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13 December 2021
Big Stone Gap Man Sentenced for Unemployment, Mail FraudRead the Press Release
ABINGDON, Va., – A Big Stone Gap, Virginia man was sentenced last week to 60 months in federal prison and ordered to pay $164,470 in restitution for his part in a much larger conspiracy to defraud the government of more than $1.5 million in pandemic-related unemployment funds.
Johnny Hobbs, 37, joined co-defendant Farren Ricketts, 31, and others in a scheme to file fraudulent claims for pandemic unemployment benefits via the Virginia Employment Commission [VEC] website. Co-conspirators submitted unemployment claims containing materially false representations for various individuals who were known to be ineligible to receive pandemic unemployment benefits.
While incarcerated, Hobbs joined the scheme in May 2020, initially seeking to receive unemployment benefits for himself. After he was released from jail, Hobbs approached Ricketts, and the other co-conspirators, and accepted a limited role with their criminal enterprise submitting claims to the VEC and recertifying weekly claims for other co-conspirators.
Ricketts, who pleaded guilty to similar charges, will be sentenced later this week.
United States Attorney Christopher R. Kavanaugh announced the sentence today.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service - Criminal Investigation (IRS-CI), the Russell County Sheriff’s Office, and the Norton Police Department in Wise County investigated the case.
Assistant United States Attorney Daniel J. Murphy is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
Bath Man Sentenced for Defrauding Employer of over $2.7 Million and Related OffensesRead the Press Release
PORTLAND, Maine: A Bath man was sentenced today in U.S. District Court in Portland for wire fraud, money laundering, transferring property to prevent seizure, and aggravated identity theft, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge D. Brock Hornby sentenced David Altenburg, 46, to ten years in prison followed by 18 months of supervised release. He was also ordered to pay $2,807,080 in restitution to victims of the offenses. He pleaded guilty on June 24, 2021.
According to court records, between February 2019 and September 2020, Altenburg used his access to his employer’s financial accounts to conduct approximately 106 wire transfers and other withdrawals. To execute his scheme, he fraudulently used the name and email address of a firm director to purportedly authorize certain transfers. In total, he diverted more than $2.7 million to accounts under his control. He used the diverted monies to fund travel; pay down his mortgage; and purchase luxury vehicles, jewelry, clothing, and other items. After learning he was under investigation, he transferred title of his residence to a trust managed by his wife in an effort to prevent its seizure.
Prior to entering his guilty plea, Altenburg opened an online bank account. Despite agreeing to surrender all proceeds of his criminal conduct, he funded this account through the sale of criminally derived property. He then spent money on visits to resorts in Maine and New Hampshire and other non-essential items. This conduct resulted in his loss of credit for accepting responsibility for the offenses.
The FBI investigated this case with assistance from the Bath Police Department.
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Bahamian Man Charged in False Claim to United States Citizenship, Passport and Voter FraudRead the Press Release
RALEIGH – Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina announced today that on November 16, 2021, a federal grand jury sitting in the Eastern District of North Carolina returned a sealed, ten-count indictment charging Garbant Piquant with passport fraud, voting by an alien, and falsely claiming to be a United States citizen in order to register to vote.
Garbant Piquant, 53, residing in Garner, was arrested on December 9, 2021 and will be presented before U.S. Magistrate Judge Robert T. Numbers, II today. The case is assigned to U.S. District Judge James C. Dever III.
According to court documents and other information presented in court, on October 6, 2014, Piquant applied for a renewal of his previously issued U.S. passport. The U.S. Department of State’s Diplomatic Security Service (DSS) initiated an investigation into the veracity of the Virginia birth certificate that Piquant had previously used to establish U.S. citizenship. Record checks with the Virginia Office of Vital Statistics indicated that the birth certificate was not on record with the Commonwealth of Virginia and had not been issued. Further investigation by DSS located a birth record for Piquant in the Bahamas, as well as U.S. Immigration records that reveled Piquant’s brother had previously filed a petition for lawful permanent residence on his behalf.
As a result of Piquant falsely claiming to be a U.S. citizen and being previously issued a U.S. passport on November 6, 2018, Piquant cast a ballot in Wake County for the primary election. Additionally, on February 11, 2019, Piquant submitted his fraudulently obtained U.S. passport and voter registration card to the North Carolina Division of Motor Vehicles in order to procure a Real Identification Driver’s License.
From November 2018, through November 2020, Piquant, voted in all Primary and General Elections, claiming that he was a U.S. citizen. Piquant cast ballots in person, early voting, and by using absentee ballots.
If convicted of Counts One or Three, passport fraud, Piquant faces up to ten years in federal prison and fines of up to $250,000 or both. If convicted of Counts Two, Seven or Ten, voting by alien, Piquant faces up to one year in federal prison and fines of up to $100,000 or both. If Piquant is convicted of counts Four, Six, or Nine, false claim of U.S. citizenship, Piquant faces up to three years in federal prison and fines up to $250,00 or both. If convicted of Counts Five or Eight, false statement and claim of U.S. citizenship in order to register to vote, Piquant faces up to five years in federal prison and fines up to $250,000 or both.
This case is being investigated by DSS, Homeland Security Investigations, and the North Carolina, Division of Motor Vehicles, License and Theft Bureau.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-417-01D.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Atlanta man sentenced to prison for attempting to conceal firearms in overseas shipment of household goodsRead the Press Release
SAVANNAH, GA: An Atlanta man has been sentenced in federal court after admitting he attempted to hide firearms in an overseas shipment of goods.
Shawn Sabi, 53, of Atlanta, was sentenced to 19 months in prison after pleading guilty to Submitting False or Misleading Export Information, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Sabi also was ordered to serve two years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“There are very strict laws in place to restrict shipment of firearms overseas, and Shawn Sabi violated those laws,” said U.S. Attorney Estes. “He is now being held accountable, and his sentence should serve as a warning that our law enforcement partners are ever vigilant in monitoring traffic through our ports.”
In March 2021, agents from U.S. Customs and Border Protection (CBP) flagged a shipment moving through the Port of Savannah, labeled “115 pieces used household goods and personal effects,” based on discrepancies in declarations Sabi filed for the shipment. An agent from the U.S. Department of Commerce Bureau of Industry and Security (BIS) reviewed the records, leading to a search of the container in which a shotgun, a rifle, and three handguns were discovered concealed inside the legs of an aluminum shelving unit, along with ammunition and other materials.
In most cases, it is illegal to export firearms to another country without a federal export license. BIS confirmed that Sabi does not possess such a license.
“Firearms illegally exported from the United States can often lead to dire consequences overseas,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS) Office of Export Enforcement, which oversees BIS investigations in the Southeast. “Disrupting those that supply illegal weapons from the United States is a top priority of BIS Special Agents, and we will continue to work with our law enforcement partners to prevent firearms from potentially falling into the wrong hands abroad.”
“U.S. Customs and Border Protection (CBP) takes great pride in fostering collaboration with our partner government agencies to diligently enforce U.S. export control laws as part of our overall duties and responsibilities in protecting and preserving our national security, while continuing to facilitate lawful trade,” said Area Port Director Henry DeBlock.
“HSI is committed to combating illegal firearms smuggling activities that fuel violence both domestically and abroad,” said Homeland Security Investigations Atlanta Special Agent in Charge Katrina Berger. “This case highlights how law enforcement partnerships work together to protect our communities and our nation.”
The case was investigated by the U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, Miami Field Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Customs and Border Protection; and Homeland Security Investigations; and prosecuted for the United States by Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard.
Anchorage Man Sentenced to over Seven Years in Prison for Drug TraffickingRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by U.S. District Chief Judge Timothy M. Burgess to over seven years in federal prison for possession of more than 50 grams of methamphetamine with the intent to distribute. Gian Carol Clemente Pangilinan, 25, was found guilty after a three-day federal jury trial in January 2020.
According to court documents and evidence presented at trial, Anchorage Police Officers (APD) were looking for Pangilinan on July 9, 2019 and found him in the Burger King parking lot near Penland Parkway. Once Pangilinan saw the police, he scaled a fence and fled on foot into the Penland Parkway neighborhood, shedding items of clothing and other personal items along the way including his cellular telephone and a baggie containing 162 grams of 99 percent pure methamphetamine. Despite his attempt to evade law enforcement, APD pursued Pangilinan on foot and took him into custody.
Evidence pulled from Pangilinan’s cell phone, such as text messages and direct messages on social media, established that since December 2018 Pangilinan had been distributing many different types of illegal drugs (including heroin, cocaine and methamphetamine) in quantities ranging from one gram to several ounces. Specifically, individuals would contact Pangilinan via text or direct message on social media asking for different quantities of illegal drugs. Pangilinan would then respond with a price and agree to meet up with them.
The jury also heard evidence of a separate incident that occurred in February 2019, when APD responded to a call of shots fired near the Mountain View car wash. When APD attempted to contact the defendant, he tried to flee on foot. During the chase, Pangilinan again began shedding personal items including his cellular telephone and a baggie of methamphetamine.
At the time of the July 2019 incident, Pangilinan was out on release from the State of Alaska in four pending criminal cases including Vehicle Theft in the First Degree, Assault in the Third Degree, Resisting Arrest and Violating Conditions of his Release.
“The defendant couldn’t escape the law, and neither will other dealers wanting to profit from the misery of people addicted to these illegal and deadly drugs,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “We will continue to work together with law enforcement partners to ensure that drug traffickers are held responsible for the harm they cause in communities across Alaska.”
“Anchorage Police Officers work very hard to keep Anchorage safe and to keep drug trafficking off of our streets. Pangilinan’s arrest helps accomplish both of these goals,” said Anchorage Chief of Police Kenneth McCoy. “We have a strong relationship with our law enforcement partners and we will continue coordinated efforts towards stopping drug trafficking in our city.”
In November 2020 an unsealed indictment charged Gian Carlo Pangilinan with conspiracy, theft of firearms, possession of stolen firearms and tampering with evidence related to the June 6, 2019, burglary of Granny’s Guns, a federally licensed firearms dealer located in Anchorage. Also charged in the indictment are: Muna Junior Rhode, 22, Kao Chiang Saelee, aka “Robbie,” 39, and Hans Mikaele Wells, aka “Mika,” 25.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA) conducted the investigation leading to the successful prosecution of this case.
Assistant U.S. Attorney Kelly Cavanaugh prosecuted the case.
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Amtrak Employee Admits Defrauding Amtrak of More Than $76,000 Worth of Chainsaws and Chainsaw PartsRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey man today admitted to fraudulently obtaining chainsaws and chainsaw parts from his employer Amtrak and then selling this equipment for personal profit, Acting U.S. Attorney Rachael A. Honig announced.
Jose Rodriguez, 49, of Brick, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of mail fraud. Rodriguez was previously charged by complaint in March 2021 with one count of theft from an agency receiving federal funds and one count of theft of government property.
According to documents filed in this case and statements made in court:
Rodriguez had been an Amtrak employee since October 2007, most recently as a senior engineer and repairman, based out of an Amtrak facility in North Brunswick, New Jersey. Between March 2012 and July 2020, Rodriguez obtained 114 chainsaws, 122 chainsaw replacement bars, and 222 replacement chains from Amtrak, the total value of which was over $76,000, under the false pretense that this equipment would be used for Amtrak projects, but then sold the equipment either on an online auction service or directly to purchasers. Rodriguez used the U.S. Postal Service to mail the stolen chainsaw and chainsaw parts to purchasers throughout the United States, including purchasers in Ohio, Pennsylvania, and West Virginia.
The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 19, 2022.
Acting U.S. Attorney Honig credited detectives from Amtrak Police New York Division and Mid-Atlantic Division, under the direction of Chief Sam Dotson, and special agents from Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, Eastern Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz in the Special Prosecutions Division and Cari Fais, Chief of the Criminal Division’s Opioids Unit.
Acting U.S. Attorney Gonzalez Announces a $344,963 Grant Awarded to the Idaho ICAC Task Force to Help Fund Ongoing OperationsRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today that the Idaho Internet Crimes Against Children (ICAC) Task Force received an award totaling $344,963 from the Department of Justice’s Office of Juvenile Justice Delinquency Prevention (OJJDP).
The Idaho ICAC Task Force is a statewide multi-disciplinary, multi-jurisdictional task force that detects, investigates, prosecutes, and engages in prevention activities involving technology-facilitated crimes against children. The task force is led by the Idaho Attorney General's Office, which employs a unit of experienced investigators and forensic examiners that actively investigate ICAC cases throughout the state on a full-time basis.
“I am encouraged to see federal resources come to Idaho, resources that will be used to forge and to strengthen vital relationships, to share information and best practices, and to take our efforts to prevent and reduce child exploitation to a new level,” said Acting U.S. Attorney Gonzalez. “ICAC is a recognized leader dedicated to keeping our nation’s most sacred pledge and helping to fulfill our promise to ensure security and opportunity for our children. As everyone knows, this work is not easy, but our collective efforts – to protect children in need and at risk, to support juvenile victims, and to safeguard our young people from exploitation, abuse, and trafficking – have never been more urgent. I thank our state and local partners for all that they have done, and I look forward to working with each of them to further develop and execute our child safety strategy and to celebrate additional achievements.”
“ICAC is a partnership strengthened by support from local, state and federal resources,” Attorney General Lawrence Wasden said. “I thank our federal partners for continuing to recognize the need that exists in Idaho for a strong, well-equipped task force that targets those who prey on our children and grandchildren. Idaho’s young people will be safer as a result of this support and for that I am grateful.”
OJJDP grant funds will support program costs to include personnel, overtime for affiliate agencies, an officer wellness program, equipment, software, and mobile services for the task force's activities. The task force will equip and train investigators in Internet investigations; equip and train forensic analysts of digital evidence; coordinate effective prosecution and training for law enforcement and prosecutors; recruit, train and equip new agencies to build statewide capacity to effectively investigate crimes and respond to requests from the National Center for Missing and Exploited Children and other partners; and provide public education regarding Internet safety and crime prevention techniques. The task force's progress will be measured in terms of the number of investigations conducted, arrests made, investigators/prosecutors trained, agencies equipped, presentations conducted, and – most importantly – children rescued.
Anyone with information regarding the exploitation of children is encouraged to contact local police, the Attorney General’s ICAC Unit at 208-947-8700, or the National Center for Missing and Exploited Children at 1-800-843-5678. Parents, educators and law enforcement officials can find more information and helpful resources at the ICAC website, ICACIdaho.org.
To learn more about OJJDP, please visit ojjdp.ojp.gov/about. For additional information about the OJJDP’s Fiscal Year 2021 Strengthening ICAC Technological Investigative Capacity funding, please visit ojjdp.ojp.gov/funding/opportunities/o-ojjdp-2021-121002.
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12 December 2021
Tallahassee Man Sentenced to 20 Years in Federal Prison for Gun and Drug-Trafficking ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentencing of Rocky M. Thomas, 44, of Tallahassee, Florida. Thomas was sentenced to twenty years in federal prison followed by six years of supervised release. Thomas’s sentence was the result of his guilty plea to possession of a firearm and ammunition by a convicted felon, possession with intent to distribute cocaine and alpha-PVP, and possession of a firearm in furtherance of a drug trafficking crime.
“This case is another example of the success that can be achieved through collaboration between our local and federal law enforcement agencies,” stated Acting U.S. Attorney Coody. “As a result of the excellent relationship between the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, this armed drug trafficker has been held accountable for his criminal conduct, and the community is safer as a result.”
According to court documents, Thomas was stopped on May 2, 2021, by an officer of the Tallahassee Police Department for running a red light. Thomas was subsequently detained because a small amount of marijuana was in plain view in his vehicle. A fanny pack which Thomas was wearing was searched and found to contain a loaded semiautomatic Glock firearm and approximately 75 small jeweler’s baggies filled with white powder. Some of the baggies of white powder contained cocaine and some contained alpha-PVP, a synthetic cathinone also known as “flakka.” Officers also found two digital scales and various empty baggies in the vehicle.
“ATF is at the forefront in fighting violent crimes and apprehending the criminals involved. This case is another example of our resolve to continue these efforts as we work jointly with our local, state and federal partners to ensure the safety of our communities.” said ATF Special Agent in Charge, Craig W. Saier.
Thomas had previously been convicted of multiple felonies and qualified for enhanced sentencing as an Armed Career Criminal and a Career Offender because of prior convictions for armed robbery with a deadly weapon, robbery, and possession of a controlled substance with intent to sell or deliver.
Assistant United States Attorney James A. McCain prosecuted the case, which was the result of a joint investigation between the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tallahassee Police Department.
Court records reflect that the firearm Thomas was caught with had previously been reported stolen. The United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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. In Tallahassee, the Sheriff’s ALLinLEON initiative has focused on enforcement, and engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills and substance abuse treatment.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
11 December 2021
Pueblo Cattle Investment Operator Sentenced to Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Richard K. Sears, 73, of Pueblo was sentenced to serve 41 months in prison for his role in a cattle investment fraud scheme. After his term of incarceration, Sears will serve 3 years of supervised release. In addition, Sears must pay restitution of $4,969,384.35.
According to information contained in court documents, beginning in June 2008, and continuing into May 2015, Sears defrauded investors through a cattle investment program to develop a breed of cattle – Rocky Mountain Romangus – that did not then exist. For a set “entry fee,” Sears claimed he would purchase a specific number of cows for the investor’s benefit. Sears claimed he would then “leaseback” the cattle for a set period of time and be responsible for paying all costs related to the cattle. Sears further agreed to pay the investors an annual “cash return” or “leaseback payment” of 10 percent and to repurchase the cows for no less than the original purchase price at the end of the lease period.
Initially, Sears made some leaseback payments, thereby lulling investors into believing the investment was successful and operating consistent with their agreements. In 2011, Sears stopped purchasing cattle, yet continued to solicit new investors. At the same time, he misrepresented the true number of cows in his possession. By September 2013, Sears knew he was unable to meet his obligations but he continued to solicit investors, obtaining over $800,000 from the later investors. Sears used a portion of investor funds to pay personal debts unrelated to the cattle program.
“Creative fraudsters may go to great lengths to hide their crimes, but we are going to uncover them,” said United States Attorney Cole Finegan. “Dedicated experts in this office and our law enforcement partners use painstaking means to stop complicated fraudulent schemes and bring fraudsters to justice.”
“This complex case required thousands of hours of investigation by U.S. Postal Inspectors and other investigative staff,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “This sentence makes every minute spent unraveling this scam worthwhile. We are proud of the combined efforts of our partners at the Internal Revenue Service – Criminal Investigation and the United States Attorney’s Office who assisted Postal Inspectors in bringing justice to Mr. Sears’ victims,” said Mendonça.
“This complex investment fraud case highlights the unique investigative skills that IRS Criminal Investigation brings to federal prosecutions,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “This sentence and restitution order are a step towards righting the wrongs perpetrated upon the victims of Sears’ fraudulent scheme.“
U.S. District Court Judge Robert E. Blackburn pronounced the sentence on December 9, 2021.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service.
This case was prosecuted by Assistant United States Attorney Tim Neff.
CASE NUMBER: 19-cr-00408
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10 December 2021
York County Nurse Charged with Stealing Prescription Drugs from A Hospice PatientRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that licensed practical nurse (LPN) Dana Aldinger, age 55, of York, PA, was charged by criminal information with theft in connection with health care.
According to United States Attorney John C. Gurganus, the criminal information alleges that on or about August 10, 2019, Aldinger stole and converted for personal use Oxycodone pills prescribed for a Medicare hospice patient residing at a personal care home where she was employed.
The case was investigated by the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services, Harrisburg Field Office, and the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Samuel S. Dalke is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the offense charged is one year of imprisonment, a term of supervised release following imprisonment, and a $100,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Woodbridge Resident Who Embezzled from Family Company Pleads Guilty to Tax EvasionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that MATTHEW V. BLACKWELL, 40, of Woodbridge, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarah A.L. Merriam in New Haven to one count of tax evasion.
According to court documents and statements made in court, Blackwell was the Vice President of Operations at a family-owned food company based in Orange. Between approximately 2012 and 2016, Blackwell embezzled $927,143 from the company by creating false purchase orders and invoices that he presented to the company controller, who had no knowledge of their fraudulent nature. The company issued payment checks that Blackwell deposited in a business checking account that he had opened and controlled.
In pleading guilty, Blackwell admitted that he willfully filed federal income tax returns that omitted the embezzled income for the 2012 through 2016 tax years, resulting in a tax loss of $285,361 to the IRS.
Judge Merriam scheduled sentencing for March 2, 2022, at which time Blackwell faces a maximum term of imprisonment of five years and a fine of up to $100,000. Blackwell has agreed to pay $285,361 in back taxes, as well as interest and penalties.
Blackwell is released on a $50,000 bond pending sentencing.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Hal Chen.
Will County Woman Who Engaged in Sexual Conduct with Underage Boy Sentenced to More Than Five Years in Federal PrisonRead the Press Release
CHICAGO — A Will County woman has been sentenced to more than five years in federal prison for engaging in sexual conduct with an underage boy and directing him to send her sexually explicit images of himself.
DAYNA CHIDESTER engaged in sexual conduct with the boy on numerous occasions in November and December 2018. Chidester knew at the time that the boy was 14 years old. Chidester also directed the boy to take photos of himself while he was engaged in sexually explicit conduct, and to send the photos to Chidester’s cell phone.
Chidester, 53, of Manhattan, Ill., pleaded guilty earlier this year to a charge of receiving child pornography. U.S. District Judge Jorge L Alonso on Wednesday sentenced Chidester to five years and four months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Will County State’s Attorney’s Office, Illinois State Police, and the Manhattan, Ill., Police Department.
“Defendant’s offense was not a one-time lapse in judgment, but an ongoing pattern of criminal activity,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Knowing full well that what she was doing was both reprehensible and criminal, defendant repeatedly victimized a child who trusted defendant.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Union Women Indicted in Conspiracy to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Jackson, Miss. – Three Union women appeared in federal court today on charges of wire fraud and aggravated identity theft, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
A federal grand jury in Jackson returned an indictment on September 8, 2021, charging Crystal Holliday, 33, Annie J. Blalock, 62, and Ashton Crouthers, 33, with carrying out a scheme using wire fraud and identity theft to access bank accounts of several patrons of the Pearl River Resort in Choctaw, Mississippi.
The defendants are charged in a nine count indictment with conspiracy to commit wire fraud and aggravated identity theft. They made their initial court appearances today before U.S. Magistrate Judge F. Keith Ball.
The case is set for trial on January 24, 2022 in U.S. District Court in Jackson. If convicted, each defendant faces a maximum penalty of twenty years in prison on counts 1-5 of the indictment, and a possible additional consecutive mandatory minimum penalty of two years in prison on counts 6-9.
The Choctaw Police Department and the Federal Bureau of Investigation are investigating the case. The Neshoba County Sheriff’s Department and the Union Police Department assisted with the arrests.
Assistant U.S. Attorney Kevin J. Payne is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Minerals, Inc. sentenced for Clean Air Act violation that exposed employees to arsenic at former Anaconda plantRead the Press Release
BUTTE — U.S. Minerals, Inc., a corporation that admitted to exposing employees at its former Anaconda plant to elevated levels of arsenic, was sentenced today to a maximum probationary term, fined and ordered to enact a medical monitoring plan for workers at the Montana plant and a nationwide environmental health and safety plan at its five other plants, U.S. Attorney Leif M. Johnson said.
U.S. Minerals pleaded guilty in August to one count of negligent endangerment, a misdemeanor, under the Clean Air Act as charged in a criminal information.
U.S. District Judge Dana L. Christensen sentenced U.S. Minerals as recommended in a plea agreement to a maximum of five years of probation and to pay a $393,200 fine. The criminal fine is in addition to civil penalties totaling $106,800 imposed by the Occupational Safety and Health Administration in a related civil proceeding, bringing the total amount to be paid by U.S. Minerals to $500,000.
Probationary conditions require U.S. Minerals to implement a medical monitoring program for employees who were exposed to elevated levels of arsenic during their work at the Anaconda plant and a nationwide environmental health and safety plan at all five of its plants throughout the United States. The Anaconda plant ceased operations in June. The company operates plants in Illinois, Wisconsin, Kansas, Texas and Louisiana.
“Despite repeated warnings and enforcement actions from regulators, U.S. Minerals continued to poison its workers and put profits before the well-being of its employees. U.S. Minerals’ history of misconduct showed a lack of care for employee safety and an utter disregard for regulations intended to protect human health and the environment. This case ends U.S. Minerals’ criminal conduct in Montana and will hold it accountable at its other plants,” U.S. Attorney Johnson said. “I want to thank Assistant U.S. Attorney Ryan G. Weldon, Special Assistant U.S. Attorney Eric E. Nelson, the Environmental Protection Agency’s Criminal Investigation Division, the U.S. Department of Labor, Occupational Safety and Health Administration, the National Institute for Occupational Safety and Health, and the Montana Department of Public Health and Human Services for investigating this case and bringing these wrongdoers to justice.”
“U.S. Minerals exposed its employees to toxic levels of arsenic, a hazardous air pollutant known to pose significant health risks,” said Special Agent in Charge Lance Ehrig of EPA’s Criminal Investigation Division in Montana. “Today’s sentencing demonstrates that EPA and its partners will hold corporations accountable when they ignore environmental regulations and jeopardize the health of workers.”
“The continued dedication of the Environmental Protection Agency and the United States Department of Justice, working in collaboration with the Occupational Safety and Health Administration, achieved justice and improved health and safety working conditions for the employees of U.S. Minerals nationwide. By working together, we leveraged a multi-agency front and held U.S. Minerals accountable for violating multiple federal laws and overexposing employees to inorganic arsenic,” said Jennifer Rous, Regional Administrator for OSHA’s Denver Region.
The government alleged in court documents that U.S. Minerals manufactured silicate abrasive, a substance sold to industrial and governmental customers. Raw materials used in the production process were obtained from a waste copper slag pile, located within the Anaconda Superfund site. Processing the slag generates dust, which releases inorganic arsenic into the air. The government further alleged that from July 2015 until February 2019, U.S. Minerals negligently released inorganic arsenic, a hazardous air pollutant, into the air and exposed employees. Exposure to arsenic is known to cause lung and skin diseases, including an increased risk of skin cancer, and may also cause cardiovascular effects and other cancers.
The government further alleged that in 2015, the National Institute for Occupational Safety and Health (NIOSH) and OSHA each inspected the site and found numerous violations of health and safety standards that resulted in $106,800 in OSHA penalties.
In 2018, the Montana Department of Public Health and Human Services learned of health-related issues affecting U.S. Minerals employees, visited the site and informed the company that its employees were exposed to “apparent inhalation hazards” from dust. A second inspection found the violations were unresolved. Montana shut down U.S. Minerals in February 2019. When the state allowed operations to resume in March 2019, employees continued to test high for arsenic and lead.
Assistant U.S. Attorney Ryan G. Weldon and Special Assistant U.S. Attorney Eric E. Nelson prosecuted the criminal case, which was investigated by the Environmental Protection Agency’s Criminal Investigation Division, OSHA, NIOSH, and the Montana Department of Public Health and Human Services. The U.S. Department of Labor’s Office of the Solicitor litigated the OSHA matter.
XXXTwo Women Charged in 2019 Murder and Assault on the Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS – Two women have been arrested and charged with one count of second-degree murder, one count of assault with a dangerous weapon, and one count of assault resulting in serious bodily injury, announced Acting U.S. Attorney Charles Kovats.
According to court documents, on August 12, 2019, Alexia Gah Gi Gay Mary Cutbank, 20, and Mia Faye Sumner, 20, while aided and abetted by others, murdered victim “D.A.J.” Additionally, Cutbank and Sumner shot and injured victim “T.B.S.”
Cutbank and Sumner both made their initial appearances today before Magistrate Judge Katherine M. Menendez. Cutbank and Sumner were ordered detained pending a formal detention hearing scheduled for 10:00 am on December 15, 2021.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the Federal Bureau of Investigation (FBI), the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension (BCA), and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Western Washington artists charged with misrepresenting themselves as Native American carversRead the Press Release
Seattle – In two separate criminal cases, Western Washington artists are charged with violating the Indian Arts and Crafts Act (IACA) by representing themselves as Native American artists, when they have no tribal membership or heritage, announced U.S. Attorney Nick Brown. The men, 52-year-old Lewis Anthony Rath, of Maple Falls, Washington, and 67-year-old Jerry Chris Van Dyke aka Jerry Witten, of Seattle, will make their initial appearance on the complaints in U.S. District Court in Seattle at 2:00 PM today.
“Our special agents investigate crimes that violate the Indian Arts and Crafts Act on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “By flooding the market with counterfeit Native American art and craftwork, these crimes cheat the consumer, undermine the economic livelihood of Native American artists, and impairs Indian culture. We thank the Indian Arts and Crafts Board and the U.S. Department of Justice for their assistance with these investigations.”
The investigation of Jerry Van Dyke began in February 2019, when the Indian Arts and Crafts Board received a complaint that Van Dyke was representing himself as a Nez Perce Indian Artist, when in fact, he is not an enrolled tribal member. Investigators from the U.S. Fish and Wildlife Service made undercover purchases at a gallery in the Pike Place Market area of Seattle that advertised pendants Van Dyke had made as Native American Art. Van Dyke used the name Witten for these sales. When interviewed by agents, Van Dyke admitted knowing about the Indian Arts and Crafts Act, and admitted he was not a tribal member. Through the gallery Van Dyke had sold more than $1,000 worth of carved pendants represented as Native American artwork based on Aleut masks.
Van Dyke is charged with two counts of Misrepresentation of Indian Produced Goods and Products,
The investigation of Anthony Rath began in May 2019, after a complaint to the Indian Arts and Crafts Board. The investigation revealed that Rath falsely represented himself to be a member of the San Carlos Apache Tribe. Undercover agents purchased a carved totem pole and necklace from the same Pike Place Market gallery for more than $1,334. Agents noticed the gallery had other carvings by Rath that were represented as Native produced. At another shop on the Seattle waterfront agents purchased another carved totem pole and a mask, again represented to be Indian produced. The biography of the artist at both shops falsely claimed that Rath was Native American. Internet sites Rath used to sell his artwork also falsely claim he is an enrolled member of the San Carlos Apache Tribe.
When agents executed a search warrant on Rath’s Whatcom County home and studio, they found he also possessed feathers from protected birds: golden eagles and other migratory birds such as hawks, jays, owls and more.
Rath is charged with four counts of Misrepresentation of Indian Produced Goods and Products, one misdemeanor count of Unlawful Possession of Golden Eagles Parts and one misdemeanor count of Unlawful Possession of Migratory Bird Parts.
Misrepresentation of Indian Produced Goods and Products is punishable by up to 5 years in prison. The misdemeanor counts related to bird parts are punishable by up to 1 year in prison.
The charges contained in the complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases are being investigated by the National Fish and Wildlife Service. The cases are being prosecuted by Assistant United States Attorney J. Tate London.
Two USP Lewisburg Inmates Charged with Possessing Contraband in Federal PrisonRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jordan Reid, age 29, and Ralph Hooper, age 43, inmates at United States Penitentiary (USP Lewisburg), Lewisburg, Pennsylvania, were charged separately by criminal information with unlawfully possessing contraband in federal prison.
According to United States Attorney John C. Gurganus, the criminal informations allege that on September 29, 2021, Hooper possessed a black Android cellphone and on October 5, 2021, Reid possessed a black LG cellphone while serving their federal sentences at USP Lewisburg. Federal law prohibits inmates from possessing cellphones due to the institutional security risks posed by their use.
The matter is being investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Geoffrey W. MacArthur are prosecuting the cases.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is one year of imprisonment. Under the Federal Sentencing Guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Montgomery Men Sentenced for Illegal Possession of a FirearmRead the Press Release
Montgomery, Alabama – Two convicted felons from Montgomery were sentenced to federal prison for possession of firearms, announced Acting United States Attorney Sandra J. Stewart.
On December 9, 2021, Darious Jamal Jackson, 25, was sentenced to 21 months in prison, and on November 19, 2021, Aaron Taki Gage, 21, was sentenced to 46 months in prison. Once their prison sentences are completed, both Jackson and Gage will serve three years of supervised release. There is no parole in the federal system.
According to court records and evidence presented in court, Gage broke into a vehicle outside a home in Prattville during the early morning hours of May 15, 2019. The homeowner confronted him, and Gage shot at the homeowner three times before fleeing in a Ford Focus. The Prattville Police Department identified the Ford Focus and its tag number using surveillance footage and asked local law enforcement to be on the lookout for the vehicle.
On May 17, 2019, officers with the Montgomery Police Department saw a Ford Focus with matching tag numbers linked to the Prattville shooting and performed an investigative stop in Montgomery. Jackson was the driver and Gage was the front seat passenger. During the stop, Jackson admitted to having a handgun under the driver’s seat, and Gage stated he had a firearm on his person. Both Jackson and Gage are convicted felons and are prohibited from possessing firearms. There was no evidence presented that connected Jackson to the Prattville shooting. However, related state charges were brought against Gage; he pleaded guilty in Autauga County Court and was previously sentenced for those charges.
This case was investigated by the Prattville Police Department, the Montgomery Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Megan A. Kirkpatrick prosecuted the case.
Two Men Admit Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – Two Newark men have admitted their roles in a drug trafficking conspiracy based in Newark, Acting U.S. Attorney Rachael A. Honig announced today.
Rahim Jackson pleaded guilty by videoconference today before U.S. District Judge Brian R. Martinotti to an indictment charging him with conspiracy to distribute heroin. Arthur Hardy pleaded guilty on Dec. 9, 2021, before Judge Martinotti in Newark federal court, to an information charging him with conspiracy to distribute heroin and possession of heroin.
According to the documents filed in this case and statements made in court:
The G-Shine set of the Bloods street gang operate at the Broadway Townhomes in Newark, in a residential neighborhood a short distance from two elementary schools and a high school. The organization’s leaders obtained their supply of narcotics, including heroin and fentanyl, from Jackson and Hardy, who delivered the narcotics either personally or through drug runners. The investigation revealed that, on numerous occasions, large narcotics deliveries took place in or around the Rotunda Recreation and Wellness Center on Clifton Avenue, where Jackson was employed and where Hardy was the director. These individuals also used the Rotunda Recreation and Wellness Center to stash narcotics and narcotics proceeds.
The count to which Jackson pleaded guilty is punishable by a minimum of 10 years in prison and a maximum of life in prison. The counts to which Hardy pleaded guilty are punishable by a minimum of five years in prison and a maximum of 40 years in prison. Jackson’s sentencing is scheduled for April 18, 2022, and Hardy’s sentencing is scheduled for April 14, 2022.
Acting U.S. Attorney Honig credited special agents of Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty pleas.
She also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, the Rockaway Township Police Department, under the direction of Chief Martin McParland, and special agents from the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark.
The Broadway Townhomes investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
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. Attorney Kendall Randolph of the U.S. Attorney’s Office’s OCDETF Unit in Newark and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Two Armed Robbers Sentenced to a Total of 40 Years in Federal PrisonRead the Press Release
Memphis, TN – Corey Ray, 37, and Rodriguez Jones, 27, have been sentenced to a total of 40 years in federal prison for using a firearm during a crime of violence and interference with commerce by robbery. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, the victim posted a firearm for sale on Armslist.com and began corresponding with Corey Ray. The victim, along with his roommate, and Ray agreed to conduct the sale at Jesse Turner Park in Memphis, Tennessee.
On June 12, 2019, the victim met Ray in the parking lot of the park. After agreeing to purchase the firearm for $620, Ray then walked into the park to retrieve some cash for the transaction and did not return for several minutes. The victim eventually called Ray to ask if he was planning to return to purchase the firearm. A short time later, Ray returned with Rodriguez Jones and a second suspect. The two new subjects were armed with handguns and approached the victim’s vehicle. The victim was forced at gun point to the trunk to remove the pistol box and the two magazines. The victim's roommate then exited the vehicle and fired his own personal firearm. During the shootout, one of the robbers was killed. The victim’s roommate was shot in the left leg.
The victim and other witnesses identified the defendants as the armed suspects responsible for the robbery. Both Jones and Ray admitted to their participation in the robbery. The defendants later pled guilty.
On November 30, 2021, U.S. District Judge Mark S. Norris sentenced Ray to 240 months imprisonment to be followed by three years supervised release. Jones was sentenced on December 3, 2021, to 240 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department.
Assistant U.S. Attorneys Elizabeth Rogers and Marques Young prosecuted this case on behalf of the government.
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Trader Indicted for Commodities Insider Trading SchemeRead the Press Release
A federal grand jury in Houston returned an indictment on Dec. 7 charging a natural gas trader for an insider trading scheme involving natural gas futures.
According to court documents, Peter Miller, 41, of Puerto Rico, worked as a natural gas trader for his own company, Omerta Capital LLC. Miller conspired with others to misappropriate material, nonpublic information and to engage in fraudulent, noncompetitive trades, including prearranged trades, in natural gas futures contracts for their own personal gain. Miller and his co-conspirators caused prices to be reported, recorded, and registered on designated commodities markets that were not true, bona fide prices. The profits from these fraudulent trades were split among Miller and his co-conspirators.
In four related cases, Marcus Schultz, 41, of Houston, Texas; John Ed James, 51, of Katy, Texas; Mathew Webb, 51, of Tiki Island, Texas; and Lee Tippett, 62, of Jacksonville, Florida, pleaded guilty on July 20, 2020, Feb. 1, 2021, June 15, 2021, and Aug. 17, 2021, respectively. Schultz pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act. James pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and wire fraud. Webb pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. Tippett pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and honest services wire fraud.
Miller is charged with one count of conspiracy to commit commodities fraud and four counts of commodities fraud. The defendant is scheduled for his initial court appearance on Dec. 16 before U.S. Magistrate Judge Christina A. Bryan of the U.S. District Court for the Southern District of Texas. If convicted, he faces a maximum total penalty of 25 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U. S. Attorney Jennifer Lowery for the Southern District of Texas; Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division; Acting Special Agent in Charge Richard A. Collodi of the FBI’s Houston Field Office; and Special Agent in Charge Richard Gross of the IRS-Criminal Investigation’s Houston Field Office made the announcement.
The FBI’s Houston Field Office and IRS-Criminal Investigation’s Houston Field Office are investigating the case.
Trial Attorneys Leslie S. Garthwaite and Della Sentilles of the Criminal Division’s Fraud Section and Deputy Chief Suzanne Elmilady and Assistant U.S. Attorney Zahra Fenelon of the U.S. Attorney’s Office for the Southern District of Texas 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.
Toledo Man Charged with Submitting Fraudulent Claims for Tax RefundRead the Press Release
U.S. Attorney Bridget M. Brennan announced that a federal grand jury has returned a two-count indictment charging Lance Harris, 42, of Toledo, Ohio, with two counts of filing false and fictitious claims for a tax refund.
According to the indictment, in January and February of 2020, the defendant submitted fraudulent claims for a tax refund to the IRS in the amount of approximately $1.1 million for tax years 2019 and 2018.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Internal Revenue Service - Criminal Investigation and is being prosecuted by Assistant United States Attorney Jody L. King.
Three-Time Convicted Felon Convicted Again After Trial of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ricardo Torres, 37, of Philadelphia, PA, was convicted today at trial of illegally possessing a firearm when he knew was prohibited from doing so because he had been previously convicted of a felony.
In September 2019, the defendant was Indicted for being a felon in possession of a firearm, charges which stemmed from a traffic stop conducted by Philadelphia Police officers in April of that year. The incident unfolded when Torres was driving in the area of C Street and Allegheny Avenue in the Kensington neighborhood. Philadelphia Police officers on routine patrol observed that one of his vehicle’s brake lights was not working, so the officers conducted a traffic stop. When the defendant leaned forward to retrieve his vehicle documents, one of the officers twice observed a bulge in Torres’ waistband, underneath his sweatshirt. One officer then asked Torres to step out of his car and began patting him down, immediately locating a loaded semiautomatic pistol inside Torres’ waistband. The defendant had been convicted on three prior occasions of felony narcotics charges and was therefore barred from legally possessing a firearm.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has reached record-breaking proportions,” said U.S. Attorney Williams. “As the evidence presented at trial showed, Ricardo Torres illegally possessed a firearm which was recovered by Philadelphia Police officers. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like this defendant off the streets for a long time.”
“This investigation demonstrates our dedicated partnership with the Philadelphia Police Department and the US Attorney’s Office,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “We will remain committed to investigating and preventing convicted felons, like Torres, from possessing firearms and threatening the safety of our communities.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Nelson S.T. Thayer, Jr.
Three Individuals Charged with Stealing Unemployment BenefitsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man and woman and a New York man were arrested today and charged for their alleged roles in a fraud committed in connection with unemployment insurance benefits, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Valerio, 31, of Woodbridge, New Jersey, Yanira Abreu, 40, of Keasbey, New Jersey, and Jose Tavares, 34, of New York, New York, are each charged by complaint with one count of conspiracy to commit wire fraud. All three defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate District Judge Michael A. Hammer.
According to documents filed in this case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment benefits for individuals who are not eligible for other types of unemployment, such as self-employed workers or independent contractors. The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance that provided an additional weekly benefit to those eligible for PUA and regular unemployment benefits.
From July 2020 through February 2021, the defendants and others fraudulently applied for unemployment insurance benefits from the New York Department of Labor (NYDOL) by unlawfully utilizing the personal identifying information of at least a dozen victims, including the victims’ names, and Social Security numbers. Fictitious user profiles that the defendants created included mailing addresses that ostensibly belonged to the victims, but in fact were controlled by the defendants and others. Once the NYDOL processed and approved the fraudulent applications, a financial institution transferred the benefit funds to debit cards in the names associated with the fictitious user profiles and sent the debit cards to the addresses associated with the defendants. The defendants withdrew funds using the cards at various ATM locations throughout New Jersey and New York.
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; and postal inspectors of the U.S. Postal Inspection Service, New Jersey Division, under the direction of Acting Postal Inspector in Charge Raimundo Marrero, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Olajide A. Araromi and Fatime Cano of the Government Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Individuals Associated with Connecticut Energy Cooperative Convicted of Misusing FundsRead the Press Release
Acting United States Attorney Leonard C Boyle, Special Agent in Charge David Sundberg of the FBI’s New Haven Division, and Special Agent in Charge Joleen D. Simpson of IRS Criminal Investigation in New England announced that a federal jury in New Haven today found DREW RANKIN, 60, the former chief executive officer of the Connecticut Municipal Electric Energy Corporation (“CMEEC”); JAMES SULLIVAN, 55, former chairperson of the CMEEC Board of Directors, and JOHN BILDA, 57, former City of Norwich representative on the CMEEC Board of Directors, guilty of an offense related to the theft of federal funds.
CMEEC is a cooperative public corporation that permits municipal electric utilities in Connecticut to join together to furnish electric power in the municipalities’ areas of operation. CMEEC’s members included the City of Norwich, the City of Groton, the Borough of Jewett City, the Second Taxing District of the City of Norwalk, the Third Taxing District of the City of Norwalk, and the Town of Bozrah. As the owners of CMEEC, each member town executed an agreement through its respective municipal electric utility outlining the terms and conditions under which the CMEEC members participated together in CMEEC. The CMEEC membership agreement provides that excess revenues are designated as “CMEEC Margin,” and that the excess revenues are to be returned to the member towns to help keep electricity costs stable for ratepayers.
Between 2010 and 2015, CMEEC received more than $9 million dollars from the U.S. Department of Energy. CMEEC member towns also received funds from federal grants.
According to the evidence and testimony presented during the trial, Rankin, Sullivan, Bilda and others planned, organized and directed lavish trips outside of Connecticut, including trips to the Kentucky Derby in 2015 and 2016, and to a luxury golf resort in West Virginia in 2015. These trips did not relate to CMEEC business or CMEEC Member business, but were intended to personally benefit, compensate and reward the defendants, their family members, friends and associates. Costs for the trips, which totaled more than $800,000, included travel expenses, private chartered airfare, first-class hotel accommodations, meals, tickets to sporting events, golf fees, souvenirs and gifts.
In response to reporter inquiries about the Kentucky Derby and golf trips, Rankin underreported the costs of the trips, omitted the names of attendees who were not CMEEC employees or board members, and made other false statements related to how the trips were funded. After the trips were known to the general public, CMEEC canceled a reservation it had made for the 2017 Kentucky Derby, and was refunded only approximately $90,000 of the $298,960 it had prepaid for the trip in May 2016.
On November 6, 2018, a grand jury returned a four-count indictment charging Rankin, Sullivan and Bilda, as well as Edward DeMuzzio, a City of Groton representative and the secretary of the CMEEC Board of Directors, and Edward Pryor, the former chief financial officer of CMEEC, with one count of conspiracy and three counts of theft concerning a program receiving federal funds. The jury found Rankin, Sullivan and Bilda guilty of one count of theft concerning a program receiving federal funds, and not guilty of conspiracy and a second count of theft concerning a program receiving federal funds. DeMuzzio and Pryor were found not guilty on each of the three counts. One count of theft concerning a program receiving federal funds was dismissed during the trial.
At sentencing, Rankin, Sullivan and Bilda face a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
This matter has been investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division, with the assistance of the U.S. Department of Energy. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Michael S. McGarry and Tara E. Levens.
Sex Offender Sentenced to More than Five Years in Prison for Failing to RegisterRead the Press Release
A convicted sex offender was sentenced December 9, 2021, to more than 5 years in federal prison. Duane Levering, age 36, from Fort Dodge, Iowa, received the prison term after a July 15, 2021, guilty plea to failure to register as a sex offender.
Levering was previously convicted of aggravated sexual abuse of a minor in 2005. Levering knew he was required to register and update his residence information as a sex offender. Later, however, he was caught living in the attic of a home in Ft. Dodge from Spring 2020 to the time of his arrest on December 9, 2020, without registering. Levering has an extensive criminal history, including two prior federal convictions for failure to register as a sex offender, serious assault, aggravated assault, and multiple convictions for disorderly conduct, public intoxication, eluding police, failure to obey police, and theft.
Levering was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Levering was sentenced to 65 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Levering is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the United States Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3011.
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Sex Offender Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A registered sex offender was arrested yesterday in connection with allegedly receiving and possessing child pornography via multiple groups on a messaging app.
Angel Figueroa, 49, of Fall River, was charged with receipt and possession of child pornography. Following an initial appearance yesterday before U.S. District Court Magistrate Judge M. Page Kelley, Figueroa was detained pending a detention hearing scheduled for Dec. 14, 2021,
According to the charging documents, Figueroa, a registered sex offender, was identified as an active member in at least four groups on a messaging app where child pornography was being disseminated. A preliminary forensic examination of Figueroa’s cell phone during a search of his residence yesterday revealed numerous images and videos of child pornography with minors as young as approximately six-years-old. During the search, Figueroa allegedly admitted that he viewed child pornography of female minors as young as approximately six-years-old via apps on his cell phone.
The charge of receipt of child pornography provides a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Fall River Acting Chief of Police Paul Gauvin made the announcement. Assistant U.S. Attorney J. Mackenzie Duane, of Mendell’s Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Saratoga County Man Sentenced to 9 Years for Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Cameron Hennelly, age 31, of Halfmoon, New York, was sentenced yesterday to serve 108 months (9 years) in prison for distributing and possessing child pornography, announced 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 previous guilty plea, Hennelly admitted that, while using a social media messaging application, he sent a video depicting the sexual abuse of a child, whom he believed to be 11 years old, to another individual over the internet. A subsequent search of Hennelly’s phone revealed that he was in possession of multiple videos of child pornography, some of which featured toddlers.
Chief United States District Judge Glenn T. Suddaby also imposed a 20-year term of supervised release, which will start after Hennelly is released from prison. Hennelly will also be required to continue to register as a sex offender.
Hennelly’s case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Rachel Williams 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.
Riverton Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Bob Murray announced today that ANNIN DAMIAN SOLDIERWOLF, 52, from Riverton, Wyoming was sentenced to 70 months imprisonment, 10 years of supervised release and ordered to pay a fine of $500 and a $100 special assessment for abusive sexual contact. The sentencing hearing was held before Chief United States District Court Judge Scott Skavdahl on December 7, 2021.
Soldierwolf was indicted by a federal grand jury on July 22, 2022, on a single count of abusive sexual contact. The charges were based on Soldierwolf knowingly engaging in sexual contact with a minor who had not attained the age of 12 years; that is, he intentionally touched the minor’s breasts, buttocks and genitals, through the clothing, of the genitalia, anus, groin, breast, inner thigh, and buttocks, with an intent to abuse, humiliate, harass, and degrade the minor, to arouse and gratify his own sexual desire. Soldierwolf abused the minor repeatedly over the course of five years.
On September 15, 2021, the Defendant appeared before Chief United States District Judge Scott W. Skavdahl and entered his plea of guilty to the sole count in the indictment alleging Abusive Sexual Contact.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Case number: 0:21-cr-00880-SWS
Riverton Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Bob Murray announced today that ANNIN DAMIAN SOLDIERWOLF, 52, from Riverton, Wyoming was sentenced to 70 months imprisonment, 10 years of supervised release and ordered to pay a fine of $500 and a $100 special assessment for abusive sexual contact. The sentencing hearing was held before Chief United States District Court Judge Scott Skavdahl on December 7, 2021.
Soldierwolf was indicted by a federal grand jury on July 22, 2022, on a single count of abusive sexual contact. The charges were based on Soldierwolf knowingly engaging in sexual contact with a minor who had not attained the age of 12 years; that is, he intentionally touched the minor’s breasts, buttocks and genitals, through the clothing, of the genitalia, anus, groin, breast, inner thigh, and buttocks, with an intent to abuse, humiliate, harass, and degrade the minor, to arouse and gratify his own sexual desire. Soldierwolf abused the minor repeatedly over the course of five years.
On September 15, 2021, the Defendant appeared before Chief United States District Judge Scott W. Skavdahl and entered his plea of guilty to the sole count in the indictment alleging Abusive Sexual Contact.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Case number: 0:21-cr-00880-SWS
Quincy Man Sentenced to Ten Years in Prison for Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, James Payne, 76, of the 600 block of College Avenue was sentenced on December 3, 2021, to a ten-year prison term for possession of child pornography.
At the sentencing hearing, U.S. District Court Judge Sue Myerscough found that Payne’s prior criminal conviction for predatory criminal sexual abuse meant that he qualified for an enhanced sentence. The judge further found that Payne possessed over 1,000 images of child pornography, including images of children under the age of twelve and images depicting sadistic or masochistic conduct involving an infant or toddler.
Payne had previously pleaded guilty to one count of possession of child pornography on May 28, 2021, before U.S. Magistrate Judge Tom Schanzle-Haskins pursuant to a written agreement.
The statutory penalty for possession of child pornography is generally up to ten years’ imprisonment; however, where, as here, an individual has a prior conviction involving sexual abuse the penalty is not less than ten years’ imprisonment and not more than twenty.
"Child pornography is not a victimless crime, can be predictive of other hands-on offenses, and continues to plague our society," said acting U.S. Attorney Douglas J. Quivey. "We appreciate the hard work of the Quincy Police Department and our other law enforcement partners who work diligently every day to locate, investigate, and apprehend the people who perpetuate the child-pornography industry."
The prosecution was the result of an investigation by the Quincy Police Department. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the prosecution.
The case against Payne was brought as part of Project Safe Childhood, a Department of Justice initiative 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 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.
Prison Consultant Sentenced to 6 Years for Defrauding BOP Substance Abuse Treatment ProgramRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that TONY TUAN PHAM, also known as “Anh Nguyen,” 52, of Grand Rapids, Michigan, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 72 months of imprisonment, followed by three years of supervised release, for coaching federal inmates and prospective inmates, who would not otherwise require substance abuse treatment, how to lie to gain admission into a Federal Bureau of Prisons (“BOP”) program that, if completed successfully, would result in a shortened prison term.
According to court documents and statements made in court, the Residential Drug Abuse Program (“RDAP”) is a 500-hour substance abuse treatment program that is administered by the BOP. In order to gain admission to the RDAP, a federal inmate must meet certain criteria, including having a diagnosable and verifiable drug or alcohol abuse disorder. By successfully completing the RDAP, an inmate can qualify for up to 12 months in early release from custody.
Pham was a “Managing Partner” of Michigan-based RDAP Law Consultants, LLC. Pham, and others he supervised at RDAP Law Consultants, contacted federal criminal defendants and inmates through unsolicited emails and telephone calls with offers to assist, for a fee, those individuals in applying to, and qualifying for, the RDAP. Although Pham knew that many of the company’s clients did not abuse alcohol or drugs and were ineligible for the RDAP, he coached them how to feign or exaggerate a drug or alcohol disorder, and to make false statements to the BOP so they could gain admission to the RDAP.
Between September 2012 and January 2019, RDAP Law Consultants earned at least $2,628,137 in client fees through this scheme.
Pham had recently been released from federal prison and was living in a residential reentry center (“halfway house”) when the scheme began.
Pham was arrested on January 23, 2019. On December 4, 2019, he pleaded guilty to one count of conspiracy and one count of wire fraud.
Pham, who is released on a $100,000 bond, is required to report to prison on January 14, 2022.
This investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Jonathan N. Francis and Trial Attorney Avi Perry of the Department of Justice’s Fraud Section.
Acting U.S. Attorney Boyle thanked the U.S. Attorney’s Offices for the Southern District of West Virginia and the Western District of Michigan for their assistance in this matter.
Presque Isle Man Sentenced for Methamphetamine TraffickingRead the Press Release
BANGOR, Maine: A Presque Isle man was sentenced in federal court today for conspiring to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Michael Deveau, 36, to three years in prison and three years of supervised release. Deveau pleaded guilty in January 2021.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states that originated from suppliers in Mexico. Conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. On one occasion, Deveau and other conspirators traveled to Georgia to obtain methamphetamine intended for distribution in Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations, and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
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 www.justice.gov/OCDETF.
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Owner of Local Compounding Pharmacies Sentenced to Federal Prison for Tax Evasion and Health Care FraudRead the Press Release
PORTLAND, Ore.—A Southern California man who owned and operated two local compounding pharmacies was sentenced to federal prison today for evading the payment of approximately $5.5 million in personal income taxes and submitting false reimbursement claims to CVS Caremark, a national pharmacy benefit manager.
Matthew Hogan Peters, 38, was sentenced to three years in federal prison and three years’ supervised release. Peters was also ordered to pay more than $3,441,263 million in restitution to the IRS, in addition to back taxes Peters has already paid.
“Far too often, Matthew Peters bent and skirted the law to pad his pockets and fund a lavish lifestyle. Peters’ crimes, and the illicit actions of others like him, only serve to increase the cost of healthcare and prescription medications for ordinary Americans,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Healthcare fraud and tax evasion are serious federal crimes and will continue being handled as such by our office.”
“Health care fraud costs insurers and taxpayers tens of billions of dollars a year. Not only do government-funded programs—such as Medicare and Medicaid—take huge hits, but people in our community end up paying higher premiums for coverage. While neighbors and family members struggle to afford prescriptions and basic coverage, people like Mr. Peters are buying exotic homes and funding a lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
“Instead of providing honest pharmaceutical services, Mr. Peters instead focused his energies on a scheme designed to benefit only himself at the expense of the most vulnerable people in our communities,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Our country’s tax and health care systems are both essential to the well-being of all Americans, and IRS-CI is committed to protecting the integrity of these vital services.”
According to court documents, the U.S. Department of Health and Human Services’ Office of Inspector General, the Oregon Department of Justice’s Medicaid Fraud Unit, and other agencies pursued a multi-year investigation into alleged illegal kickback arrangements at compounding pharmacies owned by Peters and members of his family in several states. Two such pharmacies, Professional Center Pharmacy and Professional Center 205 Pharmacy, were located in Southeast Portland.
The investigation ultimately revealed that Peters had devised various indirect means of incentivizing healthcare providers to write prescriptions for compounded drugs—custom-mixed medications that generate outsized reimbursements from Medicare, Medicaid, and other healthcare-benefit programs—and to direct those prescriptions to his pharmacies for dispensing. These arrangements proved enormously profitable for Peters’ pharmacies.
Peters’s healthcare fraud conviction stemmed from his requests for reimbursements from CVS Caremark, a major pharmacy benefits manger based in Arizona. Peters sought reimbursements of approximately $3.4 million for medication his pharmacies had purportedly dispensed. In mid-2015, CVS Caremark audited Peters’s reimbursement claims and identified nearly a quarter-million dollars in potentially unwarranted reimbursements. Dozens of the discrepant claims lacked records proving customers’ receipt of medications.
In October 2015, seeking to resolve these discrepancies and avoid possible suspension from CVS Caremark’s network, Peters submitted to CVS Caremark 41 forged patient attestations, purportedly confirming individual patients’ receipt of prescriptions. CVS Caremark auditors saw that the patient attestations all bore the same unique digital code and, after further investigation, suspended Peters’ pharmacies from their network. A subsequent federal investigation confirmed that Peters had used Docu-Sign, an electronic signature application, from his personal computer to sign the attestations.
Peters greatly expanded his criminal liability by attempting to hide his pharmacy profits from the IRS. The IRS’s financial investigation into Peters revealed that he had generated nearly $14 million in gross income between 2014 and 2017. Peters developed several schemes to try and conceal his income and fraudulently decrease his federal income tax liability. Most of these schemes involved spending pharmacy profits on personal expenses and telling his accountant (and the IRS) that they were legitimate business expenses.
Peters’s purported business expenses included $3.3 million for property and construction in Belize; more than $5 million for personal residences in Laguna Beach and San Carlos, California and Incline Village, Nevada; and millions in cash transfers to straw entities and trust accounts in the names of others for Peters’ personal use. All told, between 2014 and 2017, Peters underreported his income tax liability by more than $5.4 million.
On December 19, 2019, a federal grand jury in Portland returned a two-count indictment charging Peters with healthcare fraud and aggravated identity theft. Later, on July 20, 2020, he was charged by superseding criminal information with healthcare fraud and tax evasion.
On August 4, 2020, Peters waived indictment and pleaded guilty to health care fraud and tax evasion.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI, IRS Criminal Investigation, the Offices of Inspectors General for the U.S. Postal Service and the U.S. Departments of Labor and Health and Human Services, the U.S. Postal Inspection Service, and the Defense Criminal Investigative Service. It was prosecuted by Assistant U.S. Attorneys Ryan W. Bounds and Seth D. Uram and Special Assistant U.S. Attorney Elizabeth Ballard Colgrove, for the District of Oregon.
Orange County Man Pleads Guilty to Cocaine ChargeRead the Press Release
ALBANY, NEW YORK – James Taylor, age 33, of Orange County, New York, pled guilty yesterday to possessing and intending to distribute more than 500 grams of cocaine. The announcement was made by United States Attorney Carla B. Freedman and Keith Kruskall, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Taylor admitted that on March 2, 2020, he and his co-defendant possessed with the intent to distribute approximately two kilograms of cocaine.
Taylor faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life, when Chief United States District Judge Glenn T. Suddaby sentences him on April 28, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Operation Shutdown Corner Update: Last of 17 Defendants Sentenced to More than 16 Years in Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – The last of 17 defendants was sentenced for his participation in an extensive drug trafficking organization (DTO) operating between California and the Southern District of West Virginia. Oyontikeyta V. Jones, 43, of Beckley, was sentenced to 16 years and eight months in prison for conspiring to distribute 500 grams or more of a substance containing methamphetamine and 10 years in prison for being a felon in possession of a firearm. The sentences were ordered to run concurrently.
According to court documents, between Junes 2018 and September 17, 2019, Jones worked with other members of a DTO to facilitate the distribution of methamphetamine in Raleigh County. During this time period, Jones had methamphetamine shipped from California to the Southern District of West Virginia. This was accomplished by having packages delivered to other members of the DTO. Jones or others would then give directions on where the drugs should be delivered. On August 9, 2019, a package from California was delivered to a residence in Bluefield. Jones directed the recipient of that package to bring the package to Raleigh County, and meet him at a specified location. After Jones was picked up by the other member, a traffic stop was made in Beckley on the car in which Jones was a passenger. When the law enforcement officer approached the car, Jones fled on foot but was later apprehended at a nearby business. During a search of the car, officers found the package that had just been shipped from California. The package contained approximately two pounds of methamphetamine. On August 6, 2019, officers with the Raleigh County Sheriff’s Department approached Jones while he was stopped on the side of the road. Officers found a Glock, model 26, 9mm semi-automatic pistol. Earlier that same day, Jones was observed on video surveillance possessing that same firearm. Jones knew that he was prohibited from possessing any firearm due to being convicted of a felony offense in California.
United States Attorney William S. Thompson made the announcement and commended the cooperative investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department, and the West Virginia State Police.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00227.
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Office on Violence Against Women Announces Awards to 11 Indian Tribal Governments to Exercise Special Domestic Violence Criminal JurisdictionRead the Press Release
MUSKOGEE, OKLAHOMA – The U.S. Department of Justice Office on Violence Against Women (OVW) announced awards to 11 Indian Tribal governments to support them in exercising special domestic violence criminal jurisdiction (SDVCJ). The Violence Against Women Reauthorization Act of 2013 (VAWA 2013) recognized the authority of tribes to exercise SDVCJ over certain defendants, regardless of their Indian or non-Indian status, who commit crimes of domestic violence or dating violence or violate certain protection orders in Indian country.
“We heard from tribal leaders that they need access to funds to support the day-to-day costs of SDVCJ, and I’m pleased to announce OVW is issuing eleven awards to implementing tribes to defray these costs,” said OVW Principal Deputy Director Allison Randall. “OVW is dedicated to working with tribes to address challenges in protecting victims and responding to offenders in their communities, as well as supporting tribal sovereignty."
The recipients of the one-year awards under OVW’s Tribal Jurisdiction Program are: Chickasaw Nation ($250,000), Oklahoma; Eastern Band of Cherokee Indians, North Carolina; Fort Peck Assiniboine and Sioux Tribes, Montana; Muscogee (Creek) Nation ($250,000), Oklahoma; Nottawaseppi Huron Band of the Potawatomi, Michigan; Pascua Yaqui Tribe, Arizona; Port Gamble S’klallam Tribe, Washington; Pueblo of Santa Clara, New Mexico; Seminole Nation ($249,352) of Oklahoma; the Cherokee Nation ($250,000) of Oklahoma; and the Tulalip Tribes of Washington.
“Domestic violence is a scourge which impacts all segments of the Eastern District of Oklahoma, including our Tribal Nations,” said Acting United States Attorney Christopher J. Wilson. “This grant funding will aid Cherokee, Chickasaw, Muscogee (Creek), Seminole and Tribal prosecutors in the Eastern District to address the issue of domestic violence within their reservations.”
OVW’s Tribal Jurisdiction Program was authorized under VAWA 2013 and supports tribes with jurisdiction over Indian country in exercising SDVCJ. Tribal Jurisdiction Program funds may be used to strengthen tribal criminal justice systems, provide indigent criminal defense, conduct jury trials and provide services and applicable rights to crime victims. Costs could include, but are not necessarily limited to, incarceration costs (including medical care) for non-Indian SDVCJ defendants, trial costs for SDVCJ cases, defense counsel costs, costs associated with empaneling a jury for an SDVCJ trial, batterer’s intervention or other pre- or post-conviction supervision or programming costs and related training and technical assistance.
About the Office on Violence Against Women
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Nikolas P. Kerest sworn in as U.S. AttorneyRead the Press Release
Nikolas P. Kerest has taken the oath of office to become the United States Attorney for the District of Vermont. Mr. Kerest was nominated by President Joseph Biden on September 28, 2021 and confirmed by the U.S. Senate on December 7, 2021. This afternoon, he took the oath of office from Chief United States District Court Judge Geoffrey W. Crawford.
“I am honored to serve as the United States Attorney for the District of Vermont. This office is home to a team of incredibly dedicated and effective public servants. It has a long history of outstanding work, integrity, and service to the Vermont community. We will continue to work tirelessly with our law enforcement and community partners to pursue equal justice under the law and to protect and serve the people of Vermont. I am excited to get started,” stated United States Attorney Kerest.
As United States Attorney, Mr. Kerest is the top-ranking federal law enforcement official in the District of Vermont. He oversees a staff of 51 employees, including 24 attorneys and 27 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, exploitation of children and older adults, firearms, narcotics, immigration, and civil rights. In civil cases, the office also represents the United States and its agencies in affirmative fraud cases, defends the United States in civil cases, and collects debts owed to the United States.
Mr. Kerest has served as an Assistant United States Attorney in the District of Vermont since 2010. He began serving as an Assistant United States Attorney in the Civil Division of the office, representing federal agencies in defensive and affirmative litigation in federal court in Vermont. From 2014-2019, he served as Civil Division Chief, continuing to represent federal agencies in addition to leading the division as part of the U.S. Attorney Office’s management team. In 2019, he joined the criminal division, prosecuting a variety of criminal cases, including drug trafficking offenses, violent crime, and immigration fraud.
Mr. Kerest clerked for the Honorable Fred I. Parker, United States Court of Appeals for the Second Circuit in Burlington, VT from 2000 to 2001. He also worked for Ropes and Gray LLP in Boston, MA from 2001 to 2004. From 2004 to 2010, he worked as a litigator for Pierce Atwood LLP in Portland, ME.
Mr. Kerest attended Williams College, receiving a B.A. in mathematics in 1994. He attended Cornell Law School, earning his J.D. in 2000.
New York Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Bronx, N.Y. man was sentenced on Wednesday, Dec. 8, 2021 in federal court in Boston for fentanyl distribution.
Carlos Nunez, 49, was sentenced by U.S. District Court Judge Indira Talwani to three years in prison and three years of supervised release. On July 22, 2021, Nunez pleaded guilty one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and two counts of distribution of and possession with intent to distribute 400 grams or more of fentanyl.
Over the course of approximately six months in 2019, Nunez and co-conspirator Yamel Cuevas Gonzalez conspired to distribute more than 400 grams of fentanyl to an individual in Massachusetts. Specifically, on two occasions in July and August of 2019, Nunez distributed more than 400 grams of fentanyl to the buyer. Nunez and Gonzalez were arrested after driving from New York to Walpole to distribute fentanyl in August 2019.
On May 3, 2021, Gonzalez was sentenced by Judge Talwani to 10 years in prison and five years of supervised release. Upon completion of his sentence, Gonzalez will face deportation to the Dominican Republic.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was provided by the Walpole and Dedham Police Departments. Assistant U.S. Attorney Nadine Pellegrini of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
New Orleans Man Sentenced for Theft of Social Security Disability FundsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that ELIJAH CHARLES SORINA (“SORINA”), age 33, of New Orleans, Louisiana, was sentenced on December 10, 2021 for Theft of Government Funds.
According to documents filed in federal court, SORINA continued to receive Social Security Administration (“SSA”) disability benefits after he claimed he was disabled and unable to work. Federal special agents determined SORINA began working for a local transportation company as a school bus driver in 2014 after he obtained a commercial driver’s license. SSA determined that from May 2014 until August 2016, SORINA received benefits of $19,897.00 to which he was not entitled because he concealed his employment from the SSA.
U.S. District Judge Nannette Jolivette Brown sentenced SORINA to a sentence of time served, restitution in the amount of $19,897.00, and a mandatory special assessment fee of $100.00.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
NLRB Employee Charged with Bribery and Honest Services FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and David P. Berry, Inspector General of the National Labor Relations Board, announced today the unsealing of a Complaint charging ANETT RODRIGUES with honest services fraud and bribery. The charges stem from a scheme in which RODRIGUES, an employee of the National Labor Relations Board (“NLRB”), provided nonpublic NLRB documents to a co-conspirator in exchange for the regular payment of cash bribes. RODRIGUES will be presented before United States Magistrate Judge Paul E. Davison in White Plains federal court later today.
U.S. Attorney Damian Williams said: “As alleged, Anett Rodrigues, a trusted employee of a federal agency with access to sensitive nonpublic information, monetized her position to divulge some of that information in exchange for bribes. Rodrigues’s alleged selling of the information provided a competitive advantage to the alleged bribe payer’s company, but it also leaves Rodrigues facing multiple felony counts.”
As alleged in the Complaint unsealed in White Plains federal court[1]:
The NLRB is a federal agency that enforces United States labor law relating to unfair labor practices and collective bargaining. Among other functions, the NLRB serves fact-finding and dispute-resolution functions, in which it investigates and resolves disputes between and among labor unions, company management, and company employees throughout the United States, and supervises the formation and elections of labor unions. Employees seeking to engage the NLRB to investigate and resolve a dispute may do so by filing a “charge sheet” outlining their allegations with their local NLRB regional office, and employees seeking the NLRB’s assistance in forming or joining a union can do so by filing a “petition” with their local NLRB regional office. These charge sheets and petitions are not immediately publicly available, though they are provided to the companies involved, typically within a matter of days, and may be available in redacted form via Freedom of Information Act requests, typically within a matter of weeks.
ANETT RODRIGUES used her employment with the NLRB to provide a competitive advantage to a co-conspirator (“CC-1”) who operated a Westchester County-based company that offered consulting services to clients – principally law firms – appearing before the NLRB. Between approximately 2017 and approximately 2021, RODRIGUES regularly provided cellphone photographs of NLRB charge sheets and petitions to CC-1, before they were otherwise available to CC-1 or to the public. CC-1 in turn sold the documents to clients for a per-document fee. In exchange this assistance, CC-1 regularly met with RODRIGUES to provide her with cash bribe payments.
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RODRIGUES, 53, of Nutley, New Jersey, is charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum sentence of 30 years in prison, and one count of bribery, which carries a maximum sentence of 15 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NLRB Office of the Inspector General’s investigator and the Special Agents of the U.S. Attorney’s Office.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jeffrey C. Coffman and Derek Wikstrom are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Myanmar Citizen Pleads Guilty in Plot to Injure or Kill Myanmar’s Ambassador to the United NationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of YE HEIN ZAW, a citizen of Myanmar, for his role in a conspiracy to assault and make a violent attack upon Myanmar’s Permanent Representative to the United Nations. ZAW pled guilty today in White Plains federal court before U.S. District Judge Philip M. Halpern.
U.S. Attorney Damian Williams said: “As he admitted in court today, Ye Hein Zaw participated in a plot to injure or kill Myanmar’s ambassador to the United Nations in a planned attack that was to take place on American soil. Zaw now awaits sentencing for his crime. I commend the tireless efforts of our law enforcement partners at all levels of government to ensure the safety of foreign diplomats and officials in the United States and bring the perpetrators of this plot to justice.”
According to the Information to which ZAW pled guilty, the complaint that was filed in this case, and statements made during court proceedings:
Between at least in or about July 2021 through at least on or about August 5, 2021, ZAW, a citizen of Myanmar residing in New York, conspired with others to injure or kill Myanmar’s Permanent Representative to the United Nations (the “Ambassador”). During the conspiracy, a co-conspirator communicated with an arms dealer in Thailand (the “Arms Dealer”) who sells weapons to the Burmese military, which overthrew Myanmar’s civilian government in or about February 2021. In the course of those conversations, the co-conspirator and the Arms Dealer agreed on a plan in which the co-conspirator would hire attackers to hurt the Ambassador in an attempt to force the Ambassador to step down from his post. If the Ambassador did not step down, then the Arms Dealer proposed that the attackers hired by the co-conspirator would kill the Ambassador.
Shortly after agreeing on the plan, ZAW contacted the co-conspirator by cellphone and, using a money transfer app, transferred approximately $4,000 to the co-conspirator as an advance payment on the plot to attack the Ambassador. Later, during a recorded phone conversation, ZAW and the co-conspirator discussed how the planned attackers would require an additional $1,000 to conduct the attack on the Ambassador in Westchester County, and, for an additional payment, the attackers could, in substance, kill the Ambassador. In response, ZAW agreed, in substance, to pay the additional $1,000 and to try to obtain the additional money.
ZAW pled guilty to one count of conspiracy to assault and make a violent attack upon a foreign official, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ZAW is scheduled to be sentenced by Judge Halpern on May 10, 2022.
Mr. Williams praised the outstanding investigative work of the FBI’s Westchester Safe Streets Task Force, which comprises special agents and task force officers from the FBI, NYPD, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, and the police departments of Yonkers, Mount Vernon, New Rochelle, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown. Mr. Williams also thanked the Pelham Manor Police Department and the U.S. Department of State’s Diplomatic Security Service for their assistance in the investigation.
Mr. Williams said that the investigation is ongoing, and asked any individuals with relevant information to contact the FBI at (800)-CALL-FBI.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Nicholas S. Bradley and Benjamin D. Klein are in charge of the prosecution.
Missouri Woman Indicted for Pair of Bank RobberiesRead the Press Release
KANSAS CITY, KAN. – A federal grand jury returned an indictment charging a Missouri woman with two counts of bank robbery.
According to court documents, on November 4, 2021, She’Toia Mitchell, 35, of Lee’s Summit is accused of robbing a Bank of America branch located on Ohio Street in Lawrence, Kansas. Mitchell is also accused of robbing a branch of Wells Fargo Bank on West 103rd Street in Leawood, Kansas, on November 10, 2021.
The Federal Bureau of Investigation (FBI), Lawrence Police Department, and the Leawood Police Department are investigating the case.
Assistant U.S. Attorney Kim Flannigan is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mississippi Man Sentenced to 28 Years in Federal Prison for 4 Business RobberiesRead the Press Release
Memphis, TN – Jacobly Whitehead, 27, of Greenwood, Mississippi, has been sentenced to 336 months in federal prison for Hobbs Act robbery and brandishing 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 10, 2020, Whitehead, an unknown suspect at the time, entered Cricket Wireless on S. Third Street at approximately 5:50 p.m., pointed a black handgun at employees, and demanded money from the cash registers. Taking approximately $1,700, he then fled the scene.
On February 22, 2020, Whitehead, an unknown suspect at the time, entered the Metro PCS on S. Third Street at approximately 6:30 p.m., where he struck an employee with a black handgun and demanded money from the cash registers. He stole a firearm from an employee and approximately $2,000 and fled on foot. The suspect matched the description of the suspect of the robbery on February 10, 2020. The businesses were located within walking distance.
On March 17, 2020, Whitehead, an unknown suspect at the time, entered the Cricket Wireless on S. Third Street at approximately 9:30 a.m., pointed a black handgun at employees, and demanded cash from the register. While leaving the store, Whitehead struck an employee in the head with his pistol. He fled in a red Chevrolet Equinox which had several unique markings and visible features.
On March 31, 2020, Whitehead, an unknown suspect at the time, entered the Metro PCS on E. Shelby Drive at approximately 4:00 p.m., wearing a facemask and the same clothing as the suspect in the March 17, 2020 robbery. He pointed a black handgun at the employees, took approximately $800 from the register, and fled the scene in a red Chevrolet Equinox, with several similar unique markings. Prior to the robbery, the suspect entered the Dollar General behind the Metro PCS with his face uncovered and was captured on surveillance video.
Officers with MPD's Safe Streets Task Force located a possible suspect vehicle owned by a woman who lived on Court Street. This address was within walking distance of the first two robberies. Investigators researched the woman’s husband, identified as Jacolby Whitehead who also matched the description given by many of the robbery victims.
Surveillance conducted at their residence showed Whitehead driving the red Equinox. Further, law enforcement executed a search warrant for the vehicle and the residence. They recovered clothing similar to that described by the witnesses and seen on surveillance video. Whitehead was Mirandized and admitted to all four of the robberies.
Whitehead pled guilty on July 21, 2021.
On December 3, 2021, U.S. District Judge Sheryl H. Lipman, sentenced Whitehead to 336 months in federal prison to be followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and the FBI Safe Streets Task Force.
Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Minneapolis Man Pleads Guilty for Violent Robbery of a Minneapolis BusinessRead the Press Release
St. Paul, Minn. – A Minneapolis man pleaded guilty today to a Hobbs Act robbery that resulted in the shooting death of a store clerk, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on April 27, 2021, Marlow Ramsey Carson, 30, robbed Blue Sky Wireless and West Bend Furniture located in Minneapolis. During the robbery the defendant stuck a handgun under a barrier on the counter and demanded money from the store clerk. Carson shot the store clerk in the chest before running out of the store and entering the passenger side of his vehicle, which quickly sped away. The store clerk was transported by ambulance to the emergency room where he was later pronounced dead.
Carson plead guilty today before U.S. District Court Judge Donovan W. Frank to one count of interference with commerce by robbery and one count of possession of ammunition as a felon. Carson has prior felony convictions and is therefore prohibited from possessing firearms or ammunition at any time. Sentencing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department.
Assistant U.S. Attorneys Harry M. Jacobs and Samantha H. Bates are prosecuting the case.
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Miami Resident Charged with Committing $38 Million Health Care Fraud Scheme, Spending Proceeds on Beachfront Condos and Luxury VehiclesRead the Press Release
Miami, Florida – A Miami man charged with submitting approximately $38 million in fraudulent health care claims to United Healthcare and Blue Cross Blue Shield was arrested this morning by federal law enforcement agents.
According to allegations in the federal grand jury indictment, from February 2015 through July 2021, 63-year-old Armando Valdes owned and operated Gasiel Medical Services, Corp. (“Gasiel”) a medical clinic in Miami, Florida. It is alleged that Gasiel submitted approximately $38 million in false and fraudulent claims to United and Blue Cross for infusions of Infliximab which were medically unnecessary and not provided to patients as billed. Infliximab, known by the brand name Remicade, is an expensive prescription immunosuppressive drug approved for the treatment of Crohn’s disease, pediatric Crohn’s disease, ulcerative colitis, pediatric ulcerative colitis, rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis, and plaque psoriasis. The indictment alleges that United and Blue Cross paid Gasiel nearly $8 million as a result of the fraudulent claims for Infliximab submitted by Valdes. According to the indictment, Valdes used his ill-gotten proceeds to purchase four real estate properties, including a beachfront condo in Pompano Beach, as well as luxury vehicles including a Cadillac Escalade and a Tesla Model S.
The indictment charges Valdes with ten counts of health care fraud. If convicted, Valdes faces up to 100 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Valdes will make his initial appearance today at 1:30 p.m., before U.S. Magistrate Judge Jacqueline Becerra, who sits in Miami.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office announced the charges.
Assistant U.S. Attorney Michael B. Homer is prosecuting this case. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20590.
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Miami Federal Jury Convicts Man Who Kidnapped and Tortured VictimRead the Press Release
Miami, Florida – This week, a federal jury in Miami returned a guilty verdict against 56-year-old Serge Nkorina, a man who kidnapped a victim at gunpoint and later tortured him inside a storage container with a blow torch.
At trial, Assistant U.S. Attorneys Robert F. Moore and Marc Chattah presented evidence that from late 2018 to early 2019, Serge Nkorina and his co-conspirator, Justin Boccio, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. The victim was a South Florida plastic surgeon who had treated Nkorina’s wife. To learn the victim’s daily movements, Nkorina and Boccio stalked the victim at home and work and placed a GPS tracker on the bottom of his car. To get ready for the torture session, Nkorina and Boccio purchased devices from hardware and medical supply stores and rented a storage container in Margate, Florida to use as the torture site.
Prosecutors presented evidence that on January 14, 2019, Nkorina and Boccio followed the victim from work to a supermarket. When the victim returned to his car with groceries, they tased his neck and threw him into a van. Nkorina and Boccio took the victim to the Margate storage container, where they tortured him for hours. Nkorina burned the victim’s hands with a blow torch, forcing the victim to reveal the security gate and door codes to his home. When Nkorina and Boccio tried to use the information that night to enter the victim’s home, they were scared off by a light connected to the doorbell camera. Nkorina and Boocio aborted the plan and dumped the victim at a strip club parking lot.
The jury found Nkorina guilty of conspiring to commit kidnapping and kidnapping. Senior U.S. District Judge Paul C. Huck will sentence Nkorina on February 15, 2022, at 9:30 a.m., in federal district court in Miami. Nkorina faces a maximum sentence of life in prison.
Justin Boccio previously pled guilty and is currently serving a 135-month sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorneys Robert F. Moore and Marc Chattah are prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20261.
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Maryland U.S. Attorney Erek L. Barron Announces More Than $1.8 Million in Grants from the Department of Justice to Reduce the Backlog of DNA Testing in Six Maryland Law Enforcement AgenciesRead the Press Release
Baltimore, Maryland – U.S. Attorney Erek L. Barron today announced $1,835,897 in Department of Justice grants to six Maryland law enforcement agencies to be used to reduce the backlog in DNA testing at their laboratories. The awards will be used to hire additional staff, improve and maintain laboratory capabilities, purchase specialized equipment to improve laboratory operations, and fund technical training and continuing education. The awards are part of the Justice Department’s Office of Justice Program’s Bureau of Justice Assistance FY 21 DNA Capacity Enhancement for Backlog Reduction (CEBR) Program.
In addition, the Justice Department awarded two grants totaling $615,477 to the Governor’s Office of Crime Prevention, Youth, and Victim Services, under the FY21 Paul Coverdell Forensic Science Improvement Grants Program. Under the first grant, $365,477 will be distributed to six forensic crime laboratories and the Chief Medical Examiner's Office to reduce backlogs related to latent print examination, firearms examination, and drug analysis and to purchase equipment needed to improve the quality and efficiency of forensic services statewide. The second grant of $250,000 will be used by the Office of the Chief Medical Examiner to purchase and implement and Laboratory Information Management System in order to improve efficiency and address needs including: chain of custody records; workflow automation; improved data security; and long-term data storage.
“Forensic science, especially DNA testing has become critical in solving many crimes,” said United States Attorney Erek L. Barron. “These funds will assist our state and local law enforcement partners to improve laboratory efficiency and address the backlog of DNA testing in order to allow victims to obtain justice without undue delay.”
The following Maryland organizations received funding to control and reduce the backlog of DNA cases:
- The Anne Arundel County Police Department Forensic Services Section received $260,000 which will be used to hire a full-time Laboratory Technician, fund more than 100 hours of overtime, and to purchase specialized equipment to allow quicker turnaround times for testing.
- The Baltimore Police Department Crime Lab received $401,985 which will be used to fund the salaries for four scientists to perform laboratory testing procedures and identify samples to forward for DNA testing
- The Baltimore County Police Department Crime Lab received $222,597 to purchase specialized equipment and technology to improve lab performance and to pay for technical training and continuing education.
- The Maryland State Police Forensic Sciences Division received $431,315 to control the backlog of forensic biology/DNA cases by outsourcing, maintain current laboratory capabilities and improve operations, and provide required continuing education.
- The Montgomery County Police Crime Laboratory received $260,000 which will be used to outsource cases as needed to compensate for increased case submissions and fewer analysts performing casework analysis and to fund continuing education for analysts.
- The Prince George’s County Police Forensic Science Division received $260,000 to outsource DNA evidence from backlogged cases in order to reduce the current backlog of DNA cases.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.# # #
Man from Belen pleads guilty to federal firearm and carjacking chargesRead the Press Release
ALBUQERQUE, N.M. – Michael DeHerrera, 25, of Belen, New Mexico, pleaded guilty in federal court on Nov. 24 to being a felon in possession of firearm and carjacking. DeHerrera will remain in custody pending sentencing, which has not been scheduled.
DeHerrera was indicted on July 29, 2020. According to the plea agreement, on Feb. 3, 2020, DeHerrera carjacked a victim by threating her with a screwdriver in Bernalillo County, New Mexico. DeHerrera began to drive away with a victim still in the car, causing her to jump from the moving vehicle. DeHerrera also admitted that on Feb. 18, 2020, he possessed a firearm before attempting to dispose of it by throwing it from the window of a moving vehicle.
At the time DeHerrera possessed the firearm, he had a prior felony conviction for armed robbery. As a convicted felon, DeHerrera could not legally possess a firearm.
By the terms of the plea agreement, DeHerrera faces five years in prison.
The FBI Albuquerque Field Office and the Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Frederick T. Mendenhall is prosecuting the case.
Man Sentenced to 365 Months in PrisonRead the Press Release
SAN JUAN, PUERTO RICO – On December 8, 2021, U.S. District Judge Francisco Besosa sentenced Jadiel Torres-Rijos to a term of 365 months (30 years and 5 months) in prison for his participation in a robbery resulting in the murder of Armando Rosado-Molina, a businessman who owned several gas stations and other commercial properties, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
Between March 30, 2019 and March 31, 2019, Torres-Rijos and his co-defendants planned to commit a robbery at Rosado-Molina’s residence in San Lorenzo. During the evening hours between March 31, 2019 and April 1, 2019, Torres-Rijos and his co-defendants set up surveillance near Rosado-Molina’s residence. They were armed with a baseball bat, a weapon having the appearance of a rifle, and pepper spray. Torres-Rijos and his co-defendants later breached the residence and encountered Rosado-Molina who tried to defend himself with a firearm he legally owned. During a physical struggle with one of the robbers, Rosado-Molina lost control of the firearm. He was subsequently beaten with a baseball bat, after which point he was shot and killed.
Torres-Rijos and his co-defendants, all of whom have already pleaded guilty and are pending sentencing, took over $20,000 from Rosado-Molina’s residence, and two motor vehicles.
“The U.S. Attorney’s Office is committed to bringing those who commit acts of violence to justice,” said U.S. Attorney Muldrow. “The imposition of a 365-month sentence sends a loud and clear message that violent offenders will be held accountable for their crimes.”
The Federal Bureau of Investigation was in charge of the investigation, and Assistant United States Attorney Alexander Alum prosecuted the case.
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