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15 February 2022
Wheeling man sentenced for methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Scott Everly, of Wheeling, West Virginia, was sentenced today to 37 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Everly, also known as “Capt,” 70, pleaded guilty in September 2021 to one count of “Distribution of Methamphetamine within 1000 Feet of a Protected Location.” Everly admitted to selling methamphetamine near Riverview Towers in Wheeling in July 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Weapons Smugglers Sentenced to PrisonRead the Press Release
TUCSON, Ariz. – Alejandro Valles, 27, of Aguila, Arizona, was sentenced yesterday by U.S. District Judge James A. Soto to 15 months in prison for smuggling weapons from the United States into Mexico. Judge Soto previously sentenced David Alberto Duarte-Marquez, 21, a Mexican citizen and Valles’ co-conspirator, to 33 months in prison. Both men pleaded guilty to their offenses.
On October 22, 2018, Valles placed an online order for an M203 40mm grenade launcher barrel. Valles received the barrel and sent the package to another individual in southern Arizona, who then smuggled the barrel into Mexico.
Similarly, on November 26, 2018, Valles’ co-conspirator Duarte-Marquez placed an online order for an M203 40mm grenade launcher barrel with the intent to smuggle it into Mexico. Duarte-Marquez had the barrel shipped to Valles. Once Valles received the barrel, he intended to follow the same steps of sending the package to southern Arizona so it could be smuggled into Mexico. However, the second barrel was intercepted by law enforcement while it was en route to Valles.
Homeland Security Investigations conducted the investigation in this case, with the assistance of Customs and Border Protection. Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 21-0543-TUC-JAS and 20-2414-TUC-JAS
RELEASE NUMBER: 2022-011_Valles# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Wanted Felon Pleads to Illegally Possessing Pistols and Ammunition Stolen from a Retired Police OfficerRead the Press Release
PITTSBURGH - A resident of Braddock Hills, Pennsylvania, pleaded guilty in federal court yesterday to violations of federal gun laws, United States Attorney Cindy K. Chung announced today.
Frankie Leon Morrison, 55, pleaded guilty to three counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that, on April 8, 2019, the Buffalo Township (Butler County) police were aware of multiple break-ins of vehicles in the area. A Buffalo Township Officer observed defendant Morrison reaching into a vehicle at 3:00 a.m. and when the officer attempted to speak with him, Morrison fled on foot. As Morrison later drove from the area, he was stopped and his vehicle was found to contain multiple stolen items, including two Glock pistols, ammunition, handcuffs and a key stolen from the vehicle of a recently retired Pittsburgh Police Sergeant. The defendant has multiple prior federal and state convictions which precluded him from lawfully possessing a firearm or ammunition under federal law. The defendant also pleaded guilty to possessing the firearms and ammunition despite being a wanted fugitive from the state of Connecticut and to possessing stolen firearms.
Judge Cercone scheduled sentencing for June 7, 2022, at 1:00 p.m. For each charge, the law provides for a total sentence of up to 10 years in prison, a fine of up to $250,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant. Judge Cercone noted that Morrison also faces the potential of an additional sentence because at the time of his crimes he was being supervised by United States Probation Officers after serving a prior federal sentence of 123 months for Armed Bank Robbery and the Illegal Possession of a Firearm. Judge Cercone set that sentencing for the same date.
Pending sentencing, the court remanded Morrison to the custody of the United States Marshals Service.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Morrison, with valuable assistance from the Buffalo Township Police Department.
Two Women Sentenced in Multi-Million-Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Colorado woman and a Houston woman were sentenced today in federal court in Boston for their roles in a multi-million-dollar Medicare fraud scheme.
Jessica Jones, 32, of Lakewood Colo., and Elizabeth Putulin, 31, of Houston, Texas were each sentenced by U.S. District Court Senior Judge George A. O’Toole, Jr. to three years of supervised release, the first year to be served in home detention. Judge O’Toole, Jr. also ordered Jones to pay restitution in the amount of $8.6 million and ordered Putulin to pay restitution in the amount of $20.7 million. Jones and Putulin are also barred from engaging in an occupation business in the health care industry. On Jan. 20, 2021, Jones and Putulin each pleaded guilty to one count of conspiracy to commit health care fraud.
Jones and Putulin conspired with Juan Camilo Perez Buitrago to submit more than $107.6 million in false and fraudulent claims for durable medical equipment (DME) such as arm, back, knee and shoulder braces. Jones and Putulin helped Perez manufacture and submit false and fraudulent Medicare claims by establishing shell companies in more than a dozen different states, including Massachusetts. At Perez’s request, Jones and Putulin purchased Medicare patient data from foreign and domestic call centers that targeted elderly patients and instructed call centers to contact the Medicare beneficiaries with an offer of ankle, arm, back, knee and/or shoulder braces “at little to no cost.” Perez then submitted Medicare claims for those patients without obtaining a prescriber’s order to ensure that the braces were medically necessary. Jones and Putulin further facilitated the fraud by answering frequent phone calls from Medicare patients who received DME that they did not request, want or need. Additionally, Jones and Putulin responded to insurance companies’ requests for prescriber’s orders and medical records, which they were unable to provide.
United States Attorney Rachael S. Rollins; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Rollins’ Health Care Fraud Unit prosecuted the case.
Two Former Federal Correctional Officers Plead Guilty to Bribery and Contraband Smuggling SchemeRead the Press Release
Two former correctional officers pleaded guilty today to engaging in bribery and smuggling contraband into Leavenworth Detention Center.
According to court documents, Jacqueline Sifuentes, 26, of Laredo, Texas, and Cheyonte Harris, 29, of Raytown, Missouri, previously worked as correctional officers at Leavenworth Detention Center, a privately-run maximum-security federal prison in Leavenworth, Kansas. Sifuentes used her position to smuggle contraband — including methamphetamine, marijuana and tobacco — into the prison in exchange for bribes from a federal inmate. Harris used her position to smuggle contraband into the prison in exchange for bribes from inmates and their associates.
Both defendants pleaded guilty to conspiracy to accept bribes and provide contraband to inmates of a federal prison. Each is scheduled to be sentenced on May 17, and each faces 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, Special Agent in Charge William J. Hannah of the Department of Justice Office of Inspector General (DOJ-OIG) Chicago Field Office, and Special Agent in Charge Charles A. Dayoub of the FBI’s Kansas City Field Office made the announcement.
The FBI and DOJ-OIG are investigating the cases.
Trial Attorneys Rebecca M. Schuman and Dahoud A. Askar of the Justice Department’s Public Integrity Section are prosecuting the cases.
The cases are part of the Justice Department’s ongoing efforts to combat prison corruption. In addition to the above matters, the Public Integrity Section recently obtained convictions against two other former Leavenworth Detention Center officials for similar conduct. See United States v. Willie Golden, Case No. 2:21-cr-20061 (D. Kan.); United States v. Janna Grier, Case No. 2:22-cr-20001 (D. Kan.). Separately, the Public Integrity Section has obtained convictions against three former North Carolina prison officials who smuggled contraband, including narcotics, into a state facility in exchange for bribes. See United States v. Ollie Rose, III, No. 4:20-CR-96 (E.D.N.C.); United States v. Kenneth Farr, No. 4:21-CR-9 (E.D.N.C.); and United States v. Jeremy Chambers, No. 4:21-CR-38 (E.D.N.C.).
Two East St. Louis Men Indicted for String of Carjackings in the Metro EastRead the Press Release
East St. Louis, Ill. – Armon R. Simpson, 18, and Jamariante N. Burgess, 19, both of East St. Louis, Illinois, have been charged by superseding indictment with Conspiracy to Commit Carjacking, Carjacking, and Use of a Firearm During a Crime of Violence. Both men have been ordered detained pending trial.
According to court documents, between July 12, 2021, and August 5, 2021, Simpson, Burgess, and others, conspired to commit armed carjackings, including three carjackings in the
Eastern District of Missouri and the Southern District of Illinois. The final carjacking prior to their arrest occurred on August 5, 2021. Burgess and Simpson approached a vehicle in downtown Saint
Louis, Missouri, displayed firearms at the passengers, and forcibly took their vehicle. Afterwards, they fled to East St. Louis, Illinois, where they shot a man walking in an apartment complex and then discarded the stolen vehicle.If convicted, Simpson and Burgess face up to 15 years imprisonment on the Carjacking charge, 5 years for Conspiracy to Commit Carjacking, and an additional sentence of 7 years for Using a
Firearm during a Crime of Violence, which must run consecutive to all other sentences.An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Illinois State Police Public Safety Enforcement Group (PSEG), the East St. Louis Police Department, Saint Louis Metropolitan Police Department, and Saint Louis County Police Department. PSEG is a newly formed Illinois State Police unit embedded in and working in direct partnership with the East St. Louis Police Department.
Assistant United States Attorney Alexandria Burns is prosecuting the case.
Three Men Sentenced for $2.7 Million COVID-19 Relief Fraud SchemeRead the Press Release
Three men were sentenced yesterday in the Middle District of North Carolina for fraudulently seeking over $2.7 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
Joseph Marsell Cartlidge, 30, of Greensboro, North Carolina, was sentenced to 72 months in prison; David Christopher Redfern, 32, of Trinity, North Carolina, was sentenced to 60 months in prison; and Eric Alexander McMiller, 30, of Chicago, Illinois, was sentenced to 66 months in prison. Each defendant was also ordered to pay $498,657 in restitution.
According to court documents, Cartlidge, Redfern and McMiller joined a scheme led by James Stote, who with others, recruited the defendants to apply for fraudulent PPP loans for registered businesses, with the understanding and agreement they would provide a portion of the PPP loan proceeds to their recruiter. Between May and June 2020, the defendants submitted fraudulent PPP loan applications misrepresenting the number of employees and the average monthly payroll expenses of the defendants’ various businesses. The defendants submitted false tax and bank records in support of their loan applications. The defendants also independently applied for fraudulent EIDLs and misrepresented the number of employees, gross revenues, and costs of goods sold for each business. In total, the defendants sought over $2.7 million in PPP loans and EIDL funds. The defendants then used the loan proceeds for their own personal benefits, including for luxury purchases and cash withdrawals.
Stote pleaded guilty on Dec. 15, 2021, to conspiracy to commit wire fraud in the Northern District of Ohio.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; Acting Special Agent in Charge Mona Passmore of the IRS-Criminal Investigation (IRS-CI) Charlotte Field Office; Special Agent in Charge Kyle Myles of the FDIC-OIG Atlanta Region; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
TIGTA, FDIC-OIG, and IRS-CI investigated the case. The Justice Department thanks SBA-OIG for their support and assistance.
Trial Attorneys Jennifer Bilinkas and Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nicole Dupre for the Middle District of North Carolina and Meredith Ruggles, formerly of the U.S. Attorney’s Office for the Middle District of North Carolina, prosecuted the case.
In May 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Three Men Sentenced for $2.7 Million COVID-19 Relief Fraud SchemeRead the Press Release
Three men were sentenced yesterday in the Middle District of North Carolina for fraudulently seeking over $2.7 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
Joseph Marsell Cartlidge, 30, of Greensboro, North Carolina, was sentenced to 72 months in prison; David Christopher Redfern, 32, of Trinity, North Carolina, was sentenced to 60 months in prison; and Eric Alexander McMiller, 30, of Chicago, Illinois, was sentenced to 66 months in prison. Each defendant was also ordered to pay $498,657 in restitution.
According to court documents, Cartlidge, Redfern and McMiller joined a scheme led by James Stote, who with others, recruited the defendants to apply for fraudulent PPP loans for registered businesses, with the understanding and agreement they would provide a portion of the PPP loan proceeds to their recruiter. Between May and June 2020, the defendants submitted fraudulent PPP loan applications misrepresenting the number of employees and the average monthly payroll expenses of the defendants’ various businesses. The defendants submitted false tax and bank records in support of their loan applications. The defendants also independently applied for fraudulent EIDLs and misrepresented the number of employees, gross revenues, and costs of goods sold for each business. In total, the defendants sought over $2.7 million in PPP loans and EIDL funds. The defendants then used the loan proceeds for their own personal benefits, including for luxury purchases and cash withdrawals.
Stote pleaded guilty on Dec. 15, 2021, to conspiracy to commit wire fraud in the Northern District of Ohio.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; Acting Special Agent in Charge Mona Passmore of the IRS-Criminal Investigation (IRS-CI) Charlotte Field Office; Special Agent in Charge Kyle Myles of the FDIC-OIG Atlanta Region; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
TIGTA, FDIC-OIG, and IRS-CI investigated the case. The Justice Department thanks SBA-OIG for their support and assistance.
Trial Attorneys Jennifer Bilinkas and Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nicole Dupre for the Middle District of North Carolina and Meredith Ruggles, formerly of the U.S. Attorney’s Office for the Middle District of North Carolina, prosecuted the case.
In May 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Three Individuals Charged in Orleans County Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated two individuals were arrested on February 15, 2022, in Westfield, Vermont on federal charges relating to the distribution of controlled substances. Federal arrest warrants had been issued for their arrests in conjunction with a criminal complaint filed in federal court on February 10, 2022, alleging that Rachael Goulet (age 27), Johnny Crocker (age 25), and an unidentified individual using the street name “Danger” had conspired with one another and others to distribute controlled substances—including cocaine, cocaine base (“crack”), and fentanyl—in the District of Vermont between the end of December 2021 and the filing of the complaint. Goulet and Crocker are expected to appear in U.S. District Court in Burlington before Magistrate Judge Kevin J. Doyle for an initial hearing on the complaint this afternoon or tomorrow.
The following factual allegations are contained in the criminal complaint filed in the case. Goulet and Crocker possessed and distributed controlled substances from their shared residence in Westfield. Goulet and Crocker also hosted individuals from outside of Vermont at their residence for purposes of obtaining and distributing controlled substances. “Danger” was one such individual who lived in their residence and distributed large amounts of drugs while collecting the proceeds from the distributions. The defendants worked together to bring cocaine and fentanyl into Vermont and then process and distribute it in Orleans County for a profit or to support their own consumption. Many of the defendants’ drug-distribution activities involved communications over social media or smartphone applications. During the period of the conspiracy, an individual with whom Goulet and Crocker were acquainted was shot and seriously wounded in Holland, Vermont on January 1, 2022; the individual’s mother was present and was also wounded in the incident. A suspect has been charged by the Orleans County State’s Attorney in connection with that shooting, and he is presently in custody in Connecticut on an unrelated charge.
The United States Attorney emphasizes that the charge in the complaint is a preliminary accusation only and that each defendant is presumed innocent unless and until proven guilty. If convicted of this offense, Goulet and Crocker would each face a maximum sentence of 20 years’ imprisonment and up to a $1 million fine. Any actual sentence for each defendant, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines and the United States Code.
The charge in this complaint follows an investigation conducted by multiple state and federal agencies that was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). During the investigation, law enforcement conducted controlled purchases of narcotics from, and investigated the purchase and attempted purchase of multiple firearms by, the defendants and their associates. ATF was assisted in this investigation by the Vermont Drug Task Force, detectives and troopers from the Vermont State Police, members of the Orleans County Sheriff’s Department, officers with the Newport Police Department, agents and task force officers with Homeland Security Investigations (HSI), United States Border Patrol, the Drug Enforcement Administration (DEA), and aviators with the Air & Marine Operations (AMO) component of United States Customs & Border Protection.
United States Attorney Nikolas P. Kerest commended law enforcement’s collaborative investigatory efforts in this matter.
The United States is represented in this matter by Assistant U.S. Attorney Matthew Lasher. Attorney information for the defendants is not yet available.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. See https://www.justice.gov/psn.
Suspect Arrested in Indian Country MurderRead the Press Release
OKLAHOMA CITY – JOHNNY SAPCUT, 18, of Elgin, Oklahoma, has been arrested for murder in connection with a death in Indian country, announced U.S. Attorney Robert J. Troester.
According to an affidavit in support of a criminal complaint filed today, in the early hours of February 15, 2022, law enforcement responded to a home after a woman called 911 in apparent distress. The affidavit alleges that Sapcut and the woman were the only two in the home and that the woman was deceased. An investigation into the cause of death is underway.
The case is charged in federal court because the alleged crime took place on tribal land of the Comanche Nation both the defendant and victim are members of the Comanche Nation.
Sapcut was arrested in the early morning hours and made his initial appearance today before U.S. Magistrate Judge Shon T. Erwin. Judge Erwin ordered that Sapcut be detained pending a detention hearing on February 18, 2022.
If found guilty, Sapcut faces a maximum potential penalty of life in prison, five years of supervised release, a fine of $250,000, and mandatory restitution. This case is a result of an investigation by the FBI’s Oklahoma City Field Office, the Comanche Nation Police, and the Comanche County Sheriff’s Department. Assistant U.S. Attorney Tiffany Noble is prosecuting the case.
The public is reminded that this charge is merely an allegation and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
St. Louis man enters guilty plea for being a felon in possession of a firearmRead the Press Release
ST. LOUIS –On February 15, 2022, Horatio Harris pleaded guilty in front of District Court Judge Ronnie L. White to being a felon in possession of a firearm.
According to the plea agreement, on September 4, 2020, the St. Louis Metropolitan Police Department (SLMPD) received a call about a crowd gathered outside a boarding house in the City of St. Louis. When officers arrived, they found a group of fifteen to twenty people in the street. A woman from the crowd explained that she had come to confront their stepfather, Horatio Harris, about the suspicious death of her two-year-old nephew.
When Harris saw the group approaching the boarding house, he went to his room upstairs, retrieved a silver revolver, and answered the door with the gun in hand. Officers determined that Harris was a convicted felon and prohibited from possessing a firearm, specifically in this case, a .38 caliber Colt Army Special revolver that was recovered by police at the scene. Harris later made admissions knowing he was a convicted felon and that he was prohibited from possessing the firearm.
Harris faces a maximum term of incarceration of not more than 10 years, a fine of not more than $250,000, or both such imprisonment and fine. The Court also may impose a period of supervised release of not more than 3 years. Sentencing is set for May 18, 2022.
The case was investigated by the St. Louis Metropolitan Police Department and is being prosecuted by Assistant United States Attorney Zachary Bluestone.
Southbridge Man Pleads Guilty to Cocaine OffenseRead the Press Release
BOSTON – A Southbridge man was pleaded guilty today in federal court in Worcester to cocaine possession.
Revel Pedro Rivera, 43, pleaded guilty to one count of attempted possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 7, 2022. Rivera was indicted in September 2020.
In early July 2020, federal agents intercepted a package containing a kilogram of cocaine that was shipped to Rivera’s residence from Puerto Rico. Agents removed the cocaine and replaced it with a counterfeit substance. On July 6, 2020, Rivera accepted delivery of the package and was arrested as he left the property with the package that he believed contained cocaine.
The charge of possession with intent to distribute 500 grams or more of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, four years of supervised release and a fine of up to $5 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Ketty Larco-Ward, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Southbridge Police Chief Shane Woodson made the announcement. Assistant U.S. Attorney Danial Bennett of Rollins’ Worcester Branch Office is prosecuting the case.
South Bend Man Sentenced to 21 Months in PrisonRead the Press Release
HAMMOND- Samuel Strickland, 37, of South Bend, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Strickland was sentenced to 21 months in prison followed by 2 years of supervised release.
According to documents in the case, on April 7, 2019, officers responded to a shots fired call in Hammond and recovered a loaded 9mm firearm from Strickland. His criminal history revealed he had been previously convicted of aggravated battery with great bodily harm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hammond Police Department. This case was prosecuted by Assistant U.S. Attorney David J. Nozick.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Richland Naturopath Agrees to Pay $70,096 for Improper Prescription of Controlled SubstancesRead the Press Release
Richland, Washington – Judith K. Caporiccio, N.D., a Richland-based naturopathic doctor, has agreed to pay $70,096 to resolve allegations under the Controlled Substances Act and the False Claims Act, which allege that she improperly prescribed controlled substances between July 2016 and July 2021. The Controlled Substances Act regulates certain drugs that pose a risk of abuse and dependence. To protect public safety and prevent misuse and diversion, the Act requires practitioners to register with the Drug Enforcement Administration (“DEA”) to prescribe these controlled substances.
During the relevant time period, Dr. Caporiccio was a naturopathic doctor licensed in the State of Washington and practicing in Richland, Washington. Under state and federal law, as a naturopathic doctor, Dr. Caporiccio was only authorized to prescribe two types of controlled substances: codeine and testosterone products. In the settlement agreement recently reached between the United States and Dr. Caporiccio, she admitted issuing at least 421 prescriptions for controlled substances that she was not authorized to prescribe. These controlled substances included the sleep aid zolpidem (often sold under the brand name Ambien); the anti-anxiety drug alprazolam (sometimes sold under the brand name Xanax); the benzodiazepine lorazepam; the stimulant modafinil (typically prescribed for narcolepsy and sleep apnea); and the sedative pregabalin (sold by Pfizer under the brand name Lyrica).
The settlement agreement also indicates that Dr. Caporiccio ceased her improper prescribing practices in 2021 after being contacted by the DEA, and that she voluntarily surrendered her DEA registration. Additionally, the settlement agreement requires Dr. Caporiccio to implement additional controls and procedures to ensure that this conduct does not recur.
“My office is committed to protecting our community from drug misuse and diversion. I am relieved that it appears no patient was seriously harmed by the medications improperly prescribed by Dr. Caporiccio, but when a healthcare practitioner prescribes controlled substances that she is not licensed or qualified to prescribe, the public is placed at serious risk of potentially dangerous side effects, drug interactions, and contraindications,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “This resolution demonstrates our commitment to protecting public health, keeping our families safe, and building strong communities. In particular, I commend the excellent investigative work conducted by DEA’s Diversion Group and the Department of Health and Human Services Office of Inspector General. We will continue to work with our law enforcement partners to hold health care practitioners accountable to their patients and the public.”
“Doctor Caporiccio’s careless and irresponsible prescribing habits are a violation of federal law and in serious breach of her naturopathic license, presenting a clear and present danger to our nation’s health and security,” said Frank A. Tarentino III, Special Agent-in Charge of the DEA’s Seattle Field Division. “The DEA is working closely with our federal partners in a joint effort to increase community outreach and education, while simultaneously using our civil and administrative enforcement authorities to hold accountable pharmacies who fail to exercise their corresponding responsibility and prescribers who are writing prescriptions outside their scope of practice. Today’s settlement sends a strong message that we will seek justice and hold those accountable, like Dr. Caporiccio, who intentionally distribute highly addictive drugs to patients with reckless abandon and no concern for their safety.”
The settlement was the result of a joint investigation conducted by DEA’s Seattle Field Office, Diversion Group, the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, and the U.S. Attorney’s Office for the Eastern District of Washington. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene handled this matter on behalf of the United States.
Philadelphia Man Sentenced to 5 Years in Prison a for Conspiring to Distribute Fentanyl and HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, PA, has been sentenced in federal court to a total of 60 months in prison followed by 4 years supervised release on his conviction of conspiracy to distribute and possess with intent to distribute fentanyl and heroin, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence Christofer Waters 27, of Philadelphia, Pennsylvania.
According to information presented to the court, from on or about July 5, 2018, to on or about May 5, 2020, Waters did conspire to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl, and a quantity of heroin. According to information presented to the court, Waters was a co-leader of a drug trafficking organization that operated between Philadelphia and Indiana County, Pennsylvania. Waters admitted responsibility for distributing a total of 142 grams of fentanyl and 23 grams of heroin on 23 occasions between July 2018 and May 2019
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
OCDETF conducted the investigation leading to the Indictment in this case. The task force is headed by the Federal Bureau of Investigation, Laurel Highlands Resident Agency and is comprised of members drawn from the FBI Safe Streets Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Indiana Borough Police Department.
Pearl District Drug Dealer Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for possessing with intent to distribute large quantities of cocaine from his Pearl District apartment.
Antonio Bernal Osorio, Jr., 40, was sentenced to 78 months in federal prison.
According to court documents, in September 2020, U.S. Drug Enforcement Administration (DEA) agents learned that Osorio was selling drugs from his apartment in Northwest Portland. Between November 2020 and January 2021, DEA agents conducted multiple successful controlled purchases of cocaine from Osorio, and, on January 21, 2021, executed a search warrant on his apartment. They seized approximately 15 kilograms of cocaine, a .40 caliber pistol, an AR-15-syle semi-automatic rifle, a 9mm handgun, $46,000 in MGM Casino chips, and more than $450,000 in cash.
On May 10, 2021, Osorio was charged by criminal information with possession with intent to distribute cocaine. On June 8, 2021, he waived indictment and pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was prosecuted by DEA with assistance from the Clackamas County Interagency Task Force. It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
Oklahoma Orthopedic Surgeon Agrees to Pay Almost $343,000 to Settle False Claims Act AllegationsRead the Press Release
Dr. Mark Stephen Wilson agreed to pay the United States $342,750 to resolve False Claims Act allegations that he accepted illegal kickback payments from Brookhaven Specialty Pharmacy LLC, announced U.S. Attorney Clint Johnson.
Wilson is an orthopedic surgeon in Tulsa and Oklahoma City and focuses on pain management and rehabilitation.
From February 2014 through September 2016, Wilson was alleged to have knowingly accepted significant payments from Brookhaven Specialty Pharmacy LLC in exchange for recommending and prescribing pain creams that were compounded and produced by the pharmacy.
As part of their arrangement, the pharmacy paid Wilson what the two parties characterized as “medical director fees” based upon an hourly rate. However, the United States alleged the “medical director fees” were, in actuality, kickback payments for prescribing the compounded pain creams.
Because Wilson wrote the prescriptions for patients who were federally insured under the Federal Employees Compensation Act Program (FECA), the kickbacks were in violation of the False Claims Act.
“The U.S. Attorney’s Office is committed to ensuring federal health care dollars are spent in accordance with the law and will not tolerate the abuse of federal health care programs,” said U.S. Attorney Clint Johnson. “The government will use every tool at our disposal, including civil or criminal proceedings, to hold violators accountable.”
It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance. Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
To report fraud and abuse committed against the federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
This settlement agreement resolves allegations that Wilson had an illegal financial relationship with Brookhaven Specialty Pharmacy LLC, concerning pain creams. The claims resolved by the settlement are allegations only; there has been no determination of liability.
This matter was handled by Assistant U.S. Attorney Richard M. Molot of the U.S. Attorney’s Office for the District of Connecticut and is the product of a collaborative investigation by the U.S. Department of Labor-Office of Inspector General and the U.S. Postal Service-Office of Inspector General.
New Orleans Man Indicted for Carjacking and Violations of the Federal Gun Control Act and Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DARRION YOUNG, age 37, a resident of New Orleans, was charged on February 11, 2022 in a six-count indictment by a federal grand jury for carjacking, brandishing, using, and carrying a firearm during and in relation to a crime of violence, possessing a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm, and distribution and possession with intent to distribute controlled substances, announced U.S. Attorney Duane A. Evans.
If convicted of carjacking, YOUNG faces a maximum term of imprisonment of fifteen (15) years, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment.
If convicted of distributing and possessing with intent to distribute controlled substances, YOUNG faces a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000.00, and at least three (3) years of supervised release following any term of imprisonment.
If convicted of being a felon in possession of a firearm, YOUNG faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment.
If convicted of possessing a firearm in furtherance of a drug trafficking crime, YOUNG faces a minimum term of imprisonment of five (5) years up to a maximum term of imprisonment of life, to be served consecutively to all other charges, up to a $250,000 fine, and up to (5) years of supervised release following any term of imprisonment.
If convicted of brandishing, using, and carrying a firearm during and in relation to a crime of violence, YOUNG faces a minimum term of imprisonment of seven (7) years up to a maximum term of imprisonment of life, to be served consecutively to all other charges, up to a $250,000 fine, and up to (5) years of supervised release following any term of imprisonment.
As to each of the six (6) counts of the indictment, YOUNG also faces payment of a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant U.S. Attorney Mike Trummel.
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New Castle Man Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania has been sentenced in federal court to 30 months’ imprisonment followed by six years of supervised release on his conviction for conspiracy to distribute and possess with intent to distribute cocaine, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Darnell Latham, 52, of New Castle, Pennsylvania.
According to the information presented to the court, the Drug Enforcement Administration began investigating a cocaine and fentanyl trafficking organization that operated throughout the United States, including Florida, Ohio, Pennsylvania, and Puerto Rico. Beginning in December of 2019 and continuing through August of 2020, the DEA received authorization to conduct a Title III wiretap investigation into the organization. Latham was intercepted communicating with his codefendant and coconspirator discussing the distribution of cocaine. In addition to the intercepted communications, agents seized cocaine, heroin, fentanyl, methamphetamine, ecstasy, marijuana, firearms, and bulk United States Currency from members of the organization.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
United States Attorney Chung commended the Drug Enforcement Administration (“DEA”) in Pittsburgh, PA; the DEA, Columbus, OH; DEA, Harrisburg, PA; Homeland Security Investigations (“HSI”), Pittsburgh, PA; HSI, Orlando, FL; Internal Revenue Service-Criminal Investigations; United States Postal Service, Columbus, Ohio; Pennsylvania Office of Attorney General; Lawrence County Drug Task Force – Special Investigations Unit; and New Castle Police Department for the investigation leading to the successful prosecution of Latham.
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.
Native of Dominican Republic Arrested at the Cyril E. King Airport for Making Materially False Statements to Government AgentsRead the Press Release
St. Thomas, United States Virgin Islands – A citizen of the Dominican Republic was arrested on February 11, 2022, at the Cyril E. King Airport on a criminal charge based on his provision of false information to agents of Customs and Boarder Protection.
According to court documents, Luis Miguel Lopez, 28, presented himself to Customs and Border Protection for inspection at the Cyril E. King Airport. There, he presented what purported to be a Puerto Rican driver’s license bearing the name of another person and repeatedly told agents that he was a United States citizen born in Puerto Rico. An inspection of his baggage revealed a Social Security card and birth certificate bearing the same false name appearing on the driver’s license he had presented to Customs and Border Protection officials. Records checks revealed the documents were issued to others – not to a person with the name being used by Luis Miguel Lopez. When confronted with this information, Luis Miguel Lopez admitted to agents that he is a citizen of the Dominican Republic and provided his true name.
Luis Miguel Lopez is charged with a violation of 18 U.S.C. § 1001(a)(2) for making a material false statement in a matter within the jurisdiction of the Executive Branch of the United States Government. If convicted, he faces a sentence of up to 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations is investigating the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minnesota Man Pleads Guilty in Federal Court for Illegally Possessing a ShotgunRead the Press Release
A Minnesota man who possessed a 12-gauge shot gun while using marijuana and being a convicted felon, pled guilty on February 10, 2022, in federal court in Sioux City. Michael Anthony Hangman, age 36, from Worthington, MN, was convicted of possession of a firearm by a prohibited person.
At the plea hearing, Hangman admitted to possessing a 12-gauge shotgun while being an unlawful user of marijuana and having prior felony convictions. Hangman led law enforcement on a police chase beginning in Minnesota and ending in Iowa. Hangman was traveling at speeds reaching 120 mph. Hangman’s shotgun was modified or cut to approximately 19 inches and spray painted black. Officers recovered marijuana, a digital scale with meth residue on it, and baggies from Hangman’s car. Hangman was prohibited from possessing firearms due to his drug use and prior felony convictions in the State of Minnesota for Terroristic Threats-Reckless Disregard, and Drugs-Storing Meth Paraphernalia in the Presence of Child or Vulnerable Adult.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hangman remains in custody of the United States Marshal pending sentencing. Hangman faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and Mikala Steenholdt-Purdy and was investigated by Osceola County Sheriff’s Office, Osceola County Attorney’s Office, Nobles County Sheriff’s Office (MN), Buffalo Police Department (MN), Bureau of Alcohol, Tobacco, & Firearms,
Iowa Division of Criminal Investigations Crime Laboratory, and Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4003.
Follow us on Twitter @USAO_NDIA.
Mexican Businessman Admits to Brokering Spyware Used to Monitor Political and Business RivalsRead the Press Release
Assistant U. S. Attorney Sabrina L. Fève (619) 546-6786
NEWS RELEASE SUMMARY – February 15, 2022
SAN DIEGO – Mexican businessman Carlos Guerrero pleaded guilty in federal court today, admitting that he conspired to sell and use hacking tools manufactured by private companies in Italy, Israel and elsewhere.
According to court documents, Guerrero owned and operated a consortium of U.S. and Mexican companies and brokered sales of interception and surveillance tools to Mexican government clients, as well as private and commercial customers. In 2014 and 2015, Guerrero worked primarily with an Italian company that sold hacking devices and geolocation tools. Through relationships developed at Guerrero’s direction, Guerrero’s company subsequently brokered the sale of interception devices and hacking services manufactured by Israeli and other companies.
In 2016 and 2017, for example, Guerrero marketed signal jammers, Wi-Fi interception tools, IMSI catchers, and the ability to hack WhatsApp messages to prospective clients in the U.S. and Mexico. Guerrero admitted to knowing that, in some cases, his Mexican government clients intended to use the interception equipment for political purposes, rather than for legitimate law enforcement purposes. In one case, he knowingly arranged for a Mexican mayor to gain unauthorized access to a political rival’s Twitter, Hotmail, and iCloud accounts. Guerrero also admitted that the hacking tools and technologies he brokered would be used for commercial and personal purposes by private clients.
For example, Guerrero himself used the equipment to intercept the phone calls of a U.S. rival while the rival was in both Southern California and Mexico, and Guerrero’s company arranged for a large Mexican business to intercept the phone and email accounts of a Florida-based sales representative in exchange for approximately $25,000.
“Today’s guilty plea helps stem the proliferation of digital tools used for repression and advances the digital security of both U.S. and Mexican citizens,” stated U.S. Attorney Randy Grossman. “This Office is committed to disrupting malicious cyber activities and mitigating unlawful surveillance.” Grossman thanked the prosecution team and Homeland Security Investigations for their excellent work on this case.
“With this guilty plea, we are sending a clear message that companies and individuals who unlawfully violate privacy rights will not be tolerated and they will be held accountable,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The world we live in is increasingly interconnected by technology meant to improve our lives, but as seen in this case, this same technology can be acquired by bad actors with harmful intentions. HSI and our law enforcement partners will remain committed to bringing to justice those who attempt to manipulate these platforms for nefarious purposes.”
This case was investigated by Homeland Security Investigations, with assistance provided by the Department of Justice’s Computer Crime and Intellectual Property Section.
DEFENDANT Case Number 22cr0280-JLS
Carlos Guerrero Age: 48 Chula Vista, CA and Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371 (to violate 18 U.S.C. §§ 2511(1)(a) and 2512(1)(b))
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
Martinsburg woman admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bonnie Lou Breeden, of Martinsburg, West Virginia, has admitted to her role in a drug distribution enterprise, United States Attorney William Ihlenfeld announced.
Breeden, 53, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Breeden admitted to working with others in a drug distribution operation in Berkeley County and elsewhere from June 2019 to October 2020.Breeden faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Martinsburg woman admits to role in drug trafficking and firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jennifer Dick, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Dick, 46, pleaded guilty today to one count of “False Statement During Purchase of Firearm.” Dick admitted to falsifying a form to purchase a firearm for someone else in March 2020 in Berkeley County.
Dick faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department, and the Metropolitan Police Department of Washington, D.C. investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kevin Gene Barron, of Martinsburg, West Virginia, has admitted to his role in a drug distribution enterprise, United States Attorney William Ihlenfeld announced.
Barron, 46, pleaded guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Barron admitted to working with others in a drug distribution operation in Berkeley County and elsewhere from June 2019 to October 2020.Barron faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Madison Man Admits Defrauding InvestorsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that BRIAN HUGHES, 57, of Madison, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple offenses stemming from a scheme to defraud investors of two companies.
According to court documents and statements made in court, in March 2015, Hughes founded Handcrafted Brands, LLC (“HCB”), for the purpose of raising money to purchase Salute American Vodka, (“Salute”) an alcoholic beverage company. Hughes subsequently solicited and received funds from dozens of investors ostensibly for the purchase and subsequent development of Salute. Hughes used the first investment he received, in the amount $150,000, to pay his taxes and his American Express credit card expenses. Although HCB purchased Salute in June 2016 for $450,000, Hughes continued to solicit investments from investors and used hundreds of thousands dollars in invested funds for expenses unrelated to Salute. He also used funds to pay off an earlier investor under the guise of a return on a prior investment made by the earlier investor, which is commonly known as a “lulling” payment.
Hughes also solicited investments purportedly on behalf of another company, which is identified in court documents as “Company-1.” In fact, Hughes had no official relationship with Company-1 and could not raise capital on its behalf. Hughes spent the money he received for this investment on personal expenses, to pay earlier investors, and on business related to Salute.
Finally, Hughes evaded the assessment of his tax obligations for the 2015 through 2018 tax years by substantially underreporting his income to the IRS, resulting in a tax loss of $470,880.
Hughes pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, one count of making an illegal monetary transaction, which carries a maximum term of imprisonment of 10 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Hughes has agreed to pay full restitution to the IRS and to all investors in both HCB and Company-1 in the total amount of $2,991,880.
Hughes was arrested on January 14, 2021. He is released on a $250,000 bond pending sentencing, which is not scheduled.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
MS-13 Member Sentenced to 33 Years in Prison for RICO Conspiracy and Murder of TeenagerRead the Press Release
BOSTON – A member of MS-13 was sentenced today in federal court in Boston for RICO conspiracy and his participation in the July 2018 murder of a teenage boy in Lynn, who suffered at least 32 sharp force trauma wounds consistent with being stabbed repeatedly, along with blunt force injuries to the head.
Jonathan Tercero Yanes, a/k/a “Desalmado,” 24, a Salvadoran national, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 33 years in prison and five years of supervised release. In May 2021, Tercero Yanes pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, also known as RICO conspiracy, on behalf of the MS-13 gang. As part of his plea, Tercero Yanes also admitted to participating in the 2018 murder of a teenager, who was murdered with extreme atrocity and cruelty, and with deliberate premeditation, in violation of Massachusetts law.
MS-13, or La Mara Salvatrucha, is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras, and Guatemala. MS-13 gang members often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement, and others who the gang views as a threat. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts. MS-13 is organized into “cliques” or branches operating in local territories. Tercero Yanes belonged to the “Sykos Locos Salvatrucha” clique of MS-13, which operated in the cities of Lynn, Chelsea and other parts of Massachusetts.
In November 2018, Tercero Yanes and five other MS-13 members of the Sykos clique were indicted following an investigation into the murder of a teenage boy, whose body was found in a park in Lynn on Aug. 2, 2018. The six defendants in this case included five participants in the murder, as well as one longstanding member of the Sykos clique. In a related case, the government charged a juvenile co-conspirator who was the sixth person involved in the murder.
The evidence in this case, which included a recording of one of Tercero Yanes’ co-defendants describing the murder in graphic detail, revealed that Tercero Yanes and five other MS-13 gang members murdered the victim based on their mistaken belief that he may have been assisting law enforcement.
On July 30, 2018, the gang members lured the victim to a playground and at least four of them were armed with knives. The group pretended to be friendly with the unsuspecting victim and took him to a wooded area of the park where they surrounded the victim and repeatedly stabbed him to death. At least four of the six assailants, including Tercero Yanes, stabbed the victim, while two others assisted at the scene. After killing the victim, the gang members left his body in the wooded area of the public park. An autopsy revealed that the victim suffered at least 32 sharp force trauma wounds consistent with being stabbed repeatedly, along with blunt force injuries to the head.
The investigation also revealed that Tercero Yanes had been stopped by immigration authorities on at least two occasions prior to his participation in the July 2018 murder, including efforts by the Department of Homeland Security to have him detained in immigration custody in November 2017 based on a belief that Tercero Yanes posed a threat to public safety. Tercero Yanes was released on bond from immigration custody in November 2017.
All six defendants indicted in this case, along with the juvenile charged in the related case, have pleaded guilty. Tercero Yanes is the second defendant to be sentenced in the case. Yesterday, Feb. 14, 2022, Erick Lopez Flores a/k/a Mayimbu was sentenced to 40 years in prison. Henri Salvador Gutierrez, a/k/a “Perverso,” is scheduled to be sentenced on Feb. 16, 2022 for RICO conspiracy and his participation in the July 2018 murder, as well as his participation in a December 2016 murder in East Boston. Djavier Duggins, a/k/a “Haze,” is scheduled to be sentenced for RICO conspiracy on Feb. 17, 2022. Sentencing hearings for the two remaining co-defendants, Eliseo Vaquerano Canas a/k/a “Peligroso” and Marlos Reyes a/k/a “Silencio” have not yet been scheduled by the Court.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Kevin Hayden; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Christopher Reddy made the announcement. Assistant U.S. Attorneys Kunal Pasricha and Kaitlin O’Donnell of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Leader of a Drug Trafficking Organization Sentenced to 136 Months in PrisonRead the Press Release
The leader of a drug trafficking organization that distributed cocaine and methamphetamine to buyers in Tulsa was sentenced Friday in federal court.
“Serial drug distributor Moises Gaeta will serve more than 11 years in federal prison for distributing pounds of methamphetamine in Tulsa,” said U.S. Attorney Clint Johnson. “Distributors like Gaeta have little regard for the lives lost to addiction and violence resulting from their criminal operations. The U.S. Attorney’s Office will continue to work with our law enforcement partners to investigate, disrupt, and prosecute criminal networks who pose a threat to communities in the Northern District of Oklahoma.”
U.S. District Judge Gregory K. Frizzell sentenced Moises Gaeta, 38, of Tulsa, to 136 months in federal prison followed by five years of supervised release.
Gaeta previously pleaded guilty to drug conspiracy. Gaeta admitted that beginning as early as January 2019 and continuing through August 2020, he knowingly conspired with others to possess with intent to distribute and to distribute 50 grams or more of methamphetamine and 28 grams or more of cocaine. Gaeta supplied and distributed the drugs to third parties.
Along with Gaeta, codefendants Jose Alfredo Rivas, Jose Luis Loya-Saenz, Rhonda Sanders and Amanda Marie Wells all pleaded guilty for their roles in the distribution ring. Rivas was sentenced to 84 months in prison; Loya-Saenz received 70 months in prison; Sanders received 27 months in prison; and Wells received three years of probation.
This case was prosecuted as part of Operation Gopher Broke, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation led by Assistant U.S. Attorney Joel-lyn McCormick and the FBI’s Oklahoma City Field Office. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In 2009, Gaeta was sentenced in a separate case to 324 months in federal prison for distributing narcotics and firearms. In 2018, Gaeta filed for and was granted a motion for early release from prison. Upon his release in September 2018, Gaeta returned to Tulsa, established contact with former criminal associates and began distributing methamphetamine.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case.
Lawton Gang Member Sentenced to Serve Six Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
OKLAHOMA CITY – Yesterday, JATARVIS MANDEZ PRATT, 26, of Lawton, was sentenced to serve 72 months in federal prison for being a convicted felon in illegal possession of a firearm, announced United States Attorney Robert J. Troester.
On February 18, 2021, a federal grand jury returned a one-count Indictment that alleged illegal possession of a firearm after being convicted of a felony. On June 14, 2021, Pratt plead guilty to the Indictment. Federal law prohibits possession of firearms or ammunition by convicted felons under 18 U.S.C. 922(g)(1).
Public records reflect that, on September 4, 2020, Lawton Police Department officers noticed Pratt driving a vehicle. Knowing that Pratt did not have a valid driver’s license, officers initiated a traffic stop. Pratt stopped and exited the vehicle then fled the scene on foot. Officers chased Pratt though an apartment complex, where he was eventually caught and taken into custody. Pratt also verified his status as a member of a street gang during the encounter. A loaded pistol was later found during an inventory search of Pratt’s vehicle.
Public records further reflect that Pratt had multiple prior felony convictions. These convictions in Comanche County District Court, case number CF-14-245, include using an offensive weapon during the commission of a felony, feloniously pointing a firearm at another, burglary in the first degree, and assault and battery with a dangerous weapon. He was released from Oklahoma state prison in May 2020 after serving a prison term for these felony offenses.
On February 14, 2022, Chief U.S. District Judge Timothy D. DeGiusti sentenced Pratt to serve 72 months in federal prison, followed by three years of supervised release.
This case is the result of investigations by the Federal Bureau of Investigation and the Lawton Police Department. Assistant United States Attorneys Mary E. Walters and Stanley J. West prosecuted the case.
This case is part of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Reference is made to public filings for more information.
Kilogram Cocaine Trafficker Convicted at TrialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Damian Sierra (43, Port St. Lucie) guilty of possessing 500 grams or more of cocaine with the intent to distribute it. Sierra faces a minimum mandatory penalty of 5 years, and up to 40 years, in federal prison. A sentencing date has not yet been set. Sierra had been indicted on January 20, 2022.
According to testimony and evidence presented at trial, agents conducting surveillance observed Sierra drive to a location, get out of his car with a Christmas gift bag, and meet with another person. After Sierra left the location, deputies from the Manatee County Sheriff’s Office pulled him over for a tint violation on his vehicle. Inside the car, agents recovered a Christmas gift bag containing a kilogram of cocaine wrapped in tape, personal items belonging to Sierra, and a drug ledger. At the time of the incident, the drugs found with Sierra had a wholesale value of approximately $40,000.
This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Callan L. Albritton.
Killeen Hotel to Pay Damages to Disabled Veteran with Service Dog for Denying AccessRead the Press Release
WACO – U.S. Attorney Ashley C. Hoff of the Western District of Texas announced today that the United States has reached an agreement with the owners and managers of Executive Inn & Suites, a hotel in Killeen, Texas, to resolve allegations they violated the Americans with Disabilities Act (ADA) by denying equal access to individuals with disabilities who use service dogs.
The settlement resolves allegations initially brought by a disabled veteran who utilizes a service animal and wheelchair due to an amputation of his left leg. The veteran alleged that upon learning that the veteran was accompanied by a service dog the hotel desk clerk refused to honor his reservation because the hotel owner did not allow any type of dog. Hotel staff insisted that the veteran leave, called the local police department to escort the veteran off hotel property, and refused to refund his room rental fee.
The ADA generally requires public accommodations to provide access to individuals with disabilities who use service animals. Under the ADA, public accommodations must generally modify their policies, practices or procedures – such as a no-pet policy – to permit the use of a service animal by a person with a disability. A service dog generally may go wherever the public is allowed to go, and a public accommodation may not require documentation about the service dog.
“Individuals with disabilities, including veterans who have sacrificed for our country, have a right under federal law to the equal enjoyment of public accommodations,” said U.S. Attorney Hoff. “Our office is committed to ensuring that our veterans enjoy equal access to public accommodations, such as restaurants, hotels, and shops.”
Under the agreement, J&J Executive Suites LLC, Kyung Sang Lee and Gaesun Lee will ensure that the hotel adopts and implements a service dog policy; provides training on the service dog policy to employees and managers; and posts the service dog policy at their facilities and in their advertising. They will also pay money damages to the veteran as compensation for the effects of the discrimination and the harm he endured as a result of their actions.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD) or access the ADA website at http://www.ada.gov.
Assistant U.S. Attorneys Liane Noble and Thomas Parnham represented the United States in this matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Justice Department Issues Guidance on Ballot Drop Box Accessibility Requirements Under the Americans with Disabilities ActRead the Press Release
The Justice Department announced today it has issued guidance under the Americans with Disabilities Act (ADA) on how to ensure that ballot drop boxes are accessible to voters with disabilities. The publication, “Ballot Drop Box Accessibility, the Americans with Disabilities Act,” is intended to help election officials understand the ADA’s requirements, including the physical accessibility standards applicable to ballot drop boxes, and for voters with disabilities to understand their rights under federal law.
“The right to vote is the fundamental right upon which our democracy is built,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For too long in our history, many voters with disabilities have faced barriers in exercising their voting rights. Many of these barriers continue even today, including physical barriers that prevent them from entering polling places or accessing a ballot drop box. The ADA requires election officials to select and provide accessible ballot drop box locations so that voters with disabilities can have the same voting opportunities as other voters. The Justice Department is fully committed to vigorous enforcement of the ADA to ensure that voters with disabilities no longer face discrimination in the election process.”
The publication covers the elements and features of a ballot drop box that election officials should consider meeting the ADA’s accessibility requirements. The publication discusses the requirements for an accessible route to a ballot drop box, such as a level walkway without gaps and steps. It also discusses accessibility features of a ballot drop box such as a handle or lever that can be operated with one hand and without tight grasping, pinching or twisting of the wrist. The guidance includes a checklist of the accessibility standards used to assess a ballot drop box.
The ballot drop box guidance is intended to be used together with the department’s “ADA Checklist for Polling Places,” a guidance document that discusses local governments’ obligations under the ADA to provide polling places that are physically accessible to voters with disabilities. The ADA Checklist for Polling Places covers the accessibility requirements for features that may be present at a ballot drop box location, such as parking, passenger drop off areas and building entrances.
The Ballot Drop Box Accessibility publication may be found at ADA.gov homepage; the ADA Checklist for Polling Places publication may be found at ADA Checklist for Polling Places. Those interested in learning more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at Step 1: Contact - Contact the Civil Rights Division | Department of Justice. Information about the department’s enforcement of federal civil and criminal laws related to voting may be found at Voting | Department of Justice.
Irondale Missouri man sentenced to federal prison for producing child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark sentenced Andrew Hotchkiss to 27.5 years in federal prison to be followed by a lifetime on supervised release for the production of child pornography. Hotchkiss previously pleaded guilty in November 2021.
Between the dates of March 1, 2019, and May 13, 2019, in St. Francois County, Missouri, Hotchkiss sexually abused the victim, who was six years of age at the time. Hotchkiss used his cellular telephone to video record and produce images of his sexual abuse of the victim.
Hotchkiss distributed the images and videos of his sexual abuse of the minor via the internet to others including a resident of the State of Oregon. On May 13, 2019, law enforcement officers with the Oregon State Police located the above-reference images and videos on a cellular telephone belonging to the Oregon resident who was in police custody after attempting to meet an eleven-year-old for sexual contact. It was the Oregon State Police investigation and their recovery of the images and videos produced by Hotchkiss that initiated the investigation that gave rise to the charges against Hotchkiss in this case.
This case was a joint effort between the St. Francois County Prosecuting Attorney’s Office, the Missouri State Highway Patrol, the St. Francois County Sheriff’s Office, and the Oregon State Police.
Hillsboro Man Sentenced to 120 Months in Prison for Enticement of a MinorRead the Press Release
SPRINGFIELD, Ill. – A Hillsboro, Illinois, man, Andrew Collins, 32, of the 200 Block of Main Street, was sentenced on February 14, 2022, to 120 months of imprisonment and 10 years of supervised release for enticement of a minor. The sentencing hearing was held before U.S. District Court Judge Sue E. Myerscough,
The defendant pleaded guilty on October 14, 2021. At that time, the government presented evidence that online chats between Collins and the sixteen-year-old minor indicated that Collins persuaded the minor to have sex with him by offering toy gifts, and promises of weekends together, nude massages, and permanently living together in the future.
For the offense of enticement of a minor, the statutory penalties are not less than ten years and up to life in prison, not less than five years and up to a life term of supervised release, and a fine of up to $250,000.
“We appreciate the work of law enforcement in identifying this predatory online behavior and bringing the perpetrator to justice,” said Assistant U.S. Attorney Sierra Senor-Moore, who represented the government in the matter.
Agencies participating in the investigation include the United States Secret Service and Central and Southern Illinois Financial and Cyber Crimes Task Force.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hattiesburg Felon Sentenced to over 11 Years in Prison for Possession of AmmunitionRead the Press Release
Hattiesburg, Miss. – A Hattiesburg man was sentenced today by Senior U.S. District Judge Keith Starrett to a combined total of 139 months in prison for being a felon in possession of ammunition while on federal supervised release, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The sentence also included a fine of $10,000 and a term of three years of supervised release following his release from confinement.
According to court documents, Jakobe McCray Woullard, also known as BadAzz, 21, possessed a single round of ammunition in his pocket on June 13, 2021, following an earlier federal felony conviction. Woullard had previously been convicted of being an unlawful user of a controlled substance in possession of a firearm and was on federal supervised release at the time he committed the new offense. A review of Woullard’s social media accounts showed he was also in possession of multiple firearms in the three-month period since his release from imprisonment following his original federal conviction. Woullard was also involved in an attack on another inmate while pending sentencing in the immediate case.
Woullard was sentenced to 115 months of confinement on his new offense and 24 months for violating his federal supervised release. The two terms of imprisonment are set to run consecutive to one another for a total of 139 months of confinement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case.
Assistant U.S. Attorney Andrew W. Eichner prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hartford Man Sentenced for Firearm OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ALLEN EVANS, 35, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 16 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on October 23, 2020, Hartford Police stopped a car in which Evans was a passenger. Evans was arrested after a search of his person revealed a loaded Taurus Model 85 “.38 Special” handgun, and a search of the vehicle revealed additional ammunition.
At the time of his arrest, Evans was on state probation following a conviction in 2018 for possession of a weapon in a motor vehicle.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Evans has been in custody since March 12, 2021. He pleaded guilty on September 21.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Edward Chang.
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.
Gun Trafficker Utilizing Amtrak to Move Guns up the ‘Iron Pipeline’ Sentenced to over Two Years in PrisonRead the Press Release
PHILADELPHIA –United States Attorney Jennifer Arbittier Williams announced that Junious Flemming, 29, of Trenton, NJ, was sentenced to two years and three months in prison, and three years of supervised release by United States District Judge Nitza I. Quiñones-Alejandro for trafficking 40 semi-automatic firearms from North Carolina into Philadelphia and New Jersey via Amtrak’s Philadelphia 30th Street Station.
In September 2021, the defendant pleaded guilty to charges including one count of criminal conspiracy and three counts of transporting firearms on a common carrier. From October 2020 through March 2021, on at least three separate occasions, Flemming paid for his co-conspirators to purchase firearms in North Carolina and then transport them by train to Philadelphia. Many of the semi-automatic firearms were subsequently trafficked into New Jersey by the defendant. The trafficking only stopped after federal agents executed a search warrant at 30th Street Station on March 9, 2021, discovered 10 semi-automatic firearms in the luggage of the defendant’s co-conspirator, and then arrested Flemming as he picked up his co-conspirator from the station.
“When I announced the All Hands On Deck initiative in April 2021, I vowed that our Office would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “And earlier this month, the Justice Department announced strategies to stem the flow of firearms used to commit violence and support local law enforcement partners, including cracking down on firearms trafficking and the ‘iron pipeline’ – the illegal flow of guns sold in mostly southern states, transported up the East Coast, and found at crime scenes in cities like ours. Today’s sentencing demonstrates that we are aggressively engaged in doing this work; we are keeping our word to focus on getting the most dangerous criminals and firearms off the street.”
“ATF continues to work with our local, state, and federal partners to reduce violence in our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Facilitating illicit transactions of firearms jeopardizes the safety of our citizens. These offenses will always be taken seriously and today the community is safer thanks to the outstanding work by our partners at the U.S Attorney’s Office.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated and charged by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant United States Attorney Michael R. Miller.
Greenville Man Sentenced to Prison for Gun Possession and Drug DistributionRead the Press Release
Oxford, MS – A Greenville man was sentenced on Friday to 9 years and 2 months in prison for selling illegal narcotics and for possession of a firearm in relation to a drug trafficking offense.
According to court documents, Danny Thomas, 49, of Greenville, Mississippi, was charged in two separate indictments with one count of possession of cocaine with intent to distribute and four counts of distribution of cocaine, as well as one count of possession of a firearm in relation to a drug trafficking offense and one count of possession of a firearm by a convicted felon. Thomas plead guilty to one count of possession of cocaine with intent to distribute, one count of distribution of cocaine, and to possession of a firearm in relation to a drug trafficking offense. U.S. District Court Judge Glen Davidson sentenced Thomas to a total of 110 months in prison, followed by five years of supervised release. Thomas, who was detained pending trial, was remanded into custody of the U.S. Marshals following sentencing.
This office is committed to working alongside our local, state and federal partners to see that those individuals who commit gun crimes and distribute drugs in our communities are held accountable for their actions,” stated U.S. Attorney Clay Joyner. “Today’s sentence is one more step towards making our neighborhoods safer.”
Following the sentencing, FBI Special Agent in Charge Jermicha L. Fomby commented: “Drugs are one of the driving forces of violent crime. We will not relent in our efforts to make Mississippi a safer place for all who live in or visit our great State. This sentencing should serve as a reminder that the FBI, as well as our state and local partners, will bring violent criminals to justice.”
The FBI, Greenville Police Department, and Mississippi Bureau of Narcotics investigated the case. The case was prosecuted by AUSA Robert Mims.
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.
Georgia Man Admits Making Interstate Threats Against Executive Officer of New Jersey CompanyRead the Press Release
NEWARK, N.J. – A Georgia man today admitted making interstate threats to an executive officer of a New Jersey based company, U.S. Attorney Philip R. Sellinger announced.
Alan Wallace, 59, of Cumming, Georgia, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of transmitting interstate threats.
According to the documents filed in this case and statements made in court:
From January 2021 to March 2021, Wallace, a former employee of Company-1, sent threatening email communications to Victim-1, an executive officer of Company-1, a publicly traded company with headquarters in New Jersey. Victim-1’s Company-1 email account received the emails every few days beginning on Jan. 11, 2021, and continuing through early March 2021, with more sporadic emails arriving thereafter. The emails were sent to Victim-1 from an anonymous email service.
The emails threatened violence to Victim-1 and to Victim-1’s family if Company-1’s stock did not exceed a certain share value within 30 days. An email received on Feb. 5, 2021, with the subject line “Blood Bath,” read: “[Victim-1], it seems you don't care about your family. This will be an absolute blood bath if stock isn't over $200 in 2 weeks. Your hurt [sic] so many, and now it is your turn to experience it.”
The interstate threats charge carries a maximum penalty of five years in prison a $250,000 fine. Sentencing is scheduled for June 23, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
Fruitland Man Sentenced to over 9 Years for Federal Gun CrimeRead the Press Release
BOISE – A Fruitland man was sentenced to 110 months in federal prison for unlawful possession of a firearm.
According to court records, on November 8, 2020, Israel Jacob Salinas, 38, pointed a loaded handgun at three individuals in a vehicle near his residence in Fruitland, Idaho. One of these three individuals was a minor. The victims exited their vehicle and began to run away. Salinas fired a shot in their direction, which they believed went over their heads. Salinas fled the scene, traveled to a rural location in Payette County, and buried the handgun in a canal. The firearm was eventually recovered by law enforcement.
Salinas is prohibited from possessing firearms due to a prior felony conviction for the distribution of methamphetamine. Salinas is a former gang member with a violent history, including a conviction for aiding and abetting assault resulting in serious bodily injury related to a prison stabbing.
Chief U.S. District Judge David C. Nye also ordered Salinas to serve three years of supervised release following his prison sentence. Salians pleaded guilty to the federal firearm charge on October 20, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Payette County Sheriff’s Office, Fruitland Police Department, and the Payette County Prosecuting Attorney’s Office, which led to charges.
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.
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Franklin County Man Sentenced to 210 Months’ Imprisonment for Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Damion Phillip Gress, age 25, of Franklin County, was sentenced to 210 months’ imprisonment to be followed by 10 years of supervised release by U.S. District Court Judge Jennifer P. Wilson for offenses involving the exploitation of minors.
According to United States Attorney John C. Gurganus, Gress pleaded guilty to persuading and using a minor to produce images of child pornography between August 2015 and October 2016. Gress also produced images of child pornography in July 2016 involving a second victim. Gress also received images of child pornography and possessed thousands of images of child pornography on August 12, 2019.
Judge Wilson also ordered Gress to pay restitution in the amount of $54,000 to his victims.
This case was investigated by the Federal Bureau of Investigations and the Pennsylvania State Police. Assistant United States Attorney Christian Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
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Former Pediatric Nurse Practitioner Sentenced to 15 Years Imprisonment for Distributing Child PornographyRead the Press Release
COLUMBUS, Ga. – A Preston, Georgia, resident and former pediatric nurse practitioner (NP) was sentenced to serve 15 years in federal prison after he pleaded guilty to distribution of child pornography in a case involving thousands of images and videos of child pornography.
William Clinton Storey, 42, of Preston, Georgia, was sentenced to serve 180 months in prison to be followed by ten years of supervised release by U.S. District Judge Clay Land after he previously pleaded guilty to one count distribution of child pornography. In addition, Land ordered that Storey pay $67,000 in restitution to victims. Storey will register as a sex offender for life upon his release from federal prison under the Sex Offender Registration Act. There is no parole in the federal system.
“As a pediatric nurse practitioner, William Storey was charged with promoting the health and welfare of children. Instead, he chose to prey upon our most vulnerable citizens,” said U.S. Attorney Peter D. Leary. “Holding child predators accountable is one of the highest priorities of the U.S. Attorney’s Office. We will use every resource available to bring justice to those who make, distribute and view child pornography.”
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation. We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice,” said GBI Director Vic Reynolds.
According to court documents, the multimedia messaging app Snapchat detected that user clint31824 had uploaded five files of suspected child pornography while using their platform on November 21, 2019. GBI investigated the cybertip and traced the IP used by user clint31824 to the defendant, William Storey. At the time, Storey was employed as a certified family nurse practitioner. Agents executed search warrants at Storey’s home and business on February 18, 2020, seizing seven devices belonging to Storey. A forensic examination of the electronic media seized during the search warrant discovered approximately 6,000 videos and 24,000 images of suspected child pornography. The files contained depictions of babies, small toddlers, minors engaged in bondage, and male and female prepubescent children being sexually abused by adult males.
The case was investigated by the GBI with assistance from the FBI and the Webster County Sheriff’s Office. Assistant U.S. Attorney Crawford Seals prosecuted the case.
Former Passaic County Man Admits Laundering Drug ProceedsRead the Press Release
NEWARK, N.J. – A former Passaic County, New Jersey, man today admitted his role in a large international money laundering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Gilberto Martinez, 33, formerly of Clifton, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti to a criminal information charging him with one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
In 2016 and 2017, Martinez laundered over $1 million in cash drug proceeds on behalf of a large-scale money laundering organization by purchasing, or directing others to purchase, cashier’s checks with the illegal drug proceeds. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Martinez and his conspirators tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks.
The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for June 24, 2022.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; the New Jersey State Police, under the direction of Superintendent Colonel Patrick J. Callahan; the New Jersey Office of the Attorney General, led by Acting Attorney General Matthew J. Platkin; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Member of New Bedford Latin Kings Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering charges.
Tyson Jorge, a/k/a “King Music,” 35, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately 35 days in prison). The government recommended a sentence of 21 months in prison.
On Aug. 25, 2021, Jorge pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Jorge was involved in the New Bedford Latin Kings’ racketeering conspiracy and in the gang’s drug distribution efforts throughout the New Bedford. Jorge attended gang meetings in which violence against rival gang members was discussed. In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Jorge is the 44th defendant to be sentenced in the case in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Logan County Man Pleads Guilty to Federal Wiretapping ChargeRead the Press Release
CHARLESTON, W.Va. – A former Logan County resident pleaded guilty today to a federal wiretapping charge.
According to court documents and statements made in court, Randall Dwight Holden II, 33, admitted to secretly recording a video of a woman engaged in sexually explicit conduct in her Logan County home on November 25, 2017. The video was later uploaded to the internet without the victim’s knowledge. The video was one of several secretly recorded videos that Holden had created and posted online depicting the victim.
Holden is scheduled to be sentenced on June 2, 2022 and he faces up to five years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police – Bureau of Criminal Investigations (BCI) and the Federal Bureau of Investigation (FBI).
United States District Judge Irene C. Berger presided over the hearing. Assistant U.S. Attorney Jennifer Rada Herrald 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. 2:22-cr-00006.
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Former Hawaii State Legislators Plead Guilty to Honest Services Wire FraudRead the Press Release
HONOLULU – Jamie Kalani English, 55, of Hana, Maui, and Ty J.K. Cullen, 41, of Waipahu, Hawaii, pleaded guilty today before Senior United States District Judge Susan Oki Mollway to separate Informations charging each of them, respectively, with one count of honest services wire fraud. The Informations charge that English and Cullen accepted multiple bribes in return for performing, and agreeing to perform, official legislative acts on behalf of a Hawaii businessperson. Each defendant faces maximum penalties of 20 years imprisonment and a fine of $250,000 at their sentencings, which are set before Judge Mollway on July 5, 2022.
Court documents and information provided in court detailed a series of bribes paid to English by a Hawaii businessperson, identified as “Person A” in the Information, over the course of several years. More recently, in June of 2019, English requested that Person A provide him with two hotel rooms in Las Vegas for his use while attending a concert. In return for the rooms, English later emailed Person A a draft legislative report concerning cesspools which could directly benefit Person A’s company. Also in June 2019, English asked Person A to “host” English and his family at a local Honolulu restaurant for dinner. Person A told English he could not attend, but provided $500 to English for the dinner, which English accepted.
In January 2020, English introduced into law a Senate bill involving cesspools that could directly benefit Person A’s company. In return, Person A paid English $1,000. On March 11, 2020, Person A met with English and offered him $10,000 in cash to kill the cesspool bill. English accepted the $10,000 stating “it’s easy to kill bills.” Due to the Covid 19 pandemic, the bill did not advance.
In January 2021, English accepted another $5,000 from Person A in return for anticipated legislative assistance to Person A. During a subsequent law enforcement traffic stop, English hid the $5,000 under the vehicle’s floor mat.
Similarly, court documents and information provided in court detailed a series of bribes paid to Cullen over the course of several years by an individual also identified as “Person A” in the Information pertaining to Cullen. Cullen initially accepted casino chips in New Orleans from Person A and later supported legislation that would benefit Person A’s company. More recently, in September of 2019, Cullen accepted $5,000 from Person A for anticipated legislative assistance that would benefit Person A’s company. Cullen subsequently accepted payments in the amounts of $3,000 in December 2019, $5,000 in January 2020, and then $10,000 on March 10, 2020, $2,000 in June 2021 and $5,000 in October 2021. The payments Person A made to Cullen were for the purpose of influencing Cullen to support or manipulate legislation that would benefit Person A’s company.
On their annual mandatory gift disclosure reports, English and Cullen failed to report any of the bribes and gifts paid and given to him by Person A. As a part of their official gift disclosure submissions, English and Cullen emailed this false and misleading disclosure form, thereby using interstate commerce.
The investigation in the case was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Ken Sorenson, Micah Smith and Michael Albanese of the District of Hawaii are prosecuting the case.
Former CFO of Boston Grand Prix Sentenced to Four Years in Prison for Fraud and Tax Schemes that Netted Almost $2 MillionRead the Press Release
BOSTON – The former Chief Financial Officer (CFO) of the Boston Grand Prix was sentenced today in federal court in Boston in connection with multiple schemes to defraud equipment and small business financing companies as well as the Small Business Administration (SBA) and the Internal Revenue Service.
John F. Casey, 58, formerly of Ipswich, was sentenced by U.S. District Court Judge Allison D. Burroughs to four years in prison and three years of supervised release. Casey was also ordered to pay $1,998,097 in restitution and ordered to forfeit $1,570,399. On Oct. 21, 2021, Casey pleaded guilty to 23 counts of wire fraud, three counts of aggravated identity theft, four counts of money laundering and three counts of filing false tax returns.
Casey became the CFO of the Boston Grand Prix in January 2015. The Boston Grand Prix organization made payments to, or on behalf of, Casey totaling approximately $308,292 in 2015 and $601,073 in 2016 which Casey failed to include in the gross income he claimed on his personal tax returns for those years.
Casey also owned an ice rink in Peabody from October 2013 until he sold it in June 2016. Between October 2014 and October 2016, Casey obtained over $743,000 in funds from equipment financing companies, purportedly for the purchase of equipment for the ice rink, when in fact he no longer owned the rink for four months during this period. In addition, in August 2016, more than two months after he sold the Peabody rink, Casey obtained over $145,000 in small business loans for the rink business. In order to secure the financing, Casey submitted false documents and information including fake invoices for the equipment, bank records purporting to show deposits into Casey’s accounts related to the Peabody rink, inflated personal and corporate tax returns and personal financial statements falsely claiming ownership and value of various assets. Casey also submitted a fake Deed of Sale containing a forged signature in support of one of his loan applications. Relying on Casey’s false statements, the financing companies provided funding to Casey in amounts and on terms they otherwise would not have made. Most of the funds provided by the victim companies were never repaid.
In addition, between March 2020 and at least May 2021, Casey orchestrated a scheme to fraudulently obtain Economic Injury Disaster Loans and Paycheck Protection Program loans from the SBA and a Massachusetts Sector-Specific Relief Grant – available under the Coronavirus Aid, Relief, and Economic Security Act – by submitting false applications for companies he created and controlled and by improperly using the fraudulently obtained loan and grant funds for personal expenses. Specifically, Casey submitted at least 14 loan applications to the SBA and intermediary lenders which contained false information concerning, among other things, the gross revenues of the companies during the year prior to the COVID-19 pandemic, the average monthly payroll of the companies and the existence of some of the companies.
In the course of his pandemic assistance fraud, Casey stole the identities of two women and used their personal identifying information to file fraudulent applications. Finally, in January 2021, while awaiting trial for the financing fraud scheme, Casey submitted an application for a $70,000 pandemic-related relief grant to the Massachusetts Growth Capital Corporation containing false information about the operating expenses of a company that was not in business in 2019 or 2020. Between April 2020 and April 2021, approximately $676,552 in COVID-19 relief funds was deposited into bank accounts controlled by Casey, and he used the vast majority of the funds for personal expenses, including a three-carat diamond ring which was ordered forfeited, a six-month membership to Match.com, private school tuition, residential rent payments, living expenses, payments on personal credit card accounts, restaurant meals, car payments and luxury hotel stays.
Casey also laundered the proceeds of his fraud schemes and failed to include the income from the Peabody rink fraud scheme on his 2014, 2015 and 2016 personal federal tax returns.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Rollins’ Public Corruption & Special Prosecutions Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Florida Man Sentenced to Five Years for Soliciting Child PornographyRead the Press Release
PORTLAND, Maine: A Florida man was sentenced today in U.S. District Court in Portland for soliciting child pornography, U.S. Attorney Darcie N. McElwee announced.
Chief U.S. District Judge Jon D. Levy sentenced Cameron Eagle, 35, of Stuart, Florida, to five years in prison and five years of supervised release. Eagle pleaded guilty in September 2021.
According to court records, on May 9, 2020, while in Florida, Eagle used Cash App, a direct peer-to-peer payment system for mobile devices, to pay a female child in Maine to engage in sexually explicit conduct while he watched via livestream over the chat website Omegle. The child, who resided in Cumberland County, was 14 years old at the time. Financial records reflect that Eagle made several payments to the child on that date, and that he made other similar payments in small denominations to other Cash App accounts on the same day, as well as on other dates in May and June 2020.
The Cumberland County Sheriff’s Office, the Martin County (Florida) Sheriff’s Office and Homeland Security Investigations investigated the case, with assistance from the Fort Pierce office of the U.S. Attorney’s Office for the Southern District of Florida.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Florida Man Admits Role in $35 Million Pharmacy Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – A Palm City, Florida, man today admitted participating in a compounded medication kickback scheme that he and others ran out of a pharmacy in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Anderson Triggs, 42, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
From 2014 through 2016, Triggs and his conspirators used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, New Jersey, to run a kickback scheme involving compounded drugs like scar creams, pain creams, migraine mediation, and vitamins. Compounded drugs are prescribed by a physician when an FDA-approved drug did not meet the health needs of a particular patient, such as when a dye or preservative triggers an allergic reaction, or when a patient can’t swallow an FDA-approved pill.
Triggs started as a consultant to Main Avenue Pharmacy and later became a board member of its corporate parent. The scheme revolved around identifying compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers.
The physicians who signed prescriptions for compounded medications that were filled at Main Avenue frequently had never even spoken to the patients or examined them. Once the prescriptions were signed by a doctor, they would be returned to the marketing company, which would transmit the prescription to Main Avenue Pharmacy, which would fill them and submit claims to health care benefit programs for reimbursement
On compounded medications alone, Main Avenue received over $34 million in reimbursements from health care benefit programs, approximately $8 million of which was paid by federal payers. Triggs earned over $900,000 through the course of the scheme.
The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 21, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the charges.
The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.
Final defendant in $10 million tobacco tax evasion scheme sentenced to prisonRead the Press Release
Seattle – The final player in a scheme to cheat Washington State out of more than $10 million in tobacco excise taxes was sentenced today in U.S. District Court in Seattle to 22 months in prison announced U.S. Attorney Nick Brown. Tae Young Kim, 45, of Las Vegas, Nevada, was the registered owner of TK Mac, a company that owned and operated two smoke shops in Federal Way and Lynnwood, Washington. Together with Hyung Il Kwon, 48, of Henderson, Nevada, Kim devised fraudulent schemes to evade tobacco excise taxes, and Kim filed a false corporate tax return. In January 2019, Kim pleaded guilty to one count of wire fraud and one count of filing a false tax return. At the sentencing hearing, U.S. District Judge James L. Robart said, “People need to understand this is a crime and it will be punished.”
“This scheme to cheat on state taxes lasted for years and robbed the people of millions in funding for state programs,” said U.S. Attorney Nick Brown. “The coconspirators used false documents to conceal their actions from regulators and law enforcement. Their deceit did more than cut their taxes, they obtained a competitive advantage over other tobacco retailers.”
According to records filed in the case, between 2009 and 2017, Kim, Kwon, and their coconspirators engaged in two schemes to defraud the state of tobacco excise taxes. The schemes involved two tribal smoke shops on the Puyallup reservation which sold significant quantities of tobacco products to TK Mac, the non-tribal tobacco distributor. Most of the sales were in cash, and TK Mac failed to report the purchases to the state, thus avoiding millions of dollars in excise taxes. When TK Mac then resold the products for cash, the company had a problem, since large deposits of cash would have triggered state scrutiny of its tobacco business. So, beginning in 2013 and continuing until 2017, Kim and his coconspirators engaged in a money-laundering scheme: the two tribal smoke shops wrote checks to TK Mac as if the tribal smoke shops had purchased tobacco products from the non-tribal store. In fact, TK Mac simply provided the tribal smoke shops with large amounts of cash equal to the checks. The purported transactions were a sham. In fact, no tobacco products changed hands, but TK Mac received an excise tax credit. As a result of these schemes, Washington State suffered losses of more than $10 million.
The president of the company that owns the tribal smoke shops, Anthony Edwin Paul, was sentenced in December 2021 to 14 months in prison, a $5,000 fine, and $1,764,818 in restitution. Paul’s subordinate, Theodore Kai Silva, who operated the scheme on behalf of the tribal smoke shops, was sentenced to four years of probation with six months of home confinement, plus $25,000 in restitution. Kim’s coconspirator and business partner Kwon was sentenced last month to 26 months in prison, a $10,000 fine and $5,098,249 in restitution to the Washington State Department of Revenue.
The government seized more than $5 million in assets and cash from Kwon and Kim. Today, Judge Robart ordered Kim to pay $4,339,407 in restitution to the Washington State Department of Revenue.
The case was investigated by IRS-CI, with assistance from Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys Jim Oesterle and Jonas Lerman