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Wednesday 3 November 2021
Hot Springs Man Sentenced to 30 Years in Federal Prison for Drug Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Hot Springs, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 25, 2021, by U.S. District Court Judge Jeffrey L. Viken.
Nathan Bellew, age 40, was sentenced to 30 years in federal prison, followed by five years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $60 in restitution.
Bellew was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 23, 2020. He pleaded guilty on May 28, 2021. During his involvement in the conspiracy, the defendant brought methamphetamine into the state through arrangements made by him with suppliers in other states. Upon arrival in South Dakota, the defendant further dispersed the drugs to others for use and distribution in the Rapid City area.
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.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Bellew was immediately turned over to the custody of the U.S. Marshals Service.
Horse Cave Man Sentenced for Stealing Firearms from EmployerRead the Press Release
BOWLING GREEN, KENTUCKY – Brandon Wayne Parker, age 41, of Horse Cave, Kentucky was sentenced today by Chief United States District Judge Greg N. Stivers to serve 82 months in federal prison and pay restitution in the amount of $99,588.40 for Theft of Firearms from a Federal Firearms Licensee, Possession of Stolen Firearms, Providing False Information on ATF Forms 4473, and Aggravated Identity Theft. There is no parole in the federal system.
“I commend the outstanding work of the ATF in this case,” stated Acting U.S. Attorney Michael A. Bennett. “Identifying, arresting, and prosecuting individuals involved in the theft of firearms is an important part of our overall strategy to combat violent crime and keep our communities safe.”
“Federally licensed firearms dealers work with ATF’s Louisville Field Division to ensure the lawful sale of guns in shops throughout Kentucky and West Virginia,” stated Special Agent in Charge, R. Shawn Morrow of the ATF Louisville Field Division. “In this case, an employee stole firearms from his employer through ongoing fraud and identity theft. ATF is committed to the safety of our communities by investigating and arresting those who obtain firearms through illegal means.”
According to court documents, Parker was employed by Master Pawn of Horse Cave, a federally licensed firearms dealer, located in Horse Cave, Kentucky. In his plea agreement, Parker admitted that he stole approximately 335 firearms from Master Pawn between November 2016 and August 22, 2018. Parker also admitted that he provided false information on ATF Forms 4473 by entering identification information of legitimate purchasers, without their knowledge, to fraudulently obtain and steal the firearms. An ATF Form 4473 is required to be filled out to purchase a firearm from a federally licensed firearms dealer.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case.
Assistant U.S. Attorney Joshua Judd 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.
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Harrisburg Man Sentenced to 156 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joe Willie Williams, Jr., age 42, formerly of Harrisburg, Pennsylvania, was sentenced on October 29, 2021, to 156 months’ imprisonment by United States District Court Judge Christopher C. Conner for possession with intent to distribute 500 grams and more of cocaine hydrochloride and 28 grams and more of cocaine base.
According to Acting United States Attorney Bruce D. Brandler, a joint investigation by DEA and the Dauphin County Drug Taskforce revealed that Williams was trafficking cocaine in the Harrisburg area. During a vehicle stop police seized 127 grams of cocaine concealed in the vehicle Williams was driving. After obtaining a search warrant, a search of Williams’ residence on March 10, 2020 was conducted. During the search, law enforcement determined the residence to be a “stash house.” Officers located 224 grams of cocaine base (crack) packaged for sale, over four kilograms of cocaine hydrochloride (powder), a digital scale, a large quantity of United States currency, a money counter, drug packaging, cutting agents, and cookware containing cocaine residue, among other items indicative of drug trafficking.
Williams was previously convicted in 2006 before the Middle District of Pennsylvania District Court and was sentenced to 190 months’ imprisonment for his conviction of distribution and possession with intent to distribute cocaine base.
The case was investigated by the Drug Enforcement Administration and the Dauphin County Drug Task Force. Assistant U.S. Attorney Daryl Bloom prosecuted 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.
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Guatemalan National Indicted on Illegal Reentry ChargeRead the Press Release
PITTSBURGH - One Guatemalan national has been indicted by a federal grand jury in Pittsburgh on a charge of Reentering the United States, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Sergio Ramirez-Lopez, 25, as the sole defendant.
According to a publicly filed Complaint, on May 15, 2021, Mr. Ramirez-Lopez was found in the Allegheny County Jail after he was arrested by the Pittsburgh Bureau of Police. Mr. Ramirez-Lopez has been removed from this country on several previous occasions.
The law provides for a maximum total sentence of not more than three years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Greer Man Pleads Guilty to Wire Fraud and Money Laundering Involving Just Under $2 Million in Coronavirus FundsRead the Press Release
Greenville, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Jeffrey Gossett, 47, of Greer, has pleaded guilty to felony counts of wire fraud and money laundering stemming from the theft of nearly $2 million in funds related to the Coronavirus, specifically Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).
“Taking money meant for those in need is reprehensible, especially during a pandemic,” said Acting U.S. Attorney DeHart. “With the help of our federal and local partners, this office will continue to investigate and prosecute those who seek to turn the misfortune of others into illegal gains for themselves.”
“While many small businesses were struggling to make ends meet at the height of the COVID-19 pandemic, Gossett submitted fraudulent claims for his personal benefit," said Susan Ferensic, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Columbia field office. “The FBI and its federal partners will continue to pursue those who take advantage of programs meant to help small businesses during difficult times.”
“Making false statements to fraudulently gain access to SBA program funds is unacceptable,” said Amaleka McCall-Brathwaite, Small Business Administration (SBA) Office of Inspector General’s (OIG’s) Eastern Region Special Agent in Charge. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
Evidence presented to the Court showed that, from March 2020 and continuing until August 2020, Gossett devised a scheme to defraud and obtain money and property by false and fraudulent pretenses. Specifically, Gossett submitted false PPP loan and EIDL applications issued as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. During the course of the scheme, Gossett fraudulently obtained $1,870,549.00 of PPP and EIDL assistance.
For the most serious charge, Gossett faces a maximum penalty of 20 years in federal prison, a fine of $250,000, 3 years of supervision to follow the term of imprisonment, and restitution. United States District Judge Timothy M. Cain accepted the guilty plea and will sentence Gossett after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the FBI, SBA OIG, and the Internal Revenue Service. Assistant United States Attorney Winston Marosek is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Georgia Man Pleads Guilty to Fraudulently Obtaining over $170,000 in Unemployment Insurance BenefitsRead the Press Release
LAS VEGAS, Nev. – A Lawrenceville, Georgia, man pleaded guilty today to fraudulently obtaining over $170,000 in unemployment benefits by submitting multiple unemployment claims in other people’s names and using benefits debit cards not belonging to him.
According to court documents and admissions made in court, on September 11, 2020, Robert Devon Barber (25) and co-conspirator Keheir Jordan Parker (25, of Victorville, Calif.) were stopped in Las Vegas for a traffic violation. During the traffic stop, law enforcement officers recovered 12 California Employment Development Department (EDD) unemployment insurance benefits debit cards issued in other peoples’ names, along with ATM receipts showing that the debit cards had been used to make cash withdrawals totaling $7,400 in Nevada and California.
At least $249,460 in unemployment benefits was approved for the claims associated with the 12 recovered EDD cards. Approximately, $170,715.78 was withdrawn from accounts associated with those 12 cards, including $148,400 in ATM cash withdrawals and $22,315.78 in purchases.
Barber pleaded guilty to one count of conspiracy to effectuate illegal transactions with access devices. He faces a statutory maximum penalty of seven and a half years in prison and a $250,000 fine. U.S. District Judge Richard F. Boulware II scheduled sentencing for February 1, 2022.
Co-defendant Parker pleaded guilty in June 2021, and he is awaiting sentencing.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Garland Man Sentence to 13 Years for ‘Mystery Shopper’ Mail FraudRead the Press Release
A Garland man has been sentenced to 13 years in federal prison for his role in a so-called “mystery shopper” mail fraud, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
John Lewis Davis, II, 45, of Garland, pleaded guilty in April to one count of conspiracy to commit mail fraud and two counts of mail fraud. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.
According to court documents, between August 2014 and January 2018, the defendant conspired with others to send counterfeit U.S. Postal money orders and checks to unwitting individuals, who would then cash the money orders at banks and other financial institutions and send a portion of the money back to the defendant and his co-conspirators.
As part of the fraud, the defendant and his co-conspirators caused two packages from Nigeria to be sent to the defendant. Both packages were intercepted by law enforcement prior to reaching the recipients. Upon opening the packages, law enforcement found approximately 3,400 counterfeit money orders between the two parcels.
Trial Attorney Matthew P. Mattis of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Nick Bunch (fmr.) and Katherine Miller of the Northern District of Texas prosecuted the case.
Gangster Disciples Enforcer and Hitman Convicted of RICO Murder, Killing Witness, and Other Violent CrimesRead the Press Release
A federal jury convicted a Tennessee man today on Racketeer Influenced and Corrupt Organizations Act (RICO) charges, including murder in aid of racketeering activity, stemming from his participation in a violent, criminal racketeering enterprise known as the Gangster Disciples.
Brandon Durell Hardison, aka Creep, and aka Creeper da Reeper, 35, of Nashville, was convicted of RICO conspiracy, murder in aid of racketeering, causing death through the use of a firearm, murder of a witness to prevent communication to a law enforcement official regarding a federal offense, and assault resulting in serious bodily injury in aid of racketeering.
“Local, state, and federal law enforcement partners worked for nearly a decade with federal prosecutors to build this case against the Gangster Disciples, and this defendant in particular,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s successful outcome is a testament to the hard work of our partners, and the dedication they have to the safety of our communities.”
“Today’s verdict marks the end of a decade of violence and lawlessness inflicted upon our communities by ruthless gang members,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “This investigation resulted in federal charges against 32 gang members and associates, including 12 in this RICO indictment. No longer will they be in a position to bring such violent and destructive behavior upon our communities. We look forward to the sentencing phase of this case so that we can be assured that Mr. Hardison never has the opportunity to commit another crime. I commend our law enforcement partners and prosecution team for staying the course and bringing justice on behalf of our citizens.”
“This conviction removed one of Clarksville’s most violent criminals from the streets,” said Special Agent in Charge Mickey French of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “Though we were able to disrupt the activities of this violent organization, our work is not done. In order to keep our communities safe, ATF and our law enforcement partners remain committed to pursuing these violent gangs that engage in dangerous and illegal activities.”
Hardison is last of 12 defendants indicted by a grand jury in this investigation against the Gangster Disciples. Five defendants, all Gangster Disciples’ members, were previously convicted after trial in April 2019, of RICO conspiracy, drug trafficking, and other offenses:
- Maurice Duncan Burks, aka Reesy, 35, of Hopkinsville, Ky.
- Marcus Termaine Darden, aka MD and aka Tuff, 43, of Guthrie, Ky.
- Derrick Lamar Kilgore, aka Smut, 37, of Clarksville, Tenn.
- DeCarlos Titington, aka Los, 46, of Clarksville, Tenn.
- Elance Justin Lucas, aka Mac Luke, 32, of Clarksville, Tenn.
The other indicted defendants previously pleaded guilty to related offenses:
Xavier Raphael Jenkins, aka Xa, 33, of Clarksville, Tenn.; assault resulting in serious bodily injury in aid or racketeering;
Lamar Andre Warfield, aka Jug, 32, of Guthrie, Ky.; RICO conspiracy, conspiracy to possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, possession of a firearm during a crime of violence and causing death through the use of a firearm;
Lawrence Mitchell, aka Chop, 37, of Clarksville, Tenn.; RICO conspiracy, conspiracy to possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, and possession of a firearm during a crime of violence;
Rex Andrew Whitlock, aka Stackhouse, 36, of Clarksville, Tenn.; RICO conspiracy, conspiracy to distribute controlled substances, and causing death through the use of a firearm;
Lorenzo Cortez Brown, aka Zo, 35, of Murfreesboro, Tenn.; RICO conspiracy, conspiracy to possess with the intent to distribute controlled substances, distribution of controlled substances within 1000 feet of a school;
James Anderson Luke, aka New York, 34, of Clarksville, Tenn.; RICO conspiracy and conspiracy to possess with the intent to distribute controlled substances.
According to court documents and evidence presented at the three-week trial, Hardison conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the United States, including Tennessee. The Gangster Disciples are a highly organized enterprise, operating under the national leadership of a corporate board-style group that was responsible for gang decisions at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who were responsible for the gang’s activities in specific geographic regions.
Operating from a set called the “Clarksville deck,” Hardison committed various crimes on behalf of the gang, including shootings, attempted murders, and murders.
Evidence presented at trial showed that on Jan. 6, 2012, Hardison murdered a Gangster Disciples’ associate for failing to repay a drug debt. He then shot and killed the associate’s girlfriend, who was a witness to the murder, to prevent her from talking to law enforcement. Hardison enlisted other Gangster Disciples members to dispose of the murder weapon. Following these murders, Hardison was rewarded by being appointed to various positions in the Gangster Disciples, including regional chief enforcer and a member of their notorious hitman group called the “Blackout Squad.”
Hardison and several co-conspirators plotted on several occasions to assault members of a rival gang. On Sept. 26, 2012, Hardison participated in a shooting of an occupied residence belonging to a member of the Bloods gang in Clarksville, Tennessee. Additionally, on Nov. 3, 2012, Hardison and others shot and killed a member of the Bloods gang inside a nightclub in Clarksville, Tennessee.
In addition to Hardison’s crimes, evidence was presented that other Gangster Disciples members engaged in drug trafficking, intimidated witnesses to prevent them from cooperating with law enforcement, protected the gang’s drug territory, financed the enterprise, and violently enforced gang rules.
At sentencing, Hardison faces a mandatory minimum of life in prison for murder in aid of racketeering, a maximum sentence of life in prison for the offenses of racketeering conspiracy, causing death through the use of a firearm, and killing a witness to prevent communication to a law enforcement; He faces 20 years’ incarceration for the assault causing serious bodily injury in aid of racketeering offense.
The ATF; Tennessee Bureau of Investigation, Metropolitan Nashville Police Department; Montgomery County Sheriff’s Office; and Clarksville Police Department investigated the case.
Trial Attorney Gerald A. A. Collins of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Benjamin Schrader of the U.S. Attorney’s Office for the Middle District of Tennessee prosecuted the case.
Gangster Disciples Enforcer and Hitman Convicted of RICO Murder, Killing Witness, and Other Violent CrimesRead the Press Release
NASHVILLE – Following a two-week jury trial in U.S. District Court, a federal jury today convicted Brandon Durell Hardison, aka Creep, aka Creeper da Reeper, a member of the Gangster Disciples, of multiple counts relating to a racketeering conspiracy which plagued the Clarksville, Tennessee area with violence and murders for more than a decade.
Hardison, 35, of Nashville, Tennessee, was convicted of Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, murder in aid of racketeering, causing death through the use of a firearm, killing to prevent a witness communication to a law enforcement official regarding a federal offense, and assault resulting in serious bodily injury in aid of racketeering.
“Today’s verdict marks the end of a decade of violence and lawlessness inflicted upon our communities by ruthless gang members,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “This investigation resulted in federal charges against 32 gang members and associates, including 12 in this RICO indictment. No longer will they be in a position to bring such violent and destructive behavior upon our communities. We look forward to the sentencing phase of this case so that we can be assured that Mr. Hardison never has the opportunity to commit another crime. I commend our law enforcement partners and prosecution team for staying the course and bringing justice on behalf of our citizens.”
“This case illustrates the value of federal prosecution, where we have the ability to use legal tools such as the RICO statute to go after gangs destroying communities through violent crimes and drug trafficking.” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Local, state, and federal law enforcement partners worked for nearly a decade with federal prosecutors to build this case against the Gangster Disciples, and this defendant in particular. Today’s successful outcome is a testament to the hard work of our partners, and the dedication they have to the safety of our communities.”
“This conviction removed one of Clarksville’s most violent criminals from the streets,” said Special Agent in Charge Mickey French of the ATF. “Though we were able to disrupt the activities of this violent organization, our work is not done. In order to keep our communities safe, ATF and our law enforcement partners remain committed to pursuing these violent gangs that engage in dangerous and illegal activities.”
Hardison is the last to proceed to trial of 12 defendants indicted by a grand jury in this investigation against the Gangster Disciples. Five defendants, all Gangster Disciples members, were previously convicted after trial in April 2019, of RICO conspiracy, drug trafficking, and other offenses. They are:
Maurice Duncan Burks, aka Reesy, 35, of Hopkinsville, Kentucky;
Marcus Termaine Darden, aka MD aka Tuff, 43, of Guthrie, Kentucky;
Derrick Lamar Kilgore, aka Smut, 37, of Clarksville, Tenn.;
DeCarlos Titington, aka Los, 46, of Clarksville, Tenn.; and
Elance Justin Lucas, aka Mac Luke, 32, of Clarksville, Tenn.
The other defendants previously pleaded guilty to related offenses, including:
Xavier Raphael Jenkins, aka Xa, 33, of Clarksville, Tenn.; (assault resulting in serious bodily injury in aid of racketeering);
Lamar Andre Warfield, aka Jug, 32, of Guthrie, Kentucky; (RICO conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, possession of a firearm during a crime of violence and causing death through the use of a firearm);
Lawrence Mitchell, aka Chop, 37, of Clarksville, Tenn.; (RICO conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, possession of a firearm during a crime of violence);
Rex Andrew Whitlock, aka Stackhouse, 36, of Clarksville, Tenn.; (RICO conspiracy, conspiracy to distribute controlled substances, and causing death through the use of a firearm);
Lorenzo Cortez Brown, aka Zo, 35, of Murfreesboro, Tenn.; (RICO conspiracy, conspiracy to distribute and possess with the intent to distribute controlled substances, distribution and possession with intent to distribute controlled substances within 1000 feet of a school); and
James Anderson Luke, aka New York, 34, of Clarksville, Tenn. (RICO conspiracy and conspiracy to distribute and possess with the intent to distribute controlled substances).
All have either been sentenced or are facing lengthy prison terms when sentenced.
According to court documents and evidence presented at trial, Hardison conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the United States, including Tennessee. Referred to as the “Brothers of the Struggle,” the Gangster Disciples are a highly organized enterprise, operating under the leadership of a corporate board-style group, that was responsible for gang decisions at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who were responsible for the gang’s activities in specific geographic regions.
Operating from a set called the “Clarksville deck,” Hardison committed numerous crimes on behalf of the gang, including shootings, attempted murders, and murders.
Evidence presented at trial showed that on January 6, 2012, Hardison murdered a Gangster Disciples associate for failing to repay a drug debt. He then shot and killed the associate’s girlfriend, who was a witness to the murder, to prevent her from talking to law enforcement. Hardison enlisted other Gangster Disciples members to dispose of the murder weapon. Following these murders, Hardison increased his status in the Gangster Disciples by being appointed to various positions of authority, including as their regional chief enforcer and a member of their notorious hitman group called the “Blackout Squad.”
Hardison and his co-conspirators planned and carried out shootings and assaults targeting members of the rival Bloods gang. For example, on September 26, 2012, Hardison participated in a shooting of an occupied residence belonging to a member of the Bloods gang in Clarksville. Additionally, on November 3, 2012, Hardison and others assaulted, and co-conspirator Burks shot and killed, a member of the Bloods gang inside a nightclub in Clarksville.
In addition to Hardison’s crimes, evidence was presented that other Gangster Disciples members engaged in drug trafficking, intimidated witnesses to prevent them from cooperating with law enforcement, protected the gang’s drug territory, financed the enterprise, and violently enforced gang rules.
Hardison faces a maximum sentence of life in prison for the offenses of racketeering conspiracy, causing death through the use of a firearm, and killing to prevent a witness communication to a law enforcement official regarding a federal offense. He faces a mandatory minimum of life in prison for murder in aid of racketeering, and an additional 20 years’ incarceration for the assault causing serious bodily injury in aid of racketeering offense.
Sentencing for Hardison will be scheduled at a later date.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Tennessee Bureau of Investigation; the Metropolitan Nashville Police Department; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; the 19th Judicial District Drug Task Force; and the Hopkinsville, Kentucky Police Department participated in this decade-long investigation.
Assistant U.S. Attorney Ben Schrader of the Middle District of Tennessee and Trial Attorney Gerald A. A. Collins of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
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Former Teacher Sentenced to 10 Years for Child Pornography OffenseRead the Press Release
Paducah, KY – A former Lyon County Middle School teacher was sentenced yesterday to 10 years in prison, followed by 10 years of supervised release, for attempting to possess child pornography, announced Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
According to court documents, Michael Derek McCuiston, 36, of Murray, Kentucky, surreptitiously recorded bathroom video of two children, both of whom had not attained the age of 18. In April 2019, after receiving information about this crime, officers served a search warrant at McCuiston’s home. McCuiston was arrested and later admitted that he placed a hidden camera in an attempt to capture child pornography.
“Parents deserve to know that teachers will act in the best interest of their children and provide them with a safe and secure learning environment,” stated Acting U.S. Attorney Bennett. “The defendant forfeited forever the special trust and confidence placed in him as an educator and will now spend the next ten years in a federal prison. I commend the FBI’s Louisville Field Office, Kentucky State Police, and the prosecutors assigned to the case for their work in identifying and removing this threat from our community.”
“The secret recording of children in a bathroom, in an attempt to capture child pornography, is a horrendous crime - made worse because of the defendant’s position of trust as a teacher and a coach,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “Today’s sentence does not erase the defendant’s deplorable actions, but it is a stern punishment that will help to protect some of society’s most vulnerable victims and show our commitment to holding sexual predators accountable.”
The Federal Bureau of Investigation and Kentucky State Police investigated the case.
Assistant U.S. Attorneys Madison Sewell and Raymond McGee 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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Former Police Chief Sentenced to Ten Additional Years for Possessing Child Pornography Before Reporting to Federal Prison for Prior OffenseRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on November 2, 2021, Alexander P. Bebris (age: 52) of Denmark, Wisconsin, was sentenced to an additional ten years in federal prison for possessing child pornography.
According to court records, Bebris was convicted less than one year ago in the same federal court on a charge of distributing child pornography. He received a sentence of five years’ imprisonment in that case, but he was allowed to remain free pending the resolution of his appeal. On August 8, 2021, an appellate court upheld Bebris’ conviction, and he was ordered to report to federal prison. Three days before Bebris was to report to prison, law enforcement executed a search warrant at Bebris’ residence and recovered a substantial amount of recently-downloaded child pornography, including depictions of children as young as three years of age.
Bebris subsequently was indicted for possession of child pornography and entered a guilty plea. According to court records, prior to his arrest in his first case, Bebris spent his career in law enforcement, most recently as Public Safety Chief in Oakwood, Ohio.
At sentencing for his second offense, Senior United States District Judge William C. Griesbach called Bebris’ actions “outrageous and highly offensive.” Judge Griesbach further stated that Bebris’ willingness to commit almost the exact same crime while on release indicated a “strong need for deterrence and punishment.” Judge Griesbach ordered that the 10-year sentence run consecutively to the previously imposed, 5-year sentence. Following his release from prison, Bebris will spend 10 years on supervised release. He also will be required to register as a sexual offender.
This case was investigated by the Calumet County Sheriff’s Office with the assistance of the Brown County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
Former Office Manager Sentenced for Swindling Broken Arrow Business of $2.7 MillionRead the Press Release
A former office manager who embezzled more the $2.7 million from her former employer, all after facing unrelated charges in Tulsa County for similar crimes, was sentenced in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Melissa Raye Dihel, 50, of Okmulgee, to 46 months in federal prison followed by three years of supervised release. She was further ordered to pay $2,722,332.63 in restitution to her former employer and $775,971 in restitution to the IRS.
Dihel began stealing from her employer less than two years after pleading guilty to embezzling from another business, for which she received a deferred sentence on Dec. 16, 2009, in Tulsa County District Court.
“Melissa Dihel violated the trust of small business owners and robbed them for years,” said Acting U.S. Attorney Clint Johnson. “Dihel’s string of lies, criminal acts, and excuses have finally caught up with her, resulting in almost four years of prison. The U.S. Attorney’s Office and our law enforcement partners will hold white collar criminals responsible for the financial harm they cause to local businesses.”
“Ms. Dihel’s shameless actions to embezzle money, for a second time, from her employer shows her lack of remorse for her crimes and complete disregard for her employer and taxpayers in general. This sentencing shows that the cooperation between our law enforcement partners continues to catch these criminals and hold them accountable for their actions,” said Special Agent in Charge Christopher J. Altemus Jr., Dallas Field Office.
Dihel pleaded guilty to mail fraud and tax evasion on July 21, 2021, after she brazenly embezzled more than $2.7 million from her employer from 2011 until May 2019. Dihel took advantage of her trusted position as an office manager at the business and forged the president’s signature on approximately 334 checks for her own benefit and to the detriment of the company. She made some checks payable to herself, some to her boyfriend and a family member, and some to personal credit card companies to pay her monthly credit card bills. Her boyfriend and family member were unaware of her scheme. Dihel further manipulated accounting entries in her employer’s books and records to cover her tracks. Dihel stated in her plea agreement that she spent most of the money on gambling.
Additionally, Dihel did not report the illegal income to the IRS. Specifically, she stated that she did not report $820,148 in illegal income for tax year 2018 and that she failed to pay taxes in the amount of $279,273 for that year.
Dihel will self-surrender to a U.S. Bureau of Prisons facility on Dec. 15, 2021.
IRS-Criminal Investigation and the Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys David D. Whipple and Kevin C. Leitch prosecuted the case.
Former Newark Police Officer Sentenced to 46 Months in Prison for Bribery and Assisting in Preparing False Federal Tax ReturnRead the Press Release
NEWARK, N.J. – A former Newark police officer was sentenced today to 46 months in prison for soliciting and accepting cash payments from a brothel owner in Newark in exchange for protecting brothels from police action, and for failing to report those cash payments on his personal federal income tax returns, Acting U.S. Attorney Rachael A. Honig announced.
Julio I. Rivera, 52, of Old Bridge, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to two counts of an indictment charging him with bribery (Count Six) and aiding and assisting in the preparation of a false 2015 personal federal tax return (Count 13). Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2014 to August 2015, Rivera solicited and accepted cash payments from a Newark brothel owner (“Individual 1”) who ran brothels located on Lafayette Street and Emmet Street. In exchange for these cash bribes, Rivera performed official acts and violated his lawful duties for the benefit of Individual 1, including declining to arrest individuals who were committing and promoting prostitution, agreeing to protect these individuals from arrest by other Newark police officers, and agreeing to take adverse action against a competing brothel. Rivera collected between $40,000 and $95,000 in bribes in exchange for protecting those and other brothels in Newark.
Rivera also intentionally withheld information from his tax preparer regarding the cash bribes that he received, which caused Rivera’s filed federal tax returns for certain tax years, including 2015, to understate the total amount of income that Rivera received. Rivera stipulated that this misconduct resulted in a loss to the IRS of $15,000 to $40,000.
In addition to the prison term, Judge Arleo sentenced Rivera to three years of supervised release, 1,000 hours of community service and ordered restitution of $17,408 and forfeiture of $79,941.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Cari Fais of U.S. Attorney’s Office in Newark.
Former Maui Police Officer Receives 30 Months in Prison for Soliciting Sexual Relationship for Official ActsRead the Press Release
HONOLULU – United States District Judge Leslie E. Kobayashi today sentenced Brandon Charles Saffeels, 36, a resident of Maui and former Maui Police Department (MPD) officer, to 30 months in prison for public corruption in the form of honest services wire fraud. The indictment to which Saffeels pled guilty in May 2021 alleges that he engaged in a bribery scheme wherein he solicited a sexual relationship with a female motorist in exchange for an official act as an MPD officer.
According to court documents and information provided in court, in July 2019, then-MPD Officer Saffeels arrested a woman ("Individual A") for operating a motor vehicle while under the influence of an intoxicant, and, after she was released from custody, Saffeels began communicating with Individual A over the phone and through text messages. Among other things, Saffeels told Individual A that he would help her to beat the state case being brought against her by the Prosecuting Attorney for the County of Maui. Saffeels explained that he would provide perjured testimony at her trial so that the court would throw it out or the jury would find in her favor. However, Saffeels told Individual A that she would have to meet in person for him to help her. At one point during the course of their communications, he invited her to come to his house and told her to bring clothes.
Acting U.S. Attorney for the District of Hawaii Judith A. Philips said: "Brandon Saffeels betrayed our expectation that law enforcement officers will not take advantage of their authority for personal benefit. This prosecution demonstrates our determination to hold public officials accountable for criminal abuse of their positions."
FBI Special Agent in Charge Steven Merrill said: "The cornerstone of the public’s trust in law enforcement relies on the expectation that each person who takes the oath to protect and serve the public will do so with integrity. Today, former Officer Saffeels was sentenced for violating that trust. I’m proud of our team who worked collaboratively after becoming aware of concerns regarding the former officer’s conduct. They exemplify our commitment to ensure all public servants are worthy of the public’s trust and confidence."
The FBI conducted the investigation resulting in this conviction. Assistant U.S. Attorney Mohammad Khatib is handling the prosecution.
Former Mail Carrier Pleads Guilty to Stealing MailRead the Press Release
Jacksonville, FL – James Sweat (60, Jacksonville) has pleaded guilty to stealing an item from the mail while employed by the United States Postal Service (USPS). Sweat faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the
court documents , Sweat worked as a Rural Carrier Associate in the Baldwin Station in Jacksonville. The Station Manager suspected that Sweat might be stealing cash and gift cards from the mail and notified the USPS - Office of Inspector General to investigate. On June 4, 2021, agents caught Sweat stealing $60 from a greeting card. Sweat admitted that he had been stealing cash from the mail for about a month and estimated that he had opened approximately 100 items of mail and stolen approximately $1,000.This case was investigated by the United States Postal Service - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Frank Talbot.
Former Local Union Vice President Pleads Guilty to Operating Overtime Kickback Scheme in the Allentown Post OfficeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Joseph Whitbeck, 56, of Tamaqua, PA, pleaded guilty to multiple fraud charges before United States District Court Judge Edward G. Smith stemming from his operation of a scheme to defraud fellow union members out of rightfully earned overtime compensation.
In April 2021, the defendant was charged by Indictment with wire fraud and honest services wire fraud. According to the Indictment, while serving as the Vice President for the Local 274 branch of the National Association of Letter Carriers in the Lehigh Valley area, Whitbeck operated a kickback scheme involving certain letter carriers at the Allentown Post Office. As the Vice President, the defendant filed numerous grievances on behalf of groups of letter carriers, claiming that U.S. Postal Service managers violated overtime rules. The Indictment charges that Whitbeck then settled these class-action grievances for total lump sums, without designating the specific individuals to whom overtime grievance payments were owed, so that he could select the payees at a later time. Meanwhile, Whitbeck offered to secure extra overtime grievance payouts for some letter carriers who agreed to kick back a portion directly to him, generally in cash. This kickback scheme prevented non-participating letter carriers from receiving overtime grievance funds to which they were entitled. The Indictment also alleges that the defendant often made false and misleading statements to convince letter carriers to participate in his scheme; for example, the defendant frequently told letter carriers that he would use the kick-backed funds to assist other letter carriers who were out of work.
The defendant’s covert kickback scheme lasted more than a decade and was uncovered only when a concerned letter carrier raised the issue at a union Executive Board meeting in March 2018.
“Union representatives are supposed to act in the best interest of their members, not swindle them out of rightfully earned pay or urge them to participate in fraud,” said Acting U.S. Attorney Williams. “As Vice President of the local branch of Letter Carriers, this defendant had a duty to advocate on behalf of all members in the Allentown Post Office in connection with the equitable distribution of overtime grievance settlements. Whitbeck abused his position and for that he will now face the consequences in federal court.”
“Corruption of postal employees is a significant vulnerability and a serious breach of public trust,” said Imari L. Niles, USPS OIG Special Agent in Charge, Mid-Atlantic Area Field Office. "With the coordinated efforts of the USPS OIG and our law enforcement partners, special agents will continue their vigilant watch against anyone receiving kickbacks involving US Postal Service employees.”
“Joseph Whitbeck, former Vice President of the National Association of Letter Carriers Branch 274, engaged in a kickback scheme involving the solicitation of cash payments from letter carriers for whom he assisted in obtaining sizeable monetary grievance settlements against the United States Postal Service. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor- Management and Standards to investigate those who exploit fellow union members and their benefits,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the U.S. Postal Service – Office of Inspector General, the U.S. Department of Labor – Office of Inspector General, and the U.S. Department of Labor – Office of Labor-Management Standards, and is being prosecuted by Assistant United States Attorney Patrick J. Murray
Former Employee of Veterans Affairs Medical Center Admits Stealing HIV MedicationRead the Press Release
NEWARK, N.J. – A former pharmacy procurement technician today admitted stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Lisa M. Hoffman, 49, of Orange, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property.
According to documents filed in this case and statements made in court:
From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 34, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. Hoffman and Checonolasco stole approximately $10 million worth of HIV medications belonging to the VAMC during the scheme.
The theft of government property charge is punishable by a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 9, 2022.
Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and is scheduled to be sentenced on Dec. 15, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.
Federal Penitentiary Prisoner Sentenced for Killing Fellow InmateRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Jesus Sanchez, 37, a U.S. Bureau of Prisons inmate, was sentenced today by United States District Judge Dee D. Drell to 360 months in prison, followed by 5 years of supervised release, for second degree murder.
According to evidence presented to the court, on or about June 18, 2014, an inmate arrived at the United States Penitentiary (USP) Pollock. At approximately 7:23 p.m. on that day, cellmates Jesus Sanchez and his co-defendant, David Cortez, aided and abetted by each other, stabbed the newly arrived inmate with a knife on the recreation yard at USP Pollock.
The inmate victim had 19 stab wounds in his upper and lower back, chest, shoulders, arms, neck, and head, and later died at the hospital from injuries sustained from the stabbing. Sanchez and Cortez admitted to killing the inmate victim with malice aforethought.
Cortez previously pleaded guilty to second degree murder in connection with this incident and was sentenced to 350 months to run consecutive to the federal sentence he was already serving.
The FBI investigated the case and Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
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El Paso Man Indicted on Drug and Firearm ChargesRead the Press Release
EL PASO – Today a federal grand jury in El Paso returned an indictment charging an El Paso man with trafficking in drugs and illegal possession of firearms.
According to court documents, Daniel Lee Burmeister, 36, was arrested on October 6, 2021, after a search warrant was executed at a residence where Burmeister was staying. During the search, law enforcement officers found multiple firearms and fentanyl pills.
Burmeister is charged with one count of possession with intent to distribute fentanyl; one count of possession of an unregistered firearm; one count of possession of a firearm not identified by a serial number; one count of possession of a firearm by a convicted felon; and one count of possession of a firearm in furtherance of a drug trafficking crime. The defendant is scheduled for an arraignment next week. If convicted, Burmeister faces a mandatory minimum of five years in prison and up to a maximum penalty of 40 years in prison on the drug charge; a maximum penalty of 10 years in prison on each of the charges of unregistered firearm, firearm unidentified by serial number, and felon in possession of a firearm; and a mandatory minimum of five years in prison on possession of a firearm in furtherance of a drug trafficking crime. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey R. Downey; and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek II, Dallas Division, made the announcement.
The FBI and ATF are investigating the case. Assistant U.S. Attorney Mallory Rasmussen 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.
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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Doctor Who Distributed Unapproved Cancer Treatment Drug Convicted of More Than Two Dozen Felony ChargesRead the Press Release
SANTA ANA, California – A physician has been found guilty of 26 felony charges for fraudulently distributing an unapproved cancer treatment over a six-year period, charging up to $2,000 per bottle, the Justice Department announced today.
Benedict Liao, 81, a.k.a. “Wada Masao,” and “Masao A. Wada,” of Fullerton, was found guilty on Tuesday afternoon of seven counts of wire fraud, 11 counts of selling a misbranded drug and eight counts of selling an unapproved new drug.
According to evidence presented at his five-day trial, Liao operated the Oeyama-Moto Cancer Research Foundation, which had offices in Monterey Park and, later, in West Covina.
Using the alias "Masao A. Wada, M.D." Liao submitted to the United States Food and Drug Administration in 2011 and 2012 an Investigational New Drug (IND) application in which he stated that he planned to engage in clinical trials of a product called Allesgen, which he told FDA and stated in promotional material was intended to treat and cure many types of cancer. FDA received these applications and both times informed Liao that the IND applications for Allesgen had been placed on a full clinical hold due to deficiencies in the submissions.
The FDA required that a drug distributed under an IND application bear a label stating that it was a “New Drug – Limited by Federal…law to investigational use."
Liao told FDA that he would place a label on Allesgen with such a statement. Instead of doing so, Liao manufactured Allesgen in Fullerton and distributed the unapproved drug with a label calling Allesgen a “supplement,” not a drug, and this label stated that it “had not been evaluated by the FDA” and was not intended to treat any disease.
From July 2012 through June 2014, Liao sold and distributed Allesgen at a price generally set at $2,000 per bottle, plus shipping, to customers in various states and in foreign countries, because of which he received at least approximately $850,000 in revenue. From approximately July 2014 through January 2018, Liao continued to sell and distribute additional bottles of Allesgen to customers in various states and in foreign countries, as a result of which he received additional revenue totaling approximately $765,000.
The jury found that Liao schemed to defraud buyers of Allesgen by failing to inform them it was not an approved cancer treatment, that FDA had placed it on hold, barring any distribution of it, that he was not allowed to charge anything for it, and that it could have side effects that were unpredictable and could be serious. Several Allesgen buyers testified during the trial, described sending tens of thousands of dollars to Liao, explained that the information Liao did not disclose would have been important to know, and one said that he would not have purchased it had he been told that it was unapproved.
United States District Judge James V. Selna has scheduled a February 14, 2022 sentencing hearing, at which time Liao will face a statutory maximum sentence of 20 years in federal prison for each wire fraud count and three years’ imprisonment for each of the 19 additional counts.
The FDA investigated this matter.
Assistant United States Attorney Lawrence E. Kole of the Santa Ana Branch Office is prosecuting this case.
Denton Tax Preparer Sentenced to Federal Prison for Submitting Fraudulent ReturnsRead the Press Release
SHERMAN, Texas - A Denton County tax preparer has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Tendai Gurure, 46, pleaded guilty on May 28, 2021 to aiding and assisting in preparation of false and fraudulent tax returns and was sentenced to 24 months in federal prison today by U.S. District Judge Jeremy Kernodle. Gurure was additionally ordered to pay restitution in the amount of $2,928,740.10.
According to information presented in court, Gurure owned and operated TaxLinks, a tax return preparation business. An investigation revealed that Gurure was filing returns that included false Schedule C information, fictitious business losses, and false claims for Earned Income Credits. A search warrant was executed on Gurure’s business and a subsequent review of seized documents determined that Gurure was responsible for losses to the government totaling $2,928,740.10 for tax years 2015, 2016, and 2017.
“The American public places a tremendous amount of trust in the hands of tax preparers, and the IRS, in turn, trusts these preparers to abide by all laws and file accurate returns,” said Acting U.S. Attorney Nicholas Ganjei. “Fraudulent tax returns are ultimately a theft against the public fisc and a breach of the public trust, and EDTX will do its utmost to protect the integrity of both.”
This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Kevin McClendon.
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Dayton psychiatric hospital and owner agree to pay $425,000 to resolve claims for unnecessary diagnostic testingRead the Press Release
DAYTON, Ohio – Access Hospital Dayton, LLC and its owner, Dr. John Johnson, have agreed to pay the United States $374,780 to resolve False Claims Act allegations that they knowingly caused the submission of false claims to Medicare and Medicaid for diagnostic testing. Access Dayton and Johnson have also agreed to pay the State of Ohio approximately $50,219 to resolve State of Ohio Medicaid claims.
The government alleged that, between January 2014 and December 2019, Access Dayton and Johnson knowingly caused the submission of false claims to Medicare and Ohio Medicaid for diagnostic laboratory testing (prolactin and ammonia) that was (1) performed during patients’ inpatient stays at Access Dayton, (2) not used in the management of the patients’ condition, and (3) not medically necessary.
Prolactin testing measures the level of prolactin in a person’s blood, which providers use to diagnose pituitary tumors or to determine causes for conditions unrelated to psychosis or substance abuse. Providers use ammonia testing to diagnose liver dysfunctions or hyperammonemia.
Medicare pays for diagnostic testing ordered by the physician who uses the results in the management of the beneficiary’s specific medical problem. Medicare and Ohio Medicaid generally prohibit separate payment for diagnostic testing performed during an inpatient admission.
“It is crucial that every public dollar available go to treat the drug-addicted and mentally ill,” Ohio Attorney General Dave Yost said. “I am proud of the work by my Health Care Fraud Section and our federal partners to claw back the money to help us continue this fight.”
False Claims Act tips and complaints about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The resolutions obtained in this matter were the result of a coordinated effort between the Department of Justice Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Ohio, the Department of Health and Human Services Office of Inspector General and Ohio Attorney General Dave Yost’s Medicaid Fraud Control Unit. Trial Attorney Christopher Wilson of the Department of Justice’s Civil Division and Andrew Malek, Deputy Civil Chief of the U.S. Attorney’s Office, are representing the United States in this matter.
The claims asserted against these defendants are allegations only, and there has been no determination of liability.
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Dark Web Narcotics Trafficker Sentenced to 96 Months in Prison for Distributing Fentanyl, Heroin, Methamphetamine, Cocaine, Oxycodone and MethadoneRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Joanna De Alba was sentenced by United States District Judge Dora L. Irizarry to 96 months in prison for distributing, and possessing with intent to distribute, illegal drugs over the “dark web.” De Alba distributed an array of illegal drugs—including fentanyl, heroin, MDMA, cocaine, methamphetamine, oxycodone and methadone—over the dark web in exchange for Bitcoin and other cryptocurrency. De Alba pleaded guilty in April 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“The prison sentence imposed on De Alba today demonstrates that her clandestine use of the dark web to distribute a potentially lethal array of powerful drugs like fentanyl, heroin and oxycodone in exchange for cryptocurrency was a failure,” stated United States Attorney Peace. “This investigation and vigorous prosecution show that we will not allow the dark web to be a haven for drug traffickers.”
“This sentencing demonstrates that drug traffickers are not untouchable by dealing in the dark web,” stated DEA Special Agent-in-Charge Donovan. “Attempting to hide through anonymity, De Alba became a parent’s worst nightmare by pushing fentanyl, heroin and other dangerous drugs into homes across our many communities. I applaud the Cyber Investigative Unit- New York Division and the U.S. Attorney's Office Eastern District of New York for their commendable work throughout this investigation.”
The internet contains online marketplaces for narcotics and other contraband on the “dark web,” a part of the internet located beyond the reach of traditional internet browsers and accessible only through networks designed to conceal user identities. The “Wall Street Market” was a global dark web marketplace that required its users to trade in digital currencies, primarily Bitcoin.
Between June 2018 and May 2019, De Alba advertised and sold illegal narcotics on the Wall Street Market. These narcotics included opioids—including fentanyl (concealed as oxycodone pills) and heroin—as well as other potent illegal drugs including oxycodone, cocaine, methamphetamine, ecstasy and other substances containing MDMA. De Alba took various measures to operate anonymously and conceal her identity, including using the online alias “RaptureReloaded,” using fake company names and shipping addresses, using the name of her deceased husband to receive packages from her suppliers and using credit cards in her deceased husband’s name to fund the tracking of her shipments. De Alba also directed customers to contact her through encrypted email and messaging services and pay her with cryptocurrency. De Alba offered free shipping to addresses in the United States and free tracking of all orders.
De Alba participated in over 600 transactions on the Wall Street Market in which she sold more than: 840 grams of heroin; 190 grams of methamphetamine; 1,250 pills of MDMA; and 280 pills of oxycodone. De Alba also sold more than 750 fake oxycodone pills—pills that actually contained fentanyl, but were concealed and disguised as oxycodone. De Alba received payment in the cryptocurrencies Bitcoin and Monero, and pocketed approximately 16.32 BTC and 400 XMR, which together are worth more than $1 million today.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Saritha Komatireddy and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
JOANNA DE ALBA (also known as “RaptureReloaded”)
Age: 40
Tijuana, MexicoE.D.N.Y. Docket No. 19-CR-563 (DLI)
Couple with Ties to the Fitness Industry Admits Distributing Unapproved DrugsRead the Press Release
PITTSBURGH, PA - Two residents of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of conspiring to defraud the United States, Acting United States Attorney Stephen R. Kaufman announced today.
Thomas Mouton, age 34, and Sara Mouton, age 36, pleaded guilty before United States District Judge Ranjan to conspiracy to defraud the United States and an agency thereof, specifically the Food and Drug Administration (FDA).
In connection with the guilty plea, the court was advised that from a date uncertain in 2018 and continuing thereafter until around May 2019, Thomas Mouton along with his wife, Sara Mouton, who was active in the fitness and body-building industry, conspired with each other, and with other persons known and unknown to the United States Attorney, to distribute steroids to consumers in the United States, through the internet and through personal acquaintance, including drugs or performance enhancers that counteract the side effects of steroid abuse. None of the drugs the defendants distributed were approved by the FDA, and the defendants were not permitted to distribute the drugs without the approval of the FDA. Substances distributed by the defendants were misbranded and included misleading labeling that did not include accurate drug/active ingredient names, labeling that did not contain adequate directions for use, and labeling that did not contain the name and place of business of the manufacturer, packer, or distributor. The court was advised that the defendants acted with the intent to defraud the FDA, by impeding, impairing, obstructing, and defeating the ability of the FDA to regulate the manufacturing, labeling, and distribution of drugs in the United States.
“Thomas and Sara Mouton began by distributing steroids to their associates in the fitness and body building industry, but their business ultimately expanded through word of mouth to serving a couple hundred clients,” said Acting U.S. Attorney Kaufman. “Individuals who defraud the FDA will be held accountable for their crimes.”
“The requirements that prescription drugs are labeled appropriately and approved by FDA before they are marketed help ensure the health and safety of consumers,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. "The FDA will continue to aggressively pursue those who place the public health at risk.”
Judge Ranjan scheduled sentencing for March 3, 2022. The law provides for a total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, along with the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation that led to the prosecution of Thomas and Sara Mouton.
Convicted Felon Sentenced for Possession of Loaded Sawed-Off ShotgunRead the Press Release
LAS VEGAS, Nev. – A convicted felon was sentenced today to three years and six months in prison for unlawfully possessing a sawed-off shotgun, which was recovered during a traffic stop in Searchlight, Nevada.
According to court documents, on October 28, 2020, a Las Vegas Metropolitan Police Department officer stopped a vehicle for traveling more than 50 miles per hour on a 25 mile per hour section of U.S. Route 95 through Searchlight. Ronald Allen Class, Jr. (31, of Las Vegas) was a backseat passenger in the vehicle.
While speaking with the driver and passengers, the officer noticed a sawed-off shotgun on the floor at Class’ feet. The officer secured the firearm — a Remington 12 gauge semi-automatic shotgun that had a cut-down barrel and was loaded with a chambered round — and took Class into custody. Class is prohibited from possessing firearms due to prior felony convictions. During the traffic stop, records checks revealed that: (a) the car had been stolen; and (b) three of the four people in the car, including Class, had outstanding arrest warrants.
Class pleaded guilty in March 2021 to one count of felon in possession of a firearm. In addition to the prison term, U.S. District Judge Gloria M. Navarro sentenced Class to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Convicted Armed Career Criminal Sentenced to 20 Years in PrisonRead the Press Release
MACON, Ga. – A Macon resident with a lengthy criminal history, who was convicted by a federal jury this summer of multiple gun and drug distribution charges, was sentenced to prison for his crimes.
Kelvin Henry, 56, was sentenced to serve 240 months in prison to be followed by five years of supervised release by U.S. District Judge Tilman (Tripp) Self on Nov. 2. Henry was tried and convicted by a federal jury on Aug. 10 of one count of possession with intent to distribute methamphetamine, one count possession with intent to distribute heroin, one count possession with intent to distribute Tramadol, one count possession of a firearm by a convicted felon and one count possession of a firearm in furtherance of a drug-trafficking crime. There is no parole in the federal system.
“Kelvin Henry is an armed career criminal who made the choice to perpetuate violence in our community each time he picked up a gun and trafficked narcotics. He is now being held accountable for his continued criminal activities,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “Reducing crime and violence in Macon and across the Middle District of Georgia is an on-going, community-wide effort of highest importance. This office will do our part by bringing repeat offenders to justice.”
“This menacing poly-drug trafficker, who happens to be a career criminal, was nabbed because of the great working relationship that DEA has with its federal, state and local counterparts and the United States Attorney’s Office,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Mr. Henry will now spend well-deserved time in prison for the crimes he committed and his apprehension makes our communities a safer place today.”
“We are grateful that a career of criminal behavior spanning over thirty years has culminated in this significant prison sentence. This sends a message that engaging in long-term malicious criminal activity has its consequences. Thanks to the investigators and prosecutors who worked tirelessly as a team to remove Kelvin Henry and his dangerous ways from our community for a long time to come,” said Bibb County Sheriff David Davis.
According to court documents and evidence presented at trial, a confidential source (CS) informed agents in Jan. 2019 that Henry was selling crystal methamphetamine, heroin and other illegal drugs for the past eight years from his Macon residence. Following an investigation, a search warrant was issued, and law enforcement searched Henry’s property on March 7, 2019, recovering a semi-automatic pistol, bundles of cash, and more than a kilogram of drugs, including methamphetamine, heroin and Tramadol. Henry is considered an armed career criminal due to his lengthy criminal record, which includes seven felony convictions, among them convictions for possession with intent to distribute methamphetamine and possession with intent to distribute cocaine in Peach County.
The case was investigated by the Bibb County Sheriff’s Office and DEA.
Assistant U.S. Attorneys William Keyes and Paul McCommon prosecuted the case.
Chicago Woman Arrested on Federal Charges for Allegedly Conspiring to Murder Her Mother in IndonesiaRead the Press Release
CHICAGO — A Chicago woman was arrested today on federal charges for allegedly conspiring with her boyfriend to murder her mother at an Indonesian resort in 2014.
An indictment returned in 2017 and unsealed today in U.S. District Court in Chicago charges HEATHER L. MACK, 26, and TOMMY E. SCHAEFER, 28, of Chicago, with conspiracy to commit murder and obstruction of justice. The indictment accuses Mack and Schaefer of conspiring in Chicago and Indonesia to carry out the murder of Mack’s mother, Sheila A. Von Wiese, a U.S. citizen from Illinois. The charges allege that Mack and Schaefer killed Von Wiese in a hotel room at the St. Regis Bali resort on Aug. 12, 2014, and then placed the body in a suitcase and loaded it into the trunk of a taxicab.
An Indonesian court in 2015 convicted and imprisoned Mack and Schaefer on local charges related to Von Wiese’s murder. Mack was released last week from an Indonesian prison. She was arrested today by U.S. authorities upon her return to the United States. Her arraignment in federal court in Chicago has not yet been scheduled. Schaefer remains imprisoned in Indonesia.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kenneth A. Polite, Acting Assistant Attorney General of the Justice Department’s Criminal Division; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Indonesian law enforcement and immigration authorities provided valuable assistance. The government is represented by Assistant U.S. Attorney Terry M. Kinney of the Northern District of Illinois, and Frank Rangoussis, Trial Attorney of the U.S. Department of Justice’s Human Rights and Special Prosecutions Section.
The U.S. investigation previously resulted in charges against Schaefer’s cousin, ROBERT RYAN JUSTIN BIBBS, also known as “Ryan Bibbs,” of Chicago. Bibbs pleaded guilty in 2016 to a murder conspiracy charge, stating in a plea agreement that he was aware of the couple’s plot to carry out Von Wiese’s murder and that he counseled Schaefer on how to get away with it. Bibbs was sentenced in 2017 to nine years in federal prison.
Broome County Man Sentenced to 11 Years for Attempted Enticement and Coercion of a MinorRead the Press Release
SYRACUSE, NEW YORK – Richard C. O’Hara, 32, of Broome County was sentenced today to serve 11 years’ imprisonment for attempting to arrange a sexual encounter with a minor. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his previously entered guilty plea, O’Hara admitted that in July and August 2020 he exchanged multiple sexually explicit messages online with an undercover officer posing a 10-year-old girl, in an attempt to entice the child into having sex with him. O’Hara also admitted that on August 5, 2020 he traveled to a house where he believed the child lived, intending to engage in sex acts with her that day.
Senior United States District Judge Thomas J. McAvoy also sentenced O’Hara to a 15-year term of supervised release to begin after he serves his term of imprisonment. O’Hara also will be required to register as a sex offender upon his release from prison.
This case was investigated by Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Billings man accused of attempted coercion, enticement for sex with minorRead the Press Release
BILLINGS—A Billings man accused of trying to arrange a meeting to have sex with a mother and her minor child and arrested during a multi-agency law enforcement operation into the solicitation of sex with minors had an initial appearance on Nov. 2 on a criminal complaint, Acting U.S. Attorney Leif M. Johnson said today.
The criminal complaint accuses Martin Leo Jimenez, 27, of attempted coercion and enticement. If convicted of the most serious crime, Jimenez faces a mandatory minimum 10 years to life in prison, a $250,000 fine and at least five years to life of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Judge Cavan ordered Jimenez detained pending further proceedings.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The criminal complaint and court documents allege that between Oct. 27 and Oct. 28 in Billings, Jimenez communicated through social media forums with an undercover law enforcement officer who was posing as the mother of an 11-year-old girl. The government alleges that Jimenez expressed a sexual interest in incest and children, asked if the undercover officer wanted to meet and sent the undercover officer a nude picture of himself. Law enforcement set up surveillance near Jimenez’s residence, and the undercover officer directed Jimenez to a vehicle parked on the street. Officers arrested Jimenez when he approached the vehicle.
Jimenez was arrested during a multi-jurisdictional law enforcement operation from Oct. 27 to 28 in the Billings area. The operation targeted subjects soliciting minors online with intent to engage in sexual activity or attempting to meet adults trafficking minors for sex. The Billings Police Department, Yellowstone County Sheriff’s Office, Homeland Security Investigations and FBI conducted the operation.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case.
PACER case reference. 21-68.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Bergen County Man Arrested for Interfering with Reproductive Health ServicesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today for allegedly using force and physical obstruction to intimidate and interfere with providers of reproductive health services in Englewood, New Jersey, on two separate occasions, Acting U.S. Attorney Rachael A. Honig announced.
Daniel Courney, 37, of Bergenfield, New Jersey, is charged by complaint with two counts of violating the Freedom of Access to Clinic Entrances Act, which protects individuals seeking and providing reproductive health services. Courney appeared by videoconference today before U.S. Magistrate Judge Edward S. Kiel and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Oct. 16, 2021, Courney approached a patient and her companion arriving by car to seek reproductive health services at a clinic in Englewood. As a volunteer was providing directions, Courney approached the vehicle, told the patient to “save your child,” and shoved the volunteer away from the car to prevent the volunteer from providing directions to the clinic.
On Oct. 30, 2021, Courney approached the same volunteer as the volunteer escorted a patient inside the clinic. As the volunteer and patient approached the clinic’s front door, Courney moved his body between the volunteer and the patient and shoved the volunteer toward the street.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the arrest.
The government is represented by Senior Civil Rights Counsel Joseph Gribko of the Criminal Division in Newark and Assistant U.S. Attorney Susan Millenky of the Civil Rights Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Barbour County man indicted on child pornography chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jon Travis Yost, of Philippi, West Virginia, was indicted on child pornography charges, United States Attorney William J. Ihlenfeld, II announced.
Yost, 27, was indicted on one count of “Transportation of Child Pornography – Previous conviction,” one count of “Possession of Child Pornography – Previous Conviction,” one count of “Production of Child Pornography – Previous conviction,” and one count of “Attempted Production of Child Pornography – Previous conviction.” Yost, who was previously convicted of 3rd Degree Sexual Assault in Barbour County, is accused of producing, having, and sending child pornography from September 2019 to May 2020 in Barbour County.
Yost faces at least 15 and up to 40 years of incarceration and a fine of up to $250,000 for the transportation charge, faces up to 10 years of incarceration and a fine of up to $250,000 for the possession charge, and faces at least 25 years and up to 50 years of incarceration and a fine of up to $250,000 for each of the production and attempted production charges. 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 David J. Perri is prosecuting the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Bahamian National Sentenced to Two Years’ Imprisonment for Illegal ReentryRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Jethro Jerome Arthur (47, Bahamas) to two years in federal prison for illegal reentry into the United States after deportation.
Arthur had pleaded guilty on August 25, 2021.
According to court documents, on April 14, 2021, Arthur was arrested in Brevard County on state felony criminal charges (possession of a firearm by a convicted felon; trafficking in heroin, cocaine, and MDMA; and possession with intent to sell various controlled substances) and found to be present in the United States without legal authorization. In 1998, Arthur was convicted of possessing cocaine with the intent to distribute it. Arthur had previously been convicted on two occasions for illegal reentry to the United States after deportation, in 2005 and 2015, and had been deported from the United States to the Bahamas on three occasions.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Jennifer M. Harrington.
Atlantic City Woman Found Guilty of Drug Distribution OffensesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, woman was convicted today of multiple drug distribution offenses, Acting U.S. Attorney Rachael A. Honig announced.
Rajeri Curry, 32, was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute heroin, following a nine-day trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury did not reach a unanimous verdict on the charge of distribution of heroin and fentanyl that resulted in a death.
According to documents filed in this case and the evidence at trial:
On Jan. 17, 2018, law enforcement officers executed a search at Curry’s residence, where they recovered heroin stamped with the words “DOA” and “BODY COUNT,” which Curry intended to distribute to her customers in Atlantic City. Between March 2018 and June of 2018, Curry conspired with drug suppliers in Newark, New Jersey, to distribute and possess with intent to distribute heroin and fentanyl.
The charges of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and possession with intent to distribute heroin carry a maximum potential penalty of 20 years in prison and a maximum fine of $1 million dollars.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers from the Atlantic City Police Department, under the direction of Deputy Chief James A. Sarkos; and the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Lauren E. Repole of the U.S. Attorney’s Office Criminal Division in Newark.
Arkansas Man Charged in $100 Million COVID-19 Health Care Fraud SchemeRead the Press Release
A federal grand jury in the Western District of Arkansas returned an indictment yesterday charging an Arkansas man who owned or managed numerous diagnostic testing laboratories with health care fraud in connection with over $100 million dollars in false billings for urine drug testing, COVID-19 testing, and other clinical laboratory services.
According to court documents, Billy Joe Taylor, 42, of Lavaca, engaged in a scheme between February 2017 and May 2021 in connection with diagnostic laboratory testing, including urine drug testing and tests for respiratory illnesses during the COVID-19 pandemic, that were medically unnecessary, not ordered by medical providers, and/or not provided as represented. According to the indictment, Taylor controlled and directed multiple diagnostic laboratories, and used those labs to submit more than $100 million in false and fraudulent claims to Medicare. The indictment alleges that Taylor obtained medical information and private personal information for Medicare beneficiaries, and then misused that confidential information to repeatedly submit claims to Medicare for diagnostic tests that were not ordered by medical providers and were not actually performed by the laboratories. Taylor allegedly then used the proceeds of the fraud to live a lavish lifestyle, including purchasing numerous luxury automobiles, including a Rolls Royce Wraith, as well as real estate, jewelry, guitars, and other luxury clothing and items.
Taylor is charged with 16 counts of health care fraud, and one count of engaging in a monetary transaction in criminally-derived property. Taylor was previously charged by criminal complaint in May 2021. The defendant is scheduled for his arraignment on Nov. 23 before U.S. Magistrate Judge Mark E. Ford of the U.S. District Court for the Western District of Arkansas. Each of the counts is punishable by a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney David Clay Fowlkes for the Western District of Arkansas; Special Agent in Charge James A. Dawson, of the FBI’s Little Rock division; Special Agent in Charge Miranda Bennett of the Department of Health and Human Services-Office of Inspector General (HHS-OIG), Dallas Regional Office; and Special Agent in Charge Christopher Altemus of the IRS-Criminal Investigation, Dallas Field Office, made the announcement.
The FBI, HHS-OIG, and IRS-Criminal Investigation are investigating the case.
Senior Litigation Counsel Jim Hayes and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas are 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.
Albuquerque man in federal court accused of transporting aliens in case resulting in deathRead the Press Release
ALBUQUERQUE, N.M. – Elton Gastelum, 20, of Albuquerque, appeared for a detention hearing today in federal court where he is charged with transporting illegal aliens resulting in death. Gastelum will remain in custody pending trial.
According to a criminal complaint, on Sept. 18, Gastelum allegedly was transporting illegal aliens when he approached a Border Patrol checkpoint on New Mexico State Road 11. Gastelum allegedly attempted to circumvent the checkpoint by driving his vehicle northward in the southbound lane, and then fled from Border Patrol agents at a high rate of speed. Gastelum allegedly lost control of the vehicle, which rolled several times and caught fire. Six people were ejected from the vehicle, while the other four were extracted from the burning SUV. One of the aliens who had been in the vehicle died at the scene while another died later at the hospital.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. The maximum statutory penalty for this charge is up to life in prison or death.
Homeland Security Investigations (HSI) investigated this case with assistance from the U.S. Border Patrol. Assistant U.S. Attorneys Christopher S. McNair and Randy Castellano are prosecuting the case.
Akron Man Pleads Guilty to Role in Multi-State Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio man who helped lead a multi-state drug conspiracy entered a guilty plea today in federal court. George Devonte Langford, 29, pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine, 100 grams or more of heroin, and 40 grams or more of fentanyl.
According to court documents, Langford admitted that he participated in the conspiracy between April and September 2019. Langford admitted that he frequently acquired methamphetamine, heroin, and fentanyl in the Akron area which he and others transported to the Southern District of West Virginia. Langford then distributed the drugs to various customers in multiple locations including Scott Depot, Charleston and Sissonville. Langford also admitted that customers traveled to locations in Ohio on multiple occasions, including Akron and Canton, where he met with them to provide them with methamphetamine, heroin, and fentanyl. Langford was aware that these customers traveled from, and intended to return to, West Virginia with the drugs where they would be re-distributed.
Langford faces 10 years to life in federal prison when he is sentenced on February 7, 2022.
United States Attorney William S. Thompson made the announcement and commended the joint investigation spearheaded by the Federal Bureau of Investigation (FBI). Other agencies that participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor are handling the prosecution.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-000246.
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Adult Man Pretending to be Teenager Sentenced to 25 Years for Federal Child Pornography ChargesRead the Press Release
Miami, Florida – A Palm Beach Gardens, Florida adult who enticed minor girls into sending him sexually explicit pictures of themselves by, among other things, pretending to be a teenager during on-line chats was sentenced yesterday to 25 years in federal prison and supervised release for life.
Beginning in 2008, Dwight Castaldi, 45, communicated with at least six minor-aged girls, as young as 13, on a social networking websites. Castaldi told the girls he was a teenager and sent the victims pictures of an unknown young man, falsely claiming they were pictures of him. During chats, Castaldi told the minors that they were in exclusive relationships with him and convinced the minors to take sexually explicit pictures of themselves and send the images to him. Law enforcement officers executed a search warrant at Castaldi’s Palm Beach County home in 2018. They found several electronic devices containing hundreds of videos and photographs of child exploitation material and evidence of Castaldi communicating with others about the illegal material.
Castaldi previously pled guilty to production, distribution, and possession of child pornography, and online enticement of minors. U.S. District Judge Rodney Smith, who sits in Ft. Lauderdale, imposed the sentence.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge George L. Piro, FBI Miami, announced the sentence.
FBI Miami investigated the case, together with the Palm Beach Gardens Police Department and Huntington Beach California Police Department. Assistant U.S. Attorney Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-80087.
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36-Time Felon Sentenced to Prison After Assaulting Woman with Sawed-Off ShotgunRead the Press Release
Miami, Florida – A federal district judge in Ft. Pierce, Florida has sentenced 40-year-old Gregory T. Fuller to eight years in federal prison for possessing a firearm while being a convicted felon.
In the early morning hours of April 10, 2019, in Ft. Pierce, Fuller began arguing with a female acquaintance. Fuller then went to a nearby residence, retrieved a firearm, and returned to the scene. While continuing to argue with the woman, Fuller pointed the firearm at her, threatened her, and hit her in the face. Fuller then returned to the residence and hid the firearm. Law enforcement later recovered it: a shotgun with no serial number that had its stock and barrel sawed off. At the time that he possessed the sawed-off shotgun, Fuller had previously been convicted of 36 felonies, including convictions for robberies, burglaries, batteries, escape, and other crimes.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Christopher Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, announced the sentence.
ATF Miami investigated this case, with assistance from the Fort Pierce Police Department. Assistant U.S. Attorney Justin Hoover is prosecuting the case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14001.
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Tuesday 2 November 2021
“Pure Armenian Blood” Member Pleads Guilty to Racketeering and Fraud OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DAVIT YEGHOYAN pled guilty today to his role in a coast-to-coast racketeering enterprise referred to as “Pure Armenian Blood” or “P.A.B.,” in connection with the charges filed in United States v. Narek Marutyan, et al., 20 Cr. 652 (VM). YEGHOYAN pled guilty before U.S. Magistrate Judge Sarah L. Cave, and will be sentenced by U.S. District Judge Victor Marrero on a date to be determined.
U.S. Attorney Damian Williams said: “As a member of a sophisticated coast-to-coast organized criminal enterprise, Davit Yeghoyan enriched himself by stealing others’ identities, falsifying documents, and spending other people’s money, as he admitted in court today.”
According to the allegations contained in the Indictment, and statements during court proceedings:
Pure Armenian Blood was an organized criminal group operating under the direction and protection of an unindicted co-conspirator (“CC-1”), a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals. Members and associates of Pure Armenian Blood operated under the direction and protection of CC-1, a vor of Armenian descent previously based in Los Angeles before being deported in or about 2018. Pure Armenian Blood operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks, particularly identity theft, access device fraud, and credit card fraud, among others. While Pure Armenian Blood exploited victims and the financial system in New York City, it had operations in various locations throughout the United States and abroad, including through the use of purportedly legitimate business entities operating under the control and in conjunction with members of P.A.B. at various points throughout the conspiracy.
As a member of P.A.B., YEGHOYAN participated in and facilitated P.A.B’s various illicit activities, including the use of counterfeit credit cards and stolen personal identifying information, selling goods purchased with counterfeit credit cards for profit, fraudulently opening and exhausting lines of credit, and then falsifying documents to “clean” the credit of account holders in whose names the lines of credit were opened, and making purchases at collusive businesses with counterfeit credit cards or credit cards that were fraudulently opened.
YEGHOYAN, 29, of Brooklyn, New York, pled guilty to participating in a racketeering conspiracy, which carries a maximum penalty of 20 years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
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Mr. Williams praised the outstanding investigative work of FBI New York’s Eurasian Organized Crime Squad, as well as the FBI’s Newark, Los Angeles, and Miami offices, Homeland Security Investigations, the New York City Police Department, the United States Postal Inspection Service, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case. This case is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transitional Criminal Enterprise Unit. Assistant U.S. Attorneys Benet J. Kearney, Abigail S. Kurland, and Emily Deininger are in charge of the case.
“11 Hunnit” Gang Member Sentenced to 12 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA - A former resident of the Hill District neighborhood of the City of Pittsburgh, has been sentenced in federal court to 12 years (144 months) of incarceration followed by five years of federal supervised release on his conviction for violating the Racketeer Influenced Corrupt Organizations Act (commonly known as “RICO”), Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Sydney Pack, 23, who pled guilty in April 2021 to one count of RICO conspiracy.
According to information presented to the Court at the time of Pack’s guilty plea, Mr. Pack acknowledged that he was a member of the violent street gang known as “11 Hunnit,” which operated in the Hill District neighborhood of Pittsburgh. Mr. Pack acknowledged that he, along with alleged codefendants Dionte Griffin, Richard Kelly, and others, conspired to conduct and participate in the conduct in the affairs of the 11 Hunnit gang through a pattern of racketeering activity consisting generically of acts involving murder, robbery, and the distribution of controlled substances.
Mr. Pack acknowledged his personal participation in certain overt acts that were done in furtherance of the RICO conspiracy, which included an April 2015 shooting of a rival gang member, a January 2016 shooting of a rival gang member, an October 2016 shooting of a rival gang member, a November 2016 shooting of a rival gang member, the unlawful possession of heroin, fentanyl, and firearms on various dates, and his participation – along with other members of 11 Hunnit – in several publicly available rap music videos designed to intimidate rival gangs and enhance 11 Hunnit’s reputation as a violent enterprise.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, together with the Pittsburgh Bureau of Police, for the investigation leading to the successful prosecution of Pack.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Wetzel County woman sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Jane Grace Dawson, of New Martinsville, West Virginia, was sentenced today to 30 months of incarceration for a drug charge, United States Attorney William J Ihlenfeld, II announced.
Dawson, age 32, pled guilty in January 2020 to one count of “Conspiracy to Distribute Heroin.” Dawson admitted to working with others to distribute heroin in Wetzel County and elsewhere from March 2019 to August 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Meth Dealer Sentenced to 10 Years for Drug and Firearms OffensesRead the Press Release
PITTSBURGH, PA – A West Virginia resident has been sentenced in federal court to 120 months’ imprisonment and five years of supervised release on his conviction for violating the federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Van Gregory Barrows, 29, of Bowden, West Virginia, who pled guilty to a two-count Indictment charging him with attempted possession of 50 grams or more of methamphetamine with the intent to distribute it, and conspiracy to do the same. He also pled guilty to a one-count Information charging him with unlawfully possessing firearms while being an unlawful user of a controlled substance.
According to information presented to the Court, on November 17, 2017, agents with the Department of Homeland Security Investigations and the Pennsylvania State Police executed federal search warrants at a hotel in Ross Township, PA, where they located Barrows and others. Inside of the hotel room, agents seized multiple firearms, three of which Barrows admitted to possessing. Agents seized quantities of methamphetamine and electronic devices (i.e., cell phones and computers) and drug paraphernalia used in the packaging and distribution of controlled substances. In an interview with agents, Barrows admitted to being an unlawful user of methamphetamine and to possessing three of the seized firearms. Federal law prohibits an unlawful user of a controlled substance from possessing a firearm. Barrows further admitted to agents that he purchased large quantities of methamphetamine from an online marketplace commonly known as “the dark web”. Barrows admitted that he, and others in his home state of West Virginia, distributed the methamphetamine that he purchased online, and that he was in the Pittsburgh area at that time to convert U.S. currency into cryptocurrency, which he used to purchase the methamphetamine. Barrows further advised agents that one such order was being delivered to the Ross Township hotel. Agents interdicted that parcel and found it to contain approximately eight ounces of “pure” methamphetamine, which is a scheduled controlled substance. Evidence seized from Barrows electronic devices further evidenced his involvement in the online drug purchases and conspiracy.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Department of Homeland Security Investigations and the Pennsylvania State Police for the investigation leading to the successful prosecution of Barrows.
West Plains Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Missouri, sex offender was sentenced in federal court today for receiving and distributing child pornography.
David Lee Wilson, 38, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Wilson to a lifetime of supervised release following incarceration.
On Aug. 5, 2020, Wilson pleaded guilty to receiving and distributing child pornography. Wilson has a prior conviction for child molestation in Grays Harbor County, Washington, and is a registered sex offender.
A law enforcement officer contacted Wilson at a West Plains residence on Aug. 22, 2019, and seized his cell phone. The cell phone contained images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the West Plains, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Vallejo Man Sentenced to over Three Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Michael Ray Pitre, Jr., 36, of Vallejo, was sentenced Monday by Chief U.S. District Judge Kimberly J. Mueller to three years and 4 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, the execution of federal search warrants of Pitre’s person, residences, and vehicles led to the discovery of a non-serialized machine gun, a short barrel rifle, and a pistol in Pitre’s possession. The machine gun, which was located in the defendant’s truck, was loaded with a 60-round extended magazine, and was placed on top of a bag containing a mask, additional extended magazines and ammunition, and two tracking devices. Pitre cannot lawfully possess firearms or ammunition because he has previously been convicted of two felony offenses, including for his participation in a residential burglary that resulted in the death of one of his coconspirators and serious gunshot injuries to an innocent victim.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oakland Police Department. Assistant United States Attorney Adrian T. Kinsella prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Utah Man Sentenced for Tax FraudRead the Press Release
https://www.justice.gov/opa/pr/utah-man-sentenced-tax-fraud
Union County Man Sentenced to 17 Months in Prison for Offering Bribes to Postal Service EmployeesRead the Press Release
NEWARK, N.J. – A Union County, Jersey, man was sentenced today to 17 months in prison for offering bribes to a U.S. Postal Service (USPS) employee to steal check books and credit cards from the mail, Acting U.S. Attorney Rachael A. Honig announced.
Jabre Beauvoir, 23, of Elizabeth, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of bribery. Judge McNulty imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
In the summer of 2019, Beauvoir offered bribes to USPS employees to steal mail containing check books and credit cards. Beauvoir typically offered $100 per package of check books or credit cards to induce USPS employees to steal such mail matter and deliver it to him. It was further part of the scheme that Beauvoir and others then posed as the actual accountholders to whom the check books or credit cards originally were mailed by fraudulently signing checks, activating the stolen credit cards, and fraudulently using them.
In addition to the prison term, Judge McNulty sentenced Beauvoir to three years of supervised release and ordered him to pay restitution of $23,948.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, and special agents with the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. She also thanked the U.S. Secret Service, the New Jersey State Police, the Elizabeth Police Department, and the Secaucus Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
Two Men Plead Guilty to Roles in Multi-State Methamphetamine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Two men who participated in a multi-state methamphetamine conspiracy entered guilty pleas in federal court. Dennis Deire Mosley, Jr., 35, of Akron, Ohio, and Frederick Clyde Waite, 49, of Sissonville, both pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine.
According to court documents, Mosley admitted that he participated in the conspiracy during the month of July 2019. Mosley admitted that he and another individual made arrangements to acquire methamphetamine in the Columbus, Ohio area. On July 24, 2019, Mosley and the other individual traveled from Akron to Columbus and acquired at least three pounds of methamphetamine. The other individual then delivered the methamphetamine to Waite in Sissonville the next day. Mosley admitted that he knew the methamphetamine would be distributed in the Southern District of West Virginia when he helped acquire it.
Waite admitted that he participated in the conspiracy between July of 2019 and September of 2019. In addition to receiving three pounds methamphetamine on July 25, 2019, Waite admitted that he also attempted to acquire additional methamphetamine in the Akron area. After Waite negotiated the purchase of methamphetamine over the telephone, another individual traveled to Ohio to receive the drugs. The individual was stopped during the return trip to West Virginia and troopers with the Ohio State Highway Patrol seized over 2.2 kilograms of methamphetamine from the vehicle.
Waite and Mosley each face a minimum mandatory of 10 years and up to life in federal prison when they are sentenced on January 31 and February 7, 2022, respectively.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Federal Bureau of Investigation (FBI). Other agencies that participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00024.
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Two Individuals Convicted of Defrauding Medicaid at a Doral Clinic Providing Psychosocial Rehabilitation ServicesRead the Press Release
Miami, Florida – Two South Florida residents have pleaded guilty to running a mental health care fraud scheme that over-billed Medicaid for hundreds of thousands of dollars.
During the change of plea hearing in federal court in Fort Lauderdale, Florida, Lorena Osella, 44, of Ft. Lauderdale, Florida, pleaded guilty to one count of conspiracy to commit health care fraud, and Juan Luis Matos, 59, of Miami, Florida, pleaded guilty to one count of conspiracy to defraud the United States and to pay health care kickbacks. U.S. District Judge William P. Dimitrouleas, who sits in Ft. Lauderdale, Florida, will sentence both defendants on January 10, 2022.
As part of their guilty pleas, Osella and Matos admitted that they paid kickbacks of $400 in cash per month to Medicaid beneficiaries in exchange for the beneficiaries receiving psychosocial rehabilitation (PSR) services at Lighthouse Community Center LLC, in Doral, Florida. In addition, Osella admitted that she fraudulently billed Medicaid for at least $350,206 in psychosocial rehabilitation (PSR) services that were not provided as claimed. Psychosocial rehabilitation (PSR) services are a type of mental health group counseling designed to help people with depression, anxiety, and other mental disorders cope with their conditions and improve their ability to conduct daily life activities. Medicaid allowed these services to be administered via telemedicine beginning in April 2020 because of the COVID-19 pandemic. Osella and Matos also admitted to illegally receiving Florida unemployment benefits during the time they committed the health care fraud.
HHS-OIG investigated the case. Assistant United States Attorney Timothy Abraham is prosecuting the case. AUSA Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20299.
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Trussville Man Sentenced to 22 Years in Prison for Guns, Drugs and EscapeRead the Press Release
BIRMINGHAM, Ala. – A Trussville man was sentenced today on gun, drug, and escape charges, announced U.S. Attorney Prim F. Escalona, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French, and U.S. Marshal Martin Keely.
U.S. District Judge Abdul K. Kallon sentenced Timothy Allen Phillips, 40, to 264 months in prison for possession with intent to distribute 50 grams or more of methamphetamine, being a felon in possession of a firearm, and escape from the custody of the Attorney General.
“Repeat offenders like this defendant, who deal drugs and illegally possess firearms, are the focus of our enforcement efforts to reduce violent crime in our communities.” U.S. Attorney Escalona said. “We are grateful for the excellent work of the Irondale and Argo Police Departments, the ATF, and the U. S. Marshal’s Service to make the cases that would put this defendant in prison for 22 years.”
“ATF’s Crime Gun Intelligence partnerships once again have proven to be effective in reducing violent crime,” SAC Mickey French said.
According to the plea agreement, on September 13, 2019, Irondale Police Department executed a search warrant on Center Street in Trussville, Alabama, where Phillips resided. Inside the house officers found methamphetamine and a digital scale. There was also a small barn located at the property where officers found marijuana and drug paraphernalia, including items used to smoke marijuana. Phillips told officers that he had weapons hidden in the eve on the front porch. Officers recovered a Springfield .45 caliber handgun and a Cobra .22 caliber derringer handgun from the overhang on the front porch.
On February 19, 2020, a confidential informant (CI) made a controlled drug purchase of methamphetamine from Phillips’ residence. The CI had been to the residence on more than one occasion. On February 21, 2020, a search was executed at Phillip’s residence, based on the CI’s purchase on February 19th. Officers recovered a Remington 12-gauge short-barreled shotgun from a storage shed. Officers also recovered multiple firearms and rounds of ammunition, and approximately 225 grams, and 84 blotter units of LSD from inside the residence.
On February 27, 2020, a police officer made a traffic stop on the driver of a grey Chevy Tahoe for a switched tag. The officer identified the driver as Phillips. Phillips had a suspended driver’s license and an outstanding warrant with ATF. Officers recovered marijuana, a Smith & Wesson .357 revolver, and a Ruger .380 caliber pistol from the vehicle. Both firearms were loaded with 6 rounds each.
On February 24, 2020, ATF agents arrested Phillips after he was charged for being a felon in possession of a firearm. On that same day, Phillips was released on bond. On March 9, 2020, Phillips’ bond was revoked, and he was remanded into the custody of the Attorney General. Phillips was booked into the Talladega County Jail, as a federal inmate.
On April 30, 2020, Phillips escaped from the Talladega County Jail. Local law enforcement along with the United States Marshals Service began a search for Phillips. Later that afternoon, federal law enforcement officers located Phillips at a residence in Ohatchee, Alabama. Phillips was taken into custody without incident.
The ATF and United States Marshals Service investigated the case along with the Irondale Police Department and Argo Police Department. Assistant United States Attorney John Camp prosecuted the case.
Three Defendants Indicted for Narcotics ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Ray Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), and Thomas A. Gleason, Commissioner of the Westchester County Department of Public Safety, announced that JORGE APONTE-GUZMAN, NELSON AGRAMONTE-MINAYA, and CARLOS MAISONET-LOPEZ were indicted yesterday for their participation in a drug trafficking conspiracy. The defendants were arrested on September 29, 2021, and were presented before United States Magistrate Judge Gabriel W. Gorenstein on September 30, in the cases of AGRAMONTE-MINAYA and MAISONET-LOPEZ, and on October 1, in the case of APONTE-GUZMAN. The case is assigned to United States District Judge Alison J. Nathan.
U.S. Attorney Damian Williams said: “This investigation has yielded the seizure of approximately 920 kilograms of cocaine, disrupting an alleged narcotics trafficking organization. Thanks to our partners at the DEA, this massive quantity of dangerous drugs has been kept off the streets.”
DEA Special Agent in Charge Ray Donovan said: “A multimillion-dollar storm of cocaine was seized before it could wreak havoc in the Northeast. Over one ton of cocaine was seized, making it the largest cocaine seizure destined for the streets of New York in over a decade. This seizure signifies a shift in the illegal drug landscape in New York, with cocaine seizures rising more than 150% in the last year. DEA and our law enforcement partners will continue to guard against drug trafficking organizations’ tactics and techniques to smuggle drugs into our country.”
Westchester County Police Commissioner Thomas A. Gleason said: “A seizure of this magnitude underscores the critical importance of working together with our federal and local law enforcement partners in the DEA Westchester Task Force. The tremendous work and dedication of the DEA and Task Force Investigators has interrupted a major drug distribution operation and prevented approximately one ton of dangerous, illegal narcotics from being distributed on the streets of our area.”
According to the allegations in the Indictment unsealed yesterday in Manhattan federal court and in other public court documents[1]:
On or about September 29, 2021, APONTE-GUZMAN traveled in a rental van from a loading dock in New Jersey to the area of a New Jersey residence, where he was met by MAISONET-LOPEZ and AGRAMONTE-MINAYA. Inside the rental van driven by APONTE-GUZMAN, law enforcement seized approximately 460 kilograms of cocaine that were packaged inside 10 large metal lawn rollers. Records relating to the shipment of the lawn rollers indicate that the lawn rollers were shipped from Puerto Rico to New Jersey, with a consignee in the Bronx, New York.
The next day, on or about September 30, 2021, DEA agents seized a substantially similar shipment of 10 large metal lawn rollers from the loading dock that APONTE-GUZMAN had visited the day before. In that second shipment, agents found an additional approximately 460 kilograms of cocaine.
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APONTE-GUZMAN, 33, AGRAMONTE-MINAYA, 37, and MAISONET-LOPEZ, 32, are charged with conspiring to distribute and possess with intent to distribute at least five kilograms of cocaine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the assigned judge.
Mr. Williams praised the outstanding investigative work of the New York Division of the DEA, the Westchester County Department of Public Safety, and the Mt. Vernon Police Department. Mr. Williams also thanked the Westchester Resident Office of the DEA, the Port Authority Police Department, the New Rochelle Police Department, the Portchester Police Department, the White Plains Police Department, and the Yonkers Police Department for their assistance in the investigation.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Kevin Mead and Samuel P. Rothschild are in charge of the prosecution.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and other assertions in public court documents, and the descriptions of those documents set forth in this release, constitute allegations only, and every fact described should be treated as an allegation.