Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 January 2022
Former Tennessee Law Enforcement Officer Convicted of Federal Civil Rights OffensesRead the Press Release
CHATTANOOGA, Tenn. On January 28, 2022, Anthony “Tony” Bean, 61, of Chattanooga, was found guilty of federal civil rights offenses by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents, Tony Bean was convicted following a bench trial for using excessive force against two arrestees while he was a law enforcement officer. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III, and FBI Knoxville Special Agent in Charge Joseph E. Carrico made the announcement of Tony Bean’s conviction.
While acting as the Chief of the Tracy City Police Department in Tracy City, Tennessee, Tony Bean used excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014. Furthermore, Tony Bean used excessive force against a second arrestee during F.M.’s arrest when Tony Bean was the Chief Deputy of the Grundy County Sheriff’s Office, in Grundy County, Tennessee. Tony Bean’s co-defendant, T.J. Bean, faced a single charge at trial and was acquitted of using excessive force against arrestee F.M. during the same arrest in 2017. Evidence presented at trial in June 2021, over the course of three days, showed that Tony Bean was guilty of federal civil rights offenses.
“Every person in our nation has the right to be free from unlawful abuse by police officers, including the use of excessive force during an arrest,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This verdict makes clear that law enforcement officials who use unlawful force are not above the law. We will not stand idly by in the face of criminal misconduct by law enforcement officials in any part of the country.”
“Tony Bean held a position of public trust, and he willfully violated that trust. This violation diminishes the tremendous work performed by law enforcement every day. Our office is committed to ensuring the protection of every person’s civil rights,” said United States Attorney Francis M. Hamilton III.
“Civil Rights violations are always of great concern, particularly when an officer betrays the oath to protect and serve. The public has an absolute right to trust that law enforcement will protect those they serve. When that trust is violated, the law enforcement community is tarnished, and the community’s confidence is broken,” said FBI Special Agent in Charge Joseph E. Carrico.
Bean’s sentencing has been set for June 24, 2022. He faces a maximum penalty of 10 years of imprisonment on each of the three counts of conviction.
This case was investigated by the Knoxville Division of the FBI.
Assistant United States Attorney James Brooks of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division represented the United States.
###
American Woman Who Led ISIS Battalion Charged with Providing Material Support to a Terrorist OrganizationRead the Press Release
A criminal complaint filed in 2019 in the U.S. District Court for the Eastern District of Virginia, which is now unsealed, alleges that Allison Fluke-Ekren, a United States citizen, organized and led an all-female military battalion on behalf of the Islamic State of Iraq and al-Sham (ISIS), and charges Fluke-Ekren with providing and conspiring to provide material support to ISIS, a designated foreign terrorist organization.
Fluke-Ekren was previously apprehended in Syria and transferred into the custody of the FBI yesterday, at which point she was first brought to the Eastern District of Virginia. She is expected to have her initial appearance at the federal courthouse in Alexandria on Monday at 2:00 p.m.
As alleged in the criminal complaint, Allison Elizabeth Fluke-Ekren, aka “Allison Elizabeth Brooks,” aka “Allison Ekren,” aka “Umm Mohammed al-Amriki,” aka “Umm Mohammed,” and aka “Umm Jabril,” 42, a former resident of Kansas, traveled to Syria several years ago for the purpose of committing or supporting terrorism. Since her departure from the United States, Fluke-Ekren has allegedly been involved with a number of terrorism-related activities on behalf of ISIS from at least 2014. These activities allegedly include, but are not limited to, planning and recruiting operatives for a potential future attack on a college campus inside the United States and serving as the appointed leader and organizer of an ISIS military battalion, known as the Khatiba Nusaybah, in order to train women on the use of automatic firing AK-47 assault rifles, grenades and suicide belts. Additionally, Fluke-Ekren allegedly provided ISIS and ISIS members with services, which included providing lodging, translating speeches made by ISIS leaders, training children on the use of AK-47 assault rifles and suicide belts and teaching extremist ISIS doctrine.
The complaint details the eyewitness observations of six separate individuals who collectively observed Fluke-Ekren’s alleged terrorist conduct from at least 2014 through approximately 2017. For example, Fluke-Ekren allegedly told a witness about her desire to conduct an attack in the United States. To conduct the attack, Fluke-Ekren allegedly explained that she could go to a shopping mall in the United States, park a vehicle full of explosives in the basement or parking garage level of the structure, and detonate the explosives in the vehicle with a cell phone triggering device. Fluke-Ekren allegedly considered any attack that did not kill a large number of individuals to be a waste of resources. As alleged by the same witness, Fluke-Ekren would hear about external attacks taking place in countries outside the United States and would comment that she wished the attack occurred on United States soil instead.
The complaint further describes Fluke-Ekren’s alleged leadership role in the Khatiba Nusaybah. According to a witness, in or about late 2016, the “Wali” (or ISIS-appointed mayor) of Raqqa, Syria, allegedly permitted the opening of the “Khatiba Nusaybah,” which was a military battalion comprised solely of female ISIS members who were married to male ISIS fighters. Shortly thereafter, Fluke-Ekren allegedly became the leader and organizer of the battalion. Fluke-Ekren’s alleged main objective in this role was to teach the women of ISIS how to defend themselves against ISIS’ enemies. According to another witness, ISIS allegedly mandated women who were staying in Raqqa during the 2017 siege to attend the training. The siege was launched by the Syrian Democratic Forces (SDF) against ISIS with an aim to seize Raqqa, the former de facto capital of ISIS in Syria. The battle began on or about June 6, 2017 and concluded on or about Oct. 17, 2017, at which point the SDF regained controlled of Raqqa.
The members of Khatiba Nusaybah were allegedly instructed on physical training, medical training, Vehicle-Borne Improvised Explosive Device (VBIED) driving courses, religious classes and how to pack and prep a “go bag” with rifles and other military supplies. According to eyewitness accounts, some of these classes were allegedly taught by Fluke-Ekren. One witness in particular allegedly observed that the leaders of ISIS and the other members of the military battalion were proud to have an American instructor. Fluke-Ekren also allegedly trained children on the use of automatic firing AK-47 assault rifles, grenades and suicide belts.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Fluke-Ekren is charged with providing and conspiring to provide material support or resources to a foreign terrorist organization. If convicted, she faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
First Assistant U.S. Attorney Raj Parekh and Assistant U.S. Attorney John T. Gibbs from the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case, with assistance from the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
American Woman Who Led ISIS Battalion Charged with Providing Material Support to a Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – A
criminal complaint filed in 2019 in the U.S. District Court for the Eastern District of Virginia, which is now unsealed , alleges that Allison Fluke-Ekren, a United States citizen, organized and led an all-female military battalion on behalf of the Islamic State of Iraq and al-Sham (ISIS), and charges Fluke-Ekren with providing and conspiring to provide material support to ISIS, a designated foreign terrorist organization.Fluke-Ekren was previously apprehended in Syria and transferred into the custody of the FBI yesterday, at which point she was first brought to the Eastern District of Virginia. She is expected to have her initial appearance at the federal courthouse in Alexandria on Monday at 2:00 p.m.
As alleged in the criminal complaint, Allison Elizabeth Fluke-Ekren, aka “Allison Elizabeth Brooks,” aka “Allison Ekren,” aka “Umm Mohammed al-Amriki,” aka “Umm Mohammed,” and aka “Umm Jabril,” 42, a former resident of Kansas, traveled to Syria several years ago for the purpose of committing or supporting terrorism. Since her departure from the United States, Fluke-Ekren has allegedly been involved with a number of terrorism-related activities on behalf of ISIS from at least 2014. These activities allegedly include, but are not limited to, planning and recruiting operatives for a potential future attack on a college campus inside the United States and serving as the appointed leader and organizer of an ISIS military battalion, known as the Khatiba Nusaybah, in order to train women on the use of automatic firing AK-47 assault rifles, grenades, and suicide belts. Additionally, Fluke-Ekren allegedly provided ISIS and ISIS members with services, which included providing lodging, translating speeches made by ISIS leaders, training children on the use of AK-47 assault rifles and suicide belts, and teaching extremist ISIS doctrine.
The complaint details the eyewitness observations of six separate individuals who collectively observed Fluke-Ekren’s alleged terrorist conduct from at least 2014 through approximately 2017. For example, Fluke-Ekren allegedly told a witness about her desire to conduct an attack in the United States. To conduct the attack, Fluke-Ekren allegedly explained that she could go to a shopping mall in the United States, park a vehicle full of explosives in the basement or parking garage level of the structure, and detonate the explosives in the vehicle with a cell phone triggering device. Fluke-Ekren allegedly considered any attack that did not kill a large number of individuals to be a waste of resources. As alleged by the same witness, Fluke-Ekren would hear about external attacks taking place in countries outside the United States and would comment that she wished the attack occurred on United States soil instead.
The complaint further describes Fluke-Ekren’s alleged leadership role in the Khatiba Nusaybah. According to a witness, in or about late 2016, the “Wali” (or ISIS-appointed mayor) of Raqqa, Syria, allegedly permitted the opening of the “Khatiba Nusaybah,” which was a military battalion comprised solely of female ISIS members who were married to male ISIS fighters. Shortly thereafter, Fluke-Ekren allegedly became the leader and organizer of the battalion. Fluke-Ekren’s alleged main objective in this role was to teach the women of ISIS how to defend themselves against ISIS’ enemies. According to another witness, ISIS allegedly mandated women who were staying in Raqqa during the 2017 siege to attend the training. The siege was launched by the Syrian Democratic Forces (SDF) against ISIS with an aim to seize Raqqa, the former de facto capital of ISIS in Syria. The battle began on or about June 6, 2017 and concluded on or about October 17, 2017, at which point the SDF regained controlled of Raqqa.
The members of Khatiba Nusaybah were allegedly instructed on physical training, medical training, Vehicle-Borne Improvised Explosive Device (VBIED) driving courses, religious classes, and how to pack and prep a “go bag” with rifles and other military supplies. According to eyewitness accounts, some of these classes were allegedly taught by Fluke-Ekren. One witness in particular allegedly observed that the leaders of ISIS and the other members of the military battalion were proud to have an American instructor. Fluke-Ekren also allegedly trained children on the use of automatic firing AK-47 assault rifles, grenades, and suicide belts.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Fluke-Ekren is charged with providing and conspiring to provide material support or resources to a foreign terrorist organization. If convicted, she faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Raj Parekh and Assistant United States Attorney John T. Gibbs from the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case, with assistance from the National Security Division’s Counterterrorism Section.
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. 1:19-mj-231.
A criminal complaint contains allegations that a defendant has committed one or more crimes. The defendant is presumed innocent until and unless proven guilty.
28 January 2022
Whitley County Man Sentenced to 516 Months for Violent KidnappingRead the Press Release
LONDON, Ky. — A Corbin, Kentucky, man, Douglas M. Edmonson, 38, was sentenced to 43 years in federal prison on Friday, by U.S. District Judge Robert E. Wier, for kidnapping.
According to evidence presented at the sentencing hearing, Edmonson and his three co-defendants lured a victim to a location in Tennessee, using an unrelated party’s Facebook account. Edmonson and his co-defendants then forced the victim into a vehicle and transported her to Corbin. Edmonson used a .38 revolver and a homemade pipe bomb to coax the victim’s compliance. The victim was bound, blindfolded, and repeatedly assaulted during the 2-day kidnapping. In describing the offense conduct, the Court stated, “[i]f hell is a place, it is almost on the edge of hell. Seeing how people can behave toward each other and treat each other. It is degrading. It is exploitive. It is sub-human to treat a person this way and to put a person in such fear for her life and to strip her, literally and figuratively, of human dignity so astonishingly.”
The Court also found that Edmonson occupied a leadership role, employed a dangerous weapon, and demanded a ransom. The Court further ruled that Edmonson sexually exploited and inflicted serious bodily injury upon the victim. The yearlong investigation revealed that Edmonson and his co-defendants employed firearms, as well as destructive devices during the kidnapping. On August 11, 2018, ATF agents were called to the kidnapping scene and assisted in locating and detonating several homemade destructive devices. The evidence revealed that the kidnapping was fueled by a perceived methamphetamine debt and underlying drug trafficking on the part of Edmonson.
In handing down the sentence, the Court commented that, “in the meth world there's almost a parallel culture where people in that world believe that they're their own police, they're their own law enforcement, they're their own collection agents. That they are operating outside of the boundaries that the rest of us take for granted. And I think that most of America would be kind of shocked what I hear in this courtroom month after month.”
Edmonson pleaded guilty in September 2021.
Edmonson’s co-defendant, Bryanna Soper, 27, of Corbin, Ky., was sentenced to 396 months and five years of supervised release. Dallas Chain Perkins, 23, of Jellico, Tenn., and Erik Peace, 34, of Corbin, Ky., are scheduled to be sentenced in February 2022.
“The victim in the case was lured, restrained, held for drugs or ransom, threatened with firearms and homemade explosives, brutally beaten, burned, and repeatedly assaulted,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “As the Court commented, this uninhibited violence caused unspeakable suffering; so now, the defendant will face the significant consequences of his despicable and brutal conduct. His appalling crimes more than justify the sentence imposed and serve to strengthen our commitment to combatting the drug trafficking violence in our communities.”
“These defendants were part of an armed drug-trafficking group that committed heinous acts of violence,” said ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “I commend the efforts of the ATF agents and our Kentucky State Police and Williamsburg Police partners who worked diligently on this year-long investigation to help bring justice to this victim who has had to endure the unimaginable. We hope that this sentencing brings some form of healing to the victim and sends the message that ATF and our law enforcement partners will not stand by and allow these acts of violence."
Under federal law, Edmonson and Soper must serve 85 percent of their prison sentence. Upon their release from prison, Edmonson will be under the supervision of the U.S. Probation Office for 5 years.
United States Attorney Shier; Special Agent in Charge Morrow; Colonel Phillip Burnett, Commissioner of the Kentucky State Police; and Chief Wayne Bird, Williamsburg Police Department, jointly announced the sentences.
The investigation was conducted by the ATF and KSP, with assistance provided by the Williamsburg Police Department. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. The PSN program involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
-END-
Westerville man sentenced to 25 years in prison for sexually exploiting 5-year-oldRead the Press Release
COLUMBUS, Ohio – A man convicted at trial in summer 2021 of crimes related to creating child pornography of his sexual abuse of a 5-year-old was sentenced in U.S. District Court today to 300 months in prison.
A jury convicted Christopher M. Sammons, 28, of four child exploitation crimes in June 2021.
“Sammons’ conduct is truly some of the worst of the worst,” United States Attorney Kenneth L. Parker said. “The defendant molested a 5-year-old child repeatedly and shared pornographic images of the child with others. His prison sentence is deserved. This office will continue to aggressively prosecute anyone who abuses the most vulnerable in our society.”
According to court documents and trial testimony, on March 11, 2019, an undercover FBI agent in Little Rock, Arkansas, received a message from Sammons regarding sexual interest in children.
Throughout their conversations, Sammons encouraged the undercover agent to “just make some homemade stuff” when discussing the availability of child pornography.
Sammons detailed sexually abusing a then 5-year-old victim and also offered to “share her next time if you’re interested in a long-term thing.” Sammons sent the agent child pornography files and suggested plans for he and the agent to exchange videos of themselves sexually abusing minors.
Based on IP address information, the investigative lead was forwarded to FBI Columbus and a Task Force Officer here began communicating with Sammons. Sammons told the task force officer he had been sexually abusing the victim for a year.
Sammons abused the victim while he was babysitting her and he was scheduled to babysit on the day he had arranged to exchange sexually explicit videos with the undercover agent. Law enforcement officials executed a search warrant at Sammons’ house before the scheduled babysitting began, preventing Sammons from engaging in the planned pornographic exchange.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati District; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed today by U.S. District Court Judge Sarah D. Morrison. Senior Litigation Counsel Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, represented the United States in this case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
# # #
Vice President of Kenwood Keys Pleads Guilty to Failing to Pay over Payroll TaxesRead the Press Release
United States Attorney Richard G. Frohling announced that, on January 27, 2022, Patrick Souter entered a guilty plea in federal court in Milwaukee to charges that he willfully failed to truthfully account for and pay over “trust fund” payroll taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202.
According to documents filed in court, Souter is the vice president and a 50 percent shareholder of Kenwood Keys. Federal law requires employers to collect payroll taxes (which include federal income taxes, Social Security taxes, and Medicare taxes) from the wages paid to its employees, and to pay over these taxes to the United States through the Internal Revenue Service (“IRS”). The taxes withheld from wages paid to employees are commonly referred to as the “trust fund” portion of payroll taxes. Federal law also requires employers to pay additional payroll taxes to the IRS in an amount equal to the employees’ share of Social Security and Medicare taxes. These taxes are referred to as the “matching” portion of payroll taxes.
According to court filings, beginning in 2006 and continuing through 2020, Souter regularly failed to pay over to the IRS all or a portion of trust fund payroll taxes that he had withheld from employees’ wages. During that same time period, Souter also regularly failed to pay to the IRS all or a portion of the matching part of payroll taxes owed by Kenwood Keys. As part of his plea, Souter admitted that during the period from 2006 through 2020, he failed to pay the IRS a total of $559,249.82 in payroll taxes.
The IRS Criminal Investigation division in Milwaukee is investigating this case, which is being prosecuted by the United States Attorney’s Office for the Eastern District of Wisconsin.
###
For further information contact:
(414) 297-1700
Follow us on Twitter
United States Attorney’s Office and IRS Issue Tips for Avoiding Tax Season FraudRead the Press Release
SPOKANE, WASHINGTON – Each year, taxpayers’ personal information is compromised through phishing scams or by unscrupulous tax preparers. With tax season kicking off on January 24, the U.S. Attorney’s Office and IRS Criminal Investigation (“IRS-CI”) urge taxpayers to be aware of tax-related fraud.
United States Attorney Vanessa R. Waldref encouraged all taxpayers to be vigilant as tax season kicks off: “Having a safe, strong community in Eastern Washington includes ensuring that taxpayers are protected from fraud. We will continue to work closely with our colleagues at IRS to ensure not only that all taxpayers pay their fair share, but that no one is taken advantage of by shady preparers or online scams. As tax season begins, I urge all taxpayers in Eastern Washington to file federal taxes timely and to be on the lookout for unsolicited offers that look too good to be true.”
“In the midst of a pandemic that has greatly affected us all, some people see an opportunity to illegally line their own pockets. IRS-CI is continually using all of its resources to protect the public from fraudsters, but there are also things that taxpayers can do this filing season to protect their financial well-being,” said Special Agent in Charge Bret Kressin, IRS-CI Seattle Field Office. The U.S. Attorney’s Office and IRS-CI are committed to protecting taxpayers from those who seek to cheat the U.S. tax system, and offer the following ten tips to help taxpayers avoid tax season fraud:
1. Choose tax preparers wisely. Look for preparers who are available year-round.
2. Ask tax preparers for their IRS Preparer Tax Identification Numbers (“PTINs”). All paid preparers are required to have these numbers.
3. Do not use ghost preparers. These are preparers who will not sign tax returns they prepare.
4. Do not fall victim to tax preparers’ promises of large refunds. All taxpayers must pay their fair share of taxes.
5. Do not sign blank tax returns. Taxpayers are ultimately responsible for what appears on the tax returns that are filed with the IRS, no matter who prepares them.
6. Make sure that tax refunds are received and deposited into the bank accounts of taxpayers, not tax preparers.
7. Do not take telephone calls from anyone claiming to be the IRS or threatening legal action on behalf of the IRS. The IRS does not make calls like this. Hang up on anyone claiming to be a representative of the IRS.
8. Do not respond to text messages, emails, or social media posts from anyone claiming to be the IRS. These communications may contain malware that can compromise personal information.
9. Do not click links or open attachments in unsolicited emails or text messages about tax returns. These messages are fraudulent.
10. Protect personal and financial information. Never provide this information in response to unsolicited text messages, emails, or social media posts from anyone claiming to be the IRS.
This year’s tax season began on January 24 and continues through April 18 for most taxpayers. U.S. taxpayers are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.
Taxpayers found to be committing fraud may be subject to penalties including payment of taxes owed plus interest, fines and jail time. In the Eastern District, a tax preparer named Jonathan Schumann was recently sentenced to six months in federal prison for aiding and assisting in the preparation and filing of false income tax returns. Schumann operated a tax return preparation business, J’s Income Tax, out of his residence in Richland, Washington. He prepared false tax returns claiming fraudulent and inflated itemized deductions, including charitable contributions, personal property taxes, and unreimbursed employee business expenses.
For more tips on how to choose tax professionals or file complaints, visit IRS.gov. Taxpayers who suspect tax violations by a person or business may file a report with the IRS using Form 3949A, Information Referral. Taxpayers can also report phishing emails to [email protected] and IRS impersonation scams to TIGTA.gov.
U.S. Attorney Announces Extradition of Australian Tech Entrepreneur in Multimillion-Dollar Text-Messaging Consumer Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Joleen D. Simpson, the Special Agent-in-Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that EUGENI TSVETNENKO, a/k/a “Zhenya,” a dual citizen of Australia and Russia, was extradited from Australia and arrived in the United States this morning. TSVETNENKO was extradited on charges of conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and conspiracy to commit money laundering, stemming from the defendant’s alleged participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent—a practice referred to as “auto-subscribing.” The portion of the fraudulent scheme that TSVETNENKO and his co-conspirators orchestrated defrauded mobile phone users of approximately $41,389,725, and netted TSVETNENKO and his co-conspirators more than $20 million in proceeds. TSVETNENKO will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Analisa Torres.
U.S. Attorney Damian Williams said: “Eugeni Tsvetnenko is alleged to have surreptitiously subscribed hundreds of thousands of cell phone users to a $9.99 per-month charge for recurring text messages they did not approve or want. As a result of their auto-subscribing scheme, Tsvetnenko and his co-conspirators are alleged to have silently drained over $41 million in illegal proceeds from their unknowing victims. Thanks to the continued efforts and coordination with our Australian law enforcement counterparts, Tsvetnenko, an Australian national, has now been extradited to the U.S. to answer the call of American justice.”
IRS-CI Special Agent in Charge Joleen D. Simpson said: “Today's extradition is clear proof that Mr. Tsvetnenko's vast fortune and residence on another continent did little to shield him from answering the charges brought against him by American authorities. The defendants in this case have learned the hard way that the reach of Federal law enforcement extends far beyond the borders of the United States.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Tsvetnenko and his co-conspirators concocted a scheme that turned thousands of mobile phone customers into unwitting subscription service participants, as alleged. These customers incurred monthly charges for services they never subscribed to and, in many cases, disregarded as spam until the charges turned up on their monthly statements. Ultimately, as we allege, the defendants were able to steal more than $40 million and realize more than $20 million in profits. Today's case is a reminder for all of us to maintain awareness of the charges we incur on our financial statements. No matter how insignificant a fraudulent charge may seem, the bigger picture often tells a different story.”
According to allegations in the Superseding Indictment against TSVETNENKO, evidence presented at the trial of co-conspirators Darcy Wedd (Wedd) and Fraser Thompson (Thompson), and other public filings:
From at least in or about 2012 through in or about 2013, TSVETNENKO, Wedd, Thompson, and others engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills through a practice known as auto-subscribing. TSVETNENKO owned and operated several content provider companies and mobile industry companies in Australia that, among other things, created and sold premium text messaging content to consumers. Wedd operated Mobile Messenger, a U.S. aggregation company in the mobile phone industry that served as a middleman between content providers (such as some of TSVETNENKO’s companies) and mobile phone carriers. Mobile Messenger was responsible for assembling monthly charges incurred by a particular mobile phone customer for premium text-messaging services and placing those charges on that customer’s cellular phone bill.
Beginning in or about early 2012, Wedd, Thompson, who was the Senior Vice President of Strategic Operations for Mobile Messenger, and two other senior executives of Mobile Messenger (CC-3 and CC-4) recruited TSVETNENKO to their auto-subscribing scheme to increase revenues at Mobile Messenger. TSVETNENKO agreed and established two new content providers based in Australia, CF Enterprises and DigiMobi, to auto-subscribe on Mobile
Messenger’s aggregation platform. CC-3 furnished lists of phone numbers to TSVETNENKO, along with an auto-subscribing “playbook,” which provided TSVETNENKO with guidance on how to auto-subscribe without being caught. The “playbook” described how to conceal the fraud scheme by making it appear as if the customers had, in fact, elected to purchase the text-messaging services, when in truth they had not.
The consumers who received the unsolicited text messages typically ignored or deleted the messages, often believing them to be spam. Regardless, the consumers were billed for the receipt of the messages, at a rate of $9.99 per month, through charges that typically appeared on the consumers’ cellular telephone bills in an abbreviated and confusing form, such as with nonsensical billing descriptors that often consisted of random letter and numbers. The $9.99 charges recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds from CF Enterprises or DigiMobi were often unsuccessful. Wedd, to whom CC-3, CC-4, and Thompson all reported, oversaw the scheme at Mobile Messenger.
TSVETNENKO, with the assistance of Wedd, Thompson, CC-3, and CC-4, started
auto-subscribing consumers in approximately April of 2012. TSVETNENKO’s auto-subscribing
activities, which continued into 2013, victimized hundreds of thousands of mobile phone customers, who were auto-subscribed through Mobile Messenger and charged a total of approximately $41,389,725 for unwanted text messaging services. Wedd, Thompson, CC-3, and CC-4 agreed that TSVETNENKO would keep approximately 70% of the auto-subscribing proceeds generated by CF Enterprises and DigiMobi, and that the remaining 30% of the auto-subscribing proceeds would be divided evenly among Wedd, Thompson, CC-3, and CC-4.
After obtaining proceeds of the fraud scheme, TSVETNENKO worked with other co-conspirators to launder the proceeds. TSVETNENKO and his co-conspirators distributed the proceeds of the fraud scheme among themselves and others involved in the scheme by, among other things, causing funds to be transferred through the bank accounts of a series of shell companies and companies held in the names of third parties. This was done to conceal the nature and source of the payments and TSVETNENKO and his co-conspirators’ participation in the fraud.
Through their successful orchestration of this fraud scheme, TSVETNENKO and his co-conspirators generated more than $20 million in fraud proceeds for themselves. TSVETNENKO personally retained approximately $15.4 million in fraud proceeds for his role in the scheme.
* * *
TSVETNENKO 41, of Perth, Australia, is charged with one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; one count of wire fraud, which also carries a maximum penalty of 20 years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the IRS-CI and the FBI. In addition, Mr. Williams thanked law enforcement partners in Australia, especially the Australian Attorney-General’s Department and the Australian Federal Police, well as the U.S. Department of Justice’s Office of International Affairs, for their significant support and assistance with the defendant’s extradition.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan Kamal and Olga I. Zverovich are in charge of the prosecution.
The charges in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Members of the Mount Vernon Goonies Street Gang Sentenced for Participating in the Murder of Dean DanielsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that RAHEEM JONES, a/k/a “Trigga,” was sentenced to 25 years in prison for participating in the 2014 murder of Dean Daniels and his participation multiple other shootings in furtherance of the gang. In November 2021, co-defendant MARKEL OVERTON, a/k/a “Kellz,”was sentenced to 20 years in prison for his participation in the Daniels murder and other violent affairs of the Goonies gang.
According to allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Between 2007 and 2017, in the Southern District of New York and elsewhere, JONES and OVERTON were members of a racketeering enterprise known as the “Goonies.” In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Goonies committed, conspired, attempted, and threatened to commit acts of violence, including murder, attempted murder and robbery; they conspired to distribute and possess with the intent to distribute narcotics; and they obtained, possessed, and used firearms, including by brandishing and firing them. Both JONES and OVERTON held senior status in the Goonies gang.
In the afternoon of September 22, 2014, OVERTON and JONES accompanied two Goonies associates to retaliate against Dean Daniels for robbing one of the Goonies associates of his car. When they spotted Daniels, OVERTON and JONES waited in the car while the two Goonies associates left the vehicle with a gun to confront Daniels. The Goonies associates shot Daniels twice in the vicinity of Park Avenue in Mount Vernon, New York before running back to the vehicle to flee the scene. Daniels died as a result of the gunshot wounds.
* * *
JONES, 33, pled guilty to one count of racketeering conspiracy and one count of using a firearm in connection with an assault with a dangerous weapon in aid of racketeering, whichcarried a maximum penalty of life in prison, and a mandatory minimum sentence of five years in prison.
OVERTON, 32, pled guilty to one count of racketeering conspiracy, which carried a maximum penalty of twenty years in prison.
Mr. Williams praised the outstanding investigative work of the Mount Vernon Police Department and the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives from the FBI, Yonkers Police Department, Westchester County District Attorney’s Office, Westchester County Police Department, Peekskill Police Department, Mount Vernon Police Department, New York City Police Department, and U.S. Probation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Anden Chow is in charge of the prosecution.
Two Former Federal Correctional Officers Plead Guilty to Bribery and Smuggling Contraband SchemeRead the Press Release
Two former correctional officers pleaded guilty this week to engaging in bribery and smuggling contraband into Leavenworth Detention Center.
According to court documents, Janna Grier, 36, of Horton, Kansas, previously worked as a correctional officer at Leavenworth Detention Center, a privately run, maximum-security federal prison in Leavenworth, Kansas. Grier used her position to smuggle contraband into the prison and also solicited other prison officials to use their position to smuggle contraband into Leavenworth.
On Jan. 25, Grier pleaded guilty to conspiracy to offer bribes and provide contraband to inmates of a federal prison. She is scheduled to be sentenced on April 28, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, Willie Golden, 28, of Overland Park, Kansas, also previously worked as a correctional officer at Leavenworth Detention Center. Golden used his position to smuggle contraband — including tobacco, synthetic cannabinoids, cellular telephones and marijuana — into the prison in exchange for bribe payments.
Today, Golden pleaded guilty to conspiracy to accept bribes and provide contraband to inmates of a federal prison. He is scheduled to be sentenced on May 17, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Special Agent in Charge William J. Hannah of the Department of Justice Office of Inspector General (DOJ-OIG) Chicago Field Office, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Charles A. Dayoub of the FBI’s Kansas City Field Office made the announcement.
The FBI and DOJ-OIG are investigating the cases.
Trial Attorneys Rebecca M. Schuman and Dahoud A. Askar of the Justice Department’s Public Integrity Section are prosecuting the cases.
The cases are part of the Justice Department’s ongoing efforts to combat prison corruption. In addition to the above matters, the Public Integrity Section is prosecuting three other former Leavenworth officials for similar alleged conduct. See United States v. Cheyonte Harris, Case No. 2:21-cr-20054 (D. Kan.); United States v. Jaqueline Sifuentes, No. 2:21-cr-20053 (D. Kan.); United States v. Jeane Arnette, No. 2:21-cr-20063 (D. Kan.). An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Separately, the Public Integrity Section and the FBI recently obtained convictions against three former North Carolina prison officials who smuggled contraband, including illegal narcotics, into a state facility in exchange for bribes. See United States v. Ollie Rose, III, No. 4:20-CR-96 (E.D.N.C.); United States v. Kenneth Farr, No. 4:21-CR-9 (E.D.N.C.); and United States v. Jeremy Chambers, No. 4:21-CR-38 (E.D.N.C.).
Two Austin Men Sentenced to Federal Prison for Attempted Robbery and Shooting of Convenience Store EmployeeRead the Press Release
AUSTIN – Two Austin men were sentenced to lengthy federal prison terms today for participating in an attempted robbery of an Austin gas station convenience store that resulted in the shooting of an employee of the business. Deon Ross, 37, who shot the employee, was sentenced to 271 months in federal prison. Lavante Carter, 19, was sentenced to 135 months in federal prison.
According to court documents, on October 7, 2020, at approximately 11 p.m., Ross and Carter attempted to rob a gas station on IH-35 in Austin. Both Carter and Ross displayed their firearms to two store employees who were working that night. After demanding money, Ross shot one of the employees.
Ross pleaded guilty to one count of interference with commerce by threats or violence and one count of discharge of a firearm during and in relation to a crime of violence. Carter pleaded guilty to one count of interference with commerce by threats or violence and one count of brandishing a firearm during and in relation to a crime of violence.
“These significant sentences reflect our office’s unwavering commitment to address violent crime in our community and protect the public,” said U.S. Attorney Ashley C. Hoff. “I am grateful for the collective efforts of the Federal Bureau of Investigation and the Austin Police Department in investigating this case.”
“Thanks to the hard work of the FBI Safe Streets Task Force, dangerous offenders are now off the streets,” said FBI Special Agent in Charge Christopher Combs. “The sentencing of Deon Ross and Lavante Carter represent federal, state, and local law enforcement's commitment to combat violence and restore peace to our local community."
Ross was arrested on December 6, 2020 and has been in custody since that date. Carter was arrested on October 12, 2020 and has been in custody since that date. Both defendants have remained in federal custody since their arrests on March 4, 2021, on the indictment in the case.
The FBI and the Austin Police Department investigated the case. Assistant U.S. Attorneys Gabriel Cohen and Keith Henneke prosecuted 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.
###
Tulsa Man Sentenced for Abusing a 3-Year-Old ChildRead the Press Release
A Tulsa man responsible for abusing a three-year-old child was sentenced Friday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Craig Allan Morrison, 37, to 25 years in federal prison followed by five years of supervised release.
A federal jury found Morrison guilty of two counts of child abuse in Indian Country and his girlfriend, Amanda Lyn Walker, 42, guilty of two counts of enabling acts of child abuse in Indian Country. Walker was sentenced to 10 years in prison on Jan. 10, 2022.
“Craig Morrison brutally assaulted this young victim and will spend 25 years in federal prison for his crimes,” said U.S. Attorney Clint Johnson. “Victims of violence are best supported by a team of medical professionals, victim advocates, law enforcement and prosecutors. In this case, their collaborative work was critical to detecting the abuse, protecting the boy from further harm, and fighting for justice on his behalf.”
Federal prosecutors argued that, based on the facts of the case, an appropriate sentence for Morrison would be 25 years in federal prison. In court documents and proceedings, prosecutors explained the child was severely beaten but also suffered severe mental trauma resulting from the time he lived with Morrison and Walker. According to victim impact statements, the child initially hid in closets, avoided eye contact, was scared of taking baths and would scream in terror, and did not like being held or consoled.
Prosecutors explained the long term impact of abuse was far greater for a child victim than it would be for an adult victim. They explained that because of the child’s age and stage of development, the aggravated assaults and trauma his body carries from the abuse would have a more significant and life-long impact on the child. Prosecutors and a guardian ad litem for the child emphasized that the trauma of Morrison’s repeated abuse and Walker’s enabling and willful failure to protect her child could create ripples across the child’s life.
Child mental and physical abuse are forms of adverse childhood experiences (ACEs). According to the CDC, ACEs can have measurable and “lasting negative effects on health, well-being, as well as life opportunities…” Toxic stress from ACE’s can change brain development and affect how the body responds to stress, and are often linked to chronic health problems, mental illness and substance misuse in adulthood. The more ACE’s people experience at a young age, the greater the impact.
In sentencing, Judge Heil noted Morrison’s other conviction for a domestic violence strangulation in 2008 in violation of a protection order and that Morrison’s violence had escalated. Prosecutors argued Morrison’s propensity toward violence endangered the public and he should be incarcerated for a significant amount of time to protect others.
The couple went to trial in June 2021.
During the trial, the jury received evidence describing two separate instances of child abuse involving a then three-year-old child.
On Feb. 18, 2020, the couple took Walker’s then three-year-old-child to St Francis Hospital for injuries they claimed occurred after the child fell or jumped from his bed. Suspecting abuse, hospital staff contacted pediatricians who specialize in child abuse cases to further examine the child. The child was found to have extensive bruising to his head, back, shoulder, abdomen, buttocks, and leg. Also found were scabbed abrasions on his scalp and on the right side of his forehead. Laboratory testing further showed elevated liver enzymes and elevated amylase. One of the pediatricians who treated the child testified that the laboratory tests indicated liver and pancreatic injuries. She further explained that the child’s injuries showed the child had suffered blunt force trauma and were the result of child abuse. The victim remained at the hospital for five days for treatment.
During an investigation, Tulsa police officers learned of another incident that took place on or about Dec. 20, 2019, when family members observed and photographed a hand-shaped bruise on the child’s face. According to court documents and evidence presented at trial, Walker told a relative that Morrison had hit the child in the face while sleeping due to a “night terror” and that the child’s other bruises were from falls. The relative also reported several other examples where Walker allowed Morrison to mistreat the child, including shoving food into the child’s mouth, causing him to choke.
Walker was further warned by one of Morrison’s family members in text messages to distance herself from Morrison because he was dangerous. The family member also reported that Morrison said the child cried for no reason, so Morrison gave the child reason to cry.
The crimes took place within the Muskogee Nation Reservation, and the minor is a citizen of the Comanche Nation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Melody Noble Nelson and Chantelle D. Dial prosecuted the case.
Transporting stolen firearms sends Kalispell man to prison for two yearsRead the Press Release
MISSOULA — A Kalispell man who admitted to transporting stolen firearms and ammunition from a storage unit after an abandoned rental truck was found in Idaho was sentenced today to two years in prison, to be followed by three years of supervised release, and ordered to pay $101,900 restitution, U.S. Attorney Leif M. Johnson said.
Jeremy Anthony O’Canna, 33, pleaded guilty in September 2021 to transportation of stolen firearms and ammunition.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that in December 2019, Idaho Falls, Idaho police officers responded to a report of an abandoned U-Haul vehicle that appeared to have been stolen. An investigation led to a Kalispell man, who then discovered his storage unit in Kalispell had been burglarized and that he was missing firearms, ammunition and other items. The investigation further led to O’Canna and evidence of him entering the victim’s storage unit and removing guns and ammunition. O’Canna sent Facebook messages to people asking if they needed guns and sent photographs of guns and ammunition he had to sell. He claimed he was on his way to Idaho Falls to sell guns to Mexicans. The firearms and ammunition have not been recovered. Co-defendant Joseph Vernon Holmstrom of Kalispell pleaded guilty to charges and is awaiting sentencing.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Flathead County Sheriff’s Office, Idaho Falls Police Department and Idaho Falls Animal Control.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Texas Man Sentenced to Prison for Drug Trafficking Conspiracy in ToledoRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Anthony Robinson, 25, of Katy, Texas, was sentenced on Thursday, January 27, 2022, by U.S. District Judge Jeffrey J. Helmick to 10 years in prison after Robinson pleaded guilty to a fentanyl drug trafficking conspiracy in the Toledo area.
According to court documents, in March of 2018, Robinson and co-defendants Barbera Wilson and Darrius Lewis conspired together to distribute fentanyl in Toledo. As part of the conspiracy, Robinson and Lewis made arrangements to obtain narcotics in Houston, Texas, and transport the drugs to the Toledo area. On one occasion, Robinson and Wilson drove a rented vehicle containing narcotics from Houston to be distributed in Toledo.
On March 20, 2018, Robison mailed a package containing approximately one kilogram of fentanyl back to Houston. Federal agents subsequently seized this package. Federal law enforcement investigators then executed a search warrant at two hotel rooms Robinson, Lewis, and Wilson occupied and seized an additional amount of fentanyl and currency.
In total, investigators seized approximately 1.5 kilograms of fentanyl and 8,416 in U.S. currency related to the trafficking conspiracy.
Defendant Barbera Wilson was sentenced to 12 months in prison for her role in the conspiracy. Defendant Darrius Lewis is scheduled to be sentenced on April 26, 2022, for his role in the conspiracy.
This case was investigated by Homeland Security and the Toledo Police Department. This case is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Matthew D. Simko.
Tampa Paralegal Sentenced to 15 Months for Conspiracy to Commit Bankruptcy FraudRead the Press Release
Tampa, Florida – U.S. District Judge James Moody has sentenced Eric Liebman (34, Tampa) to 15 months in federal prison for conspiracy to commit bankruptcy fraud. Liebman had pleaded guilty on September 24, 2019.
According to court documents, from January 2010 through February 2017, Liebman conspired with his co-defendant, James Lee Clark, to defraud mortgage creditors and guarantors, such as Fannie Mae, which held mortgage notes on properties that were in foreclosure. Liebman and Clark falsely and fraudulently represented to the distressed homeowners facing foreclosure that in exchange for executing quitclaim or warranty deeds for their properties to an entity controlled by Liebman, they would negotiate with the mortgage creditors to prevent foreclosures. Liebman and Clark convinced the distressed homeowners to pay them rent or agree to put their houses up for sale. In order to continue to collect ill-gotten rents, or profit from sales of the properties, Liebman filed fraudulent bankruptcy petitions in the names of the homeowners to prevent the mortgage creditors from lawfully foreclosing and taking title to the properties.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division, also provided substantial investigative support. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Tampa Man Sentenced to Federal Prison for Two Armed Robberies at Area Convenience StoresRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Giovanni Gort (32, Tampa) to 10 years in federal prison for two counts of armed robbery and one count of brandishing a firearm during a crime of violence. Gort was also ordered to pay $535 in restitution. He had pleaded guilty on October 26, 2021.
According to facts presented in court, in the early morning of February 10, 2021, Gort entered the 7-Eleven convenience store on Hillsborough Avenue in Tampa. Gort pulled out a gun, pointed it at the store clerk, and said “give me everything you got. I be back to see you. If you say something, I’m going to come back and shoot you.” The clerk took $435 from her cash register and gave it to Gort, who then fled the scene. The clerk immediately reported the incident to law enforcement and stated she had never been so scared in her life.
Approximately 10 minutes later, Gort entered a 7-Eleven convenience store located on Memorial Highway in Tampa and said, “give me all your money, bro,” before ordering the two store clerks behind the counter at gunpoint. The clerks gave Gort approximately $100 in a plastic bag. While they were collecting the money, the clerks saw Gort rack the slide of the gun. Keeping the employees at gunpoint while he backed out of the store, Gort then fled the scene.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna Hale and Craig Gestring.
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.
St. Louis man pleads guilty to unlawful possession of a firearm after domestic disputeRead the Press Release
ST. LOUIS – United States District Court Judge Matthew T. Schelp accepted a plea of guilty from Marlin Tobius, Jr., today. Tobius was previously indicted by a grand jury for unlawful possessing firearms, which police uncovered while responding to a domestic-violence incident.
According to the plea agreement, on October 21, 2020, the St. Louis Metropolitan Police Department ("SLMPD") received a domestic-disturbance call from a woman who reported that her boyfriend had pointed a gun at her and threatened to kill her. The officers entered the home as Tobius exited the upstairs bathroom, and he was taken into custody. Officers then searched the bathroom and found a loaded 9mm Glock 17 GEN5 handgun with a large-capacity magazine. Additionally, officers recovered a similar 9mm Glock 17 GEN4 handgun, also loaded with a large-capacity magazine, on top of a dresser near the top of the stairs. Tobius was prohibited from possessing a firearm as a previously convicted felon. Tobius also admitted to obstructing justice by repeatedly calling the victim and pressuring to recant while he was in jail.
The maximum possible penalty provided by law for this offense is imprisonment of not more than ten years, a fine of not more than $250,000, or both such imprisonment and fine. The Court also may impose a period of supervised release of not more than three years.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The case was investigated by the St. Louis Metropolitan Police Department. The matter is being prosecuted by Assistant United States Attorney Zachary Bluestone.
St. Louis man pleads guilty for his role in the armed robbery of a local fast-food establishmentRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark accepted a plea of guilty from Ronald Scott on January 27, 2022, for knowingly robbing a commercial establishment and knowingly brandishing a firearm in furtherance of that crime. A grand jury in the Eastern District of Missouri previously indicted Scott in August 2020. Judge Clark set sentencing for May 10, 2022.
According to the plea agreement, on September 18, 2019, Scott and his co-defendant robbed the McDonald's Restaurant located at 1119 North Tucker, Saint Louis, Missouri, within the Eastern District of Missouri. Scott, a former employee from this McDonald’s location, brandished a pistol in commission of the robbery. Both suspects were wearing masks and one was wearing a grey backpack.
Scott and his co-defendant left the McDonald's in a silver Chevrolet Impala. A few days after the armed robbery, the silver Chevrolet Impala was stopped by St. Louis Metropolitan Police Department officers. Officers discovered McDonald's hats and a McDonald's paycheck stub addressed to Scott in the Impala.
Additional investigative measures to include forensic analysis of items seized from the vehicle lead to the subsequent identification and arrest of Scott.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
South Florida Federally Licensed Gun Shop Owner and Employee Charged with Illegal Sale of Unregistered Fully Automatic Short-Barreled Rifles and Other FirearmsRead the Press Release
Miami, Florida -- Miami federal prosecutors have charged the owner of a South Florida federally licensed gun shop, along with another of the shop’s operators, with various federal firearms crimes relating to illegal cash sales of unregistered machine guns, silencers, and other devices.
Defendant Manuel Reguiera, 50, owns Miami Gun Shops, Inc, a federally licensed firearms store, and operates it with Defendant Anderson Rabel, 38. According to the criminal complaint affidavit, on different dates from November 2021 to January 2022, defendants stored, sold and, in some cases, assembled fully automatic short-barreled rifles, AR-style pistols, and silencers. None of the rifles, pistols, or silencers had serial numbers, the weapons were all sold for cash, and code words were used when speaking about the illegal firearms over the telephone, says the affidavit. It is alleged that in connection with these weapons sales, Reguiera and Rabel failed to complete federally required paperwork, failed to initiate background checks on the buyer, and even failed to check the buyer’s identification, all of which federal law requires.
The criminal complaint affidavit also alleges that Reguiera sold “switch” devices. When installed, a switch allows a firearm to expel more than one bullet by a single pull of the trigger, turning the weapon into a fully automatic machine gun.
Reguiera and Rabel made their initial federal court appearances today before U.S. Magistrate Judge Lisette Reid, who sits in Miami. Reguiera and Rabel are each charged with possession of an unregistered firearm; unlawful transfer of a firearm; and conspiring to do the following: possession of an unregistered firearm, unlawful transfer of a firearm, failure to keep proper records as required by federal laws, and failure to conduct required background checks. They each face up to ten years’ imprisonment, if convicted.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Christopher Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Marshal Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida; Manuel A. Morales, Interim Chief of Police, City of Miami Police Department; Alfredo “Freddy” Ramirez III, Director, Miami Dade Police Department (MDPD); and George Fuente, Acting Chief of Police, Hialeah Police Department announced the charges.
ATF Miami, SDFL U.S. Marshals Service, City of Miami PD, Miami-Dade PD, and City of Hialeah PD investigated the case. A City of Miami Police Department Gang Intelligence Unit led to the investigation and arrests being announced today.
Assistant U.S. Attorney Karla Albite is prosecuting the case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case is also part of the Miami-Dade Chiefs of Police Operation Community Shield Initiative.
A criminal complaint contains mere allegations. Defendants are innocent unless and until found guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-mj-02120.
Click here for a picture of the AR-style pistols.
Click here for a picture of the short-barreled rifles.
###
Santa Rosa man pleads guilty to trafficking methamphetamine and fentanylRead the Press Release
ALBUQUERQUE – Paul James Jaramillo, III, 31, of Santa Rosa, New Mexico, pleaded guilty in federal court on Jan. 27 to possession with intent to distribute methamphetamine and fentanyl.
A federal grand jury indicted Jaramillo on May 12, 2021, on one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute fentanyl.
In the plea agreement, Jaramillo admitted that on March 11, 2021, while a resident at Diersen Charities Residential Reentry Center in Albuquerque, he accessed his “stash” of methamphetamine and fentanyl, which had been hidden in a bathroom stall. He admitted that the drugs in his possession were not meant for his own personal use and that he intended to deliver or transfer them to another person.
Jaramillo remains in custody pending sentencing, which has not been scheduled. The maximum penalty for each count is up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
San Diego Man Arrested and Charged with RobberyRead the Press Release
Assistant U. S. Attorney Carling Donovan (619) 546-4343
NEWS RELEASE SUMMARY – January 28, 2022
SAN DIEGO – Patrick Harrison Hawley was arrested by FBI Special Agents and San Diego Police Department detectives late last night in San Diego on a criminal complaint charging him with one count of Hobbs Act Robbery.
According to the complaint, Hawley is alleged to have robbed the Metro T-Mobile store located at 650 Douglas Drive in Oceanside, California. During that robbery, Hawley allegedly threatened to chop the employee’s head off if she did not comply with his demands for cash and electronic devices. Hawley robbed the store of approximately $300 along with cell phones and other electronic devices valued at approximately $3,500, before fleeing the scene on foot.
Hawley made his initial appearance this afternoon before U.S. Magistrate Judge Allison H. Goddard. He is scheduled to appear for a detention hearing set for February 3 at 10 a.m.
DEFENDANT Case Number 22mj300
Patrick Harrison Hawley Age: 34 San Diego, CA
SUMMARY OF CHARGES
Interference with Commerce by Robbery – Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Rosebud Man and Woman Indicted for Kidnapping, Assault, and Tampering ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, man and woman have been indicted by a federal grand jury for Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Tampering with a Victim, and Evidence Tampering.
Russell Eagle Bear, age 39, and Cleo Kills In Water, age 39, were indicted on January 20, 2022. Eagle Bear appeared before U.S. Magistrate Judge Mark A. Moreno on January 21, 2022, and Kills In Water appeared before U.S. Magistrate Judge Mark A. Moreno on January 27, 2022. Both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 6, 2021, and December 7, 2021, in Mellette County, South Dakota, Eagle Bear and Kills In Water kidnapped and held a man and woman against their will and assaulted both the man and woman with a dangerous weapon; the assault against the male resulted in serious bodily injury. Eagle Bear and Kills In Water further destroyed evidence of their crime and made threats to both victims in an attempt to prevent them from reporting their actions to law enforcement.
The charges are merely accusations and Eagle Bear and Kills In Water are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Eagle Bear and Kills In Water were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Repeat embezzler sentenced to prison for stealing nearly $300,000 from her employerRead the Press Release
Seattle – A 75-year-old woman from Lynnwood, Washington, who worked as a contract accountant, was sentenced today in U.S. District Court in Seattle to 6 months in prison and one year of home detention, announced U.S. Attorney Nick Brown. Over seven years, Judith Wright stole nearly $300,000 from Transportation Demand Management LLC (“TDM”), a Washington State passenger transportation company. This is Wrights second conviction for embezzling. In 1994 she was sentenced to a year and a day in prison for embezzling from the bank where she served as Chief Financial Officer.
At the sentencing hearing U.S. District Judge Richard A. Jones noted Wright’s prior conviction saying, “Even with the passage of time, you have little respect for the law.” Judge Jones said Wright had violated the trust of her employer and deprived others of money that could have changed their lives.
According to records filed in the case, between February 2010 and January 2017, Wright wrote some 120 fraudulent checks to herself and then disguised the payments in company books as if they were made to legitimate vendors. The fraud came to light when a new Chief Financial Officer at the company began questioning some of the entries. An FBI analysis of the accounts revealed that much of the money was clearly used for non-business expenses such as more than $78,000 in payments to Nordstrom, more than $17,000 spent with QVC (the home shopping network) and more than $20,000 spent at Costco.
This is the second time Wright has been sentenced for a similar embezzlement scheme. In 1994 she wrote unauthorized checks at the bank where she worked to pay her credit card bills. In that case the total theft was $45,000.
Under the terms of the plea agreement, Wright will pay $298,737 in restitution to her former employer.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorney Justin Arnold.
Repeat Sex Offender on Supervised Release Is Sentenced to 24.5 Years for Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger has sentenced John Webb Powell, 51, of Burnsville, N.C., to 294 months in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Powell to serve a lifetime under court supervision upon completion of the prison term and to register as a sex offender.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Shane Hilliard of the Yancey County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
“Powell will spend the next two decades where he belongs: behind bars,” said U.S. Attorney King. “Recidivist sex offenders who prey on vulnerable children pose a serious danger to the community and will be prosecuted to the fullest extent of the law. I commend the investigative efforts of HSI and the Yancey County Sheriff’s Office. Their work on this case ensured that Powell was brought to justice and will no longer inflict harm upon his victim.”
“As a result of the collaborative work of HSI and its law enforcement partners, Powell’s days of victimizing children have come to an end,” said Special Agent in Charge Martinez. “As a repeat offender, today’s significance sentence will ensure Powell will no longer pose a threat to children and communities in the region.”
“The Yancey County Sheriff’s Office will always be diligent in our efforts to protect the children of our community from sexual predators,” said Sheriff Hilliard. “We would like to thank Homeland Security Investigations and the U.S. Attorney’s Office for their assistance in the investigation and subsequent conviction of this repeat sex offender.”
According to filed court documents and yesterday’s sentencing hearing, in February 2020, Powell was communicating with a minor female via text messages. Over the course of their communications, Powell solicited and received from the minor, images depicting the minor engaging in sexually explicit conduct. According to information contained in court documents, Powell also committed repeated sexual assaults against the minor over an extended time period. A forensic analysis of Powell’s seized cell phone further revealed that Powell had conducted internet searches for images containing child pornography. At the time of the offense, Powell was registered as a sex offender and was on supervised release for a previous federal offense of possession of child pornography.
On October 18, 2021, Powell pleaded guilty to receiving child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked HSI and the Yancey County Sheriff’s Office for their investigation of the case.
The U.S. Attorney’s Office in Asheville prosecuted the case as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Red Lake Man Pleads Guilty to Possessing Child PornographyRead the Press Release
MINNEAPOLIS – A Red Lake man has pleaded guilty to possessing images depicting the sexual abuse of children, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on March 7, 2020, following a traffic stop, Bobby Lee Donnell, Sr., 43, was arrested by the Red Lake Police Department pursuant to an open warrant. After taking Donnell into custody, officers found on Donnell’s cell phone images of child sexual abuse involving minors under the age of 12.
Donnell pleaded guilty yesterday before U.S. District Judge Wilhelmina M. Wright to one count of possession of child pornography. A sentencing hearing will be scheduled for a later date.
This case was the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Red Lake Tribal Police Department, and the Minnesota Bureau of Criminal Apprehension (BCA).
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Raleigh Man Involved in Shooting Sentenced to 57 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Raleigh man was sentenced today to 57 months in prison for knowingly possessing a firearm and ammunition while being a convicted felon. On September 2, 2021, Tevin Darius Young pled guilty to the charge.
According to court documents and other information presented in court, Tevin Darius Young, 31, of Raleigh, was involved in a shooting event on September 29, 2019 in the area of Milburnie Road and Gibney Drive in Raleigh. An investigation of the shooting ultimately led to the search of a residence where officers found Young in possession of a stolen .45 caliber Glock handgun, a 26 round .45 caliber magazine, and various rounds of ammunition.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with the assistance of the Raleigh Police Department. Assistant U.S. Attorneys Evan Rikhye and William M. Gilmore prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-127-M.
Quebec Woman Pleads Guilty to Selling Protected Wildlife SkullsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Vanessa Rondeau, 27, of Montreal, Quebec, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to trafficking in protected wildlife. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on January 13, 2020, during online communications with an undercover U.S. Fish and Wildlife Service (FWS) Special Agent, Rondeau agreed to sell a polar bear skull to the agent for $780 USD. On January 24, 2020, Rondeau entered the U.S. at the Champlain, NY port of entry with the polar bear skull in violation of the Endangered Species Act and proceeded to a third-party shipping business to send the polar bear skull to the agent in Amherst, NY. The agent received the package on February 2, 2020. On January 26, 2021, Rondeau again communicated with the agent and agreed to sell another polar bear skull for $584.11 USD. On February 11, 2021, the agent received a Canada Post package from Rondeau which was labeled as “1 Cadre,” which is the French word for “frame.”
Rondeau also illegally trafficked in other protected wildlife by shipping and/or bringing wildlife from Canada to the United States without being declared to the FWS. The total value of the wildlife illegally trafficked by Rondeau was approximately $37,204.
The plea is the result of an investigation by the United States Fish and Wildlife Service, under the direction of Ryan Noel, Special Agent-in-Charge of the USFWS-Office of Law Enforcement North-Atlantic Appalachian Region. Additional assistance was provided by Environment and Climate Change Canada, and the Vermont Offices of Homeland Security Investigations and Customs and Border Protection.
Sentencing is scheduled for June 9, 2022, at 9:30 a.m. before Judge Vilardo.
# # # #
Prior Felon Pleads Guilty to New Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Julian Riley, 47, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to possess with intent to distribute, 500 grams or more of cocaine, 40 grams or more of fentanyl, and crack cocaine. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and an $8,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that Riley was the leader of a drug trafficking organization that sold large quantities of cocaine, crack cocaine and fentanyl out of a drug house on Clifton Street in Rochester. The residence was an active location for walk-up, hand to hand drug sales. On May 28, 2020, Rochester Police Officers executed a series of search warrants on the Clifton Street residence and other locations used by the organization. Large amounts of cocaine and cash were recovered during the execution of the search warrants. In December 2015, Riley was convicted on a federal charge of drug conspiracy and sentenced to serve 77 months in prison.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Interim Police Chief David Smith and the Drug Enforcement Administration, under the direction of Acting Special-Agent-in-Charge Timothy Foley.
Sentencing is scheduled for May 3, 2022, at 10:00 a.m. before Judge Siragusa.
# # # #
Preston County woman admits to wire fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Markitta Miller, of Reedsville, West Virginia, has admitted to wire fraud, United States Attorney William Ihlenfeld announced.
Miller, 28, pleaded guilty today to one count of “Conspiracy to Commit Wire Fraud.” Miller admitted to working with others to stage a vehicle accident, fabricate injuries, and file false insurance claims. The crime occurred from March to July 2019 in Taylor and Preston Counties.
Miller faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. ATF and the West Virginia Insurance Commission Fraud Unit investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Portland Man Sentenced for Possessing Child PornographyRead the Press Release
PORTLAND, Maine—A Portland man was sentenced today in federal court for possessing child pornography, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Andrew Hazelton, 29, to five years in prison to be followed by five years of supervised release. Hazelton pleaded guilty on July 22, 2021.
According to court records, in October 2019, Hazelton chatted online with a 10-year-old girl. During the chat—after learning that the girl was 10—he said he wanted to see her “sexy body,” and asked her to send him pictures of her in her panties and without a shirt. He also said he wished he could have sex with her.
FBI investigators later learned of the chat, and in April 2021 executed search warrants for Hazelton’s Portland residence and for his person. Agents encountered Hazelton just outside the residence. He had a smartphone in his pants pocket that he provided to investigators. An analysis of the phone revealed a folder containing dozens of video files depicting minors, some of them prepubescent, engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report an incident involving the possession, distribution, receipt, or production of child pornography, file a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, please call 911 or contact your local police or sheriff’s department.
Pittsburgh Cocaine Dealer Sentenced to 6 Years in PrisonRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced in federal court to six years’ (72 months’) imprisonment, followed by three years of supervised release on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence yesterday on Monty Grinage, 43, of the Swissvale area.
According to information presented to the court, Grinage sold powder cocaine in the Pittsburgh area between June and November of 2017.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Grinage.
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.
Pendleton County man admits to methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Cody Alan Grapes, of Riverton, West Virginia, has admitted to drug and firearms charges, United States Attorney William Ihlenfeld announced.
Grapes, 32, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Grapes admitted to having methamphetamine and a 5.56 mm rifle in November 2019 in Grant County.
Grapes faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge. Grapes faces at least five years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Paul Hendler Pleads Not Guilty to Forgery, False Statement ChargesRead the Press Release
The United States Attorney for the District of Vermont announced that Paul Hendler, 49, of Burlington, pleaded not guilty today in United States District Court in Burlington to federal forgery and false statement charges. U.S. Magistrate Judge Kevin J. Doyle released Hendler on conditions pending trial, which has not been scheduled.
In 2011, the U.S. Attorney’s Office first charged Hendler in a wide-ranging fraud indictment that accused Hendler of committing a variety of frauds against individuals and businesses. Hendler eventually pleaded guilty to wire fraud and money laundering and in 2015 was sent to prison. The court also ordered Hendler to pay restitution to multiple victims in a total amount of about $555,000. When Hendler got out of prison, he began a three-year term of supervised release. As a condition of supervised release, the court ordered Hendler to pay 10% of his gross monthly income toward his restitution obligation. Hendler’s release was supervised by the U.S. Probation Office in Vermont, and Hendler was required to submit monthly supervision reports to the Probation Office that included disclosures about monthly earnings and other cash inflows.
On January 27, 2022, a federal grand jury in Burlington returned a two-count indictment that charged Hendler with forgery and making false statements. According to the indictment, between 2019 and January 2021, Hendler performed some consulting and other work for a business that operated two restaurants in South Hero. Also according to the indictment, in 2020, Hendler took possession of the company’s check book. Between 2019 and January 2021, the indictment alleges, Hendler embezzled tens of thousands of dollars from the business by stealing cash receipts generated by the restaurants, forging the business owner’s signature on checks Hendler made out to himself, and by fraudulently inducing the owner to give him blank checks, signed by her, which Hendler then made payable to himself.
The second count of the indictment accuses Hendler of making materially false statements to the U.S. Probation Office in his monthly supervision reports. According to the indictment, the reports Hendler filled out and gave to Probation significantly underreported the amount of money Hendler was receiving from the South Hero restaurant business.
The U.S. Attorney emphasizes that the charges in the indictment are merely accusations and that Hendler is presumed innocent unless and until he is proven guilty.
If convicted, Hendler faces up to ten years of imprisonment on the forgery charge, up to five years of imprisonment on the false statement charge, and a fine of up to $250,000 for each offense. The actual sentence would be determined with reference to federal sentencing guidelines. The United States is also seeking forfeiture of money or property that Hendler obtained from the alleged forgery.
This case was investigated by the Boston Office of the U.S. Treasury Department’s Office of the Inspector General for Tax Administration.
Hendler was represented at today’s hearing by the Office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Park Hills Missouri man pleads guilty to possession of child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Rodney W. Sippel accepted a plea of guilty from Scott E. Reid on today’s date for possession of child pornography. A grand jury in the Eastern District of Missouri previously indicted Reid for the charge. Judge Sippel set sentencing for April 29, 2022.
According to the plea agreement, on or about August 11, 2019, Reid uploaded via the internet multiple images of child sexual abuse material to a website. Uploaded were images including that of a minor female engaged in lascivious behavior.
On December 19, 2019, a search warrant was executed at the residence of Reid in St. Francois County, Missouri. Law enforcement seized computers and electronics on which Reid had downloaded from the internet 3,344 images and 24 videos of child pornography depicting juveniles engaged in sexual conduct. Reid admitted that he has viewed child pornography beginning as early as 1995 through internet chatrooms.
The case was investigated by the U.S. Secret Service, the Missouri State Highway Patrol, the Missouri State Technical Assistance Team and the St. Francis County Prosecuting Attorney’s Office.
Paducah Man Sentenced to 12 Months in Prison for Cares Act FraudRead the Press Release
PADUCAH, Ky – A Paducah man was sentenced on Tuesday, January 25, 2022, to 12 months in prison and an ordered to pay restitution in the amount of $7,500 for fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Javon A. Wiley, 20, filed fraudulent applications with the Small Business Administration (SBA) in order to receive Economic Injury Disaster Loan (EIDL) funds, a CARES Act financial assistance program which 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.
Wiley received a $4,000 grant and $3,500 loan through the EIDL program from the SBA by applying for COVID-19 disaster relief funds for a car detailing business that he claimed to own. Law enforcement discovered, however, that this business did not actually exist, and that Wiley had provided false information to the SBA in order to obtain the funds. Wiley also attempted to obtain an additional $10,000 in COVID-19 relief funds by submitting an application to the SBA for a barber shop that also did not exist. In that application, Wiley claimed the fictitious barber shop employed ten workers in Paducah and requested a $1,000 grant for each employee.
“With the assistance of our federal, state, and local law enforcement partners, we will continue to identify, apprehend, and prosecute fraudsters who steal federal relief funds,” stated Michael A. Bennett, United States Attorney for the Western District of Kentucky. “Applicants in need and hardworking taxpayers who fund financial assistance programs deserve nothing less.”
“This case should serve as a strong deterrent for criminal actors who are considering taking part in related fraud schemes. The U.S. Secret Service, along with our local, state and federal law enforcement partners, will continue to investigate and arrest criminals who attempt to defraud our citizens and businesses.” said Robert Holman, Special Agent in Charge, U.S. Secret Service - Louisville Field Office.
The United States Secret Service investigated the case with the assistance of the Paducah Police Department and the SBA Office of Inspector General.
Assistant U.S. Attorney Raymond McGee prosecuted the case.
###
Online Contact Lens Company Ordered to Pay $3.5 Million in Civil Penalties and Consumer Redress for Violating Federal Contact Lens LawsRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced that the government will collect $1.5 million in civil penalties and $2 million in consumer redress from online contact lens company Vision Path Inc., dba Hubble Contacts (Hubble), as part of a settlement to resolve allegations that Hubble violated the Fairness to Contact Lens Consumers Act and the FTC’s Contact Lens Rule.
In a complaint filed in the U.S. District Court for the District of Columbia, the government alleged that Hubble violated the federal Fairness to Contact Lens Consumers Act and the FTC’s Contact Lens Rule by selling contact lenses online without taking the steps required to verify the subscriber’s contact lens prescription, improperly substituting Hubble’s own brand of contact lenses for those originally prescribed by consumers’ eye care practitioners and procuring what it falsely portrayed as independent consumer reviews of its products and services. In addition to requiring Hubble to pay civil penalties and consumer redress, the stipulated order entered by the court today requires Hubble to refrain from altering prescriptions to change the brand prescribed, to verify the prescription for contact lens orders submitted without a written prescription, to cease other deceptive practices and to satisfy ongoing recordkeeping, certification and compliance obligations.
“The Department of Justice will not tolerate the violation of laws intended to ensure that consumers receive the products prescribed for them,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to protecting consumers from companies that engage in deceptive practices.”
“Hubble’s business model boosted its bottom line but created needless risk for its customers’ eye health,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Today’s action makes clear that firms will pay a price for deceiving their customers, flouting the Contact Lens Rule, and using misleading reviews.”
This matter is being handled by Claude Scott of the Civil Division’s Consumer Protection Branch and Alysa S. Bernstein and Paul Spelman of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
North Tonawanda Man Pleas Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Matthew Ostrowski, 49, of North Tonawanda, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of child pornography involving a prepubescent minor. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that in October 2019, Ostrowski uploaded and distributed an image containing child pornography to the gaming application Discord. On December 17, 2019, investigators executed a federal search warrant at Ostrowski’s Meadow Drive residence in North Tonawanda and seized seven electronic devices, as well as his iPhone. A forensic analysis of the iPhone recovered 4,204 image files of child pornography and 8,523 images of child exploitative material, a majority of which depicted minors under the age of 12. The search of the iPhone also resulted in the recovery of deleted text conversations between Ostrowski and a minor female victim, who communicated for at least a year over Kik and SnapChat, while the minor female was 15 and 16 years old. During that time, Ostrowski requested that she send him “nudes.” On February 5, 2020, another federal search warrant was executed at the defendant’s residence. Investigators located a computer, which contained 178 image files and five videos of child pornography, a majority of the files depict minors under the age of 12.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for June 7, 2022, before Judge Sinatra.
# # # #
North Carolina Surgeon and Wife Sentenced to Prison for Tax CrimesRead the Press Release
A North Carolina surgeon and his wife were sentenced today to five years in prison for federal employment and individual income tax crimes.
According to evidence presented at trial and statements made in court, James Rice, an orthopedic surgeon, and his wife Susan Rice, who worked for his medical practice, conspired to defraud the IRS, evaded payment of taxes, failed to pay over employment taxes and failed to file tax returns. In total, the Rices did not pay more than $2.4 million in personal, corporate and employment taxes that they owed.
From 1992 to present, James Rice owned and operated Sandhills Orthopaedic, a medical practice located in Pinehurst, North Carolina. Susan Rice handled the practice’s administrative operations. Between 2007 and 2016, the Rices conspired to defraud the United States with respect to Sandhills Orthopaedic’s employment taxes and their individual income taxes. To accomplish this, the Rices transferred approximately $1 million from Sandhills Orthopaedic’s business bank accounts to other accounts they controlled, including personal bank accounts and a business account related to an unrelated truffle company owned by Susan Rice. The Rices also used Sandhills Orthopaedic’s business bank accounts to pay for personal expenses, including a country-club membership and dog kennel boarding.
The Rices also withheld nearly $580,000 in taxes from the paychecks of the medical practice’s employees, then used those withholdings for their own personal gain rather than paying them over to the IRS as required by law. Finally, from 2014 to 2016 the Rices did not file individual tax returns, and James Rice did not file corporate taxes for another entity he owned, even though they were respectively required to file returns for all of those years.
“As a result of today’s sentence, James and Susan Rice’s prolonged effort to evade paying their taxes has come to an end,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Each year, the vast majority of Americans and businesses follow the tax laws and pay their fair share. Those who willfully evade such obligations should fully expect to be held accountable for their criminal conduct.”
“Failure to pay over withheld taxes is a serious offense,” said Special Agent in Charge Donald “Trey” Eakins of the IRS Criminal Investigation, Charlotte Field Office. “Employment tax evasion results in the loss of tax revenue to the U.S. government and the loss of future Social Security and Medicare benefits for those employees. The investigation of employment tax fraud is a priority for IRS Criminal Investigation, and our special agents will vigorously pursue anyone who collects these taxes and then uses the funds for their own personal gain.”
On Sept. 20, 2021, a federal jury convicted the Rices of one count of conspiracy to defraud the United States, one count of tax evasion, two counts of failure to pay over employment taxes and three counts of failure to file tax returns. The jury also convicted James Rice of three counts of failure to file corporate tax returns. In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered the Rices to serve three years of supervised release and to pay approximately $2.4 million in restitution to the United States.
Acting Deputy Assistant Attorney General Goldberg made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Alexander Effendi and Michael L. Jones of the Justice Department’s Tax Division prosecuted the case.
Niobrara Man Sentenced for Sexual Abuse of a ChildRead the Press Release
United States Attorney Jan Sharp announced that Warren Lee Mackey, 68, of Niobrara, Nebraska, was sentenced on January 27, 2022, by Senior United States District Judge Joseph F. Bataillon to 30 years’ imprisonment for aggravated sexual abuse of a child and 10 years’ imprisonment for sexual abuse of a child, to be served concurrently. Mackey will be on supervised release for 5 years after his release from prison. There is no parole in the federal system.
A jury found Mackey guilty in October 2021 for an offense that occurred on the Santee Sioux Nation Indian Reservation. The charges stemmed from a disclosure made by an 11-year-old child that the defendant touched her clitoris and her breast. The defendant claimed during an interview with the Federal Bureau of Investigation that he was asleep and did not know whether he had done anything to the child, but was dreaming about an adult female.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation.
New Orleans Man Indicted for Christmas Eve Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DEVIN CHANEY, age 32, was charged today in a two-count indictment with one count for bank robbery in violation of Title 18, United States Code, Section 2113(a) and (d) and one count for use of a firearm during and in relation to a crime of violence pursuant to Title 18 United States Code, Section 924(c)(1)(A)(ii).
According to the indictment, CHANEY robbed the Capital One Bank located in New Orleans, Louisiana on December 24, 2021. CHANEY used a firearm when committing the bank robbery.
If convicted of armed bank robbery, CHANEY faces a maximum term of imprisonment of 25 years, a fine of up to $250,000.00, up to five years supervised release after imprisonment, and a $100 mandatory special assessment fee. If convicted of brandishing a firearm during the bank robbery, CHANEY faces a mandatory consecutive minimum sentence of seven years up to a maximum of life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release and a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation Violent Crimes Task Force and New Orleans Police Department in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
* * *
Minneapolis Man Sentenced to Prison for Sexually Abusing a Minor Aboard a Flight En Route to MSPRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 15 months in prison for engaging in abusive sexual contact on an airplane. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
According to court documents, in April 2019, Neeraj Chopra, 41, knowingly engaged in abusive sexual contact with a 16-year-old victim who was seated next to him aboard a Jet Blue flight from Boston to Minneapolis. During the flight, Chopra retrieved a blanket from his backpack and draped it over his lap, with a portion of the blanket also covering the victim’s right leg. Chopra put his hand under the blanket and began inappropriately touching the victim. Chopra ignored the victim’s multiple requests to stop and continued to inappropriately touch the victim.
On July 14, 2021, following a three-day trial, a federal jury convicted Chopra on one count of abusive sexual contact.
This case was the result of an investigation conducted by the Federal Bureau of Investigation, with assistance from the Minneapolis-St. Paul Airport Police.
This case was prosecuted by Assistant U.S. Attorneys Lauren O. Roso and Michelle E. Jones.
Minneapolis Felon Sentenced to 9.5 Years in Prison for Illegal Possession of a Firearm, AmmunitionRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 115 months in prison followed by three years of supervised release for illegally possessing a firearm and ammunition as a felon. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
On August 3, 2021, following a four-day trial, Johnnie Lamar Haynes, 33, was convicted of one count of possessing a firearm as a felon and one count of possessing ammunition as a felon.
According to the evidence presented at trial, on August 5, 2019, Minneapolis police officers responded to a shots-fired call at a gas station near Lowry Avenue and Logan Avenue North in Minneapolis. Upon arrival, officers found 11 discharged cartridge casings on the street in front of the gas station. Video surveillance footage showed Haynes interacting with two men inside the gas station. After leaving the gas station the two other men got in a vehicle and drove off. Minutes later, the two men circled the block in their vehicle and returned to the gas station. Haynes then began shooting at the vehicle as it drove off. A nearby business was in the line of Haynes’s gunfire and was struck by multiple rounds. Surveillance video footage from the business captured the bullets entering the building, causing employees to duck and take shelter.
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.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minneapolis Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez prosecuted the case.
Milwaukee Pharmacy Chain to Pay over $2 Million to Resolve Allegations It Violated the False Claims ActRead the Press Release
United States Attorney Richard G. Frohling announced today that Hayat Pharmacy agreed to pay $2,050,000 to resolve allegations that it submitted false claims to Medicare and Medicaid for prescription medications.
Hayat Pharmacy operates 23 pharmacy locations in the greater Milwaukee area. The United States alleged that Hayat Pharmacy submitted false claims to Medicare and Medicaid in 2019 for two prescription medications, a topical cream consisting of iodoquinol, hydrocortisone, and aloe, and a multivitamin with the trade name Azesco. During the relevant time period, Medicaid paid thousands of dollars per prescription for the iodoquinol-hydrocortisone-aloe cream, and Medicare paid hundreds of dollars per prescription for Azesco. The United States alleged that Hayat Pharmacy switched Medicaid and Medicare patients from lower cost medications to the iodoquinol-hydrocortisone-aloe cream and Azesco without any medical need and/or without a valid prescription. In addition to paying over $2 million to resolve the allegations concerning these false claims, Hayat Pharmacy agreed to conduct annual training concerning waste, fraud and abuse, and compliance with rules concerning medication switches.
“Medicare and Medicaid only pay for prescription medications that are needed by patients, not prescriptions dispensed by pharmacies simply to increase their profits,” said United States Attorney Frohling. “This settlement imposes a significant penalty on Hayat Pharmacy and will make the federal government whole for the pharmacy chain’s wrongdoing.”
“Our watchdog agency will hold accountable pharmacies who try to boost their profits by billing federal health care programs for medically unnecessary medications,” said Special Agent in Charge Mario M. Pinto, HHS-OIG, Chicago Region.
James B. Hurley, Acting Special Agent in Charge, Federal Bureau of Investigation, Milwaukee Field Office, said: “The FBI prioritizes efforts to stop healthcare fraud and will continue to hold accountable pharmacies and other medical providers who misuse Medicare and Medicaid dollars. By requiring Hayat Pharmacy to repay over $2 million, this settlement underscores that healthcare providers cannot put their interests ahead of their patients or the taxpayers.”
The government’s investigation resulted from a whistleblower complaint filed under the qui tam provisions of the False Claims Act. The whistleblower will receive a share of the settlement. The lawsuit is captioned United States ex rel. Hussein v. Hayat Pharmacy, LLC, et al., 20-cv-472, and is pending in the District Court for the Eastern District of Wisconsin.
Assistant United States Attorney Michael Carter represented the government in this matter. The HHS-OIG, FBI, and the Wisconsin Department of Justice assisted in the investigation. The settlement agreement states allegations only; Hayat Pharmacy does not admit liability for the allegations.
# # #
For further information contact:
(414) 297-1700
Follow us on Twitter
Mexican Man Who Used a Fraudulent Permanent Resident Card Sentenced to Jail Time and Supervised ReleaseRead the Press Release
A man who used a false identification document was sentenced today to nine days in prison.
Francisco Gonzalez-Matias, age 42, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the sentence after a November 22, 2021 guilty plea to one count of unlawful use of an identification document.
At the guilty plea, Gonzalez-Matias admitted he used a fraudulent Permanent Resident Card, also known as a “green card,” when he completed employment forms at a business in Cedar Falls in April 2021. On the employment application, Gonzalez-Matias falsely claimed to be a lawful permanent resident of the United States. The Alien Registration number on the green card was assigned to a male from Russia. Gonzalez-Matias also used a fictitious Social Security Number on employment and tax forms at the business. Social Security and Permanent Resident cards are documents used to prove identity and are prescribed by statute or regulation for entry into or as evidence of authorized stay or employment in the United States. As an illegal alien, Gonzalez-Matias was not authorized to work in the United States.
Gonzalez-Matias was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gonzalez-Matias was sentenced to nine days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gonzalez-Matias was released following the hearing to begin serving his term of supervised release.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2029.
Follow us on Twitter @USAO_NDIA.
Meridian Man Sentenced to 5 Years in Prison for Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – A Meridian man was sentenced to 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court records, on August 10, 2019, Reginald D’Mond Kelly, 44, was arrested by officers of the Lauderdale County Sheriff’s Office for pending charges related to the sale of narcotics. During the course of the arrest, Kelly’s vehicle was searched, and the officers found methamphetamine and a 9mm caliber handgun in the vehicle’s trunk.
Kelly pled guilty on September 14, 2021, to possession of a firearm in furtherance of a drug trafficking crime.
The Lauderdale County Sheriff’s Office and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted 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.
Member of United Skinhead Nation Guilty of Federal Firearms OffenseRead the Press Release
Miami, Florida – This week, 58-year-old Leslie Lee Gross, pled guilty in federal court in Fort Pierce to possessing a firearm and ammunition as a convicted felon.
As part of his guilty plea, Leslie Lee Gross admitted that on July 5, 2020, he sold a Smith & Wesson, Model M&P40, .40 caliber semi-automatic pistol and two loaded .40 caliber magazines. Gross admitted he had discussed the time he spent in prison with the buyer and told the buyer that he was a member of the Aryan Brotherhood, a neo-Nazi prison gang. Gross also admitted that when he sold the firearm, he was an active member of the United Skinhead Nation, which is known as a racist skinhead hate group with chapters in Florida and Tennessee. Gross claimed he had to get guns on the street because he was unable to legally purchase firearms due to his criminal history.
U.S. District Judge Aileen M. Cannon will sentence Gross in Fort Pierce on April 7, at 10:45 a.m. Gross faces up to 10 years in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated this case. Assistant U.S. Attorney Michael D. Porter is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14024.
###
Member of Armed Robbery Crew Sentenced to 14 Years in PrisonRead the Press Release
LAS VEGAS – A Henderson man who was a member of a crew that robbed at least nine stores in southern Nevada was sentenced today to 14 years in prison.
Kaili Tualau (31) pleaded guilty in October 2021 to three counts of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime. In addition to the term of imprisonment, U.S. District Judge James C. Mahan sentenced Tualau to three years of supervised release.
According to court documents, between March and October 2016, Tualau and co-conspirators Jason Goldsby, Rudy Redmond, Bonnie Madrigal, Jessie Mendoza, and others robbed at least nine pawn shops in Las Vegas and Henderson. During each robbery, one robber stood guard at the door brandishing a firearm, while another robber used a sledgehammer to break open a display case and steal high value jewelry and watches. The robbers then fled in a stolen getaway vehicle, which they later abandoned for a second getaway vehicle. In total, the stolen items were valued at approximately $201,900.
Goldsby, Redmond, and Madrigal all pleaded guilty in September and October 2021. Redmond has been sentenced, while Goldsby and Madrigal are awaiting sentencing. Mendoza pleaded guilty in September 2019 to his role in one robbery and was sentenced to 43 months in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI with significant assistance from the Las Vegas Metropolitan Police Department and Henderson Police Department. Assistant U.S. Attorneys Tony Lopez, Jim Fang, and Simon Kung are prosecuting the case.
###
Medical Imaging Companies CEO Sentenced to 5 Years in Prison for $250 Million Health Care Fraud Run via State Workers’ Comp SystemRead the Press Release
SAN DIEGO – The CEO of several Southern California-based medical imaging companies was sentenced today to 60 months in federal prison for running a scheme that submitted more than $250 million in fraudulent claims through the California Workers’ Compensation System for medical services procured through bribes and kickbacks to physicians and others.
Sam Sarkis Solakyan, 40, of Glendale, was sentenced by United States District Judge Cynthia A. Bashant. Judge Bashant also ordered him to pay $27,937,175 in restitution to the victim insurers. She also banned him from working in the health care and workers compensation industries for his three-year term of supervised release once he completes his prison sentence.
During an eight-day trial that concluded on July 2, a jury found Solakyan guilty of one count of conspiracy to commit honest services mail fraud and health care fraud, and 11 counts of honest services mail fraud.
“[Solakyan] paid some $9 million in kickbacks in order to generate over $250 million in fraudulent medical billings, the vast majority of which were for MRIs [magnetic resource images] that were…totally medically unnecessary,” prosecutors wrote in a sentencing memorandum. “[Solakyan] devised, and through his kickbacks fueled, a cross-referral scheme that incentivized [co-conspirators] to herd patients to physicians who overprescribed ancillary services in exchange for cash and other economic benefits.”
Solakyan was the CEO of several medical-imaging companies, including the Glendale-based Vital Imaging Inc., and San Diego MRI Institute. Solakyan operated diagnostic imaging facilities throughout California, including the Bay Area, Los Angeles and Orange counties, and San Diego.
From no later than mid-2013 to November 2016, Solakyan conspired with physicians and others to perpetrate a scheme in which physicians were paid bribes and kickbacks in exchange for the referral of workers’ compensation patients. The compensation offered to the corrupt doctors consisted of either cash or referrals of new patients in what is known as a “cross-referral” scheme.
The conspirators obscured the true nature of their financial relationships to conceal the bribes and kickbacks, including by entering into various sham agreements such as contracts for “marketing,” “administrative services,” and “scheduling,” when in fact the money Solakyan paid amounted to volume-based, per- magnetic resonance imaging (MRI) scan bribes and kickbacks to induce physicians to refer and continue referring patients to Solakyan’s companies.
Solakyan’s recruiters required physicians to refer a minimum number of patients to receive “cross-referrals,” and those referrals stopped if the physicians failed to meet the minimum quota. Solakyan paid more than $8.6 million in kickbacks disguised largely as sham “scheduling” fees in exchange for MRI referrals, payments which were concealed from patients and health insurers.
In total, Solakyan submitted and caused to be submitted more than $250 million in claims for medical services procured through the payment of bribes and kickbacks.
The FBI and the California Department of Insurance, Fraud Division, investigated this matter.
Assistant United States Attorneys Adam P. Schleifer of the Major Frauds Section and Faraz R. Mohammadi of the Santa Ana Branch Office prosecuted this case.
Maryland man admits to role in drug trafficking and firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Charles Grant, of Waldorf, Maryland, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Grant, 61, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone.” Grant admitted to working with others to distribute Eutylone from June 2019 to December 2020 in Berkeley and Jefferson Counties and elsewhere.
Grant 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department, and the Metropolitan Police Department of Washington, D.C. investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Orchestrated the Sale of Hundreds of Kilos of Meth for the Universal Aryan Brotherhood Pleads GuiltyRead the Press Release
A member of the Universal Aryan Brotherhood has pleaded guilty in federal court for leading and organizing the sale of hundreds of kilos of methamphetamine throughout Oklahoma, announced U.S. Attorney Clint Johnson.
Jeremy C. Anderson, 34, pleaded guilty to the charge of continuing criminal enterprise but refused to cooperate with the United States. If the plea agreement is accepted by a federal judge, Anderson will serve 22 years in federal prison.
“Jeremy Anderson’s methamphetamine operation helped support the Universal Aryan Brotherhood’s criminal enterprise and contributed to addiction and violence in Oklahoma. He has now been held accountable,” said U.S. Attorney Clint Johnson. “The successful prosecution of this criminal enterprise is an example of what can be accomplished when law enforcement agencies team up to share their unique capabilities and resources.”
In his plea agreement, Anderson admitted from at least 2011 and continuing through December 2018, he led, organized and managed a large-scale methamphetamine distribution enterprise. The enterprise involved more than five people who obtained and distributed hundreds of kilos of methamphetamine at Anderson’s direction. The methamphetamine was manufactured in Mexico and distributed throughout the state of Oklahoma, including Tulsa. Anderson obtained hundreds of thousands of dollars from the sale and distribution of the drug.
Anderson was initially charged on Dec. 7, 2018, with 17 other UAB members and associates. The indictment was unsealed Feb. 20, 2019, and alleged the gang to be a racketeering enterprise that committed acts of murder, kidnapping, the trafficking of methamphetamine and firearms, money laundering, assault, and robbery throughout the State of Oklahoma.
The UAB was established in 1993 within the Oklahoma Department of Corrections and modeled itself after the principles and ideology of the Aryan Brotherhood, a California-based prison gang that formed in the 1960s.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation led the investigation with assistance from the Tulsa County Sheriff’s Office, the Oklahoma Department of Corrections, the Tulsa and Enid Police Departments, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Dennis A. Fries is prosecuting this case.
You can find the press release announcing charges here.