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Wednesday 24 November 2021
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 23 was:
Ralph Alan Degele, 64, of Worden, on charges of false statement during a firearms transaction and receipt of a firearm by person under indictment. If convicted of the most serious crime, Degele faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Degele was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-81.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 22 was:
Marilyn Ann Wilson, 57, of Missoula, on charges of health care fraud, theft of government money, false statement to a government agency, false statement affecting Social Security benefits and Social Security fraud. If convicted of the most serious crime, Wilson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wilson was released pending further proceedings. The Social Security Administration and Montana Department of Public Health and Human Services investigated the case. PACER case reference. 21-50.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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French National Charged with Making False Statements to FDA to Fraudulently Obtain Control of Pharmaceutical ProductRead the Press Release
NEWARK, N.J. – A French national will make his initial appearance today for his role in an attempt to fraudulently gain control of the rights to sell a weight-loss drug in the United States, Acting U.S. Attorney Rachael A. Honig announced.
Alain Bouaziz, 68, a French citizen and resident of the United Arab Emirates, was arrested at Newark Liberty Airport while attempting to depart the United States. Bouaziz is charged by complaint with making false statements to the U.S. Food and Drug Administration (FDA). He is scheduled to appear today by videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in this case and statements made in court:
Bouaziz is a French citizen and resident of the United Arab Emirates who represented himself to be the chief operating officer of Hexim Pharmaceuticals (Hexim), a company headquartered in Secaucus, New Jersey. Hexim was known as Alkopharma USA Inc. until its name was changed in June 2013.
Beginning in February 2018, Bouaziz submitted forged documents and made false statements to the FDA to fraudulently gain control of Sanorex, a weight-loss pharmaceutical owned by a major international pharmaceutical company (Pharmaceutical Company-1). Bouaziz sent letters and documents by email and in hard copy to the FDA falsely stating that Hexim had purchased the New Drug Application for Sanorex and requesting a meeting about marketing Sanorex in the United States. Bouaziz knew these representations were false because Hexim had not purchased the rights to Sanorex from Pharmaceutical Company-1. The documents that Bouaziz submitted to the FDA contained multiple forgeries and false statements, including one example where an earlier agreement between Alkopharma and Pharmaceutical Company-1 had been altered to purport to show a sale of Sanorex to Hexim.
The false statements charge carries a maximum term of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the Food and Drug Administration, Office of Criminal Investigation, under the direction of Special Agent in Charge Jeffrey Ebersole, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Executive Director of the Delta Sigma Theta Sorority, Inc. and Husband Sentenced to Prison Terms for Bank FraudRead the Press Release
WASHINGTON – Jeanine Henderson Arnett, 44, the former Executive Director of Delta Sigma Theta Sorority, Inc., and her husband, Diallo Arnett, 47, have been sentenced to prison terms on bank fraud charges stemming from her embezzlement of more than $228,000.
The Arnetts, of Purcelville, VA., pleaded guilty in April 2021 and were sentenced on Nov. 23, 2021, by the Honorable Randolph D. Moss in the U.S. District Court for the District of Columbia. Jeanine Henderson Arnett was sentenced to 16 months in prison and Diallo Arnett was sentenced to 12 months and a day. Upon completion of their prison terms, they will be placed on five years of supervised release. They also must pay $228,357 in restitution and an identical amount in a forfeiture money judgment.
The sentencing was announced by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
According to the statements of offense submitted to the Court at the time of their guilty pleas, Jeanine Henderson Arnett was employed as the Executive Director of Delta Sigma Theta Sorority, Inc., a charitable organization located in the District of Columbia. Delta Sigma Theta Sorority, Inc., has a long history of community service and partners with programs and other charitable organizations to address issues such as food insecurity, domestic violence, and educational needs for students.
Jeanine Henderson Arnett and Diallo Arnett admitted that, between approximately Oct. 3, 2017 and Sept. 15, 2019, she misappropriated more than $228,000 from Delta Sigma Thetas’s bank accounts through, among other things, ACH money transfers and credit card transactions. This included unauthorized and fraudulent charges for personal items and expenses at, among other places, Amazon, Avis Rent a Car, Century Twenty-One, Coach, GEICO, and T-Mobile. In addition, the Arnetts used the Square Cash App to make nine transactions to transfer $14,162.50 to their account.
Delta Sigma Theta terminated Jeanine Henderson’s employment in August 2019 and discovered financial irregularities a month later. A criminal investigation followed.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the work of Assistant U.S. Attorneys Joshua Rothstein and David Kent, who investigated and prosecuted the matter, and the assistance provided by former Paralegal Specialist Angeline Thekkumthala.
Florida Tax Preparer Charged in Connection with $7 Million Loan Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced that Barrie Osborne, 76, of Celebration, Florida, was charged by Indictment with with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering in connection with a scheme to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme.
The Indictment alleges that, beginning in about January 2018 until August 2021, the defendant, a professional tax preparer, conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses. All of the businesses in question were dormant companies or companies with limited business operations. In exchange for fees, Osborne allegedly made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents. The defendant also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans.
The Indictment further alleges that the defendant created “forgiveness plans” which were designed to disguise the fraud proceeds as payroll expenses in order to make it appear that each loan recipient was meeting the SBA requirement to devote a percentage of the PPP funds to payroll. This increased the likelihood that each loan recipient – including one of the defendant’s own companies - would qualify for loan forgiveness.
“PPP, SBA and EIDL funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Osborne led a conspiracy to fraudulently obtain $7 million in funds that could have helped struggling businesses and individuals.”
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
This case was investigated by the Small Business Association Office of Inspector General, IRS-Criminal Investigation Philadelphia, Homeland Securitu Investigations’ Philadelphia Field Office, and the FBI’s Philadelphia Field Office, and is being prosecuted by trial attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant United States Attorney Judy G. Smith for the Eastern District of Pennsylvania.
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.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Tax Preparer Charged in Connection with $7 Million Loan Fraud SchemeRead the Press Release
A Florida tax preparer was charged in an indictment filed in the Eastern District of Pennsylvania yesterday with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme.
The indictment alleges that, beginning in or around January 2018, Barrie J. Osborne, 76, of Celebration, conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses that were dormant companies or companies with limited business operations. In exchange for fees, Osborne made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents. Osborne also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans.
The indictment further alleges that Osborne created “forgiveness plans” that directed the co-conspirators to transfer the fraud proceeds as purported payroll expenses for each of the companies that obtained PPP funds, including one of his own companies. These so-called “forgiveness plans” were designed to disguise the proceeds as payroll expenses and make it appear that the loan recipient was meeting the SBA requirement that a percentage of the PPP funds be used for payroll, thus increasing the likelihood that the loan recipient would qualify for loan forgiveness. Osborne is charged with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Association Office of Inspector General (SBA-OIG) Eastern Region; Special Agent in Charge Yury Kruty of IRS-Criminal Investigation (IRS-CI) Philadelphia Field Office; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) Philadelphia Field Office; and Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division made the announcement
This case was investigated by the SBA-OIG, IRS-CI, HSI’s Philadelphia Field Office, and the FBI’s Philadelphia Field Office.
Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Judy G. Smith of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Buffalo Man Who Led Multi-Million Dollar Narcotics Conspiracy That Stretched from Mexico to Buffalo Along with Two Co-defendantsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that following a five-week trial, a federal jury has convicted Adrian Goudelock, a/k/a AD, a/k/a Ace, a/k/a Ace Boogs, 39, of Buffalo, NY, of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, attempted possession and possession of five kilograms or more of cocaine, and money laundering conspiracy. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $20,000,000 fine. In addition, co-defendants Shamar Davis a/k/a Fatboy, 42, and Jai Hunter, 42, were also convicted at trial of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, and face mandatory minimum sentences of 10 years in prison and a maximum of life.
Assistant U.S. Attorneys Michael J. Adler, Jeremiah E. Lenihan, and Seth T. Molisani, who prosecuted the case, stated that Goudelock was a leader in a major narcotic trafficking operation that stretched from Mexico to Buffalo. An investigation into the trafficking operation began in October 2017 following the seizure by HSI Special Agents of approximately 10 kilograms of cocaine and $259,960 in U.S. currency that was being shipped from El Paso, Texas to Buffalo. The investigation utilized intercepted wire and electronic communications through court-authorized wiretaps. Intercepted calls and messages revealed that bulk shipments of cocaine were delivered to Goudelock in the Buffalo area. A total of 27 kilograms of cocaine and nearly $1,000,000 in bulk U.S. currency was seized in 2017 and 2018. The investigation also determined that over 50 additional kilograms of cocaine were delivered to Buffalo during the conspiracy.
During the course of the investigation, nine co-defendants were identified, charged and convicted in the case:
• Eduardo Enrique Valdez
• Edgar Pavia
• Eric Young
• Lance Parker
• Daniel Sterling
• Martin Lopez
• Ivan Rene Rios Bustillos
• Adrian Grier
• Gabrielle McGradyThe investigation has also resulted in the arrest of 21 additional defendants in the Eastern District of Kentucky and the Northern District of Ohio, and seizure of over an additional $2,000,000 and approximately 41 kilograms of cocaine.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard and Homeland Security Investigations, El Paso, Texas.
Adrian Goudelock is scheduled to sentencing on April 7, 2022, before U.S. District Judge John L. Sinatra, Jr. who presided over the trial of the case. Shamar Davis and Jai Hunter are scheduled to be sentenced on April 5 and April 6 respectively, also before Judge Sinatra.
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El Cajon Resident Sentenced to 15 Years for Selling Counterfeit Pills with Fentanyl that Caused 19-Year-Old’s DeathRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong and Adam Gordon (619) 546-9290
NEWS RELEASE SUMMARY—November 24, 2021
SAN DIEGO—El Cajon resident Olatunde James Temitope Akintonde was sentenced in federal court today to 15 years in prison for selling fentanyl-laced pills that caused the death of a 19-year-old Santee man, identified in court records as S.J.G., in March of 2019.
Akintonde previously admitted that he sent messages to S.J.G. through social media on February 28, 2019, to coordinate a sale of what the victim believed to be oxycodone pills. Later that evening, Akintonde delivered two counterfeit oxycodone pills laced with fentanyl to S.J.G. After the meeting, Akintonde sent additional messages to S.J.G. through social media warning that he should only take one of the pills because they were “strong.” Akintonde further admitted that the pills he gave to S.J.G. caused his death. According to other filings in the case, S.J.G. died in his home sometime in the evening of February 28, 2019 or the early morning hours of March 1, 2019.
Special Agents from the Drug Enforcement Administration and a Task Force Officer from the San Diego Sheriff’s Department led the investigation into S.J.G.’s death and quickly identified Aktinonde as the source of the fatal pills. According to the sentencing memorandum, Akintonde offered various prescription pills for sale through different social media platforms. Akintonde also posted photographs of himself brandishing firearms and posted songs promoting the use and distribution of pharmaceutical pills.
“There is an epidemic of counterfeit fentanyl-laced pills in our community,” said Acting U.S. Attorney Randy Grossman. “To be clear: If you are a drug dealer selling pills, and those pills result in death, you will be held accountable for that death. It is no defense to say you didn’t know the pills contained fentanyl.” Grossman praised the prosecution team as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from the San Diego Sheriff’s Department and the San Diego County District Attorney’s Office for their excellent work on this case.
“As the number of drug overdose deaths continues to rise in San Diego County, the DEA San Diego Field Division has made investigating overdose deaths a priority,” said DEA Acting Special Agent in Charge Shelly S. Howe. “We are committed to bringing drug dealers like Olatunde James Temitope Akintonde, who poison our communities, to justice.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into S.J.G.’s death.
DEFENDANTS Case Number 21cr1178-JLS
Olatunde James Temitope Akintonde Age: 23 El Cajon, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
San Diego Sheriff’s Department
San Diego County District Attorney’s Office
Des Moines Man Indicted on Attempted Child Exploitation, Attempted Enticement of a Minor and Related ChargesRead the Press Release
DES MOINES, IA – A federal grand jury in Des Moines returned an indictment on November 17, 2021, charging a Des Moines man with attempting to produce child pornography, attempted enticement of a minor to engage in illicit sexual activities and other related charges.
According to court documents, Dennis Eugene Kimball, age 57, of Des Moines, communicated online with an undercover officer posing as a minor female and arranged to meet her for sex in an area motel. Kimball also asked who he believed to be the minor female to send him sexually explicit images of herself and sent her videos of himself masturbating. Through online communication, Kimball also asked for her phone number to arrange a meeting for sex.
Kimball is charged with attempted sexual exploitation of a minor, enticement and attempted enticement of a minor to engage in illicit sexual activities, transfer and attempted transfer of obscene material to a minor, use and attempted use of interstate facilities to transmit information about a minor, and commission of a felony offense involving a minor by a registered sex offender. The defendant was arraigned on November 19, 2021, and was detained pending trial. If convicted of all charges, he faces a mandatory minimum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case is being investigated by the Altoona Police Department, Iowa Division of Criminal Investigation, Iowa Crimes Against Children Task Force, and the Federal Bureau of Investigation The following agencies have assisted in the investigation: Iowa Division of Intelligence, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, and the Polk County Attorney’s Office.
The public is reminded that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Davenport Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DAVENPORT, Iowa – On November 17, 2021, Kerry Bernard Morgan Jr., age 31, of Davenport was sentenced by United States District Court Chief Judge John A. Jarvey to 25 years in prison for Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl Purported to be Heroin Resulting in Death and Serious Bodily Injury. Morgan Jr. was ordered to serve five years of supervised release upon release from prison, immediately pay $100 to the Crime Victims’ Fund, and pay $15,969.75 in restitution with his codefendants.
According to evidence at trial, on September 11, 2019, members of the Davenport Police Department were dispatched to Genesis West Hospital for a drug overdose. The victim was quickly pronounced dead after being dropped off at the hospital by one of Morgan Jr.’s co-defendants. Members of the Bettendorf Police Department made contact with this individual, who later provided information in a post-Miranda interview that led detectives to a third co-defendant. Later in the day on September 11, 2019, this third co-defendant purchased a heroin/fentanyl mixture from Morgan Jr. Morgan Jr. was taken into custody after the sale and was found in possession of additional distribution quantities of a heroin/fentanyl mixture and ice methamphetamine. In a post-Miranda interview, Morgan Jr. admitted to distributing more than fifty grams of ice methamphetamine and selling distribution quantities of heroin and fentanyl purported to be heroin. At trial, it was learned that Morgan Jr. had provided the fentanyl later ingested by the victim to co-defendant Amber Maxwell, who then provided it to co-defendant Jarad Postell, who then gave it to the victim. The evidence showed that Morgan Jr. knew prior to September 11, 2019, he was distributing fentanyl purported to be heroin. Morgan Jr. was found guilty by a federal jury.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Drug Enforcement Administration and the Bettendorf Police Department investigated the case.
Davenport Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DAVENPORT, Iowa – A Davenport man, Jarad Paul Postell, age 40, was sentenced on Wednesday, November 17, 2021, by United States District Court Chief Judge John A. Jarvey to 25 years in prison for Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Fentanyl Purported to be Heroin Resulting in Death and Serious Bodily Injury. Following his imprisonment Postell was ordered to serve five years of supervised release, immediately pay $100 to the Crime Victims’ Fund, and pay $15,969.75 in restitution with his codefendants.
According to evidence at trial, Postell was identified after Davenport Police Department officers responded to Genesis West Hospital in reference to a drug overdose in September 2019. The victim was pronounced deceased upon arrival, and officers received the description of the individual and vehicle that had dropped the victim off. Members of the Bettendorf Police Department made contact with Postell and another individual shortly after the events at the hospital at a casino in Bettendorf. In a post-Miranda interview with law enforcement, Postell admitted to meeting the victim and conspiring with one of his co-defendants to obtain fentanyl purported to be heroin. In Postell’s presence, the victim used the purported heroin and began to drift in and out of consciousness. After a failed attempt at administering Narcan, Postell drove the victim to the hospital and dropped the victim off, where they were quickly pronounced deceased. On June 11, 2021, Postell was found guilty as charged after a jury trial.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Drug Enforcement Administration and the Bettendorf Police Department (BPD) investigated the case.
Dansville Teacher Arrested on Multiple Child Pornography ChargesRead 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 Derek Hagen, 29, of Batavia, NY, was arrested and charged by criminal complaint with producing, receiving, distributing, and possessing child pornography. The charges carry a minimum penalty of five years in prison and a maximum of 30 years.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, in September 2020, Snapchat sent a cybertip to the National Center for Missing and Exploited Children (NCMEC) regarding a user that had uploaded images of child pornography to a group chat. After tracing the user to Western New York, NCMEC alerted the New York State Police, who subsequently identified the defendant.
On July 20, 2021, investigators confiscated two computers and a cell phone from Hagen’s apartment in Mount Morris, NY. A forensic analysis uncovered a pattern of child exploitation activity on the devices with the defendant actively producing and distributing child pornography in online chats. During the chats, Hagen and the other individuals traded child pornography and discussed specific children that they had sexually abused or wanted to sexually abuse. To date, analysts have recovered approximately 50,000 of images and videos of child pornography on Hagen’s devices.
The complaint further states that the defendant worked in several teaching, substitute teaching, and child-care positions in the Western District of New York, including at the Brockport Childhood Development Center; the Batavia City School District; the Pembroke Central School District; and most recently with the Dansville Central School District.
Members of the public who have information related to this case are asked to contact Homeland Security Investigations at (716) 464-6070 or [email protected].
The criminal complaint is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, and the National Center for Missing and Exploited Children.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Chicopee Businessman Pleads Guilty to Role in Large Scale Drug ConspiracyRead the Press Release
BOSTON – A Chicopee businessman and the former owner and operator of TWC Auto Body in Holyoke pleaded guilty yesterday in federal court in Springfield in connection with a cocaine and heroin conspiracy.
Jamil Roman, 44, of Chicopee, pleaded guilty to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 23, 2022. Roman was indicted in March 2016 along with co-defendant Javier Gonzalez after their initial charge and arrest on March 26, 2014.
From January 2014 through March 2014, Roman and Gonzalez conspired to distribute four kilograms of cocaine in Western Massachusetts. Roman, who owns TWC Auto Body in Holyoke, admitted to meeting Gonzalez and conspiring to collect a debt owed for four kilograms of cocaine, which was part of a larger load that Gonzalez obtained from a Mexican supply source. On March 25, 2014, law enforcement seized approximately $1.17 million in cash from a hidden compartment inside a tractor trailer being driven by Gonzalez to Texas as payment for kilograms of heroin and cocaine.
On Oct. 4, 2021, Gonzalez was sentenced by Judge Mastroianni to 30 months in prison and two years of supervised release. Gonzalez was also ordered to pay a fine of $20,000.
The charge of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, a fine of $20 million and restitution. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mandell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. Assistant U.S. Attorney Neil L. Desroches of Mendell’s Springfield Branch Office is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Caldwell Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – A Caldwell man pleaded guilty to two counts of possession of child pornography.
According to court records, on May 5, 2020, a citizen witness reported that she observed child pornography on a cellphone belonging to Kenneth Rowe, 50, of Caldwell. The citizen witness turned the cellphone over to the Canyon County Sheriff’s Office and the investigation was referred to the Idaho Internet Crimes Against Children (ICAC) Task Force. ICAC obtained a federal search warrant to review the cellphone for evidence of the possession of child pornography and located over a thousand files of child pornography and evidence that Rowe was the owner of the cellphone. Law enforcement also located evidence that Rowe used an application on his cellphone to trade files of child pornography with other individuals. At the time of the investigation, Rowe was a registered sex offender who was on parole for a prior sex offense.
Sentencing is scheduled before Chief U.S. District Judge David C. Nye on February 15, 2022. Because Rowe has a prior conviction for a sexual offense, the crime of possession of child pornography is punishable by a mandatory minimum of ten years and up to 20 years in federal prison, a $250,000 fine, not less than five years and up to lifetime of supervised release, and a $5,100 special assessment. As part of his plea agreement, Rowe agreed to forfeit the cellphone he used in the commission of the offense.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho ICAC Task Force and the Canyon County Sheriff’s Office, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Burlington Men Sentenced to Federal Prison for Drug ConspiracyRead the Press Release
DAVENPORT, IA – On Monday, November 22, 2021, two Burlington men were sentenced to prison by United States District Court Chief Judge John A. Jarvey for their involvement in a drug conspiracy dating back to 2001.
Kendrick Ramon Page, age 39, originally from Shreveport, Louisiana, was sentenced to 340 months in prison and Breon Raquon Armstrong, age 20, also originally from Shreveport, Louisiana, was sentenced to 210 months imprisonment. There is no parole in the federal prison system.
Page, Armstrong, and six other co-defendants were federally charged in November 2019 following the execution of numerous search warrants in Burlington and elsewhere. Page and Armstrong were convicted by a jury in July 2021 of conspiracy to distribute controlled substances, including ice methamphetamine and cocaine base (a.k.a. crack cocaine). Page led this drug trafficking organization that operated primarily out of Burlington since approximately 2001, according to the evidence presented at trial. The evidence also showed Page recruited others, including Armstrong, to travel to Burlington from Shreveport to sell drugs for him.
At sentencing, the district court found Page was responsible for the distribution of over 100 pounds of ice methamphetamine. Both Page and Armstrong were found to have possessed firearms related to their drug trafficking activities and the district court found Page used credible threats of violence to further his drug trafficking activities.
Others charged included Alphonso Edmond, Jr., who pleaded guilty and is awaiting sentencing; Tristan Kareem Davis, who was found guilty by jury and is awaiting sentencing; Lavelle Harris, who pleaded guilty and was sentenced to 262 months in prison; Lamar Harris, who pleaded guilty and was sentenced to 210 months of imprisonment; Frederrick Dewayne Reed, who pleaded guilty and was sentenced to 160 months imprisonment; and Michael Rees, who pleaded guilty and was sentenced to 151 months of imprisonment. Other individuals associated with this drug trafficking organization have also been federally charged in the Southern District of Iowa, the Central District of Illinois, and the Northern District of Texas.
Southern District of Iowa United States Attorney Richard D. Westphal made the announcement. These charges stem from an investigation conducted by numerous federal, state, and local law enforcement agencies including: the Southeast Iowa Narcotics Taskforce; Burlington Police Department; Des Moines County Sheriff’s Office; Federal Bureau of Investigation; West Central Illinois Taskforce; Quincy, Illinois Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County Sheriff’s Office; Mt. Pleasant Police Department; West Burlington Police Department; Keokuk Police Department; Ft. Madison Police Department; Lee County Sheriff’s Office; Iowa City Police Department; Johnson County Sheriff’s Office; North Liberty Police Department; Coralville Police Department; Muscatine County Sheriff’s Office; Louisa County Sheriff’s Office; Washington County Sheriff’s Office; Bettendorf Police Department; Illinois State Police; Monmouth, Illinois Police Department; Macomb, Illinois Police Department; Galesburg, Illinois Police Department; Adams County, Illinois Sheriff’s Office; and Fulton County, Illinois Sheriff’s Office.
Brooklyn Man Arrested, Charged with Hacking into Online Accounts of Wegmans CustomersRead 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 Maurice Sheftall, 23, of Brooklyn, NY, was arrested and charged by criminal complaint with fraud and related activity in connection with computers and wire fraud. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, the defendant is accused of obtaining the credentials, including logins and passwords, of customers who had accounts on the wegmans.com website. Sheftall attempted to access approximately 74 different customer accounts, with approximately 59 of these attempts proving successful. Subsequently, the defendant placed approximately 25 fraudulent orders of groceries and other goods, totaling approximately $10,000.
Sheftall made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Baltimore Man Sentenced to More Than Seven Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Eric Donovan Ashe, age 24, of Baltimore, Maryland to 85 months in federal prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Hollander also ordered that, upon his release from prison, Ashe must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, from 2017 to September 2019, Ashe posed as multiple minor girls and sold purported self-made pornography to various men in exchange for over $24,000 in gift cards. In addition to searching for child pornography for at least five years, Ashe also distributed and received child pornography.
As detailed in his plea agreement, in 2016 Ashe pretended to be a female minor while communicating with a 13-year-old female victim (Minor Victim 1) on a social media platform. Ashe later communicated with Minor Victim 1 as himself, including engaging in sexually explicit conversations with Minor Victim 1. Ashe also created a fictious social media account in Minor Victim 1’s likeness, using pictures he uploaded from Minor Victim 1’s genuine social media account and a fictitious name. The Minor Victim 1 did not give permission for Ashe to use her likeness in any capacity.
While posing as a minor in the likeness of the Minor Victim 1, Ashe communicated with dozens of men, and arranged to sell sexually explicit pictures and videos of Minor Victim 1 (who he claimed to be to the men). Ashe offered various poses and sex acts in exchange for gift cards in various amounts. For example, on September 27, 2017, while posing as Victim 1, Ashe sent a “menu” to dozens of social media users for the price of certain images and sex acts to online users. In one instance, Ashe sent a messaging stating “100 would get u 2 nude 2 masturbation video and a full body nude”.
Once Ashe completed the negotiations on social media, he instructed buyers to send gift cards to him and then directed the buyers to communicate with him on another messaging application. Once on the messaging application, Ashe received payment and sent the explicit images to the buyers.
From July 7, 2017 to December 17, 2018, Ashe loaded over $24,000 in gift cards and spent at least $17,000 on electronics, restaurant gift cards, and clothing. All orders were shipped to Ashe’s Baltimore address.
As stated in his plea agreement, Ashe used two other fictitious social media profiles where he purported to be minor females. Specifically, on September 5, 2017, Ashe used a messaging application to send a 1 minute and 41 second video that depicts a prepubescent minor female engaged in sexual acts.
Law enforcement officials executed a search warrant at Ashe’s Baltimore residence on September 11, 2019. During the search, investigators seized three of Ashe’s devices which contained over 500 videos and 250 images of child pornography. The files included images of prepubescent minors engaging in sexual acts. A subsequent forensic analysis of Ashe’s devices revealed that Ashe had been searching for child pornography since 2014 and as recently as 2019. For example, on one of Ashe’s cell phones, Ashe searched phrases including: “movies about kids getting raped”, “are all men pedophile” and “necrophilia.”
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 praised the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted 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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Alburgh Man Sentenced to 15 Years’ Imprisonment for Child Exploitation OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on November 23, 2021, Randy Sheltra, 59, of Alburgh, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 15 years of imprisonment following his conviction, after a six-day jury trial, of two counts of attempting to persuade, induce, and entice a minor to engage in unlawful sexual activity, and one count of attempted receipt of child pornography. U.S. District Judge Christina Reiss also ordered Sheltra to serve a 30-year term of supervised release and to pay a special assessment of $300.
According to court records and proceedings, on September 7, 2017, Sheltra began communicating with a person whom he believed was the mother of a 10-year-old girl responding to his post on Craigslist. In reality, the woman was an undercover law enforcement officer. During communications between Sheltra and the undercover over the following three days, Sheltra attempted to persuade the woman to permit her 10-year-old daughter to engage in sexual activity with him. Law enforcement arrested Sheltra on September 10, 2017, when he arrived at a park in South Burlington to meet the woman and her daughter for sexual activity. Law enforcement seized Sheltra’s cell phone at the time of his arrest. Communications contained within the phone showed that in August 2017, Sheltra had attempted to persuade a real 15-year-old Vermont girl to engage in sexual activity with him and had, in fact, met with the child for sexual activity. Sheltra also asked the child to send him explicit photographs.In imposing Sheltra’s sentence, Judge Reiss found that Sheltra obstructed justice when he provided false testimony at his trial and qualified as a “repeat and dangerous” sex offender.
Acting U.S. Attorney Jonathan A. Ophardt commended the efforts of Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Sheltra.
The prosecution of Sheltra was handled by Assistant U.S. Attorneys Barbara A. Masterson and Andrew C. Gilman. Sheltra was represented by Mark Kaplan of Kaplan & Kaplan.
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 Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tuesday 23 November 2021
Worcester Landlord and Employee Agree to Resolve Sexual Harassment AllegationsRead the Press Release
BOSTON – A Worcester property landlord, Mohan Prashad, and employee, David Besaw, have agreed to resolve allegations that they violated the Fair Housing Act by sexually harassing female tenants. The settlement also resolves claims against Lanaton LLC and Savton LLC, which, along with Prashad, owned the properties where the harassment occurred.
The lawsuit, filed in 2019, alleged that since at least 2009, Prashad subjected female tenants to harassment including unwelcome sexual advances and comments, making unscheduled and frequent visits to certain tenant units without legitimate property management reasons for the visits, and taking adverse actions against tenants who resisted his sexual overtures. The complaint further alleged that Besaw sexually harassed and assaulted tenants and that Prashad, after receiving notice of Besaw’s harassment, retaliated against one tenant by filing an eviction action against her and failing to take action to prevent Besaw from engaging in additional sexual harassment.
“The sexual harassment of tenants is an appalling abuse of economic and social power that warrants serious consequences,” said Acting United States Attorney Nathaniel R. Mendell. “Everyone has a right to feel safe and secure in their home, and the Fair Housing Act gives us the tools to enforce that for tenants. My office will continue to enforce these important civil rights laws to protect vulnerable individuals, hold violators accountable and secure justice for victims.”
“Sexually harassing tenants in their homes and retaliating against those who have complained about experiencing harassment are egregious forms of sex discrimination and violate the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that no individual is subjected to housing discrimination or retaliatory eviction because of their sex.”
Under the consent decree, which must be approved by the U.S. District Court for the District of Massachusetts, the defendants must pay the individuals harmed by the harassment $65,000 in compensation, a $10,000 civil penalty to the United States and vacate a judgment that the defendants had obtained against a former tenant in housing court.
The consent decree bars future discrimination and retaliation and requires that property management responsibilities be turned over to an independent manager. It also mandates the implementation of a sexual harassment policy, complaint procedure and Fair Housing Act training and requires detailed reporting on property management activities and compliance with the terms of the consent decree. In addition, Prashad and Besaw are barred from participating in property management responsibilities at residential rental properties.
Acting U.S. Attorney Mendell and Associate Attorney General Clarke made the announcement today. Assistant U.S. Attorneys Torey B. Cummings and Michelle Leung, of Mendell’s Civil Rights Unit, and Trial Attorney Kinara A. Flagg, of the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division, handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Woodbury County Man Pleads Guilty to Meth TraffickingRead the Press Release
A man who possessed methamphetamine with the intent to distribute pled guilty on November 19, 2021, in federal court in Sioux City. Donovan Lang, 27, from Sioux City, Iowa, was convicted of one count of possession with intent to distribute methamphetamine.
At the plea hearing, Lang admitted that on August 15, 2021, in Sioux City, Iowa, he was the sole back seat passenger of a vehicle stopped for various traffic violations. During the traffic stop, Lang was found to possess a knife and roughly 100 grams of methamphetamine. The methamphetamine was wrapped in purple latex gloves that were found beneath where Lang was seated. About 5-7 matching purple latex gloves and a knife were found in Lang’s pockets.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Lang remains in custody of the United States Marshal pending sentencing. Lang faces a mandatory minimum sentence of 5 years’ imprisonment, a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Sioux City Police Department and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4077.
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Williamsburg Man Sentenced for Possessing and Intending to Distribute Multiple DrugsRead the Press Release
JOHNSTOWN, PA - A resident of Williamsburg, Pennsylvania, has been sentenced in federal court to 3 years of imprisonment on his conviction for possession with intent to distribute multiple Schedule I and II controlled substances, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim Gibson imposed the sentence on Jesse Daniel Ginter, 40.
Previously, in connection with his guilty plea, the court was advised that on March 12, 2018, Homeland Security Investigations agents and other law enforcement executed a federal search warrant on Ginter’s residence and recovered quantities of numerous controlled substances, including furanyl fentanyl, methoxyacetyl fentanyl, cyclopropyl fentanyl, U-47700, AMB-Fubinaca, carfentanil, fentanyl, marijuana, cocaine, and methamphetamine. The Court was further advised that investigators recovered firearms, ammunition, currency, a digital scale, stamp bags, and other indicia of drug trafficking from Ginter’s residence.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The U.S. Postal Inspection Service; U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations; Federal Bureau of Investigation; and Pennsylvania State Police conducted the investigation leading to the successful prosecution of Ginter.
White River Man Sentenced to over 11 Years in Federal PrisonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man convicted of Enticement of a Minor Using the Internet was sentenced on November 19, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Justin Boyles, age 41, was sentenced to 11 years and 3 months in federal prison, followed by 5 years of supervised release, and ordered to pay $100 special assessment to the Federal Crime Victims Fund.
Boyles was indicted by a federal grand jury in June 2019. He pleaded guilty on April 9, 2021.
The charge related to Boyles using the internet to facilitate sexual intercourse with a juvenile female.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Boyles was immediately turned over to the custody of the U.S. Marshals Service.
Waterloo Woman Sentenced to a Decade in Prison for Her Role in a Large-Scale Meth Trafficking RingRead the Press Release
A Waterloo, Iowa, woman who was involved in the importation and distribution of over 4,000 grams of methamphetamine was sentenced today to ten years in federal prison.
Breanna Garcia, age 34, from Waterloo, Iowa, received the prison sentence after a May 3, 2021 guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that in 2018, investigators began investigating a large-scale drug trafficking organization operating between Mexico and Iowa. As part of the investigation, investigators conducted a wiretap investigation of a phone utilized by Travis Werkmeister, Garcia’s boyfriend. Investigators intercepted thousands of calls and text messages between Werkmeister and other members of the drug-distribution organization, including Garcia. Werkmeister worked with Mario Hernandez, the leader of the organization who was based out of Mexico, to import kilos of methamphetamine with the purpose that the methamphetamine be redistributed in Iowa. Garcia would collect money on behalf of Werkmeister and meet with other members of the organization on behalf of Werkmeister. Garcia has a lengthy criminal history dating back to 2006. Since that time, she has acquired 21 criminal convictions.
Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Garcia was sentenced to 120 months’ imprisonment. She must also serve a five-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), Iowa National Guard and Counter Drug Program, Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2034.
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Two Metro East Men Sentenced for Robbing Marijuana Dealer and Shooting WitnessRead the Press Release
Benton, Ill. – Two men have been sentenced for their role in a 2018 marijuana robbery and shooting
in Caseyville, Illinois. Deveon Humphries, 28, was sentenced to 144 months in federal prison on
one count of interfering with commerce by robbery and one count of discharging a firearm during and
in relation to a crime of violence. The sentencing hearing was conducted on Monday, November 22,
2021, in U.S. District Court in Benton, Illinois. Humphries pled guilty to the charges in May of
this year. His co-defendant, Dartaniel Pruitt, 27, was sentenced in August of this year.
According to court documents, the crimes occurred on September 30, 2018, when Humphries
arranged a fake marijuana sale with the plan to rob the marijuana dealer. Humphries was armed and
had concocted a plan with his co-defendant, Pruitt, to take the marijuana at gunpoint.
During the robbery, Humphries shot a witness several times. Pruitt and Humphries fled
the scene with the marijuana. The Caseyville Police Department investigated the
robbery and later recovered Humphries’ firearm.As part of their sentences, Humphries and Pruitt were also ordered to serve a 5-year
term of supervised release.This case was brought as 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.The investigation was conducted by the Caseyville Police Department and the Bureau of Alcohol,
Tobacco, Firearms & Explosives.
The case was prosecuted by Assistant United States Attorney Alexandria Burns.Toledo Man Sentenced for Illegal Possession of Firearms and Improvised Explosive DeviceRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Jeffrey Davenport, 52, of Toledo, was sentenced on Monday, November 22, by Judge Jack Zouhary to 54 months in prison after Davenport pleaded guilty to being a felon in possession of a firearm and possession of an unregistered destructive device.
As set out in court documents, on July 1, 2020, the Toledo Police Department’s Special Weapons and Tactics (SWAT) team and members of the Northwest Ohio Bomb Squad executed a search warrant at Davenport’s residence on Atlantic Avenue in Toledo. During the search, law enforcement officers obtained a smoke grenade, three inert grenades, one flak jacket, miscellaneous ammunition, 11 firearms and an improvised explosive device.
While executing the warrant, law enforcement officers detained two of Davenport’s associates, who later admitted to removing several firearms and ammunition from the Davenport residence to conceal them from police. These items included eight boxes of miscellaneous ammunition, a green rifle case, seven firearms and a 12-gauge shotgun.
Davenport is prohibited from possessing firearms due to previous convictions of felonious assault and attempted felonious assault on a peace officer in 2003 in the Lucas County Common Pleas Court.
This case was investigated by the ATF and Toledo Police Department. This case was prosecuted by Assistant United States Attorney Deyana F. Unis.
Terrebonne Parish Man Indicted for Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – BEAU HEBERT, age 40, of Terrebonne Parish, La., was charged November 19, 2021, in a 4-count indictment by a Federal Grand Jury with several narcotics offenses, including distribute and possession with intent to distribute fifty (50) grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(A). HEBERT was also charged with possession of a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A)(i), announced U.S. Attorney Duane A. Evans.
If convicted of the narcotics trafficking charges, HEBERT faces a mandatory minimum term of ten (10) years imprisonment and up to a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least five (5) years of supervised release following any term of imprisonment. HEBERT also faces ten (10) years of imprisonment if convicted of being a felon in possession of a firearm, in addition to a consecutive sixty (60)-month term of imprisonment if convicted of possessing a firearm in furtherance of drug trafficking. HEBERT also faces a $100 mandatory special assessment fee per count.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the defendant’s guilt must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration, Terrebonne Parish Sheriff’s Office, Houma Police Department, St. Charles Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, St. John Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney Melissa Bücher.
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Sunnyvale Man Sentenced to 15 Months for Visa FraudRead the Press Release
SAN JOSE – Kishore Kumar Kavuru was sentenced late yesterday in federal court to 15 months in prison for making false statements in foreign worker visa applications, announced Acting United States Attorney Stephanie M. Hinds, U.S. Department of Labor Office of Inspector General Special Agent in Charge Quentin Heiden, Los Angeles Region, and Homeland Security Investigations Special Agent in Charge Tatum King. The sentence was handed down by United States District Judge Edward J. Davila.
Kavuru, 49, of Sunnyvale, California, pleaded guilty to one count of visa fraud on May 24, 2021. In his plea agreement, Kavuru stated he owned, operated, and was CEO of four different staffing companies. His companies specialized in obtaining H-1B visas for foreign skilled workers and placing these individuals in the United States at technology firms seeking qualified H-1B contractors. Known as H-1B Specialty Occupation Workers program, the H-1B visa program allows an employer to temporarily hire a skilled foreign worker in the United States on a nonimmigrant basis. The position must qualify as a “specialty occupation,” that is, one that requires the application of specialized knowledge and a bachelor’s degree or equivalent in the specialty. At the four staffing companies he owned and ran, Kavuru was responsible for creating H-1B visa applications for foreign workers and submitting them to the appropriate government agencies of the United States.
Kavuru admitted in his plea agreement that from 2009 through at least 2017 he engaged in a scheme to obtain H-1B visas from government agencies by submitting H-1B applications that contained false and fraudulent statements. Kavuru admitted to submitting more than one hundred applications that falsely described available H-1B positions and falsely stated that the H-1B workers were to be placed at the positions at specific companies. Kavuru admitted he knew at the time he submitted the applications that the companies did not have the named jobs and that he did not intend to place the workers at those companies. None of those foreign skilled workers were ever placed at those companies. Kavuru – or one of his employees at Kavuru’s direction – nevertheless signed the visa applications attesting under penalty of perjury to the truth of those false statements.
Kavuru further admitted that he required the H-1B foreign skilled workers to pay him thousands of dollars in cash for the cost of preparing and submitting their H-1B visa petitions, which is a violation of U.S. Department of Labor (US DOL) regulations. He also admitted requiring his H-1B visa recipients to go unpaid for months while he looked for legitimate H-1B positions for them, violating US DOL regulations by failing to pay H-1B workers while they are “benched” in this manner.
In a memo filed for sentencing, the government calculated that Kavuru orchestrated the submission of over 100 fraudulent H-1B visa applications that earned him more than $1.5 million in fraudulently-obtained proceeds.
In addition to his 15 month prison sentence imposed for visa fraud in violation of 18 U.S.C. § 1546(a), United District Judge Edward J. Davila entered a forfeiture money judgment in the amount of $533,350.03. The sentence also included a three year period of supervision following Kavuru’s release from prison.
Kavuru will surrender to begin serving his sentence on February 10, 2022.
Assistant United States Attorney Maia T. Perez prosecuted the case, with the assistance of Lakisha Holliman. The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Inspector General and Homeland Security Investigations.
Suburban Chicago Tax Preparer Sentenced to Two Years in Federal Prison for Orchestrating a Variety of Fraud SchemesRead the Press Release
CHICAGO — A suburban Chicago tax preparer has been sentenced to two years in federal prison for orchestrating a variety of schemes that defrauded the IRS, U.S. Department of Education, and U.S. Social Security Administration.
LISA LLOYD TAYLOR, owner of Ebiz Accounting Services in Country Club Hills, Ill., willfully filed false personal or corporate tax returns from 2010 to 2013 that substantially underreported her own income or the income earned by her business. From 2011 to 2015 Taylor also willfully prepared thousands of tax returns for her clients that claimed false deductions for purported charitable contributions and child-care expenses. Taylor’s tax schemes resulted in a total federal and state tax loss of more than $1.02 million.
In addition to the tax offenses, Taylor underreported her income to fraudulently obtain more than $53,000 in financial aid benefits for her children. Taylor’s children otherwise would not have qualified for the Department of Education grants.
Taylor also defrauded the Social Security Administration by applying for and collecting more than $134,000 in disability benefits to which she was not entitled. From 2011 to 2017, Taylor concealed from the SSA the extent to which she was working and the amount of income she received from Ebiz.
Taylor, 57, of Country Club Hills, pleaded guilty to federal tax and theft charges. U.S. District Judge Andrea R. Wood imposed the sentence Friday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Social Security Administration's Office of the Inspector General, and the U.S. Department of Education’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.
Subcontractor Employee Working at Cyril E. King Airport Sentenced to 37 Months in Federal Prison for Stashing 4 Kilograms of Cocaine in Men’s BathroomRead the Press Release
St. Thomas, USVI – United States Attorney for the District of the Virgin Islands Gretchen C.F. Shappert announced today that Keilin Lopez Lopez, 22, resident of St. Thomas, V.I., was sentenced to 37 months imprisonment followed by a four-year term of supervised release for possessing with intent to distribute approximately 4 kilograms of cocaine.
According to court documents, on July 31, 2020 at approximately 6:30 p.m., a Virgin Islands Port Authority employee witnessed a male tampering with a trashcan in a stall in the male restroom located inside the Cyril E. King terminal. Officers removed the trashcan from the wall revealing an open recess in between both sides of the interior wall. One large brick-shaped bundle and one small brick-shaped bundle containing approximately 4 kilograms of cocaine were lying at the bottom of the recess where the trashcan was previously inserted.
Airport surveillance footage showed a male, later identified as Keilin Lopez Lopez, wearing a backpack enter the bathroom where the bundles were discovered. Officers located Mr. Lopez who is an employee for a company contracted to work on the airport remodel. After being advised of his constitutional rights, Mr. Lopez waived them and stated he removed the trashcan from the wall in the restroom stall and placed the bundles inside the wall.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Patrol. Assistant United States Attorney Juan Albino prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Stoughton Man Indicted on Bank and Wire Fraud Scheme Related to COVID-19 PandemicRead the Press Release
BOSTON – A Stoughton man was indicted yesterday in connection with his alleged involvement in a fraudulent scheme to obtain COVID-19-related small business loans from several financial institutions.
Patrick Joseph, 39, was indicted on one count each of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud. Joseph will appear in federal court in Boston at a later date.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
According to the indictment, Joseph participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Joseph and a co-conspirator allegedly submitted 12 fraudulent PPP loan applications, both in their own names and in the names of others, at several financial institutions. It is also alleged that Joseph and his co-conspirator received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications.
The charge of bank fraud and conspiracy to commit bank fraud provide for a sentence of up to 30 years in prison, up to five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Valuable assistance in the investigation was provided by the U.S. Postal Service, Massachusetts State Police and the Boston Police Department. Assistant U.S. Attorney Christopher J. Markham, of Mendell’s Securities, Financial & Cyber Fraud Unit, and Assistant U.S. Attorney Philip C. Cheng, of Mendell’s Narcotics & Money Laundering Unit, are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Chiropractor Pleads Guilty and Agrees to $9 Million False Claims Act Consent JudgmentRead the Press Release
Washington, D.C. --- On Nov. 8, the U.S. District Court for the District of South Carolina entered a $9 million civil consent judgment for the United States against South Carolina chiropractor Daniel McCollum under the False Claims Act. On that same day, the U.S. Attorney’s Office for the District of South Carolina filed an information and plea agreement in which McCollum admitted to engaging in a conspiracy to pay illegal kickbacks and to defraud healthcare programs by billing for unnecessary medical services. The maximum criminal penalty McCollum could face is five years in prison and a fine of $250,000. A sentencing date has not been set.
McCollum owned and operated pain management clinics, laboratories and a pharmacy in South Carolina. He also operated pain management clinics in North Carolina and Tennessee. McCollum’s clinics did business collectively as Pain Management Associates.
On May 31, 2019, the United States filed a civil complaint alleging that McCollum caused the submission of false claims to federal health care programs arising from kickbacks he paid for urine drug testing (UDT) referrals in violation of the Anti-Kickback Statute; referrals prohibited under the Stark Law from physicians with whom McCollum had financial relationships; and claims for UDT and other services that were not medically necessary and that lacked a legitimate medical purpose.
On Oct. 29, McCollum agreed to resolve the government’s False Claims Act allegations, including admitting that he violated the Anti-Kickback Statute by providing kickbacks in the form of a direct bill program whereby his laboratory, Labsource, gave referring providers an opportunity to earn revenue generated from their commercially-insured UDT referrals as an inducement for those providers to refer all of their federally-insured UDT patients to Labsource. McCollum also caused medically unnecessary prescriptions for pain creams often without the knowledge or approval of the patients’ healthcare providers and regardless of whether the prescription had a legitimate medical purpose. McCollum admitted that the aforementioned conduct constituted misrepresentations, fraudulent omissions and/or deceptive conduct, and that he engaged in this conduct with an intent to deceive the United States and cause the United States to pay false or fraudulent federal healthcare program claims.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal healthcare programs, including laboratory testing services.
“Improper financial relationships between healthcare providers and laboratories can lead to overutilization and increase the cost of healthcare services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The provision of medical services and prescriptions should be based on a patient’s medical needs rather than the financial interests of providers.”
“This office will use all tools necessary to ensure justice, deterrence and prevention of healthcare fraud,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “The criminal guilty plea and the civil consent judgment entered against the defendant in this case demonstrates that effort.”
“McCollum engaged in deceptive conduct by exploiting the vital programs on which they depend,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable individuals who endanger the integrity of federal healthcare programs and the beneficiaries they serve.”
“The TRICARE Program is vital to the health and readiness of our active duty service members, retirees and their families,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Today’s announcement should leave no doubt that DCIS and its law enforcement partners remain committed to rooting out fraud, holding bad actors accountable and protecting the integrity of the Department of Defense.”
The civil judgment resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight and Karen Mathewson, all former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.). In connection with this matter, the United States previously was awarded civil judgments totaling over $140 million against entities owned or operated by McCollum: Oaktree Medical Centre P.C., FirstChoice Healthcare P.C., Labsource LLC, Pain Management Associates of the Carolinas LLC, Pain Management Associates of North Carolina P.C., ProLab LLC and ProCare Counseling Center LLC.
The civil judgment and criminal plea obtained in this matter were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the FBI, HHS-OIG, the South Carolina Attorney General’s Office and the DCIS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The litigation was handled by Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova and David Wiseman and Assistant U.S. Attorneys Beth Warren and Bill Watkins for the District of South Carolina.
Note: View a copy of the stipulation of settlement here.
Sioux Falls Woman Sentenced to 20 Years in Federal Prison in Fentanyl Overdose CaseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls woman convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury was sentenced on November 4, 2021 by District Court Judge Karen E. Schreier.
Halie Sletten, age 43, was sentenced to 20 years in prison, followed by 3 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Sletten was indicted for Distribution of a Controlled Substance Resulting in Serious Bodily Injury by a federal grand jury on October 6, 2020. She pled guilty on August 20, 2021.
On or about January 17, 2020, in the District of South Dakota, Sletten knowingly and intentionally distributed fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance, and the distribution of said fentanyl and heroin resulted in the serious bodily injury of Victim #1, in violation of 21 U.S.C. § 841(a)(1).
Victim #1 injected the fentanyl and heroin that Sletten distributed to him. The fentanyl and heroin injected by Victim #1 caused Victim #1 to sustain an overdose. Paramedics were called and administered two doses of Narcan to Victim # 1, which revived him. Victim #1 would not have sustained an overdose if not for the fentanyl and heroin Sletten distributed. The overdose caused Victim #1 a substantial risk of death.
This case was investigated by the Brandon Police Department, Sioux Fall Police Department, Sioux Falls Area Drug Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Sletten was immediately turned over to the custody of the U.S. Marshals Service.
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Sioux Falls Man Sentenced to 10 Years for Involvement in Meth ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 1, 2021, by District Court Judge Karen Schreier.
Ashton Aman, age 37, was sentenced to 10 years in federal prison, followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Aman was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 2, 2021. He pled guilty on July 12, 2021.
Beginning on an unknown date and continuing until on or about February 2, 2021, in the District of South Dakota and elsewhere, Aman knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to distribute 500 grams or more of a mixture and substance containing methamphetamine, a Schedule II controlled substance. Aman distributed over 500 grams of methamphetamine to co-conspirators which was then re-distributed to their own customers in the District of South Dakota and elsewhere.
This case was investigated by Homeland Security Investigations and the Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Aman was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Omot Musa Karlo, age 20, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 22, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 31, 2021, Karlo, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Glock 19mm Luger caliber, semi-automatic pistol, which had been previously shipped and transported in interstate and foreign commerce.
The charge is merely an accusation and Karlo is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Karlo was remanded to the custody of the State pending trial. A trial date has not been set.
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Shepherd restaurant owner admits theft in COVID-19 relief loan programRead the Press Release
BILLINGS – A Shepherd man who owns the Feedlot Steakhouse in Shepherd admitted to allegations today that he received approximately $75,000 in a COVID-19 relief loan from the Small Business Administration (SBA) for his business but used the funds to buy vintage automobiles as an investment, U.S. Attorney Leif M. Johnson said.
Michael Eugene Bolte, 70, pleaded guilty to theft of government money, property or records, a misdemeanor, as charged in a superseding information. Bolte faces a maximum of one year in prison, a $100,000 fine and one year of supervised release.
A plea agreement reached in the case calls for the government to recommend to the court at sentencing that an indictment be dismissed and for Bolte to be responsible for full restitution of $74,800. Bolte also agrees to a criminal forfeiture of the vintage automobiles, including a 1916 Studebaker, a 1929 Franklin, a 1939 Ford Deluxe and a 1941 Ford Super Deluxe.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for April 13, 2022. Bolte was released pending further proceedings.
“Federal programs, like the one at issue here, don’t work when people cheat. If someone like Bolte applies for federal program funds intended to help businesses survive the pandemic, but buys classic cars instead, that deprives other deserving applicants of the opportunity to use the funds. These government loan programs rely on the integrity of applicants to use the money as intended. When people try to cheat, they will be thoroughly investigated and prosecuted,” U.S. Attorney Johnson said.
“Individuals that attempt to defraud government programs meant to help struggling businesses and taxpayers will be brought to justice,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “We are pleased to work with our law enforcement partners to prosecute these crimes and to ensure the public is aware of our commitment to investigate those that commit these crimes.”
The government alleged in court documents that on April 1, 2020, Bolte applied to the SBA for a business loan under the Economic Injury Disaster Loan (EIDL) program, authorized by the Coronavirus Aid, Relief and Economic Security Act. On May 24, 2020, Bolte signed a loan agreement for $74,800 and expressly acknowledged the EIDL loan would be used solely as working capital for his business. Bolte’s intent at the time of signing for the loan was to buy vintage automobiles as an investment, and not as working capital for his business. Eleven days after receiving the loan, Bolte wrote a check for $75,000 for the purchase of four vintage vehicles. The SBA would not have approved or funded Bolte’s loan had it known Bolte’s intended and actual use of the funds.
Assistant U.S. Attorney Michael A. Kakuk prosecuted the case, which was investigated by the IRS Criminal Investigation, with assistance from the SBA Office of Inspector General and the U.S. Attorney’s Office.
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
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San Diego Resident Sentenced to Nearly 14 Years for Distributing Fentanyl that Resulted in 18-Year-Old’s DeathRead the Press Release
Assistant U. S. Attorneys Owen Roth and Lawrence A. Casper (619) 546-7710
NEWS RELEASE SUMMARY—November 22, 2021
SAN DIEGO—San Diego resident Brandon Jacob Shepherd was sentenced in federal court today to thirteen years and eleven months in prison for selling fentanyl that resulted in the death of an 18-year-old San Diego woman, identified in court records as P.E.R., in January of 2020. He received one month of custodial credit for time served in a local facility before being transferred to federal custody, for a total period of 168 months in custody.
Shepherd previously admitted that on the evening of January 14, 2020, he agreed to coordinate a sale of fentanyl to the victim with co-defendant Leon Chester Kolin III. That evening, Shepherd sold P.E.R. and Kolin a gram of fentanyl for $100 or $120, in the hotel room that Shepherd was staying in and using to distribute fentanyl. After the sale, Shepherd smoked fentanyl with P.E.R. and Kolin; P.E.R. overdosed at that time, but did not die. Kolin took P.E.R. home, with additional fentanyl resin that Shepherd provided. After P.E.R. left, Shepherd told a friend that she nearly “fell out,” meaning she had almost died. Days later, P.E.R. smoked some of the fentanyl resin provided by Shepherd, overdosing and dying. She was only eighteen years old at the time of her death.
Special Agents and Task Force Officers with the Drug Enforcement Administration led the investigation into P.E.R.’s death and identified Shepherd as the source of the fentanyl. Investigators subsequently searched Shepherd’s hotel room. There, they found packages containing fentanyl powder, counterfeit blue “M30” pharmaceutical tablets laced with fentanyl, digital scales bearing fentanyl residue, cash, and unused plastic baggies. They also found and arrested co-defendants Anthony Gascon and Christopher Barksdale, with whom Shepherd was engaged in an ongoing fentanyl distribution scheme. These two defendants, as well as Kolin, were sentenced prior to today.
“Tragically, fentanyl has again cut down the life of a bright and promising future here in our community, whose loss will forever be felt by her family,” said Acting U.S. Attorney Randy Grossman. “This Office will continue to aggressively pursue and prosecute anyone who seeks to profit, or even to further their own addiction, by peddling this poison. If someone dies from fentanyl you provide them, we will use every tool at our disposal to hold you responsible.” Grossman praised prosecutors Owen Roth and Lawrence Casper as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from partnering state and federal agencies for their excellent work on this case.
“The United States just recorded the highest number of drug-overdose deaths in a 12-month period, with over 100,000 Americans losing their lives,” said DEA Acting Special Agent in Charge Shelly S. Howe. “Individuals like Brandon Shepherd are fueling the fire of the drug epidemic. His sentencing today sends a stark reminder that if you choose to sell drugs and risk the lives of others, you will be held accountable.”
“Removing these dangerous and often deadly drugs from the streets is a priority for HSI, as it’s critical to preventing additional overdose deaths in our communities,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “I am extremely proud of our HSI Special Agents and law enforcement partners for the success of this investigation and for making our neighborhoods safer.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into P.E.R.’s death.
DEFENDANT Case Number 20-CR-810-BAS
Brandon Jacob Shepherd Age: 26 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum penalty: Twenty years in prison
Distribution of Fentanyl – Title 21, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
Conspiracy to Distribute 40 grams or More of Fentanyl – Title 21, United States Code, Sections 841(a) & (b)(1)(B)
Minimum penalty of 5 years and maximum penalty of 40 years in prison
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
San Diego Police Department
California Department of Health Care Services
Rosebud Woman Charged with Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Kendall Logan, age 28, was indicted on March 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 23, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on February 5, 2020, in Todd County, Logan did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal officer by using a dangerous weapon, shod feet, while the officer was engaged in his official duties.
The charge is merely an accusation and Kendall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Kendall was released on bond pending trial. A trial date has not been set.
Rochester Man Going to Prison for More Than 10 Years for Violent CarjackingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced that Jacob R. Loyd, 21, of Rochester, N.Y., who was convicted of carjacking and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 123 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Cassie Kocher and Matthew McGrath, who handled the case, stated that at approximately 6:30 p.m. on June 16, 2019, two victims (Victim A and Victim B) were sitting in a vehicle in the area of 115 Gothic Street in Rochester when Loyd and two others approached the vehicle. Loyd pointed a firearm at Victim A’s head and said, “don't do anything stupid, don't look up or I'll blow your head off,” and he ordered the victims to get out of the car. As Victim A exited the car, Loyd struck him in the head with the firearm. Loyd and the two others then drove away in the vehicle. Police officers recovered the vehicle at approximately 8:25 p.m. near 146 Alphonse Street in Rochester. The radio and hubcaps had been removed from the vehicle. Loyd was taken into custody a short time later with 15 bags of cocaine and a revolver in his possession.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David M. Smith, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
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Rochester Felon Going to Prison on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced that John Moore, 37, of Rochester, NY, who was convicted of being a felon in possession of a firearm and possession of a firearm with an obliterated serial number, was sentenced to serve 51 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that Moore has four prior felony drug convictions in Monroe, Schuyler, and Steuben Counties and is legally prohibited from possessing a firearm. In April 2020, Rochester Police officers were called to Tremont Street for a report of a man named John in a blue minivan with a gun. Upon arrival, officers saw Moore near the driver door of the blue minivan before he quickly entered a nearby house through the front door. Officers subsequently recovered a silver revolver with an obliterated serial number under the driver seat of the blue minivan.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David M. Smith, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
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Repeat Child Sex Offender from Rock Hill Sentenced to More Than 11 and a Half Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Xanthus Nakia Murdaugh, 46, of Rock Hill, was sentenced to more than 11 and 1/2 years in federal prison after pleading guilty to an offense related to the attempted sexual exploitation of a child.
Evidence presented to the court showed that Murdaugh is a repeat offender, having a prior federal child pornography conviction and a prior state conviction for Solicitation of a Crime Against Nature. Murdaugh also admitted to the sexual abuse of numerous minors, including children in the foster system, for which he had never been held accountable.
Evidence presented in court further showed that on November 6, 2019, Murdaugh communicated with undercover law enforcement on a social media application that allows users anonymously communicate with other users. On that same date, Murdaugh began speaking with who he was told was a mother who needed help with her children. After Murdaugh was told the mother had a 13-year-old daughter, he indicated an interest in having sex with the minor. With condoms and lubricant, Murdaugh drove to a residence where he was told the 13-year-old minor would be present. Murdaugh was arrested that night and has remained in custody since that time. Murdaugh ultimately pled guilty to the attempted coercion and enticement of a minor.
United States District Judge J. Michelle Childs sentenced Murdaugh to 140 months in federal prison, near the top of his advisory guideline range, to be followed by a 10-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Department of Homeland Security (HSI), York County Sherriff’s Office, Federal Bureau of Investigation (FBI), United States Secret Service, South Carolina Attorney General’s Office, North Carolina State Bureau of Investigation, and Naval Criminal Investigative Service. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Puerto Rican Man Sentenced to 40 Months in Federal Prison for Smuggling $3.75 Million Onboard a Vessel Interdicted Near Brewers Bay, St. Thomas, USVIRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Jerry Kirkland-Marrero, 31, from Puerto Rico, was sentenced today to 40 months imprisonment, followed by 30 months of supervised release, for conspiracy to conceal more than $100,000 on board a vessel outfitted for smuggling.
According to court documents, Kirkland-Marrero was one of three occupants on a vessel that U.S. Customs and Border Protection Air and Marine Operations (CBP AMO) interdicted in the waters near Brewers Bay, St. Thomas, USVI, on the night of April 21, 2020. The vessel was stopped after agents noticed it entering the area without its lights illuminated. As CBO AMO initiated a stop of the vessel, agents observed the vessel’s occupants throwing duffle bags overboard. The agents recovered three duffle bags from the water, as well as a fourth bag that one of the occupants had been in the process of trying to throw overboard when the agents boarded the vessel. Each of the duffle bags contained vacuum sealed bundles of U.S. currency, with a combined total value of approximately $3,765,740 in U.S. currency. One of the bags was equipped with a GPS tracker.
Court documents further reveal that, while on release pending resolution of this case, Kirkland-Marrero’s two co-defendants were fatally gunned down in Puerto Rico.
The U.S. Department of Homeland Security, Homeland Security Investigations, and U.S. Customs and Border Protection Air and Marine Operations investigated the case.
Assistant U.S. Attorney Meredith J. Edwards prosecuted the case, which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Portage Woman Sentenced for Wire FraudRead the Press Release
HAMMOND – Jessica Guska (a/k/a Jessica Irvine, Jessica Brewer, Jessica Carrington and Jessica Hoggard), 43, Portage, Indiana was sentenced by United States District Court Chief Judge Jon E. DeGuilio upon her plea of guilty to wire fraud, announced United States Attorney Clifford D. Johnson.
Guska was sentenced to 4 months in prison followed by 4 months home detention and 2 years of supervised release. She was also ordered to pay $29,490.34 in restitution to the victim of her offense.
According to documents in this case, Guska was the president of Cedar Lake-based Riptide Travel Softball, a competitive softball club for girls. Guska was responsible for managing Riptide Travel Softball’s finances. From August 2018, until approximately October 2019, Guska embezzled money meant for Riptide Travel Softball and used it to pay her personal expenses, including health care costs, air travel, vacations and property taxes.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Cedar Lake Police Department. This case was prosecuted by Assistant United States Attorneys Molly Kelley and Diane Berkowitz.
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Pittsburgh Man Sentenced to Prison for Defrauding Financial InstitutionsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been sentenced in federal court to 44 months in prison on his conviction of conspiracy, access device fraud, and aggravated identity theft, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicolas Ranjan imposed the sentence on Sulemon Arowokoko, 32, of Pittsburgh, Pa.
According to information presented to the court, Arowokoko was part of a conspiracy that involved using stolen identity information to induce financial institutions to issue credit and debit cards on victim customers’ accounts. Over the course of approximately two years, Arowokoko used those fraudulently obtained credit and debit cards to obtain more than $250,000 worth of gift cards, clothes, jewelry, cologne, perfume, furniture, and other items. Some of those items were shipped to Nigeria as part of the conspiracy.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
United States Attorney Chung commended the Department of Homeland Security Investigations and United States Postal Inspection Service for the investigation leading to the successful prosecution of Arowokoko.
Parmelee Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Parmelee, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 22, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
William Henry Horse Looking, age 40, was sentenced to two months in federal prison, six months of home confinement, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Horse Looking was indicted by a federal grand jury on March 9, 2021. He pled guilty on November 22, 2021.
Between October 20, 2020, and January 6, 2021, Horse Looking, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Horse Looking was ordered to self-surrender to the U.S. Marshals Service in Pierre, South Dakota, by 2:00 p.m. on Wednesday, December 1, 2021.
Office Manager Admits She Embezzled More Than $350,000 from Home Healthcare Agency and its Elderly ClientsRead the Press Release
Assistant U. S. Attorney Oleksandra Johnson (619) 546-9769
NEWS RELEASE SUMMARY – November 23, 2021
SAN DIEGO –A former office manager for a healthcare provider pleaded guilty in federal court today to one count of wire fraud. As part of her plea agreement, Ana Phimmasone, 37, of Chula Vista, admitted that from April 2016 until April 2018, she stole $352,594.47 from a local company that provides in-home care services for mostly elderly individuals, as well as from several of its clients.
According to court documents, Phimmasone held a trusted position that allowed her access to client accounts. Between April 2016 and August 2016, Phimmasone embezzled $25,958.60 by stealing checks that were issued by, or belonged to, her employer, and deposited them into her own bank account. Then, between December 2016 and April 2018, Phimmasone exploited her access to clients’ credit card information by billing them using PayPal, Venmo, Square and Apple Pay and diverting the money to her own accounts instead of using the funds to pay her employer for the in-home care services. To make the fraudulent charges appear legitimate, Phimmasone falsely told the victims that the healthcare provider changed its existing payment processing company to PayPal. After receiving the funds, Phimmasone spent the money or diverted the payments into her personal bank accounts.
To further disguise the illegal transfers and avoid detection, Phimmasone created a fraudulent PayPal account using the name and personal information of C.P., an 87-year-old individual. Phimmasone then used the fraudulent PayPal account to bill the other victims’ credit cards, causing victims to believe they were being charged for legitimate medical care. To conceal the fact that some clients’ payments were diverted to her own accounts, Phimmasone also created false invoices for victims J.B. and E.B., that fraudulently inflated the amount due which was payable based on medical care services provided to the victims.
“This defendant exploited the trust that patients place in their care providers,” said Acting U.S. Attorney Randy Grossman. “This successful prosecution demonstrates that our office continues to prosecute anyone who targets vulnerable members of the community.” Grossman commended the prosecution team and the United States Postal Inspection Service for their efforts to bring this offender to justice.
Inspector in Charge of the Los Angeles Division Carroll N. Harris stated, “The United States Postal Inspection Service remains unwavering in its strong stance to protect the elderly and other vulnerable populations against criminal acts. Postal Inspectors will aggressively investigate and prosecute these cases to the fullest extent of the law.”
As part of her guilty plea, Phimmasone agreed to pay $352,586.22 in restitution to her former employer and a number of individual victims. Phimmasone is set to appear for sentencing on March 7, 2022.
DEFENDANTS Case Number 21cr3262-H
Ana Phimmasone Age: 37 Chula Vista, CA
SUMMARY OF CHARGES
Wire Fraud, 18 U.S.C. § 1343
Maximum penalty:
Twenty years’ imprisonment and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater
AGENCY
United States Postal Inspection Service
Nicaraguan Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that EVERTO JAVIER URBINA-BALLADARES a/k/a “JOHAN MANUEL ALBIZU-ORTIZ, age 46, a native of Nicaragua, was charged on November 19, 2021 in a one-count indictment with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
URBINA-BALLADARES faces up to a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) year term of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
New Obstruction-Related Charges Filed Against Former Bank Vice President Convicted in Insider Trading Securities Fraud ScamRead the Press Release
SAN JOSE – The U.S. Attorney’s Office has filed new federal criminal charges against former Silicon Valley Bank vice president Mounir Gad adding document tampering, identity theft, and criminal contempt to the list of federal charges the convicted fraudster now will face, announced Acting U.S. Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The new charges are filed in connection with allegedly false and altered documents Gad submitted to the federal court for his sentencing in his securities fraud case.
The criminal complaint was filed on November 19, 2021, and unsealed today. According to the complaint, on October 27, 2021, Gad, 35, of Los Gatos, submitted to the federal court 12 letters of support in advance of his sentencing for two counts of securities fraud. The criminal complaint alleges that half of these letters were improperly altered or entirely fabricated. Specifically, of the twelve letters submitted, Gad altered three of them without the authors’ knowledge, adding additional language praising Gad. Additionally, Gad submitted three more letters that were not written by the purported authors and without the purported authors’ knowledge. On November 3, 2021, before the alleged problems with the sentencing documents had come to light, the Honorable Lucy H. Koh, U.S. District Judge, sentenced Gad to two years of probation, a $500 fine, and a $200 assessment for each count of securities fraud. Gad now faces criminal charges in connection with the documents he submitted for that sentencing.
This sentencing followed Gad’s guilty plea to two counts of securities fraud, in violation of 15 U.S.C. § 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, 240.10b5-1, and 240.10b5-2, 18 U.S.C. § 2. In connection with the guilty plea, Gad admitted he was a trained investment banking professional who repeatedly received training and guidance about the proper use of material non-public and confidential information. Gad also admitted he knew about the prohibitions against the improper use of such information including how the use of such information for personal gain may violate the insider trading laws. Gad nevertheless violated the insider trading laws on two occasions. Specifically, in April of 2015 and again in August of 2016, Gad obtained material non-public information through his employer when the bank advised clients about financial matters related to the acquisition of certain companies; Gad shared the non-public information with a codefendant who used the information to execute securities transactions.
After accepting Gad’s request to enter a plea of guilty, Judge Koh scheduled Gad’s sentencing hearing for November 3, 2021. According to the criminal complaint, one of Gad’s references, identified as B.L., prepared a letter for the court in advance of the hearing and emailed the letter to Gad. B.L. then attended the November 3 sentencing hearing. The criminal complaint describes how B.L. heard at the sentencing hearing the court reference statements in a letter submitted in her name that she had not written and were not true. B.L. contacted Gad’s defense attorney who, in turn, notified the Court. The criminal complaint further describes how the Court scheduled a subsequent hearing on November 10, 2021, at which Judge Koh stated, “What I considered and what I found to be very compelling about this letter, are lies that Mr. Gad put in the letter.”
In addition, the criminal complaint further describes how Gad allegedly altered the letters of two additional persons who submitted letters on Gad’s behalf. In each case, the alterations included praise of Gad’s good character, including praise for having “the highest integrity and character,” for being “productive in a moral and ethical way,” and for how Gad “saved [B.L.’s] life with his story, with his accountability, and with his dignity.” Furthermore, the complaint describes how Gad allegedly submitted three letters to the Court without the purported authors’ knowledge. The bogus letters were from Gad’s ex-fiancé, and two additional people who previously submitted letters on behalf of Gad in connection with other litigation.
In sum, the criminal complaint charges Gad with document tampering, in violation of 18 U.S.C. § 1512(c)(1); identity theft, in violation of 18 U.S.C. § 1028(a)(7); and criminal contempt, in violation of 18 U.S.C. § 401(1).
A criminal complaint contains allegations only. Gad is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Gad faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for document tampering and 5 years in prison and a $250,000 fine for identity theft. There is no statutory maximum penalty for criminal contempt. The court also may order additional terms of supervised release and fines; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gad made his initial federal court appearance today before U.S. Magistrate Judge Kandis Westmore. Magistrate Judge Westmore scheduled Gad’s ’s next appearance on the new charges for November 26, 2021, for detention and identification of counsel. Gad also is scheduled to appear December 8, 2021, before Judge Koh for further proceedings related to the securities fraud charges.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting this case with assistance from Lynette Dixon. The case is being investigated by the FBI.
Montgomery County Man Sentenced for Stealing Rare 1775 Rifle from Valley Forge State Park Museum in the 1970sRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Gavin, 78, of Pottstown, PA, was sentenced to one day in prison, three years of supervised release with the first year to be served on home confinement, a $25,000 fine and was ordered to pay $23,385 in restitution by United States District Court Judge Mark A. Kearney for selling an antique rifle dating back to the American Revolution that he had stolen from a local museum.
In July 2021, the defendant pleaded guilty to an Information charging him with a single count: disposal of an object of cultural heritage stolen from a museum. As part of his guilty plea, Gavin admitted that he had stolen the Christian Oerter Rifle from the Valley Forge State Park Museum in 1971. The rifle is a rare surviving 1775 rifle made by Christian Oerter, a master gunsmith from the Christian Springs Philadelphia-area gun-making center. The rifle is known to be one of two such rifles to have survived with its original flint mechanism bearing the maker’s name, site and date of manufacture, and is worth in excess of $175,000. The other Christian Oerter rifle is in the Royal Collection at Windsor Castle in England. Gavin also admitted that he kept the rifle for over 40 years and sold it in 2018, along with other items that he had stolen from museums back in the 1970’s.
“Stealing an artifact from a museum – literally a piece of American history – is a serious federal offense,” said U.S. Attorney Williams. “After four decades, justice finally caught up with this defendant. Thanks to the work of our law enforcement partners, the Christian Oerter rifle is safely back where it can be enjoyed by all Americans.”
“Thomas Gavin kept the stolen Oerter rifle squirreled away for decades, depriving all of us of this Revolutionary piece of our past,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It is way past time for Mr. Gavin to be held accountable for his actions. This case is a great example of the FBI’s commitment to protecting and preserving the cultural property that helps tell the story of our nation.”
The case was investigated by members of the Federal Bureau of Investigation’s Art Crime Team and detectives with the Upper Merion Township Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.
Missouri Man Charged with Interstate Threats Against the Pennsylvania State PoliceRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 22, 2021, Damian Smith-Birge, age 26, of Neosho, Missouri, was charged by criminal complaint with interstate threats and taken into custody by agents of the Federal Bureau of Investigation.
According to United States Attorney John C. Gurganus, the affidavit to the complaint alleges that on November 18, 2021, Smith-Birge called the Pennsylvania State Police Stroudsburg barracks and made threats against law enforcement. The affidavit also alleges that during the recorded calls, Smith-Birge referenced the December 2020 officer involved shooting incident that occurred in Hamilton Township, Monroe County, Pennsylvania. Smith-Birge appeared before a Federal Magistrate Judge in Missouri on November 23, 2021.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Criminal Complaints are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mission Man Sentenced for Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on November 22, 2021, by Chief Judge Roberto A. Lange, U.S. District Court Judge.
Julio Rodriguez, III, age 20, was sentenced to 18 months in federal prison, followed by 5 years supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Rodriguez was indicted for Sexual Abuse of a Minor by a federal grand jury on February 8, 2021. He pled guilty on August 19, 2021.
The conviction stems from an incident on July 10, 2020, in Todd County, when Rodriguez, who was 18 years old, engaged in a sexual act with a minor who was 13 years old.
This case was investigated by Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Rodriguez was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JUAN RAMON MARTINEZ, age 42, a native of Mexico, was charged on November 19, 2021 in a one-count indictment with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
MARTINEZ faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) years supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.