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28 February 2022
Florida Woman Pleads Guilty to Role in Wire Fraud Conspiracy Involving Panamanian Boiler RoomsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Tracy Lee Jedlicki (55, Delray Beach) has pleaded guilty to wire fraud conspiracy for her role in the operation of international boiler rooms which defrauded victims via the sale of worthless investments. Jedlicki faces a maximum penalty of five years in federal prison. A sentencing date has not been set.
According to the plea agreement, Jedlicki and her co-conspirators operated international boiler rooms in Panama and elsewhere which used high-pressure sales techniques to defraud individuals who believed they were investing substantial amounts of money in regulated financial products or markets, such as options in commodities and stocks. The majority of the victims targeted by these boiler rooms were located in Canada, the United Kingdom, Australia, and New Zealand.
Jedlicki and her co-conspirators laundered the fraud proceeds generated by the boiler rooms through several money laundering rings to overseas accounts; the launderers received a percentage of the funds they had moved. Jedlicki's duties included, among other tasks, arranging travel for boiler room workers to the boiler room locations, calling victims while posing as an employee of a fake investment firm to set up loading calls for co-conspirators operating the boiler rooms, serving as a liaison between the boiler rooms and a money laundering organization, and reconciling payments between the boiler rooms and the money laundering organization. Jedlicki received a 2% referral fee for referring victims’ funds to a money laundering ring and used the funds to perpetuate the conspiracy and for her own personal enrichment. Jedlicki and her co-conspirators wired or caused to be wired victims’ funds in the approximate amount of $3,244,500 to money laundering accounts in furtherance of the wire fraud conspiracy.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Craig Gestring.
Federal Court Enters Preliminary Injunction and Shuts Down Brooklyn Tax Preparers Until Further NoticeRead the Press Release
On Feb. 26, a federal court in the Eastern District of New York issued a preliminary injunction against four Brooklyn tax return preparers and their business.
The civil complaint filed in the case seeks to permanently bar Keith Sang, Kashana Sang, Tareek Lewis, Kimberly Brown and their business K&L Accounting Inc. from preparing tax returns. The preliminary injunction bars the defendants from any involvement in the preparation of federal tax returns during the pendency of this case. Keith Sang, Kashana Sang, Lewis and the business made no objection to the injunction. Brown opposed it.
The complaint alleges that the defendants’ tax return preparation schemes include preparation of individual income tax returns that (1) contain false or exaggerated itemized deductions (for example, unreimbursed employee expenses and charitable donations), (2) false filing statuses, such as improper “head of household” elections, (3) fraudulent and/or fictitious business income and/or expenses, (4) returns that falsify customer’s self-employment income to bring the customer into the “sweet spot” for the maximum available earned income tax credit, and (5) false losses on forms that report supplemental income or loss. The complaint alleges that, each year, K&L is responsible for preparing over 2,000 tax returns for customers, and that Keith Sang, whose electronic tax filing privileges were revoked years ago, has taken numerous steps to disguise his involvement with the tax return preparation, while he continues to prepare returns and supervise others working at K&L.
In granting the preliminary injunction, the court found that defendants engaged in concerted and conscious steps to evade IRS enforcement; that they, acting as a unit, repeatedly filed tax returns understating taxpayer liabilities since at least 2016; and that their past efforts demonstrated that they would continue hampering IRS enforcement unless prohibited from acting as federal tax return preparers during the litigation.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County Man Charged with CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged today with carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Andy Cook, 23, of Newark, is charged by complaint with one count of conspiracy to commit carjacking, one count of carjacking, and one count of conspiracy to use a firearm during a crime of violence. He is scheduled to appear by videoconference today before U.S. Magistrate James B. Clark III.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.
The count of conspiracy to commit carjacking carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Eastern Panhandle woman admits to bank fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ana Amesquita, of Kearneysville, West Virginia, has admitted to bank fraud, United States Attorney William Ihlenfeld announced.
Amesquita, 26, pleaded guilty today to one count of “Bank Fraud.” Amesquita was the head teller at the Inwood branch of City National Bank. In June 2019, Amesquita began a scheme to process ATM deposits without the supervision of a second bank employee, violating the bank’s policy. She would then take some of the cash for her own personal use and misrepresent the facts in the general ledger.
As a part of the plea agreement, Amesquita agreed to pay $144,661 in restitution to the bank.
Amesquita faces up to 30 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 Jarod J. Douglas is prosecuting the case on behalf of the government. The U.S. Secret Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
East McKeesport Man Admits Possessing CocaineRead the Press Release
PITTSBURGH - A resident of East McKeesport, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute cocaine, United States Attorney Cindy K. Chung announced today.
Robert Botti, age 41, pleaded guilty to one count before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that on June 15, 2021, Botti possessed cocaine with the intent to distribute it.
Judge Wiegand scheduled sentencing for June 22, 2022, at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, 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.
Pending sentencing, the Court ordered the defendant to be released on a $50,000 unsecured bond.
Assistant United States Attorney Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Perryopolis Police Department conducted the investigation that led to the prosecution of Botti.
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.
Donora Man Sentenced to More than 4 Years for Distributing Crack CocaineRead the Press Release
PITTSBURGH, PA - A resident of Donora, PA, has been sentenced in federal court to 50 months imprisonment followed by five years of supervised release on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on John Duchi, Jr, 33.
According to information presented to the court, Duchi conspired with other members of the Lightfoot Drug Trafficking Organization to distribute cocaine from 2015 to 2017. Duchi admitted to distributing between 400 and 500 grams of powder cocaine during that time frame.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Duchi, Jr.
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.
District Man Pleads Guilty to Charge for July 4, 2020 Slaying of 11-Year-Old BoyRead the Press Release
WASHINGTON – Carlo General 21, of Washington, D.C., pleaded guilty today to a charge of voluntary manslaughter while armed in the fatal shooting of an 11-year-old boy on July 4, 2020, in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
General entered the guilty plea in the Superior Court of the District of Columbia. Consistent with the Court’s voluntary sentencing guidelines, General’s plea calls for an agreed-upon sentence of 13 to 16 years in prison. The plea is contingent upon the Court’s approval. The Honorable Rainey R. Brandt scheduled a sentencing hearing for June 3, 2022.
Three co-defendants -- Daryle Bond, 20, Marcel Gordon, 26, and Christen Wingfield, 24 – pleaded guilty earlier this month to the same charge. They also are scheduled to be sentenced on June 3, 2022. Bond’s plea calls for an agreed-upon sentence of 7 ½-to-9 ½- years in prison, Gordon’s calls for 10 years, and Wingfield’s calls for a 9 ½-year prison term.
According to the government’s evidence, on July 4, 2020, at approximately 9:15 p.m., General, Bond, Gordon, and Wingfield were congregating at a barbeque near the cul-de-sac in front of an apartment building located in the 1400 block of Cedar Street SE. Cedar Street is a long road that ends in a cul-de-sac. The entrance of the 1400 block of Cedar Street intersects diagonally with a street that is known as the “alley.”
Near the entrance of the 1400 block of Cedar Street, Davon McNeal – 11 years old – was exiting a vehicle and walking towards a basement apartment in the Frederick Douglass Garden Apartment Complex. At a certain point, General, armed with a firearm with a laser sight, started running towards the entrance of the 1400 block of Cedar Street and fired his weapon towards the alley. Surveillance footage shows Davon running towards the basement apartment and falling after General fired his weapon.
Approximately six seconds later, Gordon, while running behind General, fired his weapon in the same direction. Bond, also armed with a firearm, ran towards the entrance of the 1400 block on a sidewalk on the side of the apartment building, along with Wingfield, who was armed with a firearm as well and running on the road.
All four defendants gathered in front of the apartment building and looked down the alley. The group subsequently ran in the direction of a playground with guns drawn. Bond, General and Gordon all fired their firearms as they were running away.
An autopsy concluded that Davon’s death was caused by a gunshot wound to the head.
General was arrested on July 30, 2020. Bond was arrested on July 10, 2020. Wingfield was arrested on July 11, 2020. Gordon was arrested on Sept. 1, 2020. All have been in custody since their arrests.
In announcing today’s plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels, former Victim/ Witness Specialist Marcia Rinker, Victim/ Witness Specialist Latrice Washington-Williams, and Investigative Analyst Zachary McMenamin.
Finally, they commended the efforts of Assistant U.S. Attorneys Shehzad Akhtar, Stephen Rickard, and Jack Korba, who investigated and prosecuted the case, and former Assistant U.S. Attorney Maryam Adeyola, who provided valuable assistance.
Devon Archer Sentenced to A Year and A Day in Prison for the Fraudulent Issuance and Sale of More Than $60 Million of Tribal BondsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DEVON ARCHER was sentenced today by the Honorable Ronnie Abrams to a year and a day in prison for defrauding a Native American tribal entity and various investment advisory clients of tens of millions of dollars in connection with the issuance of bonds by the tribal entity and the subsequent sale of those bonds through fraudulent and deceptive means.
As established by the evidence at trial:
From March 2014 through April 2016, ARCHER, Bevan Cooney, John Galanis, Jason Galanis, Gary Hirst, Michelle Morton, Hugh Dunkerley, and others engaged in a fraudulent scheme that involved (a) causing the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity, to issue a series of bonds (the “Tribal Bonds”) through lies and misrepresentations; (b) deceptively causing clients of asset management firms controlled by Hirst, Morton, and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market; and (c) misappropriating the proceeds resulting from those bond sales.
The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by John Galanis. Simultaneously, Jason Galanis, with the backing of ARCHER and others, worked to acquire Hughes Capital Management (“Hughes”), a registered investment adviser. Morton and Hirst were installed as Hughes’ Chief Executive Officer and Chief Investment Officer, respectively. Within weeks of taking control of Hughes, Morton and Hirst placed the entire $28 million first series of Tribal Bonds with Hughes clients but failed to disclose material facts about the Tribal Bonds, including the fact that the Tribal Bonds fell outside of the investment parameters set forth in the investment advisory contracts of certain Hughes clients. In addition, Hughes’ clients were not told about substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
The defendants and their co-conspirators then misappropriated the proceeds of first Tribal Bond issuance. Specifically, although the Tribal Bonds were supposed to be invested in an annuity, Dunkerley, at the direction of Jason Galanis, transferred significant amounts of the bond proceeds to support the defendants’ business and personal interests. John Galanis, for example, secretly received $2.35 million in proceeds of the first bond issuance, which he spent on a variety of personal expenses and luxury items, including cars, jewelry, and hotel expenses. Similarly, Jason Galanis used a portion of the proceeds of the first Tribal Bond issuance to finance the purchase of a $10 million luxury apartment in Tribeca, which, with ARCHER’s consent, he purchased in ARCHER’s name.
In addition, after John Galanis induced the WLCC to issue a second round of Tribal Bonds, ARCHER and others used $20 million of bond proceeds from the first issuance to buy the entirety of the second issuance. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase. In order to deposit the bonds at a bank, ARCHER misrepresented the source of the money used to purchase the bonds, falsely claiming that he had obtained it through real estate sales. The bonds purchased by ARCHER and others were then used to meet net capital requirements at two broker dealers in which ARCHER and others had interests. In addition, millions of dollars in bond proceeds from the first and second issuances were used finance the acquisition of companies which the defendants and their co-conspirators acquired as part of a strategy to build a financial services conglomerate, which ARCHER expected to control.
In the spring of 2015, John Galanis induced the WLCC to issue an additional $16 million worth of Tribal Bonds. Simultaneously, Jason Galanis, and others purchased a second investment adviser, Atlantic Asset Management (“Atlantic”), and installed Morton as the Chief Executive Officer. Within days of obtaining control of Atlantic, Morton placed the entirety of the $16 million Tribal Bond issuance with an Atlantic client, without the client’s consent and without disclosing the fact that the Tribal Bonds were outside the client’s investment parameters and that numerous conflicts of interest existed. The proceeds of the $16 million issuance were again not invested in an annuity as promised, but instead were diverted to, among other things, finance the defendants’ acquisition of another company in furtherance of their plan to build a financial services conglomerate, and make payments to one of the broker dealers in which ARCHER and others had interests.
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In addition to the prison term, ARCHER, 47, was sentenced to a year of supervised release. ARCHER was also ordered to forfeit $15,700,513 and to make restitution in the amount of $43,427,436.
Jason Galanis, who pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud, was sentenced to a term of 173 months in prison on August 11, 2017. Gary Hirst, who pled guilty to securities fraud, conspiracy to commit securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud, was sentenced to 84 months in prison on September 7, 2018. John Galanis, who was convicted after trial of securities fraud and conspiracy to commit securities fraud, was sentenced to 120 months in prison on March 8, 2019. Bevan Cooney, who was convicted after trial of securities fraud and conspiracy to commit securities fraud, was sentenced to 30 months in prison on July 31, 2019. Michelle Morton, who pled guilty to conspiracy to commit securities fraud and investment adviser fraud, was sentenced to 15 months in prison on November 18, 2020. Hugh Dunkerley, who pled guilty to conspiracy to commit securities fraud, two counts of securities fraud, bankruptcy fraud and falsification of records with the intent to obstruct a government investigation, is also awaiting sentencing.
Mr. Williams praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein and Negar Tekeei are in charge of the prosecution.
DS44 Drug Dealer Sentenced to 8 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh, PA, has been sentenced in federal court to eight years of imprisonment on his convictions for violating various federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman imposed the sentence on Devonte Parker, age 26.
According to information presented to the court at the change of plea hearing, law enforcement investigated Parker during a long-term, Title III wiretap investigation targeting the Darccide/Smash 44, or DS44, neighborhood gang and drug-trafficking activity in and around the South Side area of Pittsburgh. During the investigation, the government obtained authorization to intercept communications on numerous phones. Intercepted communications revealed that Parker served as drug dealer.
Additionally, on June 20, 20219, law enforcement executed a federal search warrant upon Parker’s residence. In Parker’s bedroom, law enforcement recovered packages narcotics containing fentanyl, valeryl fentanyl, and heroin. From that same bedroom, law enforcement recovered a loaded .45 caliber handgun between a mattress and a box spring. Parker is prohibited from possessing firearms and ammunition due to prior felony convictions.
Parker’s imprisonment shall be for a total term of imprisonment of 96 months. Following imprisonment, Parker shall serve a 6-year term of supervised release.
Prior to imposing sentence, Judge Stickman stated that “Fentanyl is a scourge on our community . . . Those who distribute fentanyl cause pain and death.”
Assistant United States Attorney Brendan J. McKenna and Carolyn Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
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.
DOJ Adds Employee Defendants in Illegal Opioid Distribution and Health Care Fraud Lawsuit Against Northeast Philadelphia PharmacyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States filed an amended civil complaint against pharmacist Todd Goodman and pharmacy employees Eric Pestrack and Lee Kamp for their alleged involvement in years-long practices of illegally dispensing opioids and other controlled substances, and systematic health care fraud, at Philadelphia-based pharmacy Spivack, Inc., which previously operated under the name Verree Pharmacy. These individuals were added as defendants in the previously filed lawsuit against Verree and its former owner, pharmacist Mitchell Spivack, for the same alleged schemes. The amended complaint continues to seek civil penalties and civil damages, which could total in the millions of dollars, as well as injunctive relief.
The lawsuit, in which Goodman, Pestrack, and Kamp were added, was the culmination of a multi-year federal-state investigation. The amended complaint alleges that Verree Pharmacy, Spivack, Goodman, Pestrack, and Kamp had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleges that Verree and these individuals dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those struggling with addiction, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes.
The amended complaint alleges that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with pills critical to its profits. Behind that façade, the amended complaint alleges that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences, including one patient who overdosed and died next to Verree Pharmacy bottles dispensed by Spivack.
The United States’ amended complaint also alleges that Verree, Spivack, Goodman, Pestrack, and Kamp were engaging in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed. The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or “Bill But Don’t Fill.” Verree, Spivack, Goodman, Pestrack, and Kamp allegedly used BBDF as a means to cover their losses on other drugs and further the pharmacy’s illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the amended complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant losses to Medicare and other federal programs.
The lawsuit seeks to impose civil penalties and damages on Verree, Spivack, Goodman, Pestrack, and Kamp under the Controlled Substances and False Claims Acts. If Verree, Spivack, Goodman, Pestrack, and Kamp are found liable, they could face civil penalties up to $68,426 for each unlawful prescription dispensed, civil penalties up to $23,607 for each false claim they submitted to federal health care programs, and treble damages for the alleged health care fraud against federal programs. The court may also award injunctive relief to prevent the defendants from committing additional controlled substance violations.
If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.
The case is being investigated by the Philadelphia Field Division of the Drug Enforcement Administration, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The civil investigation and litigation are being handled by Assistant United States Attorney Anthony D. Scicchitano and auditors Dawn Wiggins and George Niedzwicki.
The amended complaint contains allegations only that the United States must prove if the case proceeds to trial.
Convicted Felon Sentenced to over 7 Years for Illegal Possession of a FirearmRead the Press Release
Memphis, TN – Jemel Jackson, 41, has been sentenced to 84 months in federal prison for being a convicted felon in possession of a firearm. Joseph C. Murphy, Jr., United States Attorney announced the sentence today.
According to information presented in court, on the evening of May 15, 2020, a Memphis Police Officer, saw Jackson selling marijuana in the parking lot of a gas station on East Crump. As officers approached Jackson, they detected the strong odor of marijuana emanating from his vehicle.
Officers observed in plain view on the floorboard, a Smith & Wesson .40 caliber pistol, a bag of marijuana (60.5 grams) and a digital scale. The gun was loaded with 13 live rounds of ammunition. Jackson was also in possession of 49 ecstasy pills and $834.oo in cash.
While on the scene, officers discovered Jackson had been convicted of aggravated robbery on September 7, 2005. As a result of his prior felony conviction, he is prohibited by federal law from possessing firearms or ammunition.
On February 10, 2022, United States District Judge Mark S. Norris sentenced Jackson to 84 months in federal prison to be followed by 3 years supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods Task Force. The (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the government.
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Convicted Felon Sentenced to Federal Prison for over 8 Years for Possession of a FirearmRead the Press Release
Memphis, TN – Eric Hunt, 23, has been sentenced to 100 months in federal prison for being a convicted felon in possession of a firearm. Joseph C. Murphy, Jr., United States Attorney announced the sentence today.
According to information presented in court, on February 29, 2020, at 12:25pm, officers with the Memphis Police Department initiated blue lights and sirens for a traffic violation to stop Eric Hunt. He refused to stop and continued driving until reaching an apartment complex near Frayser Boulevard where he jumped out of the car, threw a gun, and ran. When apprehended a short time later, Hunt had on his person $773 in cash and a small amount of marijuana. The weapon recovered was a Taurus G2C 9mm handgun, loaded with 12 rounds in the magazine and one in the chamber.
On March 10, 2020, Hunt was arrested at his home for an outstanding warrant. A search of his home revealed six guns, and more than one pound of marijuana found in a safe. Hunt admitted that two of the six guns found in the home belonged to him.
Hunt is a convicted felon having pled guilty to two counts of aggravated assault in 2019, for which he was sentenced to three years’ incarceration. As a result of his prior convictions, he is prohibited by federal law from possessing firearms or ammunition.
On February 15, 2022, United States District Judge Mark S. Norris sentenced Hunt to 100 months in federal prison to be followed by two years’ supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force. The (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all United States Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the government.
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Convicted Felon Indicted on Drug ChargeRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury last week indicted a convicted felon on a drug charge, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
A one-count indictment filed in U.S. District Court charges Terry Roshaun Pruitt, 36, of Birmingham, with possession with the intent to distribute cocaine base.
According to the indictment, in September 2021, Pruitt possessed 280 grams or more of a mixture containing a detectable amount of cocaine base, more commonly referred to as “crack cocaine” in Jefferson County.
Pruitt has one serious drug felony conviction and one serious violent felony conviction, which increases his sentence to 25 years to life in prison. In March 2009, Pruitt was convicted in the U.S. District Court Northern District of Alabama of possession with intent to distribute 50 grams or more of a mixture and substance containing cocaine base and possession of a firearm in the furtherance of a drug trafficking crime.
The DEA investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Arrested on Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – Federal agents on Friday arrested a convicted felon on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
A three-count indictment filed in U.S. District Court charges Antuan Cornell Riggs, 30, of Pleasant Grove, with being a felon in possession of a firearm, possession with the intent to distribute a controlled substance, and possession of a firearm during and in relation to a drug trafficking crime.
According to the indictment, in February 2019, Riggs illegally possessed a Diamondback .380 caliber semi-automatic pistol, a Glock 9-millimeter semi-automatic pistol, marijuana, hydrocodone and methamphetamine.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison.
The maximum penalty for possession with intent to distribute a controlled substance is 20 years in prison.
The minimum penalty for possession of a firearm during a drug trafficking crime is five years in prison, which must run consecutive to any other sentence.
ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
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.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Clay County Man to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced on February 28, 2022, to 15 years in federal prison.
Joshua Currier, 31 from Spencer, Iowa, pled guilty October 5, 2021, to conspiracy to distribute methamphetamine and illegal possession of a firearm. Currier was previously convicted of Forgery, in the Iowa District Court for Dickinson County, on or about June 13, 2011, and Domestic Abuse Assault Impeding Flow of Air/Blood in the Iowa District Court for Clay County, on or about August 9, 2017. Both convictions prohibit Currier from possessing a firearm.
Evidence at the hearings showed that between January 2020 and continuing to on or about February 2021, Currier and others conspired to distribute at least 5 kilograms of methamphetamine. Further evidence showed that in December 2020, Currier traded a Canik 9mm pistol and methamphetamine and then gave to another to settle a drug debt.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Currier was sentenced to 15 years’ imprisonment and must serve a 5-year term of supervised release following imprisonment. There is no parole in the federal system. Currier remains in custody of the United States Marshal 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 was investigated by Clay County Sheriff’s Office, Spencer Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa Great Lakes Drug Task Force, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4037. Follow us on Twitter @USAO_NDIA.
Chicago Woman Who Cashed Her Deceased Grandmother’s Pension Checks Convicted on Federal Fraud and Tax ChargesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.
EUNICE SALLEY, also known as “Eunice Salley Dobyns,” “Oya Awanata-Bey,” and “Oya Awanata,” 37, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud, and tax charges. The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago. U.S. District Judge Robert M. Dow, Jr., set sentencing for July 21, 2022.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Barry Jonas of the Northern District of Illinois, and Assistant Chief Andrew Kameros of the Justice Department’s Tax Division.
According to evidence presented at trial, Salley worked as a paid tax return preparer. In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients. The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable, and employment-related expenses. Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.
Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co. After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside. From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley. On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive. Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.
Chicago Woman Convicted on Federal Fraud and Tax ChargesRead the Press Release
A federal jury convicted an Illinois woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.
According to court documents and evidence presented at trial, Eunice Salley, aka Eunice Sally Dobyns, aka Oya Awanata-Bey, aka Oya Awanata, 37, of Chicago, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud and tax charges. The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago.
According to evidence presented at trial, Salley worked as a paid tax return preparer. In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients. The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable and employment related expenses. Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.
Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co. After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside. From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley. On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive. Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.
Salley is scheduled to be sentenced on July 21 and faces a maximum penalty of 30 years in prison for mail fraud, five years in prison for each count of theft from an employee benefit plan, three years for each count of aiding and assisting the filing of a false tax return, and three years in prison for filing a false tax return. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; Special Agent-in-Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) in Chicago; and Special Agent-in-Charge Emmerson Buie Jr. of the Chicago Field Office of the FBI made the announcement.
The IRS-CI and FBI investigated the case.
Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Barry Jonas for the Northern District of Illinois are prosecuting the case.
Check and Credit Card Scammer Sentenced to Five Years in Federal Prison for Bank and Wire FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Warren Tillery, age 46, of Atlanta, Georgia and previously of Baltimore to five years in federal prison, followed by five years of supervised release, for conspiracy to commit mail and bank fraud. Judge Gallagher also ordered Tillery to pay $166,860 in restitution to victim financial institutions.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from 2015 to February 2018, Tillery led a conspiracy to engage in a mail and bank fraud scheme designed to steal money from federally insured financial institutions in Maryland, Pennsylvania, Virginia, Georgia, and elsewhere.
Tillery led and organized a conspiracy that initially focused on stealing checks written by victim businesses and individuals from United States Postal Service mail receptacles. As part of the scheme to defraud, Tillery obtained a stolen U.S. Postal Service key that opened mail receptacles in the Baltimore area. He then provided this key to co-conspirators who were recruited to steal mail and provide stolen checks to Tillery. Tillery altered the stolen checks or created fraudulent checks that displayed the victim’s account information and instruct co-conspirators to cash the fraudulently obtained checks made out to them in exchange for a portion of the proceeds. In addition to his check theft conspiracy, Tillery made counterfeit money orders and credit cards to use as secondary identification for check cashing and to make purchases.
As stated in his plea agreement, on February 2, 2018, a search warrant was executed at Tillery’s Atlanta-area home. As a result of the executed search warrant, investigators recovered card manufacturing equipment, $4,000 in cash, and hundreds of credit cards in his and others’ names encoded with stolen credit card information. Agents also recovered stolen credit card information, recently stolen U.S. Postal Service mail tubs, social security cards and driver’s licenses that belonged to other people, and hundreds of blank money orders and stolen checks.
Tillery’s fraud conspiracy caused at least $180,269 in losses to more than 30 victim businesses and 15 federally insured financial institutions. In total, Tillery personally obtained at least $30,000 from the conspiracy.
United States Attorney Erek L. Barron praised the USPIS and the Harford County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Jason Hamilton, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud .
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Charlottesville Woman Pleads Guilty to Bank Fraud, Aggravated Identity TheftRead the Press Release
CHARLOTTESVILLE, Va. – A Charlottesville woman pleaded guilty today to altering and forging checks she obtained without the consent of the check owners.
Samantha Leigh Thomas, 38, pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Thomas stole checks that were not made out to her and she either altered the check to change the name of the payee to her own name or forged the signature of the original payee. For example, in one instance, Thomas changed the check’s original amount of $25 into $1,200. Thomas deposited all of her ill-gotten gains into one of five personal checking accounts maintained at five different financial institutions. The eventual loss suffered by all victims exceeded $25,000.
Thomas is scheduled to be sentenced on May 26, 2022, and faces a sentence of up to 32 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The United States Postal Inspection Service and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Ronald M. Huber is prosecuting the case.
Buffalo Man Going to Prison for 10 Years for Selling Fentanyl Linked to the Death of A Hamburg Man, Also Ordered to Pay Restitution for Funeral ExpensesRead 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 Tyrone Green, III, 27, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, cocaine, and 10 grams or more of butyryl fentanyl, was sentenced to serve 120 months in prison by U.S. District Judge John L. Sinatra, Jr. Green was also ordered to pay restitution for the funeral expenses of the overdose victim in this case.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that on March 23, 2018, Green and co-defendant Brennan Bryant sold fentanyl to an individual who was later found deceased in the Town of Hamburg. Through text messages on the decedent’s cellular telephone, detectives with the Hamburg Police Department and Special Agents with the Drug Enforcement Administration identified Bryant and Green as the decedent’s suppliers. Subsequent investigation revealed that between October 2017 and January 2018, the New York State Police made numerous controlled purchases of butyryl fentanyl, fentanyl, cocaine, and heroin from both Bryant and Green.
Brennan Bryant was previously convicted and also sentenced to serve 120 months in prison.
The sentencing is the result of an investigation by the Hamburg Police Department, under the direction of Chief Kevin Trask, the Drug Enforcement Administration, under the direction of Acting Special-Agent-in-Charge Timothy Foley, the New York State Police, under the direction Major James Hall, and the Orchard Park Police Department, under the direction of Chief Joseph Wehrfritz.
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Brooklyn Man and Yonkers Woman Charged with Production, Receipt and Distribution of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Miriam E. Rocah, Westchester County District Attorney, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and John Mueller, the Commissioner of the Yonkers Police Department (“YPD”), announced today that JONATHAN RIVERA and DILICIA AGUIRRE-ORELLANA were charged with production and receipt and distribution of child pornography. AGUIRRE-ORELLANA was also charged with possession of child pornography.
RIVERA was arrested on or about February 26 in Manhattan, and will be presented today in federal court in White Plains. AGUIRRE-ORELLANA was arrested on or about February 22 in Yonkers, presented on local charges on or about February 23, and detained; she will be presented on the federal charges at a later date.
U.S. Attorney Damian Williams said: “Allegedly at the behest of Jonathan Rivera, Dilicia Aguirre-Orellana is accused of one of the most heinous acts imaginable – the sexual assault of prepubescent children – including the sexual abuse and video recording of her four-year-old son. The harm that child sex abuse can inflict on the most innocent of victims is something no child should bear. We believe there may be more victims of these alleged crimes, and implore anyone who may have information helpful to law enforcement to please call 1-800-CALL-FBI.”
FBI Assistant Director Michael J. Driscoll said: “The level of depravity alleged in the charges filed today against Mr. Rivera are nearly unfathomable. The FBI and our partners remain committed to bringing to justice all those who would seek to harm our society’s most vulnerable members. We are asking anyone with information about Mr. Rivera or his alleged activity to contact us at 1-800-CALL-FBI (225-5324) or online at tips.fbi.gov.”
Westchester County District Attorney Miriam E. Rocah said: “Crimes committed against children, especially ones perpetrated by a parent or caretaker, are deeply disturbing and those who prey upon and sexually exploit children will be aggressively prosecuted. As alleged in this case, Dilicia Aguirre-Orellana sexually violated and exploited her own child in unspeakable ways. This case shows how law enforcement at the federal, state and local levels can work together to protect the most vulnerable victims. My office is proud to have partnered with the Yonkers Police Department, Federal Bureau of Investigation and United States Attorney’s Office for the Southern District of New York on this remarkable collaborative effort which put an end to the alleged abuse of a young victim, and will help any other potential victims come forward.”
YPD Commissioner John Mueller said: “It is at the core of every law enforcement officer to protect the vulnerable and innocent, most of all children. We must hold these alleged criminals accountable to the maximum extent of the law for the abuse they inflicted on the smallest members of our society; the Yonkers Police will always continue to put victims first. I am grateful for the sustained multi-agency collaboration on the County, State, and Federal levels that ensures safe communities in Westchester and the City of Yonkers, and applaud the efforts of the investigators and attorneys who worked this case.”
According to the Complaint[1] filed on February 28, 2022, in White Plains federal court:
In or about December 2021, RIVERA communicated online with AGUIRRE-ORELLANA and persuaded AGUIRRE-ORELLANA to make videos of herself performing sex acts on her four-year-old child (“Victim-1”). At RIVERA’s direction, AGUIRRE-ORELLANA made videos of herself touching Victim’s genitals and herself performing oral sex on Victim-1, and sent them to RIVERA over a social media messaging application. In conversations with law enforcement, RIVERA stated that he engaged in similar conversations with other women online. RIVERA may have used various social media platforms to communicate with victims, including WhatsApp, Badoo, Telegram, and Facebook. The usernames of some of RIVERA’s various accounts include:
Jriv3ra718
Jriv3ra11
Jaid3nrivera718
Thebrimbrothers
Jano59fifty
Nathan
On or about February 23, 2022, AGUIRRE-ORELLANA was charged in Westchester County with sexual abuse in the first degree and criminal sexual act in the first degree. The Westchester County District Attorney’s Office will be prosecuting these charges.
Anyone who may have encountered JONATHAN RIVERA (or someone who may have been using the social media usernames identified above), is asked to contact the FBI at 1-800-CALL-FBI (1-800-225-5324).
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RIVERA, 33, of Brooklyn, New York, is charged with one count of production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison, and one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
AGUIRRE-ORELLANA, 22, of Yonkers, New York, is charged with one count of production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison, one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, and one count of possession of child pornography involving images of a minor who had not yet attained the age of 12, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the efforts of the FBI Westchester Safe Streets Task Force which includes Special Agents and Task Force Officers from the FBI, US Probation, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County PD, Westchester County DA's Office, Putnam County Sheriff's Office, Rockland County DA's Office, the NYPD and the Yonkers, Mount Vernon, Peekskill, Greenburgh, New Rochelle, White Plains, Clarkstown and Ramapo Police Departments. This investigation is ongoing.
This case began as an investigation in the YPD Special Victim’s Unit, working jointly with the Special Prosecutions Division Child Abuse Bureau of the Westchester County District Attorney’s Office, including Bureau Chief Christine Hatfield and Acting Deputy Bureau Chief Owein Levin. The federal prosecution is being handled by the White Plains Division of the U.S. Attorney’s Office. Assistant United States Attorney Stephanie Simon is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bristol Woman Arraigned on Federal Fraud, ID Theft, Theft of Federal Funds ChargesRead the Press Release
PROVIDENCE, R.I. – A Bristol woman was arraigned in federal court today, having been charged by indictment with allegedly perpetrating a scheme to fraudulently collected more than $40,000 in Social Security Supplemental Security Income (SSI) benefits for a child who was not in her care or custody, announced United Sates Attorney Zachary A. Cunha.
Sonia Pimentel, 43, was arraigned on a federal indictment charging her with bank fraud, theft of public funds, and aggravated identity theft.
It is alleged in charging documents that Pimentel fraudulently collected SSI monthly payments from December 2011through October 2016 by falsely representing herself as custodial parent for a child that did not live with her, and falsely representing to the Social Security Administration (SSA) that she had spent the SSI payments for that child’s care and support. It is alleged that Pimentel opened a bank account in the child’s name, directed the SSA to deposit the SSI benefits to that bank account, and then withdrew approximately $42,346.73 for her own personal use.
It is further alleged that Pimentel fraudulently used the name, date of birth, Social Security number, and bank account number of the child to file applications for continued SSI benefits for the child and to open the bank account into which the SSI benefits were deposited.
Pimentel pled not guilty before U.S. District Court Magistrate Judge Lincoln D. Almond and was released on $10,000 unsecured bond.
A federal 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 Denise M. Barton.
The matter was investigated by the Social Security Administration Office of Inspector General.
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Boston Man Sentenced for Fraud ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today on fraud conspiracy charges in connection with the processing of fraudulent applications for store credit accounts using stolen identities.
Ricardo Voltaire, 35, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one month in prison and 18 months of supervised release. Voltaire was also ordered to pay restitution in the amount of $81,550 and forfeiture of $8,000. On Oct. 26, 2021, Voltaire pleaded guilty to one count of conspiracy to commit wire fraud.
Voltaire was a sales manager at Staples locations in Dedham and Braintree. In this role, Voltaire was responsible for processing store credit card applications, among other things. On at least 60 occasions, Voltaire processed fraudulent Staples’ store credit account applications that were submitted by co-conspirator Wagner Sozi and his accomplice – each of which contained stolen personal identifying information of another individual. Voltaire knew that his co-conspirators were not in fact the individuals named on the applications and opened store credit accounts under the stolen identities, which were then used to purchase more than $81,000 in Visa gift cards. Voltaire accepted approximately $8,000 in kickbacks from Sozi and his co-conspirator.
In May 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. On Dec. 8, 2021, Sozi was sentenced to 39 months in prison and two years of supervised release. Sozi was also ordered to pay forfeiture and restitution in the approximate amount of $110,000.
United States Attorney Rachael S. Rollins and Mark Comorosky, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. The Braintree Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William F. Abely II, Chief of Rollins’ Criminal Division prosecuted the case.
Aroostook County Man Sentenced for Methamphetamine TraffickingRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced in federal court today for conspiring to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Jeff Curtis, 40, to five years in prison and three years of supervised release.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Curtis and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations, and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
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.
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25 February 2022
Winchester Man Convicted of COVID-Relief FraudRead the Press Release
BOSTON – A Winchester man was convicted by a federal jury yesterday in connection with filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Elijah Majak Buoi, 40, was convicted following a three-day trial of four counts of wire fraud and one count of making a false statement to a financial institution. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 16, 2022. Buoi was arrested and charged by criminal complaint in June 2020 and subsequently indicted by a federal grand jury in July 2020.
Buoi submitted six fraudulent PPP loan applications on behalf of his company Sosuda Tech, LLC (Sosuda) to four different SBA-approved lenders. In each loan application, Buoi misrepresented the number of employees and payroll expenses. Buoi also submitted fraudulent IRS tax forms in support of his applications. The evidence at trial showed that Sosuda was a startup company with no U.S.-based payroll and no U.S.-based employees. As a result of his scheme, Buoi obtained a $2 million PPP loan. The government recovered approximately $1.97 million of the loan funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making a false statement to a financial institution provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Stephen Donnelly, Acting Special Agent-in-Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Association, Office of Inspector General, Eastern Regional Office; and Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Region, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial, and Cyber Fraud Unit, and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Announces a Turtle Mountain, ND, Man Sentenced to Federal Prison for Sexual Abuse of a ChildRead the Press Release
FARGO – Interim United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Jimmie Dean Moore, age 58, Turtle Mountain Indian Reservation, ND, to 293 months in federal prison after he pleaded guilty to the offense of Abusive Sexual Contact of a Minor. Chief Judge Welte also sentenced Moore to lifetime supervised release.
Investigation by the Federal Bureau of Investigation revealed that in September 2020, Moore inappropriately touched a 10-year-old female while she was sleeping on a couch at a family member’s residence. The minor female reported that she woke up when she felt Moore touch her legs and inner thighs, and felt her pants and underwear being pulled down exposing her genitalia. The minor female reported her legs had been propped up and she believed Moore was taking photos of her genital region. Moore was interviewed and admitted to attempting to photograph the minor female’s vagina with the intent to masturbate to the photographs.
Moore began residing on the Turtle Mountain Indian Reservation shortly after being released from prison in 2005. Moore had previously been convicted of Sexual Abuse in the 19th Judicial Circuit Court, Wetumpka, AL, where he was sentenced to 10 years’ incarceration for conduct including the sexual abuse of minor children. At the time in which Moore committed the 2020 offense, he was a convicted sexual offender.
"The bravery and resiliency of this minor victim is remarkable and should serve as empowerment to other victims and because of the courageous decision by this child to come forward and share her story, the defendant will no longer be able to sexually molest and exploit another child," said Interim U.S. Attorney Nick Chase.
"One of the FBI's highest priorities is the protection of our children, today's sentence ensured that a repeat sexual offender will not be in any position to harm any child again," said FBI Special Agent in Charge Michael Paul. "I want to thank the agents, analysts, victims specialists and members of the prosecution team who worked collaboratively with our partners in Indian Country to help build this case to help bring the victim the justice she so richly deserves."
This case was investigated by the Federal Bureau of Investigations, and was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Dawn M. Deitz assigned to the case.
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Union Springs Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On February 23, 2022, Christopher Lee Smith, a 24-year-old man from Union Springs, Alabama, was sentenced to 21 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Sandra J. Stewart. In addition to his prison sentence, Smith was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on February 3, 2020, a Union Springs Police Officer initiated a traffic stop on a vehicle being driven by Smith. During the stop, the officer discovered that Smith had two loaded handguns in a bag belonging to him despite being prohibited from possessing firearms due to a 2018 state felony conviction for shooting into a vehicle. During the hearing, the court learned that it had been a mere four months after Smith’s state probation period was complete that he was found with the two guns in this case.
Smith was indicted by a federal grand jury for being a felon in possession of a firearm on April 7, 2021. He pleaded guilty to that charge on October 8, 2021.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce violent crime.
The Union Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Russell Duraski prosecuted the case.
Two Men Sentenced for Conspiring to Distribute Fentanyl in Lycoming CountyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Braheem Lewis, 24, of Philadelphia and Ethan Bailey, 23, of Williamsport were sentenced on February 23, 2022, by Chief Judge Matthew W. Brann for their roles in a drug trafficking conspiracy.
Lewis was sentenced to 48 months’ imprisonment and Bailey was sentenced to 24 months’ imprisonment. Both will be required to serve a three-year term of supervised release after serving their imprisonment sentences.
According to U.S. Attorney John C. Gurganus, Lewis and Bailey conspired to distribute fentanyl in Lycoming County from August 2019 to August 2020. At the hearing, Chief Judge Brann highlighted the way that the distribution of fentanyl has ravaged this community and the country.
Three other co-defendants were previously sentenced and received the following:
- Basil Arties, 27, was sentenced to 18 months’ imprisonment;
- Damion Bethea, 26, was sentenced to 15 months’ imprisonment; and
- Kenyon Bonaparte, 21, was sentenced to 24 months’ imprisonment.
Co-defendants Kevin Bryant and Ira Sims have pleaded guilty and are awaiting sentencing. Co-defendants Angellitto Lawton and Jordan Watkins are awaiting trial.
The charges stem from an investigation by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County Narcotics Enforcement Unit, the Federal Bureau of Investigation, and the Drug Enforcement Administration. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Turner Falls Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Turners Falls man pleaded guilty yesterday in federal court in Springfield to child pornography charges.
Brian Cooper, 64, pleaded guilty to four counts of distribution of child pornography, six counts of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 22, 2022. Cooper was indicted by a federal grand jury in April 2021.
Between April 2018 and October 2019, Cooper distributed, received and possessed child pornography files depicting children engaged in sexually explicit conduct. He distributed and received the child pornography files from online associates via Instagram. A search of Cooper’s residence in October 2019 revealed thousands of child pornography files stored on a tablet and multiple thumb drives. At the time of the search, Cooper was arrested on state court charges and has been detained since.
The charges of distribution and receipt of child pornography provide for a mandatory minimum sentence of 15 years and up to 40 years in prison. The charge of possession of child pornography provides for a mandatory minimum sentence of 10 years and up to 20 years in prison. Each charge also provides for a mandatory minimum of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; David E. Sullivan, Northwestern District Attorney; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Rollins’ Springfield Branch Office is prosecuting the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Trinidad and Tobago National Apprehended at the Cyril E. King Airport Sentenced to 17 Months in Prison After Illegally Re-Entering the United StatesRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a Trinidad and Tobago national was sentenced today to 17 months in prison for illegally reentering the United States after he was removed.
According to court documents, Allan Browne, 49, presented himself for inspection in April 2021 at the Cyril E. King Airport in St. Thomas, USVI, as a ticketed passenger on a flight to Miami, Florida. Customs and Border Protection officers determined that he was not a citizen of the United States and had not been granted any documentation to enter or remain in the United States. The officers also determined that he had been previously removed from the United States on or about October 2020 and September 2014.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Juan Albino prosecuted the case.
Ten Florida Residents Indicted for $67 Million Health Care Fraud, Wire Fraud, Kickback, and Money Laundering SchemeRead the Press Release
WASHINGTON – Ten Florida residents were charged in an indictment unsealed today in the Southern District of Florida for their alleged roles in a $67 million health care fraud, wire fraud, kickback, and money laundering scheme involving the submission of false and fraudulent claims to Medicare for medically unnecessary genetic tests and durable medical equipment.
Daniel M. Carver, 35, of Coral Springs; Thomas Dougherty, 39, of Royal Palm Beach; and John Paul Gosney Jr., 39, of Parkland, the owners and managers of independent clinical laboratories and marketing companies, were each charged with conspiracy to commit health care fraud, health care fraud, conspiracy to pay and receive health care kickbacks and bribes, paying and receiving kickbacks and bribes, conspiracy to commit money laundering, and money laundering offenses.
Galina Rozenberg, 39, and Michael Rozenberg, 58, both of Hollywood, were arrested on Feb. 6, attempting to board a flight to Moscow. Each were charged with one count of conspiracy to commit health care fraud, health care fraud, and conspiracy to commit money laundering. Galina Rozenberg was also charged with additional money laundering offenses.
Louis Carver, 30, of Delray Beach; Timothy Richardson, 29, of Lantana; Ethan Macier, 22, of Coral Springs; and Jose Goyos, 35, of West Palm Beach were each charged with conspiracy to commit health care fraud, health care fraud, conspiracy to commit money laundering, and money laundering offenses. Ashley Cigarroa, 29, of North Lauderdale was charged with one count of conspiracy to commit health care fraud and committing health care fraud.
The indictment alleges that, between January 2020 and July 2021, the defendants referred Medicare beneficiaries for medically unnecessary genetic tests and durable medical equipment. In exchange for doctors’ orders for such tests and equipment, the defendants allegedly paid kickbacks and bribes to telemedicine companies. The indictment further alleges that the defendants falsified Medicare enrollment forms to conceal the true owners and managers of certain laboratories, and submitted false and fraudulent claims to Medicare.
The defendants are anticipated to make their initial appearances in federal court beginning the week of Feb. 28. Federal charges for conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, and money laundering are each punishable by a maximum penalty of 20 years in prison. Health care fraud and anti-kickback violations are each punishable by a maximum penalty of 10 years in prison. Conspiracy to pay and receive kickbacks is punishable by a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The HHS-OIG Miami Region and FBI’s Miami Field Office investigated the case.
Trial Attorneys Patrick J. Queenan and Reginal Cuyler Jr. of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Sara Michele Klco of the Southern District of Florida is handling asset forfeiture matters.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine or genetic testing marketing schemes should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
An indictment and an information are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tekamah Woman Sentenced to 100 Months for Kidnapping GrandchildrenRead the Press Release
United States Attorney Jan Sharp announced that Nora Gilda Guevara-Tirana, age 43, of Tekamah, Nebraska, was sentenced in federal court on February 23, 2022, in Omaha for kidnapping. United States District Judge Brian C. Buescher sentenced Guevara-Tirana to 100 months of imprisonment. There is no parole in the federal system. After completing her term of imprisonment, Guevara-Tirana will begin a 3-year term of supervised release. Guevara-Tirana, originally from Mexico, faces deportation proceedings after her release from prison.
Guevara-Tirana was convicted on August 31, 2021, of kidnapping after a five-day jury trial.
On April 20, 2020, Guevara-Tirana requested her co-defendant, Tanner Leichleiter, take her two grandchildren, ages 4 and 7, without car seats or shoes to Kansas to teach their mother a lesson. Witnesses testified that Leichleiter took the children to a drug house in Harvard, Nebraska, and received a phone call while there that Guevara-Tirana had been arrested for kidnapping. Leichleiter immediately took the children to Kansas. An Amber Alert was issued and Leichleiter was located with the children after a report from a farmer in the area. When law enforcement located Leichleiter and the children, they found 10 guns, multiple ammunition and drugs within reach of the children in the vehicle.
This case was investigated by the Federal Bureau of Investigation, and the Tekamah Police Department, Sedgwick County Sheriff, and Wichita Police Department.
Tampa Man Who Tried to Move Overdose Victim’s Body from Garage at Hard Rock Casino Pleads Guilty to Distributing Fentanyl and HeroinRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Nicholas Primo (35, Tampa) has pleaded guilty to distributing a substance that contained a mixture of heroin and fentanyl. Primo faces a maximum sentence of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, on November 13, 2019, Primo distributed narcotics to two individuals in the parking lot of the Seminole Hard Rock Hotel and Casino. One of the individuals injected himself with the substance and died. Primo was later captured on video surveillance returning to the vehicle, and after realizing the victim had died, fleeing the garage. Primo was later interviewed and admitted to purchasing $1,600 worth of heroin prior to distributing it. Primo later contacted a friend and attempted to move the victim’s car out of the Hard Rock Casino.
This case was investigated by the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes. This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse.
Syracuse Entrepreneur Pleads Guilty to Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Dean Whittles, 61, formerly of Syracuse, New York, waived indictment and pled guilty yesterday in federal court in Utica to one felony count of willful failure to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.
From 2016 through 2019, Whittles was the sole owner of multiple businesses in and around Syracuse, New York: DJ’s on the Hill and DJ’s on the Boulevard; the 317 Corporation (restaurant); and Dejon’s Hair Design, with salons in Cicero, Westvale and Skaneateles. Whittles no longer owns or operates any of the businesses at issue and recently moved to Tucson, Arizona.
In pleading guilty yesterday, Whittles admitted that he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes, even though he withheld such taxes from his employees’ paychecks. Instead, he used the money withheld from employees to pay for business and personal expenses. In total, Whittles failed to pay approximately $617,843 in payroll taxes to the Internal Revenue Service between 2016 and 2019. As part of his plea agreement, Whittles agreed to repay $617,843 to the IRS.
The charge to which Whittles pled guilty yesterday carries a maximum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. 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. Whittles will be sentenced on June 22, 2022 by United States District Judge David N. Hurd.
This case is being investigated by Internal Revenue Service-Criminal Investigation Division (IRS-CI), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Supplier of Drug Ring Operating in Asheville Is Sentenced to 25+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Rodney Dejuan Allison, 46, of Asheville, was sentenced in federal court late yesterday to 310 months in prison and eight years of supervised release on drug conspiracy charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
On April 2, 2019, a federal grand jury indicted Allison and seven other defendants on drug conspiracy charges following a two-year joint federal, state and local investigation into drug distribution and drug related criminal activity in Buncombe County. Court records show that Allison supplied the drug ring, which was operating in the Asheville area, with multiple controlled substances, including cocaine, crack cocaine, methamphetamine, heroin and other narcotics. Over the course of the investigation, law enforcement seized drugs, 12 firearms and ammunition, and $153,674 in cash.
In addition to Allison, seven other defendants have been sentenced after pleading guilty to drug conspiracy charges. They are:
- Prophet Karim Hadialim Allah – sentenced to 108 months in prison and five years of supervised release.
- William Luther Downs, Jr. – sentenced to 108 months in prison and five years of supervised release.
- Jeffrey Allen Wright – sentenced to 100 months in prison and five years of supervised release.
- Harry James Odum – sentenced to 72 months in prison and three years of supervised release.
- Elliot Norris Smith – sentenced to 60 months in prison and three years of supervised release.
- Derrick Maurice Perry – sentenced to 60 months in prison and four years of supervised release.
- Teresa Day Shuping – sentenced to 37 months in prison and three years of supervised release.
In making today’s announcement, U.S. Attorney King thanked the Drug Enforcement Administration, Homeland Security Investigations, the Asheville Police Department, the Buncombe County Anti-Crime Task Force, the Buncombe County Sheriff’s Office, the Black Mountain Police Department, and the Wilkes County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Carolina State Bureau of Investigation for their assistance in this case.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
St. Louis man sentenced to more than 14 years in prison for carjacking pizza driverRead the Press Release
ST. LOUIS – Ryan McDaniel, 25, of St. Louis, Missouri appeared before United States District Court Judge Stephen R. Clark late yesterday afternoon and was sentenced to 179 months in prison for carjacking a Domino’s Pizza driver in February 2021. McDaniel previously pleaded guilty in November.
According to the plea agreement, on or about February 5, 2021, McDaniel approached the victim who was making a Domino's pizza delivery at The Residences at Forest Park, a location within the Eastern District of Missouri. Brandishing a handgun, McDaniel demanded the keys to the victim's motor vehicle, a 2020 Mazda CX-30. McDaniel reached in the victim's pocket and grabbed the keys before fleeing the scene in the carjacked vehicle.
Minutes after the robbery, officers located the stolen Mazda CX-30 and a lengthy pursuit ensued. McDaniel was eventually taken into custody after the vehicle was disabled. Officers searched the vehicle and found two Springfield XD semiautomatic firearms. One of the firearms, which was located on the driver's seat, was stolen; the other firearm, located in the glovebox, belonged to the victim. McDaniel was also searched, resulting in the recovery of a Smith & Wesson .32 caliber revolver.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation.
Spokane Mental Health Counselor Agrees to Pay More Than $135,000 for Fraudulent Medicaid BillingRead the Press Release
Spokane, Washington – Dr. Ray Smith, a mental health counselor practicing in Spokane, and his company, “A Brief Counseling Center,” also known as “Healthy Counseling Center” (“ABCC”) have agreed to pay $138,984 to resolve allegations that he and his company fraudulently billed Washington State Medicaid. Dr. Smith is a licensed mental health counselor in the State of Washington and is the sole owner of ABCC. During the relevant time period, ABCC employed a number of mental health treatment providers, and billed Washington State Medicaid for their services. Washington State Medicaid – also known as Apple Health – is funded by federal and state taxpayers and provides health insurance for needy and low-income residents of Washington. Medicaid provides reimbursement for mental health treatment services provided by qualified and licensed providers who are enrolled and contracted with the state Health Care Authority, which administers the Medicaid program in Washington.
According to court documents, this settlement resolves allegations under the False Claims Act that Dr. Smith and ABCC improperly billed Medicaid for unlicensed and unqualified therapists who did not meet qualification requirements, were not contracted with the state, and were not eligible for reimbursement through Medicaid. The settlement also resolves allegations that Dr. Smith and ABCC fraudulently billed Medicaid for the services by falsely misrepresenting that the services had been provided by licensed and qualified therapists.
“Mental health services are a vital component of a safe and strong community, and our public funding for those services is a precious and limited resource,” said United States Attorney Vanessa R. Waldref. “Fraudulently billing the public for unqualified and unlicensed therapy services provided to some of the most vulnerable members of our community is simply unconscionable, and will not be tolerated.”
The case began in November 2019 when two whistleblowers who had previously provided billing services for ABCC filed a qui tam complaint under seal. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, the United States intervened in February 2022 and obtained the settlement. Pursuant to the settlement agreement, the relator will receive $25,712 of the settlement amount, which includes both state and federal components.
Washington Attorney General Bob Ferguson said “the COVID-19 pandemic has underscored the need for high-quality mental health services. To pose as qualified mental health professionals in order to claim Medicaid dollars is unethical, dangerous, and unlawful. I am proud of our collaboration with our federal partners, and the hard work it took to bring this company to justice. I look forward to continuing our work together to protect Medicaid dollars for those who need them.”
“Beneficiaries of federal health care programs deserve legitimate services furnished by certified practitioners,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Medicaid patients should receive nothing but quality care at all times. HHS-OIG and partnering agencies resolutely pursue providers who deviate from this commitment.”
United States Attorney Waldref commended the whistleblowers for exposing this fraud: “It takes real courage to come forward, and I thank the whistleblowers for performing their civic duties. I am extremely proud of the top-notch investigative work performed by HHS-OIG, and of our close partnership with Washington’s Office of the Attorney General, Medicaid Fraud Control Division. Today’s result demonstrates that we will work hand-in-glove with our law enforcement partners to protect precious public funds from greed, and that we will continue to aggressively investigate and prosecute health care fraud in Eastern Washington.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HHS-OIG’s Seattle Field Office, and the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division. The Executive Office for U.S. Attorney’s Forensic Investigations Group provided invaluable financial analytic support. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.
ABCC Final Settlement AgreementSouth Florida Man Sentenced to 25 Years in Federal Prison for Exploiting Poor Children in the PhilippinesRead the Press Release
Miami, Florida – A 67-year-old Pahokee, Florida man was sentenced yesterday in West Palm Beach federal court to 25 years in prison for enticing poor children in the Philippines to send him pornographic images of themselves in exchange for money and other child exploitation crimes, some of which involved toddlers.
Dennis Pollard used a social media messenger application in 2020 to find young girls in the Philippines whom he could groom for the purpose of producing child sexual abuse material (CSAM). Pollard offered, and sometimes provided, money through wire services in exchange for pornographic images of the girls. Over nearly six-weeks, Pollard convinced a 13-year-old girl, living in poverty, to record herself performing sexual acts in exchange for money. Pollard also directed a woman in the Philippines to record herself sexually abusing her two toddler-aged children. Pollard distributed CSAM of his victims to groom others and obtain more CSAM. In 2015, Pollard attempted to produce CSAM through a different account on the same social media messenger application. The Palm Beach County Sheriff’s (PBSO) Internet Crimes Against Children Task Force executed a search warrant at Pollard’s Pahokee residence. Pollard was found to have dozens of child sexual abuse images and videos on his phone, as well as on CDs that he had possessed for nearly a decade.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigation (HSI), Miami Field Office, announced the sentence imposed by U.S. District Judge Robin L. Rosenberg.
HSI Miami’s West Palm Beach Office investigated the case, with assistance from the PBSO and the Palm Beach County State Attorney’s Office.
Assistant U.S. Attorney Gregory Schiller prosecuted the case.
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 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80107.
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Rochester Man Pleads Guilty to Arson of Multiple Buildings in St. Paul, Including Goodwill store and Gordon Parks High SchoolRead the Press Release
MINNEAPOLIS – A Rochester man who fled to Mexico to evade apprehension, and was later located and returned by Mexican authorities, has pleaded guilty to arson of two retail stores and a school during the summer of 2020, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on May 28, 2020, Jose Angel Felan, Jr., 35, set fire to the Goodwill retail store, the Gordon Parks High School, and the 7 Mile Sportswear store, all of which were located on University Avenue in St. Paul. Following the arsons, Felan and his wife and co-defendant Mena Dhaya Yousif, 23, fled the state. Felan and Yousif traveled by car from Rochester, Minnesota, to Texas, where Felan had family. Ultimately, Felan and Yousif fled the United States and escaped to Mexico. On February 15, 2021, following an anonymous tip, Felan and Yousif were located and detained by Mexican immigration authorities and returned to the United States.
Felan pleaded guilty yesterday before Senior Judge David S. Doty to one count of arson. A sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division. The fugitive apprehension efforts were led by the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys Melinda A. Williams and Emily A. Polachek.
Raleigh Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
NEW BERN, N.C. – A Raleigh man was sentenced today to 48 months in prison followed by 10 years of supervised release for possessing a large amount of child pornography. On December 14, 2020, Joshua Dominique Grisson pled guilty to the charges.
According to court documents and other information presented in court, Grisson, 24, possessed 3,804 images and 432 videos of child pornography. The Federal Bureau of Investigation first discovered Grisson’s crime in North Carolina while investigating another person linked to distribution of child pornography in Wisconsin in 2018. Through that investigation, FBI agents were able to monitor the online activities of several people engaged in the sharing of images and videos of child pornography. The evidence collected by the agents led them to Grisson’s home in North Carolina.
On June 18, 2019, FBI agents executed a search warrant at Grisson’s home in Raleigh. The agents found child pornography on several computer devices owned by Grisson. A forensic analysis of those devices uncovered 3,804 images and 432 videos of child pornography.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation and the Raleigh Police Department investigated the case, with assistance from the National Center for Missing and Exploited Children (NCMEC), and Assistant U.S. Attorney John Parris prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
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. 5:20-cr-00051-FL.
Raleigh County Woman Pleads Guilty to Federal Fraud ChargeRead the Press Release
CHARLESTON, W.Va. – A Raleigh County woman pleaded guilty today to a federal fraud charge.
According to court documents and statements made during the plea hearing, Wanda Jane Goode, 42, of Shady Spring, was a cashier at a supermarket located in Beaver that sold Visa prepaid debit cards. As a cashier, part of Goode’s job was to activate these prepaid cards. From April 2019 to September 2019, Goode fraudulently activated numerous prepaid cards for her own personal use. During the scheme, Goode made more than $87,000 in fraudulent purchases or payments with the prepaid cards. Pursuant to her plea agreement, Goode will pay $87,265.50 in restitution.
Goode pleaded guilty to wire fraud and faces up to 20 years in prison when she is sentenced on June 16, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Secret Service.
United States District Judge Frank W. Volk presided over the hearing. Assistant U.S. Attorney Negar Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-00008.
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Previously convicted felon sentenced to 14 years in prison for gun, drug crimesRead the Press Release
CINCINNATI – Da’Quan Payne, 30, of Cincinnati, was sentenced in U.S. District Court to 170 months in prison for committing five federal crimes related to firearms and narcotics.
According to court documents, Payne possessed nine firearms, approximately $194,000 in cash, and distributable amounts of fentanyl, heroin, methamphetamine, cocaine and marijuana. He had nearly $158,000 in cash in his home.
In June 2019, agents from the Norwood Drug Task Force, Ohio Bureau of Criminal Investigation (BCI) and Cincinnati Police Department launched an investigation into Payne’s suspected drug-trafficking activity.
They conducted five law-enforcement controlled purchases of fentanyl from Payne. During those purchases, law enforcement observed Payne carrying a firearm. As a previously convicted felon, Payne is prohibited from possessing a firearm or ammunition.
Investigators learned that Payne kept some of his supplies in storage lockers. During a search of Payne’s storage units, law enforcement discovered eight of Payne’s nine firearms, along with fentanyl, methamphetamine and cocaine. Payne was also storing more than $24,000 in cash in the lockers.
A search of Payne’s vehicle revealed the ninth firearm, more than $12,000 in cash and various narcotics.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce 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.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kent Kleinschmidt, Acting Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio Attorney General Dave Yost; Norwood Police Chief William Kramer and Interim Cincinnati Police Chief Teresa Theetge announced the sentence imposed by Senior U.S. District Court Judge Michael R. Barrett. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
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Portage Man Pleads Guilty to Mail Fraud and Aggravated Identity Theft Related to Amazon’s Textbook Rental ProgramRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Geoffrey Mark Hays Talsma, 36, of Portage, Michigan, pled guilty in the United States District Court in Lansing, Michigan, to charges of mail fraud and aggravated identity theft. Talsma is the fourth and last individual to plead guilty to charges of defrauding Amazon’s Textbook Rental Program.
According to the plea agreement, from January 2016 to March 2021, Talsma defrauded Amazon by using the internet to create numerous Amazon accounts and email accounts to rent textbooks and sell the textbooks for a profit when he should have returned the textbooks or paid the agreed upon buy-out price. Talsma caused Amazon to ship the textbooks through the United States Postal Service or across state lines using private commercial carriers. He concealed his fraudulent activities in part by recruiting and paying unwitting individuals to accept shipments of stolen textbooks at their homes so that Amazon would not detect a pattern of large volumes of books going to locations associated with him. Over time, Talsma taught some of these same individuals his scheme to defraud and actively supervised their participation in the fraud. Defendant shared the profits of the fraud scheme with these individuals after he sold the textbooks over the internet and at various bookstores, including a bookstore in Kalamazoo, Michigan. Additionally, according to the plea agreement, Talsma also ordered rental textbooks in the names of unwitting individuals and then pretended to be those individuals when calling Amazon and falsely claiming that he did not receive the textbooks. Talsma then received a credit from Amazon that he used to order further textbooks.
Talsma’s sentencing is scheduled for June 28, 2022, in the United States District Court in Lansing, Michigan. Talsma faces a maximum term of imprisonment of 20 years for the mail fraud conviction and a maximum term of imprisonment of two years for the aggravated identity theft conviction, to be served consecutively to any sentence imposed for the mail fraud. The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Restitution and forfeiture of certain assets obtained with the proceeds of the scheme may also be ordered as a result of his convictions.
The offices of the Federal Bureau of Investigation, Kalamazoo, and the United States Postal Inspection Service, Grand Rapids, are handling the investigation. Amazon referred the matter to law enforcement and has supported the investigation.
Assistant U.S. Attorney Ronald M. Stella is prosecuting the case.
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Ohio-Based Stock Trader Pleads Guilty to Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that STEVEN GALLAGHER pled guilty to one count of securities fraud. GALLAGHER, using the alias “Alex DeLarge,” created a stock promotion account on Twitter that gained over 70,000 followers, and used that account to tout certain over-the-counter penny stocks. GALLAGHER disseminated false and misleading information about at least one of those stocks in order to induce his followers to purchase that stock and drive up its price, while he secretly sold his holdings. GALLAGHER pled guilty in front of United States District Judge Valerie E. Caproni.
According to the Information, the Complaint, and other statements made in court:
STEVEN GALLAGHER is an active day trader in over-the-counter securities, or “OTC securities.” Those securities typically do not trade on centralized exchanges such as the New York Stock Exchange or the NASDAQ Stock Exchange. OTC securities often trade for less than one dollar per share, and thus are often referred to as “penny stocks.” Many OTC securities are thinly traded, and therefore are particularly susceptible to stock manipulation schemes.
In September 2019, GALLAGHER created a Twitter account using the alias “Alex DeLarge,” a character from the Anthony Burgess novel A Clockwork Orange and the Stanley Kubrick film of the same name (the “DeLarge Twitter Account”). As of October 19, 2021, the DeLarge Twitter Account had over 70,000 followers. GALLAGHER regularly used the DeLarge Twitter Account to tout various penny stocks in which he personally held substantial positions. GALLAGHER also regularly posted images of his brokerage account balances and trading gains on the DeLarge Twitter Account in order to bolster his reputation and induce his followers to trade in accordance with his suggestions.
From approximately December 2020 through February 2021, GALLAGHER used the DeLarge Twitter Account to operate a fraudulent pump-and-dump scheme with respect to penny stock issued by a public company known as SpectraScience, Inc. (“SCIE”). As part of his fraudulent scheme, GALLAGHER began acquiring a substantial volume of SCIE shares in December 2020. As he acquired shares, GALLAGHER and a few close associates discussed their plans to push the stock price up after they obtained substantial holdings at relatively cheap prices. GALLAGHER then used the DeLarge Twitter Account to artificially “pump” SCIE stock. This included both re-tweeting posts that purported to announce potentially positive news for SCIE, such as FDA approvals for their products, and making materially false and misleading statements about GALLAGHER’s own position in SCIE stock. For example, in or about January 2021, GALLAGHER repeatedly tweeted that he planned on holding and had not sold any of his shares of SCIE. These statements, however, were false and GALLAGHER had in fact sold millions of shares of SCIE at heightened prices.
While GALLAGHER was engaged in this scheme, he knew or purposely avoided learning that SCIE was a shell company with no actual operations or prospects for success. For example, in direct messages with some of his followers, GALLAGHER received information suggesting that SCIE was really just a “shell with not guts.” Nevertheless, GALLAGHER engaged in his Twitter-based pump and dump scheme, thereby earning tens of thousands of dollars in illicit profit.
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GALLAGHER, 51, of Maumee, Ohio, plead guilty to one count of securities fraud, which carries a maximum sentence of twenty years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GALLAGHER is scheduled be sentenced on June 27, 2022, by Judge Caproni.
U.S. Attorney Williams praised the work of the HSI. Mr. Williams further thanked the Securities and Exchange Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper, Daniel Tracer, and Allison Nichols are in charge of the prosecution.
Northumberland County Man Indicted for Production of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 24, 2022, Scott Eric Snyder, age 50, of Northumberland County, Pennsylvania, was indicted on charges of production of child pornography.
According to United States Attorney John C. Gurganus, the indictment alleges that on July 7, 2012 and July 13, 2013, in Northumberland County, Snyder produced child pornography.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 maximum penalty under federal law for these offenses is 30 years’ imprisonment, with a mandatory minimum sentence of 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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New York Man Pleads Guilty to Smuggling 10 Kilos of Meth Aboard BusRead the Press Release
KANSAS CITY, Mo. – A New York, N.Y., man pleaded guilty in federal court today to smuggling more than 10 kilograms of methamphetamine aboard a bus traveling through Kansas City, Missouri, from Los Angeles, California, to New York.
Douglas D. McDowell, 63, pleaded guilty before U.S. District Judge Greg Kays to one count of possessing methamphetamine with intent to distribute.
Officers with the Missouri Western Interdiction and Narcotics Task Force (MoWIN) were conducting interdiction activities at a local bus terminal on May 10, 2021, when a drug detecting police dog indicated the presence of drugs in the checked luggage of the bus undercarriage.
Officers searched two suitcases that belonged to McDowell. One suitcase contained nine bundles of methamphetamine and the other contained 12 bundles of methamphetamine that weighed a total of 10.16 kilograms.
Under federal statutes, McDowell is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
New York Man Detained in Rhode Island on Drug Trafficking and Conspiracy ChargesRead the Press Release
PROVIDENCE, R.I. – A New York man who allegedly fled federal and state law enforcement by running onto an Interstate Rte. 95 offramp as officers and agents attempted to arrest him on drug trafficking charges has been ordered detained in federal custody following an initial appearance in U.S. District Court, announced United States Attorney Zachary A. Cunha.
A federal criminal complaint charges Miguel Evangelista Carrasco, 31, of Bronx, NY, with possession with intent to distribute controlled substances and conspiracy to distribute and possess with intent to distribute controlled substances.
It is alleged in charging documents that earlier this month U.S. Postal Service Inspection agents, with the assistance of a Rhode Island State Police narcotic trained K-9, determined that a package shipped from Puerto Rico to a Warwick, RI, address likely contained narcotics. A court-authorized search of the package on February 14, 2021, revealed a gift-wrapped package sprayed with foam; inside was a brick like object, wrapped in saran wrap, carbon paper, and rubber, containing two kilograms of cocaine.
Charging documents allege that on February 17 and again on Wednesday of this week, Carrasco appeared at the U.S. Postal Service’s Providence Processing and Distribution Center to claim the package. He presented a redelivery slip left by the Postal Service at the Warwick address and displayed an image which appeared to be a Rhode Island driver’s license which contained a photograph of Carrasco and the name of the individual to whom the package was addressed. As Carrasco left the post office with the package, he was confronted by U.S. Postal Inspection Service agents and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force. Carrasco fled on foot, running onto an Interstate Rte. 95 offramp, where he was apprehended after falling on the roadway, injuring his hands, feet, and left leg.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Stacey P. Veroni.
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New York City Man Convicted of Threatening to Kill U.S. Senator Joe Manchin and Fox News Hosts Laura Ingraham and Greg GutfeldRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RICKEY JOHNSON was convicted yesterday of threatening a federal official and making interstate threats, following a one-week jury trial before the Honorable Lewis A. Kaplan. JOHNSON threatened to kill United States Senator Joe Manchin and Fox News television hosts Greg Gutfeld and Laura Ingraham in direct messages and publicly posted videos on Instagram.
U.S. Attorney Damian Williams said: “Rather than express his political differences constructively, Rickey Johnson escalated his discord by instilling fear. Johnson's attempts to scare and stifle a U.S. Senator and two Fox News hosts were federal crimes for which he has now been convicted by a New York jury.”
According to court documents and the evidence at trial:
On January 30, 2021, JOHNSON sent direct private messages to Mr. Gutfeld that threatened, “you will be killed.” On February 3, 2021, JOHNSON posted public videos in which he threatened to kill Senator Manchin, Mr. Gutfeld, and Ms. Ingraham. Among other things, JOHNSON declared that Senator Manchin was “dead” and would be “executed”; told Mr. Gutfeld that he was “going to take [his] life”; and said that he would “kill” Ms. Ingraham with his “bare hands.”
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JOHNSON, 48, of New York, New York, was convicted of two counts of transmitting threatening interstate communications, which each carry a maximum sentence of five years in prison, and one count of threatening a federal official, which carries a maximum sentence of ten years in prison. JOHNSON was also acquitted of one count of threatening a federal official. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
JOHNSON is scheduled to be sentenced by Judge Kaplan on May 25, 2022.
Mr. Williams praised the outstanding investigative work of the New York City Police Department (“NYPD”), the NYPD’s Intelligence Bureau, Leads Investigation Unit, and the NYPD’s 23rd Precinct Field Intelligence Team.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant United States Attorneys Patrick R. Moroney, Kyle A. Wirshba, and Andrew J. DeFilippis are in charge of the prosecution.
New Orleans Woman Pleads Guilty to Social Security Fraud Spanning More Than Three DecadesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BETTY ARRINGTON a/k/a “Betty Callie Arrington,” a/k/a “Betty Francis C Miller,” a/k/a “Betty Miller” (“ARRINGTON”), age 72, a resident of New Orleans, Louisiana, pled guilty on February 23, 2022 in federal court before U.S. District Judge Lance M. Africk to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court records, ARRINGTON engaged in a 35-year multifaceted scheme to defraud the Social Security Administration (“SSA”). From 1984 through 2019, ARRINGTON intentionally used a Social Security number (“SSN”) not assigned to her by the Commissioner of the SSA to conceal her earnings from employment in the New Orleans area. ARRINGTON’s fraudulent use of a SSN, in addition to the concealment of program eligibility factors and the intentional submission of false statements to SSA, aided ARRINGTON in fraudulently gaining and maintaining Supplemental Security Income Disability benefits totaling approximately $164,270.90.
The Court set sentencing in this matter for June 1, 2022. ARRINGTON faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Duane A. Evans praised the work of the Social Security Administration Office of Inspector General for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Brandon Long.
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New Orleans Men Plead Guilty to Conspiracy to Distribute FentanylRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DENZEL SHINE, age 24, of New Orleans, and RAHKEEN ROBERTS, age 24, of New Orleans, pled guilty on February 23, 2022 to one count of conspiracy to distribute and possess with the intent to distribute 40 grams or more of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B) and 846.
According to court documents, SHINE and ROBERTS conspired with each other and others to distribute fentanyl from sometime prior to January 9, 2021 until August 19, 2021. SHINE and ROBERTS face a mandatory minimum sentence of 5 years, up to 40 years of imprisonment, up to $5,000,000 in fines, at least 4 years of supervised release, and a $100 mandatory special assessment fee.
This case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.