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28 February 2022
Two Los Angeles Men Sentenced to Federal Prison for Collecting Ransom Payments for Brutal Kidnap-for-Ransom ConspiracyRead the Press Release
LOS ANGELES – Two Los Angeles men were sentenced today to federal prison terms for collecting ransom payments for a criminal conspiracy in which multiple victims were kidnapped near the United States-Mexico border.
Edgar Adrian Hernandez Lemus, 23, of the Central-Alameda neighborhood in Los Angeles, was sentenced to 78 months in federal prison by United States District Judge John F. Walter. At a separate hearing today, Judge Walter sentenced Junior Almendarez Martinez, 23, of Watts, to 24 months’ imprisonment.
At the conclusion of a three-day jury trial in November 2021, Lemus was found guilty of one count of conspiracy and two counts of receiving money from a ransom demand for the release of a kidnapped person. Almendarez was found guilty of two counts of receiving money from a ransom demand for the release of a kidnapped person.
The kidnapping incidents targeted victims who either were waiting or attempting to cross the border from Mexico into the United States. In each incident, the kidnappers offered to assist in smuggling the victims across the border from Mexico, but instead would hold them for ransom. The kidnappers insisted on ransom payments from the victim’s family members to release the victims.
From March 29 to June 1, 2021, the kidnappers used specific sections at Walmart and other stores in Southern California to meet with the family members to collect the ransom payments. After the payments were made, however, the kidnappers demanded additional money rather than releasing the victims.
Lemus and Almendarez traveled to these stores to pick up ransom payments from the family members of the kidnapped victims. During many of the ransom pickups, the family members of the kidnapped victims remained on the phone with members of the conspiracy who would direct them towards Lemus – who was often on the phone during the ransom pickups. At these stores, Lemus and Almendarez would enter and collect, or attempt to collect, ransom payments from kidnapped victims’ family members. The ransom payments picked up by defendants ranged from $12,000 to $30,000 in cash.
After the ransom pickups, Lemus and Almendarez used Uber to transport the money, before eventually sending money to co-conspirators in Mexico via MoneyGram. The victims later were assaulted, drugged and released.
In a sentencing memorandum, prosecutors argued that Lemus “was a key part of a brutal kidnapping for ransom scheme.
“During this scheme, numerous victims were subjected to horrific abuse,” prosecutors wrote. “The horror of the kidnappings and ransom payment is a trauma that these victims will never forget.”
A co-defendant and fellow ransom collector, Francisco Javier Hernandez Martinez, 21, of the Central-Alameda neighborhood in Los Angeles, pleaded guilty in September 2021 to one count of conspiracy and later was sentenced to 40 months in federal prison.
The FBI investigated this matter. The South Gate Police Department and the Santa Barbara County Sheriff’s Office provided substantial assistance.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section prosecuted this case.
Two Former Coast Guard Employees Plead Guilty in Test-Fixing CaseRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced the guilty pleas of two former U.S. Coast Guard employees in a test score-fixing scheme. U.S. Attorney Evans also announced additional guilty pleas and sentencings of several other defendants in this matter.
On February 24, 2022, DOROTHY SMITH and BEVERLY MCCRARY pleaded guilty before the Honorable Barry W. Ashe to conspiracy to defraud the United States. The maximum penalties for each defendant are five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 mandatory special assessment fee. Sentencing for each defendant is scheduled for April 14, 2022.
SMITH and MCCRARY were employed as credentialing specialists at a Coast Guard exam center in Mandeville, Louisiana. SMITH’s position authorized her to enter scores for examinations that merchant mariners were legally required to pass in order to obtain licenses to serve in various positions on vessels. The examinations tested mariners’ knowledge and training to safely operate under the authority of the licenses.
In pleading guilty, SMITH admitted that she accepted bribes to fix exam scores. While SMITH would at times directly interact with credential applicants (for example, by soliciting bribes from them when they came to the exam center), she primarily relied on intermediaries. By using intermediaries, SMITH typically avoided having any contact with the mariners to whom she sold scores. Mariners participating in the scheme would usually not even appear for the examinations. SMITH would create Coast Guard records and data entries to make it appear to the Coast Guard that the mariners had appeared and tested. SMITH would make up passing scores for each of the examination’s various modules and enter these false scores in a Coast Guard computer system. SMITH would then send emails to a Coast Guard office falsely stating that the mariners had passed the examinations and should receive the desired endorsements.
MCCRARY pleaded guilty to being one of SMITH’s intermediaries in the scheme. MCCRARY admitted that she acted as an intermediary while employed at the exam center and that she continued participating in the scheme following her 2015 retirement. MCCRARY would gather money and information about the desired endorsements and then provide the information and a portion of the money to SMITH. MCCRARY almost always required upfront cash payments, but on occasion would accept non-monetary things of value. For example, from one mariner, MCCRARY accepted coolers of fresh caught shrimp in exchange for arranging false test scores. To make it less likely that the scheme would be discovered, MCCRARY instructed mariners: to not contact the exam center regarding their credential applications; to not work on vessels during the days they were supposed to be testing; and to use code words when discussing the scheme on the telephone. MCCRARY recruited some of the mariners while she was on duty at the exam center. For example, when mariners came to the exam center to address matters related to their credential applications, MCCRARY would strike up conversations with them and proceed to solicit them to engage in the scheme. MCCRARY also developed her own network of intermediaries beneath her in the scheme. These intermediaries included ALEXIS BELL, MICHEAL WOOTEN, and SHARRON ROBINSON, who have all pleaded guilty and collectively admitted to having MCCRARY arrange false scores for a total of 31 mariners, including themselves.
SMITH and MCCRARY admitted that they engaged in the scheme from before April 2012 until May 2019 and that they caused more than 50 mariners to receive false scores, with some mariners obtaining false scores on multiple occasions. Each falsely-reported examination resulted in the issuance of an unearned license, with almost all of the licenses being officer-level. Officer-level licenses include the most important positions on vessels, such as master, chief mate, and chief engineer.
Earlier this year, Judge Ashe sentenced two mariners who had pleaded guilty to acting as MCCRARY’s intermediaries: on January 7, 2022, Judge Ashe sentenced MICHEAL WOOTEN to 54 months imprisonment; on February 3, 2022, Judge Ashe sentenced ALEXIS BELL to 42 months imprisonment. WOOTEN and BELL were each also sentenced to one year of supervised release to follow their prison terms.
On January 20, 2022, Judge Ashe sentenced two of the mariners who received fraudulent licenses through scores entered by SMITH. FREDRICK NETTLES was sentenced to six months imprisonment to be followed by one year of supervised release and 100 hours of community service. STINSON PAYNE was sentenced to one year probation and 100 hours of community service.
Seven of the eight defendants charged in a separate indictment pleaded guilty before the Honorable Eldon E. Fallon to obtaining unearned endorsements through false scores entered by SMITH: RANSFORD ACKAH, ODELL GRIGGS, and DEVIN HEBERT pleaded guilty on January 13, 2022; NATHANIEL DOMINICK, RAYNEL LEWIS, and MAURICE PALMER pleaded guilty on February 3, 2022; and ADRIAN MACK pleaded guilty on February 10, 2022. The maximum penalties for each defendant are five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 mandatory special assessment fee.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Three Sentenced for Conspiracy to Commit Bank and Wire FraudRead the Press Release
RALEIGH, N.C. – Shawn Franklin, Sabrina Wiggins Branch and Anthony Maryland were each sentenced today to terms of imprisonment for conspiring with one another to commit bank and wire fraud. Franklin, currently residing in Georgia, was sentenced today to 126 months in prison for organizing and leading a multi-year conspiracy to defraud financial institutions and lenders of more than one million dollars. Branch was sentenced to 24 months in prison and Maryland to one day followed by eight months of home detention. On September 30, all three pleaded guilty to the Conspiracy. Franklin also pleaded guilty to Aggravated Identity Theft. All three were ordered to pay restitution and forfeit their fraud proceeds to the United States in the form of money judgements.
According to court documents and other information presented in court, Franklin, age 48, Branch, age 39, and Maryland, age 49, used synthetic identities to apply for credit and financing. Branch and Maryland used their real names coupled with nine-digit-numbers that were not issued to them by the social security administration on credit and loan applications. Franklin also used his real name, variations of his name or his ex-wife’s name coupled with nine-digit-numbers that were never issued or issued to others by the social security administration. To build the creditworthiness, these illegal synthetic identities, often referred to as “CPNs” or “credit privacy numbers,” were added as authorized users to credit cards belonging to other individuals who have positive credit scores.
In addition to using synthetic identities in his name or variations of his name to obtain credit, Franklin used the real names and social security numbers of 10 NC Medicaid recipients to obtain credit cards, consumer loans and vehicle financing. Franklin previously had access to this personal information when he operated Wayne County Day Treatment, a NC Medicaid mental health provider. Franklin also rented an apartment in Raleigh in the name of one of the Medicaid recipients without permission. Maryland resided in the apartment. To rent the apartment and obtain the loans, Franklin provided fictitious NC driver’s licenses in these individuals’ names that bore his image.
Franklin maximized the fraud proceeds on the credit cards by making bogus payments, often by telephone or online. This caused the banks to reinstate the credit limits. Before the credit issuer received notification that the payments were bogus, additional charges were incurred, resulting in significant losses.
Franklin used the cards to pay many personal expenditures for himself and his family, including his stepdaughter’s tuition to Spelman College and associated living expenses, his other adult daughters’ orthodontist bill and his ex-wife’s dental and plastic surgery procedures.
To generate cash, Franklin conspired with Branch to charge more than $600,000 on fraudulently obtained credit cards through Branch’s various merchant accounts associated with her retail store in Wilmington’s Independence Mall. Franklin and Wiggins split the proceeds: 85% to Franklin and 15% to Branch. After the merchant account processor deposited the illegal proceeds into a Branch’s bank account, she withdrew Franklin’s share in cash. Branch kept her withdrawals under $10,000 to avoid the filing of a currency transaction report.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The United States Secret Service and Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Susan B. Menzer prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00315-D.
Three Defendants Sentenced for Illegal Bitcoin BusinessRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christopher Allan Boden, a/k/a “Captain,” 46, of Grand Rapids, Daniel Reynold DeJager, a/k/a “Daniel Miester,” and “Danichi,” 35, of Tacoma, Washington, and Leesa Beth Vogt, a/k/a “Lis Bokt,” and “Moose,” 37, also of Grand Rapids, were sentenced by the Honorable Robert J. Jonker, Chief United States District Judge, for the commission of various financial crimes. In October, the three defendants pled guilty. Boden pled guilty to operating an unlicensed money transmitting business, money laundering, and structuring deposits to evade financial institution reporting requirements. DeJager pled guilty to conspiracy to operate an unlicensed money transmitting business and money laundering. Vogt pled guilty to structuring while operating the unlicensed money transmitting business.
The Court sentenced Boden to 30 months in custody and ordered him to pay $75,000 and forfeit bitcoin, among other penalties. DeJager received 10 months in custody for his role in the scheme and was ordered to pay $25,000. Vogt was sentenced to four years of probation and ordered to pay $62,711 to the government. In total, the defendants forfeited and were ordered to pay more than $200,000 in bitcoin and U.S. currency.
According to public records filed in the case, Boden, DeJager, and Vogt operated an unlicensed money transmitting business at The Geek Group, a registered non-profit entity, between March 2017 and December 2018, when federal agents searched the business. After the search, Boden, who was president of The Geek Group, and Vogt, its executive director, decided to close the business. DeJager purchased bitcoin from registered exchanges, often laundered it, and then sent it to Boden to sell. Boden and other staff at The Geek Group, including Vogt, would sell bitcoin to customers. Boden, Vogt, and others then “structured” deposits of the cash proceeds to avoid detection of their operation and to purchase more bitcoin. The defendants sold more than $740,000 in bitcoin. Boden’s customers included drug dealers, and he held himself out to be a money launderer, explaining to prospective customers that “people buy from” him because he sold “clean” bitcoin, not “dirty” bitcoin that could be traced. Boden boasted that he did not collect certain information required to be collected by a federal law that prevents money laundering, commonly known as “know your customer” information.
In connection with sentencing, DeJager explained to the Court that he and Boden started selling bitcoin because of their “anarchy streak”: they were drawn to “[t]he possibility of making a lot of money while deposing government controlled currency with one that was anonymous.” Boden acknowledged to the Court that they “mixed” bitcoin to thwart anti-money-laundering controls put in place by licensed cryptocurrency exchanges: they knew licensed exchanges would not sell them bitcoin if the exchanges discovered Boden’s customers were doing “something . . . illegal with it.”
Boden also solicited an undercover agent to collect a bitcoin debt that had purportedly accrued to $500,000 by using violence if necessary. Boden delivered a dossier with information on the debtor to the agent and said, among other things: “If all I wanted to do was f*** him up, his head in burlap is easy to do. I want my money. I don’t give a f*** about him; I don’t give a f*** about his family. I want my money.” And: “What happens to him, I don’t give a sh** . . . [Y]ou kill him, he ain’t gonna pay me. And, and I don’t need him dead; he’s dumb. . . . How you handle this, this is your world. I care that I get my money back. Beyond that, it’s whatever’s most efficient for you.” Boden told the agent, who he thought was a cocaine dealer, that a drug dealer was his “exact favorite kind of client.” Boden also said, “I want to get your world working on bitcoin.”
“These defendants knew they were breaking the law and ran their illegal money transmitting business anyway,” said U.S. Attorney Birge. “In addition to laundering money for their customers, some of whom were involved in drug trafficking, they set about to defeat the anti-money-laundering controls of licensed financial institutions. My hope is the Court’s sentences will deter others who think cryptocurrency operates in a lawless environment from committing similar financial crimes.”
“This case reflects the vital role HSI plays in disrupting criminals who use cryptocurrency to further their illegal enterprise,” said Homeland Security Investigations Detroit Acting Special Agent in Charge James C. Harris III. “Our special agents, working with federal and local partners, will continue to identify and investigate those who endanger our communities, and provide an avenue for criminals to conduct illegal activity.”
“These sentencings serve as an important reminder that the Internal Revenue Service – Criminal Investigation actively investigates all schemes designed to negatively impact taxpayers, including those in the emerging cryptocurrency market,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office.
Homeland Security Investigations and IRS Criminal Investigation handled the investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
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Texas Man Sentenced for $1.6 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Houston, Texas, man was sentenced in federal court today for defrauding two Kansas City-area brothers who have also been convicted in the investment fraud scheme.
Duc Nguyen, also known as “Doug,” 58, was sentenced by U.S. District Judge Roseann Ketchmark to five years in federal prison without parole. The court also ordered Nguyen to pay $1,641,000 in forfeiture and restitution.
On July 15, 2021, Nguyen pleaded guilty to one count of wire fraud. Nguyen admitted that he engaged in a fraud scheme from April 2018 to August 2019 in which he proposed an opportunity for high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. He told Phillip Hudnall of Lenexa, Kansas, and his brother, Brian Hudnall, of Kansas City, Missouri, that profit from these transactions would be three to five times the amount of the investment. Brian and Phillip Hudnall raised money from investors based upon these representations from Nguyen.
From April 2018 through June 2019, the Hudnall brothers wire transferred $1,641,000 in 29 separate transactions to two separate accounts controlled by Nguyen. Nguyen admitted that he did not use any of the monies for the purchase, refurbishment, and shipment of used oil equipment. The money from those accounts was traced to hundreds of thousands of dollars in transactions at Las Vegas casinos and for Nguyen’s personal expenses.
Although Phillip and Brian Hudnall were victims of Nguyen’s scheme, they made false representations and defrauded their investors of approximately $4.5 million. They pleaded guilty in June 2020, in separate but related cases, to their roles in the investment fraud scheme. Brian Hudnall was sentenced on Oct. 21, 2021, to three years in federal prison without parole and ordered to pay approximately $4.5 million in restitution. Phillip Hudnall is scheduled to be sentenced on April 26, 2022.
Phillip Hudnall told investors that his company, BirdDog Business Group, LLC, had completed two successful transactions – a $244,000 loan and a $490,000 loan, both of which had been repaid with an interest rate of 30 percent. In fact, no prior completed transactions occurred and no monies were received from the sale of any oil equipment including any principal or interest. To support the false claim, Phillip Hudnall requested that Brian Hudnall create documents as proof of the prior successfully completed transactions. Brian Hudnall wrote two checks on the bank account of his business, DonDon LLC, which was closed. Brian Hudnall also created a fraudulent memorandum to support the false claim.
Phillip Hudnall told investors their funds would be used to purchase specific pieces of oil equipment for refurbishment and resale. Persons invested approximately $3.6 million for the purpose of purchasing specific pieces of oil equipment. Phillip Hudnall and another person also obtained a loan from a bank in Pittsburgh, Pennsylvania, for approximately $1.3 million to finance the oil equipment scheme. Most of the money raised from investors, however, was spent on personal expenses.
These cases are being prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI and the Securities and Exchange Commission.
Tax Centers of America Franchisee Pleads Guilty to Preparing False ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Cindy K. Chung announced today.
John C. Thornton, age 74, of Gibsonia, Pennsylvania, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
According to information presented to court, Thornton owned and operated Tax Centers of America franchises in Pittsburgh. Between 2012 and 2017, IRS investigators uncovered high pattern of personal income tax returns containing Schedule C forms. Investigators uncovered falsification of Schedule C forms prepared and filed by Thornton and tax preparers at his business.
Judge Horan scheduled sentencing for June 21, 2022. The law provides for a total sentence of not more than three years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Thornton.
Syracuse Man Sentenced to 60 Months for Possessing Firearms and Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK – Kamar L. Boatman, 36, of Syracuse was sentenced today to serve 60 months (five years) in federal prison for possessing firearms and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, Syracuse Police Department. Boatman was also sentenced to a 3-year term of supervised release following his prison sentence.
As part of his previous guilty plea, Boatman admitted that he possessed at his residence in Syracuse the following firearms and ammunition recovered by the Syracuse Police Department-Special Investigations Division (SPD-SID) during the execution of a search warrant on May 31, 2018:
Firearms
One (1) Ruger pistol, model P89DC, caliber 9mm
One (1) Hi Point rifle, model 4595, .45 ACP caliber rifle,
One (1) Smith and Wesson rifle, model M&P15 .556 caliber rifle,
One (1) Defense Procurement Manufacturing Services model A15, Multi Caliber rifle (stolen)
Ammunition
Twenty-six (26) rounds of .223 caliber ammunition
Six (6) rounds of 9mm caliber ammunition
Eight (8) rounds of .45 caliber ammunition
As part of his previous guilty plea, Boatman also admitted that he was previously convicted of possession with intent to distribute cocaine (a felony) in United States District Court for the Northern District of New York, and was sentenced on May 7, 2010, to serve 48 months in federal prison. Today’s sentencing was Boatman’s fifth felony conviction. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Syracuse Police Department-Special Investigations Division (SPD-SID) and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick as 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.
Spencer Man Pleads Guilty to Meth ChargesRead the Press Release
A man who conspired to distribute methamphetamine pled guilty February 18, 2022, in federal court in Sioux City.
Armando Silva Reyes, 55, from Spencer, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine.
At the plea hearing, Silva Reyes admitted that between January 2020 and February 2021, he and others were involved in a conspiracy to distribute pound-levels of methamphetamine in Northern Iowa. On at least two separate occasions, Silva Reyes distributed more than a quarter pound of pure methamphetamine to individuals cooperating with law enforcement. On February 3, 2021, defendant and others received approximately 3 pounds of methamphetamine utilizing the United States Postal Service at the Spencer Post Office.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Silva Reyes remains in custody of the United States Marshal pending sentencing. On each count, Silva Reyes 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 Patrick T. Greenwood and was investigated by Iowa Division of Narcotics Enforcement, Clay County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4040. Follow us on Twitter @USAO_NDIA.
South Windsor Man Admits Defrauding Immigrant Clients, USCISRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that BABAR KHAN, 43, of South Windsor, pleaded guilty today via videoconference before U.S. Magistrate Judge Robert M. Spector to conspiracy and tax offenses related to a scheme through which individuals seeking immigration services were defrauded.
According to court documents and statements made in court, Khan and his wife, Khatija Khan, operated JLLAS CORP. and EIMAAN LLC, which were created to provide services to clients involved in proceedings with U.S. Citizenship and Immigration Services (“USCIS”). From 2015 to 2020, the Khans recruited clients who sought some form of immigration status, relief or benefit. Many of these clients are aliens residing in the U.S. without legal status and had limited education, a limited ability to understand English, and little to no knowledge of the documents that the Khans were filing with USCIS on their behalf.
Khatija Khan represented herself as an attorney with a background in immigration matters, even though she was not an attorney. The Khans prepared petitions and applications for their clients that contained information that they knew to be false. They also fabricated false documents to support their clients’ applications with USCIS without their clients’ knowledge. They then mailed, or caused to be mailed, these fraudulent applications and documents to USCIS, where they were received and made part of the official Alien file of each respective client.
Many of the Khans’ clients received no relief from USCIS despite paying the Khans significant amounts of money. To generate fees from clients, Khatija Khan filed applications with USCIS even when the submissions lacked merit or a legitimate basis.
Victims identified to date lost a total of $326,212 as a result of this scheme.
In pleading guilty, Babar Khan also admitted that, in the 2016 tax year, he failed to report to the IRS approximately $27,901 in additional taxable income and failed to pay an additional $7,942 in federal taxes that were owed.
Babar Khan and Khatija Khan were arrested on December 19, 2019. After her arrest, Khatija Khan continued to defraud multiple clients.
Babar Khan pleaded guilty to one count of conspiracy to commit mail fraud, and offense that carries a maximum term of imprisonment of 20 years, and one count of making and subscribing a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on May 23 in Bridgeport. Khan is released on a $50,000 bond pending sentencing.
On November 19, 2021, Khatija Khan pleaded guilty to one count of conspiracy to commit mail fraud and one count of mail fraud. She awaits sentencing.
This matter is being investigated by Homeland Security Investigations (HSI), and the Internal Revenue Service – Criminal Investigation Division, with assistance from U.S. Citizenship and Immigration Services. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Individuals who believe they have been victimized by this scheme contact Ines Cenatiempo, Victim-Witness Coordinator of the U.S. Attorney’s Office, at [email protected] or by phone at 203-821-3757.
South Texas woman admits to trafficking over $2 million in methRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Alamo woman has pleaded guilty to possessing with the intent to distribute more than 70 kilograms of highly pure meth, announced U.S. Attorney Jennifer B. Lowery.
On Nov. 1, 2021, Jacqueline Garcia was driving a silver SUV northbound on Highway 281 near Alice. Authorities conducted a traffic stop for an unsafe lane change. At that time, a service canine alerted to the rear of the SUV.
A thorough inspection revealed the vehicle’s gas tank to be abnormally solid. Upon examining the contents, law enforcement discovered nine concealed bundles of crystal meth.
Laboratory analysis later confirmed the substance to be meth at 98 percent purity. The drugs totaled more than 175 pounds with an estimated street value of more than $2 million.
At a hearing today before U.S. Magistrate Judge Jason B. Libby, Garcia admitted she was knowingly transporting the narcotics to Dallas and expected to be paid upon delivery.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 8. At that time, Garcia faces a minimum of 10 years and up to life in prison as well as a maximum possible $10 million fine.
Garcia has been and will remain in custody pending sentencing.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney John Marck is prosecuting the case.
South Los Angeles Man Pleads Guilty to Arson for Setting Hancock Park Pizzeria Ablaze During May 2020 Civil DisturbancesRead the Press Release
LOS ANGELES – A South Los Angeles man pleaded today to a federal criminal charge for deliberately setting Hancock Park’s Pizzeria Mozza restaurant on fire during the civil disturbances that struck the city in May 2020.
Mario Ernesto Alvarado, 44, pleaded guilty to one count of arson of a commercial building.
According to his plea agreement, during the civil disturbances that occurred in Los Angeles on May 30, 2020, Alvarado walked into a commercial building on Melrose Avenue that housed Pizzeria Mozza and its related business, Mozza2Go. After entering the business, Alvarado sprayed and lit an ignitable liquid. The resulting fire caused more than $300,000 in damage to the business and was extinguished by firefighters.
During the execution of federal search warrants at the time of Alvarado’s arrested in July 2020, law enforcement recovered the hat and t-shirt that Alvarado wore on the night of the arson, as well as a can of lighter fluid located in the back seat of the Ford Focus that he drove to and from the scene of the crime on the evening of May 30, 2020.
United States District Judge R. Gary Klausner has scheduled a June 27 sentencing hearing, at which time Alvarado will face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by the SAFE LA Task Force, which includes members of the FBI, the Los Angeles Police Department, the Los Angeles Fire Department, the Santa Monica Police Department, the Beverly Hills Police Department and the Long Beach Police Department.
Assistant United States Attorneys Bruce K. Riordan and Joseph D. Axelrad of the Violent and Organized Crime Section are prosecuting this case.
Sissonville Man Sentenced for Role in Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Sissonville man was sentenced today to two years and six months in federal prison for conspiracy to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Frederick Clyde Waite, 49, previously admitted that he participated in the conspiracy with multiple other individuals between July of 2019 and September of 2019. Waite participated in the distribution of methamphetamine that was transported to West Virginia from Akron during the conspiracy. In addition to receiving three pounds methamphetamine on July 25, 2019, Waite admitted that he attempted to acquire additional methamphetamine in the Akron area which was to be transported to West Virginia. After Waite negotiated the purchase of methamphetamine over the telephone, another individual traveled to Ohio to receive the drugs. The individual was stopped returning to West Virginia and troopers with the Ohio State Highway Patrol seized over 2.2 kilograms of methamphetamine from the vehicle.
United States Attorney Will Thompson made the announcement and commended the investigative work of multiple federal and local agencies. This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution..
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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. 3:19-cr-000246.
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Silver Spring Man Pleads Guilty to Soliciting and Paying for the Production of Child PornographyRead the Press Release
Greenbelt, Maryland – Patrick Lawrence Wood, age 35, of Silver Spring, Maryland, pleaded guilty today to conspiracy to produce child pornography. Wood admitted that he paid co-conspirators in the Philippines to procure images and videos of children under the age of 12 engaged in sexually explicit conduct requested by Wood.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, Wood used a social media platform to solicit the production of child pornography and used various digital money transfer services to send payment to co-conspirators in exchange for images and videos depicting children engaged in sexually explicit conduct, as requested by Wood.
As detailed in Wood’s plea agreement, the social media platform sent a Cybertipline Report to the National Center for Missing and Exploited Children, about a user who had requested, and subsequently paid, another user to create sexually explicit images of a prepubescent male and female and send them via the platform’s private message function. Law enforcement identified Patrick Wood as the user and executed a search warrant at Wood’s residence, seizing a laptop computer, desktop computer, two cellular phones and two tablets.
A search of Wood’s social media accounts and the seized electronic devices revealed that Wood communicated with three co-conspirators in the Philippines to procure images and videos of minors engaged in sexual conduct. Those communications occurred over various digital platforms. Wood routinely paid a co-conspirator for access to videos and images of minors engaged in sexually explicit conduct, including via live feeds involving a child engaged in the specific sexual conduct requested by and paid for by Wood. Images and videos of at least five minor male and female victims, all under the age of 12, engaging in sexual conduct were electronically sent during online chat sessions from co-conspirators in the Philippines to Wood, at Wood’s request, and in exchange for payment by Wood. During the four years prior to Wood’s arrest, he paid more than $40,000 to co-conspirators in the Philippines in exchange for the production of child pornography.
In addition, the investigation revealed that sexually explicit images and videos of at least eight minor male victims 14 to 17 years old were electronically sent to Wood at his request from locations in the United States during online chat sessions. At least one of those minor victims was also paid by Wood, in the form of gift cards and new clothes, for producing sexually explicit images requested by Wood.
In addition to the images and videos of child pornography identified on Wood’s social media and cloud-based storage accounts, the forensic examination of the devices seized from Wood’s home revealed over 150 images and five videos of child pornography. The forensic analysis also showed screenshots of a ticket confirmation for Wood to travel to Manila, Philippines for two weeks, but investigators confirmed that Wood did not ultimately travel there and cancelled the ticket.
As stated in his plea agreement, upon his release from prison, Wood will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Wood and the government have agreed that, if the Court accepts the plea agreement, Wood will be sentenced to between 17 years and 23 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 23, 2022 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI and the Montgomery County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Roanoke Man Sentenced for Conspiring to Traffic Methamphetamine, Fentanyl, Heroin, and CocaineRead the Press Release
ROANOKE, Va. – A Roanoke man was sentenced last week to 14 years in prison for conspiring with others to traffic dangerous drugs from sources across the country into the Roanoke Valley.
Stephen Cornell Vaughn Jr., 39, pleaded guilty to one count of conspiring to possess with the intent to distribute and to distribute 500 grams or more of methamphetamine, 400 grams or more of fentanyl, 500 grams or more of cocaine, and 100 grams or more of heroin.
Following his arrest, Vaughn admitted that he regularly obtained large quantities of methamphetamine and opioids, including fentanyl, from drug sources in both the Northeastern United States as well as Las Vegas, and then trafficked them into the Roanoke Valley for redistribution. Evidence in the case revealed that Vaughn had transported more than 100 pounds of narcotics into the local Roanoke community during the course of the conspiracy.
The investigation of Vaughn culminated in a traffic stop in Kansas in 2018, leading to his arrest. During the stop, one of Vaughn’s couriers was found to be in possession of 11.5 pounds of methamphetamine, eight pounds of cocaine, and 2.5 pounds of fentanyl, stashed in the trunk of a rental vehicle. Vaughn later acknowledged making and coordinating several such drug runs, paying as much as $130,000 for narcotics in a single transaction. Investigators established that Vaughn often flew to meet his contacts in other states while his couriers transported the purchased narcotics by car.
The Drug Enforcement Administration and Virginia State Police investigated the case with assistance from the region’s High Intensity Drug Trafficking Area (HIDTA) task force, the Roanoke City Police Department, the Roanoke County Police Department, and the City of Salem Police Department.
Assistant U.S. Attorneys Kari Munro and Jonathan Jones prosecuted the case for the United States.
Randolph County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Dewayne Simmons, of Elkins, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Simmons, 29, pleaded guilty today to one count of “Distribution of Methamphetamine—Aiding and Abetting.” Simmons admitted to selling methamphetamine in November 2020 in Randolph County.
Simmons faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Randolph County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Albert Perry Shreve, III, of Elkins, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Shreve, 43, pleaded guilty today to one count of “Distribution of Methamphetamine.” Shreve admitted to selling methamphetamine in Randolph County in April 2021.
Shreve faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Quincy, Illinois Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Earl Wierschem, 53, of the 600 Block of South 21st Street, was sentenced on February 25, 2022 to 120 months in the Federal Bureau of Prisons, to be followed by a five-year term of supervised release, for possession of child pornography.
At the sentencing hearing, the government presented evidence that in February 2018, law enforcement officials executed a search warrant at Wierschem’s residence in Quincy. During the search, officers seized multiple computer and video related devices, including Wierschem’s cell phone. The phone contained 30 images and one video of child pornography.
Also at the hearing, U.S. District Judge Sue E. Myerscough found that Wierschem had a prior Illinois state conviction for indecent solicitation of a child with the intent to commit aggravated sexual abuse.
Wierschem was indicted in February 2019 and pleaded guilty in April 2021.
The statutory penalties for possession of child pornography are a minimum of 10 years and up to 20 years of imprisonment, a minimum five-year term and up to a life term of supervised release, and not more than a $250,000 fine.
The Quincy Police Department investigated the case. Assistant U.S. Attorney Tim Bass represented the government in the prosecution.
The case 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.
Putnam County Man Sentenced to Seven Years in Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was sentenced today to seven years in federal prison after previously pleading guilty to possession with intent to distribute methamphetamine and heroin.
According to court documents, on November 15, 2020, a trooper with the West Virginia State Police arrested Dennis Wayne Snyder, 31, on an outstanding warrant. The arrest took place at a gas station in Nitro. The trooper searched the vehicle Snyder was in and found approximately 221 grams of methamphetamine and approximately 31 grams of heroin. Snyder also had digital scales, plastic bags, and $2,842 in his possession.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force, which is comprised of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West provide investigative support to the task force. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio, also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant U.S. Attorneys Courtney L. Cremeans and Joseph F. Adams prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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-00109.
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Ponte Vedra Beach Man Sentenced to Nearly 8 Years for Knowingly Receiving A Video of the Sexual Abuse of A BabyRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Harrison Holland Frith (40, Ponte Vedra Beach) to 7 years and 11 months in federal prison for receiving a video depicting child sexual abuse. Frith was also ordered to pay $5,000 in restitution to a victim of his crimes, to serve 10 years of supervised release upon his release from prison, and to register as a sex offender. Frith had pleaded guilty on October 27, 2021.
According to court documents, Homeland Security Investigations (HSI) in Jacksonville received information from HSI agents in Fayetteville, Arkansas, that the agents had identified a man in Arkansas who was communicating online with others, including Frith, via Zoom and RingCentral meeting platforms to share child sexual abuse material. The content shared included videos of the Arkansas man sexually abusing a child between the ages of 5 and 6 years old. Frith is seen on a video made by the Arkansas man masturbating while watching a video of the Arkansas man sexually abusing the child. Frith can be heard expressing his desire to sexually abuse the child as well. HSI (Fayetteville) discovered Frith in other social media chatrooms, in which child sexual abuse material was discussed and shared.
On May 18, 2021, HSI (Jacksonville) executed a federal search warrant at Frith’s residence in Ponte Vedra Beach and encountered Frith at home. In an interview with agents, Frith admitted to receiving child sexual abuse videos over the internet and to participating in online video meetings with others during which child sexual abuse videos were played. He also acknowledged requesting videos of the sexual abuse of children as young as 8 years old. Frith told agents they would find files of child sexual abuse material on his laptop computer. He also said that he had viewed such material the night before agents had arrived. A search of Frith’s electronic devices yielded child sexual abuse material on four devices including two laptop computers, an iPad, and a thumb drive. One such file received by Frith in April 2021 showed an adult male removing the diaper from a baby boy and then his sexual assault of the baby.
“A child is re-victimized every time a predator views or shares child pornography,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “HSI Jacksonville, and our partners with Clay County Sheriff’s, St. Johns Sheriff’s Office and HSI Fayetteville, are working diligently to ensure these predators are identified and prosecuted to the fullest extent of the law for these heinous crimes.”
This case was investigated by Homeland Security Investigations, the St. Johns County Sheriff’s Office, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Poca Man Sentenced to Prison for Role in $4 Million Warranty Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Stanley Clark, 68, of Poca, was sentenced to one year and three months in prison for his role in a scheme to defraud Toyota of more than $4 million. He will also be required to pay restitution to Toyota.
According to court documents, Clark was employed as a transfer agent for a company contracted by Toyota to administer an extended warranty extension program where Toyota had offered to repurchase certain trucks for 150% of their value, so long as those trucks were owned by individual Toyota customers. Clark admitted he was a participant in a fraudulent scheme whereby a Kentucky used car dealership, Big Blue Motor Sales, bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced Toyota to repurchase the trucks at 150% of value.
Clark admitted that the execution of the scheme relied on him to coordinate fraudulent truck repurchase meetings, work with a notary to forge the false owners’ signatures on truck repurchase documentation, and mail the fraudulent repurchase documentation that induced Toyota to repurchase the trucks. Clark received a cash payment from Big Blue Motor Sales for every fraudulent transaction. The scheme participants ran 350 trucks through the scheme between 2013 and 2015, causing approximately $4.3 million in losses to Toyota. Clark pleaded guilty to mail fraud in February 2020.
United States District Judge Joseph R. Goodwin imposed the sentence and noted that a term of imprisonment was appropriate in this case because the fraud scheme was not a short term operation and it involved hundreds of crimes completed over and over again.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the Federal Bureau of Investigation (FBI), the West Virginia State Police, and the West Virginia Office of the Insurance Commissioner.
Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00028.
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Omaha Man Sentenced for Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Tyler Welsh, 25, of Omaha, Nebraska, was sentenced today in federal court for distribution and receipt of child pornography. Senior United States District Judge Joseph F. Bataillon sentenced Welsh to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Welsh will serve 10 years of supervised release and will be required to register as a sex offender. Welsh will also be required to pay $3,000 in restitution.
In November 2018, agents with the FBI Child Exploitation and Human Trafficking Task Force began investigating after receiving a Cyber Tipline Report stating that a Dropbox user was uploading files of child pornography. In August 2019, agents executed a search warrant at Welsh’s residence in Omaha and seized his electronic devices. In addition to files stored on online storage platforms, Welsh had at least 248 images and 8 videos of child pornography saved on his cell phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI Child Exploitation and Human Trafficking Task Force.
Oil City Man Sentenced to 16 Years for Receiving Sexual Images of ChildrenRead the Press Release
Erie, Pa. - A resident of Oil City, Pennsylvania, has been sentenced in federal court to 200 months in jail, lifetime supervised release and ordered to pay $15,000 in restitution ($3,000 to five separate identified victims) on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Brent Lockwood, 64.
According to information presented to the court, Lockwood received thousands of computer images and videos depicting minors engaging in sexually explicit conduct. Lockwood also did not dispute that there was sufficient evidence to convict him of traveling to the Philippines on numerous occasions for the purpose of engaging in sexual activity with minors. The evidence also revealed that Lockwood had, in fact, engaged in sexual activity with minors during his numerous trips to the Philippines.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
Prior to imposing sentence, Judge Haines stated that Lockwood showed no remorse for his conduct and that Lockwood’s sentencing submissions attempted to justify his conduct in a way that was not credible.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Lockwood.
Ohio man admits to selling cocaine, methamphetamine, and heroinRead the Press Release
WHEELING, WEST VIRGINIA – Kaprice D. Russell, of Steubenville, Ohio, has admitted to drug charges, United States Attorney William Ihlenfeld announced.
Russell, age 34, pleaded guilty today to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin,” “Aiding and Abetting the Distribution of Cocaine Hydrochloride within 1000 feet of a Protected Location,” one count of “Distribution of Heroin,” and one count of “Distribution of Cocaine Base.” Russell admitted to working with others to sell cocaine base, cocaine hydrochloride, methamphetamine and heroin from June 2019 to August 2021 in Ohio County and elsewhere, including the Southern District of Ohio.
Russell f faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000 for the aiding and abetting near a protected location charge and faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other charges. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Newark, Delaware Resident Who Received Child Pornography Sentenced to Six Years in PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Newark, Delaware resident was sentenced on February 25, 2022, to six years in prison for receiving child pornography over the internet. Chief U.S. District Judge Leonard P. Stark pronounced the sentence.
According to court documents, James Crossan, 24, sought out minors on social media platforms such as Instagram and fostered abusive relationships with them both online and via text message. For multiple years, Crossan engaged in grooming tactics including complimenting victims, offering to send them gifts, expressing a desire to meet in person, discussing sexual acts, and requesting photographs of victims. Crossan used aggressive and manipulative tactics to coerce minors to create and send child pornography to him. Crossan’s exploitation harmed multiple minor victims across the country.
U.S. Attorney Weiss stated, “My office’s message for individuals who chose to prey upon and sexually exploit innocent children has been consistent – our federal law enforcement partners will use every available resource to find you. Protecting innocent children is a priority for my office, and you will be prosecuted to the fullest extent of the law.”
“The FBI and our local, state, and federal partners work tirelessly to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “We encourage parents and caretakers to help us shut the door on predators before they strike by reporting anything suspicious to 1-800-CALL-FBI and visiting FBI.gov for more information about the threat of child predators.”
Assistant U.S. Attorney Carly Hudson prosecuted the case, which was investigated by the FBI Baltimore’s Wilmington Resident Agency.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos. 1:21-cr-53 and 1:21-cr-40.
Newark Woman Pleads Guilty to Wire Fraud and Money Laundering in Connection with CARES Act FraudRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Newark woman pleaded guilty February 24, 2022, to fraudulently obtaining a Paycheck Protection Program (PPP) loan and illegally spending those loan proceeds. Chief Judge Colm F. Connolly accepted the plea.
According to court documents, between March 30, 2020, and January 24, 2021, Ana Soto, 41, submitted seventeen (17) fraudulent loan applications to the U.S. Small Business Administration (SBA) and its authorized lenders in order to obtain loans through the small business loan programs established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These seventeen loan applications were made on behalf of five entities controlled by Soto or her close relations. Each of the loan applications falsely stated the amount of gross revenues, cost of goods sold, and number of employees. In some instances, the loan applications falsely claimed the businesses were in operation at the start of the Coronavirus Pandemic. As a result of these false applications, Soto obtained approximately $246,000, and applied for, but was denied, an additional approximately $500,000 in CARES Act loans.
Soto pleaded guilty to one count of wire fraud and one count of money laundering and faces a maximum penalty of 20 years in prison when sentenced. Chief Judge Connolly will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Ms. Soto perpetrated her fraud by taking money from programs established to help the country’s small business owners during the early days of a global pandemic. At a time of great uncertainty and vulnerability, the defendant sought to enrich herself through criminal acts. My office remains committed to protecting the integrity of the CARES Act and all government programs. Prosecuting those who defraud the government and steal from their fellow citizens is a priority, and we will aggressively pursue these actors.”
“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of greedy individuals,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI will continue to work with our partners to root out those who lie and cheat the government out of money to enrich themselves.”
“Ana Soto used deceit and fraud to obtain loans that she was not entitled to receive,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Her guilty plea is a reminder that IRS-CI, along with our partners, remain committed to investigating these types of crimes and holding the offenders accountable.”
This case was investigated by IRS-Criminal Investigation and FBI-Baltimore Division’s Wilmington Resident Office. This case is being prosecuted by Assistant U.S. Attorney Lesley F. Wolf.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-49-CFC.
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.
New Orleans Man Pleads to Gun and Drug Distribution ChargesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that QUENTRELL BERTHOLOTTE, age 29, of New Orleans, Louisiana, pleaded guilty as charged on February 24, 2022 to a four count indictment for possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), possession with intent to distribute fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, on January 14, 2020 BERTHOLOTTE was seen by the Federal Bureau of Investigation (“FBI”) on video surveillance wielding a 5.56 caliber “ghost gun,” a weapon which does not have a serial number. During a search of his girlfriend’s apartment on April 22, 2021, FBI agents found over forty (40) grams of fentanyl, the “ghost gun,” a Glock Model 27 firearm, and over $30,000.00 in U.S. currency. BERTHOLOTTE had been previously convicted of a drug trafficking offense in Orleans Parish.
BERTHOLOTTE’s sentencing is scheduled for June 23, 2022 before the Honorable Barry W. Ashe in the United States District Court for the Eastern District of Louisiana.
For possession with intent to distribute narcotics, BERTHOLOTTE faces a minimum term of five (5) years up to a maximum term of forty (40) years imprisonment, a fine of up to $5,000,000.00, a minimum of five (5) years of supervised release following any term of imprisonment, and a $100.00 mandatory special assessment fee. For possession of a firearm in furtherance of a drug trafficking crime, he faces a minimum term of five (5) years up to a maximum term of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release, and a $100.00 mandatory special assessment fee. For possession of a firearm by a convicted felon, he faces up to a maximum of ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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New Orleans Man Indicted for Gun and Drug Trafficking OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that DESEAN CHRISTY, age 37, of New Orleans, Louisiana, was charged on February 25, 2022 in a three-count indictment by a federal grand jury for violations of the Federal Gun Control Act and Federal Controlled Substances Act. Specifically, in Count One CHRISTY is charged with possession with intent to distribute a controlled substance in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). In Count Two, he is charged with possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Finally, in Count Three, he is charged 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).
According to court documents, CHRISTY was previously convicted of illegally possessing heroin, cocaine, and attempted possession of a firearm by a convicted felon in Orleans Parish Criminal District Court. Due to his criminal history, he is prohibited from having a firearm. He is now charged with possessing a Glock 22, .40 caliber handgun in furtherance of a drug trafficking crime on February 10, 2022. He is further alleged to have possessed with the intent to distribute cocaine base (“crack”).
If convicted of Count 1, CHRISTY faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, at least three (3) years of supervised release, and a $100.00 mandatory special assessment fee. If convicted of Count 2, he faces a minimum of five (5) years and up to a maximum of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release, and a $100.00 mandatory special assessment fee. If convicted of Count 3, he faces a maximum of ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge 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.
The case was investigated by the New Orleans Police Department and Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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New Castle Woman Had Role in Cocaine Trafficking OrganizationRead the Press Release
PITTSBURGH, PA -- A resident of New Castle, Pennsylvania, pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Deia Eggleston, age 46, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Eggleston was prosecuted in connection with a cocaine distribution drug trafficking organization located in New Castle, Pennsylvania, that included, among other individuals, Dondi Searcy, Jr. Eggleston participated in the conspiracy by allowing Searcy and others to use her home to manufacture and store illegal narcotics and firearms. She also assisted Searcy in connection with a kilogram of cocaine that Searcy arranged to have mailed from California to the home next door to Eggleston’s residence. That package was intercepted by law enforcement prior to delivery.
Judge Horan scheduled sentencing for June 21, 2022, at 10:30 a.m. The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
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.
Modesto Hells Angels Motorcycle Club Prospect Pleads Guilty to Drug TraffickingRead the Press Release
FRESNO, Calif. — Michael Pack, 35, of Modesto, pleaded guilty today to possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pack, a prospect of the Hells Angels Modesto Motorcycle Club, was part of a drug trafficking conspiracy led by Hells Angels President Randy Picchi. The drug conspiracy involved Picchi’s wife, Tina Picchi, Michael Mize, and Michael Pack. Randy Picchi directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS-Criminal Investigation, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
Pack is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 23, 2022. Pack faces a maximum statutory penalty of 40 years in prison, a mandatory minimum sentence of five years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Mexican National Sentenced to 18 Years for Dealing CocaineRead the Press Release
ERIE, Pa. - A Mexican national has been sentenced in federal court to 18 years in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Adelfo Rodriguez-Mendez, 42.
According to information presented to the court, Rodriguez-Mendez conspired to distribute and distributed cocaine out of what was then known as the East Coast Monster Garage on West 12th Street in Erie, Pennsylvania from August 2015 through June 29, 2017. Assistant United States Attorney Paul S. Sellers, who prosecuted this case on behalf of the government, told the court that Rodriguez-Mendez had “managed a drug trafficking enterprise that was extensive, lengthy and profitable” and admitted testimony and evidence during the sentencing that $939,610.00 in cocaine proceeds were seized as part of the investigation.
Prior to imposing sentence, Judge Haines stated that the evidence had demonstrated that Rodriguez-Mendez was the organizer and leader of a substantial drug distribution network that was responsible for trafficking between five and fifteen kilograms of cocaine into Erie, Pennsylvania during the time charged in the indictment.
United States Attorney Chung commended the Immigration and Customs Enforcement, Homeland Security Investigations, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rodriguez-Mendez.
Meth dealer heads to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 51-year-old Corpus Christi resident has been ordered to federal prison after selling large amounts of meth from a Corpus Christi residence, announced U.S. Attorney Jennifer B. Lowery.
Franklin Herbert Odell pleaded guilty Oct. 5, 2021, to conspiring to possess with intent to distribute meth.
Today, U.S. District Judge Drew B. Tipton ordered him to serve a 125-month term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Odell’s multiple drug trafficking convictions.
The investigation began following reports of drug distribution in the area of Winnipeg Drive in Corpus Christi. This ultimately led to the execution of a search warrant at Odell’s residence in February. At that time, authorities discovered him in his bathroom flushing a bag of suspected meth down the toilet. They were able to recover over 300 grams of pure meth from the residence along with other narcotics.
Odell has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Mercer County Man Sentenced to 2 Years for Conspiring to Distribute Crack CocaineRead the Press Release
PITTSBURGH – Harold Hooten was sentenced to 24 months in prison for conspiring to distribute cocaine base in 2021, United States Attorney Cindy K. Chung announced today.
Hooten, age 44, of Hermitage, Pennsylvania, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon also ordered Hooten to serve three years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation in this case.
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.
Lynn Woman Pleads Guilty to Role in Counterfeit Pill Trafficking OrganizationRead the Press Release
BOSTON – A Lynn woman pleaded guilty today in federal court in Boston to her role in a large-scale drug trafficking organization that manufactured and distributed hundreds of thousands of counterfeit Percocet pills containing fentanyl.
Laurie Caruso, 51, pleaded guilty today to one count of conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for June 29, 2022. On June 30, 2021, Laurie Caruso was arrested and charged along with co-conspirators Vincent Caruso, Ernest Johnson and Nicole Benton.
According to the charging documents, Laurie Caruso was a member of a large drug trafficking organization (DTO) operated by her son, Vincent Caruso, a self-admitted Crip gang member, that included Johnson and Benton, among others. The DTO allegedly sold counterfeit prescription pills containing fentanyl – produced using multiple large pill presses capable of generating thousands of pills per hour – to street gangs for further distribution on the North Shore of Massachusetts. A single counterfeit fentanyl pill allegedly retails between $10-$20, thereby generating millions of dollars in retails sales.
Laurie Caruso admitted to being a primary distributor for the DTO, which historically manufactured its own counterfeit fentanyl pills when it was based in Saugus. As described during today’s hearing, after interdiction by law enforcement, the DTO outsourced its manufacturing, and would receive deliveries of large quantities of fentanyl pills manufactured in Rhode Island. Once delivered, the DTO would repackage and distribute those pills for sale locally in communities North of Boston. Laurie Caruso admitted to trafficking over 30 kilograms of fentanyl, sold in the form of hundreds of thousands of counterfeit Percocet pills containing pressed fentanyl. As part of her plea agreement, Laurie Caruso also agreed to forfeit over $100,000 in cash seized from the DTO that were the proceeds of drug trafficking.
On Sept. 30, 2021, Benton pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances and to possessing a firearm in furtherance of a drug trafficking conspiracy. Vincent Caruso and Johnson have pleaded not guilty. Vincent Caruso was recently indicted on Jan. 19, 2022, for his role in the conspiracy and faces additional charges.
The charge of conspiracy to manufacture, distribute, and possess with intent to distribute, fentanyl provides for mandatory sentences of five or 10 years, and maximum penalties of up to 40 years or life in prison, depending on drug weight, up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy: Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Sentenced for Bank Fraud Conspiracy and Identity TheftRead the Press Release
BOSTON – A Lynn man was sentenced on Friday, Feb. 25, 2022, for his involvement in a scheme to defraud several financial institutions and obtain money from customers using fraudulent identification documents.
Emeka Iloba, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to 33 months in prison and six years of supervised release. Iloba was also ordered to pay $1,672,677 in restitution. On Aug. 26, 2021, Iloba pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Iloba participated in, and at times directed, a scheme to defraud multiple financial institutions. To carry out the scheme, Iloba and others used fraudulent identification documents, among other means, to withdraw money from customers’ bank accounts in the form of checks, cash and wire transfers. The fraudulently obtained funds were then deposited in other bank accounts opened in the names of fictitious business entities before being withdrawn. This scheme resulted in $1,672,677 in losses between April 2017 and March 2018.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Lake Havasu City Woman Sentenced for Casting Illegal VoteRead the Press Release
PHOENIX, Ariz. – Marcia Johnson, 70, of Lake Havasu City, Arizona, was sentenced today by U.S. District Judge Diane J. Humetewa to one year of supervised probation and fined $1,000. Johnson previously pleaded guilty to one count of Voting More than Once, a felony offense.
“Election integrity has two pillars: ensuring that only eligible voters cast ballots; and insisting that all eligible voters who choose to vote can do so easily and efficiently, with confidence that their vote will be counted,” said United States Attorney Gary Restaino. “Prosecution is a key deterrent on the rare occasions when illegal votes are cast, and this prosecution comes with an important collateral consequence: as a result of her federal felony conviction, Ms. Johnson will lose the right to vote in Arizona until she completes her term of probation.”
Johnson pleaded guilty in December 2021 to casting two ballots in the November 2018 federal election. Johnson voted twice by casting her own mail-in ballot as well as the one that was sent to her father, who died in 2012 and whose name had remained on the Mohave County voter rolls. According to the charging document, mail-in ballots sent to Johnson’s deceased father were returned in seven other federal elections after his 2012 death.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Frank T. Galati, District of Arizona, handled the prosecution.
CASE NUMBER: CR-21-08140-PHX-DJH
RELEASE NUMBER: 2022-019_Johnson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Knott County Man Sentenced to over 24 Years for Two Armed CarjackingsRead the Press Release
PIKEVILLE, Ky. – Christopher Adam Cole, 34, of Knott County, was sentenced on Friday to 294 months in federal prison, by United States District Judge Robert E. Wier, for charges related to two armed carjackings.
According to his plea agreement, Cole admitted to using a firearm to steal a vehicle from a victim on August 28, 2020. Cole also admitted that, just a few days later, on September 4, 2020, he stole a vehicle from another victim. During the sentencing hearing, the Court found that, on September 4, 2020, the victim had jumped on the hood of the vehicle, in an attempt to keep Cole from stealing the vehicle, and only let go when Cole pointed a gun at him. The victim sustained a broken leg and collarbone in connection with the incident.
Under federal law, Cole must serve 85 percent of his 294-month prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release. Additionally, Cole was also ordered to pay restitution in the amount of $10,120 to the victim of the September 4, 2020 carjacking.
During the September 4, 2020 carjacking, Cole was assisted by Angela “Granny” Vanover, age 44, of Perry County. Vanover pled guilty to aiding and abetting the carjacking, by driving the vehicle while it was being stolen from the victim. Vanover was also sentenced on Friday, to 126 months in federal prison. Vanover was also ordered to pay restitution the victim.
Brandi Hurt, age 28, of Perry County, who pled guilty to assisting Cole during the August 28, 2020 carjacking was previously sentenced to 67 months in federal prison.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; R. Shawn Morrow, Special Agent in Charge of the ATF Louisville Field Division; Joseph Engle, Perry County Sheriff; and Dale Richardson, Knott County Sheriff, jointly announced the sentences.
The investigation was completed by the ATF, Perry County Sheriff’s Office, and Knott County Sheriff’s Office, with assistance by the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Justice Department and Federal Maritime Commission Reaffirm and Strengthen Partnership to Promote Fair Competition in the Shipping IndustryRead the Press Release
The Justice Department and the Federal Maritime Commission (FMC) today reaffirmed their continuing commitment to jointly enforcing competition laws and strengthening their cooperation to promote competition in the ocean freight transportation system.
The FMC is a bipartisan, independent Executive Branch agency whose mission is to ensure a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices. The Justice Department is the Executive Branch agency charged with promoting economic competition through enforcing and providing guidance on antitrust laws and principles.
The FMC and the Justice Department possess competition expertise unique to their respective agencies and have successfully worked together in the past. In July 2021, the working relationship between the FMC and the Department was formalized with the signing of a Memorandum of Understanding (MOU). The MOU established a framework for partnership between the FMC and the Justice Department’s Antitrust Division that enhances cooperation in the enforcement of antitrust and competition laws, including the Shipping Act, including by facilitating information exchange between and among attorneys, economists and technical experts. The objectives of the President’s Executive Order on Promoting Competition in the American Economy will be supported by this continued partnership.
Building upon the July 2021 MOU, Attorney General Merrick B. Garland and Chairman Daniel B. Maffei today announced new steps the two agencies will take to strengthen this partnership. The Justice Department will provide the FMC with the support of attorneys and economists from the Antitrust Division for enforcement of violations of the Shipping Act and related laws. The FMC will provide the Antitrust Division with support and maritime industry expertise for Sherman Act and Clayton Act enforcement actions.
“The Justice Department will continue to aggressively enforce our antitrust laws – no matter the industry, no matter the company, and no matter the individual,” said Attorney General Garland. “Competition in the maritime industry is integral to lowering prices, improving quality of service, and strengthening supply chain resilience. Expanding joint enforcement partnerships like the partnership between the FMC and DOJ is one of our most powerful tools for promoting competition. Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping.”
“The Attorney General and I share both the priority of a competitive marketplace and a commitment to pursue enforcement actions when necessary,” said Chairman Maffei. “Our agencies have a history of cooperating to the benefit of the American consumer and this new support will help ensure that the working relationship will help both government entities in our shared goal of fair competition.”
Jefferson Parish Man Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that CHRIS HABISREITINGER, 51, from Jefferson Parish, pled guilty on February 23, 2022 to conspiracy to distribute and possess with the intent to distribute methamphetamine, and possession with the intent to distribute methamphetamine, in violation of Title 21 United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
HABISREITINGER took part in a conspiracy to distribute methamphetamine throughout Jefferson Parish and surrounding areas for over a year.
At sentencing, HABISREITINGER faces up to a maximum term of imprisonment of twenty (20) years, a maximum fine of up to $1,000,000.00, at least three (3) years of supervised release following any term of imprisonment., and a $100 mandatory special assessment fee per count, pursuant to Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
Jamestown Man Sentenced to More Than 27 Years in Prison for Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Richard LaFrance, 35, of Jamestown, NY, who was convicted of enticement of a minor, was sentenced to serve 327 months in prison and lifetime of supervised by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Douglas A. C. Penrose, who handled the case, stated that LaFrance, who was 34 years-old at the time, met a 14-year-old (Minor Victim) in April of 2019, and began communicating with her via email and text message. The communications between LaFrance and the Minor Victim were sexually explicit and included LaFrance requesting that the Minor Victim send him naked pictures. In addition, LaFrance met up with the Minor Victim on at least two occasions and engaged in sexual intercourse.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James B. Quattrone.
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Iowa Man Sentenced to Federal Prison for Child Pornography ConvictionsRead the Press Release
A man who illegally possessed child pornography was sentenced February 24, 2022, to 4 years in federal prison.
Johnny E. Gutierrez, 21, from Melvin, Iowa, received the prison term after an April 21, 2021, guilty plea to two counts of possession of child pornography.
Gutierrez admitted that between February 2016 and November 2019, he possessed visual depictions of minors engaged in sexually explicit conduct, including depictions involving a minor who had not attained 12 years of age. Gutierrez further admitted to distributing child pornography to other individuals. As a result of the investigation, officers recovered approximately 51 images and 26 videos of child pornography from Gutierrez’s computer hard drive and approximately 38 images of child pornography from his cell phone.
Gutierrez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gutierrez was sentenced to 48 months’ imprisonment and must pay a total of $3,000 in restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and Patrick T. Greenwood and investigated by Homeland Security Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4073. Follow us on Twitter @USAO_NDIA.
Huntington Man Sentenced to Prison for Illegal Possession of FirearmsRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to one year and three months in federal prison for prohibited possession of firearms by a convicted felon.
According to court documents and statements made during the hearing, Kevlin Jerrod Jackson, 41, previously admitted that on May 12, 2021, law enforcement officers executed a search warrant at his residence located on 7th Street in Huntington. Jackson, who was present just prior to the search, was arrested after investigators seized a .45 caliber pistol and a 9mm pistol from his residence. Jackson later admitted that he possessed the firearms, that he was a convicted felon, and that he used another individual to purchase the firearms on his behalf. Jackson was convicted of distributing cocaine in 2011 in the United States District Court for the Southern District of West Virginia and was prohibited from possessing firearms by virtue of his conviction.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00091.
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Huntington Man Sentenced to Four Years in Prison for Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Franklin Delano Chafin, 32, of Huntington, was sentenced today to four years in federal prison for being a felon in possession of a firearm.
According to court documents and statements made in court, on May 18, 2019, a law enforcement officer responded to a reported drug complaint at a residence on 23rd Street in Huntington. Upon leaving the residence, the officer came across Chafin who had been riding a bicycle and wearing a backpack. The officer and Chafin spoke, at which time the defendant refused to keep his hand out of his pocket. Chafin then admitted that he had needles on him that he wasn’t supposed to have because he was on probation. Chafin further admitted that there was a gun in his backpack. The officer searched the backpack and recovered a loaded .357 Magnum Ruger revolver. Chafin is prohibited from possessing a firearm due to his 2009 felony convictions for robbery in the 1st degree in Wayne County Circuit Court and burglary in Cabell County Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Police Department and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
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.
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. 3:19-cr-00200.
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Huntington Man Pleads Guilty to Distributing FentanylRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to distribution of fentanyl.
According to court documents and statements made during the hearing, Parrish Wayne Spurlock, 54, sold a confidential informant 0.8 grams of suspected fentanyl on May 11, 2021. The drug transaction took place behind Spurlock’s Huntington residence on North High Street. Testing by the West Virginia State Police Lab confirmed the substance was fentanyl. Spurlock admitted to law enforcement officers that he had sold significant amounts of methamphetamine and heroin over an approximate one year period.
Spurlock 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 efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00250.
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Hollywood Woman and TV Actor Charged with Participating in Home-Delivery Drug Trafficking Ring that Led to Fatal Fentanyl OverdoseRead the Press Release
LOS ANGELES – A Koreatown man is scheduled to be arraigned this afternoon after being arrested Saturday on federal charges alleging he worked with a Hollywood woman who ran a drug-delivery operation that in one incident sold counterfeit oxycodone pills containing fentanyl that resulted in a fatal opioid overdose.
Mucktarr Kather Sei, 36, whose stage name is Kather Sei, was charged in a federal grand jury indictment returned February 24. The indictment alleges that Sei delivered fentanyl-laced pills that led to the death of a Beverly Hills man in late 2020.
The second defendant in this case who allegedly orchestrated the drug-delivery service – Mirela Todorova, also known as “Mimi,” 33, of Hollywood – is currently being held without bond after being charged last year for possession with intent to distribute cocaine and MDMA (commonly called ecstasy). Todorova – who holds United States, Bulgarian, and Canadian citizenship – also is scheduled to appear in court this afternoon for a status conference in her case.
Todorova and Sei are charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances resulting in death, and one count of distribution of fentanyl resulting in death. The four-count superseding indictment filed last week also charges Todorova with the two previously alleged drug counts stemming from the seizure of cocaine and MDMA at her residence in March 2021.
According to the indictment, Todorova provided cellphones and narcotics – including counterfeit oxycodone pills that contained fentanyl – to Sei and other drivers to facilitate the delivery of drugs to customers across Los Angeles County and elsewhere. Todorova also delivered drugs herself and gave Sei keys to her Hollywood apartment so Sei could access drugs when Todorova visited Mexico, where she continued to manage her drug operation while tending to her pet jaguar, “Princess.”
On November 15 and 16, 2020, after a 37-year-old man placed orders for oxycodone pills to Todorova’s phone number, Sei allegedly delivered pills laced with fentanyl that caused the man’s fatal overdose in his Beverly Hills home. As part of that transaction, Sei called the man from a phone that Todorova provided to facilitate drug sales, the indictment alleges.
Before and after the fatal overdose, other drug customers raised concerns about the authenticity and safety of the oxycodone pills that Todorova and Sei allegedly distributed. Several weeks before the death of the drug customer in Beverly Hills, according to the indictment, another customer texted Todorova, “Yo mimi the oxys are dirty.”
To facilitate drug payments, Todorova gave Sei and her other drug delivery drivers her electronic payment usernames such as “$clubmimi,” “@clubmimi,” “@mimiclub,” and [email protected].
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges of conspiracy to distribute drugs and drug distribution resulting in death carry a mandatory minimum sentence of 20 years in federal prison and a maximum sentence of life imprisonment.
Assistant United States Attorneys Patrick Castañeda and Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
This case is the result of an investigation by the Los Angeles Police Department and the Drug Enforcement Administration’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker.
Grand Jury Indicts New York Resident in Alleged Grandparent ScamRead the Press Release
PROVIDENCE, R.I. – A Jamaica, NY, resident who allegedly took up temporary residences in New Haven, CT, and Brookline, MA, where he allegedly retrieved packages containing cash sent by individuals victimized by grandparent scams in several states, including Rhode Island, has been indicted by a federal grand jury in Rhode Island on fraud and aggravated identity theft charges, announced United States Attorney Zachary A. Cunha.
The indictment charges Jean-Richard Audate, 35, with conspiracy to commit mail fraud, three counts of mail fraud, and aggravated identity theft.
It is alleged in the indictment that Audate and others participated in a conspiracy to defraud elderly victims by posing on the telephone as their grandchild or other family member, or an attorney representing a family member. The caller would convince victims that their family member had been arrested or incarcerated in another state or, was in financial and legal distress; and that cash payments were urgently needed to pay legal fees or related costs. Victims were instructed to send cash payments via FedEx or UPS to addresses provide by the conspirators.
According to information presented to the court, beginning in January 2021, the New Haven Police Department began to receive reports from several out-of-state police departments, including departments in Rhode Island, that elderly residents had been defrauded of large amounts of money through a grandparent scam. The victims were instructed to send cash payments to addresses in New Haven. New Haven Police determined that many of the addresses were in close proximity to one another, including the address of an Airbnb allegedly utilized by Audate. It is alleged that Audate visited many of the addresses and retrieved the packages, many of which New Haven Police and the FBI determined allegedly contained between as $7,900 and $150,000 in cash.
Audate was arraigned in U.S. District Court in Providence on February 24, 2022, and released on $10,000 unsecured bond.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
United States Attorney Cunha thanks the Lincoln, RI, and Brookline, MA, Police Departments for their assistance in the investigation.
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Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Kenneth A. Hale, 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to two counts of being a convicted felon in possession of a firearm and possession of methamphetamine, announced United States Attorney Clifford D. Johnson.
Hale was sentenced to 120 months in prison to be followed by 2 years of supervised release.
According to documents in the case, Hale encountered police on two separate incidents. In April 2021, a 911 call was placed regarding a domestic dispute. When officers arrived, Hale ran and resisted law enforcement when a firearm fell from his waist. Hale was arrested and charged in State Court, posted bond and was released. Thereafter, in July 2021, Hale was observed chasing a SUV and shooting at it. At the time of his state arrest on this second incident, a firearm and methamphetamine were recovered from his vehicle. Hale was prohibited from possessing a firearm due to a 2014 felony conviction for Domestic Battery and a 2011 felony Aiding Attempted Burglary conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Fort Wayne Police Department and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case was 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.
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Fort Dodge Man to Federal Prison for Illegal Possession of a Stolen FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced February 25, 2022, to more than 3 years in federal prison.
Stephen Bryant, 52, from Fort Dodge, Iowa, received the prison term after an October 8, 2021, guilty plea to prohibited person in possession of a firearm. Bryant was previously convicted of manufacture of methamphetamine in Marshall County, Mississippi in 2003, and manufacture/delivery of a controlled substance in Sioux County, Iowa, on April 18, 2016.
At the plea hearing, Bryant admitted he was previously convicted of a felony and was a drug user which prohibit him from possessing firearms. Evidence showed that on May 8, 2021, law enforcement conducted a traffic stop on a vehicle Bryant was driving. Due to suspicious behavior, law enforcement deployed a K-9 on the exterior of the vehicle which indicated to the presence of controlled substances. Officers seized a handgun, which was determined to be stolen, and a magazine located underneath the driver seat.
Bryant was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bryant was sentenced to 41 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Bryant is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and investigated by Spencer Police Department, Clay County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4045. Follow us on Twitter @USAO_NDIA.
Former Springfield Resident Pleads Guilty to Use of Interstate Facilities to Attempt to Transmit Information about a MinorRead the Press Release
SPRINGFIELD, Ill. –Chenmin Xie, 25, formerly of the 500 block of West Herndon Street in Springfield, Illinois, pleaded guilty on February 22, 2022 to the charge of knowingly using a facility and means of interstate commerce – the Internet and a cellular telephone – with the intent to transmit the name and address of another individual who had not attained the age of sixteen and doing so with the intent to attempt to entice, encourage, offer, and solicit that person to engage in sexual activity.
At the change-of-plea hearing before U.S. Magistrate Judge Thomas Schanzle-Haskins, Xie admitted that on August 29, 2020, he used a cellular phone to converse with a boy he believed was fifteen years old. During the conversation, they agreed to meet for sexual intercourse at the minor’s residence. Xie then requested and received the child’s address.
Since being arrested on August 29, 2020, Xie has remained in the custody of the United States Marshals. His sentencing hearing is scheduled for June 24, 2022, at the U.S. Courthouse in Springfield.
Xie faces statutory penalties of not more than five years’ imprisonment, not more than a $250,000 fine, not more than three years of supervised release, a $100 mandatory special assessment, and a $5,000 special assessment unless deemed indigent.
The charges were the result of investigation by the Federal Bureau of Investigation with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police. Assistant U.S. Attorney Tanner Jacobs is representing the government in the prosecution.
The case 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.
Former Rogers Company Owner and Former CEO Charged with Workers’ Comp Fraud/Kickback Conspiracy, Other CrimesRead the Press Release
FORT SMITH - Both the former owner of a Rogers-based medical supply and billing company and its former chief executive officer have been indicted by a federal grand jury for their roles in three separate conspiracies to defraud the U.S. government and private workers’ compensation insurers: a billing and kickback fraud scheme with multiple physicians and medical clinics, and separate frauds with two Louisiana physicians to ship medications to them from Arkansas and distribute those medications from their clinics in violation of Louisiana laws. Additionally, the former company owner was charged with wire fraud for falsifying emails he provided in a civil lawsuit involving his sale of the company.
A federal grand jury in Fort Smith returned a 12-count indictment, charging Hunter Matthew Burroughs, 42, and Stephen Keith Andrews, 48, each with one count of conspiracy to commit health care fraud, two counts of conspiracy to commit wire fraud, and eight counts of wire fraud. Additionally, the indictment charges Burroughs in another wire fraud count.
According to the indictment, Burroughs, who in 2011 founded the Rogers company, and Andrews, who served as the company’s chief executive officer, defrauded both federal and private workers’ compensation insurers in schemes that ran until 2017. The basic premise of the health care fraud scheme was that Burroughs, Andrews, and other individuals associated with the Rogers company recruited physicians to dispense pain creams and patches to their workers’ compensation patients by offering them a split of the profits collected from successfully billing insurers, typically 50 percent. One such physician was Robert Dale Bernauer, Sr., who ran a clinic in Lake Charles, La. Bernauer pleaded guilty to his role in the same conspiracy on July 30, 2021.
After signing contracts with physicians, the indictment alleges, Burroughs and Andrews caused the Rogers company to supply them with pain creams and patches, and to act as the billing agent for the physicians, handling all of the paperwork and submitting fraudulent claims to both the U.S. Department of Labor, Office of Workers’ Compensation Programs, which covers all federal employees, and to private insurers as well. The company billed insurers at markups of anywhere from 15 to 20 times what the medications actually cost, and then paid the physicians unlawful kickbacks on amounts collected. The company’s former billing director, Amanda Dawn Rains, pleaded guilty to her role in the same conspiracy on October 6, 2021.
Additionally, the indictment alleges, Burroughs and Andrews conspired separately with Bernauer and with another Louisiana physician to have the Rogers company ship medications to the doctors, and bill insurers for their prescriptions, despite knowing neither physician had the required Louisiana license to dispense medications from his clinic.
Finally, the indictment charges Burroughs in a separate count with attempting to defraud a Florida court and the Florida corporation to which he sold the medical supply and billing company. It alleges Burroughs falsified five emails he provided as discovery in a civil lawsuit he had filed against the Florida company, and then testified falsely about the emails in a sworn deposition.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case is being investigated by the Department of Defense, Defense Criminal Investigative Service, the Department of Labor Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the U.S. Postal Service Office of Inspector General, with the assistance of the Louisiana Department of Justice, the Louisiana State Board of Medical Examiners, and the Louisiana Board of Pharmacy.
Assistant U.S. Attorneys Steven Mohlhenrich and Hunter Bridges are prosecuting the case for the United States.
Former Payroll Manager of Home Healthcare Company Pleads Guilty to Federal Tax OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that INNIS FREDERICK, 61, of Saint Cloud, Florida, pleaded guilty today via videoconference before U.S. District Judge Victor A. Bolden to a tax offense, which stemmed from his employment at a Stratford-based home healthcare company.
According to court documents and statements made in court, Frederick worked as the payroll manager for Equinox Home Care, LLC (“ECH”), a home healthcare company based in Stratford that was originally established as a partnership between Frederick’s sister, Theresa Foreman, and another individual. In September 2012, the partnership ended, and, by court order, Foreman was obligated to make payments to her partner for the purchase of the partner’s interest in EHC. Between approximately 2012 and 2016, Frederick assisted Foreman by processing payroll that caused checks to be issued to “ghost employees,” who did not actually work for ECH. The money paid to the ghost employees was actually paid to Foreman, who did not report the hundreds of thousands of dollars of income on her tax returns. By submitting false payroll data, Frederick also caused false Forms W-2 and W-3 to be submitted to the Internal Revenue Service.
Frederick pleaded guilty to one count of conspiracy to defraud the United States and impede and impair the IRS, an offense that carries a maximum term of imprisonment of five years.
Frederick has agreed that the tax loss attributable to him as a result of his involvement in this scheme is approximately $248,827.
Frederick is released on a $20,000 bond pending sentencing, which is not scheduled.
Foreman was previously charged and convicted in relation to this scheme, and other conduct. She has been ordered to pay more than $600,000 in restitution to the IRS.
Former Chief Financial Officer of the home healthcare company, Pamela Smith, also was charged and convicted in a related case.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Peter S. Jongbloed.