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19 January 2022
Essex County Man Admits Role in Attempted Carjacking, Discharging Firearm, and Drug Possession with Intent to DistributeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in an attempted carjacking in Newark, during which a firearm was discharged, and possessing heroin and cocaine base with intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Antwan Malone, 34, of Newark, pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to one count of attempted carjacking, one count of using and carrying a firearm, which was brandished, during and in relation to the attempted carjacking; and one count of possession with intent to distribute heroin and cocaine base.
According to documents filed in this case and statements made in court:
On Feb. 22, 2021, law enforcement officers responded to the area of the I-78 West entrance ramp and Irvine Turner Boulevard in Newark on a report of an attempted carjacking with a weapon. They learned that Malone had pulled up beside a BMW M5 SUV that was stopped at a stop light and blocked the BMW’s ability to enter I-78. Malone approached the vehicle brandishing a handgun, and then pointed the gun at the driver’s face while repeatedly telling the driver to either exit the vehicle or Malone would shoot them. The driver was able to escape by ramming the BMW into Malone’s vehicle and entering the I-78 entrance ramp. Malone fired two shots at the BMW.
Malone also admitted today that on. Jan. 12, 2021, he possessed cocaine base and heroin with intent to distribute.
The count of attempted carjacking carries a maximum potential sentence of 15 years in prison. The count of discharging of a firearm during a crime of violence is punishable by a mandatory minimum of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges. The count of possessing heroin and cocaine base with intent to distribute carries a statutory maximum prison sentence of 20 years and a maximum fine of $1 million, twice the gross profits or other proceeds to the defendant, whichever is greater. Sentencing is scheduled for May 23, 2022.
U.S. Attorney Sellinger credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys George L. Brandley of the Health Care Fraud Unit and DeNae M. Thomas of the Violent Crimes Unit in Newark.
Elkton Man Pleads Guilty to Production of Child Pornography of Two Minor Females Entrusted in His CareRead the Press Release
Baltimore, Maryland – Johnny William Kyte, Jr., age 62, of Elkton, Maryland, pleaded guilty yesterday to production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; the Cecil County State’s Attorney James Dellmyer; and Chief Carolyn Rogers of the Elkton Police Department.
According to his guilty plea, on September 10, 2020, the Elkton Police Department responded to a complaint reporting that images of child pornography had been located within Kyte’s residence. Kyte resided at his Elkton, Maryland residence for over 20 years. However, at the time that the complaint was reported, Kyte was not residing at his residence as he was serving a 36-month jail sentence for a third-degree sex offense at the Ceil County Detention Center.
After the execution of numerous search warrants, the Elkton Police Department and the Department of Homeland Security Investigations discovered several digital devices controlled and owned by Kyte that contained images of child pornography. The devices included a 1 Terabyte USB external hard drive and a 128 Megabyte SD card.
Evidence recovered from the devices revealed that from August 13, 2014 to July 4, 2017, Kyte produced sexually explicit images of two prepubescent females. Kyte used a variety of devices to produce the images including at least two digital cameras, a cell phone camera, and other devices. The child pornographic images depicted the genitalia of two prepubescent females and contained various identifying home items within Kyte’s residence in the background of the pictures. The minors depicted in the images had been entrusted in his care at the time the images were produced.
Kyte admitted that he employed, used, persuaded, induced, enticed, and coerced the two minor victims to participate in the sexually explicit conduct for the purpose of producing child pornography.
Kyte faces a minimum sentence of 15 years in federal prison and a maximum sentence of 30 years in federal prison followed by up to lifetime of supervised release for production of child pornography. U.S. District Judge Catherine C. Blake has scheduled sentencing for April 22, 2022 at 9:15 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI, the Office of the State’s Attorney for Cecil County, and the Elkton Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Duey and Colleen McGuinn, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Detroit City Councilman Andre Spivey Sentenced to Prison for Bribery ConspiracyRead the Press Release
DETROIT - Detroit City Councilman Andre Spivey, 48, of Detroit, was sentenced to 24 months in prison today for conspiring with a member of his staff to commit bribery by accepting over $35,000 in bribe payments in connection with the City Council’s oversight of towing in Detroit, United States Attorney Dawn N. Ison announced today.
According to court records, while serving as an elected member of the Detroit City Council, Andre Spivey accepted $35,900 from an undercover federal law enforcement officer and a confidential source of information for the FBI. On eight separate occasions between February 2018 and February 2020, Spivey, or a member of his staff identified as “Public Official A,” accepted bribe payments amounting to thousands of dollars from the undercover agent or the confidential source, all in connection with towing issues pending before the City Council. For example, on October 26, 2018, Spivey met with the undercover agent and the confidential source at the Side Street Diner in the City of Grosse Pointe, Michigan. During that meeting, Spivey accepted $1,000 in cash from the undercover agent and another $1,000 in cash from the confidential source. The payments were made to Spivey seeking Spivey’s assistance with a proposed towing ordinance pending before the City Council. As another example of the corrupt payments, on February 21, 2020, the confidential source gave $8,000 in cash to Public Official A, and the undercover agent gave Public Official A $4,000 in cash. Public Official A took the money knowing that it was given for the benefit of Spivey and in exchange for Spivey’s assistance with towing issues pending before the City Council.
Spivey served on the Detroit City Council from 2009 until September 2021, when he resigned from office immediately after pleading guilty in this case.
Spivey was the first case charged and first conviction of the government’s investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters. So far, five men have been charged in the investigation, and two have pleaded guilty.
Ison was joined in the announcement by Josh Hauxhurst, Acting Special Agent in Charge of the Michigan Field Office of the Federal Bureau of Investigation.
United States Attorney Ison said, “Public corruption undermines the faith of the people in their leaders. Public officials who take bribes will be punished, and I am determined to take every action to root out corruption within the City of Detroit or anywhere else in this district where we find it.”
It is the mission of the FBI's Public Corruption Task Force to thoroughly investigate the conduct of elected officials who - like Mr. Spivey - abuse their positions of power and the public's trust for their own personal gain," said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI's Detroit Field Office. "Today's sentencing serves as a warning to all public officials who allow greed to triumph over duty, that federal agents will never cease in their relentless pursuit for justice."
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Frances Carlson.
Defendant Who Stole Veteran and Social Security Benefits Sentenced to Federal PrisonRead the Press Release
Miami, Florida – A 27-year-old Georgia man who redirected the benefits of veterans and Social Security Administration beneficiaries to accounts that his co-conspirators set up and controlled has been sentenced to 78 months in federal prison, to be followed by five years of supervised release. The defendant was also ordered to pay more than $1.3 million in restitution to his victims.
Defendant Jamare Mason was a member of a conspiracy that obtained the personal information (including names, dates of birth and Social Security numbers) of disabled veterans and Social Security beneficiaries. The conspirators used this information to fraudulently open bank accounts and prepaid debit cards in the victims’ names. They also forged documents in the victims’ names that directed the U.S. Department of Veterans Affairs and the Social Security Administration to deposit benefit payments into those fraudulent accounts, instead of the victims’ legitimate bank accounts.
Mason, together with other co-conspirators, withdrew these funds from ATMs and banks throughout South Florida and Georgia for their own personal use. Much of the funds were ultimately funneled to the architects of the scheme in Jamaica.
Over the course of five years, from 2012 to 2017, members of the conspiracy attempted to redirect over $1.8 million in benefits from more than a hundred disabled veterans and Social Security beneficiaries. Although several of these attempts were blocked, the defendants’ scheme resulted in the actual loss of over $1 million, money that was diverted from disabled veterans and Social Security beneficiaries. In each instance, the federal government reimbursed these victims for the full amounts of their stolen benefits.
In November 2021, Mason pled guilty to conspiring to commit bank and wire fraud. U.S. District Judge Raag Singhal, who sits in Ft. Lauderdale, imposed Mason’s sentence.
U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez; Special Agent in Charge David Spilker of the Department of Veterans Affairs, Office of Inspector General’s (VA-OIG) Southeast Field; Special Agent in Charge Rodregas W. Owens, Social Security Administration Office of the Inspector General (SSA-OIG); and Inspector in Charge Tommy D. Coke, U.S. Postal Inspection Service (USPIS), Atlanta Division made the announcement.
U.S. Attorney Juan Antonio Gonzalez commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the Department of Veterans Affairs’ Office of the Inspector General, United States Postal Inspection Service, Homeland Security Investigations, and the Social Security Administration’s Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lois Foster-Steers and Sajjad Matin. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.
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-60313.
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Defendant Pleads Guilty in Manhattan Federal Court to Armed Robbery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VICTOR RIVERA pled guilty to participating in a conspiracy to commit Hobbs Act robbery between October 2019 and November 2020. RIVERA is scheduled to be sentenced on April 28, 2022, by U.S. District Judge Alvin Hellerstein.
U.S. Attorney Damian Williams said: “As he has now admitted, Victor Rivera committed a year-long spree of armed robberies and attempted robberies of jewelers and other owners of luxury watches, threatening his victims with guns and, during the course of one robbery, shooting a victim. Now Rivera awaits sentencing for this terrifying conduct.”
According to the Superseding Indictment, statements made in court, as well as other publicly filed documents in this case:
From at least in or about October 2019 up to and including November 2020, VICTOR RIVERA, and others known and unknown, agreed to rob victims of luxury watches worth up to hundreds of thousands of dollars each. The watches owned by victims targeted in the robberies included Richard Mille, Rolex, Audemars Piguet, and Patek Philippe watches owned by jewelers as part of the jewelers’ businesses based in Manhattan’s Diamond District. RIVERA used guns to commit several of the robberies, and in one robbery, shot a victim, who survived.
The eleven robberies and attempted robberies included the following:
- On October 3, 2019, RIVERA and a co-conspirator robbed a jeweler in Long Island City, New York, of, among other things, a Richard Mille watch worth over $250,000.
- On October 25, 2019, RIVERA and a co-conspirator robbed a jeweler in Jamaica, New York, of, among other things, a Rolex watch worth over $150,000.
- On December 10, 2019, RIVERA and two co-conspirators robbed a jeweler in Brooklyn, New York, of, among other things, a Patek Philippe watch worth over $160,000 and a diamond necklace worth over $77,000. During the robbery, a firearm was shown to the victim.
- On January 14, 2020, RIVERA and a co-conspirator robbed a jeweler in Rego Park, New York, of, among other things, a Richard Mille watch worth over $500,000.
- On February 16, 2020, RIVERA and a co-conspirator robbed a jeweler in Jamaica Estates, New York, of, among other things, an Audemars Piguet watch worth over $28,000.
- On February 20, 2020, RIVERA and a co-conspirator robbed an individual in Long Island City, New York, of, among other things, an Audemars Piguet watch worth over $125,000.
- On June 11, 2020, RIVERA and a co-conspirator robbed a jeweler in Brooklyn, New York, of, among other things, a Richard Mille watch worth over $148,000. During the robbery, a firearm was shown to the victim and a victim was shot.
- On July 6, 2020, RIVERA and a co-conspirator robbed a jeweler in Hoboken, New Jersey, of, among other things, a Richard Mille watch worth over $81,000. Following the robbery, RIVERA and others transported the stolen watch from New Jersey to New York.
- On July 20, 2020, RIVERA and a co-conspirator participated in an attempted robbery of a jeweler in Queens, New York, attempting to steal a Richard Mille watch worth over $180,000.
- On August 2, 2020, RIVERA and a co-conspirator robbed an individual in the vicinity of Englewood Cliffs, New Jersey, of, among other things, a Richard Mille watch worth over $250,000. During the robbery, a firearm was shown to a victim. Following the robbery, RIVERA and others transported the stolen watch from New Jersey to New York.
- On October 27, 2020, RIVERA and a co-conspirator robbed a jeweler in the vicinity of Woodbury, New York, of, among other things, an Audemars Piguet watch worth over $26,000 and assorted jewels and gold links worth over $60,000. During the robbery, a firearm was shown to a victim.
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RIVERA, 30, of Brooklyn, New York, pled guilty to one count of conspiracy to commit Hobbs Act robbery, which carries a maximum prison term of twenty years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the New York City Police Department. Mr. Williams also thanked the Bergen County Prosecutor’s Office, the Englewood Cliffs Police Department, the Weehawken Police Department, and the Nassau County Police Department for their assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Mathew Andrews, Andrew K. Chan, and Celia Cohen are in charge of the prosecution.
Defendant Charged in $1.9 Million Covid-19 Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Jonathan Mellone, Special Agent in Charge of the New York Regional Office of the U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Daniel B. Brubaker, Inspector in Charge, New York Division of the United States Postal Inspection Service (“USPIS”), and Sharon MacDermott, Special Agent in Charge of the New York Regional Office of the U.S. Social Security Administration Office of Inspector General (“SSA-OIG”), announced today the unsealing of a complaint charging YOHAURIS RODRIGUEZ HERNANDEZ with conspiracy to commit wire fraud, conspiracy to commit theft of government benefits, and aggravated identity theft in connection with a COVID-19 unemployment benefit scheme that attempted to steal more than $1.9 million from the New York State Department of Labor (“NYS DOL”) and various other states’ agencies tasked with the administration of unemployment benefits. YOHAURIS RODRIGUEZ HERNANDEZ was arrested this morning in Goshen, New York, and will be presented later today before United States Magistrate Judge Paul E. Davison.
U.S. Attorney Damian Williams said: “As alleged, the defendant participated in a scheme to fraudulently obtain COVID-19 unemployment benefits under the names and social security numbers of at least 100 other people, which attempted to steal more than $1.9 million and resulted in the fraudulent disbursement of more than $500,000. The defendant is now in custody and facing serious federal charges.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own. Fraud against the Unemployment Insurance Program distracts state workforce agencies from ensuring benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with our law enforcement partners to investigate those who exploit the Unemployment Insurance Program.”
USPIS Inspector in Charge Daniel B. Brubaker said: “This defendant allegedly took advantage of the urgent need to assist those struggling financially during the coronavirus pandemic; allegedly stealing identities and using those identities to file for unemployment benefits in a scheme to enrich their own lifestyle while others suffered. Postal Inspectors and their law enforcement partners are committed to bring those to justice who break the law, and in this case justice has been served.”
SSA-OIG Special Agent in Charge Sharon MacDermott said: “Today’s arrest demonstrates that pursuing and prosecuting those who allegedly abuse the identities of innocent people and damage the integrity of the Social Security number for their own selfish gain remains a priority for us. We are committed to working with our law enforcement partners, and I thank New York Department of Labor, Department of Labor, Office of the Inspector General, United States Postal Inspectors, Homeland Security Investigations, the New York Police Department, and the Yonkers Police Department for their efforts in this major investigation. I also thank the U.S. Attorney’s Office for pursuing justice in this case.”
As alleged in the Complaint:[1]
From February 2020 through December 2020, YOHAURIS RODRIGUEZ HERNANDEZ and a co-conspirator (“CC-1”) engaged in a scheme to obtain COVID-19 unemployment benefits through the fraudulent filing and verification of applications using the names and social security numbers of at least 100 other people. Law enforcement agencies were first alerted to the scheme after YOHAURIS RODIRGUEZ HERNANDEZ and CC-1 fled a Yonkers hotel in December 2020 leaving behind in their previously occupied room over 500 pieces of NYS DOL mail containing information and NYS DOL-issued debit cards for approximately 76 individuals. Over the course of the relevant time period, YOHAURIS RODRIGUEZ HERNANDEZ and CC-1 exchanged text messages, images, and other communications that included, among other things, personal identifying information—such as names, social security numbers, and dates of birth—that were used in connection with the filing and verification of fraudulent applications for unemployment benefits. The scheme resulted in fraudulent claims for approximately $1.9 million and the fraudulent disbursement of over $500,000 in COVID-19 unemployment benefits.
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YOHAURIS RODRIGUEZ HERNANDEZ, 40, is charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) conspiracy to commit theft of government benefits, which carries a maximum sentence of 10 years in prison, and (3) aggravated identity theft, which carries a mandatory two-year consecutive sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the DOL-OIG, the USPIS, the SSA-OIG, the NYS DOL, the City of Yonkers Police Department, Homeland Security Investigations, and the New York City Police Department. Mr. Williams noted that the investigation is ongoing.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Cedar Rapids Man Receives 140 Years in Federal Prison for Child Sexual Exploitation OffensesRead the Press Release
A man who sexually exploited two girls and committed child pornography offenses was sentenced on January 18, 2022, to 140 years in federal prison.
Nathan Nosley, age 30, of Cedar Rapids, Iowa, received the sentence after a June 9, 2021 jury verdict finding him guilty of sexual exploitation of children, distribution of child pornography, receipt of child pornography, three counts of possession of child pornography, and accessing child pornography.
The evidence at trial showed that, between 2018 and 2020, Nosley persuaded, induced, and enticed two girls to produce and send him pornographic images of themselves. Nosley also distributed child pornography to others, used cell phone apps to receive child pornography, used a cell phone to access child pornography, and possessed child pornography on a cell phone, on a memory card, and in an e-mail account. The evidence at trial and sentencing also showed that, prior to these offenses, defendant sexually abused a seven-year-old-girl.
Nosley was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Nosley was sentenced to 1,680 months’ imprisonment. He was also ordered to make $12,000 in restitution to four victims depicted in child pornography he possessed. He also must serve a five-year term of supervised release after the prison term, and he must comply with all sex offender registration and public notification requirements.
“This case is a tragic example of the dangers children face on the internet.” said United States Attorney Sean Berry. “Child predators are constantly trying to manipulate kids into having sex or providing sexually explicit photos. We all must do our parts to prevent these crimes. Parents and loved ones should talk to kids about the dangers lurking on the internet and monitor what kids are doing online.”
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, the Iowa State Patrol, and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-101.
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Cane Valley Kennels Dog-Fighting Trainer and Breeder Sentenced to Five Years ImprisonmentRead the Press Release
MACON, Ga. – A well-known dog-fighting trainer and breeder, who owned Cane Valley Kennels, was sentenced to the statutory maximum of five years in prison resulting from an investigation into a significant multi-state dog fighting and cocaine trafficking ring.
Vernon Vegas, 49, of Suwanee, Georgia, was sentenced to serve 60 months in prison to be followed by three years of supervised release and a $10,000 fine by U.S. District Judge Tilman E. “Tripp” Self, III on Tuesday, Jan. 18, after previously pleading guilty to conspiracy to participate in an animal fighting venture. Additionally, pursuant to his plea agreement, Vegas agreed to forfeit $116,819 in cash seized during the investigation.
“Vernon Vegas has received the maximum prison sentence for training others in the brutal and bloody business of dog fighting, a world that fosters a multitude of other dangerous criminal activity,” said U.S. Attorney Peter D. Leary. “Our office, working alongside local, state, and federal law enforcement, will hold individuals and groups that participate in illegal dog-fighting accountable for their crimes.”
“Vernon Vegas is being held accountable for his violent, illegal and inhumane actions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case illustrates that dog-fighting is intimately connected with the underworld of drugs and organized crime, and that the Department of Justice will investigate and prosecute it to the fullest extent of the law.”
According to court documents, law enforcement investigated a criminal organization involved in both cocaine distribution and organized dog fighting based out of Roberta, Georgia, which extended into North Georgia, Florida and Alabama from May 2019 until Feb. 2020. In Feb. 2020, law enforcement executed 15 residential search warrants and seized more than 150 dogs that were being used for organized dog fighting.
Between Oct. 1996 and Feb. 2020, Vegas, the owner of Cane Valley Kennels, bred, trained, sold and transported dogs for the purpose of the dog fighting, including Grand Champion “Baby Gracie,” Champion “Son of Sam 2XBis,” Champion “Spider,” Champion “Bucky Mike,” Champion “Bear,” Champion “Kocky Mike,” Champion “Fantasmin,” Champion “Julie the Great,” and one-time winner, “Brenda.” As part of his business, Vegas designed and offered a seven-week “keep” where he trained dogs for animal fighting ventures, prepared on-line pedigrees for the fighting dogs bred and trained at Cane Valley Kennels, provided advice to his co-conspirators on how to train dogs for purposes of engaging in animal fighting ventures, and kept a multitude of training and conditioning equipment including slat mills, chains, a staple gun, hanging weight scales, break sticks, flirt poles and various medicines to treat injuries or disease sustained by dogs made to fight. Between Jan. 2017 and Feb. 2020, Vegas attended dog fights with co-conspirators Derrick Owens and Christopher Raines at locations in the Middle District of Georgia and advised Owens on various matters related to preparing dogs for animal fighting.
The case was investigated by the Drug Enforcement Administration, The United States Department of Agriculture, Office of the Inspector General (USDA-OIG), U.S. Marshals Service, The Department of Justice, Environment and Natural Resources Division (ENRD), Georgia Bureau of Investigation (GBI), Bibb County Sheriff’s Office, Crawford County Sheriff’s Office, Houston County Sheriff’s Office, Merriweather County Sheriff’s Office, Peach County Sheriff’s Office, Taylor County Sheriff’s Office, Webster County Sheriff’s Office, Byron Police Department and the Fort Valley Police Department.
Assistant U.S. Attorney Will Keyes with the U.S. Attorney’s Office for the Middle District of Georgia and Trial Attorney Banu Rangarajan with the Department of Justice, Environmental Crimes Section prosecuted the case.
Canadian National Pleads Guilty to Sexually Abusing Minors on the Bois Forte ReservationRead the Press Release
MINNEAPOLIS – A Canadian national pleaded guilty to abusive sexual contact with two minors at the Fortune Bay Resort and Casino on the Bois Forte Indian Reservation, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on June 22, 2018, Brady John Hillis, 32, a citizen of Canada, was at the Fortune Bay Resort and Casino on the Bois Forte Indian Reservation. Hillis was captured on Fortune Bay’s security surveillance video engaging in sexual contact with two minor victims who were under 12 years of age.
Hillis pleaded guilty yesterday before Chief U.S. District Judge John R. Tunheim to two counts of abusive sexual contact with a child under 12 years of age. A sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted by the FBI and the Bois Forte Police Department.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
Cambridge Man Arrested on Child Pornography ChargeRead the Press Release
BOSTON – A Cambridge man was arrested and charged today in connection with purchasing child pornography with digital currency from the dark web.
David H. Chang, 27, was charged with one count of receipt of child pornography. Following an initial appearance this afternoon before U.S. District Court Magistrate Judge Marianne B. Bowler, Chang was detained pending a hearing which is set for Jan. 21, 2022.
According to the charging documents, between on or about April 2021 and January 2022, Chang used digital currency to purchase child pornography from the dark web. A search of Chang’s apartment this morning resulted in the recovery of electronic devices onto which Chang allegedly downloaded the child pornography he purchased. Additionally, Chang admitted to agents that he bought child pornography from a site on the dark web.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Homeland Security Investigations in New Haven (Conn.) provided valuable assistance. Assistant U.S. Attorney Benjamin Tolkoff of Rollins’ Major Crimes Unit is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
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 locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The 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.
Cody Man Arrested After Escaping CustodyRead the Press Release
United States Attorney Bob Murray announced today that PHILLIP AARON DOBBINS, 44, of Cody, Wyoming was arrested on January 5 on a charge of escape from custody and appeared before Chief United States Magistrate Judge Kelly H. Rankin and pleaded not guilty to the charges. A trial has been set for March 14, 2022, and Dobbins was remanded to the custody of the United States Marshals Service.
The indictment alleges that on or about October 5, 2021, Dobbins escaped from the custody of The Life House of Sheridan, Wyoming, a residential treatment center, which had been ordered by Chief United States Magistrate Judge Kelly Rankin through an order of detention pending trial issued on October 5, 2021 in connection with felony charges pending in United States v. Phillip Aaron Dobbins, 21-CR-84-F.
Dobbins faces up to five years imprisonment, up to three years of supervised release and a $100 special assessment.
This crime is being investigated by the United States Marshals Service. Assistant United States Attorney Timothy J. Forwood is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 21-cr-84-NDF
Brockton Man Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced yesterday for his role in a conspiracy to distribute fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 31, was sentenced by U.S. District Court Judge Patti B. Saris to 42 months in prison and six years of supervised release. In July 2021, Monteiro pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl.
In 2019 and 2020, law enforcement conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. In December 2019, Monteiro worked with co-defendant Christian Collins to distribute 20 grams of fentanyl to a cooperating witness and undercover police officer at a location in Plympton. At the time of the offense, Monteiro was on probation for a prior Plymouth Superior Court conviction for kidnapping and aggravated assault. Monteiro was also previously convicted twice in state court of possession with intent to distribute cocaine and heroin and possession with intent to distribute marijuana.
On Dec. 10, 2021, Collins was sentenced by Judge Saris to five years in prison and four of supervised release.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; East Bridgewater Police Chief Paul O’Brien; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Bridgeport Man Sentenced to 3 Years in Federal Prison for Trafficking NarcoticsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that KEVIN LUCAS, also known as “Dutch,” 62, of Bridgeport, was sentenced today via videoconference by U.S. District Judge Janet C. Hall to 36 months of imprisonment, followed by three years of supervise release, for trafficking narcotics.
According to court documents and statements made in court, between May and August 2019, law enforcement made a series of controlled purchases of redistribution quantities of heroin from Lucas. Lucas was arrested on August 22, 2019, and a search of his residence on that date revealed additional distribution quantities of heroin, approximately 139 grams of crack cocaine, approximately 365 grams of cocaine, items used to process and package narcotics, a 9mm handgun, two loaded magazines, ammunition, and $35,220 in cash.
On September 21, 2021, Lucas pleaded guilty to possession with intent to distribute, and distribution of, heroin.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force, including participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, East Haven, West Haven, Branford, Ansonia, Meriden, Middletown, Naugatuck and Waterbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Berkeley County man indicted on drug and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Craig Fletcher, of Bunker Hill, West Virginia, was indicted today on drug and firearms charges, United States Attorney William Ihlenfeld announced.
Fletcher, 53, was indicted today on one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Five Grams or More of Methamphetamine Hydrochloride, aka “Ice”,” one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone,” one count of “Possess with Intent to Distribute Eutylone,” one count of “Possess with Intent to Distribute Five Grams or More of Methamphetamine Hydrochloride, aka “Ice,” and one count of “Possession of a Firearm During and in Relation to a Drug Trafficking Crime.” Fletcher is accused of trafficking methamphetamine, also known as “ice,” and Eutylone from January 2020 to June 2021 in Berkeley and Morgan Counties. Fletcher is also accused of having a .380 caliber firearm during a drug crime.
Fletcher faces at least five years and up to 40 years of incarceration for counts one and four, faces at least five years and up to life incarceration for count five, and faces up to 20 years of incarceration for counts two and three. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the Northwest Virginia Regional Drug and Gang Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Auburn Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Michael L. Placencia, 53 years old, of Auburn, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute more than five grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Placencia was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, on September 7, 2020, Placencia, was approached by the Dekalb County Sheriff’s Department after causing traffic to become congested by failing to move to the far right of the road. During the encounter, police checked the VIN number on Placencia’s moped and found that it was previously reported stolen. Placencia indicated to law enforcement that he had something illegal on him which turned out to be eleven bags of methamphetamine, $674 cash, a digital scale with residue, a glass smoking device, and a red straw containing residue. Subsequent lab analysis revealed the substance to be methamphetamine, 95% pure with a weight of 32.4 grams.
This case was investigated by the Drug Enforcement Administration with the assistance of the Dekalb County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Brent Ecenbarger.
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Armed Pharmacy Robbery Results in More Than Seven Year Sentence for Vallejo PerpetratorRead the Press Release
SAN FRANCISCO – Lembrent Rubin was sentenced today in United States District Court to 89 months in federal prison after pleading guilty to robbery of a pharmacy and to brandishing a firearm during the robbery, announced United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) San Francisco Field Division Special Agent in Charge Patrick T. Gorman. The sentence was handed down by United States District Judge Charles R. Breyer.
Rubin, 37, of Vallejo, pleaded guilty on October 13, 2021. In a memorandum filed for the sentencing hearing, the government described the crime of Sunday, October 14, 2018. That morning, a pharmacist showed up for work at his pharmacy located in a large grocery store in San Francisco. Rubin was seated alone in the pharmacy’s waiting room. As the pharmacist opened the pharmacy door with his key, the pharmacist turned his back on Rubin. When the pharmacist turned the key, Rubin forced his way into the pharmacy, pushing the pharmacist until they were both inside and behind the main counter. Nobody could see in as the shades were shut. The pharmacist spun around and saw Rubin brandishing a handgun. Rubin demanded drugs and held a black bag. The pharmacist opened the locked cabinet where controlled prescriptions were secured. He began placing bottles of pills into the black bag. A pharmacy alarm system sounded, and Rubin reached into the cabinet and swept more pill bottles into his bag. Rubin fled the pharmacy and the grocery store, taking with him several hundred tablets of oxycodone and generic Vicodin, Adderall, and Ritalin.
Approximately two weeks later Rubin was located and arrested. Officers who arrested him seized a loaded .40 caliber Glock pistol from his waistband. A search of his apartment turned up more ammunition, including a loaded pistol magazine, and pills with imprints that matched the imprints on pills stolen from the pharmacy.
In addition to imposing the 89 month prison term, United States District Judge Charles R. Breyer sentenced Rubin to a three year term of supervision upon his release from prison.
Rubin was in custody at the sentencing hearing. He is now being transferred in custody to face firearm and vehicle theft charges filed in Solano County Superior Court which arose from an arrest that followed the arrest in this case.
Assistant U.S. Attorneys Casey Boome and Sailaja M. Paidipaty prosecuted the case with the assistance of Beth Margen and Ralph Bancshstubbs. The prosecution is the result of an investigation by ATF and the San Francisco Police Department.
18 January 2022
Waterbury Man Sentenced to 5 Years in Prison for Downloading Thousands of Child Sex Abuse ImagesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that MICHAEL SCHMEER, 52, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by five years of supervised release, for downloading thousands of child sex abuses images and videos over the internet.
According to court documents and statements made in court, an investigation revealed that an IP address at Schmeer’s residence was being used to download child sex abuse images and videos from a peer-to-peer file sharing network. On August 12, 2020, investigators conducted a court-authorized search of Schmeer’s residence and seized computer equipment, including multiple external storage devices. Schmeer, who was present during the search, was arrested on state charges after he admitted to investigators that he downloaded and possessed child pornography. Analysis of the seized storage devices revealed more than 54,000 images and 5,000 videos depicting the sexual abuse of children.
On August 4, 2021, Schmeer pleaded guilty to one count of receipt of child pornography.
Schmeer, who has released on bond since his federal arrest on April 6, 2021, is required to report to prison on February 18.
This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police, Watertown Police Department and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Brendan Keefe.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Wasilla Doctor Sentenced for Illegal Prescriptions that Resulted in Five DeathsRead the Press Release
ANCHORAGE – A Wasilla, Alaska, medical doctor was sentenced in federal court by Chief U.S. District Judge Sharon L. Gleason to 34 months in prison followed by three years of supervised release and fined $25,000 for illegally dispensing and distributing controlled substances to patients in his medical practice at the Camelot Family Health Clinic.
According to court documents, David Chisholm, 64, illegally prescribed his patients thousands of pills of highly addictive controlled substances, including oxycodone, methadone, hydrocodone, morphine, tramadol, fentanyl, hydromorphone and buprenorphine. An extensive undercover investigation revealed that Chisholm routinely distributed the controlled substances without administering a medical exam and without a legitimate medical purpose. He also did not develop pain management plans for his patients and his record keeping was virtually non-existent.
Between January 2014 and October 2019, Chisholm wrote 20,524 prescriptions to approximately 350 patients amounting to nearly 2 million total dosage units of various opioids including more than 7,500 prescriptions for oxycodone, 3,600 prescriptions for methadone and 1,300 prescriptions for hydrocodone. Chisholm frequently wrote numerous prescriptions to patients under multiple variations of their names, allowing them to continue to refill their drugs without raising red flags from Medicare or their private insurance. At one point Chisholm’s practices became so egregious that Walmart refused to continue filling prescriptions he had written. In response, he instructed his staff to tell patients to go to other pharmacies. Chisholm often prescribed combinations of medications, including concurrent opioids, benzodiazepines, sedatives and carisoprodol. These combinations increased the likelihood of drug abuse and overdose among his patients. As part of the plea agreement, Chisholm acknowledged that his prescriptions were a significant contributing factor in the overdose deaths of five of his patients between 2016 and 2018.
“Dr. Chisholm’s reckless conduct reflects a shocking disregard for the welfare of his patients. Nothing can excuse his opioid prescribing practices in light of what is today universally understood about the risks of opioid use disorder and opioid overdose,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “The United States Attorney’s Office, DEA, and FBI – together with our state and local partners – will investigate and prosecute any medical professional who jeopardizes the health and safety of patients with opioids and other addictive substances.”
“Dr. Chisholm intentionally distributed highly addictive and potentially lethal dosages and quantities of opioids to his patients,” said Frank A. Tarentino III, Special Agent in Charge of the DEA’s Seattle Field Division. “Today’s sentence sends a strong message that the DEA and law enforcement partners will fight the opioid epidemic through coordinated enforcement operations targeting medical professionals like Dr. Chisholm who betray their profession and use their prescription pads to further addiction and add fuel to the opioid epidemic.”
Chisholm pleaded guilty in June 2021 and is required to surrender his Alaska State medical license.
The U.S. Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), the Wasilla Police and the Alaska State Board of Pharmacy investigated this case as part of the Alaska Health Care Fraud Task Force (AHCFTF), a partnership of local, state, federal, and private agencies focused on the investigation of health care fraud, waste, and abuse in Alaska or affecting Alaskan interests. For more information and how to report health care fraud, please visit the FBI’s AHCFTF website: https://www.fbi.gov/contact-us/field-offices/anchorage/alaska-health-care-fraud-task-force
Assistant U.S. Attorney Chris Schroeder prosecuted the case.
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Washington County Man Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
PITTSBURGH, PA - A Washington County resident has been sentenced in federal court to 41 months’ imprisonment followed by five years of supervised release on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Eugene Reddick, 39, formerly Dunlevy, PA 15321.
According to information presented to the court, Reddick conspired with other persons to distribute powder cocaine in Clairton, Pennsylvania, between 2015 and 2017. Reddick acquired the cocaine from Jamie Lightfoot, Jr. and other members of Lightfoot’s drug trafficking organization.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Reddick.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Urbana Man Pleads Guilty to Drug Trafficking and Unlawful Possession of FirearmsRead the Press Release
URBANA, Ill. – An Urbana, Illinois, man, Curtis Coleman, 38, of the 1800 block of Oliver Drive, pleaded guilty on January 14, 2022, to possession of controlled substances with the intent to distribute and possession of firearms and ammunition by a convicted felon. Sentencing is scheduled for June 6, 2022, at 1:30 p.m. in the Urbana federal courthouse.
In court before Magistrate Judge Eric I. Long, Coleman admitted that he had been distributing drugs out of an apartment in the 1800 block of Oliver Drive in Urbana and that he had possessed multiple firearms. During the hearing, the government stated that during the execution of a search warrant at the apartment, officers with the Champaign County Street Crimes Task Force recovered just under 200 grams of cocaine, as well as marijuana and crack cocaine. Coleman also had two firearms, an extended magazine for one of the guns, and ammunition in various calibers near the drugs. Coleman was on parole for a separate felony offense at the time.
Coleman remains in the custody of the U.S. Marshals pending sentencing.
Coleman was charged via indictment in July 2017 with possession of controlled substances with the intent to distribute and possession of firearms and ammunition by a convicted felon. A federal grand jury returned a superseding indictment including those same charges in November 2019.
Coleman faces up to 20 years of imprisonment on the drug trafficking charge and at least 10 years of imprisonment on the firearms charge. However, if he is determined to be an Armed Career Criminal, he will face a mandatory minimum of 15 years' imprisonment and up to life imprisonment on the firearms charge.
The Urbana Police Department, Champaign Police Department, and Champaign County Sheriff’s Office investigated the case. The Champaign County State’s Attorney Office also worked in coordination with the U.S. Attorney’s Office in bringing these charges. Assistant U.S. Attorney Bryan Freres represents the government in the prosecution.
USP Canaan Inmate Sentenced to 31 Months’ Imprisonment for Stabbing Another InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrew Daniels, age 41, an inmate at United States Penitentiary Canaan (USP Canaan), Waymart, Pennsylvania, was sentenced on January 14, 2022, to 31 months’ imprisonment by United States District Court Judge Malachy E. Mannion for assaulting another inmate.
According to United States Attorney John C. Gurganus, Daniels, while an inmate at USP Canaan, repeatedly stabbed another inmate with a sharp object. The victim was treated for eight puncture wounds around his upper chest and abdomen. The sentence will run consecutively to a 47-year sentence the defendant is already serving.
The matter was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Buchanan prosecuted the case.
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U.S. Citizen Charged with Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
A dual Iranian-U.S. citizen was arrested Friday in Chicago, on criminal charges related to his alleged conspiracy to illegally export U.S. goods, technology and services to end users in Iran, including the government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA).
According to court documents, Kambiz Attar Kashani, 44, conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the U.S. government recognizes is an agency of the government of Iran.
“Kashani and his co-conspirators procured U.S.-origin goods and information technology for ultimate use in Iran, including for use by the Government of Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Kashani repeatedly lied to numerous U.S. companies to conceal his intention to ship items to Iran, allowing him to illegally obtain information technology for use by the CBI and other Iranian entities. The Justice Department continues to do everything it can to end the illegal export of items that threaten our national security.”
“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the CBI, which has been designated by the United States government as acting for or on behalf of terrorist organizations,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn. Kashani’s arrest underscores the unrelenting resolve of this office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”
“Technology illegally transferred to Iran from the United States could be used by terrorists, which is why the FBI and its partners devote significant resources to these investigations,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “Those doing the bidding for Iran in the United States should expect the full force of our law enforcement and Intelligence Community partners.”
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC). The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal. From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to ship the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.
Kashani is charged with one count of conspiracy to unlawfully export goods to Iran, and will make his initial court appearance in the Northern District of Illinois this afternoon. If convicted, he faces a maximum penalty of 20 years’ imprisonment and a $1 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa for the Eastern District of New York; Assistant U.S. Attorney Shawn McCarthy for the Northern District of Illinois; and Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Collects Nearly $8 Million in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
OKLAHOMA CITY – The United States Attorney’s Office for the Western District of Oklahoma collected $7,929,582 in criminal and civil actions and through asset forfeiture in Fiscal Year 2021, announced United States Attorney Robert J. Troester
Of the total amount, $5,324,445 was collected in criminal actions and $746,873 was collected in civil actions. In addition, through working with partner agencies and divisions, the U.S. Attorney’s Office collected $1,858,264 through asset forfeiture. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
"Despite the many challenges faced during the pandemic, our collection efforts demonstrate our continued commitment to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said United States Attorney Robert J. Troester. "I am proud that my team uses the tools Congress has provided to seek to recover money owed to victims in criminal cases and return taxpayer funds in civil cases."
Highlights of the Western District of Oklahoma’s FY2021 collection efforts include:
- $2,411,672.06 in criminal restitution was collected from Rocky Lemon. Lemon was convicted in 2007 of health care fraud and money laundering.
- A $325,000 Controlled Substances Act settlement in June 2021 with Albert T. Nguyen, M.D., owner, and sole physician at the Budget Medical Clinic in Oklahoma City. The United States alleged that Dr. Nguyen failed to issue prescriptions in the usual course of professional practice when he left pre-signed, blank prescriptions for non-physicians in his office to prescribe controlled substances to patients in violation of the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations. https://www.justice.gov/usao-wdok/pr/oklahoma-city-doctor-pays-325000-settle-civil-penalty-claims
- $113,000 in criminal restitution was collected in August 2021 from Stephanie Cunningham through bank garnishment. Cunningham was convicted in April 2021 of health care fraud and wire fraud.
- $107,386.31 in criminal restitution was collected from Gregory Lynn Cobbs through garnishment of Oklahoma County Sheriff’s Sale proceeds due his business, GL Cobbs and Company, LLC. Cobbs was a local home builder who was convicted in March 2019 of wire fraud. https://www.justice.gov/usao-wdok/pr/oklahoma-city-home-builder-sentenced-prison-and-ordered-pay-94147560
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Two Men Sentenced for Fentanyl TraffickingRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that two men were sentenced for fentanyl trafficking in Manitowoc, Wisconsin, and Milwaukee, Wisconsin. Senior United States District Judge William C. Griesbach issued the following sentences:
Name
Residence
Date Sentenced
Prison Sentence
Jabari O. Samuel (age: 42)
Milwaukee, WI
January 6, 2022
15 years
Anthony C. Martinez (age: 32)
Manitowoc, WI
December 20, 2021
9.5 years
Samuel and Martinez were both convicted of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. Samuel was also convicted of possession of a firearm in furtherance of a drug trafficking offense.
According to court documents, the investigation revealed that over the course of approximately two months in the summer of 2021, Martinez obtained fentanyl from Samuel every other day and transported the fentanyl to Manitowoc for further distribution. In total, Martinez obtained approximately one kilogram (2.2 pounds) of fentanyl from Samuel. On June 21, 2021, investigators executed a search warrant at Samuel’s residence in Milwaukee and located approximately 1.7 kilograms (3.7 pounds) of fentanyl, a Ruger LCR .380 firearm, and approximately $17,023 cash. Samuel and Martinez both have several prior convictions for drug trafficking offenses.
This case was investigated by the Manitowoc Metro Drug Unit. It was prosecuted by Assistant United States Attorney Alexander E. Duros.
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Todd Bussino Imprisoned Following Guilty Plea to Convenience Store RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that Todd Bussino, 38, of Mt. Holly, was sentenced today in United States District Court in Burlington to 53 months’ imprisonment following his guilty plea to a charge that he robbed a Rutland-area convenience store with a knife last March. U.S. District Judge Christina Reiss ordered that Bussino serve three years of supervised release following completion of his prison term and pay restitution in the amount of $1367. Bussino has been held without bail since he first appeared in federal court last May.
According to court records, federal, state and local law enforcement officials in the Rutland area investigated a series of robberies that took place between early November 2020 and April 2021 in Rutland and surrounding towns. In each of the robberies, a single male entered the store, waited until other customers had left and then demanded money from the clerk. In almost all the incidents, the robber brandished a knife. Bussino was arrested after the ninth such robbery, on March 7, 2021 but released on bail. He was rearrested after a tenth, attempted robbery on April 13, 2021. On April 21, a federal grand jury in Rutland charged Bussino with four of those robberies. Bussino pled guilty to the March 7 robbery in September.
United States Attorney Nikolas Kerest commended the investigative efforts of the Federal Bureau of Investigation, the Rutland Police Department, the Vermont State Police, and the Rutland County Sheriff’s Department. “All Vermonters should be able to feel safe visiting and working in commercial establishments such as convenience stores. The U.S. Attorney’s Office is committed to continuing to partner with our local, state, and federal law enforcement colleagues to prosecute those who commit armed robberies affecting commerce.”
Bussino is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
St. Petersburg Man Sentenced to More Than Three Years in Prison for Covid-19 Program FraudRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Louis Thornton III (63, St. Petersburg) to three years and six months in federal prison for fraudulently obtaining money through various Covid-19 relief programs, including the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program. As part of his sentence, the Court also entered a money judgment in the amount of $814,632.50, the proceeds of the wire fraud scheme.
Thornton had pleaded guilty on September 13, 2021.
According to court documents, from April through July 2020, Thornton submitted fraudulent applications for EIDL and PPP loans through the SBA’s online EIDL portal on behalf of several defunct companies. Thornton’s applications fraudulently claimed, among other material misrepresentations, that these companies were operational and had suffered economic injury due to the Covid-19 pandemic.
Based on the false and fraudulent representations Thornton made, he obtained a total of $814,632.50 in EIDL and PPP loans to which he was not entitled. Thornton used the money obtained through the SBA’s EIDL and PPP programs to invest in stocks, futures, and commodities.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Springfield, Vermont Man Charged with Bank RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Samuel Colby, 39, of Springfield, Vermont was arrested Friday evening for the January 8, 2022 robbery of the 802 Credit Union in Springfield, Vermont. A criminal complaint was filed today in United States District Court, and Colby is expected to have his initial appearance this afternoon. The United States has requested that Colby remain detained pending trial.
According to court records, Colby was the suspect in a string of five robberies that occurred in Springfield and Westminster between January 6, 2022 and January 14, 2022, including the robbery of the 802 Credit Union. These robberies were reported by victims as involving a firearm or threat of a firearm. A search of Colby’s vehicle on January 14, 2022 resulted in the seizure of a BB gun that looks similar to a semi-automatic pistol. During a search of Colby’s residence on the same date, law enforcement found a scrap of paper that appears to match the paper used for a demand note presented by the suspect at the 802 Credit Union robbery.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Colby remains presumed innocent until and unless he is convicted of a crime. Colby faces a maximum sentence of 20 years of imprisonment on the bank robbery charge.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Springfield, Vermont Police Department, the Vermont State Police, and the Federal Bureau of Investigation.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Colby is represented by the Office of the Federal Public Defender.
Sparta Woman Pleads Guilty to Concealing Material Support Intended for a Foreign Terrorist OrganizationRead the Press Release
NASHVILLE – A Sparta, Tennessee, woman pleaded guilty in U.S. District Court today to concealing material support and resources intended to be provided to a Foreign Terrorist Organization, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Georgianna A.M. Giampietro, 36, was indicted by a federal grand jury in August 2019, charging her with attempting to provide material support to a designated Foreign Terrorist Organization. She was arrested at her home by FBI agents shortly thereafter and remains in custody. A superseding Information filed last week charges Giampietro with Concealment of Material Support and Resources Intended to be Provided to a Foreign Terrorist Organization, the charge to which she pleaded guilty.
“I commend our law enforcement partners and our prosecutors who have worked diligently to investigate this case and bring this individual to justice,” said U.S. Attorney Wildasin. “All attempts to provide support to terrorist organizations will receive the full attention and resources of our office and law enforcement to ensure that those who engage in such activity are held accountable. The safety and security of the American public demands no less.”
"Protecting the United States from terrorist attacks is the FBI’s number one priority,” said Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field Office. "This case once again demonstrates the FBI's dedication to vigorously pursue those who provide material support to terrorist organizations, and hold them accountable for their conspiratorial actions. I am proud of the personnel who worked countless hours to protect the community, and I want to thank all of the agencies that participate in the FBI's Joint Terrorism Task Force. Together, we combine our resources to identify and disrupt threats to protect our community."
According to court documents, Giampietro admitted that, in September 2018, she had conversations with an undercover agent who expressed interest in travelling to Syria to join Hayat Tahrir Al-Sham (HTS), a designated Foreign Terrorist Organization. The undercover agent told Giampietro that her husband swore an oath of allegiance to HTS and that he intended to fight on behalf of HTS.
Giampietro initially provided instruction and advice to the undercover agent on how to travel to Syria in order to avoid detection by law enforcement, including actions that the undercover agent and her husband should undertake before making the trip, including severing ties with other persons 6-8 months in advance; acquiring new phones before they traveled; and to consider traveling through Turkey prior to entering Syria.
In subsequent conversations with the undercover agent, Giampietro offered to communicate with her contacts on their behalf to assist them in safely traveling to Syria to join HTS. Giampietro engaged in a series of communications with an individual whom she knew could assist the undercover and her husband for such purpose. At one point after communicating with her contact, who claimed that there was presently no jihad in Syria, Giampietro asked the undercover agent if she and her husband had considered traveling to Afghanistan since they were still fighting there.
Giampietro later provided the undercover agent with her contact’s information to assist her and her husband in their travel to Syria. When Giampietro provided the contact, she knew that HTS was a designated terrorist organization and believed that the undercover agent and her husband intended to travel to Syria to work under the direction and control of HTS and believed that the contact would substantially assist them in this effort. In addition, Giampietro intended that the undercover agent and her husband would provide funds to that person who in turn would provide funds to HTS, thereby providing material support to HTS disguised as a charitable contribution.
Giampietro utilized an end-to-end encrypted social media platform to communicate with the undercover and with her contact, and in some instances, utilized self-destruct timers within her communications so that those communications would automatically delete, without the possibility of recovery, after a specified time.
Giampietro faces up to 10 years in prison and a $250,000 fine when she is sentenced on May 6, 2022.
This case was investigated by the FBI and the Joint Terrorism Task Force. Assistant U.S. Attorneys Philip H. Wehby, Ben Schrader, and Kathryn Risinger of the Middle District of Tennessee, and Trial Attorney Jennifer Levy of the Department of Justice’s National Security Division, are prosecuting the case.
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Southfield Resident Pleads Guilty in COVID-19 Fraud SchemeRead the Press Release
DETROIT - Southfield resident Mykia King pleaded guilty today to wire fraud and aggravated identity theft arising out of a pandemic-related unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Special Agent in Charge John Marengo, United States Secret Service’s Detroit Field Office.
Mykia King, 29, pleaded guilty to one count of wire fraud arising out of her submission of 34 fraudulent claims for pandemic unemployment assistance. She also pleaded guilty to one count of aggravated identity theft, which reflected the fact that she used stolen personal identifying information to further her unemployment assistance fraud scheme.
According to the plea agreement, King filed approximately 34 fraudulent UI claims seeking pandemic unemployment assistance (PUA) benefits to which she was not entitled. These fraudulent claims were submitted in the names of multiple individuals without those individuals’ authorization or consent. King submitted adulterated identification documents as proof of identification for her fraudulent PUA claims. Indeed, King submitted identical driver’s license photos and social security cards as proof of identification for multiple claims, although she used different names and addresses for the claims. The funds associated with King’s fraudulent claims were typically loaded onto Bank of America debit cards and mailed to addresses King controlled. King would then withdraw the funds on these cards, usually at ATMs located in the Eastern District of Michigan.
According to the plea documents, one such fraudulent claim was submitted in the name of a victim whose initials were T.R. King filed a fraudulent PUA claim using T.R.’s name and social security number on June 5, 2020. King was not lawfully in possession of T.R.’s social security number, and was not authorized to file a PUA claim on T.R.’s behalf. The claim used King’s street address (with a different apartment number). The system requested an Identity Verification (IDV), and King uploaded an adulterated Michigan driver’s license bearing T.R.’s name as proof of identification. Benefits were paid on King’s fraudulent T.R. claim on approximately June 23 and 24, 2020. King accessed the fraudulently obtained benefits by using a Bank of America debit card issued for the T.R. claim at ATMs in the Detroit Metro area on approximately June 25–30, July 1–2, July 6, and July 10–11, 2020, obtaining approximately $11,880. This fraudulent use of T.R.’s identifying information in furtherance of her fraud scheme gave rise to the aggravated identity theft charge to which King pleaded guilty.
United States Attorney Ison stated “Enhanced benefits for unemployed workers were a key lifeline for many of our district’s citizens during the pandemic. Unfortunately, those enhanced benefits attracted criminals seeking to exploit the system and enrich themselves at the public’s expense. My office has no tolerance for this abuse of a public program, and today’s plea is a reflection of my office’s commitment to vigorous prosecution of these cases.”
“Mykia King submitted numerous fraudulent claims for pandemic unemployment assistance, obtaining more than $366,000 in funds intended for individuals who lost their jobs during the COVID-19 pandemic. We will continue to work with our law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Special Agent in Charge Marengo said, “The U.S. Secret Service is dedicated to working with our federal, state and local law enforcement partners in UIA fraud cases. The U.S. Secret Service continues to focus on criminals exploiting the American people.”
Sentencing is set for April 19, 2022 at 11 am. before United States District Judge Linda V. Parker.
The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Secret Service. The Michigan Unemployment Insurance Agency provided valuable assistance in this investigation.
Southern California Man Sentenced to 9 Years in Prison for Distributing Methamphetamine from Mexico to ModestoRead the Press Release
FRESNO, Calif. — Antonio Castellanos, 38, of Whittier, was sentenced today to nine years in prison for conspiring to distribute methamphetamine from Mexico destined for Modesto, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castellanos and co-defendants Genaro Serrato-Calles, 49; Antonio Valencia-Hernandez, 66, both of Michoacán, Mexico; and Jose Reyes-Pineda, 49, of Anaheim were charged with conspiring over a two-year period to distribute methamphetamine in Stanislaus and San Joaquin Counties. Castellanos worked with individuals in Mexico to distribute methamphetamine in the United States and, on one occasion, coordinating the shipment of over 20 pounds of crystal methamphetamine to Serrato-Calles in Modesto.
“Violent drug traffickers continue to seek new ways to smuggle methamphetamine into the United States,” said U.S. Attorney Talbert. “This sentence demonstrates the commitment by the U.S. Attorney’s Office and our law enforcement partners to work together to prevent this deadly drug from reaching the streets. Prosecuting methamphetamine traffickers remains a top priority for our office.”
“Castellanos’ actions allowed large amounts of methamphetamine to make its way from Mexico to the Central Valley and today’s sentencing ensures the defendant will serve a lengthy prison sentence for his role,” said DEA Special Agent in Charge Wade R. Shannon. “DEA and our law enforcement partners will continue to aggressively target all those involved in the distribution chain of this poison in our communities.”
“ATF is focused on working assiduously to honor our commitment to the cities we serve,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Our mission is to protect the public, and the focus of this joint task force is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States. ATF works alongside our law enforcement partners to fulfill the goals of Organized Crime Drug Enforcement Task Forces. This case is a result of those unified efforts. ATF will continue to work diligently with our partners to dismantle criminal organizations.”
The sentencing of Castellanos sends a message to anyone who deals in illicit narcotics that drug traffickers will be held accountable,” said Tatum King, Homeland Security Investigations special agent in charge, San Francisco. “We’re thankful for our law enforcement partners and the U.S. Attorney’s Office who help bring individuals like Castellanos to justice and hold them accountable in our courts.”
Serrato-Calles and Valencia-Hernandez were each sentenced to 12 years in prison. Reyes-Pineda was sentenced to 18 months in prison.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force, the San Joaquin County Metropolitan Narcotics Task Force, the Stanislaus Drug Enforcement Agency, and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Karen Escobar prosecuted the case.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Sidney Man Sentenced for False Statements in a Highway ProjectRead the Press Release
BANGOR, Maine: A Sidney man was sentenced today in federal court for making false statements with respect to work on a federally approved highway project, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Jim Wentworth, 51, to one year of probation and $35,000 fine. Wentworth pleaded guilty on June 11, 2021.
According to court records, in June 2019, Wentworth was working as the project manager for a general contractor on a bridge contract in Gardiner. The project was funded in part with federal highway funds approved by the U.S. Department of Transportation. In the course of negotiating a contract modification, Wentworth submitted documents falsely inflating the costs paid to a subcontractor. Based on these false submissions, the Maine Department of Transportation (MDOT) overpaid the general contract over $91,000. Once the extent of the fraud was discovered, the general contractor compensated MDOT for the full overpayment.
In imposing the sentence, Judge Woodcock noted that fraud concerning public funds added to the seriousness of the offense. He also noted that Wentworth faces additional administrative sanctions from the U.S. Department of Transportation’s Federal Highway Administration, which may include a period of supervision, a suspension, or debarment from working on federally funded highway projects.
The U.S. Department of Transportation, Office of Inspector General, investigated the case.
Self-Described Member of Booglaoo Bois Sentenced to Prison for Illegal Possession of a Machine GunRead the Press Release
MINNEAPOLIS – A St. Cloud man was sentenced to 24 months in prison followed by three years of supervised release for possessing two drop-in auto sears, which are devices that convert semi-automatic firearm into fully automatic firearms. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Michael J. Davis sentenced the defendant.
According to court documents, in November 2020, the FBI initiated an investigation into Michael Paul Dahlager, 28, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that Dahlager was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.
According to court documents, on February 3, 2021, Dahlager delivered two auto sears to the CHS and he demonstrated how the devices should be inserted into a firearm. At the time of his arrest in April 2021, law enforcement recovered six additional auto sears and a silencer from Dahlager’s vehicle and home.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.
Saucier Man Sentenced to Prison for Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Saucier man was sentenced to 37 months in prison for being a convicted felon in possession of a firearm, announced U. S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, on April 20, 2020, Christopher Michael Gelston, 40, knowingly possessed a Ruger 9mm pistol after having been previously convicted of a felony. Gelson pled guilty on September 28, 2021, to being a convicted felon in possession of a firearm.
Gelston’s prior felony convictions included a December, 2012 conviction in the Circuit Court for Baltimore County, Towson, Maryland, on one count of firearm possession with felony conviction and one count of rifle/shotgun possession with felony conviction.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrea Jones prosecuted the case.
Sand Springs Man Sentenced to 138 Months in Prison for Firing a Gun at Woman through her DoorRead the Press Release
A man who intentionally shot through a neighbor’s door during a domestic violence incident involving a child was sentenced in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Michael Adam Lindsey, 37, of Sand Springs, to a total of 138 months in federal prison followed by three years of supervised release.
He is to serve 18 months in prison for assault with a dangerous weapon with intent to do bodily harm in Indian Country and 120 months for carrying, using, brandishing, and discharging a firearm during and in relation to a crime of violence.
Lindsey pleaded guilty in September 2021. Lindsey admitted in his plea agreement that on April 29, 2018, he intended to cause bodily harm when he shot a firearm toward a neighbor as she stood behind a door. Just before the incident, a child fled to the neighbor’s home to escape from Lindsey, who had been drinking and just attempted to strangle her. When the neighbor saw the defendant holding a gun, she closed and locked the door before he could enter. When Lindsey was unable to enter the home, he intentionally fired a shot through the door. The bullet went through the door and hit the woman in the upper left arm, near her shoulder. The woman was later treated at the hospital and recovered.
“Michael Lindsey was a danger to his neighborhood and his family. Lindsey could have just as easily killed his neighbor, instead of wounding her when he shot through her door,” said U.S. Attorney Clint Johnson. “I am thankful she has fully recovered. She is to be commended for selflessly acting to protect the child from harm when she brought her into the home.”
According to a sentencing memorandum filed by Assistant U.S. Attorney Christopher Kelly, Sand Springs police officers found Lindsey laying on the ground outside his home and further located a Jennings .22 caliber pistol and a box of 36, .22 caliber bullets on the front passenger seat of his car. The slide on the pistol was slightly locked back and a spent round and unspent round appeared jammed in the chamber, indicating that Lindsey had attempted to fire again but could not.
Kelly stated that Lindsey possessed the handgun despite having two prior felony convictions. Individuals convicted of a felony are prohibited from possessing firearms. Kelly also stated that Lindsey’s decision to drink 15 or 16 double shots the day of the crime was not a defense nor an excuse for his dangerous behavior.
The FBI and Sand Springs Police Department conducted the investigation. Assistant U.S. Attorney Christopher Kelly prosecuted the case.
Rochester Man Going to Prison for 15 Years for Fentanyl Trafficking and Causing Non-Fatal OverdoseRead 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 Soroush Hamedi, 27, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, was sentenced to serve 180 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Hamedi was part of a group of individuals who ran a drug house at 192 Weaver Street in Rochester. Hamedi and others sold quantities of fentanyl and cocaine from the house between January 2018 and February 25, 2020. On February 25, 2020, investigators executed a search warrant at Hamedi’s residence on Dale Street in Rochester and seized a clear plastic bag containing 10 grams of fentanyl.
Hamedi also admitted to selling a quantity of fentanyl to a 27-year-old female who later suffered a non-fatal overdose.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Rochester Police Department, under the direction of Interim Chief David Smith.
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Preston County woman admits to wire fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cynthia Miller, of Newburg, West Virginia, has admitted to wire fraud, United States Attorney William Ihlenfeld announced.
Miller, 36, pleaded guilty today to one count of “Conspiracy to Commit Wire Fraud.” Miller admitted to working with others to stage a vehicle accident, fabricate injuries, and file false insurance claims. The crime occurred from March to July 2019 in Taylor and Preston Counties.
Miller faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. ATF and the West Virginia Insurance Commission Fraud Unit investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Woman Pleads Guilty to Fraud Related to Pandemic Unemployment BenefitsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has pleaded guilty to one count in Pittsburgh on a charge of conspiracy to commit mail fraud related to pandemic unemployment benefits, United States Attorney Cindy K. Chung announced today.
Cassandra Rangel age 28, pleaded guilty before Senior U.S. District Judge Arthur J. Schwab.
According to the plea agreement, Rangel will pay restitution in the amount of $13,205.00 under the Victim-Witness Protection Act.
Sentencing is scheduled for June 2, 2022. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Rangel.
Paterson Police Officer Indicted on Civil Rights Violations and ObstructionRead the Press Release
NEWARK, N.J. – A Paterson Police officer was indicted today for physically assaulting a victim and then attempting to cover it up, U.S. Attorney Philip R. Sellinger announced.
Kevin Patino, 29, of Paterson, New Jersey, is charged by indictment with one count of conspiracy against rights by depriving a man of his constitutional right to be free from the use of unreasonable force by law enforcement officers, one count of deprivation of rights under color of law and two counts of falsification of records in connection with that incident.
According to documents filed in this case:
At approximately 12:30 a.m. on Dec. 14, 2020, Patino and a conspirator approached the victim, who was walking with his hands in his pockets in Paterson. Patino grabbed the victim. When the victim attempted to separate himself, Patino struck the victim in the face and body numerous times. During the altercation with victim, the conspirator picked the victim up and threw him to the ground. Patino then repeatedly struck the victim while he was on the ground.
Patino filed police reports, which contained numerous false statements and omissions, regarding the arrest of the victim.
The violation of civil rights and conspiracy to violate civil rights charges each carry a maximum penalty of 10 years in prison. The false records counts each carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent In Charge George M. Crouch Jr. in Newark; the New Jersey Attorney General’s Office; under the direction of acting Attorney General Andrew J. Bruck; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force composed of members of FBI and New Jersey State Police.
The government is represented by Assistant U.S. Attorney Joseph Gribko.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Palm Bay Man Sentenced to Five Years in Federal Prison for COVID Relief Fraud and Tax FraudRead the Press Release
Orlando, Florida –U.S. District Judge Anne C. Conway today sentenced Johnson W. Eustache to five years in federal prison for wire fraud and aiding and assisting in the preparation of false tax returns. The court also ordered Eustache to forfeit approximately $700,000 seized from several bank accounts, as well as real properties in Palm Bay and Poinciana, which are traceable to proceeds of the offense.
Eustache had pleaded guilty on August 3, 2021.
According to court documents, beginning in March 2020 and continuing through April 2021, Eustache submitted 13 different fraudulent applications seeking a total of more than $2.1 million in pandemic-related emergency benefits. The fraudulent applications consisted of either Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) applications to the U.S. Small Business Administration (SBA) and PPP loan servicers and lenders. Eustache submitted some of these applications in his own name and others in the names of unwitting associates or relatives. Eustache included false statements in each of the applications regarding the applicant’s criminal history, number of employees, and/or total payroll.
Eustache’s materially false, fraudulent, and misleading representations caused the SBA and PPP lenders to approve and fund four PPP loans and four EIDL loans, totaling $1,343,029.50. Eustache did not use these funds for payroll or other qualifying business expenses as promised in the loan applications. Rather, he used the funds to make personal financial investments, to purchase real estate, and to construct residential properties.
In addition, between 2017 and 2021, Eustache worked as a tax return preparer, during which time he filed 28 returns for taxpayers; those returns contained false adjustments, false income amounts, or false deductions. Eustache included these false items fraudulently to inflate the amount of the taxpayers’ refunds. The false items included bogus Schedule C losses from businesses, false Schedule 1 Adjustment to Income deductions, false Household Employee income, and false W-2 wages. The total loss to the IRS as a result of the false tax returns filed by Eustache was $87,044.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
“Not only did Eustache fraudulently file tax returns on behalf of his clients through his tax preparation business, but he also stole vital PPP loan money intended to support struggling businesses during the COVID 19 pandemic,” said IRS-Criminal Investigation Special Agent in Charge Brian Payne. “This sentence shows that stopping PPP fraudsters and unscrupulous tax preparers is a top priority for IRS-CI. With tax season starting up, taxpayers looking to avoid shady preparers and find tips on how to select a tax preparer are encouraged to visit IRS.gov.”
“This case demonstrates the swift and decisive action taken by the FBI and its federal partners to protect the Payment Protection Program.”, said Special Agent in Charge of FBI Tampa Michael McPherson. “We’re taking tremendous investigative steps to ensure fraudsters don’t profit from the pandemic.”
“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy—small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
This case was investigated by the Internal Revenue Service, Federal Bureau of Investigation, and the Office of Inspector General for the Small Business Administration. It was prosecuted by Assistant United States Attorneys Chauncey A. Bratt and Amanda Daniels. The forfeiture and restitution were handled by Assistant United States Attorneys Nicole Andrejko and Julie Simonsen.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Owatonna Man Sentenced to Prison for Possessing an Unregistered FirearmRead the Press Release
MINNEAPOLIS – An Owatonna man was sentenced to 31 months in prison followed by three years of supervised release for possessing an unregistered firearm. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
According to court documents, the Olmsted County Sheriff’s Office received information that Dayton Charles Sauke, 23, was selling narcotics and manufacturing and dealing firearms without a license. Sauke used his Snapchat account to advertise privately made firearms, or “ghost guns,” which he described as “untraceable” and “throwaway murder pieces.” Sauke also posted pictures of a short-barreled shotgun and made several threatening posts about killing law enforcement and politicians.
According to court documents, on January 15, 2021, two undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) met with Sauke and purchased from him a privately made firearm. During the meeting, Sauke had a short-barreled shotgun with him and showed it to the undercover agents. The short-barreled shotgun was later recovered by law enforcement officials and examined by an ATF expert, who determined it was an operable 12-gauge shotgun with a barrel length of approximately 11 inches and a total overall length of 18 inches. Federal law requires shotguns with reduced barrels and overall lengths (often referred to as “sawed-off” or “short-barreled” shotguns) to be registered in the National Firearms Registration and Transfer Record. The shotgun was not registered to Sauke.
“Sauke’s actions and statements leading up to his arrest were very concerning, which is why law enforcement quickly intervened,” said ATF Special Agent in Charge William J. McCrary, of the St. Paul Field Division. “We are thankful for the investigative work of the Olmsted County Sheriff’s Office, South Central Drug Investigations Unit, Cannon River Drug Task Force, and our federal partners at the U.S. Postal Inspection Service, FBI, and U.S. Attorney’s Office. I’m especially proud of our ATF agents who quickly responded to this matter, and whose prompt actions helped to interrupt Sauke’s potential plans for violence. This collaborative work readily demonstrates, at all levels, law enforcement’s on-going commitment to public safety.”
This case is the result of an investigation conducted by the ATF, FBI, U.S. Postal Inspection Service, the Olmsted County Sheriff’s Office, the South Central Drug Investigations Unit, and the Cannon River Drug Task Force.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
Ohio County woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Tina Soper, of Wheeling, West Virginia, has admitted to a drug charge, First Assistant United States Attorney Randolph J. Bernard announced.
Soper, 43, pleaded guilty today to one count of “Maintaining a Drug-Involved Premise.” Soper admitted to maintaining a property on Edgewood Street in Wheeling that was used to distribute methamphetamine and cocaine hydrochloride in March 2021.
Soper faces up to 20 years of incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Norwich Man Sentenced to 4 Years in Federal Prison for Firearm OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that NNAMDII ROSS, 34, of Norwich, was sentenced today via videoconference by U.S. District Judge Janet C. Hall to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, shortly after midnight on August 2, 2020, New London Police responded to a report of shots fired on Ann Street in New London during a large gathering of individuals. One shooting victim was found at the scene and transported to the hospital. At the scene officers located and collected .40 caliber, .45 caliber, and 9 mm rounds of ammunition. Ross was also shot at the gathering and was transported to the hospital by his fiancée. At the hospital, investigators took possession of some of Ross’s personal effects, including six rounds of .22 caliber ammunition.
On August 7, 2021, law enforcement recovered a .45 caliber handgun that was found at a residence in New London. Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Service analysis of the handgun revealed Ross’s DNA, and analysis by the National Integrated Ballistic Information Network (NIBIN) revealed a link between the handgun and the .45 caliber ammunition found on Ann Street on November 2, 2020.
Ross’s criminal history includes state felony convictions for robbery and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Ross was arrested on September 10, 2020. On October 7, 2021, he pleaded guilty to one count of unlawful possession of ammunition by a felon.
This matter was investigated by the Federal Bureau of Investigation and the New London Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
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.
North Carolina Return Preparers Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
Greensboro, N.C. – Two Durham, North Carolina, tax preparers have pleaded guilty to conspiring to defraud the United States in connection with a scheme that involved preparing and filing false tax returns.
According to court documents, Whitney Danielle Sales owned and operated Tax Time Solutions, LLC, a tax preparation business in Durham, North Carolina from 2014 to 2018. During that period, Sales, and another return preparer, Janelle Marie Corley, prepared fraudulent returns for clients. Returns prepared by the conspirators claimed false education credits or manipulated the clients’ income to qualify for larger earned income tax credits. In addition to their preparation of false client returns, Sales and Corley also filed false personal income tax returns. Sales and Corley intended to cause a tax loss of over $1.5 million.
Sales pleaded guilty to Count One of the Indictment before Senior United States District Court Judge N. Carlton Tilley, Jr., on January 5, 2022. Corley pleaded guilty to the same count before Judge Tilley on January 13, 2022.
Sales is scheduled to be sentenced on May 19, 2022, and Corley is scheduled to be sentenced on May 26, 2022. Sales and Corley each face a maximum sentence of five years in prison for the conspiracy, as well as a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Ashley Waid of the Middle District of North Carolina is prosecuting the case.
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Norfolk Woman Sentenced to 71 Months for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Lacee Tuttle, age 39, of Norfolk, Nebraska, was sentenced in federal court on January 14, 2022 in Omaha, Nebraska, for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Tuttle to 71 months of imprisonment. There is no parole in the federal system. After completing her term of imprisonment, Tuttle will begin a 3-year term of supervised release.
On July 14, 2019, Tuttle possessed about 13 grams of methamphetamine at the Ohiya casino in Niobrara, Nebraska, which is within the Santee Indian Reservation. After Tuttle entered the casino, she dropped two baggies of methamphetamine on the floor. Officers responded and made contact with Tuttle. When confronted by officers, Tuttle threw two drug pipes in the trash. Officers searched Tuttle’s vehicle in the parking lot and located more baggies of methamphetamine, oxycodone, alprazolam, lorazepam, and methylphenidate. Tuttle was arrested at the scene and later released. Tuttle intended to distribute methamphetamine that she possessed at the casino.
On October 22, 2019, officers made contact with Tuttle in a parking lot in Norfolk. She had an active arrest warrant. When arresting her, Tuttle dropped a plastic baggie with methamphetamine. On her person was a glass pipe containing methamphetamine residue. In her purse was methamphetamine, a scale, small empty baggies, and marijuana. In total, she possessed about 7 grams of methamphetamine. Tuttle was again arrested. Tuttle intended to distribute the methamphetamine.
The case was investigated by the Drug Enforcement Administration, Nebraska State Patrol, the Santee Police Department, and the Norfolk Police Department.
New unit formed to combat health care fraud in West VirginiaRead the Press Release
WHEELING, WEST VIRGINIA – A new initiative to combat health care fraud in West Virginia was launched today in Wheeling, according to United States Attorney William Ihlenfeld.
State and federal agencies gathered at the U.S. Attorney’s office this morning for the first meeting of the Mountaineer Health Care Fraud Strike Force, a unit that will take a data-driven approach to uncovering waste and abuse. Representatives from seven different agencies discussed fraudulent billing patterns and new targets were identified as a result.
In addition to its analytical work, the Strike Force will engage with providers and insurers so that there is a better understanding on how to recognize and report health care fraud.
“The time I spent in the private sector opened my eyes to the scope of the health care fraud that is occurring in West Virginia,” said Ihlenfeld. “It made me realize that more can and should be done by law enforcement, which is why this new group has been formed.”
Ihlenfeld stressed the importance of whistleblowers and the impact that they can have upon uncovering fraud.
“Oftentimes the first person to witness fraud is an employee of a hospital or a doctor’s office,” Ihlenfeld remarked. “Those who blow the whistle and expose conduct that the government was not able to detect on its own are awarded a portion of the amount recovered, and those awards can be substantial."
Last year, a whistleblower was awarded $10 million in the matter of U.S. ex rel. Longo v. Wheeling Hospital, Inc. Read more here: https://www.justice.gov/usao-ndwv/pr/west-virginia-hospital-agrees-pay-50-million-settle-allegations-concerning-improper
A new hotline, email address and mailing address have been established to allow for the reporting of potential fraud. Anyone with information may call (304) 234-7711, send an email to [email protected], or mail correspondence to the U.S. Attorney’s Office, Attn: Mountaineer HCF Strike Force, P.O. Box 591, Wheeling, WV 26003.
“Fraud and abuse take critical resources out of our health care system and contribute to rising costs for everyone,” said FBI Special Agent in Charge Mike Nordwall. “It costs U.S. taxpayers tens of billions of dollars annually. The FBI, along with state, local and federal partners, are working side by side to help stop West Virginians from having to absorb the costs associated with health care fraud. I hope the community will use this tip line to aid us in our efforts to hold those who commit fraud accountable.”
“The newly formed team will combine the talents, dedication, and resources of federal law enforcement and the State of West Virginia to fight health care fraud, waste, and abuse,” said Maureen R. Dixon, Special Agent in Charge for the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We look forward to working with our law enforcement partners in this collaborative initiative to prevent and detect health care fraud, hold wrongdoers accountable, and ensure appropriate use of taxpayer funds.”
Members of the Mountaineer Health Care Fraud Strike Force include agents, officers and prosecutors from the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Resources (HHS), the Drug Enforcement Administration (DEA), the U.S. Department of Defense, the West Virginia Medicaid Fraud Control Unit, the West Virginia Offices of Insurance Commission, and the United States Attorney’s Office.
New Orleans Man Sentenced for Violating the Federal Controlled Substances Act and the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Jay C. Zainey sentenced RONALD JACOBS, age 38, of New Orleans, Louisiana, today to serve 101 months in the Bureau of Prisons for violating the Federal Controlled Substances Act and the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to the court records, JACOBS was arrested after concerned citizens reported his vehicle stopped in a travel lane on Williams Boulevard in Kenner. Kenner Police responded and found JACOBS asleep in the vehicle with what appeared to be drugs in his lap. When the officers made contact with JACOBS, he attempted to flee by ramming his vehicle into the officers’ vehicles and was reaching for an area in his truck where the officers later found a pistol. In addition to the loaded gun, officers also located 14 grams of crack, a digital scale, a razor blade, and about $1,100. JACOBS admitted that he possessed the crack for distribution.
In addition to the 101-month term of imprisonment, JACOBS was also sentenced to five (5) years of supervised release after he is released from the Bureau of Prisons and ordered to pay a $200 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Kenner Police Department and Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The prosecution is being handled by Assistant United States Attorney David Haller.
New Kensington Man Sentenced to Time-Served for Conspiring to Commit FraudRead the Press Release
PITTSBURGH - A resident of New Kensington, Pennsylvania, was sentenced in federal court to a charge of conspiracy to commit offense against the United States, United States Attorney Cindy K. Chung announced today.
Erick Woods, age 23, of New Kensington, Pennsylvania, was sentenced to a term of imprisonment of time served (six months’ incarceration) to be followed by a two-year term of supervised release by Judge Arthur J. Schwab.
From in and around June 2020, and continuing thereafter until in and around July 2020, in the Western District of Pennsylvania, Woods knowingly and willfully did conspire to commit an offense against the United States, more specifically, mail fraud related to pandemic unemployment benefits.
Woods was also ordered to pay restitution in the amount of $11,910.00.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Woods.
Maryland Security Guard Charged with Tax EvasionRead the Press Release
An indictment was unsealed on Friday charging a Maryland security guard with six counts of tax evasion.
A federal grand jury in Greenbelt, Maryland returned an indictment on Dec. 22, 2021, charging Gaston Gilberto Reyes, of Germantown, with not filing income tax returns for 2015 through 2020. As a result, he allegedly did not report to the IRS more than $1 million in total wages from jobs at seven different security firms in the D.C. metropolitan area. During the same period, Reyes allegedly also submitted false tax forms to his employers, claiming he was exempt from federal income tax withholding. This caused the employers to allegedly withhold little or no federal income taxes from his wages.
The defendant made his initial court appearance on Jan. 14 before U.S. Magistrate Judge Timothy J. Sullivan of the U.S. District Court for the District of Maryland. If convicted, Reyes faces a maximum penalty of five years in prison on each of the tax evasion charges. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial attorneys Melissa S. Siskind and George Meggali of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Luzerne County Man Sentenced to 57 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that Richard Notarfrancesco, age 30, formerly of Hazleton, Pennsylvania, was sentenced on January 13, 2022, to 57 months’ imprisonment by United States District Court Judge Malachy E. Mannion after pleading guilty to methamphetamine trafficking.
According to United States Attorney John C. Gurganus, Notarfrancesco possessed with intent to distribute between 500 grams and 1.5 kilograms of methamphetamine in the Hazleton area on September 14, 2019.
The case was investigated by Homeland Security Investigations, the U.S. Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Attorney General’s Office as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Operation. 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 matter was prosecuted as part of the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
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Kentucky Man Sentenced to Prison for Federal Drug OffenseRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man was sentenced to prison today for his involvement in a fentanyl distribution ring operating in the Huntington area. Leonard Brandon Joe Rice, 35, was sentenced to two years in federal prison for using a communication facility to facilitate a felony drug offense.
According to the plea agreement and statements made in court, on May 24, 2021, Rice used a telephone to arrange the purchase of fentanyl in Huntington. Rice then traveled from Louisa, Kentucky to Huntington where he received the fentanyl. When Rice returned to Louisa, he was stopped by a trooper with the Kentucky State Police who seized the fentanyl Rice purchased. Rice admitted that he received fentanyl in Huntington from the beginning of 2020 through July of 2021. During that period, Rice redistributed some of the fentanyl he purchased in Huntington to other individuals in the Louisa, Kentucky area.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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