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2 December 2021
Mayor of Cataño Pleads Guilty to Accepting Bribes in Exchange for Millions in Municipal Contracts and Contractor Arrested for Paying BribesRead the Press Release
SAN JUAN, PUERTO RICO – A mayor pleaded guilty yesterday in Puerto Rico on a criminal charge related to his involvement in a bribery conspiracy in which he received weekly cash payments in exchange for awarding municipal contracts to “Company A.” In a separate indictment, a businessman was arrested today on criminal charges related to his alleged involvement in a scheme to bribe the mayor.
Félix Delgado-Montalvo, 40, was the mayor and highest-ranking government official in the municipality of Cataño. According to court documents, Delgado-Montalvo unjustly enriched himself by accepting things of value, including cash payments, from “Person A,” whose business, Company A, would then benefit by being awarded municipal contracts.
Delgado-Montalvo pleaded guilty to one count of conspiracy. He is scheduled to be sentenced on March 8, 2022, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
A separate indictment returned yesterday, alleges that beginning in or around June of 2017, Mario Villegas-Vargas, 42, of Gurabo, who owned an asphalt and paving company in Puerto Rico with “Individual B,” paid kickbacks and bribes to Delgado-Montalvo. In exchange for those payments, Delgado-Montalvo exerted his influence on municipal officials in Cataño to ensure that Villegas-Vargas’s business was awarded municipal contracts. The indictment alleges that Villegas-Vargas’s bribe payments and his efforts to conceal those payments resulted in his business being awarded over $9.9 million in municipal contracts in Cataño.
Villegas-Vargas is charged with one count of conspiracy, one count of federal program bribery, and one count of use of an interstate facility in aid of racketeering. If convicted, Villegas-Vargas faces a maximum 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.
“These investigations are not over,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Today’s announcement makes clear that the citizens of the District of Puerto Rico expect their public officials to act with honesty and integrity, and not for personal gain. I would like to thank the dedicated efforts and support of the FBI and the Department of Justice’s Public Integrity Section in these cases.”
“Public corruption takes resources away from those who need it most and into the pockets of those who are sworn to serve the people. This behavior hurts the people’s trust in our institutions and undermines the work of honest officials who genuinely want to make a difference,” said Joseph González, Special Agent in Charge of the FBI in Puerto Rico. “This is why we will not allow this kind of behavior to go unpunished. There is still much work to be done and I want to thank our local partners for their assistance in this case and continued support of the FBI mission.”
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, and Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office. Assistant United States Attorneys Scott H. Anderson and Nicholas W. Cannon of United States Attorney’s Office for the District of Puerto Rico, and Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section, are prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Massachusetts Resident Indicted for Assault and Weapons Charges Stemming from Incident in North TroyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ivan Carmona—a 30-year-old man from Springfield, Massachusetts—was indicted today by a federal grand jury sitting in Burlington, Vermont. The three-count indictment charges the defendant with assaulting a Border Patrol Agent with a deadly weapon and with possessing a firearm after having sustained a prior felony conviction. The defendant is currently held without bail on state charges. His arraignment on the federal indictment will be scheduled by the Court on a later date. If convicted, Carmona faces a minimum sentence of seven years in prison and a maximum sentence of lifetime imprisonment. He could also be fined up to $250,000.
The case arose from law enforcement’s November 18, 2021, pursuit of Carmona in connection with an unrelated Vermont warrant. United States Border Patrol (USBP) agents from the Newport, Vermont Border Patrol Station assisted state and local authorities in the pursuit of Carmona near North Troy, Vermont. According to the indictment, during the pursuit, Carmona possessed a loaded handgun and brandished it at one of the pursuing Border Patrol Agents.
An indictment is a charging document and is only a set of formal accusations. The defendant is presumed innocent until and unless proven guilty at trial or by a guilty plea. Any eventual sentence imposed by the Court would be advised by the United States Sentencing Guidelines and statutory factors for sentencing.
Several law enforcement agencies participated in the pursuit and apprehension of Carmona, including USBP, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Air & Marine division of Customs and Border Protection, the Orleans County Sheriff’s Department, the Vermont State Police, and the Vermont Drug Task Force. Acting U.S. Attorney Jonathan A. Ophardt commended the collaboration between federal and state agencies in the apprehension of Carmona and praised the calmness and professionalism of the involved Border Patrol Agents.
“Ivan Carmona’s alleged actions threatening a federal law enforcement officer, combined with his criminal record, suggest he is a danger to the community,” said James M. Ferguson, Special Agent in Charge of the ATF Boston Field Division. “It is a testament to both the bravery and professionalism of the U.S. Border Patrol agents that Ivan Carmona was arrested without anyone being harmed during his apprehension. This case is the successful outcome of a concerted, collaborative effort with our local, state, and federal partners to apprehend an individual charged with violent conduct by the state of Vermont. We are committed to intervening against armed individuals who threaten the safety of the citizens of Vermont.”
Orleans County Sheriff Jennifer L. Harlow added: “It has become extremely troubling that Orleans County has become a playground for violence. When individuals within our community, or those who travel to our community, are in possession of firearms, illegal drugs, or both, they pose a risk to public safety. These behaviors effect our entire community and all those within. We are so thankful for the wonderful partnership we have with ATF and the U.S. Attorney’s Office for working so closely with our community to help protect us from these dangers.”
The defendant will be assigned representation at his arraignment in the federal proceeding. The federal case is being prosecuted by Assistant United States Attorney Matthew Lasher.
Massachusetts Contractor Pleads Guilty to $1.8 Million Payroll Tax SchemeRead the Press Release
BOSTON – An Ipswich man who owned and operated numerous Massachusetts businesses pleaded guilty today in connection with charges that he manipulated his payroll to avoid paying taxes.
George Vasiliades, 58, pleaded guilty to 17 counts of failure to collect, account for and pay over federal employment taxes; 17 counts of aiding and assisting the filing of false tax returns; and one count of making a false statement to the Social Security Administration. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 24, 2022. Vasiliades was indicted in September 2018.
Vasiliades operated several businesses, including Alpine Property Services, Boston Central Management, Delta Labor Company, Olympic Painting & Roofing and Turnpike General Contracting. Between 2008 and 2013, Vasiliades concealed the true size of his companies’ payroll from the Internal Revenue Service (IRS). Among other methods, Vasiliades directed certain employees to create shell corporations and then paid employees through these corporations as if they were independent contractors. Vasiliades also paid some employees, including those who were not U.S. citizens and not authorized to work in the United States, from bank accounts that were not connected to his corporate payroll reporting software and, as a result, would not be reported as wages to the IRS. For one non-citizen employee, Vasiliades paid wages using the name and Social Security number of a U.S. citizen employee. In total, Vasiliades’ scheme resulted in more than $1.8 million in tax losses.
The charges of failure to collect, account for and pay over federal employment taxes and making a false statement to the Social Security Administration each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of aiding and assisting the filing of false tax returns each provide for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; and Jonathan Mellone, Special Agent in Charge of the New York Region of the U.S. Department of Labor’s Office of Inspector General, Office of Criminal Investigations – Labor Racketeering and Fraud, made the announcement today. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Maryland Woman Indicted for Passing Fraudulent ChecksRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lucy Annette Alexander, age 35, of Maryland and Washington, DC, was indicted on December 1, 2021, by a federal grand jury on seven counts of bank fraud for using checks in a fraudulent manner at stores located in the Middle District of Pennsylvania.
According to United States Attorney John C. Gurganus, the indictment alleges that between August 2019 and June 2021, Alexander wrote numerous checks at retail store locations, including PetSmart, Sears, Dollar Tree, Weis Markets (or Weis Pharmacy), Food Lion, MOM’s Organic Market, Giant Food, Harris Teeter, The Home Depot, Sally Beauty, Advance Auto Parts, Costco, Barnes & Noble, Hobby Lobby, BJ’s Wholesale Club, CVS Pharmacy, Party City, SHOE SHOW, Bed Bath & Beyond, Roses Discount Store, and others. It is also alleged that the JPMorgan Chase bank accounts from which Alexander wrote these checks were already closed and therefore did not have adequate funds to cover purchases at the above retail stores. Alexander wrote over 200 checks from just one account after it was already closed. The total amount of fraudulent checks written was over $200,000.
It’s also alleged that in May 2020, Alexander wrote and used seven checks from a Chase Bank account for a total of over $17,000, knowing that her account had insufficient funds to cover these checks. These checks were used to purchase goods at Weis Markets, Giant Food, and Roses Discount Store locations in the Middle District of Pennsylvania.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for bank fraud is 30 years’ imprisonment. This charge may also carry a fine of up to $1,000,000 and a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Man Charged with Multiple Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 1, 2021, James Henderson Bryant III, of Westminster, Maryland, was indicted by a federal grand jury for committing five bank robberies in Adams, Cumberland, and York Counties between July 19, 2021 and October 5, 2021.
According to U.S. Attorney John C. Gurganus, the indictment alleges that Bryant robbed branches of BB&T Bank and Citizens Bank taking approximately $28,823 in total during the five robberies:
- July 19, 2021 - BB&T Bank, Hanover, PA $3,026
- August 9, 2021 - BB&T Bank, Gettysburg, PA $8,670
- August 30, 2021 - BB&T Bank, Spring Grove, PA $8,710
- September 22, 2021 - Citizens Bank, Dillsburg, PA $6,206
- October 5, 2021 - Citizens Bank, Carlisle, PA $2,211
The indictment also alleges that Bryant used a dangerous weapon during the commission of two of the robberies. Angell Dawn Peacher, age 34, of Westminster, Maryland, was also charged with aiding and abetting Bryant’s commission of the October 5, 2021, bank robbery.
This case was investigated by the FBI. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for armed bank robbery is 25 years in prison and a $250,000 fine, followed by a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Marshall County man admits to drug trafficking chargeRead the Press Release
WHEELING, WEST VIRGINIA – Luke Colton Cunningham, of Cameron, West Virginia, has admitted to a drug a charge, United States Attorney William J. Ihlenfeld, II announced.
Cunningham, 27, pleaded guilty today to one count of “Distribution of Methamphetamine.” Cunningham admitted to selling methamphetamine in March 2021 in Marshall County.
Cunningham 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. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Sheriff’s Office, and the Cameron Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Man Who Conspired to Distribute Methamphetamine in Tulsa Public Housing Sentenced to 19 Years in PrisonRead the Press Release
A Tulsa man was sentenced Thursday for leading a methamphetamine conspiracy and illegally possessing firearms, announced Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Charles Dean Studie, 37, to 19 years in federal prison followed by five years of supervised release.
“Charles Studie used Tulsa public housing as a base of operations to traffic methamphetamine,” said Acting U.S. Attorney Clint Johnson. “Families in public housing deserve a safe environment to live and raise their children. Thankfully, our partners at the Tulsa Housing Authority Community Enhancement Unit and DEA joined forces to dismantle Studie’s drug operation and protect the community.”
“100,000 Americans died of drug overdoses this year. Oklahomans accounted for 1,009 of those fatalities. As methamphetamine continues to ravage our state, we must stay vigilant in educating our policy makers and enforcing the law on those who would choose to sell and distribute this poison to our citizenry,” said Tulsa County Sheriff Vic Regalado. “I am proud of the work our Tulsa Housing Authority Deputies, in partnership with our colleagues with the Drug Enforcement Administration, have done to ensure the continued safety of our citizens who reside within these housing complexes.”
Studie previously pleaded guilty to drug conspiracy, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
In his plea agreement, Studie admitted that beginning in June 2019, he knowingly and intentionally conspired with others to possess methamphetamine with intent to distribute the deadly drug. He provided methamphetamine and cash to other individuals to promote and further their drug dealing operation, which was being staged out of Tulsa public housing. Studie’s participation required the participation, direction, and action of others, and all parties worked together for their shared mutual benefit. Further, Studie, a felon, admitted that beginning on November 22, 2019, he knowingly possessed a Jennings .25 auto caliber semi-automatic pistol and a Jimenez, .22 LR caliber semi-automatic pistol, in furtherance of a drug trafficking crime.
Tulsa County Sheriff’s Deputies that make up the Tulsa Housing Authority Community Enhancement Unit pursued this investigation as part of their responsibility to ensure the safety and security of the families that live within the Tulsa Housing Authority complexes. The Community Enhancement Unit (CEU) was created through a partnership between the Tulsa County Sheriff’s Office and the Tulsa Housing Authority.
The Tulsa County Sheriff’s Office and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
Mammoth Lakes Man Indicted for 7 Bank Robberies in 5 CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against John William Boland, 38, of Mammoth Lakes, charging him with five counts of bank robbery and two counts of attempted robbery, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, over a period of five weeks, Boland walked into seven banks, in five different counties, and demanded that the teller give him money from the “second” drawer. He also cautioned that the money handed over should not contain any dye packs or electronic tracking devices. On at least one occasion, Boland indicated to the teller that he had a weapon. Police were able to find and arrest Boland a short time after he left the last bank, aided by witness descriptions of the would-be robber and the car in which he drove away.
According to the criminal complaint, the seven alleged robberies are as follows:
March 29, 2021, El Dorado Savings Bank in Sutter Creek;
April 1, 2021, Wells Fargo Bank in South Lake Tahoe;
April 13, 2021, Wells Fargo Bank in Truckee;
April 16, 2021, Union Bank of California in Redding;
May 1, 2021, Wells Fargo Bank in Placerville;
May 3, 2021, Umpqua Bank in El Dorado Hills (attempted); and
May 4, 2021, Wells Fargo in Bank Rancho Cordova (attempted).
This case is the product of an investigation by the Federal Bureau of Investigation, the South Lake Tahoe Police Department, the Rancho Cordova Police Department, the Redding Police Department, the Sacramento County Sheriff’s Office, the Sutter Creek Police Department, the Placerville Police Department, the El Dorado County Sheriff’s Office, and the El Dorado County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Boland faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Macon Man Sentenced to Prison for Trafficking Meth at Local MotelsRead the Press Release
MACON, Ga. – A Macon man convicted of distributing methamphetamine at Macon motels was sentenced to prison this week as part of a larger investigation into drug trafficking along the Eisenhower Parkway corridor.
Carlos Brown aka Lo, 33, of Macon, was sentenced to serve 150 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Tuesday, Nov. 30, after he previously pleaded guilty to distribution of methamphetamine. There is no parole in the federal system.
“This criminal organization is responsible for distributing more than 4.5 kilos of methamphetamine at local hotels in a short period of time, damaging lives while creating a breeding ground for additional crime and violence,” said U.S. Attorney Peter D. Leary. “Our office, working alongside federal and local authorities, will not tolerate this activity; we will pursue federal prosecution when warranted.”
“The sentencing of Brown and his many co-defendants demonstrates the FBI’s commitment to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.
“We are grateful to see Carlos Brown and his cohorts receive proper justice for their evil deeds. This is one group of individuals who have been stopped from spreading dangerous drugs in our community. Our citizens can appreciate the clear results from the partnership between the Bibb County Sheriff’s Office and the FBI,” said Bibb County Sheriff David J. Davis.
According to court documents, FBI and Bibb County Sheriff’s Office agents began investigating Brown for distributing methamphetamine at various hotels around the Eisenhower Parkway corridor in Macon in June 2019. As part of the investigation, agents utilized a confidential source (CS) to conduct multiple controlled purchases of methamphetamine between July and Sept. 2019. A wiretap investigation began in Sept. 2019 and, along with surveillance, confirmed Brown was distributing various quantities of methamphetamine to numerous individuals in the Macon area. The interceptions also revealed that Brown had several sources of methamphetamine supply. During the course of the investigation, the methamphetamine organization distributed more than 4.5 kilograms of “ice” methamphetamine.
The following co-defendants are awaiting sentencing:
Roderick Chester, 34, of Macon, was convicted by a federal jury following a three-day trial on Wednesday, Aug. 25, of conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine and being a felon in possession of a firearm. Chester is facing a mandatory minimum of ten years up to a maximum of life in prison. Sentencing is scheduled for Feb. 2, 2022;
Tamara Fryer, 34, of Macon, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and is facing a maximum of four years in prison. A sentencing date has not been scheduled; and,
Milton Hill, 38, of Macon, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and is facing a maximum of four years in prison. A sentencing date has not been scheduled.
The following co-defendants have been sentenced for their crimes:
Robert Lee Whisby, Jr. aka Lil Pumpkin, 46, of Macon and Stone Mountain, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 240 months in prison to be followed by five years of supervised release;
Rodney Morris, Sr., 46, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve 200 months in prison to be followed by four years of supervised release;
Cartney Pitts aka Blue, 37, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 200 months in prison to be followed by five years of supervised release;
Joshua Barham aka Gambino, 32, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve 175 months in prison to be followed by three years of supervised release;
Shauna Bush aka Brittany, 26, of Macon, pleaded guilty to distribution of methamphetamine and was sentenced to serve 121 months in prison to be followed by three years of supervised release;
Keyundre Stafford aka Dre, 26, of Macon, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and was sentenced to serve 108 months in prison to be followed by five years of supervised release;
Stephanie Davis, 32, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 100 months in prison to be followed by three years of supervised release;
Kyra Williams aka K-Boo, 29, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 100 months in prison to be followed by three years of supervised release;
Morley Culver, 44, of Macon, pleaded guilty to two counts use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and was sentenced to 96 months in prison to be followed by one year of supervised release;
Troy Faulks, 49, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 87 months in prison to be followed by three years of supervised release;
Lori Harrell, 34, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 80 months in prison to run consecutively to sentences imposed in Bibb County, Georgia, Superior Court to be followed by three years of supervised release;
Albruce Green aka B, 41, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve to 60 months imprisonment to run consecutively to a sentence imposed in an unrelated case to be followed by three years of supervised release;
Ray Kendrick aka Unk, 63, of Macon, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and was sentenced to 48 months in prison to be followed by one year of supervised release;
Theon Robinson, 40, of Macon and Sarasota, Florida, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and was sentenced to serve 46 months in prison to be followed by one year of supervised release; and,
Melvin Cason, 32, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve three years of probation.
The case was investigated by FBI and the Bibb County Sheriff’s Office.
Assistant U.S. Attorneys Shanelle Booker, Beth Howard and Will Keyes are prosecuting the case.
Louisiana Men Sentenced for Illegal Possession of Drugs and a FirearmRead the Press Release
MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced that two men from North Louisiana were sentenced yesterday by United States District Judge Terry A. Doughty.
Aaron Farrar, 24, of Sterlington, Louisiana was sentenced to 126 months in prison, followed by 5 years of supervised release, for possession of methamphetamine. Farrar pleaded guilty to the charge on August 18, 2021. The charge stems from an investigation which began when U.S. Postal Inspection Service agents intercepted a suspicious package that was in route to Farrar’s residence address in Sterlington. Agents obtained a search warrant for the package and found approximately 216 grams of methamphetamine concealed in a clock radio. Law enforcement officers placed a small amount of the methamphetamine back into the package and delivered the package to Farrar at the address. Agents were notified when the package was opened, and they executed a search warrant on the residence. During the execution of the search warrant, agents found the delivered package containing methamphetamine, as well as a loaded handgun with extended magazine. Farrar told law enforcement that the package was being delivered to his residence for someone else and that he was supposed to get paid for getting the package to that individual.
The U.S. Postal Inspection Service and U.S. Drug Enforcement Administration investigated the case. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Michael James Carroll, 27, of Tallulah, Louisiana was sentenced to 48 months in prison, followed by 3 years of supervised release, for theft of firearm from a licensed dealer. On or about June 30, 2020, Carroll walked inside Tallulah Gun Sales, a federal firearms licensee in Madison Parish, Louisiana, and removed a Glock pistol from the glass display case without permission. Carroll placed the firearm in his waistband then left the store. Later that day during a traffic stop, law enforcement officers recovered the stolen Glock pistol from Carroll’s vehicle.
The ATF and Madison Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
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Long Island Attorney Sentenced to 57 Months in Prison for Stealing Wrongful Death Inheritance from ChildRead the Press Release
Earlier today, in federal court in Central Islip, Vincent J. Trimarco, Jr., an attorney admitted to practice law in New York State since 1997, was sentenced by United States District Judge Joan M. Azrack to 57 months in prison for conspiracy to commit mail and wire fraud in a scheme to defraud a minor of her inheritance from a federal wrongful death lawsuit. The Court also ordered Trimarco to pay restitution in the amount of $1.5 million, and forfeiture in the amount of $1.5 million. Trimarco pleaded guilty to the charges in October 2020.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Trimarco’s theft of a seven-figure inheritance from a child so that he could purchase luxury vehicles and invest in real estate is a disgraceful breach of trust and betrayal of his time-honored duties as an attorney. His conduct is an affront to the courts, the bar and the community at large,” stated United States Attorney Peace. “Today’s sentence should serve as a warning that this Office will prosecute corrupt attorneys who abuse their positions and break the law for personal gain.”
From April 2012 through August 2017, Trimarco and a co-conspirator executed a scheme to defraud a minor, who was the co-conspirator’s grandchild, of settlement proceeds stemming from a wrongful death action. Using the settlement proceeds, Trimarco and the co-conspirator purchased luxury vehicles, including a Ferrari F430 Spider for $200,000 and a Jaguar XKR convertible for $57,000, as well as multiple properties in Suffolk County for over $600,000, and invested approximately $800,000 in the Emporium, a now-defunct nightclub and music venue in Patchogue, New York, in which Trimarco was, at times, a part owner. Despite orders from the Suffolk County Surrogate’s Court in April 2012, June 2012 and August 2012 restraining the disbursement of the settlement proceeds and ultimately directing that they be returned, Trimarco and his co-conspirator sold the assets that they purchased with the settlement proceeds, but did not return the proceeds to the rightful heir.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile and Michael J. Bushwack are in charge of the prosecution, with the assistance of Assistant United States Attorney Madeline O’Connor, who is handling forfeiture matters.
The Defendant:
VINCENT J. TRIMARCO, Jr.Age: 52
Smithtown, New YorkE.D.N.Y. Docket No. 17-CR-583 (S-1) (JMA)
Local Man Faces Federal Charges for Hoax Bomb Threats Directed at Multiple Schools and a Hospital in OregonRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned an indictment today charging a former resident of Newberg, Oregon with calling in hoax bomb threats to three schools and one hospital in Oregon.
Sean Case McGinley, 40, has been charged with four counts of making interstate threats involving explosives and four counts of conveying false information and hoaxes about destructive devices.
According to court documents, on October 26, 2021, McGinley began making multiple calls to the Newberg-Dundee Police Department dispatch center in which he referenced putting a pipe bomb under a vehicle in Newberg. Officers checked the area McGinley referenced, but did not locate a bomb. Meanwhile, McGinley’s calls and phone number were recorded and determined to originate from the St. Louis, Missouri area. Investigators later learned that McGinley formerly resided in Newberg and had family in and around St. Louis.
On November 9, 2021, McGinley placed another call to the Newberg-Dundee dispatch center claiming that a pipe bomb had been placed in the vehicle tailpipe of a Newberg Municipal Court judge. A Newberg-Dundee police officer returned McGinley’s call and spoke with him about the alleged tip. During this discussion, McGinley told the officer that he hoped someone would place a pipe bomb in the judge’s vehicle tailpipe and that he believed the judge was worthless.
On the morning of November 12, 2021, the principal of Newberg High School contacted Newberg-Dundee police to report a potential bomb threat. The principal gave officers a voicemail from an unknown person claiming there was a pipe bomb in the school. Officers determined that the hoax threat was placed by McGinley and that it also originated in St. Louis. Later the same morning, McGinley called a similar threat into Sherwood High School. McGinley then called a school resource officer at Sherwood High School, identified himself, and provided information about a purported pedophilia ring in Sherwood.
Between November 18 and 23, 2021, McGinley called in at least eight additional bomb threats to various public and private institutions. On November 18 and 22, 2021, McGinley called in threats to St. Paul High School and an elementary school in Tigard, Oregon. On November 23, 2021 alone, he called in four separate threats to Fowler Middle School and Twality Middle School in Tigard, the Providence Newberg Medical Center, and Providence Sherwood Medical Plaza. The threat made to the Providence Sherwood Medical Plaza prompted the facility to evacuate ambulatory patients and staff.
Amidst McGinley’s late November threat spree, authorities sought and obtained a federal criminal complaint and arrest warrant against McGinley and, on November 24, 2021, FBI agents arrested him in St. Louis. McGinley made his first appearance in federal court in the Eastern District of Missouri on November 29, 2021 and was ordered detained pending transfer to the District of Oregon. The investigation into McGinley’s threats is ongoing.
Making interstate threats involving explosives is punishable by up to 10 years in federal prison, three years’ supervised release, and a fine of $250,000. Conveying false information and hoaxes about destructive devices is punishable by up to five years in federal prison, three years’ supervised release, and a fine of $250,000.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Newberg-Dundee, Tigard, and Sherwood Police Departments and the Marion County Sheriff’s Office. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Lancaster Man Charged with Drug Trafficking and Money LaunderingRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dwayne Sherman, age 47, of Lancaster, Pennsylvania, was charged in an eight-count superseding indictment on December 1, 2021, by a federal grand jury on drug trafficking and money laundering charges.
According to United States Attorney John C. Gurganus, the superseding indictment charges Sherman with one count of conspiring to distribute more than 500 grams of cocaine between October 2015 and May 2018, in the Middle District of Pennsylvania, California, and elsewhere and seven counts of money laundering.
Sherman was previously charged in October 2015 and awaiting trial in the Middle District of Pennsylvania on money laundering charges related to sending thousands of dollars in drug related proceeds to Mexico to pay for illegal controlled substances.
The case was investigated by the Internal Revenue Service, the Federal Bureau of Investigation, and the Hawthorne (California) Police Department. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
The maximum penalty under federal law for the most serious offense is 40 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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La Crosse Man Sentenced to 5 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Antwan Taylor, 28, La Crosse, Wisconsin was sentenced today by U.S. Chief District Judge James D. Peterson to 5 years in federal prison for being a felon in possession of a firearm. This prison term will be followed by 3 years of supervised release. Taylor pleaded guilty to this charge on September 13, 2021.
On the night of August 24, 2020, La Crosse Police Department officers responded to a shots-fired complaint in La Crosse. Officers learned that multiple gunshots were fired from a gray minivan towards a blue sedan. Multiple residents reported bullet hole damage to their homes from the shooting including into a bedroom that was occupied at the time.
The next day, officers conducted a traffic stop on the gray minivan involved in the drive-by shooting. Taylor was one of the occupants in the minivan at the time of the stop. Officers searched the minivan and found a loaded Taurus 9mm handgun in the center console. Officers also found a spent 9mm shell casing under the driver’s seat. The Taurus handgun was identified as the same firearm used in the drive-by shooting the night before. The investigation revealed that the shooting was done at the direction of Taylor and occurred because of a “beef” he had with others. The Taurus was sent to the Wisconsin State Crime Lab for DNA analysis and Taylor’s DNA was found on the firearm.
Taylor was prohibited from possessing a firearm based on multiple prior felony convictions. His criminal history includes convictions for drug trafficking and battery.
At sentencing, Judge Peterson noted that this case was not just about simple illegal gun possession but involved a shooting which made it a more serious crime. Judge Peterson expressed concern about the risk posed to others in the community by shootings involving spraying bullets.
The charge against Taylor was the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office also provided assistance in this case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors, and communities to prevent and deter gun violence.
Jury Convicts Georgia Man of Entry Under False PretensesRead the Press Release
ALBANY, NEW YORK – Andrew Avila, age 45, of Acworth, Georgia, was convicted today of entry under false pretenses following a four-day jury trial, announced United States Attorney Carla B. Freedman and U.S. Department of Energy Inspector General Teri L. Donaldson.
The trial evidence demonstrated that Avila traveled from Atlanta, Georgia, on May 2, 2018, and entered the Port of Albany by passing himself off as a Department of Energy (“DOE”) employee. The Port of Albany is a secured area that spans parts of Albany, Rensselaer, and the Town of Bethlehem, New York, and is subject to a security plan required and approved by the United States Coast Guard.
Sentencing is scheduled for April 4, 2022 in Albany, before United States District Judge Mae A. D’Agostino. On the misdemeanor conviction, Avila faces a term of imprisonment of up to six months and a fine of up to $5,000.
The jury voted to acquit Avila of the felony charge of impersonating a DOE employee.
This case was investigated by the Department of Energy, Office of the Inspector General, and was prosecuted by Assistant United States Attorneys Emily C. Powers and Rick Belliss.
Jersey City Man Found Guilty of Being Felon in Possession of a Firearm While Distributing HeroinRead the Press Release
NEWARK, N.J. – A Jersey City man was found guilty today of being a felon in possession of a firearm and carrying a firearm to facilitate distribution of heroin on the streets of New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Raymond Petway, 38, was convicted of one count of possession with intent to distribute heroin, one count of being a felon in possession of a firearm, and one count of possession of a firearm in furtherance of drug trafficking following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Sept. 21, 2017, law enforcement officers from the Jersey City Police Department observed the Petway, a convicted felon, selling heroin at Woodlawn Avenue and Martin Luther King Boulevard in Jersey City while in possession of a loaded and stolen High-Point 9mm handgun.
The count of possession with intent to distribute heroin carries a maximum potential penalty of 20 years in prison. The count of being a felon in possession is punishable by a maximum of 10 years in prison. The count of possessing a firearm in furtherance of drug trafficking is punishable by a mandatory minimum term of five years in prison and a maximum of life in prison, which must run consecutively to the term imposed for the drug trafficking count. Sentencing has not yet been scheduled.
Acting U.S. Attorney Honig credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; and the Hudson County Prosecutors Office Forensic Laboratory, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty verdict.
This is a Project Safe Neighborhoods (PSN) case. PSN is designed to create and foster safer communities through a sustained reduction in violent crime. The program’s effectiveness depends upon the ongoing coordination, cooperation, and partnerships of local, state, tribal, and federal law enforcement agencies and community organizations working together with the communities they serve – engaged in a unified approach coordinated by the U.S. Attorney in all 94 districts.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden and Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
Jackson Man Sentenced to Five Years in Prison for Possession of Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
Jackson, Miss. - A Jackson man was sentenced today to 60 months in prison for possession of firearms in furtherance of drug trafficking crimes, 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, Javarius Jones, 20, was taken into custody on January 24, 2020, during the execution of a search warrant by law enforcement officers from the FBI, Jackson Police Department, and the Mississippi Bureau of Narcotics. Several hundred grams of marijuana, multiple firearms, ammunition, and cash were seized from the residence.
Jones pled guilty on August 12, 2021, to possession of firearms in furtherance of drug trafficking crimes.
The FBI, the Jackson Police Department, and the Mississippi Bureau of Narcotics investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case was 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.
Inmates Charged with Possessing A Prohibited ObjectRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that three inmates at Federal Correctional Institute – Schuylkill (FCI Schuylkill), Minersville, Pennsylvania, were charged separately by criminal information with unlawfully possessing a prohibited object.
According to United States Attorney John C. Gurganus, Matthew Davis, age 42, was charged by criminal information with possessing a Samsung cellphone on September 4, 2021;
Keon White, age 32, was charged by criminal information with possessing an LG cellphone on October 27, 2021; and Antwain Hill, age 43, was charged by criminal information with possessing a Samsung cellphone on November 4, 2021.
Under federal law, it is illegal for inmates to possess cellular phones due to the security related issues that their use by inmates presents to the institution.
The matter is being investigated by the Federal Bureau of Prisons. Assistant United States Attorney Sean A. Camoni is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is one year of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Indictment Charges 4 Hartford Men with Committing Violent Robberies of AT&T StoresRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in Hartford returned an indictment yesterday charging ALEX JOSEPHS, 21; RONALDO SMITH, 23; SHAQUILLE RAYMOND, 23; and DESHAWN BAUGH, 19, all of Hartford, with federal robbery and firearm offenses stemming from a spree of AT&T store robberies that occurred earlier this year in Connecticut and western Massachusetts.
As alleged in court documents and statements made in court, earlier this year, the FBI’s Connecticut Violent Crimes Task Force and several police departments began investigating a group of individuals who were committing violent armed robberies of AT&T stores in Connecticut. The perpetrators typically entered the stores shortly before closing, pointed weapons at employees, and, at times, pistol-whipped, dragged and shoved employees toward the back inventory room. They then held the employees at gunpoint while loading large bags with cell phones and other electronics. The group stole hundreds of thousands of dollars in merchandise.
It is alleged that Josephs, Smith, Raymond, Baugh and others robbed AT&T stores in Newington on January 29, Enfield on February 24, Canton on April 15, and West Springfield, Massachusetts on June 6, 2021. They also attempted to rob stores in Torrington on May 15 and Glastonbury on May 29, but were locked out of the stores.
Josephs, Smith, Raymond, Baugh and Saviana Bourne were arrested on June 6, 2021, after fleeing from the West Springfield robbery and leading police on a high-speed chase that ended when their vehicle collided with a Massachusetts State Police cruiser. A search of the vehicle revealed a semiautomatic rifle, three handguns, and merchandise stolen during the robbery.
The indictment charges Josephs, Smith, Raymond and Baugh with one count of conspiracy to commit Hobbs Act robbery, which carries a maximum term of imprisonment of 20 years, and one count of brandishing a firearm during and in relation to a crime of violence, which carries a mandatory consecutive sentence of at least seven years of imprisonment. Josephs, Smith, Raymond and Baugh are also charged with multiple counts of Hobbs Act Robbery and attempted Hobbs Act robbery, offenses that carry a maximum term of imprisonment of 20 years on each court.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Josephs, Smith, Raymond and Baugh have been detained in Massachusetts state custody since their arrests.
Bourne, 23, of Middletown, was the driver of the getaway vehicle that crashed on June 6. On November 30, 2021, she pleaded guilty in Hartford federal court to one count of conspiracy to commit Hobbs Act robbery, four counts of Hobbs Act robbery, and two counts of attempted Hobbs Act robbery.
This matter is being investigated by the FBI’s Connecticut Violent Crimes Task Force with the assistance of the Massachusetts State Police and the Newington, Enfield, Canton, Torrington, Glastonbury, and West Springfield Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Indianapolis Man Sentenced to 60 Years in Federal Prison Following Law Enforcement Officer’s Rescue of Young Children He Sexually AbusedRead the Press Release
INDIANAPOLIS – An Indianapolis, Indiana man was sentenced to 60 years in federal prison for sexually exploiting two young children in his care and creating and distributing images of the abuse over the internet.
This investigation began when Donald Robert Richards, III, 32, began communicating with an undercover agent in an online chatroom. On multiple occasions during the chats, Richards uploaded images depicting the sexual abuse of two young female children. Richards went on to explain his familial relationship with the children and describe his sexual conduct with the girls.
The undercover agent was able to ascertain Richards’s identity, and eventually, with the Indiana Internet Crimes Against Children (“ICAC”) Task Force, investigators were able to determine Richards’s location in Indianapolis.
That same day, the Indiana ICAC Task Force assembled to obtain and execute a search warrant at Richards’s location to rescue the two children. Law enforcement officers removed the children from harm’s way, gathered evidence of Richards’s crimes, and arrested Richards.
Digital evidence showed that Richards had repeatedly sexually exploited the children, who were both under six years old, and on multiple occasions had filmed the abuse. Further, the evidence showed, consistent with the undercover’s interactions, that Richards shared the child sexual abuse material he created with others over the Internet.
Richards pleaded guilty to charges of sexual exploitation of a child and charges of distribution of a visual depiction of a minor engaged in sexually explicit conduct.
“For a child, her home and a family member’s arms should be the safest places in the world,” said U.S. Attorney Zachary A. Myers. “But the hands and home of Donald Robert Richards III were the most perilous places for our young victims to be, because Richards’s home was the site of protracted sexual exploitation and the only weapon he ever needed was opportunity. Had Richards not been so brazen as to record his crimes and to distribute the images, no one would have known what the victims suffered. We are grateful to the Indiana ICAC for their efforts to bring these girls out of the dark silence of Richards’ abuse.”
According to Assistant United States Attorney Kristina M. Korobov, who prosecuted the case, Richards was ordered to pay $20,000 in restitution and will be federally supervised for a life term following his release from prison.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Additionally, 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
Hyattsville Man Pleads Guilty to Bank Fraud Conspiracy That Intended to Cause a Loss of More Than $4.1 Million to Victim BusinessesRead the Press Release
Baltimore, Maryland – Oyekanmi Oworu, age 35, of Hyattsville, Maryland, pleaded guilty yesterday to conspiracy to commit bank fraud and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration.
According to his guilty plea, between February 2017 and July 2020, Oworu conspired with co-defendant Babtunde Ajibawo, age 55, of Essex, United Kingdom and others to fraudulently obtain checks made out to legitimate businesses, then fraudulently register shell companies to obtain state business certificates in the identical or similar name of the legitimate businesses to which the checks were made payable. The conspiracy also used the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (EIN) and the fraudulently obtained social security numbers of real individuals to obtain an EIN for the fraudulent business.
Specifically, on February 7, 2017, Oworu opened a bank account at a victim financial institution in the name of a real individual and deposited a stolen check made payable to a legitimate business for $265,168.20. Oworu subsequently withdrew the proceeds.
Additionally, on November 20, 2018, Oworu opened a bank account at a victim financial institution in a similar name of a legitimate business using the means and identification of A.S, a real individual. After opening the account, Oworu deposited a stolen check made payable to the legitimate business for $58,713.50. Video surveillance captured Oworu depositing the stolen check in Washington, D.C.
During the course of the scheme to defraud, Oworu communicated with co-conspirators regarding the allocation of stolen proceeds, including the money he would personally receive for opening fraudulent bank accounts and depositing stolen checks. Specifically, on May 2, 2019, Oworu asked Ajibawo to send $3,000 to him and the balance to another co-conspirator in Fayetteville, Georgia.
Further, as detailed in the Superseding Indictment, Oworu and his co-conspirators attempted to conceal their criminal actions and evade law enforcement by relocating the fraud scheme to other jurisdictions. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria.
In total, Oworu and his co-conspirators intended to cause a loss of at least $4.1 million to victim businesses, caused an actual loss of at least $756,175.30, and compromised the identifying information of more than 50 individual victims.
Co-defendant Ajibawo pled guilty to conspiracy to commit bank fraud on July 8, 2021 and is scheduled to be sentenced on December 8, 2021 at 10 a.m.
Oworu faces a maximum sentence of 30 years in prison followed by up to five of supervised release for conspiracy to commit bank fraud and a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft. As part of his plea agreement, Oworu will also be required to pay restitution. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 10, 2022 at 9:15 a.m.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Judson T. Mihok, who are prosecuting the case.
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Hartford Man Sentenced to More Than 6 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that JONATHAN CONTRERA, also known as “Hollywood,” 29, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by four years of supervised release, for narcotics distribution and gun possession offenses.
According to court documents and statements made in court, in December 2017, Contrera pleaded guilty in state court to sale of narcotics and was sentenced to 10 years in prison, suspended after three years, and three years of probation. Contrera also pleaded guilty to negligent homicide, a charge reduced from murder after key witnesses who observed him chase down and shoot the victim could not be located. He was released from state custody in June 2018. In July 2019, while on state probation, Contrera was arrested by Hartford Police and charged with various narcotics offenses related to the possession of cocaine, oxycodone and marijuana. He was subsequently released on bond.
In September and October 2019, investigators made controlled purchases of crack cocaine from Contrera. Contrera was arrested on October 9, 2019, after he sold approximately 3.5 grams of crack to an individual, and a search of his car revealed another 3.5 grams of crack. After Contrera was arrested, a search of his residence revealed approximately 500 grams of cocaine, approximately 20 grams of crack, items used to process and package narcotics for street sale, and a stolen .327 caliber revolver loaded with six rounds of ammunition.
Contrera has been detained since his federal arrest on October 17, 2019. On May 27, 2021, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a felon.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The task force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Great Falls man sentenced to 25 years in prison for sexually exploiting minor girl in PennsylvaniaRead the Press Release
GREAT FALLS — A Great Falls man who admitted to inducing a minor girl in Pennsylvania to send him sexually explicit photographs of herself was sentenced today to 25 years in prison to be followed by 20 years of supervised release, U.S. Attorney Leif M. Johnson said.
Andrew Donovan Carter, 29, pleaded guilty in August to sexual exploitation of a child.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $6,000 restitution to known victims.
The government alleged in court documents that in August 2020, a Pennsylvania law enforcement agency contacted Carter’s state probation officer regarding Carter using social media to engage in sexually explicit communications with a 14-year-old girl. The probation officer requested assistance from the Great Falls Police Department, which is a member of the Montana Internet Crimes Against Children Task Force (ICACTF). The girl told investigators that she met a boy she believed to be was 16 years old, communicated with him online and that he asked her to send him nude pictures of herself. The supposed 16-year-old boy was Carter. The girl took sexually explicit photographs of herself and sent them to Carter using a cell phone. Carter communicated with the 14-year-old girl for about a year and texted her almost daily, requesting sexually explicit images of the girl. While interviewing Carter, agents learned that he was having similar communications with another child who was about 10 years old.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by Homeland Security Investigations, Montana Internet Crimes Against Children Task Force, Great Falls Police Department and Montana Department of Corrections’ Probation and Parole.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Georgia man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kaleb Joseph Beals, of Silver Creek, Georgia, was sentenced today to 92 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Beals 32, pleaded guilty in June 2021 to one count of “Conspiracy to Distribute Methamphetamine.” Beals admitted to working with others to sell methamphetamine, also known as “crystal meth” or “ice,” from August 2018 to April 2019 in Hardy County. Beals trafficked crystal methamphetamine from Georgia into Hardy County via Interstate-81 and then across the new 4-Lane (Corridor H) into Hardy County. Beals had West Virginia residents trafficking the drug. All four have pleaded guilty to drug charges.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, the West Virginia State Police, the Grant County Sheriff’s Office, and the Moorefield Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Find related cases here:
https://www.justice.gov/usao-ndwv/pr/hardy-county-man-admits-role-drug-trafficking-operation
https://www.justice.gov/usao-ndwv/pr/hampshire-county-woman-admits-role-drug-trafficking-operation-0
https://www.justice.gov/usao-ndwv/pr/hardy-county-man-admits-role-drug-trafficking-operation-0
https://www.justice.gov/usao-ndwv/pr/mineral-county-woman-admits-drug-charge
Fry Foods, Inc. Human Resources Manager Sentenced to 41 Months in Federal Prison for Payroll and COVID-19 Testing SchemesRead the Press Release
BOISE – A Meridian man was sentenced to 41 months in federal prison for wire fraud, mail fraud, and money laundering based on schemes to defraud his employer, Fry Foods, Inc., during the early phases of the COVID-19 pandemic.
According to the plea agreement, Douglas Wold, 49, of Meridian, worked as a Human Resources Manager for Fry Foods, Inc. in Ontario, Oregon, and executed two separate schemes.
First, beginning in at least May 2020 and continuing through August 2020, Wold committed wire fraud by submitting fraudulent payroll requests for individuals who never worked at Fry Foods or who no longer worked at Fry Foods at the time of the payroll requests. Payroll checks were processed based on Wold’s requests. Wold then deposited these fraudulent payroll checks into his own bank accounts.
Second, Wold committed mail fraud with respect to a COVID-19 testing program at Fry Foods’ Weiser location in May 2020. Wold issued a fraudulent invoice to Fry Foods in the name of his business, Hala Lallo Health, for $39,995 when, in fact, the testing was provided by another entity and at a greatly lower cost. When Fry Foods paid Hala Lallo Health for the testing, Wold deposited the funds into a bank account he controlled and did not pay the health care provider that actually conducted the testing.
Wold committed the offense of engaging in monetary transactions in property derived from unlawful activity by transferring $69,116.48 in proceeds from his frauds for the purchase a speedboat and trailer, which the Government has since recovered.
“The outcome in this case reflects our office’s longstanding commitment to hold accountable anyone who engages in corporate fraud,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “It also shows our ability to work with our law enforcement partners to quickly investigate and prosecute fraud schemes that arise from or seek to take advantage of the ongoing COVID-19 pandemic.”
“This sentence is the price Wold will pay for abusing his position of trust to create a stream of income he was not entitled to,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “IRS-CI will continue to use our investigative resources to hold accountable those who exploit others for their own financial benefit.”
Chief U.S. District Judge David C. Nye also ordered Wold to serve three years of supervised release following his prison sentence. A final order of restitution will be determined during a hearing to be held at a later date. Wold pleaded guilty to the charges on May 18, 2021.
Acting U.S. Attorney Gonzalez commended the cooperative efforts of the Internal Revenue Service – Criminal Investigation, Malheur County’s Sheriff’s Office, Meridian Police Department, and Ada County Probation Office, which led to charges.
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 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Four People Plead Guilty to Mail Fraud, Wire Fraud, and Money Laundering ChargesRead the Press Release
SPRINGFIELD, Ill. – Four individuals have pleaded guilty over the past three months to mail fraud, wire fraud, and money laundering charges that were related to schemes involving the submissions of fraudulent claims for childcare services to the Illinois Department of Human Services that resulted in a loss of approximately $1,300,000 to the State of Illinois and the United States. The individuals are: Tarnavis Lee, 42, of the 6200 block of W. 80th Street in Burbank, Illinois; Demetra Jackson, 42, of the 2700 block of W. 64th Street in Chicago, Illinois; LaShanda Hudson, 40, of the 6700 block of S. Maplewood in Chicago; and Elizabeth McFarland, 47, of the 600 block of Rothwood Avenue in Madison, Tennessee.
According to the three indictments charging the defendants, as well as their plea agreements, the Illinois Department of Human Services (DHS) administered the Child Care Assistance Program, which was partially funded by the federal government. The program paid for childcare services for low-income parents while they worked or participated in approved educational programs. Each of the individuals charged engaged in schemes to defraud DHS by submitting claims for childcare services that were not provided or not provided to the extent claimed. As part of their schemes, Lee and Hudson also paid a total of more than $160,000 in kickback payments to parents participating in the program in exchange for the parents allowing their personal information and that of their children to be used to submit false and fraudulent childcare claims to DHS.
On September 8, 2021, Lee pleaded guilty pursuant to a plea agreement to two counts of mail fraud, two counts of wire fraud, and two counts of money laundering, as charged in two separate indictments. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $913,390.66. Lee’s sentencing is scheduled for January 6, 2022.
On October 12, 2021, Jackson pleaded guilty pursuant to a plea agreement to one count of wire fraud. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of approximately $250,000. Her sentencing is scheduled for February 9, 2022.
On October 25, 2021, McFarland pleaded guilty pursuant to a plea agreement to one count of wire fraud. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $228,301.31. Her sentencing is scheduled for February 24, 2022.
On November 3, 2021, Hudson pleaded guilty pursuant to a plea agreement to one count of wire fraud and one count of money laundering. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $421,875.97. Her sentencing is scheduled for March 4, 2022.
The statutory penalties for each count of mail and wire fraud are up to 20 years of imprisonment, 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment. The statutory penalties for each count of money laundering are up to 20 years of imprisonment; up to 3 years of supervised release; a fine up to $500,000 or twice the value of the property involved in the transactions, whichever is greater, or both; and a mandatory $100 special assessment.
All defendants remain free on bond pending sentencing. The scheduled sentencings are set to take place at the federal courthouse in Springfield, Illinois.
The cases were the result of a joint investigation by the Department of Health and Human Services - Office of Inspector General, St. Louis Field Office, and the Illinois State Police Medicaid Fraud Control Bureau, Central Division. Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.
Four Men Sentenced to Prison for Roles in Construction Insurance Fraud SchemeRead the Press Release
Miami, Florida – Today, a South Florida federal district judge sentenced three men from different parts of the country to federal prison terms for their roles in a conspiracy to defraud companies by issuing worthless bonds to insure large-scale construction projects. A fourth defendant was sentenced earlier this year.
On December 2, Alexander Robert Xavier, 57, formerly of Boca Raton, Florida was sentenced to 72 months in prison; Timothy Castracane a/k/a “Guy” Castracane, 51, of Saratoga Springs, New York, was sentenced to 46 months in prison; and Henry John Hattendorf, 73, of Las Vegas, Nevada was sentenced to 24 months in prison. On November 16, Robert Michael Wann, 64, of Rancho Mirage, California, was sentenced to 54 months in prison. Each defendant was also sentenced to a term of supervised release of three years and ordered to pay over $2.6 million in restitution to victims of the fraud.
From approximately March 2015 through December 2015, the defendants devised a scheme to unlawfully enrich themselves by issuing various performance and payment bonds – a type of insurance required on major construction contracts. During the course of the fraud, Defendant Xavier, acting as a so-called “individual surety,” pledged over $30 million in assets to builders working on large-scale infrastructure and residential construction projects. In truth, and as the defendants well knew, there were no such assets; only worthless securities that the defendants referred to as “gold certificates.”
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; Sean Earle, Special Agent in Charge, Eastern Region Field Office, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG); and David Spilker, Special Agent in Charge, Southeast Field Office, United States Department of Veterans Affairs, Office of Inspector General (VA-OIG), made the announcement.
United States District Judge Donald M. Middlebrooks imposed the sentences. Previously, the defendants all pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.
At the time of his sentencing, Defendant Xavier was already serving a 150-month prison sentence imposed in a different Southern District of Florida criminal fraud case, Case No. 15-80149-cr-Marra.
EPA-OIG and VA-OIG investigated the case, with assistance from the United States Department of Transportation OIG, Internal Revenue Service, Criminal Investigation Division, in Albany, New York, and The Port Authority of New York & New Jersey OIG.
It was prosecuted by Assistant U.S. Attorneys Christopher B. Browne and Stephanie Hauser. Annika Miranda handled the asset forfeiture component of the case.
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. 20-cr-80054.
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Former Treasurer of the Detroit Fire Department Union Pleads Guilty to Stealing over $200,000 in Union FundsRead the Press Release
DETROIT - The former Treasurer of the Detroit Fire Department Union (DFFA) has pleaded guilty to embezzling over $200,000 in union funds, announced Acting United States Attorney SaimaMohsin.
Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Verdine Day, age 62, pleaded guilty to bank fraud as charged in an information filed by the U.S. Attorney’s Office. United States District Judge George Caram Steeh accepted her guilty plea and set the matter for sentencing on March 24, 2022 at 2pm..
According to the facts alleged in the information and further developed at the plea hearing, Day was hired by the Detroit Fire Department in 1986. She worked as a firefighter, engineer, and held other positions in the union before she was elected by her peers to Treasurer of the DFFA in November 2015. She was Treasurer from December 2015 until her retirement from the DFFA and the City of Detroit in September 2019.
During the four years Day was Treasurer of the DFFA, she fraudulently obtained approximately $167,900.00 of union funds by (1) issuing checks in her name and then changing the name of the payee in the Union’s Quickbooks software; (2) cashing checks which were voided by her in Quickbooks; (3) writing checks made payable to cash; and (4) withdrawing cash from DFFA bank accounts. Day also fraudulently obtained money by diverting funds intended by the DFFA to be a donation to charity.
Day also used DFFA credit cards as her own personal credit cards while she was Treasurer and after she retired. In total, she charged approximately $49,116.17 in personal expenses using DFFA credit cards. Her purchases on DFFA credit cards included flights, hotel rooms, cruises, car insurance premiums, satellite and cable TV service, national and state parks fees, and furniture. For example, Day used a DFFA union credit card to charge $9,553 for a cruise with Royal Caribbean cruise lines in 2017. Day also used a union credit card to pay for another Royal Caribbean cruise costing $8,975 on the Liberty of the Seas in 2019. She used the union’s credit card to pay her bar bill at a casino in Ohio in May 2019 and for a meal at a Bubba Gump Shrimp Co. restaurant in Cozumel, Mexico in 2019.
Acting U.S. Attorney Saima Mohsin commended the work of the FBI and the Department of Labor in conducting this criminal investigation of a corrupt union officer and said, “This prosecution demonstrates that we will not tolerate union officers who abuse their authority and line their own pockets at the expense of the union’s membership. We will continue to work with our law enforcement partners to root out corruption and fraud involving unions.”
"As treasurer of the Detroit Fire Department Union, Verdine Day had a duty to safeguard the dues paid by men and women who put their lives on the line each day to protect the citizens of Detroit,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Today’s guilty plea is an admission she violated her duty and the trust of these brave men and women. The FBI will continue to work with our law enforcement partners to thoroughly investigate anyone who misuses their government position for their own personal benefit.”
“Verdine Day embezzled over $200,000 in union funds in order to personally enrich herself at the expense of dues-paying Detroit Fire Department Union members. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen. The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Labor.
Day is facing a maximum of 30 years in prison on the bank fraud charge.
Former College Track and Field Coach Indicted on Wire Fraud, Cyberstalking, Conspiracy and Computer Fraud ChargesRead the Press Release
BOSTON – A federal grand jury has indicted a former track and field coach in connection with a scheme to trick women across the country into sending him nude or semi-nude photos using more than a dozen sham social media and email accounts. The defendant allegedly cyberstalked one female student-athlete and orchestrated a scheme to gain unauthorized access to a victim’s Snapchat account.
Steve Waithe, 28, of Chicago, Ill., was charged in a 15-count indictment with 12 counts of wire fraud, one count of cyberstalking, one count of conspiracy to commit computer fraud and one count of computer fraud, aiding and abetting. Waithe will appear in federal court in Boston on Dec. 9, 2021 at 9:45 a.m. before U.S. Magistrate Judge Donald L. Cabell. On April 7, 2021, Waithe was charged by criminal complaint with wire fraud and cyberstalking and was arrested in Chicago. He was released by the Court on conditions on May 19, 2021.
According to charging documents, Waithe previously worked as a track and field coach at several academic institutions, including Northeastern University, Penn State University, Illinois Institute of Technology, University of Tennessee and Concordia University Chicago.
It is alleged that, starting at least as early as February 2020, Waithe began perpetrating an evolving scheme to dupe women into sending him nude or semi-nude photos of themselves. Specifically, Waithe allegedly used anonymized social media accounts with usernames like “anon.4887” and variations of the phrase “Privacy Protector” to contact prospective victims, claiming that he had found compromising photos of them online and offering to “help” get the photos removed from the internet. Waithe also allegedly requested additional nude or semi-nude photos from victims that he could purportedly use for “reverse image searches.”
It is further alleged that Waithe fabricated at least two female personas, “Katie Janovich” and “Kathryn Svoboda,” in an effort to obtain nude and/or semi-nude photos of women. Under the purported premise of an “athlete research” or “body development” study, Waithe allegedly emailed prospective victims pretending to be “Katie” or “Kathryn” with email accounts in their names. The emails described a phony study for athletes and requested information relating to height, weight, body fat and diet habits. The emails also included a request for the victims to send photos of themselves in order to “track their progress” and recommended that the photos show the women in a “uniform or bathing suit to show as much skin as possible.” The emails often included attachments of sample nude and semi-nude images to illustrate the types of photos that victims should send.
According to court documents, investigators identified over a dozen sham social media accounts allegedly used by Waithe and over 350 photos sent by more than 49 victims who thought they were emailing someone conducting a legitimate research study.
Waithe is also charged with cyberstalking one victim, from at least June 21, 2020 to Oct. 3, 2020, through text messages and direct messages sent via social media, as well as by hacking into her Snapchat account. It is alleged that he texted and sent nude photos of the victim to the victim’s boyfriend, stating, “I wanted to make you aware that someone hacked your girlfriend’s snapchat account and will leak it soon. I need your help to assure this does not happen.”
In October 2020, Waithe allegedly conspired with another individual to hack into Snapchat accounts, ultimately gaining access to at least one account and its private “My Eyes Only” folder that contained nude and/or semi-nude photos. In addition, Waithe allegedly provided his co-conspirator with the usernames and phone numbers for the Snapchat accounts of at least 15 women. Waithe and his co-conspirator then used this information to craft and send text messages purporting to be from the “Snapchat Support Team” and requesting security information, through which they gained access to at least one account.
The investigation revealed that Waithe’s internet browsing history allegedly included visits to webpages with titles like, “Can anyone trace my fake Instagram account back to me?” and “How to Hack Someones Snapchat the Easy Way.” It is alleged that Waithe’s search history also included searches for, among other things, “how to hack snapchat with a username and phone number.”
If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-steven-waithe
The charge of wire fraud provides for a sentence of up to 20 years in prison for each count, three years of supervised release and a fine of $250,000. The charge of cyberstalking provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to commit computer fraud and computer fraud, aiding and abetting, each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Northeastern University Police Department provided substantial assistance with the investigation; the Suffolk County District Attorney’s Office and the Chicago Police Department also provided valuable assistance. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chief Financial Officer and Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Arrested for Insider TradingRead the Press Release
NEWARK, N.J. – The former chief financial officer and the former head of corporate communications for a biopharmaceutical company were arrested for their roles in an insider trading scheme, Acting U.S. Attorney Rachael A. Honig announced today.
Usama Malik, 47, and Lauren S. Wood, 33, both of Washington, D.C., are charged by complaint with securities fraud. Malik and Wood were both arrested on Dec. 1, 2021. Malik is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Zia Faruqui in Washington, D.C., federal court. Wood is scheduled to appear this afternoon before U.S. Magistrate Judge John F. Anderson in Alexandria, Virginia, federal court.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, Company-1 publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, Biopharmaceutical Company-2 acquired Company-1 for approximately $21 billion.
As Company-1’s CFO, Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the April 6, 2020 announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly the head of corporate communications for Company-1. Malik also provided the non-public information to a number of his relatives. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of Company-1 stock, despite the fact that Company-1 stock had recently been downgraded by financial experts. After Company-1 announced on April 6, 2020, that its cancer drug had proven effective in pre-market clinical trials, Company-1’s stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618, and returning $65,000 to Malik.
The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint today based on the same conduct.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Deputy Chief of the Criminal Division Osmar J. Benvenuto.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former CEO of Real Estate Private Equity Investment Firm Sentenced to 5 Years in Prison for $58 Million Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ERIC MALLEY, the founder and former chief executive officer of real estate private equity investment firm MG Capital Management L.P., was sentenced today by United States District Judge Edgardo Ramos to 60 months in prison in connection with a securities fraud scheme in which he fraudulently induced hundreds of individuals to invest a total of approximately $58 million in two real estate investment funds. MALLEY pled guilty before Judge Ramos on May 20, 2021.
U.S. Attorney Damian Williams said: “For years, Eric Malley swindled investors through false promises about himself, his credentials, his track record, and the state of his real estate investment funds. Today’s sentence sends an important message that there are grave consequences to such deception.”
According to the allegations contained in the Complaint, the Information to which Malley pled guilty, other court documents, and statements made in public court proceedings:
MALLEY founded MG Capital Management L.P. (“MG Capital”) in approximately January 2013, and served as its chief executive officer and chief investment officer from that time until approximately December 2019. During that time, MALLEY formed two real estate investment funds (collectively, “the Funds”) – MG Capital Management Residential Fund III (“Fund III”), in approximately February 2014, and MG Capital Management Residential Fund IV (“Fund IV”), in approximately September 2017.
MALLEY promised, when soliciting investors and throughout the life of the Funds, that the Funds represented an opportunity to own an equity interest in hundreds of luxury income-producing properties across Manhattan, following a debt-free investment strategy purportedly informed by sophisticated proprietary analytics that MALLEY had developed over the course of his career in real estate. MALLEY touted two purportedly extremely successful prior funds he had formed, Fund I and Fund II; assured investors that the Funds would be and were debt-free; and represented that the properties held by the Funds would be and were leased primarily to corporate tenants, including, among others, well known technology companies and a prominent university based in New York City with which Malley had pre-existing agreements. But MALLEY’s representations were false. Funds I and II did not exist. The Funds were not debt-free, but instead held mortgaged properties. The properties that made up the Funds were almost entirely leased to individual, not corporate, tenants. Malley did not have the corporate relationships or pre-existing agreements he touted. The Funds held far fewer properties than MALLEY had represented. And although Malley promised the investments were fully protected from loss, they were not.
MALLEY induced approximately 335 investors to invest a total of approximately $58 million in the Funds through these and other fraudulent misrepresentations. The Funds together incurred millions of dollars in losses and are currently being liquidated.
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In addition to the prison term, MALLEY, 51, of New Canaan, Connecticut, was sentenced to three years of supervised release and ordered to make restitution in the amount of $33,249,822.12 and forfeiture in the amount of $5,625,747.45.
This case is being handled by the Office’s Securities and Commodities Task Force. Assistant United States Attorney Elizabeth A. Hanft is in charge of the prosecution.
Former Altoona School Superintendent Sentenced to 8 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Daniel Peggs, 34, Altoona, Wisconsin was sentenced by Chief U.S. District Judge James D. Peterson to 96 months in federal prison for possessing child pornography. This prison term will be followed by 10 years of supervised release.
The case came to light when, in January 2019, a 20-year-old woman came forward and reported that she had been the victim of sexual exploitation by several men when she was 17 years old. The investigation by the Wisconsin Department of Justice and the U.S. Department of Homeland Security revealed that the victim met 37-year-old Bryan Ragon at a renaissance festival in Minnesota in September 2015. Ragon returned to his home in North Carolina and the minor returned to Wisconsin. Shortly after they met, Ragon started posting the minor on Craigslist.com in Wisconsin for group sex encounters.
Daniel Peggs, using the alias Jake Thompson, responded to an ad. At the urging of Ragon, Peggs recruited other adult men for group sex, rented a hotel room and then met with the minor at a hotel in Rice Lake, Wisconsin, where he recorded the sexual activity. After this first encounter, Peggs began communicating directly with Ragon to arrange group sex encounters, and continued to meet with the minor, both individually and in group settings, and recorded some of the encounters.
On October 25, 2021, Bryan Ragon was sentenced in the Western District of North Carolina to 20 years in prison, to be followed by 30 years of supervised release.
In sentencing Peggs, Judge Peterson noted that while Peggs pleaded guilty to possession of child pornography, the heart of the case was the production of images of child pornography. Judge Peterson noted that mistake of age is not a defense for the production of child pornography. Judge Peterson also found that the defendant was systematically dishonest and his claim that he didn’t know the victim was a minor was not particularly credible. The court found that Peggs was willing to do whatever it took to have sex with the minor, regardless of the risk. In imposing the sentence, Judge Peterson found that a term of imprisonment was needed to protect public from the defendant’s sexual preoccupation.
The charge against Peggs was the result of an investigation conducted by Wisconsin Department of Justice Division of Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Ashland County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger. The U.S. Attorney’s Office in the Western District of Wisconsin thanks the U.S. Attorney’s Office in the Western District of North Carolina for their cooperation and coordination.
Flower Mound Hospital to Pay $18.2 Million to Settle Federal and State False Claims Act Allegations Arising from Improper Inducements to Referring PhysiciansRead the Press Release
Flower Mound Hospital Partners LLC (Flower Mound Hospital), a partially physician-owned hospital in Flower Mound, Texas, has agreed to pay $18.2 million to resolve allegations that it violated the False Claims Act by knowingly submitting claims to the Medicare, Medicaid and TRICARE programs that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical judgments are not compromised by improper financial inducements.
The settlement resolves allegations that Flower Mound Hospital violated the Stark Law and the Anti-Kickback Statute when it repurchased shares from physician-owners aged 63 or older and then resold those shares to younger physicians. The United States alleges that Flower Mound Hospital impermissibly took into account the volume or value of certain physicians’ referrals when it (1) selected the physicians to whom the shares would be resold and (2) determined the number of shares each physician would receive.
“Improper financial arrangements between hospitals and physicians can distort physician decision-making and drive up health care costs for everybody,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Patients deserve the independent and objective judgment of their health care professionals”
“The Stark Law and the Anti-Kickback Statute are designed to ensure that physician financial considerations can never influence patient care,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “The system relies in part on whistleblowers who come forward to report financial improprieties at their workplaces. We urge anyone with concerns to reach out. The Justice Department is committed to enforcing laws that safeguard patient interests.”
“To deliver optimal patient care and protect the integrity of federal health care programs, providers should dutifully operate in accordance with the Stark Law and Anti-Kickback Statute,” said Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Providers are expected to deliver and bill for services based on their medical appropriateness and necessity, not their potential profitability. HHS-OIG and our partners are committed to enforcing these safeguards for HHS programs and beneficiaries.”
“Today’s outcome highlights the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protecting the integrity of our federal healthcare programs, including the Department of Defense’s healthcare program, TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will aggressively investigate companies and individuals that attempt to defraud taxpayer-funded healthcare programs, particularly those programs intended to care for our warfighters, their family members and our military retirees.”
Medicaid is funded jointly by the states and the federal government. The State of Texas paid for a portion of the Medicaid claims at issue and will receive a total of approximately $500,000 from the settlement with Flower Mound Hospital.
In connection with the settlement, Flower Mound Hospital entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA requires, among other things, that Flower Mound Hospital maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of the hospital. It also increases individual accountability by requiring compliance-related certifications from key executives.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Leslie Jennings, M.D., a physician-owner at Flower Mound Hospital. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Dr. Jennings will receive approximately $3 million as his share of the recovery in this case. The qui tam case is captioned United States ex rel. Jennings v. Flower Mound Hospital Partners, LLC, et al., Civil Action No. 3-19-CV-02676-B (N.D. Tex.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Texas with assistance from HHS-OIG and DCIS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Jonathan Thrope and Assistant U.S. Attorney Kenneth Coffin.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal jury convicts man of robbing Albuquerque supermarketRead the Press Release
ALBUQUERQUE, N.M. – A federal jury returned a guilty verdict on Dec. 1 in the trial of Jesse Barela, 35, of Albuquerque. Barela will remain in custody pending sentencing, which has not been scheduled.
A grand jury indicted Jesse Barela and his brother, Julian Barela, 50, on Sept 10, 2020, charging them with interference with commerce by threats and violence. Julian Barela pleaded guilty on Oct. 6.
According to the indictment and other court records, on November 26, 2019, the two men entered an Alberton’s Supermarket in Albuquerque and filled a shopping cart with hundreds of dollars in goods. They then proceeded to the exit without paying. When a store employee attempted to stop them, Jesse Barela brandished what appeared to be a firearm while Julian Barela struck the employee several times with a baton.
Jesse Barela faces up to 20 years in prison.
The FBI and the Albuquerque Police Department investigated this case as part of the FBI Violent Crime and Gangs Task Force. The United States Attorney’s Office for the District of New Mexico is prosecuting the case.
Federal charges filed against suspect connected to armed robbery spreeRead the Press Release
ST. LOUIS – On December 1, 2021, federal charges were filed against 58-year-old James Mayes. Mayes is accused of a robbery on federal territorial jurisdiction, namely the Gateway National Arch Park, and the armed robberies of commercial business establishments that are listed below.
According to the charging documents, Mayes committed multiple armed robberies; knowingly possessed, brandished, and discharged a firearm, in furtherance of crimes of violence, specifically the robberies; and knowingly possessed a firearm on multiple dates, despite knowing he had previously been convicted of a crime punishable by a term of imprisonment exceeding one year.
The documents include charges related to the incidents described below:
St. Louis City
October 13, 2021-Gateway National Arch Park armed street robbery at 115 Washington Avenue
October 14, 2021-Attempted robbery of a person on Laclede’s Landing
October 17, 2021-Armed robbery of the T-Mobile at 4142 S. Grand
October 20, 2021-Armed robbery of the Smoothie King at 1211 Pine
October 23, 2021-Armed robbery of the Kaiser Mart at 5008 S. Grand
October 26, 2021-Armed robbery of the Crown Food Mart at 300 S. Jefferson
November 3, 2021-Armed robbery of the Gallery Furniture/Home Accents at 310 N. Sixth St.
November 3, 2021-Armed robbery of the Boost Mobile at 1644 S. Jefferson
November 3, 2021-Armed robbery of the Domino’s Pizza at 1428 N. 13th
St. Louis County
October 25, 2021-Armed robbery of the Metro PCS at 6731 Page
November 5, 2021-Armed robbery of the Vapes and Snacks at 8820 Gravois Rd.
November 10, 2021-Armed robbery of the Cricket Wireless at 1084 Lemay Ferry Rd.
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 case was investigated by the St. Louis Metropolitan Police Department, St. Louis County Police Department, Pagedale Police Department, the Federal Bureau of Investigation, and the Federal Park Service.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Missouri, is available on-line at
http://www.justice.gov/edmo
Twitter: @USAO_EDMO
Federal Officials Close the Review into the Death of Everett Palmer Jr.Read the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that there is insufficient evidence to pursue federal criminal civil rights charges against York County Prison personnel related to the death of Everett Palmer Jr.
According to U.S. Attorney John C. Gurganus, yesterday, officials from the department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Pennsylvania notified representatives of the Palmer family to inform them of this decision. Palmer died following an emergency cell extraction after exhibiting self-injurious behavior. The medical examiner determined that his death was caused by complications following an excited state (excited delirium), associated with methamphetamine toxicity, during physical restraint.
Federal authorities examined all of the material and evidence in the State case generated by the Pennsylvania State Police and the Office of the District Attorney of York County (DAO), including statements made by corrections officers, witness statements, video recordings, medical reports, and prison policies and procedures.
The federal review sought to determine whether corrections officers violated federal law by willfully using unreasonable force against Palmer or by acting with deliberate indifference to his known medical needs. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right. To establish willfulness, federal authorities must show that the officer(s) acted with the deliberate and specific intent to do something the law forbids. This is one of the highest standards of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.
After a careful and thorough review into the facts surrounding the incident, federal investigators determined that there is insufficient evidence to prove beyond a reasonable doubt a violation of the federal statute. The evidence, when viewed as whole, is insufficient to establish beyond a reasonable doubt that the use of force by corrections officers was “objectively unreasonable” or that corrections officers acted with deliberate indifference to Palmer’s known medical needs. The evidence is also insufficient to establish that any corrections officer acted with the specific intent to break the law.
Accordingly, the investigation into this incident has been closed. This decision is limited strictly to the department’s inability to meet the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of this incident.
The Justice Department is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
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Federal Jury Finds Sequoyah County Resident Guilty of Five Counts of Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Michael Allen Farris, age 48, of Bunch, Oklahoma, was found guilty by a federal jury of five counts of Sexual Abuse of a Minor in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2243(a), and 2246(2)(A).
The jury trial began with testimony on Monday, November 29, 2021, and concluded on Wednesday, December 1, 2021, with the guilty verdicts. Based on the jury’s verdicts, the defendant is facing up to 15 years of imprisonment for each count.
During the trial, the United States presented evidence that between June 2019 and August 2019, the defendant sexually assaulted the 13-year-old victim.
The guilty verdicts were the result of an investigation by the Sequoyah County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant in this case is a member of a federally recognized Indian tribe and the crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, U.S. District Judge in the United States District Court for the Western District of Oklahoma in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Farris was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Anthony Marek and Assistant United States Attorney Morgan Muzljakovich represented the United States.
Federal Jury Convicts Pharmacy Owner of Conspiracy, Mail Fraud, and Misbranding for Role in Multi-Million Dollar Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. Following a month-long trial, a federal jury convicted Peter Bolos, 44, of Tampa, Florida, of conspiracy to commit health care fraud, 22 counts of mail fraud, and felony misbranding of a medication. Sentencing for Bolos has been set for May 19, 2022 at 10:30 am, before the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
According to court documents and evidence presented at trial, Bolos, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, conspired to defraud pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark out of millions of dollars. PBMs pay pharmacies for prescription claims on behalf of public insurance programs, such as Medicare and Tricare as well as private insurance companies like Blue Cross Blue Shield of Tennessee.
Court documents and evidence at trial further proved that Bolos, Assad, and Palso – who owned Synergy Pharmacy in Palm Harbor, Florida – purchased prescriptions from Scott Roix for $500 apiece. Bolos and Roix disguised these prescriptions’ purchases with bogus marketing agreements. To obtain these prescriptions, Roix used HealthRight’s telemedicine platform to deceive patients into providing HealthRight with their insurance information. Roix then steered doctors to issue prescriptions through HealthRight’s telemedicine platform by falsely telling the doctors the patients had requested the medications. In fact, the medications were selected by Bolos because they were highly profitable.
During the conspiracy, which lasted from May 26, 2015 through April 1, 2018, Bolos paid Roix more than $30,000,000 to buy not fewer than 60,000 prescriptions. Nearly all these prescriptions were issued through HealthRight’s telemedicine platform. The doctors who issued the prescriptions did not know, never met, and never spoke to the patients.
According to court documents, Roix, Assad, Palso, Smith, Maikel Bolos and various associated business entities previously pleaded guilty to their role in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. Sentencing for all the defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo, New York); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorney David Gunn of the Consumer Protection Branch in Washington prosecuted and tried the case.
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Essex County Postal Employee Arrested for Mail TheftRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) employee was arrested today for stealing mail, including stealing credit cards and stimulus checks from the U.S. Department of the Treasury, Acting U.S. Attorney Rachael A. Honig announced.
Parrish Brookins, 29, of East Orange, New Jersey, is charged by complaint with one count of mail theft by a Postal Service officer or employee. He appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and was released on $50,000 bond.
According to documents filed in this case and statements made in court:
From January 2021 to July 2021, certain credit cards addressed to third-party victims and mailed to addresses on postal routes in Verona and Montclair, New Jersey, were stolen on or about the same dates that Brookins was delivering mail on those routes. These credit cards subsequently were activated by Brookins and others and used to make and attempt to make fraudulent purchases in New Jersey and elsewhere. From at least March 2021 to September 2021, Brookins also stole stimulus checks issued by the U.S. Department of Treasury likewise addressed to third-party victims and mailed to addresses on postal routes in Verona covered by Brookins, who then provided these checks to others for fraudulent purposes.
The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine.
Acting U.S. Attorney Honig credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s arrest. She also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, for its assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Employee Sentenced for Stealing $270,000 from Medical PracticeRead the Press Release
INDIANAPOLIS – A Westfield, Indiana man was sentenced to 30 months in federal prison for a years-long scheme to defraud the ophthalmology practice where he worked.
Joshua D. Millspaugh, 42, worked as the practice administrator for Whitson Vision, P.C., with responsibility for payroll processing, purchasing and bill payment. He was paid an annual salary of over $100,000. However, less than a year after starting his employment, Millspaugh began using his access to company accounts to divert money to himself. Over the next five years, through over 500 separate transactions, Millspaugh used company money to make personal purchases, pay personal bills, and send extra payroll checks to his bank account—all of which he concealed with false entries in the company’s books and fictitious justifications when asked about the expenditures.
Dr. William Whitson, the owner and director of Whitson Vision, advised the Court during the sentencing that the loss suffered by him and his business went beyond the financial damage. He explained how Millspaugh’s crimes resulted in long term credit and banking problems for his company, how it significantly lowered the business reputation of his company, and how it left devastating morale problems with other company employees.
Millspaugh pled guilty to charges of Wire Fraud. In sentencing Millspaugh to 30 months in prison, U.S. District Court Judge James P. Hanlon found that Millspaugh had abused a position of trust within Whitson Vision to perpetrate his crime.
The investigation was conducted by the Indianapolis office of the U.S. Postal Inspection Service.
“Fraud on a small business impacts every area of that business,” said U.S. Attorney Zachary A. Myers. “It also breeds mistrust, especially if the fraud is perpetrated by a trusted employee. Mr. Millspaugh exploited his position of trust for purely personal gain, and he is now being held accountable for his actions.”
“The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to advance their fraud schemes,” said Rodney Hopkins, Inspector in Charge of the Detroit Division. “Crimes of these type bring grave financial and personal hardships to their victims. Criminal misuse of the U.S. Mail will not be tolerated, and our agency will continue to go after those who seek to abuse their positions of trust.”
According to Assistant United States Attorney James M. Warden, who prosecuted the case, Millspaugh was ordered to pay $270,000 in restitution and will be federally supervised for 3 following his release from prison.
El Salvadoran National Pleads Guilty to Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that HECTOR RODRIGUEZ-RODRIGUEZ, age 55, pleaded guilty on November 30, 2021 to reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. § 1326(a) and (b)(2).
According to the bill of information, HECTOR RODRIGUEZ-RODRIGUEZ reentered the United States after he was previously deported on October 27, 1992. Furthermore, on or about May 29, 2019, the defendant was convicted of illegal possession of less than two grams of cocaine and aggravated battery in St. Tammany Parish, Louisiana.
HECTOR RODRIGUEZ-RODRIGUEZ faces a maximum term of up to imprisonment of twenty (20) years, a maximum fine of up to $250,000, a maximum term of up to supervised release of three (3) years, and a mandatory $100 special assessment fee.
U.S. District Judge Jay C. Zainey has set sentencing for February 2, 2021.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney M. Irene González is in charge of the prosecution.
East Sparta Woman Sentenced for Stealing $100K from Social Security AdministrationRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Jamie L. Casey, 34, of East Sparta, Ohio, was sentenced today by Judge J. Philip Calabrese to serve three days in prison, two years of post-release supervision and ordered to pay $102,822 in restitution to the Social Security Administration after Casey pleaded guilty to theft of government property in August of 2021.
According to court documents, Casey’s grandmother received Social Security retirement benefits paid to her via direct deposit into an account she co-owned with Casey. From June of 2012 to around June of 2020, and after the death of her grandmother, Casey collected the Social Security benefits and converted the funds to her own use by making electronic withdrawals even though she knew the funds were to terminate upon the death of the intended recipient.
In total, Casey collected $102,822 in benefit payments to which she was not entitled.
This case was investigated by the Social Security Administration Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Jason W. White.
Dunbar Man Pleads Guilty to Defrauding Local NonprofitRead the Press Release
CHARLESTON, W.Va. – Walter Greenhowe, 72, of Dunbar, pleaded guilty today to defrauding a community improvement nonprofit for the Dunbar, Pinewood and Institute areas.
According to the plea agreement and statements made in court, Greenhowe admitted that from 2014 to 2018 while President of the nonprofit, he engaged in a scheme to defraud the organization of approximately $130,349.07. Greenhowe used the nonprofit’s debit card to obtain cash for his personal use from ATMs at various roadside gaming parlors in and around Dunbar. Greenhowe admitted that these transactions were unauthorized and unapproved by the nonprofit. Greenhowe often made these withdrawals late at night or early in the morning and removed cash multiple times a night.
Greenhowe pleaded guilty to three counts of wire fraud and faces up to 60 years in prison when he is sentenced on March 3, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the West Virginia Commission on Special Investigations, the West Virginia State Police, as well as the Intelligence Research Specialist and Litigation Financial Analyst in the United States Attorney’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott is prosecuting 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-00133.
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Driver of Tractor Trailer Carrying 69 Undocumented Non-Citizens Pleads GuiltyRead the Press Release
SAN ANTONIO – An El Indio man pleaded guilty today to transportation of undocumented non-citizens.
According to court documents, on March 22, 2021, Luis Enrique De La Cerda, 55, was identified as the driver of a tractor trailer traveling through Pearsall. Witnesses reported to law enforcement that multiple body parts were observed sticking out from the rear of the trailer, including the head of a male child. The tractor trailer parked in an abandoned parking lot near the outskirts of town where De La Cerda opened the rear trailer door, allowing multiple individuals to stream out of the trailer. Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS) and the Pearsall Police Department were at the scene and apprehended De La Cerda. In addition, 69 undocumented non-citizens, including five unaccompanied minors, were detained from the tractor trailer. Many complained of difficulty breathing due to no ventilation and hot temperatures in the trailer.
De La Cerda pleaded guilty today to one count of transporting illegal aliens in violation of 8 U.S.C. § 1324. He is scheduled to be sentenced on March 9, 2022 and faces a maximum sentence of five years in prison. United States District Judge Jason K. Pulliam will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and HSI Special Agent in Charge Shane Folden made the announcement.
HSI, with assistance from DPS and the Pearsall Police Department, is investigating the case.
Assistant U.S. Attorney Matthew W. Kinskey is prosecuting the case.
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Dickenson County Man Sentenced for Possession of Firearms and Methamphetamine While on Federal Supervised ReleaseRead the Press Release
ABINGDON, Va. – A Dickenson County, Virginia man was sentenced today to 130 months of total incarceration for possessing with the intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and violating the terms of his supervised release.
Bernard Anthony Murphy, 57, was released from federal prison on July 29, 2020, approximately five years earlier than expected, due to being granted a compassionate release because of the ongoing COVID-19 pandemic and alleged medical issues. Murphy was placed on a three-year term of supervised release, the first four months of which were to be spent on home confinement.
However, Murphy admitted that in June 2021, less than one year after his compassionate release and while still on federal supervision, he was found in possession of over 17 grams of methamphetamine, marijuana, a Ruger AR-15 rifle, and a Glock 43, 9mm pistol.
He pleaded guilty in August 2021 to one count of possession with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. The court sentenced him today to 106 months of imprisonment on the two new charges and 24 months of imprisonment for violating the terms of his supervised release.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATFE’s Washington Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dickenson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Lena Busscher prosecuted the case.
Del Rio Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DEL RIO – A Del Rio man was sentenced today to 10 years in prison for possessing over a 1,000 images of child pornography.
According to court documents, in July 2018 Homeland Security Investigations (HSI) agents executed a search warrant on the residence of William Read, 71. During the search, investigators seized Read’s desktop computer and related computer media among other things. A forensic examination of the seized items revealed the presence of images and videos of material depicting the sexual exploitation of minors. Read possessed 1,093 images of child pornography. On August 26, 2019, Read pleaded guilty to one count of possession of child pornography.
In addition to the prison term, U.S. District Judge Alia Moses ordered that Read be placed on supervised release for a period of five years after his incarceration and that he pay $105,051.40 in restitution.
“Child sexual exploitation is an intolerable crime,” said U.S. Attorney Ashley C. Hoff. “We continue our vigorous prosecution of child predators to safeguard our children and communities.”
“This sentencing sends the message that we are committed to aggressively pursuing anyone who seeks to exploit children,” said Shane Folden, Special Agent in Charge for HSI San Antonio. “We will continue to dedicate our law enforcement resources to identify and bring to justice predators who traumatize and victimize children."
HSI investigated this case with valuable assistance from the Del Rio Police Department and Val Verde County Sheriff’s Office.
Assistant U.S. Attorneys Rex Beasley, Stephen Kam and Sarah Spears prosecuted this 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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Cyber Security Firm Public Affairs Specialist Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Brendan Francis Kavanaugh, age 53, of Fort Meade, Maryland, pleaded guilty today to possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, in May 2020, Kavanaugh communicated with other users on a peer-to-peer file sharing network, the Tor network, under the username “HebeMom”. The Tor network is a computer network available to internet users that is specifically designed to facilitate anonymous communication. It is also commonly used to facilitate the sexual exploitation of minors.
Investigators linked the “HebeMom” usernames online activity to Kavanaugh’s Fort Meade, Maryland address and executed a search warrant at his residence on October 28, 2020. During the search of Kavanaugh’s residence, investigators discovered several electronic devices including an external hard drive. A forensic analysis of the hard drive revealed that Kavanaugh possessed approximately 3,674 images of child sexual abuse material and 9,296 files of child exploitative material, including several images of prepubescent females engaged in sexual conduct with adult males and animals.
As stated in his plea agreement, during an interview with law enforcement Kavanaugh admitted that the encrypted hard drive was his personal device and provided the password for the device. He then informed investigators that he had been using the Tor network since 2016 and accessed sites associated with child pornography under the username “HebeMom”.
Further, Kavanaugh admits that he knowingly possessed child pornography that involved sadistic or masochistic material and material that involved the exploitation of prepubescent minors.
Kavanaugh faces a maximum sentence of 20 years in prison followed by up to a lifetime of supervised release for possession of child pornography. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for February 7, 2022 at 10 a.m.
United States Attorney Erek L. Barron commended the FBI and the FBI's Child Exploitation Operational Unit for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Mary W. Setzer and Trial Attorney Charles Schmitz of the Department of Justice Child Exploitation and Obscenity Section, who are prosecuting the case.
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Correctional Officer at Eastern Correctional Institution Pleads Guilty to Federal Racketeering and Drug ChargeRead the Press Release
Baltimore, Maryland – Maurice Antonio Bull, age 43, of Seaford, Delaware, pleaded guilty today to interstate travel in aid of racketeering and to possession with intent to distribute controlled substances, in connection with Bull accepting bribes to smuggle contraband into Eastern Correctional Institution.
The guilty plea 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 Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services.
“This case demonstrates that we will not tolerate employees in positions of trust violating their oaths. Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Erek L. Barron.
“Once again, DPSCS detectives and intelligence officers built a strong case and worked with our federal partners to bring a dangerous plot to an end,” said DPSCS Secretary Robert Green. “Contraband and compromised employees endanger every single person who lives and works inside of our facilities.”
According to his guilty plea, Bull was a Correctional Officer at the Eastern Correctional Institute (“ECI”), a medium security Maryland Department of Public Safety and Correctional Services prison operated in Westover, Maryland, in Somerset County.
Correctional Officers have a duty to ensure that inmates follow the rules, including, most importantly, the prohibition of criminal activity while incarcerated. Bull admitted that he abused his position of trust as a sworn officer of DPSCS by engaging in illegal activities for the purposes of enriching himself. Specifically, Bull received bribes in exchange for bringing contraband into ECI, including but not limited to Suboxone, heroin, and tobacco for ECI inmates.
For example, as detailed in his plea agreement, in September 2020, an ECI inmate made a phone call, over the recorded jail call system, to his sister to arrange for her to provide a bribe payment to Bull in exchange for Bull smuggling contraband into the prison facility for the inmate. On September 9, 2020, Bull drove from his home in Delaware to Salisbury, Maryland and met with the inmate’s sister in the parking lot of a convenience store. Law enforcement officers observed the inmate’s sister placing a plastic bag inside the passenger window of Bull’s truck. Bull’s truck was subsequently stopped and searched. Officers recovered a plastic bag in the center console that contained approximately 1,153 Suboxone strips, 8.2 grams of a combination of packaging and heroin, and 20.6 grams of a combination of packaging and tobacco. The contraband was individually packaged and labeled with the initials of the ECI inmates who were the intended recipients. Officers also recovered a white envelope in Bull’s pocket which contained a bribe payment of $5,400.
Bull was interviewed and informed law enforcement that in July or August 2020, he was approached by an inmate about smuggling contraband, specifically Suboxone, into ECI in exchange for $2,000 bribe payments. The inmate who approached him was transferred before Bull could provide contraband, but he was subsequently approached by another inmate. Bull admitted that he intended to bring the controlled substances into ECI and to provide them to that inmate and the $5,400 was payment for his agreement to do so. Bull advised law enforcement that he had previously brought contraband into ECI for the inmate, in exchange for $2,000 in cash. On this prior occasion, to obtain the controlled substances and bribe payment, Bull drove from his home in Delaware to Maryland.
Bull faces a maximum sentence of five years in prison for interstate travel in aid of racketeering and a maximum of 20 years in prison for possession with intent to distribute controlled substances. U.S. District Judge Lydia K. Griggsby has scheduled sentencing for February 24, 2022, at 2:00 p.m.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 78 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Lauren E. Perry, who are prosecuting the 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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Colville Tribal Member Sentenced to 107 Months for Carjacking Victim at Gunpoint and Unlawful Possession of FirearmsRead the Press Release
Spokane, Washington – Senior United States District Judge Rosanna M. Peterson sentenced Kyle Steven Scott Cate, age 30, an enrolled member of the Confederated Tribes of the Colville Reservation, to 107 months of imprisonment for Carjacking and Felon in Possession of a Firearm following Cate’s guilty pleas to two federal indictments earlier this year.
According to court documents, on April 30, 2020, at 2:30 a.m., Cate began banging on the door of a residence located in Coulee Dam, Washington, on the Confederated Tribes of the Colville Reservation. Cate’s victim, who also is an enrolled member of the Colville Tribe, came to the door, and Cate asked him for a ride to Nespelem, Washington. When the victim declined to give Cate a ride, Cate brandished a snub-nosed pistol at him before stealing his 1998 Black Subaru Legacy at gunpoint. Before leaving, Cate demanded the victim’s keys, pointed a pistol at his face, and said he would shoot him. With Cate’s pistol only 4 to 5 inches away from his face and fearing for his safety, the victim gave up his keys. Cate left in the carjacked Subaru, driving in the direction of Nespelem. His victim called 911.
Within minutes of the 911 call, Colville Tribal Police observed the Subaru Legacy driving toward Nespelem. Police matched the license plate to the victim’s stolen car, and began pursuing Cate. Cate led officers on a chase that lasted approximately 23 miles, during which he reached speeds of approximately 100 miles per hour. After Cate endangered law enforcement, other drivers, and himself for a significant period of time, the engine on the Subaru Legacy failed and Tribal Police were able to stop the carjacked vehicle. During Cate’s arrest, Tribal Police recovered seven .22 caliber bullets from Cate’s pocket. A firearm that met the description given by Cate’s victim was recovered along Cate’s flightpath, consistent with Cate having thrown it from the moving vehicle during the high-speed chase. Cate’s fingerprint was later recovered on the firearm.
Separately, and prior to the carjacking, Cate was found in possession of four stolen firearms in August 2018. Those firearms, which had been stolen during a residential burglary, were recovered from Cate’s home. Cate admitted that he possessed the guns and that he knew they were stolen. At the time he possessed the stolen firearms, Cate had a prior felony conviction for Second Degree Robbery in Okanogan County Superior Court.
United States Attorney Vanessa Waldref commended the joint efforts of law enforcement and emphasized the need to keep Eastern Washington safe and strong. “All people in Eastern Washington deserve to be safe in their homes, whether they live in big cities, small towns, rural communities, or on reservations. The danger inherent to stealing a car at gunpoint was made significantly worse when Mr. Cate led law enforcement on a high-speed chase. He needlessly endangered countless people – including other Tribal members, Tribal law enforcement, innocent bystanders, and himself. His offense may have taken only moments, but it has had a lasting impact on his victim and the community. This case illustrates the good reasons why felons are not legally permitted to possess firearms, and it is alarming that entirely separate from the carjacking conduct, Mr. Cate was in possession of numerous firearms. I am grateful to all of the federal, state, and Tribal officers who investigated the cases against Mr. Cate, and thankful that neither they, nor anyone else, was physically hurt by his actions.”
Donald Voiret, the Special Agent in Charge of the FBI’s Seattle office, echoed the U.S. Attorney, stating: “Mr. Cate’s casual use of violence and blatant disregard for people’s safety indicates that significant time in prison may be the only way to ensure that he is not an ongoing menace to the public.” ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson, joined that sentiment, noting: “Mr. Cate’s dangerous use of firearms in the commission of a carjacking, while also being a felon in possession of other stolen firearms, clearly warrants this significant sentence. ATF will continue to investigate aggressively those who possess and use firearms illegally, including to threaten innocent bystanders as Mr. Cate did.”
The Federal Bureau of Investigation (“FBI”), Bureau of Alcohol Tobacco, Firearms, and Explosives (“ATF”), Colville Tribal Police, and Washington State Patrol investigated these cases, which were prosecuted by Assistant United States Attorney Richard Barker.
Chester County Man Sentenced to 1 ½ Years in Prison for Stealing Pandemic Unemployment Assistance FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jacob Fulton, 33, of Coatesville, PA, was sentenced to one year and six months in prison, five years of supervised release, and ordered to pay full restitution by United States District Judge Eduardo C. Robreno for falsely claiming and taking approximately $32,000 in pandemic unemployment compensation authorized by the CARES Act.
On March 27, 2020, the CARES ACT was enacted and created the Pandemic Unemployment Assistance (“PUA”) program, to provide unemployment benefits to workers who lost their jobs because of the COVID-19 pandemic and who were ineligible for other unemployment compensation. The defendant took advantage of the program by unlawfully submitting fraudulent PUA claims for himself and for inmates of Chester County Prison, knowing that neither he nor these inmates were entitled to these benefits.
In May 2020, the defendant filed a PUA claim for himself knowing that he was not eligible for such benefits because he was not unemployed as a result of the COVID-19 pandemic. After Fulton was arrested and sent to Chester County Prison in July 2020, he continued to submit weekly certifications that he was eligible for these benefits (with the aid of his co-defendant), all while knowing that he was not eligible for these benefits because he was in prison. At the same time, Fulton conspired to file PUA claims on behalf of at least two other inmates and take a cut of the claim payments for himself. In August 2021, the defendant pleaded guilty to charges of mail fraud and conspiracy to commit mail fraud stemming from the scheme to file false PUA claims for himself and others.
“Pandemic Unemployment Assistance funds are intended to help working Americans continue to pay their bills and make ends meet, even when hours and wages have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Fulton fraudulently obtained thousands of dollars in funds that could have helped struggling individuals.”
“The CARES ACT was designed to provide assistance to hard working Americans and their families suffering from financial hardships. Today’s sentence sends the message that the FBI is committed to protecting tax payer funded programs and will aggressively investigate fraudsters like Fulton and his fellow inmates who seek to abuse such programs,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division.
“Fulton thought he could get rich at the expense of Americans who desperately needed the Pandemic Unemployment Assistance,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “His sentence today shows just how much such criminal conduct will not be tolerated. Those contemplating similar conduct should take notice”
“Jacob Fulton engaged in a scheme with his co-defendant to defraud the Pennsylvania Pandemic Unemployment Assistance (PUA) program by obtaining personal information from inmates in Chester County Jail and submitting fraudulent claims for PUA benefits on behalf of those inmates even though they were incarcerated and not able and available to work. The U.S. Department of Labor Office of Inspector General is grateful for our partnerships with the Pennsylvania Department of Labor and our many law enforcement partners. We also want to thank the U.S. Attorney’s Office for their continued efforts to prosecute those who violate public benefit programs and commit fraud,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the U.S. Department of Labor Office of the Inspector General, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.