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Monday 22 November 2021
Illegal alien admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Lucio Javier Escobedo Fernandez, a Mexican national, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Fernandez, 28, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine.” Fernandez admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.
Fernandez faces up to 20 years of incarceration and a fine of up to $1 million. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Idaho Falls Man Pleads Guilty to Felon in Possession of a FirearmRead the Press Release
POCATELLO – An Idaho Falls man pled guilty to felon in possession of a firearm.
According to court records, on October 13, 2020, the Idaho State Police stopped a vehicle, which had been reported stolen, on I-15 in Bonneville County. During the traffic stop, law enforcement contacted Jonathan Manuel Martinez, 31, of Idaho Falls, who was the driver and sole occupant. Martinez informed law enforcement that there was a shotgun in the front seat of the vehicle. Law enforcement recovered a short-barreled shotgun. Martinez had previously been convicted of a felony offense and was prohibited from possessing firearms.
Martinez faces up to ten years in federal prison, a fine of $250,000, and three years of supervised release. His sentencing is set for February 8, 2022 in front of Chief U.S. District Judge David C. Nye.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the collaborative efforts of the Idaho State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, which led to the charges.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 186 defendants have been indicted by the EIP SAUSA. Of these defendants, 40 have been indicted for prohibited person in possession of firearm charges. The defendants indicted under the program have been sentenced to 7,646 months (approximately 637 years) in federal prison, representing an average prison sentence of 53.4 months (4.45 years). Defendants indicted for prohibited person in possession of a firearm cases serve, on average, approximately 41 months (3.42 years) in federal prison.
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Ida Grove Man Sentenced to over 12 Years in Federal PrisonRead the Press Release
A man who conspired to distribute over 5 kilograms of methamphetamine was sentenced on November 22, 2021, in federal court in Sioux City.
Cory Mackey, 34, from Ida Grove, Iowa, pled guilty on June 17, 2021, to conspiring to distribute methamphetamine.
At the hearings, evidence showed that from February 2019 through July 9, 2020, Mackey conspired to distribute over 5 kilograms of methamphetamine in the Ida County, Iowa area. On January 16, 2020, law enforcement executed a search warrant on Mackey’s home and discovered methamphetamine and drug paraphernalia. In July 2020, law enforcement discovered a vehicle, in which Mackey was a passenger, parked in the wrong lane on a rural road in Holstein, Iowa. A search of the vehicle revealed approximately 2.75 pounds of pure methamphetamine and over $18,000 in cash.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Mackey remains in custody of the United States Marshal until he can be transported to a federal prison. Mackey was sentenced to 145 months’ imprisonment and must also serve a 5-year term of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, DCI Laboratory, and Ida County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4004. Follow us on Twitter @USAO_NDIA.
Huntington Man Sentenced to More than Seven Years in Prison for Federal Fentanyl OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to seven years and six months in prison for his involvement in distributing fentanyl in 2019.
According to court documents, Rodney Bulley, 33, admitted that on November 20, 2019, law enforcement officers executed a search warrant at his residence on Wilson Court in Huntington. Bulley was located in the residence during the search and officers seized a number of items including approximately 278 grams of fentanyl. Bulley was arrested and admitted that he possessed and intended to distribute the fentanyl and that he had been involved in distributing fentanyl in the Huntington area.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant U.S. Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00105.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal drug crime.
According to court documents, on January 14, 2021, Aaron Scott Midkiff, 36, was the passenger in a vehicle that was stopped by deputies with the Cabell County Sheriff’s Department. Midkiff had approximately 166 grams of methamphetamine in his possession at the time the deputies initiated the traffic stop. The methamphetamine was thrown out of the vehicle just prior to the vehicle stopping and was recovered by deputies. Midkiff also had digital scales and plastic bags in his possession.
Midkiff pleaded guilty to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine and faces a mandatory minimum of five years in prison when he is sentenced on February 22, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force, which is comprised of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West provide investigative support to the task force. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio, also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorneys Courtney L. Cremeans and Joseph F. Adams are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Human smuggling, forced labor among allegations in south Georgia federal indictmentRead the Press Release
Photo courtesy of U.S. Attorney's Office, Southern District of Georgia David H. Estes, Acting U.S. Attorney for the Southern District of Georgia, speaks during a news conference Nov. 22, 2021, to announce indictments in USA v. Patricio et al, Operation Blooming Onion, a human trafficking investigation naming 24 defendants on felony charges including human smuggling and document fraud. With Estes are (from left) Katrina Berger, Special Agent in Charge of the Atlanta Office of Homeland Security Investigations; Michael Imperatrice, Resident Agent in Charge, Savannah HSI Office; Jessica Moore, Chief of the Criminal Investigation Division for the U.S. Department of State's Diplomatic Security Service; Rafiq Ahmad, Special Agent in Charge of the Atlanta Regional Office of the U.S. Department of Labor Office of Inspector General; Henry Deblock, Savannah Area Port Director for U.S. Customs and Border Protection; George "Will" Clarke, Supervisory Senior Resident Agent, FBI Savannah; John Britt, Savannah/Jacksonville Team Leader, U.S. Postal Inspection Service; David Lyons, U.S. Marshal for the Southern District of Georgia; Maj. Fred Cole, Chief Deputy of the Coffee County Sheriff's Office; and Capt. Marcus Dunlap, Coffee County Sheriff's Office.INDICTMENT: USA v. Patricio et al, Operation Blooming Onion: 521cr9.pdf
WAYCROSS, GA: Two dozen defendants have been indicted on federal conspiracy charges after a transnational, multi-year investigation into a human smuggling and labor trafficking operation that illegally imported Mexican and Central American workers into brutal conditions on South Georgia farms.
The newly unsealed, 54-count indictment in USA v. Patricio et al. details felony charges resulting from Operation Blooming Onion, an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The multi-agency investigation, led by Homeland Security Investigations and other federal agencies, spans at least three years, and the 53-page indictment documents dozens of victims of modern-day slavery while spelling out the illegal acts that brought these exploited workers into the United States and imprisoned them under inhumane conditions as contract agricultural laborers, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
“The American dream is a powerful attraction for destitute and desperate people across the globe, and where there is need, there is greed from those who will attempt to exploit these willing workers for their own obscene profits,” said Acting U.S. Attorney Estes. “Thanks to outstanding work from our law enforcement partners, Operation Blooming Onion frees more than 100 individuals from the shackles of modern-day slavery and will hold accountable those who put them in chains.”
“OCDETF Operation Blooming Onion maximized the expertise of multiple law enforcement agencies and leveraged analytical and coordination support from OCDETF’s International Organized Crime Intelligence and Operations Center (IOC-2) to target an international criminal organization engaged in human trafficking and visa fraud,” said OCDETF Director Adam W. Cohen. “The U.S. Attorney’s Office’s leadership of this multi-agency law enforcement effort positions us to disrupt and dismantle the operations of transnational criminal networks that pose the greatest threat to our communities and to the Nation.”
As described in the indictment, investigators from Homeland Security Investigations, the U.S. Department of Labor, U.S. Department of State’s Diplomatic Security Service, the U.S. Postal Inspection Service, and the FBI began investigating the Patricio transnational criminal organization in November 2018. The indictment alleges that in or before 2015, the conspirators and their associates “engaged in mail fraud, international forced labor trafficking, and money laundering, among other crimes,” fraudulently using the H-2A work visa program to smuggle foreign nationals from Mexico, Guatemala, and Honduras into the United States under the pretext of serving as agricultural workers.
The activities took place within the Southern, Middle, and Northern Districts of Georgia; the Middle District of Florida; the Southern District of Texas; and Mexico, Guatemala, Honduras, and elsewhere. The conspirators required the workers to pay unlawful fees for transportation, food, and housing while illegally withholding their travel and identification documents, and subjected the workers “to perform physically demanding work for little or no pay, housing them in crowded, unsanitary, and degrading living conditions, and by threatening them with deportation and violence.”
Exploitation of the workers included being required to dig onions with their bare hands, paid 20 cents for each bucket harvested, and threatened with guns and violence to keep them in line. The workers were held in cramped, unsanitary quarters and fenced work camps with little or no food, limited plumbing and without safe water. The conspirators are accused of raping, kidnapping and threatening or attempting to kill some of the workers or their families, and in many cases sold or traded the workers to other conspirators. At least two of the workers died as a result of workplace conditions. In the Southern District of Georgia, these activities were alleged to have taken place in the counties of Atkinson, Bacon, Coffee, Tattnall, Toombs and Ware as farmers paid the conspirators to provide contract laborers.
The conspirators are alleged to have reaped more than $200 million from the illegal scheme, laundering the funds through cash purchases of land, homes, vehicles, and businesses; through cash purchases of cashier’s checks; and by funneling millions of dollars through a casino.
Then, as the continuing investigation into the conspiracy moved forward in late 2019, the indictment alleges that three of the conspirators attempted to intimidate and persuade a witness to lie to a federal grand jury and deny any knowledge of the illegal activities of the Patricio organization.
More than 200 law enforcement officers and federal agents from around the United States convened in the Southern District of Georgia to execute more than 20 federal search warrants at target locations.
Those indicted in USA v. Patricio et al. and their charges include:
- Maria Leticia Patricio, 70, of Nichols, Ga., charged with Conspiracy to Commit Mail Fraud; two counts of Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Daniel Mendoza, 40, of Ruskin, Fla., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Nery Rene Carrillo-Najarro, 56, Douglas, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; 14 counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Antonio Chavez Ramos, a/k/a “Tony Chavez,” 38, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; four counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- JC Longoria Castro, 46, Vidalia, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; four counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Victoria Chavez Hernandez, 38, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Enrique Duque Tovar, 36, of Axon, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; nine counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Jose Carmen Duque Tovar, 58, of Axon, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; nine counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Charles Michael King, 31, of Waycross, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Stanley Neal McGauley, 38, of Waycross, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Luis Alberto Martinez, a/k/a “Chino Martinez,” 41, of Tifton, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Delia Ibarra Rojas, 33, of Lyons, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Juana Ibarra Carrillo, 46, of Alma, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Donna Michelle Rojas, a/k/a “Donna Lucio,” 33, of Collins, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Margarita Rojas Cardenas, a/k/a “Maggie Cardenas,” 43, of Reidsville, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; Conspiracy to Commit Money Laundering; and Tampering with a Witness;
- Juan Fransisco Alvarez Campos, 42, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Rosalvo Garcia Martinez, a/k/a “Chava Garcia,” 33, of Haines City, Fla., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering; and Tampering with a Witness;
- Esther Ibarra Garcia, 63, of Dade City, Fla., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Rodolfo Martinez Maciel, 26, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Brett Donavan Bussey, 39, of Tifton, Ga., charged with Conspiracy to Commit Mail Fraud; four counts of Mail Fraud; Conspiracy to Engage in Forced Labor; Conspiracy to Commit Money Laundering; and Tampering with a Witness;
- Linda Jean Facundo, 36, of Tifton, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Gumara Canela, 34, of Alma, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; 14 counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Daniel Merari Canela Diaz, 24, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering; and,
- Carla Yvonne Salinas, 28, of Laredo, Texas, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering.
The charges of Conspiracy to Engage in Forced Labor, and Forced Labor, each carry statutory penalties of up to life in prison, while the charges of Conspiracy to Commit Mail Fraud, Mail Fraud, Money Laundering Conspiracy, and Tampering with a Witness each carry statutory penalties of up to 20 years in prison. Each of the charges also include substantial financial penalties and periods of supervised release after completion of any prison term. There is no parole in the federal system.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Operation Blooming Onion also is designated as a Priority Transnational Organized Crime Cases.
Agencies investigating Operation Blooming Onion include Homeland Security Investigations; U.S. Citizenship and Immigration Services, Fraud Detection and National Security; the U.S. Department of Labor Office of Inspector General, and Wage and Hour Division; U.S. Department of State’s Diplomatic Security Service; the FBI; the U.S. Postal Inspection Service; U.S. Customs and Border Protection; and the U.S. Marshals Service, with assistance from the Georgia National Guard; the Georgia Bureau of Investigation; the Georgia State Patrol; the Coffee County Sheriff’s Office; the Chatham County Sheriff’s Office; the Tattnall County Sheriff’s Office; the Bacon County Sheriff’s Office; and the Tift County Sheriff’s Office. The case is being prosecuted for the United States by Assistant U.S. Attorney and Human Trafficking Coordinator Tania D. Groover, and Assistant U.S. Attorney and Criminal Division Deputy Chief E. Greg Gilluly Jr., and Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Recovery Unit.
If you believe you have information about a potential trafficking situation call the National Human Trafficking Hotline at 1-888-373-7888. Anti-Trafficking Hotline Advocates are available 24/7 to take reports of potential human trafficking. All reports are confidential and you may remain anonymous. Interpreters are available. The information you provide will be reviewed by the National Hotline and forwarded to specialized law enforcement and/or service providers where appropriate.
Hudson County Man Sentenced to 27 Months in Prison for Using Fake Passports to Obtain $450,000 in Fraudulent Bank WithdrawalsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 27 months in prison for conspiring to use fake passports to open accounts at banks into which he and others deposited phony IRS refund checks, causing the banks to lose approximately $450,000, Acting U.S. Attorney Rachael A. Honig announced.
Mamadou Diallo, 44, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of bank fraud conspiracy and one count of false use of a passport. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2012 through December 2018, Diallo and others conspired to fraudulently obtain money from the victim banks. They created false passports by affixing their own pictures onto passports bearing others’ names. The conspirators opened fraudulent bank accounts at the banks using the doctored passports as photo identification. Then they deposited fraudulent IRS refund checks and withdrew the funds from ATM and teller terminals. The banks lost over $450,000.
In addition to the prison term, Judge Hayden sentenced Diallo to three years of supervised release, and ordered him to pay $150,052 in restitution.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the U.S. Department of Treasury-Office of Inspector General, under the direction of Inspector General Richard K. Delmar; and the New York State Department of Taxation and Finance, under the direction of Acting Commissioner Amanda Hiller and Director of Internal Affairs Brian Hickey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the Special Prosecutions Division in Newark.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 18, 2021 MARIO RENE REYES-CARDONA, age 51, was charged in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, MARIO RENE REYES-CARDONA (“REYES-CARDONA”), reentered the United States after he was previously deported in December 2013. If convicted, REYES-CARDONA faces a maximum term of imprisonment of up to two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one (1) year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Home health agency to pay $4.2 million to settle False Claims Act allegationsRead the Press Release
ATLANTA – PruittHealth, Inc. and affiliated entities (“Pruitt”) have agreed to pay $4.2 million to resolve allegations that they submitted claims for home health services that were not covered by the Medicare and Medicaid programs, and that they failed to refund overpayments that they had received from Medicare and Medicaid in a timely manner.
“The Medicare and Medicaid programs depend on providers to submit only those claims that are eligible for reimbursement and to promptly notify the programs if they receive payments to which they are not entitled,” said U.S. Attorney Kurt R. Erskine. “Healthcare providers must not place their own financial well-being ahead of their duties under the Medicare and Medicaid programs.”
“When health care entities seek to boost their profits through improper billing, they undermine the trust taxpayers extend to the health care industry,” said Special Agent in Charge Derrick L. Jackson. “This settlement demonstrates the commitment that our agency and its law enforcement partners have to pursuing those who seek to improperly enrich themselves at the expense of federal health care programs.”
“When funds from programs like Medicare and Medicaid are not used as intended, taxpayers and people who are entitled to those funds suffer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This settlement is the result of the FBI’s commitment to work with our federal and state partners to ensure that federally funded healthcare programs are not abused by providers.”
Home health services consist of skilled care provided to homebound beneficiaries for the treatment of acute illnesses and injuries. As a result of widespread fraud in the submission of home health claims, Medicare and Medicaid began requiring referring physicians to certify in writing, after a face-to-face visit with the beneficiary, that the beneficiary was homebound and needed the skilled care. Medicare and Medicaid also require the physician to devise and sign a plan of care for the beneficiary.
The Government alleges that from January 1, 2011 through June 30, 2012, Pruitt knowingly submitted claims to Medicare and Medicaid for home health services that were not eligible for reimbursement because, among other things, they did not have the required face-to-face certifications or plans of care, and they did not document the beneficiary’s homebound status or need for the home health services. The Government further alleges that Pruitt learned that it had received payments for home health services to which it was not entitled, but failed to disclose its receipt of the overpayments, or refund the overpayments to Medicare and Medicaid in a timely manner.
In reaching its settlement with Pruitt, the Government took into account documents produced by Pruitt indicating that Pruitt subsequently took steps to improve its compliance with the home health requirements of the Medicare and Medicaid programs, including the retention of an outside consultant in January 2013 to conduct an audit of its home health claims, the implementation of a pre-bill review of home health claims between February 2013 and August of 2013, and the implementation of quarterly audits of its home health claims (with more frequent audits as needed) beginning in September 2013 through the present. Pruitt voluntarily produced the results of its 2013 audit to the Government during the investigation. Although the Government has taken these steps into consideration, this is not an indication or concession as to the sufficiency of these compliance measures.
This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Tina Peery (the Relator) under the qui tam or whistleblower provisions of the False Claims Act: United States ex rel. Tina Peery v. UHS-Pruitt Holdings, Inc., et al., No. 1:14-cv-01016-AT. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The Relator will receive over $700,000.00 from the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services Office of Inspector General, The Federal Bureau of Investigation, and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorneys Neeli Ben-David and Anthony DeCinque, as well as Georgia Assistant Attorney General Sara Vann.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hanover Man Pleads Guilty to Distribution of Fentanyl, Cocaine, and Marijuana Shipped Through the Mail from California to MarylandRead the Press Release
Baltimore, Maryland – Dwight Antonio Pitts, age 47, of Hanover, Maryland, pleaded guilty on November 19, 2021, to charges related to his participation in a drug distribution conspiracy involving large amounts of fentanyl, cocaine, and marijuana, shipped through the U.S. Mail from California to Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
According to his guilty plea, since November 2019, the Maryland State Police (“MSP”), Drug Enforcement Administration (“DEA”), United States Postal Inspection Service (“USPIS”) were investigating a drug trafficking conspiracy involving Pitts, Michael Fisher (a.k.a. Mark Wilson), and others, who were distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. Investigators used court-authorized wiretaps to intercept calls and other communications between Pitts, Fisher, and other conspirators in which they discussed drug distribution with each other and with other individuals. Investigators also conducted surveillance of drug transactions conducted by both Pitts and Fisher.
During the conspiracy, Pitts and Fisher traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Pitts or Fisher used the U.S. Mail to ship the narcotics back to Maryland for distribution.
Between May and August 2020, U.S. Postal Inspectors interdicted several parcels from the mail, including two parcels bound for an address in Hyattsville, Maryland that was identified as a location leased by Pitts. On August 13, 2020, a search warrant was authorized for the two parcels. Law enforcement recovered more than two kilograms of cocaine from one parcel and more than two kilograms of fentanyl from the other parcel. Investigators obtained video surveillance from the El Segundo Branch Post Office, from which the parcels had been mailed. The video showed Pitts at the post office at the time the parcels were mailed.
On August 13, 2020, investigators obtained consent to search Co-Conspirator 2’s residence in Los Angeles after watching Fisher transfer a box containing approximately $190,020 in cash to Co-Conspirator 2’s car. Law enforcement recovered from the residence two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained more than $193,980 in narcotics proceeds, not including the approximately $190,020 Fisher provided to Co-Conspirator 2 earlier that day.
On August 17, 2020, law enforcement executed search warrants at the six locations in Maryland associated with Pitts and Fisher and at a residence in Las Vegas, Nevada. Investigators seized 15 firearms—6 firearms from locations associated with Pitts and 9 firearms from locations associated with Fisher—along with kilogram quantities of cocaine, fentanyl, and marijuana. In total, during the investigation law enforcement seized approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Pitts admitted was proceeds from the sale of narcotics.
As detailed in the plea agreement, additional evidence, including evidence seized from searches on cellular phones of conspirators and CCTV footage, showed that between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles area Post Offices to locations in Maryland.
Pitts admitted in his plea agreement that the amount involved in the conspiracy attributable to him as a result of his own conduct and the conduct of other conspirators reasonably foreseeable to him is approximately 8.5 kilograms of fentanyl; approximately 150 kilograms of cocaine; and approximately 50 kilograms of marijuana.
Pitts and the Government have agreed that, if the court accepts the guilty plea, Pitts will be sentenced to between 12 and 15 years in federal prison. U.S. District Judge Stephanie A. Gallagher scheduled sentencing for March 1, 2022, at 11:00 a.m.
Co-defendant Michael Fisher, a.k.a. Mark Wilson, age 47, of Laurel, Maryland, pleaded guilty to the same charges and is scheduled to be sentenced on February 22, 2022, at 2:00 p.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The overdose crisis continues to devastate our state and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the website for United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness here.
United States Attorney Erek L. Barron commended the MSP, USPIS, and DEA for their work in the investigation and recognized the Los Angeles Police Department, the Los Angeles and Las Vegas DEA, and the USPIS Phoenix Division-Las Vegas, Nevada for their assistance. Mr. Barron thanked Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who are prosecuting the case.
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Hanford Man Sentenced to 3 Years in Prison for Manufacturing and Distributing Machine GunsRead the Press Release
FRESNO, Calif. — Jose Moreno, 26, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to three years and one month in prison for illegally distributing a machine gun, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 22, 2019, Moreno sold a machine gun to an individual in a parking lot in Hanford. Shortly after the meeting, the individual departed in his car and law enforcement officers conducted a traffic stop. During a search of the car, officers found a fully automatic handgun with two 16-round magazines. Moreno’s involvement in this machine gun sale and several others was uncovered during a months-long wiretap investigation into the Nuestra Familia Prison Gang operating in Kings and Tulare Counties. The investigation revealed that Moreno was manufacturing and selling machine guns to street gang members.
Moreno pleaded guilty on Aug. 30, 2021. He and co‑defendant Eric Lopez Mercado, 27, of Lemoore, were indicted by a federal grand jury on Nov. 14, 2019. Charges are pending against Mercado. The charges against Mercado are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kings County Gang Task Force; the California Department of Justice’s Special Operations Unit; the California Department of Corrections and Rehabilitation; and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Katherine E. Schuh, and Kimberly A. Sanchez are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Government Contractor Agrees to Pay Nearly $3.5 Million to Resolve Allegations it Overcharged U.S. NavyRead the Press Release
BOSTON – Charles Stark Draper Laboratory, Inc. (Draper), a Cambridge-based non-profit research company and defense contractor, has agreed to pay nearly $3.5 million to resolve allegations that it improperly overcharged U.S. Navy contracts. Draper, among other things, helps develop weapons systems for the U.S. Navy.
The settlement resolves allegations that Draper improperly overcharged the government under federal acquisition regulations for certain overhead costs. According to the settlement agreement, an audit of Draper’s 2016 fiscal year costs charged to the government found, among other things, that Draper improperly billed the government for costs associated with internal projects that Draper called “Opportunity Investments.” Many Opportunity Investment projects were not of interest to the government, or Draper lacked sufficient documentation to justify the costs. The audit also found that Draper lacked sufficient internal accounting controls concerning Opportunity Investments. When the Department of Defense requested additional information about the costs flagged by the audit, Draper, for months, did not reveal that it lacked documentation to support charging some of the Opportunity Investments to the government.
“Contractors responsible for supplying and supporting our armed forces are required to follow many rules designed to protect both our military and the taxpayers,” said Acting United States Attorney Nathaniel R. Mendell. “Our office monitors government contractors and – where appropriate – we will hold accountable those who fail to operate within the rules. This is our way of making sure taxpayers can trust that their money is going toward legitimate government-supported purposes and not overcharges.”
“Draper Lab’s overcharging on Navy contracts wasted valuable taxpayer money and undermined the integrity of the Department of the Navy’s procurement process,” said Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), Northeast Field Office. “NCIS and our law enforcement partners remain committed to investigating contracting irregularities that diminish the operational readiness and warfighter superiority of the Navy and Marine Corps.”
“Protecting the integrity of the procurement process is a top priority for the Department of Defense (DOD) Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Patrick J. Hegarty, Special Agent in Charge of DCIS, Northeast Field Office. “The settlement agreement announced today is the result of a joint investigative effort and demonstrates the DCIS’ ongoing commitment to work with our law enforcement partners and the U.S. Attorney’s Office to investigate allegations of cost mischarging on DOD contracts.”
Acting U.S. Attorney Mendell, NCIS SAC Wiest and DCIS SAC Hegarty made the announcement today. Assistant U.S. Attorneys Brian M. LaMacchia and Evan Panich of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Georgia man sentenced to more than eight years in prison for filing false liens against federal government officialsRead the Press Release
ATLANTA - Hakim Amal Archible has been sentenced for filing false liens against federal government officials, including former IRS Commissioner John Koskinen and former U.S. Treasury Secretary Jacob Lew.
“Harassing federal officials through the filing of false liens is serious criminal conduct,” said U.S. Attorney Kurt R. Erskine. “Congress enacted the retaliatory lien statute to address the problem of frivolous retaliatory liens, too often used by tax defiers and sovereign citizens to obstruct the tax laws and harass government employees.”
“TIGTA’s statutory mission includes investigating individuals who interfere with the lawful collection of taxes by filing frivolous liens against public officials,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to interfere with IRS employees engaged in the performance of their official duties will be aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office in working with TIGTA to protect the integrity of Federal tax administration.”
According to U.S. Attorney Erskine, the charges and other information presented in court: In 2014 and 2015, while imprisoned in Henry County, Georgia, for unrelated crimes, Archible filed or attempted to file false liens against the real and personal property of government officials. Specifically, the testimony showed that on October 22, 2014, the IRS issued a letter to Archible informing him that he would be subject to a $5,000 penalty for taking a frivolous position in his 2013 tax return. Archible, aided and abetted by others, filed false UCC lien documents in the Fayette County Clerk’s Office that named IRS Commissioner John Koskinen as debtor and listed himself as the secured party creditor. In the documents, Archible indicated that Koskinen was responsible for the $5,000 tax penalty. He also had the UCC filing, and other IRS forms, mailed directly to the IRS.
On December 9, 2014, Archible, aided and abetted by others, filed UCC lien documents naming former U.S. Treasury Secretary Jacob Lew as the debtor and himself as the secured party creditor. While the collateral identified for the lien is nonsensical, the description of the subject real estate included, among other things, a $100 billion chargeback order. On August 5, 2015, Archible, aided and abetted by others, filed another false UCC lien against Jacob Lew, which named Secretary Lew as the debtor and Archible as the secured party. The collateral for the lien included, among other things, a $10 billion registered security.
In addition to the false liens filed against the federal governmental officials, Archible also filed false liens against local officials in Georgia, including the Chief Judge of Henry County Superior Court, and the former Clerk of Henry County Superior Court.
Witnesses testified that the lien filings are publicly available and can be accessed through an internet search. A court order is required to remove the liens from the public portal. The victims testified that they were concerned that these liens could affect their credit or their property and that they felt threatened and harassed by the conduct.
On July 2, 2021, a jury found Archible guilty of three counts of filing and attempting to file false and retaliatory liens against the real and personal property of certain employees of the federal government, in violation of 18 U.S.C. § 1521, and one count of obstructing the due administration of the IRS, in violation of 26 U.S.C. § 7212.
Hakim Amal Archible, 38, of Hampton, Georgia, was sentenced November 16, 2021, by U.S. District Judge Thomas W. Thrash, Jr., to eight years, nine months in prison to be followed by three years of supervised release.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Walton Beach Man Pleads Guilty to A Scheme to DefraudRead the Press Release
PENSACOLA, FLORIDA – Stephen M. Alford, 62, of Fort Walton Beach, Florida, pled guilty today to one count of wire fraud related to his attempt to illegally obtain $25 million, purportedly in exchange for securing a Presidential Pardon. The plea was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
At his guilty plea, Alford admitted that, between March 16, and April 7, 2021, he engaged in a scheme to defraud the victim out of $25 million based upon Alford’s false promises and guarantees to secure a Presidential Pardon for a family member of the victim. The scheme involved a series of meetings and text message exchanges between Alford and the victim, as well as undercover recordings arranged by the Federal Bureau of Investigation. During the exchanges, Alford repeatedly promised the victim that Alford had access to the current President of the United States.
Sentencing in this case is currently set for February 16, 2022, at 9:00 a.m., at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers. Alford faces up to 20 years’ imprisonment to be followed by a term of supervised release.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields are prosecuting this case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Myers Armed Career Criminal Sentenced to 18 Years in Prison for Illegally Possessing FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Richard James Bassett, Jr. (47, Fort Myers) to 18 years in federal prison for possessing a firearm as a convicted felon and for violating the conditions of supervised release from a prior federal drug conviction. Bassett had pleaded guilty on July 16, 2021.
According to court documents, on November 14, 2019, law enforcement officers observed Bassett entering an apartment in Fort Myers, Florida, shortly before the officers executed a search warrant on that apartment. Inside the apartment, officers observed Bassett standing in the kitchen area near a black and grey speckled backpack that he was seen carrying when he entered the apartment. Officers discovered quantities of different narcotics, including cocaine, in the kitchen area and found a loaded firearm in the backpack. Subsequent forensic analysis of the firearm linked it to Bassett.
As a previously convicted felon, Bassett is prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Trent Reichling.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Dodge Man Pleads Guilty to Meth DealingRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on November 18, 2021, in federal court in Sioux City.
Demarcus Foy, 31, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine.
At the plea hearing, Foy admitted that between April 2015 and continuing to on or about June 2020, he and others distributed more than 45 kilograms of methamphetamine. Also, on four separate occasions during 2019, Foy distributed a total of over 100 grams of pure methamphetamine to individuals cooperating and under the supervision of law enforcement in Fort Dodge, Iowa. Foy often received from six to ten pounds of methamphetamine at a time from his source which he further distributed.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Foy remains in custody of the United States Marshal pending sentencing. Foy faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3021. Follow us on Twitter @USAO_NDIA.
Former off-duty federal law enforcement officer sentenced for threatening three Blackfeet tribal employees with assault rifleRead the Press Release
GREAT FALLS — A former off-duty federal law enforcement officer who admitted to misdemeanor assault for pointing an assault rifle at three Blackfeet tribal employees who were testing water on his property was sentenced today to five years of probation and ordered to pay $10,626 restitution, U.S. Attorney Leif M. Johnson said.
Harrison Garrett Alvarez, 30, of Cut Bank, who was a Customs and Border Protection officer at the time of the offense, pleaded guilty in July to three counts of simple assault.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that on July 24, 2019, three employees of the Blackfeet Tribe’s Environmental Office went to Alvarez’s property near Cut Bank and within the Blackfeet Indian Reservation to test water in Cut Bank Creek. The victims, who are tribal members, traveled by truck past Alvarez’s house to the creek. The trip was the victims’ fourth time that season to the testing site, having sought, and they believed received, permission for the testing from Alvarez’s wife.
While the victims were collecting water samples, a rifle shot rang out. The victims saw Alvarez approaching, pointing an assault rifle at them and yelling profanities. Alvarez demanded to know what they were doing and who had given them permission to be there. When the victims explained that his wife had given them permission, Alvarez disputed that fact. Even after the victims told him they would leave, Alvarez, while still leveling the rifle at them, ordered them closer and demanded they drop their equipment. When Alvarez finally allowed the victims to leave, he told them that now they knew he “shoots first, asks questions later.”
All three victims believed Alvarez was going to shoot them and that they were going to die. All three victims addressed the Court at sentencing and talked about the lasting effect this assault has had on them. “He has taken my outdoor lifestyle away from me,” one of the victims told the Court. “I don’t fish. I don’t go get wood. No more hiking. No more bow-hunting. No more four-wheeling.”
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case, which was investigated by the Glacier County Sheriff’s Office, FBI and Blackfeet Law Enforcement Services.
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Former Springfield Man Sentenced for Charges Related to Sham MarriageRead the Press Release
BOSTON – A former Springfield man was sentenced today in connection with entering into a sham marriage in order to obtain immigration benefits for another individual.
Phu Thanh Huynh, 33, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year of probation. Huynh was also ordered to pay forfeiture of $20,000. On Aug. 4, 2021, Huynh pleaded guilty to one count each of conspiracy, immigration fraud and making false statements.
On or about Sept. 28, 2013, Huynh married a Vietnamese national, referred to as Jane Doe, solely for the purpose of obtaining immigration benefits for Doe. Huynh and Doe never lived together after getting married. In or about late 2013 or early 2014, a co-conspirator paid Huynh $20,000 in cash for engaging in the sham marriage. On approximately Nov. 7, 2013, Huynh filed a false petition with the U.S. Citizenship and Immigration Services (USCIS) to classify Doe as his spouse for immigration purposes. On approximately May 3, 2017, Huynh made various false statements to a USCIS officer concerning his marriage to Doe, including that they spoke to each other almost every day.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Julian Canzoneri of Mendell’s Springfield Branch Office prosecuted the case.
Former Richmond Attorney Sentenced for Obstructing Investigation of Bankruptcy EmbezzlementRead the Press Release
RICHMOND, Va. – A former Richmond attorney was sentenced today to 44 months in prison and ordered to pay a $10,000 fine for obstructing an official proceeding in connection with his attempts to thwart an investigation into his own fraudulent conduct as a bankruptcy trustee.
According to court documents, Bruce H. Matson, 64, misled the U.S. Trustee’s Office in 2019 when he made false statements in response to allegations that he misappropriated funds as a court-appointed trustee in the bankruptcy of LandAmerica Financial Group (LFG). A federal investigation into those allegations uncovered multiple instances of Matson’s embezzlement from the LFG Trust between 2015 and 2018, totaling approximately $800,000 in misappropriated funds.
Additionally, Matson manipulated the budget for LFG’s post-bankruptcy wind-down period so that he could divert residual funds to himself and others after the close of the LFG bankruptcy, when he would no longer be subject to scrutiny by LFG creditors and the Bankruptcy Court. In particular, Matson misrepresented the amount of money needed for the wind-down process and obscured the amount of money actually retained in Trust accounts. In order to access these residual funds, Matson also inserted language into the budget the night before it was filed with the Bankruptcy Court. This language seemingly gave Matson the authority to pay discretionary bonuses using residual funds. Matson knew the last-minute language included in the budget contradicted other court filings, but he instructed other trust professionals not to amend the filings, including the proposed Final Decree ultimately endorsed by the Bankruptcy Court in December 2015. As a result of this conduct, Matson was able to siphon away more than $3.2 million for personal payments to himself and others, depleting the Trust account more than two years before the end of the wind-down period.
The federal investigation also uncovered an unrelated instance of Matson embezzling approximately $23,000 in 2016 from the estate of Forefront Capital, a defunct futures broker for which Matson served as receiver and debtor-designee. In total, between 2015 and 2019, Matson wrongfully obtained more than $4 million in bankruptcy-related assets.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, 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 John A. Gibney, Jr.
The U.S. Trustee Program provided significant assistance in this case.
Assistant U.S. Attorney Thomas A. Garnett and former Assistant U.S. Attorneys Katherine Lee Martin and Kevin S. Elliker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-79.
Former President of Philadelphia Wholesale Produce Market Sentenced to over 10 Years in Prison for Stealing $7.8 Million from the CompanyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Caesar DiCrecchio, 60, of Voorhees, NJ, was sentenced to ten years and one month in prison, three years of supervised release and ordered to pay more than $8 million in restitution by United States District Court Judge Cynthia M. Rufe for defrauding the Philadelphia Wholesale Produce Market of over $7.8 million.
In April 2021, the defendant pleaded guilty to two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering conspiracy, one count of aggravated identity theft, and four counts of tax evasion, all of which allegedly caused more than $7.8 million in losses to the wholesale produce business in South Philadelphia.
DiCrecchio, the former President and CEO of the Produce Market, defrauded the Market by using company funds to pay $1.9 million in rent on his Stone Harbor, New Jersey shore house; converting into cash $1.1 million in checks drawn on the Market’s bank account and using the cash for his own benefit; causing $1.7 million in checks to be issued from the Market operating account payable to his friends or relatives; causing the Market to pay for the defendant’s personal credit card expenditures; converting $320,000 in checks that were payable to the Market and cashing them for his own benefit; skimming $2.6 million in cash from the pay gate at the Market’s parking lot, which he used to pay Market employees ‘under the table’ while keeping a substantial portion for his own use; and using Market funds to provide a $180,000 loan to a Market vendor, which the vendor repaid directly to DiCrecchio. The defendant concealed these expenditures in the Market’s books and records by directing that these payments be reflected as legitimate business expenditures, for example: notated as maintenance, snow removal, insurance, legal fees and other false expenditure entries.
DiCrecchio committed aggravated identity theft by cashing checks at a currency exchange using the name of an unwitting victim as the payee. Further, DiCrecchio conspired to engage in money laundering by agreeing with two unnamed individuals to conduct repeated money laundering transactions using money orders drawn on Market accounts and cashed at a currency exchange so that he could pay the rent at his shore house. In total, DiCrecchio laundered approximately $319,736 by purchasing money orders at the currency exchange using Market funds.
DiCrecchio also willfully evaded federal income tax over several years, by failing to report more than $2.1 million in income for tax years 2014 through 2017. DiCrecchio failed to report as income the proceeds of his fraud on the Market, as well as a car allowance, a pension allowance, and consulting income that he received from the Market.
“As the President and CEO, DiCrecchio had a fiduciary duty to steward the Philadelphia Wholesale Produce Market honestly,” said U.S. Attorney Williams. “Instead, he stole small amounts here and there from various sources over many years in an attempt to hide the enormous scale and severity of his fraud: a more than $7.8 million loss. Our Office is committed to prosecuting this type of complicated financial fraud so that justice can be served for all victims.”
“For years, Caesar DiCrecchio used the Philadelphia Wholesale Produce Market like his own ATM, to the tune of almost $8 million,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “I’d call that wholesale fraud. Holding DiCrecchio responsible for his crimes is imperative, to send the message that stealing business funds for personal use isn’t such easy money after all.”
“Instead of accurately filing and paying his fair share of taxes, Mr. DiCrecchio chose to hide his income and use his business as his personal ATM,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Justice has been served today, as Mr. DiCrecchio is sentenced to federal prison.”
The case was investigated by the Federal Bureau of Investigation’s Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.
Former Memphis Attorney Sentenced in Scheme to Defraud ClientsRead the Press Release
Memphis, TN – Former Memphis Attorney George E. Skouteris, Jr. 59, was sentenced to 30 months imprisonment in a scheme to defraud clients. Acting U.S. Attorney Joseph C. Murphy, Jr., announced the sentence today.
According to information presented in court, in April of this year, a jury found Skouteris guilty of seven counts of bank fraud following a four-day trial. Between 2007 and March 2013, Skouteris engaged in a scheme to defraud his clients by settling cases without notifying them and forging their endorsements on settlement checks made jointly payable to him and the client. Skouteris then deposited the checks to bank accounts he maintained at TrustOne Bank.
On November 18, 2021, United States District Judge John T. Fowlkes, Jr. sentenced Skouteris to 30 months imprisonment to be followed by three years supervised release. Judge Fowlkes also ordered the parties to appear in court on November 30, 2021, to provide further information about the amount of restitution to be awarded to the victims. There is no parole in the federal system.
This case was investigated by the Tennessee Bureau of Investigation and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Carroll L. André III and David N. Pritchard prosecuted the case on behalf of the government.
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Former Falmouth Resident Sentenced for Accessing Child PornographyRead the Press Release
PORTLAND, Maine—A former Falmouth resident was sentenced today in U.S. District Court in Portland for accessing child pornography with intent to view, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge George Z. Singal sentenced Aaron Cassidy, 49, to two years in prison and five years of supervised release. He was also ordered to pay a $5,000 assessment applicable to non-indigent defendants in child sexual exploitation cases. He pleaded guilty on July 20, 2021.
According to court records, in March 2015, agents with Homeland Security Investigations were investigating the sharing of child pornography using Ares, a peer-to-peer file-sharing program. They downloaded a child pornography video from an internet protocol address that was determined to be assigned to a residence in Falmouth. Agents obtained a search warrant for the residence and executed it in May 2015. They found a laptop computer in Cassidy’s bedroom that was later found to contain evidence of the Ares file-sharing program, as well as images and videos of minors engaged in sexually explicit conduct.
In imposing sentence, Judge Singal noted that the children depicted in child pornography images often suffer emotional and physical effects for the rest of their lives, as a record of their sexual abuse is permanently available online.
Homeland Security Investigations investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former Corrections Officer at the Iowa Medical Classification Center Sentenced to Federal Prison for False Declarations Before a Grand JuryRead the Press Release
DAVENPORT, Iowa – An Iowa City man, Lashaun Calvin Lacy, age 44, was sentenced on Wednesday, November 17, 2021, by United States District Court Chief Judge John A. Jarvey to three months in federal prison for providing false declarations before a grand jury. Lacy was ordered to serve one year of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
According to court documents, on or about July 8, 2020, Lacy was subpoenaed to testify before the grand jury in the Southern District of Iowa about another individual regarding a health care fraud and false statements investigation. The subject of Lacy’s testimony was where he was living from 2010-2019. During his testimony he provided false information to the grand jury.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Department of House and Urban Development, Office of the Inspector General investigated the case along with the Iowa Department of Inspection and Appeals.
Felon Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
HUNTINGTON, W.Va. - Jonathan Baker, 37, of Huntington, was sentenced today to four years and nine months in federal prison for being a felon in possession of a firearm.
According to court documents and statements made in court, Baker previously admitted that on March 2, 2021, officers with the Huntington Police Department executed a search warrant at an apartment on 26th Street in Huntington. During a search of the residence, officers found a firearm on top of a nightstand. Baker admitted that he had possessed the firearm and that he knew he was prohibited from possessing the firearm because of a 2011 felony drug conviction in Bibb County, Georgia.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00056.
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Felon Sentenced to 12 Years in Federal Prison for Armed Carjacking’sRead the Press Release
Memphis, TN – Cowan Hill, 44, has been sentenced to 151 months in federal prison for carjacking’s and for brandishing a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on December 8, 2019, the Memphis Police Department responded to a carjacking on Cherry Road. The victim advised that while warming his 2004 Lincoln Aviator a male approached and pointed a gun at him and told him to get out of the car. The suspect struck the victim several times in the head and neck. The victim blew the horn to alert his wife who called 911. As the victim ran into the house, the suspect fled the scene in the car.
On December 15, 2019, officers with the Memphis Police Department responded to a carjacking at Shell gas station on Winchester Road. The victim reported as he was pumping gas, an older male pulled him from the driver’s seat of his 2011 Kia Sorento and threatened to kill him. The victim attempted to fight off the suspect who repeatedly struck him and yelled, "I’ll kill you. I'll kill you." The suspect eventually gained control of the car and sped off, dragging the victim twenty-five to thirty feet across the lot. The victim had visible injuries to his head, neck, arms, and legs and had to be treated by paramedics. The violent assault and theft were caught on the store's surveillance video.
During the investigation, both victims identified Cowan Hill as the male who assaulted them.
On July 13, 2021, Hill pled guilty to committing both crimes. As a result of his criminal history, including a 2016 conviction for carjacking, Hill is prohibited by federal law from possessing firearms or ammunition. He was on parole at the time of these offenses.
On November 18, 2021, U.S. District Judge Thomas L. Parker sentenced Hill to 151 months incarceration to be followed by 5 years of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department.
Assistant U.S. Attorneys Raney Irwin and Wendy Cornejo prosecuted this case on behalf of the government.
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Federal Jury Convicts Norman Car Dealership Executives of Wire Fraud Conspiracy, Forgery, and Identity TheftRead the Press Release
OKLAHOMA CITY – On Friday, November 19, 2021, a federal jury convicted BOBBY CHRIS MAYES, 49, CHARLES GOOCH, 63, and COURTNEY WELLS, 36, all residents of Norman, of multiple counts of wire fraud, conspiracy, issuing forged securities, and aggravated identity theft, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On September 16, 2020, a federal grand jury returned an indictment alleging that from January 2014 to March 2019, Mayes, Gooch, and Wells used their positions as co-owners of the Big Red Dealerships (Big Red Sports/Imports, Big Red Kia, Norman Yamaha, Norman Mitsubishi, and Mayes Kia) to engage in a conspiracy to commit wire fraud in which they sought to obtain millions of dollars of loan proceeds. The indictment further alleged that the defendants made materially false statements and omissions to lenders about the type, source, and amount of borrowers’ down payments or vehicle trade-ins, and bribed at least one loan officer.
The trial began on November 2, 2021, before Senior United States District Judge Stephen P. Friot, and the federal jury returned its verdict on Friday, November 19, 2021. At trial, the jury heard testimony that the Big Red Dealerships used advertisements to target potential customers with poor credit and that Mayes, Gooch, and Wells then fraudulently induced lenders to approve loans for such customers by documenting that the customers provided cash down payments and/or trade-in vehicles when that was untrue. Twelve different Big Red Dealership customers testified about their experiences buying cars at the Big Red Dealerships, along with several former employees and representatives of several lenders. In some circumstances, the purported cash down payment was simply fictitious, and the Big Red Dealerships referred to those cash down payments as “King Cash” on internal documents. The jury also heard testimony that in late 2014, one lender discovered these fake cash down payments, and Mayes emailed threats to the CEO of that lender in an effort to stop the lender from further investigating the Big Red Dealerships.
Evidence at trial also showed that from February 2015 until late 2017, the Big Red Dealerships continued to document fictitious cash down payments for lenders. During that time period, for at least 519 customers, the down payment was purportedly based on a pawned item provided to Norman Pawn & Gun, a pawn shop owned by Gooch and located in a building owned by Mayes, although it was never open for business and never had any employees. After loan proceeds were received from lenders, Big Red Dealership employees generated checks to the customers, forged the customers’ signatures on the backs, deposited the checks in Big Red Dealership accounts, and fully reimbursed Norman Pawn & Gun for the purported down payments. The jury also heard that the Big Red Dealerships falsely documented vehicle trade-ins for lenders to approve loans. On at least 542 occasions, the vehicle was never provided to the Big Red Dealerships and a separate transaction was documented—unbeknownst to the lender—in which the trade-in vehicle was resold to the customer for a dollar. Finally, the jury heard testimony that at least one lender approved questionable loans—for up to two to three times’ the value of vehicles being purchased—after a Big Red Dealership manager gave cash bribes to a loan officer and the Big Red Dealerships provided fake invoices to justify the inflated prices.
The jury convicted all three defendants of conspiring to commit wire fraud, alleged as Count 1 of the indictment. The jury convicted Mayes and Gooch with 12 counts of wire fraud based on false information sent to lenders for 12 specific customers, as alleged in Counts 2-13. The jury convicted Wells of six of those counts of wire fraud. For each conviction charged as Counts 1-13, each defendant faces up to 20 years in prison and a $250,000.00 fine.
The jury convicted all three defendants of six counts of uttering forged securities based on Norman Pawn & Gun checks forged by Big Red Dealership employees, as alleged in Counts 14-19 of the indictment. For Counts 14-19, each defendant faces up to 10 years in prison and a $250,000 fine.
The jury convicted all three defendants of six counts of aggravated identity theft, as alleged in Counts 20-25 of the indictment, for using the signatures of six customers without lawful authority. For Counts 20-25, each defendant faces a mandatory term of imprisonment of two years to run consecutive to any other term of imprisonment and a $250,000 fine. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by FBI’s Oklahoma City Field Office. Assistant U.S. Attorneys K. McKenzie Anderson and Thomas Snyder are prosecuting the case.
Reference is made to court filings for further information.
Federal Grand Jury Indicts Woman for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – A federal grand jury in New Orleans, Louisiana returned a four-count indictment on November 19, 2021 charging a woman for violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
According to court documents, MAGALI CASTILLO-PADRON, age 30, is charged in Count 1 with possession with intent to distribute a quantity of a mixture of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). In Count 2, CASTILLO-PADRON is charged with possession of a firearm by an illegal alien, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(2). In Count 3, CASTILLO-PADRON is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 4, CASTILLO-PADRON is charged with reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
If convicted of Count 1, CASTILLO-PADRON faces a mandatory minimum sentence of 10 years and up to life imprisonment, up to a $5,000,000 fine, at least 5 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 2, CASTILLO-PADRON faces a maximum sentence of 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 3, CASTILLO-PADRON faces a mandatory minimum consecutive 5 years imprisonment, up to life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 4, CASTILLO-PADRON faces up to 2 years of imprisonment, up to a $250,000 fine, up to 1 year supervised release, and a $100 mandatory special assessment fee.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, the Kenner Police Department and the Jefferson Parish Sheriff’s Office. The prosecution of this case is being handled by Assistant United States Attorney Christopher Usher.
Federal Grand Jury Indicts New Orleans Man for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that STEPHONE BRIDGES, age 32, a resident of New Orleans, Louisiana, was charged on November 19, 2021 in a one-count indictment for being a convicted felon in possession of a firearm. BRIDGES was charged with having a Glock semi-automatic pistol on or about August 15, 2021.
If convicted, BRIDGES faces up to ten (10) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Federal Bureau of Investigation. Assistant United States Attorney Rachal Cassagne is in charge of the prosecution.
Fairbanks Man Sentenced to 12 Years in Federal Prison for Stalking and Murder for Hire PlotRead the Press Release
FAIRBANKS – A Fairbanks man was sentenced to 12 years in federal prison and three years of supervised release by Senior U.S. District Court Judge Ralph R. Beistline for stalking and attempting to arrange a murder for hire.
According to court documents and evidence presented at his sentencing, Roger Keeling, 55, devised and solicited a murder for hire plot targeting his former girlfriend while he was in custody on stalking charges. He was indicted in January 2021 and found guilty by a federal jury in August 2021.
At sentencing, the United States underscored the physical, emotional and mental abuse suffered by Keeling’s former girlfriend. In both her testimony and her victim impact statement, she described the terrifying and traumatic ordeal. As she became increasingly frightened by Keeling’s actions and mental state, she left him. He tried winning her back but when that didn’t work, his anger began to consume him as he stalked her and found someone to murder her.
In October 2020 Keeling placed his hands around his girlfriend’s neck, told her he should rip her heart out and threatened to burn her house down. Keeling pleaded guilty to a misdemeanor assault charge in state court. The victim applied for and was granted a Domestic Violence Protective Order (DVPO) and it was served on Keeling before his release on the assault charges. Over the next six weeks, Keeling was arrested – and released by the state court – for violating this DVPO multiple times in an escalating pattern that included following the victim, slashing her tires, sending dozens of threatening emails from various “disguised” email accounts and planting disturbing handwritten notes along her usual running route.
Keeling was arrested for stalking the victim in December 2020. While in custody, Keeling told his cellmate he wanted to find someone to harm his girlfriend. During the next few days, Keeling agreed to pay his cellmate $1,500 to arrange for a hitman to kill her, and after being released by a state court judge, he made an initial payment of $500. During a search of Keeling’s home, Alaska State Troopers and the Federal Bureau of Investigation found numerous notes and documents confirming the existence of the plot, as well as multiple documents and drawings created by Mr. Keeling that showed his desire to see her harmed, including a hand-drawn picture of her home in flames.
“While no sentence can atone for the sense of security his victim lost, she no longer has to live in fear always looking over her back and worried about her personal safety,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “Every citizen has the right to feel safe as they go about their daily life and we will continue to seek justice for victims of such appalling acts.”
"This investigation and disruption of Mr. Keeling's deadly plot should serve as a reminder that the FBI and our partners will vigorously hold those accountable who plan such actions," said Antony Jung, Special Agent in Charge of the FBI Anchorage Field Office. "Soliciting a murder for hire is a federal crime, and the defendant will now spend the next 12 years in federal prison."
The Alaska State Troopers, the Federal Bureau of Investigation and the Fairbanks Police Department conducted the investigated the case.
Assistant U.S. Attorneys Daniel Doty and Ryan Tansey prosecuted the case.
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.
Domestic violence is a crime. If you are a victim of domestic violence or know someone who is, it is normal to feel scared, helpless and vulnerable. You are not alone. Help is available through local and state police departments as well as through national entities such as the Domestic Violence Hotline at 1-800-799-SAFE (7233).
During a search of Roger Keeling’s home, Alaska State Troopers and the Federal Bureau of Investigation found numerous notes and documents confirming the existence of the murder for hire plot, as well as multiple documents and drawings created by Mr. Keeling that showed his desire to see his former girlfriend harmed, including a hand-drawn picture of her home in flames.Essex County Man Sentenced to 32 Months in Prison for Unlawfully Possessing FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 32 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Triplett, 32, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of being a felon in possession of a firearm. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 6, 2019, Newark Police Department officers were patrolling the area of South 8th Street when they observed Triplett, a previously convicted felon, riding a bicycle on the sidewalk and maneuvering around pedestrians, in violation of local ordinances. One of the officers then identified himself as a police officer, showed his badge, and ordered Triplett to stop. Triplett refused to stop and rode off in the opposite direction on the sidewalk. Shortly after, Triplett discarded a black fanny pack which he had been wearing across his chest. After the officers pursued and arrested Triplett, they retrieved the fanny pack from the street and found inside a .38 caliber Smith & Wesson revolver, which was loaded with five rounds of ammunition. As a previously convicted felon, Triplett is not permitted to possess a firearm.
In addition to the prison term, Judge Vazquez sentenced Triplett to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Dong Joo Lee and Shontae Gray of the U.S. Attorney’s Office in Newark.
Edgerton Doctor Sentenced to 54 Months for $13 Million Scheme to Defraud MedicareRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Dr. Ravi Murali, 39, formerly of Edgerton, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 54 months in federal prison for Dr. Murali’s role in a scheme to defraud Medicare. Dr. Murali pleaded guilty to this charge on March 31, 2021.
Dr. Murali wrote thousands of fraudulent orders for Durable Medical Equipment (DME). Other participants in the scheme used Dr. Murali’s fraudulent orders to bill Medicare $26,000,000 of which Medicare paid $13,000,000.
At sentencing, Chief Judge Peterson emphasized that a severe sentence was necessary to deter other providers who were considering whether to defraud Medicare and other federal programs. Further, Chief Judge Peterson noted that Dr. Murali’s history of dishonesty—he was previously disciplined by the Wisconsin Medical Examining Board for creating a fraudulent diploma to falsely claim that he completed residency—cut in favor of a longer sentence.
The charge against Dr. Murali was the result of an investigation conducted by the U.S. Department of Health & Human Services, Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Zachary J. Corey handled the prosecution.
Department of Justice announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
$375,000 Awarded to Norwalk Police Department
WASHINGTON – The Department of Justice announced more than $139 million in grant funding through the Department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Southern District of Iowa, the City of Norwalk was awarded funding totaling $375,000.“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
United States Attorney for the Southern District of Iowa Richard D. Westphal stated, “Our highest priority is keeping the people of the Southern District of Iowa safe, and our local and state law enforcement partners are on the front line of community safety. Attorney General Garland’s announcement of this grant to the City of Norwalk supports that mission. Additional law enforcement officers will allow for increased engagement with the community and much needed resources to effectively target law enforcement priorities.”
“We are excited and thankful to the Department of Justice for considering our application and awarding our police department,” stated Norwalk Police Chief Greg Staples. “This grant will fund the hiring of additional officers in Norwalk, allowing our department to grow, along with the growth in population and diversity in Norwalk. Our department is deeply committed to engaging our citizens in community policing activities and this grant will allow us to further that commitment to the people of Norwalk.”
The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or police-based response to persons in crisis.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537.0 million for CHP, an increase of $300 million.To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Davenport Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man, Deontae Montrice Lott, age 39, was sentenced on Thursday, November 18, 2021 by United States District Court Chief Judge John A. Jarvey to 137 months in prison for Conspiracy to Distribute Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Lott was ordered to serve four years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
According to court documents, Lott was identified when law enforcement obtained .62 grams of a heroin/fentanyl mixture from Lott at his residence in Davenport in August 2020. On August 13, 2020, a search warrant was conducted at Lott’s residence, and law enforcement found 77.45 grams of heroin/fentanyl mixture, a digital scale, $2,020.00 in drug proceeds/funds, and a loaded Taurus nine-millimeter handgun. In a post-Miranda interview, Lott admitted to selling heroin. Furthermore, Lott admitted to possessing the firearm in furtherance of his drug trafficking crime and possessing the heroin/fentanyl mixture with the intent to distribute. On June 28, 2021, Lott admitted to the facts above and pleaded guilty.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Scott County Sheriff’s Office investigated the case.
Court Enjoins California Company from Manufacturing and Distributing Adulterated Sterile Animal DrugsRead the Press Release
A federal court enjoined a California company from distributing adulterated sterile animal drugs in violation of the Federal Food, Drug and Cosmetic Act (FDCA), the Department of Justice announced.
In a complaint filed on Oct. 27, 2020 in the Central District of California, the United States alleged that multiple inspections by the U.S. Food and Drug Administration (FDA) repeatedly showed that Med-Pharmex Inc. (MPX) manufactured and distributed animal drugs under conditions that fell short of the minimum regulatory requirements to ensure safety and quality, including a failure to maintain sterility. According to the complaint, the FDA issued a warning letter to MPX in 2017 regarding numerous deficiencies found at the company. The complaint further alleged that the company failed to adequately investigate reports regarding the death or illness of animals receiving certain MPX drugs, and failed to properly clean and disinfect areas used to manufacture sterile drugs, as required by the FDCA. MPX and company president Gerald P. Macedo agreed to settle the suit and to be bound by a consent decree of permanent injunction that resolves the case.
“Companies that distribute animal drugs must abide by the FDCA and all applicable regulations to help ensure the safety of these products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will continue to work closely with the FDA to enforce these important requirements.”
“Ensuring FDA-approved animal medications are safe, effective and manufactured using current good manufacturing practices is a crucial part of the FDA’s mission to protect human and animal health,” said Director Steven M. Solomon DVM, MPH, of the FDA’s Center for Veterinary Medicine. “The FDA will continue to pursue actions against those who put animal patients in harm’s way by manufacturing and distributing adulterated animal drug products.”
The consent decree entered by the court requires, among other things, that the defendants refrain from manufacturing, processing, packing, holding and distributing any sterile drugs manufactured at MPX’s facilities, unless and until the FDA determines that the defendants’ sterile operations are in compliance with the court’s order, the FDCA and related regulations. The consent decree also gives the FDA authority to order the defendants to take corrective actions with respect to both sterile and non-sterile products if additional violations are identified.
The government was represented by Trial Attorney Rachel E. Baron of the Justice Department’s Consumer Protection Branch, with the assistance of Charlotte F. Hinkle and Michael Shane of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the Central District of California provided assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Council Bluffs Man Sentenced to Prison for Prohibited Person in Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man, Domingo Ace Vasquez, III, age 42, was sentenced on November 19, 2021, by United States District Court Senior Judge Robert W. Pratt to forty-two months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment is to be followed by three years of supervised release.
On February 21, 2021, the Council Bluffs Police Department responded to a call at a casino regarding a man with a gun and methamphetamine. Vasquez was located and was in possession of a SIG Sauer, Model P938, 9mm pistol. A drug dog made a positive indication and alert on Vasquez’s vehicle, and a loaded magazine that fit the gun was found inside the vehicle.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Council Bluffs Police Department investigated the case.
Convicted Sex Offender Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Greenfield man pleaded guilty today in federal court in Springfield to receipt of child pornography.
Charles Fox, 46, pleaded guilty to two counts of receipt of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 22, 2022. Fox was indicted in July 2019 and has remained in federal custody since his arrest in June 2019.
Fox induced a minor in the Philippines to engage in sexually explicit conduct for the purpose of producing images of that conduct. Specifically, Fox used Facebook messenger to communicate with the minor and to receive the pornographic images. In exchange for the images, Fox sent Western Union payments to the Philippines. In 2010, Fox was convicted of indecent assault and battery on a child under 14 years of age.
Due to the defendant’s prior sex offense conviction, the charge of receipt of child pornography provides for a sentence of at least 15 years and up to 40 years in prison, up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
Convicted Felon Sentenced to Federal Prison for Firearms PossessionRead the Press Release
Memphis, TN – Joshua Whitfield, 30, has been sentenced to 103 months in federal prison for being a felon in possession of a firearm. Acting United States Attorney Joseph C. Murphy, Jr., announced the sentence today.
According to information presented in court, on August 10, 2019, officers with the Memphis Police Department responded to a 911 domestic violence call on Ridgestone Drive. The victim's daughter called 911 from her bedroom and told the operator that "Joshua" put his hands on her mother. When police arrived, the victim stated that her live-in boyfriend, Whitfield, became physical after a verbal dispute. The victim said the defendant struck and choked her and threatened to shoot her and her daughter. Officers observed visible bruises on the victim. Whitfield was placed in custody and a loaded Black Glock pistol with a 17-round magazine was recovered from the scene. The gun had one live round in the chamber and 10 live rounds in the magazine. Officers also found a 50 round magazine drum with an unknown number of live rounds in it. Further investigation revealed the gun was stolen.
While out on bond, Whitfield, was again arrested in possession of a firearm. On December 12, 2019, officers with the Memphis Police Department conducted a traffic stop on a White Chevrolet Malibu on Tillman Street and Princeton Avenue. The driver of the Malibu, later identified as Joshua Whitfield, sped off at a high rate of speed. Officers pursued the vehicle for several city blocks until it stopped, and Whitfield jumped out of the car carrying a blue backpack. Officers gave chase and caught Whitfield hiding in a shed. Inside of the blue backpack was a Glock .43 9mm pistol and a large plastic bag with 10 individually wrapped bags of suspected marijuana. Whitfield’s driver’s license had been revoked since 2014. Whitfield also had an active warrant for unlawful possession of a weapon.
On May 18, 2021, Whitfield pled guilty to committing both crimes. Whitfield had previously been convicted for domestic assault with bodily harm in 2014 and aggravated assault in 2015.
On October 19, 2021, U.S. District Judge Sheryl H. Lipman sentenced Whitfield to 103 months in federal prison to be followed by 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department Project Safe Neighborhoods (PSN) Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated 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.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Cedar Rapids Meth Dealer Sent to Federal PrisonRead the Press Release
A Cedar Rapids man who possessed methamphetamine and a revolver was sentenced on November 19, 2021, to more than five years in federal prison.
Donald Devere White III, age 48, from Cedar Rapids, Iowa, received the prison term after an August 2, 2021 guilty plea to one count of possession with intent to distribute a controlled substance.
Information at the sentencing hearing showed that, on October 22, 2018, officers with the Cedar Rapids Police Department conducted a traffic stop on White’s truck. During the traffic stop, officers searched White’s truck and recovered close to 35 grams of methamphetamine and a revolver. White admitted in a plea agreement that he intended to distribute some or all of that methamphetamine to another person.
White was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. White was sentenced to 63 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
White is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-115.
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Camden Man Sentenced to 63 Months in Prison for Conspiring to Distribute Heroin in CamdenRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 63 months in prison for conspiring to distribute heroin and cocaine in the Camden area, Acting U.S. Attorney Rachael A. Honig announced.
Jameel Byng, 28, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with conspiracy to distribute 100 grams or more of heroin. During his sentencing hearing, Byng agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was 400-700 grams. He also acknowledged his role, as a member of the conspiracy, with respect to the distribution of cocaine.
According to documents filed in this case and statements made in court:
A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Byng who worked various shifts on the “drug set,” selling drugs to customers and collecting drug proceeds. These street-level sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Seventeen of these defendants already have entered guilty pleas on drug conspiracy charges before Judge Bumb in the United States District Court. Taken together, the guilty pleas in this case reflect that the various members of the drug-trafficking organization sold massive amounts of heroin, some of which was mixed with fentanyl, as well as crack cocaine and cocaine in Camden. Two defendants are awaiting trial. The case is currently set for trial before Judge Bumb on May 9, 2022. The charges and allegations against those two defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Byng to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
California Man Sentenced to 15 Years in Prison for Selling Methamphetamine in Northeastern OklahomaRead the Press Release
A man who was arrested after a Mannford police officer discovered methamphetamine, fentanyl, and firearms in his vehicle was sentenced in federal court Monday, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Eric Steven Bentley, 35, of Bakersfield, California, to 15 years in federal prison followed by five years of supervised release.
“Eric Bentley traveled to northeastern Oklahoma to exchange deadly methamphetamine for guns and cash,” said Acting U.S. Attorney Clint Johnson. “Illicit drug deals and firearms are a recipe for violence and suffering. Because of the work of the Mannford Police Department, DEA, and ATF, this defendant will no longer be able to operate his illegal drug business in our communities.”
Bentley pleaded guilty July 27, 2021, to possession of methamphetamine with intent to distribute and to possession of firearms in furtherance of a drug trafficking crime.
In his plea agreement, Bentley stated that on Oct. 31, 2020, he and two codefendants, Derrick Deeds and Nicole Dileva, possessed more than 500 grams of methamphetamine with intent to distribute the drug. He said the trio traveled from Bakersfield, California, to the Northern District of Oklahoma to sell the methamphetamine and had already distributed quantities of the methamphetamine in exchange for cash and firearms.
He further stated that the three defendants possessed a Hermann Weihrauch (Arminius) .38 Special caliber revolver, a Jimenez Arms, Inc. 9 mm Luger caliber semi-automatic pistol, and a 9 mm privately made firearm. Bentley, Deeds, and Dileva received two of the guns as payment for methamphetamine and used the firearms for protection while selling the drugs.
The three were charged after an October 2020 traffic stop conducted by the Mannford Police Department. During a probable cause search of the vehicle, officers discovered three pounds of methamphetamine, pills later determined to be fentanyl and oxycodone, and the three firearms.
Deeds, 36, and Dileva, 35, both of Bakersfield, also pleaded guilty in July. Deeds was sentenced to 78 months in prison, and Dileva was sentenced to 60 months in prison.
The Mannford Police Department, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jessica L. Wright and Justin G. Bish are prosecuting the case.
California Man Admits Defrauding Victims in Cumberland CountyRead the Press Release
CAMDEN, N.J. – A California man today admitted defrauding victims in Cumberland County, New Jersey, through a bogus investment scheme, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Glynn, 58, of Burbank, California, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with one count of wire fraud and one count of money laundering. Glynn was indicted in August 2019. After evading law enforcement for nearly a year, Glynn was arrested in Medford, Oregon, and transported to New Jersey for prosecution.
According to documents filed in this case and statements made in court:
In 2014, Glynn maintained a variety of corporate entities, including U.S. Grant Distribution Group, PG Philanthropic Initiative, Perrarus Global Philanthropic Initiative, and others. Glynn also claimed affiliation with an international trust that purportedly was funded with billions of dollars.
Relying on the air of legitimacy created by his various entities and the purported international trust, Glynn approached two victims in Vineland, New Jersey, and offered them an opportunity to “invest” hundreds of thousands of dollars in a “business development loan.” Glynn told the victims that this business development loan would be used for authorized business and legal expenses related to his entities and the international trust. The loan also would be used for expenses related to an animal welfare charitable foundation and shelter that Glynn was helping the victims to set up. Glynn assured the victims that the international trust would guarantee their business development loan, the loan would generate specific returns for the victims, and the victims could use the returns to fund their animal welfare charitable foundation and shelter.
As part of his fraudulent scheme, Glynn sent emails and other correspondence and contracts to the victims. Glynn also arranged for conference calls between himself, his associates, and the victims, including one call that Glynn claimed included “a direct representative from the NSA (National Security Agency), and a representative from either DHS (Department of Homeland Security) or the FBI.” Glynn took these steps in order to convince the victims that they were investing in a legitimate business opportunity.
Glynn ultimately directed the victims to wire funds to various bank accounts that Glynn controlled, in order to fund the “business development loan.” The victims did so, relying on Glynn’s representations about how the funds would be used.
Instead of using the loan in the manner he had promised, however, Glynn and his associates misappropriated the victims’ loan money and used it for personal expenses and other expenses that were unrelated to any charitable or business purpose that the victims sought to advance or that Glynn promised to achieve.
The wire fraud count to which Glynn pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering count to which Glynn pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the offense. Sentencing is scheduled for April 5, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Andrew B. Johns of the U.S. Attorney’s Office Criminal Division in Camden.
Burlington Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Burlington man, Jacob Robert Hogberg, age 32, was sentenced on Thursday, November 18, 2021 by United States District Court Chief Judge John A. Jarvey to 148 months in prison for Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm and Ammunition. Hogberg was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
According to court documents, Hogberg was identified in December 2019 when law enforcement officers were dispatched to the Super 8 Motel in Burlington. Officers made contact with Hogberg and two other individuals. During a search of a vehicle associated with Hogberg, officers located 205.38 grams of methamphetamine, a loaded Mossberg 20-gauge pump shotgun, and Winchester .20 gauge shotgun shells. Hogberg admitted to possessing the methamphetamine with the intent to distribute some or all of it to another person. Furthermore, as a convicted felon, Hogberg was prohibited from legally possessing firearms and ammunition. On July 14, 2021, Hogberg pleaded guilty to the two charges brought against him.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Burlington Police Department investigated the case.
Burlington County Man Admits Role in Conspiracy to Defraud Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, Acting U.S. Attorney Rachael A. Honig announced.
Mark D’Amico, 42, formerly of Bordentown, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging him with conspiracy to commit wire fraud.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.
According to documents filed in this case and statements made in court:
In November 2017, D’Amico and McClure created a crowd-source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets. The fraudulent campaign raised approximately $400,000 from more than 14,000 donors throughout the country in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is set for March 28, 2022.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorneys Jeffrey B. Bender and Diana Vondra Carrig of the U.S. Attorney's Office Criminal Division in Camden.
Burley Man Sentenced to 5 Years for Drug TraffickingRead the Press Release
POCATELLO – A Burley man was sentenced to 60 months in federal prison for distributing methamphetamine.
According to court records, on April 20, 2020, detectives with the Minidoka-Cassia Drug Task Force received a tip that suspicious activity was occurring in an industrial business complex in Paul, Idaho. Task force detectives conducted surveillance based on the tip and saw Fernando Najera, 42, of Burley, arrive at the industrial complex. He was seen carrying a bag into one of the buildings. Najera left a short time later in his vehicle. Further investigation led to a search of Najera’s vehicle where detectives located approximately 35.5 grams of methamphetamine, a large amount of U.S currency, and other indicia of drug sales.
Senior U.S. District Judge B. Lynn Winmill ordered Najera to serve four years of supervised release following his prison sentence. Najera was also found in violation of federal supervised release from a prior federal drug trafficking conviction. Najera was sentenced on this violation to 18 months in prison to be served concurrently with his 60-month prison sentence.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Cassia County Sheriff's Office and the Minidoka County Sheriff's Office collaborative task force, which led to charges.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 186 defendants have been indicted by the EIP SAUSA. Of these defendants, 139 have been indicted on drug distribution charges. The defendants indicted under the program have been sentenced to 7,646 months (approximately 637 years) in federal prison, representing an average prison sentence of 53.4 months (4.45 years). Defendants indicted for drug distribution cases serve, on average, approximately 58.9 months (4.9 years) in federal prison.
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Beckley Man Sentenced to 10 Years in Federal Prison for Distribution of HeroinRead the Press Release
BECKLEY, W.Va. – William David Reid, 46, of Beckley, was sentenced today to 10 years in federal prison for distribution of heroin.
According to court documents, Reid sold a quantity of heroin to a confidential informant in Beckley on August 3, 2020. Reid also admitted to possessing approximately 20 grams of methamphetamine on August 12, 2020 that he intended to distribute in and around Raleigh County. Reid further admitted that he had been distributing heroin and methamphetamine in and around the Southern District of West Virginia for over a year prior to his arrest.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00156.
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Becker Farmer Sentenced for $1.4 Million USDA Farm Loan FraudRead the Press Release
ST. PAUL, Minn. – A Becker man was sentenced to pay $1,403,578.40 in restitution, serve three years’ probation, and 150 hours of community service for converting collateral that secured loans from the U.S. Department of Agriculture.
According to court documents, in 2017 and 2018, Robert Waldon John Anderson, 67, used false and fraudulent statements to obtain five Commodity Credit Corporation (CCC) loans through a federal farm loan program administered by the Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA). As part of the loan terms, Anderson pledged to maintain bushels of corn as collateral, agreeing not to move or dispose of them without prior approval of the CCC.
According to court documents, in late 2018, the FSA conducted a spot check and discovered that the bins of corn Anderson pledged as collateral for three of the loans were almost empty. Anderson had sold the corn under a family member’s name to avoid detection by the CCC. The FSA also learned that Anderson orchestrated two fraudulent loans in the names of family members for which collateral grain never actually existed. In total, Anderson defrauded the USDA of $1,425,718.36.
On May 6, 2021, Anderson pleaded guilty to one count of conversion of CCC security.
Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
This case is the result of an investigation conducted by the U.S. Department of Agriculture-Office of Inspector General.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
Armed Career Criminal to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who distributed methamphetamine while illegally possessing firearms was sentenced November 18, 2021, in federal court in Sioux City.
Melvin Cloud, Jr. 44, from Sioux City, Iowa, pled guilty on June 17, 2021, to one count of distribution of methamphetamine and one count of prohibited person in possession of a firearm. Cloud, Jr. had previously been convicted of three prior drug trafficking offenses which designated him an armed career criminal.
At the hearings, evidence showed that on four separate occasions in 2020 in Sioux City, Iowa, Cloud, Jr. distributed a total of over 82 grams of methamphetamine. On February 25, 2021, law enforcement officers executed a search warrant at Cloud, Jr.’s residence and seized four guns, including a 12-gauge shotgun, .357 revolver, .45 caliber ACP, and a stolen .40 caliber pistol. As a drug user and felon, Cloud, Jr. was prohibited from possessing guns.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Cloud, Jr. was sentenced to 141 months’ imprisonment and must serve a 4-year term of supervised release following imprisonment. Cloud, Jr. remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4018.
Follow us on Twitter @USAO_NDIA.
Aberdeen Man Pleads Guilty to Coercion and Enticement of Three Minor FemalesRead the Press Release
Baltimore, Maryland – Anthony Gonzalez, age 40, of Aberdeen, Maryland, pleaded guilty today to coercion and enticement.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Director Darrell R. Reider of the Swatara Township Police Department (Pennsylvania).
According to his guilty plea, between 2017 and 2019, Gonzalez used cell phones and the internet to persuade, entice, and coerce three minor females to engage in sexual activity.
Specially, in June 2018, Gonzalez made contact with an underaged female victim (Victim 1) on a social media application. Although Victim 1’s profile stated that she was 18 years old, Victim 1 informed Gonzalez that her actual age was 16 years old. During their communication, Gonzalez referred to Victim 1 as his girlfriend, discussed getting married to her, and initiated sexual conversations.
In one instance, Gonzalez asked Victim 1 to sneak out of her hotel room that she was sharing with her father to meet Gonzalez. On June 27, 2018, Gonzalez traveled from his Bel Air, Maryland residence to meet Victim 1 at the Harrisburg, Pennsylvania hotel. There, Gonzalez and Victim 1 engaged in sexually explicit activity twice. In one sexual encounter, Gonzalez recorded the sexual acts on his cell phone. Additionally, Gonzalez brought Victim 1 a cell phone with the ability to take pictures and videos as her cell phone could not. Following their meeting, Gonzalez asked Victim 1 “Do you always delete our messages from your phone baby?”.
Between 2017 and 2018, Gonzalez met Victim 2, when she was 13 years old. Gonzalez initiated a romantic online relationship with Victim 2. During their conversations, Gonzalez frequently held sexual conversations with Victim 2 and convinced the victim to send sexual images. Also, Gonzalez discussed meeting with Victim 2 in person. When Victim 2 declined and blocked Gonzalez multiple times, a mutual friend encouraged her to communicate with him.
Gonzalez met Victim 3 in 2018 when she was 15 years old. Gonzalez told Victim 3 that they were “boyfriend and girlfriend” and convinced her to send him sexually explicit images at his request. Victim 3 genuinely believed that she had to do what Gonzalez requested because she was his “girlfriend”. In total, Victim 3 sent explicit images over 500 times at his request.
As detailed in his plea agreement, on January 24, 2019, a federal search warrant was executed at Gonzalez’s Aberdeen, Maryland residence. As a result of the search warrant, law enforcement seized several devices including two tablets, three cell phones, and a SIM card. In an interview with law enforcement, Gonzalez admitted to engaging in sex acts with Victim 1 and saved the recordings to an internet storage system. He also admitted to law enforcement that he knew Victim 2 was a minor during their conversations and had approximately four sexually explicit images of her.
Gonzalez and the government have agreed that, if the Court accepts the plea agreement, Gonzalez will be sentenced to between 10 and 16 years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 24, 2022 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Erek L. Barron commended the Maryland State Police Department and the Swatara Township Police Department (Pennsylvania) for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Sunday 21 November 2021
Seattle woman sentenced to prison for embezzling from high-end mountain bike companyRead the Press Release
Seattle – A Seattle woman who was employed as a contract bookkeeper and accountant for a high-end mountain bike company was sentenced November 19, 2021, in U.S. District Court in Seattle to 28 months in prison for wire fraud and aggravated identity theft, announced U.S. Attorney Nick Brown. Joan C. Trower, 51, pleaded guilty in August 2021. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said that it is part of the Court’s “job to protect the community, especially small businesses such as the victim in this case.”
According to records filed in the case, Trower worked as a contract bookkeeper and accountant for the mountain bike company from July 2015 to May 2018. Her contract was terminated when the embezzlement was discovered. Trower used a variety of schemes to steal over $150,000 from company accounts: creating checks using the company software system, forging signatures, claiming expenses and compensation she did not earn, and making transfers from company accounts to accounts she controlled in the names of phony tax accounting businesses. For example, while most employees received at most three checks per month (two for salary and one for expenses), Trower wrote as many as thirteen checks to herself in one month. Trower put false descriptions in the memo line, sometimes falsely claiming the funds were to reimburse her for an outside tax accounting firm she claimed to have hired. Trower also transferred money from company accounts to accounts she controlled—transferring more than $26,000 to her account in the span of just a few months in 2018. Trower and her boyfriend used the money to, among other things, gamble at area casinos.
Trower committed aggravated identity theft when she forged the signature of company executives on fraudulent checks and when she submitted false invoices in the name of a third-party tax accountant to justify reimbursements to Trower.
Writing to the court, prosecutors noted that the scheme was difficult to detect. Trower’s “scheme was elaborate, sophisticated, and longstanding. She created fake business entities and fake bank accounts for those entities in order to conceal the nature of her transfers of funds from the company. Ms. Trower even went so far as to create at least one alter ego email account: a fake email account that she would correspond with, apparently in an attempt to justify certain expenses or accounting maneuvers,” Assistant United States Attorney William Dreher wrote in the sentencing memo.
Trower is obligated to pay $168,597 in restitution to the mountain bike company.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney William Dreher.
Friday 19 November 2021
Zion, Illinois Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Andre Neal, 44 years old, of Zion, Illinois, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to interstate travel in aid of racketeering, announced United States Attorney Clifford D. Johnson.
Neal was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 23, 2020, Neal transported cocaine in interstate commerce in addition to over $100,000.00 cash from drug distribution activities. Neal has two prior felony convictions.
This case was investigated by the Drug Enforcement Administration, with the assistance of the High Intensity Drug Trafficking Area (HIDTA) Domestic Highway Enforcement Group (DHE) and the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.