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24 January 2022
Woman Sentenced to Seven Years in Prison for Stealing Millions in Federal Funds from Huntington Children's CharityRead the Press Release
HUNTINGTON, W.Va. – A Chesapeake, Ohio, woman was sentenced to seven years in federal prison for stealing federal funds from River Valley Child Development Services (“RVCDS”), a non-profit organization located in Huntington. RVCDS provides programs, services, and support to children and families in the region.
Ruth Marie Phillips, also known as Marie Phillips, 69, worked at RVCDS from December 1986 until September 2020 and held various positions at the non-profit organization. Phillips served as Director of Business and Finance and was responsible for all financial operations, including monitoring accounts receivable, creating and submitting invoices, reconciling bank accounts and issuing checks. From July 1, 2016, to on or about June 30, 2017, RVCDS received approximately $7,131,756 in federal funding and Phillips used her position of trust and authority to steal approximately $964,012 during that period.
Phillips further admitted that between December 2013 and August 2020, she stole approximately $4,721,731 from RVCDS. During that period, she sent $1,142,500 to her personal checking account and sent another $3,395,500 to Attitude Aviation’s bank account. Attitude Aviation has offices at Lawrence County Airpark in South Point, Ohio, and Tri-State Airport in Huntington and provides aeronautical services, including fueling, rental of hangar space, aircraft rental, flight instruction and maintenance.
In sentencing Phillips, the Court departed upward from the sentencing guidelines, noting that the guideline range failed to account for the substantial harm Phillips caused the non-profit in the community and the impact Phillips’ theft had on taxpayers.
To assist with restitution, Phillips has agreed to forfeit substantial assets, including $304,576.49 in proceeds from the sale of a lake house at Smith Mountain Lake in Virginia that she bought during her scheme to defraud the non-profit, $169,954.58 in proceeds from the sale of a Randolph County property, $322,288.50 in proceeds from the sale of two airplanes, her Chesapeake, Ohio, residence, several vehicles including a Lexus RX and a Chevrolet Corvette, and four additional airplanes that are anticipated to sell soon. As of the date of sentencing, Phillips has forfeited approximately $868,561.44, which both parties anticipate applying to her ultimate restitution debt. The full amount of restitution will be determined at a hearing on April 4, 2022.
“Phillips stole millions of dollars meant for families and children in the Huntington area for her own personal use. It doesn’t get much worse than stealing from children,” said United States Attorney Will Thompson. “I am thankful for the work of our law enforcement partners and my staff which resulted in a substantial sentence for Phillips and ensured that she will pay restitution to the nonprofit.”
The Federal Bureau of Investigation, the West Virginia State Police, the Central West Virginia Drug and Violent Crime Task Force, the Lawrence County, Ohio, Sheriff’s Office, and the Litigation Financial Analyst with the U.S. Attorney’s Office conducted the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Kristin F. Scott prosecuted the case. Assistant United States Attorney Kathleen Robeson is handling the forfeiture of Phillips’ many assets.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00135.
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Utah County Man Sentenced for Fraud Related to a Paycheck Protection Program (PPP) LoanRead the Press Release
SALT LAKE CITY – A Utah County resident was sentenced last Wednesday in connection with fraudulent representations he made to get a loan under the Paycheck Protection Program (PPP).
Michael Leroi Douros, 66, of Lehi, was sentenced to 28 months in prison after pleading guilty to two counts of bank fraud, two counts of making a false statement to a bank, and money laundering contained in the felony information with which Douros was charged in federal court. After being released from prison, Douros will serve three years of supervised release.
According to court documents filed as a part of his plea agreement, Douros made false representations to two banks, for a total amount of $437,891, to get a PPP loan for his business, Epic Rentals UT LLC. The business was registered with the Utah Division of Corporations on June 5, 2019, with his son, listed as the registered agent. The false statements included in the loan applications related to (1) misrepresentations about Epic Rentals’ monthly payroll and the number of employees the business had; (2) claims that his son owned 50 percent of Epic Rentals when his son was a straw owner and did not own any portion of the business when at least one application was submitted; and (3) a failure to disclose on the loan application that he had been convicted of a felony in Utah and had been on probation in the last five years.
PPP loan applications make clear, that any company which was owned 20% or more by someone with such criminal history was disqualified from receiving PPP funds. Based on Douros’s criminal history, and the fact that he was still on probation when the loan applications were submitted, his business was ineligible for PPP funding.
To implement his scheme to defraud the Paycheck Protection Program, Douros first submitted an application with false statements through Zions Bank. Zions Bank initially funded the PPP loan of $198,000 to Epic Rentals. However, upon further inspection of the representations in the loan application, the bank cancelled the loan transfer. Douros then submitted a second PPP loan application containing false statements through Cache Valley Bank, which was funded in the amount of $239,091.67 to Epic Rentals. The money laundering conviction relates to a $20,000 payroll check made payable to the defendant from an Epic Rentals bank account.
“This prosecution highlights the serious penalties that can be imposed on anyone who attempts to defraud the federal government out of Paycheck Protection Program funding meant for honest and hardworking small businesses,” said United States Attorney Andrea T. Martinez. “The District of Utah takes all Paycheck Protection Program fraud seriously and will aggressively prosecute anyone who attempts to defraud the United States Government out of this funding which Congress has made available for small businesses.”
"The Covid-19 pandemic has resulted in a lot of hardship for so many small businesses struggling to stay afloat,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “Mr. Douros lied in order to get a PPP loan, lining his pockets with funds that should have gone to other businesses. We hope his sentence serves as a deterrent to those looking to engage in this type of fraud."
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 up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
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.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. FBI special agents investigated the matter.
Two Washington residents suspected of transporting illegal aliens who crossed into United States from Canada appear in courtRead the Press Release
MISSOULA — Two Washington residents suspected of transporting six illegal aliens who allegedly crossed into the United States from Canada near Eureka had initial appearances on criminal complaints on Jan. 21, U.S. Attorney Leif M. Johnson said.
Criminal complaints filed in the case accuse Leslie Patricia Rivera, 51, and Miguel Angel Medina, 61, both of the Seattle, Washington, area of conspiracy to transport and transportation of illegal aliens.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Rivera was detained pending further proceedings. Medina was released on conditions pending further proceedings after a detention hearing today.
In court documents, the government alleged that on Jan. 19 at about 5 a.m., a Border Patrol agent was notified of persons potentially attempting to illegally enter the United States near the Green Basin area of West Kootenai by crossing the international boundary from Canada. The agent further learned that a group of unknown individuals, possibly from six to nine persons, were attempting to cross the border on foot. The agent ultimately stopped a suspected vehicle, an SUV with a Washington license plate, on a Forest Service road.
The government further alleged that an investigation determined Rivera was the driver and Medina was the front passenger. In the back seats were six occupants, who indicated to the agent that they were in the country illegally. All eight persons were transported to the Border Patrol Station in Eureka for processing.
The case is being prosecuted by the U.S. Attorney’s Office. The U.S. Border Patrol investigated the case.
PACER case reference. MJ-22-1
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Two Huntington Men Plead Guilty for Roles in Multi-State Drug RingRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men who participated in a drug ring distributing various drugs, including methamphetamine and cocaine, pleaded guilty today in federal court. Edward Shane Midkiff, 34, pleaded guilty to distribution of methamphetamine and Mark Anthony Chandler, 30, pleaded guilty to possession with intent to distribute cocaine.
According to the plea agreements and statements made in court, on January 12, 2021, Midkiff was contacted by a confidential informant to arrange a methamphetamine purchase. Midkiff directed the informant to come to the 500 block of 4th Avenue in Huntington to complete the transaction. At that location, Midkiff met with the informant in a vehicle where he sold the informant methamphetamine.
On June 30, 2021, Chandler received approximately one-half kilogram of cocaine from another individual in Huntington. Chandler was subsequently transporting the cocaine to another location when a Deputy with the Cabell County Sheriff’s Office initiated a traffic stop of Chandler’s vehicle. Chandler fled from the stop and was arrested on a later date. During the stop, the deputy seized the cocaine as well a 9mm pistol that Chandler left in the vehicle. Chandler admitted that he intended to distribute the cocaine.
Midkiff and Chandler both face up to 20 years in federal prison when they are sentenced on May 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans are handling the prosecutions.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Twenty-Three People Indicted in Staged Automobile Accident SchemeRead the Press Release
Richland, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced the unsealing of a 138-count federal indictment charging twenty-three defendants in Washington, California, Michigan, Nevada, and British Columbia, Canada with participating in a staged automobile accident scheme, obstructing an official proceeding, and making false statements to FBI investigators.
According to the indictment, twenty-two of the defendants conspired to commit mail and wire fraud and health care fraud by staging approximately 14 automobile accidents and thereafter caused the submission of almost $1 million in false insurance claims for lost wages, bodily injury, and property damage. According to the allegations, in at least three of the staged accidents, there were no occupants (driver or passengers) in the “victim” vehicle when a defendant deliberately drove the “at fault” vehicle” into the “victim” vehicle. The twenty-two defendants alleged to have been involved in the scheme are: Ali Abed Yaser, Hussein A. Yasir, Insaf A. Karawi, Hasanein A. Yaser, Ahmad K. Bachay, Mashael A. Bachay, Hussein K. Bachay, Mohammad Bajay, Noor Tahseen Al-Maarej, Ali F. Al-Himrani, Rana J. Kaabawi, Amar F. Abdul-Salam, Ameer R. Mohammed, Mohammed F. Al-Himrani, Maria Elena Sanchez, Seifeddine A. Al-Kinani, Farooq S. Yaseen, Firas S. Hadi, Abdullah Al-Dulaimi, Khalil Abdul-Razaq, Jesus George Sanchez, and Sinan Akrawi.
The indictment further alleges that when Ali Abed Yaser, Hussein A. Yasir, Hasanein A. Yaser, Ahmad K. Bachay, Ali F. Al-Himrani and Mohammed Naji Al-Jibory (who is not charged in the staged accident scheme) learned of the FBI’s investigation, they committed various acts to obstruct official proceedings. Some of the alleged obstructive acts included Ali Abed Yaser, Hussein A. Yasir, Hasanein A. Yaser and Mohammed Naji Al-Jibory fabricating a story that the FBI case agent, and another individual suspected of working as an FBI informant, solicited a $22,000 bribe payment in exchange for offering the investigation or case to go away. Other alleged obstructive acts included Ali Abed Yaser, Ahmad K. Bachay and Ali F. Al-Himrani using threats of physical force to prevent communication of information about the possible commission of federal crimes to a law enforcement officer and a judge.
Two of the defendants, Ali Abed Yaser and Mohammad Naji Al-Jibory, are charged with making false statements to FBI investigators. Ali Abed Yaser, Ahmad K. Bachay, and Ali F. Al-Himrani are charged with witness tampering. The indictment also alleges Ali Abed Yaser attempted to tamper with evidence.
The following defendants are charged in the Indictment:
Defendant, Age, Location
ALI ABED YASER 51 Kennewick, WA
HUSSEIN A. YASIR 39 Kennewick, WA
INSAF A. KARAWI 52 Kennewick, WA
HASANEIN A. YASER 20 Kennewick, WA
AHMAD K. BACHAY 35 El Cajon, CA
MASHAEL A. BACHAY 31 El Cajon, CA
MOHAMMAD BAJAY 39 El Cajon, CA
HUSSAIN K. BACHAY 32 Vancouver, B.C. Canada
NOOR TAHSEEN AL-MAAREJ 32 El Cajon, CA
ALI F. AL-HIMRANI 40 Temecula, CA
RANA J. KAABAWI 38 Temecula, CA
AMAR F. ABDUL-SALAM 40 El Cajon, CA
AMEER R. MOHAMMED 45 Kennewick, WA
MOHAMMED F. AL-HIMRANI 33 Kennewick, WA
MARIA ELENA SANCHEZ 41 Kennewick, WA
SEIFEDDINE A. AL-KINANI 37 Las Vegas, NV
ABDULLAH AL-DULAIMI 30 Detroit, MI
FIRAS S. HADI 41 El Cajon, CA
FAROOQ S. YASEEN 32 Kennewick, WA
KHALIL ABDUL-RAZAQ 40 Kennewick, WA
JESUS GEORGE SANCHEZ 56 Eltopia, WA
SINAN AKRAWI 44 La Mesa, CA
MOHAMMED NAJI AL-JIBORY 54 Kennewick, WA
Four defendants have not been located at this time and are considered fugitives. If convicted, the defendants face the following possible maximum statutory sentences: 20 years in prison for conspiracy to commit mail and wire fraud and each count of mail and wire fraud; 20 years in prison for conspiracy to obstruct an official proceeding and each count of witness and evidence tampering; 10 years in prison for conspiracy to commit health care fraud; and five years in prison for making false statements to the FBI.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III and Dominique Juliet Park, Assistant United States Attorneys for the Eastern District of Washington.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tobyhanna Man Sentenced to Seven Years’ Imprisonment for Brandishing A Firearm During A Crime of ViolenceRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lakeem Hunter-Knight, age 21, of Tobyhanna, Pennsylvania, was sentenced to seven years of imprisonment by U.S. District Court Judge Malachy E. Mannion for brandishing a firearm in furtherance of a crime of violence.
According to United States Attorney John C. Gurganus, Hunter-Knight pointed a firearm at two victims during a robbery of the Pickerel Inn General Store, in Dingmans Ferry, Pennsylvania, on May 20, 2020. During the robbery, Hunter-Knight made the victims lie on the ground face down and threatened to shoot them if they moved. Hunter-Knight stole six firearms from the store, which is a federal licensed firearms dealer, before fleeing the scene. He was later apprehended after investigators found two of the stolen firearms in an abandoned vehicle which also contained a GPS device showing Hunter-Knight’s home address. The remaining firearms, along with other evidence, was found when investigators executed a search warrant at Hunter-Knight’s residence.
In addition to the seven-year imprisonment sentence, Judge Mannion ordered Hunter-Knight to serve three years of supervised release upon release from custody and to pay $4,000 in restitution to his victims.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, the Pocono Mountain Regional Police, the Monroe County District Attorney’s Office, and the Pike County District Attorney’s office. Assistant United States Attorney James Buchanan prosecuted the case.
This case was 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 works 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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Texas Man Sentenced for Investment Fraud SchemeRead the Press Release
PORTLAND, Maine: A Texas man was sentenced in federal court today for conspiring to commit wire fraud, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Russell Hearld, 46, of Sugar Land, Texas, to 29 months in prison and three years of supervised release. Final determination of the restitution owed to victims was extended until April. Hearld pleaded guilty on May 24, 2021.
According to court records, in 2017 and 2018, Hearld participated in a scheme to defraud involving investments in Standby Letters of Credit (SBLCs). Investors were promised that they could receive a portion of the value of an SBLC, worth millions of dollars, for a much smaller initial investment. Investors were promised returns equal to many times the amounts of their initial investments in a matter of weeks. They were also promised that their money would remain in the attorney trust account of a co-conspirator—who at the time was a licensed attorney in Florida—until confirmation was received that the SBLC had been issued.
Contrary to these representations, Hearld routinely directed the co-conspirator attorney to withdraw investor funds as soon as they were deposited into the attorney’s trust account. For example, in March 2017, an investor wired $500,000 from his bank account in Maine to the attorney’s trust account in Florida. On the previous day, Hearld had sent the attorney an email, directing the attorney to disburse the investor’s funds. At Hearld’s direction, the attorney wired $200,000 to Hearld’s bank account; $150,000 to the account of the attorney’s law firm; $100,000 to the account of another co-conspirator; and $40,000 to the attorney’s personal account.
While discussing the reasons for his sentence, Judge Woodcock noted that Hearld took the victims’ money for “completely selfish reasons.” He also noted that Hearld owed over $13,000 in past due child support, and said it was “just disgraceful” that Hearld had failed to meet his support obligations despite personally receiving over $2 million in the fraud scheme.
The FBI investigated the case.
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Taunton Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Taunton man pleaded guilty today in federal court in Boston to drug trafficking activities involving fentanyl.
Carlos Rivera, 47, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and three counts of distribution and possession with intent to distribute fentanyl. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for May 23, 2022. Rivera was indicted in February 2021 and has been in custody since his arrest in January 2021.
Between September 2020 and January 2021, Rivera and a co-conspirator engaged in four separate sales of fentanyl to a cooperating witness in Taunton. Rivera used his residence and his barbershop, Knockout Barbershop, to sell drugs and store drug proceeds. On the morning of Jan. 29, 2021, agents arrested Rivera outside his apartment. An on-site search found that Rivera was carrying approximately 40 grams of fentanyl at the time of his arrest.
The charge of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl provides for a sentenced of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charges of distribution of and possession with intent to distribute fentanyl provide for a sentence of up to 20 years in prison, at least three 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.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Valuable assistance was provided by the Taunton Police Department. Assistant U.S. Attorney Stephen W. Hassink of Rollins’ Narcotics and Money Laundering Unit is prosecuting the case.
Tampa Man Arrested and Charged with Preparation of False Tax ReturnsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and unsealing of an indictment charging Thomas Johnson with 14 counts of aiding in the preparation and filing of false tax returns. Johnson faces a maximum penalty of three years in federal prison for each count. He made his initial appearance in federal court in Miami on January 21, 2022.
The indictment alleges that between February 2015 and February 2017, Johnson had a business located in the Middle District of Florida through which he offered his services to clients to prepare their income tax returns. During that time period, Johnson prepared and helped in the filing of numerous tax returns which contained false and fraudulent entries as to taxpayer credits and deductions. As a consequence of those false statements, Johnson’s clients received tax refunds to which they were not entitled. Johnson charged his clients a large fee for his services and required them to split the refund proceeds with him once they received their refund money from the IRS. The total of the unwarranted refunds, which resulted from the false and fraudulent tax returns charged in the indictment, exceeds $155,000.
Belizean law enforcement officials arrested Johnson on January 19, 2022, at his San Pedro, Belize residence for immigration violations. The following day, he was escorted by U.S. federal agents to Miami. The Internal Revenue Service-Criminal Investigation Mexico City Attaché Post coordinated with the U.S. Department of State’s Diplomatic Security Service, the U.S. Marshals Service, the Belize Police Department, and Belize Immigration to return Johnson to the United States to face these federal charges.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Shelton Doctor Admits Illegally Prescribing Controlled SubstancesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DAVID CIANCIMINO, 62, of Trumbull, waived his right to be indicted and pleaded guilty today via videoconference before U.S. District Judge Omar A. Williams to a controlled substance offense related to his illegal distribution of prescription medication.
According to court documents and statements made in court, Ciancimino was a sole practitioner practicing psychiatry and neurology/psychiatry from an office located at 4 Corporate Drive in Shelton. In October 2020, law enforcement began investigating Ciancimino’s prescribing practices of various benzodiazepines, such as Xanax, and stimulants, such as Adderall. During the investigation, federal task force officers acting in an undercover capacity paid Ciancimino $200 during visits to receive a prescriptions for Xanax or Adderall, or their generic equivalents, with little to no medical examination.
Ciancimino pleaded guilty to one count of distribution of a controlled substance without a legitimate medical purpose and outside the scope of professional practice, an offense that carries a maximum term of imprisonment 20 years.
As part of his plea, Ciancimino has agreed to forfeit $175,773.45.
Ciancimino is released on a $500,000 bond pending sentencing, which is not scheduled.
As disclosed during today’s court proceedings, Ciancimino surrendered his medical license last week.
This investigation has been conducted by the DEA New Haven Tactical Diversion Squad and HHS-OIG’s Office of Investigations, with the assistance of the Connecticut Department of Consumer Protection – Drug Control Division and the Middlebury Police Department. The DEA’s Tactical Diversion Squad includes personnel from the DEA and the Bristol, East Windsor, Glastonbury, Hamden, Manchester, New Britain, Newington, Watertown and West Haven Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Serial domestic abuser and multi-convicted felon sentenced for gun crimesRead the Press Release
ROME, Ga. – A violent Rome-area drug dealer has been sentenced for possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon.
“Floyd’s repeated felony and misdemeanor state convictions show his complete disregard for the law,” said U.S. Attorney Kurt R. Erskine. “This conviction and sentence demonstrate the importance of the Rome Violent Repeat Offender initiative and should serve as a warning that this office will pursue those who put the community at risk by unlawfully using and possessing firearms.”
“Project Safe Neighborhoods has a proven track record of removing violent repeat offenders from the streets of our community,” said ATF Assistant Special Agent in Charge Beau Kolodka. “This conviction and sentence of nearly a decade in federal prison sends a strong message to Floyd and other violent repeat offenders that their continued possession and usage of firearms will not be tolerated.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: In January 2020, Floyd sold methamphetamine to an ATF confidential informant at a motel that was notorious for drug-trafficking in Rome, Georgia. Following the drug sale, Floyd sold the same informant a pistol he had brought to the deal. The serial number on the pistol had been removed.
Prior to the drug and gun sales that led to his federal criminal charges, Floyd had amassed nearly two dozen felony and misdemeanor convictions in the state system. Although some of those charges involved guns and drugs, many concerned shocking acts of violence against at least eight different women who Floyd admittedly choked, struck, or restrained against their will.
On January 20, 2022, Aubrey Floyd, 45, of Rome, Georgia, was sentenced by U.S. District Judge Michael L. Brown to nine years in prison to be followed by three years of supervised release. Floyd was convicted of possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon after he pleaded guilty on October 5, 2021.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the High Intensity Drug Trafficking Areas (HIDTA) Rome Post of Duty, Floyd County Police Department, and Rome Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
Assistant U.S. Attorneys Theodore S. Hertzberg and Bryan Henderson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Scranton Man Sentenced to 15 Years’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Quamaine Brown, a/k/a, “BX,” age 39, of Scranton, Pennsylvania, was sentenced on January 21, 2022, to 180 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion following his conviction for conspiracy to distribute and possession with intent to distribute heroin and fentanyl.
According to United States Attorney John C. Gurganus, Brown conspired to distribute more than one kilogram of heroin and more than 40 grams of fentanyl during the conspiracy.
Brown was also ordered to serve 10 years of supervised release upon release from custody. Brown was one of eleven defendants indicted in May 2020. With the exception of Tysheen Gott, a/k/a “LB,” all other co-conspirators pleaded guilty. Gott was convicted after trial in August 2021 and is awaiting sentencing.
This case was the result of a year-long investigation, in part driven by multiple federal wiretaps conducted by the Federal Bureau of Investigation, the Wilkes-Barre Police Department, the Scranton Police Department, the Pittston City Police Department, the Plymouth Police Department, the Pennsylvania State Police, the Luzerne County District Attorney’s Office, the Wyoming County District Attorney’s Office and the Office of Pennsylvania Attorney General. Assistant U.S. Attorneys Michelle Olshefski and Robert O’Hara prosecuted the case.
This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Salt Lake City Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SALT LAKE CITY – Joel Lehi Organista, 29, of Salt Lake City, pleaded guilty to two felony counts related to the production and transportation of child pornography in federal court last Monday.
In the plea agreement, Organista admitted to owning a Dropbox account which was used for downloading between 10 and 150 images of prepubescent minors. In addition, Organista admitted to using Snapchat to contact minor children and soliciting them to perform sexual acts for him via video chat, including an incident which occurred between Organista and a 13 year-old victim, where the victim performed sexual acts for Organista via video chat.
The case originated in January of 2021, after law enforcement received multiple tips that devices and accounts attributed to Organista were receiving and downloading images containing child pornography. A search warrant was executed at Organista’s residence in June of 2021, and Organista has been in custody since that time.
Prosecutors have agreed to recommend a sentence of 15 years in federal prison, which will be reviewed by a District Court Judge at the time of Organista’s sentencing, currently set for May of 2022. Organista also faces a maximum possible sentence of a lifetime of supervised release after his term of incarceration is served and he will be required to register as a sex offender.
Special Assistant U.S. Attorneys from the Utah Attorney General’s Office and Assistant United States Attorney’s Office from the United States Attorney’s Office prosecuted the case. Special Agents from the Internet Crimes Against Children Task Force conducted the investigation.
Reading Felon Sentenced to 19 Years in Prison for Running a Drug Trafficking Operation Out of His HomeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Luis Gomez, 33, of Reading, PA, was sentenced to 19 years in prison, five years of supervised release, and was ordered to pay a $2,000 fine by United States District Court Judge Edward G. Smith for possessing a large quantity of crystal methamphetamine and a loaded pistol at his home in 2019.
At the conclusion of a long-term investigation led by the Federal Bureau of Investigation and the Pennsylvania State Police into methamphetamine, heroin, and cocaine trafficking in the Reading area, in September 2019, Gomez was arrested during the execution of a federal search warrant at his Reading home. Inside Gomez’s bedroom, FBI agents recovered approximately one pound of crystal methamphetamine along with an extended firearm magazine containing 26 rounds of live 9mm ammunition and a bulletproof vest. Approximately two additional pounds of crystal methamphetamine were recovered in separate bedrooms of the house, along with various drug paraphernalia and a loaded 9mm pistol in the living room.
Following forensic analysis at the FBI laboratory, Gomez’s DNA profile was identified on the pistol. Because of a prior felony conviction for drug dealing, Gomez was prohibited from possessing firearms under federal law. Five other defendants were also arrested in connection with this investigation, and over 65 pounds of methamphetamine and three additional firearms were seized in the same month.
“This defendant personally threatened the safety of his neighbors in Reading, and all communities in our District, through his dangerous and illegal actions,” said U.S. Attorney Williams. “Gomez stashed drugs in his home and illegally possessed a weapon to further his drug-dealing business. Thanks to the steady, determined efforts of investigators at the FBI and Pennsylvania State Police, the defendant and his co-conspirators’ operation was permanently shut down.”
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Previously Deported Alien Sentenced to Time Served for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 24, 2022, Salvador Dionisio-Guillermo, age 43, was sentenced to time served of 68 days’ imprisonment and one year of supervised release, by United States District Court Judge Christopher C. Conner for illegal re-entry of a previously deported alien.
According to United States Attorney John C. Gurganus, Dionisio-Guillermo was previously deported from the United States to Mexico in November 2008. He is alleged to have illegally reentered the United States again sometime after that time. He was located in the United States on January 12, 2020, in Franklin County, Pennsylvania, when a Pennsylvania State Police trooper charged him with Driving Under the Influence and various traffic related violations.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and was prosecuted by Assistant United States Attorney Joanne M. Sanderson.
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Podiatrist Pleas Guilty in Sex for Drugs Diversion SchemeRead the Press Release
DETROIT - A local podiatrist entered a guilty plea today to a two count Information charging unlawfully distribution of controlled substances for his involvement in a sex-for-drugs diversion scheme, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge Kent Kleinschmidt , U.S. Drug Enforcement Administration, Detroit Field Division, Acting Special Agent in Charge James C. Harris, Homeland Security Investigations, Detroit Division, and Mario M. Pinto, Special Agent in Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.
Dr. Maninder Deswal, 44, of Lansing, was charged with unlawfully prescribing Oxycodone-Acetaminophen (Percocet) and Hydrocodone-Acetaminophen (Norco), highly addictive opioids, to various women outside the course of professional medical practice. From December 2018 to September 2020, Dr. Deswal would issue controlled substance prescriptions to women in exchange for cash payments, sexual favors, and/or other illicit drugs. These women were not patients and issuing them prescriptions was not for legitimate medical purposes, but rather personal consumption and further drug diversion.
A sentencing date has been set for May 24, 2022 at 3:30 pm before United States District Judge Judith Levy.
This case is being prosecuted by Assistant United States Attorney Brandy R. McMillion. McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit. The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis.
The case was investigated by special agents and diversion investigators with the Homeland Security Investigations, the Drug Enforcement Administration and Health and Human Services Office of Inspector General along with assistance from the Ypsilanti Police Department and Washtenaw County Sheriff’s Office.
Peoria Woman Arrested with Nine Pounds of Ice Methamphetamine in Morton, Ill. Sentenced to 14 Years in Federal PrisonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, woman, Donna N. Mark, 39, of the 2000 block of North California Street, was sentenced on January 20, 2022 to 168 months’ imprisonment (14 years), to be followed by five years of supervised release, for possession of methamphetamine with intent to distribute. The Court also ordered forfeiture of $21,578.95 seized at the time of the arrest.
At Mark’s sentencing hearing, U.S. District Court Judge James E. Shadid stated that Mark was “one of the most prolific” drug dealers, noting that she was arrested with over $21,000 and 9 pounds of ice methamphetamine destined for the communities of central Illinois. The judge weighed the substantial amount of methamphetamine found against Mark’s relatively short criminal history and positive upbringing. The judge noted that, while Mark did struggle with drug addiction during her 30s, the amount of drugs and cash she possessed showed that she was a drug dealer of “extraordinary” proportions.
At the hearing, the government explained that Mark’s offense conduct arose on March 2, 2021 when an officer with Morton Police Department was conducting warrant checks at the OYO Hotel in Morton, Illinois. Mark provided a fake name to police, who eventually contacted her again, along with two others to whom she had sold drugs. The investigation revealed Mark attempted to switch hotel rooms and hide bundles of ice methamphetamine in the toilet tank of the hotel room after giving the fake name to police. In total, law enforcement seized 8.2 pounds of ice methamphetamine from the toilet tank, an additional 818 grams of ice methamphetamine, $21,578.95 in U.S. Currency, drug paraphernalia, 71.3 grams of psilocybin mushrooms, and a small amount of heroin and THC wax. Analysis by the DEA laboratory indicated the methamphetamine seized from Mark was 99% pure methamphetamine.
“This case results from the great work and collaboration of the Morton Police Department and Drug Enforcement Administration to keep this highly-addictive drug off the streets of Tazewell and surrounding counties,” said Assistant U.S. Attorney Katherine G. Legge. “This highly potent, readily available drug brings out the absolute worst in people and wreaks havoc in our communities. Our focus to keep communities safe by disrupting drug dealers at the top of the food chain will continue.”
According to public records, Mark was on probation in Tazewell County for two methamphetamine-related felonies at the time of this offense and had an active warrant at the time.
Mark was indicted in March 2021 and pleaded guilty in August 2021. Mark has remained in the custody of the U.S. Marshals since her arrest on March 2, 2021.
The statutory penalties for possession with intent to distribute methamphetamine in this case were not less than ten years and up to a life term of imprisonment, a five-year to life term of supervised release, and up to $10 million dollar fine.
The Morton Police Department and Drug Enforcement Administration investigated the case, with assistance of the Tazewell County State’s Attorney’s Office. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Penn Hills Woman Pleads Guilty to Participating in Gang’s Drug Distribution SchemeRead the Press Release
PITTSBURGH, PA - A resident of suburban Pittsburgh pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Shania Wilson, age 40 of Penn Hills, Pennsylvania, pleaded guilty to one count of participating in a conspiracy to distribute and possess with the intent to distribute a quantity of fentanyl before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Wilson is a part of an indictment that charged approximately 20 other individuals who operated a drug trafficking organization using the moniker Hustlas Don’t Sleep. Intercepted communications revealed that Wilson was a regular customer of the Hustlas Don’t Sleep drug trafficking organization who distributed portions of the fentanyl she received from the organization, provided provide feedback on the quality of the products being sold by the organization, and referred drug user customers to the organization.
Judge Horan scheduled sentencing for June 28, 2022, at 9:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Palm Bay Man Sentenced to Six Years for Distributing FentanylRead the Press Release
Orlando, FL – U.S. District Judge Roy B. Dalton today sentenced Davel Theodore Spady (35, Palm Bay) to six years in federal prison for distributing fentanyl and possessing with the intent to distribute 40 grams or more of fentanyl. A federal jury had found Spady guilty on October 21, 2021.
According to evidence presented during the three-day trial, Spady sold fentanyl on three separate occasions—February 18, 2021; February 27, 2021; and March 19, 2021—to a confidential source who was working with law enforcement. Spady sold the fentanyl from inside his vehicle while parked at a thrift store.
On April 14, 2021, the Florida Highway Patrol conducted a traffic stop on Spady’s vehicle as he was travelling to deliver two ounces of fentanyl. During a search of the vehicle, law enforcement located the fentanyl, which had been concealed in the trunk.
Spady received an enhanced penalty at sentencing for obstruction of justice because the Court determined that he had testified falsely during his trial.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Melbourne Police Department, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Beatriz Gonzalez and Ranganath Manthripragada.
Owner of Health Care and Rehabilitation Facilities Indicted in $38 Million Payroll Tax SchemeRead the Press Release
A federal district court in Newark, New Jersey, unsealed an indictment today charging the owner of a network of health care and rehabilitation facilities with willfully failing to withhold and pay over employment taxes on behalf of his employees, tax evasion, and failing to file benefit plan reports.
According to the indictment, Joseph Schwartz, an insurance broker, failed to collect, truthfully account for, and pay over millions of dollars in payroll taxes owed to the IRS on behalf of his employees as required by law. Schwartz owned and operated the New Jersey-based Skyline Management Group LLC and several related companies (Skyline), which in turn owned and managed 95 health care and rehabilitation facilities operating in at least 11 states. Schwartz allegedly controlled the finances of Skyline and the related companies.
In approximately late 2016, Schwartz and an associate allegedly created several businesses to provide staffing and management services for approximately 15,000 employees of the Skyline-owned health care and rehabilitation facilities. Although the staffing companies were nominally owned by other individuals, Schwartz allegedly controlled their finances and operation. From mid-2017 through June 2018, Schwartz allegedly caused the staffing companies to not pay approximately $38,982,016 in payroll taxes and unemployment taxes due the IRS. To evade unemployment taxes owed by the staffing companies, Schwartz allegedly used nominees to hide his control of the companies. He allegedly also provided, and directed others to provide, insufficient funds to pay the taxes owed.
In addition, as the trustee of Skyline’s 401K retirement plan, Schwartz allegedly did not file required reports with the Department of Labor relating to the financial condition, investments and operation of the retirement plan.
Schwartz made his initial court appearance on Thursday, Jan. 20, before U.S. Magistrate Judge André M. Espinosa of the U.S. District Court for the District of New Jersey. If convicted, Schwartz faces a maximum penalty of five years in prison for each count of willful failure to collect, account for, and pay over employment taxes, five years in prison for each count of tax evasion, and ten years in prison for each count of failure to file a benefit plan report. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Philip R. Sullinger for the District of New Jersey; Special Agent In Charge Michael Montanez of IRS-Criminal Investigation, Newark Field Office; and the Department of Labor Criminal Investigations Program made the announcement.
IRS-Criminal Investigation and the Department of Labor Criminal Investigations Program are investigating the case.
Trial Attorney Shawn Noud of the Justice Department’s Tax Division and Senior Litigation Counsel Vincent Grady O’Malley of the U.S. Attorney’s Office are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Norwich Man Sentenced to 23 Years in Federal Prison for Recording his Repeated Sexual Abuse of ChildRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that TRAVIS M. WILLIAMS, 34, of Norwich, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 23 years of imprisonment, followed by five years of supervised release, for photographing and video recording his repeated sexual abuse of a child.
According to court documents and statements made in court, on more than 100 occasions, Williams engaged in sexual acts with a child who was approximately 9 years old. In July 2019, Williams used his iPhone to photograph himself sexually abusing the child, and he subsequently sent the photographs to a woman via text message. On July 27, 2019, Williams filmed 10 videos depicting him sexually abusing the child.
Investigators recovered numerous text messages between Williams and the woman. In certain text messages, Williams told the woman that he wanted to engage in sexual acts with her while the child watched, and that he wanted the child to take part in these sexual acts.
Williams has been detained since his arrest on related state charges on August 30, 2019. On October 28, 2021, he pleaded guilty in federal court to one count of production of child pornography and one count of distribution of child pornography.
The state charges against Williams are pending.
This matter was investigated by the Federal Bureau of Investigation, the Norwich Police Department and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorneys Amanda S. Oakes and Neeraj N. Patel.
U.S. Attorney Boyle thanked the New London State’s Attorney’s Office for its cooperation and assistance in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
North Carolina Man Indicted for Tax EvasionRead the Press Release
A federal indictment was unsealed today charging a North Carolina man with tax evasion and failing to file tax returns.
According to the indictment, Darren Lee Joy, 63, of Charlotte, earned more than $750,000 in wages between 2015 and 2020, but he did not file any federal income tax returns for those years. Joy, who was employed as an information technology specialist by companies in the Charlotte area, allegedly submitted to his employers IRS Forms W-4 falsely stating he was exempt from federal income tax withholding. By claiming exempt status, Joy allegedly caused his employers to withhold little or no federal income taxes from his wages.
Joy is charged with six counts of tax evasion and six counts of willfully failing to file a tax return. If convicted, Joy faces a maximum penalty of five years in prison for each count of tax evasion and one year in prison for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King of the Western District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Brian Flanagan of the Justice Department’s Tax Division and Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office of the Western District of North Carolina are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nigerian Man Sentenced for Wire FraudRead the Press Release
United States Attorney Jan Sharp announced that Jude Uzochukwu Ifeanyi, 37, of Nigeria, was sentenced today in federal court in Omaha, Nebraska, for wire fraud. Senior United States District Judge Joseph F. Bataillon sentenced Ifeanyi to 41 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a one-year term of supervised release. Senior Judge Bataillon ordered Ifeanyi to pay restitution in the amount of $262,895 to several identified victims. Ifeanyi will be deported to Nigeria after serving his sentence.
An investigation by the Federal Bureau of Investigation determined that from May 23, 2018 through May 25, 2018, Ifeanyi and his co-conspirators developed a scheme in an effort to defraud an Omaha couple out of $700,000. Ifeanyi and his co-conspirators, who were located in Nigeria, compromised an email account used by the Omaha couple. While conducting unauthorized surveillance within the Omaha couple’s email account, Ifeanyi and his co-conspirators identified a financial transaction that was to take place relating to the purchase of property in the State of Florida. Ifeanyi and his co-conspirators sent fraudulent emails to the Omaha couple, which appeared to come from the sellers of the property. The emails directed the Omaha couple to use “alternate wiring instructions” when making payment for property, ultimately directing that payment for the property be made to an unauthorized third-party bank account. As a result of the scheme, the Omaha couple was fraudulently induced into making a $700,000 wire transfer to the unauthorized third-party bank account. When the fraudulent scheme was discovered, the victims were able to recover a portion of the wire transfer but did suffer a loss of $131,485.
During the course of the FBI’s investigation, the FBI determined that Ifeanyi and his co-conspirators were also involved in other similar schemes to defraud victims located throughout the United States. The FBI identified 9 other victims with losses totaling $1,581,655.
On August 21, 2019, an Indictment charging Ifeanyi was filed in the United States District Court in the District of Nebraska. On December 30, 2020, Ifeanyi was extradited from Spain, where Ifeanyi was living at the time, to the United States under the supervision of the FBI. The FBI continues to investigate Ifeanyi’s co-conspirators who were involved with the criminal activity.
FBI Omaha Special Agent in Charge Eugene Kowel said, “The sentencing today of Jude Uzochukwu Ifeanyi sends a strong message to criminals who carry out business email compromise schemes. The FBI takes this financially damaging threat seriously. We will continue to find and arrest criminals who target members of our community, regardless of where they commit their crimes from.”
This case was investigated by the Federal Bureau of Investigation.
New York City Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Shakespeare Cruz, age 48, of New York City, pleaded guilty today to federal drug trafficking charges, announced United States Attorney Carla B. Freedman, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and New York State Police Superintendent Kevin P. Bruen. As part of his plea, the defendant admitted that he distributed multiple kilograms of heroin and cocaine from 2014 through January 2019. The defendant further admitted that he and his co-conspirators arranged for the drugs to be transported from New York City to Lewis County, New York, where they were re-distributed to others there. During today’s guilty plea, the defendant agreed to forfeiture in the form of a money judgment of $200,000, reflecting the proceeds of his drug trafficking activity.
Sentencing is scheduled for June 1, 2022 in Syracuse. At sentencing, the defendant faces a mandatory minimum term of incarceration of ten years, with a possible maximum of lifetime imprisonment. He faces a fine of up to $10,000,000 and a term of supervised release to follow any term of incarceration of at least five years and up to life. 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 is being investigated by the United States Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations, Immigration & Customs Enforcement (ICE), the New York State Police, the United States Marshals Service, the Lewis County Sheriff’s Office and the Lewis County District Attorney’s Office and is being prosecuted by Assistant U.S. Attorneys Nicolas Commandeur, Adrian LaRochelle, and Andrew Beaty.
Mt. Sterling Man Sentenced to 234 Months for Armed RobberyRead the Press Release
PIKEVILLE, Ky.— A Mt. Sterling, Ky., man, Larry A. Crump, 37, was sentenced to 234 months in prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after previously pleading guilty to Hobbs Act Robbery, bank robbery, possession of a firearm in furtherance of a violent crime and being a convicted felon in possession of a firearm.
According to his guilty plea agreement, Crump admitted to robbing the Cash N Check in Mt. Sterling, on November 16, 2020, and the Peoples Bank of Mt. Sterling, on November 20, 2020, at gunpoint. Crump also admitted to using a stolen firearm in the commission of the bank robbery and being a felon in possession of a firearm. The amount of money taken from Cash N Check was approximately $900 and the amount of money stolen from the Peoples’ Bank was approximately $37,000. Law Enforcement agents recovered approximately $20,000 from the residence of one of Crump’s relatives. Crump was on parole at the time of the commission of the offenses.
Crump pleaded guilty in October 2021.
Under federal law, Crump must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Norman Arflack, U.S. Marshal for the Eastern District of Kentucky; Chief Terry Landrum, Chief of Police, Mt. Sterling Police Department; and Jessica Stewart, Bath County Sheriff, announced the sentence.
The investigation was conducted by the FBI, ATF, U.S. Marshals, Mt. Sterling Police Department, and the Bath County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger West.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the United States Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Midland Businesswoman Pleaded Guilty to Tax ChargeRead the Press Release
MIDLAND – A Midland woman pleaded guilty last week to not paying federal payroll taxes.
According to court records, Lydia Evaro Madrigal, 64, was the president and chief executive officer for EXN, Inc. Starting in 2013 through 2015, EXN withheld payroll taxes from its employees’ paychecks but did not make the required payroll tax payments to the Internal Revenue Service (IRS). In all, Madrigal failed to account for and pay $637,594.35 in payroll taxes withheld from EXN’s employees. Madrigal also failed to pay the employer portion of the $249,536.35 in FICA taxes for 2013 through 2015. Instead Madrigal used the money for her own personal benefit.
As of today, Madrigal has voluntary paid losses to the IRS in full.
Madrigal pleaded guilty to one count of willful failure to collect and pay over tax. She is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and IRS Special Agent in Charge Ramsey E. Covington made the announcement.
The IRS is investigating the case.
Assistant U.S. Attorney Glenn Harwood is prosecuting the case.
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Man Convicted of Abusive Sexual Contact of a Minor at QuanticoRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Afghan national Friday on charges of abusive sexual contact with a 3-year-old girl.
“This case is indicative of law enforcement’s commitment to ensure the safety of immigrant and refugee members of our community,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “People who come to our country seeking haven from tyranny and terrorism deserve to live here in safety. I want to thank the Marines and the FBI for their commitment to upholding that ideal. It is the resilience and courage of the victim and her family in speaking out against this offender that is truly emblematic of the contributions refugees and immigrants make to our country.”
According to court records and evidence presented at trial, Mohammed Tariq, 24, engaged in sexual contact with the victim while both the victim and Tariq were housed at Camp Upshur, on Marine Corps Base Quantico, following evacuation from Afghanistan. United States Marines observed the defendant inappropriately touching the victim over her clothing, on her chest, genitals, and buttocks. The victim and Tariq were unrelated, however, both Tariq and the victim and her family had recently been evacuated from Afghanistan and brought to the United States.
Tariq faces a maximum term of life in prison when sentenced on April 26, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict.
Assistant U.S. Attorney Patricia Haynes and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
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 the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-225.
Mahoning County Physician Pleads Guilty to Illegally Prescribing Controlled Substances and Causing the Deaths of Two PatientsRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Martin Escobar, 58, of Youngstown, Ohio, pleaded guilty in federal court today to illegally distributing controlled substances, causing the deaths of two patients, unlawfully distributing a controlled substance to a person under the age of 21 and health care fraud.
According to court documents and the plea hearing, between March 2015 and October 2019, Escobar admitted to prescribing controlled substances out of his Lake Milton medical office, including opioids such as oxycodone and hydrocodone, often in combination with benzodiazepines and stimulants, all outside the usual course of professional practice and without a legitimate medical purpose.
Escobar admitted that, in order to support his unlawful prescription practices, he used false diagnoses, falsified patient pain intensity scales in medical charts, increased dosages of controlled substances and prescribed them for prolonged periods without evidence of efficacy. Furthermore, Escobar admitted to inadequately investigating patient pain complaints, failing to pursue treatment options other than controlled substances and falsely claiming to have performed extensive physical examinations on his patients.
Escobar also admitted to ignoring warning signs of his patients’ drug addiction and abuse. This included ignoring the results of his patients’ urine drug screen tests, many of which were performed in Escobar’s medical office and later billed to the government. These tests suggested that patients were abusing the drugs that Escobar had prescribed, using other controlled substances and selling their prescription drugs on the illegal secondary market. As a result, Escobar pleaded guilty to health care fraud.
Escobar also admitted that, in July of 2015 and 2016, he unlawfully prescribed opioids and other controlled substances to two patients without a legitimate medical purpose. Both patients later fatally overdosed from the drugs. In another instance, in April of 2018, Escobar admitted that he unlawfully prescribed opioids to an individual under the age of 21 without a medical need.
Escobar is scheduled to be sentenced on May 17, 2022.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Ohio Attorney General’s Healthcare Fraud Section and the Ohio Board of Pharmacy. This case is being prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea, Elliot D. Morrison and Michael L. Collyer, and Special Assistant U.S. Attorney Jonathan L. Metzler of the Ohio Attorney General’s Office.
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Local Man Sentenced for Role in California to Pittsburgh Drug OperationRead the Press Release
PITTSBURGH, PA -- A former Pittsburgh resident has been sentenced in federal court to time served and two years of supervised release, with the first eighteen months on home detention on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Garfield Campbell Jr., age 25, formerly of Pittsburgh’s Mount Washington neighborhood.
According to information presented to the court, Campbell Jr. is associated with an investigation that charged more than 20 individuals including his father, Garfield Campbell Sr. Based on intercepted communications, investigators determined that Campbell Sr., was using the United States Postal Service to send drugs from California to the Pittsburgh area for re-distribution. Campbell Jr. assisted the conspiracy by collecting money from the sale of drugs, sending money to pay for the drugs, and storing the drugs prior to their distribution.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Leader and Organizer of South Florida Drug-Trafficking Organization Pleads Guilty to Conspiracy Charges in the Southern District of FloridaRead the Press Release
Miami, Florida – Broward County resident Palacio Valdes Farley pled guilty in federal court in Miami to conspiring to traffic marijuana, eutylone, and MDMA, as well as conspiring to launder proceeds of the illegal drug activity.
As part of his plea, Farley admitted that from about 2016 to 2019, he organized and led a six-member South Florida drug-trafficking organization (“DTO”). The DTO obtained marijuana from co-conspirators in California, and MDMA from a South Florida co-conspirator, then distributed the drugs in Florida. Farley also admitted that on August 3, 2019, while he was serving a prison sentence at Jackson Correctional Institute in Jackson County, Florida, another member of the DTO was arrested while attempting to smuggle marijuana, eutylone, and MDMA into the prison. The plan was for Farley to distribute the drugs to inmates. As to money laundering, Farley admitted that he conspired with members of the DTO and others to conduct financial transactions intended to disguise the origins of the drug trafficking proceeds.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The FBI investigated this case, with assistance from Florida Department of Corrections, Office of Inspector General; Broward Sheriff's Office; Fort Lauderdale Police Department; Lauderhill Police Department; and United States Secret Service. Assistant United States Attorneys Dwayne E. Williams and Dayron Silverio are prosecuting the case. Assistant United States Attorney Annika Miranda is handling asset forfeiture.
United States District Judge Kathleen M. Williams set Farley’s sentencing hearing for March 31, 2022. Farley faces up to 40 years’ imprisonment.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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 the case number 19-cr-20667-Williams.
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Justice Department Settles with Insurance Agency to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with James A. Scott & Son Inc., an insurance agency doing business as Scott Insurance headquartered in Lynchburg, Virginia. The settlement resolves the department’s claims that Scott Insurance discriminated on the basis of citizenship status against a non-U.S. citizen by requesting that he present a specific document to prove his permission to work and rejecting the valid document the worker showed. The department also found that Scott Insurance routinely discriminated against non-U.S. citizens by failing to consider and hire them due to their citizenship status.
“Employers cannot refuse to hire applicants based on their citizenship status except when they are authorized by law to do so,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employers are also prohibited from discriminating against workers when verifying their permission to work. The Civil Rights Division is committed to protecting workers from unlawful citizenship discrimination.”
The department’s investigation determined that Scott Insurance discriminated against a lawful permanent resident by asking him for his Permanent Resident Card to prove his permission to work and then rejecting the valid documentation he provided. The department further determined that from no later than June 1, 2017, and continuing until at least Aug. 1, 2020, Scott Insurance discriminated against non-U.S. citizens by failing to consider and hire them for positions based on their citizenship status.
The anti-discrimination provision of the Immigration and Nationality Act (INA) protects U.S. citizens, non-U.S. citizen nationals, refugees, asylees and recent lawful permanent residents from hiring discrimination based on their citizenship status. The law has an exception that allows employers or recruiters to limit jobs based on citizenship status if they are authorized to do so by a law, regulation, executive order or government contract. Employers are also prohibited from limiting or specifying the types of documentation a worker is allowed to show to prove permission to work, because of a worker’s citizenship, immigration status or national origin. Employers must allow workers to present whatever valid documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
Under the settlement, Scott Insurance will pay $9,500 in civil penalties to the United States, and up to $70,000 in back pay to affected workers. The settlement also requires Scott Insurance to train employees on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Jury Finds Man Guilty of Assaulting a Dating PartnerRead the Press Release
A federal jury convicted a man Friday who assaulted his dating partner in November 2020, announced U.S. Attorney Clint Johnson.
Alexander Michael Koloff, 29, of Tulsa, was found guilty of assault by striking, beating, and wounding.
During the domestic violence incident, Koloff, who had been drinking, took the victim’s phone so he could search through it. The woman asked him to return it when he was done, but he refused and eventually fled into a bathroom. As he tried to close the bathroom door, Koloff slammed the victim’s foot in the door injuring her. Next, Koloff slapped the victim, put his arms around her body and neck, and took her to the ground. Koloff then put his foot on her chest so the victim couldn’t move, took victim’s phone and fled the apartment,. The victim sought help from a neighbor and called 911. Koloff returned a short time later and locked himself in the apartment.
Officers responded to the incident and noted bruising and red marks on the victim that appeared consistent with the abuse described by the victim. An officer also conducted an on-scene lethality assessment with the victim, who identified to officers that she was in fear, was threatened, and had previously experienced violence from Koloff.
When performed, the on-scene lethality assessment can help police officers identify victims at high risk of homicide by their partners, ensure victims have a safe place to stay following a domestic violence incident, and place them in immediate contact with a domestic violence advocate.
The victim was later examined by a medical professional and found to have suffered multiple injuries including bruises and abrasions on her arms, back, chest, head and leg.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Niko Boulieris and Kristin Harrington are prosecuting the case.
Judge sentences St. Louis man to 15 years in prison for several child exploitation crimesRead the Press Release
ST. LOUIS – United States District Judge Rodney W. Sippel sentenced Nicholas M. Ray to a term of 15 years in federal prison today. Ray previously pleaded guilty to attempting to persuade or coerce a minor to engage in sexual activity and distribution of child pornography in a court appearance held October 2021. In 2014, Ray was convicted in St. Charles County Circuit Court for possession of child pornography and served a three-year prison sentence.
According to the plea agreement, in March 2020, Ray contacted a profile on a social media platform that in reality was an undercover police detective. Over the course of several messages that occurred on the social media application, Ray informed the undercover detective he had a sexual interest in minors as young as eight years old. Ray also stated he was interested in child pornography and that he had previously received such material from others in online chat messages.
Between March 2020 and April 2020, Ray communicated several times with the undercover detective indicating his desire to meet up to engage in sex involving minors. On April 28, 2020, Ray using a separate online application sent the undercover detective a link containing several thousand videos of child pornography.
The undercover detective arranged a meeting with Ray at a local hotel under the guise of having a sexual relationship with a fictitious minor child. Ray was arrested on June 10, 2020, after arriving at the hotel.
This case was investigated by the St. Louis County Police Department and the St. Louis FBI Child Exploitation Task Force.
Jefferson County woman admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Crystal Farmer, of Harpers Ferry, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Farmer, 43, pleaded guilty today to one count of “Unlawful Use of Communication Device.” Farmer admitted to using a phone to distribute drugs in June 2021 in Jefferson County and elsewhere.
Farmer faces up to four years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Robert W. Trumble presided.
Indictment Names Six in Scheme to Provide High-Powered Firearms and Huge Quantities of Ammunition to Mexican Drug CartelRead the Press Release
LOS ANGELES – A federal grand jury indictment alleging a scheme to smuggle weapons and ammunition to one of the world’s most violent and dangerous transnational criminal organizations has led to the arrest of four defendants, the Justice Department announced today.
The arrests on January 19 are the result of Operation Semper Infidelis, a Los Angeles Strike Force investigation that targeted a domestic weapons trafficking organization that provided firearms and ammunition to the Cártel Jalisco Nueva Generación (CJNG), one of the largest and most violent drug cartels in Mexico. In conjunction with the arrests, authorities unsealed a 23-count indictment that charges six defendants with conspiring to violate federal export laws by illegally bringing the weapons and ammunition to CJNG operatives in Mexico.
The indictment alleges that a Whittier man led the gun trafficking organization that used narcotics proceeds to purchase assault rifles, hundreds of thousands of rounds of assault rifle ammunition, and numerous machine gun parts and accessories – some of which were smuggled into Mexico, mostly since the beginning of the COVID-19 pandemic.
“This case alleges a scheme to provide military-grade firepower to a major drug trafficking organization that commits unspeakable acts of violence in Mexico to further its goal of flooding the United States with dangerous and deadly narcotics,” said United States Attorney Tracy L. Wilkison. “We will continue our efforts to dismantle drug cartels by targeting their leadership and well as their soldiers, intercepting their narcotics and ill-gotten financial gains, and prosecuting those who provide the resources that allow the cartels to engage in acts of violence.”
“The defendants in this case smuggled sophisticated weaponry out of the United States to one of the most violent cartels in Mexico whose members target not only rival gangs, but innocent Mexican citizens and Mexican law enforcement,” said Kristi K Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Interdictions by our task force, coupled with this indictment, have dealt a blow to firearms trafficking groups on which this cartel relies to facilitate their violent operations.”
The indictment charges all six defendants in a conspiracy to violate export administration regulations that “restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to the foreign policy or national security of the United States.” The indictment further charges five of the defendants with various attempted smuggling counts. The leader of the organization and his son are charged in a money laundering conspiracy, and two of the defendants are charged with being felons in possession of ammunition.
The six defendants named in the indictment are:
- Marco Antonio Santillan Valencia, 51, of Whittier, the alleged leader of the organization that obtained and supplied weapons, firearms parts and ammunition to the CJNG;
- Anthony Marmolejo Aguilar, 30, of Whittier, who is currently in state custody on separate charges in North Carolina;
- Marco Santillan Jr., 29, of Pahrump, Nevada, who is the son of the alleged leader of the ring and who was arrested in Oregon;
- Michael Diaz, 33, of Moreno Valley;
- Luis De Arcos, 51, of Midway City; and
- Rafael Magallon Castillo, 34, of Oceano, who is a fugitive believed to be in Mexico.
At their arraignments on January 19 in United States District Court in Los Angeles, Santillan, De Arcos and Diaz entered not guilty pleas and were ordered to stand trial in March. Santillan Jr. was ordered to appear for an arraignment in Los Angeles on February 2.
The indictment alleges that members of the Santillan gun trafficking organization obtained firearms in Oregon and Nevada, consolidated shipments in or near Pahrump and Whittier, and smuggled the prohibited items to Mexico. The organization further obtained ammunition from various states – sometimes anonymously ordering pallets of bullets – to be delivered to a stash location in Nevada.
The conspiracy, which the indictment states began no later than March 2020 and operated for about one year, also obtained thousands of rounds of .50-caliber armor piercing incendiary rounds in Arizona, consolidating them in Nevada before attempting to smuggle them into Mexico.
That indictment states that on May 26, 2020, in a Facebook message, “Santillan Jr. informed another individual that members of ‘Mencho’s cartel’ – referring to the CJNG – ‘are buying everything’ – referring to firearms and firearms parts.” Later that day, according to the indictment, Santillan Jr. sent a video of himself via Facebook holding a fanned stack of $100 bills and saying the “sale of firearms to the CJNG was profitable.”
During the Semper Infidelis investigation, authorities seized six assault rifles, over 250,000 rounds of assault rifle ammunition, over $300,000 worth of weapons parts and kits to assemble several “mini-guns” – six-barrel rotary machine guns capable of firing up to 6,000 rounds per minute.
Marmolejo, Santillan Jr. and Diaz allegedly made large purchases of .50-caliber armor piercing incendiary ammunition and .223-caliber ammunition that was to be transported to Mexico. Days later, on July 31, 2020, in operations in Pahrump and San Bernardino County, law enforcement seized firearms parts and ammunition, including well over 100,000 rounds of .223-caliber and approximately 10,000 rounds of .50-caliber armor piercing incendiary ammunition.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of conspiracy to violate export administration regulations carries a statutory maximum sentence of 20 years in federal prison, while the attempted smuggling counts each carry a maximum penalty of 10 years in prison.
Since the January 19 takedown, authorities continued efforts to arrest Magallon, but they are now seeking the public’s assistance in bringing him to justice. Anyone with information about Magallon’s whereabouts is asked to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The Los Angeles Strike Force is led by the FBI, the Drug Enforcement Administration and the United States Attorney’s Office. Homeland Security Investigations, IRS Criminal Investigation, the Los Angeles Police Department and the United States Marshals Service are members of the Strike Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Gate Police Department provided substantial assistance during this investigation.
Assistant United States Attorneys Benedetto L. Balding and Christopher C. Kendall of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Operation Semper Infidelis is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Jabar Markeith Sellers, 39, of Huntington, pleaded guilty today to a federal gun crime.
According to court documents and statements made during the plea hearing, law enforcement officers were conducting surveillance on a residence on Norway Avenue as part of a shooting investigation on July 7, 2021. Officers observed a vehicle believed to have been involved in a shooting and subsequently performed a traffic stop on the vehicle. The driver was identified as Jabar Markeith Sellers, and a firearm was found in plain view in the driver’s door panel. Sellers is prohibited from possessing firearms as a result of a previous felony conviction in Ohio.
Sellers pleaded guilty to being a felon in possession of a firearm and he faces up to 10 years in prison when sentenced on May 2, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00120.
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Harrison County man sentenced for meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy Moser, of Shinnston, West Virginia, was sentenced today to 97 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Moser, 41, of Shinnston, West Virginia, pleaded guilty in July 2021 to one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine.” Moser admitted to working with others to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Original indictment release here: https://www.justice.gov/usao-ndwv/pr/ohio-and-west-virginia-residents-indicted-drug-and-firearms-charges
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Porter Critchfield, of Bridgeport, West Virginia, was sentenced today to seven months and 15 days of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Critchfield, 35, pleaded guilty in May 2021 to one count of “Unlawful Possession of Firearm.” Critchfield, a person prohibited from having a firearm, admitted to having a 9mm pistol in February 2016 in Harrison County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Grand Rapids Man Pleads Guilty to Shooting at A Federal OfficerRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew B. Birge announced today that Jaquari Trotter of Grand Rapids, Michigan pled guilty to shooting at a member of the United States Marshals Service Fugitive Task Force. Gregory Rogers, who drove the getaway car following the shooting, previously pled guilty to aiding and abetting the assault.
On February 4, 2020, Trotter and Rogers were hanging out with friends outside a residence on Sherman Street SE in Grand Rapids when they saw a member of the task force drive by in an unmarked vehicle. When the agent drove by a second time, Trotter and Rogers pulled out in front of the agent’s unmarked SUV and sped around a neighboring corner. Trotter then had Rogers pull over sharply to the right side of the road, jumped out of the passenger door, pulled a loaded 9mm handgun from his waistband and fired 11 shots at the agent’s vehicle before jumping back into the car and speeding away with Rogers. Trotter is a previously convicted felon and it was illegal for him to possess a firearm in the first place.
The two men face up to 20 years in prison and a fine of up to $250,000. They will also be ordered to pay restitution for the damage their crimes caused. Both men are scheduled to be sentenced by United States District Judge Hala Y. Jarbou on May 10, 2022 in Lansing.
“This shooting was a senseless act of violence that could have cost a law enforcement officer his life,” commented U.S. Attorney Andrew Byerly Birge. “Trotter and Rogers acted intentionally and without regard for the damage their actions could cause. With these pleas, they have taken the first step in accepting responsibility for their crime.”
Kent County Prosecutor Chris Becker, whose office assisted on the case, commented that “We are tremendously pleased with the resolution in both these cases; we especially appreciate the way in which our office, and the Office of US Attorney, were able to work closely together to bring these individuals to justice in such a serious case.”
“Law enforcement officers risk their personal safety every day to protect the public, enforce the law, and keep our communities safe from violence,” said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI in Michigan. “Criminals who choose to target officers can expect that every resource of the FBI will be used to ensure they are brought to justice.”
“We take any attempt to harm our Task Force Officers or Deputies while engaged in the performance of their official duties extremely seriously,” declared Joseph Guzman, Acting Chief Deputy of the U.S. Marshals Service. “We are thankful to see those responsible for this shooting held accountable and thank the U.S. Attorney’s Office, Kent County Prosecutor’s Office, the FBI, and GRPD for their efforts in prosecuting everyone who was involved in this reckless act of violence.”
This case was investigated by the Federal Bureau of Investigation and the Grand Rapids Police Department, with additional assistance provided by the United States Marshals Service and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Stephanie M. Carowan and Special Assistant United States Attorney Blair Lachman, who also serves as a Deputy Prosecutor in the Kent County Prosecutor’s Office.
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Gloversville Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
ALBANY, NEW YORK – Kent Tucker, age 24, of Gloversville, New York, pled guilty today to possession with intent to distribute methamphetamine and cocaine base, and possession of a firearm in furtherance of drug trafficking.
The announcement was made by United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Anthony Clay, Chief of the Gloversville Police Department.
As part of his guilty plea, Tucker admitted that on August 21, 2020, he possessed methamphetamine pills and cocaine case with the intent to distribute them, and also possessed a loaded, stolen firearm to protect his drugs and drug proceeds.
Sentencing is scheduled for May 24, 2022, before United States District Judge Mae A. D’Agostino, in Albany. The parties have jointly recommended an 84-month term of imprisonment, which Judge D’Agostino may accept or reject. If she rejects the recommended term of imprisonment, Tucker would be able to withdraw his guilty plea and proceed to trial.
This case was investigated by the ATF and Gloversville Police Department, with assistance from the New York State Police and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Alexander Wentworth-Ping.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gettysburg Man Sentenced to 10 Years’ Imprisonment for Receiving Child PornographyRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 21, 2022, Daniel Lee Boose, age 39, of Gettysburg, Pennsylvania, was sentenced to 10 years’ imprisonment by United States District Court Judge Jennifer P. Wilson for receiving child pornography. Boose was also ordered to register as a sex offender and serve 10 years of supervised release following his release from prison.
According to United States Attorney John C. Gurganus, Boose previously pleaded guilty in this case to receiving images of child pornography within Middle District of Pennsylvania. Gurganus noted that at the time of his arrest, Boose was found to be in possession of more than 1,000 images of child pornography, including images of prepubescent children, much of which consisted of sexually explicit material involving children between the ages of 7 and 13.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former Veterinarian Pleads Guilty to Drug ChargesRead the Press Release
LYNCHBURG, Va. – A Madison Heights, Virginia man and former veterinarian pleaded guilty to a pair of misdemeanor drug charges related to his diversion of hydromorphone, an opioid drug also known under the trade name of “Dilaudid.”
Patrick Gries, 54, pleaded guilty last week to one count of adulteration of a drug held for sale after shipment in interstate commerce and one count of distribution of a controlled substance without a written prescription.
“The U.S. Attorney’s Office is committed to working with our partners at the FDA, and elsewhere, to ensure consumer products are stored and prescribed using the most safe and secure protocols possible,” United States Attorney Christopher R. Kavanaugh said today. “When individuals with access to controlled substances break those safety protocols, even for individual use, they must be held accountable.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put the health of patients (whether they are human or animal) 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.”
According to court documents, from 1994 through 2021, Gries practiced as a Doctor of Veterinary Medicine at a veterinary hospital in Amherst County, Virginia. The veterinary hospital held hydromorphone for sale and maintained supplies of hydromorphone for use in treating pain in the hospital’s animal patients following surgeries.
As the hospital’s primary surgeon, Gries had full access to the hospital’s supply of hydromorphone. Beginning in July 2020 and without a valid prescription, Gries diverted hydromorphone for personal use by withdrawing a portion of the hydromorphone from the vial and injecting it into himself. He would then replace the diverted portion of the hydromorphone with another substance, usually either saline or butorphonal, and then return the altered hydromorphone to the supply maintained by the hospital.
The Food and Drug Administration - Office of Criminal Investigations, the Drug Enforcement Administration - Diversion Control Division, and the Virginia State Police investigated the case.
Former UTA Employee Sentenced for Lying to Federal InvestigatorsRead the Press Release
SALT LAKE CITY- Jacob Splan, 39, of Salt Lake City, was sentenced to six months of home confinement and 36 months of probation on Tuesday, in relation to making false statements to special agents from the United States Department of Transportation and the FBI.
According to the plea agreement, Splan admitted to lying to federal investigators about whether he had invoiced the Utah Transit Authority (UTA) for work completed at his personal residence. Under the terms of Splan’s former employment with UTA, he had the authority to make no-bid “micro purchases” on behalf of UTA in the amount of $3,000.00 or less. However, during a meeting on January 7, 2021, with special agents from the U.S. Department of Transportation and the FBI, Splan affirmatively stated that he had paid $3,000 dollars of his own money to contractors for work completed at his home. Splan later admitted in the plea agreement that he had not paid the contractors with his own money and that he knew the statement was false. In addition to the six months of home confinement, Splan has been ordered to pay a fine of $30,000, which was the estimated value of the work that Splan had completed on his own driveway.
“One of the highest priorities within the Department of Justice is ensuring the integrity of governmental processes and employees,” said United States Attorney Andrea T. Martinez. “We hope that this sentencing sends a message that misusing public funds and lying to federal investigators will be taken seriously and prosecuted in the District of Utah.”
“Working with our law enforcement counterparts and the U.S. Attorney’s Office to pursue and prosecute government officials who make false statements during criminal investigations ensures that those in positions that serve the public maintain their integrity,” said Cissy Tubbs, Special Agent-In-Charge, Western Region, U.S. Department of Transportation Office of Inspector General. “Jacob Splan’s sentence sends a message that this conduct is unlawful and will not be tolerated.”
“Jacob Splan abused his position for his own personal gain and then lied about it,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “No matter the amount of money, corruption undermines confidence in government, and those who commit fraud will be held accountable.”
Assistant United States Attorneys from the Utah U.S. Attorney’s Office prosecuted the case against Splan. Special Agents from the Department of Transportation Office of Inspector General and the FBI conducted the investigation.
Former UBS Financial Advisor Charged with Defrauding over $5 Million Dollars from His UBS ClientsRead the Press Release
Miami, Florida – Today, German Nino, a former UBS Financial Advisor, made his initial appearance in federal court in Miami to face charges of defrauding over $5 million from a family who maintained several accounts at UBS.
According to a federal information, from about 2012, and continuing to 2020, Nino, a resident of Broward County, was a financial advisor working at a branch office of UBS Financial Services Inc. in Miami. Nino oversaw and managed UBS investment accounts for various customers, including three victims who were related and who had various investment accounts at UBS. Nino was the financial advisor assigned to oversee and manage the victims’ money in the accounts.
It is alleged that from about May 2014 to February 2020, Nino made a total of 62 unauthorized transfers from three UBS accounts belonging to the victims, which totaled $5,833,218.59. To accomplish the wire fraud scheme, Nino made materially false and fraudulent statements to his victims and concealed and omitted material facts including misrepresenting the true performance, balance, and rate of return of the accounts he managed; forging the signature of his clients on documents purporting to authorize transfers out of the accounts; preparing a fraudulent land purchase contract and forging a victim’s signature on the land purchase contract to make it appear that the victim was purchasing land in Colombia by using money from the victim’s account; removing one of the victim’s email from the victim’s UBS email account profile so that the victim would not receive email notifications from UBS about unauthorized transfers; and preparing fraudulent UBS account statements and client review statements, which falsely inflated the balance and value of the victims’ accounts, says the information.
Nino made his initial appearance in federal magistrate court in Miami before United States Magistrate Lisette M. Reid.
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. Attorney Deric Zacca is prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
An information contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20020.
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Former State Court Victim Advocate Admits Distributing Child Sexual Abuse MaterialRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ROBERT ECCLESTON, 58, of Canton, waived his right to be indicted and pleaded guilty today via videoconference to one count of distribution of child pornography.
According to court documents and statements made in court, in 2020, covert FBI personnel in two different field offices outside of Connecticut were monitoring various public groups on the social medial application Kik. In August and September 2020, Eccleston, using the Kik usernames “hartfordctguy” and “Mowgli100,” distributed numerous pornographic images and videos of children in these Kik groups, including images and videos depicting the sexual abuse of toddlers and prepubescent children. Eccleston also served as an administrator of one Kik group and required prospective members to send him videos of child sexual abuse for group access.
Eccleston was arrested on December 11, 2020. At the time of the offense, he was employed as a Victim Services Advocate for the Hartford Superior Court in Hartford.
Eccleston is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on April 19, at which time he faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Eccleston has been detained since his arrest.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the Avon Police Department. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Pittsburgh Resident Pleads Guilty in Fentanyl Trafficking ConspiracyRead the Press Release
PITTSBURGH – An inmate of SCI Pine Grove, Indiana, Pennsylvania pleaded guilty to one count of conspiracy to distribute a quantity of fentanyl, United States Attorney Cindy K. Chung announced today.
Delrico Shields age 26, formerly of Glenwood Avenue, Pittsburgh, Pennsylvania, pled guilty on January 21, 2022, before U.S. District Judge W. Scott Hardy.
Shields was originally charged along with 23 others following a four-month Title III wiretap investigation into drug trafficking, violence, and firearms violations in and around the Hazelwood neighborhood in Pittsburgh. According to information provided to the court, during various points in the time frame listed in the indictment—from in and around August of 2019 and continuing thereafter to in and around August of 2021—Shields conspired to distribute a quantity of fentanyl.
Sentencing is scheduled for May 26, 2022. The law provides for a maximum total sentence of 20 years in prison, a fine of not more than $1,000,000, and a term of supervised release of at least three years. 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 Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pittsburgh Bureau of Police, Munhall Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, the Pennsylvania Office of the Attorney General, and Whitehall Police Department conducted the investigation leading to the Indictment of Shields.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Florida Dentist Sentenced to 12 Months and a day in Prison for Public Corruption Scheme Involving Former Arkansas State SenatorRead the Press Release
FAYETTEVILLE - A Florida dentist, formerly of Arkansas, was sentenced today to 12 months and a day in prison followed by one year of supervised release and a $157,500 fine on one count of Conspiracy to Commit Honest Services Fraud. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, between February of 2014 through November of 2016, Benjamin Gray Burris, age 50, was the owner of several orthodontic clinics and practiced as an orthodontist through Arkansas. On February 27, 2014, Burris, State Senator Jeremy Hutchinson, and others met for a dinner at a Little Rock restaurant and discussed Burris’s legislative objectives and hiring Hutchinson as Burris’s corporate legal counsel. Jeremy Hutchinson, who then represented state Senate District 33, comprised of portions of Pulaski and Saline County, Arkansas, stated that as part of any arrangement there needed to be “real legal work.” In his plea agreement, Burris admitted that part of his intent in hiring Hutchinson was to enable Burris to influence and request official action from Hutchinson. Throughout the course of their arrangement, Burris’s legal entities paid Hutchinson Law Firm a total of $157,500 at a rate of approximately $5,000 per month as a general retainer and Hutchinson was assigned legal work.
Specifically, Burris sent Hutchinson an email outlining Burris’s “Legislative Objectives” in late February of 2014 in which Burris stated that he wanted specialty restrictions on orthodontists removed. On January 26, 2015, Hutchinson filed a shell bill in the Arkansas Senate entitled “An Act to Clarify the Laws Governing Dental Practice.” Later on, April 6, 2015, Hutchinson filed a related Interim Study Proposal with the Senate Committee on Public Health, Welfare, and Labor. On September 22, 2015, Hutchinson filed another Interim Study Proposal (ISP-2015-154) on the subject. This ISP, among other things, proposed to remove the specialist restriction for orthodontists. According to text messages cited in Burris’s plea agreement, in 2016 Burris texted Hutchinson complaining about a lack of “ROI” also known as “return on investment” in his arrangement with Hutchinson and he requested specific updates on legislative matters. ISP-2015-154 was eventually filed as House Bill 1250 on January 23, 2017, after Hutchinson claimed a belated conflict, passed in the 91st General Assembly of the State of Arkansas, and was later signed into law on or about March 15, 2017.
Burris sold his businesses and moved to Florida in the spring of 2017 and has not practiced in Arkansas since that time.
Burris plead guilty on September 13, 2021.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas and U.S. Attorney Jonathan D. Ross of the Eastern District of Arkansas made the announcement.
The FBI and the IRS investigated the case.
Assistant U.S. Attorney’s Aaron Jennen, Ben Wulff, Stephanie Mazzanti, Allison Bragg and Kenneth Elser prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Five Men Indicted for Firearm and Drug OffensesRead the Press Release
BOSTON – Five Boston-area men have been indicted by a federal grand jury in Boston for firearm and drug offenses.
Trevon Bell, 26, of Boston, was indicted on one count of being a felon in possession of a firearm. Freily Cabral, 25, of Boston and Quincy, was indicted on two counts of being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking offense. Dumari Scarlett-Dixon, 21, of Boston and Weymouth, was indicted on one count of unlawful user of a controlled substance in possession of a firearm and ammunition. Dane Mitchell, a/k/a “Cheaney,” 31, of Revere, was indicted on one count of being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute cocaine and one count of possession of a firearm in furtherance of a drug trafficking offense. Lawrence Alexander, 24, of Stoughton, was indicted on one count of possession with intent to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking offense.
Bell was arrested on Friday, Jan. 21, 2022, and was detained following an initial appearance before United States Magistrate Judge Donald L. Cabell that afternoon. Cabral, Scarlett-Dixon and Mitchell had previously been arrested and remain in federal custody. Alexander remains at large.
According to charging documents, an investigation conducted from August through December 2021 identified the defendants as illegally possessing or selling firearms. As part of the investigation, a series of search warrants were executed at the defendants’ residences which allegedly resulted in the seizure of numerous firearms, ammunition and drugs packaged for sale. According to charging documents, a search of Cabral and Alexander’s residence on Sept. 9, 2021, resulted in the seizure of a Taurus .38 caliber revolver, a Hopkins and Allen .32 caliber revolver, a Walther 9-millimeter semi-automatic pistol, .38 caliber and 9-millimeter ammunition, approximately 1.3 kilograms of marijuana packaged for sale and over $23,000 in cash. A search of Scarlett-Dixon’s residence on Sept. 21, 2021, resulted in the seizure of a Bersa 9-millimeter semi-automatic pistol, 49 rounds of 9-millimeter ammunition and 10 rounds of .380 caliber ammunition. A search of Mitchel’s residence on Dec. 28, 2021, resulted in the seizure of a Taurus .380 caliber semi-automatic pistol with an obliterated serial number, .380 caliber ammunition, eight bags of cocaine packaged for sale, a digital scale and other drug trafficking paraphernalia. Agents also recovered a Glock Model 9-millimeter semi-automatic pistol that was linked to Bell. At the time of the offenses, Cabral, Scarlett-Dixon and Bell were each on house arrest via electronic monitoring for pending state court firearm charges and Mitchell was on supervised release for a prior federal firearms charge.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of being a drug user in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute marijuana provides for a sentence of up to five years in prison, at least two years of supervised release and a fine of up to $250,000. The charge of possessing firearms in furtherance of a drug trafficking offense provides for a sentence of at least five years and up to life in prison, from and after any sentence imposed on the underlying drug trafficking counts, five years of supervised release and a fine of $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
First Assistant United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments. Assistant U.S. Attorney Christopher Pohl of the Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Two Men on Fentanyl Trafficking, Firearms ChargesRead the Press Release
MINNEAPOLIS – A federal jury convicted two Minneapolis men of multiple counts of drug dealing, conspiracy to distribute drugs, and illegal possession of a firearm, announced Acting U.S. Attorney Charles J. Kovats.
Following an eleven-day trial before U.S. District Court Judge Michael J. Davis, Anthony Akemu Abari, 41, and Kevin Termell Green, 38, were convicted late Friday afternoon of multiple counts related to a fentanyl-laced heroin trafficking conspiracy. Abari was further convicted of possessing a firearm as a felon.
According to the evidence presented at trial, since 2018, Abari, Green, and others participated in a conspiracy to distribute heroin laced with fentanyl. Between late 2018 and mid-2019, the defendants regularly supplied fentanyl-laced heroin to individuals living in a large homeless encampment along Hiawatha Avenue in Minneapolis. Abari and co-defendant Relondo Devon Hall, 37, stopped there, on a daily basis at times, to distribute drugs they obtained from Green.
In January 2019, law enforcement received information that there was drug dealing going on at a Minneapolis residence. Law enforcement executed a search warrant at the residence where they found Abari with 100 grams of heroin laced with fentanyl, a gun, and two phones connecting him to drug dealing. In April 2019, law enforcement received additional information that Abari was in possession of heroin and a firearm. Upon execution of a search warrant, they found Abari in the basement where they also recovered 20 grams of heroin laced with fentanyl.
According to the evidence presented at trial, in July of 2019, upon execution of a search warrant, law enforcement seized 298 grams of heroin laced with fentanyl belonging to Green. Green had been supplying Abari and others with heroin laced with fentanyl from at least December 2018 and continuing into July 2019.
Abari was found guilty of one count of conspiracy to distribute 400 grams or more of heroin laced with fentanyl, one count of possession with intent to distribute 40 grams or more of heroin laced with fentanyl, and one count of felon in possession of a firearm. He faces a mandatory minimum sentence of ten years imprisonment. Green was found guilty of one count of conspiracy to distribute controlled substances and one count of possession with intent to distribute controlled substances. He faces a mandatory minimum sentence of 15 years imprisonment. Sentencing dates will be scheduled at a later time.
Abari and Green’s co-defendant Relondo Devon Hall, 37, pleaded guilty on July 30, 2020, to one count of conspiracy to distribute controlled substances. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the Minneapolis Police Department, Hennepin County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was tried by Assistant U.S. Attorneys Justin A. Wesley and Lindsey E. Middlecamp.
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El Departamento de Justicia llega a un acuerdo con una agencia de seguros que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con James A. Scott & Son, Inc., una agencia de seguros que opera bajo el nombre de Scott Insurance, con sede en Lynchburg, Virginia. El acuerdo resuelve las acusaciones del Departamento de que Scott Insurance discriminó, por motivos de estatus de ciudadanía, a un no ciudadano estadounidense al pedirle que presentara un documento específico para demostrar su permiso para trabajar y al rechazar el documento válido que el trabajador presentó. Asimismo, el Departamento halló que Scott Insurance discriminaba, de forma rutinaria, a no ciudadanos estadounidenses al negarse a considerar o contratarlo debido a su estatus de ciudadanía.
«Los empleadores no pueden negarse a contratar a candidatos con base en su estatus de ciudadanía salvo cuando por ley están autorizados a hacerlo», declaró Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Además, se les prohíbe a los empleadores discriminar a trabajadores a la hora de verificar su permiso para trabajar. La División de Derechos Civiles se ha comprometido a proteger a los trabajadores de la discriminación ilícita por motivos de ciudadanía».
La investigación del Departamento determinó que Scott Insurance discriminó a un residente permanente legal al pedir que presentase su Tarjeta de Residente Permanente para demostrar su permiso para trabajar y luego rechazar la documentación válida que él presentó. Más aún, el Departamento determinó que, a más tardar, el 1 de junio del 2017 hasta al menos el 1 de agosto del 2020, Scott Insurance discriminó a no ciudadanos de los EE. UU. al negarse a considerar o contratarlos para puestos, por motivos de su estatus de ciudadanía.
La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) protege a ciudadanos estadounidenses, nacionales no ciudadanos, refugiados, asilados y residentes permanentes legales recientes de la discriminación por motivos de su estatus de ciudadanía. La ley tiene una excepción que permite que empleadores o reclutadores restrinjan puestos con base en el estatus de ciudadanía si cuentan con la debida autorización para hacerlo bajo alguna ley, un reglamento, una orden ejecutiva o un contrato gubernamental. A los empleadores se les prohíbe restringir o especificar los tipos de documentación que se le permite al trabajador presentar para demostrar que cuenta con permiso para trabajar, por motivos de la ciudadanía, estatus migratorio o nacionalidad de origen de tal trabajador. Los empleadores deben permitir que sus trabajadores presenten cualquier documentación válida que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.
Conforme el acuerdo, Scott Insurance pagará una sanción civil a los Estados Unidos que asciende a $9,500 y $70,000 en pagos retroactivos a los trabajadores afectados. Por otra parte, el acuerdo requiere que Scott Insurance capacite sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y que se someta a los requisitos de supervisión y declaración del Departamento.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Aprenda más sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en el sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.