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Thursday 9 December 2021
Albuquerque man sentenced to 4 years in prison for weapons and identity violationsRead the Press Release
ALBUQUERQUE, N.M. – Travis Fanning, 26, of Albuquerque, was sentenced on Dec. 8 in federal court to four years and nine months in prison for being a felon in possession of a firearm and ammunition and possession with intent to use or transfer five or more identification documents or authentication features. Fanning pleaded guilty on May 20.
According to the plea agreement and other court records, on Aug. 22, 2020, Fanning was a passenger in a vehicle that was stopped for a traffic violation. Law enforcement found Fanning in possession of a loaded, stolen pistol. Three months later on Nov. 19, 2020, police responded to a report at an apartment complex regarding a man smoking methamphetamine and sleeping in a shared laundry room. Officers found Fanning with a loaded firearm and a folder filled with identification documents, including Social Security cards, driver licenses, bank statements and blank checks.
At the time of these incidents, Fanning had six previous felony convictions in Illinois and New Mexico. As a convicted felon, Fanning could not legally possess a firearm or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Jaymie L. Roybal prosecuted the case.
Albany Man Pleads Guilty to Possessing a Firearm as a Felon at Albany International AirportRead the Press Release
ALBANY, NEW YORK – Josef Jarvis, age 32, of Albany, pled guilty today to unlawfully possessing a firearm as a felon at the Albany International Airport on August 16, 2021.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Jarvis, who has prior felony convictions for racketeering and weapons offenses, admitted that he possessed a loaded handgun and ammunition while attempting to pass through a security checkpoint at Albany International Airport on August 16, 2021.
Jarvis faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when Chief U.S. District Judge Glenn T. Suddaby sentences him on April 28, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF) and the Albany County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
Abingdon Man Pleads Guilty to Possession of Stolen Mail, Bank FraudRead the Press Release
ABINGDON, Va. – An Abingdon, Virginia man who stole hundreds of pieces of mail from over 100 different addresses in the Abingdon area, including a check he altered and cashed at a local bank, pleaded guilty today to related charges.
Bradley Alan Wolfe, 38, admitted today to possessing hundreds of pieces of mail that he stole from residential mailboxes in the Abingdon area in March, April, and September 2021. Items taken include multiple packages, cash, a United States passport, and checks ranging from a couple hundred dollars to thousands of dollars. Wolfe altered one of the checks he stole by replacing the payee’s name with his own and cashed the check at Eastman Credit Union in Abingdon for $4,890.
Wolfe pleaded guilty to possession of stolen mail and one count of bank fraud. He is scheduled to be sentenced on February 28, 2022 and faces a maximum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Washington County Sheriff’s Office and the United States Postal Inspection Service investigated the case, with assistance provided by the United States Marshals Service.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
A Bankruptcy Petition Preparer in Goshen, Indiana was SentencedRead the Press Release
SOUTH BEND – Ronya Phillips, age 47, of Goshen, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon her plea of guilty to two counts of suborning perjury, announced United States Attorney Clifford D. Johnson.
Phillips was sentenced to serve 18 months home detention.
According to documents in this case, Phillips was formerly a bankruptcy petition preparer (a “BPP”) in the Northern District of Indiana. In that capacity she prepared bankruptcy petitions and other documents for debtors who filed cases in the United States Bankruptcy Court for the Northern District of Indiana.
As part of her guilty plea, Phillips admitted that she willfully suborned and procured individuals to commit perjury by submitting materially false declarations in federal bankruptcy proceedings. Certain debtors and clients of Phillips reported that she had induced them to falsely state on their bankruptcy documents that they had paid her half of the amount they had actually paid her for her services. Phillips also persuaded her clients to testify falsely under oath as to how much they had paid her when questioned by the bankruptcy trustee. Finally, Phillips herself submitted false sworn statements in disclosures which only disclosed half of the amount of money she actually had received from clients.
“The U.S. Attorney’s office will vigorously enforce federal laws that govern the conduct of persons participating in the bankruptcy system and, as this case shows, we will prosecute individuals whose conduct undermines the integrity of the bankruptcy process,” said United States Attorney Clifford D. Johnson.
“Abuse of the bankruptcy system by having consumers falsify documents and provide false testimony strikes at the very core of the integrity of the bankruptcy system, undermines public confidence in that system and is a practice against which consumers need to be protected,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois. “I am grateful to U.S. Attorney Clifford Johnson and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Northern District of Indiana. The case was investigated by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10. This case is being prosecuted by Assistant United States Attorney Luke N. Reilander and Special Assistant United States Attorney Jennifer W. Prokop from the U.S. Trustee’s Office.
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2 defendants charged in T&A Crips case each sentenced to at least 18 years in prisonRead the Press Release
COLUMBUS, Ohio – Two of the 19 defendants convicted in a Columbus gang-related racketeering conspiracy were sentenced in federal court this week.
Brandon Martin, 29, was sentenced yesterday to 24 years in prison. Martin shot and killed William Moore, a rival Poindexter Thug Life Bloods gang member, in March 2013.
Terrell Scott Hansard, 24, was sentenced today to 18 years in prison. Hansard drove the vehicle when gang members shot and killed 7-year-old Deoante Fisher in March 2016.
The racketeering conspiracy first charged in 2018 includes five murders, at least 26 attempted murders, and other violent and drug-trafficking crimes.
The local T&A Crips gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly resided.
T&A controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators in this case have been convicted of five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of seven-year-old Deonte Fisher on March 4, 2016.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Roland H. Herndon, Jr., Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; and United States Marshal Pete Tobin announced the sentences imposed by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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Wednesday 8 December 2021
Woman Sentenced for Aggravated Identity Theft and Mail FraudRead the Press Release
RALEIGH, N.C. – A Winston-Salem woman was sentenced today to 28 months incarceration, two years supervised release and a $7,005.00 in restitution for impersonating the identity of two victims. On August 24, 2021, Melanie Alecia Ruona pled guilty to two counts of a six-count indictment charging her with Aggravated Identity Theft and Mail Fraud.
According to court documents and other information presented in court, Melanie Alecia Ruona, 34, and others perpetrated a scheme to illegally access the North Carolina Division of Motor Vehicles’ computers and steal the identities of the individuals she accessed. By doing this Rouna was responsible for stealing the identity of two victims. Rouna used the identity of one of the victims to open a credit account at a local department store in Greensboro and purchased $4,071.50 in goods. Rouna also applied for unemployment benefits in the identity of the victim for a loss of $2,934 to North Carolina Division of Employment Security.
In October of 2020, the North Carolina Division of Motor Vehicles, License and Theft Bureau in conjunction with the U.S. Secret Service and the U.S. Postal Inspection Service, identified a criminal scheme involving multiple individuals who had assumed the identities of hundreds of victims and then perpetrated various crimes using the victims’ identity.
Rouna is the fourth defendant to be prosecuted in the Eastern District based on similar schemes to illegally access the North Carolina Division of Motor Vehicles computers, that were identified previously.
Michael F. Easley, Jr. U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Task Force comprised of the North Carolina Division of Motor Vehicles, License and Theft Bureau, U.S. Secret Service, and U.S. Postal Inspection Service investigated the case and Assistant U.S. Attorney Gabriel Diaz 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-202-1BO, 5:21-CR-339-1D, 5:21-CR-284-FL, and 5:21-CR-338-1FL.
Winston-Salem Nurse Pleads Guilty to Tampering with Medical SuppliesRead the Press Release
GREENSBORO, N.C. - A Winston-Salem woman pleaded guilty today to attempting to tamper with consumer products, announced U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to court filed documents, Emilee Kathryn Poteat, 32, removed and opened packages containing vials of injectable Hydromorphone from Novant Health Forsyth Medical Center (NHFMC) while employed as a contact nurse in the Clinical Pre/Post Procedure Unit. From July, 2020 to November, 2020, Poteat removed vials for the purpose of converting and consuming the Hydromorphone by injecting the drug into herself. Poteat then replaced the used vials with tampered vials containing a saline solution. Poteat knew that, in doing so, nurses at NHFMC might unknowingly administer the contents of compromised vials to patients.
Virginia Department of Health Investigator Laura Pezzulo began an investigation into Poteat’s handling of the drugs after NHFMC provided vials they suspected had been tampered with by Poteat. Poteat later admitted to tampering with the injectable Hydromorphone in an interview with Investigator Pezzulo.
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
U.S. District Judge Loretta C. Biggs will set sentencing at a later date. At sentencing, Poteat faces a maximum sentence of ten years in prison, a period of supervised release, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Food and Drug Administration/Criminal Investigation Division investigated the case. The case is being prosecuted by Assistant U.S. Attorney Frank J. Chut.
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Williamsport Man Sentenced to Five Years’ Imprisonment for Firearm OffenseRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 7, 2021, Joshair Jones, age 19, of Williamsport, Pennsylvania, was sentenced to five years’ imprisonment to be followed by three years of supervised release by Chief U.S. District Court Judge Matthew W. Brann for possession of a firearm with an obliterated serial number.
According to United States Attorney John C. Gurganus, Jones possessed the firearm between August 1 and August 16, 2020. The firearm was recovered by law enforcement on August 16, 2020, and further analysis of the weapon revealed fingerprints that were a match for Joshair Jones.
At the sentencing hearing, the United Stated presented evidence of Jones’s involvement in a shooting that occurred on July 31, 2020, in Williamsport, along with Jones’s possession of a rifle on August 16, 2020. The Court listened to recorded phone calls in which Joshair Jones acknowledged his role in the shooting and discussed a potential retaliatory shooting that individuals threatened would occur in a residential neighborhood in Williamsport. The United States also played a phone call in which Jones directed another individual to bring him a semi-automatic rifle on August 16, 2020. That rifle was recovered by law enforcement on August 19, 2020.
In sentencing the defendant to the maximum allowed, Chief Judge Brann called Jones one of the more dangerous individuals who had come before him.
The investigation was conducted by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County Narcotics Enforcement Unit, the Federal Bureau of Investigation, and the Drug Enforcement Administration. Assistant United States Attorney Alisan V. Martin 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.
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USP Lee Inmate Sentenced for Possessing WeaponRead the Press Release
ABINGDON, Va. – An inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia was sentenced this week to 18 months in prison for possessing a weapon inside the prison.
Inmate Marquell Alonzo Derrington, 26, was convicted of possessing an 8-inch long, prison-made sharpened weapon, and pleaded guilty on September 7, 2021.
The investigation of the case was conducted by the Federal Bureau of Prisons.
Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
U.S. Virgin Islands Law Enforcement and Prosecutors Honored in Organized Crime Drug Enforcement Task Force National Awards Virtual Ceremony for Operation Py Beto KiloRead the Press Release
St. Thomas, USVI — United States Attorney Gretchen C.F. Shappert announced today that federal, state, local and territorial law enforcement and prosecutors were honored in a virtual Organized Crime Drug Enforcement Task Force (OCDETF) ceremony this morning. The awards ceremony included presentation of the OCDETF National Award for Outstanding Investigation to the District of the Virgin Islands OCDETF Program for Operation Py Beto Kilo. Awards presenters included OCDETF Executive Office and Regional Office personnel, representatives from the Drug Enforcement Administration, USVI Superior Court Judge and former federal prosecutor Alphonso Andrews, and VIPD Assistant Commissioner Elskoe.
The awards ceremony acknowledged the contributions of 48 law enforcement officers, agents and prosecutors who contributed to the successful multi-year investigation, disruption, and dismantlement of a notorious drug trafficking organization that transported hundred-kilo cocaine loads from Colombia through Venezuela on fishing vessels across the Caribbean to St. Croix, Puerto Rico and Florida.
Operation Py Beto Kilo lead to the June 26, 2018 conviction at trial of drug kingpin Sergio Quinone-Davila and five codefendants on cocaine-related charges. The investigation ultimately resulted in convictions for 14 defendants, and seizure of 87 kilograms of cocaine and 8 boats.
According to U.S. Attorney Shappert, "Today’s ceremony acknowledges the tremendous contributions of dedicated law enforcement agencies and prosecution offices that work collaboratively to disrupt and dismantle major drug organizations. National recognition of our efforts in the Virgin Islands is a testament to the excellent work and dedication of our OCDETF Task Force partners."
Established in 1982, OCDETF is the largest anti-crime task force in the United States. It operates as an independent component of the U.S. Department of Justice and is the centerpiece of the Attorney General’s strategy to combat transnational organized crime. OCDETF identifies, disrupts, and dismantles the highest level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Virgin Islands Law Enforcement and Prosecutors Honored in Organized Crime Drug Enforcement Task Force National Awards Virtual Ceremony for Operation Py Beto KiloRead the Press Release
St. Thomas, USVI — United States Attorney Gretchen C.F. Shappert announced today that federal, state, local and territorial law enforcement and prosecutors were honored in a virtual Organized Crime Drug Enforcement Task Force (OCDETF) ceremony this morning. The awards ceremony included presentation of the OCDETF National Award for Outstanding Investigation to the District of the Virgin Islands OCDETF Program for Operation Py Beto Kilo. Awards presenters included OCDETF Executive Office and Regional Office personnel, representatives from the Drug Enforcement Administration, USVI Superior Court Judge and former federal prosecutor Alphonso Andrews, and VIPD Assistant Commissioner Elskoe.
The awards ceremony acknowledged the contributions of 48 law enforcement officers, agents and prosecutors who contributed to the successful multi-year investigation, disruption, and dismantlement of a notorious drug trafficking organization that transported hundred-kilo cocaine loads from Colombia through Venezuela on fishing vessels across the Caribbean to St. Croix, Puerto Rico and Florida.
Operation Py Beto Kilo lead to the June 26, 2018 conviction at trial of drug kingpin Sergio Quinone-Davila and five codefendants on cocaine-related charges. The investigation ultimately resulted in convictions for 14 defendants, and seizure of 87 kilograms of cocaine and 8 boats.
According to U.S. Attorney Shappert, "Today’s ceremony acknowledges the tremendous contributions of dedicated law enforcement agencies and prosecution offices that work collaboratively to disrupt and dismantle major drug organizations. National recognition of our efforts in the Virgin Islands is a testament to the excellent work and dedication of our OCDETF Task Force partners."
Established in 1982, OCDETF is the largest anti-crime task force in the United States. It operates as an independent component of the U.S. Department of Justice and is the centerpiece of the Attorney General’s strategy to combat transnational organized crime. OCDETF identifies, disrupts, and dismantles the highest level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Two Florida Men Arrested and Charged in Insider Trading SchemeRead the Press Release
BOSTON – Two Florida men were arrested today in connection with their roles in an alleged insider trading scheme that generated at least $4 million in profits.
Kris Bortnovsky, a/k/a “Kris Bort,” 40, of Surfside, Fla., and Ryan Shapiro, 44, of Bay Harbor Island, Fla., were charged with one count each of conspiracy to commit securities fraud. The defendants will make an initial appearance in federal court in the Southern District of Florida later today. They will appear in Boston at a later date.
As alleged in the charging document, from at least August 2017 to November 2021, Bortnovsky, a financial services professional for more than 20 years, and Shapiro, an entrepreneur and founder of two privately held companies, conspired to trade in the stocks of certain publicly traded companies, including At Home Group, Inc., Aphria, Inc., DSW, Inc., and Rite Aid Corp., among others, based on material nonpublic information (MNPI) regarding the earnings results and merger-and-acquisition activity of those companies. In many instances, Bortnovsky and Shapiro allegedly obtained the information from a co-conspirator who was a relative of one or more officers or directors of these companies, or of companies involved in proposed acquisitions of the companies. In other instances, Bortnovsky shared MNPI that he had obtained with Shapiro and their co-conspirator.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Wayne A. Jacobs, Special Agent in Charge of the Federal Bureau of Investigation’s Criminal/Cyber Division, Washington Field Office, made the announcement today. The Securities & Exchange Commission and the Federal Bureau of Investigation, Miami Field Office, provided valuable assistance in this matter. Assistant U.S. Attorneys Stephen E. Frank and Seth B. Kosto – Chief and Deputy Chief, respectively, of Mendell’s Securities, Financial & Cyber Fraud Unit – are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Defendants Plead Guilty to Unemployment Fraud SchemeRead the Press Release
DETROIT - Two defendants pleaded guilty today to charges related to unemployment insurance benefit fraud schemes, announced Acting United States Attorney Saima Mohsin.
Joining in the announcement were Special Agent-in-Charge Timothy Waters, Federal Bureau of Investigation; Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Julia Dale, Director of the Michigan Unemployment Insurance Agency.
Pleading guilty were Mitchacole Johnson, 45, of Shelby Township, and Larry Witherspoon, 46, of Harper Woods. Both pleaded guilty to charges of wire fraud and will be sentenced before United States District Judge Gershwin Drain on March 22, 2022.
According to court records, Johnson and Witherspoon are responsible for filing at least 66 claims for fraudulent unemployment insurance benefits in at least 4 states, including Michigan. Their illegal activity caused actual losses of over $1.3 million and attempted losses of nearly $3.5 million. Johnson filed a number of claims in her own name, while Witherspoon filed multiple claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon”. Both Johnson and Witherspoon filed their claims using other people’s Social Security Numbers and had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.
These cases are both being prosecuted by Assistant United States Attorney Ryan A. Particka. The investigations are being conducted jointly by agents from the Department of Labor Office of the Inspector General, the Federal Bureau of Investigation and the Michigan Unemployment Insurance Agency.Two Brooklyn Men Plead Guilty to 1989 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM SKINNER and DORIAN BROOKS, a/k/a “Kool-Aid,” pled guilty today in Manhattan federal court to charges relating to their involvement in the murder of Efren Cardenas on February 10, 1989, in Brooklyn, New York. SKINNER is scheduled to be sentenced on March 10, 2022, and BROOKS is scheduled to be sentenced on April 6, 2022, by U.S. District Judge Edgardo Ramos, who accepted today’s pleas.
U.S. Attorney Damian Williams said: “Today, William Skinner and Dorian Brooks admitted their participation in murdering Efren Cardenas over three decades ago, in February 1989. Today’s guilty pleas demonstrate that law enforcement will never give up on murder victims and their loved ones, no matter how long it takes to achieve justice.”
According to the allegations in the Indictment, and other filings and statements made in court:
On February 10, 1989, SKINNER and BROOKS killed Efren Cardenas, 30, in the vicinity of 280 Herkimer Street in the Bedford-Stuyvesant neighborhood of Brooklyn. During the murder, SKINNER and BROOKS shot Cardenas over 20 times. SKINNER and BROOKS committed the murder in furtherance of a conspiracy to distribute more than five kilograms of cocaine.
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SKINNER, 51, and BROOKS, 51, each pled guilty to one count of conspiring to distribute cocaine and crack cocaine, which carries a maximum prison term of 20 years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York City Police Department’s Cold Case Homicide Squad and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Adam S. Hobson, and Frank J. Balsamello are in charge of the prosecution.
Three Directors Charged in Federal Indictment Alleging Criminal Conspiracies at Failed Chicago BankRead the Press Release
CHICAGO — An ongoing federal investigation into the failure of Washington Federal Bank for Savings in Chicago has resulted in criminal charges against three former members of the bank’s Board of Directors who allegedly conspired to obstruct regulators and falsify bank records.
Washington Federal was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. Several former Washington Federal employees, including the bank’s Chief Financial Officer and Treasurer, were previously indicted for allegedly conspiring with an Illinois attorney – ROBERT M. KOWALSKI, of Chicago – and other individuals to embezzle money from the bank. On Tuesday, a federal grand jury in Chicago returned a 37-count superseding indictment that added four new defendants, including the three former Board members, bringing the total number of charged defendants to fourteen.
The three former Board members charged in the superseding indictment are WILLIAM M. MAHON, 55, of Chicago, JANICE M. WESTON, 63, of Orland Park, Ill., and GEORGE F. KOZDEMBA, 71, of Fort Myers, Fla. Mahon, Weston, and Kozdemba are charged with conspiracy to falsify bank records and to deceive and obstruct the OCC. Mahon also faces tax charges for allegedly willfully filing false income tax returns.
The fourth newly charged defendant is Robert Kowalski’s brother, real estate developer WILLIAM A. KOWALSKI, 56, of Chicago, who is charged with conspiracy to embezzle bank funds.
Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Michael Powell, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the City of Chicago Inspector General’s Office and the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel, and Special Assistant U.S. Attorney Jeffrey Snell.
The superseding indictment alleges that the bank’s former Vice President - JAMES R. CROTTY, of Tinley Park, Ill. – and two other employees made false entries and documents in Washington Federal’s records to support insider loans to Mahon and others. The employees – former Corporate Secretary JANE V. IRIONDO, of Boise, Idaho, and former loan officer CATHY M. TORRES, of Chicago – allegedly altered and caused to be altered appraisals for two properties owned by Mahon that served as collateral for two mortgages at Washington Federal. The false items on the altered appraisals include inflated appraisal values and inflated values for the listed comparable sales, the indictment states. The superseding indictment also alleges that Mahon concealed a loan he received from Washington Federal’s president in applications for loans from Washington Federal.
The new charges allege that when the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Crotty, Mahon, Weston, and Kozdemba made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination. The defendants also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls, the indictment states.
In addition to the new defendants and charges, the superseding indictment renews the charges previously filed against the other defendants. Those charges allege a conspiracy to embezzle at least $31 million in bank funds. Crotty and other bank employees allegedly transferred bank funds to Robert Kowalski and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. One of the individuals outside the bank – real estate developer BOGUSLAW KASPROWICZ, of Burbank, Calif. – allegedly embezzled $14.3 million, at least $1.6 million of which was used by Kasprowicz for the benefit of the bank’s former president, who has since died and is not charged in the indictment. Kasprowicz allegedly paid credit card accounts in the name of the bank president or an entity associated with him, and also made payments to another bank for a loan on the purchase of a $450,000 Sea Ray powerboat called “Expelliarmus.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Three Coconspirators in a Paycheck Protection Program Loan Scheme Plead GuiltyRead the Press Release
In the last week, three women who were alleged to have applied for and received almost $800,000 in Paycheck Protection Program loans guaranteed by the Small Business Administration under the CARES Act have pleaded guilty in federal court, announced Acting U.S. Attorney Clint Johnson.
Leader of the scheme Aleta Necole Thomas, 43, pleaded guilty to two counts of making false statements to a financial institution. Katrina West, 38, and Pepper Jones, 42, pleaded guilty to false statement. In total, the defendants will have to pay restitution in the amount of $795, 158.50. The government previously seized $209, 991.11 from bank accounts held by Thomas pursuant to federal seizure warrants, which will go toward restitution.
“For more than a year, Aleta Thomas applied for and secured Paycheck Protection Program loans under false pretenses,” said Acting U.S. Attorney Clint Johnson. “The nearly $800,000 of taxpayer money Thomas and her accomplices stole should have gone to legitimate small business owners serving and economically enhancing their communities. The U.S. Attorney’s Office and our federal law enforcement partners will investigate and prosecute anyone who misdirects federal emergency assistance in order to illegally enrich themselves.”
“The actions of the defendants sought personal gain at the expense of taxpayers and eligible small businesses,” said Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue fraud in the PPP and other SBA programs aimed at assisting the nation’s small businesses during the pandemic. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
“Those who defraud the federal government of pandemic relief funds will be vigorously pursued and held accountable for their actions,” said Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this result.”
In her plea agreement, Thomas stated that on May 27, 2020, she submitted false statements and reports to Cross River Bank when she applied for a Paycheck Protection Program loan. Thomas submitted a borrower application form falsely stating “Coming Correct Community Ministry” had an average monthly payroll of $35,000 and was in operation since Feb. 15, 2020. Thomas further claimed that she had 26 employees for whom she paid payroll taxes or independent contractors as reports in IRS Form 1099-MISC. Thomas also falsely certified that all information in the application and supporting documents was correct and submitted documentation that included forged bank statements and false 2019 IRS Schedule C (Form 1040).
Thomas further stated that on June 16, 2020, she submitted a false statements and reports to First Electronic Bank when she applied for another Paycheck Protection Program loan where she made similar claims.
West admitted that on March 25, 2021, she knowingly made false statements and affirmed their truthfulness when applying for a Paycheck Protection Program loan from Fountainhead Commercial Capital, a matter within the jurisdiction of the U.S. Small Business Administration. In her application and supporting documents, she claimed she owned a small business that was in operation on Feb. 15, 2020, with a gross annual income of $100,000.
Jones admitted that on March 16, 2021, she knowingly made false statements and affirmed their truthfulness when applying for a Paycheck Protection Program loan from Harvest Small Finance, LLC, a matter within the jurisdiction of the U.S. Small Business Administration. In her application and supporting documents, Jones claimed that in 2019, she owned a small business that had been in operation since Feb. 15, 2020, with an annual gross income of $100,000.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; U.S. Department of Treasury Inspector General for Tax Administration; Small Business Administration Office of Inspector General, and the Federal Bureau of Investigation are the investigative agencies. Assistant U.S. Attorneys Kristin Harrington and Cymetra Williams are prosecuting the case.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-for
Texas Woman Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury convicted a Texas woman today for defrauding the Paycheck Protection Program (PPP) of over $1.9 million in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Lola Shalewa Barbara Kasali, 24, of Houston, submitted two fraudulent loan applications to two different lenders on behalf of her companies, Lola’s Level and Charm Hair Extensions. Through these loan applications, Kasali sought over $3.8 million in PPP loan funds. Kasali falsely represented the number of employees and payroll expenses in each of the PPP loan applications. To support these applications, Kasali also submitted fraudulent tax records. Kasali ultimately received over $1.9 million in PPP loan funds. The Justice Department, along with its law enforcement partners, seized the funds that Kasali fraudulently obtained.
Kasali was convicted of two counts of making false statements to a financial institution and two counts of bank fraud. She is scheduled to be sentenced on Feb. 25, 2022, and faces a maximum penalty of 30 years in prison for each count of conviction. 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; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) – Central Region; Special Agent in Charge Sharon Johnson of the Small Business Administration Office of Inspector General (SBA-OIG) – Central Region; and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service (USPIS) – Houston Division made the announcement.
FHFA-OIG, SBA-OIG, and the USPIS investigated the case.
Assistant Chief Jonathan Robell of the Criminal Division’s Fraud Section and Trial Attorney Matthew Grisier of the Criminal Division’s Money Laundering and Asset Forfeiture Section are prosecuting the case, with assistance from Assistant U.S. Attorney Jim McAlister of the U.S. Attorney’s Office.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Suburban Pittsburgh Man Sentenced to More than 5 Years in Prison for Violating Federal Firearms and Explosives LawsRead the Press Release
PITTSBURGH - A former resident of Whitehall, Pennsylvania, has been sentenced in federal court to five years and four months (64 months) of incarceration, to be followed by three years of supervised released on his conviction of violating federal firearms and explosives laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman IV imposed the sentence on Kurt Cofano, 34, formerly of Pittsburgh, PA 15227.
According to the information presented to the court, on July 9 and July 10, 2020, Cofano was in possession of unregistered destructive devices. The court was also advised that from May 2020 through July 2020, Cofano knowingly and unlawfully and without registering and obtaining approval made destructive devices.
Specifically, the court was advised that on July 9, 2020, Cofano was driving his vehicle, observed a Mt. Lebanon police car, and waved the police car over to him. When police approached Cofano’s vehicle, they observed weapons in plain view. Cofano stated that he had M80 type devices in his vehicle, as well as firearms. Local police sought and obtained a search warrant for the vehicle. They recovered, among other things, components for making destructive devices such as detonators, triggers, and fuses; short-barreled long guns; ammunition; and marijuana. Federal search warrants were sought and obtained for Cofano’s residence, wherein 14 improvised grenades and nine devices labeled “M101” as well as components for making destructive devices; and marijuana and drug paraphernalia were recovered.
“I commend our law enforcement partners who worked seamlessly to avert a potential tragedy on July 9, 2020,” said U.S. Attorney Chung. “They had the knowledge, the training, the equipment and the commitment to render the defendant’s numerous explosive devices safe. We could not have brought this case without the quick action of our local partners.”
“This defendant was in possession of very dangerous weapons and appeared intent to use them,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This type of behavior places our entire community in danger. I commend the outstanding work of our local, state, and federal partners who acted swiftly and were able to arrest this individual before any harm could be done. I would also like to acknowledge the dedicated work of the US Attorney’s Office for prosecuting this case.”
“The cooperation between local and federal agencies brought this potentially tragic threat to a quick and safe resolution,” said Allegheny County Police Supt. Chris Kearns. “The strong working relationships show in these situations.”
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“The successful investigation and prosecution of this case epitomizes a true team effort amongst federal, state, and local authorities,” said Mt. Lebanon Police Chief Aaron V. Lauth. “Everything worked as it should and a dangerous situation was resolved without harm to the community.""The Whitehall Police Department truly appreciates the collective efforts of everyone involved in this investigation," said Whitehall Police Chief Jason Gagorik. We are especially thankful for the community members that alerted us to Mr. Cofano's suspicious behaviors. This investigation once again reminds us that the public can be the best eyes and ears of law enforcement. So please remember, when you see something suspicious, do not hesitate to say something to the proper authorities."
U.S. Attorney Chung and Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the prosecution of Kurt Cofano. The Mt. Lebanon Police Department, the Whitehall Police Department, the Allegheny County Police Department and the Pittsburgh Bureau of Police provided substantial assistance with the investigation.
Statement Regarding the Investigation of Deceased Caroline County Circuit Judge Jonathan NewellRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Dorchester County State’s Attorney William H. Jones and Caroline County State’s Attorney Joe Riley provided the following statement regarding the investigation of Jonathan Newell:
A federal criminal complaint was signed on September 9, 2021, and unsealed on September 10, 2021, that charged Jonathan Newell with sexual exploitation of a minor to produce child pornography. Following Newell’s suicide on September 10, 2021, the investigation continued. Investigators have determined that there were no other individuals involved in the alleged exploitation and that Newell did not distribute any of the images.
The criminal complaint is publicly available, Case No. 1:21-mj-02533-JMC.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If you or someone you know would like assistance obtaining counseling regarding this matter, please contact the FBI Baltimore Field Office at (410) 265-8080.
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Serial Fraudster Pleads GuiltyRead the Press Release
Greenbelt, Maryland – Jude Egbufoama, a/k/a Chino, age 37, of Beltsville, Maryland, pleaded guilty today to conspiracy to commit bank fraud and bank fraud, in connection with two separate fraud schemes.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, between September 2018 and February 2019, Egbufoama conspired with William Gunn, Trishan Deva, Montee Gibson, and other co-conspirators to execute a bank fraud scheme, taking over and withdrawing funds from individual victims’ accounts. Egbufoama also admitted that from January 2020 to November 2020, he engaged in a second fraud scheme, stealing checks from the U.S. mail, altering and depositing the stolen checks into bank accounts opened for that purpose (the drop accounts), then obtaining and depositing the fraudulent proceeds of the stolen and altered checks into Egbufoama’s personal checking account before the fraud was discovered.
Bank Fraud Scheme
Specifically, as detailed in the plea agreement, at the direction of Egbufoama and Co-conspirator 3, Gibson and Deva, who were bank employees, accessed the bank’s internal signature card database to retrieve account information for accounts with high balances (“the victim accounts”). Using the internal bank database, Gibson and Deva unlawfully acquired the victims’ account numbers and the account holders’ personal identifying information, which they provided to co-conspirators, including Egbufoama and Co-conspirator 3. Egbufoama and Co-conspirator 3 then produced or obtained fraudulent identification cards that Gunn and Co-Conspirator 2 used to conduct account takeovers of the victim accounts by going to branch offices of the bank in Montgomery, Baltimore, and Anne Arundel Counties in Maryland and making large withdrawals of cash and/or cashier’s checks. The cashier’s checks were later deposited into business accounts opened under the names of shell companies controlled by co-conspirators. The fraudulent identification documents that Egbufoama produced or obtained displayed the personally identifiable information of the victim account holders, but the photographs of the co-conspirators who entered the bank to withdraw the funds.
On at least 14 occasions between October 20, 2018 and February 14, 2019, the conspirators conducted account takeover transactions involving at least seven individual victims and several companies. In total, the intended loss reasonably foreseeable to Egbufoama and within the scope of the bank fraud scheme was between $550,000 and $1,500,000. The intended loss was at least $780,550 and the actual loss suffered by the victims as a result of the bank fraud scheme was at least $393,858.
Check Fraud Scheme
According to the plea agreement, Egbufoama also conspired with others to steal checks from the U.S. Mail, alter and deposit the stolen checks into drop accounts, and then purchase U.S. Postal money orders using debit cards tied to the drop accounts and cashier’s checks drawn on the drop accounts. Many of the money orders and cashiers’ checks were later deposited into Egbufoama’s checking account.
For example, on April 13, 2020, Co-conspirator 3 deposited a stolen and altered check in the amount of $50,000 into Drop Account 1 held in the name of Entity 1. Using the debit card linked to Drop Account 1, co-conspirators used approximately $26,000 of the proceeds of the stolen check to purchase multiple U.S. Postal money orders made payable to Egbufoama in denominations up to $1,000, each of which was deposited to Egbufoama’s checking account between April 21, 2020, and May 20, 2020.
Similarly, on February 4, 2020, Egbufoama deposited a $5,000 stolen and altered check to Drop Account 2 held in the name of Individual 1. On February 15, 2020, Egbufoama deposited a $1,000 U.S. Postal money order into his checking account that was purchased with the partial proceeds of the stolen check.
In total, as a result of the check fraud scheme, at least approximately $94,515 in U.S. Postal money orders traceable to the proceeds of stolen and altered checks were deposited into Egbufoama’s checking account between January 2020 and November 2020.
The proceeds of stolen and altered checks were also withdrawn from the drop accounts via cashier’s checks and personal checks made payable to Egbufoama that were later deposited into Egbufoama’s checking account.
For example, on June 4, 2020, a stolen and altered check in the amount of $350,978 was deposited into Drop Account 5 held in the name of Entity 2. On June 22, 2020, Egbufoama deposited into his personal checking account, a business check in the amount of $80,000 payable to himself that was funded with the partial proceeds of the stolen and altered check.
According to the plea agreement, after depositing the U.S. Postal money orders and cashier’s and personal checks into his checking account, Egbufoama spent a portion of the proceeds on personal expenses and transferred the remaining fraud proceeds to his savings account. Egbufoama admitted in his plea agreement that between January 2020 and November 2020, he transferred approximately $109,100 from his checking to his savings account.
In total, as a result of the check fraud scheme, at least approximately $116,750 in cashier’s checks and personal checks made payable to Egbufoama traceable to the proceeds of stolen and altered checks were deposited into his personal checking account between February 2020 and September 2020. The intended loss reasonably foreseeable to Egbufoama and within the scope of the check fraud scheme was between $550,000 and $1,500,000. The intended loss attributable to the stolen checks and money orders involved in the check fraud scheme was at least $705,109.68, and Egbufoama obtained at least $211,265 in proceeds as a result of the check fraud scheme.
On March 29, 2021, law enforcement executed search and seizure warrants at Egbufoama’s residence and on his checking and savings accounts. The government seized a total of $172,186 from Egbufoama’s savings and checking accounts.
Upon entering the residence to execute the search warrant, federal agents saw Egbufoama attempting to flush multiple checks down the toilet in the bathroom of the residence. Egbufoama locked himself in the bathroom and agents broke into the bathroom, ordered Egbufoama to stop destroying evidence, and arrested him.
Law enforcement seized the following items from the residence: hundreds of personal checks all bearing unidentified names that are suspected to be victims of mail theft; additional checks payable to various entities that appear to be counterfeit; approximately $51,463 in cash; money orders, including Postal money orders; debit and credit cards displaying names of suspected identity theft victims; and blank check stock. Law enforcement also seized five Apple iPhones, laptop and desktop computers, tablets, two printers, a camera with two SD card and a USB drive. One of the printers was loaded with blank check stock at the time of seizure.
Additionally, law enforcement seized firearms and ammunition, including: a .380 caliber handgun; a military style semi-automatic pistol manufactured without a serial number equipped with a high-capacity magazine that could chamber 300AAC ammunition; and six rounds of.380 caliber ammunition. Egbufoama admitted that he possessed the firearms and ammunition in connection with the fraud schemes.
Egbufoama faces a maximum sentence of 20 years in federal prison for the conspiracy and for bank fraud. U.S. District Judge Paula Xinis has scheduled sentencing for March 10, 2022 at 10:00 a.m. As part of his plea agreement, Egbufoama agreed to forfeit to the United States $223,649 in fraud proceeds and money orders totaling $1,500. Egbufoama also agreed to abandon all interests in the seized firearms and ammunition and the recovered electronics. Egbufoama also will be required to pay restitution in the full amount of the victims’ losses, which is at least $393,858 for the bank fraud scheme and up to $705,109.68 for the check fraud scheme.
Co-conspirators William Gunn, age 59, of Upper Marlboro, Maryland; Trishan Deva, age 25, of Adelphi, Maryland; and Montee Gibson, age 33, of Beltsville, Maryland, have all pleaded guilty to their roles in the fraud scheme and are awaiting sentencing.
United States Attorney Erek L. Barron commended the U.S. Secret Service and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Jennifer L. Wine, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, or to report fraud, please visit www.justice.gov/usao-md, https://www.justice.gov/usao-md/community-outreach and https://www.justice.gov/usao-md/report-fraud.
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Schenectady Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
ALBANY, NEW YORK – James King, age 33, of Schenectady, New York, pled guilty today to possessing with intent to distribute methamphetamine, a Schedule II controlled substance.
The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Keith Kruskall, U.S. Drug Enforcement Administration (DEA), New York Division; and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, King admitted that between February and March 2021, he sold methamphetamine twice to another person and possessed methamphetamine with intent to distribute on March 17, 2021 when he was arrested.
King faces at least 10 years and up to life in prison, a fine of up to $10 million, and a post-imprisonment term of supervised release of at least 5 years and up to life when Chief U.S. District Judge Glenn T. Suddaby sentences him on April 28, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by DEA with assistance from HSI and the Guilderland Police Department, and is being prosecuted by Assistant U.S. Attorneys Alexander P. Wentworth-Ping and Dustin Segovia.
Saugus Woman Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
BOSTON – A Saugus woman pleaded guilty today to her role in a bank fraud scheme that fraudulently obtained more than $300,000 from customer accounts.
Emelyn Clough, 24, pleaded guilty to one count of bank fraud conspiracy. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 30, 2022. The defendant was charged on March 15, 2021.
This case arose out of an investigation into schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. Organizers of the scheme paid individuals to request bank withdrawals from bank customers’ accounts using falsified identification documents in the names of the bank customers. Bank tellers were also recruited to accept the falsified identification documents without scrutiny and facilitate the withdrawals. The fraudulently obtained funds were then negotiated through accounts at other financial institutions that had been opened in the names of fictitious business entities.
Clough opened a bank account in the name of a fictitious business using a counterfeit driver’s license and helped recruit a TD Bank teller to participate in this scheme. Thereafter, between June and November 2017, co-conspirators utilized the bank account Clough opened and the bank teller Clough recruited to fraudulently obtain more than $300,000 from customer accounts.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Salem Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
CONCORD - Brian Perez, 31, of Salem, pleaded guilty on Tuesday in federal court to conspiracy to distribute methamphetamine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 11, 2021, agents opened a suspicious package sent by UPS from the greater Los Angeles, California area to an unspecified apartment at an address in Salem. The box contained over two kilograms of methamphetamine. Additional shipping records revealed that since April 10, 2021, this was the ninth package sent from the Los Angeles area to the same address in Salem.
On May 19, 2021, investigators intercepted another suspicious UPS package destined for the Salem address. After obtaining a search warrant, they discovered over 2.2 kilograms of methamphetamine. The contents were replaced with an innocuous filler and an undercover officer delivered the package to the front foyer of the Salem address. Later that day agents observed a van arrive at the Salem address. Perez entered the foyer and examined the package. Perez then left the foyer and entered the van. Investigators detained Perez and his passenger. During a safety sweep of the van, investigators observed the subject package in plain view. Perez had a receipt on his person showing a receipt for a parcel that was destined for Miami Beach. The parcel was located and searched pursuant to a warrant. Among other items, it contained a clear plastic bag containing orange pills that contained approximately 363 grams of methamphetamine.
Perez is scheduled to be sentenced on March 17, 2022.
“Drug traffickers are shipping large quantities of methamphetamine to the Granite State for distribution,” said Acting U.S. Attorney Farley. “These traffickers are seeking to profit from the sale of methamphetamine without regard to the drug’s harmful impact on our community. As this case demonstrates, we are working closely with our law enforcement partners to identify and prosecute the drug dealers who are bringing this dangerous substance into New Hampshire and selling it in our local communities.”
This matter was investigated by the Drug Enforcement Administration, New Hampshire State Police and Salem Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Rocky Mount Bloods Gang Member Sentenced to 65 Months in Prison for Firearms and Heroin Distribution ChargesRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced yesterday to 65 months in federal prison for possessing a firearm as a convicted felon and distributing fentanyl, heroin, and cocaine. On September 17, 2021, Cedrick Charles Williams pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Heroin, Possession of a Firearm by a Convicted Felon, Possession with the Intent to Distribute a Quantity of Heroin and Cocaine, Distribution of a Quantity of Heroin, Distribution of a Quantity of Heroin and Aiding and Abetting, and two counts of Possession with the Intent to Distribute a Quantity of Heroin and Aiding and Abetting.
According to court documents and other information presented in court, between November 2019 and February 2020, the Nash County Sheriff’s Office, the Rocky Mount Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), investigated the drug trafficking activities of Williams, 33, a validated member of the Bloods street gang.
On November 22, 2019, detectives with the Rocky Mount Police Department observed Williams arriving by car at a house in Rocky Mount known for illegal narcotics sales. After conducting what appeared to be a drug transaction, Williams left the residence. Officers with the Rocky Mount Police Department stopped the vehicle for multiple traffic violations and encountered Williams, who refused to provide identification and became increasingly uncooperative. Officers conducted a probable cause search of the vehicle and recovered $4,891 in cash, and a loaded handgun. Williams was also found to be in possession of over 20 grams of cocaine and 21 individual doses of a mixture of heroin and fentanyl.
Between February 5 and 17, 2020, narcotics investigators with the Nash County Sheriff’s Office utilized a confidential informant to purchase 28 individual doses of heroin from Williams. Law enforcement quickly learned that Williams made frequent trips to Henderson, North Carolina, to obtain narcotics. On February 20, 2020, deputies with the Nash County Sheriff’s office stopped William’s vehicle during one of these trips as he was returning to Rocky Mount from Henderson. Also present in the vehicle were William’s wife and two minor children. Investigators recovered 100 doses of a mixture of heroin and fentanyl from Williams.
The next day, on February 21, 2020, narcotics detectives with the Rocky Mount Police Department stopped Williams and his wife on another trip back from Henderson. Law enforcement recovered 201 doses of a mixture of heroin and fentanyl from Williams.
Prior to November 2019, Williams had prior felony convictions for Conspiracy to Commit Breaking and Entering and Larceny, and Discharging a Firearm into an Occupied Property, and was prohibited from possessing firearms. Williams also had prior convictions for Assault on a Government Official, Assault on a Female, and Assault and Battery.
U.S. Attorney Michal F. Easley, Jr. commented: “The Department of Justice and the United States Attorney’s Office for the Eastern District of North Carolina are aggressively combatting drug traffickers and violent gang members. This sentence reflects the coordinated efforts by dedicated federal and local law enforcement agents to protect our community from those who sell heroin and fentanyl on our streets.”
Nash County Sheriff Keith Stone commented, “The collaboration and partnership combined with the exceptional training and dedication the deputies and investigators displayed in this case and others is what reduces crime and makes our communities safer.”
"Our mission here at the Rocky Mount Police Department is to improve the quality of life in the city of Rocky Mount by building partnerships to reduce crime. We value the continued partnership with our Federal Law Enforcement agencies, who assist us in creating a safe environment for all citizens who reside and visit Rocky Mount, NC. The Rocky Mount Police Department will continue to work closely with Federal, State, and Local law enforcement agencies while providing the highest level of police services to the citizens of Rocky Mount," said Rocky Mount Police Chief Robert Hassell.
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Nash County Sheriff’s Office, the Rocky Mount Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-468-BR.
Rochester Man Sentenced to 15 Years in Prison for Distributing MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Rochester man was sentenced to 180 months in prison followed by 10 years of supervised release for distribution of methamphetamine, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, from February 2020, through March 2020, Tyler Benjamin Batson, 36, was a part of a conspiracy to distribute methamphetamine in Rochester and surrounding southeastern Minnesotan communities. On March 4, 2020, a Minnesota State Trooper stopped Batson and his passenger who were traveling in a rented vehicle back to Rochester. Batson was returning from the Twin Cities area after meeting with his source of methamphetamine supply. After a canine sniff of the vehicle, officers found a small black bag on the rear passenger side floorboard. Inside the bag, the State Trooper recovered approximately two pounds of methamphetamine. Agents arrested both Batson and his passenger. On September 18, 2020, Batson pleaded guilty to one count of conspiracy to distribute methamphetamine. Baston was sentenced yesterday by U.S. District Judge Donovan W. Frank
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Rochester Police Department, the Southeast Drug and Violent Crime Task Force, and the Olmsted County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Allen A. Slaughter Jr.
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Repeat Drug Offender Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who was convicted of his second federal drug offense was sentenced today to more than 16 years in federal prison.
Curtis Lee Prescott, age 53, from Cedar Rapids, Iowa, received the prison term after a June 28, 2021 guilty plea to conspiracy to distribute a controlled substance after a conviction for a serious drug offense.
At the guilty plea, Prescott admitted he was involved in distributing methamphetamine between January 2019 and July 2020. Prescott’s criminal history includes felony convictions in seven separate cases with a total of twelve separate felony offenses, including a federal conviction for manufacturing methamphetamine. He has numerous misdemeanor offenses as well, including a conviction for domestic assault involving strangulation.
Prescott was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Prescott was sentenced to 197 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Prescott is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Linn County Sheriff’s Office; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Drug Enforcement Administration
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-110-CJW-MAR.
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Reno Man Sentenced for Selling Hundreds of Counterfeit Oxycodone Pills Laced with FentanylRead the Press Release
RENO, Nev. – A Reno man was sentenced yesterday to 34 months in prison after pleading guilty to selling hundreds of counterfeit oxycodone pills containing the powerful synthetic opioid fentanyl.
According to court documents, from June 12 to September 2, 2020, Octavio Mendoza Jr. (24) sold counterfeit oxycodone pills stamped with “M30” containing fentanyl. On September 6, law enforcement arrested Mendoza after observing him using drugs in a vehicle in downtown Reno. During a search of the vehicle, law enforcement found approximately 374 counterfeit oxycodone pills containing fentanyl.
Mendoza pleaded guilty in November 2021 to seven counts of distribution of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced Mendoza to three years of supervised release.
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, the Northern Nevada Safe Streets Task Force, Reno Police Department, Sparks Police Department, Washoe County Sheriff’s Office, Nevada Highway Patrol, Carson City Sheriff’s Office, Nevada Gaming Control Board, and the Douglas County Sheriff’s Office. Assistant U.S. Attorney Andolyn Johnson prosecuted the case.
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Recidivist Fraudster and Co-Conspirator Charged in Covid-19 Relief Loan, Identity Theft, and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keith A. Bonanno, Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”) Cyber Investigations Office, announced today that an Indictment was filed in Manhattan federal court charging ADEDAYO ILORI and CHRIS RECAMIER for a fraudulent scheme to obtain more than $7 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, ILORI and RECAMIER falsely represented to the Small Business Administration (“SBA”) and private lenders that they operated a number of companies, used stolen identities, and submitted falsified tax documents. This case has been assigned to U.S. District Court Judge Mary Kay Vyskocil. RECAMIER and ILORI are both in custody.
U.S. Attorney Damian Williams said: “As alleged, Adedayo Ilori has made quite a habit of committing loan fraud. While previously facing similar charges in a separate case involving loan and identity fraud – to which Ilori pled guilty in April of this year – he is once again alleged to have committed similar conduct to defraud the SBA and private lenders in an attempt to steal much-needed COVID-19 financial relief. Ilori and his co-defendant, Chris Recaimer, now face criminal charges for attempting to steal over $7 million in funds specifically designated to assist small businesses struggling with financial hardships from the worldwide COVID pandemic.”
DOJ OIG Special Agent in Charge Keith A. Bonanno said: “Ilori and Recamier allegedly stole the identities of individuals and companies and fraudulently obtained over a million dollars intended to help those suffering from hardship due to the COVID-19 pandemic. The Pandemic Response Accountability Committee COVID-19 Task Force is dedicated to rooting out these kinds of schemes and bringing the fraudsters to justice.”
According to the Indictment unsealed today in Manhattan federal court, the Complaint filed against RECAMIER on October 8, 2021, and filings made on public court dockets:[1]
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and its average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provides small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
From at least in or about August 2020 through at least in or about October 2021, ILORI and RECAMIER, prepared to apply, and applied for numerous PPP and EIDL loans. In applying for these loans, ILORI and RECAMIER claimed stolen identities of third parties. In the role of these assumed identities, ILORI and RECAMIER claimed full control of a number of companies, which they purported, cumulatively, employed more than 200 people and paid more than $3.2 million in monthly wages. In reality, they did not operate these companies. In submitting these applications ILORI and RECAMIER, among other things, submitted falsified tax documents that were never actually filed with the Internal Revenue Service.
ILORI and RECAMIER attempted to obtain over approximately $7.5 million in PPP and EIDL program funds, and successfully obtained more than $1 million as a result of their scheme. ILORI and RECAMIER transferred the majority of these funds toward (1) cryptocurrency investments, (2) the purchase of stocks, (3) cash withdrawals, and (4) personal expenses. The investment accounts were also opened by ILORI and RECAMIER in the stolen identities of third parties.
ILORI committed these offenses while facing charges in a separate case filed in the Southern District of New York involving fraud, identity theft, and money laundering in United States v. Ilori, 20 Cr 378 (LJL). As part of that case, ILORI pled guilty on April 8, 2021, to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering, and is currently awaiting sentencing.
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ADEDAYO ILORI, 42, of Queens, New York, and CHRIS RECAMIER, 58, of New York, New York, are charged with (1) major fraud against the United States, which carries a maximum sentence of 10 years in prison; (2) conspiracy to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; (3) wire fraud, which carries a maximum sentence of 30 years in prison; (4) bank fraud, which carries a maximum sentence of 30 years in prison; (5) aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison; and (6) 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 defendants will be determined by the judge.
Mr. Williams praised the investigative work of the DOJ OIG, which conducted the investigation on behalf of the Pandemic Response Accountability Committee (PRAC) COVID-19 Task Force.[2] Mr. Williams also thanked the U.S. Secret Service, the Drug Enforcement Administration, the New York City Police Department, the Federal Bureau of Investigation, and the Federal Aviation Administration for their assistance in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[2] Created by the CARES Act, the PRAC serves the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 22 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.
Rachael S. Rollins Confirmed as United States Attorney for the District of MassachusettsRead the Press Release
BOSTON – The United States Senate has confirmed Rachael S. Rollins as the United States Attorney for the District of Massachusetts. Ms. Rollins is the first Black woman to ever be confirmed as U.S. Attorney in the District. She was nominated by President Joseph R. Biden on July 26, 2021. The District of Massachusetts is one of the oldest United States Attorney’s Offices in the country.
“I am truly humbled by today’s confirmation and deeply honored to have the support and confidence of President Biden, Vice President Harris, Senate Majority Leader Schumer, Senate Judiciary Chair Durbin, and my Senators Elizabeth Warren and Ed Markey. I have dedicated much of my career to public service and as I prepare to assume the role of Massachusetts’s chief federal law enforcement officer, I look forward to continuing to serve this great nation. Leading the U.S. Attorney’s Office is a profound honor, and I pledge to serve with continued zeal and passion for justice,” said Ms. Rollins in response to her confirmation.
“Being the DA has been the highlight of my professional career. I am profoundly grateful to the people of Suffolk County. They put their faith in me and I have worked hard every day to improve the relationship between law enforcement and the communities most impacted by violence and harm. I am proud that Boston remains one of the only major cities in the United States where violent crime, including homicides, is down. As United States Attorney, I will continue to work with my law enforcement and community partners to ensure this trend continues and expands across all of Massachusetts.”
A Massachusetts native and an attorney for more than two decades, Ms. Rollins has served as Suffolk County District Attorney (DA) since 2019. She was the first woman to ever be elected DA in Suffolk County and the first woman of color to ever hold the position of DA in the Commonwealth of Massachusetts.
Prior to serving as Suffolk County DA, Ms. Rollins was the General Counsel for the Massachusetts Department of Transportation and the Massachusetts Bay Transportation Authority. She also served as Chief Legal Counsel to the Massachusetts Port Authority. From 2007 to 2011, Ms. Rollins was an Assistant U.S. Attorney for the District of Massachusetts serving in both the Civil and Criminal Divisions. Earlier in her career, Ms. Rollins was an attorney at Bingham McCutchen LLP, focusing on matters involving complex civil litigation and criminal defense, and from 1999 to 2002 she was a field attorney for the National Labor Relations Board where she investigated unfair labor practices and upheld workers’ rights. Ms. Rollins began her legal career as a clerk for Associate Judge Frederick L. Brown of the Massachusetts Appeals Court.
Ms. Rollins earned a Juris Doctor from Northeastern University School of Law and a Masters in Law from Georgetown University Law Center. She graduated from the University of Massachusetts Amherst in 1994.
Possessing Loaded Handgun and Nearly an Ounce of Meth Sends Drug User to Federal Prison for Two YearsRead the Press Release
A methamphetamine user who illegally possessed a loaded handgun was sentenced today to two years in federal prison.
Timothy James Hensley, age 44, from Martelle, Iowa, received the prison term after an August 16, 2021 guilty plea to one count of being an unlawful drug user in possession of a firearm.
Evidence at a prior hearing showed that on October 19, 2020, Hensley was stopped by a Linn County Sheriff’s Deputy for driving a truck with a license plate that belonged to a different vehicle. During the stop, the Deputy learned that Hensley was barred from driving and had an outstanding warrant for failure to appear for court. During a search of Hensley’s person, the Deputy found a container with methamphetamine. During a search of a backpack found on the passenger’s seat, officers found approximately 25 grams of 100% pure methamphetamine and a loaded .45 caliber handgun.
Hensley was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hensley was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hensley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Linn County Sherriff’s Office and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑00036‑CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Poplar woman sentenced to 40 months in prison for distributing oxycodone on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Poplar woman who admitted to being a long-time dealer of oxycodone pills on the Fort Peck Indian Reservation was sentenced today to 40 months in prison to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kaycee Lynn Menz, 31, pleaded guilty in August to possession with intent to distribute oxycodone and to money laundering.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that for more than six years, Menz distributed hundreds of thousands of dollars’ worth of oxycodone on and around the Fort Peck Indian Reservation. When arrested in March, Menz admitted to selling up to 3,000 illegal oxycodone pills over the years, at an average price of $70 per pill. Financial records showed Menz was personally responsible for more than $400,000 in cash deposits and money transfers during the time of the conspiracy.
From about June 2014 through at least May 2020, Menz, and her co-defendant and boyfriend, Jason Tyrell Lee, sold illegal oxycodone pills from a house they rented in Poplar, located on the reservation. Law enforcement learned that Lee resided primarily in Minnesota, Menz primarily lived at the Poplar residence and that Lee supplied Menz with the pills she sold. Investigators interviewed many individuals who witnessed Menz and Lee distributing illegal pills. Some individuals occasionally helped by driving Menz around to conduct sales and by wiring or transferring drug proceeds to individuals in Minnesota. Menz also sent money using transfer services to individuals in Minnesota and asked others to send money on her behalf. Lee pleaded guilty to charges in the case and is pending sentencing.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Roosevelt County Sheriff’s Office, Fort Peck Tribes Department of Law and Justice and Montana Highway Patrol.
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Plattsmouth Man Sentenced to 66 Months for Transportation of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Jeffrey Fox, age 51, of Plattsmouth, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for transportation of child pornography. United States District Judge Brian C. Buescher sentenced Fox to 66 months of imprisonment and a $20,000 fine. There is no parole in the federal system. After completing his term of imprisonment, Fox will begin a 5-year term of supervised release.
On October 21, 2018, Fox uploaded fifteen images of child pornography to his Yahoo account. On January 7, 2019, agents executed a search warrant on the Yahoo account and located ten instances between October 26, 2017, and January 22, 2018, in which Fox uploaded child pornography to the account. Agents later spoke with Fox and he admitted to sending child pornography to the account.
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.
The case was investigated by the Douglas County Sheriff’s Office and the Federal Bureau of Investigation.
Philippine national sentenced to three years in federal prison for possession of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Rodymar Lelis, 31, of the Philippines, was sentenced in federal court on Dec. 6 to three years in prison for possession of visual depictions of minors engaged in sexually explicit conduct and false swearing in immigration matters. Lelis pleaded guilty to these charges on July 8.
According to court records, Lelis moved from the Philippines to the United States following the issuance of a non-immigrant visa. In his visa application, Lelis falsely answered “no” to the question, “Have you ever been arrested or convicted of any offense or crime, even though the subject of a pardon, amnesty, or other similar action?” Lelis was arrested in 2018 in the Philippines, and knew that his answer was false.
After arriving in the United States and while staying at a hotel near the airport in Albuquerque, on Sept. 7, 2019, Lelis logged into the Facebook Messenger application on his cellphone. The application contained previously-uploaded child pornography, which caused Facebook to generate a CyberTipline Report to the National Center for Missing and Exploited Children (NCMEC).
Upon his release from prison, Lelis will be subject to six years of supervised release and must register as a sex offender. However, Lelis has consented to deportation following his release.
The case was investigated by Homeland Security Investigations (HSI) with assistance from the Regional Computer Forensic Laboratory.
Pharmacist and Two Pharmacies Agree to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
BOSTON – A Michigan pharmacist and two pharmacies agreed to pay $1 million to resolve allegations that they submitted false claims to Medicare for a drug used in rapid reversal of opioid overdoses.
Riad “Ray” Zahr, of Dearborn, Mich. and two specialty pharmacies that Zahr formerly owned and operated have agreed to resolve allegations that they submitted false claims for the drug Evzio. Evzio was a naloxone hydrochloride product used for the rapid reversal of an opioid overdose. Evzio was the highest-priced version of naloxone on the market and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States contends that, between Aug. 1, 2017 and June 30, 2019, Plymouth Towne Care Pharmacy, Inc. d/b/a People’s Drug Store (People’s Drug Store) and Shaska Pharmacy LLC d/b/a Ray’s Drugs (Ray’s Drugs) submitted false claims for Evzio to Medicare. In particular, the government alleges that People’s Drug Store and Ray’s Drugs submitted false and misleading prior authorization requests for Evzio that contained clinical assertions for which the pharmacies lacked any factual basis. At times, Zahr and the pharmacies initiated Evzio prescriptions based on rudimentary patient lists with only basic biographical details. In the prior authorization requests, Zahr and the pharmacies also included assertions about the comparative effectiveness of Evzio purportedly authored by prescribing physicians but that Zahr and the pharmacies actually wrote. The prescribing physicians did not review, sign, or submit the prior authorizations at issue.
The settlement also resolves allegations that Zahr, People’s Drug Store and Ray’s Drugs dispensed Evzio prescriptions to Medicare beneficiaries at times without collecting or attempting to collect co-payment obligations for Evzio, in violation of the Anti-Kickback Statute.
“Taxpayers pay a huge amount of money for federal health care programs, and they expect that money will be spent honestly and effectively – especially when it comes to expensive therapies,” said Acting United States Attorney Nathaniel R. Mendell. “Our job is to find and stop misconduct like this, which hurts those programs and cheats us all.”
“We expect the submission of truthful and non-misleading documentation by all those involved in the delivery of health care goods or services, including pharmacies that submit claims for pharmaceutical products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“When healthcare providers put their own financial gain above honest billing of Medicare, they violate the basic trust the public extends to healthcare professionals,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General. “Our agency, working with our law enforcement partners, will continue to root out all forms of waste, fraud and abuse in our federal health care programs.”
“Pharmacies that take shortcuts to increase their profits by submitting false claims for expensive drugs increase medical costs for all of us,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement should deter anyone thinking about abusing our federal health care programs that so many rely on for their health care needs.”
Under the terms of the settlement agreement, Zahr, People’s Drug Store, and Ray’s Drugs will pay the government $1 million. The civil settlement includes the resolution of claims brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery.
Acting U.S. Attorney Mendell; AAG Boynton; HHS OIG SAC Coyne; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys David J. Derusha and Abraham R. George of Mendell’s office and Trial Attorney Sarah Arni of the Justice Department’s Civil Division handled the matter.
Pharmacist and Two Pharmacies Agree to Pay $1 Million to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
Riad “Ray” Zahr, a pharmacist in Dearborn, Michigan, along with two specialty pharmacies that Zahr formerly owned and operated, have agreed to pay the United States $1 million to resolve allegations that they submitted false claims for the drug Evzio. Evzio was an injectable form of naloxone hydrochloride indicated for use to reverse opioid overdose. Evzio was the highest-priced version of naloxone on the market, and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States contended that, between Aug. 1, 2017, and June 30, 2019, Plymouth Towne Care Pharmacy dba People’s Drug Store (People’s Drug Store) and Shaska Pharmacy LLC dba Ray’s Drugs (Ray’s Drugs) submitted false claims for Evzio to Medicare. In particular, the government alleged that People’s Drug Store and Ray’s Drugs submitted false and misleading prior authorization requests for Evzio that contained clinical assertions for which the pharmacies lacked any factual basis. At times, Zahr and the pharmacies initiated Evzio prescriptions based on rudimentary patient lists with only basic biographical details. Zahr and the pharmacies also included assertions in Evzio prior authorization requests purportedly authored by prescribing physicians regarding the comparative effectiveness of Evzio that the pharmacies or Zahr actually authored. The prescribing physicians did not review, sign or submit the prior authorizations at issue. The settlement also resolves allegations that Zahr, People’s Drug Store and Ray’s Drugs dispensed Evzio prescriptions to Medicare beneficiaries at times without collecting or attempting to collect co-payment obligations for Evzio, in violation of the Anti-Kickback Statute.
“We expect the submission of truthful and non-misleading documentation by all those involved in the delivery of health care goods or services, including pharmacies that submit claims for pharmaceutical products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“Taxpayers pay a huge amount of money for federal health care programs, and they expect that money will be spent honestly and effectively – especially when it comes to expensive therapies,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Our job is to find and stop misconduct like this, which hurts those programs and cheats us all.”
“When health care providers put their own financial gain above honest billing of Medicare, they violate the basic trust the public extends to health care professionals,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS OIG). “Our agency, working with our law enforcement partners, will continue to root out all forms of waste, fraud and abuse in our federal health care programs.”
“Pharmacies that take shortcuts to increase their profits by submitting false claims for expensive drugs increase medical costs for all of us,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “Today's settlement should deter anyone thinking about abusing our federal health care programs that so many rely on for their health care needs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo Inc., the manufacturer of Evzio. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Ms. Socol will receive $200,000 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. Plymouth Towne Care Pharmacy, Inc., 18-cv010050-RGS (D. Mass.) (under seal). On Nov. 9, the department announced that kaléo agreed to pay $12.7 million to resolve allegations that kaléo caused the submission of false claims for Evzio.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS OIG; the Department of Defense Criminal Investigative Service; the Office of Personal Management, Office of Inspector General; the FBI; and the U.S. Postal Service Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorneys David Derusha and Abraham George for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pennsylvania man guilty of threatening federal, circuit court judgesRead the Press Release
HARRISBURG, PENNSYLVANIA – Keith Thomas Dougherty, of Harrisburg, Pennsylvania, was found guilty last week of threatening federal and state judges, United States Attorney William J. Ihlenfeld, II announced.
After a three-day trial, Dougherty, 66, was found guilty of one count of “Mailing Threatening Communications” and two counts of “Interstate Communication with Threat to Injure.” Dougherty made threats to injure federal and state judges in the Middle and Western Districts of Pennsylvania in May 2017, March 2019, and January 2020. During trial, a letter and emails were shown where Dougherty threatened the “bashing of sculls” of three state court judges, “ISIS Style Beheading” of three district court judges and magistrates and threatened the lives of three circuit court judges by “AR 15’s.” Emails were also shown to have Dougherty threatening Western District of Pennsylvania U.S. District Court Judge Joy F. Conti by ordering “a sniper” to “shoot Conti in the head just to shut her up.”
Dougherty faces up to 10 ten years of incarceration and fine of up to $250,000 for the mailing charge and faces up to five years of incarceration and a fine of up to $250,000 for each of the interstate communication charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys David J. Perri and Shawn M. Adkins of the Northern District of West Virginia prosecuted the case as Special Assistant U.S. Attorneys for the Middle District of Pennsylvania. The U.S. Marshal Service, the FBI, the U.S Postal Inspection Service, and the Pennsylvania Capitol Police investigated.
Chief U.S. District Judge Colm F. Connolly of the District of Delaware presided.
Parkersburg Man Sentenced to Prison for Making False Statements on Loan ApplicationRead the Press Release
CHARLESTON, W.Va. - A Parkersburg man was sentenced today to two years in prison and ordered to pay $490,000 in restitution for making false statements on a loan application.
According to court documents and statements made in court, Jonathan Smith, 36, submitted an application to a federal credit union on June 22, 2016 for a loan in the amount of $505,000. In that application, Smith falsely represented that he intended to use the proceeds of the loan to purchase a 1963 Corvette when he know he had already purchased the Corvette for $35,000. Smith also falsely represented his monthly income to be $10,132 when it was only a fraction of that amount, and that the fair market value of the car was $1.2 million when its true value was less than $50,000. Smith further indicated that he was the owner of a certain business, when he had no ownership interest in that business.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Christopher R. Arthur handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00173.
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Palm Beach County Adventure Park Zookeeper Headed to Federal Prison for Possessing Child PornographyRead the Press Release
Miami, Florida – Yesterday, a federal district judge in Fort Lauderdale sentenced 31-year-old Justin David Alban to 70 months in federal prison and 15 years of supervised release for possessing child pornography.
Over 18 months between 2019 and 2020, Alban used an on-line peer-2-peer network to obtain child sexual abuse material. In 2020, law enforcement officers found the child pornography on Alban’s computers. At the time, Alban worked as a zookeeper at a safari adventure park in Palm Beach County, Florida.
On October 15, 2020, Alban pled guilty to one count of possession of child pornography. United States District Judge Raag Singhal imposed Alban’s sentence.
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 the case. Assistant U.S. Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-80067.
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Office on Violence Against Women Announces Awards to 11 Indian Tribal Governments to Exercise Special Domestic Violence Criminal JurisdictionRead the Press Release
The U.S. Department of Justice Office on Violence Against Women (OVW) today announced awards to 11 Indian Tribal governments to support them in exercising special domestic violence criminal jurisdiction (SDVCJ). The Violence Against Women Reauthorization Act of 2013 (VAWA 2013) recognized the authority of tribes to exercise SDVCJ over certain defendants, regardless of their Indian or non-Indian status, who commit crimes of domestic violence or dating violence or violate certain protection orders in Indian country.
“We heard from tribal leaders that they need access to funds to support the day-to-day costs of SDVCJ, and I’m pleased to announce OVW is issuing eleven awards to implementing tribes to defray these costs,” said OVW Principal Deputy Director Allison Randall. “OVW is dedicated to working with tribes to address challenges in protecting victims and responding to offenders in their communities, as well as supporting tribal sovereignty."
The recipients of today’s one-year awards under OVW’s Tribal Jurisdiction Program are: Chickasaw Nation, Oklahoma; Eastern Band of Cherokee Indians, North Carolina; Fort Peck Assiniboine and Sioux Tribes, Montana; Muscogee (Creek) Nation, Oklahoma; Nottawaseppi Huron Band of the Potawatomi, Michigan; Pascua Yaqui Tribe, Arizona; Port Gamble S’klallam Tribe, Washington; Pueblo of Santa Clara, New Mexico; Seminole Nation of Oklahoma; the Cherokee Nation of Oklahoma; and the Tulalip Tribes of Washington.
OVW’s Tribal Jurisdiction Program was authorized under VAWA 2013 and supports tribes with jurisdiction over Indian country in exercising SDVCJ. Tribal Jurisdiction Program funds may be used to strengthen tribal criminal justice systems, provide indigent criminal defense, conduct jury trials and provide services and applicable rights to crime victims. Costs could include, but are not necessarily limited to, incarceration costs (including medical care) for non-Indian SDVCJ defendants, trial costs for SDVCJ cases, defense counsel costs, costs associated with empaneling a jury for an SDVCJ trial, batterer’s intervention or other pre- or post-conviction supervision or programming costs and related training and technical assistance.
About the Office on Violence Against Women
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Nixa Physician Pleads Guilty to Making a False Statement Related to Healthcare and ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Nixa, Missouri, physician pleaded guilty in federal court yesterday to making a false statement to Medicare to obtain insurance coverage for a fentanyl prescription and to conspiring with others to use his DEA registration number to issue Schedule II controlled substances to patients in his absence.
Randall Halley, 65, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush on Tuesday, Dec. 7, to one count of making a false statement related to healthcare and one count of conspiracy to use a registration number issued to another person in connection with the distribution of a controlled substance.
Halley, a licensed physician, was employed by Ozark Community Hospital - Christian County Clinic in Nixa from 2004 to June 2019. He also was employed from 2009 to 2017 as the medical director at Magnolia Square, a skilled nursing facility in Springfield, Mo.
By pleading guilty yesterday, Halley admitted that he prescribed Subsys, a fentanyl spray manufactured by Insys Therapeutics, to a patient. Halley submitted a request to Medicare for payment coverage of the prescription, falsely stating that the patient had a diagnosis of cancer. Halley knew that the patient did not have a diagnosis of cancer at that time, and was not being treated for breakthrough cancer-related pain – two conditions that Medicare required for payment coverage of Subsys. Due to Halley’s false statement, Medicare paid a total of $11,945 to cover the prescription and subsequent Subsys prescriptions.
Halley also admitted that he conspired with others at the clinic to use his registration number so they could provide prescription medication in his absence, including Schedule II controlled substances. Halley was scheduled to only be present at the clinic in Nixa on Mondays and Thursdays. Although he was often absent on those days, he still scheduled patients for appointments. In order for the clinic to continue issuing prescriptions in Halley’s absence, he directed others at the clinic to prepare prescriptions ahead of time so that he could sign them several days before the patients’ appointments. On those days when Halley was absent, he directed others at the clinic to give the patients their prescriptions, including Schedule II controlled substances. Due to this illegal conduct, Medicare paid a total of $18,901 to cover the cost of those prescriptions.
Halley specifically admitted to conspiring with Susan Gail Morris, a nurse practitioner; Lily (Nga) Nguyen, a nurse practitioner; Amber Moeschler, a licensed practical nurse; and Kimberly Hoffer, a licensed practical nurse, to use his DEA registration number to distribute Schedule II controlled substances. Morris, Nguyen, and Moeschler have already pleaded guilty to crimes related to their conduct in this conspiracy. Co-defendant Hoffer has pleaded not guilty and is set for trial in February 2022.
Under the terms of today’s plea agreement, Halley will pay a $92,225 fine and $44,887 in restitution to Medicare. The government may seek up to $355,678 in additional restitution to Medicare at the time of Halley’s sentencing hearing for conduct relevant to his false statement involving Subsys prescriptions. Additionally, Halley agreed to refrain from treating medical patients who may require the issuance of prescriptions for controlled substances, throughout the period of any post-sentencing supervision.
Under federal statutes, Halley is subject to a sentence of up to nine years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Casey Clark and Nhan D. Nguyen. It was investigated by the Department of Health and Human Services, the FBI, and the Drug Enforcement Administration.
Newport News Commercial Fisherman Sentenced for Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Newport News commercial fisherman was sentenced today to 15 months in prison for evading payment of his federal income taxes for nearly a decade.
According to court documents, from 2006 to 2016, Alfredo Loya, Jr., 50, a commercial fisherman, worked as an independent contractor for a number of fishing companies in the Hampton Roads region and elsewhere. Loya failed to file tax returns from 2006 to 2008 and 2014 to 2016. He filed returns from 2011 to 2013 but did not pay the tax owed.
Court records show that Loya failed to make payments to the IRS towards his assessed tax balances for tax years 2006, 2007, 2008, 2011, and 2013, despite being advised by the IRS and his accountant to do so. The combined tax, interest, and penalties for these tax years total approximately $148,026. Loya further failed to file Federal Tax Returns for tax years 2014, 2015, and 2016, despite being aware of his obligation to report income and pay taxes on that income. The tax due for these tax years totals approximately $90,940. Loya is attributed with an overall tax loss of approximately $238,967. Loya took various steps to avoid his assessed tax balances. He dealt heavily in cash. From about January 1, 2012, through about December 31, 2016, he cashed 71 paychecks made payable to him from fishing companies, totaling approximately $840,400.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Brian Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-29.
New Orleans Felon Convicted on Gun Charge for Shooting in New Orleans-East NeighborhoodRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that STERLING ROBINSON, also known as “Scooter,” age 31, a resident in the New Orleans area, was convicted on December 7, 2021 by a jury in the Eastern District of Louisiana of being a felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and obstruction of justice in violation of Title 18, United States Code, Section 1512(c)(2).
Testimony and evidence introduced at trial proved that ROBINSON possessed a firearm and ammunition when he fired five (5) shots into a car being driven by his girlfriend with her nine-year-old son as a passenger. The shooting occurred on March 13, 2020 in the 7700 block of Downman Road in New Orleans. ROBINSON then obstructed justice by attempting to dishonestly influence his girlfriend into testifying that someone else shot at her and her son. According to court records, ROBINSON was previously convicted of a federal felony charge for being in possession of a firearm in furtherance of a drug trafficking crime. When the current offense happened, ROBINSON was still on supervised release with U.S. Probation after having served a five-year sentence for that previous conviction.
ROBINSON is facing up to ten years in prison, up to three years of supervised release, a maximum fine of $250,000, and a mandatory special assessment fee of $100 for being a felon in possession of a firearm. For obstruction of justice, he faces up to twenty years in prison, up to three years of supervised release, a maximum fine of $250,000, and a mandatory special assessment fee of $100.
The Honorable U.S. District Judge Eldon E. Fallon presided over the case and no sentencing date has been set at this time.
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 praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter. Assistant United States Attorneys Maurice E. Landrieu, Jr. and Charles D. Strauss prosecuted to the case.
Mexican Man Sentenced to 200 Months for Possessing with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Roberto Luna-Nava, 34, of Durango, Mexico, was sentenced today by United States District Judge Brian C. Buescher for Possessing with Intent to Distribute 500 grams or more of methamphetamine. Luna-Nava received a sentence of 200 months’ imprisonment with a 5-year term of supervised release to follow. There is no parole in the federal system.
In August 2019, agents with the Drug Enforcement Administration (Sioux City) began investigating Luna-Nava for his role in distributing large amounts of methamphetamine in the Norfolk, Nebraska area. Agents bought ½ pound and pound quantities of methamphetamine from Luna-Nava on August 12, 2019, August 20, 2019, August 26, 2019, and September 18, 2019. On September 26, 2019, Luna-Nava was stopped by the Nebraska State Patrol and was in possession of one pound of methamphetamine. A search warrant was executed on Luna-Nava’s residence and a storage shed used by Luna-Nava. During the search, an additional 18 pounds of methamphetamine were recovered.
This case was investigated by the DEA and the Nebraska State Patrol.
Meadville Woman, 66, Indicted for Running Various Fraud SchemesRead the Press Release
PITTSBURGH - A resident of Meadville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Conspiracy to Commit Mail Fraud, Mail Fraud, Wire Fraud and Making a False Statement to Government, United States Attorney Cindy K. Chung announced today.
The 13-count Indictment, returned on December 7 and unsealed today, named Diana Eckert, age 66, as the sole defendant.
According to the Indictment, from May 2020 to July 2021, Eckert participated in the execution of various fraudulent schemes, including decal, romance and car buying scams, targeted at individuals across the United States.
The law provides for a maximum total sentence of not more than twenty (20) years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Jeffrey R. Bengel and Karen Gal-Or are prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Sentenced to over 14 Years in Prison for Possession of Child PornographyRead the Press Release
SAN ANTONIO – A Maryland man was sentenced today to 170 months in prison for possession of child pornography.
According to court documents and testimony at trial, Hae Yeong Song, 29, was stationed at Joint Base San Antonio and was a private first class in the Army. Around January 2018, Song’s cell phone was searched as part of an investigation by the United States Army Criminal Investigation Command into another matter. Images and videos of child pornography were found on Song’s phone. In addition, conversations between Song and an unidentified Korean national were discovered. In those conversations, Song requested child pornography images of elementary aged children.
On July 21, 2021, U.S. District Judge David A. Ezra found Song guilty of one count of receipt of child pornography and one count of possession of child pornography. Song has remained in federal custody since his guilty verdict in July 2021.
In addition to the prison sentence, Song was ordered to pay $22,500 in restitution.
“This case involved the sexual abuse of children as young as three years old,” said U.S. Attorney Ashley C. Hoff. “Child predators inflict immeasurable harm and we will continue to work closely with our partners to deliver justice for victims.”
“The FBI is adamant about protecting children online - to include graphic images and videos of children,” said FBI Special Agent in Charge Christopher Combs. “Those who traffic in obscene material continue the abuse of that child that was captured when the file was created. The FBI will work tirelessly to prosecute these offenders that continue to traffic and possess these types of files.”
The FBI, with assistance from the U.S. Army Criminal Investigation Command, investigated the case.
Assistant U.S. Attorneys Bettina Richardson and Eric Yuen prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Maryland MS-13 Member Sentenced to 20 Years in Federal Prison for Armed Robberies in Maryland and VirginiaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jose Guillermo Molina-Arevalo, age 27, of Kensington, Maryland, to 20 years in federal prison, followed by three years of supervised release, for federal charges in Maryland and the Eastern District of Virginia related to a series of armed commercial robberies. Judge Grimm also ordered Molina-Arevalo to pay restitution in the amount of $90,927.45. In Maryland, Molina-Arevalo is convicted of conspiracy to commit an armed commercial robbery and for committing armed commercial robbery. In the Eastern District of Virginia, Molina-Arevalo is convicted of two counts of committing commercial robberies and two counts of brandishing a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; United States Attorney for the Eastern District of Virginia Jessica D. Aber; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; Chief Kevin Davis of the Fairfax County, Virginia Police Department; Chief Maggie A. DeBoard of the Herndon, Virginia Police Department; Montgomery County State’s Attorney John McCarthy; and Loudoun County, Virginia Commonwealth’s Attorney Buta Biberaj.
According to Molina-Arevalo’s plea agreement in the Eastern District of Virginia, he is a member of the Pinos Locos Salvatruchos (PLS) clique of La Mara Salvatrucha (MS-13), a transnational criminal street gang. Between June 6, 2017 and November 3, 2017, Molina-Arevalo and other PLS members and associates participated in a number of robberies in the Eastern District of Virginia and in Maryland. Molina-Arevalo admitted that he participated in the June 6th robbery and served as a look-out for all the of the other robberies.
On June 6, 2017, Molina-Arevalo and other PLS members and associates traveled from Maryland to Herndon, Virginia. Wearing masks and displaying firearms, Molina-Arevalo and the other robbers entered a store that also serves as a MoneyGram location in the 1100 block of Elden Street. The robbers demanded money and fled the store with a large amount of cash and security recording equipment worth about $250.
As detailed in the plea agreement, on August 18, 2017, Molina-Arevalo and other PLS members and associates robbed the same store, again wearing masks and displaying firearms. The robbers stole approximately $19,500 and the security equipment. The co-conspirators then entered a restaurant across from the store, still wearing masks and displaying firearms. They ordered the restaurant patrons and staff to the ground and kept them there for several minutes before fleeing through the restaurant’s rear exit. Molina-Arevalo remained outside in a vehicle and acted as a look-out while his co-conspirators were inside both establishments.
On September 15, 2017, Molina-Arevalo and other PLS members and associates traveled to a convenience store in Sterling, Virginia, where four of the co-conspirators entered the store brandishing firearms. Three of the co-conspirators wore masks. They stole between $3,00 and $5,000, as well as electronic devices belonging to the employees, patrons, and a deliveryman. Again, Molina-Arevalo remained outside in a vehicle and acted as a look-out while his co-conspirators were in the convenience store.
According to the Maryland plea agreement, in November 2017, Molina-Arevalo conspired with others to commit commercial robberies in Silver Spring, Maryland. Specifically, Molina-Arevalo conducted surveillance on the robbery targets before the robberies, helped to plan the robberies, knowing that at least one of his co-conspirators would be armed with a gun during the robberies, and acted as a look-out during the robberies.
As detailed in the plea agreement, Molina-Arevalo’s co-conspirators, wearing masks and armed with at least one firearm, entered a building in Silver Spring that contained Business 1 and Business 2. The co-conspirators demanded money from the employees of Business 1. One of the co-conspirators jumped over the counter of Business 1 and took more than $200 belonging to Business 1. The co-conspirators then went to Business 2, a separate business in the same building, and demanded money, but the employees refused to comply with their demands. The co-conspirators then attempted to enter the area where the cash was kept, but they were unsuccessful. The conspirators then fled with the funds from Business 1 to a waiting getaway vehicle driven by another co-conspirator.
United States Attorneys Erek L. Barron and Jessica D. Aber praised the FBI, the U.S. Postal Inspection Service; the Montgomery County Police Department, the Fairfax and Herndon, Virginia Police Departments; the Montgomery County State’s Attorney’s Office and the Loudoun County Virginia Commonwealth’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron and Ms. Aber thanked Assistant U.S. Attorneys William D. Moomau and John C. Blanchard, who prosecuted the Maryland and Eastern District of Virginia cases, respectively.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Manchester Man Pleads Guilty to Drug Trafficking and Firearms CrimesRead the Press Release
CONCORD - Quentin Simon, a/k/a "Q", 37, of Manchester, pleaded guilty on Tuesday in federal court to possession of controlled substances with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2020, a cooperating individual told Manchester police detectives that Simon was selling crack, fentanyl and pills out of his apartment. After completing a series of controlled buys between the cooperator and Simon between May 5 and August 12, 2020, detectives obtained an arrest warrant for Simon and search warrant for his apartment.
On August 18, 2020, detectives arrested Simon and executed the search warrant. Throughout the apartment, detectives located items indicative of drug distribution and controlled substances. Cash totaling $79,848 was also located. Lab analysis confirmed the drugs totaled over 1,168 grams of cocaine and over 115 grams of crack cocaine. A .380 caliber handgun and ammunition were in proximity to a large container of cocaine.
Simon is scheduled to be sentenced on March 14, 2022. The cash, gun, and a large collection of sneakers were all seized and forfeited as a result of this prosecution.
“Armed drug traffickers present a serious threat to public safety in our community,” said Acting U.S. Attorney Farley. “As part of our continued partnership with the Manchester Police Department, we are working to identify and prosecute the armed drug dealers who endanger the citizens of Manchester. By prosecuting these dangerous individuals, we will reduce the risk of violent crime in the Granite State.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth. Forfeiture aspects of this case were handled by Assistant U.S. Attorney Robert Rabuck.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Sentenced to 45 Years in Federal Prison for Sexual Abuse of Two- and Seven-Year-Old Children to Produce Child PornographyRead the Press Release
Today, Brian Anthony Gilbert, 34, of Owings Mills, Maryland, was sentenced to a total of 540 months, or 45 years, in federal prison, followed by lifetime supervised release, for two counts of production and one count of possession of child pornography. Upon his release from prison, Gilbert is required to register as a sex offender.
“Not only did the defendant commit egregious acts of abuse against two children in his community, but he also recorded and exploited the abuse and trauma of young victims on the Dark Web,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s sentence demonstrates our commitment to protecting children from threats. I commend the professionalism of our agents and law enforcement partners in bringing Brian Gilbert to justice.”
“There are no words to adequately express how disturbing this case truly is,” said U.S. Attorney Erek L. Barron for the District of Maryland. “This sentence sends a clear message that we will bring to justice those who victimize innocent children.”
“When the most vulnerable of our citizens – our children – are victimized we will do everything in our power to hold the perpetrators accountable and to protect others from harm,” said Special Agent in Charge Thomas J. Sobocinski of the FBI’s Baltimore Field Office. “Not only did the abuser harm two innocent children, but he furthered their victimization by distributing heinous materials online. Mr. Gilbert will now spend a significant time behind bars.”
According to court documents, in August 2020, Gilbert uploaded and advertised at least two video files to an online bulletin board dedicated to child pornography hosted on the Tor network, a computer network specifically designed to facilitate anonymous communication over the internet. The videos were approximately 10 minutes and 15 minutes in length, respectively, and depicted sexual acts between Gilbert and an approximately seven-year-old female victim (Victim 1). In Gilbert’s posts to the online bulletin board, he admits to having produced both videos.
As detailed in his plea agreement, on Sept. 11, 2020, law enforcement officers executed a search warrant at Gilbert’s residence while he was present. During the execution of the search warrant, Gilbert waived his rights and informed law enforcement that he video-recorded sexual acts between himself and Victim 1 in his bedroom and at Victim 1’s residence approximately five times between January 2019 and August 2020. He also stated he recorded sexual acts between himself and another victim, who was approximately two-years old (Victim 2) at the time. Gilbert further told law enforcement that he distributed the child sexual abuse material, which he produced, on the Tor network.
During the execution of the search warrant, law enforcement seized electronic devices from Gilbert’s bedroom. A subsequent forensic analysis of Gilbert’s electronic devices revealed over 2,000 files of child pornography. Among those files were six videos of Gilbert engaging in sexual acts with Victim 1 and Victim 2 in Gilbert’s bedroom or in Victim 1’s residence. Some of the child pornography located on Gilbert’s devices included pre-pubescent children under the age of 12 as well as sadistic or masochistic conduct, including the use of instruments or tools on children, and sexual acts between adults and children.
The FBI investigated the case, with valuable assistance provided by the Prince George’s County Police Department.
Assistant U.S. Attorney Joseph R. Baldwin for the District of Maryland, and Trial Attorneys Jessica Urban and Alicia Bove of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Facing Federal Charges for Possession with Intent to Distribute Controlled Substances and Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Nathan Coakley, age 40, of Baltimore, Maryland, for possession with intent to distribute a controlled substance and possession of firearms in furtherance of drug trafficking.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the two-count indictment, on July 6, 2021, Coakley possessed four firearms and possessed and intended to distribute 50 grams or more of methamphetamine. As stated in the indictment, Coakley possessed one assault-style rifle, a .380 caliber rifle, and two 9mm handguns. One of the two handguns was a privately made firearm without a serial number.
In addition to the four firearms, Coakley allegedly possessed 160 rounds of .380 caliber ammunition, 133 rounds of 9mm caliber ammunition, 273 rounds of 7.62 caliber ammunition, and $5,389 in cash.
If convicted, Coakley faces a maximum sentence of life in federal 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the ATF and BPD for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Annie McGuire and Special Assistant U.S. Attorneys James Tuomey, who are prosecuting the federal case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile.
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Malden Man Sentenced for COVID-Relief Fraud and Identity TheftRead the Press Release
BOSTON – A Malden man was sentenced today in connection with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.
Wagner Sozi, 33, was sentenced by U.S. District Judge George A. O’Toole Jr.to 39 months in prison and two years of supervised release. Sozi was also ordered to pay forfeiture and restitution in the approximate amount of $110,000. On May 13, 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim.
Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who worked for the realty company, and various files belonging to the company were found in the apartment. Numerous identity theft victims tied to Sozi had been clients of the realty company, including at least one person in whose name a fraudulent PUA claim was filed.
Sozi, along with a female accomplice, opened store credit accounts at Massachusetts Staples locations under various fake identities and then used these accounts to purchase more than $80,000 in Visa gift cards. Sozi and his co-conspirator submitted fraudulent Staples’ store credit account applications using the personal identifying information of more than 60 victims, which Voltaire processed in exchange for $8,000 in kickbacks. In addition to the use of stolen identity information to open Staples credit accounts, Sozi used such information to purchase a Rolex for more than $15,000, withdraw $5,000 cash and rent a Dodge Charger and a Ford Mustang, both of which he failed to return.
On Oct. 26, 2021, Voltaire pleaded guilty to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on Feb. 28, 2022.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, made the announcement today. Valuable assistance in the investigation was provided by the Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit; the Massachusetts State Police; and the Malden, Medford and Braintree Police Departments. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.