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Thursday 2 December 2021
Indictment Charges 4 Hartford Men with Committing Violent Robberies of AT&T StoresRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in Hartford returned an indictment yesterday charging ALEX JOSEPHS, 21; RONALDO SMITH, 23; SHAQUILLE RAYMOND, 23; and DESHAWN BAUGH, 19, all of Hartford, with federal robbery and firearm offenses stemming from a spree of AT&T store robberies that occurred earlier this year in Connecticut and western Massachusetts.
As alleged in court documents and statements made in court, earlier this year, the FBI’s Connecticut Violent Crimes Task Force and several police departments began investigating a group of individuals who were committing violent armed robberies of AT&T stores in Connecticut. The perpetrators typically entered the stores shortly before closing, pointed weapons at employees, and, at times, pistol-whipped, dragged and shoved employees toward the back inventory room. They then held the employees at gunpoint while loading large bags with cell phones and other electronics. The group stole hundreds of thousands of dollars in merchandise.
It is alleged that Josephs, Smith, Raymond, Baugh and others robbed AT&T stores in Newington on January 29, Enfield on February 24, Canton on April 15, and West Springfield, Massachusetts on June 6, 2021. They also attempted to rob stores in Torrington on May 15 and Glastonbury on May 29, but were locked out of the stores.
Josephs, Smith, Raymond, Baugh and Saviana Bourne were arrested on June 6, 2021, after fleeing from the West Springfield robbery and leading police on a high-speed chase that ended when their vehicle collided with a Massachusetts State Police cruiser. A search of the vehicle revealed a semiautomatic rifle, three handguns, and merchandise stolen during the robbery.
The indictment charges Josephs, Smith, Raymond and Baugh with one count of conspiracy to commit Hobbs Act robbery, which carries a maximum term of imprisonment of 20 years, and one count of brandishing a firearm during and in relation to a crime of violence, which carries a mandatory consecutive sentence of at least seven years of imprisonment. Josephs, Smith, Raymond and Baugh are also charged with multiple counts of Hobbs Act Robbery and attempted Hobbs Act robbery, offenses that carry a maximum term of imprisonment of 20 years on each court.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Josephs, Smith, Raymond and Baugh have been detained in Massachusetts state custody since their arrests.
Bourne, 23, of Middletown, was the driver of the getaway vehicle that crashed on June 6. On November 30, 2021, she pleaded guilty in Hartford federal court to one count of conspiracy to commit Hobbs Act robbery, four counts of Hobbs Act robbery, and two counts of attempted Hobbs Act robbery.
This matter is being investigated by the FBI’s Connecticut Violent Crimes Task Force with the assistance of the Massachusetts State Police and the Newington, Enfield, Canton, Torrington, Glastonbury, and West Springfield Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Indianapolis Man Sentenced to 60 Years in Federal Prison Following Law Enforcement Officer’s Rescue of Young Children He Sexually AbusedRead the Press Release
INDIANAPOLIS – An Indianapolis, Indiana man was sentenced to 60 years in federal prison for sexually exploiting two young children in his care and creating and distributing images of the abuse over the internet.
This investigation began when Donald Robert Richards, III, 32, began communicating with an undercover agent in an online chatroom. On multiple occasions during the chats, Richards uploaded images depicting the sexual abuse of two young female children. Richards went on to explain his familial relationship with the children and describe his sexual conduct with the girls.
The undercover agent was able to ascertain Richards’s identity, and eventually, with the Indiana Internet Crimes Against Children (“ICAC”) Task Force, investigators were able to determine Richards’s location in Indianapolis.
That same day, the Indiana ICAC Task Force assembled to obtain and execute a search warrant at Richards’s location to rescue the two children. Law enforcement officers removed the children from harm’s way, gathered evidence of Richards’s crimes, and arrested Richards.
Digital evidence showed that Richards had repeatedly sexually exploited the children, who were both under six years old, and on multiple occasions had filmed the abuse. Further, the evidence showed, consistent with the undercover’s interactions, that Richards shared the child sexual abuse material he created with others over the Internet.
Richards pleaded guilty to charges of sexual exploitation of a child and charges of distribution of a visual depiction of a minor engaged in sexually explicit conduct.
“For a child, her home and a family member’s arms should be the safest places in the world,” said U.S. Attorney Zachary A. Myers. “But the hands and home of Donald Robert Richards III were the most perilous places for our young victims to be, because Richards’s home was the site of protracted sexual exploitation and the only weapon he ever needed was opportunity. Had Richards not been so brazen as to record his crimes and to distribute the images, no one would have known what the victims suffered. We are grateful to the Indiana ICAC for their efforts to bring these girls out of the dark silence of Richards’ abuse.”
According to Assistant United States Attorney Kristina M. Korobov, who prosecuted the case, Richards was ordered to pay $20,000 in restitution and will be federally supervised for a life term following his release from prison.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Additionally, 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 U.S. Attorneys’ Offices and the 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
Hyattsville Man Pleads Guilty to Bank Fraud Conspiracy That Intended to Cause a Loss of More Than $4.1 Million to Victim BusinessesRead the Press Release
Baltimore, Maryland – Oyekanmi Oworu, age 35, of Hyattsville, Maryland, pleaded guilty yesterday to conspiracy to commit bank fraud and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration.
According to his guilty plea, between February 2017 and July 2020, Oworu conspired with co-defendant Babtunde Ajibawo, age 55, of Essex, United Kingdom and others to fraudulently obtain checks made out to legitimate businesses, then fraudulently register shell companies to obtain state business certificates in the identical or similar name of the legitimate businesses to which the checks were made payable. The conspiracy also used the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (EIN) and the fraudulently obtained social security numbers of real individuals to obtain an EIN for the fraudulent business.
Specifically, on February 7, 2017, Oworu opened a bank account at a victim financial institution in the name of a real individual and deposited a stolen check made payable to a legitimate business for $265,168.20. Oworu subsequently withdrew the proceeds.
Additionally, on November 20, 2018, Oworu opened a bank account at a victim financial institution in a similar name of a legitimate business using the means and identification of A.S, a real individual. After opening the account, Oworu deposited a stolen check made payable to the legitimate business for $58,713.50. Video surveillance captured Oworu depositing the stolen check in Washington, D.C.
During the course of the scheme to defraud, Oworu communicated with co-conspirators regarding the allocation of stolen proceeds, including the money he would personally receive for opening fraudulent bank accounts and depositing stolen checks. Specifically, on May 2, 2019, Oworu asked Ajibawo to send $3,000 to him and the balance to another co-conspirator in Fayetteville, Georgia.
Further, as detailed in the Superseding Indictment, Oworu and his co-conspirators attempted to conceal their criminal actions and evade law enforcement by relocating the fraud scheme to other jurisdictions. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria.
In total, Oworu and his co-conspirators intended to cause a loss of at least $4.1 million to victim businesses, caused an actual loss of at least $756,175.30, and compromised the identifying information of more than 50 individual victims.
Co-defendant Ajibawo pled guilty to conspiracy to commit bank fraud on July 8, 2021 and is scheduled to be sentenced on December 8, 2021 at 10 a.m.
Oworu faces a maximum sentence of 30 years in prison followed by up to five of supervised release for conspiracy to commit bank fraud and a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft. As part of his plea agreement, Oworu will also be required to pay restitution. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 10, 2022 at 9:15 a.m.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Judson T. Mihok, who are prosecuting the case.
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Hartford Man Sentenced to More Than 6 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that JONATHAN CONTRERA, also known as “Hollywood,” 29, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by four years of supervised release, for narcotics distribution and gun possession offenses.
According to court documents and statements made in court, in December 2017, Contrera pleaded guilty in state court to sale of narcotics and was sentenced to 10 years in prison, suspended after three years, and three years of probation. Contrera also pleaded guilty to negligent homicide, a charge reduced from murder after key witnesses who observed him chase down and shoot the victim could not be located. He was released from state custody in June 2018. In July 2019, while on state probation, Contrera was arrested by Hartford Police and charged with various narcotics offenses related to the possession of cocaine, oxycodone and marijuana. He was subsequently released on bond.
In September and October 2019, investigators made controlled purchases of crack cocaine from Contrera. Contrera was arrested on October 9, 2019, after he sold approximately 3.5 grams of crack to an individual, and a search of his car revealed another 3.5 grams of crack. After Contrera was arrested, a search of his residence revealed approximately 500 grams of cocaine, approximately 20 grams of crack, items used to process and package narcotics for street sale, and a stolen .327 caliber revolver loaded with six rounds of ammunition.
Contrera has been detained since his federal arrest on October 17, 2019. On May 27, 2021, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a felon.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The task force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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.
Great Falls man sentenced to 25 years in prison for sexually exploiting minor girl in PennsylvaniaRead the Press Release
GREAT FALLS — A Great Falls man who admitted to inducing a minor girl in Pennsylvania to send him sexually explicit photographs of herself was sentenced today to 25 years in prison to be followed by 20 years of supervised release, U.S. Attorney Leif M. Johnson said.
Andrew Donovan Carter, 29, pleaded guilty in August to sexual exploitation of a child.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $6,000 restitution to known victims.
The government alleged in court documents that in August 2020, a Pennsylvania law enforcement agency contacted Carter’s state probation officer regarding Carter using social media to engage in sexually explicit communications with a 14-year-old girl. The probation officer requested assistance from the Great Falls Police Department, which is a member of the Montana Internet Crimes Against Children Task Force (ICACTF). The girl told investigators that she met a boy she believed to be was 16 years old, communicated with him online and that he asked her to send him nude pictures of herself. The supposed 16-year-old boy was Carter. The girl took sexually explicit photographs of herself and sent them to Carter using a cell phone. Carter communicated with the 14-year-old girl for about a year and texted her almost daily, requesting sexually explicit images of the girl. While interviewing Carter, agents learned that he was having similar communications with another child who was about 10 years old.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by Homeland Security Investigations, Montana Internet Crimes Against Children Task Force, Great Falls Police Department and Montana Department of Corrections’ Probation and Parole.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Georgia man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kaleb Joseph Beals, of Silver Creek, Georgia, was sentenced today to 92 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Beals 32, pleaded guilty in June 2021 to one count of “Conspiracy to Distribute Methamphetamine.” Beals admitted to working with others to sell methamphetamine, also known as “crystal meth” or “ice,” from August 2018 to April 2019 in Hardy County. Beals trafficked crystal methamphetamine from Georgia into Hardy County via Interstate-81 and then across the new 4-Lane (Corridor H) into Hardy County. Beals had West Virginia residents trafficking the drug. All four have pleaded guilty to drug charges.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, the West Virginia State Police, the Grant County Sheriff’s Office, and the Moorefield Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Find related cases here:
https://www.justice.gov/usao-ndwv/pr/hardy-county-man-admits-role-drug-trafficking-operation
https://www.justice.gov/usao-ndwv/pr/hampshire-county-woman-admits-role-drug-trafficking-operation-0
https://www.justice.gov/usao-ndwv/pr/hardy-county-man-admits-role-drug-trafficking-operation-0
https://www.justice.gov/usao-ndwv/pr/mineral-county-woman-admits-drug-charge
Fry Foods, Inc. Human Resources Manager Sentenced to 41 Months in Federal Prison for Payroll and COVID-19 Testing SchemesRead the Press Release
BOISE – A Meridian man was sentenced to 41 months in federal prison for wire fraud, mail fraud, and money laundering based on schemes to defraud his employer, Fry Foods, Inc., during the early phases of the COVID-19 pandemic.
According to the plea agreement, Douglas Wold, 49, of Meridian, worked as a Human Resources Manager for Fry Foods, Inc. in Ontario, Oregon, and executed two separate schemes.
First, beginning in at least May 2020 and continuing through August 2020, Wold committed wire fraud by submitting fraudulent payroll requests for individuals who never worked at Fry Foods or who no longer worked at Fry Foods at the time of the payroll requests. Payroll checks were processed based on Wold’s requests. Wold then deposited these fraudulent payroll checks into his own bank accounts.
Second, Wold committed mail fraud with respect to a COVID-19 testing program at Fry Foods’ Weiser location in May 2020. Wold issued a fraudulent invoice to Fry Foods in the name of his business, Hala Lallo Health, for $39,995 when, in fact, the testing was provided by another entity and at a greatly lower cost. When Fry Foods paid Hala Lallo Health for the testing, Wold deposited the funds into a bank account he controlled and did not pay the health care provider that actually conducted the testing.
Wold committed the offense of engaging in monetary transactions in property derived from unlawful activity by transferring $69,116.48 in proceeds from his frauds for the purchase a speedboat and trailer, which the Government has since recovered.
“The outcome in this case reflects our office’s longstanding commitment to hold accountable anyone who engages in corporate fraud,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “It also shows our ability to work with our law enforcement partners to quickly investigate and prosecute fraud schemes that arise from or seek to take advantage of the ongoing COVID-19 pandemic.”
“This sentence is the price Wold will pay for abusing his position of trust to create a stream of income he was not entitled to,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “IRS-CI will continue to use our investigative resources to hold accountable those who exploit others for their own financial benefit.”
Chief U.S. District Judge David C. Nye also ordered Wold to serve three years of supervised release following his prison sentence. A final order of restitution will be determined during a hearing to be held at a later date. Wold pleaded guilty to the charges on May 18, 2021.
Acting U.S. Attorney Gonzalez commended the cooperative efforts of the Internal Revenue Service – Criminal Investigation, Malheur County’s Sheriff’s Office, Meridian Police Department, and Ada County Probation Office, which led to charges.
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 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Four People Plead Guilty to Mail Fraud, Wire Fraud, and Money Laundering ChargesRead the Press Release
SPRINGFIELD, Ill. – Four individuals have pleaded guilty over the past three months to mail fraud, wire fraud, and money laundering charges that were related to schemes involving the submissions of fraudulent claims for childcare services to the Illinois Department of Human Services that resulted in a loss of approximately $1,300,000 to the State of Illinois and the United States. The individuals are: Tarnavis Lee, 42, of the 6200 block of W. 80th Street in Burbank, Illinois; Demetra Jackson, 42, of the 2700 block of W. 64th Street in Chicago, Illinois; LaShanda Hudson, 40, of the 6700 block of S. Maplewood in Chicago; and Elizabeth McFarland, 47, of the 600 block of Rothwood Avenue in Madison, Tennessee.
According to the three indictments charging the defendants, as well as their plea agreements, the Illinois Department of Human Services (DHS) administered the Child Care Assistance Program, which was partially funded by the federal government. The program paid for childcare services for low-income parents while they worked or participated in approved educational programs. Each of the individuals charged engaged in schemes to defraud DHS by submitting claims for childcare services that were not provided or not provided to the extent claimed. As part of their schemes, Lee and Hudson also paid a total of more than $160,000 in kickback payments to parents participating in the program in exchange for the parents allowing their personal information and that of their children to be used to submit false and fraudulent childcare claims to DHS.
On September 8, 2021, Lee pleaded guilty pursuant to a plea agreement to two counts of mail fraud, two counts of wire fraud, and two counts of money laundering, as charged in two separate indictments. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $913,390.66. Lee’s sentencing is scheduled for January 6, 2022.
On October 12, 2021, Jackson pleaded guilty pursuant to a plea agreement to one count of wire fraud. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of approximately $250,000. Her sentencing is scheduled for February 9, 2022.
On October 25, 2021, McFarland pleaded guilty pursuant to a plea agreement to one count of wire fraud. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $228,301.31. Her sentencing is scheduled for February 24, 2022.
On November 3, 2021, Hudson pleaded guilty pursuant to a plea agreement to one count of wire fraud and one count of money laundering. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $421,875.97. Her sentencing is scheduled for March 4, 2022.
The statutory penalties for each count of mail and wire fraud are up to 20 years of imprisonment, 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment. The statutory penalties for each count of money laundering are up to 20 years of imprisonment; up to 3 years of supervised release; a fine up to $500,000 or twice the value of the property involved in the transactions, whichever is greater, or both; and a mandatory $100 special assessment.
All defendants remain free on bond pending sentencing. The scheduled sentencings are set to take place at the federal courthouse in Springfield, Illinois.
The cases were the result of a joint investigation by the Department of Health and Human Services - Office of Inspector General, St. Louis Field Office, and the Illinois State Police Medicaid Fraud Control Bureau, Central Division. Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.
Four Men Sentenced to Prison for Roles in Construction Insurance Fraud SchemeRead the Press Release
Miami, Florida – Today, a South Florida federal district judge sentenced three men from different parts of the country to federal prison terms for their roles in a conspiracy to defraud companies by issuing worthless bonds to insure large-scale construction projects. A fourth defendant was sentenced earlier this year.
On December 2, Alexander Robert Xavier, 57, formerly of Boca Raton, Florida was sentenced to 72 months in prison; Timothy Castracane a/k/a “Guy” Castracane, 51, of Saratoga Springs, New York, was sentenced to 46 months in prison; and Henry John Hattendorf, 73, of Las Vegas, Nevada was sentenced to 24 months in prison. On November 16, Robert Michael Wann, 64, of Rancho Mirage, California, was sentenced to 54 months in prison. Each defendant was also sentenced to a term of supervised release of three years and ordered to pay over $2.6 million in restitution to victims of the fraud.
From approximately March 2015 through December 2015, the defendants devised a scheme to unlawfully enrich themselves by issuing various performance and payment bonds – a type of insurance required on major construction contracts. During the course of the fraud, Defendant Xavier, acting as a so-called “individual surety,” pledged over $30 million in assets to builders working on large-scale infrastructure and residential construction projects. In truth, and as the defendants well knew, there were no such assets; only worthless securities that the defendants referred to as “gold certificates.”
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; Sean Earle, Special Agent in Charge, Eastern Region Field Office, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG); and David Spilker, Special Agent in Charge, Southeast Field Office, United States Department of Veterans Affairs, Office of Inspector General (VA-OIG), made the announcement.
United States District Judge Donald M. Middlebrooks imposed the sentences. Previously, the defendants all pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.
At the time of his sentencing, Defendant Xavier was already serving a 150-month prison sentence imposed in a different Southern District of Florida criminal fraud case, Case No. 15-80149-cr-Marra.
EPA-OIG and VA-OIG investigated the case, with assistance from the United States Department of Transportation OIG, Internal Revenue Service, Criminal Investigation Division, in Albany, New York, and The Port Authority of New York & New Jersey OIG.
It was prosecuted by Assistant U.S. Attorneys Christopher B. Browne and Stephanie Hauser. Annika Miranda handled the asset forfeiture component of the case.
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 no. 20-cr-80054.
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Former Treasurer of the Detroit Fire Department Union Pleads Guilty to Stealing over $200,000 in Union FundsRead the Press Release
DETROIT - The former Treasurer of the Detroit Fire Department Union (DFFA) has pleaded guilty to embezzling over $200,000 in union funds, announced Acting United States Attorney SaimaMohsin.
Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Verdine Day, age 62, pleaded guilty to bank fraud as charged in an information filed by the U.S. Attorney’s Office. United States District Judge George Caram Steeh accepted her guilty plea and set the matter for sentencing on March 24, 2022 at 2pm..
According to the facts alleged in the information and further developed at the plea hearing, Day was hired by the Detroit Fire Department in 1986. She worked as a firefighter, engineer, and held other positions in the union before she was elected by her peers to Treasurer of the DFFA in November 2015. She was Treasurer from December 2015 until her retirement from the DFFA and the City of Detroit in September 2019.
During the four years Day was Treasurer of the DFFA, she fraudulently obtained approximately $167,900.00 of union funds by (1) issuing checks in her name and then changing the name of the payee in the Union’s Quickbooks software; (2) cashing checks which were voided by her in Quickbooks; (3) writing checks made payable to cash; and (4) withdrawing cash from DFFA bank accounts. Day also fraudulently obtained money by diverting funds intended by the DFFA to be a donation to charity.
Day also used DFFA credit cards as her own personal credit cards while she was Treasurer and after she retired. In total, she charged approximately $49,116.17 in personal expenses using DFFA credit cards. Her purchases on DFFA credit cards included flights, hotel rooms, cruises, car insurance premiums, satellite and cable TV service, national and state parks fees, and furniture. For example, Day used a DFFA union credit card to charge $9,553 for a cruise with Royal Caribbean cruise lines in 2017. Day also used a union credit card to pay for another Royal Caribbean cruise costing $8,975 on the Liberty of the Seas in 2019. She used the union’s credit card to pay her bar bill at a casino in Ohio in May 2019 and for a meal at a Bubba Gump Shrimp Co. restaurant in Cozumel, Mexico in 2019.
Acting U.S. Attorney Saima Mohsin commended the work of the FBI and the Department of Labor in conducting this criminal investigation of a corrupt union officer and said, “This prosecution demonstrates that we will not tolerate union officers who abuse their authority and line their own pockets at the expense of the union’s membership. We will continue to work with our law enforcement partners to root out corruption and fraud involving unions.”
"As treasurer of the Detroit Fire Department Union, Verdine Day had a duty to safeguard the dues paid by men and women who put their lives on the line each day to protect the citizens of Detroit,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Today’s guilty plea is an admission she violated her duty and the trust of these brave men and women. The FBI will continue to work with our law enforcement partners to thoroughly investigate anyone who misuses their government position for their own personal benefit.”
“Verdine Day embezzled over $200,000 in union funds in order to personally enrich herself at the expense of dues-paying Detroit Fire Department Union members. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen. The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Labor.
Day is facing a maximum of 30 years in prison on the bank fraud charge.
Former College Track and Field Coach Indicted on Wire Fraud, Cyberstalking, Conspiracy and Computer Fraud ChargesRead the Press Release
BOSTON – A federal grand jury has indicted a former track and field coach in connection with a scheme to trick women across the country into sending him nude or semi-nude photos using more than a dozen sham social media and email accounts. The defendant allegedly cyberstalked one female student-athlete and orchestrated a scheme to gain unauthorized access to a victim’s Snapchat account.
Steve Waithe, 28, of Chicago, Ill., was charged in a 15-count indictment with 12 counts of wire fraud, one count of cyberstalking, one count of conspiracy to commit computer fraud and one count of computer fraud, aiding and abetting. Waithe will appear in federal court in Boston on Dec. 9, 2021 at 9:45 a.m. before U.S. Magistrate Judge Donald L. Cabell. On April 7, 2021, Waithe was charged by criminal complaint with wire fraud and cyberstalking and was arrested in Chicago. He was released by the Court on conditions on May 19, 2021.
According to charging documents, Waithe previously worked as a track and field coach at several academic institutions, including Northeastern University, Penn State University, Illinois Institute of Technology, University of Tennessee and Concordia University Chicago.
It is alleged that, starting at least as early as February 2020, Waithe began perpetrating an evolving scheme to dupe women into sending him nude or semi-nude photos of themselves. Specifically, Waithe allegedly used anonymized social media accounts with usernames like “anon.4887” and variations of the phrase “Privacy Protector” to contact prospective victims, claiming that he had found compromising photos of them online and offering to “help” get the photos removed from the internet. Waithe also allegedly requested additional nude or semi-nude photos from victims that he could purportedly use for “reverse image searches.”
It is further alleged that Waithe fabricated at least two female personas, “Katie Janovich” and “Kathryn Svoboda,” in an effort to obtain nude and/or semi-nude photos of women. Under the purported premise of an “athlete research” or “body development” study, Waithe allegedly emailed prospective victims pretending to be “Katie” or “Kathryn” with email accounts in their names. The emails described a phony study for athletes and requested information relating to height, weight, body fat and diet habits. The emails also included a request for the victims to send photos of themselves in order to “track their progress” and recommended that the photos show the women in a “uniform or bathing suit to show as much skin as possible.” The emails often included attachments of sample nude and semi-nude images to illustrate the types of photos that victims should send.
According to court documents, investigators identified over a dozen sham social media accounts allegedly used by Waithe and over 350 photos sent by more than 49 victims who thought they were emailing someone conducting a legitimate research study.
Waithe is also charged with cyberstalking one victim, from at least June 21, 2020 to Oct. 3, 2020, through text messages and direct messages sent via social media, as well as by hacking into her Snapchat account. It is alleged that he texted and sent nude photos of the victim to the victim’s boyfriend, stating, “I wanted to make you aware that someone hacked your girlfriend’s snapchat account and will leak it soon. I need your help to assure this does not happen.”
In October 2020, Waithe allegedly conspired with another individual to hack into Snapchat accounts, ultimately gaining access to at least one account and its private “My Eyes Only” folder that contained nude and/or semi-nude photos. In addition, Waithe allegedly provided his co-conspirator with the usernames and phone numbers for the Snapchat accounts of at least 15 women. Waithe and his co-conspirator then used this information to craft and send text messages purporting to be from the “Snapchat Support Team” and requesting security information, through which they gained access to at least one account.
The investigation revealed that Waithe’s internet browsing history allegedly included visits to webpages with titles like, “Can anyone trace my fake Instagram account back to me?” and “How to Hack Someones Snapchat the Easy Way.” It is alleged that Waithe’s search history also included searches for, among other things, “how to hack snapchat with a username and phone number.”
If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-steven-waithe
The charge of wire fraud provides for a sentence of up to 20 years in prison for each count, three years of supervised release and a fine of $250,000. The charge of cyberstalking provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to commit computer fraud and computer fraud, aiding and abetting, each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Northeastern University Police Department provided substantial assistance with the investigation; the Suffolk County District Attorney’s Office and the Chicago Police Department also provided valuable assistance. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chief Financial Officer and Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Arrested for Insider TradingRead the Press Release
NEWARK, N.J. – The former chief financial officer and the former head of corporate communications for a biopharmaceutical company were arrested for their roles in an insider trading scheme, Acting U.S. Attorney Rachael A. Honig announced today.
Usama Malik, 47, and Lauren S. Wood, 33, both of Washington, D.C., are charged by complaint with securities fraud. Malik and Wood were both arrested on Dec. 1, 2021. Malik is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Zia Faruqui in Washington, D.C., federal court. Wood is scheduled to appear this afternoon before U.S. Magistrate Judge John F. Anderson in Alexandria, Virginia, federal court.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, Company-1 publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, Biopharmaceutical Company-2 acquired Company-1 for approximately $21 billion.
As Company-1’s CFO, Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the April 6, 2020 announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly the head of corporate communications for Company-1. Malik also provided the non-public information to a number of his relatives. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of Company-1 stock, despite the fact that Company-1 stock had recently been downgraded by financial experts. After Company-1 announced on April 6, 2020, that its cancer drug had proven effective in pre-market clinical trials, Company-1’s stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618, and returning $65,000 to Malik.
The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint today based on the same conduct.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Deputy Chief of the Criminal Division Osmar J. Benvenuto.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former CEO of Real Estate Private Equity Investment Firm Sentenced to 5 Years in Prison for $58 Million Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ERIC MALLEY, the founder and former chief executive officer of real estate private equity investment firm MG Capital Management L.P., was sentenced today by United States District Judge Edgardo Ramos to 60 months in prison in connection with a securities fraud scheme in which he fraudulently induced hundreds of individuals to invest a total of approximately $58 million in two real estate investment funds. MALLEY pled guilty before Judge Ramos on May 20, 2021.
U.S. Attorney Damian Williams said: “For years, Eric Malley swindled investors through false promises about himself, his credentials, his track record, and the state of his real estate investment funds. Today’s sentence sends an important message that there are grave consequences to such deception.”
According to the allegations contained in the Complaint, the Information to which Malley pled guilty, other court documents, and statements made in public court proceedings:
MALLEY founded MG Capital Management L.P. (“MG Capital”) in approximately January 2013, and served as its chief executive officer and chief investment officer from that time until approximately December 2019. During that time, MALLEY formed two real estate investment funds (collectively, “the Funds”) – MG Capital Management Residential Fund III (“Fund III”), in approximately February 2014, and MG Capital Management Residential Fund IV (“Fund IV”), in approximately September 2017.
MALLEY promised, when soliciting investors and throughout the life of the Funds, that the Funds represented an opportunity to own an equity interest in hundreds of luxury income-producing properties across Manhattan, following a debt-free investment strategy purportedly informed by sophisticated proprietary analytics that MALLEY had developed over the course of his career in real estate. MALLEY touted two purportedly extremely successful prior funds he had formed, Fund I and Fund II; assured investors that the Funds would be and were debt-free; and represented that the properties held by the Funds would be and were leased primarily to corporate tenants, including, among others, well known technology companies and a prominent university based in New York City with which Malley had pre-existing agreements. But MALLEY’s representations were false. Funds I and II did not exist. The Funds were not debt-free, but instead held mortgaged properties. The properties that made up the Funds were almost entirely leased to individual, not corporate, tenants. Malley did not have the corporate relationships or pre-existing agreements he touted. The Funds held far fewer properties than MALLEY had represented. And although Malley promised the investments were fully protected from loss, they were not.
MALLEY induced approximately 335 investors to invest a total of approximately $58 million in the Funds through these and other fraudulent misrepresentations. The Funds together incurred millions of dollars in losses and are currently being liquidated.
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In addition to the prison term, MALLEY, 51, of New Canaan, Connecticut, was sentenced to three years of supervised release and ordered to make restitution in the amount of $33,249,822.12 and forfeiture in the amount of $5,625,747.45.
This case is being handled by the Office’s Securities and Commodities Task Force. Assistant United States Attorney Elizabeth A. Hanft is in charge of the prosecution.
Former Altoona School Superintendent Sentenced to 8 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Daniel Peggs, 34, Altoona, Wisconsin was sentenced by Chief U.S. District Judge James D. Peterson to 96 months in federal prison for possessing child pornography. This prison term will be followed by 10 years of supervised release.
The case came to light when, in January 2019, a 20-year-old woman came forward and reported that she had been the victim of sexual exploitation by several men when she was 17 years old. The investigation by the Wisconsin Department of Justice and the U.S. Department of Homeland Security revealed that the victim met 37-year-old Bryan Ragon at a renaissance festival in Minnesota in September 2015. Ragon returned to his home in North Carolina and the minor returned to Wisconsin. Shortly after they met, Ragon started posting the minor on Craigslist.com in Wisconsin for group sex encounters.
Daniel Peggs, using the alias Jake Thompson, responded to an ad. At the urging of Ragon, Peggs recruited other adult men for group sex, rented a hotel room and then met with the minor at a hotel in Rice Lake, Wisconsin, where he recorded the sexual activity. After this first encounter, Peggs began communicating directly with Ragon to arrange group sex encounters, and continued to meet with the minor, both individually and in group settings, and recorded some of the encounters.
On October 25, 2021, Bryan Ragon was sentenced in the Western District of North Carolina to 20 years in prison, to be followed by 30 years of supervised release.
In sentencing Peggs, Judge Peterson noted that while Peggs pleaded guilty to possession of child pornography, the heart of the case was the production of images of child pornography. Judge Peterson noted that mistake of age is not a defense for the production of child pornography. Judge Peterson also found that the defendant was systematically dishonest and his claim that he didn’t know the victim was a minor was not particularly credible. The court found that Peggs was willing to do whatever it took to have sex with the minor, regardless of the risk. In imposing the sentence, Judge Peterson found that a term of imprisonment was needed to protect public from the defendant’s sexual preoccupation.
The charge against Peggs was the result of an investigation conducted by Wisconsin Department of Justice Division of Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Ashland County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger. The U.S. Attorney’s Office in the Western District of Wisconsin thanks the U.S. Attorney’s Office in the Western District of North Carolina for their cooperation and coordination.
Flower Mound Hospital to Pay $18.2 Million to Settle Federal and State False Claims Act Allegations Arising from Improper Inducements to Referring PhysiciansRead the Press Release
Flower Mound Hospital Partners LLC (Flower Mound Hospital), a partially physician-owned hospital in Flower Mound, Texas, has agreed to pay $18.2 million to resolve allegations that it violated the False Claims Act by knowingly submitting claims to the Medicare, Medicaid and TRICARE programs that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical judgments are not compromised by improper financial inducements.
The settlement resolves allegations that Flower Mound Hospital violated the Stark Law and the Anti-Kickback Statute when it repurchased shares from physician-owners aged 63 or older and then resold those shares to younger physicians. The United States alleges that Flower Mound Hospital impermissibly took into account the volume or value of certain physicians’ referrals when it (1) selected the physicians to whom the shares would be resold and (2) determined the number of shares each physician would receive.
“Improper financial arrangements between hospitals and physicians can distort physician decision-making and drive up health care costs for everybody,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Patients deserve the independent and objective judgment of their health care professionals”
“The Stark Law and the Anti-Kickback Statute are designed to ensure that physician financial considerations can never influence patient care,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “The system relies in part on whistleblowers who come forward to report financial improprieties at their workplaces. We urge anyone with concerns to reach out. The Justice Department is committed to enforcing laws that safeguard patient interests.”
“To deliver optimal patient care and protect the integrity of federal health care programs, providers should dutifully operate in accordance with the Stark Law and Anti-Kickback Statute,” said Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Providers are expected to deliver and bill for services based on their medical appropriateness and necessity, not their potential profitability. HHS-OIG and our partners are committed to enforcing these safeguards for HHS programs and beneficiaries.”
“Today’s outcome highlights the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protecting the integrity of our federal healthcare programs, including the Department of Defense’s healthcare program, TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will aggressively investigate companies and individuals that attempt to defraud taxpayer-funded healthcare programs, particularly those programs intended to care for our warfighters, their family members and our military retirees.”
Medicaid is funded jointly by the states and the federal government. The State of Texas paid for a portion of the Medicaid claims at issue and will receive a total of approximately $500,000 from the settlement with Flower Mound Hospital.
In connection with the settlement, Flower Mound Hospital entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA requires, among other things, that Flower Mound Hospital maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of the hospital. It also increases individual accountability by requiring compliance-related certifications from key executives.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Leslie Jennings, M.D., a physician-owner at Flower Mound Hospital. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Dr. Jennings will receive approximately $3 million as his share of the recovery in this case. The qui tam case is captioned United States ex rel. Jennings v. Flower Mound Hospital Partners, LLC, et al., Civil Action No. 3-19-CV-02676-B (N.D. Tex.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Texas with assistance from HHS-OIG and DCIS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Jonathan Thrope and Assistant U.S. Attorney Kenneth Coffin.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal jury convicts man of robbing Albuquerque supermarketRead the Press Release
ALBUQUERQUE, N.M. – A federal jury returned a guilty verdict on Dec. 1 in the trial of Jesse Barela, 35, of Albuquerque. Barela will remain in custody pending sentencing, which has not been scheduled.
A grand jury indicted Jesse Barela and his brother, Julian Barela, 50, on Sept 10, 2020, charging them with interference with commerce by threats and violence. Julian Barela pleaded guilty on Oct. 6.
According to the indictment and other court records, on November 26, 2019, the two men entered an Alberton’s Supermarket in Albuquerque and filled a shopping cart with hundreds of dollars in goods. They then proceeded to the exit without paying. When a store employee attempted to stop them, Jesse Barela brandished what appeared to be a firearm while Julian Barela struck the employee several times with a baton.
Jesse Barela faces up to 20 years in prison.
The FBI and the Albuquerque Police Department investigated this case as part of the FBI Violent Crime and Gangs Task Force. The United States Attorney’s Office for the District of New Mexico is prosecuting the case.
Federal charges filed against suspect connected to armed robbery spreeRead the Press Release
ST. LOUIS – On December 1, 2021, federal charges were filed against 58-year-old James Mayes. Mayes is accused of a robbery on federal territorial jurisdiction, namely the Gateway National Arch Park, and the armed robberies of commercial business establishments that are listed below.
According to the charging documents, Mayes committed multiple armed robberies; knowingly possessed, brandished, and discharged a firearm, in furtherance of crimes of violence, specifically the robberies; and knowingly possessed a firearm on multiple dates, despite knowing he had previously been convicted of a crime punishable by a term of imprisonment exceeding one year.
The documents include charges related to the incidents described below:
St. Louis City
October 13, 2021-Gateway National Arch Park armed street robbery at 115 Washington Avenue
October 14, 2021-Attempted robbery of a person on Laclede’s Landing
October 17, 2021-Armed robbery of the T-Mobile at 4142 S. Grand
October 20, 2021-Armed robbery of the Smoothie King at 1211 Pine
October 23, 2021-Armed robbery of the Kaiser Mart at 5008 S. Grand
October 26, 2021-Armed robbery of the Crown Food Mart at 300 S. Jefferson
November 3, 2021-Armed robbery of the Gallery Furniture/Home Accents at 310 N. Sixth St.
November 3, 2021-Armed robbery of the Boost Mobile at 1644 S. Jefferson
November 3, 2021-Armed robbery of the Domino’s Pizza at 1428 N. 13th
St. Louis County
October 25, 2021-Armed robbery of the Metro PCS at 6731 Page
November 5, 2021-Armed robbery of the Vapes and Snacks at 8820 Gravois Rd.
November 10, 2021-Armed robbery of the Cricket Wireless at 1084 Lemay Ferry Rd.
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department, St. Louis County Police Department, Pagedale Police Department, the Federal Bureau of Investigation, and the Federal Park Service.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Missouri, is available on-line at
http://www.justice.gov/edmo
Twitter: @USAO_EDMO
Federal Officials Close the Review into the Death of Everett Palmer Jr.Read the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that there is insufficient evidence to pursue federal criminal civil rights charges against York County Prison personnel related to the death of Everett Palmer Jr.
According to U.S. Attorney John C. Gurganus, yesterday, officials from the department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Pennsylvania notified representatives of the Palmer family to inform them of this decision. Palmer died following an emergency cell extraction after exhibiting self-injurious behavior. The medical examiner determined that his death was caused by complications following an excited state (excited delirium), associated with methamphetamine toxicity, during physical restraint.
Federal authorities examined all of the material and evidence in the State case generated by the Pennsylvania State Police and the Office of the District Attorney of York County (DAO), including statements made by corrections officers, witness statements, video recordings, medical reports, and prison policies and procedures.
The federal review sought to determine whether corrections officers violated federal law by willfully using unreasonable force against Palmer or by acting with deliberate indifference to his known medical needs. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right. To establish willfulness, federal authorities must show that the officer(s) acted with the deliberate and specific intent to do something the law forbids. This is one of the highest standards of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.
After a careful and thorough review into the facts surrounding the incident, federal investigators determined that there is insufficient evidence to prove beyond a reasonable doubt a violation of the federal statute. The evidence, when viewed as whole, is insufficient to establish beyond a reasonable doubt that the use of force by corrections officers was “objectively unreasonable” or that corrections officers acted with deliberate indifference to Palmer’s known medical needs. The evidence is also insufficient to establish that any corrections officer acted with the specific intent to break the law.
Accordingly, the investigation into this incident has been closed. This decision is limited strictly to the department’s inability to meet the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of this incident.
The Justice Department is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
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Federal Jury Finds Sequoyah County Resident Guilty of Five Counts of Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Michael Allen Farris, age 48, of Bunch, Oklahoma, was found guilty by a federal jury of five counts of Sexual Abuse of a Minor in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2243(a), and 2246(2)(A).
The jury trial began with testimony on Monday, November 29, 2021, and concluded on Wednesday, December 1, 2021, with the guilty verdicts. Based on the jury’s verdicts, the defendant is facing up to 15 years of imprisonment for each count.
During the trial, the United States presented evidence that between June 2019 and August 2019, the defendant sexually assaulted the 13-year-old victim.
The guilty verdicts were the result of an investigation by the Sequoyah County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant in this case is a member of a federally recognized Indian tribe and the crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, U.S. District Judge in the United States District Court for the Western District of Oklahoma in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Farris was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Anthony Marek and Assistant United States Attorney Morgan Muzljakovich represented the United States.
Federal Jury Convicts Pharmacy Owner of Conspiracy, Mail Fraud, and Misbranding for Role in Multi-Million Dollar Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. Following a month-long trial, a federal jury convicted Peter Bolos, 44, of Tampa, Florida, of conspiracy to commit health care fraud, 22 counts of mail fraud, and felony misbranding of a medication. Sentencing for Bolos has been set for May 19, 2022 at 10:30 am, before the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
According to court documents and evidence presented at trial, Bolos, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, conspired to defraud pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark out of millions of dollars. PBMs pay pharmacies for prescription claims on behalf of public insurance programs, such as Medicare and Tricare as well as private insurance companies like Blue Cross Blue Shield of Tennessee.
Court documents and evidence at trial further proved that Bolos, Assad, and Palso – who owned Synergy Pharmacy in Palm Harbor, Florida – purchased prescriptions from Scott Roix for $500 apiece. Bolos and Roix disguised these prescriptions’ purchases with bogus marketing agreements. To obtain these prescriptions, Roix used HealthRight’s telemedicine platform to deceive patients into providing HealthRight with their insurance information. Roix then steered doctors to issue prescriptions through HealthRight’s telemedicine platform by falsely telling the doctors the patients had requested the medications. In fact, the medications were selected by Bolos because they were highly profitable.
During the conspiracy, which lasted from May 26, 2015 through April 1, 2018, Bolos paid Roix more than $30,000,000 to buy not fewer than 60,000 prescriptions. Nearly all these prescriptions were issued through HealthRight’s telemedicine platform. The doctors who issued the prescriptions did not know, never met, and never spoke to the patients.
According to court documents, Roix, Assad, Palso, Smith, Maikel Bolos and various associated business entities previously pleaded guilty to their role in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. Sentencing for all the defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo, New York); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorney David Gunn of the Consumer Protection Branch in Washington prosecuted and tried the case.
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Essex County Postal Employee Arrested for Mail TheftRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) employee was arrested today for stealing mail, including stealing credit cards and stimulus checks from the U.S. Department of the Treasury, Acting U.S. Attorney Rachael A. Honig announced.
Parrish Brookins, 29, of East Orange, New Jersey, is charged by complaint with one count of mail theft by a Postal Service officer or employee. He appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and was released on $50,000 bond.
According to documents filed in this case and statements made in court:
From January 2021 to July 2021, certain credit cards addressed to third-party victims and mailed to addresses on postal routes in Verona and Montclair, New Jersey, were stolen on or about the same dates that Brookins was delivering mail on those routes. These credit cards subsequently were activated by Brookins and others and used to make and attempt to make fraudulent purchases in New Jersey and elsewhere. From at least March 2021 to September 2021, Brookins also stole stimulus checks issued by the U.S. Department of Treasury likewise addressed to third-party victims and mailed to addresses on postal routes in Verona covered by Brookins, who then provided these checks to others for fraudulent purposes.
The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine.
Acting U.S. Attorney Honig credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s arrest. She also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, for its assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Employee Sentenced for Stealing $270,000 from Medical PracticeRead the Press Release
INDIANAPOLIS – A Westfield, Indiana man was sentenced to 30 months in federal prison for a years-long scheme to defraud the ophthalmology practice where he worked.
Joshua D. Millspaugh, 42, worked as the practice administrator for Whitson Vision, P.C., with responsibility for payroll processing, purchasing and bill payment. He was paid an annual salary of over $100,000. However, less than a year after starting his employment, Millspaugh began using his access to company accounts to divert money to himself. Over the next five years, through over 500 separate transactions, Millspaugh used company money to make personal purchases, pay personal bills, and send extra payroll checks to his bank account—all of which he concealed with false entries in the company’s books and fictitious justifications when asked about the expenditures.
Dr. William Whitson, the owner and director of Whitson Vision, advised the Court during the sentencing that the loss suffered by him and his business went beyond the financial damage. He explained how Millspaugh’s crimes resulted in long term credit and banking problems for his company, how it significantly lowered the business reputation of his company, and how it left devastating morale problems with other company employees.
Millspaugh pled guilty to charges of Wire Fraud. In sentencing Millspaugh to 30 months in prison, U.S. District Court Judge James P. Hanlon found that Millspaugh had abused a position of trust within Whitson Vision to perpetrate his crime.
The investigation was conducted by the Indianapolis office of the U.S. Postal Inspection Service.
“Fraud on a small business impacts every area of that business,” said U.S. Attorney Zachary A. Myers. “It also breeds mistrust, especially if the fraud is perpetrated by a trusted employee. Mr. Millspaugh exploited his position of trust for purely personal gain, and he is now being held accountable for his actions.”
“The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to advance their fraud schemes,” said Rodney Hopkins, Inspector in Charge of the Detroit Division. “Crimes of these type bring grave financial and personal hardships to their victims. Criminal misuse of the U.S. Mail will not be tolerated, and our agency will continue to go after those who seek to abuse their positions of trust.”
According to Assistant United States Attorney James M. Warden, who prosecuted the case, Millspaugh was ordered to pay $270,000 in restitution and will be federally supervised for 3 following his release from prison.
El Salvadoran National Pleads Guilty to Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that HECTOR RODRIGUEZ-RODRIGUEZ, age 55, pleaded guilty on November 30, 2021 to reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. § 1326(a) and (b)(2).
According to the bill of information, HECTOR RODRIGUEZ-RODRIGUEZ reentered the United States after he was previously deported on October 27, 1992. Furthermore, on or about May 29, 2019, the defendant was convicted of illegal possession of less than two grams of cocaine and aggravated battery in St. Tammany Parish, Louisiana.
HECTOR RODRIGUEZ-RODRIGUEZ faces a maximum term of up to imprisonment of twenty (20) years, a maximum fine of up to $250,000, a maximum term of up to supervised release of three (3) years, and a mandatory $100 special assessment fee.
U.S. District Judge Jay C. Zainey has set sentencing for February 2, 2021.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney M. Irene González is in charge of the prosecution.
East Sparta Woman Sentenced for Stealing $100K from Social Security AdministrationRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Jamie L. Casey, 34, of East Sparta, Ohio, was sentenced today by Judge J. Philip Calabrese to serve three days in prison, two years of post-release supervision and ordered to pay $102,822 in restitution to the Social Security Administration after Casey pleaded guilty to theft of government property in August of 2021.
According to court documents, Casey’s grandmother received Social Security retirement benefits paid to her via direct deposit into an account she co-owned with Casey. From June of 2012 to around June of 2020, and after the death of her grandmother, Casey collected the Social Security benefits and converted the funds to her own use by making electronic withdrawals even though she knew the funds were to terminate upon the death of the intended recipient.
In total, Casey collected $102,822 in benefit payments to which she was not entitled.
This case was investigated by the Social Security Administration Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Jason W. White.
Dunbar Man Pleads Guilty to Defrauding Local NonprofitRead the Press Release
CHARLESTON, W.Va. – Walter Greenhowe, 72, of Dunbar, pleaded guilty today to defrauding a community improvement nonprofit for the Dunbar, Pinewood and Institute areas.
According to the plea agreement and statements made in court, Greenhowe admitted that from 2014 to 2018 while President of the nonprofit, he engaged in a scheme to defraud the organization of approximately $130,349.07. Greenhowe used the nonprofit’s debit card to obtain cash for his personal use from ATMs at various roadside gaming parlors in and around Dunbar. Greenhowe admitted that these transactions were unauthorized and unapproved by the nonprofit. Greenhowe often made these withdrawals late at night or early in the morning and removed cash multiple times a night.
Greenhowe pleaded guilty to three counts of wire fraud and faces up to 60 years in prison when he is sentenced on March 3, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the West Virginia Commission on Special Investigations, the West Virginia State Police, as well as the Intelligence Research Specialist and Litigation Financial Analyst in the United States Attorney’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00133.
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Driver of Tractor Trailer Carrying 69 Undocumented Non-Citizens Pleads GuiltyRead the Press Release
SAN ANTONIO – An El Indio man pleaded guilty today to transportation of undocumented non-citizens.
According to court documents, on March 22, 2021, Luis Enrique De La Cerda, 55, was identified as the driver of a tractor trailer traveling through Pearsall. Witnesses reported to law enforcement that multiple body parts were observed sticking out from the rear of the trailer, including the head of a male child. The tractor trailer parked in an abandoned parking lot near the outskirts of town where De La Cerda opened the rear trailer door, allowing multiple individuals to stream out of the trailer. Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS) and the Pearsall Police Department were at the scene and apprehended De La Cerda. In addition, 69 undocumented non-citizens, including five unaccompanied minors, were detained from the tractor trailer. Many complained of difficulty breathing due to no ventilation and hot temperatures in the trailer.
De La Cerda pleaded guilty today to one count of transporting illegal aliens in violation of 8 U.S.C. § 1324. He is scheduled to be sentenced on March 9, 2022 and faces a maximum sentence of five years in prison. United States District Judge Jason K. Pulliam 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 HSI Special Agent in Charge Shane Folden made the announcement.
HSI, with assistance from DPS and the Pearsall Police Department, is investigating the case.
Assistant U.S. Attorney Matthew W. Kinskey is prosecuting the case.
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Dickenson County Man Sentenced for Possession of Firearms and Methamphetamine While on Federal Supervised ReleaseRead the Press Release
ABINGDON, Va. – A Dickenson County, Virginia man was sentenced today to 130 months of total incarceration for possessing with the intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and violating the terms of his supervised release.
Bernard Anthony Murphy, 57, was released from federal prison on July 29, 2020, approximately five years earlier than expected, due to being granted a compassionate release because of the ongoing COVID-19 pandemic and alleged medical issues. Murphy was placed on a three-year term of supervised release, the first four months of which were to be spent on home confinement.
However, Murphy admitted that in June 2021, less than one year after his compassionate release and while still on federal supervision, he was found in possession of over 17 grams of methamphetamine, marijuana, a Ruger AR-15 rifle, and a Glock 43, 9mm pistol.
He pleaded guilty in August 2021 to one count of possession with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. The court sentenced him today to 106 months of imprisonment on the two new charges and 24 months of imprisonment for violating the terms of his supervised release.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATFE’s Washington Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dickenson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Lena Busscher prosecuted the case.
Del Rio Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DEL RIO – A Del Rio man was sentenced today to 10 years in prison for possessing over a 1,000 images of child pornography.
According to court documents, in July 2018 Homeland Security Investigations (HSI) agents executed a search warrant on the residence of William Read, 71. During the search, investigators seized Read’s desktop computer and related computer media among other things. A forensic examination of the seized items revealed the presence of images and videos of material depicting the sexual exploitation of minors. Read possessed 1,093 images of child pornography. On August 26, 2019, Read pleaded guilty to one count of possession of child pornography.
In addition to the prison term, U.S. District Judge Alia Moses ordered that Read be placed on supervised release for a period of five years after his incarceration and that he pay $105,051.40 in restitution.
“Child sexual exploitation is an intolerable crime,” said U.S. Attorney Ashley C. Hoff. “We continue our vigorous prosecution of child predators to safeguard our children and communities.”
“This sentencing sends the message that we are committed to aggressively pursuing anyone who seeks to exploit children,” said Shane Folden, Special Agent in Charge for HSI San Antonio. “We will continue to dedicate our law enforcement resources to identify and bring to justice predators who traumatize and victimize children."
HSI investigated this case with valuable assistance from the Del Rio Police Department and Val Verde County Sheriff’s Office.
Assistant U.S. Attorneys Rex Beasley, Stephen Kam and Sarah Spears prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Cyber Security Firm Public Affairs Specialist Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Brendan Francis Kavanaugh, age 53, of Fort Meade, Maryland, pleaded guilty today to possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, in May 2020, Kavanaugh communicated with other users on a peer-to-peer file sharing network, the Tor network, under the username “HebeMom”. The Tor network is a computer network available to internet users that is specifically designed to facilitate anonymous communication. It is also commonly used to facilitate the sexual exploitation of minors.
Investigators linked the “HebeMom” usernames online activity to Kavanaugh’s Fort Meade, Maryland address and executed a search warrant at his residence on October 28, 2020. During the search of Kavanaugh’s residence, investigators discovered several electronic devices including an external hard drive. A forensic analysis of the hard drive revealed that Kavanaugh possessed approximately 3,674 images of child sexual abuse material and 9,296 files of child exploitative material, including several images of prepubescent females engaged in sexual conduct with adult males and animals.
As stated in his plea agreement, during an interview with law enforcement Kavanaugh admitted that the encrypted hard drive was his personal device and provided the password for the device. He then informed investigators that he had been using the Tor network since 2016 and accessed sites associated with child pornography under the username “HebeMom”.
Further, Kavanaugh admits that he knowingly possessed child pornography that involved sadistic or masochistic material and material that involved the exploitation of prepubescent minors.
Kavanaugh faces a maximum sentence of 20 years in prison followed by up to a lifetime of supervised release for possession of child pornography. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for February 7, 2022 at 10 a.m.
United States Attorney Erek L. Barron commended the FBI and the FBI's Child Exploitation Operational Unit for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Mary W. Setzer and Trial Attorney Charles Schmitz of the Department of Justice Child Exploitation and Obscenity Section, who are prosecuting the case.
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Correctional Officer at Eastern Correctional Institution Pleads Guilty to Federal Racketeering and Drug ChargeRead the Press Release
Baltimore, Maryland – Maurice Antonio Bull, age 43, of Seaford, Delaware, pleaded guilty today to interstate travel in aid of racketeering and to possession with intent to distribute controlled substances, in connection with Bull accepting bribes to smuggle contraband into Eastern Correctional Institution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services.
“This case demonstrates that we will not tolerate employees in positions of trust violating their oaths. Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Erek L. Barron.
“Once again, DPSCS detectives and intelligence officers built a strong case and worked with our federal partners to bring a dangerous plot to an end,” said DPSCS Secretary Robert Green. “Contraband and compromised employees endanger every single person who lives and works inside of our facilities.”
According to his guilty plea, Bull was a Correctional Officer at the Eastern Correctional Institute (“ECI”), a medium security Maryland Department of Public Safety and Correctional Services prison operated in Westover, Maryland, in Somerset County.
Correctional Officers have a duty to ensure that inmates follow the rules, including, most importantly, the prohibition of criminal activity while incarcerated. Bull admitted that he abused his position of trust as a sworn officer of DPSCS by engaging in illegal activities for the purposes of enriching himself. Specifically, Bull received bribes in exchange for bringing contraband into ECI, including but not limited to Suboxone, heroin, and tobacco for ECI inmates.
For example, as detailed in his plea agreement, in September 2020, an ECI inmate made a phone call, over the recorded jail call system, to his sister to arrange for her to provide a bribe payment to Bull in exchange for Bull smuggling contraband into the prison facility for the inmate. On September 9, 2020, Bull drove from his home in Delaware to Salisbury, Maryland and met with the inmate’s sister in the parking lot of a convenience store. Law enforcement officers observed the inmate’s sister placing a plastic bag inside the passenger window of Bull’s truck. Bull’s truck was subsequently stopped and searched. Officers recovered a plastic bag in the center console that contained approximately 1,153 Suboxone strips, 8.2 grams of a combination of packaging and heroin, and 20.6 grams of a combination of packaging and tobacco. The contraband was individually packaged and labeled with the initials of the ECI inmates who were the intended recipients. Officers also recovered a white envelope in Bull’s pocket which contained a bribe payment of $5,400.
Bull was interviewed and informed law enforcement that in July or August 2020, he was approached by an inmate about smuggling contraband, specifically Suboxone, into ECI in exchange for $2,000 bribe payments. The inmate who approached him was transferred before Bull could provide contraband, but he was subsequently approached by another inmate. Bull admitted that he intended to bring the controlled substances into ECI and to provide them to that inmate and the $5,400 was payment for his agreement to do so. Bull advised law enforcement that he had previously brought contraband into ECI for the inmate, in exchange for $2,000 in cash. On this prior occasion, to obtain the controlled substances and bribe payment, Bull drove from his home in Delaware to Maryland.
Bull faces a maximum sentence of five years in prison for interstate travel in aid of racketeering and a maximum of 20 years in prison for possession with intent to distribute controlled substances. U.S. District Judge Lydia K. Griggsby has scheduled sentencing for February 24, 2022, at 2:00 p.m.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 78 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Lauren E. Perry, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Colville Tribal Member Sentenced to 107 Months for Carjacking Victim at Gunpoint and Unlawful Possession of FirearmsRead the Press Release
Spokane, Washington – Senior United States District Judge Rosanna M. Peterson sentenced Kyle Steven Scott Cate, age 30, an enrolled member of the Confederated Tribes of the Colville Reservation, to 107 months of imprisonment for Carjacking and Felon in Possession of a Firearm following Cate’s guilty pleas to two federal indictments earlier this year.
According to court documents, on April 30, 2020, at 2:30 a.m., Cate began banging on the door of a residence located in Coulee Dam, Washington, on the Confederated Tribes of the Colville Reservation. Cate’s victim, who also is an enrolled member of the Colville Tribe, came to the door, and Cate asked him for a ride to Nespelem, Washington. When the victim declined to give Cate a ride, Cate brandished a snub-nosed pistol at him before stealing his 1998 Black Subaru Legacy at gunpoint. Before leaving, Cate demanded the victim’s keys, pointed a pistol at his face, and said he would shoot him. With Cate’s pistol only 4 to 5 inches away from his face and fearing for his safety, the victim gave up his keys. Cate left in the carjacked Subaru, driving in the direction of Nespelem. His victim called 911.
Within minutes of the 911 call, Colville Tribal Police observed the Subaru Legacy driving toward Nespelem. Police matched the license plate to the victim’s stolen car, and began pursuing Cate. Cate led officers on a chase that lasted approximately 23 miles, during which he reached speeds of approximately 100 miles per hour. After Cate endangered law enforcement, other drivers, and himself for a significant period of time, the engine on the Subaru Legacy failed and Tribal Police were able to stop the carjacked vehicle. During Cate’s arrest, Tribal Police recovered seven .22 caliber bullets from Cate’s pocket. A firearm that met the description given by Cate’s victim was recovered along Cate’s flightpath, consistent with Cate having thrown it from the moving vehicle during the high-speed chase. Cate’s fingerprint was later recovered on the firearm.
Separately, and prior to the carjacking, Cate was found in possession of four stolen firearms in August 2018. Those firearms, which had been stolen during a residential burglary, were recovered from Cate’s home. Cate admitted that he possessed the guns and that he knew they were stolen. At the time he possessed the stolen firearms, Cate had a prior felony conviction for Second Degree Robbery in Okanogan County Superior Court.
United States Attorney Vanessa Waldref commended the joint efforts of law enforcement and emphasized the need to keep Eastern Washington safe and strong. “All people in Eastern Washington deserve to be safe in their homes, whether they live in big cities, small towns, rural communities, or on reservations. The danger inherent to stealing a car at gunpoint was made significantly worse when Mr. Cate led law enforcement on a high-speed chase. He needlessly endangered countless people – including other Tribal members, Tribal law enforcement, innocent bystanders, and himself. His offense may have taken only moments, but it has had a lasting impact on his victim and the community. This case illustrates the good reasons why felons are not legally permitted to possess firearms, and it is alarming that entirely separate from the carjacking conduct, Mr. Cate was in possession of numerous firearms. I am grateful to all of the federal, state, and Tribal officers who investigated the cases against Mr. Cate, and thankful that neither they, nor anyone else, was physically hurt by his actions.”
Donald Voiret, the Special Agent in Charge of the FBI’s Seattle office, echoed the U.S. Attorney, stating: “Mr. Cate’s casual use of violence and blatant disregard for people’s safety indicates that significant time in prison may be the only way to ensure that he is not an ongoing menace to the public.” ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson, joined that sentiment, noting: “Mr. Cate’s dangerous use of firearms in the commission of a carjacking, while also being a felon in possession of other stolen firearms, clearly warrants this significant sentence. ATF will continue to investigate aggressively those who possess and use firearms illegally, including to threaten innocent bystanders as Mr. Cate did.”
The Federal Bureau of Investigation (“FBI”), Bureau of Alcohol Tobacco, Firearms, and Explosives (“ATF”), Colville Tribal Police, and Washington State Patrol investigated these cases, which were prosecuted by Assistant United States Attorney Richard Barker.
Chester County Man Sentenced to 1 ½ Years in Prison for Stealing Pandemic Unemployment Assistance FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jacob Fulton, 33, of Coatesville, PA, was sentenced to one year and six months in prison, five years of supervised release, and ordered to pay full restitution by United States District Judge Eduardo C. Robreno for falsely claiming and taking approximately $32,000 in pandemic unemployment compensation authorized by the CARES Act.
On March 27, 2020, the CARES ACT was enacted and created the Pandemic Unemployment Assistance (“PUA”) program, to provide unemployment benefits to workers who lost their jobs because of the COVID-19 pandemic and who were ineligible for other unemployment compensation. The defendant took advantage of the program by unlawfully submitting fraudulent PUA claims for himself and for inmates of Chester County Prison, knowing that neither he nor these inmates were entitled to these benefits.
In May 2020, the defendant filed a PUA claim for himself knowing that he was not eligible for such benefits because he was not unemployed as a result of the COVID-19 pandemic. After Fulton was arrested and sent to Chester County Prison in July 2020, he continued to submit weekly certifications that he was eligible for these benefits (with the aid of his co-defendant), all while knowing that he was not eligible for these benefits because he was in prison. At the same time, Fulton conspired to file PUA claims on behalf of at least two other inmates and take a cut of the claim payments for himself. In August 2021, the defendant pleaded guilty to charges of mail fraud and conspiracy to commit mail fraud stemming from the scheme to file false PUA claims for himself and others.
“Pandemic Unemployment Assistance funds are intended to help working Americans continue to pay their bills and make ends meet, even when hours and wages have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Fulton fraudulently obtained thousands of dollars in funds that could have helped struggling individuals.”
“The CARES ACT was designed to provide assistance to hard working Americans and their families suffering from financial hardships. Today’s sentence sends the message that the FBI is committed to protecting tax payer funded programs and will aggressively investigate fraudsters like Fulton and his fellow inmates who seek to abuse such programs,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division.
“Fulton thought he could get rich at the expense of Americans who desperately needed the Pandemic Unemployment Assistance,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “His sentence today shows just how much such criminal conduct will not be tolerated. Those contemplating similar conduct should take notice”
“Jacob Fulton engaged in a scheme with his co-defendant to defraud the Pennsylvania Pandemic Unemployment Assistance (PUA) program by obtaining personal information from inmates in Chester County Jail and submitting fraudulent claims for PUA benefits on behalf of those inmates even though they were incarcerated and not able and available to work. The U.S. Department of Labor Office of Inspector General is grateful for our partnerships with the Pennsylvania Department of Labor and our many law enforcement partners. We also want to thank the U.S. Attorney’s Office for their continued efforts to prosecute those who violate public benefit programs and commit fraud,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the U.S. Department of Labor Office of the Inspector General, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.
Cedar Grove Man Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Cedar Grove man pleaded guilty today to federal drug crimes.
According to court documents, between May 29, 2018 and November 7, 2018, Danny Allen Hudson, 62, sold quantities of oxycodone 30mg pills to a person who was working with law enforcement as a confidential informant on five separate occasions. The drug sale occurred at his residence. On November 20, 2018, officers executed a search warrant on Hudson’s residence. Inside the master bedroom, officers found a 30-06 rifle. Hudson admitted to possessing that rifle, despite being a prohibited person because of two prior felony convictions.
Hudson pleaded guilty to two counts of distribution of oxycodone and faces up to 20 years in prison when he is sentenced on February 24, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant U.S. Attorney L. Alexander Hamner is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00087.
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California Tobacco Executive Sentenced to Five Years in Prison for Conspiring to Evade Federal Excise Taxes on Dominican CigarsRead the Press Release
Miami, Florida – A California tobacco company executive was sentenced to 60 months’ imprisonment yesterday for his participation in a fraudulent scheme to avoid the payment of millions of dollars in excise taxes on imported tobacco products.
Akrum Alrahib, 43, of Los Angeles, California, was the President and Owner of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” most of which were imported from the Dominican Republic through Miami.
Previously, Alrahib admitted that he partnered with Gitano Pierre Bryant, Jr., a tobacco importer authorized by the Alcohol and Tobacco Tax and Trade Bureau (TTB), to import large cigars. Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. They consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.
During the course of the scheme, Alrahib paid over $21 million for Dominican tobacco products and received over $700,000 in kickbacks from Bryant.
Alrahib also admitted his participation in a witness tampering scheme, in which he sought to prevent a witness from testifying before a South Florida Grand Jury.
Alrahib previously pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. In addition to a term of imprisonment, Alrahib was ordered to serve an additional three years on supervised release and pay more than $7 million in restitution. The sentence was handed down by District Judge Rodney Smith in Fort Lauderdale.
Bryant, Alrahib’s partner, was charged a separate case (16-cr-20838). He pled guilty, was sentenced to four years in prison, and ordered to pay over $9 million in restitution.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Carrie May, Acting Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Darrell J. Waldon, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.
TTB and IRS-CI investigated this case with the assistance of Homeland Security Investigations in Miami. Assistant United States Attorney Christopher Browne and Jerrob Duffy of the Justice Department’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture component of the case.
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 19-cr-20165.
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Burke County man sentenced to prison for possession of child pornographyRead the Press Release
AUGUSTA, GA: A Burke County man has been sentenced to more than 10 years in federal prison for possessing hundreds of images of child pornography.
William Voss, 38, of Waynesboro, Ga., was sentenced to 121 months in prison after pleading guilty to Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Voss to register as a sex offender, and to serve 25 years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“In coordination with our law enforcement partners, our office will continue to relentlessly protect our most vulnerable citizens,” said Acting U.S. Attorney Estes. “Predators like Voss will be identified and held accountable for their crimes.”
As described in court documents and testimony, Georgia Bureau of Investigation (GBI) agents were alerted by the National Center for Missing and Exploited Children in May 2020 to contraband images identified as originating from Voss’ Burke County residence. A subsequent search of devices seized from the home found hundreds of images of child pornography.
Voss previously received a dishonorable discharge from the U.S. Navy after being court-martialed for possessing child pornography.
“The GBI will continue to work tirelessly to protect innocent child victims of online exploitation,” said GBI Director Vic Reynolds. “We are grateful for the relationships we maintain with our local and federal partners to bring these offenders to justice.”
The case was investigated by the GBI and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Baltimore man admits to drug trafficking chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dontaz Lavan Brandon, of Baltimore, Maryland, has admitted to a drug a charge, United States Attorney William J. Ihlenfeld, II announced.
Brandon, 23, pleaded guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Brandon admitted to working with another to distribute fentanyl in January 2020 in Berkeley County.
Brandon faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated. The task force consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Baltimore Man Sentenced to Four Years in Federal Prison for Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Avon Allen, age 36, of Baltimore, Maryland to four years in federal prison, followed by three years of supervised release, for possession of a stolen firearm.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on January 20, 2020, Allen had an argument with a store owner in Baltimore, Maryland and threw a beverage at the store owner in the process. Soon after, Baltimore City Police Department officers responded to the reported assault. Officers reviewed the store’s surveillance footage, which showed that the individual involved in the altercation was wearing a black skull cap, a blue, black, and gray puffy jacket, a gray hoodie, blue jeans, and blue sneakers.
Later that day, an officer found Allen wearing the same clothes as the individual in the video surveillance footage on the corner of W. Saratoga Street and N. Paca Street. Allen briefly got into a vehicle before seeing an officer and fleeing on foot. During his apprehension, Allen resisted arrest and threw a stolen 9 mm pistol loaded with six rounds of ammunition. On his person, Allen also possessed a pocket-knife, oxycodone, and small amounts of eutylone or “MDMA”. Allen agrees that he knowingly possessed a stolen firearm.
United States Attorney Erek L. Barron praised the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Brandon Moore and Special Assistant United States Attorney Annie McGuire, who prosecuted the case.
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Baltimore Felon Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
Baltimore, Maryland – Julian Gray, age 49, of Baltimore, Maryland, pleaded guilty yesterday to federal charges of possession with intent to distribute fentanyl and to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Gray’s guilty plea, in 2020 the DEA began surveilling street-level drug activities and making undercover purchases of fentanyl. During the surveillance, Gray was identified as a potential co-conspirator when he was seen meeting with drug dealers who sold narcotics to the undercover officers.
On September 15, 2020, DEA agents saw Gray carry a black bag from his residence to his car and drive away. Gray’s car was stopped for a traffic violation later that day in a parking lot in the 2400 block of Belair Road in Baltimore. A K-9 unit was nearby to scan the car and the dog alerted to the driver’s door. Law enforcement searched the car and found a black bag (different bag from the first observation) in the trunk containing: a .9mm semi-automatic handgun, loaded with 12 .9mm hollow-point bullets; and two large plastic bags containing 1,090 gel caps of what was determined to be more than 40 grams of a mixture of fentanyl, 4-ANPP, and tramadol. A search of Gray recovered $1,640 in cash.
Gray admitted that he possessed the fentanyl mixture with the intent to distribute it and that the cash constituted drug proceeds. Further, Gray was on parole at the time for a 1991 felony conviction for murder in the second degree, for which he was sentenced to 30 years in prison and was in custody until 2013. Gray knew that as a result of that conviction, he was prohibited from possessing a firearm or ammunition.
Gray and the government have agreed that, if the Court accepts the plea agreement, Gray will be sentenced to no more than eight years in federal prison. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for February 10, 2022 at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joan C. Mathias, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Armed robbers of DeKalb County cell phone stores sentenced to federal prisonRead the Press Release
ATLANTA - Dontavious Matthews and Quentin Truley have been sentenced for committing an armed robbery of a cell phone store in Brookhaven, Georgia. Truley was also sentenced for committing an armed robbery of a cell phone store in Lithonia, Georgia, 11 days later.
“These defendants showed no regard for the lives of the customers and employees they held at gunpoint while committing these armed robberies,” said U.S. Attorney Kurt R. Erskine. “Due to the strong partnership of federal and local agencies through the Project Safe Neighborhood Program, these defendants were convicted of these violent crimes and will now serve significant sentences in federal prison.”
“Violent conduct like the armed robberies in this case will not be tolerated in our community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our local law enforcement partners in helping to convict these offenders at the federal level, where they face stiffer penalties and no opportunity for parole.”
“The successful prosecution of this case is a direct reflection of the hard work and dedication of the Peace Officers and Public Servants involved during the investigation,” stated Brookhaven Police Chief Gary Yandura. “We are very happy with the outcome of the court proceedings and hope that the victims in these cases find some peace knowing the offenders are off the streets.”
“The arrests and sentencing on this case is a great example of how collaboration between federal and local partners help solve cases and bring them to successful conclusions,” said Chief Mirtha V. Ramos, DeKalb County Police Department. “By working together, we can continue to make our communities safer one arrest at a time.”
According to U.S. Attorney Erskine, the charges and other information presented in court: On December 17, 2017, Matthews and Truley entered a cellular phone store in Brookhaven. A few minutes later, Truley pointed a gun at store employees while Matthews ordered everyone to the ground. Matthews then forced the store manager to go to the back room and open the safe. Truley held the employees and customers at gunpoint while Matthews emptied the safe of cell phones, and both defendants fled the scene. The robbery was captured on surveillance cameras and Truley and Matthews left their fingerprints at the store.
On December 28, 2017, Truley and an unknown accomplice entered a cellular phone store in Lithonia, brandished firearms, and ordered employees and customers to the ground. Truley then forced an employee to the back of the store to obtain cell phones from the safe. Unbeknownst to Truley, the store manager placed a tracker phone with the other stolen phones, which later led police to Truley hiding in some bushes at a nearby apartment complex.
Dontavious Matthews, 31, of Decatur, Georgia, has been sentenced to nine years, four months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $19,321. Matthews was found guilty by a jury of one count of Hobbs Act armed robbery on August 27, 2021.
Quentin Truley, 27, of Decatur, Georgia, was sentenced to 19 years and three months in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $40,400.91. Truley pleaded guilty on August 3, 2021, to two counts of Hobbs Act armed robbery and two counts of possession of a firearm during a crime of violence.
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.
This case was investigated by the Federal Bureau of Investigation, with valuable assistance provided by the City of Brookhaven Police Department and the DeKalb County Police Department.
Assistant U.S. Attorneys Leanne Marek and Michael Herskowitz 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.
Anchorage Couple Sentenced to Prison for Distributing Drugs and Money LaunderingRead the Press Release
ANCHORAGE – Two people were sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to federal prison for distributing drugs and money laundering.
May Saelee, aka “The First Lady,” 47, was sentenced to 40 months in federal prison followed by five years of supervised release. She pleaded guilty in August 2019 to drug conspiracy and money laundering charges. Saelee’s husband, Cher Vang, aka “The President,” 47, was sentenced to 57 months in federal prison followed by five years of supervised release. Vang pleaded guilty in July 2019 to drug conspiracy and money laundering charges. The couple was arrested in August 2018 as part of a months-long federal investigation into a drug ring operating out of Mountain View.
According to court documents, between August 2011 and 2018, Saelee and Vang distributed methamphetamine from their home and other locations in Anchorage. Through multiple drug sales during this seven-year period, they sold more than 306 grams of actual methamphetamine. The couple then used the proceeds of their drug sales to purchase various items including jewelry and personal property. Additionally, between March 2015 and August 2018, Saelee and Vang structured bank deposits totaling more than $150,000 into their accounts to avoid federal banking requirements and to conceal that the source of the money was from drug proceeds.
As part of the plea agreement, Saelee and Vang will forfeit to the United States any property derived from their illegal activities including but not limited to: jewelry, money, guns and personal property.
“With today’s sentencing, we have put an end to another drug trafficking ring responsible for distributing large quantities of methamphetamine in Anchorage and the surrounding area,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “These dangerous drugs are destructive poisons that threaten the health and safety of our communities. We will continue to work together with our law enforcement partners to ensure that drug traffickers are held responsible for the harm they cause.”
“Drug trafficking and money laundering cause immense harm to our communities,” said Bret Kressin, Special Agent in Charge of IRS Criminal Investigation (IRS-CI), Seattle Field Office. “IRS-CI will continue to use our expertise to investigate those who knowingly traffic these damaging substances and will continue to bring these individuals to justice.”
The Internal Revenue Service – Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the Alaska State Troopers (AST) investigated the case.
Assistant U.S. Attorney Stephan Collins prosecuted the case.
This case is a result of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Ammunition Smugglers Sentenced to PrisonRead the Press Release
TUCSON, Ariz. – Mauricio Robles, 26, of Phoenix, Arizona, was sentenced yesterday by U.S. District Judge Rosemary Marquez to 37 months in prison for attempting to smuggle ammunition from the United States into Mexico. The court previously sentenced Robles’ co-defendant, Arlando Torres, 36, of Texas, to 70 months in prison on September 30, 2021.
On May 4, 2020, Arizona Department of Public Safety troopers conducted a traffic stop on a vehicle Torres was driving. Robles was the sole passenger and the owner of the vehicle. Inside the vehicle, DPS troopers found almost 6,000 rounds of ammunition and thirty ammunition magazines. Torres and Robles intended to provide the ammunition to other individuals who would then smuggle the ammunition from the United States into Mexico on behalf of a criminal organization, in exchange for payment.
Homeland Security Investigations conducted the investigation in this case, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Arizona Department of Public Safety. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 20-2122-TUC-RM
RELEASE NUMBER: 2021-091_Torres# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Alton Man Convicted at Trial of Drug and Firearm OffensesRead the Press Release
PEORIA, Ill. – Qwanell S. Jones, 27, of the 3000 block of Alby Street in Alton, Illinois, was convicted on November 30, 2021, following a two-day trial in Peoria of possession of methamphetamine with the intent to distribute it, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. A sentencing hearing has been scheduled on April 11, 2022, in Urbana, Illinois.
Evidence presented at trial established that on March 12, 2020, the Raymond, Illinois Police Department conducted a traffic stop of Jones in Raymond (approximately 60 miles from Alton) while he was driving a Cadillac car with no valid registration and with a suspended driver’s license. During a search of the car following the stop and a later search of Jones at the county jail, officers located a total of approximately 858 methamphetamine pills in the car and on Jones’ person and a Smith and Wesson, Governor model, .45 Long Colt caliber/.410 gauge revolver that was fully loaded with six rounds of .410 shotgun ammunition and located in the glove compartment of the car along with most of the methamphetamine. Evidence further established that Jones had previously been convicted of three felony offenses in 2011 and 2013 in Madison County, Illinois for attempted armed robbery, unlawful possession of a controlled substance, and armed robbery, for which he received sentences of probation and eight years of imprisonment in the Illinois Department of Corrections.
At sentencing, Jones faces statutory penalties of up to 30 years imprisonment for the drug offense, up to 10 years of imprisonment for the felon-in-possession offense, and a mandatory consecutive term of 5 years to life imprisonment for the possession of a firearm in the furtherance of the drug trafficking crime offense; a fine of up to $750,000; and a minimum of 6 years to life of supervised release.
The case was investigated by the Raymond, Illinois Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Timothy Bass is representing the United States in the prosecution.
3 Men Sentenced to 10 Years in Prison for Kidnapping and Torturing Government InformantRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that EDWARD HERNANDEZ was sentenced today in Manhattan federal court to 10 years in prison for his role in kidnapping and torturing a Government informant. WALKIN FRANCISCO ARIAS VILLAR and JOSIEL GUSTAVO MARTINEZ GUZMAN were each sentenced, on September 16, 2021, and September 22, 2021, respectively, to 10 years in prison for their roles in the offense. HERNANDEZ and ARIAS VILLAR pled guilty on April 6, 2021, and MARTINEZ GUZMAN pled guilty on March 23, 2021, before U.S. District Judge Paul A. Crotty, who also imposed the sentences.
U.S. Attorney Damian Williams said: “Edward Hernandez now joins his codefendants in being sentenced to spend a decade in federal prison for his admitted role in the brutal and violent kidnapping, torture, and extortion of their victim. This case illustrates yet again how violence goes hand in hand with the illegal drug trade.”
According to documents filed in this case and statements made in court proceedings:
ARIAS VILLAR and MARTINEZ GUZMAN forced a Government informant (the “Victim”) into their car after the Victim – who was acting at the direction of law enforcement – arrived at a meeting in the Bronx, purportedly to retrieve $178,000 in narcotics proceeds to be laundered. HERNANDEZ, who was driving, sped away after the Victim was forced into the car.
MARTINEZ GUZMAN and ARIAS VILLAR physically assaulted the Victim in an effort to extort the Victim into transferring money to their co-conspirators. MARTINEZ GUZMAN burned the Victim with cigarettes, beat him with a handgun, and threatened the Victim’s life. ARIAS VILLAR pointed the handgun at the Victim repeatedly, threatened the Victim’s life, and demanded that the Victim pay them. ARIAS VILLAR broke the Victim’s nose when he threw a laptop computer at his face. HERNANDEZ, ARIAS VILLAR, and MARTINEZ GUZMAN apparently did not know that the Victim was a Government informant, but sought repayment for narcotics proceeds lost to law enforcement seizures. The Victim, fearing for his life, transferred approximately $16,000 of his own money to accounts his abductors supplied.
Drug Enforcement Administration (“DEA”) agents located the car in Fairfield, Connecticut, approximately three hours after the Victim was abducted. MARTINEZ GUZMAN, ARIAS VILLAR, and HERNANDEZ were arrested and the Victim was brought to a hospital for treatment.
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HERNANDEZ, 42, ARIAS VILLAR, 31, and MARTINEZ GUZMAN, 29, were each convicted of one count of conspiracy to commit extortion. In addition to their prison terms, HERNANDEZ, ARIAS VILLAR, and MARTINZ GUZMAN were each sentenced to three years of supervised release. Charges remain pending against Dacheng Zhen.
Mr. Williams praised and thanked the DEA for its outstanding work locating and safely recovering the Victim.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Aline Flodr, Stephanie Lake, and Sheb Swett are in charge of the prosecution.
20-Year-Old Felon Sentenced to 57 Months for Possessing RifleRead the Press Release
Memphis, TN – Ay’rhogunce Miller, 20, has been sentenced to federal prison for being a felon in possession of a firearm while under indictment. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on May 22, 2020, the Memphis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the United States Marshals Service, were working on a fugitive investigation of Ay’rhogunce Miller, also known as "Jacolbi Miller," and another individual who was a relative of Miller. The agents received information that Miller, and the other individual were in an apartment on East Barbara Circle, which belonged to Miller’s girlfriend.
While inside the residence, agents located and detained the other individual, along with Miller. A search of the bedroom revealed an American Tactical MK22 .22 caliber rifle; the serial number had been obliterated and it was equipped with an extended capacity magazine.
Further investigation disclosed that Miller had previously been convicted of felony breaking and entering in the State of Arkansas and was currently on probation. Miller also had outstanding warrants for 1st degree battery in Arkansas. Further, Miller was facing a pending indictment for theft of property – firearm, and possession of a firearm by a felon in Crittenden County Circuit Court, Marion, Arkansas. While in custody in Arkansas, Miller waived his Miranda rights and admitted to possessing the rifle which he purchased the previous week.
As a result of his criminal history, Miller is prohibited by federal law from possessing firearms or ammunition.
On August 17, 2021, the defendant entered a guilty plea to both counts of the indictment; being a felon in possession of a firearm and receiving a firearm while under indictment for a felony.
On December 1, 2021, U.S. District Judge Thomas L. Parker sentenced Miller to 57 months in federal prison to be followed by three years of supervised release. This incarceration is consecutive to his criminal offenses in Arkansas. There is no parole in the federal system.
The Memphis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Marshals Service investigated this case.
Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for prosecuting violent crimes and firearms offenses in federal court.
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11 Defendants Indicted for Trafficking Cocaine in Northeastern OklahomaRead the Press Release
The Drug Enforcement Administration (DEA) and local, state and federal task force partners arrested nine individuals this week alleged to have been part of a drug trafficking organization that transported bulk quantities of cocaine from Mexico into the Northern District of Oklahoma for redistribution, announced Acting U.S. Attorney Clint Johnson.
Those arrested along with two others were named in an indictment that was unsealed Wednesday afternoon as defendants began making initial appearances in federal court. The defendants were charged with drug conspiracy, specifically possessing with intent to distribute and to distribute 500 grams or more of cocaine starting as early as January 2020, and other crimes associated with the conspiracy.
“This organization is estimated to have transported and sold more than 10 kilograms of cocaine a month in Oklahoma,” said Acting U.S. Attorney Clint Johnson. “Ten different law enforcement agencies joined forces to investigate and take down this alleged drug trafficking organization. I appreciate their commitment to protecting our communities from the effects of the illicit drug trade.”
“Dismantling criminal organizations such as this one cannot be successful without DEA Tulsa’s partnership with the law enforcement and citizenry of Oklahoma,” said Eduardo A. Chávez, Special Agent in Charge of DEA operations in Oklahoma. “These individuals are being held responsible for their actions. Whether it is a gram or a kilogram, cocaine is not produced in Tulsa, and DEA Tulsa will never cease its efforts to rid these drugs from our streets.”
According to the indictment, an unknown defendant called “Chuy” led the drug trafficking organization from Mexico. Chuy directed shipments of multi-kilogram quantities of cocaine from Mexico to Oklahoma and ensured the drug proceeds were sent back to Mexico. He coordinated with alleged Tulsa-based distributor and money launderer Manuel Gustavo Cardenas-Lozoya who sold bulk quantities of cocaine to mid-level dealers in Tulsa for redistribution. The two would then coordinate the transport of sizeable drug profits from Tulsa back to Mexico. Chuy remains at large. Cardenas-Lozoya was arrested Thursday in Atlanta.
At Chuy’s direction, Alexis Perez-Camacho and Juan Luis Lopez-Carreon transported the cocaine from Oklahoma City to Tulsa so it could be distributed by Cardenas-Lozoya and mid-level dealers. Perez-Camacho also stored cocaine and drug proceeds at his residence.
Danahe Cervantes, Cardenas-Lozoya’s girlfriend, helped facilitate the drug sales by acting as a translator.
Mid-level dealers who purchased the cocaine from Cardenas-Lozoya for redistribution in Oklahoma were Reinaldo Gustavo Martinez, Miguel Angel Gabino-Trujillo, Christopher Holdman, and Yovani Soto.
Aren Yoana Lopez-Gomez and Audrina Denis Lopez-Gomez helped Cardenas-Lozoya laundered money and assisted him in his distribution efforts.
The conspirators used Messenger and cells phones to allegedly discuss the amount of cocaine, price and payment arrangements, distribution times and locations, settling debts owed, and money laundering.
The arrests and indictment are part of an Organized Crime Drug Enforcement Task Force operation titled Operation Snow Hunter.
The Drug Enforcement Administration led the operation with assistance from the Tulsa Police Department, Broken Arrow Police Department, Oklahoma Highway Patrol, Tulsa County Sheriff’s Office, Delaware County District Attorney’s Office, Oklahoma Bureau of Narcotics and Dangerous Drugs, Miami Police Department, Bureau of Indian Affairs, and the Colorado Police Department.
An indictment is merely an accusation. Defendants are presumed innocent unless and until proven guilty.
Defendant
Role in Conspiracy
Charges
Status
Chuy, unknown
directed the DTO
-Drug Conspiracy
At large
Manuel Gustavo Cardenas-Lozoya 39, of Broken Arrow
Tulsa-based distributor and money launderer
-Drug Conspiracy
-Possession of Cocaine with Intent to Distribute;
-Distribution of Cocaine;
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony;
-Money Laundering Conspiracy
Federal custody
Alexis Perez-Camacho
23, of Indianapolis, Indiana
transported cocaine
-Drug Conspiracy
-Possession of Cocaine with Intent to Distribute;
-Distribution of Cocaine;
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony
Federal custody
Juan Luis Lopez-Carreon
age unknown, of Oklahoma City
transported cocaine
-Drug Conspiracy
-Possession of Cocaine with Intent to Distribute;
-Distribution of Cocaine
Federal custody
Danahe Cervantes
23, of Tulsa
facilitator/
translator
-Drug Conspiracy
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony
Federal custody
Reinaldo Gustavo Martinez
44, of Tulsa
mid-level dealer
-Drug Conspiracy
-Possession of Cocaine with Intent to Distribute
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony
Federal custody
Miguel Angel Gabino-Trujillo
38, of Tulsa
mid-level dealer
-Drug Conspiracy
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony
Federal custody
Christopher Holdman
46, of Tulsa
mid-level dealer
-Drug Conspiracy
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony
At large
Yovani Soto
36, of Sand Springs
mid-level dealer
-Drug Conspiracy
-Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony
Federal custody
Aren Yoana Lopez-Gomez, 33, of Tulsa
money launderer
-Drug Conspiracy
- Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony;
-Money Laundering Conspiracy
Federal custody
Audrina Denis Lopez-Gomez
34, of Colorado Springs, Colorado
money launderer
-Drug Conspiracy
Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony;
-Money Laundering Conspiracy
Federal custody
Wednesday 1 December 2021
Wyoming County Man Going to Prison for Attempting to Have Sex with 11-Year Old GirlRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Daniel Hays, 42, of Bliss, NY, who was convicted of attempted receipt of child pornography, was sentenced to serve five years in prison and 10 years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that during April and May of 2021, Hays engaged in sexually explicit online and text communications with an individual who he believed to be an 11-year-old girl. In reality, the child was an undercover New York State Police Investigator working with the Department of Homeland Security. During the conversations, Hays discussed having sex with the child, and asked the child to produce and send to him naked photographs. On May 11, 2021, Hays traveled approximately two hours from Bliss to the child’s home in the Western District of New York, in order to have sex with the child. Hays was arrested upon his arrival at the meeting place, at which point he was found to be in possession of candy that he purchased as a gift for the child.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Barry Chase and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
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Woman pleads guilty to scamming SSA and FEMA out of hundreds of thousands of dollarsRead the Press Release
ATLANTA - Ivie Shevon Sajere pled guilty to a money laundering conspiracy that defrauded the Social Security Administration (“SSA”) and the Federal Emergency Management Agency (“FEMA”) out of nearly $1,000,000. The conspiracy involved the false filing of thousands of online applications for SSA retirement benefits and FEMA disaster benefits using stolen personal information.
“This was a massive fraud that impacted two government agencies and harmed thousands of victims across the country,” said U.S. Attorney Kurt R. Erskine. “The defendant thought she could avoid detection because the scheme was so complex. She was wrong. Through the coordination with multiple federal law enforcement agencies, we were able to identify Sajere and bring her to justice.”
“Sajere and her co-conspirators, brazenly used the stolen personal information of innocent people and abused SSA’s online application process to defraud the government of nearly a million dollars,” said Gail S. Ennis, Inspector General for the Social Security Administration. “This guilty plea demonstrates the commitment we have to ensuring the integrity of SSA’s eServices and to work with our law enforcement partners to hold perpetrators accountable for their crimes. I appreciate the coordinated efforts of the Department of Homeland Security Office of the Inspector General, and U.S. Postal Investigation Services, and other law enforcement partners, in working with us to dismantle this conspiracy.”
“Funds fraudulently obtained from FEMA and the SSA deprive deserving recipients and communities truly in need,” said Dr. Joseph V. Cuffari, Inspector General for DHS’s Office of Inspector General. “This outcome and guilty plea speaks to the strength of the successful law enforcement partnerships between the Department of Homeland Security Office of Inspector General, the Department of Justice, the Social Security Administration and the U.S. Postal Investigation Services.”
“In partnership with our law enforcement partners, we combined our investigative and legal resources to stop this fraudulent activity that affected numerous identity theft victims along with two government agencies that provide aid to those in need,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors are dedicated to protecting the mail from all those who seek to use the mail system for illegal purposes and this case should serve as warning to anyone considering similar conduct that those actions will result in criminal consequences.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Beginning in approximately June 2017 until September 2018, the defendant and her husband, Neville Sajere, both Nigerian nationals who engaged in marriage fraud in an unsuccessful attempt to become US citizens, participated in a money laundering scheme that defrauded nearly a million dollars from SSA and FEMA.
The scheme involved unknown individuals filing applications for Social Security retirement benefits and/or FEMA disaster relief benefits using stolen personal information. The individual victims whose personal information was stolen were often individuals highly acclaimed in their fields. It appears that these individuals were targeted because, even though they were of retirement age, they had not filed for SSA retirement benefits and did not need disaster benefit relief. Thus, the criminals had a better chance of getting the applications approved. Specifically, the victims included a movie director, an award-winning journalist, the daughter of a legendary movie director, and a highly esteemed academic.
Once an application was approved, the fraudsters directed that the funds be deposited onto a Green Dot debit card opened using other stolen personal information. As soon as the money was credited to the Green Dot debit card, the defendant generated payments through Square, Stripe and Paypal to Nevada Bridge TV, a Nigerian streaming service/television production company owned by the defendant’s husband; BAGMA, an African gospel award show business owned by the defendant’s husband; and Shevonz, a clothing store owned by the defendant.
Sajere pleaded guilty to one count of violating Title 18, United States Code, Section 1956(h) (conspiracy to commit money laundering.) She also agreed to pay $949,616.40 in restitution to SSA and FEMA.
Sentencing for Ivie Shevon Sajere, 37, of Suwanee, Georgia, is scheduled for March 8, 2022, at 10:30 a.m., before U.S. District Judge Timothy C. Batten Sr.
This case is being investigated by the Social Security Administration Office of the Inspector General, Department of Homeland Security Office of the Inspector General, and U.S. Postal Investigation Services.
Special Assistant U.S. Attorney Diane C. Schulman, and Assistant U.S. Attorney Samir Kaushal are prosecuting 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.
Wisconsin Rapids Man Sentenced to 6 Years for Distributing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Benjamin T. Mann, 40, Wisconsin Rapids, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 6 years in prison followed by 15 years of supervised release for distributing child pornography. Mann pleaded guilty to this charge on September 9, 2021.
In July 2020, law enforcement executed a search warrant at a home in Ohio. In reviewing devices found during the search, they discovered that Mann sent the Ohio resident child pornography and communicated with him about sexually assaulting children. In addition, the investigation revealed that Mann posted images of child pornography and discussed assaulting children in Kik chat rooms with that resident and others.
Judge Peterson said that the discussions about sexually assaulting children were an aggravating factor and that the sentence imposed would protect the community for approximately 20 years.
The charge against Mann was the result of an investigation conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal of Investigation, and the Wood County Sheriff’s Office. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Whitehall Man Sentenced for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBANY, NEW YORK - Shane Smith, age 24, of Whitehall, New York, was sentenced today to 41 months in prison and three years of supervised release for unlawfully possessing two short-barrel rifles, and unlawfully possessing hundreds of rounds of ammunition while being a felon.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previously entered guilty plea, Smith admitted that on September 16, 2016, he was convicted in the Northern District of New York of the felony offense of unlawfully possessing a machine gun. He was released from prison in April 2018.
Smith further admitted that on December 15, 2020, U.S. Probation Officers searched his Whitehall residence, and found two rifles whose barrels were each less than 16 inches in length, and hundreds of rounds of ammunition, all of which was illegal for Smith to possess.
This case was investigated by the United States Probation Office for the Northern District of New York, FBI, and ATF, and was prosecuted by Assistant U.S. Attorney Rick Belliss.
VA employee sentenced for stealingRead the Press Release
ATLANTA - Kevin Rumph, Jr., has been sentenced to prison for stealing medical supplies from the U.S. Department of Veteran Affairs.
“It is disappointing when someone entrusted to help care for our veterans instead steals from them,” said U.S. Attorney Kurt R. Erskine. “As a veteran, Rumph should have been a compassionate servant, not a thief.”
“This defendant was held accountable for his role in a long-term fraud scheme in which he used his position at VA to selfishly enrich himself,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG will remain vigilant alongside our law enforcement partners ensuring that VA employees who would steal funds intended for the care of our nation’s veterans are investigated and prosecuted.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Kevin Rumph, Jr., a U.S. Air Force veteran, was employed as a Purchasing Agent by the U.S. Department of Veteran Affairs (VA) and had worked there since 2012. He worked in the VA’s Prosthetic Department at its Community Based Outpatient Clinic (CBOC) located in Fort McPherson, Atlanta, Georgia.
Rumph’s job duties included receiving prosthetic request forms and prescriptions from physicians, therapists, patients, and patient representatives, and reviewing those forms for proper documentation and justification of the items, services, and durable medical equipment being requested. Rumph prepared purchase orders for a wide variety of prosthetic and sensory aids devices, medical supplies, and durable medical equipment and coordinated the delivery of medical equipment and supplies through contracted providers utilizing his VA-issued purchase card.
In addition to his legitimate purchases for veterans’ health care needs, Rumph used his government-issued purchase card to make unauthorized purchases of Continuous Positive Airway Pressure (CPAP) supplies from a supplier in Alabama. He then stole and sold the CPAP supplies to a vendor located in Ohio. CPAP supplies are medical products used to treat obstructive sleep apnea.
Between 2013 to 2021, Rumph made hundreds of unauthorized CPAP supply purchases costing the VA in excess of $1.9 million.Rumph, 41, of Fairburn, Georgia, was sentenced to two years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,041,733.62. Rumph was convicted on these charges on August 16, 2021, after he pleaded guilty.
This case is being investigated by the U.S. Department of Veterans Affairs, Office of Inspector General.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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.