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3 December 2021
Brazilian National Sentenced to 60 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
AUSTIN – A Brazilian national was sentenced today to 60 years in prison for sexual exploitation of a child, followed by 10 years of supervised release. Defendant was also ordered to pay restitution to his victims.
According to court documents, Luann Fabric Campos Leao Hida, aka “Luann Hida,” “Luann Leao,” and “LOTR,” 27, enticed minors to engage in sexually explicit conduct and produced visual depictions of the conduct. Hida would furnish alcohol and e-cigarettes to minors. In addition, he would give money and vaping materials to the minors in exchange for sexual favors.
On August 26, 2021, Hida pleaded guilty to two counts of sexual exploitation of a child and one count of distribution of child pornography.
Hida has remained in federal custody since his arrest on July 1, 2019.
“This is one of the most heinous child sexual crimes we have seen in our community and the Court recognized this with its sentence,” said U.S. Attorney Ashley C. Hoff. “Child sexual predators cause incalculable and long-lasting damage to our communities, the individual victims, and the families of the victims and we will continue to prosecute these cases aggressively to bring justice for the victims and protect our communities.”
“This case is particularly egregious, as it involved 20 child victims over the course of four years,” said FBI Special Agent in Charge Christopher Combs. “The FBI and our law enforcement partners are committed to protecting our community's vulnerable children and holding accountable those who would harm them.”
The FBI investigated the case in conjunction with the U.S. Secret Service, Hays County Sheriff’s Office, Lakeway Police Department, Travis County Sheriff’s Office, Bee Cave Police Department, and Austin Police Department.
Assistant U.S. Attorneys G. Karthik Srinivasan and Keith M. Henneke prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Bois Forte Man Sentenced to 30 Months in Prison for Violent AssaultRead the Press Release
MINNEAPOLIS – A Bois Forte man was sentenced today to 30 months in prison followed by two years of supervised release for violently assaulting a man on the Bois Forte Reservation.
According to court documents, on May 31, 2020, Marshall Wayne Boshey, 20, assaulted a man outside of the defendant’s residence by repeatedly hitting him with a baseball bat on the top of his head and across his upper body. Boshey also cut the man with a small pocket knife. The victim was hospitalized for his injuries and required 11 staples to his scalp, 20 sutures on his left ear, 3 sutures on his left elbow, and 6 sutures on his left hand.
On July 9, 2021, Boshey pleaded guilty to one count of assault with a dangerous weapon.
Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case is the result of an investigation conducted by the FBI and the Bureau of Indian Affairs.
This case was prosecuted by Assistant U.S. Attorneys Chelsea A. Walcker and Deidre Y. Aanstad.
Bogalusa Rapper Indicted After Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAVORIOUS SCOTT, aka JAYDAYOUNGAN, age 23, a Bogalusa resident and rapper was charged in a one-count indictment with possession of a firearm while under indictment for a felony, in violation of Title 18, United States Code, Sections 922(n)(1) and 924(a)(1)(D), announced U.S. Attorney Duane A. Evans.
According to court documents, on October 29, 2021, officers with the Bogalusa Police Department executed a traffic stop on a silver-colored Audi bearing a Virginia license plate traveling south on South Columbia Street in Bogalusa, Louisiana because the vehicle possessed a switched license plate. SCOTT, the driver of the vehicle, failed to provide his license or vehicle registration. While speaking to SCOTT and the passenger, officers smelled a strong odor of marijuana in the vehicle. The officers also observed a black handgun on the driver’s side floorboard directly beneath SCOTT’S legs. Officers removed SCOTT from the vehicle and observed a small amount of suspected marijuana in the driver’s seat. Officers then recovered a loaded Ruger Model Security-9, 9mm, pistol from the driver’s side floorboard.
At the time that the officers located and seized the firearm from the floorboard, SCOTT was under indictment for felony crimes, possession of a controlled substance and assault, in Harris County, Texas.
SCOTT faces a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00, up to (3) years of supervised release following any term of imprisonment, and a mandatory $100.00 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department. The prosecution is being handled by Assistant United States Attorney André Jones.
Bogalusa Man Indicted After Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – CARLOS WALKER, age 31, a resident of Bogalusa, Louisiana, was charged in a one-count indictment with possession of a firearm after having been convicted of a felony, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to court documents, on September 24, 2021, WALKER, knowing he had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess a Taurus Model G2C 9mm pistol.
WALKER faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to (3) years of supervised release following any term of imprisonment, and a mandatory $100.00 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department. The prosecution is being handled by Assistant United States Attorney André Jones.
Baltimore Man Facing Federal Indictment for Tax Evasion and Failure to File Tax ReturnsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Michael McDonald, age 40, of Baltimore, Maryland, for tax evasion for tax years 2016 through 2018 and failure to file tax returns for the tax years 2016 through 2019. The indictment was returned on November 10, 2021, and unsealed today upon McDonald’s arrest. McDonald will have an initial appearance today at 1:30 p.m. in U.S. District Court in Baltimore before U.S. Magistrate Judge Mark Coulson.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the seven-count indictment, McDonald submitted false W-4 forms for tax years 2016, 2017, and 2018. In addition, the indictment alleges that McDonald failed to file an income tax return for those tax years as well as for tax year 2019.
If convicted, McDonald faces a maximum sentence of five years in federal prison for each count of tax evasion and a maximum of one year in federal prison for each count of failure to file income tax returns. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and the IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kathleen O. Gavin and P. Michael Cunningham, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Arizona Man Sentenced for Failure to Pay Child SupportRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Anthem, Arizona, man convicted of Failure to Pay Child Support was sentenced on November 30, 2021, by U.S. District Judge Karen E. Schreier.
Jacob A. Tate, age 45, was sentenced to five years of probation, $78,979.14 in restitution to the South Dakota Department of Social Services, Office of Child Support Enforcement, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Tate was indicted by a federal grand jury on June 6, 2018. He pled guilty on February 22, 2021.
The conviction stemmed from the fact that Tate failed to pay child support from on or about October 1, 2012, through June 6, 2018. Tate has five children who live in South Dakota. Tate knew that a support order had been issued against him to pay child support, but he willfully did not make payments toward the child support.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the South Dakota Department of Social Services. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
2 December 2021
Wiggins Man Pleads Guilty to Transportation of Child PornographyRead the Press Release
Hattiesburg, Miss. – A Wiggins man pled guilty to transporting visual depictions of minors engaging in sexually explicit conduct, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Charles Ezekiel Spangler, 38, was identified by the FBI when they received information from the National Center for Missing and Exploited Children that he uploaded pictures of minors engaging in sexually explicit conduct via the internet to his Tumblr account in June of 2018.
Spangler is scheduled to be sentenced on March 8, 2022, at 9:30 a.m. in Hattiesburg, and faces a maximum penalty of 20 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case with the assistance of the Mississippi Attorney General’s Cyber Crimes Division.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Wholesale Distributor of Medical and Dental Supplies to Pay $500,000 to Resolve Controlled Substance Act ViolationsRead the Press Release
CHARLESTON, W.Va. -- Henry Schien, Inc., (“HSI”) a wholesale medical distributor based in Long Island, New York, has entered into a settlement agreement with the United States to resolve civil penalty claims arising from its improper distribution of opioids and other controlled substances to medical and dental practitioners in five states in violation of the Controlled Substances Act (CSA).
The settlement provides that between January 1, 2015 and October 9, 2018, HSI distributed approximately 25,400 hydrocodone pills and 3,600 Xanax pills to Scott Edmonds, DDS, a dentist practicing in Huntington, West Virginia, making him one of the top practitioners for hydrocodone purchases in the state. After the DEA conducted an administrative inspection of Dr. Edmonds’ office, he admitted that he had obtained the substances from HSI to feed his personal addiction. Dr. Edmonds voluntarily surrendered his DEA registration and entered rehab, and later entered into a civil penalty settlement with the United States for his CSA violations. Further investigation revealed that HSI had enabled the dentist’s abuse by overlooking numerous red flags indicating abuse and diversion. Specifically, HSI approved Dr. Edmonds’ repeated requests to increase the quantities of controlled substances he could order, and HSI personnel cleared the dentist to continue abusing the medications after an office inspection in February, 2016 revealed that Dr. Edmonds was not properly accounting for where the drugs were going.
HSI also distributed opioids to Dr. Elizabeth Korcz, a family medicine physician in Hoover, Alabama. From February 2015 to February 2017, HSI sold more than 100,000 hydrocodone pills to Dr. Korcz, some of which were diverted. Dr. Korcz and her husband Matthew Korcz were indicted in the U.S. District Court for the Northern District of Alabama and pled guilty to conspiracy to unlawfully dispense controlled substances. HSI was the primary distributor of opioids to Dr. Korcz.
From 2013 to 2017, HSI sold nearly 55,000 units of hydrocodone to Dr. John Eldridge, a chiropractor and naturopathic physician who practiced in Phoenix, Arizona, despite red flags of abuse and diversion and significant disciplinary history related to his license to practice medicine. Dr. Eldridge pled guilty to state charges of solicitation to offer to sell or transfer a narcotic drug in August 2021 and surrendered his naturopathic medical license.
From July 2012 to September 2014 HSI supplied more than 24,000 10 mg hydrocodone pills to Dr. Larry Preston, a general family dentist practicing near Bristol, Tennessee. Dr. Preston was continually among the top three dental practitioners purchasing oral hydrocodone in the Knoxville, Tennessee area from 2006 through 2014. In 2012, 2013, and 2014 Preston purchased more oral hydrocodone than any other dentist in the Knoxville area. In 2015, federal and state agents learned that Preston had been consuming approximately 15 hydrocodone tablets every day since 2002. Dr. Preston pled guilty in 2015 to federal charges in the Eastern District of Tennessee.
From April 2014 to July 2016, HSI supplied nearly 4,000 oxycodone and hydrocodone tablets to Dr. Frank Purpera, a vascular surgeon practicing in Blacksburg, Virginia. A federal investigation determined that Dr. Purpera had no record of what happened to these pills. Investigators learned that Dr. Purpera illegally distributed the opioid tablets, providing many of the pills to his wife. Dr. Purpera was criminally prosecuted by the United States Attorney’s Office for the Western District of Virginia and convicted in January 2020 of illegally distributing controlled substances, health care fraud, conspiracy to commit health care fraud, and obstruction of justice.
Pursuant to 21 C.F.R. 1301.74(b) distributors of controlled substances have a responsibility to “design and operate a system to disclose to the registrant suspicious orders of controlled substances” including “orders of unusual size, orders deviating substantially from a normal pattern, and orders of unusual frequency.” Distributors must “inform the Field Division Office of the Administration in his area of suspicious orders when discovered by the registrant.” Moreover, registrants are obliged to maintain effective controls against diversion of controlled substances into other than legitimate medical, scientific, and industrial channels. The United States contends that HSI’s failure to comply with its responsibilities under the CSA enabled the diversion and abuse described above.
“The opioid epidemic has caused unspeakable harm to communities throughout West Virginia and the nation,” said United States Attorney Will Thompson. “DEA registrants have obligations under the CSA that HSI failed to uphold. Together with DEA, we will utilize every tool at our disposal to hold accountable those that contribute to the diversion of opioids, fuel substance use disorder and cause despair and death among our families.”
“Medical distributors who ignore red flags and put profits over patient care must be held accountable for the harm they inflict on our communities,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division, which includes West Virginia, Kentucky and Tennessee. “Henry Shien, Incorporated played a role in fueling the opioid crisis in several states and today’s announcement provides some measure of justice for those who have suffered as a result of their greed and unlawful actions.”
The case was handled by former Assistant United States Attorney Alan G. McGonigal and Assistant United States Attorney Gregory P. Neil.
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.
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Waterloo Man Sent Back to Federal Prison for Possessing Guns While as a Felon and While on Supervised ReleaseRead the Press Release
A man who possessed firearms after finishing his prison terms was sentenced December 1, 2021, to a total of seven years in federal prison.
Jumonie Dontez Wilson, age 21, from Waterloo Iowa, received the prison term after an April 23, 2021 guilty plea to being a felon in possession of a firearm.
In October 2019, Wilson was sentenced to 21 months in prison after pleading guilty to being a drug user in possession of a firearm. In his December 1, 2021, sentencing hearing, Wilson admitted that after being released in October 2020, he violated his supervised release conditions by using marijuana and possessing a firearm. On November 18, 2020, Wilson was at a residence with friends and a gun went off, resulting in life threatening injuries to one of the friends. Wilson later told another person that he and the injured person believed the guns were empty and shot at each other. Wilson was arrested the next day when he ran from law enforcement while tossing a loaded firearm.
Wilson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wilson was sentenced to 60 months’ imprisonment in the felon in possession case and must serve an additional 24 months’ imprisonment in the 2019 case. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Wilson is being held in the United States Marshal’s custody until he can be returned to federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are is 20-cr-2065 and 19-cr-2018.
Follow us on Twitter @USAO_NDIA.
Upton Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – An Upton man pleaded guilty yesterday in federal court in Worcester to possessing child pornography.
Matthew Stefanelli, 32, pleaded guilty to one count of possession of child pornography before U.S. District Court Judge Timothy S. Hillman who scheduled sentencing for March 18, 2022. Stefanelli was arrested and charged on July 14, 2021.
In December 2020, a CyberTip report identified Stefanelli as the owner of an account used to store child pornography. On Jan. 6, 2021, a search of Stefanelli’s residence resulted in the seizure of several electronic devices including Stefanelli’s cell phone. A forensic review of the phone revealed approximately 33 image files depicting child pornography, including the child identified in the CyberTip report. Stefanelli stored these images in an encrypted application designed to appear as a calculator.
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 $250,000. Sentences are imposed by a federal district court judge based on the United States 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 Upton Police Chief Michael J. Bradley Jr. made the announcement today. Assistant U.S. Attorney Kristen Noto of Mendell’s Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is 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 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/.
Two Novus Doctors Sentenced to Combined 23 Years in Prison for Healthcare FraudRead the Press Release
Two doctors who helped a local hospice agency scam Medicare were sentenced today to a combined 23 years in prison for healthcare fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
In May, a federal jury found Novus Health Services Medical Directors Dr. Mark E. Gibbs and Dr. Laila Hirjee, along with Novus RN Tammie Little, guilty of conspiracy to commit healthcare fraud and other charges. Today, Chief U.S. District Judge Barbara M.G. Lynn sentenced Dr. Gibbs to 13 years in federal prison and ordered him to pay $27,978,903 in restitution; she sentenced Dr. Hirjee to 10 years in federal prison and ordered her to pay $16,253,281 in restitution. The judge also sentenced Ms. Little to 33 months in federal prison.
According to evidence presented at trial, the defendants helped Novus CEO Bradley Harris defraud Medicare by, among other things, illegally admitting patients who were not appropriate for hospice and submitting materially false claims for hospice services.
Mr. Harris, who pleaded guilty prior to trial, testified against his former employees.
He told the jury that instead of relying on the expertise of licensed medical professions, he and Novus nurses determined which patients would be admitted to or discharged from hospice care, as well as which drugs and dosages they would receive.
They relied upon Novus doctors, including Dr. Gibbs and Dr. Hirjee, to certify that they had examined these patients face-to-face, when no such examinations had occurred, Mr. Harris testified.
Witnesses also testified that Dr. Hirjee and Dr. Gibbs engaged in the prescription of Schedule II controlled substances, such as morphine, hydromorphone, and fentanyl, by pre-signing blank C2 prescriptions and giving those to Brad Harris and others at Novus to let them prescribe controlled substances without any physician oversight.
As Director of Operations Melanie Murphey testified on day five of trial, “I was the doctor.”
Mr. Harris and the nurses used pre-signed prescription pads, prepared by Dr. Gibbs, Dr. Hirjee, and other Novus doctors, to dispense medications like morphine to patients. When Medicare suspended payment to Novus over concerns about billing, Mr. Harris, Dr. Gibbs, and others moved patients and employees to a new hospice company and continued to bill Medicare for hospice services.
In total, Medicare and Medicaid paid the Novus entities approximately $40 million dollars for hospice services before the companies were shut down.
“These doctors allowed Bradley Harris – an accountant with no medical expertise – to dispense controlled substances like candy, with little to no medical oversight,” said U.S. Attorney Chad Meacham. “They claimed to have had hands-on experience with hospice patients, when in fact, they’d entrusted life-or-death medical decisions to untrained businesspeople. We are satisfied to know they will spend the next decade behind bars.”
“The defendants violated their Hippocratic Oath as doctors and instead focused on lining their pockets at the expense of patient safety. This case highlights the importance of thoroughly investigating any complaint of healthcare fraud,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We encourage the public to help us identify, investigate, and prosecute this crime. If you suspect health care fraud, report it to the FBI at tips.fbi.gov, 1-800-CALL-FBI, or contact your health insurance provider.”
Several of their codefendants – Novus CEO Brad Harris, his wife, Novus Vice President of Patient Services Amy Harris, Novus Director of Operations Melanie Murphy, Novus Medical Director Charles Leach, Novus Medical Director Reziuddin Siddique (deceased), Novus Vice President of Marketing Samuel Anderson, Novus Director of Marketing Slade Brown, Novus RN Jessica Love, Novus triage RN Patricia Armstrong, Novus LVN Taryn Stewart, and Ali Rizvi, the owner of a separate physician home visit company – pleaded guilty to various offenses prior to trial. Love was sentenced 102 months, Stuart was sentenced to 96 months, Armstrong was sentenced to 84 months, Dr. Leach was sentenced to 57 months, and Anderson was sentenced to 33 months. The remaining defendants are facing statutory maximums of between two and 14 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max and Marty Basu are prosecuting the case with Assistant U.S. Attorneys Stephen Gilstrap, Gail Hayworth, and Brian McKay.
Two Malden Men Indicted for Trafficking Fentanyl and MethamphetamineRead the Press Release
BOSTON – Two Malden men were indicted yesterday in connection with trafficking fentanyl and methamphetamine disguised as Adderall, Xanax or oxycodone in and around the Malden area.
Igor Desouza, 25, and Matthew Ramos, 24, were indicted on one count each of possession with intent to distribute 500 grams or more of methamphetamine, 40 grams or more of fentanyl, and other controlled substances. Desouza will be arraigned in federal court in Boston on Dec. 3, 2021.
According to the charging documents, a search of the defendants’ residence on May 25, 2021 resulted in the recovery of a firearm, over 200 rounds of ammunition, black tar heroin, MDMA crystals, cocaine, doses of LSD and nearly 10,000 pills suspected to include thousands of methamphetamine pills pressed to resemble Adderall or Xanax; thousands of fentanyl pills pressed to resemble oxycodone; thousands of MDMA tablets; amphetamines; and oxycodone.
The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to life in prison, at least four and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The investigation was led by DEA’s New England Field Division’s Boston Tactical Diversion Squad. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Malden Police Department; and the Middlesex District Attorney’s Office. Assistant U.S. Attorney Lindsey E. Weinstein of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Iranian Nationals Indicted in Local Cryptojacking CaseRead the Press Release
ST. LOUIS – Yesterday, a federal grand jury indicted Danial Jeloudar and Saeeid Safaei for conspiracy to commit wire fraud. Both defendants are Iranian nationals believed to be living abroad.
This is the first cryptojacking case to be prosecuted in the Eastern District of Missouri. “Cryptojacking has nothing to do with whether a victim owns cryptocurrency,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “It’s about criminals hijacking the use of your computer’s processing power to generate and cash out cryptocurrency.”
Cryptojacking is when cyber criminals fraudulently gain access to a victim’s device to use its computing power to generate or “mine” cryptocurrency. Computing power is needed for a virtual master ledger that uses complicated algorithms to verify and record cryptocurrency transactions. Individuals or groups can dedicate their computer power and be rewarded with cryptocurrency.
According to court documents, both defendants conspired to victimize a technology company in St. Charles, Missouri by fraudulently gaining access and using the company’s account on a cloud service. By misrepresenting themselves through the victim company’s account, the defendants fraudulently authorized the cloud service provider to build and install at least five new computer servers in the cloud. The purpose of the new servers was to run and operate software programs to generate cryptocurrency.
The fraud came to light when the victim company received a bill of more than $760,000 from the cloud service provider related to the use of fraudulent servers.
The following cyber security practices can minimize your risk of cryptojacking:
- Two-step authentication will make it harder for criminals to gain access to your online accounts.
- Monitor log-in history to detect suspicious activity early.
- Audit cloud storage to verify contents.
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI St. Louis Division investigated this case. Assistant U.S. Attorney Kyle T. Bateman handled the case.
Two Georgia men sentenced for using Dark Web to steal identities of elderly victimsRead the Press Release
ATLANTA – Durrell Tyler and DeShawn Johnson have been sentenced for access device fraud and aggravated identity theft related to their use of stolen identities to open accounts with credit card companies and various retailers.
“Criminals using dark net markets to steal identities wreak havoc on the lives of individuals and compromise the financial security of victims,” said U.S. Attorney Kurt R. Erskine. “While law enforcement is focused on investigating and prosecuting these individuals, citizens are reminded to be vigilant with their personal identifiable information.”
“These defendants motivated by greed targeted our most vulnerable population by seeking the identities of older individuals to violate their personal and financial well-being,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors and our law enforcement partners will continue to work every day to protect our elderly neighbors from financial exploitation.”
“Those who operate in the shadows will be exposed to the light of justice,” said U.S. Secret Service Special Agent in Charge Steven R. Baisel. “Deplorable felons who purposely prey on elderly victims are among the worst criminals there are. We will work tirelessly to pull them from their hiding places.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: Durrell Tyler and DeShawn Johnson purchased personal identifiable information (PII) from dark net markets and used the information to open credit accounts using the victims’ information. They then forwarded the phone lines, mailing addresses, and the emails of their victims to their control. This allowed Tyler and Johnson to impersonate victims with creditors and prevented victims from learning about the fraud.
Law enforcement began investigating Tyler after discovering that he attempted to forward the phone number of an elderly couple in Georgia who had been murdered. Search warrants at multiple homes in the Atlanta area used by Tyler and Johnson revealed the scope of their fraud. Law enforcement found mail for victims, fraudulent driver’s licenses in the name of elderly victims with Tyler’s picture, and PII for dozens of victims listed in phones, email accounts, and a handwritten notebook. Tyler and Johnson were each held accountable for more than $130,000 in actual and intended loss suffered by more than 75 victims around the United States. Targets of their scheme included elderly men and women who were repeat victims of identity theft.
The defendants have been sentenced by U.S. District Judge Steve C. Jones as follows:
- Durrell Tyler, 29, of Atlanta, Georgia, was sentenced to three years, ten months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $108,397.55. Tyler was convicted on these charges on May 14, 2021, after he pleaded guilty.
- DeShawn Johnson, 30, of Atlanta, Georgia, was sentenced to one year, six months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $66,097.55. Johnson was convicted on these charges on September 9, 2021, after he pleaded guilty.
The case was investigated by the U.S. Postal Inspection Service and U.S. Secret Service.
Assistant U.S. Attorneys Nicholas Hartigan, Tiffany Dillingham, and former Assistant U.S. Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Arrested in Los Angeles for Their Roles in Hospice Fraud ConspiracyRead the Press Release
Two California hospice facility owners were arrested today in Los Angeles on criminal charges related to their alleged participation in a kickback and health care fraud scheme.
According to court documents, Oganes Doganyan, 49, of Northridge, and Kristine Arutyunyan, 38, of Glendale, paid illegal kickbacks for the referral of Medicare beneficiary information that could be used to bill for purported hospice services. Doganyan and Arutyunyan also caused false and fraudulent claims to be billed to Medicare for hospice services that were medically unnecessary, not eligible for reimbursement, and not provided, including for services purportedly provided to Medicare beneficiaries who did not exist.
Doganyan and Arutyunyan are charged with conspiracy to commit health care fraud, health care fraud, conspiracy to pay and receive kickbacks, and paying kickbacks. If convicted, Doganyan and Arutyunyan each face a maximum total penalty of 35 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison of the Central District of California; Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; Assistant Director in Charge Kristi K. Johnson of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Los Angeles Regional Office, made the announcement.
The FBI Los Angeles Field Office and HHS-OIG are investigating the case.
Trial Attorneys Justin Givens and Helen Lee of the Criminal Division’s Fraud Section 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.
Three South Florida Men Sentenced for Conspiring to Launder Fraudulently Obtained Covid-19 Relief Money and Proceeds from Business Email Compromise SchemesRead the Press Release
Miami, Florida – A South Florida federal district judge sentenced three Broward County residents to prison terms this week for conspiring with each other to launder proceeds obtained from business email compromise schemes and fraudulently obtained Covid-19 relief loans.
Jimpcy One, 35, was sentenced to 36 months’ imprisonment. Frantz Guillaume, Jr. a/k/a Sandro Saintfloeur, 44, was sentenced to 46 months in prison. Gousman Lemy, 43, was sentenced to 51 months in prison. In addition, they were each ordered to pay approximately $1.8 million in restitution.
A business email compromise scheme is a type of computer intrusion that occurs when an employee of a company is fooled into interacting with an email message that appears to be, but is not, legitimate. The bogus email usually contains either an attachment or a link to a malicious website or program. When an unwitting user clicks on either the link or the attachment, it releases some form of malware (i.e., a virus, spyware, or other program application) that subsequently infects the employee’s email and/or computer. The malware may affect an employee’s individual account or spread throughout the computer network. The malware, once executed, can harvest information including but not limited to credentials and passwords, thereby giving the intruder access to sensitive company information.
According to court documents, in July of 2017, Lemy and Guillaume laundered a little over $425,000 obtained from a business email compromise of a Texas based university. Then, in 2019, One joined Lemy, and Guillaume in laundering over $900,000 obtained from a business email compromise of another U.S. based victim company. In each business email compromise scheme, co-conspirators sent false and fraudulent emails from a hacked account which tricked the victims into wiring money into accounts controlled by the defendants and their co-conspirators. One, Gousman, and Lemy then sought to conceal the origin of this fraudulently obtained money by transferring it among the bank accounts of various shell companies that One, Gousman, and Lemy controlled.
When the coronavirus pandemic hit the United States in 2020, One, Gousman, and Lemy allegedly initiated a new fraud scheme using existing shell companies from the email compromise scheme, as well as newly created and reactivated shell companies. Defendants allegedly submitted false and fraudulent loan applications under two U.S. government relief programs authorized by the CARES Act to help small businesses and their employees survive the Covid-19 economic crisis: the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan Program (“EIDL”). In June and July 2020, through false submissions in the names of their shell companies, One, Gousman, and Lemy fraudulently applied for and received close to $2 million in PPP and EIDL funds, which was laundered amongst the co-conspirators.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Atlanta Region; and Amaleka McCall-Brathwaite, Special Agent in Charge of U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Eastern Regional Office announced the sentences imposed by U.S. District Judge Rodolfo A. Ruiz, who sits in Ft. Lauderdale.
FBI Miami, FDIC-OIG, and SBA-OIG handled the investigation, with assistance from the United States Secret Service Miami Field Office and the Treasury Inspector General for Tax Administration Cybercrimes Division. Assistant U.S. Attorney Brooke Watson is prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
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.
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 no. 21-cr-60126.
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Texas Man Sentenced to 12 Years in Prison for Defrauding Business Opportunity Buyers of More Than $5 MillionRead the Press Release
CAMDEN, N.J. – A Dallas, Texas, man was sentenced today to 144 months in prison for his role in orchestrating and operating a fraudulent scheme to sell medical-related business opportunities, causing a loss of more than $5 million, Acting U.S. Attorney Rachael A. Honig announced.
David Weinstein, 62, formerly of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit wire fraud and money laundering. Judge Kugler imposed Weinstein’s sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From December 2015 through November 2020, Weinstein and his conspirators, Vijay Reddy and Kevin Brown, advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.
To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Weinstein, Reddy, and their friends and family members, and they used aliases and disguised phone numbers to speak with potential buyers.
After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $240,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.
After receiving the down payments, Weinstein and Reddy typically delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts. The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.
Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Reddy or Weinstein acted as the seller and signed the contracts with the victims. Approximately 90 victims sent more than $5 million to accounts controlled by the defendants. The defendants spent the victims’ money on personal expenses, including a travel, jewelry, real estate, a wedding and a college education, and other business investments.
In addition to the prison term, Judge Kugler sentenced Weinstein to three years of supervised release and ordered him to pay $5.85 million in restitution. The court also ordered Weinstein to forfeit $1.98 million.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Vijay Reddy pleaded guilty in June 2021 to an information charging him with conspiracy to commit wire fraud and wire fraud and is awaiting sentencing.
The charges and allegations in the criminal complaints against Brown are merely accusations, and he is presumed innocent unless and until proven guilty.
Tampa Man Pleads Guilty to Sending Obscene Material and Letters to a Western PA MinorRead the Press Release
PITTSBURGH - A Florida resident pleaded guilty in federal court to charges of transferring obscene material to a minor, United States Attorney Cindy K. Chung announced today.
Robert Fike, age 50, of Tampa, Florida, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in January of 2019 and in February of 2019, Fike sent packages to a minor female residing in the Western District of Pennsylvania. The packages contained obscene material—socks or leggings with Fike’s semen, as confirmed by laboratory testing and letters addressed to Minor A with graphic, sexually explicit content.
Judge Schwab scheduled sentencing for April 5, 2022 at 9:30 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the Court ordered that the defendant remain detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the Pennsylvania Office of Attorney General, and the Penn Township Police Department conducted the investigation that led to the prosecution of Fike.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Suburban Chicago Woman Charged in Federal Court in Connection with Alleged Child Sex TraffickingRead the Press Release
CHICAGO — A suburban Chicago woman has been arrested after she allegedly arranged for a child to engage in commercial sex acts with customers at hotels.
JAMARI HODGE, also known as “Hypnotic” and “Miracle,” 26, of Calumet City, Ill., is charged with one count of producing child pornography. Hodge was arrested Wednesday. A detention hearing is scheduled for Dec. 6, 2021, at 12:30 p.m., before U.S. District Judge Beth W. Jantz.
The charge and arrest were 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 Lansing, Ill., Police Department, Calumet City, Ill., Police Department, and Richton Park, Ill., Police Department. The government is represented by Assistant U.S. Attorney Shy Jackson.
According to a criminal complaint filed in U.S. District Court in Chicago, Hodge took sexually explicit photographs of the victim and posted them in online advertisements offering commercial sex, the complaint states. Hodge then rented hotel rooms in Illinois that were used for encounters with individuals who responded to the advertisements, the complaint states. Hodge allegedly set the prices and had the customers pay her in cash or electronic transfer after the encounters.
Production of child pornography is punishable by a statutory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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.
Stockton Man Sentenced to over 11 Years in Prison for Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — Angel Jesus Sanchez-Manriquez, 22, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to 11 years and three months in prison for sex trafficking of a child, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October and December 2020, Sanchez-Manriquez posted approximately 70 advertisements on a website, each of which contained photos of a 16‑year-old victim, advertising the victim’s availability to perform commercial sex acts. Sanchez-Manriquez referred to the victim as his “Snow Bunny.”
Sanchez-Manriquez rented motel rooms in and around the Stockton area in which the victim performed commercial sex acts. After executing search warrants, law enforcement agents learned that Sanchez-Manriquez also used his cellphone to take photographs and record videos of the victim engaged in sex acts with adults, including Sanchez-Manriquez.
“The pop-culture imagery of sex work is a far cry from the realities of human trafficking cases like these. Every day, adults and minors are marketed and sold to paying customers by exploiters who control and profit from every aspect of the illegal transactions,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Our agents are deeply committed to working tirelessly with our local, state, and federal partners to recover victims of human trafficking and ensure whose who exploit them face justice. They work closely with victim services specialists to ensure victims are afforded an opportunity to break free from the cycle of exploitation and abuse that is all too common in these cases. No person should ever be trafficked. Please call the National Human Trafficking Hotline at 1(888) 373-7888 if you or someone you know needs help.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty and Sam Stefanki prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
St. Thomas Woman Pleads Guilty to Disorderly Conduct on United States Postal Service Property and is Sentenced to Two Years’ ProbationRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a St. Thomas woman pleaded guilty today to engaging in disorderly conduct on United States Postal Service property and was sentenced to two years’ probation.
According to court documents, Chantelle Grant retrieved a package from the Ottley Post Office in St. Thomas on June 22, 2021. As she was leaving the post office, she bumped into another woman, and then left the building. A few minutes later, Chantelle Grant returned to the building, ran towards the woman she had bumped into minutes before, and punched the woman in the face. She then exited the building again and drove off in a car.
The United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Adam Sleeper prosecuted the case.
St. Louis business owner pleads guilty to tax fraudRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey accepted a plea of guilty from Robyn T. Roberts for multiple counts of aggravated identity theft, wire fraud and preparing and submitting false tax returns. A grand jury in the Eastern District of Missouri indicted Roberts earlier this year on several counts of wire fraud, aggravated identity theft and tax fraud.
Roberts pleaded guilty on today’s date for two counts of wire fraud, two counts of aggravated identity theft and five counts of tax fraud in connection with her work as a tax preparer at Roberts Tax Professionals. Roberts is responsible for causing the overpayment of more than $400,000 in tax refunds by preparing fraudulent tax returns. As part of her scheme, Roberts used stolen social security numbers and fraudulently claimed dependents, education expenses, and business losses on behalf of both herself and other taxpayers.
“Tax preparers have a duty to their clients to prepare complete and accurate tax returns that comply with the law,” said Special Agent in Charge, Tyler Hatcher, IRS Criminal Investigation, St. Louis Field Office. “IRS-CI’s efforts to investigate and prosecute tax fraud are critical to overall compliance. Our Special Agents play an important role in protecting not only honest taxpayers from criminal activity, but the nation’s revenue as well.”
Sentencing is set for March 3, 2022.
The case was investigated by the IRS-Criminal Investigations.
St. Croix Woman Sentenced to 18 Months Incarceration in Federal Prison for Her Involvement in a Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Thema Liverpool, age 33, from St. Croix, Virgin Islands was sentenced on December 2, 2021 in federal court by Judge Wilma A. Lewis to eighteen months incarceration, followed by three years of supervised release for her involvement in a multi-defendant tax fraud scheme. Liverpool also must pay restitution of $83,111.71 to the Internal Revenue Service, the amount of falsely claimed tax return proceeds deposited into her bank accounts as a result of the scheme. The defendant pled guilty on November 18, 2019 to Conspiracy to Defraud the United States.
According to the plea agreement filed with the court, from January 2011 to July 2012, Thema Liverpool and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of individuals (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds, spent them using a debit card, or transferred them to other accounts, all for personal use.
Of ten defendants charged in the tax fraud scheme, Liverpool is one of nine to plead guilty. The tenth defendant, Jacinta Gussie, was found guilty in June of 2021 after a six-day trial of Conspiracy to Defraud the United States, four counts of Theft of Government Money, and two counts of Aggravated Identity Theft. Jacinta Gussie was sentenced on November 12, 2021 to 3.75 years of prison and ordered to pay $44,561.11 in restitution.
The prosecution of this fraud scheme is the result of years of investigative work by the Internal Revenue Service-Criminal Investigations, which identified and dismantled a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz.
Se ofrece recompensa por ciudadano mexicano que enfrenta cargos por tráfico internacional de cocaína y metanfetaminasRead the Press Release
Una corte federal del Distrito de Columbia divulgó la acusación formal contra Juan Carlos Valencia González, alias “Pelón”, “Tricky Tres”, “O3”, “El 3”, “JP”, y “Pelacas”. Ayer, el Departamento de Estado anunció una recompensa de hasta 5 millones de dólares por información que conduzca a su arresto y sentencia.
Un gran jurado en el Distrito de Columbia remitió la acusación en contra de Juan Carlos Valencia González el 8 de octubre de 2020. De acuerdo a los documentos de la corte, al menos desde principios de 2007, Valencia González conspiró con otros para importar más de cinco kilogramos de cocaína y 500 gramos o más de metanfetaminas a los Estados Unidos desde el extranjero. Los documentos de la corte también alegan que Valencia González portó y utilizó un arma de fuego para llevar a cabo sus operaciones de narcotráfico.
“Estados Unidos está comprometido a trabajar con nuestros socios globales para ir en contra de las grandes organizaciones narcotraficantes,” dijo el Procurador Adjunto Kenneth A. Polite Jr. de la División Criminal del Departamento de Justicia. “Estas organizaciones dañan a nuestras comunidades, y las fuerzas de ley estadounidenses se enfocarán en estos individuos responsables por la proliferación de drogas peligrosas en Estados Unidos, sin importar donde residan.”
“El Cártel Jalisco Nueva Generación es una de las organizaciones narcotraficantes más violentas y prolíficas de México, y ha estado inundando a Estados Unidos con fentanilo y metanfetaminas, causando sobredosis y muerte a tantos estadounidenses,” dijo la Administradora de la DEA Anne Milgram. “El anuncio de la recompensa hecho hoy subraya el compromiso de los EEUU. por ir tras los individuos y organizaciones que causan el mayor daño a nuestras comunidades.”
Este caso es parte de la operación “Pinky y Cerebro,” la cual recibió apoyo del Fuerza de Trabajo contra las Drogas y el Crimen Organizado (OCDETF). La división de la DEA en Los Ángeles está investigando el caso.
Los fiscales Kirk Handrich, Kate Naseef, y Kaitlin Sahni de la División Criminal sobre Narcóticos y Drogas Peligrosas están llevando el caso. La oficina de Relaciones Internacionales de la División Criminal apoyó significativamente.
Las acusaciones son meramente alegatos y todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad más allá de duda razonable en una corte de ley.
En Ingles: https://www.justice.gov/opa/pr/reward-offered-mexican-national-indicted-international-cocaine-and-methamphetamine
Sanford Man Sentenced for Tampering with Pizza DoughRead the Press Release
PORTLAND, Maine: A Sanford man was sentenced today in federal court for tampering with a consumer product, U.S. Attorney Darcie N. McElwee announced.
Chief U.S. District Judge Jon D. Levy sentenced Nicholas Mitchell, 39, to four years and nine months in prison and three years of supervised release. Mitchell was also ordered to pay $229,611.92 in restitution to the victim of the offense. Mitchell pleaded guilty on June 24, 2021.
According to court records, Mitchell was an employee of a Scarborough company that manufactured pizza doughs that were supplied to Hannaford for resale to consumers. In approximately June 2020, Mitchell was fired.
On October 5, 2020, Mitchell entered the Hannaford store in Saco and placed razor blades in several of the doughs that were for sale in the display case. Customers later purchased the tainted pizza doughs. When the customers opened the pizza doughs, they discovered the razor blades inside the doughs. When Hannaford learned of the tainted product, store personnel removed the remaining pizza doughs from the refrigerator case. During this process, a store employee discovered another dough with a razor blade in it.
“Eliminating threats to the U.S. food supply is one of FDA’s key missions,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations New York Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health for personal or other motives.”
The U.S. Food and Drug Administration and the Saco Police Department investigated the case, with assistance from the North Berwick and Dover, New Hampshire police departments.
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Roanoke Woman Sentenced for Misusing Official Government SealRead the Press Release
ROANOKE, Va., – A Roanoke woman was sentenced this week to two years’ probation, the first 90 days of which must be spent on home detention, for creating a document misusing the official seal of the United States District Court for the Western District of Virginia.
According to court documents, Lisa Rachelle Spangler, 50, obtained new employment with Medi Home Health in 2020. As part of her employment, a background check was conducted on Spangler, which revealed Spangler was previously convicted of a federal crime in the Western District of Virginia, a fact she hid from her new employers.
Spangler was convicted in 2018 of making a false statement under oath in a federal court proceeding.
When Spangler was confronted about her conviction, she produced a document on letterhead from the Office of the Clerk with the United States District Court for the Western District of Virginia. The letter included the name of the current Clerk of Court and the seal for United States District Court.
The letter claimed that Lisa Rachelle Spangler was not involved in the case referred to in the background check. The letter was not legitimate, and had been fabricated by the defendant.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The United States Secret Service investigated the case.
Assistant U.S. Attorney Charlene R. Day prosecuted the case.
Reward Offered for Mexican National Indicted for International Cocaine and Methamphetamine Trafficking ChargesRead the Press Release
A federal court in the District of Columbia unsealed an indictment earlier this year against Juan Carlos Valencia Gonzalez, aka Pelon, Tricky Tres, O3, El 3, JP, and Pelacas. Yesterday, the U.S. Department of State announced a reward of up to $5 million for information leading to his arrest and conviction.
A grand jury in the District of Columbia returned an indictment against Juan Carlos Valencia Gonzalez on Oct. 8, 2020. According to court documents, beginning in as early as 2007, Valencia Gonzalez conspired with others to import more than five kilograms of cocaine and 500 grams or more of methamphetamine into the United States from a foreign country. Court documents further allege that Valencia Gonzalez carried, used, and possessed a firearm in furtherance of his drug trafficking.
“The United States is committed to working with our global partners to pursue large scale drug trafficking organizations,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These organizations target and damage our communities, and U.S. law enforcement will target those individuals responsible for the proliferation of dangerous drugs here at home, no matter where they reside.”
“CJNG is one of Mexico’s most violent and prolific drug trafficking organizations, which has been flooding the United States with fentanyl and methamphetamine, causing the overdose and death of countless Americans,” said DEA Administrator Anne Milgram. “Today’s reward announcement underscores the U.S. government’s commitment to pursuing the individuals and organizations that are causing the most harm in our communities.”
This case is part of “Operation Pinky and the Brain,” which was supported by the Organized Crime and Drug Enforcement Task Force (OCDETF). The DEA’s Los Angeles Field Division is investigating the case.
Trial Attorneys Kirk Handrich, Kate Naseef, and Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance.
The allegations of a criminal indictment are merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
En Español: https://www.justice.gov/espanol/pr/se-ofrece-recompensa-por-ciudadano-mexicano-que-enfrenta-cargos-por-tr-fico-internacional
Randolph County man sentenced for a drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Derek Raines, of Elkins, West Virginia, was sentenced today to 60 months of incarceration for a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Raines, 38, pleaded guilty in July 2021 to one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Raines admitted to having a .40 caliber pistol during a drug trafficking crime in August 2019.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Raleigh County Man Sentenced to 10 Years in Prison for Federal Gun and Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Raleigh County man was sentenced today to 10 years in prison, followed by 5 years of supervised release, for possession of 100 grams or more of heroin and possession of a firearm in furtherance of a drug trafficking offense.
According to court documents, Richard James Pfost, 39, of Beaver, was the front seat passenger in a vehicle traveling in Belle when deputies with the Kanawha County Sheriff’s Department conducted a traffic stop of the vehicle. Deputies observed marijuana in the vehicle and conducted a search of the vehicle. In the front passenger side of the vehicle, where Pfost was seated, deputies located approximately 112 grams of heroin, 88 grams of methamphetamine, 11 grams of cocaine, a loaded Smith and Wesson M&P Shield 9mm pistol, and a loaded Ruger EC9 9mm pistol. Pfost also had $420 in his possession, which he admitted were drug distribution proceeds. Pfost also admitted that he intended to distribute the heroin, methamphetamine and cocaine for money and that the firearms in his possession were to protect himself, the drugs he possessed, and the drug proceeds.
“Drug trafficking is a significant driver of violence in our communities, particularly in Raleigh and Kanawha Counties,” said United States Attorney Will Thompson. “This substantial sentence demonstrates the effectiveness of our partnerships with ATF and other federal, state and local law enforcement in removing drug dealers with guns from our streets.”
“Drug dealers with guns are a threat to the safety of our communities,” said ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF, along with our local law enforcement partners, will aggressively investigate, arrest and pursue prosecution of these offenders. Today’s sentencing is an example of that effort and highlights the ongoing partnership and commitment between ATF and law enforcement in Raleigh and Kanawha Counties to make our communities safer for everyone.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Department, the Beckley Police Department, the Oak Hill Police Department and the Beckley/Raleigh County Drug and Violent Crime Unit investigated the case.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00094.
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Puerto Rico Mayor Pleads Guilty to Accepting Bribes in Exchange for Millions in Municipal ContractsRead the Press Release
A mayor pleaded guilty yesterday in Puerto Rico to engaging in a bribery scheme in which he received cash payments in exchange for awarding municipal contracts to a particular company (Company A). Relatedly, a Puerto Rico contractor was arrested today for allegedly paying bribes and kickbacks to the mayor.
Felix Delgado-Montalvo, 40, was the mayor of and highest-ranking government official in the municipality of Cataño. Delgado-Montalvo resigned his position as mayor on Tuesday. According to court documents, Delgado-Montalvo unjustly enriched himself by accepting bribes, including cash payments from a particular person, whose business, Company A, would then benefit by being rewarded municipal contracts, including a contract worth nearly $50,000. As part of his plea agreement, Delgado-Montalvo agreed to forfeit $105,820 as proceeds of his illegal conduct.
Relatedly, Mario Villegas-Vargas, 42, of Gurabo, who owned an asphalt and paving company in Puerto Rico, was indicted for allegedly paying kickbacks and bribes to Delgado-Montalvo in exchange for valuable municipal contracts. According to the indictment, beginning in or around June 2017, Villegas-Vargas paid kickbacks and bribes in exchange for Delgado-Montalvo exerting his influence on municipal officials in Cataño, resulting in Villegas-Vargas’s business receiving over $9.9 million in municipal contracts.
Delgado-Montalvo pleaded guilty to one count of conspiracy to solicit and accept bribes. He is scheduled to be sentenced on March 8, 2022, and faces a maximum penalty of five years in prison. Chief Judge Raúl M. Arias-Marxuach for the U.S. District Court for the District of Puerto Rico will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Villegas-Vargas is charged with conspiracy to pay bribes, bribery, and use of an interstate facility in aid of racketeering. If convicted of all counts, Villegas-Vargas faces a maximum total penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
The cases are being prosecuted by Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Scott H. Anderson and Nicholas W. Cannon of U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation, and Villegas-Vargas is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Puerto Rican Man Pleads Guilty in Wide-Ranging Fentanyl, Heroin and Cocaine ConspiracyRead the Press Release
BOSTON – A Puerto Rican man pleaded guilty today in federal court in Worcester to his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Rafael Hidalgo Rodriguez, 33, of Ponce, P.R., pleaded guilty to conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base and 500 grams or more of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for March 21, 2022. Rodriguez was charged in an eight-count superseding indictment along with 17 others in July 2020.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Through court-authorized interceptions of phones used by the DTO and its suppliers, agents were able to identify the individuals who supplied Pedro and Anthony Baez with cocaine, heroin and fentanyl.
Over the course of the investigation, agents seized over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000. Rodrigues distributed between three and five kilograms of cocaine.
Rodriguez is the ninth defendant to plead guilty in this case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison and five years of supervised release. Pedro Baez pleaded guilty on Feb. 2, 2021 and is scheduled to be sentenced on May 17, 2022.
The charge of conspiracy to distribute 280 grams or more of cocaine base and 500 grams or more of cocaine provides for a sentence of up to life in prison, at least four years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Fitchburg and Lunenburg Police Departments; the U.S. Postal Inspection Service; and the Massachusetts State Police. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Proud Boys Member Sentenced to 87 Months on Firearms ChargesRead the Press Release
ALBANY, NEW YORK – Jonathan M. Cuney, age 38, and a part-time resident of East Greenbush, New York, was sentenced today to 87 months in prison, to be followed by 3 years of supervised release, for unlawfully possessing firearms including “ghost guns,” and ammunition.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Cuney previously pled guilty to unlawfully possessing, as a felon, a Springfield Armory rifle and an FMK Firearms Inc. AR-15-style rifle receiver/frame, and to possessing three unregistered silencers, between September 9, 2019 and November 14, 2019.
Cuney has a prior conviction for unlawful gun trafficking. In December 2015, he pled guilty, in the United States District Court for the Southern District of New York, to transporting and selling firearms with obliterated serial numbers while he was a licensed firearms dealer. He was sentenced to 37 months in prison, and returned to East Greenbush in April 2017 upon his release from prison.
In pleading guilty on June 22, 2021, Cuney also admitted that from at least August 2018 until November 12, 2019, he purchased firearms parts from several dozen online retailers, and had these items shipped to East Greenbush; Willits, California (where he maintained a residence); and Providence, Rhode Island (where he formerly maintained a legitimate firearms business). Cuney then used these firearms parts to manufacture non-serialized handguns and rifles, and silencers. These firearms are often called “ghost guns” because they do not have serial numbers, making them more difficult for law enforcement to track.
ATF searched Cuney’s East Greenbush storage unit on November 14, 2019, and found it to contain, among other items:
- Two (2) rifles,
- One (1) revolver,
- Four (4) serialized AR-15-style rifle receivers/frames,
- Two (2) completed “ghost” guns,
- Five (5) pistol parts kits,
- Two (2) completed silencers and enough parts to build more than ten (10) silencers, and
- An assorted quantity of firearm parts and accessories – of which five (5) would be classified as machine guns under federal law – and 3,250 rounds of assorted rifle and pistol ammunition.
Cuney also rented a storage unit in Redway, Humboldt County, California. ATF searched this storage unit on November 20, 2019, and found it to contain, among other items:- Two (2) Glock pistols,
- Seven (7) additional handguns,
- Three (3) rifles,
- One (1) shotgun,
- Five (5) machinegun conversion kits,
- More than ten (10) silencers, and
- More than 1,000 rounds of assorted rifle and handgun ammunition.
Cuney also admitted to unlawfully possessing, on September 17, 2019, in Columbia, Missouri, several thousand rounds of ammunition that he purchased at a firearms store through a straw purchaser.He also admitted to unlawfully possessing, on November 12, 2019, near Tucson, Arizona, a pistol and a rifle, which were discovered during a traffic stop of a vehicle that Cuney was driving.
Cuney has also admitted to joining the Proud Boys organization in late 2018.
In sentencing Cuney, Senior United States District Judge Frederick J. Scullin, Jr. noted that “ghost guns are killing people on the streets every day in this country.”
Judge Scullin noted Cuney’s prior service in the United States Marine Corps, including a combat deployment to Iraq, but said that “any credit you might get for being a veteran is outweighed by your conduct as a criminal. You know how to play the system. You tell a good story – an ‘A’ for creating writing, but an ‘F’ for conduct.”
As part of his plea agreement, Cuney agreed to abandon a variety of firearms, silencers, ammunition, and firearm parts found in both East Greenbush and Redway, California, as well as the following items, all found in Redway: one pair of handcuffs with key; 56 Monadnock disposable single cuffs; and clothing items, patches and badges bearing law enforcement acronyms and insignia, including a Federal Bureau of Investigation (FBI) ball cap, FBI badges, FBI patches, Drug Enforcement Administration (DEA) patches, and DEA badges.
These cases were investigated by the ATF New York Field Division, with assistance from ATF Special Agents and Task Force Officers in Arizona, California, Missouri, Rhode Island, and Wyoming. The California Highway Patrol also assisted in the investigation.
The New York case was prosecuted by Assistant U.S. Attorney Michael Barnett.
The Arizona case was prosecuted by Assistant U.S. Attorney Serra M. Tsethlikai of the District of Arizona.
The Missouri case was prosecuted by Assistant U.S. Attorney Michael S. Oliver of the Western District of Missouri.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Efrain Gregorio-Gonzalez, age 22, of Mexico, was indicted on December 1, 2021, by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney John C. Gurganus, Gregorio-Gonzalez was previously deported from the United States to Mexico in September 2018. He is alleged to have illegally reentered the United States again sometime after September 2018 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Gregorio-Gonzalez faces a maximum penalty of 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pomona Parolee Sentenced to Nearly Three Years in Federal Prison for Stealing Humvee from Army Reserve Center in UplandRead the Press Release
LOS ANGELES – A Pomona man was sentenced today to 34 months in federal prison for stealing a military Humvee from the Army Reserve Center in Upland and then briefly leading police on a chase through a neighborhood.
Armando Garcia, 30, was sentenced by United States District Judge John A. Kronstadt. Garcia pleaded guilty on August 19 to one count of theft of government property. At the time of the offense, Garcia was on parole after being convicted in 2019 in state court on theft and burglary charges.
On November 9, 2020, Garcia stole a militarized High Mobility Multipurpose Wheeled Vehicle – commonly known as a Humvee – that had been secured by a padlock at the Reserve Center in Upland.
Soon after Garcia drove off with the semi-armored combat vehicle with a turret mount, Pomona Police officers saw the Humvee and attempted to make a traffic stop of the unlicensed vehicle.
“[Garcia] fled, leading the officers on a roughly four-minute high-speed chase during which [Garcia] drove on the wrong side of the road, blew through multiple red lights and stops signs, swerved across the road, and drove through several narrow alleys before ultimately giving up,” prosecutors wrote in a sentencing memorandum.
Garcia stopped the Humvee in front of a home on a residential street in Pomona and was arrested at the scene.
Inside the Humvee, police found a large pair of bolt cutters and an Army-approved padlock that appeared to have been cut, according to court documents that note the padlock had secured a steel wire put in place to prevent the turning of the steering wheel.
The FBI’s San Gabriel Valley Safe Streets Task Force investigated this matter. The Pomona Police Department is the sponsoring agency of the Task Force and has hosted the task force since its inception in 2008.
Assistant United States Attorney Juan M. Rodríguez of the General Crimes Section prosecuted this case.
Pekin Man Sentenced to 151 Months in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
PEORIA, Ill. – A Pekin, Illinois, man, Daniel W. Dawe, 48, of the 1600 block of Crescent Drive has been sentenced to 12 years and 7 months in the Bureau of Prisons, to be followed by 8 years of supervised release for possession of methamphetamine with the intent to distribute.
At the sentencing hearing, the government presented evidence that on or about November 5, 2019, Dawe was a passenger in a vehicle that was stopped for a traffic violation. Dawe was searched due to his status on parole, and officers located several individual baggies of suspected ice methamphetamine hidden on his person. A lab report later revealed the methamphetamine weighed 17.584 grams and was 100% pure. Dawe admitted he had been released from prison approximately six months prior in June 2019 and had purchased approximately eight ounces of ice methamphetamine in the time frame since his release. Dawe was on mandatory supervised release for the State of Illinois at the time of this offense.
Dawe pleaded guilty to the sole count of the indictment on June 25, 2021, pursuant to a written plea agreement.
Dawe faced enhanced statutory penalties for possession of methamphetamine with intent to distribute due to his prior 2012 conviction for robbery, a serious violent felony offense - specifically, a minimum of 10 years to life imprisonment, a minimum of eight years to life term of supervised release, and a maximum $8,000,000 fine.
Dawe has remained in the custody of the U.S. Marshals since his arrest November 5, 2019. The Drug Enforcement Administration and Pekin Police Department investigated this case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. 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.
Panamanian Intermediary Pleads Guilty in Connection with International Bribery and Money Laundering SchemeRead the Press Release
Luis Enrique Martinelli Linares (Luis Martinelli Linares), 39, a citizen of Panama and Italy, pleaded guilty today in the Eastern District of New York before U.S. District Judge Raymond J. Dearie for laundering $28 million in connection with a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.
According to court documents, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
Luis Martinelli Linares admitted that he agreed with his brother, Ricardo Alberto Martinelli Linares, and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. To advance the scheme, Luis Martinelli Linares agreed with others to cause the wiring of the Odebrecht bribe funds into and out of the United States, and used some of the proceeds of the scheme to purchase a yacht and a condominium in the United States.
Luis Martinelli Linares pleaded guilty to one count of conspiracy to commit money laundering. He also agreed to a forfeiture amount of approximately $18.9 million. He is scheduled to be sentenced on May 20, 2022, and faces a maximum penalty of 20 years in prison. Judge Dearie will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ricardo Alberto Martinelli Linares was arrested, along with his brother Luis Martinelli Linares, at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on Feb. 4, 2021, in a five-count indictment in connection with this bribery and money laundering scheme. The United States continues its efforts to have Ricardo Martinelli Linares returned to the United States to face justice.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.
The FBI’s International Corruption Unit in New York is investigating this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Luis Martinelli Linares.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
An indictment is merely an allegation, and Ricardo Alberto Martinelli Linares is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Panamanian Intermediary Pleads Guilty for His Role in an International Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Luis Enrique Martinelli Linares (Luis Martinelli Linares) pleaded guilty to conspiracy to commit money laundering for his role in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. The proceeding was held before United States District Judge Raymond J. Dearie.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
The Odebrecht scheme involved a conspiracy to pay more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world, to obtain and retain business for the company. On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act.
At today’s plea hearing, Luis Martinelli Linares admitted that he entered into a conspiracy with his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), and others, to establish offshore bank accounts in the names of shell companies in order to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. To advance the scheme, Luis Martinelli Linares admitted that he and others caused Odebrecht bribe funds to be wired into and out of the United States and used certain wire transfers involving the proceeds of the scheme to purchase a yacht and a condominium in the United States.
Luis Martinelli Linares and Ricardo Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme. The United States has also requested to extradite Ricardo Martinelli Linares, and those proceedings are ongoing.
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant United States Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters. The FBI’s International Corruption Unit in New York is investigating this case.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Pair Sentenced to More than 10 Years for Distributing Methamphetamine, Heroin, Cocaine, and Fentanyl in Roanoke AreaRead the Press Release
ROANOKE, Va. – A pair of Roanoke men, who conspired with others to distribute more than 500 grams of methamphetamine, at least 100 grams of heroin, and 40 grams or more of both fentanyl and cocaine, were sentenced last week to more than 10 years each in federal prison.
Jarod Sylvester Alston, 28, was sentenced last week to 135 months in federal prison and Antonio Lemar Waddell, 32, was sentenced to 132 months in prison.
According to court documents, from at least May 2018 until September 2019, Alston, Waddell, and others engaged in trafficking methamphetamine, heroin, cocaine, and fentanyl out of a residence on Crescent Street, NW, in the City of Roanoke.
On August 28, 2019, investigators executed a search warrant at the Crescent Street residence and seized a variety of illegal drugs, including approximately 370 grams of methamphetamine, 103 grams of fentanyl, 8 grams of cocaine, 6 grams of heroin, and 119 grams of a mixture containing heroin and fentanyl. In addition, multiple firearms and more than $38,000 in cash were also seized.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Roanoke Police Department, the Roanoke Division of the High Intensity Drug Trafficking Area (HIDTA) program, and the Virginia State Police investigated the case.
Assistant U.S. Attorneys Matthew Miller and Kari Munro prosecuted the case for the United States.
Owner of East Bay Tax Preparation Company Charged with Tax FraudRead the Press Release
OAKLAND – A federal criminal complaint unsealed today charges Traci Austin with aiding and assisting in the preparation of fraudulent tax returns, announced Acting U.S. Attorney Stephanie M. Hinds and Internal Revenue Service, Criminal Investigation, and IRS-Criminal Investigation Special Agent in Charge Mark H. Pearson.
The complaint describes Austin, 44, of Brentwood, Calif., as the owner of a tax return preparation business called Emeryville Tax Services (“ETS”). According to the complaint, Austin prepared materially false and fraudulent tax returns for her clients by including false and/or inflated Schedule A expenses, false and/or inflated Schedule C income and expenses, and false dependents. By doing this, Austin fraudulently reduced her clients’ taxable income and tax liability, thereby resulting in larger refunds for the client and higher return preparation fee income for Austin. The investigation has revealed that Austin allegedly assisted in the preparation of at least 42 fraudulent tax returns and an estimated tax loss of well over $697,000 to the federal government.
In addition to the false and fraudulent tax return preparation scheme, the complaint also alleges that since 2016, Austin has hosted a “Tax School” through ETS and charged a fee of at least $200 for students to attend the tax school. According to the complaint, the goal of the tax school was to hire the attendees as preparers for ETS and prepare tax returns for ETS clients as well as the attendees’ own clients. During the tax school, Austin allegedly instructed prospective tax preparers how to fraudulently manipulate tax returns to generate the maximum tax refund, and thus the maximum tax preparation fee by listing fictitious side businesses under Schedule C and fake business expenses on Schedule A, for example, the complaint describes how Austin taught her students how she created a fictitious dog grooming business for a client, created a fictitious profit and loss statement for the fake business, and how she instructed the client to print out some photos of dogs to support the idea of her fictitious business.
Austin is charged with aiding and assisting in the preparation of false and fraudulent federal income tax returns, in violation of 26 U.S.C. § 7206(2).
The charges in the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.
If convicted, Austin faces a maximum penalty of three years in prison and a $100,000 fine; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Austin made her initial federal court appearance this morning before United States Magistrate Judge Kandis A. Westmore. Austin remains out of custody and her next scheduled appearance is at 10 a.m., on February 24, 2022, for a status conference before Magistrate Judge Westmore.
Assistant U.S. Attorney Abraham Fine is prosecuting the case with the assistance of Kay Konopaske and Helen Yee. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Orono Man Pleads Guilty to Possessing a Short-Barreled RifleRead the Press Release
BANGOR, Maine: An Orono man pleaded guilty today in federal court to possessing an unregistered firearm, U.S. Attorney Darcie N. McElwee announced.
According to court records, on March 2, 2021, Louis J. Dettling, 27, of Orono, Maine, was stopped by the Holden Police Department and arrested on outstanding state charges. A subsequent inventory search of Dettling’s vehicle revealed a short-barreled rifle that was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of a rifle having a barrel of less than 16 inches in length unless that weapon is registered to the possessor in the NFRTR.
Dettling faces up to 10 years in prison and a $10,000 fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hancock County Sheriff’s Office, and the Lewiston and Holden police departments.
The prosecution is part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Oregon Check Casher and Construction Company Operators Indicted in Payroll Tax Evasion SchemeRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned a five-count indictment today charging six individuals for their roles in a multiyear scheme to evade the payment of payroll and income taxes on the wages of construction workers.
David A. Katz, 45, of Tualatin, Oregon, the operator of Check Cash Pacific, Inc., a check cashing business with locations in the Portland area and Vancouver, Washington, is charged with conspiring with five individuals affiliated with Oregon-based construction companies to defraud the U.S. by facilitating under-the-table cash wage payments to construction workers to impede and obstruct the IRS’s ability to compute, assess, and collect payroll and income taxes due on the cash wages.
Additionally, Katz is charged with four counts of filing false currency transaction reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Others charged with conspiracy to defraud the U.S. include Martin S. Elizondo, 46, also of Tualatin; Melesio Gomez-Rivera, 47, of Aloha, Oregon; Jorge Peraza, 49, and Natallie N. Graham, 46, both of Beaverton, Oregon; and Jose L. Altamirano, Sr., 60, of Bend, Oregon.
According to the indictment, from at least January 2014 and continuing through December 2017, Elizondo, Gomez-Rivera, and Peraza are alleged to have successfully evaded the employment tax obligations of their respective construction companies and assisted other construction companies do the same. To carry out the scheme, they cashed or had other individuals cash millions of dollars in payroll checks at various locations of Katz’s check cashing business, used the cash to pay construction workers under-the-table, and filed false business and payroll tax returns.
Altamirano is alleged to have used co-conspirators to cash payroll checks at Katz’s business to pay employees of his construction company under-the-table. Graham is alleged to have worked in the office of a subcontracting company used to facilitate and organize the unreported cash payments to workers.
In total, Katz and his co-conspirators cashed approximately $192 million in payroll checks, causing a combined employment and individual income tax loss of $68 million.
Katz, Elizondo, Gomez-Rivera, Peraza, and Graham will be arraigned on these charges in federal court in Portland on December 15, 2021.
Conspiracy to defraud the U.S. is punishable by up to five years in federal prison, a $250,000 fine, and three years’ supervised release. Filing false currency transaction reports is punishable by up to 10 years in federal prison, a $250,000 fine, and three years’ supervised release.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Gavin W. Bruce are prosecuting the case.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Ohio County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Zachary Musilli, of Wheeling, West Virginia, has admitted to a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
Musilli, 26, pleaded guilty today to one count of “Possession of Child Pornography.” Musilli admitted to having child pornography with some depicting children under the age of 12 in March 2021 in Ohio County.
Musilli faces up to 20 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The FBI, the West Virginia Child Exploitation and Human Trafficking Task Force, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New York Resident Convicted by a St. Thomas Federal Jury for Smuggling Marijuana in a Carry-On Bag, Apprehended Upon Arrival at the Cyril E. King Airport, St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that Christopher Dunn, resident of New York, NY, was convicted today for possession with intent to distribute marijuana.
According to the evidence presented at trial, on February 11, 2021, Christopher Dunn arrived at the Cyril E. King airport on an inbound flight from JFK New York, on board Delta Airlines flight 635. While conducting an inbound inspection, Customs and Border Protection (CBP) officers discovered a green leafy material in the contents of Dunn’s carry-on luggage. CBP officers then proceeded to escort Dunn to secondary inspection. Once in secondary inspection, officers conducted a thorough search of Dunn’s carry-on bags and discovered inside three vacuum sealed bags of marijuana. In total, Dunn had 1.37 kilograms of marijuana.
This case is being investigated by the Department of Homeland Security-Homeland Security Investigations and CBP. It is being prosecuted by Assistant United States Attorneys Natasha Baker and Juan Albino, and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Dunn will be sentenced at a later date.
New York Man Sentenced to 4 ½ Years for Passport Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that THIERNO O. BAH, age 30, a resident of New York, New York, was sentenced on December 1, 2021 by U.S. District Judge Sarah S. Vance to 54 months in prison for his role in a criminal conspiracy that involved using false passports to defraud banks.
According to court documents, BAH and codefendant Manuela Gonzalez-Bookman flew from Newark Liberty International Airport to Louis Armstrong International on February 18, 2020. The following day they drove a rental car to a Capital One branch in Metairie. Gonzalez-Bookman entered the bank while BAH waited in the car outside. Gonzalez-Bookman then attempted to cash a stolen check while using a false passport card in the name of another person. When bank employees became suspicious, they called Jefferson Parish Sheriff’s deputies who arrested the pair. Federal agents subsequently determined that BAH and Gonzalez-Bookman had executed the scheme at several other bank branches while using stolen identities. The two individuals had also taken a prior trip to New Orleans on January 31, 2020, where they executed or attempted to execute at least seven fraudulent transactions, including a failed attempt to withdraw $18,600.00 in cash from one victim’s account.
Court documents further detailed how agents developed additional evidence connecting BAH to further fraud. Agents searched BAH’s phone after obtaining a search warrant and found additional stolen credit card numbers along with identities. In one example, BAH’s phone contained a photo of a handwritten note that included a victim’s name, address, social security number, date of birth, current account balance, and last transaction from the victim’s bank account. Agents used this information to corroborate further fraud committed by BAH.
Agents also learned that BAH had pending charges in the Supreme Court for New York, Bronx County. As set forth in BAH’s factual basis, he was pulled over by NYPD officers on July 31, 2019. During the traffic stop, BAH provided a fake ID to officers. The officers also observed credit card skimming paraphernalia in his vehicle. Officers subsequently seized a total of 29 credit cards, three drivers’ licenses, and a card skimming device. The Bronx District Attorney’s Office obtained an indictment charging BAH with 30 counts of criminal possession of a forged instrument second degree, 30 counts of criminal possession of a forged instrument second degree, one count of criminal possession of forgery devices, and one count of unlawful possession of a skimmer device in the second degree.
As to Count 1, passport fraud conspiracy, Judge Vance sentenced BAH to thirty (30) months in prison and three (3) years of supervised release. As to Count 3, aggravated identity theft, Judge Vance sentenced BAH to a mandatory consecutive twenty-four (24) months in prison, one (1) year of supervised release and a $100 mandatory special assessment fee for each Count. The periods of supervised release for both counts will run concurrently. Judge Vance also ordered BAH to pay restitution totaling $32,614.13. Considering the restitution obligation, Judge Vance waived any fine.
The investigation was handled by the U.S. Diplomatic Security Service and Homeland Security Investigations. U.S. Attorney Evans extended his thanks to the Jefferson Parish Sheriff’s Office and the Jefferson Parish District Attorney’s Office for their assistance. U.S. Attorney Evans also thanked the Bronx District Attorney’s Office and the New York Police Department for their contribution to this successful prosecution. Assistant United States Attorneys Matthew R. Payne, K. Paige O’Hale, and J. Ryan McLaren are in charge of the prosecution.
Nevada woman admits transporting minor to Montana for prostitutionRead the Press Release
BILLINGS – A Nevada woman today admitted allegations that she brought a minor girl to Billings for commercial sex activity, U.S. Attorney Leif M. Johnson said.
Ashley Michael Stella, 28, of Reno, Nevada, pleaded guilty to a second superseding indictment charging her with transportation of a minor to engage in prostitution. Stella faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for April 14, 2022. Stella was detained pending further proceedings.
In court documents filed in the case, the government alleged that on April 21, 2021, law enforcement officers responded to a call of possible commercial sex activity at a Billings motel and knocked on the door of the suspect room. Stella, another individual and a 16-year-old girl, identified as Jane Doe 1, emerged. Jane Doe 1, from Nevada, indicated in interviews that she had met Stella in December 2020. Stella informed Jane Doe 1 and that she worked in commercial sex. Jane Doe 1 told law enforcement that she and Stella traveled to Montana in April from Nevada and that both had engaged in commercial sex. Stella told law enforcement she had met Jane Doe 1 in the fall of 2020 and learned her true age later that year. Stella also told investigators that the two had traveled from Nevada to Montana for the purpose of commercial sex and that she had asked Jane Doe 1 if she wanted to go on the trip.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the Montana Department of Justice’s Criminal Investigation Division, FBI and Billings Police Department.
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Nampa Man Pleads Guilty to Firearms ViolationsRead the Press Release
BOISE – A Nampa man pleaded guilty to unlawful possession of a firearm and possession of a firearm with an obliterated serial number.
According to court records, on May 19, 2021, during an Idaho Department of Correction Probation and Parole search, Daniel Vega, 44, of Nampa, was found in possession of a 45 caliber semi-automatic pistol with an obliterated serial number. At the time of the search, Vega was on probation because of a prior conviction for felony domestic battery with traumatic injury and was therefore prohibited from possessing firearms.
Vega pleaded guilty to unlawful possession of a firearm and possession of a firearm with an obliterated serial number. He is scheduled to be sentenced on February 16, 2022 and faces a maximum penalty of ten years in federal prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Idaho Department of Correction Probation and Parole, and the Nampa Police Department, which led to charges.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Monongalia County woman admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sabrina Burton, of Morgantown, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Burton, 25, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin.” Burton admitted to having heroin in May 2020 in Monongalia County.
Burton faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Michael John Aloi presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Monmouth County Felon Charged with Impersonating DEA Agent and Possessing HandgunRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was arrested today for impersonating a federal agent and illegally possessing a firearm as a convicted felon, Acting U.S. Attorney Rachael A. Honig announced.
Wesley Rucker, 34, of Tinton Falls, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon, one count of impersonating a federal agent, and one count of possession of an imitation badge. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni.
According to documents filed in this case and statements made in court:
On Oct. 22, 2021, Rucker sought treatment in the emergency room of a Red Bank, New Jersey, hospital. Hospital personnel noticed that Rucker had a handgun in his waistband. Rucker told hospital security personnel that he was a member of law enforcement and displayed a Drug Enforcement Administration (DEA) identification. Hospital security had Rucker store his handgun in a locker in the hospital’s security office. Hospital personnel contacted the Red Bank Police Department after becoming suspicions of Rucker’s claimed affiliation with federal law enforcement. Responding officers confronted Rucker, and he told the officers that he was a “DEA agent.” Rucker displayed the same DEA identification to the officers. As the officers were investigating Rucker’s claims, Rucker attempted to leave the hospital without his handgun. Officers took Rucker into custody and seized the fake identification along with a fake DEA badge that Rucker had not used. Officers learned that Rucker was a previously convicted felon who had no prior affiliation with the DEA.
The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000. The impersonation of a federal agent charge carries a maximum penalty of three years in prison, and a fine of up to $250,000. The possession of an imitation badge charge carries a maximum penalty of six months in prison, and a fine of up to $5,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Red Bank Police Department, under the direction of Chief Darren McConnell; members of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson; officers of the Old Bridge Police Department, under Acting Chief Joseph P. Mandola Jr.; and officers of the Matawan Police Department, under the direction of Chief Thomas J. Falco, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Missoula woman suspected of trafficking methamphetamine appears in courtRead the Press Release
MISSOULA—A Missoula woman had an initial appearance on Dec. 1 on a criminal complaint accusing her of trafficking methamphetamine after law enforcement officers seized 17 pounds of the drug, U.S. Attorney Leif M. Johnson said.
A criminal complaint filed and unsealed on Dec. 1 alleges that Jasmine Lori Snyder, 39, possessed meth with intent to distribute. The maximum penalty for the crime is a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Snyder was detained pending further proceedings.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The government alleged in court documents that on Nov. 12, law enforcement received information about drug activity in Missoula. An investigation led to the interception and seizure of two packages that were sent through the mail from California and addressed to a Missoula residence where Snyder had packages delivered. Law enforcement served search warrants on the two packages and determined that they contained a total of approximately 17 pounds of meth. Seventeen pounds of meth is the equivalent of about 61,608 doses. Officers arrested Snyder on Nov. 30 near her residence.
The FBI’s Montana Regional Violent Crime Task Force, the U.S. Postal Service and the Missoula High Intensity Drug Trafficking Area Task Force investigated the case.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
PACER case reference. 21-119.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Mississippi Resident Sentenced to 78 Months in Prison for Healthcare FraudRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Mississippi resident for healthcare fraud and conspiracy to commit healthcare fraud, announced U.S. Attorney Prim F. Escalona and Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick Jackson .
Chief U.S. District Court Judge L. Scott Coogler sentenced Phillip Minga, 56, of Amory, Mississippi, to 78 months in prison. In August, Minga pleaded guilty to four counts of health care fraud and one count of conspiracy to commit health care fraud. The court also ordered Minga to forfeit $7.1 million and to repay more than $16.1 million in restitution.
“By continuing to own or manage pharmacies in Alabama and Mississippi that accepted Medicare patients, Minga did exactly what he agreed not to do” U.S. Attorney Escalona said. “Medicare may exclude persons and companies that it believes do not meet the program’s high standards. Today’s sentence demonstrates that fraudulently evading an exclusion from Medicare is a serious offense with serious criminal penalties.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When an excluded healthcare provider knowingly disregards restrictions and bills federal health care programs, they divert funds intended to provide care and services for our country’s most vulnerable population,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “Today’s sentencing should serve as a warning to those who seek to enrich themselves through such fraud schemes.”
According to documents filed by the government, on October 17, 2016, Minga signed a written agreement in which he agreed to be excluded from the Medicare Program for 10 years. The exclusion agreement provided that Medicare would not pay claims submitted by anyone who employed Minga in a management or administrative role. Nevertheless, from 2016 until 2021, Minga committed healthcare fraud by continuing to manage and control pharmacies that submitted claims for payment to Medicare. In order to avoid detection, Minga ensured that those submitting Medicare enrollment/revalidation paperwork for these pharmacies would not disclose Minga’s ownership interest or managerial role in these pharmacies. From October 17, 2016, to August 16, 2021, Medicare paid approximately $16,109,446.67 to the pharmacies in which Minga had an ownership interest or managerial role.
HHS-OIG investigated the case. Assistant U.S. Attorneys Lloyd Peeples, Ryan Rummage, and Don Long prosecuted the case.