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Tuesday 14 December 2021
Albuquerque tax preparer pleads guilty to preparing fraudulent returnsRead the Press Release
ALBUQUERQUE, N.M. – Solomon Gbara, 47, of Albuquerque, pleaded guilty on Dec. 13 in federal court to aiding and assisting in the preparation and presentation of false and fraudulent income tax returns. A federal grand jury indicted Gbara on March 12.
According to the indictment and other court records, from February 2015 through May 2020, Gbara, who owned and operated Express Tax SG, assisted in the preparation and presentation of individual income tax returns (IRS Form 1040) that included claims Gbara knew were false. These misrepresentations included claims for dependents and Schedule C businesses to which the taxpayers were not entitled under the provisions of internal revenue laws. Gbara also admitted to showing clients tax returns with certain expected refunds, then filed returns with higher refunds and pocketed the difference.
The fraudulent returns filed by Gbara represented a total loss of over $90,000 in tax revenues. Gbara faces up to three years in prison for each count. A sentencing date has not been scheduled.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Monday 13 December 2021
Zachary A. Cunha Sworn in as U.S. Attorney for the District of Rhode IslandRead the Press Release
PROVIDENCE, R.I. – The U.S. Attorney’s Office announces that Zachary A. Cunha took the oath of office today to become the United States Attorney for the District of Rhode Island. U.S. District Court Chief Judge John J. McConnell, Jr., administered the oath in U.S. District Court in a brief ceremony attended by members of Mr. Cunha’s family, in the presence of the Honorable William E. Smith and Mary S. McElroy, United States District Judges, and the Honorable Patricia M. Sullivan, United States Magistrate Judge.
At the recommendation of United State Senators Jack Reed and Sheldon Whitehouse, Mr. Cunha was nominated by President Joseph R. Biden, Jr., on September 28, 2021, and confirmed by the United States Senate on December 7, 2021. United States Attorney Cunha serves as the chief federal law enforcement officer for Rhode Island.
“I am deeply humbled, and profoundly honored at the opportunity to lead the extraordinary women and men of this Office as we continue its long and proud tradition of seeking justice on behalf of each and every one of our fellow residents in the Ocean State,” said Cunha. “I look forward to working closely with our partners in federal, state, and local law enforcement, as well as with communities and community leaders across Rhode Island, to maximize our impact on public safety and defend the public interest.”
A lawyer for two decades, United States Attorney Cunha has spent the bulk of his career with the Department of Justice, serving in three United States Attorney’s Offices: the District of Rhode Island, the District of Massachusetts, and the Eastern District of New York, where he was first appointed as an Assistant United States Attorney in 2005.
As an Assistant U.S. Attorney, Mr. Cunha handled and supervised an array of nationally significant civil and criminal cases, notably in the area of health care fraud and white collar fraud. In 2010, he was recognized with the Attorney General’s Award for Exceptional Service, the highest honor conferred by the Department of Justice, for his work on the prosecution team handling a series of related investigations of Pfizer Pharmaceutical. Those investigations resulted in a recovery of $2.3 billion dollars, representing the largest civil and criminal healthcare fraud recovery made by the United States as of that time.
Before joining the Justice Department, Mr. Cunha began his legal career on September 10, 2001, when he was sworn in as an Assistant Corporation Counsel for the City of New York.
Mr. Cunha received his Bachelor of Arts, with honors, from Brown University in 1998, and his Juris Doctorate, also with honors, from the George Washington University Law School in 2001.
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Worcester Man Sentenced for Wire Fraud and Tax OffensesRead the Press Release
BOSTON – A Worcester man was sentenced today for federal tax and fraud charges arising from his role in overseeing various Worcester-based employment agencies.
Tam Vuong, 46, was sentenced by U.S. District Court Judge Timothy S. Hillman to 25 months in prison and three years of supervised release. Vuong was also ordered to pay restitution and forfeiture in amounts to be determined at a later date. On Aug. 5, 2021, Vuong pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes.
Vuong oversaw Prime Labor LLC and UT Services, Inc., which were employment agencies based in Worcester. Each agency paid a few employees by check but paid most employees in cash. Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in tax filings and insurance audits. Vuong concealed millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, more than $30 million in Prime Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.
In addition, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.
Vuong shifted operations from Prime Labor to UT Services after federal search warrants were executed in November 2017. Vuong took steps to hide his role with both Prime Labor and UT Services.
In January 2021, Julio Lopez, a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is currently scheduled to be sentenced on Dec. 15, 2021. Linda Le, a former employee of UT Services, was sentenced in May 2021 to two years of probation after pleading guilty to perjury for giving false testimony before a federal grand jury.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division and Assistant U.S. Attorney Adam Deitch, of Mendell’s Criminal Division, prosecuted the case.
Waterbury to Ensure that Polling Stations are Accessible to People with Mobility DisabilitiesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement with the City of Waterbury to ensure that people with disabilities can physically access polling locations.
This settlement agreement resolves a complaint filed with the U.S. Department of Justice stating that the City of Waterbury was using polling sites that were inaccessible to people with disabilities. After receiving the complaint, the Justice Department’s Civil Rights Division and Connecticut’s U.S. Attorney’s Office spoke with city officials and people with disabilities, surveyed polling locations, and reviewed information provided by the city. The investigation determined that certain polling locations in Waterbury did not fully comply with the Americans with Disabilities Act requirements, including excessively sloped parking areas, narrow doorways, steep ramps, and inaccessible door hardware. These noncompliant features rendered the city’s voting program inaccessible to voters with certain disabilities.
“Every voter has a fundamental right to vote in person at his or her local polling place, and this settlement agreement protects this right by ensuring voting access to Waterbury’s polling places to individuals with mobility disabilities,” Acting U.S. Attorney Boyle said.
Acting U.S. Attorney Boyle noted that the City of Waterbury cooperated in the investigation and voluntarily entered into the agreement. The city has already made improvements to bring the polling locations into compliance, and the agreement is effective for two years during which time the U.S. Attorney’s Office will monitor the city’s compliance.
This matter was handled by Assistant U.S. Attorney William M Brown, Jr., of the U.S. Attorney’s Office, District of Connecticut, and Senior Trial Attorney Elizabeth Johnson, of the U.S. Department of Justice, Civil Rights Division, Disability Rights Section.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. A copy of the settlement agreement will be found on www.ada.gov.
Wake County Man Sentenced to 6 Years in Federal Prison for Possessing Stolen Firearms as a FelonRead the Press Release
RALEIGH, N.C. – A Wake County man was sentenced today to 72 months in prison for possessing several stolen firearms as a felon. On October 4, 2021, Robert Cleveland Barham pled guilty to the charges.
According to court documents and other information presented in court, Barham, 30, possessed fourteen firearms that had been stolen from a self-storage unit in Wendell, North Carolina in January 2019. When he was arrested, Barham admitted to trading several of the firearms for heroin in Henderson, North Carolina. Barham had previously been convicted of felony breaking and entering and possessing a firearm as a felon in 2014. Barham was also convicted of felony breaking and entering, felony larceny and obtaining property by false pretenses in 2018.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wake County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00021-D.
Virginia Business Owner Charged with $1.5 Million Employment Tax FraudRead the Press Release
A federal grand jury in Roanoke, Virginia, returned an indictment on Thursday charging a Virginia man with employment tax fraud.
According to the indictment, Richard E. Moore, of Augusta County, was the executive vice president and part owner of Nexus Services Inc. (Nexus), a Verona-based company that offers bond securitization and other services to immigrants detained by U.S. Immigration and Customs Enforcement. As executive vice president, Moore allegedly directed the company’s day-to-day management and was responsible for paying employment taxes to the IRS that Nexus withheld from its employees’ wages. For various tax periods between the first quarter of 2015 and fourth quarter of 2020, Moore allegedly did not pay the IRS a total of more than $1.5 million in payroll taxes that had been withheld from Nexus employees’ paychecks.
Moore is charged with 10 counts of willfully failing to pay employment taxes. His initial court appearance is scheduled for a later date before U.S. Magistrate Judge Joel Hoppe of the U.S. District Court for the Western District of Virginia. If convicted, Moore faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Alexander Effendi of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tillamook Man Sentenced to Federal Prison for Stealing 15 Firearms from Sporting Goods StoreRead the Press Release
PORTLAND, Ore.—A Tillamook, Oregon man was sentenced to federal prison today for stealing 15 firearms from a sporting goods store in Tillamook while on post-prison supervision.
Robert Jon Gilliam, 52, was sentenced to 60 months in federal prison and three years’ supervised release. Gilliam was also ordered to pay $8,892 in restitution the insurance company who covered the sporting goods store’s losses.
According to court documents, in the early morning hours of May 8, 2020, Tillamook Police Department officers responded to a burglary at Tillamook Sporting Goods, a federal firearm licensee. A male caller saw a male run from the store, get into a green Subaru driven by a female, and drive away. A short time later, the female drove back into the parking lot and parked, but the male passenger was not in the care. The caller then watched as the male ran from the front of the store, again jumped into the vehicle, and drove away.
On scene, police found the front glass doors of the store and several glass firearm display cases inside the store shattered. Officers observed blood near the broken glass and collected it for analysis. The store’s surveillance video was not operable during the time of the burglary and the store’s alarm was not triggered until police were in the building.
On June 4, 2020, Washington County Sheriff’s Office deputies recovered one of the stolen firearms while executing a search warrant. Three days, later, on June 7, 2020, investigators executed a search warrant on Gilliam’s Tillamook residence. Officers observed a green Subaru parked outside with dried blood on the inside of the front passenger door and on the car’s exterior. Investigators submitted the blood sample from the store to the Oregon State Police Crime Lab. Forensic scientists matched the sample to a known blood sample taken from Gilliam.
On October 6, 2020, a federal grand jury in Portland returned a two-count indictment charging Gilliam with stealing firearms from a federal firearms licensee and illegally possessing a firearm as a convicted felon. On July 2, 2021, Gilliam pleaded guilty to both charges.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Tillamook Police Department, Washington County Sheriff’s Office, and Oregon State Police. Assistant U.S. Attorney Leah K. Bolstad prosecuted the case.
Texas man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Leonard Jasmine, of Houston, Texas, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Jasmine, 30, pleaded guilty today to one count of “Conspiracy to Distribute Controlled Substances.” Jasmine admitted to working with others to distribute methamphetamine, cocaine base, cocaine hydrochloride, and fentanyl from the spring of 2018 to October 2020 in Monongalia County and elsewhere.
Jasmine faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
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.
U.S. Magistrate Judge Michael John Aloi presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Texas Man Sentenced to Federal Prison for Assaulting Deputy U.S. Marshal with Hammer During Portland ProtestsRead the Press Release
PORTLAND, Ore.—A Texas man was sentenced to federal prison today for assaulting a Deputy U.S. Marshal with a construction hammer during a July 2020 protest in Downtown Portland.
Jacob Michael Gaines, 24, was sentenced to 46 months in federal prison and three years’ supervised release.
“Mr. Gaines’ actions in July 2020 were intentional, dangerous, and could have severely injured or killed the Deputy U.S. Marshal who confronted him. His assault on a federal officer justifies the lengthy prison sentence imposed today,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
According to court documents, at approximately 1:00am on July 11, 2020, Gaines was observed using a hammer to break through a barricaded entrance at the Hatfield Federal Courthouse. At the time, federal law enforcement personnel were staged inside the courthouse to protect the facility and respond to incidents. After Gaines drove a hole through the plywood barrier, Deputy U.S. Marshals exited the door to prevent him from trespassing into the closed building.
As the marshals were exiting the barricaded door, Gaines struck a Deputy U.S. Marshal three times with the hammer. The deputy deflected the blows to prevent serious injury, but in process was struck in the left shoulder, lower neck, and upper back. While being struck, the deputy managed to hold onto Gaines while other officers handcuffed him and placed him under arrest.
On July 12, 2020, Gaines was charged by criminal complaint with one count of assaulting a federal officer with a deadly weapon. Later, on July 16, 2020, a federal grand jury in Portland indicted Gaines on the same charge. Gaines has been held in custody since his arrest the night of the incident. On September 8, 2021, he pleaded guilty to the single charge.
Acting U.S. Attorney Asphaug made the announcement.
The case was investigated by the U.S. Marshals Service and Federal Protective Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Courthouse barricade with hole from Gaines' hammer strikes Gaines outside courthouse barricade with hammer in right hand Deputy US Marshal approaching Gaines 4lb Dewalt construction hammer seized from GainesTexas Automobile Dealer and Former U.S. Military Soldiers and Purported Former IDF Member Charged in Kidnapping ConspiracyRead the Press Release
NASHVILLE – A federal indictment unsealed today charges three Texas men and one North Carolina man with a kidnapping conspiracy which resulted in the murder of two individuals on March 12, 2020, in Nashville, Tennessee.
In making the announcement, Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee, Douglas M. Korneski, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation, and Metropolitan Nashville Police Chief John Drake commended the tremendous collaborative efforts of the agents, detectives, and prosecutors which led to the indictment.
The three-count indictment charges the following individuals with conspiracy to commit kidnapping, kidnapping resulting in death, and carrying, brandishing, and discharging a firearm during and in relation to a crime of violence:
Erik Charles Maund, 46, of Austin, Texas, a partner in Maund Automotive Group in Austin, Texas; Gilad Peled, 47, of Austin, Texas, who held himself out to be a former member of the Israeli Defense Forces and owner of Speartip Security in Austin, Texas; Bryon Brockway, 46, of Austin, Texas, a former active-duty United States Marine who previously served in Force Recon, a Special Operations Capable unit, and owner of Ink Force LLC, also a security company in Austin; and Adam Carey, 30, of Richlands, North Carolina, a former active duty United States Marine who had previously served in the Marine Corps’ Special Operations Group.
According to the indictment, Maund sometimes travelled to Nashville to visit a relative and in early February 2020, he emailed a woman (H.W.) with whom he had had a prior relationship, for the purpose of seeing her during his upcoming visit to Nashville on February 5-7.
After his visit to Nashville, on March 1, 2020, Maund received a series of text messages from an individual (W.L.) who had a personal romantic relationship with H.W. W.L. demanded payment from Maund and threatened to expose his relationship with H.W. if he did not receive it. Maund then enlisted the services of Peled, Brockway and Carey to assist with dealing with the threats to expose his relationship with H.W. and the extortion demands.
The indictment further alleges that on March 5, 2020, Maund withdrew $15,000 from his bank account and on that same day an “intelligence report” was prepared and provided to Peled by a relative of Brockway who worked for an internet-based security company.
A series of actions were then undertaken by Carey and others, including travelling from out of state to Nashville to surveil H.W. and W.L. and creating and using a Pinger account to attempt to communicate with H.W. and L.W. On March 9, 2020, Peled received a document entitled “Tennessee Sitrep,” which stated that Carey and others had surveilled H.W.; confirmed her address and vehicle; confirmed that W.L. had been staying at the same address; and advised that Carey and others would use everything at their disposal to stop the attempted extortion of Maund.
On March 11, 2020, Peled deposited $8,000 in cash into Speartip Security’s business account and $7,000 in cash into his personal bank account. The following day, Maund transferred $150,000, via wire, from his bank account to a bank account controlled by Peled. On that same day, Brockway and Carey, while armed with firearms, confronted H.W. and W.L. in the parking lot of H.W.’s apartment complex in Nashville and murdered W.L. by shooting him multiple times. They then kidnapped H.W. and drove her and the body of W.L. to a construction site on Old Hickory Boulevard in Nashville, where they murdered H.W. by shooting her several times. The bodies were then discarded at the construction site and within hours of the murders, the Pinger account used to communicate was deleted and a rental car rented by Brockway was returned.
Carey then drove Brockway to Memphis, Tennessee, and Brockway caught a flight to Austin, Texas. Carey then drove to Austin from Memphis.
The indictment also alleges that between March 11, 2020, and the present, Maund transferred in excess of $750,000, via wire, from his bank account to an account controlled by Peled, as payment to Peled, Brockway, and Carey for the kidnapping and murder of H.W. and W.L.
On Friday, FBI agents and Metro Nashville Police detectives orchestrated the arrests of all four individuals across several states. Erik Maund was arrested after a traffic stop near Austin, Texas; Gilad Peled was arrested at the airport in Austin, Texas; Bryon Brockway was arrested in San Diego, California; and Adam Carey was arrested at his home in North Carolina.
All will make an initial appearance before a U.S. Magistrate Judge in the District where they were arrested and will be returned to the Middle District of Tennessee at a later date for further proceedings.
If convicted, the defendants face up to life in prison.
In addition to the Memphis FBI Field Office and the Metropolitan Nashville Police Department, investigative and arrest assistance was provided by FBI Field Offices in Charlotte, North Carolina; San Diego, California; San Antonio, Texas; the FBI Critical Incident Response Group; the Naval Criminal Investigative Service; the Texas Department of Public Safety; the Austin, Texas Police Department; the Williamson County, Texas Sheriff’s Department; the Onslow County Sheriff’s Office and the New Hanover County Sheriff’s Office in North Carolina; and the Jacksonville, North Carolina Police Department. Assistant U.S. Attorney Robert McGuire of the Middle District of Tennessee is prosecuting the case with the assistance of Assistant U.S. Attorneys Bryan Stephany of the Eastern District of North Carolina; Matt Harding of the Western District of Texas; and Derek Ko of the Southern District of California.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Tampa Men Sentenced for Fraud and Identity Theft in COVID Benefits ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Kary Stevenson (47) and Corey Quinn (35), both of Tampa, for conspiracy to commit access device fraud and aggravated identity theft related to COVID unemployment insurance benefits. Stevenson was sentenced to 5 years and 10 months in federal prison and Quinn was sentenced to 7 years in federal prison. As part of their sentence, the court also ordered Stevenson and Quinn to pay $87,046 in restitution to the various state workforce agencies they defrauded.
Stevenson and Quinn had pleaded guilty on September 21, 2021.
According to court documents, from approximately May 2020 and continuing until August 12, 2020, Stevenson and Quinn obtained the personal identifying information of others and used that information to submit, or cause the submission of, false and fraudulent unemployment insurance (UI) claims to various state workforce agencies, in order to obtain UI benefits to which they were not entitled. These UI benefits were then transferred to bank accounts or loaded onto debits cards issued in the names of other persons. Stevenson and Quinn then used, or attempted to use, the fraudulently obtained debit cards to withdraw money from ATMs and to purchase items from retail establishments. The U.S. Department of Labor determined that Stevenson and Quinn submitted fraudulent UI claims seeking a total of over $1,000,000, but they only obtained $87,046 before they were caught.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
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.
This case was investigated by the Department of Labor Office of Inspector General, the United States Secret Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Gregory D. Pizzo and John Cannizzaro.
Several sentenced in $50M pump-and-dump schemeRead the Press Release
HOUSTON – All seven defendants charged in relation to a more than $50 million securities fraud “pump-and-dump” scheme have received their final sentences, announced Acting U.S. Attorney Jennifer B. Lowery.
Carolyn Price Austin, 67, Houston, pleaded guilty as did Andrew Ian Farmer, 43, Thomas Galen Massey, 51, Eddie Douglas Austin Jr., 71, and Charles Earl Grob, 41, all also of Houston; John David Brotherton, 62, League City; and Scott Russell Sieck, 62, Winter Park, Florida.
Today, U.S. District Judge Vanessa Gilmore sentenced her to 12 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court noted the large sum of money lost by the victims in the case and that there were “some people that lost all their money.”
Previously, Judge Gilmore ordered Farmer to serve a sentence of 72 months. Brotherton, Grob and Massey were ordered to serve 60 months, 12 months and three years of probation, respectively, while Eddie Austin and Sieck both were ordered to serve 36-month terms of imprisonment.
All seven must also pay restitution the victims of their scheme. Farmer and Sieck were each ordered to pay $8 million, while Eddie Austin must pay $6.6 million. The court ordered Grob and Massey to pay $4.5 and $1 million, respectively while Brotherton must pay $6.2 million. The court held open the amount of restitution Carolyn Austin will be required to pay to enable the parties to submit an agreed upon amount.
Farmer, Eddie Austin, Sieck, Brotherton and Grob were further ordered to forfeit additional funds to the United States in amounts ranging from $242,907 to $6 million.
The defendants admitted to their involvement in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, they obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.
Farmer and Brotherton are in custody serving their sentence at a U.S. Bureau of Prisons facility. Eddie Austin, Carolyn Austin and Sieck were permitted to remain on bond and voluntarily surrender at a later date. Grob has completed his sentence and is currently on supervised release.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.
Ryan Bacon Pleads Guilty to Federal OffensesRead the Press Release
WILMINGTON, Del. – Ryan Bacon, 37, of Wilmington, pled guilty in federal court today, accepting his role in the kidnapping and killing of a New Castle County woman during the morning of June 6, 2017, and the shooting of a 6-year-old boy that same day. U.S. District Judge Leonard P. Stark accepted the plea.
According to court documents, Bacon, who also goes by “Buck 50”, pled guilty to the following offenses: (1) Conspiracy to Commit Kidnapping; (2) Discharging of a Firearm During and in Relation to a Crime of Violence; (3) Conspiracy to Commit Stalking; and (4) Stalking. As part of the plea, Bacon agreed to serve 30 years in federal prison. Bacon’s sentencing date has not yet been set.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement. The FBI’s Delaware Violent Crime Safe Streets Task Force investigated the case, along with significant assistance from the Wilmington Police Department, New Castle County Police Department, Delaware State Police, Elkton Police Department, and the Delaware Attorney General’s Office. Assistant U.S. Attorneys Maureen McCartney, Jesse S. Wenger, and Christopher L. de Barrena-Sarobe are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 18-cr-00075-1(LPS).
Ronald C. Gathe, Jr. Sworn in as United States Attorney for the Middle District of LouisianaRead the Press Release
Ronald C. Gathe, Jr. has been sworn in as the United States Attorney for the Middle District of Louisiana by District Judge Brian A. Jackson. Mr. Gathe was nominated by President Joseph R. Biden and confirmed by the United States Senate last week.
A Louisiana native and an attorney for more than two decades, Mr. Gathe is a career prosecutor. Most recently, he served as the Chief of Trials in the Office of the District Attorney for the 18th Judicial District Court. Previously, he served for 19 years as an Assistant District Attorney and Section Chief in the Office of the District Attorney for the 19th Judicial District Court where he prosecuted a wide range of criminal matters, including crimes of violence, theft, and various drug charges. Mr. Gathe also operated his private practice at the Law Offices of Ronald C. Gathe, Jr. & Associates, L.L.C., where he concentrated on general areas of law including personal injury, estate planning, and corporate matters. Mr. Gathe began his legal career as a judicial law clerk for the Honorable James Best in Iberville, West Baton Rouge, and Pointe Coupee Parishes.
Mr. Gathe received his B.S. from Xavier University of Louisiana, New Orleans, and his Juris Doctor from Southern University Law Center, Baton Rouge.
United States Attorney Ronald C. Gathe, Jr. stated, “I’m really looking forward to this part of this chapter of my life and look forward to serving the people of Louisiana.”
Providence Man Pleads Guilty in Schemes That Defrauded Home Improvement StoresRead the Press Release
PROVIDENCE, R.I. – A Providence man today admitted in federal court that he participated in a scheme that defrauded home improvement stores in Rhode Island and Massachusetts of more than $140,000, repeatedly purchasing construction tools and supplies using stolen credit and credit card information, announced United Sates Attorney Zachary A. Cunha.
Appearing before U.S. District Court Judge William E. Smith, Jose Brens, 40, pleaded guilty to an indictment charging him with conspiracy to commit access device fraud and seven counts of access device fraud.
Brens admitted to the court that he and others unlawfully obtained credit card information that was used to purchase tools and building products from at least six Home Depot and Lowes stores in Rhode Island and Massachusetts. Breen admitted that he defrauded Home Depot stores of $140,578.
According to court documents, in September 2018, a Smithfield resident contacted the Smithfield Police Department to report that his credit card information has been fraudulently used to purchase $2,100 worth of construction items and tools at a Home Depot in Smithfield. A joint investigation with the United States Secret Service determined that members of conspiracy carried out this and similar schemes in multiple stores, repeatedly making purchases of between $1,000 and $4,000, sometimes making multiple purchases on the same date.
Brens is scheduled to be sentenced by U.S. District Court Judge William E. Smith on March 17, 2022. Conspiracy to commit access device fraud and access device fraud are punishable by statutory penalties of up to 10 years in federal prison to be followed by a term of supervised release of 3 years.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Prior Federal Defendant Sentenced to More Than 34 Years After Jury TrialRead the Press Release
RALEIGH, N.C. – A Havelock man was sentenced today to 360 months in prison for conspiracy and distribution-related offenses involving over one kilogram of heroin. On June 30, 2021, Daryl Godette was convicted of all charges following a three-day jury trial.
According to court documents and other information presented in court, Daryl Lee Godette, 36, led a Havelock heroin distribution conspiracy for approximately one year from 2018 to 2019. Godette used a co-conspirator to deliver heroin, which Godette stored in a separate stash house. A search of the stash house revealed over a kilogram of heroin stored throughout, including in a child’s toy. When law enforcement approached Godette, he fled, leading them in a car chase before being apprehended.
At all relevant times, Godette was on federal supervised release for a prior federal drug conviction. He was sentenced to 57 months for the revocation of that supervised release, as well. U.S. District Judge Dever stated this was “extremely serious conduct” involving an “absolutely devastating drug.”
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Havelock Police Department, Carteret County Sheriff’s Office, and Drug Enforcement Administration investigated the case, and Assistant U.S. Attorneys Lucy Brown and John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-82-D.
Pike County Man Sentenced to 39 Months in Prison for Possession of Firearm by a Convicted FelonRead the Press Release
Jackson, Mississippi – A Pike County man was sentenced to 39 months in federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, David Lane Roberts, 32, was found in possession of a firearm by Pike County Sheriff’s Deputies when they sought to apprehend him on a Mississippi Department of Corrections warrant for probation violations.
Roberts pled guilty on September 7, 2021, to being a felon in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Clay B. Baldwin prosecuted the case.
Physician Agrees to Pay $375,000 to Resolve False Claims Act Allegations of P-Stim Device FraudRead the Press Release
Gulfport, Miss. - A Mississippi physician and his family medical practice have agreed to pay $375,000 to resolve False Claims Act allegations of P-Stim Device Fraud, announced U.S. Attorney Darren J. LaMarca.
Kevin Cooper M.D., and his family medical practice, Cooper Family Medical Center, have agreed to pay $375,000 to resolve allegations that they knowingly and improperly billed Medicare for acupuncture devices in violation of the False Claims Act (“FCA”).
The United States alleges that over a one-year period Dr. Cooper, through Cooper Family Medical Center, billed Medicare over $900,000 for non-reimbursable acupuncture devices that were not surgically implanted despite using billing codes indicating that they were. As set forth in the parties’ settlement agreement, the United States alleges that from July 2018 to August 2019, Dr. Cooper routinely presented, or caused to be presented, false claims to Medicare using CPT Code L8680 (implantable neurostimulator, pulse generator) and/or CPT Code 64555 (implantation of peripheral nerve neurostimulator electrodes, accessed through the skin), and received $179,106.72 from Medicare to which he and his clinic were not entitled.
P-Stim is an electro-acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for such acupuncture devices, nor did Dr. Cooper perform surgical implantation of these devices as he billed to Medicare. Other brand names for this device include Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
“This office will hold accountable those providers who are improperly paid for non-reimbursable acupuncture under the guise of surgically implanted neurostimulators,” said U.S. Attorney Darren LaMarca.
The FCA claims settled are allegations only, and there has been no determination of liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General.
Philadelphia Pharmacy and Its Owner Agree to Pay $1 Million to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney Jennifer Arbittier Williams announced that the owner of LAN Apothecary, Inc. (“LAN Apothecary”) in Philadelphia has agreed to pay $1,000,000 to resolve liability under the False Claims Act.
LAN Apothecary and owner-pharmacist Bachtu (“Theresa”) M. Phan will jointly pay $1,000,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2014 to June 29, 2019. These medications include, but are not limited to, Januvia, Janumet, Zetia, Tradjenta, Linzess, Advair Diskus, Namenda XR, and Dexilant. As part of the resolution with the United States, LAN Apothecary and Theresa Phan will enter into a corporate integrity agreement with the Department of Health and Human Services, Office of the Inspector General. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct quarterly third-party audits of their Medicare and Medicaid claims and drug inventory.
“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. That responsibility was allegedly abused for profit here,” said U.S. Attorney Williams. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey and Auditor George Niedzwicki.
Philadelphia Contractor Convicted at Trial of Bribing OSHA InspectorRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tony Ren, 58, of Philadelphia, Pennsylvania was convicted today at trial for bribing a public official from the Occupational Safety and Health Administration (OSHA). The charges arose from Ren’s attempts to bribe an OSHA Compliance Safety and Health Officer in order to induce him not to report safety violations at a Philadelphia construction site run by Ren, and to eliminate previous safety violations and corresponding fines.
In September 2021, the defendant was charged by Indictment with two counts of bribery. According to the Indictment, in October 2017, the OSHA official conducted an inspection of a worksite on Arch Street in response to an imminent hazard report. During the inspection, the official observed numerous violations of OSHA standards including debris in passageways, electrical issues, holes in the floor, and gas tanks with broken pressure gauges. The Indictment alleges that on two separate dates in November 2017, Ren offered $1,500 cash bribes to the OSHA official in exchange for the official falsifying the inspection results and agreeing not to report the violations so that the defendant could avoid the substantial penalties that would follow.
“OSHA inspections and standards exist for a reason: to prevent injuries and protect workers,” said U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant attempted to subvert this system of protections by bribing an official to look the other way on multiple workplace safety violations. This case should serve as a warning to all employers that our Office will investigate and prosecute fully this type of corruption.”
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Pair of Armed Carjackers Sentenced to Federal PrisonRead the Press Release
Memphis, TN – Ramone Ervin, 21, and Jaquarious Douglas, 22, have been sentenced to federal prison for carjacking and using a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on February 26, 2020, at 2:41 pm, the victim had taken her 2017 BMW 330 to Gateway Tires in Memphis for repairs. As the victim proceeded to leave, Jaquarious Douglas approached the victim's car, pointed a handgun, and told her to get out of the car. The victim got out and ran into the business.
Douglas drove off in victim’s car and Ervin followed in a black Infinity. When law enforcement arrived, they retrieved video surveillance from Gateway which showed the carjacking and captured the images of Douglas getting out of the Infinity. About an hour later, officers located both cars and a chase ensued. Ervin, who drove the Infinity, wrecked the car, and was placed into custody. Ervin admitted to his participation in the carjacking. Although Douglas evaded law enforcement during the chase while driving the victim’s BMW, he was later located and placed into custody.
On October 6, 2021, U.S. District Judge Jon P. McCalla sentenced Douglas to 130 months imprisonment to be followed by three years supervised release. Ervin was sentenced on December 10, 2021, to 125 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department – Violent Crime Unit investigated this case.
The U.S. Attorney’s Office for the Western District of Tennessee prosecuted this case on behalf of the government.
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Pain Clinic Owners Sentenced to Federal Prison for Illegal Opioid PrescribingRead the Press Release
Acting United States Attorney Richard G. Frohling announced that on December 10, 2021, Lisa Hofschulz (age: 61), formerly a licensed nurse practitioner in the state of Wisconsin, was sentenced to 20 years in federal prison, and Robert Hofschulz (age: 74) of Wauwatosa, Wisconsin, was sentenced to three years in federal prison for their involvement in a drug-trafficking conspiracy and “pill mill” operation.
Lisa Hofschulz and Robert Hofschulz were the owners and operators of Clinical Pain Consultants (“CPC”), which operated in Wauwatosa, Wisconsin. Following a 9 day trial in August 2021, a federal jury found Lisa Hofschulz guilty of unlawfully distributing Oxycodone, Methadone, and other opioids outside of a professional medical practice and not for a legitimate medical purpose. The jury also found that Lisa Hofschulz’s unlawful distribution of controlled substances resulted in the death of at least one patient. The jury found Robert Hofschulz guilty of conspiracy to distribute controlled substances and unlawful distribution of controlled substances.
The evidence presented at trial established that Lisa and Robert Hofschulz ran CPC as a “pill mill” through which they distributed millions of opioids and other controlled substances throughout 2015 and 2016. The evidence showed that Lisa Hofschulz prescribed opioids and other dangerous controlled substances to 99% of patients, each of whom paid $200 in cash per month for their prescriptions.
The evidence also established that Lisa and Robert Hofschulz distributed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including by mailing prescriptions to favored patients and prescribing to customers who were not seen by a medical provider. For at least one patient, Lisa Hofschulz’s prescriptions resulted in death. According to the trial evidence, during 2015 and 2016, Lisa Hofschulz was the number one prescriber of oxycodone and methadone in Wisconsin, as compared to all Medicaid providers.
“The opioid crisis continues to disrupt lives and cause injuries and overdose deaths throughout Wisconsin,” said Acting United States Attorney Frohling. “For many, the road to opioid addiction began with prescription drugs like the ones that CPC and the Hofschulzes willingly provided in exchange for cash. The Justice Department remains committed to holding accountable individuals who abuse their prescribing privileges to enrich themselves without regard to the damage done to their patients and their communities.”
“With nearly 100,000 Americans dying each year due to opioid overdose, medical professionals who violate their oaths to do no harm must be fully held accountable,” said John G. McGarry, Assistant Special Agent in Charge for U.S. Drug Enforcement Administration-Wisconsin. “The DEA will continue keeping Wisconsin families safe from opioids that have been diverted from legitimate medical supplies.”
The Drug Enforcement Administration investigated the case with the assistance of the Internal Revenue Service, Division of Criminal Investigations. Assistant United States Attorneys Julie F. Stewart and Laura S. Kwaterski prosecuted the case.
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Operating Partner of Oil and Gas Maintenance Business Sentenced to Prison for Wire FraudRead the Press Release
GRAND JUNCTION – The U.S. Attorney’s Office for the District of Colorado announces that Cory Thompson, age 44, of Fruita, was sentenced to 41 months in federal prison and ordered to pay over $1.9 million in restitution for wire fraud.
According to the plea agreement, Thompson entered into a business partnership with the victim to operate a company called DACK Energy Services, LLC (“DACK”), which conducted maintenance services for oil and gas companies in Colorado and surrounding areas. The defendant acted as the operating partner. In that role, Thompson was solely responsible for managing work production, hiring employees, procuring equipment, and establishing contracts. The victim, in turn, provided investment capital for the business.
From January 2014, to January 2016, the defendant submitted invoices to the victim, The invoices purportedly represented work performed by DACK. The victim relied on these invoices, believing they reflected accounts receivables and future income for DACK. However, many of these invoices were completely fabricated and did not represent any future income the company would receive. Often, the defendant had not established any business relationship with the companies identified in the fabricated invoices. In total, more than $1.4 million in fabricated invoices were presented by the defendant. Based on the false information provided by the defendant, the victim borrowed $1.25 million and invested that money into the company.
In addition to creating false invoices, the defendant funneled proceeds from the company into an account that he controlled. Thompson used these monies for his personal benefit. In addition, he ensured friends and family members were on DACK’s payroll, but these individuals performed little, if any, actual work. Instead, they would perform personal services for the defendant and his immediate family.
“In addition to losing their freedom, fraudsters convicted in Colorado often give up the property they purchase with fraudulent proceeds,” said United States Attorney Cole Finegan. “The defendant in this case has to give up trucks, jet skis, a car, an SUV, a boat, and pay nearly two million dollars in restitution, as well as serve a long time in federal custody.”
“The sentence handed down in this case rightly holds Mr. Thompson accountable for defrauding his business partner of millions of dollars that went to support a lavish lifestyle,” said FBI Special Agent in Charge Michael Schneider of the Denver Division. “Our office works diligently to seek justice for members of our community who have been impacted economically or otherwise by criminal activity. Thank you to all who were involved in ensuring the victims in this case recovered some of their losses.”
United States District Court Judge Christine M. Arguello sentenced the defendant on December 8, 2021. In addition to a term of incarceration and restitution, the Court ordered the forfeiture of numerous assets purchased using money the defendant obtained as part of his scheme, including a boat, jet skis, and several vehicles. At the conclusion of the sentencing hearing, the defendant was remanded into custody to immediately begin serving his sentence.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Jeremy Chaffin handled the prosecution and Assistant United States Attorney Elizabeth Young handled the forfeiture.
Case Number: 19-cr-00082-CMA-GPG
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Onondaga County Man Sentenced for Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Timothy B. Pease, age 32, of Kirkville, New York, was sentenced today to serve 160 months in prison for his distribution, receipt, and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his prior guilty plea, Pease admitted that from December 2019 through January of 2020, he used various online social networking applications to receive and distribute child pornography. Pease also admitted that during this time he used another social networking application, on which he posed as a teenage girl, to solicit teenage boys to produce sexually explicit images and videos of themselves, which Pease then distributed to others. Pease also admitted to possessing thousands of images and videos of child pornography at the time of his arrest on January 23, 2020.
Chief United States District Judge Glenn T. Suddaby also imposed a 20-year term of supervised release, which will start after Pease is released from prison. Pease will also be required to register as a sex offender.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case was prosecuted by Special Assistant U.S. Attorney Adrian LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Omaha Woman Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
Acting United States Attorney Jan Sharp announced that Paw Moo, age 29, of Omaha, Nebraska, was sentenced on December 10, 2021 in federal court in Omaha for trafficking in counterfeit goods. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Moo to probation for a term of three years.
In February 2021, U.S. Customs and Border Protection in Anchorage, Alaska, seized a shipment of counterfeit designer purses destined for Moo’s residence in Omaha, Nebraska. On March 23, 2021, Homeland Security Investigations (HSI), using an undercover officer, executed a controlled delivery of the seized package to Moo’s residence in Omaha. Moo accepted the package and HSI agents executed a search of her residence where numerous items with counterfeit marks were located. The items were handbags, clothes, blankets, phone cases, belts and a wallet from brands to include Louis Vuitton, Chanel, Gucci, Yves St. Laurent, Michael Kors, Coach and Nike. The total manufacturers’ suggested retail price of the seized merchandise exceeded $118,000.
Moo stated she began to sell items online from her residence in the beginning of March 2020 and began selling counterfeit items in the Fall of 2020, a timeframe that was consistent with her importation history.
This case was investigated by Homeland Security Investigations.
Ohio man sentenced to 10 years for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Giovanni Geonard Ingersoll, of Akron, Ohio, was sentenced today to 121 months of incarceration for methamphetamine distribution, United States Attorney William J. Ihlenfeld, II announced.
Ingersoll, age 29, pled guilty in July 2020 to one count of “Aiding and Abetting Distribution of Methamphetamine.” Ingersoll admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
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.
Chief U.S. District Judge Gina M. Groh presided.
Ohio man sentenced for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Victor Ramel Chancler Witcher, of Copley, Ohio, was sentenced today to five years of probation for methamphetamine distribution, United States Attorney William J. Ihlenfeld, II announced.
Witcher, age 37, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in March 2019. Witcher admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral, Grant, and Randolph Counties.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
North Attleboro Man Indicted, Arraigned on Child Pornography and Distribution of Animal Abuse Video ChargesRead the Press Release
PROVIDENCE, R.I. – A North Attleboro man indicted by a federal grand jury in Providence on charges that he accessed, possessed, received, and distributed child pornography, and distributed an animal crush video, pled not guilty today at his arraignment in U.S. District Court in Providence, announced United States Attorney Zachary A. Cunha.
Samuel Maigret, 25, pled not guilty to a six-count indictment charging him with distribution of child pornography, receipt of child pornography, possession of child pornography, access with intent to view child pornography, distribution of an animal crush video, and transfer of obscene material (the animal crush video).
According to court documents and information presented to the court, during a June 2021 court-authorized search of Maigret’s then Pawtucket residence and of a cellphone located on his person, Homeland Security Investigations agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force discovered a significant quantity of images and videos depicting adult males involved in sexual acts with infants. Additionally, a forensic review of Maigret’s digital storage devices revealed evidence that Maigret possessed and allegedly distributed a video via an online application that depicts an individual causing serious injury to a dog by using an object to penetrate the dog.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Nine Federally Charged, Arrested in Middle GA Drug Trafficking InvestigationRead the Press Release
MACON, Ga. – Nine individuals were taken into custody today and are facing federal charges from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Drug Enforcement Administration (DEA) into a group of alleged drug traffickers in Houston and Bibb Counties. An indictment is only an allegation of criminal conduct, and the defendant is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Federal arrest warrants were executed in Warner Robins, Georgia, and elsewhere, today resulting from a federal indictment returned on Nov. 16, charging the following individuals:
- Antoine Riley, 44, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of possession of a firearm by a previously convicted felon, one count of conspiracy to distribute controlled substances, one count of distribution of cocaine base, one count of possession of cocaine with intent to distribute and one count of possession of cocaine base with intent to distribute;
- Antonio Raines, 37, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances, one count of distribution of cocaine base and one count of possession of methamphetamine with intent to distribute;
- Latanya Williams, 39, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances, one count of possession of cocaine with intent to distribute and one count of possession of cocaine base with intent to distribute;
- Brittany Smith, 28, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances and one count of possession of methamphetamine with intent to distribute;
- Emanuel Ivey, 35, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances and one count of possession of cocaine with intent to distribute;
- Armard Davis, 42, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and one count of possession of methamphetamine with intent to distribute;
- Joseph Day, 48, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and one count of distribution of cocaine base;
- Desmond Griffin, 29, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and one count of distribution of cocaine base; and,
- Obie Wright, 66, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and two counts of distribution of cocaine base.
The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum of five years up to a maximum life sentence and a $250,000 fine;
The charge of possession of a firearm by a convicted felon carries a maximum ten years in prison and a $250,000 fine;
The charges of conspiracy to distribute controlled substances and possession of methamphetamine each carry a mandatory minimum sentence of ten years up to a maximum life sentence and a $10,000,000 fine;
The charge of distribution of cocaine base carries a maximum sentence of twenty years and a $1,000,000 fine; and,
The charges of possession of cocaine with intent to distribute and possession of cocaine base with intent to distribute each carry a mandatory minimum sentence of five years up to a maximum sentence of 40 years and a $5,000,000 fine.
Initial appearances for the defendants occurred today before U.S. Magistrate Judge Charles H. Weigle.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), United States Marshals Service (USMS), the Monroe County Sherriff’s Office, the Bibb County Sherriff’s Office, and the Warner Robins Police Department.
Assistant U.S. Attorney Alex Kalim is prosecuting the case.
- Antoine Riley, 44, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of possession of a firearm by a previously convicted felon, one count of conspiracy to distribute controlled substances, one count of distribution of cocaine base, one count of possession of cocaine with intent to distribute and one count of possession of cocaine base with intent to distribute;
New York Man Pleads Guilty to Multi-Drug ConspiracyRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to his role in a drug distribution conspiracy involving heroin, fentanyl and cocaine.
Wilkin Cedano, 37, of Brooklyn, N.Y., pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, cocaine and 40 grams or more of fentanyl. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 31, 2022. Cedano was charged on Nov. 16, 2021.
From approximately November 2019 through December 2019, Cedano conspired with others to transport fentanyl and 1,000 pills containing controlled substances from New York to Lynn, Mass., for sale to a cooperating witness. On Dec. 2, 2019, Cedano met with the cooperating witness in the parking lot of a Market Basket in Lynn and presented two packages of fentanyl wrapped in cellophane and two pill bottles. Cedano was subsequently arrested. A search of Cedano’s car resulted in the recovery of a plastic bag tucked beneath the steering column that contained additional controlled substances. In total, 938 pills were recovered containing fentanyl, or a mixture of heroin and fentanyl.
The charge of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl and cocaine provides a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Lynn Police Department provided valuable assistance in the investigation of this case. Assistant U.S. Attorney Samuel R. Feldman of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
New Jersey Man Sentenced to 12 Years in Prison for Promoting Tax Fraud SchemeRead the Press Release
A New Jersey mortgage underwriter was sentenced today to 12 years in prison for helping others file false tax returns claiming large refunds from the IRS, obstructing the IRS’s efforts to recover those illegal refunds and failing to file a tax return.
John Barry Jr., of Pemberton, was convicted by a jury on July 23 of conspiring to defraud the IRS, aiding and assisting the preparation of false tax returns, obstructing the IRS and failing to file a tax return. According to court documents and testimony, in 2015 and 2016, Barry conspired with individuals in Georgia, North Carolina, Virginia and New York to promote a “mortgage recovery” tax fraud scheme in which Barry and his co-conspirators obtained tax refunds for their clients based on fraudulent tax returns. Barry and his co-conspirators told the clients they could extinguish their outstanding mortgage debts by filing forms with the IRS claiming a large amount of taxes had been withheld. Those withholding claims, which Barry and his co-conspirators knew were false, caused the IRS to issue a total of more than $4 million in refunds to the clients. Barry typically charged each client a fee of between 20% to 35% of the refund the client obtained, and then he split those fees with some of his co-conspirators.
In addition to his role in the “mortgage recovery scheme,” Barry did not file his own 2016 return despite earning income in excess of the filing threshold, and he did not report or pay taxes on the income generated from the scheme in that tax year.
When the IRS discovered the fraud and attempted to recover the wrongfully paid refunds, Barry obstructed the agency by providing clients with fraudulent documents to send to the IRS, directing clients to conceal his role in filing their false returns and advising a client to remove funds from his bank account to prevent collection efforts.
In addition to the term of imprisonment, U.S. District Judge Robert B. Kugler ordered Barry to serve three years of supervised release and to pay approximately $4,240,733 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
The IRS Criminal Investigation Division investigated the case.
Trial Attorneys Sean Green and Samuel Bean of the Justice Department’s Tax Division prosecuted the case.
Nampa Woman Pleads Guilty to Failure to Account for and Pay over Employment TaxRead the Press Release
BOISE – A Nampa woman pleaded guilty to failure to account for and pay over employment tax.
According to court records, from approximately 1999 to 2019, Nicole Beth Howerzyl, 69, of Nampa, was a corporate officer for Dave’s Motorcycle, Inc. (DMI) in Nampa. DMI was in the business of selling and servicing motorcycles. During that time, Howerzyl handled the bookkeeping for DMI, and exercised control over DMI’s financial affairs, including approving all payments by DMI and controlling all of DMI’s bank accounts.
For the calendar years 2013 to 2019, DMI employed approximately 15 to 25 people per year. During that period, DMI withheld taxes from its employees’ paychecks, including federal income taxes, Medicare, and social security taxes, often referred to as "payroll taxes." Howerzyl directly issued payroll checks twice per month and withheld payroll taxes from employees’ paychecks. Howerzyl also issued annual Forms W-2 to the employees of DMI, which reflected their gross wages, as well as their payroll taxes.
As a corporate officer of DMI, Howerzyl was aware that she had the corporate responsibility to collect, truthfully account for, and pay over DMI’s payroll taxes to the Internal Revenue Service (IRS) and file an Employer’s Quarterly Federal Income Tax Return (Form 941) following the end of each calendar quarter.
DMI, however, made no payments to the IRS for the calendar years 2013 to 2019. DMI further failed to file quarterly employment tax returns (Forms 941) with the IRS. Specifically, for the tax years 2013 to 2019, Howerzyl failed to account for $4,874,572.73 in wages at DMI and pay over $1,161,135.25 to the IRS in payroll taxes.
As part of the plea agreement with the Government, Howerzyl agreed to pay outstanding restitution to the IRS in the amount of $373,552.21.
“Collecting payroll taxes from workers then failing to pay over those amounts to the federal government is a gross breach of trust and is not a victimless crime,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “It is stealing from the workers, as well as the public, and hurts all Americans. Those who flaunt federal tax laws, must know that they will be investigated and prosecuted," he said.
“Defrauding the government by failing to submit payroll taxes to the IRS is also a crime against all honest taxpayers as the lost tax revenue is burdened by everyone else,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “Ms. Howerzyl’s plea today serves as an important reminder that IRS:CI is committed to bringing to justice those who evade their corporate tax responsibilities for their personal gain.”
Howerzyl is scheduled to be sentenced on March 15, 2022 and faces a statutory maximum of five years in federal prison, a $250,000 fine, and up to three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho commended the efforts of the Internal Revenue Service Criminal Investigation, which led to charges.
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Monahans Man Found Guilty of Being a Felon in Possession of a FirearmRead the Press Release
PECOS – Today a federal jury convicted a Monahans man for being a felon in possession of a firearm.
According to court documents and evidence presented at trial, Jacob Lynn Lyon, 29, was previously convicted for prior felonies including armed robbery, theft of a firearm and burglary of a habitation. On May 28, 2020, ATF agents did a consensual search of Lyon’s residence and found two handguns and a rifle.
Lyon was remanded into federal custody after the verdict. He is scheduled for sentencing on March 28, 2021, before U.S. District Judge David Counts.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II made the announcement.
The ATF, Texas Rangers and Monahans Police Department are investigating the case.
Assistant U.S. Attorney Lance Kennedy is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Michigan Man Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
CHARLESTON, W.Va. – A Michigan man pleaded guilty today to a federal drug trafficking crime.
According to court documents, Oji Williams, of Ann Arbor, admitted that on August 1, 2020, law enforcement officers seized over 200 grams of fentanyl from behind the glovebox of a vehicle in which he was a passenger, after conducting a traffic stop in Charleston. Williams admitted that he possessed and intended to distribute the fentanyl. Officers also seized two firearms from Williams’ home after he was arrested.
Williams pleaded guilty to possession with the intent to distribute 40 grams or more of fentanyl and faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on March 17, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00025.
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Mexican nationals face life sentence for human smuggling resulting in deathRead the Press Release
LAREDO, Texas – Two Mexican men have admitted to their roles in an alien smuggling conspiracy which resulted in death, announced Acting U.S. Attorney Jennifer B. Lowery.
Fabian Hernandez, 29, Nuevo Laredo, Tamaulipas, Mexico, and Emmanuel Ferral-Tonche, 19, Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty before U.S. Magistrate Judge John Kazen today.
On June 9, 2021, Hernandez and Ferral-Tonche marched a group of approximately two dozen individuals through the hot south Texas brush. Some were unable to keep going. At no time did Hernandez or Ferral-Tonche offer water or attempt to look for anyone who had fallen behind or gotten lost.
Authorities eventually responded to multiple 911 emergency calls coming from the Hachar Ranch property in Webb County. They ultimately discovered 24 individuals illegally present in the United States who had become lost at that location. They identified Hernandez and Ferral-Tonche as the smugglers.
Law enforcement also found the remains of three deceased people. Agents determined Hernandez and Ferral-Tonche had guided at least one of them before they succumbed to dehydration and hyperthermia while being smuggled.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing March 16, 2022. At that time, both men face up to life in federal prison. They have been and will remain in custody pending that hearing.
Homeland Security Investigations and Customs and Border Protection conducted the investigation with assistance from the Laredo Police Department.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Mexican National Pleads Guilty to Federal Gun ChargeRead the Press Release
HUNTINGTON, W.Va. – David Ferrusquia-Sanchez, 36, a Mexican national who was in the United States illegally, pleaded guilty today to a federal gun charge.
According to court documents and statements made in court, on March 22, 2021, law enforcement officers pulled over a vehicle on I-64 in Putnam County that lacked registration and was following a tractor trailer too closely. The driver, identified as Ferrusquia-Sanchez, provided a passport and a driver’s license, both of Mexican origin. Officers also learned that Ferrusquia-Sanchez had an active warrant for driving under revocation. A K9 unit arrived on scene and alerted to the vehicle. A search of the vehicle yielded a loaded 9mm Sportarms pistol in a duffel bag behind the driver’s seat. Ferrusquia-Sanchez admitted that he had not been given any legal status in the United States.
Ferrusquia-Sanchez pleaded guilty to being an illegal alien in possession of a firearm and faces up to 10 years in prison when sentenced on February 7, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Hurricane Police Department and U.S. Immigration and Customs Enforcement (ICE).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00061.
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Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Antonio Cortez Darden, of Maugansville, Maryland, was sentenced today to 21 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Darden, 44, pleaded guilty in August 2021 to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Darden admitted to having cocaine hydrochloride in September 2019 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Man Pleads Guilty to a Return Fraud Scheme Victimizing Amazon.com, Inc.Read the Press Release
ALEXANDRIA, Va. – A Manassas man pleaded guilty today to defrauding the online retailer, Amazon.com, Inc. (Amazon), of over $300,000 by operating a mail fraud scheme to buy high-end products, claim a refund, then return a similar item of significantly lesser value.
According to court documents, from 2017 through 2020, Farhaad Riyaz, 34, would open multiple Amazon accounts, purchase high-end items online and have them shipped to his residence. Riyaz would then claim the item had arrived too late or was not as described online, thereby initiating a return. He would send back to Amazon, via United Parcel Service, an item of materially lesser value but Amazon would refund him the full purchase price. For instance, in June 2019, Riyaz bought a rare Fender Telecaster electric guitar for approximately $2,600 from Amazon, then returned a Squier Telecaster electric guitar of the same color that had cost him approximately $400. During the scheme, Riyaz also fraudulently obtained a $37,000 home theater system by returning a $2,000 model, and fraudulently obtained multiple $4,400 toilets with electric bidets.
Riyaz is scheduled to be sentenced on March 22, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Amazon’s fraud detection unit provided valuable assistance in the investigation of the case.
Assistant U.S. Attorney Russell L. Carlberg is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-264.
Man Pleads Guilty Sexual Assault of Child in GrenadaRead the Press Release
A New York man pleaded guilty today in the Eastern District of New York to sexually assaulting a five-year-old child abroad.
According to court documents, during a trip to Grenada in October 2019, Treverson Roberts, 27, of Brooklyn, a dual United States and Grenadian citizen, forced a five-year-old boy to perform oral sex on him while the boy was temporarily left in Roberts’ care.
Roberts previously pleaded guilty to Grenadian charges related to the abuse but did not receive a sentence of imprisonment. Rather, the Grenadian court fined him $1,500 and required him to pay $600 compensation to the victim.
Roberts pleaded guilty to engaging in illicit sexual conduct with a minor in a foreign place and faces a maximum sentence of 30 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, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Special Agent in Charge Rick J. Patel for Homeland Security Investigations (HSI) New York made the announcement.
HSI New York’s Child Exploitation Investigations Unit investigated the case with valuable assistance provided by the HSI Caribbean Attaché Office and the Royal Grenada Police Force.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Laura Zuckerwise for Eastern District of New York are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Major Cocaine Supplier of Violent Drug Trafficking Organization Sentenced to 20 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JOSE MARTINEZ-DIAZ, a/k/a “Tony Zinc,” who supplied over 5,000 kilograms of cocaine to the Puerto-Rico-based drug alliance, La Organización de Narcotraficantes Unidos (“La ONU”), was sentenced by U.S. District Judge Jesse M. Furman to 20 years in prison. MARTINEZ-DIAZ previously pled guilty to participating in a racketeering conspiracy.
U.S. Attorney Damian Williams said: “Jose Martinez-Diaz supplied a staggering quantity of cocaine, a dangerous and addictive drug, to a violent drug trafficking organization. Some of the cocaine he supplied came to New York, where it was distributed out of, among other places, a daycare center in the Bronx. To ensure his drug business flourished, Martinez-Diaz brokered violence and even used corrupt law enforcement officials. Today Jose Martinez-Diaz was rightly sentenced to a lengthy prison term for his horrific crimes.”
According to the Indictment, other filings in this case, and statements during court proceedings:
MARTINEZ-DIAZ was a high-volume cocaine trafficker who supplied over 5,000 kilograms of cocaine to La ONU, a criminal enterprise involved in shipping thousands of kilograms of cocaine from Puerto Rico to New York. Cocaine from La ONU was then distributed in New York City, including out of a daycare center in the Bronx, New York. Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations. In particular, members of the enterprise were ordered to shoot and kill suspected rival drug trafficking members.
MARTINEZ-DIAZ, or those working on his behalf, smuggled cocaine from the Dominican Republic to Puerto Rico, usually by boat. The shipments often occurred as frequently as once per week, with such shipments containing 130 to 160 kilograms of cocaine. MARTINEZ-DIAZ would then parcel out the shipments to La ONU members.
MARTINEZ-DIAZ used the machinery of La ONU to protect his narcotics trade. For example, MARTINEZ-DIAZ arranged for corrupt members of the Puerto Rico Police Department (“PRPD”) to locate rival drug dealers and effect unwarranted traffic stops to control their movements or to isolate them until others from La ONU could attack them.
In or about 2007, MARTINEZ-DIAZ ordered a shooting on Avenue Monserrate in Carolina, Puerto Rico. The target was shot, but survived.
On another occasion, MARTINEZ-DIAZ paid a police officer $5,000 in connection with the attempted murder of a rival drug dealer known as “Taliban.” The intended victim was shot, but survived.
MARTINEZ-DIAZ funded and assisted La ONU in its fight against its rival, La Rompe ONU. For example, MARTINEZ-DIAZ provided money to La ONU members to purchase firearms. In addition, MARTINEZ-DIAZ and others created a fake PRPD patrol car. Members of La ONU used the fake patrol car to harass and intimidate members of La Rompe ONU, and to conduct shootings.
MARTINEZ-DIAZ also worked with a corrupt Drug Enforcement Administration (“DEA”) agent, who helped MARTINEZ-DIAZ and others in the narcotics conspiracy evade detection by law enforcement.
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In addition to the prison term, Judge Furman sentenced MARTINEZ-DIAZ, 48, of Puerto Rico, to three years of supervised release, and ordered him to forfeit $6.875 million.
Mr. Williams praised the investigative work of the U.S. Postal Inspection Service, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department. Mr. Williams also thanked the United States Attorney’s Office for the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lara Pomerantz, Justin Rodriguez, and Andrew Thomas are in charge of the prosecution.
Loan Officer Admits Participation in Large-Scale Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A loan officer for a mortgage company today admitted his role in a long-running, large-scale mortgage fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Isaac DePaula, 41, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of an indictment charging him with conspiracy to commit bank fraud. DePaula was a long-time fugitive who was charged by criminal complaint in 2012 and by indictment in 2016. He returned to the United States in March 2020 to face the charges in the indictment.
According to the documents filed in this and other cases and statements made in court:
From September 2006 to September 2010, DePaula and his conspirators engaged in a long-running, large-scale mortgage fraud conspiracy through a mortgage company called Premier Mortgage Services (PMS). The conspirators targeted properties in low-income areas of New Jersey. After recruiting straw buyers, the defendants used a variety of fraudulent documents to make it appear as though the straw buyers possessed far more assets, and earned far more income, than they actually did. The defendants then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties.
The defendants then split the proceeds from the mortgages among themselves and others by using fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The defendants made false representations and provided fraudulent documents when, in fact, the straw buyers had no means of paying the mortgages on the subject properties, many of which entered into foreclosure proceedings.
The defendants played different roles in the scheme, and others charged and convicted included a part owner of PMS, an attorney who aided the fraud by performing closings on many of the subject properties, an accountant who created false documents, the owner of a real estate development company, several loan officers, and a paralegal for another attorney who also closed fraudulent transactions.
DePaula was a loan officer at PMS and recruited straw buyers, provided false and fraudulent documents to the straw buyers, and incorporated false and fraudulent documents into loan applications to induce financial institutions to fund mortgage loans. The loan officers profited illegally by receiving a commission from PMS for each mortgage loan that they closed, and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for themselves, often via shell corporations or nominee bank accounts.
The offense to which DePaula pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for April 19, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of the Federal Housing Finance Agency - Office of the Inspector General, under the direction of Special Agent in Charge Robert W. Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
Lexington Man Sentenced for Wire FraudRead the Press Release
LEXINGTON, Ky. – A Lexington man, Subhadarshi Nayak, 49, was sentenced to 6 months in federal prison and 6 months of home detention on Monday by Chief U.S. District Judge Danny C. Reeves, for conspiracy to commit wire fraud and wire fraud. The matter of restitution is set for a hearing in February 2022.
According to his plea agreement, Nayak was a co-owner of the company ScienceTomorrow. In late 2013, Nayak electronically submitted a false proposal, to maximize a DOE Phase II SBIR grant from the U.S. Department of Energy. Specifically, he inflated the budget a university in Tennessee had provisionally authorized in support of the project and, as a result of this misrepresentation, the DOE awarded a grant to ScienceTomorrow. Nayak admitted he knew, upon receipt of the award, they would have to finalize a contract with the university to match the false budget provision, but they could not justify the inflated budget with the university and never finalized a contract with the institution, as of the day he abandoned the company in August 2014. Nayak intentionally took no steps to notify the DOE or correct this material misrepresentation in the ScienceTomorrow proposal.
Separately, Nayak also admitted he obtained a $100,000.00 EPA contract for his solely owned business, Qmetry, under false pretenses. Working alone, to induce the EPA to award him the contract, he falsely certified Qmetry had an agreement with a university and professor to complete specific work, when he did not. After certifying all funds had been spent according to the contract, Nayak also unlawfully retained $46,564.61 of EPA funding for the project, well after the close of the period of performance.
Nayak pleaded guilty in August 2021.
“Government grants are critically important to furthering countless community goals,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When individuals fraudulently obtain and misuse these valuable – and often scarce – resources, we all suffer the loss. We are committed to doing our part to protect these valuable resources from fraud, waste, and abuse, and to pursuing those who illegally prey on these important funds.
“The EPA Office of Inspector General is steadfast in our efforts to preserve the integrity of the SBIR program by aggressively rooting out attempts to defraud the U.S. government and taxpayers,” said EPA Inspector General Sean W. O’Donnell. “Today’s sentencing is the fruition of our commitment to ensuring that SBIR awardees are held accountable. I would like to thank our investigators and our law enforcement partners for their efforts and hard work on this case.”
“Small Business Innovation Research and Small Business Technology Transfer grants are valuable tools for furthering high profile research and development at the Department of Energy,” said Department of Energy Inspector General Teri L. Donaldson. “It is critical that we hold anyone who abuses these grants accountable, and we are thankful to our law enforcement partners and to the U.S. Attorney’s Office for their efforts in maintaining the integrity of these programs. The Office of Inspector General remains committed to protecting these programs, as well as all Departmental programs, to allow the generation of scientific breakthroughs and technological innovations.”
Under federal law, Nayak must serve 85 percent of his prison sentence, and upon his release from prison will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Sean Earle, U.S. EPA, Acting Deputy Assistant Inspector General for Investigations; Teri L. Donaldson, U.S. Department of Energy Inspector General; and Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service, U.S. Department of Defense, jointly announced the sentence.
The investigation was conducted by the EPA-OIG, DOE-OIG, and DOD DCIS. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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Leaders of the Lorenzana Drug Trafficking Organization Extradited on International Narcotics Trafficking ChargesRead the Press Release
Two Guatemalan nationals were extradited to the United States from Guatemala on Friday to face international narcotics trafficking charges.
Guatemalan nationals Haroldo Geremias Lorenzana-Cordon, aka Chuci, aka Chuchy, and Marta Julia Lorenzana-Cordon, aka Julie, aka Yulie, aka Julia and aka Morena, were extradited from Guatemala to the United States on Dec. 10 to face international drug trafficking charges. They made their initial court appearance in Washington, D.C. on Dec. 11. They are detained pending their appearance today before U.S. Magistrate Judge Zia M. Faruqui in the U.S. District Court for the District of Columbia.
According to allegations contained in court documents, the defendants were leaders of the Lorenzana drug trafficking organization. According to court documents, the Lorenzana drug trafficking organization, a historically patriarchal criminal group comprised primarily of family members, is one of the largest and most influential drug cartels in Guatemala. The organization transports tonnage quantities of cocaine from Colombia into Guatemala, where the cocaine is inventoried and stored on properties owned by the organization throughout Guatemala. Once processed, the organization works with the Sinaloa Cartel, among other organizations, to traffic cocaine into Mexico, through Central America, and eventually, into the United States.
According to court documents, between 1996 and 2019, the organization coordinated the transportation, storage and distribution of multi-ton quantities of cocaine from Colombia to Central America and Mexico, for eventual distribution into the United States. Their siblings, Eliu Elixander Lorenzana-Cordon and Waldemar Lorenzana-Cordon, were convicted on international narcotics trafficking charges in the District of Columbia in March 2019. Their father, Waldemar Lorenzana-Lima Sr., pleaded guilty to international narcotics trafficking charges in the District of Columbia in August 2014. Eliu and Waldemar Lorenzana-Cordon received life sentences. Waldemar Lorenzana-Lima received a 23 year sentence.
In April 2010, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated Haroldo, along with his father and two brothers, as Specially Designated Narcotics Traffickers (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for their role in facilitating the narcotics-trafficking activities of the Sinaloa Cartel in Guatemala. OFAC subsequently designated Marta Julia as an SDNT in November 2012.
A grand jury in the District of Columbia returned an indictment against Haroldo on March 10, 2009. In November 2019, Haroldo was arrested by Guatemalan authorities, pursuant to a provisional arrest request by the United States, where he remained detained pending his extradition. A grand jury in the District of Columbia returned an indictment against Marta Julia on July 23, 2020. In April, Marta Julia was arrested by Guatemalan authorities, pursuant to an extradition request by the United States, where she remained detained pending her extradition.
The defendants are charged with conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it will be unlawfully imported to the United States. If convicted, they each face mandatory minimum sentences of 10 years in federal prison and a statutory maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is part of “Operation Slipknot,” which is supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The Drug Enforcement Administration’s 959/Bilateral Investigations Unit is investigating with assistance from the DEA Guatemala City Country Office.
Trial Attorneys Imani Hutty and Teresita Mutton of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Office of International Affairs and Office of Enforcement Operations also provided significant assistance.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Man Sentenced to Prison for Assaulting U.S. Postal Carrier with A Metal Pipe During RobberyRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to eight years and six months in prison after assaulting and robbing a U.S. Postal Service mail carrier who was delivering mail in North Las Vegas.
According to court documents, on February 28, 2018, Ryan Joseph Ritter (31) ambushed and repeatedly swung a 13-inch metal pipe at the mail carrier’s head, causing bodily injuries. During the attack, Ritter also stole the mail carrier’s postal keys.
Ritter pleaded guilty in June 2021 to one count of aggravated robbery of a postal mail carrier. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Ritter to two years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
This case was investigated by the U.S. Postal Service. Assistant U.S. Attorney Jim Fang prosecuted the case.
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Justice Department Obtains Settlement from Kentucky Landlords to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department announced today that Chester Gordon Whitescarver and his wife, Betsy Whitescarver, who have owned and managed rental properties in and around Russellville, Kentucky, have agreed to pay $230,000 to resolve a lawsuit alleging that they violated the Fair Housing Act (FHA). The department’s lawsuit alleged that Gordon Whitescarver has sexually harassed female tenants since at least 2012 and that Betsy Whitescarver was on notice of sexual harassment allegations but took no action to stop his sexually harassing behavior.
Under the consent decree entered by the U.S. District Court for the Western District of Kentucky, the Whitescarvers must pay $220,000 to 11 women who are current or former tenants harmed by the Whitescarvers’ discriminatory conduct, and must pay a $10,000 civil penalty to the United States. The Whitescarvers must also take steps to dismiss any pending eviction actions against the victims, vacate any adverse judgments they obtained against the victims, and take steps to repair the credit of any affected victim. The consent decree also bars future discrimination, permanently bars the Whitescarvers from property management, mandates Fair Housing Act training, and requires monitoring and reporting regarding property management activities.
“We all deserve to feel safe in our own homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment by housing providers deprives tenants of their right to be safe, secure and free from unlawful conduct. The Justice Department is committed to pursuing predatory landlords and will work resolutely to hold those landlords accountable and obtain relief for their victims.”
“I commend the attorneys and investigators assigned to this case for their outstanding work on behalf of the 11 victims,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “The Fair Housing Act prohibits sexual harassment of tenants. We will continue to aggressively pursue landlords who subject their tenants to such discriminatory conduct.”
The United States’ lawsuit alleged that Gordon Whitescarver subjected multiple female tenants to sexual harassment and retaliation. According to the complaint, he made repeated and unwelcome sexual comments, entered the homes of female tenants without their consent, touched female tenants without their consent, requested sexual acts, offered reduced or free rent in exchange for sexual acts and took adverse housing-related actions against female tenants who refused his sexual advances. The United States’ complaint also alleged that Betsy Whitescarver threatened and retaliated against women who complained about her husband’s harassment.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The department’s initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys' Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $5.2 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or have suffered other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contacting the U.S. Attorney’s Office for the Western District of Kentucky at (502) 582-5911.
Reports may also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Jury Convicts Portland Gang Affiliate of Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—On December 10, 2021, a federal jury found a known Portland gang affiliate guilty for illegally possessing a firearm as a convicted felon.
Kneko Tyray Moore, 33, a resident of Portland and an affiliate of the Rollin’ 60s Crips gang, was found guilty of one count of felon in possession of a firearm.
According to court documents, on the evening of April 17, 2020, the Portland Police Bureau (PPB) received numerous calls from neighbors about an unruly gathering at the Lone Fir Cemetery in Southeast Portland. Callers reported that approximately 20 people were having a barbeque and playing loud music. The gathering occurred during the height of the COVID-19 pandemic in direct violation of the governor’s stay-home order.
An undercover officer reported seeing known members or associates of the Rollin’ 60s Crips gang, including Moore, at the gathering. Six of the gathering attendees, also including Moore, were on state or federal supervision following felony weapons convictions. When marked police cars arrived on scene, Moore quickly left the group and walked toward a black sedan. Moore entered the vehicle and sped away, nearly hitting a tree and an unmarked police vehicle.
Two officers then assigned to PPB’s Gun Violence Reduction Team followed Moore as he left the cemetery and pulled him over after he almost struck another car. Both officers recognized Moore as a Rollin’ 60s affiliate and convicted felon and reported he was visibly nervous and trembling. Moore became agitated when the officers impounded his vehicle and was placed under arrest for interfering with an officer. When officers searched Moore’s vehicle, they found a loaded .40 caliber semi-automatic pistol with a chambered round on the front passenger floorboard.
On October 6, 2020, a federal grand jury in Portland returned a one-count indictment charging Moore with illegally possessing a firearm as a convicted felon.
Moore faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 11, 2022 before U.S. District Court Judge Karin J. Immergut. Moore, who was on supervised release in a prior federal firearm case, is also facing violation proceedings.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by PPB and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Gary Sussman, Jaclyn Jenkins, and Leah Bolstad, Assistant U.S. Attorneys for the District of Oregon.
Jefferson County man sentenced for sex offender registry violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Frederick M. Hilliard, of Charles Town, West Virginia, was sentenced today to 18 months of incarceration for a sex offender registry charge, United States Attorney William J. Ihlenfeld, II announced.
Hilliard, 66, pleaded guilty in August 2021 to one count of “Failure to Register.” Hilliard admitted to not updating his sex offender registration from February to October 2019 in Jefferson County, as required by law, because of a rape conviction in Pennsylvania.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The U.S. Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for drug chargeRead the Press Release
MARTISNBURG, WEST VIRGINIA – Luis Manuel Solero Ortiz, of Ranson, West Virginia, was sentenced today to 60 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Ortiz, 38, pled guilty in October 2020 to one count of “Possess with Intent to Distribute 500 Grams or More of Cocaine Hydrochloride.” Ortiz admitted to having more than 500 grams of cocaine hydrochloride in March 2019 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Ranson Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Human Smugglers Sentenced for La Jolla Maritime Smuggling DeathRead the Press Release
Assistant U. S. Attorneys Colin M. McDonald (619) 546-9144 and Victor P. White (619) 546-8439
NEWS RELEASE SUMMARY – December 13, 2021
SAN DIEGO – Victor Alfonso Soto Aguilar and Jose Ramon Geraldo Romero were sentenced in federal court today to 71 and 60 months in prison, respectively, for attempting to smuggle fourteen Mexican citizens into the United States by sea, resulting in the tragic drowning death of a 43-year-old passenger.
Court records show that on May 19, 2021, Soto Aguilar and Geraldo Romero agreed to smuggle a group of undocumented individuals on a panga boat from Ensenada, Mexico to the shores of La Jolla, California—a distance nearing 100 miles. The smuggling venture encountered issues from the start. Due to engine trouble, the panga—which was significantly overloaded—stalled in the middle of open ocean waters. As a result, the group was forced to spend the night in the panga without adequate food or water. Soto Aguilar and Geraldo Romero then dropped their passengers on an island in the middle of the ocean while they tried to repair the panga. After making repairs, Soto Aguilar and Geraldo Romero retrieved the passengers from the island and proceeded to navigate the panga north towards La Jolla.
On May 20, 2021, in the early morning hours, the panga neared the shores of La Jolla by Marine Street beach. When the panga was approximately eighty yards from shore, Soto Aguilar and Geraldo Romero—not knowing if anyone could swim—instructed the passengers to remove their life jackets and jump into the water, assuring them the water was shallow.
Twelve passengers did as they were told. Immediately they struggled to stay afloat and desperately started calling for help. The two passengers that remained on the panga saw their fellow passengers struggling and tossed life jackets into the ocean. Soto Aguilar and Geraldo Romero then saw a lifeless body floating in the water. After pulling the body into the panga, Soto Aguilar and Geraldo Romero sped the boat away from the group in the water towards another beach about a half-mile away. After landing there, Soto Aguilar and Geraldo Romero then left the panga and fled the scene. However, after some searching by law enforcement, they were apprehended nearby.
As law enforcement was securing the crime scene, a concerned citizen spotted an individual floating in the water near the beached panga. Responding officers immediately rushed to the individual’s aid, extricated him from the water, and quickly realized he was unconscious. A Border Patrol agent performed CPR in an attempt to revive the individual, but he was pronounced dead once lifeguards arrived on scene. The decedent was later identified as Rogelio Perez-Gutierrez, a 43-year-old citizen of Mexico.
At the original drop-off location, United States Border Patrol, the United States Coast Guard, and San Diego Lifeguards spotted the individuals struggling desperately in the ocean. Lifeguards ultimately rescued ten people out of the water. In later interviews, the passengers on the panga said they were paying between $12,000 and $15,000 to be brought into the United States; they stated they feared for their lives throughout the ocean journey.
At the sentencing hearing, U.S. District Judge John Houston spoke about the “extraordinary danger” of smuggling on the high seas. Speaking of the gravity of the crime, Judge Houston said, “A human being is not here because of the risk you were willing to take.” He further urged the defendants to “[t]ell the people in Mexico that to captain or assist in driving a boat on the high seas will create a significant sentence.”
“This was a tragedy that never should have happened,” said Acting U.S. Attorney Randy Grossman. “These deadly smuggling incidents are on the rise. We will aggressively seek justice for the victims. But we also urge anyone who is contemplating an attempt to cross the border illegally: Don’t do it. Don’t put your life in the hands of greedy smugglers who care about money, not you.” Grossman commended the excellent work of the prosecution team as well as the HSI agents, Coast Guard officers, Border Patrol agents, and San Diego Lifeguards, for their efforts in connection with the case.
“The U.S. Border Patrol will continue to seek maximum prosecution of individuals who smuggle at sea,” said San Diego Sector’s Chief Patrol Agent Aaron Heitke. “This incredibly dangerous and unpredictable tactic has already claimed lives, yet smuggling organizations continue to enrich themselves by using it.”
DEFENDANTS Case Number 21cr1665-JAH
Victor Alfonso Soto Aguilar Age: 37 Residence: Mexico
Jose Ramon Geraldo Romero Age: 24 Residence: Mexico
SUMMARY OF CHARGES
8 U.S.C. § 1324(a)(1)(A)(i) and (B)(iv) - Attempted Bringing In Illegal Aliens Resulting in Death
Maximum penalty: Death or imprisonment for any term of years or for life; $250,000 fine.
8 U.S.C. § 1324(a)(2)(B)(ii) - Attempted Bringing In Illegal Aliens for Financial Gain (three counts)
Maximum penalty: mandatory minimum five years’ imprisonment; maximum fifteen years; $250,000 fine
AGENCIES
Homeland Security Investigations
United States Coast Guard
San Diego Lifeguards
United States Border Patrol
Customs and Border Protection
The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Hudson County Man Sentenced to 86 Months in Prison on Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 86 months in prison for possessing with intent to distribute heroin, cocaine and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Hason Armfield, 43, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with possessing with intent to distribute heroin, cocaine and cocaine base. Judge McNulty imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Armfield’s residence was searched as part of an investigation by the Drug Enforcement Administration (DEA) and the Jersey City Police Department. Law enforcement officers found heroin, cocaine, cocaine base, drug paraphernalia, and U.S. currency.
In addition to the prison term, Judge McNulty sentenced Armfield to three years of supervised release.
Acting U.S. Attorney Honig credited agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in the U.S. Attorney’s Office in Newark.