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15 December 2021
Former North Country Postal Clerk Sentenced for Stealing Prescription Drugs from Mail ParcelsRead the Press Release
ALBANY, NEW YORK – Brittany Irvine, age 27, formerly of Bloomingdale, New York, was sentenced today to 12 months of probation and to pay a fine of $5,000 for stealing prescription drugs from mail parcels.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).
Irvine previously admitted that beginning on June 18, 2019, and until her arrest on August 27, 2019, while working as a Distribution Clerk at the United States Post Office in Bloomingdale, she opened three parcels containing prescription oxycodone pills and removed the pills.
This case was investigated by the USPS, Office of the Inspector General, and was prosecuted by Assistant U.S. Attorney Troy Anderson.
Former Minneapolis Police Officer Derek Chauvin Pleads Guilty in Federal Court to Depriving George Floyd and a Minor Victim of Their Constitutional RightsRead the Press Release
The Justice Department announced today that Derek Chauvin, 45, pleaded guilty in federal court to two violations of a federal civil rights statute.
First, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, George Floyd of his constitutional rights, resulting in Mr. Floyd’s bodily injury and death. Defendant Chauvin also agreed that the appropriate sentencing base offense level for this crime is second-degree murder because he used unreasonable and excessive force that resulted in Mr. Floyd’s death, and he acted willfully and in callous and wanton disregard of the consequences to Mr. Floyd’s life.
Second, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, a then 14-year-old juvenile of his constitutional rights, resulting in the juvenile’s bodily injury.
“Defendant Chauvin has pleaded guilty to two federal civil rights violations, one of which led to the tragic loss of George Floyd’s life,” said Attorney General Merrick B. Garland. “While recognizing that nothing can repair the harm caused by such acts, the Justice Department is committed to holding accountable those who violate the Constitution, and to safeguarding the civil rights of all Americans.”
In the plea agreement, defendant Chauvin admitted that on May 25, 2020, he willfully violated Mr. Floyd’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held his left knee across Mr. Floyd’s neck, back and shoulder and his right knee on Mr. Floyd’s back and arm. The plea agreement states that Mr. Floyd remained restrained, prone and handcuffed on the ground for approximately 10 minutes. Defendant Chauvin further admitted that he continued to use force even though he was aware that Mr. Floyd had stopped resisting, talking and moving, and even though he was aware that Mr. Floyd had lost consciousness and a pulse. Defendant Chauvin admitted that Minneapolis Police Department (MPD) policy and training requires officers to stop using force when a subject is not resisting and to move an arrestee from the prone position into a side recovery or seated position because the prone position may make it more difficult to breathe. Defendant Chauvin admitted that his willful use of unreasonable force resulted in Mr. Floyd’s bodily injury and death because his actions impaired Mr. Floyd’s ability to obtain and maintain sufficient oxygen to sustain Mr. Floyd’s life.
In the plea agreement, defendant Chauvin also admitted that he willfully violated Mr. Floyd’s constitutional right not to be deprived of liberty without due process of law, which includes an arrestee’s right to be free from a police officer’s deliberate indifference to his serious medical needs. Specifically, defendant Chauvin admitted that he failed to render medical aid to Mr. Floyd, although he saw that Mr. Floyd was lying on the ground, in serious medical need, and although he was aware that MPD policy required him to provide emergency medical aid, including CPR, to an arrestee who needs it. Defendant Chauvin admitted that his failure to render medical aid resulted in Mr. Floyd’s bodily injury and death.
Additionally, according to the plea agreement, defendant Chauvin admitted that on Sept. 4, 2017, he willfully violated a then 14-year-old juvenile’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held the juvenile by the throat and struck the juvenile multiple times in the head with a flashlight, resulting in the juvenile’s bodily injury. In the plea agreement, defendant Chauvin also admitted that he held his knee on the juvenile’s neck, shoulders and upper back for between 15 and 16 minutes, even though the juvenile was face-down on the floor, handcuffed and not resisting. Defendant Chauvin admitted that these actions resulted in the juvenile’s bodily injury.
Defendant Chauvin pleaded guilty today before U.S. District Court Senior Judge Paul A. Magnuson. Defendant Chauvin will be sentenced at a hearing to be scheduled at a later date. According to the plea agreement, defendant Chauvin faces a sentence of between 20- and 25-years imprisonment. Under the terms of the plea agreement, defendant Chauvin will serve his sentence in federal custody and will not be eligible to work in any law enforcement capacity following his release.
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension and is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, W. Anders Folk, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
Former Minneapolis Police Officer Derek Chauvin Pleads Guilty in Federal Court to Depriving George Floyd and a Minor Victim of Their Constitutional RightsRead the Press Release
St. Paul, Minn. – The Justice Department announced today that Derek Chauvin, 45, pleaded guilty in federal court to two violations of a federal civil rights statute.
First, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, George Floyd of his constitutional rights, resulting in Mr. Floyd’s bodily injury and death. Defendant Chauvin also agreed that the appropriate sentencing base offense level for this crime is second-degree murder because he used unreasonable and excessive force that resulted in Mr. Floyd’s death, and he acted willfully and in callous and wanton disregard of the consequences to Mr. Floyd’s life.
Second, defendant Chauvin pleaded guilty to willfully depriving, while acting under color of law, a then 14-year-old juvenile of his constitutional rights, resulting in the juvenile’s bodily injury.
“Defendant Chauvin has pleaded guilty to two federal civil rights violations, one of which led to the tragic loss of George Floyd’s life,” said Attorney General Merrick B. Garland. “While recognizing that nothing can repair the harm caused by such acts, the Justice Department is committed to holding accountable those who violate the Constitution, and to safeguarding the civil rights of all Americans.”
In the plea agreement, defendant Chauvin admitted that on May 25, 2020, he willfully violated Mr. Floyd’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held his left knee across Mr. Floyd’s neck, back and shoulder and his right knee on Mr. Floyd’s back and arm. The plea agreement states that Mr. Floyd remained restrained, prone and handcuffed on the ground for approximately 10 minutes. Defendant Chauvin further admitted that he continued to use force even though he was aware that Mr. Floyd had stopped resisting, talking and moving, and even though he was aware that Mr. Floyd had lost consciousness and a pulse. Defendant Chauvin admitted that Minneapolis Police Department (MPD) policy and training requires officers to stop using force when a subject is not resisting and to move an arrestee from the prone position into a side recovery or seated position because the prone position may make it more difficult to breathe. Defendant Chauvin admitted that his willful use of unreasonable force resulted in Mr. Floyd’s bodily injury and death because his actions impaired Mr. Floyd’s ability to obtain and maintain sufficient oxygen to sustain Mr. Floyd’s life.
In the plea agreement, defendant Chauvin also admitted that he willfully violated Mr. Floyd’s constitutional right not to be deprived of liberty without due process of law, which includes an arrestee’s right to be free from a police officer’s deliberate indifference to his serious medical needs. Specifically, defendant Chauvin admitted that he failed to render medical aid to Mr. Floyd, although he saw that Mr. Floyd was lying on the ground, in serious medical need, and although he was aware that MPD policy required him to provide emergency medical aid, including CPR, to an arrestee who needs it. Defendant Chauvin admitted that his failure to render medical aid resulted in Mr. Floyd’s bodily injury and death.
Additionally, according to the plea agreement, defendant Chauvin admitted that on Sept. 4, 2017, he willfully violated a then 14-year-old juvenile’s constitutional right to be free from an officer’s use of unreasonable force. Specifically, defendant Chauvin admitted that he held the juvenile by the throat and struck the juvenile multiple times in the head with a flashlight, resulting in the juvenile’s bodily injury. In the plea agreement, defendant Chauvin also admitted that he held his knee on the juvenile’s neck, shoulders and upper back for between 15 and 16 minutes, even though the juvenile was face-down on the floor, handcuffed and not resisting. Defendant Chauvin admitted that these actions resulted in the juvenile’s bodily injury.
Defendant Chauvin pleaded guilty today before U.S. District Court Senior Judge Paul A. Magnuson. Defendant Chauvin will be sentenced at a hearing to be scheduled at a later date. According to the plea agreement, defendant Chauvin faces a sentence of between 20- and 25-years imprisonment. Under the terms of the plea agreement, defendant Chauvin will serve his sentence in federal custody and will not be eligible to work in any law enforcement capacity following his release.
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension and is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, W. Anders Folk, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
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Former Management Consulting Firm Partner Pleads Guilty to Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that PUNEET DIKSHIT, a former partner in a global management consulting firm (the “Consulting Firm”), pled guilty to one count of securities fraud in connection with his scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”). The defendant pled guilty before U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Barely a month after he was charged, Puneet Dikshit admitted in court today that he used his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options. This conduct, which netted the defendant nearly half a million dollars in tainted profits, broke the law and violated the defendant’s duties to his firm and its client. Now Puneet Dikshit awaits sentencing for his admitted crime.”
According to the allegations in the Complaint, Information, and statements made in public court proceedings:
GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes. GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.
Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky. DIKSHIT was one of the Consulting Firm partners leading these engagements. In that role, he had access to material nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options.
DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky. At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase. However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021. After the deal to purchase GreenSky was announced, DIKSHIT sold these options and realized profits of approximately $450,000.
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DIKSHIT, 40, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. DIKSHIT is scheduled to be sentenced by Judge McMahon on March 30, 2022, at 2:00 p.m.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Joshua A. Naftalis and Matthew Podolsky are in charge of the prosecution.
Former Boston Police Auto Repair Technician Sentenced on Wire Fraud ChargesRead the Press Release
BOSTON – A former auto repair technician with the Boston Police Department’s (BPD) Fleet Management Division was sentenced yesterday in connection with a scheme to embezzle hundreds of thousands of dollars from the BPD.
Bahram Gharony, 36, of Boston, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two months in prison and three years of supervised release. Gharony was also ordered to pay restitution in the amount of $256,432. On Aug. 10, 2021, Gharony pleaded guilty to two counts of wire fraud.
Gharony engaged in a scheme that defrauded BPD’s Fleet Management Division of over $260,000 in automotive parts, tools and supplies between June 2017 and September 2020. Gharony used his position to order parts and supplies that he purported were for BPD, but were actually converted and sold to others by Gharony. In an effort to conceal the scheme, Gharony submitted fraudulent and altered invoices to BPD for the parts, tools and supplies he falsely claimed were ordered for the fleet. Additionally, Gharony purported that he had lawfully purchased the items through a discount available to BPD when selling the items to others.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit prosecuted the case.
Former Bank Manager Pleads Guilty to Theft of Government Funds and Aggravated Identity TheftRead the Press Release
BAY CITY - A former branch manager of JPMorgan Chase Bank pleaded guilty today to theft of government funds and aggravated identity theft, Acting U.S. Attorney Saima S. Mohsin announced.
Mohsin was joined in the announcement by Acting Resident Agent in Charge Katy Krieg of the Social Security Administration Office of the Inspector General, Office of Investigations, Chicago Field Division, Detroit Sub-Office.
Jeffrey Piecka, 46, of Midland pleaded guilty before U.S. Magistrate Judge Patricia T. Morris.
Piecka pleaded guilty to devising and executing a scheme to steal $169,967.63 in government benefits from the bank account of a deceased individual. In the course of his employment with Chase, Piecka conducted a search of open accounts with little account activity. He found an account that was not being used and suspected that the account owner was deceased. Piecka then made changes to the bank account to create online account access for himself, and he proceeded to withdraw significant sums of money from the account by various means, including by initiating an electronic transfer to himself, negotiating online bill payment checks made payable to himself, and making online payments to credit card companies, a utility company, his apartment complex, and his car lender.
Piecka entered into a plea agreement, under which he agreed to pay full restitution to the Social Security Administration in the amount of $169,967.63. A sentencing date will be set by the court.
This case was investigated by special agents of the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Corinne M. Lambert.
Former Analyst Pleads Guilty to Securities Fraud for Committing Insider Trading by Front-Running Employer’s Pending TradesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SERGEI POLEVIKOV, a former analyst employed by an asset management firm, pled guilty to one count of securities fraud in connection with his multi-year scheme to commit insider trading by misappropriating confidential information about pending trades by his former employer. POLEVIKOV was arrested in September of this year, and pled guilty today in Manhattan federal court before U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “As he admitted in court today, Sergei Polevikov broke the law when he exploited material, nonpublic information to make personal trades ahead of his employer’s large institutional trades. Polevikov now awaits sentencing for his crime, and he must also forfeit more than $8 million in illicit profit.”
According to the Information to which POLEVIKOV pled guilty, the complaint that was filed in this case, and statements made during court proceedings:
From at least in or about 2014 through in or about October 2019, POLEVIKOV was employed as a quantitative analyst at an asset management firm with headquarters in New York, New York (the “Employer Firm”). In his role at the Employer Firm, POLEVIKOV had regular access to information regarding contemplated securities trades on behalf of the Employer Firm’s clients, which included investment companies. During the period charged in the Complaint, POLEVIKOV engaged in a front-running scheme to misappropriate confidential, material, nonpublic information about the securities trade orders of the Employer Firm on behalf of its clients in order to engage in short-term personal securities trading in a brokerage account opened in his wife’s name. POLEVIKOV’s trading scheme was designed to take advantage of relatively small price movements in a company’s stock that followed from large securities orders executed by the Employer Firm on behalf of its clients. In total, POLEVIKOV’s scheme yielded more than $8.5 million in illicit profits.
As part of his plea agreement, POLEVIKOV has agreed to forfeit $8,564,977 on or before April 1, 2022.
POLEVIKOV is scheduled to be sentenced by Judge Liman on April 12, 2022.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the Securities & Exchange Commission, which brought a related civil action against POLEVIKOV.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
Foreign National Sentenced for Unlawful Possession of AmmunitionRead the Press Release
Hattiesburg, Miss. – A foreign national who had been living in Texas was sentenced to 33 months in prison and ordered to pay a $10,000 fine for being an illegal alien in possession of ammunition, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, Michael Rempel Klassen, 24, was driving a vehicle which was stopped on February 24, 2021, by a New Augusta Police officer for careless driving on U.S. Highway 98. The officer requested a driver’s license and Klassen provided a driver’s license from the State of Chihuahua, Mexico. Klassen said he did not have a driver’s license from the U.S., that his work visa had expired in 2017, and that he had not renewed the work visa.
Officers located two firearms, a silencer and numerous rounds of ammunition in Klassen’s vehicle. The ATF was notified, and a Homeland Security Investigations Special Agent also joined the case regarding immigration issues. Records showed that Klassen was born in Canada and confirmed that he was illegally present at the time of his 2021 arrest in Perry County.
Upon his release from prison, Klassen may face U.S. Immigrations and Customs Enforcement removal proceedings. If removed from the U.S. following his prison sentence, Klassen could face additional penalties if he were to unlawfully return, as well as further prosecution.
Klassen pled guilty on September 10, 2021.
The case was investigated by the ATF, HSI, the New Augusta Police Department, and the Perry County Sheriff’s Office.
Assistant U.S. Attorney Stan Harris prosecuted the case as part of the federal, state and local Project Safe Neighborhoods (PSN) Program. The centerpiece of the Department of Justice’s crime reduction efforts, PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts and partners with locally based prevention and reentry programs for lasting reductions in crime.
Felon Sentenced to More than Eight Years in Prison for Possessing a FirearmRead the Press Release
HUNTINGTON, W.Va. – A Ravenna, Ohio man was sentenced today to eight years and four months in prison for being a felon in possession of a firearm.
According to court documents, Omarr Boone, 37, previously admitted that on March 9, 2021, officers with the Huntington Police Department responded to a shooting at the Shell Gas Station in Huntington. After a vehicle pursuit, Boone was placed under arrest. Officers searched Boone’s vehicle and found a stolen Smith and Wesson SD9 VE in the vehicle. Boone has eight prior felony convictions and is prohibited from possessing a firearm under federal law.
United States Attorney Will Thompson made the announcement and commended the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the sentencing. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00101.
Federal Grand Jury Returns Indictment Against Bowling Green Man for Two Bank RobberiesRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned an indictment today charging a Bowling Green man with two bank robberies.
According to court documents, Manuel G. Quiros, 59, of Bowling Green, KY, was charged with robbing German American Bank on July 29, 2021, and December 1, 2021. Quiros is also charged with forcing a person to accompany him during the December 1, 2021, robbery.
The defendant is scheduled to make his initial court appearance on December 29, 2021, before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky. If convicted, Quiros faces a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office made the announcement.
The FBI Bowling Green and the Bowling Green Police Department are investigating the case.
Assistant U.S. Attorney Mark J. Yurchisin II is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Man for Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Friday, December 10, 2021, that PERCY SMITH, age 43, resident of New Orleans, LA, was charged in a two-count indictment for his alleged participation in a weapons violation on June 19, 2021 and on June 30, 2021.
According to court documents, SMITH is charged in Counts 1 and 2 of the indictment with possessing a firearm on two separate occasions, on June 19, 2021 and June 30, 2021, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). If convicted, SMITH faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
Federal Grand Jury Indicts Man for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on September 9, 2021, RANDY FIELDS, age 30, resident of Orleans Parish, was charged in a four-count sealed indictment for alleged drug and gun violations. These violations occurred on March 31, 2021. In Count 1 of the indictment, FIELDS is charged with possession with intent to distribute over 40 grams of fentanyl. Count 2 charges FIELDS with possessing a firearm in furtherance of a drug trafficking offense. Count 3 charges FIELDS with being a felon in possession of a firearm and Count 4 charges him with possessing a machine gun. The indictment was unsealed on December 10, 2021
In Count 1 of the indictment, FIELDS is charged with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B)(vi). If convicted, FIELDS faces a maximum sentence of up to 40 years of imprisonment, a fine of up to $5,000,000.00, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. In Count 2, FIELDS is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). If convicted, FIELDS faces a mandatory minimum sentence of up to 5 years to life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, up to 5 years of supervised release, and a mandatory special assessment fee of $100.00. In Count 3, FIELDS is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). If convicted, FIELDS faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. Finally, in Count 4, FIELDS is charged with being in possession of a machine gun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). If convicted, FIELDS faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
Fayetteville Home-Health Services Company Agrees to Settle False Claims Act Allegations Related to Death of a VeteranRead the Press Release
Raleigh, N.C. – A home-health services company based in Fayetteville, North Carolina, has agreed to pay $45,486.76 to settle civil False Claims Act allegations related to allegedly fraudulent billings for purported work by a recently convicted felon under their employ.
Professional Family Care Services, Inc. (“PFCS”) provides, among other things, home-health services to patients in southeastern North Carolina, including to veterans of the United States Armed Forces. During 2015 and 2016, PFCS billed the Department of Veterans Affairs (“VA”) for home-health services purportedly provided to W.R., an Army veteran, even though, at that time, W.R. was actually residing with the company’s employee, Certified Nurse Aide Tracey McNeill. The evidence showed that PFCS based its billing for those services on falsified timesheets provided by Ms. McNeill, who failed to provide both the time and quality of care required under the VA program. In some instances, Ms. McNeill submitted blatantly inconsistent timesheets indicating that she was providing services to W.R. and another patient at the exact same times.
After several months living with Ms. McNeill and while purportedly receiving home-health services provided by Ms. McNeill through PFCS, W.R. had to be admitted to the hospital with severe bedsores. Evidence showed that he was extremely malnourished, and he ultimately died within a few days of his admission.
Nevertheless, PFCS submitted fifteen separate claim forms seeking payment from the VA for services purportedly provided by Ms. McNeill to W.R. between October 2015 and December 2016, resulting in payment by the VA of $11,273.92. The federal False Claims Act, however, mandates that the government recover three times the damages caused by the fraud, plus civil penalties for false or fraudulent claims. PFCS agreed to pay $45,486.76 to resolve the claims.
Earlier in 2021, Ms. McNeill was convicted of wire fraud for her misconduct related to W.R., was sentenced to 12 months and 1 day in federal prison, and was ordered to pay over $90,000 in restitution.
“The home-health services provided to the veteran by his supposed care-giver were deplorable,” said United States Attorney Michael F. Easley, Jr. “Our veterans should be honored and respected for their service, not abused for others’ financial gain. The United States will always pursue justice for them, and for the programs in place to help support them. This case, on both the criminal and civil side, embodies that unwavering commitment.”
It should be noted that the civil claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability. PFCS cooperated fully in resolving these claims.
Assistant United States Attorney John E. Harris represented the United States in this civil action. The Department of Veterans Affairs, Office of Inspector General (VA-OIG) assisted in this investigation.
Court documents and information about the criminal case against Ms. McNeill are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-000474-D.
Fairmont man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kerm Leroy Jackson, of Fairmont, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Jackson, also known as “Woo,” 28, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine.” Jackson admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.
Jackson faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Everton Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – An Everton, Missouri, man was sentenced in federal court today for illegally possessing the firearm he was carrying at the time he was arrested for rape and sex trafficking in Lawrence County, Mo.
David Arnold, 48, was sentenced by U.S. District Judge Brian C. Wimes to seven years and one month in federal prison without parole. The court also ordered this federal sentence to be served consecutively to Arnold’s sentence in a separate state case for illegally possessing a firearm.
On April 13, 2021, Arnold pleaded guilty to being a felon in possession of a firearm. Arnold admitted he was in possession of a Jimenez Arms 9mm semi-automatic pistol on Oct. 18, 2019.
The U.S. Marshal Service was searching for Arnold that day following a warrant that was issued for his arrest in Lawrence County on charges related to rape, kidnapping, and sex trafficking A task force officer located Arnold’s vehicle at a residence in Springfield, and he was taken into custody. Arnold was carrying the loaded pistol in a holster on his right hip and was in possession of 3.3 grams of methamphetamine.
The Lawrence County charges are still pending.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arnold has eight prior felony convictions, including multiple instances of possession or distribution of a controlled substance, driving while intoxicated-persistent offender, involuntary manslaughter, illegally possessing a firearm, and assaulting a law enforcement officer. His 31 misdemeanor convictions include several convictions for driving under the influence.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshal Service.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eleven People Charged in Fentanyl and Crack Cocaine ConspiracyRead the Press Release
NEWARK, N.J. – Eleven people were charged today for their respective roles in a fentanyl and crack cocaine distribution organization that sold large quantities of controlled substances in the area of Brookdale Avenue and Abinger Place in Newark, Acting U.S. Attorney Rachael A. Honig announced.
Leon Clark, aka “Dino,” 40; Abdul Price, aka “Ab,” aka “Dred,” 43; Elijawan White, aka “Eli,” 33; Janice Anderson, 53; Sherriff Simpson, 38; Kesean Holley, aka “Jack,” 29; Terrance Brown, aka “B-Love,” 42; Corey Ewings, 38; Elijah Robinson, aka “Horse,” 40; Barry Jordan Jr., 48; and Frazier Burton, 46, all of Newark, each were charged by superseding complaint with one count of conspiracy to distribute 400 grams or more of fentanyl and 280 grams or more of crack cocaine. Ten of the defendants are in custody and are scheduled to have their initial court appearances today before U.S. Magistrate Judge Leda Dunn Wettre by videoconference.
According to documents filed in this case and statements made in court:
The defendants ran an open-air narcotics market in the area of Brookdale Avenue and Abinger Place. For several months, law enforcement officials conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions among Clark, Price, White, Anderson, Simpson, Holley, Brown, Ewings, Robinson, and Jordan. The investigation likewise revealed that Burton was a primary supplier of heroin and fentanyl to the drug trafficking organization. At the time of his arrest this morning, Burton was in possession of approximately 100 bricks of suspected heroin and fentanyl branded with stamps that matched prior sales from the drug trafficking organization.
The count with which the defendants are charged carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison and a maximum fine of $10 million.
Acting U.S. Attorney Honig credited special agents of the FBI, under the supervision of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio, with the investigation leading to the charges. She also thanked police officers and detectives of the Newark Police Department, officers of the Essex County Sheriff’s Office, detectives of the Essex County Prosecutor’s Office, the East Orange Police Department, and the Essex County Department of corrections for their assistance with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and DeNae M. Thomas of the Office’s Violent Crimes Unit.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
East St. Louis man enters guilty plea for deadly carjacking and is sentenced to 25 years in federal prisonRead the Press Release
ST. LOUIS – Demario Hunter of East St. Louis, Illinois, appeared before United States District Court Judge John A. Ross today. Hunter pleaded guilty and was sentenced to 25 years in federal prison for an attempted carjacking in the city of St. Louis during which the victim was shot and killed. Hunter was previously charged by criminal complaint on September 6, 2019.
According to the plea agreement, on March 18, 2019, Hunter, accompanied by two co-defendants attempted to carjack James A. Sapone of his 2013 Ford Escape near the intersection of Cherokee and Iowa in the city of St. Louis. A struggle ensued and Hunter shot and killed Sapone during the commission of the attempted carjacking.
Cases for the two co-defendants are pending before the court.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
Dominican National Pleads Guilty to Cocaine ConspiracyRead the Press Release
BOSTON – A Dominican national recently residing in Lawrence pleaded guilty today in federal court in Boston to her role in a cocaine distribution conspiracy.
Michel Saredi-Munoz Morta, 21, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for April 14, 2022. Morta was charged on Nov. 16, 2021.
In or about August 2020, several Priority Mail packages sent to addresses in Lawrence were identified by law enforcement as parcels suspected to contain illegal narcotics. Surveillance of the addresses captured a woman, later identified as Morta, collect the packages shortly after delivery at each location. Morta was subsequently arrested. The packages were found to contain over 500 grams of cocaine.
The charge of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. Morta will be subject to deportation upon completion of her sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Lawrence Police Department provided valuable assistance in the investigation. Assistant U.S. Attorneys Samuel R. Feldman and Leah B. Foley of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, on July 28, 2021, law enforcement officers were conducting surveillance on a Bernard Street residence in Huntington when they saw Marcellas Cortez Mitchell, 28, leave the residence in a vehicle. Mitchell was driving with a revoked license and officers stopped the vehicle. Upon approaching the vehicle, officers observed a front seat passenger making furtive movements. A search of the passenger resulted in two baggies containing approximately 11 grams and 8.7 grams of suspected heroin. Officers obtained a search warrant for the residence and found 46 grams of suspected heroin as well as drug paraphernalia. Mitchell admitted that he had given the passenger the baggies to conceal.
Mitchell pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on March 14, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00139.
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Davenport Uncle and Nephew Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – Two Davenport men, Donnie Spencer, age 70, and Rafiel Lee Owens, age 35, were sentenced on Monday, December 13, 2021 by United States District Court Judge Stephanie M. Rose. Spencer was sentenced to 300 months in prison for Conspiracy to Distribute Heroin and Crack Cocaine, Possession with Intent to Distribute Heroin and Crack Cocaine, and Felon in Possession of Ammunition. Spencer was ordered to serve four years of supervised release to follow his prison term and pay $300 to the Crime Victims’ Fund. Owens was sentenced to 212 months in prison for Conspiracy to Distribute Heroin and Crack Cocaine and Felon in Possession of a Firearm. Owens was ordered to serve four years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
Spencer and Owens were identified by law enforcement as participants in a conspiracy to distribute heroin and crack cocaine in June 2019 after a female suffered an opioid overdose at a hotel room where Owens was selling heroin. The investigation revealed Spencer was supplying his nephew Owens with drugs. Between June 2019 and December 2019, law enforcement executed several search warrants and recovered various controlled substances at Spencer and Owens’s residences, including heroin, heroin and fentanyl, crack cocaine, cocaine, and methamphetamine.
Spencer traveled to Chicago on a weekly basis to obtain heroin and crack cocaine and transported the drugs back to the Quad Cities. Spencer then supplied Owens, who then sold the drugs on Spencer’s behalf. Spencer also sold the drugs to his own customers. Over the course of approximately four years, Spencer was responsible for transporting and distributing approximately two kilograms of heroin and five kilograms of crack cocaine from Chicago to the Quad Cities.
In May of 2018, a 30-year-old female died from a drug overdose in Davenport after ingesting heroin, fentanyl, and methamphetamine provided to her by Owens. Testimony at the sentencing hearing revealed the night before she passed away, Spencer provided heroin to Owens who provided it to the female. She was found deceased the following morning.
In August of 2019, a 28-year-old female died in Rock Island, Illinois after ingesting a mixture of heroin and fentanyl provided to her by Owens. Testimony at the sentencing hearing revealed that Spencer tricked the female, who was not a heroin user, into consuming the heroin by telling her it was cocaine. Owens had obtained the heroin from Spencer earlier that day. The female was found dead the following morning.
Donnie Spencer was found guilty after a bench trial, presided by Judge Rose, on August 10, 2021. Rafiel Owens pleaded guilty to the charges on February 19, 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Scott County Sheriff’s Office investigated the case.
DC Man Sentenced for Multi-Kilogram Cocaine ConspiracyRead the Press Release
A Washington, DC man was sentenced yesterday to 70 months in prison for conspiring to distribute five kilograms or more of cocaine.
According to court documents, since at least July 2019, Marcelin Saturne, 33, was a source of supply for multi-kilogram quantities of cocaine. Saturne acknowledged that he was personally involved in the distribution of, or it being reasonably foreseeable to him that his co-conspirators distributed, at least 15 kilograms but less than 50 kilograms of cocaine. At one point, Saturne brought cocaine to the greater Washington, DC area through parcels shipped from California where his source of supply was located. Saturne sold his cocaine for approximately $34,000-35,000 per kilogram.
In May 2021, Saturne met a Drug Enforcement Administration (DEA) confidential source (CS) who represented himself to be a source for cocaine. Saturne advised the CS that he wanted to purchase 15 kilograms of cocaine from the CS. In June 2021, the CS advised Saturne that a shipment of cocaine would be arriving to the Washington, DC area soon. Saturne agreed to purchase 10 kilograms of cocaine from that shipment. Saturne was arrested after agreeing to purchase the requested cocaine and his residence was searched. Therein law enforcement located and seized approximately $35,640 in U.S. currency as well as high end jewelry valued at approximately $146,160.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the DEA Washington Field Division; and Michael L. Chapman, Loudoun County Sherriff, made the announcement after sentencing by U.S. District Judge Leonie M Brinkema.
Assistant U.S. Attorneys Bibeane Metsch and Michael BenAry prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No 1:21-cr-198.
Court Permanently Enjoins Three Vietnamese Residents from Continuing to Operate a Pandemic-Related Fraud SchemeRead the Press Release
A federal court in Florida permanently enjoined on Friday three residents of Vietnam from operating a pandemic-related scam that targeted American consumers, the Department of Justice announced.
In a complaint filed in August 2020 in the U.S. District Court for the Middle District of Florida, the government alleged that Thu Phan Dinh, Tran Khanh and Nguyen Duy Toan engaged in a wire fraud scheme designed to profit from the COVID-19 pandemic. According to the complaint, the defendants operated more than 300 websites that fraudulently purported to sell products in the United States that became scarce during the pandemic, including hand sanitizer and disinfectant wipes. Thousands of victims in all 50 states paid for items marketed through the websites, but received nothing. The complaint alleged that the defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to carry out the scheme and keep it hidden from law enforcement. The defendants also allegedly listed fraudulent contact addresses and phone numbers on the websites, which caused unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme.
After receiving information from American law enforcement, Vietnamese authorities conducted an investigation and arrested the defendants on local charges.
“Scams that take advantage of the global pandemic to prey on American consumers are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to working with law enforcement partners in the United States and around the globe to stop anyone who would try to profit through this kind of conduct.”
“The final injunction entered in this civil case sends a strong message of our district’s commitment to ensuring that fraudulent, predatory practices will be confronted in this critically important area,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We thank our partners at the Department of Justice’s Consumer Protection Branch, the Department of Homeland Security and Vietnamese law enforcement who assisted us throughout this effort.”
“HSI works tirelessly to disrupt and dismantle criminal networks around the world who are exploiting the global pandemic for their own personal financial gain,” said Special Agent in Charge John A. Condon of Homeland Security Investigations (HSI) Tampa. “This permanent injunction is the final step in ensuring these defendants can no longer take advantage of people.”
The civil enforcement action, filed in U.S. District Court in Tampa, Florida, is part of the Justice Department’s ongoing efforts to detect, investigate, and prosecute illegal conduct related to the pandemic. U.S. District Judge Kathryn Kimball Mizelle granted the government’s motion for a default judgment and issued the permanent injunction, which extends a preliminary injunction that halted defendants’ scam and shut down the fraudulent websites.
The action was brought based on an investigation conducted by U.S. Immigration and Customs Enforcement’s HSI, in coordination with the Vietnam Ministry of Public Security, Department of Foreign Relations and Hanoi Police.
The government was represented by Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch.
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 and efforts to stop COVID-19 fraud, 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.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Middle District of Florida, visit its website at www.justice.gov/usao-mdfl.
Court Permanently Enjoins Three Vietnamese Residents from Continuing to Operate a Pandemic-Related Fraud SchemeRead the Press Release
Tampa, FL – A federal court in Florida permanently enjoined on Friday three residents of Vietnam from operating a pandemic-related scam that targeted American consumers, the Department of Justice announced.
In a complaint filed in August 2020 in the U.S. District Court for the Middle District of Florida, the government alleged that Thu Phan Dinh, Tran Khanh and Nguyen Duy Toan engaged in a wire fraud scheme designed to profit from the COVID-19 pandemic. According to the complaint, the defendants operated more than 300 websites that fraudulently purported to sell products in the United States that became scarce during the pandemic, including hand sanitizer and disinfectant wipes. Thousands of victims in all 50 states paid for items marketed through the websites, but received nothing. The complaint alleged that the defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to carry out the scheme and keep it hidden from law enforcement. The defendants also allegedly listed fraudulent contact addresses and phone numbers on the websites, which caused unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme.
After receiving information from American law enforcement, Vietnamese authorities conducted an investigation and arrested the defendants on local charges.
“Scams that take advantage of the global pandemic to prey on American consumers are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to working with law enforcement partners in the United States and around the globe to stop anyone who would try to profit through this kind of conduct.”
“The final injunction entered in this civil case sends a strong message of our district’s commitment to ensuring that fraudulent, predatory practices will be confronted in this critically important area,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We thank our partners at the Department of Justice’s Consumer Protection Branch, the Department of Homeland Security and Vietnamese law enforcement who assisted us throughout this effort.”
“HSI works tirelessly to disrupt and dismantle criminal networks around the world who are exploiting the global pandemic for their own personal financial gain,” said Special Agent in Charge John A. Condon of Homeland Security Investigations (HSI) Tampa. “This permanent injunction is the final step in ensuring these defendants can no longer take advantage of people.”
The civil enforcement action, filed in U.S. District Court in Tampa, Florida, is part of the Justice Department’s ongoing efforts to detect, investigate, and prosecute illegal conduct related to the pandemic. U.S. District Judge Kathryn Kimball Mizelle granted the government’s motion for a default judgment and issued the permanent injunction, which extends a preliminary injunction that halted Defendants’ scam and shut down the fraudulent websites.
The action was brought based on an investigation conducted by HSI, in coordination with the Vietnam Ministry of Public Security, Department of Foreign Relations and Hanoi Police.
The government was represented by Assistant U.S. Attorney Carolyn B. Tapie of the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch.
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 and efforts to stop COVID-19 fraud, 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.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Middle District of Florida, visit its website at www.justice.gov/usao-mdfl.
Court Orders GirlsDoPorn and GirlsDoToys Video Rights and $18 Million in Restitution to VictimsRead the Press Release
NEWS RELEASE SUMMARY – December 15, 2021
SAN DIEGO – U.S. District Judge Janis L. Sammartino has ruled that all rights to videos and images produced in the GirlsDoPorn and GirlsDoToys sex trafficking case be awarded to the hundreds of victims who are featured in the footage posted to the adult websites.
Judge Sammartino issued the ruling as part of a restitution order in the prosecution of Ruben Andre Garcia, an adult film performer and producer who was sentenced to 20 years in prison for conspiring with the owners of the GirlsDoPorn (GDP) and GirlsDoToys (GDT) adult websites to recruit young women to appear in the sex videos using force, fraud, and coercion.
In addition to granting the rights to the videos and images to the victims, Judge Sammartino ordered Garcia to pay approximately $18 million in restitution to the victims.
To address the problem that hundreds of victims in this case have been and continue to be victimized by the posting and viewing of their GDP and GDT images and videos, Judge Sammartino outlined the following conditions:
- Garcia, aka “Jonathan,” has no right to use, publish, or otherwise exploit GirlsDoPorn (GDP) or GirlsDoToys (GDT) images, likenesses, or videos;
- All purported model releases and other agreements between GDP and/or GDT and its models purporting to give GDP and/or GDT the right to use, publish, or otherwise exploit its models’ images, likenesses, or videos are void and unenforceable;
- All transfers, licenses, or leases of the right to use, publish, or otherwise exploit the models’ images, likenesses, or videos by GDP and/or GDT to any third parties are void;
- Each model holds superior right, title, and interest in the images, likenesses, and videos depicting that model produced by GDP and/or GDT; and
- Each model shall have and recover all property that GDP and/or GDT took from them, including images, likenesses, videos, and copyrights.
“This is an extremely important ruling that returns power to the victims by giving them control of the images and videos that caused them so much pain and suffering,” said Acting U.S. Attorney Randy Grossman. “We hope this helps the victims close a difficult chapter in their lives.” Grossman thanked the prosecution team and the FBI for the relentless pursuit of justice in this case.
“An important step in this long healing process is for the victims to be able to take back control of their lives,” said FBI Special Agent in Charge Suzanne Turner. “This ruling helps to facilitate that shift while the FBI aggressively pursues the lone outstanding fugitive in this case - and its ringleader - Michael James Pratt.”
According to court documents, Garcia admitted that beginning in approximately 2013 and continuing up to October 2019, Michael James Pratt, Matthew Isaac Wolfe, Ruben Andre Garcia, Theodore Wilfred Gyi, Valerie Moser, and others, allegedly participated in a scheme to recruit victims to engage in commercial sex acts using force, fraud, and coercion.
To recruit victims to appear in videos for the websites, the defendants lied to the victims and told them that the videos would never be posted on-line, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the videos, representations that the defendants knew were false. Hundreds of women from cities throughout the United States and Canada were recruited to appear in videos based upon these material misrepresentations. The defendants illegally obtained the images and videos of the victims using force, fraud, and coercion.
The victims’ sex acts were posted on the GDP and GDT websites. GDP and GDT charged visitors a subscription fee to access the websites’ content. The GDP and GDT websites generated at least $17 million in revenue for its owners.
Throughout the conspiracy, GDP and GDT received millions of views. To promote the websites, video content from both sites was posted on free porn sites such as Pornhub.com, one of the world’s most visited websites. The snippets of videos from GDP and GDT posted on Pornhub.com were often viewed millions of times, according to Pornhub’s view counters.
The next hearing in the ongoing case is March 11, 2022, at 2 p.m. for motions as to defendant Mathew Wolfe, whose trial is slated to begin June 20, 2022.
Any victims seeking the right to enforce this order and any additional victims of these alleged crimes are encouraged to call the FBI at 1-800-CALL-FBI or go to https://tips.fbi.gov/
The FBI is offering a reward of up to $50,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.
For further information, please see:
- Wanted Poster: MICHAEL JAMES PRATT — FBI
- Press Release: FBI Seeking Public’s Assistance to Locate Michael James Pratt, Wanted for Sex Trafficking and Production of Child Pornography — FBI
DEFENDANTS Case Number 19cr4488-JLS
Michael James Pratt Age: 36 Fugitive
Matthew Isaac Wolfe Age 37 San Diego, CA
Theodore Gyi Age: 42 Rancho Aliso, CA**
Valorie Moser Age: 38 San Diego, CA**
SUMMARY OF CHARGES
Count 1 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Maximum Penalty: Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 2 (Pratt)
Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)
Maximum penalty: Thirty years in prison with mandatory minimum 15 years; $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 3 (Pratt)
Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)
Maximum penalty: Life in prison, mandatory minimum 15 years; $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594
Maximum penalty: Life in prison, mandatory minimum 15 years; $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
INVESTIGATING AGENCY
FBI
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Convicted Sex Offender Sentenced to 78 Months for Possession of Child PornographyRead the Press Release
EAST ST. LOUIS, Ill. – A Centralia man has been sentenced for his possession of child pornography.
Dakota Olson, 27, was sentenced on Tuesday, December 14, 2021, to 78 months in federal prison on one count of transportation of child pornography and one count of possession of child pornography.
According to court documents and statements made in federal court, Olson came to the attention of law enforcement based on a cyber tip that a Dropbox user had files containing child pornography.
Law enforcement discovered that between July 19, 2019, and February 13, 2020, Olson possessed over
1,500 images and over 150 videos of child pornography in his Dropbox account. Olson had received images and videos containing child sexual abuse material on the internet and organized them within his Dropbox account. Olson had previously been convicted of Criminal
Sexual Abuse and was required to register as a sex offender.As part of his sentence, Olson was ordered to serve a 5-year term of supervised release following his incarceration.
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.”The investigation was conducted by the Jefferson County Police Department and the Department of
Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Alexandria Burns.Columbus Man Convicted of Tampering with a Witness in a Federal Gun CaseRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a lengthy criminal history was sentenced to prison after he orchestrated others from jail to compel a witness in a separate federal case against him to make false statements.
Aubrey Crittenden aka Frog, 36, of Columbus, was sentenced to serve 56 months in prison to be followed by three years of supervised release by U.S. District Clay Land on Tuesday, Dec. 14, after he previously pleaded guilty to tampering with a witness. There is no parole in the federal system.
“It’s a highly serious criminal offense to attempt to interfere with the administration of justice by tampering with a witness,” said U.S. Attorney Peter D. Leary. “Our office will not hesitate to pursue lawful prosecution against those who threaten, coerce or otherwise wrongfully influence or tamper with a witness.”
According to court documents, Columbus Police Department (CPD) officers were patrolling the area of Pecan Street and Benner Avenue in Columbus, looking for Crittenden, who was a wanted person. A witness called 911 to alert CPD that Crittenden was on Pecan Street with a gun. Officers spotted Crittenden exiting from and standing by a car and after a brief foot chase, he was taken into custody. Crittenden had a loaded 9mm pistol in the car. Crittenden was indicted by a federal grand jury on Feb. 12, 2020 of possession of a firearm by a convicted felon and was detained pre-trial at the Lee County, Alabama, jail. While incarcerated, Crittenden made multiple jail calls, including between May 20, 2021 and June 9, 2021, coordinating with and directing individuals to draft an affidavit containing false statements and to pressure the witness who reported his whereabouts to police to sign it. The affidavit signed by the witness under duress was delivered to Crittenden’s attorney, and a trial was scheduled. Crittenden has a lengthy criminal history, including convictions for terroristic threats and theft by taking in Muscogee County, Georgia, Superior Court.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Christopher Williams prosecuted the case.
Colorado Man Charged with Assault on a Federal Officer in Rocky Mountain National ParkRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Daron Marquel Ellis has been charged by criminal complaint with assault on a federal officer by use of a deadly weapon in violation of Title 18, United States Code, Section 111(a)(1), (b). According to court documents, the alleged assault occurred on or about December 8, 2021, in Rocky Mountain National Park. Ellis made his initial appearance in Federal Court in Denver on Monday where he was advised by a Federal Magistrate Judge of the charge pending against him and ordered to remain in custody.
Assault on a federal officer by use of a deadly weapon carries a potential penalty of up to 20 years in prison and/or a fine of up to $250,000.
Assistant United States Attorney Laura Cramer-Babycz is handling the prosecution.
The charge in the criminal complaint is an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Case Number: 21-mj-0204
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Clayton, NC Resident Sentenced for Conspiring to Defraud the North Carolina Medicaid SystemRead the Press Release
NEW BERN, N.C. – A Clayton, North Carolina man, Luis Angel Lozada, was sentenced today to 70 months in prison and three years of supervised release for conspiracy to commit health care fraud. On September 18, 2020, Lozada pleaded guilty to the charge. As part of sentencing, Lozada was also ordered to pay $1,130,137 in criminal restitution to the North Carolina Fund for Medical Assistance.
According to court documents and other information presented in court, between 2016 and 2020, Lozada conspired with multiple individuals to defraud the North Carolina Medicaid system by submitting over $1 million in false and fraudulent claims for the reimbursement of behavioral health services. Medicaid is a federally funded health care benefit program that helps pay for medical-related services for low-income individuals and their families. In North Carolina, Medicaid is administered by the North Carolina Department of Health and Human Services, Division of Health Benefits.
In March 2016, Lozada formed a behavioral health business in North Carolina known as Cornerstone Family Services Group (“Cornerstone”). Cornerstone was headquartered in Zebulon initially and later opened offices elsewhere in the district. Cornerstone submitted high-volume Medicaid claims for services that were never rendered; the false claims relied on stolen beneficiary and clinician information that was incorporated into the fraudulent billings. Between 2016 and 2017, for example, Lozada partnered with co-conspirators Reginald Van Reese, Jr., and Ruben Samuel Matos to source and integrate the stolen Medicaid beneficiary data into Cornerstone’s billings. The beneficiary information, in turn, was used to back-bill Medicaid for the maximum number of units allowed, notwithstanding the fact that the beneficiary had never been treated by Cornerstone. Another co-conspirator, Humberto Mercado, was recruited to fabricate treatment records and began to do so before the first billings were submitted to Medicaid.
Reese, Matos, and Mercado each pleaded guilty to conspiracy to commit health care fraud in separate related cases. Mercado was sentenced today to 15 months imprisonment, three years of supervised release, and restitution in the amount of $494,688. Reese and Matos were previously sentenced.
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge Louise W. Flanagan. The Federal Bureau of Investigation and the North Carolina Medicaid Investigations Division investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-340-FL.
Centralia Man Pleads Guilty to Felony Gun PossessionRead the Press Release
EAST ST. LOUIS, Ill. – Chris Jamison, 18, of Centralia, Illinois, entered a plea of guilty to one count of felon in possession of a firearm in federal court in East St. Louis, Illinois, on Tuesday, December 14, 2021.
According to court documents, Mr. Jamison admitted possessing a Smith and Wesson handgun after having been previously convicted of Aggravated Discharge of a Firearm at an Occupied
Vehicle in Marion County, Illinois, Circuit Court, case number 20-CF-120. Jamison was on probation for this offense when he was found with another firearm on March 1, 2021. Law enforcement officials utilized DNA testing to establish Jamison’s possession of the firearm.Jamison is scheduled to be sentenced on March 24, 2022 at 1:30 p.m. and faces a maximum penalty of
10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.This case was investigated by the FBI’s Safe Streets Task Force that focuses enforcement efforts in
Centralia, Marion County, Illinois. The FBI Safe Streets Task Force consists of members of the
FBI, Centralia Police Department, Marion County Sheriff’s Office, and the Illinois State
Police.
The case was prosecuted by Assistant United States Attorney Jennifer Hudson.Centennial Man Sentenced to Federal Prison for COVID-related FraudsRead the Press Release
The U.S. Attorney’s Office for the District of Colorado announces that Anthony Zaghab, age 52, of Centennial, Colorado, was sentenced to 30 months in federal prison for wire fraud based on his submission of numerous false applications for COVID-related relief funds. Zaghab was also ordered to pay $708,141 in restitution.
According to the plea agreement, beginning in April 2020, and continuing until early February of 2021, Zaghab knowingly engaged in a scheme to defraud the United States, the State of Colorado, and a bank to obtain pandemic-relief funds to which he was not entitled. He did this by submitting false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration and to a bank. From these SBA programs, Zaghab obtained $666,630. He also sought and obtained $41,511 in Pandemic Unemployment Insurance payments from the State of Colorado for ineligible family members.
With respect to the false EIDL applications, Zaghab falsely stated the number of employees, the purported gross revenues, and the purported cost of goods sold for certain business entities under his name. Zaghab also applied for and attempted to obtain EIDLs on behalf of fictitious or purported business entities created in the names of his family members without the knowledge or consent of these family members. Zaghab falsely represented that the funds would be used to pay payroll and other permissible expenses when, in fact, Zaghab used the majority of these proceeds for his personal benefit.
In addition to the fraudulent EIDL applications, Zaghab submitted four fraudulent PPP loan applications to a bank. All four PPP loan applications were approved and funded. In these applications, Zaghab falsely represented when the alleged businesses had been established and the monthly payroll for each fictitious entity. Zaghab obtained a total of $83,330 in PPP loan proceeds based on these false representations, which he used for his own personal benefit instead of to pay permissible expenses, like payroll.
Zaghab also applied for and obtained approximately $41,511 in Colorado Pandemic Unemployment Assistance (PUA) for ineligible family members without their knowledge and consent. Specifically, in April 2020, Zaghab applied for and obtained PUA for his sister and his mother, both of whom resided outside of the United States. Zaghab submitted these applications without the knowledge of his sister or mother and used the money for his own personal benefit. In or around April 2020, Zaghab also applied for and obtained PUA for his father who is and was deceased at the time of the application.
“Pandemic-relief funds were supposed to be used to save small businesses and to support individuals devastated by COVID-19,” said United States Attorney Cole Finegan. “Together with our law enforcement partners, we are holding criminals accountable for stealing from the generosity of the American taxpayer.”
“This prison sentence and restitution order should serve as a strong deterrent against COVID-19 related fraud,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “We will vigorously pursue anyone stealing from government aid programs intended for struggling small businesses and families. I want to thank the U.S. Attorney’s Office and our pandemic fraud task force partners for their continued dedication to protecting America’s financial infrastructure.”
“Today’s sentencing in the Zaghad fraud case is an example of how the statewide task force we set up earlier this year is working. With our state and federal partners, we are investigating and going after those who committed fraud against the state’s unemployment insurance program and the identity theft that has affected thousands of Coloradans during the pandemic. Our work continues, and when wrongdoers can be identified, we’ll hold them accountable,” said Colorado Attorney General Phil Weiser.
"Program integrity has and will continue to be a focus of the Unemployment Insurance division, ensuring that those who engage in fraud within the program are brought to justice and stolen funds recovered" said Phil Spesshardt, Colorado Unemployment Insurance Division Director.
United States District Court Judge R. Brooke Jackson sentenced Zaghab on December 15, 2021.
The United States Secret Service and the Colorado Department of Labor and Enforcement conducted the investigation. Assistant United States Attorneys Martha A. Paluch and Rebecca S. Weber handled the prosecution of the case.
Case number: 21-cr-0188
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California Parent Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – The owner of a warehousing company for the shipping industry pleaded guilty today in federal court in Boston in connection with his involvement in the college admissions case.
I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., pleaded guilty to one count of wire fraud and honest services wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 20, 2022. Chen was previously scheduled for trial on Jan. 13, 2022.
Chen admitted to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer $75,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct Chen’s son’s ACT exam answers to obtain a fraudulently inflated score.
Singer, Dvorskiy and Riddell have pleaded guilty for their respective roles in the scheme.
Under the terms of the plea agreement, the defendant has agreed to a sentence, subject to the Court’s approval, of nine weeks in prison, one year of supervised release with 100 hours of community service and a fine of $75,000.
Chen is the 38th, and final parent, in the case involving Singer’s exam cheating and athletic recruitment scheme, to either plead guilty or be convicted by a jury following trial.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
California Man Gets Life Sentence for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. - A California man was sentenced to life in prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, following an investigation that began with the July 24, 2019, seizure of 12 pounds of methamphetamine in Pascagoula, Sharard Collier, 44, of Inglewood, CA, was arrested on November 4, 2019, at a home in Pass Christian where law enforcement found 24 kilos of methamphetamine and close to a kilo of fentanyl.
Surveillance had followed Collier when he met with co-defendant Gerald Wayne Jones, of Mobile, AL, at a truck stop. A semi-truck owned by the two was searched and contained an additional 28 kilos of methamphetamine. Subsequent lab results showed the methamphetamine had purity levels of 99% and 100%. The investigation revealed Collier had been supplying narcotics traffickers on the Gulf Coast for years.
Collier was indicted on November 19, 2019, for conspiracy to possess with intent to distribute methamphetamine. He pled guilty on December 2, 2020. Collier’s co-defendant Aaron Whavers, of Pass Christian, pled guilty and was sentenced to 292 months in prison. Gerald Wayne Jones pled guilty and was sentenced to 120 months in prison.
“According to the Drug Enforcement Administration, two milligrams of fentanyl can be lethal depending on a person’s body size, tolerance and past usage,” said U.S. Attorney Darren LaMarca. “This defendant possessed with the intent to distribute enough fentanyl to kill 500,000 people. We will never know the number of overdoses he caused when he combined this killer with methamphetamine. But, what we do know is he won’t do it again.”
FBI Special Agent in Charge Jermicha Fomby stated: “The FBI Safe Streets Task Force and our partnering agencies forged this team to investigate criminal enterprises operating within our communities. The tireless efforts of law enforcement and the sentence handed down today reflect the determination with which we are combating and deterring the distribution of illegal, potentially deadly, narcotics. In this case, the severity of the sentence matches the seriousness of the crime.”
The FBI Safe Streets Task Force, which is comprised of members from the FBI, Mississippi Bureau of Narcotics (MBN), Jackson County Sheriff's Office, Pascagoula Police Department, Ocean Springs Police Department, Gautier Police Department, and Moss Point Police Department, investigated the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
This OCDETF case is the result of an extensive investigation targeting illegal narcotics distribution in Mississippi.
Assistant U.S. Attorney Annette Williams prosecuted the case.
Bloods Gang Members Plead Guilty to RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Dylan Cruz and Richard Michel, members of the Red Lane Gorillas set of the Bloods street gang, pleaded guilty before United States District Judge Joanna Seybert to racketeering charges. Cruz admitted his roles in two murders committed on Long Island, an attempted murder and conspiring to murder rival gang members in Brooklyn. Michel admitted his role in a murder committed with Cruz, a kidnapping and an attempted murder of a disloyal Bloods member. When sentenced, Cruz and Michel each face a maximum sentence of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“With today’s guilty pleas, the defendants have admitted their involvement in a slew of senseless violent crimes, including murders, committed in furtherance of a criminal enterprise, the Bloods gang,” stated United States Attorney Peace. “This Office, along with its federal and state law enforcement partners, will continue its unrelenting efforts to eradicate gang violence in the district and hold accountable all those who threaten the safety and well-being of our communities.”
According to court filings and statements made by the defendants at the guilty plea proceedings, Cruz and Michel, along with other members of the Red Lane Gorillas engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn. Additionally, Cruz and Michel engaged in extreme violence against anyone suspected of disloyalty or disrespecting their gang.
Cruz and Michel admitted their roles in the July 15, 2012 murder of Anthony Richard, an individual that they wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang. Cruz and Michel, together with fellow gang members and associates to locate the victim, obtained a firearm, and followed the victim’s vehicle to Baldwin Harbor, New York. When Richard victim parked his vehicle, Cruz exited the vehicle he was travelling in, walked up to the victim’s car and fired approximately 15 shots into the victim’s vehicle at close range. Richard was killed and a passenger in the vehicle was wounded. In addition, Cruz admitted to November 17, 2010 shooting of a rival gang member in Roosevelt, New York, as well as conspiring to kill members of the 5-9 Brims, including the February 20, 2016 shooting of a rival gang member in Queens, New York. Michel also admitted to the October 13, 2011 kidnapping and assault of a gang member in Hempstead, New York and the September 9, 2016 attempted murder of a disloyal fellow Bloods member in Uniondale, New York.
Cruz also admitted to committing the October 15, 2014 murder of Ehrik Williams in Hempstead, New York. Cruz wrongly believed that Williams was the individual who had robbed an associate of the defendant. Cruz walked up behind Williams in broad daylight and fired multiple shots at him, killing him.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Michael Maffei and Oren Gleich are in charge of the prosecution.
The Defendants:
DYLAN CRUZ (also known as “L Banga” and “Red Lane Banga”)
Age: 30
Brooklyn, New YorkRiCHARD MICHEL (also known as “G-Light” and “Gangsta Light”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-664 (S-1) and (S-3) (JS)
Baltimore Woman Facing Federal Indictment for Allegedly Obtaining More Than $1.6 Million in Federal Funds Intended to Relieve Financial Distress Caused by the Covid-19 PandemicRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Nichelle Henson, age 35, of Baltimore, Maryland, for false statements and bank fraud in connection with fraudulent applications Henson allegedly filed to obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in the names of multiple businesses. The indictment was returned on December 7, 2021 and unsealed today. Henson will have her initial appearance virtually on Thursday, December 16, 2021, at 2:15 p.m., before U.S. Magistrate Judge A. David Copperthite.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Brian D. Miller, Special Inspector General for Pandemic Recovery (SIGPR).
“It is reprehensible that fraudsters try to take advantage of this global pandemic to line their own pockets,” said United States Attorney Erek L. Barron. “As charged in the indictment unsealed today, Nichelle Henson allegedly fraudulently obtained more than $1.6 million in federal funds at the expense of honest business owners who were actually experiencing financial distress as a result of COVID-19. The U.S. Attorney’s Office and our law enforcement partners are committed to investigating, stopping, and prosecuting these crimes.”
“We are pleased that SIGPR is getting results for the Pandemic Response Accountability Committee (PRAC) Task Force,” said Brian D. Miller, Special Inspector General for Pandemic Recovery.
According to the 18-count indictment, Henson incorporated businesses with the State of Maryland, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC, and Peace of Mind Services Inc. Henson often opened bank accounts in the names of businesses she incorporated and obtained Tax Identification Numbers (TINs) from the IRS for the businesses. In tax year 2019, Crowns Construction, LLC; Nichelle Henson Campaign, LLC; Your Friendly Tax Preparation Services, LLC; and Peace of Mind Services, Inc. and Women Entrepreneurs Can Succeed LLC, had no employees. Henson filed forms with the IRS for tax year 2019 indicating that One Stop For Services LLC had three employees, but no forms indicating the required taxes were withheld or deposited with the IRS for those employees.
The indictment alleges that beginning in April 2020, Henson filed fraudulent applications on behalf of her businesses through the EIDL and PPP programs, which were intended to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
Specifically, the indictment alleges that Henson made false statements on six fraudulent applications filed on the Small Business Administration’s website to obtain EIDL grants. Henson allegedly obtained a total of $18,000 for two of the applications, but the remaining four application were declined. As detailed in the indictment, Henson’s alleged false statements included that the businesses had between five and fourteen employees, had gross revenue of at least $36,000 and up to more than $1.3 million, and that the cost of goods sold was between $13,000 and $700,000 for the various businesses.
The indictment alleges that Henson also submitted six fraudulent applications to obtain a total of $998,590 in loans under the PPP program. The applications allegedly contained false statements, misrepresentations and omissions related to her purported businesses including their existence, address, payroll expense, and number of employees. Henson allegedly opened bank accounts specifically to receive PPP funds, did not disclose that she had incorporated other businesses, and falsely promised to spend PPP funds on allowable expenses, such as payroll, business rent and business utilities. In fact, the indictment alleges that Henson used the funds on personal expenses such as personal plastic surgery, home renovations for herself and relatives, rent and utilities for personal residences, and family expenses.
As detailed in the indictment, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act), which was part of the Consolidated Appropriations Act, 2021 package, extended the Paycheck Protection Program (PPP) to include a second round of funding to certain businesses that received funding under the original PPP, referred to as “Second Draw PPP Loans.”
Henson filed six PPP Second Draw Borrower applications, again allegedly including false statements and misrepresentations as to her businesses, number of employees, that the initial PPP loan was used to pay allowable expenses, and including fraudulent documentation, such as IRS forms that had never been filed with the IRS. As a result, the indictment alleges that Henson attempted to obtain $818,750 in Second Draw PPP loans and actually received $676,250.
Further, the indictment seeks the forfeiture of any proceeds obtained as a result of the crime, including $678,073.82 seized during the investigation from six bank accounts in the names of some of Henson’s businesses, as well as a money judgment in the amount of proceeds obtained as a result of the scheme to defraud.
If convicted, Henson faces a maximum sentence of 30 years in federal prison for each of the 12 counts of bank fraud and a maximum of five years in federal prison for each of the six counts of making a false statement. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
United States Attorney Erek L. Barron commended the FBI and the Office of the Special Inspector General for Pandemic Recovery, which conducted the investigation on behalf of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Augusta man convicted of multi-million-dollar scheme to defraud a mortgage lenderRead the Press Release
AUGUSTA, GA: An Augusta man has been convicted of fraud by a federal jury who found he committed fraud when he borrowed nearly $3 million to refinance an Augusta apartment complex, and then filed for bankruptcy protection when facing foreclosure.
Jerome Walter Kiggundu, 37, the registered agent and managing member of Nakaddu LLC, a/k/a Kiggun Properties LLC, was found guilty after a two-day trial in U.S. District Court on charges of Bank Fraud, Bankruptcy Fraud, and False Statements Under Oath, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Kiggundu faces a sentence of up to 30 years in prison along with substantial fines and restitution, followed by a period of supervised release.
There is no parole in the federal system.
“Jerome Kiggundu spun a web of financial lies to obtain a loan for millions of dollars, and then compounded those falsehoods by committing bankruptcy fraud and lying under oath when he was confronted about it,” said U.S. Attorney Estes. “Thanks to exceptional investigative work from the FBI and the alertness of the employees at the United States Trustees Program, the jury saw through his fraud and is holding him accountable.”
As spelled out during the trial before U.S. District Court Chief Judge J. Randal Hall, Kiggundu borrowed $2,831,250 from a mortgage lender in March 2019 by submitting fraudulent bank statements to falsely claim that his company had an average monthly operating balance of approximately $100,000. In truth, his account had an average of approximately $500 during this period. Kiggundu also submitted a false personal financial statement overstating his net worth and assets to qualify for the loan.
When the scheme started to unravel, Kiggundu filed for bankruptcy protection under Chapter 11 in an attempt to avoid foreclosure by the lender. Kiggundu then doubled down on his scheme and submitted another set of fake bank statements in his bankruptcy to conceal his bank fraud and cover his tracks. He also lied under oath about his finances when questioned by employees of the United States Trustee Program who suspected this fraud.
“No matter how elaborate or complicated the fraud scheme, the FBI will work to uncover it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Kiggundu will now be held accountable for the damage he has done, sending a strong message to anyone considering such fraud that it is a serious crime with serious consequences.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Patrick J. Schwedler and Jennifer A. Stanley.
Armed Career Criminal Sentenced to 15 Years for Possessing a Firearm on the Outer BanksRead the Press Release
NEW BERN, N.C. – An Elizabeth City man was sentenced today to 180 months in prison as an Armed Career Criminal after being found with a stolen firearm in Kill Devil Hills, NC. On June 8, 2021, Deangelo Maurice Joyner pled guilty to felon in possession of a firearm in connection with the case.
According to court documents and other information presented in court, Joyner, 46, was involved in a hit-and-run accident in Dare County. Deputies from the Dare County Sheriff’s Office with assistance by the Kill Devil Hills Police Department quickly located Joyner driving the truck involved in the accident and conducted a traffic stop on the vehicle. After deputies saw an open container of alcohol and suspected drug paraphernalia on the passenger seat of the truck, Joyner was removed from the vehicle. After a search of his person, deputies located a 9mm handgun with an extended magazine loaded with ammunition in his waistband. The gun had been reported stolen from Currituck County.
Joyner has many prior violent felony convictions, making him an Armed Career Criminal under federal law, including: Robbery by Force, Use of a Firearm in the Commission of a Felony, Robbery, and Robbery with a Dangerous Weapon. He also has prior convictions for Felony Attempted Grand Larceny from the Person, Fleeing or Eluding Arrest with a Motor Vehicle, Reckless Driving, and DUI.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Dare County Sheriff’s Office and the Kill Devil Hills Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-CR-00011-FL.
Albuquerque man appears in court on bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Angel Lara, 33, of Albuquerque, appeared in federal court on Dec. 14 for a preliminary and detention hearing on a charge of attempted bank robbery. Lara will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Nov. 30, Lara allegedly entered a Wells Fargo Bank in Albuquerque and presented a demand note to a teller. The note included instructions to alert the media. The teller pressed an alarm button. As Lara was approached by security, Lara allegedly kept his hand in his jacket pocket and claimed to have a firearm. Police later arrived at the bank, negotiated with Lara, and took him into custody.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Lara faces up to 20 years in prison.
The FBI Violent Crimes and Gangs Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Additional defendants charged with trafficking young girls for sexRead the Press Release
HOUSTON – Three more people have been indicted and additional charges filed in human trafficking conspiracy involving young runaway girls on what it known as the “Blade,” announced Acting U.S. Attorney Jennifer B. Lowery
Law enforcement arrested Chantel Deshay Collins, 28, Houston, and Asia Monae Hailey aka Momo, 21, Galveston, this morning. They are expected to appear for an initial appearance tomorrow before U.S. Magistrate Andrew Edison. Michael Gonzalez aka Mumbles, 21, Houston, is currently in Harris County jail on other charges and is expected to be transferred to federal court to answer these charges by the end of the week.
Also charged are Clarence Chambers aka Chris aka Crazzi Chris, 29, Javon Opoku aka Glizzy, 20, Damarquis McGee aka Lil Blue, 23, Jerreck Hilliard, aka JMoney, Vanessa Sillabi aka Chocolate, 21, and Andres Portillo aka Andro, 20. They are also expected to appear on the new charges in the superseding indictment Dec. 23 before Judge Edison.
The defendants are charged with trafficking young runaway girls on what it known as the “Blade” or the Bissonnet Track. This is an area near Southwest 59 Freeway and Bissonnet Street in Houston where traffickers commonly place their victims, according to the charges.
In addition to the sex trafficking allegations, the superseding indictment includes new charges against many for kidnapping, sexual exploitation of a child, attempted obstruction of justice and attempted coercion/enticement of a child.
According to the superseding indictment, the defendants worked to recruit underage teenage girls and forced them to engage in sex acts for money in cars and hotels around the Blade. They allegedly passed around or reassigned victims amongst one another, taught each other “the pimp game” and required the young girls to walk the Blade and sell their bodies. They also kept the proceeds, according to the charges.
The superseding indictment further alleges if any of the girls wanted to switch between pimps, they would have to pay an exit fee or get “beat out” to do so. In one instance, a minor girl had allegedly wandered onto a rival pimp’s territory. The charges allege she was kidnapped and raped as a consequence.
Some of those charged also required daily quotas each night from their victims, according to the charges. The superseding indictment further alleges if the girls failed to meet their daily quotas, they were severely punished through beatings and humiliation. In some cases, pimps allegedly instructed other females to carry out these beatings as punishment. At other times, some defendants worked with the pimps to help harbor, manage, maintain, transport or collect sex trafficking proceeds from the minor victims, according to the charges.
If convicted, they all could face up to life in prison.
The Houston Police Department initiated the investigation and later partnered with Homeland Security Investigations and the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard Bennett and Kate Suh are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law .Acting United States Attorney Announces Dilworth, MN, Man Sentenced to Federal Prison for Violent Gang RobberiesRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced that on December 13, 2021, U.S. District Court Chief Judge Peter D. Welte sentenced Josiah Thomas Aguilar, age 21, Dilworth, MN, to 100 months in federal prison for two counts of Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting. Chief Judge Welte also sentenced Aguilar to 3 years supervised release and a $400 Special Assessment.
It is alleged that from January 2019 through May 2019, Abbot Aho, led a criminal gang known as the "Slither Gang," members of which conspired with Aho and other individuals to target robbery victims who were themselves alleged drug traffickers in North Dakota, Minnesota, and elsewhere. Aguilar and the co-conspirator gang members carried out a string of robberies by threats of violence, the infliction of violence, and the brandishing of firearms and other dangerous weapons. Aguilar and the co-conspirators often resorted to home invasions or setting up victims to meet at a public place, and then robbed them of drugs, money, firearms and personal property, later selling the drugs they stole.
"The defendants engaged in a string of vicious and violent attacks, including multiple armed robberies" said Acting US Attorney Nicholas W. Chase, and "The US Attorney’s Office is committed to targeting these most violent offenders for federal prosecution and we commend the outstanding work of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and our local and state law enforcement partners for their steadfast commitment to identifying and investigating prolific violent criminal organizations, enforcing the law, and protecting our communities from acts of violence."
"ATF is committed to working with our local, state and federal partners to remove violent offenders from our communities, regardless of who the offenders target in their crimes," said ATF Special Agent in Charge William McCrary, of the St. Paul Field Division. "The acts these individuals committed were dangerous and could have easily caused injury or death to innocent bystanders. We simply cannot allow illegal guns, drugs, and armed violent gang members to plague our neighborhoods. We are grateful for the tireless efforts of the U.S. Attorney’s Office in their successful prosecutions which disrupted and dismantled this criminal enterprise."
In addition to numerous similar though unrelated federal prosecutions across the state as a part of this initiative, several of Aguilar’s co-conspirators have also been indicted in North Dakota and are awaiting trial and/or have been sentenced for their involvement in the violent robberies:
• Cory Carlson, age 24, Robbinsdale, MN: Sentenced on December 9, 2021, to 100 months in federal prison and 3 years supervised release for the charges of Interference with Commerce by Threats and Violence – Hobbs Act Robbery and Use of a Firearm During and in Relation to a Crime of Violence.
• Sarah Ann Carlson, age 21, Minneapolis, MN: Sentenced on July 19, 2021, to 80 months imprisonment and 3 years supervised release for the charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; and Aiding and Abetting.
• Jared Christopher Kaul, age 21, Fridley, MN: Sentenced on December 8, 2021, to 32 months in federal prison and 3 years supervised release for the charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances.
• Nicholas Dakota May, age 22, Fargo ND: Sentenced on November 23, 2021 to 28 months imprisonment and 3 years supervised release for the charges of Interference with Commerce by Threats and Violence – Hobbs Act Robbery and Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances.
• Shelby Lynn Dallman, age 23, Faribault, MN: Sentenced on August 23, 2021 to 24 months imprisonment and 3 years supervised release for the charge of Interference with Commerce by Threats and Violence – Hobbs Act Robbery.
• Abbot William Aho, a/k/a Boogie, age 26, Fergus Falls, MN: Indicted on the charges of Continuing Criminal Enterprise, Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting. Mr. Aho is pending trial; Grand Jury Indictments are allegations and are not evidence of guilt. Mr. Aho is presumed innocent unless and until he is proven guilty beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Fergus Falls MN Police Department; and the Ottertail County Attorney’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Chris C. Myers assigned to the case.
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Absconded human smuggler receives more time for possessing firearmsRead the Press Release
McALLEN, Texas – A 30-year-old Rio Grande City resident has been ordered to federal prison for possessing multiple firearms and hundreds of rounds of ammunition, announced Acting U.S. Attorney Jennifer B. Lowery.
Victor Aleman Jr. had been sentenced for another crime but did not report to prison as ordered. He was then found and charged with being a felon in possession of a firearm. He pleaded guilty Sept. 28.
Today, District Judge Michaela Alvarez sentenced him to serve 40 months in federal prison for the firearms charge to be served consecutively to the previous 18 months on the human transporting conviction. The total 58-month prison term will be immediately followed by three years of supervised release. In handing down the sentence, the court noted the number of firearms involved in the case and how it is especially important that individuals abide by laws that relate to the safety of the public. Judge Alvarez also emphasized how Aleman was on pre-trial release for the human-smuggling case and that possessing the firearms throughout both that time and his post-sentencing release was in violation of the court’s orders and the law.
In April, Judge Alvarez had sentenced Aleman for transporting aliens within the United States. At sentencing, Judge Alvarez ordered Aleman to voluntarily surrender to the U.S. Marshals Service (USMS), but he failed to do so.
Authorities were able to locate him and took him into custody. At that time, they conducted a search of his residence and recreational vehicle and found two assault rifles, a handgun, more than 200 rounds of ammunition and four high-capacity AR-15 magazines.
Aleman admitted he owned the firearms and placed the handgun in the bedroom drawer because he loved the gun.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Lee A. Fry prosecuted the case.
14 December 2021
Wheeling Woman Charged with Stealing Mail while Employed by U.S. Postal ServiceRead the Press Release
PITTSBURGH - One resident of Wheeling, West Virginia, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal Postal laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Cheryl L. Edgell, age 37, as the sole defendant.
According to the Indictment, on April 14, 2021, Edgell engaged in theft of mail matter while employed by the United States Postal Service.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000, a term of supervised release of not more than three years, 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.
The United States Postal Service Office of Inspector General 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.
Note: The docket for this prosecution indicates that the defendant successfully completed Pretrial Diversion, resulting in the dismissal of this charge on March 26, 2025.
Wausau Man Sentenced to 12 Years for Dealing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jacob A. Willox, 28, Wausau, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 12 years in federal prison for distributing 50 grams or more of methamphetamine and for possessing methamphetamine with intent to distribute. This prison term will be followed by 5 years of supervised release.
In May 2020, a confidential informant purchased three ounces of methamphetamine from Willox in Wausau after Willox indicated he had 12 ounces of methamphetamine for sale. Then, in October 2020, officers arrested Willox at a residence where he attempted to flush additional methamphetamine down a sink. Officers were able to recover some of that methamphetamine. They also found nearly $30,000 in drug proceeds, a drug ledger, a firearm magazine, and brass knuckles at the residence.
Further investigation revealed Willox was responsible for selling multiple pounds of methamphetamine throughout the Wausau area, and regularly possessed firearms during his drug deals. Willox was prohibited from legally possessing firearms as the result of prior felony convictions.
At sentencing, Judge Conley noted that Willox’s crimes contributed to the bigger issue of methamphetamine addiction in the community, and that his possession of firearms while dealing posed an additional danger. Judge Conley reasoned that a sentence of 12 years was appropriate to protect the community and offer rehabilitation to Willox, who has a history of drug addiction.
The charges against Willox were the result of an investigation conducted by the Central Wisconsin Narcotics Task Force and the Drug Enforcement Administration. Assistant U.S. Attorneys Robert A. Anderson and Taylor L. Kraus prosecuted this case.
Virginia Tax Preparer Sentenced to Prison for False ReturnsRead the Press Release
A Virginia man was sentenced today to 38 months in prison for preparing false tax returns on behalf of clients, theft of government funds, and failing to file his own federal income tax returns.
According to court documents and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey (aka Carl L. Burden), 66, of Hampton, created false tax returns for clients of his Hampton tax preparation business. On his clients’ returns, Burden-El Bey claimed false dependent information, residential energy credits, gifts to charity, deductions, and child and dependent care expenses, all to inflate his clients’ refunds from the IRS. As trial evidence showed, Burden-El Bey often concealed his involvement by not signing such false returns as the tax preparer. He also stole $5,000 by directing without authorization a portion of one client’s refund into his personal bank account. Even though he earned income as a tax preparer that exceeded the minimum filing threshold, from 2013 through 2017 Burden-El Bey did not file his own individual income tax returns with the IRS.
In addition to the term of imprisonment, U.S. District Judge David J. Novak ordered Burden-El Bey to serve three years of supervised release and pay approximately $5,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Grace Albinson and Francesca Bartolomey of the Justice Department’s Tax Division and Assistant U.S. Attorneys Brian Samuels and Lisa McKeel of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
Union County Man Charged with Unlawful Firearm PossessionRead the Press Release
NEWARK, N.J. – A Union County man made his initial appearance on a charge of possession of a firearm by a convicted felon, Acting U.S. Attorney Rachael A. Honig announced today.
Miguel Aviles, aka “Ricardo Bermudez,” 47, of Elizabeth, New Jersey, is charged by complaint with possessing a firearm after having been convicted of a felony. Aviles made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on Dec. 13, 2021 and was detained without bond.
According to documents filed in this case and statements made in court:
On Aug. 27, 2021, two victims reported to Elizabeth police that Aviles had pointed a gun at them, threatened to shoot them, and then fired the weapon, all inside the victims’ residence. Two other occupants of the residence confirmed hearing the shot.
The charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Elizabeth Police Department with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Men Sentenced to Prison for Receiving over $600,000 in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
CAMDEN, N.J. – Two Indian nationals were sentenced to prison today for their roles in a conspiracy to commit wire fraud by accepting illegally obtained wire transfers from victims across the country totaling over $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Zeeshan Khan, 22, and Maaz Ahmed Shamsi, 24, were each sentenced today to 27 months in prison by U.S. District Judge Joseph Rodriguez in Camden federal court. The defendants previously pleaded guilty before Judge Rodriguez to an information charging each with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, India-based call centers utilized automated robocalls to victims with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including Shamsi and Khan. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or Drug Enforcement Administration, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victims they were speaking with someone from a tech support company and coercing the victims into granting the caller remote access to their personal computers, and through that, to the victims’ bank accounts. By manipulating the victims’ bank accounts, the caller would convince the victims that an overpayment was made to the victims and ultimately instruct them to send money by way of mail or wire transfer to other members of the conspiracy, including Shamsi and Khan.
As part of this scheme, Shamsi and Khan are charged with receiving fraudulent wire transfers from 19 victims across the country totaling approximately $618,000.
In addition to the prison terms, Judge Rodriguez sentenced Shamsi and Khan to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Social Security Administration, Office of the Inspector General Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the Department of Homeland Security, Homeland Security Investigations New York Field Office – El Dorado Task Force, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Two Kankakee Men Sentenced in Separate Child Enticement CasesRead the Press Release
URBANA, Ill. – Two Kankakee, Illinois, men were sentenced on December 13, 2021, in separate child enticement cases. They were Kyren Williams, 31, of the 1000 block of S. Osborn Ave., and Jazzie Simmons, 30, of the 200 block of Greenwood Ave.
Senior U.S. District Judge Michael Mihm sentenced Simmons to 87 months’ imprisonment, to be followed by eight years of supervised release. Simmons pleaded guilty in August 2021 to one count of attempted enticement of a minor.
Judge Mihm sentenced Williams to 120 months’ imprisonment, to be followed by eight years of supervised release. Williams pleaded guilty in July 2021 to one count of attempted enticement of a minor and one count of attempted sexual exploitation of a child.
Previously, in March 2020, a federal grand jury had charged each of the men by indictment following their February 2020 arrests pursuant to criminal complaints. Also in February, U.S. Magistrate Judge Eric I. Long ordered that the men be detained pending trial. They have remained in the custody of the U.S. Marshals Service since their arrests.
“This operation and other similar ones show our continued commitment, along with the FBI and our other law enforcement partners, to uncover and prosecute sexual predators,” said U.S. Attorney Gregory K. Harris. “Parents and other care givers need to continually monitor their children’s electronic communications to protect them from such offenders.”
“The online environment can be a dangerous place,” said David Nanz, Special Agent in Charge of the Federal Bureau of Investigation's Springfield Office. “That’s why the FBI will never give up the exhaustive work of rooting out those who prey on innocent children. These sentences demonstrate the importance of the collaborative work among our law enforcement partners to hold sexual predators accountable.”
Simmons, and Williams were arrested over Valentine’s Day weekend 2020 as part of a related FBI Springfield Division Operation conducted in Kankakee County. The operation was conducted with the coordination and assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. 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 www.projectsafechildhood.gov.
Tuskegee Man’s Supervised Release Revoked After Being Involved in Shootout Resulting in Murder ChargeRead the Press Release
Montgomery, Alabama – On December 10, 2021, Cornelius Donte Bowen, 32, from Tuskegee, Alabama, was sentenced to 24 months in prison after violating the terms of his supervised release, announced Acting United States Attorney Sandra J. Stewart.
According to court records and statements made in court, in October of 2020, Bowen began serving a three-year period of supervised release following a prison sentence for being a felon in possession of a firearm. Then, on June 12, 2021, Bowen was in the parking lot of a housing complex in Tuskegee and began arguing with others over a fender bender involving a car belonging to the mother of his children. During the argument, Bowen and at least one other person began shooting. One man died and Bowen himself was shot in the exchange. Bowen was arrested on June 13th and, the following day, the United States Probation Office petitioned the court to revoke Bowen’s supervised release. State charges of murder and attempted murder are still pending.
This case was investigated by the Tuskegee Police Department and the United States Probation Office for the Middle District of Alabama, with assistance from the Montgomery Police Department. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.
Three Defendants Charged in $1.3 Million Covid Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Jonathan Mellone, Special Agent in Charge of the New York Regional Office of the U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Damon Wood, Inspector in Charge, Philadelphia Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of a complaint charging MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO with conspiracy to commit wire fraud, theft of government benefits, and aggravated identity theft in connection with a COVID-19 unemployment benefit scheme that attempted to steal more than $1.3 million from the New York Department of Labor (“NY DOL”). MARILUZ FERMIN, BELLANILDA FERMIN, and NOLASCO were arrested this morning in Yonkers, New York, and will be presented this afternoon before United States Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Damian Williams said: “As alleged, the defendants, working in concert, fraudulently filed claims for COVID-19 unemployment benefits under the names and social security numbers of at least 75 other people, making off with nearly $700,000 and attempting to steal more than $1.3 million. Now all three are in custody and facing serious federal charges.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own. Fraud against the Unemployment Insurance Program distracts state workforce agencies from ensuring that benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with our law enforcement partners, to investigate those who allegedly exploit the Unemployment Insurance Program.”
HSI Acting Special Agent in Charge Ricky Patel said: “As alleged in the Complaint, these individuals attempted to manipulate a program designed to help Americans and U.S. businesses pay their bills, retain employees, and keep afloat on the heels of a global pandemic that took the lives of millions throughout the world. Each defendant allegedly used the personal information of more than 70 people in this attempt, and succeeded in stealing at least $687,000 in COVID unemployment benefits – stealing not just from the government, but from everyday Americans who need it most. HSI and our partners will use all of our resources to seek out and bring to justice those that attempt to steal benefits meant to help those struggling to get back on their feet from COVID-19.”
USPIS Inspector in Charge Damon Wood said: “These individuals allegedly took advantage of the pandemic and those truly in need of assistance when they developed a scheme to lie and steal from the government and the American public. Today, they have been brought to justice for their alleged crimes by Postal Inspectors and their law enforcement partners whose mission is to keep the public safe from criminal activity.”
As alleged in the Complaint[1]:
From May 2020 through October 2020, MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO engaged in a scheme to obtain COVID-19 unemployment benefits by fraudulently filing and verifying applications using the names and social security numbers of at least 75 other people. The NY DOL was alerted to the suspicious activity based on metadata associated with the applications (the “Fraudulent Applications”), which indicated that the Fraudulent Applications were submitted from the same internet protocol (“IP”) address. During that same time, the IP Address was used to log into unemployment benefits claims – including the Fraudulent Applications – at least approximately 900 times. Further, MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO exchanged text messages that included, among other things, personal identifying information – such as names, email accounts, and dates of birth – used in the Fraudulent Applications. In addition, between in or about June 2020 and in or about August 2020, NOLASCO visited several ATM machines in the Bronx, New York, for the purpose of withdrawing funds issued as a result of the Fraudulent Applications. The scheme filed claims for more than $1.3 million and succeeded in stealing at least $687,000 in COVID-19 unemployment benefits before the fraud was detected.
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MARILUZ FERMIN, 46, BELLANILDA FERMIN, 41, and JUAN NOLASCO, 37, are each charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) theft of government benefits, which carries a maximum sentence of 10 years in prison, and (3) aggravated identity theft, which carries a mandatory two-year consecutive sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the DOL-OIG, the Internal Revenue Service - Criminal Investigation, HSI, USPIS, the Social Security Administration - Office of the Inspector General, and the NY DOL.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mitzi S. Steiner is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Texas Man Arrested for COVID-19 Relief SchemeRead the Press Release
A Texas man was arrested today for allegedly fraudulently obtaining over $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to allegations in the indictment, Scott Jackson Davis, 46, of Harris County, fraudulently received over $3.3 million in PPP funds through three fraudulent PPP loan applications submitted to a financial institution. Davis submitted applications for three businesses which he claimed to represent: Skilled Trade Investments LP (STILP), Skilled Trade Staffing LLC (STS), and Skilled Trade Investments Group LLC (STIGP). Davis claimed that these businesses had numerous employees and significant payroll, when in fact, they had few if any employees and little to no payroll. Davis also claimed on the applications that he had not been convicted of a felony in the previous five years, when in fact he had pleaded guilty to felony wire fraud charges in the Southern District of Texas in April 2017. Davis spent a large portion of the PPP loan funds on private jet travel, real estate, and luxury vehicles.
Davis is charged with wire fraud, bank fraud, and money laundering. The defendant is scheduled for his initial court appearance today before U.S. Magistrate Judge Christina A. Bryan of the U.S. District Court for the Southern District of Texas. If convicted, he faces a maximum total penalty of 30 years in prison for each count of bank fraud, 20 years in prison for each count of wire fraud, and 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA-Office of Inspector General (SBA-OIG); Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; and Special Agent-in-Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
The SBA-OIG and FBI’s Houston Field Office are investigating the case.
Trial Attorney Edward E. Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Wakefield of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sussex County Man Sentenced to 64 Months in Prison for Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 64 months in prison for fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced.
Azhar Sarwar Rana, 31, of Newton, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank fraud and one count of money laundering. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan. Rana was arrested on Dec. 12, 2020, after he booked a same-day flight to Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
In addition to the prison term, Judge Salas sentenced Rana to five years of supervised release, ordered restitution of $5.58 million. A forfeiture order of $5.68 million was entered in September 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; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Inspector General Gail S. Ennis; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Ricky J. Patel in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jennifer S. Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.