Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 January 2022
Princess Cruise Lines Pleads Guilty to Second Revocation of ProbationRead the Press Release
Miami, Florida — Princess Cruise Lines Ltd. (Princess) has pleaded guilty to a second violation of probation imposed as a result of its 2017 criminal conviction for environmental crimes because it failed to establish and maintain an independent internal investigative office. Under the terms of a plea agreement, Princess was ordered to pay an additional $1 million criminal fine and required to undertake remedial measures to ensure that it and its parent Carnival Cruise Lines & plc establish and maintain the independent internal investigative office known as the Incident Analysis Group (IAG).
Princess was convicted and sentenced in April 2017 and fined $40 million after pleading guilty to felony charges stemming from its deliberate dumping of oil-contaminated waste from one of its vessels and intentional acts to cover it up. This was and remains the largest-ever criminal fine for intentional pollution from ships. While serving five years of probation, all Carnival-related cruise line vessels trading in U.S. ports were required to comply with a court approved and supervised environmental compliance plan (ECP), including audits by an outside and independent third-party auditor (TPA) and oversight by a Court Appointed Monitor (CAM).
In 2019, Princess was convicted of six violations of probation, fined an additional $20 million, and required to undertake more remedial measures. In that case, two of the violations involved interfering with the court’s supervision of probation by sending undisclosed teams to ships to prepare them for the independent inspections required during probation. Documents filed in court showed that one purpose of the vessel visit programs was to avoid adverse findings by the independent outside auditors working on behalf of the court.
Beginning with the first year of probation, there have been repeated findings that the Company’s internal investigation program was and is inadequate. In November 2021, the Office of Probation issued a petition to revoke probation after adverse findings by the CAM and TPA.
In an October 2021 letter to U.S. District Court Judge Patricia A. Seitz, the CAM and TPA concluded that the continuing failure “reflects a deeper barrier: a culture that seeks to minimize or avoid information that is negative, uncomfortable, or threatening to the company, including to top leadership (i.e., the Board of Directors, C-Suite executives and Brand Presidents/CEOs).”
A joint factual basis for today’s guilty plea was submitted to the court in which Princess and Carnival admitted to the failure to establish and maintain an independent investigative office. Princess admitted that internal investigators had not been allowed to determine the scope of their investigations, and that draft internal investigations had been impacted and delayed by management.
Changes required under a plea agreement with the Department of Justice resolving the probation violation include:
- Carnival must restructure so that its investigative office reports directly to a committee of Carnival’s Board of Directors;
- Carnival’s internal investigative office must be given the authority to initiate investigations on its own and to determine their scope;
- Carnival’s management will be restricted in its ability to remove the head of the “Incident Analysis Group” that performs internal investigations;
- Carnival must conduct an assessment to ensure independent investigators have sufficient resources;
- Carnival must assess the effectiveness of required changes and correct deficiencies.
- Failure to meet deadlines in the plea agreement will initially subject the defendant to fines of $100,000 per day, and $500,000 per day after 10 days.
“Just like individual defendants, corporate defendants must also comply with court orders. They are not above the law”, said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “The corporate defendant here ignored the court, choosing instead to thwart the compliance plan that was put in place to protect our environment. As this probation violation proceeding demonstrates, the government will not tolerate defendant’s blatant violation of court orders.”
“This case shows the importance of addressing issues of corporate culture and structure, and the root causes of environmental non-compliance,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This was a serious and ongoing violation of probation that reflected Carnival’s failure to prioritize compliance with court orders. I thank the court, the Office of Probation, court appointed monitor and third-party auditor for the close attention that they have devoted to this important matter.”
The plea agreement and factual statement were signed by Micky Arison, Chairman of Carnival’s Board of Directors and Arnold Donald, the Chief Executive Officer and a member of the Board of Directors. Both attended the hearing as they have quarterly status hearings pursuant to court order.
The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald, Environmental Crimes Coordinator, Economic & Environmental Crimes Section, Southern District of Florida, and Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
###
Police Impersonators and Bronx Drug Dealer Charged with Narcotics and Firearm OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant Sewell, Commissioner of the New York City Police Department (“NYPD”), announced today that RASHIEM COUNCIL, PARIS FULTON, and TERRENCE MCKEE, were charged by Complaint for their participation in a drug trafficking conspiracy and their use of firearms in connection with that conspiracy. A fourth defendant, MICHAEL GARCIA, was charged in the same Complaint with possessing with the intent to distribute cocaine. The defendants were arrested yesterday, GARCIA was presented today in Manhattan federal court before United States Magistrate Judge Barbara Moses. COUNCIL will be presented later today, and FULTON and MCKEE will be presented tomorrow before Judge Moses.
U.S. Attorney Damian Williams said: “As alleged, three of the defendants posed as law enforcement officers and brandished a firearm during a home invasion in which they took approximately three kilograms of cocaine and proceeds from narcotics dealing. Such brazen and dangerous conduct will not be tolerated. Thanks to the work of the NYPD and federal law enforcement, these defendants face significant federal charges for their alleged crimes.”
NYPD Commissioner Keechant Sewell said: “Today’s criminal complaint once again highlights the NYPD’s swift work to neutralize the most violent elements of an alleged narcotics enterprise. Our covenant with New Yorkers is to always answer their calls for help and to work with our partners to ensure justice and I commend the United States Attorney’s Office in the Southern District of New York for their work with our officers in this important case.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
On or about January 11, 2022, RASHIEM COUNCIL, PARIS FULTON, and TERRENCE MCKEE, dressed as and pretending to be law enforcement officers, forced their way into an apartment (the “Apartment”) in a building (the “Building”) in the Bronx, where MICHAEL GARCIA, his partner, and their two minor children lived. COUNCIL, FULTON, and MCKEE were armed. They handcuffed GARCIA and held him at gun point, while GARCIA’s partner and their two minor children were in the Apartment. COUNCIL, FULTON, and MCKEE, demanded to know where GARCIA kept his drugs and drug money in the Apartment, and GARCIA showed them. COUNCIL, FULTON, and MCKEE stole approximately one hundred and sixty thousand dollars in narcotics proceeds and approximately three kilograms of cocaine from GARCIA.
After stealing the drugs and the money, COUNCIL, FULTON, and MCKEE escorted GARCIA, in handcuffs, out of the Apartment and into the building’s elevator. By then, in response to another individual’s (“Witness-1”) 911 call about the home invasion, officers (the “Officers”) from the New York City Police Department had arrived at the Building, and had just entered the lobby when the elevator door opened. COUNCIL, FULTON, MCKEE, and GARCIA, walked out of the elevator. They tried to avoid the Officers and continued walking towards the front door. The Officers asked COUNCIL, FULTON, and MCKEE what law enforcement unit they were with, and COUNCIL, FULTON, and MCKEE claimed that their sergeant was waiting for them outside. As soon as they exited the Building, however, they—and GARCIA—began to run. The Officers pursued them. After a short pursuit, the Officers caught up to and apprehended COUNCIL, MCKEE, and GARCIA. During that pursuit, one Officer saw one of the defendants throw a firearm into the street. Immediately after the Officers apprehended COUNCIL and MCKEE, the Officers found two more firearms near the Building. Shortly thereafter, the Officers found and arrested FULTON near his car, which he had parked outside the Building. With FULTON’s consent, the Officers conducted a brief search of the car, where they found a fourth firearm inside a backpack in the car.
* * *
RASHIEM COUNCIL, 31, PARIS FULTON, 29, and TERRENCE MCKEE, 33, all from Connecticut, are charged with one count of narcotics conspiracy, in violation of Title 21, United States Code, Section 846, and one count of brandishing firearms in connection with that narcotics conspiracy, in violation of Title 18, United States Code, Section 924(c). The narcotics conspiracy charge carries a mandatory minimum sentence of five years and a maximum sentence of 40 years in prison. The firearms charge carries a maximum sentence of life and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other sentence imposed.
MICHAEL GARCIA, 36, of the Bronx, New York, is charged with one count of possession with the intent to distribute 500 grams and more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(B), which carries a mandatory minimum sentence of five years and a maximum sentence of 40 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York, the NYPD’s Bronx Violent Crimes Squad, and the Internal Affairs Bureau, Police Impersonation Unit. Mr. Williams also praised the patrol officers from the 48th precinct for their outstanding policework in executing the arrests.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Parkersburg Man Sentenced to Federal Prison for Possession of FirearmRead the Press Release
CHARLESTON, W.Va. – Codi Lee Douglas, 26, of Parkersburg, was sentenced today to three years and one month in prison for being a felon in possession of a firearm. Following his release from prison, Douglas will serve three years of supervised release.
According to court documents and statements made in court, Douglas admitted to possessing an AR-15 style semi-automatic rifle that law enforcement officers found in his vehicle during a traffic stop in Parkersburg on January 27, 2021. Douglas is not legally permitted to possess firearms due to a 2016 conviction in Wood County Circuit Court for malicious assault. The malicious assault conviction was the result of Douglas shooting another man in the face during a drug transaction in September 2015. Douglas also has a prior conviction for battery.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe 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. 2:21-cr-00113.
###
Owner of Diving School Sentenced to 27 Months in Prison for Wire FraudRead the Press Release
CAMDEN, N.J. – The president and CEO of a commercial diving school was sentenced today to 27 months in prison for fraudulently obtaining funding from the U.S. Department of Education (DOE) and the U.S. Department of Veterans Affairs (VA) for the school and its students, U.S. Attorney Philip R. Sellinger announced.
Tamara Brown, 58, of Haddon Heights, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of wire fraud. Judge Rodriguez imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From January 2012 through July 2018, Brown owned a private, for-profit commercial diving school, which offered educational programs in commercial diving and underwater welding and salvage. As a for-profit institution, the diving school was required to be accredited through an approved accreditation body to be eligible to receive tuition funds from the DOE’s Higher Education Act’s programs. The VA also relies upon the accreditation in evaluating the eligibility of veteran students to receive student aid funding. Given that more than 80 percent of the diving school’s students received financial assistance from the Department of Education, the school stood to lose its largest source of tuition funding for its students if it lost its accreditation.
Prior to 2012, the diving school had been properly accredited. However, when renewing the diving school’s accreditation that year, Brown submitted fraudulent information to the accrediting authority. For example, Brown reported rates of employment of the school’s graduates of between 81 to 84 percent, when the employment rates were closer to 50 to 60 percent, significantly lower than the rate required to maintain accreditation. Brown also provided fraudulent information pertaining to the school’s holding of “advisory board” meetings required for accreditation to ensure that the school’s curriculum would educate students to meet the current demands of the industry and prospective employers. In the school’s accreditation application, Brown reported holding advisory board meetings on various dates and also submitted what purported to be minutes of nine such board meetings. The diving school did not have a formal advisory board and did not regularly conduct meetings as required. Brown submitted wholly fabricated meeting minutes for at least six of the nine dates listed in the school’s accreditation application and, therefore, did not satisfy the minimum accreditation requirements. The diving school nonetheless continued to regularly receive DOE funds via wire transfers, including a wire transfer which occurred on Jan. 18, 2017.
In addition to the prison term, Judge Rodriguez sentenced Brown to three years of supervised release, fined her $50,000 and ordered restitution of $1.1 million.
U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Philadelphia Resident Agency of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Terry V. Harris, and the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.
Students who can show that their school misled them or engaged in other misconduct in violation of certain state laws may be eligible for the discharge of some or all federal student loan debt under certain circumstances pursuant to the Borrower Defense Loan Discharge program. Former students of Divers Academy International who wish to seek federal loan forgiveness may apply at www.studentaid.gov/borrower-defense/.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S Attorney’s Office in Camden.
Onslow County Drug Trafficker Receives More Than 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Ernie James, 47, of Onslow County was sentenced yesterday to 123 months in federal prison for conspiracy to possess with the intent to distribute and distribution of 50 grams or more of a mixture or substance containing methamphetamine and possession with the intent to distribute 50 grams or more of a mixture or substance containing methamphetamine.
According to court documents and other evidence and information presented in court, between February 2018 and June 2019, James was involved in the distribution of more than a kilogram of methamphetamine into the Eastern District of North Carolina. James had at least one person picking up methamphetamine for him to distribute. James also paid people who were legitimately working for him with methamphetamine. James’ methamphetamine distribution involved a white supremist organization.
On June 27, 2019, the Bureau of Alcohol, Tobacco and Firearms (ATF) developed information that James and several other people were travelling to Kinston, North Carolina to pick up several ounces of methamphetamine. They received information that the deal would occur at a residence on Dale Street in Goldsboro. Law enforcement conducted a traffic stop on a truck being driven by James following the deal. During the traffic stop, James instructed a passenger to dump several ounces of methamphetamine into a drink cup as law enforcement was approaching the car. Law enforcement was able to recover the cup.
In August 2021, James was in custody at the Pamlico County Jail awaiting his federal sentence. James and at least one other person were involved in the distribution and use of controlled substances in the jail. The controlled substances were being sent into the jail under the guise of legal mail. The ATF, Pamlico County Sheriff Deputies and the Craven County Sheriff’s Office working together uncovered this drug ring.
This is part of operation “Fighting Jelly Fish” which 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, Onslow, Duplin, Craven, Pamlico and Lenoir County Sheriff’s Offices and the Kinston, Holly Ridge and Goldsboro Police Departments investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00139-FL-7.
New Orleans Man Sentenced to Forty-Eight (48) Months for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On January 11, 2022, United States District Judge Greg Guidry sentenced JOHNNY WOODEN, age 21, to forty-eight (48) months in the Bureau of Prisons for possession of a firearm while under indictment, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
WOODEN was charged on August 7, 2020 and pled guilty on September 28, 2021. He pled guilty to possession of a firearm while under indictment, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D). WOODEN’s sentence is to be followed by three (3) years of supervised release. He must also pay a $100 mandatory special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Duane A. Evans praised the work of the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Melissa Bücher.
Monroe County Man Sentenced to 33 Months’ Imprisonment for A Firearms OffenseRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Hill, age 40, of East Stroudsburg, Pennsylvania, was sentenced on January 10, 2022, to 33 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion for a firearm offense.
According to United States Attorney John C. Gurganus, Hill previously pleaded guilty on June 28, 2021, to possession, barter, and sale of a stolen firearm. Hill, a heroin user, admitted to trading a firearm to codefendant Ronald McKenna in exchange for heroin. Hill’s sentence was enhanced because he fled the jurisdiction while on supervised release and was later apprehended in Florida.
McKenna had previously pleaded guilty to a firearms violation and was sentenced to 36 months in prison. A third codefendant, Drew Miller, also pleaded guilty to a firearms felony, and was sentenced to 42 months in prison.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Stroud Area Regional Police Department. Assistant U.S. Attorneys Francis P. Sempa and Sean A. Camoni prosecuted the case.
This matter was prosecuted as part of the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
# # #
Monongalia County man admits to tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Travis A. Harner, of Morgantown, West Virginia, has admitted to a tax charge, United States Attorney William Ihlenfeld announced.
Harner, 42, pleaded guilty today to one count of “Filing False Income Tax Return.” Harner admitted to understating his income by more than $204,000, resulting un unpaid and due tax of more than $69,000. The crime occurred in April 2019 in Monongalia County.
Harner is owner and operator of Talan Trucking & Excavating, LLC and Harner Construction, LLC, both in Morgantown. Harner failed to pay the IRS more than $433,000 resulting from both businesses and his personal income taxes from 2008 to 2019.
Harner faces up to three years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Internal Revenue Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Minneapolis Woman Sentenced to 100 Months in Prison for Role in Violent Twin Cities Carjacking SpreeRead the Press Release
MINNEAPOLIS – A Minneapolis woman was sentenced to 100 months in prison, followed by two years of supervised release, and ordered to pay $13,323.53 in restitution, for her role in a string of violent carjackings throughout the Twin Cities. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
“The staggering increase in carjackings throughout the Twin Cities metro has not gone unnoticed by federal law enforcement,” said Acting U.S. Attorney Charles J. Kovats. “In partnership with local and federal law enforcement, we will not hesitate to prosecute individuals who perpetrate this type of violence in our communities. Today’s sentence highlights the seriousness of these crimes and the significant penalties facing those who commit them.”
“The recent spike in carjackings has spread a sense of terror and fear across our communities, and we are pleased that this sentence sends a strong message of deterrence to those seeking to victimize our neighbors,” said FBI Special Agent in Charge Michael Paul. “The FBI is committed to doing all we can to work with our partners to stop this menace and bring back a sense of peace and calm throughout our metropolitan neighborhoods.”
According to court documents, on August 28, 2020, Krisanne Marie Benjamin, 25, and her co-defendant Jeremiah Lee Ironrope, 25, drove a maroon SUV to a parking lot in Richfield, where they parked near a 2017 Audi. Ironrope approached the driver of the Audi and pointed a Remington 870 l2-gauge shotgun, with a sawed-off barrel, at the driver and demanded the car keys. Benjamin kept watch from the maroon SUV as Ironrope started the Audi and drove away. Benjamin followed in the maroon SUV.
According to court documents, in the early morning hours of August 29, 2020, the Minnesota State Patrol used GPS data to track and locate the stolen Audi, which was driven by Ironrope and occupied by Benjamin. Officers attempted to stop the vehicle, but Ironrope drove away at a high rate of speed, while cutting across multiple lanes of traffic, swerving between cars, and driving through red lights. During the flight from law enforcement, Benjamin got out of the vehicle and fled on foot while Ironrope continued fleeing in the Audi. Law enforcement found the vehicle running and unoccupied in Minneapolis. The vehicle had been partially spray-painted black. Inside officers found a stolen wallet, bottles of spray paint, a hat, gloves, and receipts. Law enforcement also found a used l2-gauge shotgun shell under the driver's seat.
On September 7, 2021, Benjamin pleaded guilty to one count of aiding and abetting carjacking. On September 9, 2021, Co-defendant Ironrope pleaded guilty to one count of carjacking and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. He is scheduled to be sentenced on April 7, 2022 by U.S. District Court Judge Patrick J. Schiltz.
As part of their guilty pleas, Ironrope and Benjamin admitted to two additional carjackings that occurred on July 26, 2020, in Maple Grove and August 7, 2020, in St. Paul. In both instances, the defendants physically assaulted the victims before stealing their vehicles. Ironrope also admitted to two December 2020 carjackings occurring in St. Louis Park and St. Paul. In both instances, Ironrope pointed a handgun at the victims before stealing their vehicles.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the St. Paul Police Department, the Maple Grove Police Department, the Richfield Police Department, the Edina Police Department, the Roseville Police Department, and the Minnesota State Patrol.
This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.
Middletown drug ring leader connected to Sinaloa Drug Cartel sentenced to 25 years in prisonRead the Press Release
CINCINNATI – A Middletown man was sentenced in U.S. District Court today to 300 months in prison for his role in a local narcotics conspiracy tied to the Sinaloa Drug Cartel in Mexico.
Donte Holdbrook, 28, was one of 12 individuals charged by a Cincinnati federal grand jury in March 2018 in a narcotics and money laundering conspiracy.
Holdbrook’s local drug trafficking organization trafficked more than $1 million in fentanyl and heroin in the region. After Holdbrook was arrested in late 2016, Middletown Police officials reported that fatal and non-fatal opioid overdoses in Middletown fell by approximately one third.
Members of the group distributed fentanyl from Mexico in Middletown and sent proceeds back to the Sinaloa Drug Cartel in Mexico. A number of others were charged in San Diego, California, in a related case.
The investigation began when undercover FBI agents in San Diego learned that a known Sinaloa Cartel money-laundering boss, Jose Lopez-Albarran, coordinated and conducted multiple bulk cash pickups from a drug trafficking organization within the Southern District of Ohio.
Lopez-Albarran was one of 40 defendants charged in the Southern District of California. According to court documents there, he and other members of the Cartel allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. Through the investigation in California, law enforcement discovered multiple drug-trafficking cells throughout the United States.
The Middletown drug-trafficking cell led by Holdbrook sent drug proceeds back to the Sinaloa Cartel in Mexico via Lopez-Albarran.
Holdbrook was found to be in possession of 366 grams of fentanyl during a traffic stop on Dec. 2, 2017, and he arranged for multiple shipments of fentanyl into the Middletown area.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Cincinnati Police Chief Eliot K. Isaac, Middletown Police Chief David Birk and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the sentence imposed by U.S. District Court Judge Timothy S. Black. Criminal Chief Karl P. Kadon is representing the United States in this case.
# # #
Mexican Man Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – A Mexican national pled guilty to the federal felony offense of Unlawful Return of an Alien After Deportation or Removal, announced U.S. Attorney Darren LaMarca and Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Fernando Hernandez-Zavala, 39, of Mexico, was arrested on October 8, 2021, on Interstate 10 in Harrison County. A Harrison County Sherriff’s Deputy conducted a vehicle stop near Mile Marker 29 on Interstate 10 eastbound for speeding.
The passenger in the vehicle was identified as Fernando Hernandez-Zavala, a citizen of Mexico with no legal right to enter or remain in the United States. At the Gulfport Border Station, Hernandez-Zavala’s identity was positively confirmed, and record checks revealed that he had been lawfully removed from the United States in 2004 and again in 2010.
Hernandez-Zavala is scheduled to be sentenced on April 12, 2022 at 1:30 p.m. He faces a maximum penalty of two years in prison, a $250,000 fine and 1 year of Supervised Release. After completing any sentence of incarceration, he also is subject to Department of Homeland Security proceedings to remove him from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U.S. Border Patrol and the Harrison County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Mescalero man sentenced to 10 years in prison for sexual abuse of a childRead the Press Release
ALBUQUERQUE, N.M. – James Darius Caje, 28, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced on Jan. 11 in federal court to 10 years in prison for sexual abuse of a minor. Caje pleaded guilty on June 10, 2021.
According to the plea agreement and other court records, on the night of Feb. 24 or early morning Feb. 25, 2020, Caje allegedly entered the bedroom of the victim, who was 14-years old, and sexually assaulted her. The following day, the victim reported the assault to a school counselor, who then reported it to law enforcement. The assault occurred on the Mescalero Apache Reservation.
Upon his release from prison, Caje will be subject to 40 years of supervised release and must register as a sex offender.
The FBI investigated this case. Assistant U.S. Attorney Aaron O. Jordan prosecuted the case.
Men Who Allegedly Kidnapped 14-Year-Old Charged with Production of Child PornographyRead the Press Release
Two men who allegedly kidnapped a 14-year-old girl off the streets of Dallas have been charged with producing sexually explicit images of the child, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Lukumond Olatunji, 43, and Vincent Thompson, 41, were arrested in Dallas on Wednesday and charged via criminal complaint with production of child pornography and aiding and abetting child pornography. They made their initial appearances in federal court before U.S. Magistrate Judge Irma C. Ramirez this afternoon.
According to the complaint, the defendants pulled up beside the 14-year-old Jane Doe as she was walking home from school in Southwest Dallas on Oct. 23. The child, who was wearing her school uniform at the time of the crime, later told investigators she believed they were going to give her a ride to her grandmother’s house.
Instead, the defendants drove her to an alley, where they allegedly raped her and recorded part of their crimes on Mr. Thompson’s cell phone. They then drove her to a motel, where they rented a room and allegedly raped her again.
Jane Doe was eventually able to escape. As she ran from the hotel, she encountered a woman who drove her to a nearby gas station to call for help. Visibly scared and disoriented when officers arrived, the child was nevertheless able to describe the defendants and their attire to law enforcement.
Officers immediately drove to the motel and detained Mr. Olatunji and Mr. Thompson. In an interview, Mr. Olatunji identified Jane Doe as “the girl that Vincent picked up.” He initially denied sexually assaulting the child, but later admitted to having sexual intercourse with her. Mr. Thompson also identified Jane Doe as “the girl we picked up in South Dallas.” He admitted to engaging in sexual intercourse with the child and to recording her sexual assault on his phone.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Mr. Olatunji and Mr. Thompson are presumed innocent until proven guilty in a court of law.
Homeland Security Investigations’ Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Joe Magliolo and Special Assistant U.S. Attorney Jenna Rudoff are prosecuting the case.
Man Sentenced to Five Years in Prison for Smuggling a Previously Deported Convicted MurdererRead the Press Release
Miami, Florida – A federal district judge in Fort Lauderdale has sentenced Jeremy Christoph Rolle, 27, of the Bahamas, to 60 months in prison for trying to smuggle into the United States a migrant previously removed from the country following aggravated felony convictions, including murder. Rolle pleaded guilty on November 2, 2021, to aiding and abetting certain migrants to enter the United Sates.
According to court documents, Rolle operated a 26-foot motorboat to transport himself and sixteen migrants from Bimini, Bahamas to the east coast of Florida on June 17, 2021. One such migrant passenger was Marvin Morris Carridice, 43, of Jamaica, who according to court documents, was removed from the United States in 2018 after serving a 14-year prison sentence for convictions in Florida for murder and other felonies.
Carridice, who was charged in the same indictment as Rolle, pleaded guilty to illegal entry of a removed alien and was sentenced on January 5, 2022, to 42 months’ imprisonment. In addition, migrant passengers Andrew Devaunx, 54, of the Bahamas and Payam Hassanzadeh Zargar, 27, of the United Kingdom, were each charged and pleaded guilty to illegal entry of a removed alien. Devaunx was sentenced on October 26, 2021, to time served and Zargar is scheduled to be sentenced on January 25, 2022.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami investigated this case, with assistance from U.S. Customs and Border Protection, U.S. Customs and Immigrations Enforcement, and the Broward County Sherriff’s Office. Assistant U.S. Attorney David A. Snider prosecuted the case. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-60214-CR-AHS.
###
Justice Department Launches Statewide Disability Rights Investigation into South Carolina’s Use of Adult Care HomesRead the Press Release
The U.S. Department of Justice’s Civil Rights Division announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the State of South Carolina subjects adults with mental illness to unnecessary institutionalization and risk of institutionalization, in adult care homes. The investigation will examine whether South Carolina needlessly segregates individuals with mental illness in adult care homes, known in the State as community residential care facilities, by failing to provide integrated community-based mental health services.
Prior to the announcement, the department informed South Carolina’s Governor’s Office and the South Carolina Attorney General’s Office of the initiation of the investigation.
“People with disabilities have too often been unlawfully isolated in institutions, including state psychiatric hospitals and adult care homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to defend the rights of individuals with mental illness to access the community-based services they need and to participate fully in community living.”
The department has not reached any conclusions regarding the subject matter under investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or through the Civil Rights Division’s Civil Rights Portal, available at https://civilrights.justice.gov/.
Additional information about the Civil Rights Division’s Olmstead enforcement is available on its website at https://www.ada.gov/olmstead/.
Jefferson Parish Drug Dealer Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that GREG TRAHAN, 46, from Jefferson Parish, pled guilty to conspiracy to distribute and possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and possession with the intent to distribute heroin, in violation of Title 21 United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
TRAHAN took part in a conspiracy to distribute methamphetamine throughout Jefferson Parish and surrounding areas for over a year. He also possessed heroin with the intent to distribute.
At sentencing, TRAHAN faces up to a maximum term of imprisonment of up to twenty (20) years, a maximum fine of up to $1,000,000.00, at least three (3) years of supervised release following any term of imprisonment., and a $100 mandatory special assessment fee per count.
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and the St. John Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
Hattiesburg Man Pleads Guilty to Hobbs Act RobberyRead the Press Release
Gulfport, Miss. – A Hattiesburg man pled guilty to unlawfully obstructing, delaying, and affecting commerce by using actual force or violence to steal a firearm from Academy Sports + Outdoors, announced U.S. Attorney Darren J. LaMarca and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration.
On November 6, 2021, Cody Jerome Cooley, 22, visited Academy Sports + Outdoors in Gulfport. Cooley approached the gun counter, where he was served by a store clerk. He then asked to see one of the handguns, a Springfield Armory XDM Elite. The clerk gave Cooley the firearm to examine. Cooley later motioned towards another handgun in the display case. When the clerk turned his head to look at the gun, Cooley looked both ways, struck the clerk in the face with the Springfield Armory handgun, and fled from the store. This was all captured on surveillance footage.
After he fled from the store with the stolen handgun, armed civilians apprehended Cooley in a nearby restaurant parking lot. Post Miranda, Cooley admitted to taking the gun and striking the clerk. The Springfield Armory handgun was recently shipped by Academy Sports and Outdoors from out of state to Mississippi to be sold at the store. The clerk that was struck by Cooley had to receive medical care for his injuries.
Cooley pleaded guilty to unlawfully obstructing, delaying, and affecting interstate commerce by robbery. He is scheduled to be sentenced on April 12, 2022. He faces a maximum sentence of 20 years imprisonment.
The Drug Enforcement Administration and the Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
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.
Harvey Woman Pleads Guilty to Conspiring to Stage Automobile Accident in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DONISESHA LEE (“DONISHA LEE”), age 30, of Harvey, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, before United States District Court Judge Sarah S. Vance arising out of a staged automobile accident with a tractor-trailer occurring in New Orleans.
According to today’s guilty plea, DONISHA LEE, along with her co-defendants, Dewayne Coleman (“Coleman”), Erica Lee Thompson (“Erica Lee”), Aisha Thompson (“Thompson”), Passenger A, and Donreion Lee, conspired to commit mail fraud in connection with a staged accident with their former co-defendant, occurring on September 6, 2017. Today’s guilty plea brings the total number of defendants convicted in “Operation Sideswipe” to thirty (30).
DONISHA LEE admitted that on September 6, 2017, on the I-10 near the Almonaster exit, she was a passenger in Erica Lee’s 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. After the staged accident, the driver exited the RAV4 and told Erica Lee to get behind the wheel of the RAV4 to make it appear that Erica Lee was driving the vehicle at the time of the staged accident. The defendants contacted the NOPD and falsely claimed that Erica Lee was the driver at the time of the collision. Passenger A falsely claimed to the NOPD that she was Thompson.
Approximately one or two days after the staged accident, Coleman, DONISHA LEE, Donreion Lee, Erica Lee, and Thompson went to an attorney’s office for the purpose of collecting money from the insurance and trucking company. Coleman, DONISHA LEE, Donreion Lee, Erica Lee, and Thompson sought medical treatment from doctors and healthcare providers. Thompson was treated despite not being in the RAV4 at the time of the staged accident. DONISHA LEE retained counsel and made a claim for damages. The total settlement for the Averitt accident was approximately $30,000.
On March 26, 2019, DONISHA LEE, Coleman, and Donreion Lee each provided false testimony in depositions taken in conjunction with the Thompson Lawsuit. On April 9, 2019, Thompson provided false testimony in a deposition taken in conjunction with the Thompson Lawsuit. In these depositions, DONISHA LEE, Coleman, Donreion Lee, and Thompson lied about the September 6, 2017 accident including, but not limited to, who was driving the RAV4 and the extent of their injuries.
DONISHA LEE face a maximum sentence of five (5) years of incarceration. Upon release from prison, DONISHA LEE also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Also, DONISHA LEE must pay a $100 mandatory special assessment fee at sentencing. United States District Judge Sarah S. Vance scheduled the sentencing hearing for April 27, 2022.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
Hampton Man with History of Gun Crimes Sentenced to 56 Months for Unlawful Possession of AmmunitionRead the Press Release
CONCORD - Sean R. Meola, 51, of Hampton, was sentenced to 46 months in federal prison for unlawful possession of ammunition and 10 additional months for a supervised release violation, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on January 17, 2021, Hampton police officers responded to a domestic disturbance at Meola’s residence. Officers encountered an injured victim who reported that Meola had assaulted her and threatened to shoot her approximately two days earlier. The victim reported that Meola had a 9mm handgun. Officers obtained a search warrant for Meola’s residence. Officers seized 18 rounds of 9mm ammunition from the residence. Meola is legally prohibited from possessing firearms and ammunition by virtue of prior felony convictions.
At the time of the offense, Meola was on federal supervised release for possession of a firearm by a convicted felon. He has prior federal convictions for bank robbery and using a firearm during a crime of violence.
Meola previously pleaded guilty on August 16, 2021.
“To protect the public from violent crime, it is imperative that we keep firearms and ammunition out of the hands of criminals,” said U.S. Attorney Farley. “This dangerous felon committed multiple prior gun-related crimes and yet continued to possess ammunition while on federal supervised release. Such unlawful conduct threatens public safety and will not be tolerated. As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute violent criminals whose conduct threatens the residents of New Hampshire.”
“Keeping firearms and ammunition out of the hands of dangerous criminal offenders is one of the ATF’s top priorities,” said James M. Ferguson, Special Agent in Charge ATF Boston Field Division. “This is especially important when it comes to individuals who commit domestic violence. ATF is committed to aggressively pursuing individuals who are prohibited from possessing firearms and ammunition, this is another way we prevent gun violence in our communities.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Hampton Police Department. The case was prosecuted by Assistant U.S. Attorney Cam Le.
###
Fort Wayne Man Sentenced to 262 Months in PrisonRead the Press Release
FORT WAYNE – Will A. Harris, Jr., 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to possessing with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Harris Jr. was sentenced to 262 months in prison followed by 4 years of supervised release.
According to documents in the case, on January 15, 2021, Harris Jr. was arrested by the Fort Wayne Police Department after a vehicle pursuit. During the pursuit, Harris Jr. threw baggies of methamphetamine and a firearm out of the car onto the street. Officers were able to recover the discarded narcotics and the firearm. When apprehended, Harris Jr. physically assaulted an officer and later made threats to harm officers and their families.
Harris Jr. has previously been convicted of multiple felony offenses, including, Dealing Cocaine, Battery, Battery to a Law Enforcement Officer Resulting in Injury, and Theft, making him a career offender for purposes of the United States Sentencing Guidelines. Harris Jr. was also on probation at the time he committed his current offense.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Drug Enforcement Administration Laboratory and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case was 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 Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Kevin D. Ricksy a/k/a Kevin Tinsley, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Ricksy was sentenced to 120 months in prison followed by 2 years of supervised release.
According to documents in the case, on April 24, 2021, Ricksy was the passenger in a vehicle stopped by the Fort Wayne Police Department. Officers discovered that Ricksy had an arrest warrant and took him into custody. While doing so, officers located a loaded stolen handgun in the side door pocket where Ricksy was seated. Ricksy also admitted to possessing an AR rifle. Since Ricksy was previously convicted of Robbery, Possession of a Firearm by a Serious Violent Felon and Dealing Cocaine, he is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case was 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.
Former New Mexico School District Employee Sentenced to 18 Months in Federal Prison for Stealing and Reselling Apple Products Meant for Native American School Children and for Tax FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Kristy Stock, age 46, of Waterflow, New Mexico to 18 months federal prison, followed by three years of supervised release, for federal charges of interstate transportation of stolen goods and tax fraud.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to Stock’s plea agreement, and other court documents, beginning in 2014, defendant James Bender agreed to allow a good friend, defendant Saurabh Chawla, and a relative of Chawla’s, SC2, to sell goods and merchandise through Bender’s eBay accounts. Chawla’s eBay account had previously been suspended due to security concerns. From May 2014 through August 2019, Bender and Chawla conspired so Chawla could use Bender’s eBay and PayPal accounts to sell stolen goods and merchandise.
Stock worked for the Central Consolidated School District in New Mexico from 2010 to 2019 and was responsible for overseeing a program to provide Apple iPods to school children with the intent of benefitting Native American children living on tribal reservations in New Mexico. On behalf of the school district, Stock directed federal grant monies be used to make bulk purchase orders of iPods, ranging from 100 to 250 units per order, two to three times each year.
Stock admitted that from 2013 to 2018 she stole more than 3,000 iPods purchased by the school district and sold them on eBay to Chawla and others for her personal benefit. From October 2015 to 2018, Stock and Chawla dealt directly with each other, in emails, texts, and phone calls. Stock repeatedly advised Chawla of the items she had obtained, providing details such as the model, color and number of Apple products available. Chawla and Stock then negotiated a price, and Stock shipped the items to Chawla’s relative on the Eastern Shore in Maryland. Chawla paid Stock through PayPal. Stock admitted that she received more than $800,000 in illegal proceeds from selling stolen iPods worth more than $1 million. After his relative received the stolen goods from Stock, Chawla listed them for sale online through eBay at a substantial markup.
Stock also admitted that she filed false tax returns for calendar years 2012 to 2017, which failed to report significant amounts of taxable income, causing a tax loss to the United States of $270,821.
Saurabh Chawla, age 36, of Aurora, Colorado, and James Bender, age 36, of Baltimore, Maryland, were sentenced to 66 months and to a year and a day in federal prison, respectively. Additionally, Chawla was sentenced to pay restitution to the Internal Revenue Service in the amount of $713,619, and to sign an order of forfeiture requiring him to forfeit a 2013 Tesla Model S, $2,308,062.61 from accounts held in his name, and the sale of property in Aurora, Colorado.
United States Attorney Erek L. Barron commended the IRS-Criminal Investigation and HSI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Former Morgan City Bookkeeper Sentenced to Federal Prison and Ordered to Pay over $3 Million in RestitutionRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Karen Duhon, 67, of Berwick, Louisiana, has been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 60 months in prison, followed by 3 years of supervised release, on mail fraud charges. Duhon was also ordered to pay restitution in the amount of $3,391,598.
A federal grand jury returned an indictment against Duhon in December 2018 and she pleaded guilty on August 12, 2021 to one count of mail fraud. Duhon worked as the bookkeeper at Capital Management Consultants, Inc. (CMCI), a family-owned company located in Morgan City, Louisiana from October 1973 until August 2014. Beginning in approximately January 1999, Duhon took money from CMCI unlawfully. With the assistance of the treasurer of CMCI at the time, Duhon began writing checks to herself in amounts over her allowed salary, which the treasurer would then sign. Duhon deposited the checks in various accounts owned by her and her husband. She would then make false accounting entries in CMCI’s records to disguise these payments. The amount of loss suffered by CMCI was $3,263,677.06.
In addition, Duhon, along with the treasurer, also assisted certain members of the company owner’s family with their personal finances, including paying bills and balancing accounts. This gave Duhon access to checks connected to a specific brokerage account owned by one of the family members. From November 2012 through January 2014, Duhon, with the aid and encouragement of the treasurer, and without authorization of the victim family member, used this brokerage account to pay $127,920.94 in expenses on her personal American Express cards. Further, in December 2013, Duhon, acting with intent to defraud, mailed or caused to be mailed to American Express a check in the amount of $8,370.03 drawn on the victim family member’s account.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney T. Forrest Phillips.
# # #
Former Chief Executive Officer Pleads Guilty to Embezzling More Than $15 Million from Her EmployerRead the Press Release
CHARLOTTE, N.C. – Donna Osowitt Steele, 52, of Taylorsville, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to wire fraud, for embezzling more than $15 million from her former employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to filed plea documents and admissions made by Steele in court, from at least 2013 to January 2020, the defendant executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S. based subsidiary of a foreign company that manufactures carbide products. The owners of Victim Company A and its parent company reside overseas. Court records show that Steele embezzled over $15 million from Victim Company A and used the money to support a business run by her and her family and to fund an extravagant lifestyle.
As Steele admitted in court today, she was employed by Victim Company A from 1999 to January 2020. Initially, Steele worked in the shipping department and was promoted over the next 20 years to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020. While serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, filed court documents show that Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for luxury hotel accommodations and event ticket purchases, to buy expensive jewelry, to pay for family weddings, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company the defendant founded in 2013.
In addition to the credit card purchases, Steele admitted to issuing and causing to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A’s bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A’s bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A’s bank accounts to the defendant’s personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.
According to filed documents, as a result of Steele’s embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, customers complaining about being placed on credit holds, notwithstanding timely payments of their bills, employees having their company credit cards declined when they were trying to use them for legitimate business expenses, employees not being paid on time, and/or employees having their insurance cancelled without warning. Steele admitted that, in an effort to hide the fraudulent scheme, she limited communications and interactions between the employees and owners for Victim Company A and monitored communications that did occur, she convinced employees that company owners should be feared, and lied to employees about the true nature of Victim Company A’s financial trouble.
Steele pleaded guilty to wire fraud embezzlement scheme, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Following the entry of her guilty plea, Steele was released on bond. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.
Assistant United States Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Former Business Owner Sentenced for Failing to Disclose and Pay Taxes on More than $1.2 Million in Business RevenueRead the Press Release
PROVIDENCE, R.I. – The former owner of a Providence-based business that affixed price tags to jewelry for other companies was sentenced today to two years federal probation and ordered to pay the Internal Revenue Service more than $550,000 in back taxes and interest for failing to report more than $1.2 million in business revenue, announced United States Attorney Zachary A. Cunha.
Gladys Rossi, sole owner and operator of the now defunct R.I.J. Inc, pleaded guilty on October 6, 2021, to two counts of filing false tax returns.
According to charging documents, an investigation by Internal Revenue Service Criminal Investigation determined that from 2012 through 2015, Ms. Rossi routinely cashed checks issued to her business by clients, but failed to report the income to the IRS. Ms. Rossi paid employees under-the-table and failed to maintain or prepare business records that accurately tracked expenditures, gross income, net income, profits, and dividend disbursements.
Ms. Rossi failed to report income totaling $1,226,707.21, resulting in an underpayment of taxes of at least $407,767. Accrued interest on the amount of taxes due the IRS totals $147,848.45. As part of the sentence, Ms. Rossi was ordered to pay restitution in the amount of $555,615.45, which is made up of the underpayment sum with interest added.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Florida Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ABINGDON, Va. – A West Palm Beach, Florida man who formerly lived in Georgia was sentenced today to 168 months in federal prison for his role in a methamphetamine distribution conspiracy that trafficked the drug from Atlanta into Lee and Wise counties in Virginia.
Eric Matthew Glass, 36, pleaded guilty in October 2021 to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, between July 2019 and December 2020, Glass conspired with others to distribute methamphetamine throughout Lee and Wise counties in Virginia. Glass was living in Atlanta at the time and was the primary source of supply in the charged conspiracy. He sold multi-kilogram quantities of methamphetamine at a time to his Virginia co-conspirators, for approximately $12,000 per kilogram. The methamphetamine was then taken back to Wise and Lee counties for further distribution. On at least one occasion, Glass instructed co-conspirator Daniel Rowland to wire money from the Food City in Wise, Virginia, to four persons located in Mexico, to pay for methamphetamine Rowland had obtained through Glass.
Co-conspirators Justin Cress and Cory Hammond were each previously sentenced to 135 months incarceration for their roles in the conspiracy. Co-conspirators Daniel Rowland, Jessica Robey, and Jonathan Rollins will be sentenced later this month.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wise County Sheriff’s Office, the Southwest Virginia Drug Task Force, and the Virginia State Police investigated the case, with assistant from the United States Marshal’s Service.
Assistant U.S. Attorney Lena Busscher prosecuted the case.
Florida Co-Owner of Clinical Trial Company Pleads Guilty to Obstructing FDA InspectionRead the Press Release
A Florida woman pleaded guilty today to obstructing a 2017 regulatory inspection in connection with an alleged scheme to fraudulently falsify clinical drug trial data.
According to court documents, Olga Torres, 49, of Miami, co-owned a clinical research site called Unlimited Medical Research. Unlimited Medical Research was one of many companies hired to conduct a clinical trial designed to investigate the safety and efficacy of an asthma medication in children. As part of her plea agreement, Torres admitted that she knowingly lied to a U.S. Food and Drug Administration (FDA) investigator during a 2017 regulatory inspection concerning the firm. Specifically, Torres admitted that she falsely portrayed the clinical trial as having been conducted legitimately and honestly, when in fact Torres knew that certain data associated with the clinical trial had been falsified. Three other defendants — Yvelice Villaman Bencosme M.D., Lisett Raventos and Maytee Lledo — previously pleaded guilty and were sentenced in connection with falsifying data associated with the clinical trial at Unlimited Medical Research.
“Clinical trials help ensure the safety of new drugs, and falsifying clinical trial data can put the public at risk,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “We will continue to work with our partners at the FDA to investigate and prosecute those who undermine the integrity of the clinical trial process.”
“The public depends on the accuracy and integrity of clinical trial data,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Falsifying clinical data violates the public’s trust and endangers the safety of consumers. Those who unlawfully profit by compromising the public’s health in this way commit serious crimes and will be prosecuted.”
“Reliable clinical trial data is a foundation for FDA drug approval. Falsifying that data leaves consumers at risk of taking drugs that are neither safe nor effective,” said Assistant Commissioner Catherine A. Hermsen for the FDA Office of Criminal Investigations (OCI). “We will continue to investigate and bring to justice those who endanger the public health when they engage in conduct that might subvert the FDA approval process.”
The FDA OCI is investigating the case.
Trial Attorneys Joshua D. Rothman and Marilee L. Miller and Senior Litigation Counsel David Frank of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided critical assistance.
First Olympic Anti-Doping Charges Filed in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of the first criminal charge under the Rodchenkov Anti-Doping Act, signed into law on December 4, 2020, which proscribes doping schemes at international sports competitions, including the Olympic Games. The Complaint unsealed today alleges that ERIC LIRA, a “naturopathic” therapist operating principally in the area of El Paso, Texas, obtained various performance enhancing drugs (“PEDs”) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021. LIRA was taken into federal custody today and is expected to be presented in the Western District of Texas today before U.S. Magistrate Judge Miguel A. Torres.
U.S. Attorney Damian Williams said: “At a moment that the Olympic Games offered a poignant reminder of international connections in the midst of a global pandemic that had separated communities and countries for over a year, and at a moment that the Games offered thousands of athletes validation after years of training, Eric Lira schemed to debase that moment by peddling illegal drugs. The promise of the Olympic Games is a global message of unification. Today, this Office sends a strong message to those who would taint the Games and seek to profit from that corruption.”
FBI Assistant Director Michael J. Driscoll said: “Performance enhancing substances deprive competitors of a level playing field. We allege Mr. Lira knew he was breaking the rules when he communicated with Olympians through an encrypted messaging app to hide his illegal activity. It's not winning if you take illegal substances - it's cheating, and Mr. Lira will now be forced to face the consequences of his alleged criminal actions.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
The charges in this Complaint arises from an investigation of a scheme to provide Olympic athletes with PEDs, including drugs widely banned throughout competitive sports such as human growth hormone and the “blood building” drug erythropoietin, in advance of and for the purpose of corrupting the 2020 Olympic Games, which convened in Tokyo in the summer of 2021. LIRA, who claims to be a “kinesiologist and naturopathic” doctor operating principally in and around El Paso, Texas, obtained misbranded versions of these, and other, prescription drugs from sources in Central and South America, before bringing those drugs into the United States and distributing them to, among other, the two athletes referred to in the Complaint as “Athlete-1” and “Athlete-2.” Throughout the scheme, LIRA and Athlete-1 communicated via encrypted electronic communications discuss the sale, shipment, and use of LIRA’s illegal drugs, and specifically discussed the “testability” of those drugs by anti-doping authorities. For example, on or about June 13, 2021, Athlete-1 wrote to LIRA, “So I took 2000ui of the E [erythropoietin] yesterday, is it safe to take a test this morning?” LIRA replied, “Good day [Athlete-1] . . . . 2000 ui is a low dosage.” Athlete-1 replied further, “Remember I took it Wednesday and then yesterday again / I wasn’t sure so I didn’t take a test / I just let them go so it will be a missed test.”
LIRA and Athlete-1, in particular, explicitly acknowledged the effectiveness of the doping program achieved through the use of LIRA’s illegal drugs. On or about June 22, 2021, Athlete-1 wrote to LIRA, “Hola amigo / Eric my body feel so good / I just ran 10.63 in the 100m on Friday / with a 2.7 wind / I am sooooo happy / Ericccccccc / Whatever you did, is working so well.” Shortly thereafter, and in advance of Athlete-1’s arrival in Tokyo to compete in the 2020 Olympics, LIRA encouraged his client: “What you did . . . is going to help you for the upcoming events. You are doing your part and you will be ready to dominate” (ellipsis in original).
Notwithstanding the attempt to evade anti-doping tests, LIRA and Athlete-1 were discovered in their scheme. On or about July 19, 2021, Athlete-1underwent an out-of-competition blood collection for purposes of drug testing by the Athletics Integrity Unit, a body charged with ensuring fair competition and prevention of doping at the Tokyo Olympics, among other competitions. The results of that testing reflected Athlete-1’s use of human growth hormone. On or about July 30, 2021, Athlete-1 was provisionally suspended from Olympic competition, including in the women’s 100m semi-finals set to take place that same evening.
LIRA is the first defendant charged pursuant to the recently enacted Rodchenkov Act. On December 4, 2020, the Rodchenkov Act was signed into law, Pub. L. 116-206, and incorporated into Title 21 of the United States Code at sections 2401 through 2404. The Rodchenkov Act prohibits any person, other than an athlete, to knowingly carry into effect, attempt to carry into effect, or conspire with any other person to carry into effect a scheme in commerce to influence by use of a prohibited substance or prohibited method any major international sports competition. 21 U.S.C. § 2402.
ERIC LIRA, 41, of El Paso, Texas, is, in addition to the charge under the Rodchenkov Act, accused of conspiring with others to violate the drug misbranding and adulteration laws of the United States, in violation 18 U.S.C. § 371 and 21 U.S.C. §§ 331 & 333(a)(2). The maximum term of imprisonment under the Rodchenkov Act is 10 years, and the maximum term of imprisonment for conspiring to violate the misbranding laws is 5 years. These maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge assigned to each case.
* * *
Mr. Williams praised the outstanding investigative work of the FBI and the FBI’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the United States Anti-Doping Agency for their support of this investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Sarah Mortazavi and Andrew C. Adams are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Felon Sentenced to 15 Years in Federal Prison for Firearms Possession and Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 180 months in prison followed by three years of supervised release on one count of Being a Felon in Possession of a Firearm and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, On December 18, 2020, Detectives with the Fourth Judicial District Drug Task Force (DTF) were called by Springdale Police to assist in a parole search of Rodney Luis Reed’s (age 49) residence in Springdale Arkansas.
While officers were conducting the search, Reed attempted to flee the residence and officers had to use force to take Reed into custody.
During the search, officers located a .22 caliber pistol, a distribution amounts of methamphetamine, a distribution amount of cocaine, digital scales, baggies and $794.00.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force and the Springdale Police Department investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case was prosecuted as 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.
Fayette County Man Sentenced to More than 20 Years in Federal Prison for Sex Offense Against a MinorRead the Press Release
CHARLESTON, W.Va. – A Fayette County man was sentenced today to 21 years and 10 months in prison for attempted enticement of a minor to engage in illegal sexual activity. Christopher Lee Foster, 36, of Oak Hill, previously pleaded guilty to the charge in September 2021.
According to the plea agreement, Foster admitted that in early March 2021 he initiated contact with a person via a messaging application. Believing this person to be a 13-year-old girl from New Jersey, Foster engaged in conversations over the next 2 months wherein he told the minor he wanted to meet her to engage in sexual activity. After learning that the girl was sexually inexperienced, Foster sent her pictures of his penis as well as numerous images and videos of pornography to teach her about sex. Foster also repeatedly pressured the minor to send him sexually explicit photographs of herself, even offering to pay her for such images. Foster further admitted that in approximately 2015 and 2016 he produced (or caused the production of) sexually explicit images of a different minor.
Following his release from prison, Foster will be required to serve a 20-year term of supervised release. He will also be required to register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the work of the U.S. Department of Homeland Security - Homeland Security Investigations (HSI).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 2:21-cr-00095.
###
Dominican National Indicted on Fentanyl Trafficking ChargesRead the Press Release
BOSTON – A Dominican national residing in Boston was indicted by a federal grand jury today on three drug-trafficking charges involving fentanyl.
Luis Sonier Bautista Moreta, 25, was indicted on two counts of distribution and possession with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. Bautista was arrested and charged on Nov. 10, 2021 and has remained in custody since that time.
According to the charging documents, a relative of Bautista negotiated two sales of fentanyl to an undercover officer. It is alleged that Bautista handled the sales transactions, which took place on Oct. 22, 2021, at the Home Depot in Attleboro and on Nov. 1, 2021, at a location in Dorchester. The first transaction allegedly involved one kilogram of fentanyl and 6,000 counterfeit pills containing fentanyl and that the second transaction involved an additional kilogram of fentanyl. Additionally, Bautista is alleged to have possessed additional fentanyl at the time of his arrest in Boston.
The charge of distribution and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Boston Police Department. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Diabetic Shoe Company Agrees to Pay $5.5 Million to Resolve False Claims Act Allegations Regarding “Custom” Shoe InsertsRead the Press Release
Miami, Florida – Foot Care Store, Inc. d/b/a Dia-Foot (Dia-Foot), a diabetic shoe company based in Wellington, Florida, and its President and CEO Robert Gaynor, have agreed to pay $5,538,338 to settle allegations that the company sold custom diabetic shoe inserts that were not actually custom-fabricated in accordance with Medicare standards. The agreement is part of a civil settlement that resolves claims brought under the False Claims Act.
The United States alleged that between 2013 and 2018, Dia-Foot sold diabetic shoe inserts to customers nationwide, representing that many of those inserts were custom-made for an individual’s foot, when the inserts were actually made using generic foot models. The inserts were dispensed to diabetic patients who had a prescription from a health care provider and who believed they were getting a custom product. According to the government, despite fabricating the inserts using generic models, Dia-Foot billed Medicare and Medicaid for the custom version, or sold the inserts to other providers who then billed government health care programs for custom inserts. This allowed Dia-Foot to produce and sell more inserts and increase profits by cutting corners. The government also alleged that Dia-Foot advertised to customers that it was proud to be Medicare-compliant and had received Medicare approval for its custom diabetic shoe inserts, even though Dia-Foot received the Medicare approvals based on false information.
Individuals with diabetes can in some cases suffer from foot problems, including nerve damage, ulcers, and poor circulation. In severe cases, untreated problems can even lead to amputation. Foot orthotics such as custom shoe inserts are prescribed to help diabetic patients prevent such problems and are covered by Medicare and Medicaid.
In connection with the settlement, Dia-Foot and Robert Gaynor entered into a three-year Integrity Agreement (IA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The IA requires, among other things, that Dia-Foot implement updated policies and procedures as part of its compliance program, and hire an Independent Review Organization to review quarterly Dia-Foot’s claims to Medicare and Medicaid.
The allegations were brought under the qui tam or whistleblower provisions of the False Claims Act by a former Dia-Foot employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblower who brought the allegations in this case will receive a share of the settlement amount. The case is captioned U.S. ex rel. Newman v. Foot Care Store, Inc. d/b/a Dia-Foot, No. 9:18-CV-80702 (S.D. Fla.).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the HHS-OIG. Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, HHS-OIG, announced the settlement.
The investigation and resolution of this matter illustrate the government’s emphasis on combatting health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477) or at http://tips.hhs.gov/.
The matter was handled by Assistant U.S. Attorney Clarissa Pinheiro Schild of the Southern District of Florida. The integrity agreement was negotiated by OIG Senior Counsel Tonya Keusseyan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
###
Couple Pleads Guilty to $5.1 M Pandemic Loan FraudRead the Press Release
NEWPORT NEWS, Va. – A couple who formerly resided in Hampton pleaded guilty today to submitting fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Malik Mitchum, 26, and Jenna Mitchum, 25, worked together to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs, initiated and expanded under The Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic. Malik and Jenna Mitchum falsely claimed that they were owners of at least five small businesses struggling during the pandemic. In reality, Malik Mitchum was a junior enlisted member of the Air Force and Jenna Mitchum was unemployed.
Between March 2020 and May 2021, Malik and Jenna Mitchum submitted at least 19 fraudulent applications for pandemic-related loan benefits that contained false statements and misrepresentations about their income, employment, and claimed business entities. They are further linked to more than 20 other fraudulent loan applications by the IP address used to submit the applications or wire transfers of fraud proceeds. They intended to defraud the government out of more than $5.1 million and caused an actual loss to the United States and participating financial institutions of more than $1.4 million. Malik and Jenna Mitchum spent much of the fraud proceeds they obtained on luxury purchases, like a Rolex watch for $38,743.00.
Malik and Jenna Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. They both face a maximum penalty of 30 years in prison. Malik and Jenna Mitchum are scheduled to be sentenced on July 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Brig. Gen. Terry L. Bullard, Commander of the Office of Special Investigations for the U.S. Air Force and Space Force, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney D. Mack Coleman is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Virginia Coronavirus Fraud Task Force is a federal and state partnership led by the Eastern and Western Districts of Virginia along with fraud investigators from the FBI and Virginia State Police. The task force’s mission is to identify, investigate, and prosecute fraud related to the ongoing pandemic. The task force reviews and investigates all credible leads of fraud associated with COVID-19, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens. On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-85.
Companies Agree to Pay $1.15 Million to Resolve Allegations of Fraud in Obtaining Army Contracts Reserved for Eligible Small BusinessesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Idaho-based Native American Services Corp. (NASCO) and Texas-based Mirador Enterprises, Inc. (Mirador) have agreed to pay $1.15 million to the United States to resolve allegations of fraud related to two construction contracts at Colorado’s Fort Carson Army installation. NASCO will pay $750,000 of the settlement amount, and Mirador will pay $400,000.
The United States’ investigation of NASCO and Mirador focused on two construction contracts (together, “the Fort Carson Projects”). One contract was reserved for eligible participants in the Small Business Administration’s “8(a) Program” for economically and socially disadvantaged small businesses, and another project was set aside for eligible small businesses. When the solicitation for the Fort Carson Projects was issued, Mirador qualified both as a small business and as an 8(a) Program participant. NASCO served as a mentor to Mirador through the SBA’s Mentor-Protégé Program, which is designed to help eligible small businesses gain capacity and win government contracts through partnerships with more experienced companies. But NASCO was not itself eligible for small business set-aside contracts.
The United States contends that although the bids for the Fort Carson Projects were submitted in Mirador’s name and listed Mirador as the prime contractor, the bids were in fact prepared by NASCO with the intent that NASCO take on the primary role in the performance of the contracts, which was not allowed. The United States contends that NASCO took the lead in the performance of the Fort Carson Projects, and provided assistance on the projects that far exceeded what was permitted under the Mentor-Protégé relationship.
The United States also contends that after the United States notified Mirador of its concerns about NASCO’s improper level of involvement, NASCO and Mirador took steps to conceal the fraud. The United States alleges, for example, that NASCO and Mirador took actions that made it appear that NASCO was transferring employees to Mirador, but these employees remained under NASCO’s control; that NASCO gave information to Mirador employees to make them appear more involved or knowledgeable about the Fort Carson Projects than they actually were; and that NASCO drafted correspondence for Mirador’s signature, to be sent to the United States.
“Set-aside contracts provide opportunities for small, historically disadvantaged businesses. These programs benefit taxpayers and consumers by supporting healthier and more competitive markets,” said United States Attorney Cole Finegan. “Those important goals are undermined when companies exploit those programs by committing fraud.”
“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy—small businesses,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG continues to relentlessly root out and protect the integrity of all SBA’s programs. I want to thank the U.S. Attorney’s Office for its leadership, dedication and continual collaboration in pursuing justice.”
"Today's outcome demonstrates the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD contracting process, including set-aside programs intended to help smaller and/or disadvantaged businesses," said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to aggressively pursue and hold accountable those individuals who take advantage of these programs and illegally profit from taxpayer resources.”
“This result is a clear example of the continued dedication by the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Unit (MPFU) and joint federal agency law enforcement partners who work diligently every single day to root out fraud and deception carried out by U.S. Government contractors,” said Ray Rayos, Special Agent in Charge, SW Fraud Field Office, San Antonio, TX.
The claims settled by this civil agreement are allegations. In entering into this settlement, NASCO and Mirador did not admit to any liability.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
###
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Colombian National Extradited from Panama Pleads Guilty to Drug Charges in the United StatesRead the Press Release
Tampa, Florida – Gerardo Gomez-Lubo, a/k/a Francisco Niño (42, Colombia), has pleaded guilty to conspiracy to distribute cocaine knowing and intending it to be imported into the United States. Gomez-Lubo faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning in approximately September 2017 and continuing through 2019, Gomez-Lubo was part of a transnational criminal conspiracy that transported cocaine from Colombia, through Central America and the Caribbean, directly to the United States, including Texas, California, Hawaii, and Florida. The cocaine distributed by Gomez-Lubo and others displayed identifying symbols and marks. Those marks were found in kilograms of cocaine recovered by law enforcement in New York, Pennsylvania, and Florida.
Gomez-Lubo’s co-defendant, Piero Antonio Lubo-Barros, was also indicted.
Lubo-Barros was arrested in Costa Rica in January 2021, living under an assumed identity. He was extradited to the United States in March 2021 and is currently pending trial in Tampa.
This case was investigated by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
The Department of Justice’s Office of International Affairs provided significant assistance with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance in Gerardo Gomez-Lubo’s extradition from Panama to the Middle District of Florida.
This case was 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. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Clearfield County Woman Pleads Guilty in Meth Distribution ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield County pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Amber Gallaher, 30, of Woodland, Pennsylvania, pleaded guilty to a lesser included offense at Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Gallaher did conspire to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for May 11, 2022. The law provides for a minimum sentence of 5 years in prison and a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Gallaher. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Carlsbad man pleads guilty to enticement of a childRead the Press Release
ALBUQUERQUE, N.M. –Billy George West, 78, of Carlsbad, New Mexico, pleaded guilty in federal court on Jan. 10 to enticement of a minor. West will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on April 30, 2021, West exchanged sexually explicit messages via telephone with a nine-year old girl in Florida. During the exchange, West using the screen name “Piper,” sent a photo of his genitalia and received a photo of the victim’s genitalia. West admitted that he knew the victim was a minor.
West faces a minimum of 10 years and up to a statutory maximum of life in prison.
The Roswell Resident Agency of the FBI Albuquerque Field Office and the Carlsbad Police Department investigated this case with assistance from the Eddy County Sheriff’s Office. Assistant United States Attorney Marisa A. Ong is prosecuting the case.
Breathitt County Man Sentenced to 105 Months for Armed Marijuana TraffickingRead the Press Release
FRANKFORT, Ky. – A Lost Creek, Ky., man, Kevin Combs, 32, was sentenced to 105 months in federal prison on Tuesday, before U.S. District Judge Gregory Van Tatenhove, after pleading guilty to cultivating more than 50 marijuana plants and brandishing a firearm in relation to a drug trafficking crime.
According to Combs’ guilty plea agreement, on July 16, 2020, Kentucky State Police responded to an investigation regarding suspected marijuana plants growing in a field. At the location, Combs confronted one of the officers, pointing a stainless-steel, loaded revolver pistol. When the officer told Combs to lower his pistol, he refused, ran away, and hid the pistol. The pistol was subsequently recovered as evidence. Combs further admitted to cultivating more than 50 marijuana plants on the property.
Combs has several prior state felony convictions, including fleeing and evading law enforcement, escape, trafficking in a controlled substance first degree, and trafficking in a controlled substance second degree.
Combs pleaded guilty in September 2021.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the sentence.
Under federal law, Combs must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
The investigation was conducted by the ATF and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger West.
— END —
Berkeley County woman admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ataiah J. Turner, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Turner, also known as “Queen,” 25, pleaded guilty today to one count of “Distribution of Fentanyl.” Turner admitted to selling fentanyl in January 2021 in Berkeley County.
Turner faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belmont County man admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – William Tyrone Stovall, of Bridgeport, Ohio, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Stovall, 36, pleaded guilty today to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Stovall admitted to selling cocaine base, also known as “crack,” near Wheeling Central Catholic High School in Ohio County in August 2020.
Stovall faces at least one year and up to 40 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Another Defendant Involved in Organized Crime Drug Enforcement Task Force Operation Receives Federal SentenceRead the Press Release
SHREVEPORT, La. – Another defendant who was charged as part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Hustle City” was sentenced today by Chief United States District Judge S. Maurice Hicks, Jr., announced United States Attorney Brandon B. Brown.
Robert Lynn Baulkman, 35, of Shreveport, Louisiana, was sentenced to 16 months in prison, followed by 3 years of supervised release. Baulkman was charged in a Bill of Information with one count of conspiracy to distribute methamphetamine and he pleaded guilty to that charge on September 7, 2021. The charge was the result of an investigation led by agents with the U.S. Drug Enforcement Administration (DEA) into the drug trafficking activities of individuals in the Shreveport/Bossier City area in 2018, including Baulkman. Agents conducted surveillance and observed Baulkman meet one of his co-conspirators and provide him with a bag that was believed to contain marijuana and methamphetamine. The co-defendant then provided the bag to an individual who had made arrangements to purchase the narcotics. Agents obtained the purchased narcotics and sent them to the crime laboratory for analysis. The lab results confirmed that the marijuana weighed 1,737 grams and the pills contained 46.65 grams of a mixture and substance of methamphetamine.
Federal agencies including DEA, Department of Homeland Security, ATF, FBI, U.S. Marshal’s Service and U.S. Postal Inspection Service, all worked jointly with the Louisiana State Police, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Bossier City Police Department, Desoto Parish Sheriff’s Office, Lincoln Parish Sheriff’s Office, Ruston Police Department and Ouachita Parish Sheriff’s Office, in conducting the investigation of Baulkman and his co-conspirators. U.S. Attorney Brandon B. Brown is prosecuting the cases.
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.
# # #
Amtrak Pays over $2 Million to Individuals in Disability SettlementRead the Press Release
The Department of Justice today announced that Amtrak paid over $2 million to more than 1,500 individuals who experienced disability discrimination while traveling or attempting to travel by train. The payments were part of a comprehensive settlement agreement reached on Dec. 2, 2020, to resolve the United States’ determination that Amtrak failed for over a decade to make existing stations in its intercity rail transportation system accessible to people with disabilities, including those who use wheelchairs, as required by the Americans with Disabilities Act (ADA). The payments follow a year-long process to identify victims of that discrimination.
“As a result of the Justice Department’s efforts, more than 1,500 people with disabilities harmed by Amtrak’s inaccessible rail stations are receiving compensation for the discrimination they experienced,” said Assistant Attorney Kristen Clarke of the Justice Department’s Civil Rights Division. “These payments, as well as Amtrak’s ongoing efforts to make rail stations accessible pursuant to our settlement agreement, bring both Amtrak and our nation one step closer to realizing the ADA’s promise of equal opportunity for people with disabilities.”
The December 2020 agreement requires Amtrak to make its intercity rail system accessible, prioritizing stations with the most significant barriers to access. In the next nine years, Amtrak is required to complete designs to make at least 135 of its existing stations accessible, complete construction at 90 of those stations, and begin construction at 45 more. Amtrak will also train staff on ADA requirements and implement an improved process for accepting and handling ADA complaints. Amtrak recently established an Office of the Vice President of Stations, Properties & Accessibility to coordinate its compliance with the ADA.
This action was brought by the Disability Rights Section of the Justice Department’s Civil Rights Division. To read the settlement agreement and complaint, please click here. For individual questions about the compensation fund, please contact the Fund Administrator at www.AmtrakDisabilitySettlement.com. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Albany Woman Charged with Burglarizing Albany VA BuildingRead the Press Release
ALBANY, NEW YORK – Jamie Varieur, age 42, of Albany, was arrested today and charged with burglarizing a dwelling at the Albany Stratton Veterans Affairs Medical Center (VAMC).
The announcement was made by United States Attorney Carla B. Freedman; Christopher Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General; and Chief Eric Hawkins, Albany Police Department.
According to the complaint, on August 22, 2021, Varieur broke into and entered the Fisher House, a home on VA property where military and veteran families can stay while a loved one is in the hospital, where she stole various items from the kitchen. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Varieur carries a maximum sentence of 15 years in prison, a fine of up to $5,000, and a term of supervised release up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Varieur appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.
This case is being investigated by the U.S. Department of Veterans Affairs Office of Inspector General, the Albany Police Department, and the Veterans Affairs Police Service at the Albany VAMC, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
11 January 2022
Winamac Man Sentenced to 97 Months in PrisonRead the Press Release
SOUTH BEND – Terry Cottrell, 38 years old, of Winamac, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to possession of child pornography, announced United States Attorney Clifford D. Johnson.
Cottrell was sentenced to 97 months in prison followed by 10 years of supervised release. Cottrell was ordered to pay $39,000 in restitution.
According to documents in the case, in October of 2019, law enforcement discovered over 9,000 images and seven videos of child pornography on Cottrell’s cell phone and laptop computer. Cottrell confessed to possessing the images. Cottrell’s criminal history includes a conviction for breaking into a library in 2003 to look up child pornography on a library computer.
This case was investigated by Homeland Security Investigations with the assistance of the Indiana State Police. This case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
###
Virginia Man Sentenced over 12 years for Trafficking MethamphetamineRead the Press Release
ABINGDON, Va. – A Bishop, Virginia man, who conspired with others to traffic more than 4,500 grams of methamphetamine from Georgia and Tennessee into Lee County, Virginia, was sentenced today to 151 months in federal prison.
Bradley Allen Doss, 36, pleaded guilty in September 2021 to one count of possessing with the intent to distribute 500 grams or more of methamphetamine, one count of possession of a firearm by a convicted felon, and one count of possession of a stolen firearm.
“The U.S. Attorney’s Office is grateful for the coordinated, multi-agency investigation efforts of our law enforcement partners and remains firmly committed to prosecuting those who traffic in large quantities of methamphetamine that fuel the devastating addiction epidemic blanketing our Nation,” United States Attorney Christopher R. Kavanaugh said today.
According to court documents, a search warrant conducted at Doss’s residence on May 14, 2021 resulted in authorities finding over 4,500 grams of methamphetamine, $46,716 in cash, and multiple firearms. One of the firearms, a Ruger rifle, was found to be stolen.
Doss admitted to purchasing significant quantities of methamphetamine for further distribution from sources in Georgia and Tennessee.
The Tazewell County Drug Task Force, the Tazewell County Sheriff’s Office, the Virginia State Police, the Tazewell County Commonwealth Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
United States Attorney Announces a Rhame, ND Man Sentenced to Life in Federal Prison for Sexual Abuse of a ChildRead the Press Release
BISMARCK - United States Attorney Nicholas W. Chase announced that U.S. District Court Judge Daniel M. Traynor sentenced Douglas James Schneider, Age 51 of Rhame, ND, to life in Federal Prison for the offense of Transportation of a Minor, 18 U.S.C. 2423(a). Judge Traynor also sentence Schneider to 10 years supervised release, and restitution in the amount of $19,215.
Investigation determined that between 2013 and 2018, Schneider sexually abused a minor child under the age of twelve years, when the minor child was between seven and ten years of age. Sometime between April and July 2018, Schneider transported the minor child from North Dakota to Montana with the intent of and engaging in unlawful sexual acts with the minor.
"This was an egregious case of victimization of a child. The multi-jurisdictional group of law enforcement, local, state, and federal, masterfully developed this case for prosecution" said United States Attorney Nick Chase, and "this sentence means this defendant will never victimize a child ever again."
"No one should be forced to live in a world of isolation, servitude and terror" said acting Special Agent in Charge Jamie Holt, of HSI St. Paul. "HSI and its law enforcement partners are committed to protecting the vulnerable, and will aggressively investigate criminals who traffic children for sexual purposes."
This case was investigated by the Department of Homeland Security Investigations; North Dakota Bureau of Criminal Investigations; North Dakota Human Trafficking Task Force; Pennington County Sheriff’s Office, SD; and Bowman County Sheriff’s Department, ND, and the case was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Gary Delorme assigned to the case.
######
UC San Diego Health Pays $2.98 Million to Resolve Allegations of Ordering Unnecessary Genetic TestingRead the Press Release
Assistant U. S. Attorneys Joseph Price (619) 546-7642 and Joseph Purcell (619) 546-7643
NEWS RELEASE SUMMARY – January 11, 2022
SAN DIEGO – UC San Diego Health, the academic health system of the University of California, San Diego, has paid $2.98 million to resolve allegations that it violated the False Claims Act by ordering medically unnecessary genetic testing reimbursed by Medicare, the Justice Department announced today.
The settlement resolves allegations that, from December 2015 to October 2019, UC San Diego Health ordered and submitted referrals for medically unnecessary genetic testing performed by CQuentia Arkansas Labs, CQuentia NGS, and Total Diagnostic II (collectively “the CQuentia labs”). The government alleged that this conduct led to the submission of false claims for payment to Medicare for unnecessary genetic testing.
“Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare,” said U.S. Attorney Randy Grossman. “This settlement is another example of this office’s commitment to work with our law enforcement partners to hold medical providers accountable when their conduct leads to taxpayers bearing the cost of improper billing practices.” Grossman thanked the prosecution team and investigators for their excellent work on this case.
“Hospitals are the gatekeepers for medical care and are expected to ensure that all services performed at their direction, including genetic tests, are medically appropriate,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”
“This resolution demonstrates the FBI’s commitment to pursuing those who abuse our health care system,” said FBI Special Agent in Charge Suzanne Turner. “False claims diminish trust in our health care while generating enormous unnecessary costs and the FBI is proud to work alongside our federal partners to disrupt such schemes.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of California, with assistance from the U.S. Department of Health & Human Services Office of Inspector General and the FBI.
The government’s pursuit of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled by Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Joseph Price and Joseph Purcell of the U.S. Attorney’s Office for the Southern District of California.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
UC San Diego Health Pays $2.98 Million to Resolve Allegations of Ordering Unnecessary Genetic TestingRead the Press Release
UC San Diego Health, the academic health system of the University of California, San Diego, has paid $2.98 million to resolve allegations that it violated the False Claims Act by ordering medically unnecessary genetic testing reimbursed by Medicare.
The settlement resolves allegations that, from December 2015 to October 2019, UC San Diego Health ordered and submitted referrals for medically unnecessary genetic testing performed by CQuentia Arkansas Labs, CQuentia NGS and Total Diagnostic II (collectively “the CQuentia labs”). The government alleged that this conduct led to the submission of false claims for payment to Medicare for these tests.
“Hospitals are the gatekeepers for medical care and are expected to ensure that all services performed at their direction, including genetic tests, are medically appropriate,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”
“Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare,” said U.S. Attorney Randy Grossman for the Southern District of California. “This settlement is another example of this office’s commitment to work with our law enforcement partners to hold medical providers accountable when their conduct leads to taxpayers bearing the cost of improper billing practices.”
“This resolution demonstrates the FBI’s commitment to pursuing those who abuse our health care system,” said Special Agent in Charge Suzanne Turner of the FBI San Diego Field Office. “False claims diminish trust in our health care while generating enormous unnecessary costs, and the FBI is proud to work alongside our federal partners to disrupt such schemes.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of California, with assistance from the U.S. Department of Health & Human Services Office of Inspector General and the FBI.
The government’s pursuit of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled by Trial Attorney Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Joseph Price and Joseph Purcell of the U.S. Attorney’s Office for the Southern District of California.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office Commemorates 11th Annual Human Trafficking Prevention MonthRead the Press Release
COLUMBIA, SOUTH CAROLINA — The U.S. Attorney’s Office for the District of South Carolina today commemorates National Human Trafficking Awareness Day, as part of the 11th annual National Slavery and Human Trafficking Prevention Month, and affirms its continued commitment to work with federal, state, and local partners in combatting human trafficking in all its forms.
“Human trafficking is nothing short of modern-day slavery. It strips away the most fundamental promises of our country – life, liberty, and the right to be free,” said U.S. Attorney Corey F. Ellis. “Traffickers prey upon the vulnerable and push them into forced labor or commercial sex. That is why the fight against human trafficking is one of this office’s top priorities, and we must do everything in our power to bring swift prosecution against traffickers and to seek justice for survivors. We will work with our federal, state, and local partners to relentlessly pursue, prosecute, and punish those who exploit the most vulnerable in our society.”
Along with the Department of Justice, the U.S. Attorney’s Office for the District of South Carolina is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and restoring the lives of survivors, all while strengthening strategic anti-trafficking partnerships.
Federal agencies in the District of South Carolina, in conjunction with state and local partners, have investigated hundreds of leads linked to sex and labor trafficking in the last year alone. These investigations have resulted in numerous federal and state human trafficking prosecutions. Some of the major human trafficking cases brought by the U.S. Attorney’s Office in the last year include the following:
- United States v. Elizabeth Balcazar, Enrique Balcazar, and Balcazar Nature Harvesting, LLC. Criminal No. 3:21-cr-834-JMC. According to the indictment, on December 7, 2021, a federal grand jury sitting in Columbia indicted the defendants on five counts related to forced and exploitative labor, including labor trafficking, conspiracy to commit labor trafficking, the confiscation of passports in connection with labor trafficking, and fraud in foreign labor contracting. The indictment describes the manner and means by which the defendants are alleged to have exploited foreign national seasonal laborers in South Carolina farms, including by force and threats of force, serious harm and threats of serious harm, by forcing laborers to work excessive hours, by underpaying workers, by threatening deportation, and through the use of a firearm. The defendants remain detained pending the outcome of the case.
- United States v. Earl Dawson Caldwell IV, Cedrick Ventiego Riley, and Jessica Michelle Mills. Criminal No. 9:21-cr-317-DCN. According to the indictment, on October 2021, a federal grand jury sitting in Charleston charged the defendants in a multi-count superseding indictment alleging conspiracy to sex traffic minors, production of child pornography, multiple counts of sex trafficking of a minor, and felon in possession of a firearm and ammunition. The defendants remain detained pending the outcome of the case.
- United States v. Hart William Grow, Theodore Woolings Bye III, Sanadin Mohamed Elrayes, and Charles Joseph Spillane. Criminal No. 4:21-cr-173-SAL. According to the indictment, in July 2021, a federal grand jury sitting in Florence charged the defendants in a 13-count superseding indictment alleging conspiracy to sex traffic minors, sex trafficking of minors, conspiracy to coerce a minor and to produce child pornography, four counts of coercion and enticement of a minor, four counts of production of child pornography, and two counts of possession of child pornography. The defendants have all plead guilty to related charges, including human trafficking, coercion of a minor, and transfer of obscene materials.
- United States v. Brian Lydell Robinson, a/k/a “Mr. Marshal,” a/k/a “Trevor.” Criminal No. 2:21-cr-211-RMG. According to the indictment, in April 2021, a federal grand jury sitting in Charleston charged Robinson in a multi-count indictment alleging human trafficking, impersonating an officer of the United States, extortion, and Hobbs Act extortion. The defendant remains detained pending the outcome of the case.
- United States v. Gary Garland, Shannon Garland, Johnnie Wells, Michael Skelton, Duwone Allen, Glen Whitcomb, Kianna Dailey, and John Towery. Criminal No. 8:20-CR-452-DCC. According to the indictment, in April 2021, a federal grand jury sitting in Greenville charged the defendants in a multi-count superseding indictment alleging conspiracy to sex traffic minors, conspiracy to produce child pornography, sex trafficking of a minor, and production of child pornography. All defendants have plead guilty to related charges involving conspiracy to commit sex trafficking of a minor.
- United States v. Donnell Salethian Woodard a/k/a “Tank” and India Tykeyah-Najee Cuyler a/k/a “Lady Tank.” Criminal No. 3:18-cr-308-JMC. In February 2021, following a conviction of conspiracy to sex traffic minors and benefiting from sex trafficking of minors, Judge J. Michelle Childs of Columbia sentenced Woodard to 25 years in federal prison. In March 2021, following a conviction of using a facility of interstate commerce to entice a minor under the age of 18 to engage in sexual activity, Judge Childs sentenced Cuyler to more than 15 years in federal prison. Both sentences will be followed by 15 years of court-ordered supervision and the defendants will be required to register as a sex offenders.
- United States v. Brian Leroy Watson and Ryan Darian Grover. Criminal No. 3:20-cr-492-JMC. According to the indictment, in January 2021, Grover was arrested as the second defendant in a 13-count superseding indictment returned by a federal grand jury sitting in Columbia that charged human trafficking conspiracy, human trafficking and attempted human trafficking of involving both a minor and adult victims, heroin and fentanyl distribution, and the operation of a drug-involved dwelling. The defendants remain detained pending the outcome of the case.
In cases where a defendant has not pled guilty or has not otherwise been convicted, the charges in the indictments are merely accusations and defendants are presumed innocent unless and until proven guilty.
During this, the 11th annual National Slavery and Human Trafficking Prevention Month, the U.S. Attorney’s Office for the District of South Carolina reaffirms its commitment to combatting the heinous crime of human trafficking, holding perpetrators accountable, and seeking justice for survivors. To report a tip or ask for help, please call the National Human Trafficking Hotline at 1-888-373-7888.
###
U.S. Attorney's Office Recognizes National Human Trafficking Prevention MonthRead the Press Release
CHARLOTTE, N.C. – January is National Human Trafficking Prevention Month and the U.S. Attorney’s Office for the Western District of North Carolina reaffirms its commitment to combating all forms of human trafficking.
“Human trafficking, which encompasses sex trafficking, forced labor, and domestic servitude, is a crime that impacts our society’s most vulnerable members,” said U.S. Attorney Dena J. King. “The invisible nature of human trafficking poses a challenge for prosecutors and law enforcement, as perpetrators often commit this abhorrent crime in plain sight. Working with our law enforcement and community partners we will continue to raise awareness and shine a light on all forms of human trafficking, work together to identify and assist trafficking victims, and prosecute those who use fraud, force and coercion to profit from the exploitation of other human beings."
“Right now, there are more than 1,700 human trafficking cases being investigated by the FBI in field offices across the country. Our investigations are not only about taking traffickers off the streets, but about making sure we offer resources, care, and kindness to the victims to help them rebuild their lives. The FBI’s victim assistance specialists work with every trafficking victim to help end the cycle of violence and manipulation they experience,” said FBI Special Agent in Charge Robert R. Wells.
“HSI special agents and officers in your communities and around the globe work tirelessly to uncover, dismantle and disrupt human trafficking every day,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Human Trafficking Prevention Month is a great reminder to us all, that ‘If you see something, say something.’”
Human Trafficking Prosecutions
In 2021, the Office’s anti-trafficking efforts have resulted in the following prosecutions:
U.S. v. McIllwain – On April 19, 2021, Simone Cherelle McIllwain, 30, of Charlotte, pleaded guilty to sex trafficking of a minor. As filed plea documents show, from December 2 to December 19, 2019, McIllwain did knowingly recruit, entice and transport a minor, recklessly disregarded that the minor was under the age of 18 years old, and that the minor would be caused to engage in a commercial sex act. A sentencing date for McIllwain has not been set.
U.S. v. Blair – On July 1, 2021, Dajuan Akeem Blair, 26, of Cornelius, N.C., pleaded guilty to sex trafficking of a minor. As Blair admitted in court, from December 26 to December 28, 2018, Blair recruited, enticed and transported a minor, having reasonable opportunity to observe the minor was under the age of 18 years old, and knowing that the minor would be caused to engage in a commercial sex act. A sentencing date for Blair has not been set.
U.S. v. Hasty – On October 13, 2021, Milton Antonio Hasty, 31, of Fayetteville, N.C., pleaded guilty to sex trafficking of a minor. According to court records, from January 22, 2019, through June 5, 2019, Hasty did knowingly recruit, entice and transport a minor, recklessly disregarded that the minor was under the age of 18 years old, and that the minor would be caused to engage in a commercial sex act. A sentencing date for Hasty has not been set.
U.S. v. Luong – On January 8, 2021, a federal jury in Charlotte convicted Thuy Tien Luong, 38, of Charlotte, of forced labor, after finding that the defendant compelled the labor of one of her nail technicians at a salon she owned and operated in Davidson, N.C. According to trial evidence, from October 2016 to June 2018, Luong compelled the victim’s labor by, among other things, physically assaulting the victim, threatening to ruin the victim’s reputation with her family, and falsely claiming that the victim owed Luong a fictitious debt. Luong is currently awaiting sentencing.
U.S. Attorney King commended the FBI for their investigative efforts in the prosecutions against McIllwain, Blair and Hasty, and thanked HSI, the Charlotte Mecklenburg Police Department, and the Davidson Police Department for their excellent work in the case against Luong.
The statutory penalties for human trafficking offenses range from a minimum of 10 years to a maximum of life in prison.
“As we continue our fight against all forms of human trafficking, our recent courtroom successes should serve as stark warnings to anyone engaged in this type of repugnant criminal activity: We will find you and hold you accountable to the fullest extent of the law,” said U.S. Attorney King.
* * *
If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also text NHTRC at 233733 or submit a tip online.
You can also contact Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.