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Tuesday 23 November 2021
Manchester Man Sentenced to 90 Months for Drug Trafficking Conspiracy and Firearm ChargesRead the Press Release
CONCORD - Gabriel Rivera, 41, of Manchester, was sentenced on Monday to 90 months in federal prison for drug conspiracy and firearm charges, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on two occasions in early 2020, a cooperating individual (CI) working with the Manchester Police Department bought fentanyl from Rivera and Ramon Guerrero at their shared apartment. While in the apartment, the CI observed quantities of suspected crack and methamphetamine as well as fentanyl.
On May 15, 2020, detectives observed Guerrero and a woman check into a local motel at 3:30 am under the woman’s name. After obtaining arrest and search warrants, officers entered the room. Detectives discovered $9,254 and several baggies containing cocaine, as well as fentanyl in pill form. Investigators executed a search of the apartment and found Rivera sitting on a couch with an open fanny pack next to him, an open safe at his feet, and a handgun tucked behind the cushion. On his person, detectives located $1,151. The safe and pack contained crack, over 76 grams of cocaine, and over 162 grams of fentanyl. As a convicted felon, Rivera was prohibited from possessing a firearm.
Rivera and Guerrero previously pleaded guilty on August 3, 2021. Guerrero is scheduled to be sentenced on November 23, 2021.
“Drug traffickers continue to endanger our community by selling deadly substances,” said Acting U.S. Attorney Farley. “When drug dealers are armed, they also present a serious risk of violence. As this case demonstrates, we are working closely with the Manchester Police to identify and prosecute the armed drug traffickers who pose a threat to the citizens of Manchester.”
This matter was investigated by the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Sentenced for Child Pornography Distribution on PinterestRead the Press Release
Acting United States Attorney Jan Sharp announced that Timothy E. Caruso, 45, was sentenced today by Chief United States District Robert F. Rossiter, Jr. after being found guilty by a jury on July 15, 2021 of charges of distributing of child pornography and accessing with intent to view child pornography. Caruso was sentenced to 180 months’ imprisonment for the child pornography offenses and 14 months for a violation of supervised release, which will be served consecutive to his sentence for the child pornography offense. Caruso will be on supervised release for life upon his release from prison. There is no parole in the federal system.
Caruso was on federal supervision after a prior conviction for failing to register as a sex offender. In December 2018, Caruso uploaded an image of child pornography to a private section of Pinterest. Pinterest reported the upload to the National Center for Missing and Exploited Children. The image was traced back to a Google account used by Caruso and sent from an IP address where he was staying. Further investigation discovered Caruso’s search terms indicating an interest in young girls. His messages on Pinterest included that he had lost his child pornography collection and was seeking to trade child pornography and acquire new images.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Man Pleads Guilty to 3 Bank RobberiesRead the Press Release
NEW ORLEANS – ZACHARY VERDIN, age 29, a resident of Marrero, Louisiana pleaded guilty to three counts of bank robbery before the Honorable Susie Morgan, announced U.S. Attorney Duane A. Evans. VERDIN faces up to twenty (20) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment fee, as to each count. Sentencing is currently scheduled for February 22, 2022.
According to Count One of the bill of information, on or about July 19, 2021, VERDIN robbed the Capital One Bank located in Marrero, Louisiana. He obtained approximately $521 in the robbery. According to Count Two of the bill of information, on or about July 26, 2021, VERDIN robbed the Chase Bank located in New Orleans, Louisiana. He obtained approximately $1,000 in that robbery. According to Count Three of the bill of information, on or about August 2, 2021, VERDIN robbed the Regions Bank located in Gretna, Louisiana. He obtained approximately $12,540 in that robbery.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the Jefferson Parish Sheriff’s Office and New Orleans Police Department. Assistant U.S. Attorney Jon Maestri is handling the prosecution.
Long Island Pain Management Doctor Pleads Guilty to Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (“IRS-CI”) New York Field Office, and Keith Kruskall, Acting Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), today announced that defendant JORDAN SUDBERG pled guilty to tax evasion for the calendar years 2015 through 2017, in connection with false deductions from a scheme involving his issuance of hundreds of business checks falsely purporting to be payments for business services, which he provided in exchange for cash to a black market money exchange network. As part of his plea SUDBERG agreed to pay $551,660 in restitution to the Internal Revenue Service (“IRS”), and forfeit an additional $243,257. SUDGERG pled guilty today before U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “As he admitted in court today, Jordan Sudberg engaged in a years-long pattern of fabricating false business expenses to conceal from the IRS large portions of his substantial income earned from his medical practices. He fraudulently claimed more than $1 million in deductions that should have been reported to the IRS as taxable income, and allowed other individuals to create purportedly legitimate origin for their illicit cash in the process. Now Sudberg awaits sentencing for his crime.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “Medical professionals should be in the business of caring for people, not evading taxes. IRS-CI agents are specially trained to detect tax fraud – even elaborate schemes like the one Sudberg allegedly devised.”
DEA Acting Special Agent in Charge Keith Kruskall said: “This defendant allegedly engaged in a scheme where he purposefully claimed a significantly lower income to evade U.S. tax law. Thanks to the dedication of our law enforcement partners, the defendant will finally be paying his fair share.”
According to the allegations contained in the Information to which SUDBERG pled guilty, a Civil Forfeiture Complaint filed against funds seized from SUDBERG, a Criminal Complaint and Information filed against SUDBERG’s co-conspirator Hua Fen Bi, and statements made in court:
From at least 2015 through 2017, SUDBERG devised and perpetrated a scheme to evade a substantial portion of his personal income taxes. During that period, SUDBERG owned two S-corporations through which he operated a medical practice, specializing in pain management, at locations located in Manhattan, Long Island, and Queens, New York. SUDBERG issued hundreds of checks made payable to various companies and falsely purporting to be payments for business services. In fact, those companies had not performed any business services for SUDBERG’s corporations. In exchange for the checks, SUDBERG received sums of cash that were equal to the value of the checks minus a small fee. SUDBERG falsely reported to the IRS that the checks were for legitimate business expenses and claimed deductions in the amount of the checks, thereby substantially understating his taxable income.
SUDBERG’s tax evasion helped support an unlicensed money services network operated by a number of co-conspirators, including Hua Fen Bi, who was sentenced by U.S. District Judge Colleen McMahon on May 24, 2021, for his role in conspiring to operate an unlicensed money transmitting business. This network permitted individuals to exchange cash for business checks like those provided by SUDBERG, thereby generating a false and nominally legitimate source of funds, including for the laundering of narcotics proceeds.
SUDBERG pled guilty to one count of tax evasion, which carries a maximum penalty of five years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
SUDBERG is scheduled to be sentenced on February 23, 2022.
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Mr. Williams praised the outstanding work of the Internal Revenue Service and the Drug Enforcement Administration on this case. He also thanked the Office of the Inspector General of the United States Department of Health and Human Services and the New York Drug Enforcement Task Force for their support and assistance.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprise Unit. Assistant U.S. Attorneys Emily Deininger and Alexandra Rothman are in charge of the case.
Little Valley Man Pleads Guilty for His Role in A Nearly $1,000,000 COVID-19 Relief Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that Adam Arena, 44, of Little Valley, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiracy to commit bank fraud and engaging in monetary transactions with criminally derived proceeds for his role in fraudulently obtaining and laundering nearly $1 million in funds from the COVID-19 relief Paycheck Protection Program (PPP). The charges carry a maximum penalty of 30 years and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins and Cory E. Jacobs of the Criminal Division’s Fraud Section, who are handling the case, stated that in May 2020, Arena reinstated his previously inactive business, ADA Auto Group, which had been inactive since 2018. Arena then provided his date of birth, social security number, address, and ADA Auto Group’s Employer Identification Number, Articles of Incorporation, along with a bank account number, for the purpose of facilitating the preparation of a fraudulent Paycheck Protection Program (PPP) loan. On July 27, co-defendant Amanda J. Gloria submitted a PPP loan application for ADA Auto Group to a financial institution via email seeking a $954,000 loan. Along with the application, Gloria submitted fraudulent supporting documents, including tax forms and payroll reports. These documents claimed ADA Auto Group employed 50 people in 2019 with an annual payroll of more than $4.4 million. On August 10, 2020, Arena directed the financial institution to wire the proceeds of the approved PPP loan for ADA Auto Group into a business account controlled exclusively by him. On September 11, 2020, Arena paid Gloria approximately $24,135 in PPP funds for facilitating the submission of the fraudulent PPP loan application. None of the funds Arena received were ever used for business-related expenses.
Charges remain pending against Amanda J. Gloria. 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.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing is scheduled for March 2, 2022, at 10:00 a.m. before Judge Skretny.
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Leader of Local Drug Trafficking Organization Pleads GuiltyRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Oregon City, Oregon pleaded guilty today for his leadership role in a conspiracy to traffic large quantities of methamphetamine, heroin and fentanyl from Mexico for resale in Oregon and Washington State.
Victor Alvarez Farfan, 49, pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances and illegal reentry.
Farfan is the last of 23 defendants charged in the conspiracy to plead guilty. This is Farfan’s second federal conviction in the District of Oregon for drug trafficking and illegal reentry.
According to court documents, Farfan received approximately 20 kilograms of methamphetamine, half a kilogram of heroin and two kilograms of fentanyl from a drug cartel based in Michoacan, Mexico. He and his associates would then resell the methamphetamine and heroin in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan also oversaw the manufacturing of crystal methamphetamine from its liquid form. As part of the conspiracy, one of Farfan’s co-conspirators, Eduardo Alvarez Farfan, 27, of Gresham, provided the two kilograms of fentanyl to a co-conspirator, Noe Antonio Machado-Madrano, 26, who had flown in from Baltimore, Maryland. Investigators arrested Machado-Madrano at a bus station and seized the fentanyl.
On October 17, 2018, a federal grand jury in Portland returned a nine-count indictment charging Farfan and 21 co-defendants with conspiracy to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; use of a communication facility, including cellular telephones, in the commission of a controlled substances felony; maintaining drug-involved premises to manufacture and distribute controlled substances; interstate distribution of drug proceeds and money laundering.
On October 24, 2018, a coordinated law enforcement operation led by the FBI with assistance from Homeland Security Investigations, the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) resulted in the arrest of Farfan and 17 co-defendants.
Later, on November 27, 2018, Farfan was charged in a second indictment with illegal reentry.
Farfan faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence and a fine of $10 million or twice the gross gains or losses resulting from his offense. With Farfan’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 180 months in federal prison when he is sentenced on February 15, 2022 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Farfan has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing and pay $100,000 to satisfy a forfeiture money judgment.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Oregon and is the result of a joint investigation by FBI, HSI, WIN, and CCITF. Forfeiture was litigated by the U.S. Attorney’s Office Asset Recovery and Money Laundering Division.
WIN includes representatives from the Washington County Sheriff's Office, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, FBI and Homeland Security Investigations (HSI).
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Lake Tahoe Area Man Indicted for Committing $4.5 Million Bank Fraud Scheme and Identity TheftRead the Press Release
RENO – A Glenbrook, Nevada, man was arrested yesterday in Reno on criminal charges related to allegedly obtaining at least $4.5 million through a bank fraud scheme.
According to allegations in the indictment, in April and May 2019, Sukhdev Singh Sidhu (36) used more than 26 bank accounts at over 11 financial institutions to carry out his bank fraud scheme. Sidhu falsely claimed that he did not authorize Automated Clearing House withdrawals from his bank accounts. But in fact, Sidhu knew the withdrawals were being deposited in “pass-through” accounts that were held in his father’s name, and the monies were then transferred to a receiving account that Sidhu controlled at a different bank. As a result of the false claims, Sidhu obtained at least $4.5 million by the banks. Further, Sidhu fraudulently used his father’s identity — specifically, a driver’s license belonging to his father and a check drawn for an account in his father’s name — to execute the scheme.
Sidhu made his initial court appearance yesterday before U.S. Magistrate Judge Carla Baldwin. A jury trial is scheduled for February 14, 2022 before U.S. District Judge Robert C. Jones. Sidhu is charged with three counts of bank fraud and two counts of aggravated identity theft. If convicted, he faces a statutory maximum penalty of 30 years in prison for bank fraud and a mandatory minimum penalty of two years in prison for aggravated identity theft.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorneys Steven Myhre and Richard Casper are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Kentucky Physician Sentenced for Unlawful Kickback ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Louisville, Kentucky, was sentenced in federal court today for one count of conspiracy to solicit and receive unlawful kickbacks, United States Attorney Cindy K. Chung announced.
United States District Judge Kim R. Gibson sentenced John Baird, 55, a physician, to five years of probation, including two years of home detention. Baird was also ordered to pay restitution totaling $567,609.36 to Medicare.
During the defendant’s plea hearing on July 16, 2018, Baird admitted that while practicing as a licensed physician specializing in physical medicine, rehabilitation, and pain treatment, he entered into an illegal kickbacks-for-referrals conspiracy with Williams Hughes, the owner and operator of Universal Oral Fluid Labs (“UOFL”), a clinical drug-testing laboratory in Greensburg, Pennsylvania. Pursuant to their arrangement, Baird received cash payments from UOFL in exchange for referring patients—including patients covered under Medicare—to the lab for drug testing services. Hughes, through UOFL, then submitted to, and received reimbursements from, Medicare for drug testing services for patients referred to the lab by Baird. As enrolled Medicare providers, Baird and UOFL were required to certify that they would comply with all applicable state and federal laws and regulations, including the federal anti-kickback prohibition. Baird further admitted that between May 2012 and July 2013, he received $567,609.36 in kickbacks from UOFL for his drug testing referrals.
Hughes separately pleaded guilty for conspiring to offer and pay kickbacks in connection with Medicaid referrals made by another Kentucky physician. On July 13, 2021, United States District Judge David S. Cercone sentenced Hughes to sixty days’ incarceration, followed by twelve months of home detention. Hughes was also ordered to pay a $5,000 fine, forfeit more than $750,000 in previously seized assets, and make restitution totaling $1,670,469.77 to the Kentucky Medicaid Program.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service - Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Unit conducted the investigation that led to the prosecution of Baird.
Kenneth L. Parker sworn in as U.S. AttorneyRead the Press Release
CINCINNATI – Kenneth L. Parker was sworn in today as United States Attorney, the chief law enforcement official, for the Southern District of Ohio. President Biden nominated Parker on Sept. 28, and the United States Senate approved his confirmation on Nov. 19.
Parker is a lifelong resident of the Cincinnati region and has served as an Assistant United States Attorney there since 1999. The 49-year-old has served in a variety of leadership roles as a federal prosecutor in the Office’s criminal division, including as Criminal Chief (2011 to 2019) and as the District’s OCDETF Chief (2010-2011).
Parker graduated from Tuskegee University in 1994 and earned his law degree from Indiana University in 1997. He clerked for the Hon. S. Arthur Spiegel in the United States District Court for the Southern District of Ohio.
He has served as president of the Cincinnati-Northern Kentucky Chapter of the Federal Bar Association and of the Black Lawyers Association of Cincinnati.
Throughout his career, Parker has been consistently dedicated to connecting with the community to promote crime prevention as an essential part of enforcement.
“As U.S. Attorney, I am committed to partnering with the community to strengthen relationships between our office, the law enforcement partners with whom we work, and government and non-government agencies,” said Parker. “In other words, building community trust will be an integral part of what we do.”
As an alumnus of the Summer Work Experience in Law program, Parker later served as Chair of the program, which seeks to increase the number of African Americans in the legal profession. He has helped expand the program to Hamilton, Dayton and Columbus.
The new U.S. Attorney resides in Cincinnati with his wife and their twin daughters.
The U.S. Attorney’s Office represents the United States in 48 of Ohio’s 88 counties. The Southern District of Ohio includes the metropolitan areas of Columbus, Cincinnati and Dayton.
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Kenner Man Pleads to Airline Baggage Scam Involving over $550,000 in False ClaimsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that PERNELL ANTHONY JONES, JR., age 31, of Kenner, Louisiana, pled guilty to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 1349 and Mail Fraud, in violation of Title 18, United States Code, Section 1341.
According to court documents, beginning in or around 2015, JONES took flights with commercial airlines under false or fictitious identities using fraudulent identification cards. When he arrived at the destination airport, JONES falsely claimed that his baggage was lost and requested reimbursement to compensate him for his lost luggage. Through this scheme, JONES and his co-conspirators submitted over 180 false claims to commercial airlines, including American, Alaska, Southwest, United, and JetBlue, requesting over $550,000 in reimbursement. In total, the airlines paid over $300,000 in fraudulent claims.
JONES’s plea documents state that, on April 7, 2018, JONES was arrested at Dallas Love Airport while attempting to go through screening by the Transportation Security Administration (“TSA”) with 36 fraudulent driver’s licenses and 47 credit cards under fictitious names. On March 5, 2020, JONES was arrested again while attempting to pick up a reimbursement check for a fraudulent baggage claim at Louis Armstrong International Airport in Kenner, Louisiana. Law enforcement searched JONES’s residence on March 5, 2020 and found 34 fraudulent driver’s licenses; 21 fake work identification cards; and a number of fraudulent airline employee badges containing JONES’s photograph.
For each count, JONES faces a maximum term of twenty (20) years imprisonment and/or a fine of $250,000, up to three (3) years of supervised release, and a $100 mandatory special assessment fee. U.S. District Judge Susie Morgan set sentencing for February 24, 2021.
U.S. Attorney Evans would like to acknowledge the investigation by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, Jefferson Parish Sheriff’s Office, and the City of Dallas Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Kansas Man Pleads Guilty to Income Tax FraudRead the Press Release
TOPEKA, KAN. – A Kansas man pleaded guilty to one count of making and subscribing a false return.
According to court documents, Randall Brammell, 65, of Berryton owned and operated Brammell Construction Company and Lawn Mowing. He pleaded guilty to submitting a false 2016 income tax return to the Internal Revenue Service after failing to inform his tax preparer about a substantial number of business checks made out to him personally that he cashed instead of depositing into his business bank account. As a result, the gross income of his business that year was underreported by $139,918.
“Mr. Brammell admitted that he knowingly filed a false income tax return with the IRS. IRS-Criminal Investigation takes all tax crimes very seriously. Those who file honest, accurate returns can be assured that we will investigate and hold accountable those who don’t,” said Tyler Hatcher, Special Agent in Charge, St. Louis Field Office, IRS-Criminal Investigation.
Brammell is scheduled to be sentenced February 16, 2022 and faces a maximum of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the IRS-Criminal Investigation.
Assistant U.S. Attorney Christine Kenney is prosecuting the case.
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Justice Department Sues to Block U.S. Sugar’s Proposed Acquisition of Imperial SugarRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today to stop United States Sugar Corporation (U.S. Sugar) from acquiring its rival, Imperial Sugar Company (Imperial Sugar). The complaint, filed in the U.S. District Court for the District of Delaware, alleges that the transaction would leave an overwhelming majority of refined sugar sales across the Southeast in the hands of only two producers. As a result, American businesses and consumers would pay more for refined sugar, a significant input for many foods and beverages.
“Robust antitrust enforcement is an essential pillar of the Justice Department’s commitment to ensuring economic opportunity and fairness for all,” said Attorney General Merrick B. Garland. “We will not hesitate to challenge anticompetitive mergers that would harm American consumers and businesses alike.”
“U.S. Sugar and Imperial Sugar are already multibillion-dollar corporations and are seeking to further consolidate an already cozy sugar industry. Their merger would eliminate aggressive competition in the supply of refined sugar that leads to lower prices, better quality, and more reliable service,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This deal substantially lessens competition at a time when global supply chain challenges already threaten steady access to important commodities and goods. The department’s lawsuit seeks to preserve the important competition between U.S. Sugar and Imperial Sugar and protect the resiliency of American domestic sugar supply.”
According to the department’s complaint, U.S. Sugar operates a large sugar refinery in Florida, and sells all of its refined sugar through United Sugars Corporation (United Sugars), a marketing cooperative owned by U.S. Sugar and three other refined sugar producers. Imperial Sugar operates its own sugar refinery in Georgia, and sells its refined sugar directly to customers. American Sugar Refining, known more commonly by its “Domino” brand name, is the other producer supplying a significant share of refined sugar in the southeastern United States. The complaint further alleges that United Sugars and Imperial Sugar compete head-to-head to supply refined sugar to customers across the Southeast in states stretching from Mississippi to Delaware. This competition has resulted in lower prices, better-quality products and more reliable service for customers across the region.
If U.S. Sugar is permitted to acquire Imperial Sugar, Imperial’s production would be folded into the United Sugars cooperative, leaving two significant sugar producers in the region. As alleged in the complaint, because transportation costs make up a significant portion of the total price customers pay for refined sugar, the nearest sugar producers tend to be a customer’s best competitive options. The complaint alleges that U.S. Sugar’s proposed acquisition of Imperial Sugar will further consolidate an already concentrated market for refined sugar. If the transaction is allowed to proceed, United Sugars and Domino would control the vast majority of refined sugar sales in the region, enhancing the likelihood going forward that they will coordinate with each other and refrain from competing aggressively.
U.S. Sugar, a Delaware corporation headquartered in Florida, is the world’s largest vertically-integrated cane sugar milling and refining operation. U.S. Sugar is one of four member-owners of United Sugars. In 2020, U.S. Sugar received payments of $533 million from United Sugars, representing the company’s share of United Sugars’s net sales.
United Sugars, a Minnesota corporation headquartered in Minnesota, markets and sells all of the refined sugar produced by its four member-owners — U.S. Sugar, American Crystal Sugar Company, Minn-Dak Farmers Cooperative, and Wyoming Sugar Company. Its member-owners operate a total of nine sugar refineries located in Florida, Minnesota, North Dakota, Montana and Wyoming. United Sugars’s revenues were $1.8 billion in 2020.
Imperial Sugar, a wholly-owned subsidiary of Louis Dreyfus Company LLC, is a producer of refined sugar in the United States and independently markets and sells its products on its own behalf. Imperial Sugar has a refinery in Savannah, Georgia, and an intermediate sugar transfer and liquification facility in Ludlow, Kentucky. Imperial Sugar’s revenues were over $700 million in 2020.
Louis Dreyfus Company LLC, a Delaware corporation headquartered in the Netherlands, is a worldwide leader in sugar trading and merchandising and among the largest cane sugar refiners in the world. In 2020, the company had over $33 billion in net sales.
Justice Department Resolves Sexual Harassment Lawsuit Against Massachusetts Landlord and His EmployeeRead the Press Release
The Justice Department announced today that it has secured a settlement resolving allegations that Worcester, Massachusetts, landlord Mohan Prashad and his maintenance worker, David Besaw, 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.
Under the consent decree, which still must be approved by the U.S. District Court for the District of Massachusetts, defendants are required to pay $65,000 to compensate individuals harmed by the harassment and a $10,000 civil penalty, and vacate a judgment that defendants had obtained against a former tenant in housing court. The consent decree bars future discrimination and retaliation, requires that property management responsibilities be turned over to one or more individuals approved by the United States, mandates the implementation of a sexual harassment policy and complaint procedure and Fair Housing Act training, and requires detailed reporting regarding property management activities and compliance with the terms of the consent decree. The consent decree also bars Prashad and Besaw from participating in property management responsibilities at residential rental properties.
“Sexually harassing tenants in their homes and retaliating against those who lodge complaints are egregious forms of sex discrimination that 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 safeguarding the rights of vulnerable tenants who are subjected to sexual harassment or retaliatory evictions because of their sex.”
“The sexual harassment of tenants is an appalling abuse of economic and social power that warrants serious consequences,” said Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts. “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.”
The lawsuit, filed in 2019, alleged that since at least 2009, Prashad subjected female tenants to harassment that included making 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 failed to take action to prevent Besaw from engaging in additional sexual harassment.
The case was jointly litigated by the Civil Rights Division and the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.9 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
Columbia, South Carolina --- The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the District of South Carolina, three communities were awarded funding totaling just over $1.4 million.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“These grants highlight the Department of Justice’s commitment to law enforcement resources here in South Carolina,” said Acting U.S. Attorney DeHart. “This Office enjoys strong relationships with our local law enforcement partners, and we support their important work. These funds will mean nearly a dozen additional officers in these communities.”
The following communities in South Carolina received awards:
- City of North Myrtle Beach, $750,000;
- Williamsburg County, $422,804; and
- Town of Yemassee, $229,782.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here. ‘
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
WASHINGTON, D.C. – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (“COPS Office”) COPS Hiring Program (“CHP”). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Eastern District of Washington, the cities of Soap Lake and Zillah each received $125,000.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“Local law enforcement is a crucial component of our mission to make and keep the communities of Eastern Washington safe and strong,” said United States Attorney Vanessa R. Waldref. “Effective, well-funded community policing efforts will help us to continue building trust between law enforcement and the communities we serve. I am particularly pleased that in the Eastern District we will be able to devote specific resources to combating gun violence and stamping out hate and domestic extremism. I commend the cities of Soap Lake and Zillah, which have been selected for this competitive program.”
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting policebased responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award . For additional information about the COPS Office, please visit https://cops.usdoj.gov/. The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Jury Convicts Maryland Man for Membership in Computer Fraud and Identity Theft Ring that Targeted State GovernmentsRead the Press Release
ALBANY, NEW YORK - A jury yesterday voted to convict Guy Cuomo a/k/a “John Monaco,” age 54, of Frederick, Maryland, of computer fraud, misuse of a social security number, aggravated identity theft and related conspiracy charges for his role in a scheme to sell information unlawfully obtained from the New York State Department of Labor and workforce agencies in other states.
The announcement was made by United States Attorney Carla B. Freedman and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (USDOL-OIG).
United States Attorney Carla B. Freedman stated: “Guy Cuomo and his co-conspirators ran a boiler room for identity theft. They used personal identifying information to trick state workforce agencies into disclosing the last known places of employment for thousands of victims. The defendants then sold this place-of-employment information to debt collectors, generating nearly $1 million in sales. Yesterday’s guilty verdict, on all counts, means Guy Cuomo will be going to prison for his leadership role in this despicable scheme.”
USDOL-OIG Special Agent in Charge Jonathan Mellone stated: “As found by the jury, Guy Cuomo worked in concert with his co-conspirators to systemically create unemployment insurance accounts in multiple state workforce agencies’ computer systems using the social security numbers and other personal identifiers of unknowing victims. Once in those accounts, Cuomo and his co-conspirators stole the protected employment information of the victims and sold that data commercially. Yesterday’s guilty verdict and the preceding guilty pleas secured in this case are a testament to our office’s unwavering commitment to investigate and bring to justice those who compromise the integrity of the unemployment insurance system.”
The evidence at Cuomo’s 5-day trial showed that Cuomo worked for and managed companies owned by Jason “J.R.” Trowbridge in Frederick, Maryland, including Paymerica Corporation. Paymerica researched where purported debtors worked and sold the employer information—called place-of-employment information or “POE”—to debt collectors and companies selling information to debt collectors. In the debt collecting industry, the process is known as “skiptracing.”
To obtain the place-of-employment information, Cuomo and other members of the conspiracy pretended to be the debtors, created thousands of online unemployment insurance applications in the debtors’ names and with the debtors’ personal identifiers, including social security numbers, and completed the applications to the point where each debtor’s last known place of employment appeared. After confirming that the debtors worked for the relevant employers, Paymerica sold the place-of-employment information for approximately $90 per debtor. Over the course of approximately three years, Paymerica made nearly $1 million selling the stolen place-of-employment information.
Cuomo, Trowbridge, and other conspirators took a number of steps to hide their activities from state agencies and law enforcement, including using Virtual Private Networks, or VPNs, to mask the Internet Protocol addresses used to access and fill out the unemployment insurance applications in the debtors’ names. The evidence showed that the scheme involved attempts to obtain place-of-employment information for as many as 200,000 people from all 50 states and that Paymerica sold place-of-employment information for at least 12,000 people from 40 states.
At sentencing on March 16, 2022 before Senior U.S. District Judge Thomas J. McAvoy, Cuomo faces a mandatory 2-year term of imprisonment on the aggravated identity theft charges and up to 20 years in prison on the remaining charges. His co-defendants pled guilty to the following charges and face the following terms of imprisonment when they are sentenced:
Defendant
Charge(s)
Maximum Prison Sentence
Jason “J.R.” Trowbridge a/k/a “Ted Frost,” age 42, of Frederick, Maryland
Conspiracy, misuse of social security number, aggravated identity theft
Agreed-upon sentence of 39 months subject to approval by the Court
Robin Chapin a/k/a “Thomas Price,” age 63, of Frederick, Maryland
Conspiracy to commit computer fraud, accessing a protected computer and obtaining information, aggravated identity theft
Two years for aggravated identity theft, maximum sentence of 10 years on remaining charges
Rebecca Fogle a/k/a “Roxanne Morris” and “Jessica Felton,” age 27, of Woodsboro, Maryland
Conspiracy to commit computer fraud, accessing a protected computer and obtaining information, aggravated identity theft
Two years for aggravated identity theft, maximum sentence of 10 years on remaining charges
Shamair Brison a/k/a “Felicia Carter,” age 36, of Frederick, Maryland
Aggravated identity theft
Two years
Sarah Bromfield a/k/a “Nicole Wagner,” age 41, of Frederick, Maryland
Aggravated identity theft
Two years
Anna Hardy a/k/a “Sarah Thomas,” age 68, of Frederick, Maryland
Aggravated identity theft
Two years
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by USDOL-OIG, with assistance from the New York State Department of Labor, Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Cyrus P.W. Rieck. The case was also prosecuted to indictment by Assistant U.S. Attorney Wayne A. Myers.
Joliet Financial Advisor Indicted on Federal Fraud Charges for Allegedly Swindling Clients Out of Nearly $800,000Read the Press Release
CHICAGO — A Joliet financial advisor has been indicted on federal fraud charges for allegedly swindling several clients out of nearly $800,000.
RONALD T. MOLO, 61, of Shorewood, Ill., is charged in an indictment unsealed today in U.S. District Court in Chicago with six counts of wire fraud. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Joliet Police Department, Illinois Securities Department, and the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the indictment, Molo worked as a licensed financial advisor in the Joliet branch of a national financial services firm. From 2018 to earlier this year, Molo falsely represented to clients that their investments with him would be income-producing and tax-free, and that they would receive regular, periodic interest payments, the charges allege. In reality, Molo did not intend to invest client funds and instead misappropriated their money to pay for personal expenses, including Cadillac XT5 and GMC Yukon sport-utility vehicles, mortgage payments for himself and family members, home remodeling and construction costs, lottery tickets, travel and shopping expenses, and cash payments to family members, the indictment states.
As a result of the scheme, Molo caused at least three clients to suffer losses totaling $778,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Jamestown Woman Sentenced for Allowing an Alleged Drug Dealer to Conduct His Drug Trafficking Operation Out of Her ResidenceRead 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 Chelsey Hunt, 30, of Jamestown NY, who was convicted of maintaining a drug-involved premises, was sentenced to time serve and three years’ probation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who handled the case, stated that between January and December 2018, Hunt rented the second floor of a residence on Linden Avenue in Jamestown. While living there with her children, Hunt allowed co-defendant Douglas Beardsley to live in the attic. Beardsley conducted a methamphetamine and heroin trafficking operation from the attic. Hunt took an active role in assisting the operation, such as helping with Beardsley’s customers and providing information about police activity around the residence. Hunt also sold small amounts of narcotics for Beardsley and purchased narcotics for her personal use as well.
Charges remain pending against Douglas Beardsley. 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.
The sentencing is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; 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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Humberto Rodriguez, a/k/a “El Bori,” Pleads Guilty to April 2020 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that HUMBERTO RODRIGUEZ, a/k/a “El Bori,” pled guilty today in Manhattan federal court to the April 18, 2020, murder of Jorge Miguel Cabrera. U.S. District Judge P. Kevin Castel accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “In the early morning of April 18, 2020, Humberto Rodriguez shot and ultimately killed Miguel Cabrera in connection with a failed drug transaction. This case is yet another tragic reminder of the violence that often accompanies narcotics trafficking. We continue our daily work with our law enforcement partners to keep our communities safe by vigorously investigating and prosecuting acts of violence and drug trafficking.”
According to the allegations in the Second Superseding Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
On or about April 18, 2020, RODRIGUEZ and other members of a Bronx-based narcotics trafficking organization attempted to purchase one kilogram of cocaine on East 175th Street in the Bronx. After obtaining the buyers’ money, the sellers attempted to flee the scene. At that point, RODRIGUEZ fired a gun at the sellers’ vehicles, striking Cabrera in the spine. Cabrera ultimately died from the gunshot wound.
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RODRIGUEZ, 27, pled guilty to one count of murder through the use of a firearm, in violation of Title 18, United States Code, Sections 924(j) and 2, which carries a maximum term of life in prison and a mandatory minimum term of five years in prison. The maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
RODRIGUEZ is scheduled to be sentenced by Judge Castel on March 9, 2022.
On July 27, 2021, Rodriguez’s codefendant Alex Melendez pled guilty to narcotics and firearms offenses. On November 11, 2021, Rodriguez’s codefendant Sharone Lewis pled guilty to a narcotics offense.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations, the Drug Enforcement Administration, the New York City Police Department, and the Organized Crime Drug Enforcement Task Force. This prosecution 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 prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Peter J. Davis and Nicholas W. Chiuchiolo are in charge of the prosecution.
Guilty on all charges: Federal jury convicts Telfair County man in drug trafficking caseRead the Press Release
BRUNSWICK, GA: A Telfair County man faces up to life in federal prison after a jury convicted him on 36 counts related to a conspiracy to possess and distribute methamphetamine and cocaine.
A U.S. District Court jury found James Lamount Graham, 48, of Jacksonville, Ga., guilty of all 36 charges after a three-day trial, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Graham faces a minimum sentence of 10 years in federal prison, and three of the charges in the case carry a statutory penalty of up to life in prison. There is no parole in the federal system.
“James Graham was a significant drug trafficker in Telfair County and its environs,” said Acting U.S. Attorney Estes. “The jurors are holding Graham accountable for these crimes which cause serious social disruption in communities large and small throughout the Southern District of Georgia.”
After the trial before U.S. District Court Judge Lisa Godbey Wood, the jury found Graham guilty of Conspiracy to Possess and Distribute Controlled Substances; two counts of Distribution of 50 Grams or More of Methamphetamine; and 33 counts of Use of Communication Facility, a charge that refers to the use of telephones to facilitate the conspiracy. Graham will be sentenced after a background investigation by the U.S. Probation Office.
“The cocktail of deadly chemicals used to manufacture methamphetamine destroys families and communities,” said Robert J. Murphy, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) Atlanta Field Division. “DEA and its law enforcement partners are committed to protecting and serving those communities. This investigation was a success because of the collective effort between DEA and its local, state and federal law enforcement counterparts.”
“Illegal drugs have no place in Georgia. They are dangerous and threaten the safety of our communities,” said Vic Reynolds, Director of the Georgia Bureau of Investigation (GBI). “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations.”
As spelled out in evidence and testimony presented during the trial, the DEA obtained telephone wiretap orders starting in April 2018 as part of Operation Rat Trap, and identified a network of persons involved in the unlawful distribution of methamphetamine and cocaine. Six of Graham’s alleged co-conspirators pleaded guilty to related offenses prior to trial.
The case was investigated under the 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.
The GBI and DEA Savannah Office investigated the case. Assistant U.S. Attorneys John Harper and Karl Knoche prosecuted the case for the United States with in-court assistance from Paralegal Specialist Vilmarie Alcaraz.
Goose Creek Correctional Center Officer Pleads Guilty to Conspiracy and Bribery ChargesRead the Press Release
ANCHORAGE – A correctional officer at Goose Creek Correctional Center (GCCC) pleaded guilty to conspiracy and bribery charges for smuggling contraband into the prison in Wasilla, Alaska.
According to court documents, Angela Lincoln, 43, was a correctional officer at the Alaska Department of Corrections (DOC) facility from 2014 through mid-2020. Beginning in about 2019 she began smuggling contraband into GCCC including Suboxone strips and cell phones for an inmate who is serving a 100-year sentence. The inmate distributed the drugs within the prison and paid tens of thousands of dollars in bribe payments to Lincoln.
With support from his family members and non-inmate associates, who he called “grinders,” this inmate secretly arranged to deliver the contraband and cash payments to Lincoln. His associates would secretly visit Lincoln’s home and drop the contraband and bribe payments near her fence while no one was looking. They would hide the controlled substances inside books, plastic bottles or candy wrappers to avoid suspicion when dropping the package at the fence. Lincoln would then smuggle the contraband into Goose Creek using her official position to evade security screening, knowing that doing so was in violation of her official duties and knowing that she would be paid in exchange for delivering the contraband and drugs inside GCCC. To deliver the bribe payments to Lincoln, the “grinders” would launder the funds and hide cash in phony trinkets, greeting cards and stuffed animals. Lincoln continued to conceal the conspiracy when initially questioned by FBI agents, falsely reporting that the money was payments for old DVDs, video games and an old meat grinder. None of that was true, and the payments were really bribes paid in exchange for her smuggling efforts.
As a correctional officer she was required to protect inmates and staff by, among other things, ensuring that contraband – including drugs and cell phones – did not enter or remain in the facility where inmates could access them.
Goose Creek Correctional Center is an Alaska DOC-run medium-security prison for men located in Wasilla, Alaska. The facility houses up to approximately 1,300 inmates and employs approximately 333 staff members.
Lincoln’s sentencing hearing has not yet been set. She faces a maximum penalty of fifteen years in prison for the bribery and conspiracy charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The Federal Bureau of Investigation (FBI) is investigating the case with valuable assistance provided by the Alaska Department of Corrections.
Assistant U.S. Attorneys Emily Allen, Kelly Cavanaugh and Ryan Tansey are prosecuting the case.
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Georgia Man Sentenced to 21 Months for Bank Fraud ConspiracyRead the Press Release
CONCORD - Kizito Chukwujekwu, 38, of Morrow, Georgia, was sentenced to 21 months in federal prison for participating in a conspiracy to commit bank fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between June of 2016 and August of 2017, Chukwujekwu and others opened at least ten bank accounts at banks in New Hampshire, Massachusetts, and Georgia using other persons’ identification information. Chukwujekwu or his co-conspirators then deposited fraudulent checks into those accounts. After the money was credited to the account but before the bank determined the check was false, one of Chukwujekwu’s co-conspirators withdrew money from the bank accounts. During the scheme, the conspirators deposited fraudulent checks worth more than $119,000 and withdrew more than $69,000.
Chukwujekwu previously pleaded guilty on July 13, 2021. In addition to his sentence, Chukwujekwu was ordered to pay restitution in the amount of $69,168.25.
On January 3, 2020, Chinedu Ihejiere was sentenced to 25 months in prison for participating in the same scheme.
“Financial fraud schemes cause real damage to their victims,” said Acting U.S. Attorney Farley. “We work closely with our law enforcement partners to identify those who are responsible for committing bank fraud and other fraud offenses. As this case demonstrates, those who come to New Hampshire to commit fraud schemes will be prosecuted aggressively and will find themselves in federal prison.”
“Fueled by nothing more than pure and simple greed, Kizito Chukwujekwu and his co-conspirators stole tens of thousands of dollars from people they figured would never miss it. However, he was clearly wrong,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case demonstrates how the FBI, and our partners won’t stand for criminals who seek to enrich themselves at the expense of innocent Americans.”
This matter was investigated by the United States Postal Inspection Service and Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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Gary Woman Sentenced to 210 Months in PrisonRead the Press Release
HAMMOND- Patricia Carrington, 48, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to kidnapping, announced United States Attorney Clifford D. Johnson.
Carrington was sentenced to 210 months in prison followed by 3 years of supervised release.
According to documents in the case, on the night of April 14, 2019, Carrington participated in the kidnapping of a woman hoping to elicit information concerning the whereabouts of a witness in her son’s upcoming criminal case. Carrington participated in forcing the victim into a car at gunpoint, blindfolding and duct-taping her, and driving her around. The victim was beaten and threatened when she would not provide the information. The victim was thereafter dragged from the car to an area behind a house where she was shot in the face and arm and left for dead. The victim survived the attack.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary Police Department, Indiana State Police, and Lake County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorneys Thomas Mahoney and Michael Toth.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gary M. Restaino Takes Office as United States AttorneyRead the Press Release
PHOENIX, Ariz. – Gary M. Restaino took office today as United States Attorney for the District of Arizona.
President Biden nominated Mr. Restaino to serve as U.S. Attorney on October 27, 2021.The Senate confirmed his nomination on November 19, 2021. Mr. Restaino was sworn into office by the Honorable Chief Judge G. Murray Snow this morning at the U.S. District Courthouse for the District of Arizona.
Mr. Restaino, 53, is assuming the position after having worked in the office for nearly two decades. During that time, he served as the Chief of the Criminal Division in Phoenix from 2012 to 2016 and as the Chief of the White Collar Crime Section from 2008 to 2009. From 2009 to 2010, Mr. Restaino was detailed as a Trial Attorney to the Public Integrity Section of the Department of Justice in Washington.
“I thank the President, and Senators Sinema and Kelly, for the trust they have placed in me. I am thrilled at the opportunity to partner with such fine colleagues at the U.S. Attorney’s Office and with the dedicated law enforcement professionals throughout the State. And I look forward to the opportunity to work with the civic and civil rights organizations who hold us accountable and who, with their energy and compassion, help push Arizona to be a better place,” said Mr. Restaino.
As an Assistant United States Attorney, Mr. Restaino handled numerous high-profile matters, including the successful prosecutions of former Fiesta Bowl executives in a scheme to make illegal campaign contributions, and of former U.S. Rep. Rick Renzi for extortion and bribery in connection with a federal land swap deal. Additionally, he prosecuted scores of cases involving investment fraud, money laundering and human smuggling. Aside from his litigation activities, he also collaborated extensively with prosecutors in Mexico and Colombia through the Department’s Office of Prosecutorial Development, Assistance and Training.
Mr. Restaino received his J.D. from the University of Virginia School of Law in 1996 and his B.A. from Haverford College in 1990. Prior to his employment as a federal prosecutor, Mr. Restaino was a civil rights lawyer from 1999 to 2003 with the Arizona Attorney General’s Office, and represented migrant and seasonal farmworkers with Community Legal Services, Inc. from 1996 to 1999. Between college and law school, he served for two years with the Peace Corps in rural Paraguay.
Mr. Restaino succeeds Glenn McCormick, who had been serving as Acting U.S. Attorney since April 24, 2021.
RELEASE NUMBER: 2021-088_Gary Restaino
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Freeburg Couple Sentenced for Defrauding Elderly Family MemberRead the Press Release
EAST ST. LOUIS, Ill. – Ronald Speiser, 81, and Jean Speiser, 81, of Freeburg, Illinois, will spend
their next year in home confinement making restitution payments after defrauding an
elderly family member out of nearly $200,000. The Speisers pled guilty to two counts of fraud and
were sentenced on Thursday, November 18, 2021, in U.S. District Court in East St. Louis, Illinois.According to Court documents, the Speisers were designated as the victim’s power of attorney and
successor power of attorney in the victim’s estate plan. In June 2018, the Speisers exercised their
authority over the victim’s finances by opening an account at Citizens Community Bank
in Mascoutah, Illinois, and depositing a check for over $250,000 after selling the victim’s home.
Starting around December 2018, and continuing until at least June 2020, the Speisers abused their
access to these funds by spending over $200,000 of the victim’s money without the
victim’s knowledge or permission, and for purposes that did not benefit the victim. Their spending
spree included over $50,000 in personal home renovations, paying over a year’s worth of personal
credit card bills, purchasing a new camper and new truck, and making a down payment and thirteen
mortgage payments on a second home.“The FBI recognizes that seniors can be a particularly vulnerable group,” said Special Agent in
Charge David Nanz. “In this case, Ronald and Jean Speiser were in a position of trust, not only
as power of attorney but as a family member. Rather than being good stewards of the
responsibilities entrusted to them, they chose to steal money and use it for their own personal
gain. The FBI will not hesitate to investigate those who victimize and take advantage of the
elderly citizens of our community.”While on home confinement, the Speisers will be restricted to their residence except for religious
services, medical appointments, and other pre-approved activities. Their sentence also included an
additional year of supervised release after home confinement and paying full restitution to the
victim. The Speisers paid the victim an initial lump sum of $119,000 as part of
their plea agreement. They will pay the remainder in monthly installments.This case was brought as part of the Department of Justice’s Elder Fraud Initiative. Information
about the Department of Justice’s Elder Fraud Initiative is available at
www.justice.gov/elderjustice.If you or someone you know is age 60 or older and has been a victim of financial fraud, help is
standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S.
Department of Justice hotline, managed by the Office for Victims of Crime, is staffed
by experienced professionals who provide personalized support to callers by assessing the needs of
the victim, and identifying relevant next steps. Case managers will identify appropriate reporting
agencies, provide information to callers to assist them in reporting, connect callers directly with
appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is
the first step. Reporting can help authorities identify those who commit fraud and reporting
certain financial losses due to fraud as soon as possible can increase the likelihood of recovering
losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English,
Spanish and other languages are available.The case was investigated by Adult Protective Services, St. Clair County Sheriff’s Department,
and the Federal Bureau of Investigation - Springfield Division.
Franklin Man Sentenced to 96 Months for Distribution of Drugs and Firearm OffensesRead the Press Release
CONCORD - Jake Laurence Mason, 28, of Franklin, was sentenced on Monday to 96 months in federal prison for drug trafficking and possession of a firearm in furtherance of drug trafficking, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between March and July 2020, Franklin police were investigating Mason’s suspected drug distribution activities. Based on evidence gathered throughout the investigation, officers executed a search warrant on August 7, 2020. Mason was arrested at the scene when officers located suspected drugs in plain view on a table in front of Mason. A further search of the property revealed a loaded handgun stuffed in the couch cushions next to Mason. A backpack was located containing items associated with drug distribution as well as a cell phone, ledger $1,200 in cash and drugs packaged in various containers. Inside a locked closet, officers located a shotgun, handgun and AK-47 rifle as well as ammunition. Safes in the closet contained more items associated with drug distribution, $1,600 in cash and suspected drugs in various containers. Over 49 grams of methamphetamine and over 65 grams of fentanyl were located during the search.
“Armed drug traffickers like Mr. Mason present a significant risk to the community,” said Acting U.S. Attorney Farley. “While distributing drugs like methamphetamine and fentanyl endangers the community, that danger is even greater when drug dealers possess multiple firearms. In order to protect the citizens of the Granite State, we will continue to seek substantial prison sentences for the armed drug dealers who threaten public safety in our local communities.”
“DEA and our state and local counterparts will do everything in our power to bring to justice those who distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Mason accountable for his crimes but serves as a warning that DEA and its local and state partners will work diligently to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by Franklin Police Department with assistance from Drug Enforcement Administration, Merrimack County Sheriff’s Department, Andover Police Department, Tilton Police Department and Northfield Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Fox Point Man Indicted for Defrauding Investors of over $5.5 MillionRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on November 16, 2021, a federal grand jury indicted David O. Braeger (age: 54), of Fox Point, Wisconsin, for three counts of Wire Fraud, three counts of Bank Fraud, one count of Mail Fraud, and and two counts of Engaging in Unlawful Monetary Transactions, in violation of 18 U.S.C. §§ 1341, 1343, 1344, and 1957.
If convicted, Braeger faces a maximum sentence of thirty years in prison, up to five years of supervised release, and up to a $1,000,000 fine for each of the Bank Fraud counts. He faces a maximum sentence of twenty years in prison, up to five years of supervised release, and up to a $250,000 fine for each of the Wire Fraud counts and the Mail Fraud count. He also faces a maximum of ten years in prison, up to three years of supervised release, and up to a $250,000 fine for each of the Engaging in Unlawful Monetary Transaction counts.
According to the indictment, beginning on or about September 2016 and August 2017, Braeger engaged in two separate investment schemes in which he defrauded victims into investing in entities based on false representations and promises. The indictment alleges that instead of using the investor funds as promised, Braeger used a significant portion of the victims’ money to make Ponzi-like payments to prior investors and to fund his own lifestyle. The indictment further alleges that between 2016 and 2018, Braeger fraudulently obtained over $5.5 million from his victims.
In 2020, the Financial Industry Regulatory Authority (FINRA) barred Braeger from associating with any member in any capacity based on findings that Braeger made misrepresentations and omissions to customers concerning investments he sold and findings that he converted and misused customer funds.
The Wisconsin Department of Financial Institutions and the Federal Deposit Insurance Corporation-Office of the Inspector General investigated the case, which Assistant United States Attorney Julie F. Stewart will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
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Public Information Officer Kenneth Gales 414-297-1700
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Four Sentenced this Week for Roles in Pandemic Unemployment Fraud, Mail Fraud SchemeRead the Press Release
ABINGDON, Va. – Four more Southwest Virginia residents who conspired with over 30 other people to defraud the United States government by filing claims for more than $499,000 in pandemic unemployment benefits and committing mail fraud and other offenses were sentenced this week to federal prison time.
Randall Johnson, 42, of Castlewood, Virginia, was sentenced yesterday to 24 months in prison. Today, Steven Mullins, 34, of Big Stone Gap, Virginia, was sentenced to 27 months, Ajay Johnson, 26, of Fruitland Park, Florida, received a sentence of 30 months, and Patrick Payne, 43, of Big Stone Gap, was sentenced to 24 months in prison.
“The nearly $500,000 in funds stolen by this conspiracy could have gone to Virginians in critical need of support during a pandemic, but instead went into the hands of those undeserving,” United States Attorney Christopher R. Kavanaugh said today. “The sentences handed out this week prove that this Department of Justice will not standby as individuals take advantage of programs designed to help our nation recovery from this once in a generation health crisis.”
“These conspirators thought they could game the system and defraud the government during a time of national crisis,” said IRS-CI Washington DC Field Office Special Agent in Charge Darrell Waldon. “We will continue to root out Covid-19 related fraud and bring these bad actors to justice.”
“Randall Johnson, Steven Mullins, Ajay Johnson, and Patrick Payne, all sought to financially enrich themselves by engaging in a conspiracy to submit false claims for pandemic unemployment assistance (PUA) for ineligible claimants, to include prisoners. The U.S. Department of Labor Office of Inspector General and its partners, such as the Virginia Employment Commission and U.S. Attorney’s Office, will continue to work together to preserve the integrity of the PUA program by vigorously pursuing those who commit this type of fraud,” stated Special Agent-In-Charge Syreeta Scott, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
According to court documents, R. Johnson, Mullins, Payne, and A. Johnson conspired with others to file claims for pandemic unemployment benefits through the Virginia Employment Commission (VEC) website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including numerous inmates incarcerated in Southwest Virginia regional jails. To date, 23 of the co-conspirators have pleaded guilty to their roles in the broader conspiracy.
Conspiracy members lied on the VEC filings as part of the scheme to make filers appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, each of those filings re-verified and re-certified the false statements on numerous occasions throughout the scheme.
In all, the conspiracy participants filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid. In addition to those indicted, eight co-conspirators have already entered into plea agreements with the United States.
The Department of Labor – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorney Daniel J. Murphy prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by accessing the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Richard Klaff, 48 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of 5 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson.
Klaff was sentenced to 180 months in prison followed by 4 years of supervised release.
According to documents in the case, Klaff distributed several ounces of methamphetamine in February 2020, and again in March of 2020.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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Former Shadow Creek Ranch manager charged with wire fraudRead the Press Release
HOUSTON – A 62-year-old Houston resident is set to appear in federal court on charges she defrauded a property management company, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Denise Southall-Shaw is charged with one count of wire fraud. She is set to appear before U.S. Magistrate Judge Andrew Ellison at 2 p.m. today.
Southall-Shaw was the former manager of Shadow Creek Ranch in Pearland. First Service Residential (FSR) is Shadow Creek’s property management company and employed Southall-Shaw, according to the information.
She allegedly engaged in a scheme to defraud FSR. The information alleges that between December 2013 and November 2017, Southall-Shaw approved invoices from a ranch vendor for goods and services she knew the vendor had not provided, according to the allegations.
Southall-Shaw allegedly caused this vendor to kickback to her 50% of the payment the vendor received, which totaled $421,519.
If convicted, she faces up to 20 years in federal as well as a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Norwell Youth Football Coach Sentenced to 45 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
BOSTON – A former Norwell youth football coach was sentenced today in federal court in Boston for sexually exploiting children.
Derek Sheehan, 51, was sentenced by U.S. District Court Judge Richard G. Stearns to 45 years in prison and five years of supervised release. On July 20, 2021, Sheehan pleaded guilty to three counts of sexual exploitation of children.
“Mr. Sheehan abused his status as a youth football coach to prey on vulnerable children. He manipulated and sexually exploited them for months, and for that he will spend the rest of his life behind bars,” said Acting United States Attorney Nathaniel R. Mendell. “There are few crimes deserving of a life sentence, and this is one of them. We do all we can to protect our children and ensure their safety, as this case shows.”
“Adults who use their access to children for their own sexual gratification, like former football coach Derek Sheehan did, are both a danger and a disgrace. What Derek Sheehan did is absolutely horrific, and the impact on his victims is immeasurable. While today’s sentencing cannot erase that harm, it ensures he will remain behind bars for a very long time, unable to victimize anyone else, ever again,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI and our law enforcement partners will never stop working to put predators like him behind bars. These are incredibly disturbing cases, and each time we're able to step in and protect a child from further sexual abuse, it's a good day.”
In June 2018, one of the minor victims reported sexual abuse by Sheehan to local law enforcement. On Aug. 17, 2018, a search of Sheehan’s Norwell residence resulted in the seizure of electronic devices that contained child pornography. Subsequent analysis of those devices uncovered video evidence of Sheehan, a Norwell youth football coach at the time, sexually abusing three minors while they slept at his home on various dates between March 2017 and July 2018. The victims depicted in the footage, all of whom were known to Sheehan, were 11 and 12 years old when he sexually abused them.
Acting United States Attorney Mendell and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the Plymouth County and Cape and Islands District Attorney’s Offices; the Massachusetts State Police; and the Norwell Police Department. Assistant U.S. Attorney Anne Paruti, Chief of Mendell’s Major Crimes Unit and the Project Safe Childhood coordinator, and Assistant U.S. Attorney Charles Dell’Anno, of Mendell’s Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Joplin Teacher Sentenced to 20 Years for Enticing a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – A former Joplin, Missouri, middle school teacher was sentenced in federal court today for charges related to enticing one of her students to engage in illicit sex.
Amanda Ruth Schweitzer, 42, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole. The court also sentenced Schweitzer to 15 years of supervised release following incarceration.
On June 16, 2020, Schweitzer pleaded guilty to enticing a minor for illegal sexual activity. Schweitzer was a teacher at North Middle School in Joplin at the time of the offense.
The 13-year-old victim, who was a student of Schweitzer’s, reported Schweitzer sent nude photos of herself to the victim, with whom she primarily communicated via Instagram, and engaged in sexual intercourse with the victim on at least two occasions in March 2017. The victim reported that he also sent a nude image of himself to Schweitzer.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department, and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Columbus man sentenced to prison for hate crime that involved making antisemitic threats to neighbors, breaking their windowRead the Press Release
COLUMBUS, Ohio – A former Columbus man was sentenced today in federal court to six months in prison, a $50,000 fine and one year of supervised release for criminally interfering with the right to fair housing. His charges stemmed from antisemitic threats the defendant made to his neighbors.
Douglas G. Schifer, 66, of Bucyrus, Ohio, threatened neighbors and their guests because of their religion during an outdoor gathering at the neighbors’ residence on Nov. 7, 2020.
Schifer was charged by a federal criminal complaint in March and pleaded guilty in June to interfering with the right to fair housing.
Plea documents detail that Schifer stated in part, “all you f***ing people, it’s no wonder Hitler burned you people in ovens,” “f***ing Hitler should have gassed you,” and “Jews burn, you belong in ovens.”
Court documents say that Schifer also said to the neighbors, “f***ing dog” and “I will poison your dog if it comes back to the fence.” Schifer admitted to threatening to shoot the neighbors and their dog, and to “burn to the ground” a garage the neighbors were remodeling.
Schifer shouted other antisemitic slurs, obscenities and other derogatory language about their religion at his neighbors and their guests on Nov. 7, 2020. He also broke one of their windows and spat at one of the neighbors. He also made reference to gassing Jewish people, chopping them up, and burning them in ovens.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. Magistrate Judge Elizabeth Preston Deavers. Assistant United States Attorney Peter K. Glenn-Applegate, Senior Litigation Counsel Heather A. Hill, and Trial Attorney Cameron Bell of the Department of Justice’s Civil Rights Division are representing the United States in this case.
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Felon Pleads Guilty to Federal Gun ChargeRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that MIKAL BLACK, age 23, of Ironton, Louisiana, pleaded guilty on November 23, 2021 to a single count of being a felon in possession of a firearm in violation of the Federal Gun Control Act, Title 18 United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, BLACK was previously convicted of manufacturing a Schedule I controlled dangerous substance. Being a felon, BLACK is prohibited from possessing firearms or ammunition. He has now been convicted of possessing a firearm on August 11, 2020.
BLACK faces a maximum term of imprisonment of up to ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. District Judge Wendy B. Vitter has set the sentencing hearing in the case for February 22, 2022.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Plaquemines Parish Sherriff’s Office and the Federal Bureau of Investigation.in investigating this matter. Assistant U. S. Attorney Charles D. Strauss is in charge of the prosecution.
Felon Arrested After High-Speed Chase in Vacaville Sentenced to 9 Years in Prison for Illegal Possession of GunsRead the Press Release
SACRAMENTO, Calif. — Eligio Nunez, 41, of Hayward, was sentenced today by U.S. District Judge William B. Shubb to nine years in prison for being a felon in possession of three firearms, Acting U.S. Attorney Phillip A. Talbert announced.
After a three-day trial in August 2021, a federal jury found Nunez guilty of being a felon in possession of firearms. According to evidence presented at trial, on Aug. 7, 2020, Nunez led police in a high-speed chase while driving a stolen Lexus. He ended the pursuit by abandoning the car in a grassy area off of Shelton Lane in Vacaville. After running from police, he was apprehended by officers in a dry creek bed. Just after he fled on foot, the car caught fire, which caused ammunition inside the car to explode. Later, an investigation found three handguns inside the burned car, which the jury found Nunez to have possessed. Nunez was prohibited from possessing firearms a result of his 10 felony convictions, which include assault with a deadly weapon, felon in possession of a firearm, evading a peace officer, and two drug trafficking offenses.
This case was the product of an investigation by the FBI and the Vacaville Police Department. Assistant U.S. Attorneys Jason Hitt and Paul A. Hemesath prosecuted the case.
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.
Federal Indictment Charges Five with Conspiracy to Traffic MethamphetamineRead the Press Release
CHARLOTTE, N.C. – A federal criminal indictment has been unsealed, charging five individuals with conspiracy to traffic methamphetamine and related offenses, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
The indictment charges Charles Ray Hildebran, 46, of Hickory, N.C.; Phillip Anthony Godfrey, 47, of Newton, N.C.; Jeffrey Ben Pavkovich, 52, of Gainesville, Georgia; Britton Nicole Metcalf, 34, of Morganton, N.C.; and Billy Dean Potter, 36, of Hickory, N.C., with conspiracy to traffic methamphetamine. The defendants are also charged with possession with intent to distribute methamphetamine and/or distribution of methamphetamine. Hildebran, Godfrey, Pavkovich and Metcalf are also facing firearms offenses. (See chart below for a list of charges and statutory penalties for each defendant).
According to allegations contained in the indictment, from at least 2018 to October 2021, the defendants were involved in a drug trafficking network that distributed methamphetamine in and around Buncombe, Burke, Catawba, and McDowell Counties. The indictment further alleges that the defendants engaged in multiple drug sales and that Hildebran, Godfrey, Pavkovich and Metcalf also possessed firearms in furtherance of their drug trafficking activities. Over the course of the investigation, law enforcement recovered 20 illegal firearms, narcotics, and more than $100,000 in U.S. currency.
The defendants are currently in federal custody following their initial court appearances.
The charges in the indictment are allegations and the defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Drug Enforcement Administration in Charlotte and Atlanta; the Department of Homeland Security- Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the North Carolina State Bureau of Investigation; the North Carolina Highway Patrol; the North Carolina Department of Public Safety, Community Corrections; the Georgia Department of Corrections; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the McDowell County Sheriff’s Office; the Hickory Police Department; the Long View Police Department; and the Newton Police Department for their coordinated investigation of this case.
Assistant United States Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
CHARLES RAY HILDEBRAN
1
Methamphetamine Conspiracy
-50 grams or more actual
-500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
8
Distribute Methamphetamine
-5 grams or more actual
5 to 40 years in prison, maximum fine of $5,000,000
9, 11
Possess with Intent to Distribute Methamphetamine
-Count 9: 500 grams or more mixture
-Count 11: 50 grams or more actual and 500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
10
Distribute Methamphetamine
-50 grams or more actual and 500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
12
Possess Firearms in Furtherance of a Drug Trafficking Crime
5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000
13
Possess Firearms by Felon
10 years in prison, maximum fine of $250,000
PHILLIP ANTHONY GODFREY
1
Methamphetamine Conspiracy
-50 grams or more actual
-500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
3, 18
Possess with Intent to Distribute Methamphetamine
-Count 3: 50 grams or more actual
-Count 18: 50 grams or more actual and 500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
4
Possess a Firearm in Furtherance of a Drug Trafficking Crime
5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000
19
Possess with Intent to Distribute Methamphetamine
-5 grams or more actual
5 to 40 years in prison, maximum fine of $5,000,000
JEFFREY BEN PAVKOVICH
1
Methamphetamine Conspiracy
-50 grams or more of actual
-500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
2
Possess with Intent to Distribute Methamphetamine
-50 grams or more mixture
5 to 40 years in prison, maximum fine of $5,000,000
15
Distribute Methamphetamine
-50 grams or more actual
10 years to life in prison, maximum fine of $10,000,000
16
Possess Firearms in Furtherance of a Drug Trafficking Crime
5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000
17
Possess Firearms by Felon
10 years in prison, maximum fine of $250,000
BRITTON NICOLE METCALF
1
Methamphetamine Conspiracy
-50 grams or more actual
-500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
5
Possess with Intent to Distribute Methamphetamine
-50 grams or more mixture
5 to 40 years in prison, maximum fine of $5,000,000
6
Possess Firearms in Furtherance of a Drug Trafficking Crime
5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000
7
Possess Firearms by Felon
10 years in prison, maximum fine of $250,000
9, 14
Possess with Intent to Distribute Methamphetamine
-Count 9: 500 grams or more mixture
-Count 14: 50 grams or more actual and 500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
BILLY DEAN POTTER
1
Methamphetamine Conspiracy
-50 grams or more actual
-500 grams or more mixture
10 years to life in prison, maximum fine of $10,000,000
21, 23, 24
Distribute Methamphetamine
-50 grams or more actual
10 years to life in prison, maximum fine of $10,000,000
Federal Grand Jury Indicts Man for Carjacking and Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Friday, November 19, 2021, KEON ESTEEN, age 18, a resident of Orleans Parish, was charged in a two-count indictment for carjacking and a gun violation. Count 1 of the indictment charges ESTEEN with a carjacking that occurred on April 3, 2021, in the Eastern District of Louisiana. Count 2 charges ESTEEN with using a firearm in furtherance of a crime of violence.
In Count 1 of the indictment, ESTEEN is charged with carjacking, in violation of Title 18, United States Code, Section 2119(1). If convicted, ESTEEN faces a maximum sentence of up to fifteen (15) years of imprisonment, a fine of up to $250,000, a period of up to three (3) years of supervised release, and a mandatory special assessment fee of $100. In Count 2, ESTEEN is charged with using a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). If convicted, ESTEEN faces a mandatory minimum sentence of seven (7) years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000, a period of up to five (5) years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Essex County Felon Admits Possessing Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County man with a prior felony conviction today admitted illegally possessing a loaded handgun and a magazine, Acting U.S. Attorney Rachael A. Honig announced.
Bilal Ward, 29, of Newark, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of being a felon in possession of a firearm and ammunition.
According to documents filed in this case and statements made in court:
On Sept. 26, 2020, pursuant to a lawful search of Ward’s car in Newark, law enforcement officers recovered a 9mm Taurus handgun, loaded with 15 rounds of ammunition, a magazine loaded with nine rounds of ammunition, and a bag of marijuana. Ward had previously been convicted of a felony and was prohibited from possessing firearms and ammunition.
The charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 7, 2022.
This case 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.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; and special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the Violent Crimes Unit and Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
Drug Distributor for East Baltimore Monument Street Drug Trafficking Organization Sentenced to More Than Five Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Brian Blackston, age 32, of Baltimore, yesterday to 70 months in federal prison, followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine in the Monument Street area of East Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Blackston’s plea agreement, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in his plea agreement, investigators identified Blackston as a drug distributor for the OTM DTO who agreed with his co-conspirators to acquire and to assist in distributing controlled substances to others. Investigators conducted physical surveillance and intercepted calls between Blackston and his co-conspirators discussing the distribution of drugs, including cocaine, crack cocaine, fentanyl and heroin.
Throughout the course of Blackston’s involvement in the conspiracy, it was reasonably foreseeable to Blackston, and within the scope of the conspiracy that he or other members of the conspiracy would distribute between 500 grams and two kilograms of cocaine, as well as quantities of crack cocaine, heroin, and fentanyl, during the course of and in furtherance of the conspiracy.
Blackston is the final defendant to be sentenced of the 25 defendants charged as part of this investigation who either pleaded guilty or were convicted at trial.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who prosecuted the case.
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Dominican National Convicted of Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national was convicted yesterday by a federal jury of distributing fentanyl.
Bernardito Carvajal, 30, who most recently resided in Haverhill, was convicted following a five-day jury trial of two counts of distribution of fentanyl. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for March 22, 2022. Carvajal was indicted in January 2020 and has been in custody since his arrest in July 2019.
On or about June 12, 2019, Carvajal sold fentanyl in Lawrence to a 26-year-old victim, who died of an overdose the following day. Carvajal continued to sell fentanyl after the fatal overdose, including another sale on July 31, 2019 to an undercover officer, after which he was arrested. At trial, the jury convicted Carvajal of the underlying fentanyl distribution counts, but acquitted the defendant for the overdose death of the victim.
“Drug dealers make a living selling death on the installment plan – I think people lose sight of that. Drug dealers and traffickers made money off each of the 100,000 people who overdosed last year,” said Acting United States Attorney Nathaniel R. Mendell. “The jury in this case found that Carvajal distributed lethal drugs and Carvajal will pay a steep price for his crimes. My office will continue to pursue and prosecute those who prey on addicts by distributing deadly drugs.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Today’s conviction not only holds Mr. Carvajal accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
The charge of distribution of fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case arose from “Operation Devil’s Highway,” a 10-week coordinated enforcement operation in the Merrimack Valley. The enforcement operation was a coordinated effort by federal, state and local partners to focus on drug distribution activity in the City of Lawrence and between Lawrence and New Hampshire.
Acting U.S. Attorney Mendell, DEA SAC Boyle and Andover Police Chief Patrick Keefe made the announcement. Assistant U.S. Attorneys Elysa Wan and Stephen Hassink of Mendell’s Criminal Division are prosecuting the case.
Crossroads Hospice Agrees to Pay $5.5 Million to Settle False Claims Act LiabilityRead the Press Release
Carrefour Associates LLC; Crossroads Hospice of Cincinnati LLC; Crossroads Hospice of Cleveland LLC; Crossroads Hospice of Dayton LLC; Crossroads Hospice of Northeast Ohio LLC; and Crossroads Hospice of Tennessee LLC (Crossroads Hospice), operating in Ohio and Tennessee, have agreed to pay $5.5 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare for non-covered hospice services.
Hospice care is special, end-of-life care intended to comfort terminally ill patients. Patients admitted to hospice care generally stop receiving coverage for traditional medical care designed to cure their terminal condition and instead receive medical care focused on providing them with relief from the symptoms, pain and stress of a terminal illness. Medicare patients are considered to be terminally ill and hospice-eligible when they have a life expectancy of six months or less if their illness runs its normal course.
This settlement resolves allegations that Crossroads Hospice knowingly submitted false claims to Medicare for hospice services for patients who were not terminally ill. According to the settlement agreement, the United States alleged that from Jan. 1, 2012 to Dec. 31, 2014, Crossroads Hospice billed Medicare for hospice care for certain patients with a diagnosis of dementia or Alzheimer’s disease at its Ohio and Tennessee locations who were not terminally ill for at least a portion of the more than three years that the patients received care at these locations.
“Medicare’s hospice benefit provides critical end of life services that focus on palliative rather than curative care,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates our continuing commitment to ensure that hospice services are provided to patients who truly need this care and that patients who are not terminally ill receive appropriate curative care.”
“This office is committed to pursuing providers who put profits ahead of patients,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “We will continue to hold accountable those who abuse federal healthcare programs at the expense of the taxpayers.”
“The Medicare program provides older Americans with access to health,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “When frauds like this are committed by serviced providers, it effectively deprives older Americans of health care resources. Our office will continue to take steps to prevent frauds like this from taking place in order to ensure that the Medicare program’s resources are used effectively.”
“The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis and desire for palliative care, not a hospice provider’s desire to boost its profits,” said Special Agent in Charge Lamont Pugh III of U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency is dedicated to safeguarding both the Medicare program and Medicare patients. This settlement reaffirms HHS-OIG’s commitment to holding accountable providers who knowingly submit false claims to Medicare.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Leanne Malone, Jackie Burns and Angela Heck, former employees of Crossroads Hospice, as well as Dr. David Weber, a home health physician in Tennessee. 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: United States ex rel. Leanne Malone et al. v. Carrefour Associates LLC et al., No. 1:15-cv-460 (S.D. Ohio) and United States ex rel. David Weber v. Crossroads Hospice of Tennessee, LLC, No. 2:16-cv-02684 (W.D. Tenn.). Under this settlement, the whistleblowers in the Malone action will receive approximately $1,045,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Ohio; and the U.S. Attorney’s Office for the Western District of Tennessee. HHS-OIG assisted in the investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Fraud Section Trial Attorney Jonathan Hoerner, Assistant U.S. Attorney Andrew Malek of the Southern District of Ohio and Assistant U.S. Attorney Eileen Kuo of the Western District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Cortland County Man Sentenced to 30 Years in Prison for Sexually Exploiting a 3-Year-Old ChildRead the Press Release
SYRACUSE, NEW YORK – Lawrence Berry, age 28, of Marathon, New York was sentenced today by United States District Court Judge David N. Hurd to 30 years’ imprisonment for sexual exploitation of a child. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his previously entered guilty plea, Berry admitted that he conspired with Brittany Berry (who has pled guilty to her role in the offense and is scheduled to be sentenced in December 2021) to sexually exploit a 3-year-old minor child in August and September of 2018 and that he directed Brittany Berry to sexually exploit the child on five different occasions for the purpose of creating and sending images and videos (live and recorded) of the sexual abuse to him over the internet.
In addition to the imprisonment term, Judge Hurd sentenced Berry to 25 years of supervised release to begin after he serves his term of imprisonment. Upon release from prison, Berry also will be required to register as a sex offender in any state where he lives, is employed, or is a student.
This case was investigated by the FBI and the City of Cortland Police Department and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian and Special Assistant U.S. Attorney Adrian LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney's offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed 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 https://www.justice.gov/psc.
Columbia Man Sentenced to More Than Seven Years for Possessing AmmunitionRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Leonard Earl Mitchell, 30, of Columbia, was sentenced to more than seven years in federal prison after pleading guilty to being a felon in possession of ammunition.
Evidence presented to the court showed that after officers with the City of Columbia Police Department received a report of shots fired on Two Notch Road, they located nine spent shell casings in a parking lot. In reviewing the surveillance footage, officers saw an unknown person discharge two rounds from a car in the direction of Mitchell as he was exiting a business. After getting in a parked car, Mitchell retrieved a firearm and discharged ten rounds at the passing car and fled.
A City of Columbia police officer was able to identify Mitchell as a person involved in the shooting from a prior encounter, in addition to Mitchell’s distinctive facial tattoos. When Mitchell was arrested, he had a 9mm pistol that matched the shell casings found in the parking lot.
Mitchell had previously been convicted of several felony offenses, including failure to stop for blue lights, assault and battery of a high and aggravated nature, assault and battery second degree, distribution of marijuana, assault and battery first degree, possession of methamphetamine/cocaine, and carrying or concealing weapon by an inmate. As such, Mitchell is prohibited from possessing a firearm or ammunition.
United States District Judge Mary Geiger Lewis sentenced Mitchell to 90 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and City of Columbia Police Department.
The case was prosecuted as part of the as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney William K. Witherspoon and Special Assistant United States Attorney Kristen Bales prosecuted the case.
Cindy K. Chung Sworn in as U.S. Attorney for the Western District of PennsylvaniaRead the Press Release
PITTSBURGH – Cindy K. Chung was sworn in today as the 59th United States Attorney for the Western District of Pennsylvania and began her duties immediately.
“I am grateful to the President for my nomination and to Senators Casey and Toomey for their recommendation and endorsement,” said U.S. Attorney Chung. “I have dedicated my career to serving the public and am honored to continue to do so by leading this outstanding office. I look forward to working with our law enforcement and community partners to protect the public, pursue equal justice under the law, and serve the people of the Western District of Pennsylvania.”
Chief U.S. District Judge Mark R. Hornak administered to oath to Ms. Chung, 46, of Pittsburgh, in a ceremony this morning.
Prior to becoming U.S. Attorney, Ms. Chung served as an Assistant United States Attorney for the U.S. Attorney’s Office for the Western District of Pennsylvania since 2014. Ms. Chung has held numerous positions during her tenure, including Deputy Chief of the Major Crimes Section from 2018 to 2020, Acting Deputy Chief of the Violent Crimes Section at various times in 2015 to 2017, Domestic Violence Coordinator from 2019 to 2020, Project Safe Neighborhoods Coordinator from 2018 to 2020, Border Security Coordinator from 2018 to 2020, and Civil Rights Coordinator from 2016 to 2018. Ms. Chung also served as an Adjunct Professor at the University of Pittsburgh School of Law where she cotaught a course on Federal Hate Crimes in the Spring of 2021.
Prior to joining the U.S. Attorney’s Office, Ms. Chung worked as a Trial Attorney in the Criminal Section of the Department of Justice’s Civil Rights Division from 2009 to 2014. From 2003 to 2007, Ms. Chung worked as an Assistant District Attorney at the District Attorney’s Office, New York County, and she continued her work there as an Investigation Counsel in the Official Corruption Unit from 2007 to 2009. Ms. Chung began her legal career as a law clerk for Judge Myron Thompson on the United States District Court for the Middle District of Alabama from 2002 to 2003.
Ms. Chung received her J.D. from Columbia Law School in 2002 and her B.A.s from Yale University in 1997.
Ms. Chung, who was nominated for U.S. Attorney by President Joe Biden on Oct. 27, and confirmed by the U.S. Senate on Nov. 19, 2021, assumes the office from Acting U.S. Attorney Stephen R. Kaufman. She leads an office currently staffed with 59 Assistant U.S. Attorneys across the criminal, civil and appeals divisions, and 56 professional support staff in offices in Pittsburgh, Erie, and Johnstown.
The Western District of Pennsylvania includes the 25 westernmost counties in the Commonwealth of Pennsylvania.
Chesapeake Businessman Pleads Guilty to $1.2 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Chesapeake man and business owner pleaded guilty today to defrauding the Internal Revenue Service (IRS) out of more than $1.2 million in taxes.
According to court documents, from 2013 through 2017 Shane August, 36, owned and operated a home-healthcare business in Chesapeake. August defrauded the IRS by, among other things, hiding personal bank accounts, using undisclosed accounts to conduct business, maintaining a cash lifestyle to avoid the IRS, making false statements about his ability to pay, lying to IRS agents, and diverting large sums of money to pay for personal expenses.
August withheld employment taxes from approximately 60 of his employees and failed to consistently pay more than $900,000 of those withholdings to the IRS. Each year, August provided fraudulent employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.
Additionally, between 2014 and 2017, August reported personal income to the IRS of more than $900,000 but failed to pay taxes on this income and now owes more than $288,000 in personal income tax for those years. Instead of paying his taxes, August used large sums of money to pay for personal expenses like a building contract on a home and a luxury vehicle lease.
August is scheduled to be sentenced on March 24, 2022. He faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell Waldon, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Washington, D.C., Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney D. Mack Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-62.
Chelsea Landlord and Property Manager Agree to $80,000 Settlement for False Claims Act ViolationsRead the Press Release
BOSTON – A Chelsea landlord, 44 Gerrish, LLC, and its property manager, HallKeen Management, Inc., have agreed to pay an $80,000 settlement for submitting false claims to the federal government after receiving illegal water utility payments from three low-income tenants while participating in a federal housing subsidy program.
The Department of Housing and Urban Development (HUD) provides federal funding through the Federal Housing Choice Voucher program, commonly referred to as “Section 8,” to assist low-income individuals in securing safe housing. HUD provides funding through vouchers that are administered by local public housing agencies. HUD pays the housing subsidy, which may cover all or a portion of a tenant’s monthly rent, including certain utilities, directly to the landlord or an agent of the landlord. As a condition for receiving the housing subsidy, the landlord, or an agent of the landlord, contractually agrees not to charge Section 8 tenants rent, including utilities, in excess of the amount set by the public housing agency.
Despite this restriction, from June 2014 to October 2020, the landlord and its property manager demanded and received monthly water utility payments from three Section 8 tenants on various occasions. One of the tenants brought a lawsuit against the defendants under the whistleblower provisions of the False Claims Act. As part of today’s settlement, the defendants admit to demanding and receiving payments for the water utility from three Section 8 tenants in violation of housing assistance payment contracts.
“The purpose of the Section 8 program is to help low-income families afford safe housing and keep a roof over their heads, not to afford an illicit windfall to landlords and their agents,” said Acting United States Attorney Nathaniel R. Mendell. “We will continue to hold accountable those who fail to exercise integrity in HUD programs and take advantage of their tenants.”
“This settlement is the latest example of our continued commitment to hold landlords accountable for actions that seek to enrich themselves at the expense of our poorest neighbors,” said Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The settlement agreement requires the defendants to pay $80,000 to the United States.
Acting U.S. Attorney Mendell and HUD OIG SAC Scaringi made the announcement today. Assistant U.S. Attorneys Steven Sharobem and Alexandra Brazier of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Capt. Phip’s Seafood Sentenced for Federal Visa Fraud Charge Resulting in Foreign Workers Being Paid Lower Wages Than Those to Which They Were EntitledRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Phillip J. “Jamie” Harrington III, age 50, of Dorchester, Maryland, to one year of probation, to pay a $10,000 fine, a $5,000 special assessment, and to perform 100 hours of community service for unlawful employment of undocumented workers. Judge Hollander sentenced Capt. Phip’s Seafood Inc. to three years of probation and to pay a $240,000 fine for visa fraud related to the employment of temporary workers employed at Harrington companies. In addition, Judge Hollander ordered Harrington and Captain Phip’s seafood to participate in a verification program for their employees and were debarred from participating in the H-2B visa program. The fines were paid today.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Andrew Wroblewski of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS); and Acting Special Agent in Charge Troy Springer of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General (DOL-OIG).
Philip J. Harrington, Jr. was Capt. Phip’s owner, President, and sole Director until his death on February 13, 2018. Since March 6, 2019, Capt. Phip’s has been owned and operated by Philip Harrington’s, son, Jamie Harrington. The primary business of Capt. Phip’s is the production and distribution of ice as well as the processing of seafood. For more than a decade, Capt. Phip’s has participated in the H-2B work visa program through which it has obtained temporary foreign workers to fill seasonal positions.
According to the company’s guilty plea, from 2013 through 2018, Captain Phip’s Seafood Inc. routinely sought prevailing wage determinations for multiple job descriptions, and then filed petitions for H-2B visas for only the jobs with the lowest prevailing wage, regardless of the actual work duties of the employees. The H-2B Visa Program is a temporary non-agricultural worker program in which an employer may seek temporary authorization for foreign workers to legally enter and work in the U.S. To obtain an H-2B Visa, the U.S. Department of Labor (DOL) must ensure the positions have been advertised to U.S.-based workers and assign the appropriate wage to be paid (“prevailing wage”) based on the job description.
As stated in the plea agreement, Captain Phip’s willfully submitted false and inaccurate job descriptions to obtain lower prevailing wages for its foreign workers. Capt. Phip’s omissions about the full scope of the job duties to be performed by its temporary foreign workers resulted in the DOL approving Capt. Phip’s to pay lower prevailing wage than it would have been authorized if Capt. Phip’s had provided truthful information.
For example, in 2016, Capt. Phip’s requested and received prevailing wage determinations for three position: ice conveyor operators with a prevailing wage of $12.51; oyster production workers with a prevailing wage of $16.96; and ice machine operators (ice production workers) with a prevailing wage of $11.10. Capt. Phip’s then filed a petition for ice production workers with the U.S. Citizenship and Immigration Services (USCIS). The petition was approved and the Department of State (DOS) issued 24 H-2B visas to non-immigrant Mexican nationals authorizing them to work for Capt. Phip’s as ice production workers in the United States. Once the Mexican ice production workers entered the United States, Capt. Phip’s used these workers for jobs beyond ice production, including for oyster processing, as maintenance workers, truck drivers and drivers’ assistants. Capt. Phip’s admits that it intentionally and falsely claimed that the foreign workers would only be engaged in ice production in order to pay them the lower prevailing wage. Had Capt. Phip’s truthfully filed for H-2B visas for many of these duties, these employees would have been entitled to a higher wage.
As stated in the company’s plea agreement, on August 31, 2017, a USCIS officer and government agents conducted a site visit at Capt. Phip’s location in Secretary, Maryland. At that time, Capt. Phip’s H-2B workers were authorized only to engage in oyster production work. During the site visit, three H-2B visa beneficiaries were interviewed through an interpreter and indicated that their current duties involved ice packing duties rather than oyster production work.
A USCIS officer and agents also interviewed Phillip Harrington, Jr., who signed all the H2-B visa petitions for Capt. Phip’s and his son, Jamie Harrington, who identified himself as the Vice President of Capt. Phip’s, responsible for “running the business,” to include the buying and selling of product, managing the levels of product, and hiring and/or firing. Jamie Harrington admitted that all of Capt. Phip’s H-2B workers were packing ice, and none of them were currently processing any oysters. The workers’ H-2B visas for 2017 only permitted them to work in oyster processing. Jamie Harrington admitted that Capt. Phip’s visa petitions should have been for workers for both ice and oyster processing.
During the August 31, 2017 interview, Jaime Harrington stated that he was also the President of Easton Ice Company, Inc. (“Easton Ice”). The principal office for Easton Ice is the same physical address as Capt. Phip’s premises in Secretary, Maryland. A subsequent interview of a recipient of multiple H-2B visas filed by Capt. Phip’s including in 2017, when the H-2B workers were only authorized for oyster processing, revealed that their duties that season were to drive a truck and deliver ice. In September 2017, an agent observed this person driving a truck bearing the name “Easton Ice.” The agent also saw another Capt. Phip’s H-2B recipient delivering ice and riding in the truck. Easton Ice did not apply for H-2B visas in 2017, and workers with H-2B visas obtained through Capt. Phips were not authorized to work for Easton Ice Company. Nevertheless, Jamie Harrington admitted that Capt. Phip’s H-2B visa recipients were routinely directed to perform work for Easton Ice and other businesses controlled by Philip and Jamie Harrington.
On August 9, 2018, government agents interviewed Jamie Harrington at Capt. Phip’s premises in Secretary, Maryland. Jamie Harrington admitted that the company was not in compliance with the requirements of the H-2B visa program and that some of Capt. Phip’s H-2B workers were driving trucks or performing other duties outside the scope of their visas, including performing work for other companies controlled by Philip and Jamie Harrington, including Easton Ice, Woodfield Ice Company, Inc. (“Woodfield Ice”), as well as two Ocean City, Maryland, motels owned by members of the Harrington family. Agents pointed out to Jamie Harrington that if the H-2B applications had been truthful about the location and job duties for workers at Woodfield Ice the prevailing wage would have been much higher because that business is in the Washington, D.C. metro area.
Between approximately 2013 and 2018, Capt. Phip’s filed petitions for H-2B visas for approximately 142, nonimmigrant workers. Capt. Phip’s officers involved in the H-2B process were aware that the nonimmigrant workers were intended to be employed to engage in work beyond the job descriptions authorized by the workers’ visas. Capt. Phip’s realized unlawful benefits through the use of fraudulently low prevailing wages between April 2013 to December 2018, although the exact amount cannot be determined. Capt. Phip’s has not participated in the H-2B visa program since at least January 2019.
Jamie Harrington is also the owner and operator of multiple other businesses involved the production and distribution of ice as well as processing of seafood, rental machinery, housing development, oyster farming, and other ventures including: Easton Ice; Woodfield Ice; PJH Oyster; Two Sons R.S., LLC; Philson Properties, LLC; Two Sons C.P. LLC; P&N Farms; Atlantic Rental, LLC; DMS Hurlock, LLC; The Preserve at Wright’s Wharf Homeowners Association; and Super Transporter, LLC. (together with Capt. Phip’s, the “Harrington Companies.”
Harrington admitted in his plea agreement that, beginning in 2013 and continuing through at least August 9, 2018, he engaged in a pattern and practice of hiring and employing workers without lawful immigration status at the Harrington Companies. Most of the unauthorized workers were Mexican citizens and nationals. Some of the undocumented workers Jamie Harrington hired and employed entered the United States lawfully and overstayed their visas, others never had lawful status to be present in the United States. Analysis of payroll and other records shows that approximately 89 undocumented workers were employed by the Harrington Companies between 2013 and 2018. Harrington continued to employ several of the workers even after he knew they had been placed into removal proceedings by immigration officials because they did not have lawful status to be present or working in the United States.
United States Attorney Erek L. Barron commended HSI, DSS, and DOL-OIG for their work in the investigation and thanked the Baltimore District Office of the U.S. Department of Labor’s Wage and Hour Division for its assistance. Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
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Brooklyn Man Sentenced to 30 Months in Prison for Possession of MachinegunRead the Press Release
NEWARK, N.J. – A Brooklyn man who is a previously convicted felon was sentenced today to 30 months in prison for possessing a machinegun, Acting U.S. Attorney Rachael A. Honig announced.
Christian Cordero-Gotay, 29, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count of possession of a machinegun, one count of possession of ammunition by a convicted felon, and one count of possession of a machinegun not registered to him in the National Firearms Registration and Transfer Record.
According to documents filed in this case and statements made in court:
On Aug. 31, 2020, officers of the Clinton Township Police Department conducted a motor vehicle stop of a vehicle occupied by Cordero-Gotay and Genesis Bertefabian, 28. The officers detected an odor of burnt marijuana emanating from the vehicle. Pursuant to a search of the vehicle, an officer observed a loaded Glock magazine under the driver’s seat. The officers attempted to place Cordero-Gotay and Bertefabian under arrest, but Cordero-Gotay resisted arrest and Bertefabian got in the vehicle and drove away.
A few minutes later, Bertefabian crashed into the side of a building. Bertefabian then exited the vehicle and walked into a wooded area behind the building. Law enforcement officers conducted a search of the wooded area where Bertefabian was seen, where they found a 9 mm Glock-type semiautomatic firearm. Law enforcement officials determined that the firearm was fitted with a Glock conversion device commonly referred to as “Glock Switch,” which has the effect of converting a semiautomatic Glock pistol into a machinegun. After obtaining a search warrant for the vehicle, law enforcement recovered two high-capacity magazines loaded with 9mm ammunition.
In addition to the prison term, Judge Wigenton sentenced Cordero-Gotay to three years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Clinton Township Police Department, under the direction of Lieutenant Thomas DeRosa, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Bertefabian was charged by criminal complaint with illegal possession of a machine gun and possession of an unregistered firearm. The charges against Bertefabian remain pending, and he is presumed innocent unless and until proven guilty.
Boulder man admits firearms crimes stemming from gun sales at Helena pawn shopRead the Press Release
GREAT FALLS – A Boulder man admitted to firearms crimes today after being accused of illegally possessing firearms and aiding a straw purchase at his wife’s Helena pawn shop, U.S. Attorney Leif M. Johnson said.
Isaiah Maurice Morsette, 38, pleaded guilty to prohibited person in possession of a firearm and to false statement during a firearms transaction. Morsette faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for March 30, 2022. Morsette was detained pending further proceedings.
In court documents filed in the case, the government alleged that earlier this year, the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted an undercover investigation of Modern Pawn & Consignment, located in Helena. Morsette is the husband of co-defendant Catherine Suzanne Morsette, who is the federal firearms licensee for Modern Pawn. Morsette served as the shop’s firearms and ammunition expert, and he answered all questions regarding the pricing and selling of the firearms. Morsette also is a five-time convicted felon. At the time he possessed firearms, he knew he had been convicted of felony sexual intercourse without consent in December 2011 in Montana. Catherine Morsette has pleaded guilty to crimes in the case and is pending sentencing.
In March, an undercover ATF special agent went to Modern Pawn, where Morsette told the special agent that he would have two Smith & Wesson 9mm pistols available for sale in four days. Morsette handed the special agent both pistols and discussed other firearms for sale or coming up for sale.
In April, two undercover ATF special agents went to Modern Pawn where special agent #2 eventually bought a Savage 6.5 Creedmoor rifle from Morsette for special agent #1. Morsette handed the rifle to special agent #1. When special agent #1 asked about not having a Montana address yet, Morsette told the special agent to purchase the firearm from him anyway. Morsette told special agent #1, “there’s all these crazy rules, but I don’t give a (profanity), I was to sell it, you know what I mean?” With Morsette present, special agent #1 called special agent #2 and asked him to come to the store. While waiting for the second special agent to arrive, Morsette handed special agent #1 a box of ammunition. Special agent #2 arrived at the store and with Morsette filled out an ATF form for the rifle’s purchase. When special agent #2 asked about a question on the form regarding the actual purchaser of the firearm, Morsette responded, “yeah, it’s your gun brother, as far as I’m concerned.” Morsette knowing executed the ATF form stating that special agent #2 was the actual purchaser of the Savage rifle, when in fact he knew that special agent #1 was the actual purchaser.
The ATF investigated the case.
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Baltimore Woman Pleads Guilty to Racketeering Conspiracy, Admits to Assisting Inmate to Have Contraband Smuggled into Maryland’s Federal Pretrial Detention FacilityRead the Press Release
Baltimore, Maryland – Lynette Carlest, age 49, of Baltimore, Maryland, pleaded guilty yesterday to participating in a racketeering conspiracy, including drug distribution and bribery, by assisting a detainee at Chesapeake Detention Facility (CDF) in Baltimore, Maryland to have contraband smuggled into the facility.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation (FBI), Baltimore Field Office; and Secretary Robert Green of the Maryland Department of Public Safety and Correctional Services (DPSCS).
According to her guilty plea, between 2018 and March 11, 2019, Carlest conspired with others to assist a detainee to smuggle narcotics, cell phones, and other contraband into CDF. Specifically, Carlest used a mobile monetary transfer application to manage the financial aspects of the detainee’s smuggling operation. For example, Carlest used the application to send at least four bribe payments of $800 or more to Darren Parker, a correctional officer at CDF, in exchange for Parker’s assistance in smuggling contraband into the jail.
As detailed in the plea agreement, Carlest met with Parker and provided him with contraband on multiple occasions. For example, on March 10, 2019, Carlest met with Parker to give Parker a cell phone, charger, suboxone, and tobacco to be smuggled into CDF and given to the detainee. On March 11, 2019, Parker brought the contraband to work and was approached by law enforcement officers in the CDF parking lot. Later that day, Carlest received a call from the detainee, using a contraband cell phone inside CDF, informing her that Parker had been caught attempting to smuggle contraband into the jail.
Carlest faces a maximum sentence of 20 years in prison followed by three years of supervised release for racketeering conspiracy. U.S. District Judge George L. Russell has scheduled sentencing for February 9, 2022 at 11 a.m.
Correctional officers Darren Parker, age 45, of Baltimore, Maryland and Talaia Youngblood, age 35, of Randallstown, Maryland, pleaded guilty to their roles in a racketeering conspiracy at CDF on October 18, 2021 and October 13, 2021, respectively. They admitted that they accepted bribes to smuggle contraband, including narcotics, tobacco, and cell phones, into the jail. Another co-defendant, Jasmine Coleman, age 29, of Baltimore, pleaded guilty on October 25, 2021, to arranging bribes and providing contraband to be smuggled into CDF on behalf of another detainee.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the CDF investigation and have been full partners in this investigation.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Harry M. Gruber, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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