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15 December 2021
New York Man Pleads to Conspiring to Distribute Heroin and Fentanyl in Western PARead the Press Release
PITTSBURGH, PA – A resident of Yonkers, New York has been sentenced in federal court to 78 months of imprisonment on his conviction for violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Nora B. Fischer imposed the sentence on Erick A. Martinez, 36 years, of Yonkers, New York.
According to information presented to the Court, on May 12, 2020, Martinez pled guilty to one count of conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. In connection with his guilty plea, Martinez admitted that he conspired with codefendants Brandon Winters and Eduard Guzman Rijo to distribute one kilogram or more of heroin and 400 grams or more of fentanyl in the Western District of Pennsylvania. The Court was advised that on January 30, 2019, investigators with the Federal Bureau of Investigation and Pennsylvania State Police Drug Law Enforcement Division executed a search warrant at an apartment located in Pittsburgh, which was utilized by Martinez and his coconspirators, Brandon Winters and Eduard Rijo. Upon entry into the apartment, case agents located Winters, Rijo, and Martinez, approximately 1,500 “bricks” (the equivalent of roughly 75,000 individual dosage units) containing mixtures of heroin and fentanyl. Additionally, case agents seized over $250,000 in U.S. currency, which was found in and around Mr. Martinez and his coconspirators.
Following his 78 months of imprisonment, Martinez will be on federal supervised release for four years.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police Drug Law Enforcement Division for the investigation leading to the successful prosecution of Martinez.
New York Man Charged for Being A Convicted Felon in Possession of A Firearm and AmmunitionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 28, 2021, Walik Skeete, age 44, of Binghamton, New York, was indicted by a federal grand jury for being a convicted felon in possession of a firearm and ammunition. The case was unsealed following Skeete’s arrest.
According to United States Attorney John C. Gurganus, the indictment alleges that on August 4, 2021, Skeete was in possession of a Beretta 9mm handgun and rounds of ammunition as a previously convicted felon.
The investigation was conducted by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Robert J. O’Hara 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.”
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, the maximum penalty is up to ten years in prison, a term of supervised release and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Company Sentenced for Making False Statements to the U.S. Department of LaborRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that B XPRESS-ELYSIAN FIELDS, LLC, was sentenced today for making false statements in connection with a worksite employment investigation, in violation of Title 18, United States Code, Section 1001(a)(2).
United States District Court Judge Martin L.C. Feldman ordered B-XPRESS to pay $50,000 in restitution as well as the forfeiture of $29,068.
In November 2015, Homeland Security Investigations received information that an undocumented worker was possibly being employed at B-XPRESS. A worksite enforcement investigation was then initiated by the United States Department of Labor, Office of Inspector General.
In response to a Form I-9 audit requesting worker documentation from Homeland Security Investigations agents, B-XPRESS submitted inaccurate records that failed to mention illegal workers employed at the business. On August 11, 2016, federal agents arrived at B-XPRESS and identified themselves to the corporate representative. On behalf of B-XPRESS, the representative provided false statements to the agents of the United States Department of Labor. B-XPRESS falsely indicated that it did not utilize a timekeeping system to record the hours that employees actually worked, that some workers were classified as independent contractors, and that workers did not work more than 30 hours per week. The investigation determined that these statements were false.
U.S. Attorney Evans praised the work of the United States Department of Labor, Office of the Inspector General and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
New Bedford Man Pleads Guilty to Firearm and Cocaine OffensesRead the Press Release
BOSTON – A New Bedford man pleaded guilty on Monday, Dec. 13, 2021, in federal court in Boston to illegally possessing a firearm and selling cocaine.
Khyron Thompson, 32, pleaded guilty to one count of being a felon in possession of firearm and ammunition and one count of distribution of and possession with intent to distribute cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 6, 2022. Thompson was indicted on May 13, 2021.
On Feb. 13, 2020, Thompson distributed cocaine and possessed a loaded .32 caliber Hi-Point pistol firearm with an obliterated serial number and six rounds of ammunition. Thompson is prohibited from possessing a firearm under federal law due to multiple previous state convictions including assault and battery.
The charge of being a felon in possession of firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of distribution of and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorneys Evan Gotlob and Kenneth G. Shine of Mendell’s Major Crimes Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Monroe County Man Sentenced to 10 Years’ Imprisonment for Attempted Online Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Earnest Lee Pittman, Jr., age 46, of Cresco, Pennsylvania, was sentenced on December 14, 2021 to ten years’ imprisonment to be followed by five years of supervised release by United States District Court Judge Robert D. Mariani, for attempted online enticement of a minor to engage in sexual activity.
According to United States Attorney John C. Gurganus, between August 4, 2020 and August 12, 2020, Pittman used the internet and a cellular phone to attempt to persuade someone he believed to be a 15-year-old minor to engage in sexual activity. When he arrived for the encounter, Kingston Municipal Police officers arrested Pittman.
The matter was investigated by the Federal Bureau of Investigation (FBI) and the Kingston Municipal Police Department. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Missoula vascular surgeon settles alleged health care fraud claims for $3.7 millionRead the Press Release
MISSOULA – A Missoula vascular surgeon who operates vein and surgery centers in Missoula and Kalispell has agreed to pay the federal government $3.7 million to settle alleged False Claims Act violations that he performed medically unnecessary surgeries based on improper techniques and submitted fraudulent bills for payment to federal health care programs, U.S. Attorney Leif M. Johnson said today.
Dr. David Bellamah, and his business, Bellamah Vein & Surgery, PLLC, doing business as Bellamah Vein Center, has entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Montana, the Department of Health and Human Services Office of Inspector General, the Defense Health Agency, the Department of Veterans Affairs and a third party, Lenore Lezanne. The terms of the settlement agreement require Bellamah and his company to pay a settlement amount of $3,746,324. The settlement agreement resolves a civil complaint alleging violations of the False Claims Act and other common law claims. The civil complaint in intervention was filed today in U.S. District Court for the District of Montana along with a stipulation to dismiss the case.
“This civil settlement resolves claims of using improper techniques and unnecessary medical procedures to create and submit false claims to four federal health care programs. Submitting false claims for unnecessary procedures increases the cost of providing services to people who really need it. Had the United States known the truth, it would not have paid such claims. We will investigate and hold accountable medical providers who try to enrich themselves through false billing to federal health benefit programs. I want to thank our office’s health care fraud investigation team, the Department of Health and Human Services Office of Inspector General and the FBI for their work on this case,” U.S. Attorney Johnson said.
“Performing medically unnecessary surgeries risks the health and wellbeing of patients, compromises the integrity of federal health care programs, and increases the financial burden on taxpayers,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General. “Working closely with our partners, HHS-OIG will continue to safeguard the integrity of federal health care programs by investigating individuals who seek to exploit them.”
“David Bellamah’s alleged actions violated the oath held sacred by physicians,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “Health care fraud affects all Americans and the FBI remains committed to doing our part to combat it.”
The United States contended in court documents that its civil claims against Bellamah and his company arose from him billing for certain services that were medically unnecessary and based on false medical records from January 1, 2015 through March 31, 2017. Bellamah specializes in the diagnosis and treatment of venous reflux disease and varicose veins.
In March 2018, Lezanne, who was a sonographer formerly employed at Bellamah Vein Center, filed a suit in U.S. District Court against Bellamah Vein and Surgery, Bellamah and others alleging Bellamah received government funds for performing unnecessary venous procedures based on inaccurate medical records. The United States partially intervened in the case.
In its complaint, the United States alleged that Bellamah and staff at Bellamah Vein Center used improper techniques to conduct and analyze ultrasounds and used false ultrasound findings to conduct and bill for medically unreasonable and unnecessary services related to the diagnosis and treatment of venous reflux disease and varicose veins. The government contends that Bellamah submitted false claims to the Department of Health and Human Services’ Medicare and Medicaid programs, the Department of Defense’s TRICARE program and the Department Veterans Affairs’ CHAMPVA program.
The Settlement Agreement directs Bellamah to pay the United States $3,746,324, plus interest if applicable, of which $1,923,861 is restitution and the remaining $1,822,463 is settlement of additional damages. If the settlement amount is paid in full within 21 days of the effective date of the Settlement Agreement, no interest shall be charged. Otherwise, Bellamah shall make payments, plus interest, over five years. Upon receiving the settlement amounts, the United States will pay Lezanne 17 percent of each payment as her share of the settlement.
The Settlement Agreement is neither an admission of liability by Bellamah nor a concession by the United States that its claims are not well founded.
Assistant U.S. Attorney Michael A. Kakuk represented the United States in this matter, which was investigated by office’s health care fraud investigation team, the Department of Health and Human Services Office of Inspector General and the FBI, with additional assistance from the Defense Health Agency and the Department of Veterans Affairs Office of Inspector General.
PACER case reference. 18-57-M-DLC
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Mishawaka Man Sentenced to 84 Months in PrisonRead the Press Release
SOUTH BEND – Antonio Wells, 32 years old, of Mishawaka, Indiana, was sentenced by United States District Court Judge Robert L. Miller after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Wells was sentenced to 84 months in prison followed by 2 years of supervised release.
According to documents in the case, in April of 2021, Wells was on the grounds of a hospital in South Bend when he tried to hide a loaded firearm in a hospital parking garage. Wells has several prior convictions for firearms-related offenses, including for firing a gun at an occupied car.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Kimberly Schultz.
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.
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Minneapolis Man Sentenced to 60 Months in Prison for Possession, Distribution of Fentanyl PillsRead the Press Release
MINNEAPOLIS – A Minneapolis man was sentenced to 60 months followed by four years of supervised release for conspiring to possess with intent to distribute fentanyl, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on June 1, 2019, officers with the Minneapolis Police Department seized 351 counterfeit prescription pills containing fentanyl from Fowzi Abdinasir Elmi, 20. On January 21, 2020, Elmi and two other individuals drove to Arizona with the intent of buying fentanyl pills and then returning to Minnesota to distribute them. Elmi successfully purchased the pills but was stopped by law enforcement in Oklahoma. Approximately 2,100 counterfeit prescription fentanyl pills were seized from Elmi. On September 15, 2020, Elmi, along with two other individuals, got into a single vehicle car crash. When Minneapolis police officers arrived, they found Elmi in possession of 170 counterfeit prescription fentanyl pills. Elmi admitted to purchasing the pills for $15 per pill and selling them for $30-$35 per pill.
Elmi was sentenced today by Senior U.S. District Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, and the State of Oklahoma District One Narcotics Task Force.
Assistant U.S. Attorneys David P. Steinkamp and Justin A. Wesley prosecuted the case.
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Milwaukee Man Indicted on Federal Sex Trafficking ChargesRead the Press Release
Acting United States Attorney Richard G. Frohling announced today that a federal grand jury had returned an indictment charging Samuel Spencer (age 49) of Milwaukee, Wisconsin, with three counts of sex trafficking by force, fraud, and coercion, for offenses that spanned over 15 years and multiple states.
If convicted for Count One, Spencer faces a maximum of life in prison. If convicted for Counts Two or Three, Spencer faces a mandatory minimum sentence of 15 years in federal prison and a maximum of life in prison.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Abbey M. Marzick.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Milwaukee Man Federally Indicted for Seven Armed Robberies of Tow Truck DriversRead the Press Release
Acting United States Attorney Richard G. Frohling announced that on December 14, 2021, that a Milwaukee man was indicted for seven armed robberies of tow truck drivers in the Milwaukee area between September 17, 2021, and October 6, 2021. Specifically, Latherio Meadows, age 26, was charged with seven counts of robbery affecting interstate commerce, seven counts of brandishing a firearm in furtherance of a crime of violence, two counts of possession of a stolen firearm, and one count of possession of a firearm by a felon.
If convicted, Meadows faces up to 20 years in prison for each robbery count and a minimum mandatory sentence of seven years and up to life in prison on each charge of brandishing of a firearm during a crime of violence, which must run consecutive to any other sentence. He also would face up to ten years in prison for each of the counts of possession of a stolen firearm and possession of a firearm by a felon.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Abbey M. Marzick.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer
414-297-1700
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Mexican Man Pleads Guilty to Unlawful Return by an Alien Removed After Conviction for a FelonyRead the Press Release
Gulfport, Miss. - A Mexican national pleaded guilty to unlawful return of an alien deported or removed after conviction for a felony, announced U.S. Attorney Darren J. LaMarca, Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector, and Vernon Bison, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in New Orleans.
According to court documents, Francisco Alvarado-Zacarias, 49, of Mexico, was arrested on October 12, 2021, on Interstate 10 in Jackson County. The U.S. Border Patrol conducted a vehicle stop on a white Ford panel van with a Texas license plate based on a Border Patrol “Be On the Lookout” (BOLO) Alert.” Three passengers fled the van on foot, including Alvarado-Zacarias. He was apprehended after a short chase.
Records checks revealed that Francisco Alvarado-Zacarias was a citizen of Mexico who was previously ordered removed from the U.S. on multiple occasions including in 1992, 2006, 2007, and 2020. Agents also confirmed through official records that Alvarado-Zacarias had been convicted in Wyoming for the felony offense of conspiracy to deliver methamphetamine. After his release from prison, Alvarado-Zacarias had been removed from the United States.
Alvarado-Zacarias is scheduled to be sentenced on April 7, 2022 at 11:00 a.m. He faces a maximum penalty of ten years in prison and a $250,000 fine. After completing any sentence of incarceration, he also could face Homeland Security proceedings to remove him from the United States. A U.S. District 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 Homeland Security Investigations.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Mexican Man Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – A Mexican national pleaded guilty to unlawful return of an alien after deportation, announced U.S. Attorney Darren J. LaMarca and Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Filemon Perez-Julian, 49, was arrested on October 4, 2021, on Interstate 10 in Harrison County, following a vehicle stop by a U.S. Border Patrol agent. Perez-Julian was a passenger in the vehicle and was identified as being illegally present in the United States. Perez-Julian was transported to the Gulfport Border Patrol Station, where his identity was positively confirmed. Official records revealed that Perez-Julian had been arrested on several occasions by federal officials and had been given multiple voluntary departures as well as being formally ordered deported by a U.S. Immigration Judge in 2009. He was removed from the United States and, later in 2009, he unlawfully returned. Record checks also revealed that after unlawfully returning to the U.S., his prior deportation or removal was reinstated, and he was physically removed again in June 2009.
Perez is scheduled to be sentenced on March 4, 2022 at 10:00 a.m. He faces a maximum penalty of two years in prison and a $250,000 fine. 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.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Menominee Man Sentenced to Prison for Theft of Government Funds After He Obtained over $297,000 in Benefits to Which He Was Not EntitledRead the Press Release
MARQUETTE – Edward Douglas Cornman, 49, of Menominee, Michigan, was sentenced to 18 months in prison today for theft of government funds. He was also ordered to pay $297,768.31 in restitution. Chief U.S. District Judge Robert J. Jonker imposed the sentence.
Cornman pleaded guilty in June 2021 to lying about his work history and assets to obtain Medicaid benefits. From 2010 to 2019, Cornman failed to disclose his assets and work activities to the Social Security Administration. As a result, he improperly received Medicaid, Supplemental Security Income, and other benefits. Over the approximately ten-year period, Cornman received $297,768.31 in benefits from various agencies he was not entitled to receive.
U.S. Attorney Andrew Birge said, “Medicaid and Supplemental Security Income are programs aimed at the neediest in our society. Protecting those programs from abuse is one of our most important missions. My office will continue to vigorously prosecute those who abuse federally funded programs and benefits.”
“Mr. Cornman egregiously misused the Federal and State benefits that many people solely rely on to meet their essential needs. He deliberately concealed his property, resources, and earnings from working at his own construction company to fraudulently receive Supplemental Security Income, as well as Medicaid and other benefits,” said Gail S. Ennis Inspector General for the Social Security Administration. “I thank the Michigan State Department of Health and Human Services Office of the Inspector General and local law enforcement for their efforts in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
The Social Security Administration, U.S. Department of Education, and Michigan Department of Health and Human Services investigated the case.
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Member of the Pueblo of Laguna sentenced to three years in federal prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Duane Day, 31, of New Laguna, New Mexico, and an enrolled member of the Pueblo of Laguna, was sentenced in federal court today to three years in prison for assault with a dangerous weapon resulting in serious bodily harm in Indian Country. Day pleaded guilty on June 18.
According to the plea agreement and other court records, on March 24, 2020, at his father’s home on the Laguna Pueblo, Day became angry that he could not access the internet. He then assaulted his niece by punching, shoving and strangling her twice. The second time, she lost consciousness after he strangled her for a prolonged period. When the victim regained consciousness, he threatened her with a metal hoe.
The victim was later transported to the University of New Mexico Hospital Emergency Room for treatment.
In 2015, Day pleaded guilty and was sentenced to four years in prison followed by three years of supervised released for assault by strangulation and attempted manslaughter. In his plea agreement, Day admitted that on the Laguna Pueblo on May 12, 2014, he assaulted the victim by placing his knee on her neck and placing his hand over her mouth causing her to suffocate. Day acknowledged that he attempted to kill the victim by impeding the victim’s breathing causing her to lose consciousness.
Upon his release from prison, Day will be subject to three years of supervised release.
The Violent Crime and Gang Squad of the FBI Albuquerque Field Office and the Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department. Assistant U.S. Attorney Alexander F. Flores prosecuted the case.
Maryland Man Indicted for Scheme to Steal and Re-Sell Real PropertyRead the Press Release
WASHINGTON – A Maryland man has been charged in a 10-count indictment with carrying out a scheme to steal a residence located in the District of Columbia and then reselling the property to an unsuspecting buyer.
Franklin A. Olaitan, 48, of Beltsville, was arraigned today in the U.S. District Court for the District of Columbia. The indictment against him was also unsealed today. He was released following his initial court appearance, pending further court proceedings.
The indictment was announced by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
As alleged in the indictment, Olaitan perpetrated a scheme in which he obtained a residential real property located in the 2000 block of First Street NW by submitting false documents to lenders, a settlement company, and the District of Columbia Recorder of Deeds. It is alleged that Olaitan quickly resold the residential property to an unsuspecting buyer and received the seller’s proceeds from both purported sales of the property. In the real estate closings, first, a lender paid approximately $420,000 and, second, a purchaser paid about $550,000.
Olaitan is charged with four counts of wire fraud, two counts of interstate transportation of stolen property, two counts of aggravated identity theft, one count of identity theft, and one count of first-degree fraud. The indictment includes a notification of the United States’ intent to seek the forfeiture of any proceeds Olaitan received as a result of the fraud scheme, identity theft, and interstate transportation of stolen property.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Diane Lucas of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Daniel Haines and Mariela Andrade.
Mail thieves indictedRead the Press Release
HOUSTON – Two men face several charges after allegedly breaking into a blue mail receptacle at the River Oaks U.S. Post Office in Houston, announced Acting U.S. Attorney Jennifer B. Lowery.
Tarek K. Sonnier, 24, Houston, and Monte Drayton, 35, The Bronx, New York, are charged obstruction of correspondence, theft of mail matter and illegal possession of postal keys. They are expected to appearance before a U.S. magistrate judge in the near future.
Both men were previously charged by criminal complaint and remain in custody.
The charges allege Sonnier and Drayton illegally entering the mailbox in the parking lot of the River Oaks Post Office on West Gray Street in Houston and removed mail.
In the early morning hours of Nov. 18 and Nov. 21, a light-colored Chevrolet Camaro with distinctive damage pulled up to the receptable, according to the charges. Two men allegedly exited the vehicle, used an illegally possessed key and loaded all the mail into the vehicle.
Again, in the early morning hours of Nov. 23, what authorities believe to be the same Camaro drove up to the same receptable exited the vehicle, according to the charges. The complaint further alleges two men, later identified as Sonnier and Drayton, were opening the mailbox with what was determined to be a stolen key.
Authorities then took the two men into custody. Upon their arrest, law enforcement allegedly recovered four stolen postal keys.
If convicted, Sonnier and Drayton could face up to 10 years in prison as well as a possible $250,000 maximum fine.
U.S. Postal Inspection Service conducted the investigation along with the FBI, Houston Police Department and members from the Texas Anti-Gang Center. Assistant U.S. Attorney Richard D. Hanes is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lowell Man Pleads Guilty to Drug Conspiracy Involving Counterfeit Pills Containing MethamphetamineRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston to his role in a drug trafficking conspiracy involving methamphetamine disguised as counterfeit Adderall pills.
Vimoon Sortsoy, 29, pleaded guilty to conspiracy to distribute and possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 6, 2022. Sortsoy was indicted on Jan. 27, 2021.
Sortsoy conspired to distribute counterfeit prescription pills pressed to resemble Adderall that in fact contained methamphetamine in the Lowell area. Specifically, in a series of controlled purchases conducted by law enforcement, Sortsoy sold counterfeit pills containing methamphetamine to a cooperating witness. In total, Sortsoy sold approximately 400 grams of counterfeit pills containing methamphetamine.
The charge of conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lowell Police Chief Raymond Kelly Richardson made the announcement. Assistant U.S. Attorney Sarah Hoefle of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
Lawrence County Resident Charged with Methamphetamine OffensesRead the Press Release
BENTON, Ill. – Aaron E. Inboden, 50, of Lawrenceville, Illinois, was charged in a two-count Indictment with methamphetamine related offenses. Count 1 charges that from 2018, until on or about November 2021, in Crawford County, Inboden conspired to distribute five hundred (500) grams or more of methamphetamine. Count 2 charges that on August 16, 2021, in Crawford County, Inboden possessed more than 50 grams of methamphetamine with the intent to distribute it.
If convicted of the distribution conspiracy charge in Count 1, Inboden could receive a minimum of
10 years with up to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years. Possession of more than 50 grams of methamphetamine carries a minimum of 5 years, up to 40 years imprisonment, up to a $4,000,000 fine, and supervised release not less than 4 years.Inboden is set for an Initial Appearance on December 16, 2021, in federal court in Benton, Illinois.
An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Robinson, Illinois Police Department, and Lawrenceville, Illinois Police Department, the United States Marshal Service, and the Southeastern Illinois Drug
Task Force. Assistance was also provided by the Crawford County State’s Attorney’s Office and the Lawrence County State’s Attorney’s Office.
Kentucky Man Charged with Advertising Child PornographyRead the Press Release
BOSTON – A Kentucky man has been indicted by a federal grand jury in Boston in connection with advertising pornographic images of children via the dark web.
Scott Allison, 57, of Glasgow, Ky., was indicted on one count of advertisement of child pornography. Allison made an initial appearance in federal court in the Western District of Kentucky this morning. The defendant was initially charged on Nov. 17, 2021 in the Western District of Kentucky with possession of child pornography.
According to court documents, an undercover agent observed Allison utilizing a username on the dark web that advertised and posted links on or about April 13, 2021, to child sexual abuse images of boys as young as approximately two years old. It is alleged that Allison used at least two different usernames on various websites on the dark web.
The charge of advertisement of child pornography provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Michael A. Bennett, United States Attorney for the Western District of Kentucky; and Jerry C. Templet Jr., Special Agent in Charge of Homeland Security Investigations in Nashville made the announcement today. Assistant U.S. Attorney J. Mackenzie Duane, of Mendell’s Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.
KC Man Sentenced for $1 Million Conspiracy to Steal 1,400 Cell Phones in Dozens of BurglariesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for his role in a $1 million conspiracy to steal more than 1,400 cell phones in dozens of commercial burglaries across several states, as well as for obstruction of justice.
Bryan C. Kirkendoll II, also known as “B Boy” and “Blockboy,” 32, was sentenced by U.S. Chief District Judge Beth Phillips to nine years in federal prison without parole. The court also ordered Kirkendoll to pay $1,075,827 in restitution.
On May 5, 2021, Kirkendoll was found guilty at trial of one count of participating in a conspiracy, three counts of transporting stolen property across state lines, two counts of witness tampering, and one count of transmitting threats in interstate commerce.
Co-defendant Viktor Chernetskiy, 31, of Kansas City, Mo., a naturalized citizen from Ukraine, pleaded guilty on June 17, 2020, to his role in the conspiracy and to one count of transporting stolen property across state lines and awaits sentencing.
Kirkendoll and Chernetskiy participated in a conspiracy to steal electronic devices – primarily cell phones – from stores in Missouri, Kansas, Iowa, Illinois, Nebraska and Oklahoma, then transport them across state lines in order to sell them. Kirkendoll and Chernetskiy committed approximately 48 burglaries in 28 cities from Nov. 21, 2018, to June 14, 2019, in which they stole approximately 1,401 electronic devices (primarily cell phones) with a total financial loss of approximately $1,114,093.
In each instance, the stores were burglarized after hours; Kirkendoll and Chernetskiy wore hooded sweatshirts, caps, and gloves to conceal their identity and limit the trace evidence left behind during the burglaries. They pried the doors open with a large screwdriver or crowbar; in many instances, they broke the glass windows out of the doors, and then went through the opening. Once inside, they looked for phones that were not secured within a safe or other secure location, and loaded those phones into a plastic bin, trash bag, or other bag. In some instances, they also cut retractable security cables from store demonstration phones and took those as well. There was at least one instance where it appeared that they tried (unsuccessfully) to pry open a safe.
While he was on bond, Kirkendoll used intimidation and threats toward a victim-witness in this case to interfere with his pending criminal trial. In February 2020, Kirkendoll posted threatening messages on Facebook directed at the victim-witness, including, “U on borrowed time … Rats get Klapped snitch. (sic)” Kirkendoll also harassed the victim-witness from Feb. 13-19, 2020, in an attempt to dissuade that person from testifying at his trial.
Kirkendoll’s bond was revoked, and he was arrested in February 2020 for his threats toward the victim-witness.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Matthew Blackwood. It was investigated by the Missouri State Highway Patrol and the FBI.
Judge sentences previously convicted bank robber to 30 years in prisonRead the Press Release
ST. LOUIS – Briran Blake, 30, of St. Clair County, Illinois appeared before United States District Court Judge John A. Ross on today’s date and was sentenced to 30 years in prison. On September 17, 2021, a jury found Blake guilty of two counts of bank robbery and one count of brandishing a firearm in furtherance of a crime of violence.
On June 9, 2017, Briran Blake entered a Regions Bank on Hampton Avenue in St. Louis, presented a demand note to the teller, and escaped with almost $2,000 in cash. 13 days later, on June 22, 2017, Briran Blake entered a Regions Bank on South Broadway in St. Louis, presented a demand note, and brandished a firearm at the bank teller before escaping with over $4,200 in cash. Blake was indicted in August 2019 following analysis of the demand notes and identification of Blake as the suspect by the St. Louis Metropolitan Police Department Crime Laboratory.
The court, based upon Blake’s criminal history, sentenced Blake pursuant to the career offender provision of the United States Sentencing Guidelines.
This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. Jason Dunkel and Donald Boyce prosecuted this case on behalf of the United States
Internet predator sentenced to federal prison for coercing children to provide sexual imagesRead the Press Release
SAVANNAH, GA: A Liberty County man has been sentenced to more than a decade in federal prison after admitting he persuaded children to send him sexual images and photos.
Jasiri Hutchison, 20, of Hinesville, Ga., was sentenced to 180 months in prison after pleading guilty in U.S. District Court to Production of Child Pornography and Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges were brought in both the Southern District of Georgia and the Middle District of Georgia, and U.S. District Court Judge R. Stan Baker also ordered Hutchison to register as a sex offender and to serve 15 years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Jasari Hutchison’s predatory behavior shockingly represents every parent’s nightmare,” said U.S. Attorney David H. Estes. “By systematically targeting and exploiting young children and coercing them to provide illicit images of themselves, he robbed numerous victims of their trust and innocence and rightly is being held accountable.”
As described in court documents and testimony, as early as April 2019 through December 2020, Hutchison typically portrayed himself as a young girl in online interactions with children via various messaging applications, at first persuading those children to send innocuous photos of themselves and later threatening to share those photos with their friends unless the victim sent increasingly sexualized images or videos of themselves and/or siblings. In pleading guilty to the charges, Hutchison admitted possessing more than 600 sexually explicit images of children.
“Hutchinson’s days of preying upon innocent children, creating lifelong trauma are over thanks to the great work done by the agents, officers and our law enforcement partners,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this highlight the need for everyone to monitor what our children do and who they interact with online.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by Homeland Security Investigations and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Project Safe Childhood Coordinator Tara M. Lyons, with assistance from Assistant U.S. Attorney Mary Sue Robichaux from the Asset Recovery Unit.
Husband and Wife Sentenced to Prison Terms for Operating Ponzi Scheme Relating to Investments in Foreign CurrenciesRead the Press Release
NEWARK, N.J. – A former Hudson County, New Jersey, couple was sentenced today for operating a Ponzi scheme in which they defrauded approximately 30 investors by making extraordinary guarantees about investment returns and then used the money for extravagant purchases and to pay off other victims, Acting U.S. Attorney Rachael A. Honig announced.
Jennifer Wee Cifuentes, 40, and her husband, Alcibiades Cifuentes, 39, were each sentenced to 71 months in prison.
Alcibiades Cifuentes pleaded guilty on Nov. 8, 2019, and Jennifer Wee Cifuentes pleaded guilty on Nov. 18, 2019, both before U.S. District Judge Esther Salas in Newark federal court, to all six counts of an indictment charging each of them with four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of stealing funds intended for investment in commodities. Judge Salas imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Jennifer Wee and Alicbiades Cifuentes engaged in an investment fraud scheme from 2012 through March 2015. They induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies, and then almost immediately spent those investment funds on personal items, such as an Audi R8 automobile and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. The couple defrauded approximately 30 victims of more than $400,000.
In addition to the prison terms, Judge Salas sentenced the each of the defendants to three years of supervised released and ordered them to pay $434,914 in restitution and forfeiture of $218,957.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Raimundo Marrero, and investigators with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney, with the investigation leading to today’s sentencing. She also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Acting Attorney General Andrew Bruck and Bureau Chief Christopher W. Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Acting Director Vincent McGonagle, for their assistance.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the Cybercrime Unit and Courtney A. Howard of the Department of Justice.
Honduran Man Pleads Guilty to Unlawful Return by an Alien Removed After Felony ConvictionRead the Press Release
Gulfport, Miss. – A Honduran national pleaded guilty to unlawful return by an alien removed after conviction for a felony, announced U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Vernon Bison of Homeland Security Investigations in New Orleans.
According to court documents, Wilmer Josue Pavon-Hercules, 40, was arrested on September 12, 2021, following a probable cause traffic stop by a Picayune Police officer on Interstate 59 in Pearl River County. Pavon-Hercules, the driver of the vehicle, did not have a driver’s license, and provided only a Honduran identification card. The officer was assisted on-site by a deputy of the Pearl River County Sheriff’s Department. While officials were attempting to arrest Pavon-Hercules for careless driving and driving under the influence (DUI), he attempted to flee law enforcement and then bit the police officer while being handcuffed. Pavon-Hercules was taken into custody and transported to Pearl River County Jail. Later, he escaped from the Pearl River County Jail and was recaptured by deputies.
Picayune officials contacted Homeland Security Investigations (HSI) regarding the immigration status of Pavon-Hercules. HSI determined through electronic database queries that Pavon-Hercules was a citizen of Honduras who was previously deported from the United States to Honduras. Immigration Records revealed that Pavon-Hercules was first encountered in the United States in 2012 and ordered deported by an Immigration Judge. Pursuant to a lawful removal order against him, Pavon-Hercules was physically removed from the U.S. on August 23, 2012. Thereafter, Pavon-Hercules was again encountered in the United States. Having unlawfully returned to the U.S. after deportation or removal, Pavon-Hercules was convicted in the U.S. District Court for the Western District of Louisiana in 2017, for reentry by alien following removal. Later in 2017, Pavon-Hercules again was physically removed from the United States to his home nation of Honduras.
Pavon-Hercules also has been known by the following name variations and aliases: Wimer Josue Pavon-Hercules, Wimer Josue Pavon Hercules, Wimer J. Pavon Hercules, Wimer Josue Hercules, Wilmer J. Pavon and Wilmer Pavon
Pavon-Hercules is scheduled to be sentenced on March 3, 2022 at 9:30 a.m. He faces a maximum penalty of ten years in prison and a $250,000 fine. 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 Homeland Security Investigations, the Picayune Police Department and the Pearl River County Sheriff’s Office.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Honduran Man Pleads Guilty to Transporting an Illegal Alien within the U.S.Read the Press Release
Gulfport, Miss. – A Honduran national pleaded guilty to unlawful transportation of an illegal alien within the United States, announced U.S. Attorney Darren J. LaMarca, Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector, and Vernon Bison, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in New Orleans.
According to court documents, Jose Andres Acensio-Lopez, 27, of Honduras, was arrested on September 12, 2021, on Interstate 10 in Harrison County following a vehicle stop by a U.S. Border Patrol agent. Acensio-Lopez did not have a driver’s license and was found, along with his ten passengers, to be illegally present in the United States. The vehicle was overloaded by three persons over its design, with seat belts for only eight persons. All vehicle occupants were transported to the Gulfport Border Patrol Station for processing.
At the Border Patrol Station, Special Agents from HSI joined the case. Acensio-Lopez and his passengers were processed using Department of Homeland Security electronic database systems. Acensio-Lopez’s identity was confirmed, and one of the passengers was identified as an illegal alien who had unlawfully returned to the U.S. after being deported or removed. That passenger is being prosecuted separately for unlawful return by an alien after removal. The other passengers were administratively processed, including an unaccompanied juvenile.
Acensio-Lopez faces a maximum penalty of five years in prison and a $250,000 fine. 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 judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acensio-Lopez also has been known by the following name variations or aliases: Acensio Rodriguez, Andres Acensio Lopez, Jose Javier Mata and Jose Lopez.
The case was investigated by the U.S. Border Patrol and HSI.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Hammond Man Pleads Guilty to Selling Oxycodone and Firearm ChargeRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NAVORIOUS HILLS, age 41, of Hammond, Louisiana, pleaded guilty on December 14, 2021 to possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, HILLS was selling prescription pain pills within the Eastern District of Louisiana. On May 15, 2020, he was in possession of a Glock handgun during a drug transaction at the Manchac Public Boat Launch. HILLS and his customer began arguing after their transaction concluded. The conflict escalated and HILLS retrieved his Glock Model 43 semi-automatic handgun and shot the man in the chest. HILLS admitted to selling the prescription narcotics and that the purpose of carrying the firearm was in furtherance of drug trafficking.
HILLS faces a statutory minimum term of imprisonment of five (5) years up to a maximum term of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
The Honorable United States District Judge Jane Triche Milazzo has set sentencing for March 7, 2022.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders 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 Evans praised the work of the Tangipahoa Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this case. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.
Grand Jury - December 2021Read the Press Release
Acting United States Attorney Jan W. Sharp announced the federal Grand Jury for the District of Nebraska has returned 19 unsealed Indictments charging 21 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Alejandro Alvarado, age 23, of Lincoln, Nebraska, is charged with felon in possession of a firearm on or about November 10, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kalem L. Barber, age 23, is charged in a two-count Indictment. Count I charges Barber with distributing explosive materials by a non-licensee on or about September 1, 2021 and continuing through December 2, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Barber with unlawful distribution of explosive materials to a minor on or about September 1, 2021 and continuing through December 2, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kenneth W. Blair, III, age 41, of Lincoln, Nebraska, is charged in a four-count Indictment. Count I charges Blair with possession with intent to distribute 500 grams or more of methamphetamine on or about November 18, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Blair with possession of a firearm in furtherance of a drug trafficking crime on or about November 18, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges Blair with felon in possession of a firearm on or about November 18, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count IV charges Blair with distribution of 500 grams or more of methamphetamine on or about November 11, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about November 18, 2021.
* Racheal A. Cain, age 34, of Omaha, and Andrew M. Sackett, age 57, of Omaha, are charged in a five-count Indictment. Count I charges Cain and Sackett with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine on or about September 23, 2021. The maximum possible penalty if convicted is 40 years’ imprisonment, a $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment. Count II charges both with possession with intent to distribute 50 grams or more of methamphetamine on or about September 23, 2021. The maximum possible penalty if convicted is 40 years’ imprisonment, a $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment. Count III charges both with possession of a firearm in furtherance of a drug trafficking crime on or about September 23, 2021. The maximum possible penalty if convicted is at least 5 years’ imprisonment consecutive to Counts I and II, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count IV charges Cain with felon in possession of a firearm on or about September 23, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count V charges Sackett with felon in possession of a firearm on or about September 23, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about September 23, 2021.
* James Ferman Chatman, age 42, is charged in a six-count Indictment. Count I charges Chatman with sex trafficking of a minor or by force, fraud, or coercion on or about September 21, 2021 and continuing to on or about September 25, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count II charges Chatman with sex trafficking of a minor or by force-financial benefit on or about September 21, 2021 and continuing to on or about September 25, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count III charges Chatman with sex trafficking by force, fraud, or coercion on or about November 6, 2021 and continuing to on or about November 21, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count IV charges Chatman with sex trafficking by force-financial benefit on or about November 6, 2021 and continuing to on or about November 21, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count V charges Chatman with offense against a minor while required to register as a sex offender on or about September 21, 2021 and continuing to on or about September 25, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, to run consecutive to count I. Count VI charges Chatman with offense against a minor while required to register as a sex offender on or about September 21, 2021 and continuing to on or about September 25, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, to run consecutive to count II. There is also an allegation to forfeit United States currency seized on or about September 25, 2021.
* Misael Flores Trejo, age 39, is charged with reentry of a removed alien after an aggravated felony on or about December 3, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Miguel Garcia-Reynoso, age 35, is charged with illegal reentry after deportation on or about August 7, 2019 and continuing through on or about November 22, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Alejandro Garcia-Ojeda, age 29, is charged with illegal reentry after deportation on or about November 17, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Ana Gomez-Tino, age 25, is charged in a two-count Indictment. Count I charges Gomez-Tino with use of an identification document not lawfully issued on or about December 31, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges her with misuse of a social security number on or about December 31, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Sheri Ann Griego, age 40, of Thornton, Colorado, and Daniel M. Gutirez, age 41, of Aurora, Colorado, are charged in a three-count Indictment. Count I charges Griego and Gutirez with possession with intent to distribute 50 grams or more of methamphetamine on or about December 1, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Griego with possession of a firearm in furtherance of a drug trafficking crime on or about December 1, 2021. The maximum possible penalty if convicted is life imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges Gutirez with possession of a firearm in furtherance of a drug trafficking crime on or about December 1, 2021. The maximum possible penalty if convicted is life imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Dagoberto Jimenez-Gonzalez, age 47, is charged with illegal reentry after deportation on or about December 6, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Spencer Lile, age 42, of Exeter, Nebraska, is charged in a two-count Indictment. Count I charges Lile with receipt of child pornography between on or about October 24, 2018 and continuing to on or about August 4, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $40,000 additional special assessment. Count II charges Lile with possession of child pornography on or about August 4, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $22,000 additional special assessment.
* Marco Polo Lizarraga-Almaral, age 44, is charged with possession with intent to distribute 500 grams or more of cocaine on or about September 16, 2021. The maximum possible penalty if convicted is 40 years’ imprisonment, a 5,000,000 fine, a four-year term of supervised release, and a $100 special assessment.
* Kyle Moore, age 30, of Omaha, is charged in a two-count Indictment. Count I charges Moore with felon in possession of ammunition on or about November 28, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges him with possession of ammunition following a misdemeanor crime of domestic violence on or about November 28, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Claude Parker, age 28, of Omaha, is charged with felon in possession of ammunition on or about October 27, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jose Sanchez Escamilla a/k/a Antonio Ramirez-Sanchez, age 37, is charged with illegal reentry after deportation on or about November 30, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Jean Thomas, age 55, of Gering, Nebraska, is charged in a six-count Indictment. Counts I through VI charge Thomas with theft of US Mail by Postal Employee on or about April 22, 2021 and continuing through August 7, 2021. The maximum possible penalty if convicted for each count is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Michael Eugene West, age 39, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about July 25, 2021. The maximum possible penalty if convicted is 40 years’ imprisonment, a $5,000,000 fine, a four-year term of supervised release, and a $100 special assessment.
* Kylah Whiting, age 19, of Winner, South Dakota, is charged in a two-count Indictment. Count I charges Whiting with possession with intent to distribute 50 grams or more of methamphetamine (actual) and possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about October 17, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges the defendant with use of a firearm in furtherance of a drug trafficking crime on or about October 17, 2021. The maximum possible penalty if convicted is life imprisonment consecutive to Count I, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Four more charged in $35M COVID-19 relief fraud schemeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a superseding indictment against four additional individuals for fraudulently obtaining and laundering millions of dollars in forgivable Paycheck Protection Program (PPP) loans. The Small Business Administration (SBA) guarantees the loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
A total of 15 individuals across two states have now been charged in the conspiracy.
Hamza Abbas, 29, Khalid Abbas, 55, Abdul Fatani, 55, all of Richmond; and Syed Ali, 53, of Sugar Land, are set to make their initial appearances tomorrow before U.S. Magistrate Judge Andrew M. Edison.
According to court documents, Hamza Abbas, Khalid Abbas, Fatani and Ali conspired with others to submit more than 80 false and fraudulent PPP loan applications. They allegedly falsified the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the defendants sought over $35 million in PPP loan funds and obtained approximately $18 million in PPP loan proceeds, according to the charges.
The superseding indictment further alleges they laundered a portion of the fraudulent loan proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks allegedly included some of the defendants and their relatives. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store – a check-cashing company. The superseding indictment alleges that over 1,100 fake paychecks totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
Previously charged were Amir Aqeel, 53, and Pardeep Basra, 52, both of Houston; Rifat Bajwa, 53, Richmond; Mayer Misak, 41, Cypress; Mauricio Navia, 42, Katy; Richard Reuth, 58, Spring; and Siddiq Azeemuddin, 42, Naperville, Illinois. Aqeel, Bajwa, Basra, Misak, and Navia are also named defendants in the superseding indictment.
Azeemuddin and Reuth have pleaded guilty for their involvement in the scheme. Four others - Abdul Farahshah, 70, Jesus Acosta Perez, 31, and Bijan Rajabi, 68, all of Houston; and Raheel Malik, 41, of Sugar Land - have pleaded guilty for their involvement in the scheme. Malik pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud and money laundering on Oct. 8. Farahshah, Perez and Rajabi each pleaded guilty to a one-count information charging them with conspiracy to commit wire fraud on Nov. 30.
The defendants in the superseding indictment are all charged with conspiracy to commit wire fraud and wire fraud. Aqeel, Khalid Abbas, Ali and Fatani are also charged with money laundering. Aqeel is also charged with aggravated identity theft and is alleged to have submitted PPP loan applications by stealing the identities of uninvolved parties.
If convicted, the defendants face a maximum penalty of 20 years in prison per count of wire fraud and 10 years for each money laundering conviction. If convicted of aggravated identity theft, Aqeel faces a mandatory minimum sentence of two years in addition to the sentence imposed for the other offenses.
The SBA - Office of Inspector General (OIG), Federal Housing Finance Agency – OIG, Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG and Treasury Inspector General for Tax Administration conducted the investigation.
Assistant U.S. Attorney (AUSA) Rodolfo Ramirez is prosecuting the case along with Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson is handling forfeiture matters.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four People Sentenced to Prison for Roles in Multimillion-Dollar Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Four people who participated in a scheme to defraud New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions have been sentenced to prison, Acting U.S. Attorney Rachael A. Honig announced today.
- Michael Pilate, 43, of Williamstown, New Jersey, formerly a guidance counselor with the Pleasantville public school district, and Tara LaMonaca, 47, of Linwood, New Jersey, formerly a pharmaceutical sales representative, were sentenced by U.S. District Judge Robert B. Kugler in Camden federal court today to 18 months in prison and eight months in prison, respectively.
- George Gavras, 40, formerly a pharmaceutical sales representative from Moorestown, New Jersey, and Andrew Gerstel, 43, formerly a pharmaceutical sales representative from Galloway, New Jersey, were sentenced by Judge Kugler on Dec. 14, 2021, to 13 months in prison and 12 months and one day in prison, respectively.
All four defendants previously pleaded before Judge Kugler to separate informations charging each with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Pilate, LaMonaca, Gavras and Gerstel, and others, served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid the conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, the conspirators would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity. They would then get the prescriptions signed by doctors and other qualified health professionals who never saw the patients or evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
In addition to the prison terms, Judge Kugler sentenced Pilate, LaMonaca, and Gerstel each to three years of supervised release, and Gavras to two years of supervised release.
As part of their plea agreements, Pilate must forfeit $392,684 in criminal proceeds and pay restitution of $3.49 million; LaMonaca must forfeit $89,855 in criminal proceeds and pay restitution of $523,831; Gavras must forfeit $204,002 in criminal proceeds and pay restitution of $677,815; and Gerstel must forfeit $184,389 in criminal proceeds and pay restitution of $483,946.
Acting U.S. Attorney Honig credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina Hud of the U.S. Attorney’s Office in Camden.
Four Charged in $35 Million COVID-19 Relief Fraud SchemeRead the Press Release
A federal grand jury in Houston returned a superseding indictment, which was unsealed today, charging four additional individuals for fraudulently obtaining and laundering millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In total, 15 individuals across two states have now been charged in the conspiracy.
According to court documents, Hamza Abbas, 29, Khalid Abbas, 55, Abdul Fatani, 55, all of Richmond, Texas; and Syed Ali, 53, of Sugar Land, Texas, conspired with others to submit more than 80 false and fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the defendants sought over $35 million in PPP loan funds and obtained approximately $18 million in PPP loan proceeds.
The superseding indictment further alleges that the defendants laundered a portion of the fraudulent loan proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks included some of the defendants and their relatives, according to the charges. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store – a check-cashing company. The superseding indictment alleges that over 1,100 fake paychecks, totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
Amir Aqeel, 53, of Houston, Texas; Siddiq Azeemuddin, 42, of Naperville, Illinois; Rifat Bajwa, 53, of Richmond, Texas; Pardeep Basra, 52, of Houston, Texas; Mayer Misak, 41, of Cypress, Texas; Mauricio Navia, 42, of Katy, Texas; and Richard Reuth, 58, of Spring, Texas, were previously indicted for their involvement in the fraudulent loan scheme. Aqeel, Bajwa, Basra, Misak, and Navia are also named defendants in the superseding indictment.
Azeemuddin and Reuth pleaded guilty for their involvement in the scheme on Oct. 8 and 9, respectively. Four other individuals – Abdul Farahshah, 70, Jesus Acosta Perez, 31, and Bijan Rajabi, 68, all of Houston, Texas; and Raheel Malik, 41, of Sugar Land, Texas – have also pleaded guilty for their involvement in the scheme. Malik pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud and money laundering on Oct. 8. Farahshah, Perez, and Rajabi each pleaded guilty to a one-count information charging them with conspiracy to commit wire fraud on Nov. 30.
The defendants in the superseding indictment are all charged with conspiracy to commit wire fraud and wire fraud. Aqeel, Khalid Abbas, Ali, and Fatani are also charged with money laundering. Aqeel is also charged with aggravated identity theft and is alleged to have submitted PPP loan applications by stealing the identities of uninvolved parties. The defendants are scheduled for their initial court appearance tomorrow before U.S. Magistrate Judge Andrew M. Edison of the U.S. District Court for the Southern District of Texas. If convicted, the defendants face a maximum penalty of 20 years in prison per count of wire fraud, and 10 years in prison per count of money laundering. If convicted of aggravated identity theft, Aqeel faces a mandatory minimum sentence of two years in addition to the sentence imposed for the other offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA–Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency–Office of Inspector General (FHFA-OIG); Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation–Office of Inspector General (FDIC-OIG); and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the case.
Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Rodolfo Ramirez of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson is handling forfeiture matters.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former U.S. Postal Service Employee Pleads Guilty to Stealing Government PropertyRead the Press Release
HUNTINGTON, W.Va. – An Ohio man pleaded guilty today to theft of government property.
According to court documents and statements made during the plea hearing, Teddy Wayne Hale, Jr., 55, is a former employee of the United States Postal Service who worked at the vehicle maintenance facility in Huntington. Hale admitted that from June 15, 2017 and continuing through September 28, 2018, he stole more than 71 vehicle tires from the Huntington vehicle maintenance facility. Hale hid his thefts by using his position of employment to manipulate tire inventory. After Hale stole the tires, he sold them for his personal financial benefit.
Hale faces up to 10 years in prison when he is sentenced on March 21, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Service-Office of Inspector General (OIG).
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Ryan Blackwell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00189.
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Former Postal Employee Pleads Guilty to Delay of U.S. MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MILES J. DUPERON, age 29, of Slidell, pled guilty on December 14, 2021 to one count of delay of U.S. Mail matter by postal employee, in violation of 18 U.S.C. ' 1703(a).
According to the bill of information, on or about July 2019 through January 21, 2020, MILES J. DUPERON unlawfully delayed U.S. mail, which was intended to be conveyed by mail.
MILES J. DUPERON faces a maximum term of imprisonment of five years, a fine of up to $250,000.00 or the greater of twice the gross gain to defendant or loss to victim, up to three years supervised release after imprisonment, and a $100 mandatory special assessment fee.
U.S. District Judge Greg G. Guidry has set sentencing for March 22, 2022.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of Inspector General in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Former North Country Postal Clerk Sentenced for Stealing Prescription Drugs from Mail ParcelsRead the Press Release
ALBANY, NEW YORK – Brittany Irvine, age 27, formerly of Bloomingdale, New York, was sentenced today to 12 months of probation and to pay a fine of $5,000 for stealing prescription drugs from mail parcels.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).
Irvine previously admitted that beginning on June 18, 2019, and until her arrest on August 27, 2019, while working as a Distribution Clerk at the United States Post Office in Bloomingdale, she opened three parcels containing prescription oxycodone pills and removed the pills.
This case was investigated by the USPS, Office of the Inspector General, and was prosecuted by Assistant U.S. Attorney Troy Anderson.
Former Minneapolis Police Officer Derek Chauvin Pleads Guilty in Federal Court to Depriving George Floyd and a Minor Victim of Their Constitutional RightsRead the Press Release
The Justice Department announced today that Derek Chauvin, 45, pleaded guilty in federal court to two violations of a federal civil rights statute.
First, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, George Floyd of his constitutional rights, resulting in Mr. Floyd’s bodily injury and death. Defendant Chauvin also agreed that the appropriate sentencing base offense level for this crime is second-degree murder because he used unreasonable and excessive force that resulted in Mr. Floyd’s death, and he acted willfully and in callous and wanton disregard of the consequences to Mr. Floyd’s life.
Second, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, a then 14-year-old juvenile of his constitutional rights, resulting in the juvenile’s bodily injury.
“Defendant Chauvin has pleaded guilty to two federal civil rights violations, one of which led to the tragic loss of George Floyd’s life,” said Attorney General Merrick B. Garland. “While recognizing that nothing can repair the harm caused by such acts, the Justice Department is committed to holding accountable those who violate the Constitution, and to safeguarding the civil rights of all Americans.”
In the plea agreement, defendant Chauvin admitted that on May 25, 2020, he willfully violated Mr. Floyd’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held his left knee across Mr. Floyd’s neck, back and shoulder and his right knee on Mr. Floyd’s back and arm. The plea agreement states that Mr. Floyd remained restrained, prone and handcuffed on the ground for approximately 10 minutes. Defendant Chauvin further admitted that he continued to use force even though he was aware that Mr. Floyd had stopped resisting, talking and moving, and even though he was aware that Mr. Floyd had lost consciousness and a pulse. Defendant Chauvin admitted that Minneapolis Police Department (MPD) policy and training requires officers to stop using force when a subject is not resisting and to move an arrestee from the prone position into a side recovery or seated position because the prone position may make it more difficult to breathe. Defendant Chauvin admitted that his willful use of unreasonable force resulted in Mr. Floyd’s bodily injury and death because his actions impaired Mr. Floyd’s ability to obtain and maintain sufficient oxygen to sustain Mr. Floyd’s life.
In the plea agreement, defendant Chauvin also admitted that he willfully violated Mr. Floyd’s constitutional right not to be deprived of liberty without due process of law, which includes an arrestee’s right to be free from a police officer’s deliberate indifference to his serious medical needs. Specifically, defendant Chauvin admitted that he failed to render medical aid to Mr. Floyd, although he saw that Mr. Floyd was lying on the ground, in serious medical need, and although he was aware that MPD policy required him to provide emergency medical aid, including CPR, to an arrestee who needs it. Defendant Chauvin admitted that his failure to render medical aid resulted in Mr. Floyd’s bodily injury and death.
Additionally, according to the plea agreement, defendant Chauvin admitted that on Sept. 4, 2017, he willfully violated a then 14-year-old juvenile’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held the juvenile by the throat and struck the juvenile multiple times in the head with a flashlight, resulting in the juvenile’s bodily injury. In the plea agreement, defendant Chauvin also admitted that he held his knee on the juvenile’s neck, shoulders and upper back for between 15 and 16 minutes, even though the juvenile was face-down on the floor, handcuffed and not resisting. Defendant Chauvin admitted that these actions resulted in the juvenile’s bodily injury.
Defendant Chauvin pleaded guilty today before U.S. District Court Senior Judge Paul A. Magnuson. Defendant Chauvin will be sentenced at a hearing to be scheduled at a later date. According to the plea agreement, defendant Chauvin faces a sentence of between 20- and 25-years imprisonment. Under the terms of the plea agreement, defendant Chauvin will serve his sentence in federal custody and will not be eligible to work in any law enforcement capacity following his release.
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension and is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, W. Anders Folk, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
Former Minneapolis Police Officer Derek Chauvin Pleads Guilty in Federal Court to Depriving George Floyd and a Minor Victim of Their Constitutional RightsRead the Press Release
St. Paul, Minn. – The Justice Department announced today that Derek Chauvin, 45, pleaded guilty in federal court to two violations of a federal civil rights statute.
First, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, George Floyd of his constitutional rights, resulting in Mr. Floyd’s bodily injury and death. Defendant Chauvin also agreed that the appropriate sentencing base offense level for this crime is second-degree murder because he used unreasonable and excessive force that resulted in Mr. Floyd’s death, and he acted willfully and in callous and wanton disregard of the consequences to Mr. Floyd’s life.
Second, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, a then 14-year-old juvenile of his constitutional rights, resulting in the juvenile’s bodily injury.
“Defendant Chauvin has pleaded guilty to two federal civil rights violations, one of which led to the tragic loss of George Floyd’s life,” said Attorney General Merrick B. Garland. “While recognizing that nothing can repair the harm caused by such acts, the Justice Department is committed to holding accountable those who violate the Constitution, and to safeguarding the civil rights of all Americans.”
In the plea agreement, defendant Chauvin admitted that on May 25, 2020, he willfully violated Mr. Floyd’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held his left knee across Mr. Floyd’s neck, back and shoulder and his right knee on Mr. Floyd’s back and arm. The plea agreement states that Mr. Floyd remained restrained, prone and handcuffed on the ground for approximately 10 minutes. Defendant Chauvin further admitted that he continued to use force even though he was aware that Mr. Floyd had stopped resisting, talking and moving, and even though he was aware that Mr. Floyd had lost consciousness and a pulse. Defendant Chauvin admitted that Minneapolis Police Department (MPD) policy and training requires officers to stop using force when a subject is not resisting and to move an arrestee from the prone position into a side recovery or seated position because the prone position may make it more difficult to breathe. Defendant Chauvin admitted that his willful use of unreasonable force resulted in Mr. Floyd’s bodily injury and death because his actions impaired Mr. Floyd’s ability to obtain and maintain sufficient oxygen to sustain Mr. Floyd’s life.
In the plea agreement, defendant Chauvin also admitted that he willfully violated Mr. Floyd’s constitutional right not to be deprived of liberty without due process of law, which includes an arrestee’s right to be free from a police officer’s deliberate indifference to his serious medical needs. Specifically, defendant Chauvin admitted that he failed to render medical aid to Mr. Floyd, although he saw that Mr. Floyd was lying on the ground, in serious medical need, and although he was aware that MPD policy required him to provide emergency medical aid, including CPR, to an arrestee who needs it. Defendant Chauvin admitted that his failure to render medical aid resulted in Mr. Floyd’s bodily injury and death.
Additionally, according to the plea agreement, defendant Chauvin admitted that on Sept. 4, 2017, he willfully violated a then 14-year-old juvenile’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held the juvenile by the throat and struck the juvenile multiple times in the head with a flashlight, resulting in the juvenile’s bodily injury. In the plea agreement, defendant Chauvin also admitted that he held his knee on the juvenile’s neck, shoulders and upper back for between 15 and 16 minutes, even though the juvenile was face-down on the floor, handcuffed and not resisting. Defendant Chauvin admitted that these actions resulted in the juvenile’s bodily injury.
Defendant Chauvin pleaded guilty today before U.S. District Court Senior Judge Paul A. Magnuson. Defendant Chauvin will be sentenced at a hearing to be scheduled at a later date. According to the plea agreement, defendant Chauvin faces a sentence of between 20- and 25-years imprisonment. Under the terms of the plea agreement, defendant Chauvin will serve his sentence in federal custody and will not be eligible to work in any law enforcement capacity following his release.
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension and is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, W. Anders Folk, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
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Former Management Consulting Firm Partner Pleads Guilty to Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that PUNEET DIKSHIT, a former partner in a global management consulting firm (the “Consulting Firm”), pled guilty to one count of securities fraud in connection with his scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”). The defendant pled guilty before U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Barely a month after he was charged, Puneet Dikshit admitted in court today that he used his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options. This conduct, which netted the defendant nearly half a million dollars in tainted profits, broke the law and violated the defendant’s duties to his firm and its client. Now Puneet Dikshit awaits sentencing for his admitted crime.”
According to the allegations in the Complaint, Information, and statements made in public court proceedings:
GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes. GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.
Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky. DIKSHIT was one of the Consulting Firm partners leading these engagements. In that role, he had access to material nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options.
DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky. At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase. However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021. After the deal to purchase GreenSky was announced, DIKSHIT sold these options and realized profits of approximately $450,000.
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DIKSHIT, 40, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. DIKSHIT is scheduled to be sentenced by Judge McMahon on March 30, 2022, at 2:00 p.m.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Joshua A. Naftalis and Matthew Podolsky are in charge of the prosecution.
Former Boston Police Auto Repair Technician Sentenced on Wire Fraud ChargesRead the Press Release
BOSTON – A former auto repair technician with the Boston Police Department’s (BPD) Fleet Management Division was sentenced yesterday in connection with a scheme to embezzle hundreds of thousands of dollars from the BPD.
Bahram Gharony, 36, of Boston, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two months in prison and three years of supervised release. Gharony was also ordered to pay restitution in the amount of $256,432. On Aug. 10, 2021, Gharony pleaded guilty to two counts of wire fraud.
Gharony engaged in a scheme that defrauded BPD’s Fleet Management Division of over $260,000 in automotive parts, tools and supplies between June 2017 and September 2020. Gharony used his position to order parts and supplies that he purported were for BPD, but were actually converted and sold to others by Gharony. In an effort to conceal the scheme, Gharony submitted fraudulent and altered invoices to BPD for the parts, tools and supplies he falsely claimed were ordered for the fleet. Additionally, Gharony purported that he had lawfully purchased the items through a discount available to BPD when selling the items to others.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit prosecuted the case.
Former Bank Manager Pleads Guilty to Theft of Government Funds and Aggravated Identity TheftRead the Press Release
BAY CITY - A former branch manager of JPMorgan Chase Bank pleaded guilty today to theft of government funds and aggravated identity theft, Acting U.S. Attorney Saima S. Mohsin announced.
Mohsin was joined in the announcement by Acting Resident Agent in Charge Katy Krieg of the Social Security Administration Office of the Inspector General, Office of Investigations, Chicago Field Division, Detroit Sub-Office.
Jeffrey Piecka, 46, of Midland pleaded guilty before U.S. Magistrate Judge Patricia T. Morris.
Piecka pleaded guilty to devising and executing a scheme to steal $169,967.63 in government benefits from the bank account of a deceased individual. In the course of his employment with Chase, Piecka conducted a search of open accounts with little account activity. He found an account that was not being used and suspected that the account owner was deceased. Piecka then made changes to the bank account to create online account access for himself, and he proceeded to withdraw significant sums of money from the account by various means, including by initiating an electronic transfer to himself, negotiating online bill payment checks made payable to himself, and making online payments to credit card companies, a utility company, his apartment complex, and his car lender.
Piecka entered into a plea agreement, under which he agreed to pay full restitution to the Social Security Administration in the amount of $169,967.63. A sentencing date will be set by the court.
This case was investigated by special agents of the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Corinne M. Lambert.
Former Analyst Pleads Guilty to Securities Fraud for Committing Insider Trading by Front-Running Employer’s Pending TradesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SERGEI POLEVIKOV, a former analyst employed by an asset management firm, pled guilty to one count of securities fraud in connection with his multi-year scheme to commit insider trading by misappropriating confidential information about pending trades by his former employer. POLEVIKOV was arrested in September of this year, and pled guilty today in Manhattan federal court before U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “As he admitted in court today, Sergei Polevikov broke the law when he exploited material, nonpublic information to make personal trades ahead of his employer’s large institutional trades. Polevikov now awaits sentencing for his crime, and he must also forfeit more than $8 million in illicit profit.”
According to the Information to which POLEVIKOV pled guilty, the complaint that was filed in this case, and statements made during court proceedings:
From at least in or about 2014 through in or about October 2019, POLEVIKOV was employed as a quantitative analyst at an asset management firm with headquarters in New York, New York (the “Employer Firm”). In his role at the Employer Firm, POLEVIKOV had regular access to information regarding contemplated securities trades on behalf of the Employer Firm’s clients, which included investment companies. During the period charged in the Complaint, POLEVIKOV engaged in a front-running scheme to misappropriate confidential, material, nonpublic information about the securities trade orders of the Employer Firm on behalf of its clients in order to engage in short-term personal securities trading in a brokerage account opened in his wife’s name. POLEVIKOV’s trading scheme was designed to take advantage of relatively small price movements in a company’s stock that followed from large securities orders executed by the Employer Firm on behalf of its clients. In total, POLEVIKOV’s scheme yielded more than $8.5 million in illicit profits.
As part of his plea agreement, POLEVIKOV has agreed to forfeit $8,564,977 on or before April 1, 2022.
POLEVIKOV is scheduled to be sentenced by Judge Liman on April 12, 2022.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the Securities & Exchange Commission, which brought a related civil action against POLEVIKOV.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
Foreign National Sentenced for Unlawful Possession of AmmunitionRead the Press Release
Hattiesburg, Miss. – A foreign national who had been living in Texas was sentenced to 33 months in prison and ordered to pay a $10,000 fine for being an illegal alien in possession of ammunition, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, Michael Rempel Klassen, 24, was driving a vehicle which was stopped on February 24, 2021, by a New Augusta Police officer for careless driving on U.S. Highway 98. The officer requested a driver’s license and Klassen provided a driver’s license from the State of Chihuahua, Mexico. Klassen said he did not have a driver’s license from the U.S., that his work visa had expired in 2017, and that he had not renewed the work visa.
Officers located two firearms, a silencer and numerous rounds of ammunition in Klassen’s vehicle. The ATF was notified, and a Homeland Security Investigations Special Agent also joined the case regarding immigration issues. Records showed that Klassen was born in Canada and confirmed that he was illegally present at the time of his 2021 arrest in Perry County.
Upon his release from prison, Klassen may face U.S. Immigrations and Customs Enforcement removal proceedings. If removed from the U.S. following his prison sentence, Klassen could face additional penalties if he were to unlawfully return, as well as further prosecution.
Klassen pled guilty on September 10, 2021.
The case was investigated by the ATF, HSI, the New Augusta Police Department, and the Perry County Sheriff’s Office.
Assistant U.S. Attorney Stan Harris prosecuted the case as part of the federal, state and local Project Safe Neighborhoods (PSN) Program. The centerpiece of the Department of Justice’s crime reduction efforts, PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts and partners with locally based prevention and reentry programs for lasting reductions in crime.
Felon Sentenced to More than Eight Years in Prison for Possessing a FirearmRead the Press Release
HUNTINGTON, W.Va. – A Ravenna, Ohio man was sentenced today to eight years and four months in prison for being a felon in possession of a firearm.
According to court documents, Omarr Boone, 37, previously admitted that on March 9, 2021, officers with the Huntington Police Department responded to a shooting at the Shell Gas Station in Huntington. After a vehicle pursuit, Boone was placed under arrest. Officers searched Boone’s vehicle and found a stolen Smith and Wesson SD9 VE in the vehicle. Boone has eight prior felony convictions and is prohibited from possessing a firearm under federal law.
United States Attorney Will Thompson made the announcement and commended the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the sentencing. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00101.
Federal Grand Jury Returns Indictment Against Bowling Green Man for Two Bank RobberiesRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned an indictment today charging a Bowling Green man with two bank robberies.
According to court documents, Manuel G. Quiros, 59, of Bowling Green, KY, was charged with robbing German American Bank on July 29, 2021, and December 1, 2021. Quiros is also charged with forcing a person to accompany him during the December 1, 2021, robbery.
The defendant is scheduled to make his initial court appearance on December 29, 2021, before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky. If convicted, Quiros faces a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office made the announcement.
The FBI Bowling Green and the Bowling Green Police Department are investigating the case.
Assistant U.S. Attorney Mark J. Yurchisin II is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Man for Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Friday, December 10, 2021, that PERCY SMITH, age 43, resident of New Orleans, LA, was charged in a two-count indictment for his alleged participation in a weapons violation on June 19, 2021 and on June 30, 2021.
According to court documents, SMITH is charged in Counts 1 and 2 of the indictment with possessing a firearm on two separate occasions, on June 19, 2021 and June 30, 2021, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). If convicted, SMITH faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
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.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
Federal Grand Jury Indicts Man for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on September 9, 2021, RANDY FIELDS, age 30, resident of Orleans Parish, was charged in a four-count sealed indictment for alleged drug and gun violations. These violations occurred on March 31, 2021. In Count 1 of the indictment, FIELDS is charged with possession with intent to distribute over 40 grams of fentanyl. Count 2 charges FIELDS with possessing a firearm in furtherance of a drug trafficking offense. Count 3 charges FIELDS with being a felon in possession of a firearm and Count 4 charges him with possessing a machine gun. The indictment was unsealed on December 10, 2021
In Count 1 of the indictment, FIELDS is charged with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B)(vi). If convicted, FIELDS faces a maximum sentence of up to 40 years of imprisonment, a fine of up to $5,000,000.00, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. In Count 2, FIELDS is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). If convicted, FIELDS faces a mandatory minimum sentence of up to 5 years to life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, up to 5 years of supervised release, and a mandatory special assessment fee of $100.00. In Count 3, FIELDS is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). If convicted, FIELDS faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. Finally, in Count 4, FIELDS is charged with being in possession of a machine gun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). If convicted, FIELDS faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
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.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
Fayetteville Home-Health Services Company Agrees to Settle False Claims Act Allegations Related to Death of a VeteranRead the Press Release
Raleigh, N.C. – A home-health services company based in Fayetteville, North Carolina, has agreed to pay $45,486.76 to settle civil False Claims Act allegations related to allegedly fraudulent billings for purported work by a recently convicted felon under their employ.
Professional Family Care Services, Inc. (“PFCS”) provides, among other things, home-health services to patients in southeastern North Carolina, including to veterans of the United States Armed Forces. During 2015 and 2016, PFCS billed the Department of Veterans Affairs (“VA”) for home-health services purportedly provided to W.R., an Army veteran, even though, at that time, W.R. was actually residing with the company’s employee, Certified Nurse Aide Tracey McNeill. The evidence showed that PFCS based its billing for those services on falsified timesheets provided by Ms. McNeill, who failed to provide both the time and quality of care required under the VA program. In some instances, Ms. McNeill submitted blatantly inconsistent timesheets indicating that she was providing services to W.R. and another patient at the exact same times.
After several months living with Ms. McNeill and while purportedly receiving home-health services provided by Ms. McNeill through PFCS, W.R. had to be admitted to the hospital with severe bedsores. Evidence showed that he was extremely malnourished, and he ultimately died within a few days of his admission.
Nevertheless, PFCS submitted fifteen separate claim forms seeking payment from the VA for services purportedly provided by Ms. McNeill to W.R. between October 2015 and December 2016, resulting in payment by the VA of $11,273.92. The federal False Claims Act, however, mandates that the government recover three times the damages caused by the fraud, plus civil penalties for false or fraudulent claims. PFCS agreed to pay $45,486.76 to resolve the claims.
Earlier in 2021, Ms. McNeill was convicted of wire fraud for her misconduct related to W.R., was sentenced to 12 months and 1 day in federal prison, and was ordered to pay over $90,000 in restitution.
“The home-health services provided to the veteran by his supposed care-giver were deplorable,” said United States Attorney Michael F. Easley, Jr. “Our veterans should be honored and respected for their service, not abused for others’ financial gain. The United States will always pursue justice for them, and for the programs in place to help support them. This case, on both the criminal and civil side, embodies that unwavering commitment.”
It should be noted that the civil claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability. PFCS cooperated fully in resolving these claims.
Assistant United States Attorney John E. Harris represented the United States in this civil action. The Department of Veterans Affairs, Office of Inspector General (VA-OIG) assisted in this investigation.
Court documents and information about the criminal case against Ms. McNeill are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-000474-D.
Fairmont man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kerm Leroy Jackson, of Fairmont, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Jackson, also known as “Woo,” 28, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine.” Jackson admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.
Jackson faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Everton Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – An Everton, Missouri, man was sentenced in federal court today for illegally possessing the firearm he was carrying at the time he was arrested for rape and sex trafficking in Lawrence County, Mo.
David Arnold, 48, was sentenced by U.S. District Judge Brian C. Wimes to seven years and one month in federal prison without parole. The court also ordered this federal sentence to be served consecutively to Arnold’s sentence in a separate state case for illegally possessing a firearm.
On April 13, 2021, Arnold pleaded guilty to being a felon in possession of a firearm. Arnold admitted he was in possession of a Jimenez Arms 9mm semi-automatic pistol on Oct. 18, 2019.
The U.S. Marshal Service was searching for Arnold that day following a warrant that was issued for his arrest in Lawrence County on charges related to rape, kidnapping, and sex trafficking A task force officer located Arnold’s vehicle at a residence in Springfield, and he was taken into custody. Arnold was carrying the loaded pistol in a holster on his right hip and was in possession of 3.3 grams of methamphetamine.
The Lawrence County charges are still pending.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arnold has eight prior felony convictions, including multiple instances of possession or distribution of a controlled substance, driving while intoxicated-persistent offender, involuntary manslaughter, illegally possessing a firearm, and assaulting a law enforcement officer. His 31 misdemeanor convictions include several convictions for driving under the influence.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshal Service.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eleven People Charged in Fentanyl and Crack Cocaine ConspiracyRead the Press Release
NEWARK, N.J. – Eleven people were charged today for their respective roles in a fentanyl and crack cocaine distribution organization that sold large quantities of controlled substances in the area of Brookdale Avenue and Abinger Place in Newark, Acting U.S. Attorney Rachael A. Honig announced.
Leon Clark, aka “Dino,” 40; Abdul Price, aka “Ab,” aka “Dred,” 43; Elijawan White, aka “Eli,” 33; Janice Anderson, 53; Sherriff Simpson, 38; Kesean Holley, aka “Jack,” 29; Terrance Brown, aka “B-Love,” 42; Corey Ewings, 38; Elijah Robinson, aka “Horse,” 40; Barry Jordan Jr., 48; and Frazier Burton, 46, all of Newark, each were charged by superseding complaint with one count of conspiracy to distribute 400 grams or more of fentanyl and 280 grams or more of crack cocaine. Ten of the defendants are in custody and are scheduled to have their initial court appearances today before U.S. Magistrate Judge Leda Dunn Wettre by videoconference.
According to documents filed in this case and statements made in court:
The defendants ran an open-air narcotics market in the area of Brookdale Avenue and Abinger Place. For several months, law enforcement officials conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions among Clark, Price, White, Anderson, Simpson, Holley, Brown, Ewings, Robinson, and Jordan. The investigation likewise revealed that Burton was a primary supplier of heroin and fentanyl to the drug trafficking organization. At the time of his arrest this morning, Burton was in possession of approximately 100 bricks of suspected heroin and fentanyl branded with stamps that matched prior sales from the drug trafficking organization.
The count with which the defendants are charged carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison and a maximum fine of $10 million.
Acting U.S. Attorney Honig credited special agents of the FBI, under the supervision of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio, with the investigation leading to the charges. She also thanked police officers and detectives of the Newark Police Department, officers of the Essex County Sheriff’s Office, detectives of the Essex County Prosecutor’s Office, the East Orange Police Department, and the Essex County Department of corrections for their assistance with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and DeNae M. Thomas of the Office’s Violent Crimes Unit.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
East St. Louis man enters guilty plea for deadly carjacking and is sentenced to 25 years in federal prisonRead the Press Release
ST. LOUIS – Demario Hunter of East St. Louis, Illinois, appeared before United States District Court Judge John A. Ross today. Hunter pleaded guilty and was sentenced to 25 years in federal prison for an attempted carjacking in the city of St. Louis during which the victim was shot and killed. Hunter was previously charged by criminal complaint on September 6, 2019.
According to the plea agreement, on March 18, 2019, Hunter, accompanied by two co-defendants attempted to carjack James A. Sapone of his 2013 Ford Escape near the intersection of Cherokee and Iowa in the city of St. Louis. A struggle ensued and Hunter shot and killed Sapone during the commission of the attempted carjacking.
Cases for the two co-defendants are pending before the court.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
Dominican National Pleads Guilty to Cocaine ConspiracyRead the Press Release
BOSTON – A Dominican national recently residing in Lawrence pleaded guilty today in federal court in Boston to her role in a cocaine distribution conspiracy.
Michel Saredi-Munoz Morta, 21, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for April 14, 2022. Morta was charged on Nov. 16, 2021.
In or about August 2020, several Priority Mail packages sent to addresses in Lawrence were identified by law enforcement as parcels suspected to contain illegal narcotics. Surveillance of the addresses captured a woman, later identified as Morta, collect the packages shortly after delivery at each location. Morta was subsequently arrested. The packages were found to contain over 500 grams of cocaine.
The charge of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. Morta will be subject to deportation upon completion of her sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Lawrence Police Department provided valuable assistance in the investigation. Assistant U.S. Attorneys Samuel R. Feldman and Leah B. Foley of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.