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1 March 2022
New York Man Sentenced to 12 Years’ Imprisonment for $1.3 Million Fraud SchemeRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 28, 2022, Horace Henry. age 45, of New York, was sentenced to 12 years’ imprisonment by U.S. District Court Chief Judge Matthew W. Brann for organizing a scheme to defraud Sprint of $1.3 million that used stolen personal identification information of 390 victims, in 14 states, to fraudulently order over 1,600 iPhones.
According to United States Attorney John C. Gurganus, Henry previously pleaded guilty before Chief Judge Brann to charges of conspiracy to commit mail fraud and aggravated identity theft. Henry and his co-conspirators executed a scheme to defraud Sprint through fraudulent cell phone service contracts that were created using the stolen personal identification information of 390 identity theft victims, resulting in bogus orders for 1,630 iPhone XR cell phones. According to evidence presented at the sentencing, as a result of the fraud scheme approximately 892 iPhones were shipped to locations throughout the United States, including Centre, Northumberland, Montour, and Mifflin Counties. The fraud and identity theft scheme caused Sprint to incur actual and attempted losses totaling approximately $1,338,247. Henry and his co-defendants used shipment tracking numbers to determine when packages containing iPhones were scheduled for delivery, traveled from New York to the individual victims’ residences in Pennsylvania and other states, and retrieved the packages at the delivery locations, or directly from delivery persons using counterfeit identification documents bearing the personal identification information of the individual victims and photos of the conspirators.
In addition to the 12-year prison term, Chief Judge Brann also ordered Henry to serve a three-year term of supervised release upon release from custody, and pay restitution in the amount of $705,803 for cell phones shipped, but not recovered.
Henry was born in Jamaica and resided in New York at the time of the offense. He was previously deported and illegally re-entered the United States without permission. Henry’s co-defendants, Andrew Herdsman and George Bobb, entered guilty pleas and have been sentenced. Federal and state investigators arrested Herdsman in Centre County on January 25, 2019, after he had picked up fraudulently ordered cell phones, during a joint federal and state investigation conducted with the assistance of Sprint’s fraud management unit. On July 26, 2019, Delaware State Police investigators arrested Henry and Bobb in Delmar, Delaware as a result of information from Sprint indicating multiple fraudulent cell phone orders to locations in Delaware and Maryland. Another co-defendant Ian Thompson was arrested on a warrant issued following federal indictment, and he entered a guilty plea on February 17, 2022 and is presently awaiting sentencing.
The case was investigated by Homeland Security Investigations (HSI), the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Spring Township Police Department, Patton Township Police Department, State College Police Department, and the Delaware State Police and Maryland State Police, with the support, cooperation and assistance of Sprint and Sprint Fraud Management. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
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Missouri Man receives 50-year Sentence after Trial for Sexual Exploitation of a MinorRead the Press Release
BENTON, Ill. – A Jefferson County, Missouri, man was sentenced to a total of 600 months in prison on Friday, February 25, 2022, after a federal jury found him guilty in October of 2021 for arranging to have sex with a minor, traveling to pick her up in Belleville, Illinois, and producing sexually explicit images of her.
According to court documents and evidence presented at trial, Earl G. Rice, Jr., 63, chatted online via a dating application with a teenage girl. Rice quickly indicated his interest in traveling to Belleville, Illinois, from Dittmer, Missouri, to meet the victim and engage in sexual acts with her. On Valentine’s Day of 2018, Rice arrived with alcohol, condoms, and a candle to take the victim to a nearby motel. Rice engaged in sexual acts with the victim and produced sexually explicit images of the teen girl on his cell phone. Belleville Police Department apprehended Rice at the scene of the crime.
“Serious crimes deserve serious punishment, and we are very satisfied with the 50-year sentence imposed on Earl Rice. Nothing could be more important than keeping children safe from sex offenders,” said United States Attorney Steven D. Weinhoeft. “This case is another reminder for parents to be vigilant about their kids’ online activity and to monitor the apps on their phones.”
“While this sentence ensures that Rice will never again subject another child to sexual abuse and exploitation, it will not erase the devastating and long-term impact for the victim,” said Special
Agent in Charge David Nanz of the FBI Springfield Field Office. “The FBI remains steadfast in our dedication to identify, investigate and arrest those who seek to harm children. If you suspect a child is or could become a victim of a sexual predator, don’t hesitate to contact local law enforcement or the FBI.”Belleville Police Department conducted the investigation, along with support from the
Illinois State Police, and FBI-Springfield and Saint Louis Divisions.The case was prosecuted by Assistant U.S. Attorneys Ali Burns and Karelia Rajagopal.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about i ternet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Million dollar smuggler sent to prisonRead the Press Release
McALLEN, Texas – A 36-year-old Rio Grande City man has been ordered to federal prison for conspiracy to possess with intent to distribute more than five kilograms of cocaine and bulk cash smuggling, announced U.S. Attorney Jennifer B. Lowery.
Oziel J. Rodriguez pleaded guilty Nov. 15, 2021.
Today, U.S. District Judge Randy Crane ordered Oziel J. Rodriguez to serve a total 180-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard evidence Rodriguez was involved in recruiting at least three other individuals to participate in a drug trafficking organization. In handing down the sentence, the court noted the extensive nature of the drug trafficking organization and Rodriguez’s leadership role in it.
Rodriguez utilized the three individuals to transport at least 30 kilograms of cocaine from Sept. 20, 2019, through June 7, 2020, from the Rio Grande Valley through the checkpoints in South Texas. Evidence gathered during the investigation also revealed that recruited individuals made approximately 50 other trips for the purpose of transporting controlled substances.
In addition to transporting narcotics, Rodriguez also facilitated and coordinated the transportation of drug proceeds to the Rio Grande Valley from northern cities in the United States and the delivery of proceeds to Mexico. On June 7, 2020, law enforcement seized approximately $265,000 of drug proceeds in Jim Wells county. In addition, they later seized $838,481 in drug proceeds from Rodriguez as he attempted to smuggle the proceeds to Mexico.
Rodriguez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Homeland Security Investigations, U.S. Customs and Border Protection and the Jim Wells County Sheriff’s Office. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
The plea is a result of Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Bacon’s Law. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States. It uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Mexican National Sentenced for Transporting Unaccompanied Minor from MexicoRead the Press Release
DEL RIO – A Mexican national was sentenced today to 33 months in prison for illegally transporting an unaccompanied child from Mexico.
According to evidence presented at trial, on July 30, 2019, Victor Manuel Monsivais, 67, was apprehended at 1 a.m. in an HEB parking lot in south San Antonio transporting an unaccompanied 8-year-old child from Mexico. Monsivais intended to give the child back to another person involved in smuggling the child from Mexico into the United States. Special agents with Homeland Security Investigations (HSI), as well as officers from the San Antonio Police Department, were waiting for Monsivais at the HEB based on investigative intelligence about the intended exchange.
On August 19, 2021, Monsivais was found guilty by a federal jury in Del Rio of one count of illegal alien transportation in violation of Section 1324 of Title 8 of the United States Code.
“Today’s sentence reflects the unwavering commitment of our office and that of our valued partners as we continue to work together to vigorously enforce federal law and protect our communities,” said U.S. Attorney Ashley C. Hoff. “I am especially thankful for the determined efforts that went into rescuing the minor child in this case.”
“This sentence serves as an appropriate punishment for Monsivais’ role in the smuggling event. Without law enforcement intervention he would have handed over the child to a stranger, potentially exposing the child to significant danger,” said Shane Folden, Special Agent in Charge, HSI San Antonio. “This case is a glaring reminder that human smugglers are driven by greed and have no regard for the health and well-being of their human cargo. HSI is committed to aggressively targeting smuggling organizations and human smugglers who continually victimize people for profit.”
Co-defendants Elida Kassandra Moreno, 28, a United States citizen and Nery Uriostegui-Dominguez, 28, a Mexican national, pleaded guilty to bringing in and harboring aliens and conspiracy to bringing in and harboring aliens. Moreno was sentenced to 36 months in prison and a $1,000 fine on February 20, 2021. Uriostegui was sentenced to 18 months in prison on April 1, 2020.
HSI with assistance from the San Antonio Police Department investigated the case.
Assistant U.S. Attorneys Joshua Banister and Holly Pavlinski prosecuted the case.
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Man Indicted for Frac Sand Ponzi SchemeRead the Press Release
MIDLAND – Last week a federal grand jury in Midland returned an indictment charging a Keller, Texas man with operating a Ponzi scheme.
According to court documents, Marco Perez, Jr., aka Sully Perez, 41, is the founder and director of Permian Basin Proppants, Inc. (PBP), a company headquartered in Midland that sells proppants such as sand for fracking operations. Between 2017 and 2022, Perez allegedly used PBP to perpetuate a Ponzi scheme by soliciting investor money based on misrepresentations. During this time, Perez took in over $11 million through the scheme. He used most of the funds for his own personal benefit, buying luxury vehicles, property and vacations.
According to the indictment, Perez offered victims the opportunity to fund or invest in PBP transactions. However, the representations Perez allegedly made were based on false and misleading promises, such as promising victims that their investments would be used to purchase frac sand at a discount and then be resold at a profit to fracking operations in and around the Permian Basin. Investors also were promised they would receive back their entire investment plus an additional return. Perez rarely used the investment money to purchase frac sand or complete promised transactions. Instead, he is accused of diverting significant amounts of investor money to pay for his personal expenses and to keep the scheme running, such as by making payments to prior PBP investors.
Perez is charged with 12 counts of Wire Fraud and six counts of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity. The defendant is scheduled for a detention hearing next week before U.S. Magistrate Judge Ronald C. Griffin of the U.S. District Court for the Western District of Texas. If convicted, he faces up to 20 years in prison on each of the wire fraud counts and up to 10 years in prison on each of the money laundering counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey R. Downey, El Paso Division; and U.S. Securities and Exchange Commission (SEC) Regional Director David Peavler, Fort Worth Office, made the announcement.
The FBI and SEC are investigating the case.
Assistant U.S. Attorneys John A. Fedock and Fidel Esparza are prosecuting the case.
If you feel you have been a victim of a fraud scheme, contact the FBI at tips.fbi.gov or call 800-CALL-FBI.
An indictment 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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Madison County Woman Sentenced to 12 Years for $1.6 Million FraudsRead the Press Release
CHARLOTESVILLE, Va. – A Madison County woman was sentenced today to 12 years in prison for perpetrating a scheme in which she stole more than $1.6 million from victims while purporting to have terminal cancer, vast wealth, and connections to celebrities.
Christine Favara Anderson, 51, pleaded guilty in July 2021 to three counts of mail fraud and eight counts of wire fraud. In addition to her prison sentence, Anderson was also ordered to pay $1,615,557.91 in restitution to her victims.
“This defendant spun a web of lies and fraud so varied and extensive, it defies simple summary. At bottom, Anderson stole $1.6 million from victims who had placed their trust in her, and then she invented false excuses – like feigned importance, frozen bank accounts, and terminal illness – so she could hold onto these proceeds without repayment.” United States Attorney Christopher R. Kavanaugh said today. “When victims of the Western District of Virginia suffer from extensive fraud such as this, my Office will always partner with our federal, state and local law enforcement partners to pursue those who perpetrate these crimes and hold them to account for their conduct.”
“Ms. Anderson created elaborate lies about having terminal cancer, vast wealth, and connections to celebrities to gain the trust of her clients and commit her criminal activities. With this guilty plea, Ms. Anderson has finally accepted responsibility for her actions and learned the price of such brazen conduct. Those who were manipulated and suffered losses because of her deceit will see justice served,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said. “FBI Richmond appreciates the partnership of the Madison County Sheriff’s Office and the Western District of the United States Attorney’s Office during this investigation. If you suspect fraud, please report it to tips.fbi.gov or to your local FBI office.”
According to court documents, Anderson owned and operated the publishing companies known as “Christine F. Anderson Publishing and Media” from 2014 through 2017, and “Sage Wisdom Publishing” from 2017 through 2020. Anderson took money from book authors but later failed to pay those authors their royalties as owed and did not provide products and services as negotiated. In addition, Anderson often falsely claimed to have been diagnosed with cancer in order to delay payments to book authors, while also purporting to maintain vast personal wealth and connections to celebrities.
When authors failed to receive the royalty payments they were owed, Anderson made elaborate excuses for the delays, including claiming to be busy working with the White House on the State of the Union address.
In addition to the book publishing scam, Anderson also admitted to orchestrating a real estate scheme where she signed contracts for expensive real estate, provided multiple false proofs of her own funds, but then was unable to provide the earnest money deposits. Often, Anderson would sign checks for earnest money deposits knowing she did not have the funds and the checks would never clear. She convinced other individuals to loan her money for these real estate transactions knowing that she could not and would not ever repay them. Anderson’s excuses for her inability to pay the earnest money deposits and the loans included her false claims of a cancer diagnosis, freezes on her bank accounts, and other ruses.
In April 2005, Anderson was indicted in the Northern District of Illinois for securities fraud. In June 2009, after a plea of guilty, the district court there ordered her to pay $155,000 in restitution. In July 2020, Anderson communicated with the Department of Justice’s Financial Litigation Unit regarding her ability to pay that restitution, and in doing so, made several false statements
The Federal Bureau of Investigation and the Madison County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Kate Rumsey and Madison County Deputy Commonwealth’s Attorney Wade Gelbert are prosecuting the case.
La Crosse Man Sentenced to 9 Years for Methamphetamine Trafficking & Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Nickolas S. Fitzpatrick, 50, La Crosse, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 9 years in federal prison for possessing methamphetamine with intent to distribute and being a felon in possession of a firearm. This prison term will be followed by 3 years of supervised release. Fitzpatrick pleaded guilty to these charges on October 26, 2021.
On April 3, 2021, La Crosse police officers attempted to locate Fitzpatrick due to multiple active arrest warrants. Officers found Fitzpatrick at a La Crosse motel and arrested him following a brief foot chase. After being placed in handcuffs, Fitzpatrick told the officers that he had a gun on him. Officers searched Fitzpatrick and found a Walther P22 handgun, four baggies of methamphetamine, and a pocket scale, all in a purse wrapped around his body. Officers found another bag of methamphetamine in Fitzpatrick’s coat pocket. In total, Fitzpatrick possessed over 60 grams of methamphetamine.
Fitzpatrick was prohibited from legally possessing a firearm due to multiple prior felony convictions. He was on state extended supervision for delivering heroin at the time of this incident. His criminal history includes convictions involving drug trafficking, weapon possession, and violence.
At sentencing, Judge Peterson highlighted the quantity of methamphetamine involved and Fitzpatrick’s prior history with weapons. Judge Peterson expressed concern that Fitzpatrick is capable of dangerous and violent conduct and the sentence ordered was necessary to protect the community.
The charges against Fitzpatrick were the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office assisted in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
KC Man Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who has been involved in several shootings was sentenced in federal court today for illegally possessing firearms.
Zecheriah D. Stewart, 24, was sentenced by U.S. District Judge Howard F. Sachs to nine years in federal prison without parole.
On Jan. 20, 2021, Stewart pleaded guilty to two counts of being a felon in possession of firearms. Stewart admitted that he was in possession of a Glock .40-caliber pistol with an extended clip with 22 rounds of ammunition when he was pulled over by police officers on May 21, 2019. Stewart had a felony probation violation warrant for his arrest and was taken into custody. The firearm had been reported stolen.
Stewart also admitted that he was a passenger in an Infinity FX35 SUV, which officers attempted to stop on Oct. 11, 2019. The Infinity fled from officers, crossed a lane of traffic, sped, disregarded stop signs, and drove erratically until it crashed. Officers placed Stewart, the driver, and another passenger in custody. Officers found a Glock 9mm pistol with an extended magazine inside the vehicle and another Glock 9mm pistol about 15 feet from the vehicle.
According to court documents, in addition to these instances, Stewart was involved in at least two shootings. In the first instance, Stewart was the driver of a vehicle and parked at a gas station in Kansas City, Mo. A passenger in Stewart’s vehicle shot another man and attempted to steal his ATV. In the second instance, Stewart participated in a gunfight at the Discount Smoke & Convenience Store in Raytown, Mo., in which a person was killed. Stewart, who was wounded in the gunfight, fled to a nearby laundromat. Officers found his .45-caliber pistol in a laundry basket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stewart has prior felony convictions for assault (for shooting someone) and two counts of tampering with a motor vehicle.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jury Convicts Two in $499,000 Unemployment SchemeRead the Press Release
ABINGDON, Va. – A federal jury convicted a pair of Southwest Virginia residents yesterday who conspired with at least thirty others in a scheme to defraud the government of more than $499,000.
Wesley William Hickman, 25, of Big Stone Gap, VA, and Marissa Leann Kiser, 27, of St. Paul, VA, were each convicted of conspiracy to defraud the United States, fraud in connection with emergency benefits, conspiracy to commit mail fraud, mail fraud in connection with emergency benefits, and aggravated identity theft.
According to court documents and evidence presented at trial, Hickman and Kiser conspired with Leelynn Danielle Chytka, Gregory Marcus Elmer Tackett, Jeffery Ryan Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits. At the time of his involvement in the scheme, Hickman was incarcerated at the Southwest Virginia Regional Jail and was not entitled to pandemic unemployment assistance. However, Hickman and other jail inmates provided their personal information to Jeffrey Tackett for the purpose of filing fraudulent claims. Kiser provided her personal information to her friend Chytka, who was the ringleader of this widespread conspiracy, for the purpose of filing a fraudulent claim on her behalf.
Over the course of nine months, members of the conspiracy filed fraudulent claims with the Virginia Employment Commission on behalf of at least 37 individuals, with a total actual loss to the United States of at least $499,000. Hickman and Kiser will be sentenced later this summer.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia; Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation made the announcement.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Michael Baudinet prosecuted the case.
Jury Convicts Man of Possession with Intent to Distribute MethRead the Press Release
A man who possessed, with the intent to distribute, methamphetamine was convicted by a jury on February 25, 2022, after a 4-day trial in federal court in Sioux City.
Carmelo Valdez Romero, 35, from Sioux City, Iowa, was convicted of possession with intent to distribute methamphetamine. The verdict was returned following about three hours of jury deliberations.
The evidence at trial showed that on March 17, 2020, Valdez Romero and others possessed with intent to distribute about 20 pounds of methamphetamine. Valdez Romero aided others in the removal of 20 one-pound packages of methamphetamine hidden in the gas tank of a rental vehicle which had traveled from California to rural Dickinson County, Iowa, with the methamphetamine for further re-distribution. Specifically, in a machine shed on the property, Valdez Romero removed the rear seats of the vehicle, removed the fuel pump, as well as other equipment attached to the gas tank and physically helped another retrieve the methamphetamine from the two-part gas tank. During the execution of a search warrant at the property, law enforcement agents seized 15 pounds of methamphetamine from a safe inside the machine shed, and five more pounds of methamphetamine being driven away from the property, including one pound of methamphetamine from the vehicle operated by Valdez Romero. Agents also seized $700 from Valdez Romero and $900 from the other two vehicle occupants, all pre-serialized money used by agents earlier that day to purchase one pound of methamphetamine from Valdez Romero’s drug associate by confidential informants.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Valdez Romero remains in custody of the United States Marshal pending sentencing. Valdez Romero faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4051.
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Judge Orders Freon Smuggler to Pay $250,000Read the Press Release
A Fort Worth man who smuggled freon into the U.S. was ordered to pay a $250,000 fine, announced U.S. Attorney Chad E. Meacham.
Faiz Abdallahi, 56, pleaded guilty in October 2021 to the improper importation of a class II substance, a felony under the Federal Clean Air Act. He was sentenced Tuesday to three years’ probation by Senior U.S. District Judge Terry R. Means.
According to plea papers, Mr. Abdallahi admitted that he smuggled HCFC-22, also known as R-22 refrigerant gas – an ozone-depleting chemical colloquially called freon – into the U.S. without an authorized permit in 2017.
The U.S. Environmental Protection Agency would later phase out production of R-22, which can no longer be produced or imported as of 2020. Only recovered, recycled, or reclaimed supplies of R-22 are currently available, though consumers are not required to stop using R-22 air conditioners.
Mr. Abdallahi admits he arranged for Chinese R-22 to be delivered to the port of Long Beach California and then transported via rail to the Dallas/Fort Worth area disguised as R32 to avoid seizure by the US Customs and Border Protection. His co-conspirator, 53-year-old Severo Zamora, then re-packaged and sold the R-22 to Heating, Ventilation and Air Conditioning (HVAC) companies in the U.S. (Mr. Zamora pleaded guilty in January 2022 to being an accessory after the fact and was sentenced to six months’ probation.)
“The defendant’s intentional disregard for the environment included the illegal sale of hydrochlorflourocarbon-22 (R-22), a restricted substance which not only damages the ozone layer that protects people from the harmful effects of ultraviolet radiation, but also contributes to climate change,” said Todd “Tony” Adams, Assistant Special Agent in Charge of the EPA’s Southwest Area criminal enforcement program. “EPA and our federal partners continue to hold accountable companies and individuals that place public safety and the environment at risk.”
The investigation was conducted by the U.S. Environmental Protection Agency’s Criminal Investigation Division and Homeland Security Investigations. Assistant U.S. Attorney Douglas Allen prosecuted the case.
Jashawn Hunter Indicted for Firearms and Drug Trafficking OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Jashawn Hunter, 34, of Hartford, Connecticut, was indicted on Thursday, February 24 by a federal grand jury with two charges of unlawful possession of firearms and one charge of possessing narcotics with intent to distribute them. Hunter is currently detained on related state charges. He has not yet been scheduled to appear in federal court. The government has moved for Hunter’s continued detention pending trial.
According to court records, Hunter was arrested following an investigation into a brutal beating that occurred in St. Johnsbury in September 2021. Hunter had been staying at the victim’s residence to conduct drug trafficking activities. When Hunter learned that the victim no longer wanted Hunter to stay there, Hunter beat the victim with a revolver and with his fists. The victim, who suffered a fractured cheekbone and received stitches for his injuries, ultimately escaped out a bathroom window. Approximately a week later, law enforcement located Hunter, who threw a bag he had been carrying before he was apprehended. Within the bag were approximately 4.7 grams of fentanyl, approximately 32 grams of cocaine base, a scale, and a Smith and Wesson .45 caliber handgun. Law enforcement also recovered the gun Hunter is believed to have used in the beating: a Smith and Wesson .38 caliber revolver. Hunter is prohibited from possessing firearms due to his criminal history.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Hunter remains presumed innocent until and unless he is convicted of a crime. If convicted, Hunter faces up to 20 years imprisonment on the drug trafficking count and up to 10 years imprisonment on each firearms count. Any actual sentence would be determined by the Court with reference to the advisory Federal Sentencing Guidelines and the United States Code.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police and St. Johnsbury Police Department and collaboration with the Caledonia County State’s Attorney’s Office in this matter. “The United States Attorney’s Office remains focused on apprehending violent criminals and keeping our communities safe. We will continue to collaborate with our local, state, and federal law enforcement partners to both address potential violence before it occurs and to hold individuals accountable for criminal conduct with firearms.”
The United States is represented in this matter by Assistant U.S. Attorneys Eugenia A.P. Cowles and Nicole P. Cate. Attorney information for defendant Hunter is not yet available.
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. See https://www.justice.gov/psn
Inmate indicted for assault chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Billy Moore, a former inmate at USP Hazelton in Bruceton Mills, West Virginia, was indicted today on an assault charge, United States Attorney William Ihlenfeld announced.
Moore, 24, was indicted today on one count of “Assault of a Correctional Officer Involving Physical Contact.” Moore is accused of assaulting a corrections officer in March 2021 at USP Hazleton.
Moore is facing up to eight years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Indiana Real Estate Developer and Property Manager Admits Ponzi Scheme to Defraud Investors of Millions of DollarsRead the Press Release
NEWARK, N.J. – A property developer and manager from Indiana today admitted his role in a scheme to defraud real estate investors, U.S. Attorney Philip R. Sellinger announced.
Herbert Whalen, aka “Bert Whalen,” 47, of Indianapolis, Indiana, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to the first count in an indictment, charging him with conspiracy to commit wire fraud
“The defendant preyed upon innocent victims’ desire to improve their own financial position through what they thought were sound investments,” U.S. Attorney Sellinger said. “Working with our partners at the FBI, we were able to discover his illegal activity and ensure that he will now face justice for his crimes. Combatting investment fraud remains one of our highest priorities, and this conviction sends a clear message that such conduct will be punished.”
“Investment fraud schemes take many forms and as long as there are trusting people, looking for what seems like a good way to protect and grow their money, these fraudsters will continue to strike,” Special Agent in Charge George M. Crouch Jr. said. “The FBI is constantly on watch for thieves who paint their schemes as golden opportunities to build on your wealth when, in fact, they are only building theirs using your hard-earned money. The best protection is still prevention: do your homework and check multiple websites like FBI, SEC, and FINRA, to confirm legitimacy; don’t believe the hype – if it sounds too good to be true, it probably is; and view any seemingly great opportunity through the lens of skepticism. Lastly, if you suspect fraud, report it to tips.fbi.gov.”
According to documents filed in this case and statements made in court:
From August 2016 to July 2018, Whalen, who operated Oceanpointe Property Management in Indianapolis, engaged in a scheme to obtain money from real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Investors were promised that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and a conspirator directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and another company, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his lifestyle.
The charge of conspiracy to commit wire fraud carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for July 14, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Carolyn Silane of the Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark.
Illinois Man Sentenced for Robbery of Retail Store in Lake DeltonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Cortez Thurmond, 29, Gurnee, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to 8 ½ years in federal prison for robbery of a retail store in Lake Delton, Wisconsin. Thurmond pleaded guilty to this charge on October 20, 2021.
On July 28, 2020, Thurmond and his co-defendant Deon Brown robbed the Alpha Red Studio in Lake Delton. A few minutes later, and less than a mile away, Thurmond and Brown robbed Gifts of the World retail store. Video surveillance from Gifts of the World showed Thurmond and Brown taking money from the store and customers. During the robbery, Brown carried a firearm with an extended magazine and struck a customer in the back of the head with it.
At the time of the robberies, Thurmond was on active state supervision in Illinois for a felony burglary conviction. At the sentencing hearing, Judge Peterson noted that Thurmond had an extensive criminal history including prior convictions for home invasion and burglary. Judge Peterson also noted that he had a duty to protect the public from Thurmond’s “really dangerous offenses.”
Brown pleaded guilty on January 26, 2022 to robbing Gifts of the World with Thurmond. Brown will be sentenced by Judge Peterson on April 20, 2022.
Thurmond and Brown also face federal charges in the Eastern District of Wisconsin, where a grand jury returned an indictment charging Thurmond and Brown with conspiring to rob various commercial establishments in Racine and Kenosha. This indictment was returned by the grand jury on January 11, 2022. With regard to these charges, you are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
The charges against Thurmond and Brown were a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lake Delton Police Department, and the Racine Police Department. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to the distribution of cocaine base, also known as “crack.”
According to court documents, Deandre Antonio Ziegler, 31, who is also known as “Little D,” admitted to distributing cocaine base, also known as “crack,” to an undercover informant on five different occasions in July and August 2020.
Ziegler pleaded guilty to distribution of cocaine base and faces up to 20 years in prison when he is sentenced on June 6, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Cabell County Sheriff’s Department Drug Unit and the FBI’s Southern West Virginia Transnational Organized Crime (TOC) West Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00017.
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Houston Livestock Show and Rodeo to undergo ADA compliance reviewRead the Press Release
HOUSTON – The U.S. Attorney’s Office will conduct a compliance review of the Houston Livestock Show and Rodeo (HLSR) to evaluate accessibility for disabled individuals planning to attend the event, announced U.S. Attorney Jennifer B. Lowery.
The collaborative review stems from complaints the HLSR violated the Americans with Disabilities Act of 1990 (ADA). The allegations include failing to provide accessible parking, accessible seating and accessible routes. The review will be conducted under Title III of the ADA which prohibits private places of public accommodation to discriminate against individuals with disabilities. It will take place over a three-day period during the week of March 7. An accessibility expert will conduct the compliance review, along with representatives from the US Attorney’s Office (USAO) and the HLSR.
Since its beginning in 1932, the HLSR’s website states it has committed more than $550 million to Texas youth and education, including $27 million to scholarships, junior show exhibitors, educational program grants and graduate assistantships. It reports to be one of the largest scholarship providers in the country.
The HLSR also reports that in 2019, it generated a total economic impact of $227 million and total economic activity of $391 million in Greater Houston. Over 2.5 million people attended the Houston Rodeo in 2019.
This year, the HLSR will run from Feb. 28-March 20.
The USAO for the Southern District of Texas is committed to vigorously enforcing the ADA and welcomes public comments or complaints. To file a comment or complaint, or to learn more about the ADA, individuals can contact the U.S. Attorney's Office for the Southern District of Texas at (713) 567-9140 or via email.
Assistant U.S. Attorney (AUSA) Elizabeth Karpati and Executive AUSA Keith Wyatt are handling the matter.
Harrison County man indicted for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Starkey, Jr., of Mount Clare, West Virginia, was indicted today on a firearms charge, United States Attorney William Ihlenfeld announced.
Starkey, 28, was indicted today on one count of “Unlawful Possession of Firearm.” Starkey, a person prohibited from having a firearm because of previous convictions, is accused of having semi-automatic pistol in July 2021 in Taylor County.
Starkey is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Taylor County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hanover Man Sentenced to 15 Years in Federal Prison for Distribution of Fentanyl, Cocaine, and Marijuana Shipped Through the Mail from California to MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Dwight Antonio Pitts, age 47, of Hanover, Maryland, to 15 years in federal prison, followed by five years of supervised release, for his participation in a drug distribution conspiracy involving large amounts of fentanyl, cocaine, and marijuana, shipped through the U.S. Mail from California to Maryland. Pitts admitted that during his participation in the conspiracy, it was foreseeable that he and the other conspirators distributed approximately 8.5 kilograms of fentanyl; approximately 150 kilograms of cocaine; and approximately 50 kilograms of marijuana.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police (MSP); Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service (USPIS) - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office.
According to his guilty plea, since November 2019, the MSP, the DEA, and the USPIS were investigating a drug trafficking conspiracy involving Pitts, Michael Fisher (a.k.a. Mark Wilson), and others, that was distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. Investigators used court-authorized wiretaps to intercept calls and other communications between Pitts, Fisher, and other conspirators in which they discussed drug distribution with each other and with other individuals. Investigators also conducted surveillance of drug transactions conducted by both Pitts and Fisher.
During the conspiracy, Pitts and Fisher traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Pitts or Fisher used the U.S. Mail to ship the narcotics back to Maryland for distribution.
Between May and August 2020, U.S. postal inspectors interdicted several parcels from the mail, including two parcels bound for an address in Hyattsville, Maryland that was leased by Pitts. On August 13, 2020, a search warrant was authorized for the two parcels. Law enforcement recovered more than two kilograms of cocaine from one parcel and more than two kilograms of fentanyl from the other parcel. Investigators obtained video surveillance from the El Segundo Branch Post Office, from which the parcels had been mailed. The video showed Pitts at the post office at the time the parcels were mailed.
On August 13, 2020, investigators obtained consent to search Co-Conspirator 2’s residence in Los Angeles after watching Fisher transfer a box containing approximately $190,020 in cash to Co-Conspirator 2’s car. Law enforcement recovered from the residence two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained more than $193,980 in narcotics proceeds, not including the approximately $190,020 Fisher provided to Co-Conspirator 2 earlier that day.
On August 17, 2020, law enforcement executed search warrants at the six locations in Maryland associated with Pitts and Fisher and at a residence in Las Vegas, Nevada. Investigators seized 15 firearms—6 firearms from locations associated with Pitts and 9 firearms from locations associated with Fisher—along with kilogram quantities of cocaine, fentanyl, and marijuana. In total, during the investigation law enforcement seized approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Pitts admitted was proceeds from the sale of narcotics.
As detailed in the plea agreement, additional evidence, including evidence seized from searches on cellular phones of conspirators and CCTV footage, showed that between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles area Post Offices to locations in Maryland.
Co-defendant Michael Fisher, age 47, of Laurel, Maryland, pleaded guilty to the same charges and is awaiting sentencing.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The overdose crisis continues to devastate our state and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the website for United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness here.
United States Attorney Erek L. Barron commended the MSP, USPIS, and DEA for their work in the investigation and recognized the Los Angeles Police Department, the Los Angeles and Las Vegas DEA, and the USPIS Phoenix Division-Las Vegas, Nevada for their assistance. Mr. Barron thanked Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who prosecuted the case.
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Former Family Practitioner Sentenced to Prison for Illegally Dispensing Drugs and Health Care FraudRead the Press Release
PITTSBURGH, PA - A former physician who operated private family practices in Perryopolis, Pennsylvania, and Mount Pleasant, Pennsylvania, has been sentenced in federal court to 18 months’ incarceration, followed by three years supervised release, and ordered to pay a $5,000 fine on his conviction of violating federal narcotics and health care laws, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Emilio Ramon Navarro, 60, of Coal Center, Pennsylvania.
According to the information presented to the court, Navarro, a licensed physician in the Commonwealth of Pennsylvania, operated private family practices in Mount Pleasant and Perryopolis. In 2018, Navarro issued Victim 1 nine prescriptions for a total of 300 dosage units of Oxycodone and 240 dosage units of Oxymorphone, both Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose. Rather, Navarro forced Victim 1 to engage in sexual acts with him prior to issuing her these prescriptions to which he caused her to be addicted. Navarro thereby caused the submission of fraudulent claims to Medicaid for reimbursement for the unlawfully prescribed prescriptions thereby defrauding Medicaid.
Prior to imposing the sentence, Judge Ranjan stated, “There are victims involved and they have suffered lasting impacts.”
“Today’s sentence holds Dr. Navarro accountable for his illegal activities,” said U.S. Attorney Chung. “I will continue our office’s tenacious pursuit of unscrupulous doctors who exploit the addictions of patients for personal gratification and then cause our healthcare system to be defrauded.”
“Dr. Navarro had a clear disregard for medical integrity,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “He preyed on victims struggling with addiction and traded drugs for sex. The FBI will continue to work with our partners to hold accountable those who abuse their positions of trust.”
“When Dr. Navarro prescribed opioid prescriptions in exchange for sexual favors, he abandoned his duty as a physician and recklessly discarded the health and safety of his patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services. “Together with our law enforcement partners, our agency will continue to uproot such egregious fraud schemes that threaten public health and wastes taxpayer dollars.”
“Navarro held a position of trust in his community and his patients depended on him to provide medical care,” said AG Shapiro. “He will now face consequences for showing no regard for the health and safety of his patients, illegally prescribing drugs that have fueled the opioid crisis here in Pennsylvania, and defrauding our Commonwealth's Medicaid Program. The Office of Attorney General's arrests of prescribers who divert prescription drugs are up 135% since 2016. We will continue to work with our partners to seek out those who put lives at risk and hold them accountable.”
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.
The investigation leading to the prosecution of Emilio Navarro was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania
OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.Former Delaware Doctor Sentenced to 20 Years in Prison for Unlawfully Distributing Opioid PillsRead the Press Release
A former Delaware doctor was sentenced today to 20 years in prison for unlawful drug distribution and maintaining a drug-involved premises.
Patrick Titus, 58, of Milford, was convicted by a federal jury in July 2021 of 13 counts of unlawfully distributing and dispensing controlled substances and one count of maintaining a drug-involved premises.
“This sentence is a reminder that the Department of Justice will hold accountable those doctors who are illegitimately prescribing opioids and fueling the country’s opioid crisis,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Doctors who commit these unlawful acts exploit their roles as stewards of their patients’ care for their own profit.”
According to court documents and evidence presented at trial, Titus unlawfully distributed or dispensed a variety of powerful opioids – including fentanyl, morphine, methadone, OxyContin and oxycodone – outside the usual scope of professional practice and not for legitimate medical purposes. Titus operated an internal medicine practice where he frequently prescribed these dangerous controlled substances in high dosages, sometimes in combination with each other or in other dangerous combinations, mostly in exchange for cash. Evidence at trial showed he distributed over 1 million opioid pills. Although these Schedule II drugs are approved for pain management treatment, Titus provided no meaningful medical care and instead prescribed these controlled substances to patients he knew were suffering from substance use disorder and/or who demonstrated clear signs that the prescribed drugs were being abused, diverted or sold on the street.
“DEA-registered medical practitioners have an important role in our communities to treat patients compassionately and responsibly,” said DEA Administrator Anne Milgram. “Today’s sentencing makes clear that medical professionals who recklessly prescribe opioids and endanger the safety and health of patients will be held accountable. I applaud the outstanding investigative work conducted by DEA’s Wilmington Resident Office Tactical Diversion Squad and the Department of Justice’s prosecution of the case.”
“As we continue the fight against the opioid crisis, this case serves as an important reminder that health care professionals have a duty to prescribe medication responsibly to ensure the well-being of individuals under their care. Failing to do so can endanger patients and undermines critical, ongoing public health measures,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to hold bad actors accountable.”
The DEA and HHS-OIG investigated the case.
Assistant Deputy Chiefs Aleza Remis and Justin Woodard and Trial Attorney Claire Sobczak of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Edmond Falgowski of the District of Delaware assisted with the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this Program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Five Tax Shelter Promoters and Two Appraisers Indicted in Syndicated Conservation Easement Tax SchemeRead the Press Release
A federal grand jury sitting in Atlanta, Georgia, returned a superseding indictment on Feb. 24 charging seven individuals with conspiracy to defraud the United States and other crimes arising out of their promotion of fraudulent tax shelters involving syndicated conservation easements dating back nearly two decades. One of the defendants, Herbert Lewis, was previously charged in an indictment returned on June 9, 2021.
According to the superseding indictment, Jack Fisher, an Atlanta certified public accountant (CPA); James Sinnott; Yekaterina Lopuhina, aka “Kate Joy;” Lewis, an Atlanta-area CPA; Victor Smith, an Atlanta-area CPA; Clayton Weibel, a licensed appraiser; and Walter D. Roberts II, aka “Terry Roberts,” a licensed appraiser, engaged in a conspiracy to design, market and sell false and fraudulent charitable contribution tax deductions to high-income clients. Fisher and Sinnott allegedly caused partnerships to donate conservation easements over land owned by the partnerships. In conjunction with those donations, Fisher and Sinnott allegedly used two hand-picked appraisers, Weibel and Roberts, to generate fraudulent and inflated appraisals of the conservation easements that frequently valued the easements at amounts at least 10 times higher than the price that was actually paid for the partnership — often within months of the appraisals. According to the superseding indictment, the partnerships then claimed a charitable contribution tax deduction in the inflated amount of the conservation easement, resulting in a fraudulent tax deduction flowing to the clients who purchased units in the partnership.
Fisher, Sinnott, Joy, Lewis, Smith and other co-conspirators allegedly promoted, marketed and sold partnership units for $25,000 and guaranteed at least a 4-to-1 tax deduction ratio to their clients, which meant that four units with a total cost of $100,000 would yield a $400,000 tax deduction. The marketing materials allegedly stated, for example, that depending on their personal tax rate, such a $400,000 deduction could result in the client receiving $170,000 back within months of purchasing their units for $100,000. Fisher, Sinnott and Joy allegedly provided Roberts and Weibel with spreadsheets containing information purportedly used to value the conservation easements necessary to deliver the tax deduction ratio promised to their clients.
The superseding indictment charges that the syndicated conservation easement transactions were abusive tax shelters lacking in economic substance or a business purpose. Despite Fisher, Sinnott and Joy allegedly attempting to disguise the transactions as real estate deals, the indictment alleges that the transactions were simply the illegal sale of inflated tax deductions. Additionally, Fisher, Sinnott, Joy, Lewis and Smith allegedly helped clients claim charitable contribution tax deductions after the close of the tax year by accepting late sales, generating backdated documents and preparing, and causing the preparation of, false and fraudulent tax returns and false documents, among other items. In total, the defendants allegedly sold over $1.3 billion in false and fraudulent tax deductions through this scheme.
All defendants are charged with conspiring to defraud the United States, for which they face a maximum sentence of five years in prison. In addition, Fisher, Sinnott, Joy, Roberts and Weibel are charged with one count of conspiracy to commit wire fraud, for which each faces a maximum sentence of 20 years in prison if convicted. Lewis and Smith are both charged with wire fraud, for which they each face a maximum sentence of 20 years in prison for each count. Fisher, Sinnott, Lewis, Smith, Roberts and Weibel are charged with aiding and assisting in the preparation of false returns related to the syndicated conservation easement tax shelters, for which they face a maximum sentence of three years in prison for each count. Fisher, Sinnott, Joy and Lewis are also charged with filing false personal tax returns, for which they each face a maximum sentence of three years in prison for each count. Finally, Fisher is charged with money laundering arising from his purchases of multiple luxury vehicles and domestic and foreign properties with the proceeds of unlawful activity. He faces a maximum sentence of 10 years in prison for each count. In addition to the statutory maximum periods of incarceration, each of the defendants also faces a period of supervised release, monetary penalties, restitution and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“The Tax Division is continuing to prioritize prosecution of fraudulent tax shelters, which are designed to enable taxpayers to pay far less than their fair share,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Those who contemplate promoting fraudulent tax shelters involving syndicated conservation easements – and the accountants, appraisers and tax preparers who create and execute strategies to assist them – should know that the Tax Division and IRS will unravel even the most elaborate schemes.”
“This superseding indictment demonstrates IRS Criminal Investigation’s commitment to investigate and prosecute illegal tax shelters,” said Chief Jim Lee of IRS Criminal Investigation (IRS-CI). “IRS-CI special agents are focused on ending abusive syndicated conservation easements that allow perpetrators of these schemes to enrich themselves while their wealthy clients skirt their tax obligations.”
Acting Deputy Assistant Attorney General Goldberg of the Tax Division, U.S. Attorney Kurt R. Erskine for the Northern District of Georgia and IRS Criminal Investigation Chief Lee made the announcement, and they thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance in investigating the case.
IRS-CI and the U.S. Postal Inspection Service are investigating the case.
Tax Division Trial Attorneys Brittney Campbell, Parker Tobin, Casey Smith and William Guappone, along with Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section, of the Northern District of Georgia, are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fairmont man indicted for theft of 13 firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse Ross Duke, of Fairmont, West Virginia, was indicted today on a firearms charge, United States Attorney William Ihlenfeld announced.
Duke, 34, was indicted today on one count of “Theft of Firearms.” Duke is accused of taking 13 firearms that included pistols, rifles, shotguns, and revolvers, from a licensed firearms dealer in June 2021 in Marion County.
Duke is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Marion County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Evergreen Physician Sentenced to Federal Prison for Taking BribesRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Dr. Jeffrey Kesten, age 61, formerly of Evergreen, Colorado, was sentenced to 24 months in federal prison, to be followed by three years of supervised release, for conspiring to violate the Anti-Kickback Statute, in connection with a scheme to take bribes and kickbacks from a pharmaceutical company in exchange for prescribing a powerful fentanyl spray to his chronic pain patients.
According to the plea agreement, beginning in late 2012 and continuing through November 2015, the defendant conspired with pharmaceutical company employees to take approximately $344,000 in bribes and kickbacks from Insys Therapeutics, Inc., the manufacturer of Subsys, a powerful sublingual fentanyl spray approved by the FDA in 2012 to treat breakthrough pain in cancer patients. The bribes were disguised as payments or honoraria for purportedly delivering educational speaker programs to the defendant’s medical peers. In fact, the defendant often delivered no programs at all—at one point taking payments of over $40,000 from Insys for 17 “programs” he allegedly delivered to his own staff at his medical clinic. As part of the plea agreement, the defendant admitted that he entered into a quid pro quo relationship with Insys, and that the payments affected his prescribing decisions. He abused his position of trust vis-à-vis his patients and the Federal healthcare programs in which he was enrolled, becoming one of Insys’s top revenue-generating prescribers. Prescriptions for Subsys typically cost thousands of dollars each month, and Medicare and Medicaid paid millions of dollars to cover Subsys prescriptions written by Dr. Kesten.
“You have to be able to trust your doctor’s medical judgment,” said U.S. Attorney Cole Finegan. “We’ll hold physicians and medical professionals accountable for taking bribes and kickbacks, especially when they are prescribing powerful drugs to vulnerable patients.”
“As we’ve seen over the past several years fentanyl abuse has become an existential threat across the nation,” said DEA Denver Acting Special Agent in Charge David Olesky. “There is no greater threat to our community than a doctor who violates a patient’s trust with no regard to patient safety and well-being beyond what profits it can bring him. We applaud this sentencing and will continue to work with our counterparts in the U.S. Department of Health and Human Services Office of the Inspector General and the U.S. Attorney’s Office to ensure other doctors who manipulate the system will be held accountable.”
“Accepting kickbacks and bribes in exchange for prescribing medication not only compromises the integrity of Federal health care programs; it can also gravely endanger beneficiaries,” said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General. “HHS-OIG will continue to work relentlessly alongside our law enforcement partners to ensure the health and safety of beneficiaries and the efficient use of taxpayer dollars."
Fentanyl is at least 50 times more powerful than morphine, and to ensure patient safety, the FDA requires Subsys prescribers, patients, and pharmacies to enroll in and comply with the Transmucosal Immediate Release Fentanyl Risk Evaluation and Mitigation Strategy (TIRF REMS) program. The defendant disregarded the rules imposed by this program, failing to notify his patients of the risks posed by the Schedule II controlled substance prescription.
United States District Court Judge Daniel D. Domenico sentenced Kesten on February 24, 2022.
The Department of Health and Human Services Office of the Inspector General, and the Drug Enforcement Administration conducted the investigation.
Case No. 20-cr-291-DDD
District of Columbia Man Sentenced to 80 Months in Prison for Conspiracy to Distribute Narcotics and Use FirearmsRead the Press Release
WASHINGTON – Niko Culbreth, 29, of Washington D.C. was sentenced today to.80 months in federal prison for his role in an ongoing conspiracy to distribute narcotics and a related conspiracy to possess firearms in furtherance of drug trafficking.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Culbreth is one of more than a dozen individuals arrested as part of a joint FBI/ATF investigation which resulted in the seizure of more than 34 pounds of marijuana, 16 firearms, and more than $270,000 in cash.
Culbreth, who utilized the street nicknames “Cucuz” and “Slick,” pleaded guilty on Nov. 1, 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to distribute more than 100 kilograms of marijuana, as well as oxycodone and codeine. As part of his plea agreement, Culbreth admitted to participating in a separate conspiracy to use, carry, and possess firearms and to serving in a leadership role of both conspiracies. Culbreth was sentenced by the Honorable Amy Berman Jackson. Following completion of his prison term, Culbreth will be placed on four years of supervised release.
According to the government’s evidence, beginning in approximately June 2018, and continuing through September 2020, Culbreth and his co-conspirators maintained drug-dealing territory on Trenton Place SE in the Congress Heights neighborhood of Washington, D.C. – a territory they defended by carrying, and discharging, firearms at perceived rivals. As part of his role in the conspiracy, Culbreth not only served as the primary wholesaler of narcotics to his co-conspirators, but he encouraged his co-conspirators to pool their money and buy as many firearms as possible for use in defending their territory. Culbreth further encouraged his co-conspirators to always carry and use firearms in furtherance of the conspiracy.
Culbreth was arrested on Sept. 2, 2020. He has been detained ever since.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case from the FBI and ATF. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Genevieve de Guzman, Kim Hall, and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorney James B. Nelson, who investigated and prosecuted the case, with help from Assistant U.S. Attorney Kaitlin Vaillancourt and former Assistant United States Attorney Christopher Berridge.
District Man Sentenced to 20 Years in Prison for 2018 Killing of 14-Year-Old in Southeast WashingtonRead the Press Release
WASHINGTON – Anthony Allen, 25, of Washington, D.C., has been sentenced to 20 years in prison for his role in a botched robbery attempt that led to the death of a teenager in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Allen pleaded guilty in December 2018, in the Superior Court of the District of Columbia, to charges of second-degree murder while armed and attempted robbery while armed. He was sentenced yesterday by the Honorable Craig Iscoe.
Allen pleaded guilty for his role in committing a botched robbery attempt on Jan. 14, 2018, in the 1700 Block of Minnesota Avenue SE. According to the government’s evidence, Allen was driving a stolen Mercedes along with two other individuals, and the group, armed with a handgun, were driving around searching for victims to rob.
Shortly before 7 p.m., Allen and his accomplices observed 14-year-old Steven Slaughter, who was leaving a 7-Eleven on Good Hope Road SE, accompanied by two of his teenage friends. Allen followed the teenagers to Minnesota Avenue and parked the car facing the victims. One of his accomplices exited the car and brandished the handgun towards Mr. Slaughter while Allen stayed in the car and waited. The accomplice fired multiple shots from the handgun, striking Mr. Slaughter three times, as the other two teenagers ran away. The accomplice returned to the Mercedes, and Allen drove them away from the crime scene. Mr. Slaughter was taken to a hospital, where he died from his wounds.
Allen was arrested on March 5, 2018. He has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Saunders; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Paralegal Specialist Meridith McGarrity; Victim/Witness Advocate Jennifer Clark, and Investigative Analyst Zachary McMenamin.
Finally, they commended the work of Assistant U.S. Attorney Gilead Light, who prosecuted the case.
Detroit man indicted for methamphetamine and fentanyl distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cedrick Dion Tyron Griffin, of Detroit, Michigan, was indicted today on a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Griffin, also known as “Tay,” 23, was indicted today on one count of “Possession with Intent to Distribute 50 grams of More of Methamphetamine,” one count of “Possession with Intent to Distribute 40 grams or more of Fentanyl,” one count of “Distribution of Fentanyl,” one count of “Possession with Intent to Distribute 40 grams or more of Fentanyl,” and one count of “Possession with Intent to Distribute Methamphetamine.” Griffin is accused of having more than 50 grams of methamphetamine and more than 40 grams of fentanyl in May and June 2021 in Monongalia County. Authorities also seized more than $27,000 in connection with the case.
Griffin faces at least 10 years and up to life incarceration for the 50 grams or more of methamphetamine charge. He faces at least five years and up to 40 years of incarceration for each of the 40 grams or more of fentanyl counts. Griffin is facing up to 20 years of incarceration for each of the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Corpus Christi man gets life for exploiting Filipino childrenRead the Press Release
CORPUS CHRISTI, Texas – A 59-year-old local resident has been ordered to serve the rest of his life in federal prison following convictions for several child exploitation offenses including foreign travel to engage in illicit sexual conduct with three minors, announced U.S. Attorney Jennifer B. Lowery.
A federal jury convicted Edward Sanchez July 26, 2021, following a week-long trial and approximately 10 hours of deliberation.
Today, U.S. Nelva Gonzales Ramos handed Sanchez life sentence. Sanchez will also be ordered to register as a sex offender. At the hearing, the court heard evidence of his attempts to solicit and coerce additional schoolmates of the victims as well as testimony from a mental health professional regarding the effects of his actions. In imposing the sentence, Judge Ramos noted Sanchez’s complete lack of remorse for his actions.
At trial, evidence showed Sanchez had traveled to the Philippines where he posed as a benefactor to a school. However, he ultimately sought sexual relationships with students. The jury heard from three minor victims who testified about his activities, which included requests for pornographic images. These were later used to extort the children into meeting for sexual encounters, some unprotected, in the Philippines. Sanchez often provided victims with “morning after pills” to prevent conception.
The jury also heard about and viewed social media messages detailing Sanchez’s attempts to arrange access to the child victim’s family members to another adult male for sex. During their deliberations, the jury poured through thousands of pages of social media messages detailing his exploitation of the victims.
The defense attempted to convince the jury his conduct was lawful by Filipino standards and that United States laws were racist. The jury did not believe those claims, ultimately finding Sanchez had sexually exploited three minor children between March 5, 2016, and Nov. 21, 2018, in the Philippines and while in the United States using social media.
Sanchez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
Assistant U.S. Attorneys Brittany L. Jensen and Dennis Robinson prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Clearfield Woman Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Nicole Gaines, 42, of Clearfield, PA, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Gaines did conspire to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for July 11, 2022. The law provides for a minimum sentence of 10 years in prison and a maximum of life in prison, a fine of $10,000,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Gaines. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
City of Campbell Maintenance Worker Charged with Possession of Child PornographyRead the Press Release
SAN JOSE – Brian Robert Risso appeared in federal court today to face charges that he possessed child pornography announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the federal complaint filed on February 18, 2022, Risso, 61, of San Jose, is alleged to have possessed 513 images and 29 videos of child pornography on his personal Apple iMac computer at his residence. Additional documents filed by the government also describe the discovery of approximately 233,000 “manifest keys” on the iMac computer that are used to download files. In documents related to Risso’s detention, the government argued the keys were linked to files with names that suggest the keys allowed for access to videos of illegal child pornographic materials. The complaint charges Risso with one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2).
At the time of his arrest, Risso was employed by the City of Campbell as a maintenance technician at the Campbell Community Center.
Risso was arrested on February 18, 2022, and appeared this afternoon before United States Magistrate Judge Susan van Keulen to address issues related to his detention before trial. Risso currently is released on bond and is next scheduled to appear on March 15, 2022, before Magistrate Judge van Keulen, to address further issues regarding Risso’s release from detention.
A complaint merely alleges that a crime has been committed. Risso is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum sentence of 20 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant U.S. Attorney Daniel N. Kassabian is prosecuting the case with the assistance of Susan Kreider and Claudia Hyslop. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Cincinnati political consultant sentenced to 2 years in prison for embezzling $1.4M from Congressional campaignRead the Press Release
CINCINNATI – A political and media consultant was sentenced in U.S. District Court today to 24 months in prison for federal crimes related to the embezzlement of more than $1.4 million from a United States Congressional campaign.
James R. Schwartz II, 42, of Cincinnati, pleaded guilty in March 2021 to wire fraud and falsification of records.
According to court documents, from approximately 2011 through 2019, Schwartz worked as a consultant on behalf of a Congressional campaign through his companies Fountain Square Group LLC and Prime Media LLC. Schwartz also served as the de facto treasurer for the campaign.
Schwartz embezzled funds from the Congressional campaign by writing checks to himself and his companies from the campaign that were for more money than he and his companies had actually earned.
“Simply put, when he ran low on money, Schwartz cut himself a check from campaign funds that he did not earn,” U.S. Attorney Kenneth L. Parker said. “For close to 10 years, Schwartz fraudulently lined his own pockets at the expense of the entity he was hired to help further.”
Schwartz concealed the embezzled funds by misrepresenting the amounts paid to him and his companies in reports to the Federal Election Commission (FEC).
Schwartz created and submitted false receipt and disbursement records to an FEC audit team; Schwartz fabricated bank statements; he falsified e-donation reports and created a fake email from an e-donation vendor to conceal the fake e-donation reports; and he began writing fake checks to match the fictitious bank statements, which were prepared to match the prior false filings with the FEC.
During the FEC audit in summer 2019, Schwartz reported his criminal activity to the United States Attorney’s Office and cooperated with FBI agents.
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, announced the sentence imposed today by U.S. District Judge Timothy S. Black. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
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Chad Brown Gang Leaders Plead Guilty in Racketeering EnterpriseRead the Press Release
PROVIDENCE, RI – Four members of the Chad Brown gang in Providence have pleaded guilty in federal court to charges that they participated in a racketeering enterprise responsible for gun violence targeting rival gang members and for drug trafficking, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Delacey Andrade, 28, Kendrick Johnson 30, Keishon Johnson, 32, and Montrel Johnson, 25, each pled guilty to one count of participating in the activities of a Racketeer Influenced Corrupt Organization (RICO).
According to charging documents and information presented to the court, members and associates of the Chad Brown gang have participated in frequent acts of violence against rival East Side gang members dating back to 2013; these acts include drive-by shootings and illegal drug sales. The most recent escalation of hostilities began in 2013 when a Chad Brown member, Jose “Hova” Sanchez, was shot to death on June 22, 2013. In retaliation, two East Side members Ryan “Moondo” Almeida, and Nelson “Vamp” Sanchez, were shot to death in a thirty-day period from December 24, 2013, to January 24, 2014. While the defendants in this case were not charged in federal court with those killings, they mark the beginning of the time-period charged in the RICO Count and provide context for the specific racketeering acts committed by the defendants.
“There is no higher priority for this Office and this Department than combatting violent crime and gun violence in our communities,” said United States Attorney Cunha. “This case demonstrates that we, working hand-in-glove with our local, state and federal law enforcement partners, will bring every resource at our disposal - including the sweep and impact of a RICO prosecution, to bring the sources of violence in our communities to justice. These convictions are a testament to that cooperation- particularly the work of the Providence Police Department, ATF, and the Rhode Island Office of Attorney General, and a victory for public safety.”
“This case is an example of how this Office, working with our partners in law enforcement over the past several years, has focused our resources to target those who are driving violent crime in our state,” said Rhode Island Attorney General Peter F. Neronha. “Using NIBIN technology, which allows for the digital comparison of spent ammunition casings to link firearms to multiple crime scenes, we were able to link a firearm we recovered to six additional shootings, two of which the defendants were charged with. Thanks to this investigation and prosecution, some of the worst perpetrators of violent crime in Providence will now find themselves behind bars– and for a long time. I am particularly grateful for our partnership with the United States Attorney’s Office and the strong work by federal law enforcement and the Providence Police Department in this case.”
“I commend the entire team of patrol officers, investigators and prosecutors for their relentless work regarding this case. This incredible investigation leading to criminal charges and convictions sends a very clear message to individuals who continue to be involved in violent criminal activity within this city that they will be relentlessly pursued by the Providence Police and our law enforcement partners,” said Providence Police Colonel Hugh T. Clements, Jr. “Moving forward we will utilize every available resource necessary in the pursuit of justice and our officers remain involved in many cases surrounding senseless gun violence and retaliation. Investigations of the magnitude are complicated and time consuming but paramount in keeping our neighborhoods safe. We will continue to target this violent criminal activity, as evidenced by the high volume of firearms we continue to seize, with no jurisdictional boundaries.”
“This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in shootings and other violent crimes, and who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge James M. Ferguson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners at the Providence Police to impact violent crime that impacts the quality of life in some Providence neighborhoods.”
The RICO count brought in this Project Safe Neighborhoods Providence Police and Bureau of Alcohol, Tobacco, Firearms, and Explosives investigation was structured around four shootings in 2016 and 2017, each of which involved one or more of the defendants:
- Delacey Andrade, Montrel Johnson and Keishon Johnson were charged with the attempted murder of an East Side gang member on October 22, 2016, in a drive-by shooting. The shooting occurred after Montrel Johnson and the East Side gang member had a confrontation inside the Walmart on Silver Spring Street in Providence. According to information provided to the court, video surveillance, witness testimony, cell phone location data, and firearm forensic examinations establish that Andrade, Keishon Johnson and Montrel Johnson were in a gold Nissan Maxima that fired multiple gunshots into the victim’s car, hitting the victim three times and causing life threatening injuries. The shooting occurred on the two-year anniversary of a Chad Brown gang member’s shooting death, and shortly after the murder trial of the East Side gang members charged with his killing.
- Later in the evening of October 22, 2016, video surveillance, cell phone location data, and firearm forensic examinations establish that Andrade and Keishon Johnson were in the same gold Nissan Maxima on Appian Street in Providence when they fired multiple gunshots into a vehicle driven by a woman they mistakenly identified as East Side rivals. Earlier that week, Kendrick Johnson had sent Andrade a text to be on the lookout for a similar vehicle containing East Side members who had driven through Chad Brown.
- On June 19, 2017, Andrade and Kendrick Johnson were involved in a gun battle with East Side gang members outside the Tomato City Pizza restaurant on Douglas Avenue in Providence. East Side gang members shot at the residence of Montrel Johnson in Chad Brown earlier that day; Keishon Johnson sent a text identifying the shooter’s vehicle to Andrade. Andrade and Kendrick Johnson then encountered the vehicle outside Tomato City and both sides exchanged gunfire. Andrade and Kendrick Johnson crashed their vehicle and fled the scene. Investigation identified Andrade’s DNA on the gun found at the scene and Kendrick Johnson’s DNA on the steering wheel of the vehicle.
- On August 19, 2017, Keishon Johnson and two other Chad Brown members were arrested by Providence Police following a drive-by shooting on Hendrick Street in Providence. Expelled shell casings found at the scene as well as two firearms later recovered were ballistically matched. Subsequent investigation established that one of the two firearms, a .40 caliber silver Beretta handgun, was used in the three of the four shootings underlying the RICO count (Walmart, Appian and Hendrick).
- In addition, the evidence established that Kendrick Johnson and Andrade engaged in illegal drug and liquor sales, including distributing cocaine and marijuana.
- The investigation also established Keishon Johnson’s role in a marijuana distribution conspiracy involving Chad Brown members.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This PSN case is being prosecuted jointly in federal court by Assistant United States Attorneys Paul F. Daly, Jr., and John P. McAdams, and Special Assistant United States Attorney James Baum of the Rhode Island Attorney General’s Office.
United States Attorney Cunha recognizes and thanks the Rhode Island Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the member agencies of the ATF Task Force; the Providence, Pawtucket and North Providence Police Departments; the Rhode Island State Police; the Rhode Island Department of Corrections; and the United States Marshals Service for their close collaboration, support, and ongoing efforts in the investigation.
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Carlisle Woman Sentenced for Illegal Monetary Transactions Involving Covid-19 Relief FundsRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 28, 2022, Christina McConnell, age 43, of Carlisle, Pennsylvania, was sentenced by United States District Court Judge Christopher C. Conner to two years of probation, including four months of home confinement, for engaging in illegal monetary transactions involving $232,300 in COVID-19 relief funds.
The COVID-19 relief funds at issue were guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP). The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to United States Attorney John C. Gurganus, Christina McConnell knowingly used criminally derived PPP loan proceeds to purchase personal use vehicles and a residential property in June and July 2020. Christina McConnell’s husband, Keith McConnell, also pled guilty to the underlying PPP wire fraud and related money laundering offenses, and is awaiting sentencing. The Court ordered Christina McConnell to pay $232,200 in restitution for disbursement to the victims, and she paid the full amount prior to sentencing.
The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant U.S. Attorney Samuel S. Dalke prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Canton Man Sentenced to 5 years in Prison for Solicitation of an Obscene Visual Depiction of a MinorRead the Press Release
PEORIA, Ill. – A Canton, Illinois, man, Joseph M. Graham, 29, of the 500 block of Baxter Court, was sentenced on February 24, 2022, to 60 months imprisonment, to be followed by 10 years of supervised release, for soliciting an obscene visual depiction of a minor.
U.S. District Judge James E. Shadid heard the case. Graham was indicted in January 2020 and pleaded guilty in October 2021.
During the change-of-plea hearing, the government presented evidence that Graham used an online application to request sexually explicit images of an individual whom he believed to be eight years old. In December 2019, Graham initiated messages with an individual on a mobile application. During messaging conversations that took place over several weeks, Graham believed that he was communicating with the father of an eight-year-old boy. Graham expressed interest in engaging in sex acts with the child and indicated that he wanted to be the child’s boyfriend. Graham requested sexually explicit images in December 2020. Graham also arranged to meet with the child and his father and, in January 2020, traveled to a coffee shop on N. Prospect Road, in Peoria, Illinois, where he was taken into custody by federal agents. Graham agreed to speak with agents and admitted that he was the person conversing with the individual he believed to be the father of an eight-year-old boy.
“The Department of Justice is committed to the safety and well-being of children and will continue to aggressively identify, investigate, and prosecute online sexual predators,” said Assistant U.S. Attorney Ronald L. Hanna.
“The FBI is committed to investigating crimes against children with a sense of urgency to protect every child from the devastating and life-long impact of online victimization.” said FBI Special Agent in Charge David Nanz. “The FBI, in collaboration with our law enforcement partners, will continue to work with unwavering dedication to ensure that criminals like Graham are investigated and arrested.”
The statutory penalties for solicitation of an obscene visual depiction of a minor are five to 20 years imprisonment, a maximum life term of supervised release, and a maximum $250,000 fine.
The case was investigated by the Federal Bureau of Investigation-Springfield Division with assistance from the Peoria Police Department and Illinois State Police. Assistant U.S. Attorneys Hanna and Paul B. Morris represented the government in the prosecution.
The case against Graham was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Camden Man Sentenced to 115 Months in Prison for Conspiring to Distribute Heroin and Crack Cocaine in CamdenRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 115 months in prison for conspiring to distribute heroin and crack cocaine in the City of Camden, U.S. Attorney Philip R. Sellinger announced.
Waldemar Garcia, 36, of Camden, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with conspiracy to distribute 100 grams or more of heroin as well as quantities of crack cocaine. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Nineteen defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The organization included street-level sellers like Garcia who worked various shifts selling drugs to customers and collecting drug proceeds.
Seventeen defendants have now pleaded guilty before Judge Bumb to drug conspiracy charges. Two defendants are awaiting trial; the charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Garcia to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Camden County Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief Robert Kempf; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case 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 government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
CEO of Payment Protection Program Lender MBE Capital Arrested in Connection with Fraudulent Loan and Lender ApplicationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Thomas Fattorusso, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), Amaleka McCall-Brathwaite, Special Agent-in-Charge, U.S. Small Business Administration, Office of Inspector General, Eastern Region (“SBA-OIG”), and Stephen Donnelly, Acting Special Agent-in-Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region (“FRB-OIG”), announced today that RAFAEL MARTINEZ was arrested on multiple fraud charges and aggravated identity theft in connection with loan and lender applications submitted through the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration (the “SBA”).
MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP. MARTINEZ then used that approval to obtain approximately $932 million in capital to issue PPP loans and earn over approximately $71 million in lender fees. In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer. MARTINEZ was arrested yesterday and will be presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “As alleged, Rafael Martinez faked his way into building his company MBE Capital Partners into an almost $1 billion PPP lender. Not only did Martinez allegedly lie to a financial institution to obtain almost $300,000 in PPP loan funding for MBE Capital, he then submitted fraudulent financial statements to get the SBA to approve MBE Capital and to obtain over $800 million to issue PPP loans. In doing so, Martinez and his company earned over $70 million in lender fees from the SBA, which among other luxury items, he audaciously spent on a villa in the Dominican Republic, a Ferrari, and private jets. Thanks to the incredible work of our law enforcement partners, our Office will continue to prosecute those who committed fraud through the PPP and other pandemic relief programs.”
IRS-CI Special Agent-in-Charge Thomas Fattorusso said: “American businesses and their employees have been struggling due to an unprecedented global pandemic, and the Paycheck Protection Program was created to serve as a safety net. Martinez is alleged to have fraudulently obtained funds through this program as both a recipient and a lender, and in effect, stole funds from his fellow Americans so he could purchase a New Jersey mansion, a villa abroad, and several luxury vehicles.”
SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said: “OIG stands firm against fraudsters determined to steal SBA program funds meant to uplift and support the nation’s small businesses during the pandemic. OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
FRB-OIG Acting Special Agent-in-Charge Stephen Donnelly said: “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.”
According to the Complaint unsealed in Manhattan federal court:[1]
At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015. Republic Group, LLC, a/k/a Republic Group Parts, LLC (“Republic Group”), which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE. According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses . . . . In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.”
On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, d/b/a MBE through the SBA’s PPP. In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019. In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000. In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in Manhattan, New York (the “Tax Preparer”). Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ. A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses.
On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender. As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019. Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans.
On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses. On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Payment Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve.
As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses. These loans earned MARTINEZ a total of approximately $71.3 million in fees. MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190.
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MARTINEZ, 56, of Franklin Lakes, New Jersey, was charged with one count of bank fraud, two counts of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison; one count of making false statements, which carries a maximum sentence of two years in prison; one count of making false statements to the SBA, which carries a maximum sentence of two years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed. The maximum potential sentences 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 outstanding investigative work of IRS-CI, SBA-OIG, and FRB-OIG. Mr. Williams also thanked Homeland Security Investigations and U.S. Customs and Border Protection for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sagar K. Ravi is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bucks County Man Sentenced to Nearly Four Years for Trafficking Firearms to St. LuciaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Harris Jr., 29, of Croydon, PA, was sentenced to three years and 10 months in prison, and three years of supervised release for multiple firearms trafficking offenses stemming from his scheme to sell almost 40 guns to a buyer on the island of St. Lucia.
In September 2020, the defendant was charged by Indictment with making false statements to a federal firearm licensee, dealing in firearms without a license, delivery of firearms to a common carrier without written notice, and smuggling goods from the United States. Harris purchased approximately 38 firearms in 12 transactions at two Bucks County gun shops between April 2019 and February 2020, and provided a false address as his place of residence on the required federal forms that he completed during each transaction. The defendant then illegally trafficked the guns to St. Lucia, a sovereign island nation in the West Indies, despite his not having a license to deal in firearms nor a license to export.
One of Harris’s packages to St. Lucia was intercepted by federal agents at the warehouse of a local shipping company. Inside, concealed in household items such as packages of diapers, cat litter and laundry detergent, the agents found seven Glock semiautomatic pistols, one Ruger semiautomatic pistol, two AK-47 pattern pistols, two AK-47 pattern rifles, two AR-15 lower receivers, two AR-15 upper receivers, ten high-capacity Glock ammunition magazines, seven additional assorted ammunition magazines, and 815 rounds of ammunition.
“By shipping high-powered firearms to a foreign nation, the defendant displayed a brazen disrespect for our laws regulating and monitoring the sale of weapons,” said U.S. Attorney Williams. “Trafficking in firearms overseas is a serious federal offense, and one for which our Office will hold offenders like Harris accountable.”
“Firearms trafficking is at the forefront of ATF’s mission,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Harris’ sentencing should send the message to criminals that a blatant disregard of federal firearms laws will be investigated jointly by ATF and our local, state, and federal partners.”
“The FBI continues to work with our law enforcement partners in pursuit of criminals whose actions violate our laws and put the citizenry of our country – or any other – in harm’s way,” said Special Agent in Charge Jacqueline Maguire. “We have a global reach. It doesn’t matter if you are breaking laws and illegally trafficking guns within your state, within this country, or around the world. We will bring you to justice.”
“Illegally exporting firearms from the United States is a serious violation of our nation’s export control laws and often has dire consequences abroad,” said Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office. “This case demonstrates the outstanding collaboration between the Office of Export Enforcement and our law enforcement partners to aggressively enforce export violations in the interest of national security in the U.S. and abroad.”
The case was investigated by the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joseph A. LaBar and U.S. Department of Justice National Security Division Trial Attorney Michael E. Eaton.
Broome County Business Owner Pleads Guilty to Tax FraudRead the Press Release
BINGHAMTON, NEW YORK - Nezir “Nick” Boljevic, 57, of Broome County, New York, waived indictment and pled guilty today in federal court in Binghamton to one felony count of willful failure to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.
In pleading guilty, Boljevic admitted that from 2007 through 2017, while he owned and operated Vestal Diner in Vestal, New York, he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes. Boljevic withheld the payroll taxes from his employees’ paychecks but did not report the withholdings or turn the money over to the Internal Revenue Service. To avoid IRS collection efforts, Boljevic repeatedly put Vestal Diner in the names of a series of nominee owners with different Employer Identification Numbers for tax purposes, even though Boljevic remained the true owner and operator of Vestal Diner. In total, Boljevic failed to pay approximately $322,516.51 in payroll taxes to the Internal Revenue Service between 2007 and 2017. Boljevic no longer owns or operates Vestal Diner.
Sentencing is scheduled for July 6,2022. If the Court accepts the parties’ plea agreement, the defendant will receive a sentence of 1 year and 1 day in prison and will pay $322,516.51 in restitution to the IRS.
This case is being investigated by Internal Revenue Service-Criminal Investigation Division (IRS-CI), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Brockton Woman Sentenced for Stealing Veterans Affairs FundsRead the Press Release
BOSTON – A Brockton woman was sentenced today in federal court in Boston for stealing veteran affairs benefits.
Robin Calef, 62, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one month in prison followed by three years of supervised release. Calef was also ordered to pay restitution in the amount of $102,289 to the U.S. Department of Veterans Affairs (VA). On Nov. 5, 2021, Calef pleaded guilty to one count of theft of public funds.
In December 2006, Calef’s sister, who was receiving monthly benefits from the VA, passed away. Calef failed to inform the VA of her sister’s death, and the VA continued to deposit monthly benefits into a joint bank account held by Calef and her sister. As a result, from Dec. 1, 2006 to Sept. 20, 2017, the VA made approximately 129 benefit deposits into the joint bank account. Bank records revealed that Calef made monthly withdrawals of approximately the exact amount of VA benefit funds deposited into the joint account. In total, over a period of more than 10 years, Calef stole approximately $102,289 in VA funds not intended for her.
United States Attorney Rachael S. Rollins and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Demitre McCoy White, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
White, 40, pleaded guilty today to one count of “Unlawful Use of Communication Device.” White admitted to using a phone to help distribute heroin in December 2020 in Berkeley County.
White faces up to four years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Avon Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL FERRO, 36, formerly of Avon, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of distribution of child pornography.
According to court documents and statements made in court, on August 18, 2021, Ferro, using the Kik social media application, began chatting in a Kik group with an FBI Online Covert Employee (“OCE”) who was posing as a father of a 12-year-old girl. After Ferro determined that the OCE was engaging in sexual activity with his “daughter,” he sent the OCE a photo depicting the genitals of a child. Ferro then stated that he had more pictures to share, and expressed an interest in meeting the OCE’s daughter to engage in sexual activity. After confirming Ferro’s identity, investigators traveled to Ferro’s Avon residence late in the evening of August 18, informed him of the investigation, and seized his cell phone.
Ferro was arrested on a criminal complaint on September 29, 2021.
Judge Meyer scheduled sentencing for May 24, 2022, at which time Ferro faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Ferro, who was released on bond, was remanded to custody at the conclusion of today’s court proceeding.
This matter has been investigated by the Federal Bureau of Investigation with the assistance of the Avon Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Anchorage Man Sentenced on Child Pornography ChargesRead the Press Release
ANCHORAGE – An Anchorage man was sentenced to 69 months in prison by U.S. District Judge Joshua M. Kindred for possession and distribution of child pornography.
According to court documents, Shannon Robert Bell, 56, knowingly possessed, accessed and distributed child pornography involving prepubescent minors (minors who have not attained 12 years of age). In his plea agreement, Bell admitted to posting images and videos depicting child sexual exploitation involving children as young as age six approximately 100 times during the past few years as well as being a moderator of a Kik group focused on incest.
The case originated during an investigation by the Kansas City Division of the Federal Bureau of Investigation (FBI) into a private, invitation-only, Kik chat group created by a pedophile. During the course of the investigation, Bell engaged in chats with an undercover FBI agent detailing his long-standing involvement with child pornography. The case was handed over to the FBI’s Anchorage division when the IP address confirmed that Bell lived in Anchorage. Following the execution of a search warrant of Bell’s home, Bell admitted that he had been chatting online for a number of years including using the Kik application on a cellular phone.
Bell was involved with child pornography while working as an onsite clinical therapist treating emotionally troubled youth primarily between the ages of 13 and 17 who were struggling with pornography and sex addiction issues. As part of his sentencing Bell was ordered to serve 10 years of supervised release and pay $5,000 in restitution and a $3,000 fine under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA).
“The distribution of child pornography re-victimizes the innocent children who were initially exploited to create the images and videos,” said U.S. Attorney John E. Kuhn, Jr of the District of Alaska. “Mr. Bell’s substantial sentence reflects the serious harm of this crime. I commend the FBI, Anchorage Police Department and our federal prosecutor for their work on this case.”
“At the same time the defendant was acting as a counselor for vulnerable youth, he was also perpetuating the online sexual abuse of children, making his conduct particularly disgraceful,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Together with our law enforcement partners, the FBI will continue to root out predators and protect Alaska’s youth from harm.”
The FBI and Anchorage Police Department investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force.
Assistant U.S. Attorney Adam Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
28 February 2022
Washington Parish Man Sentenced for Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – CHRISTOPHER HARRIS, age 28, a resident of Bogalusa, Louisiana, was sentenced to sixty (60) months’ imprisonment, four (4) years of supervised release and a $200 mandatory special assessment fee by U.S. Chief District Judge Nannette Jolivette Brown after pleading guilty to two counts of an indictment charging him with conspiracy to distribute and possess with intent to distribute fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine, and distribution of fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine; both in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, on July 26, 2019, agents with the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives used a confidential source to make a controlled purchase of methamphetamine from HARRIS. The confidential source, under the direction of agents, went to meet HARRIS to purchase the drugs. The source was greeted at the door by Derrick Mark who made a telephone call to HARRIS to inform him that the source was at the residence to purchase the drugs from him. When HARRIS arrived at the residence, he sold the source approximately one hundred six (106) grams of drugs that tested positive for methamphetamine.
This prosecution was part of an extensive investigation by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and/or firearms in Washington Parish. The prosecution was handled by Assistant United States Attorney André Jones.
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Washington Parish Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – JAKARI BROWN, a/k/a “Jakari Lemar,” age 23, a resident of Bogalusa, Louisiana, was charged on February 25, 2022, in a one-count indictment by a federal grand jury with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to the indictment, on December 27, 2021, BROWN, a convicted felon, illegally possessed a Smith & Wesson Model SW9VE, nine-millimeter pistol. If convicted, BROWN faces up to ten years imprisonment, a fine of up to $250,000, up to 3 years supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Washington Parish Sheriff’s Office and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Verona Man Sentenced to 12 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that William Heitman, 35, Verona, Wisconsin, pleaded guilty today and was sentenced by U.S. District Judge William M. Conley to 12 years in federal prison for possessing child pornography. This sentence will be followed by 15 years of supervised release. Judge Conley also ordered the defendant to pay $9,000 in restitution to three of the victims depicted in the images Heitman possessed.
In June 2020, Verona police officers found Heitman in a park sleeping in his car. Heitman told officers that he was recently released from state prison after serving a sentence for possessing child pornography. Officers learned that Heitman was on extended supervision for that offense. During a search of Heitman’s car, officers found two SD cards containing well over 1,000 videos of children engaged in sexually explicit conduct. Heitman admitted to downloading the images and admitted to being an administrator for two groups engaged in trading images of child pornography. In his role as administrator, Heitman solicited images of child pornography from individuals who wanted to join the groups.
In sentencing Heitman, Judge Conley was concerned about Heitman’s failure to engage in treatment while in state prison the first time, and that he seemed to have no understanding of the seriousness of the offense. Judge Conley observed that this made Heitman a dangerous person in need of a lengthy prison term. Heitman’s role as an administrator of groups trading child pornography also made him an active part of the plague of child pornography on the internet.
Heitman’s state supervision was revoked in July 2020, in part as a result of the conduct included in the federal offense. Accordingly, Judge Conley imposed the federal sentence to run concurrently with the remainder of the defendant’s four-year state sentence.
The charge against Heitman was the result of an investigation conducted by the Verona Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Julie Pfluger and Laura Przybylinski Finn prosecuted this case.
Ulster County Man Sentenced to 70 Months for Distributing FentanylRead the Press Release
ALBANY, NEW YORK - Timothy Schleede, age 30, of Lake Katrine, New York, was sentenced today to serve 70 months in prison for distributing fentanyl in Ulster County.
The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Timothy Foley of the U.S. Drug Enforcement Administration (DEA), New York Division; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); and Ulster County District Attorney David Clegg.
As part of his guilty plea, Schleede admitted that on August 26, 2020, he distributed a fentanyl mixture in glassine envelopes to another person in a mall parking lot in Ulster, New York. Schleede was arrested later the same day after selling more glassine envelopes containing the same fentanyl mixture in a hotel parking lot in Ulster. Law enforcement searched Schleede’s hotel room and storage locker, and recovered approximately 8,000 additional glassine envelopes, which contained fentanyl and heroin
United States District Judge Mae A. D’Agostino also imposed a 4-year term of supervised release, which will start after Schleede is released from prison
This case was investigated by URGENT and the DEA, with assistance provided by the Ulster County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
U.S. Attorney Announces Formation of New Public Corruption and Civil Rights Unit, with Renewed Focus on Prosecuting Criminal Civil Rights Violations and Police Excessive Force Cases.Read the Press Release
U.S. Attorney Dawn Ison announced today that she has formed the office’s Public Corruption and Civil Rights Unit. Although the U.S. Attorney’s office has long investigated and prosecuted criminal civil rights cases and corruption matters, U.S. Attorney Ison has formed this unit to emphasize her priority of prosecuting criminal civil rights and police excessive force cases through the unit and the dedication of additional resources.
U.S. Attorney Ison is emphasizing the office’s determination to prosecute these types of cases. For example, just last year, the U.S. Attorney’s Office successfully prosecuted a man who used racial slurs while brutally attacking a group of African American teenagers at a state park in Monroe, Michigan. The office also prosecuted a former Hamtramck police officer in 2021 for using excessive force against a civilian arrestee and violating the arrestee’s civil rights. “While our office is no stranger to criminal civil rights cases, the formation of the unit is a signal to the community of our renewed focus on civil rights cases and recognizes the work that we have already been doing on this front,” said U.S. Attorney Dawn Ison. According to the FBI’s reported Hate Crimes Statistics, 2020 saw a 6.1% increase in hate crime reports. In particular, reported hate crime incidents against African Americans rose 49 percent from 2019 to 2020 and anti-Asian hate crime incidents rose 77% during the same period. “Hate crimes and other bias-related incidents instill fear across entire communities. We want the community to know that we stand ready to use our office’s resources to the ensure that everyone can live without fear of becoming a crime victim because of where they are from, what they look like, how they worship, or whom they love,” added Ison.
The Public Corruption and Civil Rights Unit will partner with local and federal law enforcement to ensure that allegations of criminal civil rights violations are thoroughly and fairly investigated, that acts constituting federal criminal civil rights violations and the use of excessive force by police officers are sufficiently remedied, and the rights of the victims are vindicated. AUSA David Gardey will serve as Chief of the Public Corruption and Civil Rights Unit.
In addition to the Public Corruption and Civil Rights Unit focused on combatting criminal civil rights violations, the U. S. Attorney’s Office also has a Civil Rights Unit housed in the Civil Division that enforces federal civil anti-discrimination statutes through civil lawsuits and court injunctions.
If you believe you are the victim of a hate crime or believe you witnessed a hate crime:
1. Report the crime to your local police.
2. Quickly follow up this report with a tip to the Federal Bureau of Investigation (FBI).
Individuals who believe they have been a victim of discrimination can call the U. S. Attorney’s
Office Civil Rights Hotline at 313.226.9151 or by sending an email to [email protected].Two Pittsburgh-area Men Charged with Robbing PNC Bank in Washington, PARead the Press Release
PITTSBURGH – Two Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, United States Attorney Cindy K. Chung announced today.
The three-count Superseding Indictment named Anthony West, age 28, formerly of McKees Rocks, PA, and Brandin Gardner, age 25, of Pittsburgh’s Beltzhoover neighborhood, as defendants.
According to the Superseding Indictment, on or about September 12, 2021 and continuing to on or about September 16, 2021, Mr. West and Mr. Gardner conspired to commit bank robbery and committed bank robbery of the PNC Bank, located at 319 Washington Road, in Washington, Pennsylvania, 15301.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Philadelphia Men Convicted of Running Credit Card Fraud Ring Using 200,000+ Stolen AccountsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Malan Doumbia, 38, and Souleymane Diarra, 36, both of Philadelphia, PA, were convicted after trial of nine counts including conspiracy to commit wire fraud, access device fraud, aggravated identity theft, and conspiracy to commit money laundering, in connection with a scheme to purchase stolen credit card numbers from the dark web, use the accounts to purchase consumer products, and then re-sell the products for cash.
As part of the scheme, the defendants worked with several associates to purchase large quantities of stolen credit card numbers off black market websites located in Russia, Ukraine, and elsewhere overseas. They then encoded the stolen card numbers onto blank cards here in Philadelphia, and employed a network of runners who used the stolen credit card numbers to buy large quantities of gift cards and other items which could be quickly resold for cash, like Apple products, cigarettes, and diapers. When the United States Secret Service searched the defendants’ homes, agents found numerous computers, tablets, cell phones, re-encoding machines, card readers, and more than 200,000 stolen credit card numbers.
“Identity theft and financial fraud schemes like this one have a devastating and long-lasting impact on the victims, who have no way to prevent or stop the violations” said U.S. Attorney Williams. “ Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”
“So long as criminals insist on stealing identities and livelihoods, so will the Secret Service continue to identify and stop their despicable operations,” said U.S. Secret Service Philadelphia Special Agent in Charge James Henry. “Our highly trained investigators are uniquely trained and steadfastly dedicated to our mission to ensure a secure national financial environment. The Secret Service, together with all of our critical law enforcement partners at all levels, can and will ensure these criminals are brought forward for justice, no matter the dark corner of the internet in which these offenders think they can hide.”
“The defendants in this case stole money and personally identifiable information from unsuspecting victims, then went to extraordinary lengths to hide their illicit activities from law enforcement scrutiny,” said William S. Walker, the special agent in charge of Homeland Security Investigations, Philadelphia. “As a result of this investigation, they will now be held accountable for their reprehensible crimes. HSI is pleased to have worked with our partners in federal and local law enforcement to bring the offenders in this case to justice.”
The case was investigated by the United States Secret Service, with assistance from the Department of Homeland Security, Homeland Security Investigations, the U.S. Customs and Border Protection, the Swatara Township Police Department, the Lower Salford Township Police Department, the Haverford Township Police Department, the Montgomery Township Police Department, the Deptford Police Department, the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.
Two Men Arrested on Federal Firearm ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal indictment has been unsealed after two men were arrested today on firearm charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms Special Agent in Charge Mickey French.
According to a two-count indictment filed in U.S. District Court, between April 2021 and September 2021, the defendants purchased multiple handguns from a licensed firearms dealer located in Tuscaloosa County by means of straw-purchase transactions where Davis falsely represented himself to be the buyer of the guns.
Jevonte Kendrell Davis, 28, of Cottondale, is charged with engaging in the business of selling firearms without a license and making a false statement during the purchase of a firearm.
Tyrese Perry, 25, of New Haven, Connecticut, is charged with making a false statement during the purchase of a firearm.
The maximum penalty for giving a false statement during the purchase of a firearm is 10 years in prison.
The maximum penalty for engaging in the business of selling firearms without a license is five years in prison.
These cases are a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF investigated the case. Assistant U.S. Attorney Brittney Plyler is prosecuting the case.