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4 February 2022
Justice Department, ICE and the FBI Recognize International Day of Zero Tolerance for Female Genital MutilationRead the Press Release
The Human Rights Violators and War Crimes Center (HRVWCC), including the Justice Department’s Human Rights and Special Prosecutions Section (HRSP), U.S. Immigration and Customs Enforcement (ICE) and the FBI’s International Human Rights Unit (IHRU), will join U.S. and international law enforcement partners, non-governmental organizations (NGOs) and others this Sunday, Feb. 6 in recognizing the International Day of Zero Tolerance for Female Genital Mutilation (FGM).
“There will be no tolerance – today or any other day – for this harmful and traumatic practice,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice is dedicated to the enforcement of the STOP FGM Act to protect young women from this traumatic experience.”
“The FBI stands with our partners in acknowledging this International Day of Zero Tolerance in support of the victims of this horrendous crime,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We reaffirm our commitment to protecting young women and girls by bringing to justice those who violate this vulnerable group.”
“The International Day of Zero Tolerance provides us the opportunity to raise awareness of this issue and remember the women and girls who have suffered from this human rights abuse, including those who have died or live with the health complications from this practice,” said ICE Homeland Security Investigations (HSI) Assistant Director for National Security Andre R. Watson.
Federal agencies have engaged in a variety of initiatives aimed at protecting women and girls in the United States who have been subjected to or who may be at risk of FGM. For example:
- To help raise awareness, HSI special agents regularly conduct outreach at U.S. international airports to inform travelers of the dangers of FGM and the consequences for those who commit this horrific abuse. In December, HSI special agents conducted outreach at international airports in Dulles, Virginia, and Dallas, Texas, under an initiative called Operation Limelight USA. Operation Limelight USA was initiated in 2017 by ICE’s HRVWCC, and modeled after the U.K.’s Operation Limelight, a joint initiative by the U.K.’s Border Force and police services.
- The Justice Department’s Office for Victims of Crime awarded over five million dollars in three-year grants to support community projects around the country designed to increase direct services, education, and community partner engagement to stop the victimization of women and girls through FGM. For more info, see press release: Justice Department announces nearly $3 million to address female genital mutilation and cutting.
- Justice Department, DHS, and FBI conducted a variety of trainings for local, state and federal law enforcement (prosecutors, local and state police, child protective services professionals, and others) to raise awareness about the applicability of federal and state laws barring FGM, best practices for interactions with FGM survivors, and where to find support services. Similar trainings and meetings were held for educators, immigrant and refugee service providers, and medical professionals.
FGM is a serious human rights violation and a federal crime. In 2013, Congress amended the federal FGM statute to add section 116(d), which prohibits the transportation of a person from the United States to another country for purposes of having FGM performed upon them.
On Jan. 5, 2021, the STOP FGM Act 2020 was signed into law, further aligning the U.S. definition of FGM with the World Health Organization’s definition. Violations of this law may result in imprisonment and potential removal from the United States.
Individuals suspected of FGM, including sending girls overseas to be harmed, may be investigated by the HRVWCC and prosecuted by the Department of Justice accordingly.
On Jan. 13, 2021, the Department of Justice indicted a Texas woman for allegedly transporting a minor out of the United States for FGM, the first time that charges were brought under the provision of the law which prohibits taking a girl out of the United States for the purpose of FGM. The FBI’s Houston Field Office investigated the case with support from the Human Rights Violators and War Crimes Center.
According to UNICEF, more than 200 million girls and women alive today have undergone FGM, which refers to procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in north, west and central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States. The Centers for Disease Control estimates that approximately 500,000 women and girls in the United States are either victims of FGM or are at risk of being subjected to it. The practice is global in scope and found in multiple geographies, religions and socioeconomic classes.
ICE’s HRVWCC is focused on investigating global atrocities and the perpetrators of human rights violations and war crimes. Initiated by ICE’s HSI in 2008, the HRVWCC leverages the knowledge and expertise of a select group of special agents, attorneys, intelligence analysts, criminal research specialists and historians who are charged with preventing the United States from becoming a safe haven to individuals who engage in the commission of war crimes, genocide, torture and other forms of serious human rights abuses from conflicts around the globe. The center also brings together other DHS components and federal partners, to include the FBI and the Department of Justice, who work collaboratively alongside HSI to investigate human rights violators and to pursue war crimes investigations and prosecutions.
Anyone with information about victims or perpetrators of FGM is encouraged to call the toll-free ICE tip line at (866) 347-2423 or the FBI tip line at 1-800-CALL-FBI (800-225-5324). To submit a tip online, complete the ICE online tip form, or the FBI online tip form at tips.fbi.gov. The FBI’s call center and online portal are available anytime, and tips may be provided anonymously. For more information about FGM visit the United Nations' Zero Tolerance Day website.
Justice Department Announces Strategy to Combat Human TraffickingRead the Press Release
BOSTON – U.S. Attorney General Merrick B. Garland and U.S. Attorney for the District of Massachusetts Rachael S. Rollins have announced the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act, which aims to enhance the Department’s capacity to prevent human trafficking; prosecute human trafficking cases; and support and protect human trafficking victims and survivors.
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination, and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally funded, locally led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
“The fight against sex and labor trafficking, and supporting these victims, is one of my highest priorities for this office. Coordination among local, state and federal partners to provide a victim-centered approach to prevent human trafficking in the District will be further enhanced by the Justice Department’s newly released strategy,” said U.S. Attorney Rachael S. Rollins. “Human trafficking has a devastating and sustained impact on victims and their loved ones. My office will spare no resource in identifying, prosecuting and holding traffickers accountable to the fullest extent of the law.”
“Human trafficking is an insidious crime,” said U.S. Attorney General Merrick B. Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
The District of Massachusetts has established itself as a leader in the fight to address human trafficking.
Since 2017, the Department of Justice has committed approximately $235 million in federal grants throughout the District of Massachusetts to aid in the fight against sex and labor trafficking and support victims of crime, including survivors of human trafficking. These funding streams have supported health and human service organizations providing direct services to survivors, state and local human trafficking prevention programs, law enforcement trainings and other support to victims and minor victims of human trafficking.
In FY2021, the following federal grants were awarded in Massachusetts to support local and state anti-trafficking programs, and provide direct services to victims of crime, including survivors of human trafficking:
- Baystate Medical Center, Inc., $600,000
- Ascentria Community Services, Inc., $800,000
- Attorney General’s Office, $1,558,000
- Commonwealth of Massachusetts: $21,488,509
In 2019, the U.S. Department of Justice awarded the Massachusetts Attorney General’s Office $1,699,742 to develop a Massachusetts Task Force to Combat Human Trafficking. The Commonwealth’s Anti-Trafficking (CAT) Task Force is a federally funded, multidisciplinary approach that is the first of its kind and a national model for locally led anti-human trafficking task forces. This effort is a collaboration between the U.S. Attorney’s Office, the Massachusetts Attorney General’s Office, direct service providers, and state, local and federal law enforcement to proactively investigate and effectively prosecute human trafficking in Massachusetts while also providing trauma informed comprehensive services for victims of human trafficking.
The Massachusetts CAT Task Force receives referrals for all types of human trafficking cases. Referrals or questions should be communicated to the CAT Task Force through the Attorney General’s Office or via email to [email protected]. If you are in immediate danger, call 911.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To receive more information related to applying for federal grant programs to support anti-trafficking work, please visit www.grants.gov.
The Department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017. To read the National Strategy to Combat Human Trafficking click here.
Jury Convicts Anamosa Man of Being a Prohibited Person in Possession of Firearms and AmmunitionRead the Press Release
A felon with domestic abuse convictions who possessed firearms and ammunition was convicted by a jury on February 3, 2022, after a one-and-a-half-day trial in federal court in Cedar Rapids.
Douglas Hurt, age 41, of Anamosa, Iowa, was found guilty of possessing two firearms and ammunition after having been convicted of one felony and three misdemeanor crimes of domestic violence.
The evidence at trial showed that, in June 2020, in the cabin where he lived, Hurt possessed a Chinese Type 56 7.62 x 39 mm caliber rifle, a Remington 870 Express Magnum 12-gauge shotgun, and ammunition.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Hurt was taken into custody by the United States Marshal after the trial and will remain in custody pending sentencing. Hurt faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years on supervised release following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Jones County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 21-59.
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Juneau Man Sentenced to Prison for Illegally Possessing a FirearmRead the Press Release
JUNEAU – A Juneau man was sentenced to more than six years in prison by U.S. District Judge Timothy M. Burgess for illegally possessing a firearm. During the sentencing Judge Burgess noted the defendant’s significant prior history involving violence against others and the seriousness of this offense endangering the officer and others.
According to court documents, Pharoah Akhenaten, aka Curtis Burchfield, 41, pulled a firearm on a Juneau police officer in an effort to stop his arrest on an underlying warrant. Due to prior felony convictions punishable by more than one year in prison, Akhenaten is prohibited from possessing firearms and ammunition.
On October 22, 2019, a Juneau police officer observed Akhenaten in a vehicle with a female passenger where there had been reports of suspicious activity involving the vehicle earlier in the evening. The officer contacted Akhenaten to confirm his identity. During this contact Akhenaten pretended to have a diabetic condition and got out of the vehicle indicating he was going to throw up. The officer was advised that Akhenaten had an active arrest warrant. He vigorously resisted the officer’s attempt to place him under arrest, spinning into the officer’s face and pushing the officer backwards onto the ground. Akhenaten then began advancing towards the officer on the ground with what appeared, and later confirmed, to be a firearm. The officer was able to discharge a taser hitting Akhenaten who then got back into his car and started it. Additional officers arrived on scene and arrested Akhenaten who was wearing an empty holster. The officers found a firearm loaded and chambered in the vehicle floorboard.
“Pursuing and prosecuting violent offenders is one of the highest priorities of the U.S. Attorney’s Office and our law enforcement partners,” said U.S. Attorney John E. Kuhn, Jr., for the District of Alaska. “And anyone who attacks or endangers law enforcement officers as they work to keep the public safe will face severe penalties, as reflected by this substantial sentence.”
The Juneau Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
Assistant U.S. Attorney Jack Schmidt prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Jefferson County man admits to failing to registerRead the Press Release
MARTINSBURG, WEST VIRGINIA – Patrick Allen Darlington, of Charles Town, West Virginia, has admitted to a failure to register charge, United States Attorney William Ihlenfeld announced.
Darlington, 43, pleaded guilty today to one count of “Failure to Register.” Darlington, a person required to register as a sex offender because of a prior conviction, has admitted to traveling across state lines without updating his sex offender registration from August 2020 to March 2021 in Jefferson County and elsewhere.
Darlington faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jacksonville Man Sentenced to 12 Years in Prison for Bank RobberiesRead the Press Release
NEW BERN, N.C. – A Jacksonville man was sentenced today to 144 months in prison for bank robbery and brandishing a handgun during a robbery and was ordered to pay $58,333.00 in restitution. On August 10, 2021, Michael Donell Moore pled guilty to the charges.
According to court documents and other information presented in court, Moore, 29, robbed two banks during May 2019. On May 8, 2019, Moore entered the First Citizens Bank in Wilson, North Carolina, wearing a hoodie, surgical mask, and latex gloves. Moore handed the bank teller a note demanding money and threatened to kill everyone in the bank. Moore also pointed a handgun at the bank teller. Moore was able to take $29,607 from the bank.
On May 28, 2019, Moore robbed the CresCom bank in Chocowinity, North Carolina. Moore entered the bank wearing a hazmat suit, sunglasses, and a surgical mask. Moore approached the bank teller and handed her a note. The note stated Moore had a bomb and the bank teller had one minute to let Moore into the bank vault. Moore was also holding a silver revolver in his right hand. Moore was able to leave the bank with $28,726.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation, Wilson Police Department, Chocowinity Police Department, and Beaufort County Sheriff’s Office 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-00408-FL.
Inmate Sentenced to 15 Months for Conspiring to Launder Drug Trafficking ProceedsRead the Press Release
PITTSBURGH - Mario Allen was sentenced to 15 months in prison after pleading guilty to conspiring to launder drug-trafficking proceeds between 2017 and 2019, United States Attorney Cindy K. Chung announced today.
Allen, age 40, of Petersburg, Virginia, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that the prison sentence be served consecutively to the federal prison sentence Allen was serving at the time as a result of prior racketeering and drug-trafficking convictions.
Allen was incarcerated at USP-Lee in Virginia when he conspired to launder the proceeds of the distribution of Schedule I synthetic cannabinoid controlled substances. Such substances have caused severe illness and deaths throughout the United States in recent years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Bureau of Police, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 1 was:
Joseph John Lequin, 65, of Shelby, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Lequin faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Lequin was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-05.
Brian Lee Big Bow, 44, of Box Elder, on charges of strangulation and assault with a dangerous weapon. If convicted of the most serious crime, Big Bow faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Big Bow was released pending further proceedings. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 21-79.
Appearing on criminal complaints were:
Jesus Zamora Cuevas, 23, of Mexico, on charges of prohibited person in possession of firearm and illegal re-entry of deported alien. If convicted of the most serious crime, Cuevas faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Cuevas was detained pending further proceedings. Homeland Security Investigations investigated the case. PACER case reference. 22-04.
Rolando Lopez Lara, 22, of Mexico, on charges of prohibited person in possession of ammunition. If convicted of the most serious crime, Lara faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Lara was detained pending further proceedings. Homeland Security Investigations investigated the case. PACER case reference. 22-05.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 2 was:
Jeffrey Brandon Zabolotney, 34, of Lolo, on charges of transportation of child pornography and receipt of child pornography. If convicted of the most serious crime, Zabolotney faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Zabolotney was released pending further proceedings. Homeland Security Investigations and the Ravalli County Sheriff’s Office investigated the case. PACER case reference. 21-57.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 3 was:
William Edward Coffin, 34, of Big Sky, on charges of prohibited person in possession of firearm. If convicted of the most serious crime, Coffin faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Coffin was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Probation and Parole Division investigated the case. PACER case reference. 22-03.
Chase David Carmody, 41, of Billings, on prohibited person in possession of firearm. If convicted of the most serious crime, Carmody faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Carmody was released pending further proceedings. The FBI investigated the case. PACER case reference. 22-01.
Appearing on Feb. 4 was:
Curtis Jeffrey Montclair, 37, of Poplar, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Montclair faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Montclair was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Peck Police Department and Montana Probation and Parole Division investigated the case. PACER case reference. 21-70.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband and Wife Plead Guilty to Conspiracy in Relation to Fraudulent Tax Filings of Maryland Auto Body Repair ShopRead the Press Release
Baltimore, Maryland – Ercin Kalender, age 60, of Alexandria, Virginia and Lizette Kalender, age 44, of Alexandria, Virginia pleaded guilty yesterday to conspiracy in relation to tax fraud within their corporate filings and business taxes. As part of their plea agreements, the Kalenders have been ordered to pay $2,219,602 in restitution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to their guilty pleas, Ercin Kalender owned and operated Butch’s, a very successful Capital Heights, Maryland auto body shop. Lizette Kalender worked at the autobody shop as a manager and bookkeeper. In that capacity, she handled tax reporting matters and regularly worked with an outside tax preparation and accounting agency, which prepared the taxes for Butch’s and the personal tax returns for Ercin and Lizette.
For the fiscal tax years of 2015, 2016, 2017, and 2018, Butch’s reported its income and expenses to the federal government by filing Forms 1120 with the Internal Revenue Service. During this period, the Kalenders conspired with each other to include materially false information on their Form 1120s filed with the IRS on behalf of Butch’s. The false information included on the Form 1120s included a significantly lower report of gross income and taxable income.
The Kalenders jointly worked to divert revenue from Butch’s and avoid significant revenues being deposited into Butch’s corporate bank accounts and reported to the IRS. As part of the conspiracy, the Kalenders kept two sets of financial records for Butch’s, one that reported the actual revenues and profits of the business and a second set that reported lower figures which were used for tax purposes. The Kalenders’ conspiracy to submit false tax returns also involved cashing checks, received at Butch’s at a Prince George’s check cashing facility (Business A). The checks cashed at Business A were not reported on Butch’s tax returns and resulted in the underreporting of Butch’s annual income for fiscal years 2015, 2016, 2017, and 2018 by more than $6.6 million. The corresponding tax loss to the IRS for the four years was $2,219,602.
As stated in their plea agreements, in August 2018, the Kalendars sought to sell Butch’s. As part of the investigation, an undercover federal agent posed as a potential buyer and had contact with the Kalenders. During their conversations, Ercin and Lizette explained the profitability of Butch’s and revealed their practices of the underreporting of revenues and income from Butch’s. During one conversation, while Lizette was present, Ercin informed the uncover agent that he had a regular practice of taking checks intended to pay for auto body repair work and cashing them at Business A. Some of the checks were made payable to Butch’s while other customer checks were written to Butch’s customers, or jointly payable to Butch’s and the customers.
Further, Ercin explained that while Butch’s filed tax returns showed $2.2 million in gross receipts, the actual gross receipts were closer to $3.1, $4.2, and $3.9 million for the fiscal years for 2015, 2016, and 2017; respectively. He also stated that his father had done this for years before he had taken over Butch’s operations and that his father used Business A to cash checks for 30-35 years. Ercin continued to explain the conspiracy by informing the undercover agent that he regularly cashed $50,000-60,000 at a time in off the books checks at Business A but estimated that he had reduced the amounts in recent years to approximately $30,000-35,000 cashed per visit to Business A. Ercin also informed the agent that Lizette also reported sizeable W-2 income, which helped them evade scrutiny by the IRS.
While working with the outside tax preparation and accounting agency, Lizette deliberately hid the money flowing through Business A. Lizette sent bank statements for the corporate accounts, check stubs, credit card statements, payroll records, and other business records but withheld the revenue received through the checks cashed at Business A. Thus, underreporting taxable income to the tax preparation and accounting agency.
During conversations with the undercover agent, Lizette showed records to the undercover agent displaying total sales of $4.3 million and $3.9 million for the fiscal years 2017 and 2018. Lizette also talked about pulling out invoices for additional customers from business records to cause business records to match their bank records.
As detailed in their plea agreements, the Kalenders knowingly caused a portion of the employee’s wages to be paid in cash and falsely reported the wages of Butch’s employees on Forms 941 filed with IRS. In a conversation with the undercover agent, Ercin stated that he paid all his employees’ extra compensation in cash to avoid tax obligations except for one secretary who was not paid under the table. This system of paying employees in cash deprived the State of Maryland of tax revenue and subverted the taxation systems of the IRS and Maryland.
In 2019, after the Kalenders became aware of the IRS’s investigation, Butch’s reported gross receipts of more than $4.5 million, an increase of more than $2.2 million over the fiscal year 2018.
Ercin Kalender and Lizette Kalender face a maximum sentence of five years in prison followed by three years of supervised release for conspiracy. U.S. District Judge Paula Xinis has scheduled Ercin and Lizette’s sentencing hearings for May 26, 2022, at 10 a.m. and 11 a.m.; respectively.
United States Attorney Erek L. Barron commended the IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Hot Springs Man Sentenced to over 6 Years in Federal Prison for Drug TraffickingRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced today to 77 months in prison followed by three years of supervised release on one count of Distribution of a Controlled Substance Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court documents, Detectives with the 18th East Judicial District Drug Task Force and Homeland Security Investigations launched an investigation into Nicholas Allen Bland, 41, for drug trafficking in the Western District of Arkansas. In July of 2019, detectives conducted a controlled purchase of methamphetamine from Bland.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 18th East Judicial District Drug Task Force, Homeland Security Investigations Little Rock, and the 18th East Judicial District Prosecuting Attorney’s Office investigated the case.
Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.
Highest Paid MTA Employee in 2018 Sentenced to 8 Months in Overtime Fraud SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today that THOMAS CAPUTO, a longtime employee of the Long Island Rail Road (“LIRR”) who in 2018 was the highest paid employee of the entire Metropolitan Transportation Authority (“MTA”) due to extraordinarily high volumes of overtime pay, was sentenced to eight months in prison for conspiracy to commit federal program fraud by submitting time reports falsely claiming to have worked hundreds of hours of overtime that he did not in fact work, including for time he spent participating in a bowling league. CAPUTO previously pled guilty on August 26, 2021, before United States District Judge Paul A. Engelmayer, who also imposed the sentence. Judge Engelmayer had earlier sentenced two of CAPUTO’s coconspirators, JOHN NUGENT, and JOSEPH BALESTRA, to terms of imprisonment for their participation in the scheme. NUGENT, who pled guilty on July 27, 2021, was sentenced on November 4, 2021 to a five-month term of imprisonment. BALESTRA, who pled guilty on September 14, 2021, was sentenced on January 4, 2022 to a three-month term of imprisonment.
U.S. Attorney Damian Williams said: “The sentences the court imposed on the participants in this egregious overtime fraud scheme send a clear message: If you commit overtime fraud, you will go to prison. The public expects that public employees will show up and receive honest pay for an honest day’s work, not line their pockets with double-time or time-and-a-half pay while out bowling.”
In sentencing CAPUTO’s codefendant NUGENT, Judge Engelmayer remarked that the defendant participated in “an orgy of overtime fraud that was carried out on an epic scale,” and remarked that “Just punishment requires a substantial sentence including real prison time” and that “The message has to be, if you get caught faking overtime, there will be significant consequences and you will spend time in prison.”
According to the allegations in the Complaint and Indictment filed in federal court, and the statements made in connection with the sentencings of CAPUTO, NUGENT, and BALESTRA and the prosecution of coconspirators JOSEPH RUZZO and FRANK PIZZONIA:
CAPUTO, RUZZO, NUGENT, BALESTRA, and PIZZONIA schemed to fraudulently receive thousands of dollars in compensation from the MTA by falsely claiming to have worked hundreds of voluntary overtime hours that in fact they did not work. The overtime pay the defendants claimed led to significant increases in their salary and led to them being among the highest-paid MTA employees, and in the case of CAPUTO, the highest-paid MTA employee in 2018. The defendants frequently volunteered for overtime and then claimed to have been working lucrative overtime shifts at times when they were in fact at home or at other non-work locations, such as, in the case of CAPUTO, a bowling alley.
The Defendants’ Employment at the MTA
The MTA runs North America’s largest transportation network, providing bus, subway and rail service to a population of more than 15 million people in New York City and the surrounding areas. The MTA’s operating agencies include the LIRR, a commuter railroad providing service between Manhattan and locations on Long Island.
CAPUTO, RUZZO, NUGENT, BALESTRA, and PIZZONIA are current or former LIRR employees. CAPUTO was an LIRR employee responsible for track inspection, RUZZO, NUGENT, and BALESTRA were all LIRR foremen, and PIZZONIA is an LIRR track worker.
In addition to their regular duties, CAPUTO, RUZZO, NUGENT, BALESTRA, and PIZZONIA each volunteered to work and were assigned a number of lucrative overtime shifts during which they were required to, among other things, support third-party contractors working on construction projects on or around LIRR properties. These voluntary overtime shifts were offered to LIRR employees in order of their seniority under the applicable union collective bargaining agreements, enabling CAPUTO, RUZZO, NUGENT, BALESTRA, and PIZZONIA to be assigned large numbers of voluntary overtime shifts due to their seniority.
At all relevant times, CAPUTO, RUZZO, NUGENT, BALESTRA, and PIZZONIA received hourly rates for their regular schedule, and were then entitled to be paid higher “overtime” rates – typically one and a half or two times the regular hourly rate, depending on the circumstances – for additional hours worked. At all relevant times, CAPUTO, RUZZO, NUGENT, and BALESTRA were required to self-report their time.
The Defendants’ Excessive Overtime Claims and Frequent Absences from Work
In 2018, CAPUTO was paid approximately $461,000 by the MTA. Of that amount, approximately $117,000 comprised his base salary and other forms of compensation apart from overtime, while the additional approximately $344,000 was paid for overtime that CAPUTO ostensibly worked. In total, this made CAPUTO the highest paid employee at the MTA during 2018 – higher than, for example, the Chairman of the MTA.
In 2018, CAPUTO claimed to have worked approximately 3,864 overtime hours, on top of 1,682 regular hours. That is, if CAPUTO had worked every single calendar day in 2018 including weekends and holidays (although he did not), that would average out to approximately 10 hours of overtime every day for an entire year in addition to his regular, 40-hour work week.
Similarly, RUZZO, NUGENT, BALESTRA, and PIZZONIA also claimed to have worked and were paid for an excessive number of overtime hours in 2018. Each of them was paid over $200,000 in overtime alone, putting each of them within the top 30 highest paid employees at the MTA during 2018. These payments were based on reported amounts of overtime hours ranging from 2,918 to 3,914, which if the defendants had worked every calendar day in 2018 would average out to approximately 8 to 10 hours for every single day, in addition to the employee’s regular 40-hour work week.
The defendants’ claimed overtime, however, was inflated by numerous hours in which the defendants claimed to be at work but in fact were absent without authorization. Staffers from the Office of the MTA Inspector General (“MTA OIG”) worked with criminal investigators to perform a detailed review of the hours claimed to have been worked by the defendants in or around calendar year 2018. This investigation, among other things, compared the time records for CAPUTO, RUZZO, NUGENT, BALESTRA, and PIZZONIA with various records that established their true whereabouts, such as location information for their cellular phones, bank records, MTA building access card data, work and personal emails and social media records, and records from third parties such as a bowling alley where CAPUTO participated in bowling league games despite claiming to work an average of 10 hours of overtime every single day of 2018.
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In addition to the prison sentences, CAPUTO, 56, of Holbrook, New York, was sentenced to three years of supervised release with six months of home confinement and 200 hours of community service; NUGENT, 50, of Rocky Point, New York, was sentenced to three years of supervised release with five months of home confinement and 200 hours of community service; and BALESTRA, 51, of Blue Point, New York, was sentenced to three years of supervised release with three months of home confinement and 200 hours of community service, and all were ordered to pay restitution in the amount of $109,641.74.
Mr. Williams praised the FBI and the MTA-OIG for their outstanding investigative work on this case.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Monteleoni, Thomas A. McKay, and Aline R. Flodr, are in charge of the prosecution.
Harrisburg Man Sentenced to over Three Years’ Imprisonment for Straw Purchasing FirearmsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Taashaun Mansfield, age 23, of Harrisburg, Pennsylvania, was sentenced today to 37 months' imprisonment by United States District Court Judge Jennifer P. Wilson for straw purchasing firearms for prohibited individuals.
According to United States Attorney John C. Gurganus, Mansfield pleaded guilty to conspiring with three other individuals to purchase firearms for felons and individuals under indictment. In 2020, Mansfield purchased seven firearms and transferred them to his codefendants because they were prohibited from possessing firearms. Six of the firearms were recovered during the investigation, but a seventh firearm has not been located.
Co-defendant Michael Windham, age 20, of Harrisburg, previously pleaded guilty to conspiring to straw purchase firearms and possessing a firearm while under indictment. Antonio Godbolt age 34, of Harrisburg, also previously pleaded guilty to conspiring to straw purchase firearms and possessing a firearm as a previously convicted felon. Both are awaiting sentencing. A third co-defendant, Johnny Quinones, age 34, of Harrisburg, is awaiting trial on charges of making a false statement to obtain a firearm, conspiring to straw purchase guns, and possessing a gun and ammunition as a felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case in conjunction with the Harrisburg Bureau of Police. Assistant U.S. Attorney Michael A. Consiglio 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.”
All persons charged are presumed to be innocent unless and until found guilty in court.
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Harrisburg Man Sentenced to over 15 Years in Prison for Robbery SpreeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Childes Neely, age 30, of Harrisburg, Pennsylvania, was sentenced today to 181 months' imprisonment by United States District Court Judge Jennifer P. Wilson for robbery and weapons offenses.
According to United States Attorney John C. Gurganus, Childes Neely pled guilty to conspiring with four other individuals to commit a total of four armed robberies. During a three-hour period on Saturday night, April 6, 2019, Neely’s co-conspirators wore masks and brandished guns, including an assault rifle, to rob five establishments in Harrisburg, Pennsylvania. Neely acted as the getaway driver on three of those robberies. Neely also pled guilty to conspiring to rob, at gun point, a Rite Aid pharmacy in Harrisburg, on Monday, April 8, 2019. Neely’s role in that robbery was as a masked gunman to help take cash and drugs from the pharmacy.
A codefendant, Brandon Harris, age 29, of Harrisburg, Pennsylvania, pled guilty to conspiring to commit the robberies. He was sentenced to 16 years of imprisonment. David Rinehardt, age 21, of Statesville, North Carolina, also pled guilty to conspiring to commit the robberies and was sentenced to over nine years in prison.
Kendrick Groover-Floyd, age 32, of Harrisburg, pled guilty to robbing the Rite Aid. He is awaiting sentencing.
The Federal Bureau of Investigation brought this case in conjunction with the Harrisburg Bureau of Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
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Green County Woman Pleads Guilty to CARES Act FraudRead the Press Release
Bowling Green, Kentucky – United States Attorney Michael A. Bennett announced today that Mandy Ellen Bauer, age 41, pleaded guilty to an Information charging her with 9 counts of fraud related to various CARES Act financial assistance programs.
According to court documents, between April and July 2020, Bauer, of Greensburg, Kentucky filed 9 fraudulent applications for various CARES Act financial assistance programs, including Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and advance payment of tax credits, resulting in an attempted theft of over $230,000. Bauer exaggerated the gross revenues, number of employees, and payroll of her company, Family Personal Sales, in the fraudulent applications.
PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll. Under this program, the Small Business Administration (SBA) would forgive all or part of loans if all employees were kept on the payroll for eight weeks and borrowers submitted documentation confirming that the loan proceeds were used for payroll, rent, mortgage interest, or utilities.
EIDLs provided loan assistance (including $10,000 advances) for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
Finally, as part of the CARES Act, the Internal Revenue Service (IRS) created the Form 7200, Advance of Employer Credits Due To COVID-19, to allow employer businesses to request an advance payment of the tax credits prior to the filing of their Form 941.
Bauer waived an Indictment and pleaded guilty to a nine count Information charging her with wire fraud in violation of Title 18, United States Code, Section 1343. Bauer made her initial court appearance and pleaded guilty on February 2, 2022, in the United States District Court for the Western District of Kentucky. A sentencing hearing is currently scheduled for May 11, 2022. Bauer faces a maximum of 180 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Treasury Inspector General for Tax Administration (TIGTA) is investigating the case. Assistant U.S. Attorney David Weiser is prosecuting the case.
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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.
Gary Woman SentencedRead the Press Release
SOUTH BEND –Briana S. Williams-Heard, 24 years old, of Gary, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to making false statements in connection with the acquisition of firearms, announced United States Attorney Clifford D. Johnson.
Williams-Heard was sentenced to 1 year probation with 12 months home detention.
According to documents in the case, in 2020 Williams-Heard bought three handguns from two federally licensed firearm dealers which she then gave to a convicted felon gang member. Williams-Heard falsely reported to police that one of those guns was stolen, and that gun was subsequently found in the possession of the felon gang member.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Frank E. Schaffer and Geovanny E. Martinez.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gary Man Sentenced to 46 Months in PrisonRead the Press Release
HAMMOND- Israel Wiggins, 25, of Gary, Indiana was sentenced by United States District Court Judge Phillip P. Simon after pleading guilty to Possession of a Firearm as a Felon, announced United States Attorney Clifford D. Johnson.
Wiggins was sentenced to 46 months in prison followed by 2 years of supervised release.
According to documents in the case, Wiggins was arrested for an unrelated warrant in Merrillville, Indiana. At the time of his arrest, he was carrying a .40 caliber firearm with an extended magazine. Wiggins had a prior conviction in Lake County Superior Court for the felony offense of Auto Theft, making him ineligible to legally possess a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service’s Great Lakes Fugitive Task Force. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Indicted for Burglary of Asheville Firearms DealerRead the Press Release
CHARLOTTE, N.C. – A grand jury in Asheville has indicted four individuals on federal charges in connection with the burglary of an Asheville firearms dealer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief David Zack of the Asheville Police Department (APD) join U.S. Attorney King in making today’s announcement.
The indictment charges Jesse Lynn Williams, 33, Lyron Deshawn Greenlee, 34, and Alexa Rae Bassillo, 29, all of Asheville, with conspiracy to commit theft of firearms from a Federal Firearms Licensee (FFL), and theft of multiple firearms from an FFL and aiding and abetting. Williams, Greenlee, and Bernard Eugene Carson, Jr. 33, of Morganton, N.C., are also charged with possession of a firearm by a felon. Williams and Bassillo are also facing charges of possession of a firearm by a user of a controlled substance.
According to allegations contained in the indictment, on January 7, 2022, Williams, Greenlee and Bassillo conspired to break into and steal firearms from Carolina Guns and Gear West, LLC (Carolina Guns and Gear) an FFL located at 3106 Sweeten Creek Road, in Asheville. The indictment alleges that Williams broke into the gun store and stole 33 firearms, while Bassillo and Greenlee served as lookouts or drivers during the burglary. The indictment further alleges that between January 7 and January 12, 2022, Carson was found to be in possession of one of the stolen firearms.
The defendants will be appearing in court on the charges before U.S. Magistrate Judge W. Carleton Metcalf.
The charges in the indictment are allegations. The defendants are presumed innocent until proven guilty in a court of law.
The ATF and APD are in charge of the investigation. The U.S. Attorney’s Office in Asheville is prosecuting the case.
Four Defendants Plead Guilty to Meth Conspiracy Near Elementary SchoolRead the Press Release
KANSAS CITY, Mo. – Four defendants have pleaded guilty in federal court to their roles in a conspiracy that converted large amounts of liquid methamphetamine into crystal methamphetamine at a rented house within 1,000 feet of George Melcher Elementary School in Kansas City, Missouri.
Jose Vieyra-Lopez, 37, a citizen of Mexico; Megan Eubanks, 40, of Kansas City, Mo., and Victor Suarez-Gallardo, 33, of Kansas, each pleaded guilty in separate appearances before U.S. District Judge Stephen R. Bough on Thursday, Feb. 3. Vieyra-Lopez and Suarez-Gallardo each pleaded guilty to participating in a conspiracy to distribute methamphetamine within 1,000 feet of a school from Jan. 1, 2014, to May 18, 2018. Eubanks pleaded guilty to participating in the conspiracy to distribute methamphetamine. Co-defendant Ruben Ortiz-Vieyra, 42, of Kansas City, Mo., a lawful permanent resident of the United States from Mexico, pleaded guilty to his role in the drug-trafficking conspiracy within 1,000 feet of a school on Jan. 12, 2022.
In addition to the drug-trafficking conspiracy, Vieyra-Lopez, Suarez-Gallardo, and Ortiz-Vieyra each pleaded guilty to one count of aiding and abetting the manufacture and distribution of methamphetamine within 1,000 feet of a school. Suarez-Gallardo, Ortiz-Vieyra, and Eubanks each also pleaded guilty to one count of possessing or using firearms with drug trafficking. Ortiz-Vieyra also pleaded guilty to one count of conspiracy to possess or use firearms with drug trafficking.
According to their plea agreements, Ortiz-Vieyra supplied methamphetamine to Eubanks. Vieyra-Lopez was the drug runner for Ortiz-Vieyra.
On April 26, 2018, a confidential informant purchased one-half pound of methamphetamine from Eubanks for $3,000 in a transaction that involved Ortiz-Vieyra. On May 2, 2018, the confidential informant purchased one pound of methamphetamine from Eubanks for $5,000. Ortiz-Vieyra was also involved in the transaction. On May 8, 2018, the confidential informant purchased one-half pound of methamphetamine. Ortiz-Vieyra and Vieyra-Lopez were involved in the transaction.
On May 15, 2018, law enforcement officers executed a search warrant at Eubanks’s residence. Officers seized methamphetamine, marijuana, a Ruger .380-caliber pistol, a box of ammunition, a counterfeit $100 bill, and drug paraphernalia.
On May 17, 2018, law enforcement officers executed a search warrant at a Kansas City, Mo., residence controlled by Ortiz-Vieyra and Suarez-Gallardo. There were no furniture or other items inside the residence to make it appear occupied. Instead, officers found a black cooking stand that had a pan sitting on top that contained liquid methamphetamine. The residence is approximately 484 feet from George Melcher Elementary School.
Ortiz-Vieyra admitted that he rented houses where he converted liquid methamphetamine into a crystallized form of methamphetamine for sale, including approximately five pounds of methamphetamine approximately one week before his arrest on May 17, 2018. Ortiz-Vieyra admitted that he sold methamphetamine to Eubanks and others. The next day Suarez-Gallardo, who had also been observed at the residence where methamphetamine was being converted, was arrested. Officers found acetone and a Berretta .45-caliber firearm at his residence. Suarez-Gallardo identified Ortiz-Vieyra as the conversion cook. Suarez-Gallardo admitted that he had distributed 10 to 15 pounds of methamphetamine from the conversion lab.
Under the terms of their plea agreements, the defendants must forfeit to the government $1,080,000, which was received for the unlawful distribution of methamphetamine, based on a sale price of $600 per ounce and the distribution of 1,800 ounces (112.5 pounds) of methamphetamine.
Under federal statutes, each of the defendants is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencings of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert Smith. It was investigated by the Jackson County Drug Task Force and the Drug Enforcement Administration.
Organized Crime Drug Enforcement Task Force
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Nurse at Danville Hospital Sentenced for Tampering with Prescription Opioid Drugs, Making False StatementsRead the Press Release
DANVILLE, Va. – A former registered nurse working at Sovah Health-Danville was sentenced today to 36 months in federal prison for tampering with consumer products (fentanyl and hydromorphone) and making false statements.
Emilee Kathryn Poteat, 31, pleaded guilty in May 2021 to one count of tampering with consumer products (fentanyl and hydromorphone) that affect interstate commerce, with one count of reckless disregard for the risk that another person be placed in danger of death or bodily injury, and one count of making false statements.
“Those who are trusted to keep opioids and other pain medications secure must be held to the highest standards possible,” United States Attorney Christopher R. Kavanaugh said today. “When those individuals break that trust, the United States Attorney’s Office will hold them accountable to ensure the public’s trust in our medical institutions.”
“Health care professionals who steal needed medications from their patients put those patients at increased risk of harm and create a disruption in the legal drug supply chain,” said Special Agent in Charge Mark S. McCormack of the FDA Office of Criminal Investigations – Metropolitan Washington Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with prescription drugs.”
According to court documents, beginning in January 2020, Poteat diverted and tampered with fentanyl vials and hydromorphone injectables (a/k/a Dilaudid) intended for the use of patients at Sovah Health-Danville.
On May 19, 2020, it was discovered that the tops of several vials of fentanyl stored in an AcuDose machine on floor 6A had apparently been removed and tampered. Of the twenty vials of fentanyl inspected, fourteen of the vials had the tops popped off while the remaining tops fell off when touched. One of the vials had a dry white film around the rim which appeared to be superglue. To access an AcuDose machine, each registered nurse has their own unique code that must be entered to gain entry, and a review of the machine on floor 6A revealed that Poteat was the only employee who accessed the drawer where the tampered vials were found.
On May 28, 2020, Poteat was interviewed by law enforcement. She denied tampering with any controlled substances and said she did not drink alcohol or use drugs. During a subsequent interview with law enforcement on June 28, 2020, Poteat again told investigators that she did not tamper with, use, or sell drugs, and suggested another person used her password to gain access to the AcuDose machine on 6A.
In her interview with the Virginia Department of Health Professions after being terminated from Sovah Health-Danville, Poteat admitted she had a substance abuse problem, self-medicated with opioids, and diverted the fentanyl and hydromorphone she accessed at Sovah Health-Danville for her own use.
The Food and Drug Administration, the Drug Enforcement Administration, and the Virginia Department of Health Professions investigated the case.
Assistant U.S. Attorney Randy Ramseyer prosecuted the case.
Former Guam Army National Guard Soldier Sentenced to 10 years for Attempted Enticement of a MinorRead the Press Release
Hagatña, Guam - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant CHRISTOPHER DE LEON GUERRERO, age 31, from Yigo, Guam, was sentenced to 10 years in federal prison for Attempted Enticement of a Minor, in violation of 18 U.S.C. §§ 2422(b) and 2. The sentencing followed a guilty verdict at trial in November 2021. The Court also ordered the defendant to serve five years of supervised release and pay a mandatory $200.00 special assessment fee.
Beginning on November 17, 2020, through November 20, 2020, the defendant used his cell phone to chat on the Whispr and Whatsapp applications with a person he believed to be a 13-year-old female. The female minor was actually an undercover law enforcement agent. During the next several days the defendant sent sexually explicit messages to entice the alleged minor to engage in sexual activity with him. The defendant made plans to meet at the minor’s house, located on Andersen Air Force Base, when he believed the minor would be home alone. On November 20, 2020, the defendant purchased food and a box of condoms and drove to the minor’s residence with the intent to engage in sexual activity with the minor. When the defendant arrived at the house, he was met by federal law enforcement agents. After agreeing to speak to agents, the defendant admitted to writing numerous sexual messages to the alleged minor. He also stated that he was prepared to have sex with her even though she was only 13 years of age. A search of the defendant’s truck revealed the box of condoms and the cell phone he used during the offense.
“This case is another reminder of the dangers faced by children on the internet,” stated U.S. Attorney Anderson. “Our Project Safe Childhood initiative continues to target those who seek to prey on the young and vulnerable. The success of this priority program is due to the outstanding working relationships among our federal agencies. We applaud their efforts.”
"The FBI will use all resources available to track, locate, and arrest those who seek to harm our children,” said FBI Special Agent in Charge Steven Merrill. “This sentence reflects the serious nature of the offense and acts as proof of our commitment, in collaboration with the Air Force Office of Special Investigation, to protect our children within our communities."
This case was part of the Project Safe Childhood (PSC) initiative, a nationwide initiative by the U.S. Department of Justice to aggressively prosecute people who engage in the sexual victimization of children, possess, or receive child pornography, and fail to register as sex offenders. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation and the Air Force Office of Special Investigation. This case was prosecuted by April Owen, Assistant United States Attorney for the District of Guam.
Former Executive Director of International Adoption Agency Pleads Guilty to Fraudulent Adoption SchemeRead the Press Release
The former executive director of an Ohio-based international adoption agency pleaded guilty today in the Northern District of Ohio to defrauding the U.S. and Polish authorities in connection with the adoption of a Polish child.
According to court documents, Margaret Cole, 74, of Strongsville, Ohio, admitted to conspiring with Debra Parris and others to deceive authorities regarding the adoption of a child from Poland. When Cole learned that clients of the adoption agency determined they could not care for one of the two Polish children they were set to adopt, Cole and her co-conspirators took steps to transfer the Polish child to Parris’s relatives, who were not eligible for intercountry adoption.
Cole, Parris and others agreed to defraud U.S. authorities to conceal their improper transfer of the Polish child. Following the adoption, the child was injured and hospitalized while living with Parris’s relatives. Thereafter, Cole made a false statement to the Polish authority responsible for intercountry adoptions about the transfer of the child that, among other things, concealed the role of Cole and others in arranging the transfer of the child to Parris’s relatives.
Cole pleaded guilty to conspiracy to defraud the United States and making a false statement to a Polish authority. She is scheduled to be sentenced on May 27. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendant Debra Parris previously pleaded guilty to conspiracy to defraud the United States in connection with the Poland scheme, as well as conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit visa fraud in connection with a scheme to corruptly and fraudulently procure adoptions of children from Uganda through bribes paid to Ugandan officials. Robin Longoria also previously pleaded guilty to conspiracy to violate the FCPA and to commit visa fraud and wire fraud in connection with the Ugandan scheme. Co-defendant Dorah Mirembe, who is charged in connection with the Ugandan scheme, remains at large.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Bridget M. Brennan for the Northern District of Ohio; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
The FBI’s Cleveland Field Office is investigating the case.
Trial Attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs assisted in the investigation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and Mirembe is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Executive Director of International Adoption Agency Pleads Guilty to Fraudulent Adoption SchemeRead the Press Release
The former executive director of a Strongsville-based international adoption agency pleaded guilty today in Cleveland to defrauding the U.S. and Polish authorities in connection with the adoption of a Polish child.
According to court documents, Margaret Cole, 74, of Strongsville, Ohio, admitted to conspiring with Debra Parris and others to deceive authorities regarding the adoption of a child from Poland. When Cole learned that clients of the adoption agency determined they could not care for one of the two Polish children they were set to adopt, Cole and her co-conspirators took steps to transfer the Polish child to Parris’s relatives, who were not eligible for intercountry adoption.
Cole, Parris and others agreed to defraud U.S. authorities to conceal their improper transfer of the Polish child. Following the adoption, the child was injured and hospitalized while living with Parris’s relatives. Thereafter, Cole made a false statement to the Polish authority responsible for intercountry adoptions about the transfer of the child that, among other things, concealed the role of Cole and others in arranging the transfer of the child to Parris’s relatives.
Cole pleaded guilty to conspiracy to defraud the United States and making a false statement to a Polish authority. She is scheduled to be sentenced on May 27. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendant Debra Parris previously pleaded guilty to conspiracy to defraud the United States in connection with the Poland scheme, as well as conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit visa fraud in connection with a scheme to corruptly and fraudulently procure adoptions of children from Uganda through bribes paid to Ugandan officials.
Robin Longoria also previously pleaded guilty to conspiracy to violate the FCPA and to commit visa fraud and wire fraud in connection with the Ugandan scheme.
Co-defendant Dorah Mirembe, who is charged in connection with the Ugandan scheme, remains at large.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Bridget M. Brennan for the Northern District of Ohio; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
The FBI’s Cleveland Field Office is investigating the case.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio and trial attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section. The Justice Department’s Office of International Affairs assisted in the investigation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and Mirembe is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Coachella Valley Woman Pleads Guilty in $44 Million Scheme that Fraudulently Billed Cosmetic Surgeries to InsuranceRead the Press Release
SANTA ANA, California – A former Rancho Mirage resident pleaded guilty this morning to federal charges related to a scheme that fraudulently billed insurance companies tens of millions of dollars for cosmetic surgeries by falsely claiming the procedures were “medically necessary.”
Linda Morrow, 69, who has been in federal custody since July 2019, pleaded guilty to one count of conspiracy to commit health care fraud, admitting that she helped her husband run the fraudulent billing scheme out of The Morrow Institute (TMI) in Rancho Mirage.
Morrow also pleaded guilty to one count of contempt of court for fleeing the United States in 2017 after a federal grand jury indicted her for the health care fraud scheme. Along with her husband, Morrow fled to Israel, which deported her in 2019 after U.S. authorities tracked her down and Israeli authorities determined she had entered that nation on a fraudulent Mexican passport.
Morrow pleaded guilty to the two felony offenses before United States District Judge Josephine L. Staton, who scheduled a sentencing hearing for July 1. At that time, Morrow will face a statutory maximum sentence of 20 years in federal prison.
Morrow’s husband, 77-year-old Dr. David M. Morrow, was extradited by Israel two years ago and is currently serving a 20-year prison sentence. David Morrow pleaded guilty in 2016 and was free on bond awaiting sentencing when the couple fled. Judge Staton imposed the 20-year sentence while the Morrows were living as fugitives, finding that the intended loss from the scheme was more than $44 million.
Linda Morrow, who was the “executive director” of TMI in Rancho Mirage, admitted in court today that she participated in a scheme to defraud health insurance companies by submitting bills for procedures performed at the Morrow Medical Surgery Center that were billed as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs,” breast augmentations and vaginal rejuvenations. Morrow admitted that the scheme attempted to bilk insurance companies out of between $25 million and $65 million.
The victim insurance companies included Aetna, Anthem Blue Cross, Blue Shield of California and Cigna Health Insurance. The scheme also defrauded Staples, Inc. and a self-insured group of public entities that included school districts. To pursue payment for some of the fraudulent surgeries when they were not paid, TMI filed claims of $10,931,237 against the Desert Sands Unified School District; $4,199,862 against the Palm Springs Unified School District; $1,341,519 against the City of Palm Springs; and $256,782 against the California Highway Patrol, according to court documents.
In April 2011, shortly after the FBI and California Department of Insurance executed a search warrant in the investigation, Morrow went to a former employee’s house to confront her on whether she had cooperated with law enforcement, according to the plea agreement.
To defraud the insurance companies into believing that the patients had undergone medically necessary procedures, the Morrows convinced patients to sign “testimonial” letters or declarations that had false statements, according to court documents. In her plea agreement, Morrow admitted that she coached employee patients to draft falsified testimonial letters and declarations.
Morrow also admitted in court today that she fled the United States to avoid prosecution and failed to appear in court as ordered. In addition to helping move $4 million from domestic bank accounts to accounts in Israel, Morrow used a fraudulent Mexican passport to enter Israel and a fraudulent Guatemalan passport while living there. Morrow also admitted that while she was living as a fugitive, she applied for Israeli citizenship using a fraudulent identity.
The FBI, IRS Criminal Investigation and the California Department of Insurance conducted the investigation into the Morrows and TMI. The FBI’s Legal Attachés in Jerusalem, Mexico City, and Guatemala; the Israeli National Police; the United States Marshals Service; the United States Border Patrol’s Northern Border Coordination Center; and the Department of Justice’s Office of International Affairs provided considerable assistance in tracking down and capturing the Morrows.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case. Assistant United States Attorney Robert Lester of the Financial Litigation Section of the Civil Division is enforcing restitution orders in this matter.
Former Alabama Correctional Lieutenant Sentenced for Failing to Intervene in Unlawful Inmate AssaultRead the Press Release
The Justice Department today announced that Willie M. Burks III, 41, a former Alabama Department of Corrections (ADOC) lieutenant, was sentenced in federal court to nine years’ imprisonment, with two years of supervised release to follow. Burks was convicted by a federal jury on July 21, 2021, of failing to stop an officer under his command from assaulting an inmate at ADOC’s Elmore Correctional Facility.
The evidence at trial established that on Feb. 16, 2019, former Correctional Sergeant Ulysses Oliver Jr., Burks’ subordinate, went to an observation room holding two handcuffed and unresisting inmates. Oliver, intending to punish the inmates for bringing contraband into the prison, pulled the first inmate from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to repeatedly strike the victim. Burks came into the hallway after Oliver had finished beating the first inmate. Burks then stood and watched as Oliver pulled the second inmate from the observation room, threw him on the floor, and beat the inmate with his feet and his collapsible baton. Despite having the duty, ability and opportunity to intervene to stop Oliver from beating the second inmate, Burks only stood by and said, “it’s fair.” Other ADOC correctional staff who reported to Burks were present for some or all of the assaults, but none intervened to stop Oliver from beating the inmates.
After the assault, Burks allowed Oliver to come back into the observation room where the victims were held. As Burks again stood by and did nothing, Oliver entered, stood over the victims, and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face.
Oliver and two other former corrections officers have pleaded guilty in connection with this incident. Oliver pleaded guilty to assaulting the two inmates on April 2, 2019. Former ADOC correctional officers Bryanna Mosley and Leon Williams pleaded guilty in May and July 2019, respectively, to failing to intervene to stop the assaults.
“Those working inside our jails and prisons have a duty to intervene in the face of unlawful and violent conduct being carried out by their colleagues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under the Constitution, correctional officers may not physically assault inmates for violations of prison rules, and any officials who see this happening must do what they can to stop it. The Department of Justice will vigorously prosecute officers who stand by and do nothing while other officers brutalize inmates in their charge.”
“The job of a correctional officer can be difficult and hazardous,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “A vast majority of them serve with honor and are dedicated to upholding their duty to protect and serve. Unfortunately, some choose to ignore their sacred oaths and engage in criminal conduct or turn a blind eye when others do so. This office will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“The unacceptable actions of Willie Burks in no way reflect the hard and tireless work of our corrections staff, who endeavor each day to provide a safe and rehabilitative environment for all incarcerated people,” said Arnaldo Mercado, the ADOC’s Law Enforcement Services Division’s Chief Law Enforcement Officer. “We condemn in the strongest possible terms Burks’ behavior and blatant violation of his sworn oath to serve. Any and all incidents such as this are thoroughly investigated and, if appropriate, referred to the proper prosecuting authority. We extend our thanks to the Department of Justice for their assistance in bringing forth justice in this case.”
“The mission to protect the civil rights of American citizens is a priority of the men and women of the FBI and does not end after incarceration,” said Acting Special Agent in Charge Bryan D. Duchene of the FBI’s Mobile Division. “The actions of the corrections officers in this case will not be tolerated and we are proud to be a part of bringing them to justice.”
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. Assistant U.S. Attorney Eric Counts of the Middle District of Alabama and Trial Attorneys Katherine DeVar and David Reese of the Civil Rights Division prosecuted the case.
Former Account Executive Charged with Stealing $3 Million from EmployerRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was charged with embezzling millions of dollars from a New Jersey-based company where she was the senior accountant, accounting manager and senior financial shared services manager, U.S. Attorney Philip R. Sellinger announced today.
Jennifer Vandever, 49, of Atco, New Jersey, is charged by indictment with four counts of wire fraud, one count of unauthorized use of access devices, one count of aggravated identity theft and four count of tax evasion. She appeared by videoconference today before U.S. Magistrate Judge Ann Marie Donio and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From 2011 to 2018, Vandever worked as a supervisor in Company 1’s accounting department. Vandever embezzled from Company 1 by charging significant amounts of personal expenses for herself and her family on the company’s corporate credit cards issued in the name of Individual 1 and on a department issued card. Vandever concealed her personal use of the corporate credit cards from Company 1 and directed payment of those personal expenses from corporate funds unbeknownst to her employer. The scheme totaled $3 million. For the four years 2015 through 2018, Vandever attempted to evade $514,801 of federal income taxes on $1.49 million of unreported embezzled taxable income.
Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. The count of unauthorized use of access devices is punishable by 10 years in prison and a maximum $250,000 fine. The count of aggravated identity theft is punishable by sentence of two years in prison, which must be served consecutively to any other term imposed, and a maximum of $250,000. The four counts of tax evasion are each punishable by five years in prison and a maximum $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to the indictment.
The government is represented by Senior Trial Counsel Jason Richardson of the Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed to be innocent unless and until proven guilty.
Florida Man Sentenced to Almost 9 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Florida man was sentenced to 107 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to information presented to the Court, on February 24, 2021, law enforcement officers stopped a vehicle driven by Vincente Aguirre, 30, in Jackson County, Mississippi. There was also a passenger, Ross Alger Medlin, in the vehicle. The vehicle was stopped for following too closely. A subsequent search of the vehicle led to the discovery of over 400 grams of suspected methamphetamine. Aguirre and Medlin were taken into custody.
The investigation revealed that Aguirre and Medlin had traveled to Texas from Florida to obtain the methamphetamine and were returning to Florida at the time of the traffic stop. The suspected methamphetamine was sent to the Drug Enforcement Administration’s Lab for analysis. The analysis indicated that the substance was in fact methamphetamine.
Aguirre pled guilty on September 28, 2021, to possession with intent to distribute methamphetamine. Medlin also pled guilty and is scheduled for sentencing on April 12, 2022.
The FBI and Ocean Springs Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
Florida Man Sentenced for Paying Bribes and Kickbacks and Defrauding the United StatesRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to 15 years in prison for orchestrating a bribery and kickback conspiracy and committing fraud in connection with a contract for the U.S. Department of Defense’s Office of Inspector General (DoD OIG).
According to court records and evidence presented at trial, beginning in 2010 and continuing through 2015, William S. Wilson, 56, of Florida, paid numerous kickbacks and bribes to a public official and two government contractors in return for those individuals corruptly steering business to Wilson’s Florida-based companies. Among other things, Wilson paid tens of thousands of dollars in bribes to Mathew Kekoa LumHo, 46, of Fairfax Station, then employed at the DoD OIG. In return, LumHo took official actions that benefitted Wilson’s companies. LumHo steered work to Wilson’s company by placing fraudulent service orders through a government contract that LumHo controlled.
The evidence presented at trial further proved that, over the same time period from 2010 through 2015, Wilson also paid numerous kickbacks to Ronald Capallia and Co-conspirator 1, then employees for a telecommunications company that was a prime contractor to the government. Wilson paid these kickbacks Capallia and Co-conspirator 1 to cause them to steer work and provide favorable treatment to Wilson’s companies as subcontractors to the telecommunications company.
One of the key subcontracts steered to Wilson’s company related to a prime contract between the telecommunications firm and the DoD OIG, in which the telecommunications firm was supposed to supply various information technology-related services to the government. Wilson’s company was awarded this subcontract despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed.
Wilson frequently disguised the bribes and kickbacks to Capallia, LumHo, and Co-conspirator 1 through fake invoices for services that were never provided, or by masking the payments as payroll to relatives of Capallia and LumHo for jobs that did not in fact exist.
As the scheme progressed, the co-conspirators caused the government to submit numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items being provided as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized information technology-related services. The co-conspirators also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby causing the government to pay for the very bribes that Wilson was sending to LumHo.
The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. Wilson threatened to murder Capallia and his family members by slitting their throats if Capallia ever testified on behalf of the government.
Co-conspirator Ronald A. Capallia, Jr., pleaded guilty on January 25, 2018, to his role in the conspiracy and was sentenced to one year and one day of imprisonment on September 14, 2021. Co-defendant Matthew Kekoa LumHo was convicted at trial and sentenced to 90 months in prison on January 14, 2022. Today, defendant William S. Wilson was sentenced to 15 years in prison.
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 Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg prosecuted 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. 1:17-cr-222.
Federal Court Shuts Down South Florida Tax PreparersRead the Press Release
On Feb. 3, a federal court in the Southern District of Florida permanently enjoined two North Lauderdale tax return preparers and their business from preparing federal income tax returns or operating any tax return preparation business in the future. It also ordered the tax preparers to pay $353,000 in disgorgement to the United States.
The civil complaint filed in the case alleged that Wendell Devallon and Berald Dominique, co-owners of Tax Time Group Inc., prepared tax returns for customers that claimed fraudulent self-employment expenses, fictitious education credits, false fuel tax credits and fake charitable contributions, among other schemes. The complaint also alleged that Devallon and Dominique acted as “ghost” preparers, meaning that they acted as paid tax return preparers but did not sign the returns they prepared, as required by law.
In a June 2021 order, the court found the defendants in contempt for violating a preliminary injunction that restricted their tax preparation activities while this case was pending. Devallon, Dominique and Tax Time Group consented to entry of the court’s contempt order and admitted that sufficient evidence existed to show that they had violated the preliminary injunction. In August 2021, the court entered an order requiring the defendants to pay $211,000 in sanctions for their violations of the preliminary injunction.
Yesterday’s permanent injunction, to which Devallon, Dominique and Tax Time Group consented, forever bars them from any involvement in the preparation of federal tax returns. They must immediately close and cease all operations at any Tax Time Group office location, including the company’s North Lauderdale offices located at 995 Rock Island Road and 1675 S State Rd 7. They must also pay an additional $142,000 to the United States for their fraudulent return preparation activities that pre-dated the complaint. The permanent injunction requires Devallon and Dominique to give up their ownership of the “Tax Time Group” brand. If they sell the business, all proceeds will be applied to the $353,000 they must pay the United States. If Devallon, Dominique or Tax Time Group is found to have prepared another return, they must pay the United States $2,000 plus any fees they received for preparing the return.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Faulkton Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Dennis Holmes announced that a Faulkton, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on February 3, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Frank Daniel Facinelli, age 50, was sentenced to 60 months in federal prison, followed by four years of supervised release, a fine in the amount of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Facinelli was indicted by a federal grand jury on February 8, 2021. He pled guilty on November 4, 2021.
The conviction stemmed from a conspiracy beginning no later than October 1, 2020, wherein Facinelli was involved with others outside of South Dakota to distribute 50 grams or more of methamphetamine in and around Faulkton, South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the U.S. Postal Inspection Service, the South Dakota Division of Criminal Investigation, and the Faulk County Sheriff’s Office. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Facinelli was immediately turned over to the custody of the U.S. Marshals Service.
Ex-Deportation Officer Sentenced to 15 Months in Federal Prison for ‘Structuring’ Assets to Conceal Them During Divorce ProceedingsRead the Press Release
LOS ANGELES – A former deportation officer with the Department of Homeland Security was sentenced today to 15 months in federal prison for “structuring” charges for making cash withdrawals and deposits totaling nearly $200,000, which were designed to circumvent federal reporting requirements and to conceal assets from his then-wife and the state court during divorce proceedings.
Vardan Keshishyan, 50, of Glendale, was sentenced by United States District Judge Philip S. Gutierrez.
At the conclusion of a three-day trial in September 2021, a federal jury found Keshishyan guilty of two counts of structuring of currency transactions to evade reporting requirements.
Shortly after his then-wife filed for divorce in November 2014, Keshishyan began structuring nearly $100,000 out of his bank accounts to deceive the court into believing he only had $1,000 in assets that could be distributed during the divorce.
In January 2015, Keshishyan deposited approximately $96,000 from the sale of the home he shared with his then-wife into a bank account he solely owned and controlled. He then withdrew $99,400 from his bank accounts by making 11 cash withdrawals of approximately $9,000 – each withdrawal just shy of the bank’s mandatory reporting requirements for cash transactions above $10,000.
During one attempted withdrawal, a bank manager warned Keshishyan that it was a crime to break up a cash transaction greater than $10,000 into smaller amounts to evade the bank’s reporting requirements mandated by federal law. After the manager informed Keshishyan that the bank planned to file a report to comply with federal law, he cancelled the transaction. He then continued his pattern of structured transactions elsewhere to avoid the filing of any report required under federal law.
Once he had drained his bank accounts, according to evidence at trial, Keshishyan lied under oath to the court at a June 2015 hearing in his divorce case, falsely telling the court he had lost $95,000 of the family home sale proceeds, in part, through a bad investment. Upon learning that Keshishyan had withdrawn the funds in cash progressively over time, the court warned him that his pattern of cash withdrawals was “not permitted.”
Despite these admonishments from the court and the bank manager’s warning about the illegality of structuring, Keshishyan continued to structure to sneak the money back into his accounts. Once he and his then-wife settled on the terms of the divorce, he started structuring $99,000 back into his bank accounts. In 2016 and 2017, he visited multiple banks, sometimes just minutes apart, to make 11 cash deposits of $9,000 each.
To conceal his pattern of cash transactions just shy of the $10,000 reporting requirement, he traveled to 11 bank branches throughout Los Angeles County to make the cash transactions and tried to further conceal his conduct using multiple accounts at multiple banks.
“Despite [Keshishyan’s] oath to upload the law, he willfully and repeatedly chose to break it…and then tried to cover [up his crimes] through perjury and deceit,” prosecutors wrote in a sentencing memorandum. “[Keshishyan] violated the law after not one, but two, warnings that what he was doing was illegal. One of those warnings even came from a state court judge, and yet, even that admonishment was not enough to deter [Keshishyan].”
The United States Department of Homeland Security Office of Inspector General investigated this matter.
Assistant United States Attorneys Lindsey Greer Dotson and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case.
Duval Felon Sentenced to Eighteen Months for Attempting to Purchase FirearmRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Jose Angel Vazquez (60, Jacksonville) to 18 months in federal prison, followed by 3 years of supervised release, for knowingly making a false statement to a federally licensed firearms dealer. Vazquez had pleaded guilty on November 3, 2021.
According to court documents, Vazquez attempted to purchase a handgun from a federally licensed firearms dealer on October 31, 2020. Vazquez falsely stated on the required ATF Form 4473 that he was not a felon, when in fact he had numerous prior felony convictions, including aggravated assault, felony petty theft, possession of an anti-shoplifting device countermeasure, possession of a controlled substance, grand theft, resisting a police officer, burglary, and possession of burglary tools.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is 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.
Dominican Republic National Operator of the Underground Nightclub in St. Thomas Sentenced to Six and a Half Years and Ordered to Pay over $900,000 in RestitutionRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced that Yohanna Gonzalez-McFarlane, 40, of the Dominican Republic, appeared before Chief District Court Judge Robert A. Molloy and was sentenced on three counts of bringing illegal aliens to the United States for financial gain and for one count of transportation for prostitution.
Chief Judge Molloy sentenced Gonzalez-McFarlane to 78 months imprisonment, followed by ten years of supervised release. In addition, the Court ordered Gonzalez-McFarlane to pay a total of $942,007 in restitution, $400 in special assessments, as well as $20,000 in additional special assessments pursuant to the Justice for Victims of Trafficking Act of 2015.
Chief District Judge Molloy described Gonzalez-McFarlane’s admitted conduct – recruiting and harboring vulnerable women to work as prostitutes for her financial gain – as "heinous," pointing out that her offense involved profiting from twelve different women, one of whom had been only seventeen at the time Gonzalez-McFarlane recruited her.
"Human smuggling and the intentional manipulation of vulnerable women against their will cannot be tolerated," U.S. Attorney Shappert said. "We are grateful for the hard work of our law enforcement partners who exposed this crime and brought the defendant to justice."
This case was investigated by the Department of Homeland Security Investigations, the Federal Bureau of Investigation, and assisted and supported by the Virgin Islands Police Department, United States Marshals Service, United States Postal Investigative Service, Drug Enforcement Administration, and Customs and Border Protection. Assistant United States Attorney Meredith Edwards prosecuted the case.
Dominican Drug Lord Extradited to the United States from Sint Maarten to Face Drug Trafficking ChargesRead the Press Release
SAN JUAN, Puerto Rico – Dominican drug lord Justo Germán Rosario (CPOT No. 64), also known as “Papín,” was indicted, arrested, and extradited to the United States to face drug trafficking charges filed in the District of Puerto Rico.
“This extradition is another important step in our fight against drug trafficking and transnational organized crime,” said U.S. Attorney W. Stephen Muldrow. “Over the past years, the District or Puerto Rico has established stronger partnerships with our neighboring countries in many areas of law enforcement, including extraditions. We will continue to strengthen those partnerships.”
Rosario was the leader of a transnational criminal organization (TCO) suspected of importing thousands of kilograms of cocaine into Puerto Rico from several strategic sites within the Caribbean, to include the Dominican Republic and Sint Maarten.
On July 15, 2020, a Federal Grand Jury in the District of Puerto Rico returned an indictment against Rosario, charging him with conspiracy to import cocaine into the United States (count one). Count two of the indictment charges the defendant with importing five kilograms or more of cocaine into the United States from Venezuela, Sint Maarten, the Dominican Republic and elsewhere, from February to December 2017.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) operation “Neptune Trident,” with the collaboration of the U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and U.S. Customs and Border Protection. The OCDETF program identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The Attorney General designated Rosario as an OCDETF Consolidated Priority Organizational Target (CPOT) in 2019. The Attorney General’s (AG) Interagency CPOT list is comprised of leaders who exercise “command and control” of the elements of the most prolific drug trafficking/money laundering organizations that have the greatest impact on the United States’ illicit drug supply. The CPOT list represents the “most wanted” of the cartel leadership and ensures that the full capabilities of the U.S. government are focused, in a coordinated and clear manner, on a group of agreed-upon high-level targets.
Agents assigned to the Caribbean Corridor Strike Force (CCSF) have been investigating Rosario’s drug trafficking organization (DTO) since 1994.
The CCSF is a multi-agency OCDETF strike force comprised of federal and state law enforcement agencies, including the DEA, Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), FBI, U.S. Coast Guard Investigative Service (CGIS), and the U.S. Marshals Service, with the collaboration from the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, FURA, U.S. Customs and Border Protection, U.S. Border Patrol, and the IRS Criminal Investigation.
The case is being prosecuted by Assistant U.S. Attorney Max J. Pérez-Bouret, Chief of the Transnational Organized Crime Section, and Assistant U.S. Attorney Camille García. Charges were originally presented by AUSA Kelly Zenón. The Justice Department’s Office of International Affairs worked with law enforcement partners in St. Maarten to secure the arrest and extradition of Rosario to the United States.
If convicted, Rosario faces a possible sentence of 10 years and up to life in prison.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Richard Kirkland Johnson, of Detroit, Michigan, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Johnson, 25, pleaded guilty today to one count of “Possession with Intent to Distribute Fentanyl.” Johnson admitted to having fentanyl in September 2020 in Monongalia County.
Johnson faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative; and the Monongalia County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Des Moines Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DES MOINES, IOWA – On Thursday, February 3, 2022, Tyler Luke Critchlow, age 28, of Des Moines, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 144 months in prison for distributing a controlled substance which resulted in death. Critchlow previously pleaded guilty to the charge.
In the early morning hours of May 3, 2020, members of the Des Moines Police Department were dispatched to a Motel 6 in Des Moines for a suspected drug overdose. Medics attempted life-saving techniques, but the victim was ultimately pronounced dead at the scene. Investigators with the Des Moines Police Department Vice-Narcotics Unit reviewed numerous phone records, including text messages and Facebook messages, reviewed surveillance, and made contact with the victim’s friends and family, which led officers to Critchlow. Investigators were able to determine that Critchlow distributed a heroin and fentanyl mixture to the victim the evening prior, on May 2, 2020.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by the Des Moines Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bosque Farms man pleads guilty to assault and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Everett Paquin, 59, of Bosque Farms, New Mexico, and an enrolled member of the Pueblo of Isleta, pleaded guilty on Feb. 3 in federal court to assault with a dangerous weapon and being felon in possession of a firearm and ammunition. Paquin will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Paquin on April 22, 2021. According to the plea agreement and other court records, Paquin assaulted his then-girlfriend, identified in court records as Jane Doe, at his home on the Pueblo of Isleta. Paquin admitted to pushing, slapping, punching and kicking the victim, as well threatening and injuring her with a utility knife. During the assault, Paquin would not allow the victim to leave and repeatedly threatened her and her family with harm and death. Jane Doe is also an enrolled member of the Pueblo of Isleta.
At the time of the assault, Paquin possessed a loaded shotgun in his home. As a convicted felon, Paquin could not legally possess a firearm or ammunition.
By the terms of the plea agreement, Paquin faces three years and five months in prison.
The Isleta Police Department investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
Bayamón Psychologist Indicted and Arrested for Attempted Coercion and Enticement of a MinorRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned an indictment charging psychologist Samuel Pérez-Figueroa with attempted coercion and enticement of a minor and attempted receipt of child exploitation material, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation.
According to the information contained in the indictment, from October 15, 2021, until October 27, 2021, Pérez-Figueroa used a cellular phone, as well as internet instant messaging services, to knowingly attempt to persuade, induce, entice, and coerce a fifteen-year-old female minor to engage in sexual activity. Defendant Pérez-Figueroa, using his cellular phone which had internet capabilities, attempted to receive images depicting a female minor engaged in sexually explicit conduct for which any person may be charged with a criminal offense, including the production of child pornography.
The U.S. Attorney’s Office and the FBI encourage other potential victims to come forward if you have knowledge that this defendant or any other adult has engaged in this type of criminal behavior. If you or anyone you know has been the victim or a witness to this or any other federal crime, please call (787) 987-6500 or visit tips.fbi.gov. Tipsters may remain anonymous.
If convicted of all counts, Pérez-Figueroa faces a mandatory minimum sentence of 10 years of imprisonment to life, followed by a term of supervised release of 5 years to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Attorney and Chief of the Child Exploitation and Immigration Unit, Jenifer Y. Hernández-Vega is in charge of the prosecution of 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.
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Barrio Azteca Gunmen Who Committed Consulate Murders in Ciudad Juarez Found Guilty on All CountsRead the Press Release
A federal jury in Texas yesterday convicted two members of the violent street and prison gang, Barrio Azteca, on all counts related to the murders of a U.S. Consulate employee, her husband, and the husband of another U.S. Consulate employee.
Jose Guadalupe Diaz Diaz, aka Zorro, 43, of Chihuahua, Mexico, and Martin Artin Perez Marrufo, aka Popeye, 54, of Chihuahua, Mexico, were found guilty at the conclusion of a 13-day jury trial before U.S. District Judge Kathleen Cardone in the Western District of Texas, El Paso Division. The jury found Diaz and Marrufo guilty of conspiracy counts for racketeering, narcotics trafficking, narcotics importation, money laundering, and murder in a foreign country; three counts of murder in aid of racketeering, and three counts of murder resulting from use and carrying of a firearm during and in relation to crimes of violence and drug trafficking.
Evidence presented at trial demonstrated that on March 13, 2010, Diaz and Marrufo served as gunmen on the hit teams that murdered U.S. Consulate employee Leslie Enriquez, her husband, Arthur Redelfs, and Jorge Salcido Ceniceros, the husband of another U.S. Consulate employee. The victims were targeted by the hit teams after departing from a child’s birthday party in Juarez because they were mistaken initially for rival gang members. Diaz shot and killed Enriquez and Redelfs. Marrufo shot and killed Ceniceros.
“The murders of Leslie Enriquez, Arthur Redelfs, and Jorge Salcido Ceniceros are a tragedy,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These convictions demonstrate the Department’s commitment to combating violent transnational criminal organizations. I want to thank the Mexican Government for its cooperation including extraditing both defendants to the United States to face criminal charges.”
“Although 12 years have passed since these senseless murders, our office has only strengthened its resolve to seek justice for victims of cartel violence,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “These guilty verdicts demonstrate the diligent pursuit of our prosecutors and our commitment to protecting communities from ruthless brutality.”
“These convictions represent the FBI’s commitment to take aggressive action against anyone who takes the lives of innocent American citizens,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Even the most ruthless criminals, whether here or afar, cannot evade justice, and we will continue to hold those accountable who commit brutal acts of violence.”
“Today’s convictions serve as a stark warning to all drug traffickers that we will pursue and prosecute any and all who compromise the safety and health of Americans and those who support our U.S missions abroad,” said DEA Administrator Anne Milgram. “The hardworking women and men of DEA will continue to work with our domestic and global partners to rid our communities of the intimidation, violence, and drug abuse these criminal drug networks inflict.”
At trial, prosecutors presented evidence that Barrio Azteca is a transnational criminal organization engaged in money-laundering, racketeering, and drug-related activities in El Paso, Texas. The gang allied with other drug gangs to battle the Sinaloa Cartel, at the time headed by Chapo Guzman, and its allies for control of the drug trafficking routes through Juarez, Chihuahua, Mexico. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because it is a principal illicit drug trafficking route into the United States.
A total of 35 defendants were charged in the third superseding indictment and are alleged to have committed various criminal acts, including the 2010 Juarez Consulate murders in Juarez, Mexico, as well as racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, murder, and obstruction of justice. Of the 35 defendants charged, all have been apprehended and 28 have pleaded guilty. One was convicted by trial, one committed suicide before the conclusion of his trial and three are awaiting extradition from Mexico.
Diaz was extradited from Mexico on Nov. 13, 2019 and Maruffo was extradited from Mexico on Jan. 18, 2020. The extraditions were the result of close coordination between U.S. and Mexican law enforcement authorities, who also cooperated in the investigation and prosecution of this case.
Sentencing is scheduled for May 9. Diaz and Maruffo face a mandatory minimum sentence of life in prison.
Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Christina Taylor of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Steven Spitzer of the Western District of Texas are prosecuting the case. The U.S. Attorney’s Office for the District of New Mexico and the Criminal Division’s Offices of International Affairs and Enforcement Operations provided significant assistance in this case.
The FBI’s Safe Streets Task Force located at the Texas Anti-Gang Center in El Paso, FBI Albuquerque Field Office, DEA Juarez and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Department of State's Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico provided valuable assistance.
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Baltimore Man Facing Federal Arson Charges for Allegedly Setting a House on Fire While Three People Were InsideRead the Press Release
Baltimore, Maryland – A federal criminal complaint was filed yesterday charging Luther Moody Trent, age 21, of Baltimore, Maryland, for a federal charge of malicious destruction of property used in and affecting interstate commerce by fire, in connection with an arson at the rented home of his former girlfriend.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian S. Geraci; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Niles R. Ford of the Baltimore City Fire Department.
According to the affidavit filed in support of the criminal complaint, on May 21, 2021, at approximately 1:30 a.m., a fire was reported at a residence in the 1900 block of Linden Avenue in Baltimore. The fire moved along the exterior and into the rear of the residence where it set a raised wooden deck ablaze, and then moved inside the building, doing substantial damage to the residence, as well as damaging the adjoining property. The home was rented to three individuals, Victim 1, Victim 2, and Victim 3, all of whom were in the residence at the time of the fire. Baltimore Fire Investigators determined that the fire was intentionally set and that the origin of the fire was under the wooden deck in the back of the residence.
A Baltimore Police detective interviewed Victim 1 shortly after the arson. Victim 1 told the detective about threatening text messages she had received from Trent, with whom she had prior volatile romantic relationship, resulting in police being called on at least one occasion. An order of protection had also been issued in favor of Victim 1. The detective was able to find video of a prior incident with Trent and Victim 1 in March 2021. Upon viewing Trent in the video, the detective realized that Trent had approached him earlier at the scene of the arson and identified himself as “Trey Johnson.” At the time, Trent was shirtless, wearing glasses and jeans, and inquired about his cousin, whom he claimed resided in the residence. The detective noted that “Trey Johnson” was acting nervous and left the scene shortly thereafter driving a two-door black Honda Accord. Victim 1 confirmed that Trent drives a two-door black Honda and indicated that his cousin had not lived at the residence in several months.
Law enforcement recovered video surveillance recordings from a variety of sources and vantage points in the area of the fire. In one surveillance video, a figure is seen walking up the street toward the residence at approximately 1:30 a.m., just prior to the fire. Two minutes later, just after the fire was set, an individual, who appears to be shirtless, is seen running down the street, away from the residence. Other video surveillance footage shows a black two door Honda circling the area after the fire.
If convicted, Trent faces a mandatory minimum sentence of five years and maximum sentence of 20 years in federal prison for malicious destruction of a commercial property by fire. 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. Trent is currently detained on related state charges. An initial appearance in U.S. District Court has not yet been scheduled.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the ATF, the Maryland State Fire Marshal’s Office, the Baltimore Police Department, and the Baltimore City Fire Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Bakersfield Resident Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
FRESNO, Calif. — Sabino Ramos, 46, of Bakersfield, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 8, 2021, as Ramos was driving in Bakersfield, law enforcement officers attempted to stop him in order to serve an arrest warrant for probation violations. Ramos led officers on a high-speed chase, reaching speeds up to 90 mph, before losing control of his vehicle while exiting Highway 99 at Ming Avenue. Ramos then ran from pursuing officers but was eventually subdued. Ramos was found to be in possession of two handguns and approximately 30 rounds of ammunition. Ramos may not lawfully possess firearms or ammunition because of his prior felony convictions, including convictions in 1995 for assault with firearm on a person and in 2017 for possessing controlled substances for sale.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Ramos is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on April 29, 2022. Ramos faces a maximum term of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This 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.
Bakersfield Resident Pleads Guilty for Attempting to Sell FentanylRead the Press Release
FRESNO, Calif. — Keisean Rockmore, 27, of Bakersfield, pleaded guilty today to possession with the intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 19, 2021, Rockmore drove co-defendant Adrian Rodriguez Cardenas, 21, also of Bakersfield, and a third passenger to a fast-food restaurant parking lot in Bakersfield to meet with and sell to a customer 1,000 counterfeit OxyContin/oxycodone pills containing fentanyl for the negotiated price of $2,900. During the meeting, when the customer asked the vehicle occupants whether they had the pills, Rockmore motioned towards a bag on his lap and stated that he had it. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the customer when a dispute arose during the transaction. Rockmore then fled in his vehicle with Cardenas and the third passenger to a nearby apartment complex, where they exited the vehicle and attempted to elude pursuing law enforcement officers. After law enforcement officers found and arrested Rockmore, Cardenas and the other accomplice at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Christopher D. Baker and Justin J. Gilio are prosecuting the case.
Rockmore is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on April 29, 2022. Rockmore faces a maximum term of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cardenas is charged with additional counts of conspiracy to distribute fentanyl and distribution of fentanyl. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
HARRISBURG – U.S. Attorney John C. Gurganus announces that U.S. Attorney General Merrick B. Garland released the Justice Department’s new National Strategy to Combat Human Trafficking this week pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
“Human traffickers prey on vulnerable citizens using manipulation, false promises, and at times sheer force to ensnare victims into commercial sexual exploitation or forced labor,” said U.S. Attorney John C. Gurgan. "With our federal, state, and local partners, we are dedicated to bringing these criminals to justice and devoted to providing victims with the necessary resources available to them.”
An example of these efforts in the Middle District of Pennsylvania are as follows:
- U.S. v. Faizal Bhimani and Om Sri Sai, Inc. Om Sri Sai, Inc., a company that owned and operated a Howard Johnson hotel located in Bartonsville, PA, and Faizal Bhimani, the general manager of that hotel, were both convicted by a jury on October 23, 2020, of aiding and abetting sex trafficking by force, fraud, and coercion, and sex trafficking conspiracy, as well as drug trafficking conspiracy and managing a drug-related premises. It is noted that this is the first time a hotel and a hotel general manager have been convicted of criminal sex trafficking offenses for aiding others to engage in that activity in Pennsylvania. Both defendants are currently scheduled for sentencing hearings in February 2022.
- U.S. v. William Battle. A 29-year-old East Stroudsburg, Pennsylvania man was sentenced to 210 months’ imprisonment on February 26, 2021, for participating in a conspiracy that forced or coerced women to engage in prostitution in northeastern Pennsylvania. Battle’s conviction and sentence resulted from an investigation into the activities of a street gang known as the “Black P-Stones.” Females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various area hotels/motels to work as prostitutes. Gang members, including Battle, used threats, force, drugs, and intimidation to coerce females to engage in prostitution. The leader of the Black P-Stones, Sirvonn Taylor, was previously sentenced to 20 years’ imprisonment. Other high-level gang members that have been sentenced in the case include: Jose Velasquez—17 ½ years’ imprisonment; Jamiell Sims—12 ½ years’ imprisonment; Arthur Taylor—7 years’ imprisonment; and Jordan Capone—7 years’ imprisonment.
U.S. Attorney Gurganus encourages the community to be aware of indicators of trafficking and report suspicious activity. Recognizing key indicators is the first step in identifying victims and can help save them.
Indicators of human trafficking can include the following:
- An individual with an inability to produce identification or other documents because they are in a third party’s possession and control.
- An individual who is unable to freely contact friends or family.
- An individual who is coached on what to say to law enforcement or other authority figures.
- An individual who lacks knowledge or awareness as to what happens to the money they earn/are supposed to earn.
- An individual who lacks knowledge or awareness as to how much money they earn.
- An individual who is unable move or travel freely.
- Garnishment of a salary to pay off a fee imposed by their employer.
- Juveniles engaged in commercial sex.
- Frequent visits to the emergency department.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
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3 February 2022
White River Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man convicted of Third Degree Burglary was sentenced on February 2, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Kurt Bartlett, age 28, was sentenced to time served from his arrest on July 9, 2020, through March 3, 2022, equal to approximately 20 months in custody, followed by three years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and $6,275.52 in restitution.
Bartlett was indicted by a federal grand jury on February 8, 2021. He pled guilty on November 14, 2021.
The conviction stemmed from an incident that occurred in the early morning hours of July 9, 2021, in Mission, South Dakota, wherein Bartlett broke into and burglarized the Todd County School District Bus Shop. Bartlett used a pickup truck that was parked in the shop to break open a garage door and an outside gate. He then stole a Chevrolet Suburban that was parked in the shop and drove away. Bartlett and the Suburban were located later that day by Mellette County Sheriff’s Office Deputies in White River. Bartlett was arrested on an outstanding warrant for a state parole violation. He was questioned and admitted to stealing the Suburban.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Mission Police Department, and the Mellette County Sheriff’s Office. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Bartlett was immediately turned over to the custody of the U.S. Marshals Service.
Waukesha County Neurologist Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Richard G. Frohling for the Eastern District of Wisconsin announced that on February 3, 2022, Sean A. Jochims (age: 51) formerly of Pewaukee, Wisconsin, was sentenced by U. S. District Judge J.P. Stadtmueller to four years in federal prison, to be followed by five years of supervised release. As part of his sentence, Jochims must also comply with sex offender registry requirements, which mandate that he must notify registry officials where he is living, working, or attending school.
At sentencing, Judge Stadtmueller emphasized the serious nature of the offense and its impact on the children who are sexually abused in order to fuel the child pornography industry. He noted, “The victims are the most precious resources we have in our society . . .The FBI has the technology and the resources to investigate these cases because we can’t tolerate this behavior in our society.”
This case was investigated by the Milwaukee Division of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Megan J. Paulson and Abbey M. Marzick.
This case was also brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. The Victim Services division of the U.S. Attorney’s Office may be reached at (800) 680-8949 for further information and support.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Waterbury Man Sentenced to 5 Years in Federal Prison for Role in Heroin and Fentanyl Trafficking RingRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that BRYAN VINALES, also known as “Tiano,” 25, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for his role in a heroin and fentanyl trafficking ring.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.
On May 18, 2019, Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge. On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin. Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
During the investigation, Jeffrey Tavarez was intercepted on calls coordinating the purchase of heroin and fentanyl from both the Sosa-Ortiz organization and from other individuals who sometimes supplied the Sosa-Ortiz organization with narcotics. Vinales worked with Tavarez to acquire the drugs and then distribute them to their own customers.
Tavarez and several co-defendants were arrested on October 29, 2019. On that date, investigators executed five search warrants and seized approximately six kilograms of heroin and fentanyl, approximately 100,000 bags of heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash. Tavarez possessed nearly 40 grams of fentanyl packaged for distribution at the time of his arrest.
Vinales, who was not arrested on October 29, 2019, continued to distribute narcotics after Tavarez’s arrest. In February 2020, investigators made controlled purchases of approximately 60 grams of fentanyl from Vinales.
Vinales was arrested on July 15, 2020. On July 23, 2021, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin and fentanyl.
Seventeen individuals were charged as a result of this investigation. Sosa-Ortiz and Tavarez pleaded guilty. Sosa-Ortiz awaits sentencing, and Tavarez was sentenced to 48 months of imprisonment.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Lauren Clark through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington, D.C. Man Sentenced to Five Years in Federal Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Devell Lincoln, age 56, of Washington, D.C. to five years in federal prison, followed by three years of supervised release, for conspiring to commit theft of public money, theft of public money and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Sally Luttrell, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to court documents and the evidence introduced at trial, from 2011 to 2013, Devell Lincoln conspired with Stephanie Twyman and others to cash tax refund checks fraudulently obtained by filing false federal income tax returns in the names of other individuals with the IRS. In total, the conspirators cashed more than $500,000 in fraudulent refunds at a check-cashing business and Lincoln deposited more than $150,000 in fraudulent refunds using bank accounts under his control.
From 2011 to 2013, false federal income tax returns were filed with the IRS using the names and Social Security numbers of unwitting taxpayers and seeking fraudulent refunds. When the refunds were received, Lincoln and his co-conspirators cashed the checks at a check-cashing business. In addition, from 2010 to 2014, Lincoln deposited fraudulent refunds into bank accounts under his control. While two of these accounts were in Lincoln’s name, one bank account was held in the name of a third-party, who was deceased, and one was in the name of a company registered under the deceased person’s name, with the deceased person as the signatory.
United States Attorney Erek L. Barron commended the Internal Revenue Service-Criminal Investigations, the U.S. Department of the Treasury - Office of Inspector General, and the Justice Department’s Tax Division for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jessica C. Collins, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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United States Attorney Announces over $880,000 Recovery for Victims of Real Estate Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office announced today that $884,755 recovered from forfeited assets of Scott J. Wolas will be distributed to his victims. The United States Attorney’s Office expressly sought permission to have the forfeited assets directly applied to victim restitution, which was granted by the Department of Justice.
Wolas, who had been a fugitive for more than 20 years prior to his arrest in April 2017, was convicted in 2018 of seven counts of wire fraud, one count of aggravated identity theft, one count of misuse of a Social Security number and one count of tax evasion in connection with $1.9 million real estate investment fraud scheme in Quincy.
“My office will diligently pursue financial recovery for our crime victims—even years after someone has been convicted and sentenced, we will continue our pursuit,” said United States Attorney Rachael S. Rollins. “These ill-gotten gains have finally been recovered and our efforts send an important message that crime does not pay.”
In January 2019, Wolas was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 81 months in prison, three years of supervised release and ordered to pay $1,949,813 in restitution to the victims of his fraud scheme. Chief Judge Saylor also ordered Wolas to pay $69,768 in restitution to Social Security and Medicare, $318,266 in restitution to the IRS and entered a forfeiture money judgment of $1,949,813.
From at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune Inc. and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property on Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.9 million from at least 24 investors and promised each of them a significant return on their investments. He further promised to pay out at least 125% of the profits related to the single-family home construction. However, Wolas used the money mostly for personal expenses unrelated to development of the real estate projects.
Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real Eugene Grathwohl resided in Florida and was known to Wolas.
On Nov. 17, 2016, law enforcement officers interviewed Wolas’ ex-wife, Cecily Sturge, of Delray Beach, Fla., who stated that she had not been in contact with her ex-husband for approximately 15 years, since their divorce in 2001. Further investigation determined this was false and that Wolas had stayed at a condo rented under Sturge’s name five days prior to her interview with law enforcement. Sturge later pleaded guilty to making a materially false statement to a federal agent and was sentenced in May 2018 to one year of probation.
Prior to her conviction, Sturge filed a petition with a Florida court in February 2017 to modify the 2001 divorce judgment to obtain the contents of Wolas’ retirement account. At the time Sturge filed the petition, Wolas’ retirement account had a balance of approximately $647,000 from the law firm where he worked prior to being indicted in 1997 by New York authorities. Sturge had previously tried to obtain the retirement account by claiming Wolas was dead, but in 2016, Wolas suggested that they amend the divorce decree to get access to the account. Law enforcement established that Wolas had drafted the petition to modify the divorce judgment to transfer the contents of Wolas’ retirement account to Sturge. The petition that Wolas drafted and Sturge signed falsely stated that Sturge did not know Wolas’ whereabouts. After Wolas’ arrest, he and Sturge continued to discuss the transfer of the retirement account during jail calls and using thinly veiled code words.
After the Florida court allowed Sturge’s petition, but before the account was transferred to her, the U.S. Attorney’s Office restrained the retirement account and moved to forfeit it. Sturge opposed forfeiture, claiming ownership of the retirement account. In February 2021, Chief Judge Saylor issued a 39-page memorandum and order finding that the transfer of the retirement account to Sturge was a fraudulent transfer and granted the government’s motion to deny her ownership claim. As a result, the retirement account was liquidated and $884,755 was turned over to the United States. The United States Attorney’s Office then sought permission to have the forfeited assets applied to victim restitution, which was granted by the Department of Justice’s Money Laundering and Asset Recovery Section in January 2022.
United States Attorney Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Carol E. Head, Chief of Rollins’ Asset Recovery Unit, handled the forfeiture litigation.
United States Attorney Announces Belcourt, ND, Man Sentenced to Seven years in Federal Prison for CarjackingRead the Press Release
FARGO - United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced John Thomas Poitra, age 32, Belcourt, ND, to 7 years in federal prison for carjacking,18 U.S.C. § 2119. Chief Judge Welte also sentenced Poitra to three years supervised release, a $100 Special Assessment, and restitution of $496.24 to the victim of the carjacking and $1,188.00 to the Minnesota Counties Intergovernmental Trust (police vehicle damages).
On March 17, 2020, at 4:20 p.m., John Thomas Poitra, was walking in the area of 6th Avenue North and 8th Street North in Fargo, ND, when he approached someone who had just parked a Chevy Silverado pickup truck and demanded the keys to the pickup and threatened to stab the owner. Poitra then fled the area in the stolen Silverado pickup striking a vehicle as he fled. After receiving notification of the carjacking, the Fargo Police Department observed Poitra driving against traffic south on 10th Street in Fargo, ND, where he continued to flee south, striking at least two vehicles. The Fargo Police Department and North Dakota State Highway Patrol followed Poitra east on I-94, where Deputies from the Clay County Sheriff’s Office stopped and arrested Poitra approximately one-half mile east of 34th Street, Moorhead, MN.
Poitra plead guilty to one count of carjacking on September 30, 2021.
"Car jackings strike at the heart of a community’s sense of safety and security, and we hope today’s strong sentence will cause anyone to think twice before taking advantage of an unsuspecting victim targeted simply because of the type of car they drive,” said FBI Special Agent in Charge Michael Paul. “I want to thank our local partners for their quick work on this case which helped ensure Mr. Poitra’s joyride took him straight to federal prison.”
This case was investigated by the Federal Bureau of Investigation, Fargo Police Department, North Dakota Highway Patrol, and Clay County Sheriff’s Office, and the case is being prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Matthew Greenley assigned to the case.
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Two Hudson County Men Admit Roles in Scheme to use Drones to Smuggle Contraband into Fort Dix Federal PrisonRead the Press Release
NEWARK, N.J. – Two Hudson County, New Jersey, men admitted their roles in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.
Nicolo Denichilo, 40, and Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” 37, both of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count each of conspiracy to defraud the United States Bureau of Prisons.
Two other men, Jason Arteaga-Loayza, and Johansel Moronta, have previously pleaded guilty to participating in the scheme to use drones to smuggle contraband into Fort Dix prison. Arteaga-Loayza pled guilty to his role in the scheme as well as to one count of possession of heroin and fentanyl with the intent to distribute. In September 2021, Judge Wigenton sentenced Arteaga-Loayza to 43 months’ imprisonment. On January 10, 2022, Moronta pled guilty before U.S. District Judge Madeline Cox Arleo to his participation in the scheme as well as to violating the conditions of his supervised release stemming from an earlier federal conviction and is pending sentencing on those charges.
According to the documents filed in this case and statements made in court:
Denichilo and Goolcharran participated in multiple drone deliveries of contraband into Fort Dix between November 2018 and March 2020. Arteaga-Loayza and Moronta, while they were federal prisoners at Fort Dix, arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments.
Denichilo, Goolcharran and their conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when it was dark outside, and the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones against the dark evening sky. Arteaga-Loayza and Moronta also used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops from Denichilo and Goolcharran.
Denichilo and Goolcharran each face a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing for Denichilo is scheduled for June 6, 2022, and for Goolcharran, June 9, 2022.
U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Superintendent Jonathan Jackson; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s guilty pleas.
He also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden Lamine N’Diaye; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; officers of the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; Pemberton Township Police Department, under the direction of Chief Jason Watters; and Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
Two Florida Residents Sentenced to Prison for COVID-19 Relief FraudRead the Press Release
A Florida woman was sentenced today to 44 months in prison for defrauding the Paycheck Protection Program (PPP) of more than $3.3 million in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Keyaira Bostic, 32, of Pembroke Pines, obtained a PPP loan of $84,515 for her company, I Am Liquid Inc., based on false information about the company’s number of employees and average payroll and on false supporting tax and bank documents. Bostic paid more than $21,000 to a co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. The evidence showed that Bostic, in exchange for kickbacks, referred other co-conspirators to the scheme and Stote submitted fraudulent PPP loan applications on their behalf. Those loan applicants sought more than $3.3 million in fraudulent PPP loans and obtained nearly $2 million in PPP loan proceeds.
A federal jury in Fort Lauderdale found Bostic guilty of conspiracy and wire fraud on Nov. 24, 2021. In addition to her prison sentence, Bostic was ordered to serve three years of supervised released and pay approximately $1.3 million in restitution and $124,515 in forfeiture.
In addition, on Feb. 1, Luke Pierre Jr. was sentenced to two years in prison for obtaining a fraudulent PPP loan of $414,675 as part of this criminal scheme. According to court documents, Pierre, 36, of Port St. Lucie, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Nov. 1, 2021. As part of the fraud scheme, Pierre obtained a PPP loan for his company, Most Wanted Bullyz LLC (MWB), a dog breeding business, in which he falsely represented that MWB had 21 employees and an average monthly payroll of $165,870. In reality, MWB had no employees and no monthly employee payroll. Pierre gave a large portion of the fraudulent loan proceeds he received to co-conspirators who helped obtain the loan, including Stote, and disguised one such payment of over $100,000 as “stud fees.” In addition to his prison sentence, Pierre was ordered to serve three years of supervised released and pay $414,675 in restitution and $414,675 in forfeiture.
Stote pleaded guilty on Dec. 15, 2021, to conspiracy to commit wire fraud in the Northern District of Ohio. He is scheduled to be sentenced on May 6.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Turken and David Snider of the Southern District of Florida prosecuted the cases.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.