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14 December 2021
Decatur Man Sentenced to 10 Years in Prison for Child Pornography OffensesRead the Press Release
URBANA, Ill. – A Decatur, Illinois, man, Tyler D. Jeffrey, 29, of the 2100 block of East Roosevelt Ave., was sentenced on December 13, 2021, to 10 years in prison for possession of child pornography.
At Jeffrey’s sentencing hearing, Senior U.S. District Court Judge Michael M. Mihm found that Jeffrey faced enhanced penalties based on his prior 2011 conviction for criminal sexual abuse in Macon County.
In August 2020, Jeffrey entered a plea of guilty to the indictment, which charged him with one count of transportation of child pornography and one count of possession of child pornography, both on November 28, 2019. Jeffrey has remained in the custody of the U.S. Marshals since his arrest in July 2020.
Following Jeffrey’s release from prison, he will be on federal supervised release for eight years and will be required to register as a sex offender.
“The investigation and prosecution in this case was the culmination of the collective hard work of several state and federal law enforcement agencies,” said U.S. Attorney Gregory K. Harris. “This is another example of the success that can be achieved from this effort.”
The charges were investigated by Department of Homeland Security, Immigration and Customs Enforcement; the Decatur Police Department; and the Internet Crimes Against Children Task Force led by the Illinois Attorney General. 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.
Cumberland County Attorney Sentenced to 14 Months in Prison for Tax EvasionRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey-based attorney was sentenced today to 14 months in prison for evading more than $250,000 in federal taxes on income generated from his law firm, Acting U.S. Attorney Rachael A. Honig announced.
Douglas M. Long, 55, of Upper Deerfield, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Noel. L Hillman to an information charging him with one count of federal income tax evasion. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Long, managing partner of the Woodbury, New Jersey, law firm Long & Marmero LLP, exercised primary control over the firm’s finances and supervised the firm’s bookkeeper. Many of Long’s personal expenses, including school tuition for his children, utilities and service fees for his personal residences, student loan payments for Long and his spouse, and other expenses, repeatedly were paid out of the law firm’s bank accounts. Long directed the bookkeeper to falsely classify these payments as law firm business expenses to avoid his tax obligations. He also falsely declared, under penalty of perjury, that his personal tax returns for tax years 2012 through 2015 were true and accurate when they were not. Long ultimately concealed over $800,000 in personal income and evaded payment of over $250,000 in taxes owed to the IRS during tax years 2012 through 2015, including $368,000 in income and $120,000 in taxes for tax year 2014.
In addition to the prison term, Judge Hillman sentenced Long to three years of supervised release, fined him $10,000 and ordered him to pay restitution of $269,736.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez , and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Bruce P. Keller of Special Prosecutions Division in Newark.
Convicted Felon Guilty on Gun Charge, Captured by K-9 Following PursuitRead the Press Release
MACON, Ga. – A federal jury convicted a Middle Georgia resident with a violent criminal history of illegally possessing a firearm after he was captured following a high-speed and foot chase involving multiple law enforcement agencies, helicopter support and a K-9 unit.
Angel D. Feliciano, 36, of Warner Robins, was found guilty of possession of a firearm by a convicted felon late this afternoon following a two-day trial that began on Monday, Dec. 13. Feliciano is facing a maximum ten years in prison to be followed by a $250,000 fine. Sentencing is scheduled before U.S. District Judge Tilman E. “Tripp” Self, III on March 8. There is no parole in the federal system.
“Feliciano endangered innocent lives when he chose to flee law enforcement in a stolen vehicle, driving wildly in a Macon residential area while striking several cars before taking off on foot,” said Peter D. Leary, the U.S. Attorney for the Middle District of Georgia. “Due to his long and violent criminal history, Feliciano is now facing a lengthy prison sentence for illegally possessing a dangerous weapon. Our office will seek federal prosecution for repeat and violent offenders with guns. I want to thank the law enforcement teams that worked this case, especially those who helped to safely capture Feliciano.”
According to court documents and evidence presented at trial, law enforcement were alerted to be on the lookout for a stolen vehicle on June 15, 2020. A GSP trooper monitoring traffic on I-75 spotted the vehicle in the southbound lane at mile marker 190, driven by Feliciano, and attempted to pull him over. Instead of stopping, Feliciano accelerated, and a high-speed chase ensued. Multiple officers from the Bibb County Sheriff’s Office and GSP joined the effort to pull Feliciano over as he became increasingly reckless, exiting the highway and racing through residential areas, striking several vehicles, all of which was captured on dash cam. A successful PIT maneuver was executed, stopping Feliciano’s vehicle. Feliciano then fled on foot. A GSP helicopter provided air support during the search. Feliciano was eventually found by a Georgia Department of Corrections (DOC) K-9 and was taken into custody. A 9mm semiautomatic pistol loaded with 17 rounds of ammunition and a stolen .32 caliber semiautomatic pistol were found in the car. Feliciano has a lengthy criminal history, including convictions for aggravated assault, fleeing law enforcement, reckless driving and possession of a firearm by a convicted felon.
The case was investigated by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Georgia State Patrol (GSP) and the Bibb County Sheriff’s Department, with assistance from the Georgia Department of Corrections (DOC). Assistant U.S. Attorneys Joy Odom and Shanelle Booker are prosecuting the case.
Construction company owner sentenced to prison for mail fraud involving worker safety and embezzlement from company 401(k) programRead the Press Release
CINCINNATI – The owner of a Cincinnati-based construction company was sentenced in U.S. District Court today to 18 months in prison for fraudulently obtaining employee safety training certificates and embezzling from the company’s pension benefit program.
Ron Craig Estes, owner of R&R Steel, LLC, pleaded guilty before U.S. District Judge Timothy S. Black in January 2020 to mail fraud and theft from an employee benefit plan.
According to court documents, Estes devised a scheme in 2015 to skirt Occupational Safety and Health Administration (OSHA) requirements by buying fake employee training certifications in order to compete for a contract to provide steel installation and other work for the 8th and Sycamore project in Cincinnati. Estes paid $800 for 10 fake training certificates to avoid the costs and time associated with ensuring that all of the company’s employees had completed appropriate safety training. R&R received the $450,000 contract to do the work.
Court documents also say Estes embezzled between $15,000 and $40,000 from the company’s 401(k) retirement benefit plan established for the workers. Estes completed distribution forms for workers who had left the company and forged the participant’s signature on the distribution checks in order to cash the checks for his own benefit and use.
At sentencing, the United States argued that many of the victims in this case were particularly vulnerable due to being limited English proficient, migrant workers who feared reporting Estes’ criminal activities. According to court records, the Ohio Department of Commerce found that the company had violated the prevailing wage laws for the 8th & Sycamore project and ordered R&R Steel, LLC to pay $292,276.33, including $150,789.09 in past wages due and $141,487.24 in penalties associated with these violations.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, commended the investigation by the U.S. Department of Labor Office of Inspector General. Assistant United States Attorney Ebunoluwa Taiwo is representing the United States in this case.
If you believe you are a victim of this fraud, please contact the Department of Labor at 1-866-444-3272.
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Chinese Citizen Charged with Massive Anabolic Steroid and Fentanyl Precursor Chemical Distribution SchemeRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas has filed federal charges against one of the world’s largest alleged anabolic steroid producers, U.S. Attorney Chad E. Meacham announced today.
Chuen Fat Yip, a 68-year-old citizen of the People’s Republic of China (PRC) also known as Ye Chuan Fa, was charged in September 2018 with five drug crimes, including conspiracy to possess with intent to distribute anabolic steroids, conspiracy to possess with intent to distribute fentanyl precursor, conspiracy to import anabolic steroids, and manufacturing anabolic steroids and fentanyl precursor with the knowledge that they will be unlawfully imported. The indictment against Yip and two coconspirators was unsealed on March 11, 2021. On Nov. 18, 2021, the U.S. Attorney’s Office obtained a seizure warrant for more than 49.1 bitcoin – currently worth approximately $2.3 million – from a crypto wallet that traced back to Yip.
“We cannot allow foreign nationals to flood the United States with dangerous drugs,” said U.S. Attorney Chad Meacham. “This defendant allegedly made millions manufacturing and distributing anabolic steroids and fentanyl precursors to American customers. The Justice Department will pursue drug defendants to the furthest reaches of the globe if that’s what it takes to stem the tide of the drug epidemic.”
“Transnational criminal organizations seek to threaten our health and safety by importing dangerous drugs and chemicals, such as fentanyl. DEA’s mission to seek justice must be worldwide when combatting this threat,” said DEA Special Agent in Charge, Eduardo A. Chávez. “The YC Group allegedly utilized global logistics for personal gain while profiting from those individuals vulnerable to the dangers of drug abuse. Mr. Yip’s alleged criminal activities have caught up with him and DEA Fort Worth will use every tool, every law enforcement partner, and every community resource to ensure he and his conspirators are held accountable.”
According to court documents, Yip – who is believed to reside in Wuhan City, Hubei Provence, PRC – allegedly owned and operated the Yuancheng (YC) Group, a chemical manufacturing company responsible for producing and distributing approximately $280 million worth of anabolic steroids, including $55 million worth of anabolic steroids shipped to the United States over a five-year period.
The YC Group allegedly advertised the sale of illegal controlled substances at trade shows and on a variety of websites, including sellsteroids.com, steroidsmart.com, and pharmade.com. In October 2015, Yip allegedly attended a trade show in the United States, bringing his company vice president and a sales manager with him. His underlings allegedly met with customers and negotiated transactions involving more than 100 kilograms. During those meetings, they acknowledged the U.S. Drug Enforcement Administration (DEA)’s efforts to stem the flow of anabolic steroids and outlined steps the customers needed to avoid detection.
Following production of the steroids and other controlled substances, the YC Group allegedly shipped the contraband out of Shanghai or Hong Kong to locations around the globe, including 84 foreign counties and all 50 U.S. states. They shipped parcels weighing less than 50 kilograms via commercial air carries, including the U.S. Postal Service, and used cargo vessels to transport shipments weighing more than 50 kilograms. Shipments were typically disguised in packaging intended to resemble other products, such as food.
On one occasion, the YC Group allegedly agreed to ship approximately 24 kilograms of 4-ANPP, a precursor for fentanyl, from the PRC to the United States. The conspirators also allegedly agreed that the precursor would then be smuggled from the United States to Mexico, where it would be combined with other chemicals to produce fentanyl, then smuggled back into the United States, where it would be distributed to dealers and end-users.
The U.S. Department of State is offering a reward of up to $5 million for information leading to the arrest and/or conviction of Chuen Fat Yip, aka “Chuan Fa Ye,” or for information leading to the disruption of financial mechanisms of Yip’s alleged transnational organized crime group, the Yuancheng (YC) Group. If you have information, please contact the DEA at +1-972-591-1326 via text/WhatsApp/Telegram/ Signal, or by email at [email protected]. If in the United States, please contact the local DEA office in your city.
The DEA’s Dallas Field Division - Fort Worth District Office conducted the investigation. Essential support and coordination was provided by the Department of Justice’s multi-agency Special Operations Division in coordination with DEA’s Denver Field Division, Cyber Support Section, and Near East Region, including assigned attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Justice Department’s Office of International Affairs and the Criminal Division’s Money Laundering and Asset Recovery Section’s Digital Currency Initiative provided assistance. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chicago Consultant Pleads Guilty to Federal Tax OffenseRead the Press Release
CHICAGO — A Chicago consultant pleaded guilty today to a federal tax offense for willfully attempting to evade and defeat the assessment of income taxes.
EDWARD ACEVEDO, 58, of Chicago, pleaded guilty to a tax evasion charge before U.S. District Judge Matthew F. Kennelly. The conviction is punishable by a maximum sentence of five years in federal prison. Judge Kennelly set sentencing for March 9, 2022.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Sarah E. Streicker, Timothy J. Chapman, Michelle Kramer, and Julia Schwartz.
Acevedo worked as a self-employed consultant. He admitted in a plea agreement that he willfully failed to file an individual income tax return for the calendar years 2015 through 2018, causing a loss to the IRS of at least approximately $37,380. Acevedo further admitted that he attempted to evade taxes by handling his affairs in a manner so as to avoid the creation and maintenance of customary business and accounting records.
After discovering that he was under investigation by the IRS, Acevedo provided incomplete information to his accountant concerning the sources of Acevedo’s income and expenses for 2017 and 2018, causing the accountant to prepare incomplete federal tax returns for those years, the plea agreement states.
Charleroi Postal Worker Charged with Mail TheftRead the Press Release
PITTSBURGH - One resident of Charleroi, Pennsylvania, 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 Matthew Bellay, age 31, as the sole defendant.
According to the Indictment, on October 29, 2020, Bellay engaged in theft of mail matter while employed for 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.
Carnegie Man Sentenced for Obstructing Pittsburgh Police during May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Carnegie, Pennsylvania, was sentenced in federal court on a charge of obstruction of law enforcement during civil disorder, United States Attorney Cindy K. Chung announced today.
Andrew Augustyniak-Duncan, 31, was sentenced to 41 months of incarceration followed by three years of supervised release by United States District Judge Arthur J. Schwab.
The court was previously advised that on May 30, 2020, Augustyniak-Duncan did knowingly and willfully throw projectiles, including pieces of concrete and a pipe, at several police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties. Two officers were struck in the head and suffered concussions.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Investigation conducted the investigation.
Canadian Citizen Sentenced to 68 Months in Prison for Aiding and Abetting Illegal Possession of FirearmsRead the Press Release
Minneapolis – A Canadian man was sentenced to 68 months in prison for aiding and abetting unlawful possession of firearms, announced Acting United States Attorney Charles J. Kovats.
According to court documents, on January 10, 2021, Muzamil Aden Addow, 30, and co-defendant Dayne Adrian Sitladeen, 29, were stopped by a Minnesota State Patrol Trooper near Fergus Falls, Minnesota. The defendants were traveling between 95-100 miles per hour in a Chevrolet Silverado pickup truck with Texas license plates. When the Trooper approached the vehicle, Muzamil Aden Addow, the driver, provided an Ontario, Canada, driver’s license with a false name.
According to court documents, after detecting the odor of marijuana in the vehicle and receiving suspicious and inconsistent statements from Addow and Sitladeen, the Trooper searched the vehicle. As a result of the search, law enforcement officers recovered a total of 67 firearms and numerous pistol magazines, including 15 high-capacity pistol magazines, from four bags in the truck—one pistol magazine was partially loaded with live ammunition rounds.
Addow, who pleaded guilty on July 27, 2021, to one count of aiding and abetting firearm possession by aliens unlawfully in the United States, was sentenced today by U.S. District Court Judge Nancy E. Brasel. On December 8, 2021, his co-defendant Dayne Adrian Sitladeen was sentenced to 78 months in prison.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minnesota State Patrol.
This case was prosecuted by Assistant U.S. Attorney Samantha Bates.
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Camden County Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 120 months in prison for conspiring to distribute heroin in the city of Camden, Acting U.S. Attorney Rachael A. Honig announced.
Jose Agron, 28, of Oaklyn, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an indictment charging him with conspiracy to distribute one kilogram or more of heroin. Judge Bumb imposed the sentence today in Camden federal court.
During his sentencing hearing, Agron agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was one to three kilograms. He also acknowledged his role, as a member of the conspiracy, with respect to the distribution of cocaine and cocaine base.
According to documents filed in this case and statements made in court:
A total of nineteen defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used various investigative tactics including video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Agron, who worked various shifts selling drugs to customers and collecting drug proceeds. These street-level sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Seventeen of these defendants already have entered guilty pleas on drug conspiracy charges. Two defendants are awaiting trial, on a date to be set by the Court. The charges and allegations against those two defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Agron to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Camden County Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief of Police Larry Robb; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
CEO of Shreveport Federal Credit Union Pleads Guilty to Charges in Federal CourtRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Helen Godfrey-Smith, 72, of Shreveport, Louisiana, has pleaded guilty before United States District Judge Elizabeth E. Foote to making and using a false document.
Godfrey-Smith was employed by the Shreveport Federal Credit Union (SFCU) from 1983 to 2017 and during much of that time was employed as the Chief Executive Officer (CEO) of the SFCU. The SFCU was a Shreveport, Louisiana based financial institution under the regulation of the National Credit Union Administration (NCUA).
In October 2016, the SFCU, through Godfrey-Smith, entered into an agreement with the United States Department of the Treasury to buy back certain securities that were part of the Department’s Troubled Asset Relief Program (TARP). As part of that process, on December 27, 2016, Godfrey-Smith signed and submitted to the United States Department of the Treasury an Officer’s Certificate which certified that all conditions precedent to the closing had been satisfied.
In reality, SFCU had not met all conditions precedent to closing and had suffered a material adverse effect. Unbeknownst to the United States Department of the Treasury and the NCUA, SFCU was in a financial crisis. From 2015 through 2017, another individual who was the Chief Financial Officer of SFCU (Individual 1), had been falsifying call reports to the NCUA which included millions of dollars in fictitious fee income. In addition, she was creating fictitious entries in the banks records to support the false call reports. This created the illusion that SFCU was profitable when, in fact, the bank was failing. In addition, Individual 1, embezzled approximately $1.5 million from the credit union.
By the time Godfrey-Smith signed the Officer's Statement, she had become aware of deficiencies at the credit union. Specifically, she had recently investigated and discovered that there were millions of dollars of fictitious entries on SFCU's general ledger, and the credit union's books were not balanced. However, she failed to disclose this information to the United States Department of the Treasury and signed the false Officer’s Statement.
In the Spring of 2017, the institution failed. It was taken over by regulators from the NCUA and placed into a conservatorship. An investigation by the NCUA revealed that SFCU had amassed in excess of $10 million in losses by December 2016.
Godfrey-Smith faces a sentence of up to 5 years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing is set for April 5, 2022.
The FBI, IRS-Criminal Investigation, and U.S. Department of Treasury–Office of Special Inspector General for the Troubled Asset Relief Program investigated the case. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
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Brush guide sentenced after abandoning people during freezeRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old Harlingen man has been ordered to prison for two separate smuggling attempts, announced Acting U.S. Attorney Jennifer B. Lowery.
Eduardo Javier Jimenez pleaded guilty to each respective crime on May 4 and June 22.
Today, U.S. District Judge Drew B. Tipton ordered he serve a total of 85 months in federal prison to be immediately followed by two years of supervised release.
In February, authorities had found Jimenez on the side of the road asking for a ride. They observed his pants being wet and suspected he had been acting as a brush guide. However, at the time, they could not verify their suspicions and released him.
Later, law enforcement apprehended a group of 12 individuals after they had circumvented the Sarita checkpoint. The investigation revealed their guide had abandoned them, leaving them in below freezing temperatures for more than 15 hours. Some in the group claimed their brush guide told them he needed to use the restroom and to go ahead, and he would catch up. However, the guide had left them and disappeared. One person succumbed to hypothermia and died of dehydration.
One week later, Jimenez was found working as a brush guide for another group. At that time, he admitted he had done the same for the other group the week of the hard freeze.
He claimed the group had actually abandoned him. He later admitted this information was not true and eventually pleaded guilty to his role in both smuggling attempts.
Jimenez has been and will remain in custody spending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Browning man sentenced to five years in prison for receiving child pornographyRead the Press Release
GREAT FALLS — A Browning who admitted to soliciting and receiving nude images of a minor girl was sentenced today to five years in prison to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Sean Henry White Bremner, aka Sean Bremz, 26, pleaded guilty in August to receipt of child pornography.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in 2017, the FBI investigated allegations that adult men on the Blackfeet Indian Reservation were engaging in sexual conduct with juvenile females in exchange for methamphetamine. Investigators executed search warrants on Facebook accounts, including an account that belonged to a juvenile female, identified as JF1. A review of the account found several conversations with Facebook user “Sean.Bremnz” indicating that the user had engaged in a sexual relationship with JF1. The FBI subsequently identified “Sean.Bremnz” as the defendant. In July 2019, the FBI served a search warrant on Bremner’s Facebook account and found that Bremner had solicited and received nude photographs from a juvenile female, identified as JF2, who was 15 years old at the time though her Facebook account falsely listed her age as being 17 years old. JF2 admitted to the FBI that she sent nude images of herself to Bremner.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the FBI.
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Browning man sentenced to 15 years in prison for raping minor children on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man who admitted to repeatedly raping two children on the Blackfeet Indian Reservation was sentenced today to 15 years in prison to be followed by a lifetime of supervised release, U.S. Attorney Leif M. Johnson said.
Jonathan Cadotte, 60, pleaded guilty in August to a superseding information charging him with aggravated sexual abuse and to aggravated sexual abuse of a child.
Chief U.S. District Judge Brian M. Morris presided.
The parties agreed in a plea agreement that a specific sentence of 15 years in prison was appropriate in the case.
In court documents, the government alleged that Cadotte is a child predator who repeatedly sexually assaulted small children in the Browning area, on the Blackfeet Indian Reservation. Beginning in September 2019 and continuing for about a year, Cadotte engaged in a sexual act by force against a victim, identified as Jane Doe 1. And from 1993 to about 1998, also in the Browning area, Cadotte engaged in a sexual act with another child victim, identified as Jane Doe 2, who had not yet reached 12 years of age.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case, which was investigated by the FBI, Bureau of Indian Affairs and Blackfeet Law Enforcement Services.
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Bronx Man Sentenced to 24 Months in Prison for Lying to Federal Agents Which Led to the Shooting of Two Deputy United States MarshalsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that GRANT GRANDISON was sentenced to 24 months in prison for making false statements to federal agents, which led to the shooting of two Deputy U.S. Marshals on December 4, 2020. GRANDISON pled guilty on June 28, 2021, before U.S. Magistrate Judge Debra A. Freeman. U.S. District Court Judge Kimba M. Wood imposed today’s sentence.
U.S. Attorney Damian Williams said: “Grant Grandison lied when a team of Deputy U.S. Marshals, NYPD officers, and Massachusetts state troopers came to his apartment early on the morning of December 4, 2020 to arrest Andre Sterling, who was a fugitive from law enforcement. After Grandison lied to them, two federal agents were shot and injured that fateful morning, and several other agents were placed in serious danger. Grandison will now serve a meaningful sentence in prison to account for his crimes. This Office stands firmly behind all of our law enforcement partners, and especially the U.S. Marshals Service, as they work to enforce the laws and keep all New Yorkers safe.”
According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
On or about November 20, 2020, Andre Sterling allegedly shot a Massachusetts State Trooper during a traffic stop in Hyannis, Massachusetts. Sterling fled from Massachusetts and was deemed a fugitive. On or about November 24, 2020, a federal warrant was issued for Sterling’s arrest.
On the morning of December 4, 2020, several Deputy United States Marshals (the “Marshals”), along with officers from the New York City Police Department (“NYPD”) and state troopers from the Massachusetts State Police, traveled to GRANDISON’s apartment in the Bronx (the “Apartment”), where they believed that Sterling was located, in order to arrest Sterling. The Marshals announced themselves as “U.S. Marshals” and encountered GRANDISON at the door. The Marshals asked GRANDISON, in sum and substance, if anyone else was in the Apartment, and GRANDISON replied, in sum and substance, that no one else was in the Apartment. At the time of GRANDISON’s statements to the Marshals, GRANDISON knew that Sterling was a fugitive, and that Sterling was hiding in a bedroom in the Apartment.
The Marshals proceeded into the Apartment, at which point Sterling came out from a bedroom in the Apartment and began firing at the Marshals, striking and injuring two Marshals. The Marshals returned fire, and Sterling was killed in the exchange. Law enforcement agents recovered a firearm from near Sterling.
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In addition to his prison sentence, GRANDISON was sentenced to three years of supervised release, and ordered to pay $80,775 in restitution.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York, the United States Marshals Service, the New York/New Jersey Regional Fugitive Task Force, the New York City Police Department’s 47 Precinct Detective Squad, and the Massachusetts State Police.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Alexandra N. Rothman is in charge of the prosecution.
Baltimore Drug Dealer Pleads Guilty to Federal Drug Trafficking Charges Related to a Fentanyl DeathRead the Press Release
Baltimore, Maryland – Khalil Shaheed, age 28, of Baltimore, Maryland, pleaded guilty today to possession with intent to distribute controlled substances, possession of firearms in furtherance of drug trafficking, and possession of a firearm by a felon.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Commissioner Michael Harrison of the Baltimore Police Department; and Harford County Sheriff Jeffrey R. Gahler; Carroll County Sheriff James DeWees.
According to his guilty plea, after the investigation of a fatal overdose victim in Harford County, Maryland, investigators examined the victim’s cell phone activity and noted that the victim purchased heroin from a contact labeled “T” on at least seven occasions. The last date the victim purchased heroin from “T” was on October 14, 2017, three days before the victim’s death. In the last conversation, “T” directed the victim to meet them in a Baltimore, Maryland grocery store bathroom.
As result of an investigation into the overdose, investigators began to conduct physical surveillance on Shaheed. On November 9, 2017, investigators watched Shaheed depart from his Baltimore, Maryland residence and travel to a gas station. Before parking the vehicle, Shaheed circled the parking lot, stopped at a gas pump, and then parked directly in front of the gas station store. Upon parking, Shaheed stood outside his vehicle, stood next to his car while appearing to look for someone. Minutes later, Shaheed entered the gas station and went directly to the bathroom while a detective followed him. As the detective entered the bathroom, Shaheed quickly exited the bathroom with another male subject. Shaheed proceeded to exit the store without making any purchases.
Believing that a drug deal had just occurred, law enforcement obtained a court order to install a GPS device on Shaheed’s vehicle.
As stated in his plea agreement, on November 16, 2017, investigators executed a search warrant on Shaheed’s residence and vehicle. As a result of the search warrants, officers discovered a .9mm handgun, cocaine, and heroin packaged for distribution in his vehicle. In his residence, officers found a .25 caliber handgun, $12,452.36 in cash, ammunition, and additional drugs. In total, law enforcement seized approximately 82 grams of cocaine, 55 grams of heroin and 7 grams of fentanyl. Additionally, officers seized Shaheed’s cell phone that indicated his phone number was the same number as the contact saved as “T” in the victim’s cell phone.
On November 6, 2019, a federal grand jury indited Shaheed on charges related to the distribution of fentanyl to the deceased victim, possession with intent to distribute controlled substances in November 2017, and possession of the firearms. An arrest warrant was issued based on these charges.
On November 20, 2019, federal investigators located Shaheed at his last residence and observed activity indicative of drug trafficking activity in plain view. Shaheed was arrested while officers executed a search warrant that resulted in the discovery of six bags of cocaine and a .25 caliber handgun.
Shaheed and the government have agreed that, if the Court accepts the plea agreement, Shaheed will be sentenced to between eight years and twelve years in federal prison for possession with intent to distribute controlled substances, possession of firearms in furtherance of drug trafficking and possession of a firearm by a felon. U.S. District Judge Catherine C. Blake has scheduled the sentencing hearing for March 18, 2022 at 10:30 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mr. Barron commended the DEA, the Baltimore County Police Department, the Harford County Sheriff’s Office, the Anne Arundel County Police Department and the Carroll County Sheriff’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kim Oldham and Special Assistant U.S. Attorney Jeffrey M. Hann, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Avis Man Sentenced to 5 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Avis, Pennsylvania, has been sentenced in federal court to a total of 5 years in prison and 4 years supervised release on his conviction of conspiracy to distribute methamphetamine. United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Robert Morgret Jr., 58.
According to information presented to the court, on or about July 2019, to on or about June 2020, Morgret conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Morgret. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anaconda man admits attempted coercion, enticement of minor for sex in undercover investigationRead the Press Release
MISSOULA – An Anaconda man today admitted charges that he attempted to coerce and entice a girl he believed to be a minor into engaging in sexual activity during an undercover investigation, U.S. Attorney Leif M. Johnson said.
Terry Joseph Jette, 56, pleaded guilty to attempted coercion and enticement as charged in an indictment. Jette faces a mandatory minimum 10 years to life in prison, a $250,000 fine and at least five years to a lifetime of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for March 30, 2022 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jette was detained pending further proceedings.
The government alleged in court documents that on June 21, Jette initiated a conversation on Instagram with a 13-year-old user girl who was actually an undercover FBI special agent. At the start of the online chatting, Jette was told that the girl was 13 years old. Jette continued online communication with the girl until his arrest on July 9. During the communications, Jette sent the girl an image of his penis and requested nude images of the purported child. Jette initiated sexually explicit conversation with the girl, suggested a meeting and discussed bringing methamphetamine and condoms to the meeting. On July 8, Jette traveled from Anaconda to Missoula to meet the girl and asked her to sneak out of her house. When the girl was unable to meet that day, Jette suggested a meeting the next day in East Missoula. Jette made explicit statements about engaging in sexual intercourse and said he had meth. On July 9, Jette was arrested at the predetermined meeting location. During a search of his vehicle, law enforcement found a condom, meth, Viagra and candy that the girl had told Jette she liked during their online communications.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, the Montana Internet Crimes Against Children Task Force and the Missoula County Sheriff’s Office.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Albuquerque tax preparer pleads guilty to preparing fraudulent returnsRead the Press Release
ALBUQUERQUE, N.M. – Solomon Gbara, 47, of Albuquerque, pleaded guilty on Dec. 13 in federal court to aiding and assisting in the preparation and presentation of false and fraudulent income tax returns. A federal grand jury indicted Gbara on March 12.
According to the indictment and other court records, from February 2015 through May 2020, Gbara, who owned and operated Express Tax SG, assisted in the preparation and presentation of individual income tax returns (IRS Form 1040) that included claims Gbara knew were false. These misrepresentations included claims for dependents and Schedule C businesses to which the taxpayers were not entitled under the provisions of internal revenue laws. Gbara also admitted to showing clients tax returns with certain expected refunds, then filed returns with higher refunds and pocketed the difference.
The fraudulent returns filed by Gbara represented a total loss of over $90,000 in tax revenues. Gbara faces up to three years in prison for each count. A sentencing date has not been scheduled.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
13 December 2021
Zachary A. Cunha Sworn in as U.S. Attorney for the District of Rhode IslandRead the Press Release
PROVIDENCE, R.I. – The U.S. Attorney’s Office announces that Zachary A. Cunha took the oath of office today to become the United States Attorney for the District of Rhode Island. U.S. District Court Chief Judge John J. McConnell, Jr., administered the oath in U.S. District Court in a brief ceremony attended by members of Mr. Cunha’s family, in the presence of the Honorable William E. Smith and Mary S. McElroy, United States District Judges, and the Honorable Patricia M. Sullivan, United States Magistrate Judge.
At the recommendation of United State Senators Jack Reed and Sheldon Whitehouse, Mr. Cunha was nominated by President Joseph R. Biden, Jr., on September 28, 2021, and confirmed by the United States Senate on December 7, 2021. United States Attorney Cunha serves as the chief federal law enforcement officer for Rhode Island.
“I am deeply humbled, and profoundly honored at the opportunity to lead the extraordinary women and men of this Office as we continue its long and proud tradition of seeking justice on behalf of each and every one of our fellow residents in the Ocean State,” said Cunha. “I look forward to working closely with our partners in federal, state, and local law enforcement, as well as with communities and community leaders across Rhode Island, to maximize our impact on public safety and defend the public interest.”
A lawyer for two decades, United States Attorney Cunha has spent the bulk of his career with the Department of Justice, serving in three United States Attorney’s Offices: the District of Rhode Island, the District of Massachusetts, and the Eastern District of New York, where he was first appointed as an Assistant United States Attorney in 2005.
As an Assistant U.S. Attorney, Mr. Cunha handled and supervised an array of nationally significant civil and criminal cases, notably in the area of health care fraud and white collar fraud. In 2010, he was recognized with the Attorney General’s Award for Exceptional Service, the highest honor conferred by the Department of Justice, for his work on the prosecution team handling a series of related investigations of Pfizer Pharmaceutical. Those investigations resulted in a recovery of $2.3 billion dollars, representing the largest civil and criminal healthcare fraud recovery made by the United States as of that time.
Before joining the Justice Department, Mr. Cunha began his legal career on September 10, 2001, when he was sworn in as an Assistant Corporation Counsel for the City of New York.
Mr. Cunha received his Bachelor of Arts, with honors, from Brown University in 1998, and his Juris Doctorate, also with honors, from the George Washington University Law School in 2001.
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Worcester Man Sentenced for Wire Fraud and Tax OffensesRead the Press Release
BOSTON – A Worcester man was sentenced today for federal tax and fraud charges arising from his role in overseeing various Worcester-based employment agencies.
Tam Vuong, 46, was sentenced by U.S. District Court Judge Timothy S. Hillman to 25 months in prison and three years of supervised release. Vuong was also ordered to pay restitution and forfeiture in amounts to be determined at a later date. On Aug. 5, 2021, Vuong pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes.
Vuong oversaw Prime Labor LLC and UT Services, Inc., which were employment agencies based in Worcester. Each agency paid a few employees by check but paid most employees in cash. Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in tax filings and insurance audits. Vuong concealed millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, more than $30 million in Prime Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.
In addition, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.
Vuong shifted operations from Prime Labor to UT Services after federal search warrants were executed in November 2017. Vuong took steps to hide his role with both Prime Labor and UT Services.
In January 2021, Julio Lopez, a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is currently scheduled to be sentenced on Dec. 15, 2021. Linda Le, a former employee of UT Services, was sentenced in May 2021 to two years of probation after pleading guilty to perjury for giving false testimony before a federal grand jury.
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 Investigation; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division and Assistant U.S. Attorney Adam Deitch, of Mendell’s Criminal Division, prosecuted the case.
Waterbury to Ensure that Polling Stations are Accessible to People with Mobility DisabilitiesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement with the City of Waterbury to ensure that people with disabilities can physically access polling locations.
This settlement agreement resolves a complaint filed with the U.S. Department of Justice stating that the City of Waterbury was using polling sites that were inaccessible to people with disabilities. After receiving the complaint, the Justice Department’s Civil Rights Division and Connecticut’s U.S. Attorney’s Office spoke with city officials and people with disabilities, surveyed polling locations, and reviewed information provided by the city. The investigation determined that certain polling locations in Waterbury did not fully comply with the Americans with Disabilities Act requirements, including excessively sloped parking areas, narrow doorways, steep ramps, and inaccessible door hardware. These noncompliant features rendered the city’s voting program inaccessible to voters with certain disabilities.
“Every voter has a fundamental right to vote in person at his or her local polling place, and this settlement agreement protects this right by ensuring voting access to Waterbury’s polling places to individuals with mobility disabilities,” Acting U.S. Attorney Boyle said.
Acting U.S. Attorney Boyle noted that the City of Waterbury cooperated in the investigation and voluntarily entered into the agreement. The city has already made improvements to bring the polling locations into compliance, and the agreement is effective for two years during which time the U.S. Attorney’s Office will monitor the city’s compliance.
This matter was handled by Assistant U.S. Attorney William M Brown, Jr., of the U.S. Attorney’s Office, District of Connecticut, and Senior Trial Attorney Elizabeth Johnson, of the U.S. Department of Justice, Civil Rights Division, Disability Rights Section.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. A copy of the settlement agreement will be found on www.ada.gov.
Wake County Man Sentenced to 6 Years in Federal Prison for Possessing Stolen Firearms as a FelonRead the Press Release
RALEIGH, N.C. – A Wake County man was sentenced today to 72 months in prison for possessing several stolen firearms as a felon. On October 4, 2021, Robert Cleveland Barham pled guilty to the charges.
According to court documents and other information presented in court, Barham, 30, possessed fourteen firearms that had been stolen from a self-storage unit in Wendell, North Carolina in January 2019. When he was arrested, Barham admitted to trading several of the firearms for heroin in Henderson, North Carolina. Barham had previously been convicted of felony breaking and entering and possessing a firearm as a felon in 2014. Barham was also convicted of felony breaking and entering, felony larceny and obtaining property by false pretenses in 2018.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wake County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney John Parris 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. 5:20-cr-00021-D.
Virginia Business Owner Charged with $1.5 Million Employment Tax FraudRead the Press Release
A federal grand jury in Roanoke, Virginia, returned an indictment on Thursday charging a Virginia man with employment tax fraud.
According to the indictment, Richard E. Moore, of Augusta County, was the executive vice president and part owner of Nexus Services Inc. (Nexus), a Verona-based company that offers bond securitization and other services to immigrants detained by U.S. Immigration and Customs Enforcement. As executive vice president, Moore allegedly directed the company’s day-to-day management and was responsible for paying employment taxes to the IRS that Nexus withheld from its employees’ wages. For various tax periods between the first quarter of 2015 and fourth quarter of 2020, Moore allegedly did not pay the IRS a total of more than $1.5 million in payroll taxes that had been withheld from Nexus employees’ paychecks.
Moore is charged with 10 counts of willfully failing to pay employment taxes. His initial court appearance is scheduled for a later date before U.S. Magistrate Judge Joel Hoppe of the U.S. District Court for the Western District of Virginia. If convicted, Moore faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Alexander Effendi of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tillamook Man Sentenced to Federal Prison for Stealing 15 Firearms from Sporting Goods StoreRead the Press Release
PORTLAND, Ore.—A Tillamook, Oregon man was sentenced to federal prison today for stealing 15 firearms from a sporting goods store in Tillamook while on post-prison supervision.
Robert Jon Gilliam, 52, was sentenced to 60 months in federal prison and three years’ supervised release. Gilliam was also ordered to pay $8,892 in restitution the insurance company who covered the sporting goods store’s losses.
According to court documents, in the early morning hours of May 8, 2020, Tillamook Police Department officers responded to a burglary at Tillamook Sporting Goods, a federal firearm licensee. A male caller saw a male run from the store, get into a green Subaru driven by a female, and drive away. A short time later, the female drove back into the parking lot and parked, but the male passenger was not in the care. The caller then watched as the male ran from the front of the store, again jumped into the vehicle, and drove away.
On scene, police found the front glass doors of the store and several glass firearm display cases inside the store shattered. Officers observed blood near the broken glass and collected it for analysis. The store’s surveillance video was not operable during the time of the burglary and the store’s alarm was not triggered until police were in the building.
On June 4, 2020, Washington County Sheriff’s Office deputies recovered one of the stolen firearms while executing a search warrant. Three days, later, on June 7, 2020, investigators executed a search warrant on Gilliam’s Tillamook residence. Officers observed a green Subaru parked outside with dried blood on the inside of the front passenger door and on the car’s exterior. Investigators submitted the blood sample from the store to the Oregon State Police Crime Lab. Forensic scientists matched the sample to a known blood sample taken from Gilliam.
On October 6, 2020, a federal grand jury in Portland returned a two-count indictment charging Gilliam with stealing firearms from a federal firearms licensee and illegally possessing a firearm as a convicted felon. On July 2, 2021, Gilliam pleaded guilty to both charges.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Tillamook Police Department, Washington County Sheriff’s Office, and Oregon State Police. Assistant U.S. Attorney Leah K. Bolstad prosecuted the case.
Texas man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Leonard Jasmine, of Houston, Texas, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Jasmine, 30, pleaded guilty today to one count of “Conspiracy to Distribute Controlled Substances.” Jasmine admitted to working with others to distribute methamphetamine, cocaine base, cocaine hydrochloride, and fentanyl from the spring of 2018 to October 2020 in Monongalia County and elsewhere.
Jasmine faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Michael John Aloi presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Texas Man Sentenced to Federal Prison for Assaulting Deputy U.S. Marshal with Hammer During Portland ProtestsRead the Press Release
PORTLAND, Ore.—A Texas man was sentenced to federal prison today for assaulting a Deputy U.S. Marshal with a construction hammer during a July 2020 protest in Downtown Portland.
Jacob Michael Gaines, 24, was sentenced to 46 months in federal prison and three years’ supervised release.
“Mr. Gaines’ actions in July 2020 were intentional, dangerous, and could have severely injured or killed the Deputy U.S. Marshal who confronted him. His assault on a federal officer justifies the lengthy prison sentence imposed today,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
According to court documents, at approximately 1:00am on July 11, 2020, Gaines was observed using a hammer to break through a barricaded entrance at the Hatfield Federal Courthouse. At the time, federal law enforcement personnel were staged inside the courthouse to protect the facility and respond to incidents. After Gaines drove a hole through the plywood barrier, Deputy U.S. Marshals exited the door to prevent him from trespassing into the closed building.
As the marshals were exiting the barricaded door, Gaines struck a Deputy U.S. Marshal three times with the hammer. The deputy deflected the blows to prevent serious injury, but in process was struck in the left shoulder, lower neck, and upper back. While being struck, the deputy managed to hold onto Gaines while other officers handcuffed him and placed him under arrest.
On July 12, 2020, Gaines was charged by criminal complaint with one count of assaulting a federal officer with a deadly weapon. Later, on July 16, 2020, a federal grand jury in Portland indicted Gaines on the same charge. Gaines has been held in custody since his arrest the night of the incident. On September 8, 2021, he pleaded guilty to the single charge.
Acting U.S. Attorney Asphaug made the announcement.
The case was investigated by the U.S. Marshals Service and Federal Protective Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Courthouse barricade with hole from Gaines' hammer strikes Gaines outside courthouse barricade with hammer in right hand Deputy US Marshal approaching Gaines 4lb Dewalt construction hammer seized from GainesTexas Automobile Dealer and Former U.S. Military Soldiers and Purported Former IDF Member Charged in Kidnapping ConspiracyRead the Press Release
NASHVILLE – A federal indictment unsealed today charges three Texas men and one North Carolina man with a kidnapping conspiracy which resulted in the murder of two individuals on March 12, 2020, in Nashville, Tennessee.
In making the announcement, Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee, Douglas M. Korneski, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation, and Metropolitan Nashville Police Chief John Drake commended the tremendous collaborative efforts of the agents, detectives, and prosecutors which led to the indictment.
The three-count indictment charges the following individuals with conspiracy to commit kidnapping, kidnapping resulting in death, and carrying, brandishing, and discharging a firearm during and in relation to a crime of violence:
Erik Charles Maund, 46, of Austin, Texas, a partner in Maund Automotive Group in Austin, Texas; Gilad Peled, 47, of Austin, Texas, who held himself out to be a former member of the Israeli Defense Forces and owner of Speartip Security in Austin, Texas; Bryon Brockway, 46, of Austin, Texas, a former active-duty United States Marine who previously served in Force Recon, a Special Operations Capable unit, and owner of Ink Force LLC, also a security company in Austin; and Adam Carey, 30, of Richlands, North Carolina, a former active duty United States Marine who had previously served in the Marine Corps’ Special Operations Group.
According to the indictment, Maund sometimes travelled to Nashville to visit a relative and in early February 2020, he emailed a woman (H.W.) with whom he had had a prior relationship, for the purpose of seeing her during his upcoming visit to Nashville on February 5-7.
After his visit to Nashville, on March 1, 2020, Maund received a series of text messages from an individual (W.L.) who had a personal romantic relationship with H.W. W.L. demanded payment from Maund and threatened to expose his relationship with H.W. if he did not receive it. Maund then enlisted the services of Peled, Brockway and Carey to assist with dealing with the threats to expose his relationship with H.W. and the extortion demands.
The indictment further alleges that on March 5, 2020, Maund withdrew $15,000 from his bank account and on that same day an “intelligence report” was prepared and provided to Peled by a relative of Brockway who worked for an internet-based security company.
A series of actions were then undertaken by Carey and others, including travelling from out of state to Nashville to surveil H.W. and W.L. and creating and using a Pinger account to attempt to communicate with H.W. and L.W. On March 9, 2020, Peled received a document entitled “Tennessee Sitrep,” which stated that Carey and others had surveilled H.W.; confirmed her address and vehicle; confirmed that W.L. had been staying at the same address; and advised that Carey and others would use everything at their disposal to stop the attempted extortion of Maund.
On March 11, 2020, Peled deposited $8,000 in cash into Speartip Security’s business account and $7,000 in cash into his personal bank account. The following day, Maund transferred $150,000, via wire, from his bank account to a bank account controlled by Peled. On that same day, Brockway and Carey, while armed with firearms, confronted H.W. and W.L. in the parking lot of H.W.’s apartment complex in Nashville and murdered W.L. by shooting him multiple times. They then kidnapped H.W. and drove her and the body of W.L. to a construction site on Old Hickory Boulevard in Nashville, where they murdered H.W. by shooting her several times. The bodies were then discarded at the construction site and within hours of the murders, the Pinger account used to communicate was deleted and a rental car rented by Brockway was returned.
Carey then drove Brockway to Memphis, Tennessee, and Brockway caught a flight to Austin, Texas. Carey then drove to Austin from Memphis.
The indictment also alleges that between March 11, 2020, and the present, Maund transferred in excess of $750,000, via wire, from his bank account to an account controlled by Peled, as payment to Peled, Brockway, and Carey for the kidnapping and murder of H.W. and W.L.
On Friday, FBI agents and Metro Nashville Police detectives orchestrated the arrests of all four individuals across several states. Erik Maund was arrested after a traffic stop near Austin, Texas; Gilad Peled was arrested at the airport in Austin, Texas; Bryon Brockway was arrested in San Diego, California; and Adam Carey was arrested at his home in North Carolina.
All will make an initial appearance before a U.S. Magistrate Judge in the District where they were arrested and will be returned to the Middle District of Tennessee at a later date for further proceedings.
If convicted, the defendants face up to life in prison.
In addition to the Memphis FBI Field Office and the Metropolitan Nashville Police Department, investigative and arrest assistance was provided by FBI Field Offices in Charlotte, North Carolina; San Diego, California; San Antonio, Texas; the FBI Critical Incident Response Group; the Naval Criminal Investigative Service; the Texas Department of Public Safety; the Austin, Texas Police Department; the Williamson County, Texas Sheriff’s Department; the Onslow County Sheriff’s Office and the New Hanover County Sheriff’s Office in North Carolina; and the Jacksonville, North Carolina Police Department. Assistant U.S. Attorney Robert McGuire of the Middle District of Tennessee is prosecuting the case with the assistance of Assistant U.S. Attorneys Bryan Stephany of the Eastern District of North Carolina; Matt Harding of the Western District of Texas; and Derek Ko of the Southern District of California.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Tampa Men Sentenced for Fraud and Identity Theft in COVID Benefits ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Kary Stevenson (47) and Corey Quinn (35), both of Tampa, for conspiracy to commit access device fraud and aggravated identity theft related to COVID unemployment insurance benefits. Stevenson was sentenced to 5 years and 10 months in federal prison and Quinn was sentenced to 7 years in federal prison. As part of their sentence, the court also ordered Stevenson and Quinn to pay $87,046 in restitution to the various state workforce agencies they defrauded.
Stevenson and Quinn had pleaded guilty on September 21, 2021.
According to court documents, from approximately May 2020 and continuing until August 12, 2020, Stevenson and Quinn obtained the personal identifying information of others and used that information to submit, or cause the submission of, false and fraudulent unemployment insurance (UI) claims to various state workforce agencies, in order to obtain UI benefits to which they were not entitled. These UI benefits were then transferred to bank accounts or loaded onto debits cards issued in the names of other persons. Stevenson and Quinn then used, or attempted to use, the fraudulently obtained debit cards to withdraw money from ATMs and to purchase items from retail establishments. The U.S. Department of Labor determined that Stevenson and Quinn submitted fraudulent UI claims seeking a total of over $1,000,000, but they only obtained $87,046 before they were caught.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
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.
This case was investigated by the Department of Labor Office of Inspector General, the United States Secret Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Gregory D. Pizzo and John Cannizzaro.
Several sentenced in $50M pump-and-dump schemeRead the Press Release
HOUSTON – All seven defendants charged in relation to a more than $50 million securities fraud “pump-and-dump” scheme have received their final sentences, announced Acting U.S. Attorney Jennifer B. Lowery.
Carolyn Price Austin, 67, Houston, pleaded guilty as did Andrew Ian Farmer, 43, Thomas Galen Massey, 51, Eddie Douglas Austin Jr., 71, and Charles Earl Grob, 41, all also of Houston; John David Brotherton, 62, League City; and Scott Russell Sieck, 62, Winter Park, Florida.
Today, U.S. District Judge Vanessa Gilmore sentenced her to 12 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court noted the large sum of money lost by the victims in the case and that there were “some people that lost all their money.”
Previously, Judge Gilmore ordered Farmer to serve a sentence of 72 months. Brotherton, Grob and Massey were ordered to serve 60 months, 12 months and three years of probation, respectively, while Eddie Austin and Sieck both were ordered to serve 36-month terms of imprisonment.
All seven must also pay restitution the victims of their scheme. Farmer and Sieck were each ordered to pay $8 million, while Eddie Austin must pay $6.6 million. The court ordered Grob and Massey to pay $4.5 and $1 million, respectively while Brotherton must pay $6.2 million. The court held open the amount of restitution Carolyn Austin will be required to pay to enable the parties to submit an agreed upon amount.
Farmer, Eddie Austin, Sieck, Brotherton and Grob were further ordered to forfeit additional funds to the United States in amounts ranging from $242,907 to $6 million.
The defendants admitted to their involvement in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, they obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.
Farmer and Brotherton are in custody serving their sentence at a U.S. Bureau of Prisons facility. Eddie Austin, Carolyn Austin and Sieck were permitted to remain on bond and voluntarily surrender at a later date. Grob has completed his sentence and is currently on supervised release.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.
Ryan Bacon Pleads Guilty to Federal OffensesRead the Press Release
WILMINGTON, Del. – Ryan Bacon, 37, of Wilmington, pled guilty in federal court today, accepting his role in the kidnapping and killing of a New Castle County woman during the morning of June 6, 2017, and the shooting of a 6-year-old boy that same day. U.S. District Judge Leonard P. Stark accepted the plea.
According to court documents, Bacon, who also goes by “Buck 50”, pled guilty to the following offenses: (1) Conspiracy to Commit Kidnapping; (2) Discharging of a Firearm During and in Relation to a Crime of Violence; (3) Conspiracy to Commit Stalking; and (4) Stalking. As part of the plea, Bacon agreed to serve 30 years in federal prison. Bacon’s sentencing date has not yet been set.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement. The FBI’s Delaware Violent Crime Safe Streets Task Force investigated the case, along with significant assistance from the Wilmington Police Department, New Castle County Police Department, Delaware State Police, Elkton Police Department, and the Delaware Attorney General’s Office. Assistant U.S. Attorneys Maureen McCartney, Jesse S. Wenger, and Christopher L. de Barrena-Sarobe are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 18-cr-00075-1(LPS).
Ronald C. Gathe, Jr. Sworn in as United States Attorney for the Middle District of LouisianaRead the Press Release
Ronald C. Gathe, Jr. has been sworn in as the United States Attorney for the Middle District of Louisiana by District Judge Brian A. Jackson. Mr. Gathe was nominated by President Joseph R. Biden and confirmed by the United States Senate last week.
A Louisiana native and an attorney for more than two decades, Mr. Gathe is a career prosecutor. Most recently, he served as the Chief of Trials in the Office of the District Attorney for the 18th Judicial District Court. Previously, he served for 19 years as an Assistant District Attorney and Section Chief in the Office of the District Attorney for the 19th Judicial District Court where he prosecuted a wide range of criminal matters, including crimes of violence, theft, and various drug charges. Mr. Gathe also operated his private practice at the Law Offices of Ronald C. Gathe, Jr. & Associates, L.L.C., where he concentrated on general areas of law including personal injury, estate planning, and corporate matters. Mr. Gathe began his legal career as a judicial law clerk for the Honorable James Best in Iberville, West Baton Rouge, and Pointe Coupee Parishes.
Mr. Gathe received his B.S. from Xavier University of Louisiana, New Orleans, and his Juris Doctor from Southern University Law Center, Baton Rouge.
United States Attorney Ronald C. Gathe, Jr. stated, “I’m really looking forward to this part of this chapter of my life and look forward to serving the people of Louisiana.”
Providence Man Pleads Guilty in Schemes That Defrauded Home Improvement StoresRead the Press Release
PROVIDENCE, R.I. – A Providence man today admitted in federal court that he participated in a scheme that defrauded home improvement stores in Rhode Island and Massachusetts of more than $140,000, repeatedly purchasing construction tools and supplies using stolen credit and credit card information, announced United Sates Attorney Zachary A. Cunha.
Appearing before U.S. District Court Judge William E. Smith, Jose Brens, 40, pleaded guilty to an indictment charging him with conspiracy to commit access device fraud and seven counts of access device fraud.
Brens admitted to the court that he and others unlawfully obtained credit card information that was used to purchase tools and building products from at least six Home Depot and Lowes stores in Rhode Island and Massachusetts. Breen admitted that he defrauded Home Depot stores of $140,578.
According to court documents, in September 2018, a Smithfield resident contacted the Smithfield Police Department to report that his credit card information has been fraudulently used to purchase $2,100 worth of construction items and tools at a Home Depot in Smithfield. A joint investigation with the United States Secret Service determined that members of conspiracy carried out this and similar schemes in multiple stores, repeatedly making purchases of between $1,000 and $4,000, sometimes making multiple purchases on the same date.
Brens is scheduled to be sentenced by U.S. District Court Judge William E. Smith on March 17, 2022. Conspiracy to commit access device fraud and access device fraud are punishable by statutory penalties of up to 10 years in federal prison to be followed by a term of supervised release of 3 years.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Prior Federal Defendant Sentenced to More Than 34 Years After Jury TrialRead the Press Release
RALEIGH, N.C. – A Havelock man was sentenced today to 360 months in prison for conspiracy and distribution-related offenses involving over one kilogram of heroin. On June 30, 2021, Daryl Godette was convicted of all charges following a three-day jury trial.
According to court documents and other information presented in court, Daryl Lee Godette, 36, led a Havelock heroin distribution conspiracy for approximately one year from 2018 to 2019. Godette used a co-conspirator to deliver heroin, which Godette stored in a separate stash house. A search of the stash house revealed over a kilogram of heroin stored throughout, including in a child’s toy. When law enforcement approached Godette, he fled, leading them in a car chase before being apprehended.
At all relevant times, Godette was on federal supervised release for a prior federal drug conviction. He was sentenced to 57 months for the revocation of that supervised release, as well. U.S. District Judge Dever stated this was “extremely serious conduct” involving an “absolutely devastating drug.”
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Havelock Police Department, Carteret County Sheriff’s Office, and Drug Enforcement Administration investigated the case, and Assistant U.S. Attorneys Lucy Brown and John Parris 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. 4:19-CR-82-D.
Pike County Man Sentenced to 39 Months in Prison for Possession of Firearm by a Convicted FelonRead the Press Release
Jackson, Mississippi – A Pike County man was sentenced to 39 months in federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, David Lane Roberts, 32, was found in possession of a firearm by Pike County Sheriff’s Deputies when they sought to apprehend him on a Mississippi Department of Corrections warrant for probation violations.
Roberts pled guilty on September 7, 2021, to being a felon in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Clay B. Baldwin prosecuted the case.
Physician Agrees to Pay $375,000 to Resolve False Claims Act Allegations of P-Stim Device FraudRead the Press Release
Gulfport, Miss. - A Mississippi physician and his family medical practice have agreed to pay $375,000 to resolve False Claims Act allegations of P-Stim Device Fraud, announced U.S. Attorney Darren J. LaMarca.
Kevin Cooper M.D., and his family medical practice, Cooper Family Medical Center, have agreed to pay $375,000 to resolve allegations that they knowingly and improperly billed Medicare for acupuncture devices in violation of the False Claims Act (“FCA”).
The United States alleges that over a one-year period Dr. Cooper, through Cooper Family Medical Center, billed Medicare over $900,000 for non-reimbursable acupuncture devices that were not surgically implanted despite using billing codes indicating that they were. As set forth in the parties’ settlement agreement, the United States alleges that from July 2018 to August 2019, Dr. Cooper routinely presented, or caused to be presented, false claims to Medicare using CPT Code L8680 (implantable neurostimulator, pulse generator) and/or CPT Code 64555 (implantation of peripheral nerve neurostimulator electrodes, accessed through the skin), and received $179,106.72 from Medicare to which he and his clinic were not entitled.
P-Stim is an electro-acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for such acupuncture devices, nor did Dr. Cooper perform surgical implantation of these devices as he billed to Medicare. Other brand names for this device include Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
“This office will hold accountable those providers who are improperly paid for non-reimbursable acupuncture under the guise of surgically implanted neurostimulators,” said U.S. Attorney Darren LaMarca.
The FCA claims settled are allegations only, and there has been no determination of liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General.
Philadelphia Pharmacy and Its Owner Agree to Pay $1 Million to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney Jennifer Arbittier Williams announced that the owner of LAN Apothecary, Inc. (“LAN Apothecary”) in Philadelphia has agreed to pay $1,000,000 to resolve liability under the False Claims Act.
LAN Apothecary and owner-pharmacist Bachtu (“Theresa”) M. Phan will jointly pay $1,000,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2014 to June 29, 2019. These medications include, but are not limited to, Januvia, Janumet, Zetia, Tradjenta, Linzess, Advair Diskus, Namenda XR, and Dexilant. As part of the resolution with the United States, LAN Apothecary and Theresa Phan will enter into a corporate integrity agreement with the Department of Health and Human Services, Office of the Inspector General. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct quarterly third-party audits of their Medicare and Medicaid claims and drug inventory.
“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. That responsibility was allegedly abused for profit here,” said U.S. Attorney Williams. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey and Auditor George Niedzwicki.
Philadelphia Contractor Convicted at Trial of Bribing OSHA InspectorRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tony Ren, 58, of Philadelphia, Pennsylvania was convicted today at trial for bribing a public official from the Occupational Safety and Health Administration (OSHA). The charges arose from Ren’s attempts to bribe an OSHA Compliance Safety and Health Officer in order to induce him not to report safety violations at a Philadelphia construction site run by Ren, and to eliminate previous safety violations and corresponding fines.
In September 2021, the defendant was charged by Indictment with two counts of bribery. According to the Indictment, in October 2017, the OSHA official conducted an inspection of a worksite on Arch Street in response to an imminent hazard report. During the inspection, the official observed numerous violations of OSHA standards including debris in passageways, electrical issues, holes in the floor, and gas tanks with broken pressure gauges. The Indictment alleges that on two separate dates in November 2017, Ren offered $1,500 cash bribes to the OSHA official in exchange for the official falsifying the inspection results and agreeing not to report the violations so that the defendant could avoid the substantial penalties that would follow.
“OSHA inspections and standards exist for a reason: to prevent injuries and protect workers,” said U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant attempted to subvert this system of protections by bribing an official to look the other way on multiple workplace safety violations. This case should serve as a warning to all employers that our Office will investigate and prosecute fully this type of corruption.”
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Pair of Armed Carjackers Sentenced to Federal PrisonRead the Press Release
Memphis, TN – Ramone Ervin, 21, and Jaquarious Douglas, 22, have been sentenced to federal prison for carjacking and using a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on February 26, 2020, at 2:41 pm, the victim had taken her 2017 BMW 330 to Gateway Tires in Memphis for repairs. As the victim proceeded to leave, Jaquarious Douglas approached the victim's car, pointed a handgun, and told her to get out of the car. The victim got out and ran into the business.
Douglas drove off in victim’s car and Ervin followed in a black Infinity. When law enforcement arrived, they retrieved video surveillance from Gateway which showed the carjacking and captured the images of Douglas getting out of the Infinity. About an hour later, officers located both cars and a chase ensued. Ervin, who drove the Infinity, wrecked the car, and was placed into custody. Ervin admitted to his participation in the carjacking. Although Douglas evaded law enforcement during the chase while driving the victim’s BMW, he was later located and placed into custody.
On October 6, 2021, U.S. District Judge Jon P. McCalla sentenced Douglas to 130 months imprisonment to be followed by three years supervised release. Ervin was sentenced on December 10, 2021, to 125 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department – Violent Crime Unit investigated this case.
The U.S. Attorney’s Office for the Western District of Tennessee prosecuted this case on behalf of the government.
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Pain Clinic Owners Sentenced to Federal Prison for Illegal Opioid PrescribingRead the Press Release
Acting United States Attorney Richard G. Frohling announced that on December 10, 2021, Lisa Hofschulz (age: 61), formerly a licensed nurse practitioner in the state of Wisconsin, was sentenced to 20 years in federal prison, and Robert Hofschulz (age: 74) of Wauwatosa, Wisconsin, was sentenced to three years in federal prison for their involvement in a drug-trafficking conspiracy and “pill mill” operation.
Lisa Hofschulz and Robert Hofschulz were the owners and operators of Clinical Pain Consultants (“CPC”), which operated in Wauwatosa, Wisconsin. Following a 9 day trial in August 2021, a federal jury found Lisa Hofschulz guilty of unlawfully distributing Oxycodone, Methadone, and other opioids outside of a professional medical practice and not for a legitimate medical purpose. The jury also found that Lisa Hofschulz’s unlawful distribution of controlled substances resulted in the death of at least one patient. The jury found Robert Hofschulz guilty of conspiracy to distribute controlled substances and unlawful distribution of controlled substances.
The evidence presented at trial established that Lisa and Robert Hofschulz ran CPC as a “pill mill” through which they distributed millions of opioids and other controlled substances throughout 2015 and 2016. The evidence showed that Lisa Hofschulz prescribed opioids and other dangerous controlled substances to 99% of patients, each of whom paid $200 in cash per month for their prescriptions.
The evidence also established that Lisa and Robert Hofschulz distributed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including by mailing prescriptions to favored patients and prescribing to customers who were not seen by a medical provider. For at least one patient, Lisa Hofschulz’s prescriptions resulted in death. According to the trial evidence, during 2015 and 2016, Lisa Hofschulz was the number one prescriber of oxycodone and methadone in Wisconsin, as compared to all Medicaid providers.
“The opioid crisis continues to disrupt lives and cause injuries and overdose deaths throughout Wisconsin,” said Acting United States Attorney Frohling. “For many, the road to opioid addiction began with prescription drugs like the ones that CPC and the Hofschulzes willingly provided in exchange for cash. The Justice Department remains committed to holding accountable individuals who abuse their prescribing privileges to enrich themselves without regard to the damage done to their patients and their communities.”
“With nearly 100,000 Americans dying each year due to opioid overdose, medical professionals who violate their oaths to do no harm must be fully held accountable,” said John G. McGarry, Assistant Special Agent in Charge for U.S. Drug Enforcement Administration-Wisconsin. “The DEA will continue keeping Wisconsin families safe from opioids that have been diverted from legitimate medical supplies.”
The Drug Enforcement Administration investigated the case with the assistance of the Internal Revenue Service, Division of Criminal Investigations. Assistant United States Attorneys Julie F. Stewart and Laura S. Kwaterski prosecuted the case.
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Operating Partner of Oil and Gas Maintenance Business Sentenced to Prison for Wire FraudRead the Press Release
GRAND JUNCTION – The U.S. Attorney’s Office for the District of Colorado announces that Cory Thompson, age 44, of Fruita, was sentenced to 41 months in federal prison and ordered to pay over $1.9 million in restitution for wire fraud.
According to the plea agreement, Thompson entered into a business partnership with the victim to operate a company called DACK Energy Services, LLC (“DACK”), which conducted maintenance services for oil and gas companies in Colorado and surrounding areas. The defendant acted as the operating partner. In that role, Thompson was solely responsible for managing work production, hiring employees, procuring equipment, and establishing contracts. The victim, in turn, provided investment capital for the business.
From January 2014, to January 2016, the defendant submitted invoices to the victim, The invoices purportedly represented work performed by DACK. The victim relied on these invoices, believing they reflected accounts receivables and future income for DACK. However, many of these invoices were completely fabricated and did not represent any future income the company would receive. Often, the defendant had not established any business relationship with the companies identified in the fabricated invoices. In total, more than $1.4 million in fabricated invoices were presented by the defendant. Based on the false information provided by the defendant, the victim borrowed $1.25 million and invested that money into the company.
In addition to creating false invoices, the defendant funneled proceeds from the company into an account that he controlled. Thompson used these monies for his personal benefit. In addition, he ensured friends and family members were on DACK’s payroll, but these individuals performed little, if any, actual work. Instead, they would perform personal services for the defendant and his immediate family.
“In addition to losing their freedom, fraudsters convicted in Colorado often give up the property they purchase with fraudulent proceeds,” said United States Attorney Cole Finegan. “The defendant in this case has to give up trucks, jet skis, a car, an SUV, a boat, and pay nearly two million dollars in restitution, as well as serve a long time in federal custody.”
“The sentence handed down in this case rightly holds Mr. Thompson accountable for defrauding his business partner of millions of dollars that went to support a lavish lifestyle,” said FBI Special Agent in Charge Michael Schneider of the Denver Division. “Our office works diligently to seek justice for members of our community who have been impacted economically or otherwise by criminal activity. Thank you to all who were involved in ensuring the victims in this case recovered some of their losses.”
United States District Court Judge Christine M. Arguello sentenced the defendant on December 8, 2021. In addition to a term of incarceration and restitution, the Court ordered the forfeiture of numerous assets purchased using money the defendant obtained as part of his scheme, including a boat, jet skis, and several vehicles. At the conclusion of the sentencing hearing, the defendant was remanded into custody to immediately begin serving his sentence.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Jeremy Chaffin handled the prosecution and Assistant United States Attorney Elizabeth Young handled the forfeiture.
Case Number: 19-cr-00082-CMA-GPG
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Onondaga County Man Sentenced for Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Timothy B. Pease, age 32, of Kirkville, New York, was sentenced today to serve 160 months in prison for his distribution, receipt, and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his prior guilty plea, Pease admitted that from December 2019 through January of 2020, he used various online social networking applications to receive and distribute child pornography. Pease also admitted that during this time he used another social networking application, on which he posed as a teenage girl, to solicit teenage boys to produce sexually explicit images and videos of themselves, which Pease then distributed to others. Pease also admitted to possessing thousands of images and videos of child pornography at the time of his arrest on January 23, 2020.
Chief United States District Judge Glenn T. Suddaby also imposed a 20-year term of supervised release, which will start after Pease is released from prison. Pease will also be required to register as a sex offender.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case was prosecuted by Special Assistant U.S. Attorney Adrian LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Omaha Woman Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
Acting United States Attorney Jan Sharp announced that Paw Moo, age 29, of Omaha, Nebraska, was sentenced on December 10, 2021 in federal court in Omaha for trafficking in counterfeit goods. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Moo to probation for a term of three years.
In February 2021, U.S. Customs and Border Protection in Anchorage, Alaska, seized a shipment of counterfeit designer purses destined for Moo’s residence in Omaha, Nebraska. On March 23, 2021, Homeland Security Investigations (HSI), using an undercover officer, executed a controlled delivery of the seized package to Moo’s residence in Omaha. Moo accepted the package and HSI agents executed a search of her residence where numerous items with counterfeit marks were located. The items were handbags, clothes, blankets, phone cases, belts and a wallet from brands to include Louis Vuitton, Chanel, Gucci, Yves St. Laurent, Michael Kors, Coach and Nike. The total manufacturers’ suggested retail price of the seized merchandise exceeded $118,000.
Moo stated she began to sell items online from her residence in the beginning of March 2020 and began selling counterfeit items in the Fall of 2020, a timeframe that was consistent with her importation history.
This case was investigated by Homeland Security Investigations.
Ohio man sentenced to 10 years for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Giovanni Geonard Ingersoll, of Akron, Ohio, was sentenced today to 121 months of incarceration for methamphetamine distribution, United States Attorney William J. Ihlenfeld, II announced.
Ingersoll, age 29, pled guilty in July 2020 to one count of “Aiding and Abetting Distribution of Methamphetamine.” Ingersoll admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Chief U.S. District Judge Gina M. Groh presided.
Ohio man sentenced for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Victor Ramel Chancler Witcher, of Copley, Ohio, was sentenced today to five years of probation for methamphetamine distribution, United States Attorney William J. Ihlenfeld, II announced.
Witcher, age 37, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in March 2019. Witcher admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral, Grant, and Randolph Counties.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
North Attleboro Man Indicted, Arraigned on Child Pornography and Distribution of Animal Abuse Video ChargesRead the Press Release
PROVIDENCE, R.I. – A North Attleboro man indicted by a federal grand jury in Providence on charges that he accessed, possessed, received, and distributed child pornography, and distributed an animal crush video, pled not guilty today at his arraignment in U.S. District Court in Providence, announced United States Attorney Zachary A. Cunha.
Samuel Maigret, 25, pled not guilty to a six-count indictment charging him with distribution of child pornography, receipt of child pornography, possession of child pornography, access with intent to view child pornography, distribution of an animal crush video, and transfer of obscene material (the animal crush video).
According to court documents and information presented to the court, during a June 2021 court-authorized search of Maigret’s then Pawtucket residence and of a cellphone located on his person, Homeland Security Investigations agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force discovered a significant quantity of images and videos depicting adult males involved in sexual acts with infants. Additionally, a forensic review of Maigret’s digital storage devices revealed evidence that Maigret possessed and allegedly distributed a video via an online application that depicts an individual causing serious injury to a dog by using an object to penetrate the dog.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Nine Federally Charged, Arrested in Middle GA Drug Trafficking InvestigationRead the Press Release
MACON, Ga. – Nine individuals were taken into custody today and are facing federal charges from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Drug Enforcement Administration (DEA) into a group of alleged drug traffickers in Houston and Bibb Counties. An indictment is only an allegation of criminal conduct, and the defendant is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Federal arrest warrants were executed in Warner Robins, Georgia, and elsewhere, today resulting from a federal indictment returned on Nov. 16, charging the following individuals:
- Antoine Riley, 44, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of possession of a firearm by a previously convicted felon, one count of conspiracy to distribute controlled substances, one count of distribution of cocaine base, one count of possession of cocaine with intent to distribute and one count of possession of cocaine base with intent to distribute;
- Antonio Raines, 37, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances, one count of distribution of cocaine base and one count of possession of methamphetamine with intent to distribute;
- Latanya Williams, 39, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances, one count of possession of cocaine with intent to distribute and one count of possession of cocaine base with intent to distribute;
- Brittany Smith, 28, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances and one count of possession of methamphetamine with intent to distribute;
- Emanuel Ivey, 35, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to distribute controlled substances and one count of possession of cocaine with intent to distribute;
- Armard Davis, 42, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and one count of possession of methamphetamine with intent to distribute;
- Joseph Day, 48, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and one count of distribution of cocaine base;
- Desmond Griffin, 29, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and one count of distribution of cocaine base; and,
- Obie Wright, 66, of Warner Robins, is charged with one count of conspiracy to distribute controlled substances and two counts of distribution of cocaine base.
The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum of five years up to a maximum life sentence and a $250,000 fine;
The charge of possession of a firearm by a convicted felon carries a maximum ten years in prison and a $250,000 fine;
The charges of conspiracy to distribute controlled substances and possession of methamphetamine each carry a mandatory minimum sentence of ten years up to a maximum life sentence and a $10,000,000 fine;
The charge of distribution of cocaine base carries a maximum sentence of twenty years and a $1,000,000 fine; and,
The charges of possession of cocaine with intent to distribute and possession of cocaine base with intent to distribute each carry a mandatory minimum sentence of five years up to a maximum sentence of 40 years and a $5,000,000 fine.
Initial appearances for the defendants occurred today before U.S. Magistrate Judge Charles H. Weigle.
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.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), United States Marshals Service (USMS), the Monroe County Sherriff’s Office, the Bibb County Sherriff’s Office, and the Warner Robins Police Department.
Assistant U.S. Attorney Alex Kalim is prosecuting the case.
- Antoine Riley, 44, of Warner Robins, is charged with one count of possession of a firearm in furtherance of a drug trafficking crime, one count of possession of a firearm by a previously convicted felon, one count of conspiracy to distribute controlled substances, one count of distribution of cocaine base, one count of possession of cocaine with intent to distribute and one count of possession of cocaine base with intent to distribute;
New York Man Pleads Guilty to Multi-Drug ConspiracyRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to his role in a drug distribution conspiracy involving heroin, fentanyl and cocaine.
Wilkin Cedano, 37, of Brooklyn, N.Y., pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, cocaine and 40 grams or more of fentanyl. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 31, 2022. Cedano was charged on Nov. 16, 2021.
From approximately November 2019 through December 2019, Cedano conspired with others to transport fentanyl and 1,000 pills containing controlled substances from New York to Lynn, Mass., for sale to a cooperating witness. On Dec. 2, 2019, Cedano met with the cooperating witness in the parking lot of a Market Basket in Lynn and presented two packages of fentanyl wrapped in cellophane and two pill bottles. Cedano was subsequently arrested. A search of Cedano’s car resulted in the recovery of a plastic bag tucked beneath the steering column that contained additional controlled substances. In total, 938 pills were recovered containing fentanyl, or a mixture of heroin and fentanyl.
The charge of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl and cocaine provides 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. 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Lynn Police Department provided valuable assistance in the investigation of this case. Assistant U.S. Attorney Samuel R. Feldman of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
New Jersey Man Sentenced to 12 Years in Prison for Promoting Tax Fraud SchemeRead the Press Release
A New Jersey mortgage underwriter was sentenced today to 12 years in prison for helping others file false tax returns claiming large refunds from the IRS, obstructing the IRS’s efforts to recover those illegal refunds and failing to file a tax return.
John Barry Jr., of Pemberton, was convicted by a jury on July 23 of conspiring to defraud the IRS, aiding and assisting the preparation of false tax returns, obstructing the IRS and failing to file a tax return. According to court documents and testimony, in 2015 and 2016, Barry conspired with individuals in Georgia, North Carolina, Virginia and New York to promote a “mortgage recovery” tax fraud scheme in which Barry and his co-conspirators obtained tax refunds for their clients based on fraudulent tax returns. Barry and his co-conspirators told the clients they could extinguish their outstanding mortgage debts by filing forms with the IRS claiming a large amount of taxes had been withheld. Those withholding claims, which Barry and his co-conspirators knew were false, caused the IRS to issue a total of more than $4 million in refunds to the clients. Barry typically charged each client a fee of between 20% to 35% of the refund the client obtained, and then he split those fees with some of his co-conspirators.
In addition to his role in the “mortgage recovery scheme,” Barry did not file his own 2016 return despite earning income in excess of the filing threshold, and he did not report or pay taxes on the income generated from the scheme in that tax year.
When the IRS discovered the fraud and attempted to recover the wrongfully paid refunds, Barry obstructed the agency by providing clients with fraudulent documents to send to the IRS, directing clients to conceal his role in filing their false returns and advising a client to remove funds from his bank account to prevent collection efforts.
In addition to the term of imprisonment, U.S. District Judge Robert B. Kugler ordered Barry to serve three years of supervised release and to pay approximately $4,240,733 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
The IRS Criminal Investigation Division investigated the case.
Trial Attorneys Sean Green and Samuel Bean of the Justice Department’s Tax Division prosecuted the case.
Nampa Woman Pleads Guilty to Failure to Account for and Pay over Employment TaxRead the Press Release
BOISE – A Nampa woman pleaded guilty to failure to account for and pay over employment tax.
According to court records, from approximately 1999 to 2019, Nicole Beth Howerzyl, 69, of Nampa, was a corporate officer for Dave’s Motorcycle, Inc. (DMI) in Nampa. DMI was in the business of selling and servicing motorcycles. During that time, Howerzyl handled the bookkeeping for DMI, and exercised control over DMI’s financial affairs, including approving all payments by DMI and controlling all of DMI’s bank accounts.
For the calendar years 2013 to 2019, DMI employed approximately 15 to 25 people per year. During that period, DMI withheld taxes from its employees’ paychecks, including federal income taxes, Medicare, and social security taxes, often referred to as "payroll taxes." Howerzyl directly issued payroll checks twice per month and withheld payroll taxes from employees’ paychecks. Howerzyl also issued annual Forms W-2 to the employees of DMI, which reflected their gross wages, as well as their payroll taxes.
As a corporate officer of DMI, Howerzyl was aware that she had the corporate responsibility to collect, truthfully account for, and pay over DMI’s payroll taxes to the Internal Revenue Service (IRS) and file an Employer’s Quarterly Federal Income Tax Return (Form 941) following the end of each calendar quarter.
DMI, however, made no payments to the IRS for the calendar years 2013 to 2019. DMI further failed to file quarterly employment tax returns (Forms 941) with the IRS. Specifically, for the tax years 2013 to 2019, Howerzyl failed to account for $4,874,572.73 in wages at DMI and pay over $1,161,135.25 to the IRS in payroll taxes.
As part of the plea agreement with the Government, Howerzyl agreed to pay outstanding restitution to the IRS in the amount of $373,552.21.
“Collecting payroll taxes from workers then failing to pay over those amounts to the federal government is a gross breach of trust and is not a victimless crime,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “It is stealing from the workers, as well as the public, and hurts all Americans. Those who flaunt federal tax laws, must know that they will be investigated and prosecuted," he said.
“Defrauding the government by failing to submit payroll taxes to the IRS is also a crime against all honest taxpayers as the lost tax revenue is burdened by everyone else,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “Ms. Howerzyl’s plea today serves as an important reminder that IRS:CI is committed to bringing to justice those who evade their corporate tax responsibilities for their personal gain.”
Howerzyl is scheduled to be sentenced on March 15, 2022 and faces a statutory maximum of five years in federal prison, a $250,000 fine, and up to three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho commended the efforts of the Internal Revenue Service Criminal Investigation, which led to charges.
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