loans.
* * *
SADLEIR, 67, of Beverly Hills, California, pled guilty to two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jared Lenow and Elizabeth Hanft are in charge of the prosecution.
High-Speed Motorcycle Chase on I-75 that Resulted in Two Injured Deputies Leads to Pair Pleading Guilty to Distributing MethRead the Press Release
MACON, Ga. – Co-defendants who led law enforcement on a motorcycle chase on I-75 at speeds of up to 150 mph, resulting in two deputies being struck and injured by a passing car during the pair’s arrest, have pleaded guilty to distributing nearly three kilograms of methamphetamine.
John Terrell Johnson, 34, of Jackson, Georgia, pleaded guilty to possession with intent to distribute more than five grams of methamphetamine on Monday, Jan. 10 and Tosha Danielle Kidd, 31, of Conyers, Georgia, pleaded guilty to possession with intent to distribute methamphetamine on Tuesday, Jan. 18, before U.S. District Judge Tilman “Tripp” Self. Johnson faces a mandatory minimum of five years up to a maximum 40 years in prison to be followed by at least four years of supervised release and a maximum $5,000,000 fine. Kidd faces a maximum 20 years in prison to be followed by at least three years of supervised release and a maximum $1,000,000 fine. Johnson and Kidd are scheduled for sentencing on April 5, 2022. There is no parole in the federal system.
“John Johnson’s poor decision to lead officers on a perilous chase, coupled with Tosha Kidd’s choice to flee on foot after two deputies were injured in the line of duty, endangered the public and easily could have cost lives, including their own,” said U.S. Attorney Peter D. Leary. “Thanks to the bravery displayed by the Monroe County Sheriff’s deputies and a concerned citizen, Johnson and Kidd were caught and will face the consequences of their decision to distribute methamphetamine in Middle Georgia.”
“We appreciate the strong relationship we have with the U.S. Attorney’s Office as we work together to make our community safer,” said Monroe County Sheriff Brad Freeman.
According to court documents, on Dec. 12, 2020, at nearly 9:00 p.m., Monroe County Sheriff’s Office deputies noticed a motorcycle speeding southbound on I-75 near Forsyth. The motorcycle was driven by Johnson, with Kidd riding as the passenger and carrying a camouflage backpack. The pair fled when officers attempted to pull them over, reaching speeds of up to 150 mph while weaving through traffic and using the emergency shoulder to pass other motorists. Eventually, with the help of a civilian motorist, law enforcement blocked Johnson’s motorcycle and brought it to a halt on the side of I-75. Two of the deputies, focused on subduing Johnson, were injured when a passing motorist accidentally struck their patrol vehicles. Kidd seized the opportunity for escape and fled on foot. As she ran, she dumped the camouflage backpack. She was eventually taken into custody near the site where Johnson’s motorcycle had been stopped, and the backpack was recovered. The backpack contained nearly three kilograms of 99% pure methamphetamine, or 2,935 grams. Johnson, a convicted felon, was illegally carrying a stolen handgun in his pocket and $1,075 in cash. The deputies struck by a car in the line of duty sustained physical injuries requiring treatment at the hospital.
A few months prior to this incident, Johnson was arrested under similar circumstances. On Sept. 29, 2020, Monroe County Sheriff’s deputies spotted Johnson speeding on a motorcycle and attempted to conduct a traffic stop; Johnson fled from officers. Deputies were able to bring Johnson to a stop and found a 9mm semi-automatic pistol secured to his shoulder holster plus 11.944 grams of methamphetamine, a digital scale and two smoking devices in a bag clipped to the motorcycle’s handlebars. Johnson told officers he was a convicted felon who had been selling drugs for a long period of time and had bought numerous guns during that time. Johnson also admitted that fleeing from pursuing officers is “just what you do” when possessing drugs. Johnson has two prior felony convictions in Newton County and Butts County, Georgia.
The case was investigated by DEA with the assistance of the Monroe County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Joy Odom prosecuted the case for the Government.
High Speed Chase in Mono County Results in Drug Trafficking Charges for Nevada WomanRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Elizabeth Marie Acuna, 34, of Sparks, Nevada, charging her with possession with intent to distribute cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 22, 2021, a law enforcement officer observed Acuna driving over 90 mph on Highway 395, in an unincorporated area of Mono County. The officer initiated a traffic stop by activating his overhead lights. In response, Acuna slowed her speed but did not immediately pull over. Instead, she drove her vehicle over the double yellow lines, driving north in the southbound lanes of the highway, before coming to a stop. Acuna admitted to the officer that she had drugs in the back of her vehicle. A subsequent search located 762.3 grams of cocaine wrapped in two cellophane packages.
At the time of the stop, Acuna was on federal pretrial release on a pending August 2021 drug charge in Oregon.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the California Highway Patrol. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Acuna faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Harrison Man Sentenced to 40 Years in Prison for Sexual Offenses Against MinorsRead the Press Release
BAY CITY – A Harrison man was sentenced to 480 months (40 years) in federal prison after having pleaded guilty to charges of sexual exploitation of children and for engaging in the sexual exploitation of children while required to register as a sex offender, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Sentenced before United States District Court Judge Thomas L. Ludington was Nathanial Alexander Tessner, 29.
According to court records, Tessner met the 14-year-old victim online and caused her to create sexually explicit images as well as meeting her in person and having sexual contact with her. Tessner also caused the victim to create sexually explicit images of herself with a dog and coerced her to create sexually explicit images of a 3-year-old child. Tessner committed those offenses while he was required to register as a sex offender under federal or other law.
“The actions of this defendant are truly reprehensible,” said US Attorney Ison. “Today’s sentence sends a clear message that we will prosecute individuals who prey on our most vulnerable – our children- to the maximum extent allowed by law. “
“This case demonstrates the commitment of the FBI and our law enforcement partners to protect the children in our communities from recidivist sex offenders like Mr. Tessner,” said Acting Special Agent in Charge Josh P. Hauxhurst of the FBI’s Detroit Field Office. “These are serious crimes that inflict great harm on some of the most vulnerable members of our society and the serious consequences imposed on this defendant are an important signal to would-be offenders that they will be found and brought to justice.”
The case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Grand Jury - January 2022Read the Press Release
United States Attorney Jan W. Sharp announced the federal Grand Jury for the District of Nebraska has returned 13 unsealed Indictments charging 16 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Torey Lee Benson, age 40, of Norfolk, Nebraska, is charged with possession with intent to distribute 500 grams or more of methamphetamine on or about November 27, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Jarrett Turner Chappelear, age 25, of Fremont, Nebraska, is charged in a two-count Indictment. Count I charges Chappelear with distribution of 50 grams or more of methamphetamine (actual) on or about October 29, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Chappelear with possession of a firearm in furtherance of a drug trafficking crime on or about October 29, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Terry L. Dill, age 38, of Grand Island, Nebraska, is charged with failure to register as a sex offender after traveling in interstate commerce on or about September 30, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment.
* Jose Alfredo Ek-Poot, age 49, of San Francisco, California; Esteban Dejesus Huerta Rocha, age 41, of San Francisco, California; and Ricardo Jiminez-Noveno, age 29, are charged with possession with intent to distribute 500 grams or more of methamphetamine on or about November 4, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment
* Nicholas J. Franks, age 44, of Council Bluffs, Iowa, is charged in a three-count Indictment. Count I charges Franks with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about July 1, 2021 and continuing to on or about December 8, 2021. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment. Count II charges Franks with distribution of 50 grams or more of methamphetamine (actual) on or about October 27, 2021. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment. Count III charges Franks with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about December 8, 2021. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment.
* Erin Leigh Gehrig, age 39, of Alma, Nebraska, is charged with possession of a stolen firearm on or about April 13, 2021 and continuing to on or about May 4, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Melissa Grantski, age 50, of Utica, Nebraska, is charged in a seven-count Indictment. Counts 1-7 charge Grantski with willful failure to pay over tax beginning on or about 2015 and continuing to on or about 2017. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Armando Ibarra, age 48, of Hastings, Nebraska is charged in a four-count Indictment. Count I charges Ibarra with conspiracy to distribute 500 grams or more of methamphetamine on or about August 1, 2019 and continuing to on or about May 26, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Ibarra with aid and abet possession with intent to distribute 500 grams or more of methamphetamine on or about November 15, 2019. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges Ibarra with distribution of 5 grams or more of methamphetamine (actual) on or about March 30, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count IV charges Ibarra with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about May 19, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Raymond E. McGaugh, age 30, of Omaha, is charged in a two-count Indictment. Count I charges McGaugh with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about June 27, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges McGaugh with possession of a firearm in furtherance of a drug trafficking crime on or about June 27, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment
* Marco Antonio Mejia, age 46, of Lincoln, Nebraska, is charged with illegal alien in possession of a firearm on or about August 18, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Ruben Pena Avila, is charged with illegal reentry after deportation on or about December 28, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Luis Miguel Rodriguez-Ponce, is charged with illegal reentry after deportation on or about June 21, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Amy Shepherd, age 42, of Wichita, Kansas, and Johnny Bradford, II, age 50, of Lancaster, California, are charged in a four-count Indictment. Counts 1-4 charge Shepherd and Bradford with wire fraud beginning on or about 2018 and continuing to on or about 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Fresno Parolee Indicted for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Desmond Lamar Divine, 20, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 8, 2021, Divine fled from officers when they spoke with him. A gun fell from his pocket as he fled. Divine was on parole at that time, and because of his prior felony convictions, he is prohibited from possessing firearms.
This case is the product of an investigation by the Fresno Police Department, Homeland Security Investigations, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Divine faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Four Indicted in Tulare County-Based International Drugs and Firearms Trafficking RingRead the Press Release
FRESNO, Calif. —Four defendants who were Sureno gang members and associates have been indicted today by a federal grand jury in Fresno, U.S. Attorney Phillip A. Talbert announced.
Jonathan Gallegos, 31, of Ivanhoe; Andres Perez, 19, of Visalia; Jesus Angulo, 33, of Woodlake; and Malachai Serrano, 31, of San Antonio, Texas, have been indicted for distributing methamphetamine (Gallegos and Perez), conspiring to distribute and possess with intent to distribute methamphetamine (Gallegos, Perez, and Serrano), using a firearm during and in relation to a drug trafficking offense (Gallegos, Perez, and Serrano), conspiring to use a firearm during and in relation to a drug trafficking offense (Gallegos, Perez, Serrano), and possessing with intent to distribute cocaine (Gallegos and Angulo).
A team of local, state, and federal law enforcement officers recently partnered in an investigation of the Tulare County Surenos. During the investigation, law enforcement discovered that Gallegos and Angulo were traveling to Southern California and into Mexico to obtain illegal drugs, including kilograms of cocaine. Gallegos and Perez were then shipping kilograms of illegal drugs from the local post office in Ivanhoe to residences associated with Serrano, in San Antonio. Serrano and his associates were then selling those illegal drugs in Texas and using some of the proceeds to purchase firearms. Serrano is a felon and cannot lawfully buy firearms himself. He was directing others in Texas to buy firearms for him. Serrano and his associates then shipped firearms back to Gallegos and Perez in California, as payment for the narcotics they had received. Gallegos planned to sell those firearms to his drug suppliers. Gallegos is also a felon who cannot lawfully possess firearms.
Over 8 kilograms of cocaine, several pounds of marijuana, and more than 20 firearms were seized.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Tulare County Sheriff’s Office; the Tulare County Area Regencies Gun Enforcement Team; the Visalia Police Department; the California Department of Justice (Bureau of Investigations), the California Highway Patrol (Special Operations Unit), and the Tulare County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case.
If convicted, all four defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory minimum sentences of five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Former Postal Employee Charged with Unlawfully Opening the MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TYRONE DILLING, age 27, of New Orleans, Louisiana was charged with embezzling the mail in a Bill of Information filed today in the Eastern District of Louisiana.
According to documents filed in federal court, DILLING was employed by the United States Postal Service as a letter carrier in New Orleans when he was apprehended after opening and tampering with the content of mail items he was entrusted to handle for the Postal Service.
The maximum penalty for the offense is five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three (3) years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Owner of Illicit Massage Parlor Pleads Guilty to COVID-19 Relief FraudRead the Press Release
BOSTON – The former owner of a massage parlor pleaded guilty today in connection with filing for and obtaining fraudulent pandemic-related loans for her illicit business where workers engaged in commercial sex acts with customers.
Chynna Savath, 56, of Woonsocket, R.I., pleaded guilty to two counts of wire fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 19, 2022. Savath was charged in September 2021.
Savath is the former owner of Thai Body Work, a massage parlor in Franklin, Mass. In June 2020, Savath submitted fraudulent applications to the Small Business Administration for COVID-19 relief through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) program under the Coronavirus Aid, Relief and Economic Security Act. In the applications, Savath falsely certified that the applicant was not engaged in any illegal activity, despite knowing that her employees at Thai Body Work engaged in prostitution with customers and that she collected a portion of fees paid by each customer. In total, Savath obtained $29,646 in fraudulent payments from the EIDL and PPP loan programs.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Acting Commissioner Gregory Long made the announcement. Special assistance was provided by the Cambridge, Boston, Franklin and Lexington Police Departments. Assistant U.S. Attorney Elysa Wan of the Criminal Division and Suffolk County Assistant District Attorneys Alyssa Tochka and Luke Goldworm, who were appointed as Special Assistant U.S. Attorneys, are prosecuting the cases.
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.
Former Member of Connecticut Latin Kings Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Connecticut Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering charges.
Esther Ortiz, a/k/a “Queen India,” 50, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately 72 days in prison) and three years of supervised release. The government recommended a sentence of 21 months in prison. On Oct. 12, 2021, Ortiz pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Ortiz was a member of the Latin Kings and the Latin Kings’ Regional Crown Council. As Regional Crown Council member, Ortiz advised leadership, heard evidence concerning violations of the manifesto and determined punishment for members who violated the rules of the Latin Kings. One such trial, which took place in March 2019, was captured on video. This trial involved complaints against Angel Roldan, a/k/a “King Big A,” the former second-in-command, or Cacique, of the Latin Kings in Massachusetts, who had reportedly robbed fellow gang members of drugs and failed to repay drug debts owed to the leader of the New Bedford Chapter.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Ortiz is the 42nd defendant to be sentenced in the case in the case. Roldan pleaded guilty and was sentenced in July 2021 to seven years in prison.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Greenup County Sheriff Indicted for Fraudulent Use of Law Enforcement FundingRead the Press Release
FRANKFORT, KY- A Murfreesboro, Tenn., man, and former Greenup County Sheriff has been indicted for fraud and theft.
Last week, a federal grand jury sitting in Covington returned an indictment charging 68-year-old Keith Cooper with one count of mail fraud and one count of theft of property from a federally funded agency.
The indictment alleges that from early 2013 through March 2017, Cooper fraudulently obtained over $50,000 in cash, by making withdrawals and failing to deposit money into a bank account used for law enforcement funds.
Additionally, the indictment alleges that Cooper directed Greenup County Sheriff’s Office Deputy Sheriffs to purchase ammunition that did not correspond to firearms issued to them for official duty purposes and then relocate multiple boxes of the ammunition to his private residence. The indictment alleges that Cooper unlawfully retained approximately 35,000 rounds of ammunition, which was purchased with approximately $30,000 in public funds. The indictment also alleges that Cooper used a vehicle and fuel purchased with Greenup County funds to take a variety of personal out-of-state trips.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Daniel Cameron, Attorney General of Kentucky, announced the indictment.
The investigation preceding the indictment was conducted by the FBI and the Kentucky Attorney General’s Office, with the cooperation of the Greenup County Sheriff’s Office. The indictment was presented to the grand jury by Assistant U.S. Attorney Andrew Boone.
A datefor Cooper to appear in court in the Eastern District of Kentucky has not yet been scheduled. He faces up to 20 years of imprisonment for mail fraud and 10 years of imprisonment for theft of public funds, and a maximum fine of $250,000 for each count. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Former Defense Contractor Sentenced to 10 Years for Fraud, Money Laundering & ID TheftRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Craig Klund, 58, Yankton, South Dakota, was sentenced today by U.S. District Judge James D. Peterson to 10 years in federal prison for wire fraud, money laundering, and aggravated identity theft.
Klund, formerly from Chippewa Falls, Wisconsin, pleaded guilty to wire fraud against the U.S. Department of Defense, as well as money laundering by moving in increments over $10,000 the proceeds of his fraud scheme into multiple bank accounts. Judge Peterson imposed a 96-month sentence on each of these counts to run concurrently. Klund also pleaded guilty to aggravated identity theft when he used another’s identity as a nominee owner of one of Klund's defense contracting entities. Judge Peterson imposed a 24-month sentence as to this charge to run consecutive to the concurrent 96-month wire fraud and money laundering sentences. Klund's total prison sentence is 120 months, which will be followed by three years of supervised release. Judge Peterson also ordered Klund to pay $435,822.71 in restitution.
According to the indictment, Klund was a military contractor who supplied electrical parts to the various branches of the U.S. military, including the U.S. Army for the Patriot Missile System and the U.S. Air Force for the F-16 jet fighter. From 2011 through July 17, 2019, Klund executed a scheme to defraud the DoD by obtaining defense contracts under false pretenses.
Klund's fraud scheme included: (1) use of 15 shell corporations to hide his control of entities bidding on DoD contracts; (2) use of multiple aliases; (3) repeated identity theft; (4) collusive bids submitted by multiple Klund entities on the same contract; (5) knowingly shipping nonconforming parts and requesting payment for these parts; (6) signing Federal Acquisition Regulation certificates using fake names; (7) lying to Defense Contract Management Agency (DCMA) inspectors by claiming to be someone other than himself; (8) relocating his business from Wisconsin to South Dakota to evade DCMA inspectors who were questioning his operations in Wisconsin; (9) concealing receipt of DoD proceeds by not reporting these monies on his federal income tax returns; and (10) laundering DoD proceeds by moving the funds between accounts.
Using 15 different shell entities, Klund submitted 5,750 bids and was awarded 1,928 contracts worth $7,468,638. These contracts were for parts for the U.S. Army, Air Force, Navy, and Marine Corps. He was paid $2,905,484 during the fraud scheme.
At today's sentencing, after listening to Klund's allocution, Judge Peterson told Klund he thought Klund was a liar, who lied to the Department of the Defense over a long period of time, and to the judge as well. The judge also noted that Klund was an unusual fraud defendant because Klund had three previous federal felony convictions, two of which were for defense contracting fraud, making his criminal history a very important factor in the judge's sentencing analysis.
Judge Peterson explained that this case involved an extensive fraud scheme that caused significant harm to the government because it was duped into contracting with a two-time convicted defense contracting felon and was receiving parts from someone with whom it did not want to deal. The Court noted that deserving contractors, who played by the rules, were also victimized by Klund's criminal conduct.
In imposing this substantial sentence, Judge Peterson noted the need to protect the public and the U.S. government from a repeated fraudster who is dishonest, and who was supplied defective parts to the military that had the capacity to harm military personnel and the public.
The charges against klung were the result of an investigation conducted by the U.S. Department of Defense - Office of Inspector General, Defense Criminal Investigation Service; General Services Administration - Office of Inspector General; IRS Criminal Investigation; Air Force Office of Special Investigations; Army Criminal Investigation Command, Major Procurement Fraud Unit; and Naval Criminal Investigative Service. Assistant U.S. Attorney Daniel Graber handled the prosecution.
Former Chick-fil-A Employees Sentenced for Scheme to Steal FundsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced two former Chick-fil-A employees for their roles in a conspiracy to defraud their former employer, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
U.S. District Judge Madeline H. Haikala sentenced Larry James Black, Jr., 37, of Center Point to 30 months in prison. Black pleaded guilty to conspiracy to commit wire fraud and bank fraud in September 2021. Joshua Daniel Powell, 40, of Moody was sentenced to 15 months in prison. Powell pleaded guilty to conspiracy to commit wire fraud in June 2021. During the time period charged in the indictment, Black and Powell were both directors at the Chick-fil-A location in the Five Points South neighborhood of Birmingham.
According to the plea agreement, between April 2018 and January 2020, Black and Powell devised and implemented a scheme to divert $492,000 in customer payments away from Chick-fil-A Five Points and direct them instead to bank accounts under their control. Black and Powell used these accounts to receive customer credit card payments intended for Chick-fil-A Five Points. Many of these payments were for catering orders from large customers. To effectuate the scheme, Black and Powell used fraudulent email and digital payment accounts that imitated the look of official Chick-fil-A accounts. In addition to these fraudulent “Chick-fil-A” accounts, Black and Powell also utilized a personal email account belonging to Powell to intercept virtual credit card payments that were made on behalf of an additional customer.
In addition to conspiring to defraud Chick-Fil-A Five Points, Black acknowledged in his plea agreement that he provided a false social security number to various financial institutions and executed a scheme to defraud his mortgage lender. In January 2020, Black applied for a mortgage loan. In connection with his loan application, Black forged payroll records and made misrepresentations regarding his income from the Chick-fil-A franchise. As a result of these material misrepresentations, Black was able to secure a mortgage in the amount of $159,948.00 to finance the purchase of a home in Center Point, Alabama.
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorney Edward J. Canter prosecuted the case.
Former Bank Employee Sentenced to 21 Months in Prison for Conspiracy to Commit Bank FraudRead the Press Release
WASHINGTON – Danielle Bartley, 26, a former Capital One Bank employee from Silver Spring, Maryland, was sentenced today to 21 months in prison for conspiracy to commit bank fraud, a conspiracy that compromised the account information of at least nine bank account holders and sought at least $253,000 in fraudulent withdrawals and transfers.
The announcement was made by U.S. Attorney Matthew M. Graves, Matthew R. Stohler, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Greg L. Torbenson, U.S. Postal Inspector in Charge for the Washington Division, U.S. Postal Inspection Service.
Bartley pleaded guilty in October 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit bank fraud. In addition to the prison term, the Honorable Thomas F. Hogan today ordered her to pay restitution of $50,000 for the losses that were suffered and entered a forfeiture money judgment in the amount of $3,750.
As Bartley admitted in her guilty plea, at the time of the conspiracy in 2017, she worked as a branch associate in Washington, D.C. Between June and August 2017, Bartley and her co-conspirators, including Krishna Jannor-John Marsh, posed as nine different actual bank account holders and sought at least $253,000 in fraudulent withdrawals and transfers. They succeeded in obtaining one $50,000 wire transfer using personal identifiers of an account holder that Marsh purchased on the dark web. Other attempts were stopped, including one by an alert teller.
In September 2018, as part of his broader conspiracy, Marsh was sentenced to 46 months in prison, ordered to pay $338,100 in restitution, and had a forfeiture money judgment of $50,000 entered against him. After initially agreeing to plead guilty in 2018, Bartley fled to Jamaica and was extradited back to the United States in 2021.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Stohler, and Inspector in Charge Torbenson commended the work of those who investigated the case from the U.S. Secret Service and U.S. Postal Inspection Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Paralegal Specialists Joshua Fein and Kristy Penny. Finally, they commended the work of Assistant U.S. Attorney Arvind Lal and former Assistant U.S. Attorney Anthony Saler, who investigated and prosecuted the case.
Florida Study Coordinator Sentenced in Scheme to Falsify Clinical Drug Trial DataRead the Press Release
A federal judge sentenced a Florida man to 30 months in prison today in connection with his participation in a conspiracy to falsify clinical drug trial data.
U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida entered the sentence against Duniel Tejeda, 35, of Clewiston. The court also ordered Tejeda to pay $2.1 million in restitution.
According to court documents, Tejeda worked as a project manager and study manager for a clinical research firm based in Miami called Tellus Clinical Research. As part of his plea agreement, Tejeda admitted that he agreed with others to falsify data in medical records in connection with clinical trials intended to evaluate various medical conditions, including opioid dependency, irritable bowel syndrome and diabetic nephropathy. Among other things, Tejeda falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“Clinical trials help ensure that new drugs are safe and effective for the public,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Falsifying clinical trial data undermines a critical component of the drug approval process. The Department of Justice will continue to work with our partners at the Food and Drug Administration (FDA) to investigate and prosecute anyone who puts personal profit over public health by falsifying clinical trial data.”
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Assistant Commissioner Catherine A. Hermsen for the FDA Office of Criminal Investigations (OCI). “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
FDA OCI is investigating the case.
Trial Attorneys Lauren M. Elfner, Joshua D. Rothman and Matthew M. Ryan of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida has provided critical assistance.
Florida Man Arrested at U.S./Canada Border, Charged with Human SmugglingRead the Press Release
ST. PAUL, Minn. – A federal criminal complaint has been filed against a Florida man charging him with human smuggling, announced Acting United States Attorney Charles J. Kovats.
According to court documents, on January 19, 2022, law enforcement agents with Homeland Security Investigations responded to a request for assistance from the U.S. Border Patrol (USBP) based out of Pembina, North Dakota. USBP initiated a traffic stop on a white-colored, fifteen passenger van less than one mile south of the U.S./Canadian border in a rural area between the official ports of entry located at Lancaster, Minnesota and Pembina, North Dakota. The driver of the vehicle was identified as Steve Shand, 47, a U.S. citizen. Law enforcement asked for identification of the two passengers in the van and determined them to be undocumented Indian nationals.
According to court documents, law enforcement discovered cases of plastic cups, bottled water, bottled juice, and snacks located in the extreme rear of the passenger van. Law enforcement also discovered receipts dated January 18, 2022, for the drinks and snacks, and rental agreement receipts in Shand’s name for the van, with the return date listed for January 20, 2022. USBP arrested Shand for smuggling undocumented foreign nationals. While Shand and the two passengers were being transported to the Pembina Border Patrol Station in North Dakota, law enforcement encountered five additional Indian nationals approximately a quarter mile south of the Canadian border walking in the direction of where Shand was arrested. They appeared to be headed to an unstaffed gas plant located in St. Vincent, Minnesota. The five Indian nationals explained that they had walked across the border expecting to be picked up by someone. The group estimated they had been walking around for over 11 hours. One of the group members was in possession of a backpack that did not belong to him. He stated he was carrying the backpack for a family of four Indian nationals that had earlier walked with his group but had become separated during the night. The backpack contained children’s clothes, a diaper, toys, and some children’s medication.
According to court documents, later during the day on January 19, 2022, USBP received a report from the Royal Canadian Mounted Police that four bodies were found frozen just inside the Canadian side of the international border. The dead bodies were tentatively identified as the family of four that was separated. Two of the surviving Indian nationals sustained serious injuries and were transported to a hospital.
Shand is charged with one count of knowing or in reckless disregard of the fact that an alien had come to, entered, or remained in the United States in violation of law, having transported, and moved or having attempted to transport and move such aliens. He made his first appearance today before U.S. District Court Magistrate Judge Hildy Bowbeer. Shand was ordered to remain in custody pending a preliminary and detention hearing, currently scheduled for January 24, 2022, at 3:00 p.m. before Magistrate Judge Bowbeer.
This case is the result of an investigation conducted by Homeland Security Investigations with assistance from U.S. Customs and Border Protection.
Assistant U.S. Attorney Laura Provinzino is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fitchburg Man Sentenced for Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Pablo Vidarte Hernandez, 48, was sentenced by U.S. District Court Judge Timothy S. Hillman to 81 months in prison and three years of supervised release. On Sept. 20, 2021, Vidarte Hernandez pleaded guilty to conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, electronic communications revealed that Vidarte Hernandez, and others, distributed a fentanyl and heroin mixture on a regular basis to individuals in the Fitchburg area, including to Pedro and Anthony Baez, who redistributed that mixture to others.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine were seized, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000. Vidarte Hernandez was responsible for distributing over a kilogram of a fentanyl and heroin mixture.
Vidarte Hernandez was charged along with 17 others in July 2020. He is the third defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison. Pedro Baez pleaded guilty on Feb. 3, 2021 and is scheduled to be sentenced on May 17, 2022. Six other defendants have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit is prosecuting the case.
The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.