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13 January 2022
Three Gang Members and One Gang Associate Charged with Federal Racketeering Offense in Robbery and Fatal Shooting of LAPD OfficerRead the Press Release
LOS ANGELES – Federal prosecutors this evening filed a criminal complaint charging three members and an associate of a Los Angeles street gang with violating a federal racketeering statute for their roles in the robbery and fatal shooting earlier this week of Los Angeles Police Officer Fernando Arroyos.
The criminal complaint alleges that two of the defendants confronted Arroyos and his girlfriend on the night of January 10, stole items from them, and then shot Arroyos, who died soon after suffering a single gunshot wound.
The complaint charges the four defendants with violent crime in aid of racketeering (VICAR), whereby the defendants, as consideration for the receipt of anything of value of the Florencia 13 (F13) gang, and to increase and maintain position within F13, murdered Arroyos. F13 is a large, multi-generational street gang that previously has been the subject of federal prosecutions, including two large racketeering cases.
The defendants in this case were taken into custody on Wednesday by investigators with the Los Angeles County Sheriff’s Department. Those defendants are expected to be transferred to federal custody Friday morning and to make their initial court appearances Friday afternoon in United States District Court.
The defendants charged today are:
- Luis Alfredo De La Rosa Rios, 29, an F13 member also known as “Lil J”;
- Ernesto Cisneros, 22, an F13 member also known as “Gonzo”;
- Jesse Contreras, 34, an F13 member who claimed a moniker of “Skinny Jack,” but who also may be known as “Flaco”; and
- Haylee Marie Grisham, 18, who is Rios’ girlfriend.
The VICAR charge carries a potential death penalty – and minimum sentence of life in federal prison without the possibility of parole – because Officer Arroyos allegedly was murdered during the robbery.
According to the affidavit in support of the criminal complaint, Arroyos – who is identified in the affidavit as “F.A.” – and his girlfriend were looking at a home potentially to purchase on East 87th Street in Los Angeles when a black pickup truck arrived. Rios and Cisneros confronted the victims, pointing guns and removing property from both, including chains from Arroyos’ neck.
“At some point after Cisneros removed victim F.A.’s chains, victim F.A. and the two suspects exchanged gunfire,” the affidavit states. “Victim F.A. ran toward an alley where he collapsed and the two suspects fled.”
Investigators have obtained surveillance video showing the black pickup arriving at a residence near the shooting, where Contreras is seen exiting the vehicle and helping an apparently injured Cisneros out of the truck, the affidavit states. All four defendants were in the vehicle and allegedly were at the scene of the robbery and shooting.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The Los Angeles County Sheriff’s Department, with assistance from the FBI, is conducting the investigation in this matter.
Assistant United States Attorneys Joanna Curtis, Chief of the Violent and Organized Crime Section; Kathy Yu of the Violent and Organized Crime Section; and Christopher Kendall of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Texas Man Sentenced to More Than Five Years in Prison for Fraud and Identity Theft Involving Stolen U.S. MailRead the Press Release
MOBILE, AL – A Fort Worth, Texas man was sentenced to 68 months in prison for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents filed in connection with his guilty plea, Sanwon Demetrius Baldwin, 41, conspired with his co-defendant, Brittany Jannice Chapman, 27, to commit bank fraud and identity theft. The defendants carried out their fraudulent scheme by stealing mail from U.S. Postal Service collection boxes, altering stolen checks and money orders without authorization from their lawful owners, and making unlawful bank deposits and cash withdrawals.
In June 2017, police in Bedford, Texas arrested the defendants in possession of more than 100 stolen checks and money orders, a .45-caliber pistol, and marijuana. Police searched the trunk of Baldwin’s rental car and found a venetian blind blade covered in rat trap glue, which criminals commonly use to “fish” mail out of postal collection boxes. Police also found chemicals typically used to alter information on checks, money orders, and other stolen mail. Agents later searched Baldwin’s house in Mobile, Alabama and recovered more than 600 additional checks and money orders that the defendants had stolen from the mail. Forensic analysis revealed the defendants’ fingerprints on several stolen checks and money orders. The total amount of the stolen financial instruments was more than $278,000.
Senior United States District Judge Callie V.S. Granade ordered Baldwin to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment and will be subject to credit restrictions. The court did not impose a fine, but Judge Granade ordered Baldwin to pay $9,209.10 in victim restitution and $200 in special assessments.
The court sentenced Chapman to five years’ probation in December 2021, ordering that Chapman serve the first 12 months on home confinement. Chapman is also responsible for victim restitution.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The U.S. Postal Inspection Service, the Mobile Police Department, and the Bedford, Texas Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Suburban Chicago Nurse Charged with Tampering with Morphine Prescribed to PatientsRead the Press Release
CHICAGO — A suburban Chicago nurse removed morphine from bottles prescribed to two patients and replaced it with another liquid, knowing the diluted substance would be dispensed to the patients, according to a federal indictment returned in U.S. District Court in Chicago.
SARAH DIAMOND was employed as the Assistant Director of Nursing at a Chicago-area medical rehabilitation center. The indictment alleges that Diamond tampered with the liquid morphine in August 2021 with reckless disregard and extreme indifference for the risk that the patients would be placed in danger of bodily injury.
Diamond, 29, of Woodstock, Ill., is charged with two counts of tampering with a consumer product. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. Valuable assistance was provided by the Crystal Lake, Ill., Police Department. The government is represented by Assistant U.S. Attorney Kelly Greening.
“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not a diluted substance,” said U.S. Attorney Lausch. “Health care practitioners who illicitly tamper with prescription drugs will be prosecuted to the fullest extent of the law.”
“Patients should know they are receiving proper treatment from those entrusted with their medical care,” said FDA SAC Burdelik. “We must hold medical personnel accountable when they take advantage of their unique position and tamper with medications their patients need, potentially exposing them to contaminated medical products.”
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 in the indictment carries a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Springvale Man Sentenced to 12 Years for Fentanyl TraffickingRead the Press Release
PORTLAND, Maine: A Springvale man was sentenced in federal court today for fentanyl trafficking, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge D. Brock Hornby sentenced Richard Martin, 41, to 12 years in prison and four years of supervised release. Martin pleaded guilty in July 2021.
According to court records, in May 2020, Martin was engaged in fentanyl trafficking. On May 25, he was robbed of a substantial quantity of fentanyl that he intended to distribute to others. Following the robbery, Martin sent numerous Facebook messages acknowledging the robbery and threatening violence to the suspected perpetrators. Law enforcement recovered a portion of the stolen fentanyl on May 31, 2020.
The FBI and the Rumford and Buxton police departments investigated the case with assistance from the York and Cumberland County Sheriff’s Offices, the Maine State Police, and the Maine Drug Enforcement Agency.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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South Florida Residents Sentenced for Illegally Exporting Controlled Items to LibyaRead the Press Release
Miami, Florida — A federal district judge has sentenced two Florida residents for conspiring to and illegally attempting to export controlled items to Libya.
Peter Sotis, 57, of Delray Beach and Emilie Voissem, 45, of Sunrise were convicted in October 2021, following a one-week jury trial in Miami. Sotis was sentenced to 57 months in prison and Voissem was sentenced to a split sentence of five months in prison and five months of home confinement.
The defendants were involved in a scheme that caused the illegal export of rebreather diving equipment to Libya in August 2016. Rebreathers enable a diver to operate undetected for long periods of time underwater by producing little to no bubbles and by efficiently re-circulating the diver’s own breath after replacing its carbon dioxide with oxygen. Because of these enhanced capabilities, rebreathers have a dual use, with both civilian and military applications, and are specifically included on the Commerce Control List, which is the list of dual use items that are export controlled and licensed by the U.S. Department of Commerce. Such restricted items require a Commerce Department license if the rebreathers are to be exported to any countries with national security concerns, such as Libya.
Sotis was the 80% owner of Add Helium, a diving equipment and training company in Fort Lauderdale, Florida, and Voissem was the Add Helium office manager. The defendants were warned that it was illegal to export the items to Libya without a Commerce Department license and they willfully attempted to export those items after receiving an instruction from a Department of Commerce special agent that such items were detained and not to be exported while a license determination was pending. The exhibits and testimony at trial showed that the defendants lied to and mislead Ramas LLC, a shipping company in Virginia, about what the Commerce agent had told them and about whether the rebreathers had a military use. Testimony at trial also showed that Sotis threatened a government witness not to cooperate with the federal investigation.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Matthew G. Olsen, Assistant Attorney General for National Security; Ariel Joshua Leinwand, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI) Miami Field Office, made the announcement.
DOC-Miami and HSI-Miami investigated the case, with valuable assistance from FBI Miami and U.S. Customs and Border Protection. This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Andy Camacho of the Southern District of Florida and Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20693.
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South Florida Residents Sentenced for Illegally Exporting Controlled Items to LibyaRead the Press Release
Two Florida residents were sentenced yesterday for conspiring to and illegally attempting to export controlled items to Libya.
Peter Sotis, 57, of Delray Beach, and Emilie Voissem of Sunrise, were convicted in October 2021 following a one-week jury trial in Miami. Sotis was sentenced to 57 months in prison, and Voissem was sentenced to a split sentence of five months in prison and five months of home confinement.
According to court documents, the charges stem from the defendants’ scheme to cause the illegal export of rebreather diving equipment to Libya in August 2016. Rebreathers enable a diver to operate undetected for long periods of time underwater by producing little to no bubbles and by efficiently re-circulating the diver’s own breath after replacing its carbon dioxide with oxygen. Because of these enhanced capabilities, rebreathers have a dual use, with both civilian and military applications, and are specifically included on the Commerce Control List, which is the list of dual use items that are export controlled and licensed by the U.S. Department of Commerce (DOC). Such restricted items require a Commerce Department license if the rebreathers are to be exported to any countries with national security concerns, such as Libya.
Sotis was the 80% owner of Add Helium, a diving equipment and training company in Fort Lauderdale, Florida, and Voissem was the Add Helium office manager. The defendants were warned that it was illegal to export the items to Libya without a DOC license and they willfully attempted to export those items after receiving an instruction from a DOC special agent that such items were detained and not to be exported while a license determination was pending. The exhibits and testimony at trial showed that the defendants lied to and misled Ramas LLC, a shipping company in Virginia, about what the DOC agent had told them and about whether the rebreathers had a military use. Testimony at trial also showed that Sotis threatened a government witness not to cooperate with the federal investigation.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Special Agent in Charge Ariel Joshua Leinwand of the DOC’s Office of Export Enforcement Miami Office; and Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Miami Office made the announcement.
DOC and HSI investigated the case with valuable assistance provided by the FBI’s Miami Field Office and the U.S. Customs and Border Protection.
This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Andy Camacho of the Southern District of Florida, and Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section.
Shreveport Man Headed to Federal Prison for Illegal Possession of Drugs and a FirearmRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Antonio Lamont Ware, 44, of Shreveport, Louisiana, has been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 170 months (14 years, 2 months) in prison, followed by 5 years of supervised release, on drug trafficking and firearms charges.
Ware was indicted by a federal grand jury in January 2021 and pleaded guilty to charges of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. According to information presented in court, on November 6, 2020, agents with the U.S. Drug Enforcement Administration (DEA) conducted a surveillance operation on Ware at his residence in Shreveport. Agents observed Ware get in his vehicle and drive down I-49. Deputies with the Caddo Parish Sheriff’s Office attempted to stop Ware for a traffic violation, and he refused to stop. While deputies were following him, they observed Ware throw a handgun out of the passenger window. The handgun struck the hood of the deputy’s vehicle and landed on the shoulder of the roadway. Ware finally pulled over and was interviewed by law enforcement agents. He admitted to possessing illegal narcotics and agents located 1,037.8 grams of methamphetamine, 176.7 grams of cocaine, and approximately 600 ecstasy pills. Agents also found three handguns in the same location where the drugs were located.
Ware has prior felony convictions, including a state conviction for accessory after the fact of simple burglary in 2000, and a federal conviction for conspiracy to distribute cocaine in 2006.
The case was investigated by DEA and the ATF and was prosecuted by Assistant U.S. Attorney J. Aaron Crawford. This is part of an Organized Crime Drug Enforcement Task Force (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.
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Rock Island Man Sentenced to Six Years in Prison for Robbery of a Credit Union Followed by High-Speed Chase in Illinois and IowaRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Illinois, man, Roman Thomas Lloyd, 34, of the 400 block of 19th Avenue, was sentenced on January 11, 2021, to a total of 72 months’ imprisonment, to be followed by three years of supervised release, for credit union robbery and interstate transportation of stolen money.
At the sentencing hearing, the government presented evidence that Lloyd had fled from the police following the robbery, driving at speeds approaching 100 mph on both highways and residential streets. The government further highlighted that the chase had gone through four school zones and that law enforcement attempted to use “stop sticks” on five occasions before they were ultimately successful on their sixth attempt. The government noted that even after the stop sticks deflated Lloyd’s tires, law enforcement still had to use a “PIT maneuver” to force Lloyd’s car into a ditch before he was apprehended.
Based on this evidence, Chief U.S. District Judge Sara Darrow found that an upward variance from the sentencing guidelines was appropriate because Lloyd had shown reckless disregard for the health and safety of others during the more than 20-minute high-speed chase. Judge Darrow noted that the fact there were no injuries or accidents during the chase was miraculous.
"The defendant's apprehension is a prime example of the effectiveness of law enforcement agencies from multiple jurisdictions working together," said Assistant U.S. Attorney Douglas F. McMeyer. "We are thankful for the skill, dedication, and professionalism they demonstrated in the face of his dangerous flight."
“Mr. Lloyd’s actions are an example of bold disregard for the law, public safety, and the safety of law enforcement officers who put themselves in harm’s way to protect the public while apprehending a dangerous criminal,” said David Nanz, the Special Agent in Charge of the Federal Bureau of Investigation’s Springfield Office. “This sentence is the result of teamwork among our partners to hold Lloyd accountable and prevent future violence.”
Lloyd received concurrent sentences of 72 months’ imprisonment, to be followed by three years of supervised release, on the credit union robbery count and the interstate transportation of stolen money count. Judge Darrow further ordered that his sentence run consecutively to any sentence that is imposed in Henry County, Illinois, Case No. 2018CF216, in which he is charged with burglary of a pharmacy, theft, and aggravated fleeing or eluding a peace officer, and Clinton County, Iowa, Case No. FECR077034, in which he is charged with second-degree burglary; second-degree theft; and possession of a controlled substance, first offense.
The statutory penalties for credit union robbery are up to 20 years’ imprisonment, a $250,000 fine, and up to three years of supervised release. The statutory penalties for interstate transportation of stolen money are up to 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release.
Lloyd was indicted in July 2021 and pleaded guilty September 2021.
The Federal Bureau of Investigation, and the Moline Police Department investigated the case and were assisted by law enforcement officers from Rock Island and Davenport, Iowa. Assistant U.S. Attorney McMeyer represented the government in the prosecution.
Richmond Man Sentenced to 10 Years for Sex Trafficking A Minor and Possessing Child PornographyRead the Press Release
SAN FRANCISCO – Kealeon Shakur Dyer-Hogan was sentenced today in federal court to 120 months following his convictions for sex trafficking of a minor and for possession of child pornography, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by United States District Judge Maxine M. Chesney.
On July 13, 2021, a federal jury convicted Dyer-Hogan, 23, of Richmond, California, for the possession of child pornography. Trial evidence revealed that Dyer-Hogan befriended a 16 year old high school sophomore and began to pick her up after her school day in his SUV. One day the 16 year old girl entered Dyer-Hogan’s vehicle after school and saw a minor boy who she did not know sitting in the back. Dyer-Hogan instructed her to get in the back, and once in the back, the boy pulled down his pants. Dyer-Hogan filmed the incident on his cell phone, ignoring the 16 year old girl’s request to stop recording. Later that day Dyer-Hogan asked the 16 year old girl to work for him as a prostitute, which she rejected. The 16 year old eventually found one of the videos, which Dyer-Hogan had assured her were deleted, posted on social media. After Dyer-Hogan’s arrest, police found on his phone five of his video clips depicting sexual activity involving minors.
The jury convicted Dyer-Hogan of possessing child pornography. After his conviction, he was allowed to remain out of custody while awaiting further court proceedings.
On July 22, 2021 – nine days after the jury convicted Dyer-Hogan and while he was awaiting further court proceedings – Dyer-Hogan was arrested again. This time police found a 15 year old girl in his car. The government charged Dyer-Hogan with sex trafficking of the 15 year old minor, and he pleaded guilty to the charge on October 20, 2021. Among other admissions in his plea agreement, Dyer-Hogan admitted that for the three weeks prior to his July 22nd arrest – a time when he was in court during the day on trial for the above child pornography charges – he transported the 15 year old girl to and from an Oakland location where prostitution is commonplace.
In a memorandum filed for sentencing, the government described that the investigation of Dyer-Hogan revealed he had three females working for him as commercial sex workers. At least two of the females were minors. Dyer-Hogan was a controlling, violent, and manipulative pimp, according to the sentencing memo.
In addition to imposing a 120 month prison term, United States District Judge Maxine M. Chesney sentenced Dyer-Hogan to a five year term of supervision upon his release from prison, ordered him to pay $5,000 in restitution, and ordered Dyer-Hogan to stay away from and have no contact with the victims of his crimes.
Assistant U.S. Attorneys Leif Dautch and Mari Overbeck prosecuted the cases with the assistance of Mark DiCenzo. The prosecution is the result of investigations by the Federal Bureau of Investigation, the Richmond Police Department, and the Oakland Police Department.
This federal case was brought in U.S. District Court as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Randolph County woman sentenced for meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Janice May White, of Kerens, West Virginia, was sentenced today to 41 months of incarceration for selling methamphetamine, United States Attorney William Ihlenfeld announced.
White, age 40, pleaded guilty in January 2020 to one count of “Distribution of Methamphetamine – Aiding and Abetting.” White admitted to selling methamphetamine in April 2019 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Queens Man Charged with Transporting 13-Year-Old Child to Engage in SexRead the Press Release
A six-count indictment was unsealed today in federal court in Brooklyn charging Manuel Moretti with Mann Act crimes stemming from the coercion of a 13-year-old child to engage in sexual activity with him on at least four occasions. Moretti was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, for several months last year, Moretti used different social media platforms to lure a 13-year-old child across state lines for the purpose of repeatedly engaging in sexual activity. These allegations serve as a reminder of the dangers to our children from online predators and the importance of being aware of whom our children are communicating with online,” stated United States Attorney Peace. “This Office is deeply committed to protecting vulnerable victims from sexual exploitation and will vigorously prosecute offenders like Moretti, who allegedly prey on children.”
“Cyber space may not seem real to some children, or even parents, but it poses a real danger as we allege in this investigation,” stated FBI Assistant Director-in-Charge Driscoll. “Unfortunately, we can’t stop these crimes from happening because the internet allows sexual predators direct access to victims. We’re asking parents to start a conversation with their children about being safe online. The FBI New York Crimes Against Children and Human Trafficking Task Force believes Mr. Moretti may have victimized others and we’re asking anyone with information to call us at 1-800-CALL-FBI.”
As set forth in the indictment and court filings, Moretti met a 13-year-old child on a social networking site in January of last year. He then arranged for the child to travel across state lines to Moretti’s residence in Queens on several occasions over a four-month period between January and April 2021 for the purpose of engaging in sexual activity. Moretti also provided the child a fraudulent identification document to facilitate future sexual encounters with the child. In December 2021, after Moretti was interviewed by the FBI, he contacted the child, this time via Snapchat, a different social networking site, for the purpose of engaging in sexual activity.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of all counts, Moretti faces a mandatory minimum sentence of 10 years’ imprisonment.
Assistant United States Attorney Margaret Schierberl is in charge of the prosecution.
The Defendant:
MANUEL MORETTI
Age: 39
Forest Hills, New YorkE.D.N.Y. Docket No. 22-CR-17 (SJ)
Putnam Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that NICHOLAS SCHNEIDER, 32, of Putnam, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarah A. L. Merriam in New Haven to unlawful possession of ammunition by a felon.
According to court documents and statements made in court, on June 5, 2020, ATF agents searched a residence in Canterbury where Schneider was living. In Schneider’s bedroom, investigators located numerous rounds of ammunition, various firearm parts, a firearm kit, and firearm magazines.
Schneider’s criminal history includes state convictions for felony narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Schneider was arrested on a federal criminal complaint on December 14, 2020.
Judge Merriam scheduled sentencing for April 6, 2022, at which time Schneider faces a maximum term of imprisonment of 10 years. Schneider is released on bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Connecticut State Police, with the assistance of the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Providence Man Admits to Fraudulently Seeking Federally Funded COVID Unemployment BenefitsRead the Press Release
PROVIDENCE, R.I. – A Providence man today admitted in federal court that he submitted fraudulent online applications seeking pandemic related unemployment benefits from eight states while collecting benefits from the Rhode Island Department of Labor and Training, announced United States Attorney Zachary A. Cunha.
Vallah Brown 30, pleaded guilty to wire fraud, admitting that he filed fraudulent online applications seeking Families First Coronavirus Response Act (FFCRA) and Coronavirus Aid, Relief, and Economic Security (CARES) Act funded unemployment benefits from Massachusetts, Arizona, Nevada, Colorado, California, Texas, New York, and Louisiana. Brown claimed on each state’s benefit application that he was a resident of that state, was unemployed, and was entitled to benefits in that state.
An investigation determined that Brown fraudulently collected $48,902 dollars in FFCRA and CARES Act funding from those eight states.
Brown is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on April 22, 2022.
Wire fraud is punishable by statutory penalties of up to 20 years in federal prison and three years federal supervised release.
These matters and other cases of alleged criminal activity related to fraudulent applications for unemployment insurance benefits due to the pandemic are being investigated jointly by the FBI and Rhode Island State Police, and U.S. Department of Labor, with the assistance of other federal agencies. Cases are jointly reviewed, charged and prosecuted by a team including Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Pharmacy Manager Indicted for Tampering with a Consumer Product and Obtaining Opiates by FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brian Thomas Badgley, 37, of Waterbury, Vermont appeared yesterday in United States District Court in Burlington for an arraignment on a two-count indictment charging him with tampering with a consumer product, in violation of 18 U.S.C. § 1365(a), and obtaining controlled substances by fraud in violation of 21 U.S.C. § 843(a)(3). Badgley entered a plea of not guilty and was released on conditions.
According to the indictment, Badgley is alleged to have tampered with a bottle of Hydromorphone oral solution by removing a quantity for his own use, and then diluting the remaining contents of the bottle with liquid Benadryl and distilled water. Badgley is alleged to have reattached the tamper seal on the bottle with clear tape and returned the diluted Hydromorphone oral solution to the inventory of the pharmacy, from which it could have been administered to pharmacy patients. Badgley is also alleged to have obtained Hydromorphone tablets and Hydromorphone solution through misrepresentations and fraud, specifically by entering false entries into the pharmacy ordering system, entering false pill counts into the inventory system, and diluting the oral solution. At the time of the alleged criminal conduct, Badgley was the pharmacy manager of the CVS located in Berlin, Vermont.
According to public records of the State of Vermont’s Board of Pharmacy, in 2016, Badgley had strict conditions placed on his pharmacist license after he was suspected of having diverted narcotics while employed as a pharmacy manager at Northwestern Medical Center. During those proceedings, Badgley admitted to stealing Hydromorphone from the hospital after his employment had been terminated. In 2020, the Board of Pharmacy removed the conditions from Badgley’s pharmacist license. On September 24, 2021, after the conduct alleged in the indictment came to its attention, the Board of Pharmacy summarily suspended Badgley’s pharmacist license.
The charges against Badgley are merely accusations and the defendant is presumed innocent unless and until he is proven guilty. Badgley faces a maximum sentence of 10 years for the tampering charge, and a maximum sentence of 4 years for obtaining controlled substances by fraud.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the U.S. Food & Drug Administration’s Office of Criminal Investigations, the Drug Enforcement Administration, the Vermont Secretary of State’s Office of Professional Regulation, and the Berlin Police Department.
Badgley is represented by Robert Backus, Esq. Assistant U.S. Attorney Jonathan A. Ophardt represents the United States.
Pee Dee Man, Woman Sentenced to Federal Prison on Drug ChargesRead the Press Release
FLORENCE, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that co-defendants Michael Anthony Dudley, 43, of Hartsville, and Lindsey Munn Butler, 36, of Lamar, were sentenced to federal prison after pleading guilty to drug-related charges. Dudley pleaded guilty to possession with intent to distribute and distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime. Butler pleaded guilty to possession with intent to distribute and distribution of heroin.
Evidence presented to the court showed that on July 28, 2020, the Darlington County Drug Enforcement Unit used a confidential informant to make a controlled purchase of heroin from Dudley at a location in Hartsville. On August 7, 2020, the Darlington County Sheriff’s Office executed a search warrant during which law enforcement located a firearm, a baggie containing 3.947 grams of heroin, and ten baggies, three of which were confirmed to contain heroin. The firearm and narcotics were found in Dudley’s bedroom.
Additional evidence presented to the court showed that on August 6, 2020, the Darlington County Drug Enforcement Unit used a confidential informant to make a controlled purchase of heroin from Butler also at a location in Hartsville.
United States District Judge Sherri A. Lydon sentenced Dudley to 81 months in federal prison, to be followed by a five-year term of court-ordered supervision, and sentenced Butler to 10 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), the Darlington County Sheriff’s Office, and the Darlington County Drug Enforcement Unit.
This case was prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Parker Man Sentenced to 51 Months for RobberyRead the Press Release
PHOENIX, Ariz. – Yesterday, Justin Ray Mike, 30, of Parker, Arizona, was sentenced by U.S. District Judge Dominic W. Lanza to 51 months in prison, followed by three years of supervised release. Mike previously pleaded guilty to robbery.
On May 28, 2020, Mike broke into the residence of one of the victims, threatened her with a knife while demanding money, and punched her in the face, causing her to sustain bodily injury. Mike also demanded money from the other victim who was present at the residence. This robbery occurred on the Colorado River Indian Tribes (“CRIT”) Indian Reservation. Mike and both of the victims are members of the CRIT Tribe.
The Federal Bureau of Investigation and the CRIT PD conducted the investigation in this case. Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-2020-00782-PHX-DWL
RELEASE NUMBER: 2022- 003_Mike# # #
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.Palladio Mall Rolex Robber Sentenced to 15 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — London Webb, 34, of Oakland, was sentenced today by U.S. District Judge Troy L. Nunley to 15 years in prison and ordered to pay $691,973 in restitution for his participation in a conspiracy to commit armed robberies of jewelry stores for the specific purpose of stealing Rolex watches, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Webb’s participation in the robbery crew was first identified after an Oct. 14, 2014, robbery of Grebitus Jewelers in the Palladio Mall in Folsom. Webb and another man entered the jewelry store dressed in black and with their faces masked. Webb walked to a glass display case and smashed it using a sledgehammer. The other man pointed a gun at employees and ordered them to lie face down on the floor. In the process of removing Rolex watches from the smashed display case, Webb cut himself and left blood on the display case. Webb and the other man ran out of the jewelry store with $310,800 worth of watches. Law enforcement officers later found their abandoned getaway car. Webb’s blood was also found in the getaway car.
On Oct. 14, 2021, Webb pleaded guilty to conspiracy to interfere with interstate commerce by robbery. He also admitted to participating in similar smash and grab robberies of Kirk’s Jewelry in Chico (Nov. 21, 2014); Robert C. Wesley Jewelers in Scottsdale, Arizona (Jan. 16, 2015); and Churchill Jewelers in Santa Barbara (Jan. 30, 2015).
On Oct. 7, 2021, co-defendant Dion Johnson II, 33, of Sacramento, was sentenced to 10 years in prison after pleading guilty on April 14, 2021 to conspiracy to interfere with interstate commerce by robbery and bank robbery.
This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento County District Attorney’s Office, the California State Threat Assessment Center, the Folsom Police Department, the Chico Police Department, the Scottsdale Police Department, and the Santa Barbara Police Department. Assistant U.S. Attorney Justin Lee prosecuted the case.
Operation False Haven: Former U.S. Army Sergeant and Convicted Child Molester Sentenced for Naturalization Fraud, Judicially Denaturalized and Ordered Removed from the United StatesRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley announced that today in federal court, Edgar Daniel Cruz-Magallanes, age 31, a naturalized citizen of the United States, born in Mexico and residing in Wake County, and former U.S. Army Sergeant, was sentenced by United States District Judge Louise W. Flanagan to one year of probation following a guilty plea to naturalization fraud. Moreover, Cruz-Magallanes was judicially denaturalized as a United States citizen and ordered removed from the United States.
According to court records, on March 19, 2015, Cruz-Magallanes fraudulently obtained U.S. citizenship by making materially false statements under oath regarding his naturalization application. In response to the question “Were you ever involved in any way with any of the following: . . . Forcing, or trying to force, someone to have any kind of sexual contact or relations?” he answered “No.”
On June 10, 2020, in the Superior Court of North Carolina in Wake County, Cruz-Magallanes was convicted of three counts of indecent liberties with a child. Cruz-Magallanes was sentenced to a term of imprisonment of between 16 and 29 months and ordered to register as a sex offender. According to the indictment to which he pled guilty, Cruz-Magallanes committed the offenses between December 20, 2010 and December 18, 2012. The victim was 8 years old. Cruz-Magallanes was not arrested until after he naturalized, thus immigration officials were unaware of his crime before he was approved for naturalization.
“Cruz-Magallanes is another in a growing number of criminals that thought their heinous acts of the past would not catch up to them, and thankfully he was wrong,” said Special Agent In Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Cases like this not only protect the integrity of our immigration system, but it also allows us to remove known predators from our communities.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and HSI, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven (OFH), an ongoing initiative designed to aggressively identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship. Assistant U.S. Attorney Sebastian Kielmanovich prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00368-1FL(3). Previous media coverage on this case is located here: Click here.
Omaha Woman Sentenced to 10 Years’ Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Natasha Wolterman, 40, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Conspiracy to Possess with Intent to Distribute Methamphetamine. United States District Court Judge Brian C. Buescher sentenced Wolterman to 10 years’ imprisonment. There is no parole in the federal system. After completing her term of imprisonment, Wolterman will be required to serve a 5-year term of supervised release.
On June 5, 2019, Omaha Police detectives utilized a cooperating witness to collect drug proceeds from several methamphetamine suppliers inside of an Omaha hotel. Officers placed a video and audio recording device in the cooperator’s hotel room that captured the delivery of drug proceeds by Wolterman, who delivered $1,600 to the cooperator while discussing her drug trafficking. The cooperator had previously supplied Wolterman with 2 pounds of methamphetamine.
Another cooperating witness was arrested on June 7, 2019 after he was found in possession of methamphetamine and a gun outside of an Omaha hotel. Prior to his arrest, the cooperator was seen riding in a car with Wolterman, who was released prior to an inventory search of the car. More than 5 grams of actual methamphetamine were found in a woman’s purse inside of the car. During an interview with the cooperator, he described Wolterman as dealing in pound quantities of methamphetamine.
This case was investigated by the Omaha Police Department.
Omaha Man Convicted of Attempted Enticement of a MinorRead the Press Release
United States Attorney Jan Sharp announced that Nathaniel S. Theisen, 36, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Attempted Enticement of a Minor. United States District Judge Brian C. Buescher sentenced Theisen to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 10-year term of supervised release. Judge Buescher ordered Theisen to pay a $2,500 fine and a $5,000 JVTA assessment. Theisen will also be required to register as a sex offender when he completes his sentence of imprisonment.
In late August 2020, Theisen responded to an online prostitution advertisement by texting the phone number listed in the ad. An undercover law enforcement officer purporting to be a 15-year-old female responded to Theisen’s texts. Theisen arranged to meet the 15-year-old female on February 2, 2021 at the girl’s apartment building in Omaha, offering to pay the female $200 for two hours of her time, during which the girl was expected to perform sexual acts with Theisen. Theisen was arrested when he arrived at the apartment building.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force and the Douglas County Sheriff’s Office.
Ohio County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Cordale Antonio Williams, of Wheeling, West Virginia, has admitted to a drug charge, First Assistant United States Attorney Randolph J. Bernard announced.
Williams, 41, pleaded guilty today to one count of “Distribution of Cocaine Base.” Williams admitted to selling cocaine base, also known as “crack,” in June 2020 in Ohio County.
Williams faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Nixa Woman Pleads Guilty to Meth Trafficking After High-Speed ChaseRead the Press Release
SPRINGFIELD, Mo. – A Nixa, Missouri, woman who led law enforcement officers on a high-speed chase at night with no headlights pleaded guilty in federal court today to trafficking methamphetamine.
Gina N. Nunez, 43, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of possessing methamphetamine with the intent to distribute.
By pleading guilty today, Nunez admitted that she was in possession of methamphetamine found in her vehicle after she led officers on a high-speed chase over two stop strips before crashing her vehicle and being arrested.
A sergeant with the Christian County, Mo., Sheriff’s Department attempted to stop Nunez, who was driving a gray Honda on U.S. Highway 65, a few minutes before midnight on June 27, 2021. She was driving approximately 17 to 32 miles per hour on the highway and crossing over the center line. Nunez waved at the officer as he followed her with his emergency lights and siren on for approximately three minutes. Nunez then accelerated to speeds in excess of 100 miles per hour northbound on U.S. Highway 65 to the Finley River bridge, where Ozark, Mo., police officers had positioned spike strips. Nunez continued travelling at speeds in excess of 100 miles per hour, without headlights, into Greene County.
The Greene County, Mo., Sheriff’s Department deployed a spike strip near U.S. Highway 65 and Chestnut Expressway. Nunez continued northbound on U.S. Highway 65 at speeds in excess of 100 miles per hour. At approximately 12:16 a.m., Nunez exited the highway onto Interstate 44 and crashed into the guardrail. Her vehicle was disabled, and she was arrested.
Law enforcement officers searched Nunez’s vehicle and found six plastic bags in the front passenger floorboard that contained a total of 126 grams of pure methamphetamine.
Under federal statutes, Nunez is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Nixa, Mo., Police Department, and the Ozark, Mo., Police Department.
New York Resident Sentenced to 24 Months’ Imprisonment for Aggravated Identity TheftRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Josue Peguero, age 22, Bronx, New York was sentenced on January 12, 2022, to 24 months’ imprisonment and ordered to pay $19,138.01 in restitution by U.S. District Court Judge Sylvia H. Rambo after pleading guilty to a charge of aggravated identity theft.
According to United States Attorney John C. Gurganus, on January 4, 2020, Steelton Borough Police observed Peguero and two other individuals tampering with a U.S. Mail blue collection box near an intersection in the Borough of Steelton, Pennsylvania. One individual used an item to “fish” into the mailbox’s opening, while Peguero stood nearby as a lookout, and a third individual drove a getaway vehicle. The police made a traffic stop and found the Peguero and the other two in possession of numerous debit cards in others’ names. They also possessed an ATM withdrawal receipt for one debit card and a $2,500 deposit receipt for a different debit card. The receipts matched debit cards in the defendants’ possession. These cards did not match any of the defendant’s names.
The United States Postal Inspection Service conducted a follow up investigation. It established that Peguero and the other two individuals had conducted multiple fraudulent debit card transactions in New York City just prior to traveling to the Harrisburg area to fish into mailboxes and obtain stolen checks. These transactions involved the use of stolen, altered checks and debit cards belonging to other people. The investigation further determined that the three had been involved in the stealing of checks and the depositing of these checks in a fraudulent manner for several months leading up to the time of their arrest. The other two individuals also pleaded guilty to aggravated identity theft; one has been sentenced and the other is pending sentencing.
Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case.
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Nevada, Mo., Business Owner Pleads Guilty to False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – A Nevada, Missouri, business owner who failed to pay taxes on nearly $1.5 million of income pleaded guilty in federal court today to filing a false tax return.
“When businesses and individuals don’t pay their fair share in taxes, they are breaking the law and cheating their law-abiding neighbors,” said U.S. Attorney Teresa Moore. “This business owner shirked his responsibilities as a citizen by willfully failing to pay taxes on nearly $1.5 million of income.”
Kevin R. Morrow, 53, waived his right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to a federal information that charges him with filing a false tax return.
“This time of year, hard-working Americans are preparing to submit their federal tax returns, and the majority of them will fully and honestly report their income,” said IRS-CI Special Agent in Charge Tyler Hatcher, St. Louis Field Office. “In fairness to them, IRS-Criminal Investigation will aggressively pursue those who attempt to avoid paying their fair share of taxes and hold them accountable.”
By pleading guilty today, Morrow admitted that he omitted a total of $1,467,326 in income from the federal income tax returns he filed from 2014 through 2016. During that time, Morrow operated Morrow Show Steers, a cattle sale business, but did not report any of this income and, therefore, did not pay any taxes on this income. According to today’s plea agreement, Morrow’s false tax returns led to federal tax due and owing in the amount of $92,928. The total tax loss to the Missouri Department of Revenue is $11,910. Under the terms of his plea agreement, Morrow must pay a total of $104,838 in restitution to the federal government and the state of Missouri.
The specific charge to which Morrow pleaded guilty today is filing a false tax return on April 15, 2017. Morrow falsely claimed he received income of only $13,617 in 2016, and willfully did not report that he received additional income of $444,462 from his cattle sale business.
Under federal statutes, Morrow is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Casey Clark and Shannon Kempf. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue – Compliance and Investigation Bureau.
NC Pharmacy Operator Pleads Guilty to Conspiracy to Fraudulently Bill Medicare, Medicaid and Private Insurance CompaniesRead the Press Release
WILMINGTON, N.C. – A Pembroke woman pleaded guilty today to Conspiracy to Commit Healthcare Fraud.
According to court documents, Melisha Oxendine West pleaded guilty to Conspiracy to Commit Healthcare fraud. The charge to which West pled guilty alleges that from 2006 through July of 2017, West was employed at Townsend’s Pharmacy, located at 111 S. Main Street in Red Springs, North Carolina. During that time, West conspired with the owner of the pharmacy and others to bill fraudulent claims to Medicare, Medicaid, and private health insurers, such as Blue Cross and Blue Shield of NC. According to the charge, West and others did this by fraudulently reauthorizing previously existing prescriptions from licensed medical providers, and billing health care benefit programs as though those drugs had been dispensed.
West pleaded guilty to a violation of Title 18, United States Code, Section 1349, and faces a statutory maximum of 10 years in prison and a fine amounting to as much as twice the gross gain or loss from the offense. The sentencing before United States District Judge Louise W. Flanagan will not occur earlier than 90 days from today.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert Jones accepted the plea. The United States Department of Health and Human Services Office of the Inspector General is investigating the case and Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-cr-00129-FL-1.
Munster Woman Ordered to Pay over $80,000 in Restitution to Chapter 13 Bankruptcy TrusteeRead the Press Release
HAMMOND—Mary Lois Cossey, age 55, of Munster, Indiana, was sentenced by United States District Court Judge Philip P. Simon today following her August 2021 plea of guilty to one count of wire fraud, announced United States Attorney Clifford D. Johnson.
Cossey was sentenced to a term of 2 years’ probation, and was ordered to pay $81,159.97 in restitution to the Chapter 13 Trustee appointed to administer her case for the benefit of her creditors.
According to documents in this case, Cossey engaged in a scheme to defraud the Chapter 13 bankruptcy trustee and her creditors in order to take advantage of the benefits of bankruptcy—including the imposition of a stay on collection and elimination of debts—without making the financial sacrifices required under Chapter 13 of the Bankruptcy Code. Cossey did not disclose on her bankruptcy petition a debt relationship with her personal friend and creditor, identified in the Indictment as Individual A. Even though she was prohibited from incurring new debts during her bankruptcy case, Cossey charged over $240,000 on Individual A’s credit card during the course of her bankruptcy for personal expenses including multiple vacations, luxury clothing and accessories, and jewelry. Cossey incurred other post-petition debts without the permission of the Chapter 13 bankruptcy trustee and failed to disclose changes in her employment and income during her case. Cossey repaid most of her debt to Individual A, while unsecured creditors received only 27% repayment for debts that were discharged in bankruptcy.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by Region 10 U.S. Trustee, Nancy J. Gargula. A trial attorney from the U.S. Trustee’s South Bend Office also provided assistance. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Thomas McGrath.
Mobile Man Sentenced to 57 Months in Firearms CaseRead the Press Release
MOBILE, AL – A Mobile man was sentenced today to 57 months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, Jydrick Leon Frazier, 30, was arrested by Mobile police on July 8, 2020, after he crashed a truck that had been reported stolen earlier that day in Ocean Springs, Mississippi. Police searched the stolen truck and found a loaded .380-caliber pistol underneath the seat and ammunition in the center console. Frazier admitted that he knowingly possessed the pistol and the ammunition. At the time of the offense, Frazier knew that he had been convicted of multiple felony crimes, including robbery, theft, breaking and entering a vehicle, and possession of forged instruments. Under federal law, Frazier is prohibited from possessing firearms or ammunition as a result of his felony convictions.
Senior United States District Judge Callie V.S. Granade ordered Frazier to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Granade ordered Frazier to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Missoula nurse admits diverting drugsRead the Press Release
MISSOULA — A Community Medical Center nurse accused of diverting drugs meant for patients for her own use admitted to charges today, U.S. Attorney Leif M. Johnson said.
Mary Schmidt Monahan, 61, of Missoula, pleaded guilty to unlawfully obtaining controlled substances as charged in an indictment. Monahan faces a maximum of four years in prison, a $250,000 fine and one year of supervised release.
U.S. District Judge Dana L. Christensen presided. Sentencing was set for April 26. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Monahan was released pending further proceedings.
The government alleged in court documents that from January 2020 until about February 2021, Monahan diverted fentanyl and hydromorphone while employed as a nurse in the Post-Anesthesia Care Unit at Community Medical Center in Missoula. In January 2021, another CMC employee observed Monahan engaging in what appeared to be the diversion of drugs. Monahan had two vials on her workstation when she placed something in her pocket, pulled up the sleeve of her jacket to her elbow and moved out of the employee’s field of vision. When Monahan emerged, she wiped her forearm with an alcohol pad and raised her arm in the air. Shortly thereafter, Monahan requested the employee serve as a witness to the disposal of drugs, including hydromorphone and fentanyl. A review of Monahan’s dispensing records noted that in December 2020, she had distributed amounts above the normal drug quantity for her unit. When questioned by supervisors, Monahan admitted she had been diverting drugs for about a year. Monahan admitted to Drug Enforcement Administration agents that she had obtained medications for patients but administered only a portion of the drugs and kept the remainder for herself.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the Drug Enforcement Administration with assistance from the Missoula Police Department.
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Michigan Man Arrested for Unemployment Fraud and Identity Theft Related to COVID-19 PandemicRead the Press Release
BOSTON – A Michigan man was arrested yesterday in Michigan in connection with his alleged involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance.
Devin Smith, 30, was charged with one count of wire fraud and one count of aggravated identity theft. Smith was released on conditions following an initial appearance in federal court in Michigan yesterday afternoon. He will appear in federal court in Boston at a later date.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act provided funding to existing state unemployment insurance programs and created a new temporary federal program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
According to the charging document, Smith participated in a scheme to obtain proceeds from fraudulent unemployment and PUA claims submitted in nine different states, including Massachusetts, between March and May 2020. Smith allegedly used stolen identities, including the identities of Massachusetts residents, to submit fraudulent unemployment and PUA claims and to purchase various commercial goods. Additionally, it is alleged that Smith filed multiple fraudulent unemployment and PUA claims in his own name in six different states, including in Massachusetts.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. Valuable assistance in the investigation was provided by the U.S. Postal Service and the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican trafficker convicted following two-ton marijuana seizureRead the Press Release
BROWNSVILLE, Texas – A 20-year-old Mexican citizen faces up to life in prison after pleading guilty to conspiring to transport over four thousand pounds of marijuana, announced U.S. Attorney Jennifer B. Lowery.
Jorge Monjaraz-Perez pleaded guilty today.
At the hearing, he admitted he conspired with a drug trafficking organization to move at least 1,886 kilograms of marijuana.
He also acknowledged running a marijuana stash house in Brownsville and that he participated in at least seven drug trafficking events. Law enforcement seized all the marijuana, each ranging between 91 kilograms and 528 kilograms.
U.S. District Judge Fernando Rodriguez Jr. will impose sentencing April 19. At that time, Monjaraz-Perez faces up to life in prison.
He has been and will remain on bond pending that hearing.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.
Mexican citizen sentenced to federal prison for using disabled veteran’s Social Security number for benefitsRead the Press Release
CINCINNATI – Fernando Arroyo-Alonso, 59, was sentenced in U.S. District Court today to one year and one day in prison for stealing the identity of a disabled United States veteran.
The defendant was arrested in Warren County in May 2021 for misusing a Social Security number.
According to court documents, in May 2019, Arroyo-Alonso submitted an online application for Title XVI Supplemental Security Income benefits using the identity of a disabled veteran who also receives Title XVI Supplemental Security Income and Veterans Affairs benefits.
The defendant used the victim’s identity, date of birth and Social Security number to obtain an Ohio driver’s license in the victim’s name. In actuality, the victim does not reside in Ohio.
Arroyo-Alonso also obtained a criminal record while using the victim’s identity.
After serving his sentence, Arroyo-Alonso will be deported to Mexico.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Andrew Boockmeier, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), announced the sentence imposed today by Senior U.S. District Judge Michael R. Barrett. The U.S. Marshals Service, U.S. Secret Service, Homeland Security Investigations (HSI), the Ohio BMV and the Hamilton Township Police assisted with this investigation. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Members of Retail Theft Organization Face Federal and State ChargesRead the Press Release
Members of a large-scale theft ring have been charged by Federal and State prosecutors for their roles in an organization whose operations crossed state lines and caused more than $10 million in losses to retailers, announced U.S. Attorney Clint Johnson and Oklahoma Attorney General John O’Connor.
This week, local, state, and federal law enforcement arrested 24 defendants in Tulsa and the surrounding areas, as part of Operation Booster Buster. Five defendants remain at large.
The U.S. Attorney’s Office and the Oklahoma Attorney General’s Office charged a total of 29 defendants with taking part in the largescale retail theft ring staged out of northeastern Oklahoma.
“Organized retail crime is costly to the economic well-being of our communities. This alleged retail theft ring is estimated to have caused retailers more than $10 million in losses,” said U.S. Attorney Clint Johnson. “A joint team of investigators have worked meticulously over the past several years to connect the evidence and bring this case forward for prosecution. I am thankful for their professionalism and persistence.”
“This investigation was complex, challenging, and lengthy,” Oklahoma Attorney General John O’Connor said. “These are serious crimes. Organized crime is on the rise nationwide, and my office is committed to holding criminals accountable for their actions. I want to thank the state, local, and federal law enforcement agents and prosecutors for their work and partnership in this case.”
Charges were announced at a press conference Thursday. U.S. Attorney Johnson and Oklahoma Attorney General O’Connor were joined by Tulsa Chief of Police Wendell Franklin, Special Agent in Charge Christopher Miller of Homeland Security Investigations, Special Agent in Charge Christopher Altemus Jr. of IRS-Criminal Investigation, and Tulsa County Sheriff Vic Regalado.
Stores targeted include Reasor’s, Sprouts, Walmart, Sam’s Club, Costco, Walgreens, CVS, GNC and others.
For example, on Sept. 4, 2019, defendants Amber Clayson, Latoya Duhart and others allegedly boosted $1,329 worth of over-the-counter products, such as Flonase, Mucinex, Nexium, Zegerid, and Allegra, from a Reasor’s in Jenks, Oklahoma.
According to the federal indictment and the state’s probable cause affidavit, defendant Linda Been led the ring of “boosters” that netted $4.5 million from the sale of stolen merchandise and over-the-counter products to fencing organizations outside of Oklahoma. “Fences” then sold the stolen products through e-commerce sites, like eBay and Amazon.
Normally, fences paid Been half the market value for each item. Been, in turn, paid boosters half of her expected profit for each item they brought to her. Financial payments for stolen products were normally made through PayPal, Venmo, and Cash App, and some payments were made with drugs.
Been provided her boosters with a detailed list of items to steal and the pricing she would pay for each. She further instructed her ring on boosting techniques, including box stuffing. Box stuffing occurs when criminals conceal higher-value items inside lower-value item boxes and only paying for the lower-valued items.
Been and her team of boosters allegedly stole products from retailers in Oklahoma, Kansas, Texas, Missouri, Arkansas, and Colorado. Been would pay boosters’ expenses when they traveled outside the state. She would further pay boosters’ bond when arrested so they could continue boosting.
Boosters would then deliver the goods to predetermined locations in Tulsa, Sand Springs, and Cleveland, Oklahoma. Defendants Billy Osborne, Juston Osborne, Corey Fields, and Amanda Johnson allegedly helped manage the operation by storing stolen inventory at their residences or businesses and by prepping the merchandise for bulk shipments to fences outside the state. Been also stored stolen merchandise at her residences, prepared inventories, coordinated payment, and shipped the pallets of stolen items.
“Consumers and businesses incur a high price for thieves who commit larcenies and profit by selling their stolen goods to well organized theft rings,” said Tulsa Police Chief Wendell Franklin. “Thieves should take notice. Tulsa is not going to capitulate and allow criminals to disrupt commerce in our city.”
“These federal indictments are a result of the tremendous work and collaboration accomplished by our trusted law enforcement partners, said Christopher Miller, acting Special Agent in Charge HSI Dallas. “It does not matter where these criminal networks operate and sell their illegally acquired goods. We will work without end to ensure those involved are investigated and brought to justice.”
The investigation into the retail theft ring began in 2019 when an organized crime investigator from a pharmacy retailer shared information with Tulsa Police Detectives about bulk thefts at their Tulsa area locations. Investigators linked several boosters in the Tulsa area to Been and her son, state defendant Curtis Leon Gann Jr. They also noted that Been and Gann Jr. were allegedly selling over-the-counter medications, along with other commonly stolen items on their eBay accounts.
The Tulsa Police Department reached out to lead investigator Agent Thomas Helm with the Oklahoma Attorney General’s Office. Once it was determined that crimes linked to Been’s retail theft organization also occurred in surrounding states, a federal investigation was launched.
The U.S. Attorney’s Office, the Oklahoma Attorney General’s Office, Tulsa Police Department, Homeland Security Investigations (HSI), and IRS Criminal Investigation joined forces to lead Operation Booster Buster. HSI Task Force Officers from the Tulsa County Sheriff’s Office also joined in the investigation.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS-Criminal Investigation, the Tulsa Police Department, Oklahoma Attorney General’s Office, and Tulsa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney’s Richard M. Cella and Reagan V. Reininger are prosecuting the case on behalf of the federal government. Senior Deputy Attorney General Joy Thorp and Assistant Attorney General Kenneth Dane Towery are prosecuting the case on behalf of the state of Oklahoma.
*A “booster” is a person who steals goods and merchandise, specifically, but not limited to OTC from retail stores.
* A “fence” or “fencing operation” is a person, organization or entity that purchases or receives stolen goods and merchandise from boosters. The fence or fencing operation then re-sells the stolen goods and merchandise to third parties.
An indictment and other charging documents are merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maryland U.S. Attorney’s Office Continues Fight Against Human TraffickingRead the Press Release
Baltimore, Maryland - January is Human Trafficking Awareness Month. As a founding member of the Maryland Human Trafficking Task Force, the Maryland U.S. Attorney’s Office pledges to continue to combat human trafficking by working with our partners to investigate and prosecute traffickers and rescue victims. The Maryland Human Trafficking Task Force (MHTTF) was formed in 2007 by the U.S. Attorney's Office, the Attorney General of Maryland, and the State's Attorney for Baltimore City to serve as the lead investigative, prosecutorial, and victim services coordinating body for anti-human trafficking activity in the State of Maryland. The MHTTF is a multidisciplinary team of agencies and organizations committed to a victim-centered approach in the fight against human trafficking in Maryland. Our record of success in rescuing and serving a range of labor and sex trafficking victims is irrespective of gender, nationality, sexual orientation, or age. Our communities, including the vulnerable victims who are the targets of traffickers, benefit greatly from awareness of the types of human trafficking; indicators of human trafficking; and resources available to survivors of human trafficking.
Human trafficking is defined as using force, fraud, or coercion to obtain labor or engage in commercial sex acts. Human trafficking also encompasses the use of minors in commercial sex acts regardless of whether force, fraud or coercion was used. Often, traffickers make false promises of a job or pose as benefactors to lure their victims and force them into human trafficking. Although human trafficking is usually associated with commercial sex, labor trafficking is just as prominent. Forced labor is a category of human trafficking in which individuals are coerced into legitimate and illegitimate industries, including domestic service, massage parlors, agriculture, restaurants, hotels, and manufacturing sweatshops. According to the U.S. State Department, human trafficking is now the second highest grossing criminal enterprise, with more than $150.2 billion per year earned from the use of forced labor.
Human trafficking has many faces. Victims can be of any age, race, gender, nationality, and come from any socioeconomic group. Human traffickers often target the most vulnerable, including individuals who suffer from disenfranchisement, social exclusion, or economic vulnerability (including individuals who have a history of domestic violence, substance abuse, reside in an unstable living situation, and youths in foster care or the juvenile justice system). Foreign-born individuals face unique challenges, such as language barriers and economic instability, leaving them at the mercy of their traffickers.
Maryland is not exempt from the horrors of human trafficking. The close proximity between areas of affluence and poverty, a substantial immigrant population, and other factors create favorable conditions for human traffickers (and their customers) to exploit the vulnerable—including children, recent immigrants, the drug-addicted, and those facing housing instability. Maryland’s central location on the Eastern Seaboard makes it both a pass-through state and a destination for human traffickers. The Interstate 95 corridor’s numerous hotels, rest stops, truck stops, and bus stations are prime locations for traffickers to exploit their victims. According to the National Human Trafficking Hotline, 529 phone calls, text messages, webchat, online tip reports, or emails indicating human trafficking instances were reported in Maryland in 2020. Additionally, the National Human Trafficking Hotline reported 136 cases of human trafficking in Maryland for the year 2020. To view the National Human Trafficking Hotline reported cases for Maryland, visit https://humantraffickinghotline.org/state/Maryland.
An effective way to combat human trafficking is to connect with fellow community members and look for key signals and indicators. Common indicators that a person could be a victim of human trafficking include (but are not limited to) a disconnection from social groups, dangerous or unsuitable living conditions, bruises in various stages of healing, and apparent coaching on what to say in response to questions. Other ways to combat human trafficking are by attacking the conditions that lead to trafficking, such as poverty, addiction, and homelessness; educating yourself and others on trafficking indicators; and reporting suspicious activity to the National Human Trafficking Hotline at 1(888)-373-7888. You can also text “HELP” or “INFO” to 233733. Visit the Department of Homeland Security and Investigation’s Blue Campaign for more indicators of human trafficking. For more information on human trafficking in Maryland, please visit the Maryland Human Trafficking Task Force’s website.
Federal Prosecution of Human Trafficking Cases – Examples in 2021
United States v. Aaron Crawford: On October 6, 2021, Aaron Crawford, age 37, of Washington, D.C., pled guilty to two counts of sex trafficking of a minor. According to his plea agreement, from April 2019 to December 2019, Crawford recruited, harbored, and transported two minor victims to engage in commercial sex acts. Specifically, Crawford posted a juvenile victim (Victim 1) in online advertisements for commercial sex and provided lodging in two locations for Victim 1 where Victim 1 conducted sex “dates.” Victim 1 was 15-years-old and had been reported missing for two months at the time. Crawford instructed Victim 1 to send sexually explicit images to him for the online advertisements; these images constituted child pornography. Upon further investigation, law enforcement located numerous communications on Crawford’s phone between Crawford, Victim 1, and sex procurers between November 5, 2019 and December 6, 2019. Crawford sent “johns” the addresses where Victim 1 was kept on 182 occasions. The majority of the communications were related to facilitating prostitution in various locations in Maryland and the District of Columbia.
Further, in January 2020, law enforcement officers were advised that a 16-year-old female (Victim 2) had been trafficked by an individual known as “Fly.” In an interview with law enforcement, Victim 2 positively identified Crawford as the individual she knew as “Fly.” Crawford first met Victim 2 in March 2017 when Victim 2 was 13-years-old. Later, after they met again in April 2019, Crawford introduced Victim 2 to an adult female who encouraged Victim 2 to work as a prostitute. After Victim 2 engaged in commercial sex dates, Crawford declined to share the profits with Victim 2. Victim 2 then left with the adult female. When they met again in August 2019, Victim 2 performed sex acts for customers at Crawford’s direction at an apartment complex and a parking lot. When Victim 2 declined to engage in further commercial sex dates, Crawford raped Victim 2 and threatened to kill her if she did not engage in more sex dates. Victim 2 escaped soon thereafter when Crawford left the apartment complex where he was keeping her.
Crawford faces a term of imprisonment between 10 and 23 years in federal prison. His sentencing is scheduled for February 2, 2022 at 2:00 pm.
United States v. Kamal Dorchy: On May 27, 2021, Kamal Dorchy, age 46, of Beltsville, Maryland, was sentenced to eight years in federal prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking. According to his plea agreement, from September 2016 to July 2017, Dorchy used Internet websites to post prostitution advertisements and recruit sex workers for his prostitution business through advertisements for massage work or prostitution. In his guilty plea, Dorchy admitted to recruiting a 17-year-old minor victim to work for him in his prostitution business in July 2017. Further, Dorchy arranged prostitution dates for the minor victim by posting ads on Internet websites, including for dates in Maryland. When Dorchy could not be present for the minor victim’s prostitution dates, he employed his cousin to act as “security.”
United States v. Xavier Lee: Xavier Lee, a/k/a “X,” age 41, of Elkton, Maryland, pleaded guilty to the federal charge of sex trafficking of a minor on February 25, 2021. According to his plea agreement, for the past decade Lee operated an illicit prostitution business for financial gain, including a website where Lee posted advertisements of women whom he made available for sexual acts with paying customers. That website was seized by the FBI, in conjunction with the United States Attorney’s Office and the Maryland State Police. Further, Lee admitted that he had sexual contact with Minor Victim 5. Minor Victim 5 was 14 years old when he first engaged in sexual acts with Minor Victim 5. Investigators recovered eight videos from Lee’s electronic devices, which were recorded by Lee and documented the sexual abuse of Minor Victim 5. Some videos depicted Minor Victim 5 engaged in sexual acts with Lee or with another adult man. Finally, Lee admitted that in 2013, Lee also instructed Minor Victim 4, who was sixteen to seventeen years old, to do prostitution dates. These prostitution dates were arranged through Lee’s website. Lee was aware of Minor Victim 4’s true age during the time because Minor Victim 4 advised Lee of her true age.
United States v. Charles Nabit: On September 27, 2021, Baltimore businessman Charles Nabit, age 66, of Baltimore, Maryland, was sentenced to 18 months in federal prison, followed by three years of supervised release, for transportation of an individual to engage in prostitution. U.S. District Judge George L. Russell also ordered Nabit to pay a fine of $55,000 and a special assessment of $5,100. Nabit, who owns residences and resides in Bethany Beach, Delaware and Deerfield Beach, Florida, is the owner of Westport Group, LLC. and previously owned Mountain Manor Treatment Center, a comprehensive drug treatment center in Baltimore. Nabit regularly paid money for commercial sex with women that he knew regularly used narcotics or were severely addicted to narcotics, including one victim who died from a drug overdose, and another victim that Nabit supplied with cocaine. As stated in his plea agreement, Nabit regularly paid for commercial sex with at least seven women who regularly used narcotics or suffered from serious substance abuse disorders. Additionally, Nabit regularly transported victims to and from his Baltimore office for commercial sex and, in one instance, paid a victim (Victim 6) to travel with him for commercial sex dates. Despite Victim 6 discussing her addiction struggles on several occasions, Nabit paid Victim 6 with monetary payment and cocaine.
United States v. Gerald Marshall: On May 4, 2021, Gerald Marshall, age 31, of Baltimore, Maryland was sentenced to 54 months in federal prison, followed by five years of supervised release, for conspiracy to engage in sex trafficking of a minor. Marshall admitted that he conspired to traffic two minor girls, ages 15 and 17, to engage in commercial sex acts. U.S. District Judge George J. Hazel ordered Marshall to pay $2,405 in restitution to each of the minor victims. According to Marshall’s plea agreement, beginning in or about January 2018, Marshall conspired with co-defendant Sean Dean, age 29, of Baltimore, Maryland to recruit, harbor, transport, and/or maintain three females, including two minors, to engage in commercial sex acts. In furtherance of the sex trafficking enterprise, Marshall rented hotel rooms in Timonium and Laurel, Maryland to be used by the victims to engage in commercial sex acts. Marshall and Sean Dean transported the victims to the various hotels where they would stay for multiple days. While in the hotel rooms, at Dean’s direction, the victims used a website to advertise themselves for commercial sex acts. The advertisements contained pictures of the victims in provocative poses and provided contact information for clients to use to secure a “date” with the victims. The victims were required to share a portion of the proceeds from any commercial sex acts with Dean.
United States v. Sean Dean: On July 9, 2021, Sean Dean, age 29, of Baltimore, Maryland was sentenced to 10 years in federal prison, followed by 10 years of supervised release, for conspiracy to engage in sex trafficking of a minor. According to Dean’s plea agreement, from December 2017 until January 2018, Dean recruited, harbored, transported, and/or maintained five females, including four minors ranging from 15 to 17 years old, to engage in commercial sex acts. Dean utilized social media and cellular telephones to recruit, monitor, direct, and communicate with the four girls and the woman. In furtherance of his sex trafficking enterprise, Dean and Gerald Marshall rented hotel rooms for victims to engage in commercial sex acts and transported the victims to various hotels for commercial sex acts. Dean and Marshall transported three of the minor girls and the woman to a hotel in Timonium. The victims were at the hotel for approximately one week and met with multiple customers per day to engage in commercial sex acts. The victims shared a portion of the proceeds earned from their commercial sex acts with Dean and Marshall.
United States v. Adolph J. Scott: In August 2021, a federal grand jury returned an indictment charging Adolph J. Scott, age 36, of Spring Lake, North Carolina, for the federal charges of sex trafficking by force, fraud, and coercion; interstate transportation of an individual to engage in prostitution; and possession with intent to distribute controlled substances. According to the three-count indictment, from at least January 2020 to February 2021, in the District of Maryland, the Eastern District of North Carolina, and elsewhere, Scott recruited, enticed, transported, advertised, and solicited Victim 1 to conduct sexual acts for his financial benefit. Specifically, the indictment alleges from January 23, 2021 to January 24, 2021 that Scott transported Victim 1 from Maryland to North Carlina with the intent that Victim 1 would engage in prostitution and sexual activity. The indictment further alleges that Scott also possessed controlled substances with intent to distribute including: a mixture or substance containing a detectable amount of fentanyl, a mixture or substance containing a detectable amount of heroin, and a mixture or substance containing a detectable amount of cocaine. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States v. Feliciano De-Jesus Diaz-Martinez: On November 18, 2021, a federal trial jury convicted Feliciano de Jesus Diaz-Martinez, a/k/a Alex, age 43, of Owings Mills, Maryland, of sex trafficking of a child, enticement of a minor to engage in prostitution, sex trafficking by force, fraud and coercion, and distribution of a controlled substance. According to the evidence presented at his nine-day trial, from 2016 through May 2019, Diaz-Martinez, a Guatemalan national in the United States illegally, caused more than eight individuals, including minors, to engage in commercial sex acts for his own financial benefit by means of force, fraud, and coercion. Trial testimony confirmed that Diaz-Martinez knew that Victim 1 was 16 years old when he first caused her to engage in commercial sex acts. Victim 1 continued to work for Diaz-Martinez until she was approximately 18 years old. The evidence proved that nearly all of the victims that Diaz-Martinez caused to engage in commercial sex acts suffered from serious substance abuse disorders, including addictions to heroin, crack cocaine, and Xanax. Diaz-Martinez took half or all of the money earned by the victims working for him, and sold some of the victims narcotics, often at prices significantly higher than he paid to purchase the drugs. Several victims testified that Diaz-Martinez frequently demanded that they engage in sex acts with him, free of charge, and that he retaliated against the victims if he was not personally satisfied with the sexual encounter.
Federal Grant Funding
In December 2021, the Department of Justice’s Office of Justice Programs and its component, the Office of Victims of Crime, gave $600,000 to the University of Baltimore School of Law and Maryland Volunteer Lawyers Service (MVLS), the largest provider of pro bono civil legal services in Maryland. The MVLS will use funds over the course of three years to extend the reach of their Human Trafficking Prevention Project in Baltimore City and into more rural areas of Maryland, as well as to increase the number of staff who will deliver free legal services and full representation to survivors.
Training
In 2021, the U.S. Attorney’s Office and our partners conducted 14 training events for law enforcement and other professionals fighting human trafficking, training a total of 725 individuals including through the Human Trafficking Investigators Seminar and the Human Trafficking Professionals Seminar, both of which occurred in October 2021.
The U.S. Attorney’s Office for the District of Maryland has deployed many resources in the fight against human trafficking and we will continue to make the investigation and prosecution of human trafficking cases a priority.
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Man from Saudi Arabia sentenced to 30 months in federal prison for illegal possession of a firearm and ammunitionRead the Press Release
ALBUQERQUE, N.M. – Hassan Alqahtani, 29, of Saudi Arabia, was sentenced in federal court on Jan. 6 to two years and six months in prison for being an alien in possession of a firearm and ammunition. A jury convicted Alqahtani on May 14, 2021.
According to a criminal complaint and other court records, on Aug. 8, 2019, the FBI received a tip about Alqahtani, a citizen of Saudi Arabia, illegally possessing a firearm and making threats. On Dec. 12, 2019, law enforcement executed a search warrant at Alqahtani’s residence and discovered a loaded firearm and ammunition. As an international student on a F1 student visa, Alqahani cannot legally possess a firearm or ammunition.
Upon his release from prison, Alqahtani may be subject to deportation by the Department of Homeland Security, and will be subject to two years of supervised release.
The FBI Albuquerque Field Office investigated this case with assistance from the Department of Homeland Security. Assistant U.S. Attorneys Jack Burkhead and Paul Mysliwiec prosecuted the case.
Lynn Man Pleads Guilty to Firearms OffensesRead the Press Release
BOSTON – A Lynn man pleaded guilty today in connection with illegally possessing and selling firearms.
Jufrandy Montano, 32, pleaded guilty to one count of dealing in firearms without a license, one count of being a felon in possession of a firearm and ammunition and one count of possession of an unregistered firearm. Montano was indicted on Sept. 28, 2021. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 27, 2022. Montano is currently in Maine state custody where he is serving a sentence on unrelated state charges.
Between March 4 and March 19, 2020, Montano sold three firearms. Additionally, on March 4, 2020, Montano possessed a 12-gauge sawed-off shotgun that was not registered to him in the National Firearms Registration and Transfer Records. Montano does not possess a license to import, manufacture, or deal firearms and is prohibited from possessing firearms due to a prior felony conviction.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Loose Creek Man Sentenced to 15 Years for Meth Trafficking, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Loose Creek, Missouri, man was sentenced in federal court today for illegally possessing methamphetamine and a firearm.
Leif Christopher Haslag, 39, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
On July 1, 2021, Haslag pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of being a felon in possession of a firearm.
Law enforcement officers were conducting surveillance on Sept. 12, 2019, and saw Haslag leaving a Jefferson City, Mo., residence in a Ford Explorer with license plates that were registered to another vehicle. Officers stopped Haslag and searched the vehicle. Inside, they found approximately 48.3 grams of pure methamphetamine and a loaded Taurus 9mm handgun.
Haslag told investigators he had sold between four and six ounces of methamphetamine in the past 30 days. He also told them he had purchased the handgun the day before for $75, with the intent to sell it.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Haslag has seven prior felony convictions for burglary, seven prior felony convictions for theft, multiple prior felony convictions related to drug trafficking, and a prior felony conviction for stealing a motor vehicle.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, and the MUSTANG Drug Task Force.
Local Man Sentenced for Obstructing Police During May 30, 2020, Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to one day in custody of United States Marshal Service, three years of supervised release, and 365 days of home detention on his conviction of Obstruction of Law Enforcement During Civil Disorder, United States Attorney Cindy K. Chung announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Joseph Harrison Craft, 29, of Pittsburgh, PA 15201.
According to information presented to the court, Craft interfered with and obstructed the Pittsburgh Police during the course of the civil disorder that occurred in connection with the protests which took place in downtown Pittsburgh on May 30, 2020. At the conclusion of the protest march, Craft was part of a group of protesters who then attempted to prevent the movement of police vehicles attempting to leave the scene. Craft then approached an unoccupied police vehicle and smashed out the window of the vehicle. Shortly after Craft left this area, other members of the crowd set the police vehicle on fire. Craft then went into the downtown area near Fifth Avenue and Smithfield Street, where he and others moved large decorative planters into the street to block the passage of police vehicles. When the police attempted to disburse the crowd with smoke cannisters, Craft tossed two of those cannisters back in the direction of the officers.
Assistant U.S. Attorney Shaun Sweeney prosecuted this case for the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Craft.
Lexington Man Gets 15 Years in Federal Prison for Gun ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that Stephen Johnson Craft, 43, of Lexington, was sentenced to fifteen years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court established that on February 24, 2020, a deputy with the Lexington County Sheriff’s Department observed a vehicle abruptly turn without signaling. The deputy attempted to conduct a traffic stop and the vehicle abruptly turned into a private driveway. Craft was the passenger in the vehicle and stated the vehicle belonged to him.
In the backseat of the passenger compartment of the vehicle, the deputy located a black backpack containing a .40 caliber Glock pistol. The Glock had one cartridge loaded in the chamber and a magazine containing an additional nine rounds. The deputy also found marijuana in the vehicle.
Craft’s prior record includes a 1996 criminal domestic violence, a 1997 armed robbery, a 2008 grand larceny, a 2010 criminal domestic violence of a high and aggravated nature, a 2010 attempt to manufacture methamphetamine, a 2014 carrying a concealed weapon, a 2016 possession of a firearm by a person convicted of a violent felony, a 2016 possession with intent to distribute methamphetamine, and a 2018 assault and battery first degree.
United States District Judge J. Michelle Childs sentenced Craft to 180 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department 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.
Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit Solicitor’s Office prosecuted the case.
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Lab Owner Pleads Guilty to $6.9 Million Genetic Testing & COVID-19 Testing Fraud SchemeRead the Press Release
A Florida man pleaded guilty today in the Southern District of Florida to a $6.9 million conspiracy to defraud Medicare by paying kickbacks and bribes to obtain doctors’ orders for medically unnecessary lab tests that were then billed to Medicare. The defendant exploited the COVID-19 pandemic by bundling COVID-19 testing with other forms of testing that patients did not need, including genetic testing and tests for rare respiratory pathogens.
According to court documents, Christopher Licata, 45, of Delray Beach, admitted that, as owner of Boca Toxicology LLC (dba Lab Dynamics), he bribed patient brokers who would refer Medicare beneficiaries and doctors’ orders authorizing medically unnecessary genetic testing to Licata’s laboratory. Licata and these patient brokers entered into sham agreements to disguise the true purpose of these payments. Once the COVID-19 pandemic began, Licata exploited patients’ fears of COVID-19 by bundling COVID-19 tests with more expensive, medically unnecessary testing, including respiratory pathogen panel testing and, at times, genetic testing for cardiovascular diseases, cancer, diabetes, obesity, Parkinson’s, Alzheimer’s and dementia. In total, Licata caused his laboratory to submit over $6.9 million in false and fraudulent claims to Medicare for these medically unnecessary tests.
Licata pleaded guilty to one count of conspiring to commit health care fraud. He is scheduled to be sentenced on March 24 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The FBI’s Miami Field Office and HHS-OIG are investigating the case.
Trial Attorneys Jamie de Boer and Dermot Lynch of the Criminal Division’s Fraud Section are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the department 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.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Knoxville Man Sentenced to Prison for Defrauding COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On January 13, 2022, James Waylon Howell, 39, of Knoxville was sentenced to 18 months in prison by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Howell pleaded guilty to engaging in more than $150,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, and to committing money laundering.
“This prosecution highlights the Department of Justice’s commitment to aggressively prosecute those who have defrauded these important programs enacted to provide economic relief to those who have suffered financially as a result of the COVID-19 pandemic,” said United States Attorney Francis M. Hamilton III. “Fortunately, the quick and capable work of our federal partners permitted the recovery of a substantial amount of stolen funds.”
“Our office will continue to investigate those who fraudulently take advantage of Coronavirus aid funding that is available to help others during the pandemic, and bring them to justice,” said FBI Special Agent in Charge Joe Carrico.
“While businesses were suffering and trying their best to make it through the pandemic, others chose greed,” Assistant Special Agent in Charge of IRS-Criminal Investigation Brian Thomas said. “IRS-CI will continue to use its financial expertise to track and recommend prosecution of criminals taking advantage of a crisis.”
The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Two primary sources of relief provided by the CARES Act were the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program. PPP loans consisted of more than $640 billion in forgivable loans to small businesses for payroll, mortgage interest, rent, and utilities. The EIDL program provided low-interest loans to business owners to pay for items like accounts payable and other bills that could not be paid as a result of COVID-19.
As stated in defendant’s filed plea agreement, from April 2020 to June 2020, Howell fraudulently applied for four loans totaling $154,700 through the PPP and EDIL programs. Howell submitted fraudulent applications under the names of two businesses that did not qualify for the COVID-19 relief funds that Howell sought. Howell submitted two fraudulent applications to financial institutions seeking PPP funds and two fraudulent applications to the Small Business Administration seeking EIDL funds. As part of his fraud scheme, Howell submitted false supporting records, including Internal Revenue Service documents, and made false statements about the number of individuals the companies employed, the revenue generated, and the waged paid. Howell also made false statements about the business entities and the intended use of the loan proceeds.
For example, according to the plea agreement, on April 1, 2020, Howell submitted an online application to the Small Business Administration in the name of Advanced Strategy Holdings, LLC, seeking $83,800 in EIDL funds. On the application and in the supporting documents, Howell submitted to the SBA in support of the loan, Howell claimed that Advanced Strategy Holdings employed four individuals, generated $700,000 in gross revenue, incurred $0 in cost of goods sold, and paid wages of $440,000 in the twelve months preceding the COVID-19 pandemic. These claims were all false.
This case is the result of an investigation conducted by the FBI and the Internal Revenue Service - Criminal Investigation.
Assistant United States Attorney William A. Roach, Jr., who also serves as the Office’s Coronavirus Fraud Coordinator, 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 via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Justice Department Resolves Housing Discrimination Lawsuit Against the City of Arlington, TexasRead the Press Release
The Justice Department announced today that the City of Arlington, Texas, has agreed to pay $395,000 to resolve a lawsuit alleging that it violated the Fair Housing Act when it refused to support an affordable housing development that would have served low-income families with children.
“Local governments that resort to discriminatory tactics to block the development of affordable housing and to lock out families with children will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement should send a strong message to jurisdictions across the country that we will use the law to protect families with children from discriminatory denials of housing opportunities.”
“Under the Fair Housing Act, cities cannot discriminate against families with children – nor can they discriminate on the basis of race, color, national origin, sex (including gender identity and sexual orientation), religion or disability,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “This law is just as important now as it was when it was passed more than 50 years ago, and we are committed to upholding it.”
The settlement, which still must be approved by the U.S. District Court for the Northern District of Texas, resolves a lawsuit filed today alleging that the City violated federal law in connection with an affordable housing development in 2017. Specifically, the suit alleges that the City violated the Fair Housing Act when it blocked the development of an affordable housing project proposed by Community Development Inc. (CDI), that would have been financed by the federal Low-Income Housing Tax Credit (LIHTC). As alleged in the lawsuit, such tax credits are awarded by the State of Texas on a competitive basis, and it is very difficult for new developments to obtain tax credits unless they receive a Resolution of Support or a Resolution of No Objection from the local government. The lawsuit alleges that the City declined to issue such a resolution for CDI’s development because the City had a policy of supporting LIHTC developments only for senior housing intended for persons 55 years or older. As a result, CDI’s proposed housing for families with children did not receive tax credits and it was not developed.
CDI filed a complaint with the Department of Housing and Urban Development (HUD) alleging that the City’s conduct discriminated against families with children in violation of the Fair Housing Act. After an investigation, HUD determined that the City had violated the statute and referred the matter to the Department of Justice.
“Families with children deserve to have equal access to affordable housing opportunities, and the Fair Housing Act makes it illegal for local governments to discriminate based on familial status,” said Damon Smith, General Counsel of HUD. “HUD commends the Department of Justice for reaching this resolution and will continue to hold government entities accountable when they violate the Fair Housing Act.”
Under the settlement, the City will pay $395,000 to CDI. The settlement also requires the City to maintain a non-discriminatory policy for future LIHTC developments, provide Fair Housing Act training to certain city officials, and submit to compliance and reporting requirements for the term of the settlement.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals who believe they have been victims of housing discrimination should contact the Department of Justice toll-free at 1-833-591-0291, by email at [email protected], or submit a report online at www.civilrights.justice.gov. Such individuals may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Justice Department Announces Retirement of U.S. Trustee Program Director Cliff WhiteRead the Press Release
The Justice Department today announced the retirement of Clifford White, the Director of the Justice Department’s U.S. Trustee Program (USTP), which oversees the administration of bankruptcy cases, effective March 31, 2022.
“I want to express my appreciation to Cliff, not only for his 17 years of leadership of the U.S. Trustee Program, but also for 40 years of exceptional public service,” said Attorney General Merrick B. Garland. “During his long service as the head of USTP, Cliff oversaw the work of USTP’s 21 regions and 90 field offices to ensure the integrity and efficiency of the bankruptcy system. I wish him all the best in his future endeavors.”
White is a career civil servant who has held numerous leadership positions within the government. He was twice recognized with Presidential Rank Awards — the highest recognition accorded to career officials — first by President George W. Bush and then by President Barack Obama.
Under White’s leadership, USTP successfully implemented many significant statutory changes; launched major enforcement initiatives to combat fraud and abuse; enforced compliance with bankruptcy laws; and, most recently, upheld the legal rights of victims of the opioid crisis in the Purdue Pharma case by challenging releases of liability that shield alleged wrong doers.
Learn more information on the program at: https://www.justice.gov/ust.
Justice Department Announces New Rule Implementing Federal Time Credits Program Established by the First Step ActRead the Press Release
Today, the Department of Justice announced that a new rule has been submitted to the Federal Register implementing the Time Credits program required by the First Step Act for persons incarcerated in federal facilities who committed nonviolent offenses. As part of the implementation process, the Federal Bureau of Prisons (BOP) has begun transferring eligible inmates out of BOP facilities and into either a supervised release program or into Residential Reentry Centers (RRCs) or home confinement (HC).
“The First Step Act, a critical piece of bipartisan legislation, promised a path to an early return home for eligible incarcerated people who invest their time and energy in programs that reduce recidivism,” said Attorney General Merrick B. Garland. “Today, the Department of Justice is doing its part to honor this promise, and is pleased to implement this important program.”
The First Step Act of 2018 provides eligible inmates the opportunity to earn 10 to 15 days of time credits for every 30 days of successful participation in Evidence Based Recidivism Reduction Programs and Productive Activities. The earned credits can be applied toward earlier placement in pre-release custody, such as RRCs and HC. In addition, at the BOP Director’s discretion, up to 12 months of credit can be applied toward Supervised Release. Inmates are eligible to earn Time Credits retroactively back to Dec. 21, 2018, the date the First Step Act was enacted, subject to BOP’s determination of eligibility.
Implementation will occur on a rolling basis, beginning with immediate releases for inmates whose Time Credits earned exceed their days remaining to serve, are less than 12 months from release, and have a Supervised Release term. Some of these transfers have already begun, and many more will take place in the weeks and months ahead as BOP calculates and applies time credits for eligible incarcerated individuals.
The final rule will be published by the Federal Register in the coming weeks and will take immediate effect. The rule, as it was submitted to the Federal Register, can be viewed here: https://www.bop.gov/inmates/fsa/docs/bop_fsa_rule.pdf
Please note: This is the text of the First Step Act Time Credits final rule as signed by the Director of the Federal Bureau of Prisons, but the official version of the final rule will be as it is published in the Federal Register.
Judge sentences St. Louis man to 11 years in prison on drug and gun chargesRead the Press Release
Pursuant to the plea agreement, on January 30, 2019, Ellison was driving in Washington, Missouri and committed several traffic violations. A Washington Police department patrol officer conducted a traffic stop of Ellison's vehicle upon observing these traffic violations.
At the time he was pulled over by the police, Ellison possessed a fully loaded and stolen .22 caliber pistol in a pocket of his coat as well as six rounds of .38 caliber ammunition and a large amount of United States currency. Discovered by police around his waistband, Ellison possessed a plastic baggie containing methamphetamine.
At Ellison’s residence in his bedroom, law enforcement located several other weapons. Law enforcement located these items and Ellison admitted to law enforcement that he had sold some of the drugs that the police had located in his possession. Ellison was previously convicted of a felony which prohibited him from possessing any firearms.
The Washington Missouri Police Department, the Bureau of Alcohol, Tobacco and Firearms and the Missouri Highway Patrol investigated the case.
Judge sentences St. Louis man for identity theft schemeRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Arondo Harris to a term of 41 months in federal prison on January 12, 2022. Harris was convicted by a jury in May of six counts of identity theft. This case is of significance because the identity theft arose in connection with Harris’ filing of counterfeit quit claim deeds with the City of St. Louis Recorder of Deeds Office.
When property located in the City of St. Louis, Missouri is to be transferred through a quit claim deed, the grantor, the current owner of the property, and the grantee, the future owner of the property, must sign the quit claim deed, and their signatures must be authenticated by a licensed notary public.
According to court documents, between January 9, 2019 and February 6, 2019, Harris presented to the City of St. Louis Recorder of Deeds Office three quit claim deeds that contained the forged signatures of the properties’ true owners. Each of the forged signatures had had been falsely authenticated through the seal and forged signature of a licensed notary public. The property owners of one of the residences had died prior to the forgery of their signatures.
As a result of the false notarization of the quit claim deeds, representatives of the Recorders Office accepted the deeds as legitimate and falsely recorded Harris as the owner of three residences located in the City of St. Louis.
The Court determined that Harris’ conduct resulted in losses of more than $150,000 to the legitimate owners of the properties. It also determined that Harris caused substantial financial hardship to one of the victims because that individual was left homeless by the fraudulent activities.
This case was investigated by the United States Postal Inspection Service and was prosecuted based upon a referral by the Circuit Attorney’s Office for the City of St. Louis.
Judge sentences O’Fallon, Missouri man for the receipt of child pornographyRead the Press Release
ST. LOUIS – Jason McCraw, age 47, of O’Fallon, Missouri, appeared before United States District Court Judge Sarah E. Pitlyk on today’s date. Based on a previous plea of guilty, McCraw was sentenced to 72 months in federal prison followed by a lifetime of supervised release for the receipt of child pornography.
According to the plea agreement, on November 26, 2019, a social networking application reported its detection of twenty-six images of child pornography on an account belonging to McCraw. On June 10, 2020, a search warrant was executed at the St. Charles County residence of McCraw and multiple electronic items belonging to him were seized.
Additionally, McCraw provided law enforcement with his Apple iPhone cellular telephone and the password associated with the phone. On June 10, 2020, McCraw admitted to law enforcement that he had possibly over one hundred images or videos of child pornography on his cellular telephone and that he had been downloading child pornography from the internet for four to five years.
On the Apple iPhone, law enforcement found 2,398 images and 101 videos of child pornography that had been downloaded by McCraw from the internet onto his phone. Law enforcement also located multiple digital communication over the social networking application Kik Messenger in which McCraw discusses his sexual interest in minors and traded child sexual abuse material and child erotica with others via social media.
This case was investigated by the Federal Bureau of Investigation and the St. Charles County Police Department Cybercrime Unit.
Jonesport Man Pleads Guilty to Embezzling Funds from EstateRead the Press Release
BANGOR, Maine: A Jonesport man pleaded guilty in federal court today to wire fraud, U.S. Attorney Darcie N. McElwee announced.
According to court records, from April through October 2020, Donald McMahon, 34, embezzled approximately $95,000 from a bank account owned by an estate being probated in Washington County. McMahon carried out the scheme by obtaining unauthorized access to the estate account. He then made hundreds of transfers from the estate’s bank account using PayPal, an online money transfer system, in order to convert the funds to his own use.
McMahon faces up to 20 years in prison and $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI and the Washington County Sheriff’s Office.
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Joint Efforts of Federal, State, and Local Authorities Result in Arrests of Twelve Defendants for Gun, Drug OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that twelve individuals have been charged with gun and/or drug-related offenses and have been arrested by a joint team of federal, state, and local law enforcement officers, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This release follows the arraignments, multiple detention hearings, and superseding indictments.
The following defendants who have been arrested and arraigned on their respective charges face a potential penalty of life imprisonment:
- Craig Thomas Burris, 55, of Myrtle Beach, is charged with possession of a firearm and ammunition as a convicted felon, possession of heroin and fentanyl with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
- Taurus Jermaine Dotson, 38, of Columbia, is charged with possession of a firearm and ammunition as a convicted felon; possession with intent to distribute and distribution of methamphetamine, fentanyl, cocaine, and crack cocaine; and possession of a firearm in furtherance of a drug trafficking crime.
- Leon Johnny King, 37, of Columbia, is charged with possession of firearms and ammunition as a convicted felon; possession with intent to distribute and distribution of heroin, fentanyl, and Etizolam; possession with intent to distribute heroin, cocaine, and crack cocaine; and possession of a firearm in furtherance of a drug trafficking crime.
- Jamel Lamont Lewis, 32, of Winnsboro, is charged with possession of a firearm and ammunition as a convicted felon, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
- Christopher Joel Roach, 28, of West Columbia, is charged with possession of firearms and ammunition as a convicted felon; possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, marijuana, and tramadol; and possession of a firearm in furtherance of a drug trafficking crime.
- Jacobi Kwejuan Scott, 33, of Columbia, is charged with possession of firearms and ammunition as a convicted felon, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
- Davian Kejuanis Mosley, 21, of Hopkins, is charged with multiple counts of robbery affecting commerce and brandishing a firearm during a crime of violence.
The following defendant who has been arrested and arraigned on his respective charges faces a potential penalty of 20 years imprisonment:
- Jeffrey Tavoun Allen, 35, of Columbia, is charged with possession with intent to distribute and distribution of heroin and fentanyl and possession with intent to distribute crack cocaine and fentanyl.
The following defendants who have been arrested and arraigned on their respective charges face a potential penalty of 10 years imprisonment:
- Paul James, III, 33, of Columbia, is charged with possession of a firearm and ammunition as a convicted felon.
- Demetreus Alexa Lewis, 32, of Elgin, is charged with possession of firearms and ammunition as a convicted felon.
- Latrell Ira Miles Maurice, 35, of Columbia, is charged with possession of a firearm and ammunition as a convicted felon.
- Sylivon Jarqaous Moye, 28, of Columbia, is charged with possession of firearms and ammunition as a convicted felon.
These cases were investigated by ATF in conjunction with several state and local law enforcement agencies, including the Richland County Sheriff’s Department, Fairfield County Sheriff’s Department, Orangeburg Department of Public Safety, and Columbia Police Department.
These cases are being prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorneys Chris Taylor and Lauren Hummel are prosecuting the cases.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Insurance Agent Sentenced for $3M Fraud SchemeRead the Press Release
NORFOLK, Va. – A West Valley City, Utah, man was sentenced today to 5 years in prison for conspiracy to commit wire fraud as part of an investment fraud scheme against mostly elderly victims.
According to court documents, Tony Scott Sellers, 62, was a licensed insurance salesman in Idaho. From about January 2011 through August 2017, Sellers, along with other conspirators, made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles that were sold and controlled by Daryl Bank, among others. Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to purchase the investments, without knowing that 20% to 70% of their funds would be skimmed off the top in the form of purported “fees.” In September 2021, Bank was sentenced to 35 years in prison for his role in a nationwide investment fraud scheme that resulted in over $25 million in losses to more than 300 victims, most of whom were elderly.
As a result of Seller’s part in this investment fraud scheme, victims suffered losses in excess of $3 million. Most of the victims were at or near retirement age when Sellers and his co-conspirators defrauded them.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Greg Torbenson, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Significant assistance in this case was provided by the Virginia State Corporation Commission.
Assistant U.S. Attorneys Melissa O’Boyle, Andrew Bosse, and Elizabeth Yusi prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 2:19-cr-47.
Illegal Possession of Firearm Results in Federal Prison SentenceRead the Press Release
SHREVEPORT, La. – Nathan P. McCall, 32, of Shreveport, Louisiana, was sentenced today to 70 months in prison, followed by 2 years of supervised release, for illegal possession of a firearm, announced United States Attorney Brandon B. Brown. McCall was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. In addition, restitution was ordered in the amount of $8,750 to Barksdale Federal Credit Union.
According to evidence presented to the court, on December 7, 2020, officers with the Shreveport Police Department found McCall sitting in a vehicle parked in front of a local credit union and were given permission to search his vehicle. Inside the trunk, law enforcement officers found a Glock pistol beside a checkbook where the top check had been made payable to Nathan McCall. Officers also found a loaded 9mm drum magazine inside the vehicle. The ordered restitution stems from conduct involving McCall’s unauthorized use of an elderly woman’s checkbook.
McCall has a previous felony conviction for possession of a controlled substance in 2011 and was prohibited from possessing any firearm or ammunition.
The case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Caddo Parish Financial Crimes Task Force, and was prosecuted by Assistant U.S. Attorney Leon H. Whitten.
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